South Carolina General Assembly
116th Session, 2005-2006
Journal of the House of Representatives


Printed Page 3303 . . . . . Thursday, May 12, 2005

Thursday, May 12, 2005
(Statewide Session)

Indicates Matter Stricken
Indicates New Matter

The House assembled at 10:00 a.m.
Deliberations were opened with prayer by Rev. Charles E. Seastrunk, Jr. as follows:

Our thought for today is from Psalm 115:1: "Not to us, O Lord, not to us but to your name be the glory, because of your love and faithfulness."
Let us pray. O Lord, guide us through adversity. Uplift Your people as they strive to be good Representatives. Help each to be what You expect them to be. Equip these men and women for great service. Bless and keep each of our Representatives, staff and workers in Your care. Look in favor upon our Nation, President, State and her leaders. Keep our defenders of freedom in Your safe embrace. O Lord, hear our prayer. Amen.

Pursuant to Rule 6.3, the House of Representatives was led in the Pledge of Allegiance to the Flag of the United States of America by the SPEAKER.

After corrections to the Journal of the proceedings of yesterday, the SPEAKER ordered it confirmed.

MOTION ADOPTED

Rep. G. BROWN moved that when the House adjourns, it adjourn in memory of Christopher Caswell Wilcox, which was agreed to.

INTRODUCTION OF BILL

The following Bill was introduced, read the first time, and referred to appropriate committee:

H. 4086 (Word version) -- Rep. Hayes: A BILL TO ENACT THE DILLON COUNTY SCHOOL FACILITIES FINANCING ACT SO AS TO AUTHORIZE THE IMPLEMENTATION FOLLOWING REFERENDUM APPROVAL OF A SALES AND USE TAX IN DILLON COUNTY NOT TO EXCEED TWO PERCENT TO OFFSET PAYMENT OBLIGATIONS RELATED TO GENERAL OBLIGATIONS ISSUED TO FINANCE SCHOOL


Printed Page 3304 . . . . . Thursday, May 12, 2005

CONSTRUCTION, ACQUISITION, AND RENOVATION OR FOR DIRECT PAYMENTS FOR SCHOOL CONSTRUCTION, ACQUISITION, AND RENOVATION, AND TO PROVIDE FOR OTHER MATTERS RELATING TO IMPLEMENTING THIS ACT.
On motion of Rep. HAYES, with unanimous consent, the Bill was ordered placed on the Calendar without reference.

ROLL CALL

The roll call of the House of Representatives was taken resulting as follows:

Allen                  Altman                 Anderson
Anthony                Bailey                 Bales
Ballentine             Barfield               Battle
Bingham                Brady                  Branham
Breeland               G. Brown               J. Brown
R. Brown               Cato                   Ceips
Chalk                  Chellis                Clark
Clemmons               Clyburn                Coates
Cobb-Hunter            Coleman                Cooper
Dantzler               Davenport              Delleney
Duncan                 Edge                   Emory
Frye                   Funderburk             Hagood
Haley                  Hardwick               Harrell
Harrison               Hayes                  Herbkersman
J. Hines               M. Hines               Hinson
Hiott                  Hosey                  Howard
Huggins                Jefferson              Kennedy
Kirsh                  Leach                  Lee
Limehouse              Littlejohn             Loftis
Lucas                  Mack                   Mahaffey
Martin                 McCraw                 McGee
McLeod                 Merrill                Miller
J. M. Neal             Neilson                Norman
Ott                    Owens                  Parks
Perry                  Phillips               Pinson
E. H. Pitts            M. A. Pitts            Rice
Rutherford             Sandifer               Scarborough
Scott                  Sinclair               Skelton
D. C. Smith            G. M. Smith            G. R. Smith
J. R. Smith            W. D. Smith            Stewart
Talley                 Taylor                 Thompson

Printed Page 3305 . . . . . Thursday, May 12, 2005

Toole                  Townsend               Tripp
Umphlett               Vaughn                 Vick
White                  Whitmire               Wilkins
Young

STATEMENT OF ATTENDANCE

I came in after the roll call and was present for the Session on Thursday, May 12.

Paul Agnew                        William Witherspoon
Thomas Rhoad                      Glenn Hamilton
Douglas Jennings                  Bessie Moody-Lawrence
Jackson "Seth"  Whipper           William Bowers
Jerry Govan                       Joseph Neal
Fletcher Smith                    David Weeks
Thad Viers                        Bill Cotty
Gloria Haskins                    Gary Simrill

Total Present--119

LEAVE OF ABSENCE

The SPEAKER granted Rep. J. E. SMITH a leave of absence for the day.

DOCTOR OF THE DAY

Announcement was made that Dr. James E. Craigie of Charleston is the Doctor of the Day for the General Assembly.

SPECIAL PRESENTATION

Reps. MCCRAW, PHILLIPS and LITTLEJOHN presented to the House the Gaffney High School "Indians" Basketball Team, the 2005 Class AAAA Champions, their coach and other school officials.

CO-SPONSORS ADDED

In accordance with House Rule 5.2 below:
"5.2   Every bill before presentation shall have its title endorsed; every report, its title at length; every petition, memorial, or other paper, its prayer or substance; and, in every instance, the name of the member presenting any paper shall be endorsed and the papers shall be presented by the member to the Speaker at the desk. After a bill or resolution has been presented and given first reading, no further names of co-sponsors may be added. A member may add his name to a bill or


Printed Page 3306 . . . . . Thursday, May 12, 2005

resolution or a co-sponsor of a bill or resolution may remove his name at any time prior to the bill or resolution receiving passage on second reading. The member or co-sponsor shall notify the Clerk of the House in writing of his desire to have his name added or removed from the bill or resolution. The Clerk of the House shall print the member's or co-sponsor's written notification in the House Journal. The removal or addition of a name does not apply to a bill or resolution sponsored by a committee."

CO-SPONSOR ADDED

Bill Number:   H. 3205 (Word version)
Date:   ADD:
05/12/05   STEWART

CO-SPONSOR ADDED

Bill Number:   H. 3841 (Word version)
Date:   ADD:
05/12/05   LOFTIS

CO-SPONSOR ADDED

Bill Number:   H. 3335 (Word version)
Date:   ADD:
05/12/05   MILLER

S. 49--CONFERENCE REPORT ADOPTED

The Conference Report on the following Bill was taken up:

S. 49 (Word version) -- Senators Hayes, Elliott, Hutto, Leventis, Rankin, Patterson, Land, Short, Richardson, Lourie, McConnell and Courson: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-71-290 SO AS TO REQUIRE HEALTH INSURANCE PLANS TO PROVIDE COVERAGE FOR TREATMENT OF MENTAL ILLNESS, TO ALLOW A PLAN THAT DOES NOT PROVIDE FOR MANAGEMENT OF CARE OR THE SAME DEGREE OF MANAGEMENT OF CARE FOR ALL HEALTH CONDITIONS, TO PROVIDE COVERAGE FOR MENTAL HEALTH TREATMENT THROUGH A MANAGED CARE ORGANIZATION, TO ESTABLISH TREATMENT CONDITIONS TO QUALIFY FOR COVERAGE, TO REQUIRE THE DEPARTMENT OF INSURANCE TO REPORT TO THE GENERAL ASSEMBLY ON THE IMPACT OF THIS ACT ON


Printed Page 3307 . . . . . Thursday, May 12, 2005

HEALTH INSURANCE COSTS, AND TO PROVIDE EXCEPTIONS.

Rep. CATO explained the Conference Report.

The question then recurred to the adoption of the Conference Report.

Rep. TRIPP demanded the yeas and nays which were taken, resulting as follows:

Yeas 92; Nays 10

Those who voted in the affirmative are:

Allen                  Altman                 Anderson
Anthony                Bales                  Ballentine
Barfield               Battle                 Bingham
Brady                  Branham                Breeland
G. Brown               J. Brown               R. Brown
Cato                   Ceips                  Chalk
Chellis                Clark                  Clemmons
Clyburn                Cobb-Hunter            Coleman
Cooper                 Dantzler               Davenport
Delleney               Duncan                 Edge
Emory                  Frye                   Funderburk
Govan                  Hagood                 Haley
Hamilton               Hardwick               Harrell
Harrison               Hayes                  Herbkersman
J. Hines               Hosey                  Huggins
Jefferson              Jennings               Leach
Lee                    Limehouse              Littlejohn
Lucas                  Mack                   Mahaffey
Martin                 McCraw                 McGee
McLeod                 Merrill                Miller
J. M. Neal             Neilson                Ott
Owens                  Parks                  Perry
Phillips               Pinson                 E. H. Pitts
M. A. Pitts            Rice                   Rutherford
Sandifer               Scarborough            Scott
Simrill                Sinclair               Skelton
G. M. Smith            J. R. Smith            Stewart
Taylor                 Thompson               Toole
Townsend               Vaughn                 Vick

Printed Page 3308 . . . . . Thursday, May 12, 2005

Weeks                  Whipper                White
Whitmire               Wilkins

Total--92

Those who voted in the negative are:

Bailey                 Hinson                 Hiott
Kirsh                  Loftis                 Norman
Talley                 Tripp                  Umphlett
Young

Total--10

So, the Conference Report was adopted and a message was ordered sent to the Senate accordingly.

S. 49--ORDERED ENROLLED FOR RATIFICATION

The Report of the Committee of Conference having been adopted by both Houses, and this Bill having been read three times in each House, it was ordered that the title thereof be changed to that of an Act and that it be enrolled for ratification.

ORDERED TO THIRD READING

The following Bills and Joint Resolution were taken up, read the second time, and ordered to a third reading:

H. 4077 (Word version) -- Rep. Hayes: A JOINT RESOLUTION TO PROVIDE FOR A SIX AND ONE-QUARTER MILL INCREASE IN THE LEVY OF TAXES FOR THE FISCAL YEAR BEGINNING JULY 1, 2005, AND ENDING JUNE 30, 2006, AND TO ALLOCATE THE INCREASED REVENUES FOR SCHOOL PURPOSES IN DILLON COUNTY.

S. 660 (Word version) -- Senator Rankin: A BILL TO AMEND SECTION 40-3-240, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LICENSURE REQUIREMENTS FOR ARCHITECTS, SO AS TO DELETE PROVISIONS PROVIDING PARTIAL CREDIT TO APPLICANTS FOR THOSE EXAMINATION SUBJECT AREAS PASSED.

Rep. HUGGINS explained the Bill.


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S. 580 (Word version) -- Senators Knotts, Grooms, Bryant, Reese, Ford, Verdin, Elliott, Short, Mescher, Patterson, Matthews, Land, Thomas, Rankin and Ryberg: A BILL TO AMEND SECTION 10-5-235, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ACCESSIBILITY COMMITTEE FOR THE BUILDING CODES COUNCIL, SO AS TO CLARIFY THAT THE COMMITTEE SHALL ADVISE THE COUNCIL ON MATTERS OF ACCESSIBILITY TO BUILDINGS, STRUCTURES, AND FACILITIES BY PERSONS WITH DISABILITIES.

Rep. HUGGINS explained the Bill.

S. 422 (Word version) -- Senators McConnell, Hayes and Campsen: A BILL TO AMEND ARTICLE 7, TITLE 62 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TRUST ADMINISTRATION, SO AS TO ENACT THE UNIFORM TRUST CODE BY PROVIDING A COMPREHENSIVE CODIFICATION OR RECODIFICATION OF MUCH OF EXISTING TRUST LAW AND SUPPLEMENTING EXISTING COMMON LAW UNLESS THE CODE SPECIFICALLY CONTRADICTS IT, AND PROVIDING, AMONG OTHER THINGS, FOR GENERAL PROVISIONS AND DEFINITIONS INCLUDING A DEFINITION FOR "QUALIFIED BENEFICIARY" AND AN APPLICATION OF THE STATE'S WILL CONSTRUCTION RULES TO THE CONSTRUCTION OF TRUSTS WHEN APPROPRIATE; FOR JUDICIAL PROCEEDINGS AND REPRESENTATION BY OTHERS, ESSENTIALLY RECODIFYING EXISTING VENUE, JURISDICTION, AND REPRESENTATION PROVISIONS; FOR THE RULES FOR CREATION OF TRUSTS INCLUDING THAT A SELF-SETTLED TRUST MUST BE IN WRITING, THAT A TRUST PURPOSE BE LAWFUL AND ACHIEVABLE, THAT A VALID NONCHARITABLE TRUST MAY BE CREATED WITHOUT DEFINITE BENEFICIARIES IN ONLY CERTAIN INSTANCES, THAT AN EARLY TERMINATION OR MODIFICATION OF A NONAMENDABLE IRREVOCABLE TRUST REQUIRES COURT APPROVAL, THAT A COURT MAY MODIFY THE ADMINISTRATIVE OR DISPOSITIVE PROVISIONS OF A TRUST, AND THAT A TRUST MAY BE TERMINATED IF IT CANNOT JUSTIFY ITS ADMINISTRATIVE COSTS, MODIFIED TO ACCOMPLISH THE SETTLOR'S TAX OBJECTIVES, OR DIVIDED OR COMBINED WITH OTHERS TO FACILITATE ADMINISTRATION; FOR RETENTION OF THE


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ABILITY OF THE SETTLOR'S CREDITORS TO REACH THE TRUST PROPERTY IN A TRUST; FOR THE VALIDITY SPENDTHRIFT PROVISION EXCEPT AS TO CHILD SUPPORT AND PROTECTION OF THE SPECIAL NEEDS TRUST; FOR THE PRESUMED REVOCABILITY INSTEAD OF IRREVOCABILITY OF A TRUST, CLARIFICATION OF THE MENTAL CAPACITY FOR CREATING A REVOCABLE TRUST, AND A STATUTE OF LIMITATIONS FOR CONTESTING A REVOCABLE TRUST; AND FOR RULES FOR THE OFFICE OF TRUSTEE, INCLUDING RESIGNATION AND REMOVAL, DUTIES AND POWERS OF TRUSTEES, INCLUDING THE ESSENCE OF SOUTH CAROLINA'S UNIFORM TRUSTEES POWERS ACT AND THE UNIFORM PRUDENT INVESTORS ACT, ADDING A BROADER TRUSTEE POWER AND A STANDARD OF CARE FOR TRUSTEE MATTERS IN ADDITION TO INVESTMENT AND MANAGEMENT, AND THE UNIFORM PRINCIPAL AND INCOME ACT GOVERNING FIDUCIARY ACCOUNTING PRINCIPALS, SUBSTANTIAL RETENTION OF EXISTING LAW CONCERNING LIABILITY OF TRUSTEES AND RIGHTS OF PERSONS DEALING WITH THEM, AND APPLICATION OF THESE PROVISIONS TO EXISTING RELATIONSHIPS; TO AMEND SECTION 27-6-50, RELATING TO EXCEPTIONS TO THE RULE AGAINST PERPETUITIES, SECTION 33-31-152, RELATING TO RIGHTS OF STATES AS TO CORPORATIONS, SECTION 34-15-10, AS AMENDED, RELATING TO A BANK ACTING AS FIDUCIARY, SECTION 62-3-703, RELATING TO GENERAL DUTIES OF A PERSONAL REPRESENTATIVE, SECTION 62-3-913, RELATING TO DISTRIBUTION BY A PERSONAL REPRESENTATIVE TO A TRUSTEE, AND SECTION 62-5-417, RELATING TO THE GENERAL DUTY OF A CONSERVATOR, ALL SO AS TO AMEND CROSS REFERENCES TO CONFORM TO THIS ACT; AND TO REPEAL SECTION 27-5-70.

Rep. SINCLAIR explained the Bill.

H. 3198 (Word version) -- Reps. Harrison, Wilkins, Scarborough and Umphlett: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 9, CHAPTER 21, TITLE 5 SO AS TO ENACT THE "MUNICIPAL FINANCE OVERSIGHT ACT OF 2005" TO CREATE THE MUNICIPAL FINANCE OVERSIGHT


Printed Page 3311 . . . . . Thursday, May 12, 2005

COMMISSION AND AN EXECUTIVE COMMITTEE OF THE COMMISSION, PROVIDE FOR THEIR COMPOSITION, POWERS, DUTIES, AND RESPONSIBILITIES, REQUIRE MUNICIPALITIES TO SUBMIT ANNUAL FINANCIAL REPORTS AND ANNUAL AUDITS, PROVIDE FOR SANCTIONS AGAINST MUNICIPALITIES THAT FAIL TO COMPLY WITH THE COMMISSION'S PLAN FOR REFINANCING, ADJUSTING, OR COMPROMISING A DEBT, PROVIDE PENALTIES FOR AN OFFICER OR EMPLOYEE OF A MUNICIPALITY WHO FAILS TO COMPLY WITH THE PROVISIONS OF ARTICLE 9 OF CHAPTER 21; AND TO AMEND SECTION 6-1-50, RELATING TO THE REQUIREMENT OF A FINANCIAL REPORT SUBMITTED BY COUNTIES AND MUNICIPALITIES TO THE COMPTROLLER GENERAL, SO AS TO REQUIRE THE REPORT BE SUBMITTED INSTEAD TO THE MUNICIPAL FINANCE COMMISSION AND DELETE A REFERENCE TO THE ADVISORY COMMISSION ON INTERGOVERNMENTAL RELATIONS.

Rep. HARRISON explained the Bill.

S. 20 (Word version) -- Senators McConnell, Ritchie, Short, Elliott and Ford: A BILL TO AMEND ARTICLE 9, CHAPTER 11, TITLE 16, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-11-911, RELATING TO THE RECORDING OF MOTION PICTURES IN A MOTION PICTURE THEATER, SO AS TO MAKE UNLAWFUL THE RECORDING IN A MOTION PICTURE THEATER OF A MOTION PICTURE WITHOUT CONSENT; AND TO AMEND SECTION 16-11-920, RELATING TO PENALTIES FOR UNLAWFUL RECORDING, SO AS TO CREATE PENALTIES FOR SUCH ACTION.

Rep. G. M. SMITH explained the Bill.

H. 4077--ORDERED TO BE READ THIRD TIME TOMORROW

On motion of Rep. HAYES, with unanimous consent, it was ordered that H. 4077 (Word version) be read the third time tomorrow.

S. 660--ORDERED TO BE READ THIRD TIME TOMORROW

On motion of Rep. HUGGINS, with unanimous consent, it was ordered that S. 660 (Word version) be read the third time tomorrow.


Printed Page 3312 . . . . . Thursday, May 12, 2005

S. 580--ORDERED TO BE READ THIRD TIME TOMORROW

On motion of Rep. HUGGINS, with unanimous consent, it was ordered that S. 580 (Word version) be read the third time tomorrow.

S. 422--ORDERED TO BE READ THIRD TIME TOMORROW

On motion of Rep. SINCLAIR, with unanimous consent, it was ordered that S. 422 (Word version) be read the third time tomorrow.

H. 3198--ORDERED TO BE READ
THIRD TIME TOMORROW

On motion of Rep. HARRISON, with unanimous consent, it was ordered that H. 3198 (Word version) be read the third time tomorrow.

S. 20--ORDERED TO BE READ THIRD TIME TOMORROW

On motion of Rep. G. M. SMITH, with unanimous consent, it was ordered that S. 20 (Word version) be read the third time tomorrow.

RETURNED TO THE SENATE WITH AMENDMENTS

The following Bills were taken up, read the third time, and ordered returned to the Senate with amendments:

S. 814 (Word version) -- Senators Land and Hutto: A BILL TO AMEND SECTION 12-6-3365, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE TEN-YEAR CORPORATE INCOME TAX MORATORIUM ALLOWED FOR CREATING AND MAINTAINING AT LEAST ONE HUNDRED FULL-TIME NEW JOBS IN COUNTIES THAT MEET CERTAIN UNEMPLOYMENT OR PER CAPITA INCOME REQUIREMENTS, SO AS TO EXTEND THE MORATORIUM TO A TAXPAYER OTHERWISE ELIGIBLE FOR THE MORATORIUM BUT FOR THE REQUIREMENT THAT AT LEAST NINETY PERCENT OF THE TAXPAYER'S TOTAL INVESTMENT IN THIS STATE MUST BE IN THE MORATORIUM COUNTY AND ALLOW THE MORATORIUM WHEN THAT TAXPAYER CREATES AT LEAST ONE HUNDRED NEW JOBS AND INVESTS AT LEAST ONE HUNDRED FIFTY MILLION DOLLARS IN A MANUFACTURING FACILITY IN A SECOND COUNTY DESIGNATED AS DISTRESSED, LEAST DEVELOPED, OR UNDERDEVELOPED WITH THE NINETY PERCENT OVERALL LIMITATION APPLYING TO INVESTMENT IN ONE OR BOTH OF THESE COUNTIES, TO EXTEND THE MORATORIUM SIMILARLY WHEN THE


Printed Page 3313 . . . . . Thursday, May 12, 2005

NUMBER OF JOBS CREATED WOULD ALLOW THE TAXPAYER A FIFTEEN-YEAR MORATORIUM, TO PROVIDE THAT A CHANGE IN BUSINESS FORM DURING THE MORATORIUM PERIOD DOES NOT AFFECT THE MORATORIUM, TO DEFINE "TAXPAYER" TO INCLUDE A GROUP OF AFFILIATED TAXPAYERS, AND TO MAKE CONFORMING AMENDMENTS.

S. 778 (Word version) -- Senators Drummond and O'Dell: A BILL TO AMEND SECTION 7-7-290, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN GREENWOOD COUNTY, SO AS TO REVISE AND ADD CERTAIN VOTING PRECINCTS OF GREENWOOD 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.

ORDERED ENROLLED FOR RATIFICATION

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

S. 784 (Word version) -- Senator Cromer: A BILL TO AMEND SECTION 7-7-420, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN NEWBERRY COUNTY, SO AS TO REVISE AND RENAME CERTAIN VOTING PRECINCTS OF NEWBERRY 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.

S. 573--AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up:

S. 573 (Word version) -- Senators McConnell, Verdin, Rankin, Courson, Elliott and Ford: A BILL TO AMEND SECTION 1-3-240, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO OFFICERS WHO MAY BE REMOVED BY THE GOVERNOR FOR CAUSE, SO AS TO ADD THE DIRECTORS OF THE SOUTH CAROLINA PUBLIC


Printed Page 3314 . . . . . Thursday, May 12, 2005

SERVICE AUTHORITY; TO AMEND SECTION 15-78-60, RELATING TO GOVERNMENTAL IMMUNITY, SO AS TO PROVIDE THAT THE PUBLIC SERVICE AUTHORITY IS NOT LIABLE FOR CERTAIN LOSSES RESULTING FROM CONDUCT OF A DIRECTOR OF THE AUTHORITY; TO AMEND SECTION 15-78-70, RELATING TO THE LIABILITY OF A GOVERNMENTAL EMPLOYEE, SO AS TO PROVIDE THAT A DIRECTOR OF THE PUBLIC SERVICE AUTHORITY IS NOT IMMUNE FROM LIABILITY FOR CERTAIN CONDUCT AND TO PROVIDE THAT THE INSURANCE RESERVE FUND IS PROHIBITED FROM PROVIDING INSURANCE COVERAGE FOR THAT INDIVIDUAL LIABILITY; TO AMEND SECTION 58-3-530, RELATING TO THE DUTIES AND FUNCTIONS OF THE STATE REGULATIONS OF PUBLIC UTILITIES REVIEW COMMITTEE, SO AS TO ADD THE DUTY TO SCREEN CANDIDATES FOR THE BOARD OF DIRECTORS OF THE PUBLIC SERVICE AUTHORITY; TO AMEND SECTION 58-31-20, RELATING TO THE BOARD OF DIRECTORS OF THE PUBLIC SERVICE AUTHORITY, SO AS TO SET FORTH QUALIFICATIONS AND REQUIREMENTS FOR DIRECTORS AND TO PROVIDE FOR THE SCREENING OF DIRECTORS; TO AMEND SECTION 58-31-30, AS AMENDED, RELATING TO THE POWERS OF THE PUBLIC SERVICE AUTHORITY, SO AS TO PROHIBIT THE AUTHORITY FROM DISPOSING OF CERTAIN PROPERTY WITHOUT PRIOR APPROVAL OF THE GENERAL ASSEMBLY OR FROM INQUIRING INTO THE FEASIBILITY OF DISPOSING OF ITS PROPERTY; BY ADDING SECTION 58-31-55 SO AS TO PROVIDE STANDARDS OF CONDUCT FOR DIRECTORS OF THE PUBLIC SERVICE AUTHORITY; BY ADDING SECTION 58-31-56 SO AS TO DEFINE CONFLICT OF INTEREST TRANSACTION; BY ADDING SECTION 58-31-57 SO AS TO PERMIT CUSTOMERS OF THE PUBLIC SERVICE AUTHORITY TO SUE DIRECTORS OF THE AUTHORITY FOR BREACH OF DUTY AND TO PROVIDE DAMAGES; AND TO AMEND SECTION 58-31-110, RELATING TO THE TRANSFER OF NET EARNINGS OF THE PUBLIC SERVICE AUTHORITY, SO AS TO PROVIDE THAT ONLY THE NET EARNINGS NOT NECESSARY FOR THE OPERATION OF AND IN THE BEST INTEREST OF THE PUBLIC SERVICE AUTHORITY SHALL BE PAID TO THE STATE TREASURER AND USED TO REDUCE THE TAX BURDENS ON THE PEOPLE OF THE STATE.

Printed Page 3315 . . . . . Thursday, May 12, 2005

The Labor, Commerce and Industry Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\DKA\ 3412DW05), which was adopted:
Amend the bill, as and if amended, Section 58-31-20(A), page 4, line 12, by deleting /Four/ and inserting / Two /; and by deleting lines 17 through 20, and inserting / director. Each /
When amended subsection (A) reads:
/ (A)   Such The Public Service Authority shall consist consists of a board of eleven directors to be who reside in South Carolina and who shall have the qualifications stated in this section, as determined by the State Regulation of Public Utilities Review Committee pursuant to Section 58-3-530(14), before being appointed by the Governor with the advice and consent of the Senate as follows: one from each congressional district of the State; one from each of the counties of Horry, Berkeley, and Georgetown who reside in authority territory and are customers of the authority and two shall be from the State at large, one of whom shall be chairman and the other of whom. Two of the directors shall have had substantial work experience with within the operations of electric cooperatives or substantial experience on an electric cooperative board, but must not serve as an employee or board member of an electric cooperative during their term as director. Each director shall serve for a term of seven years and until his successor is appointed and qualifies, except that the present directors, including the chairman, shall serve until their terms of office expire and the directors first appointed from Horry, Berkeley and Georgetown Counties shall be appointed for terms of five, six and seven years respectively as determined by lot, such terms to commence May 19, 1974, except as provided in this section. At the expiration of the term of each director and of each succeeding director, the Governor shall must appoint with the advice and consent of the Senate a successor, who shall hold office for a term of seven years, or until his successor has been appointed and qualified. In the event of a director vacancy occurring in the office of a director by due to death, resignation, or otherwise, the Governor shall must appoint his the director's successor, only with the advice and consent of the Senate and he the successor-director shall hold office for the unexpired term. No director shall receive a salary for services as director until the authority is in funds, but each director shall must be paid his actual expense in the performance of his duties hereunder, the same actual expense to be advanced from the contingent fund of the Governor until such time as the Public Service Authority is in funds, at which time the contingent fund shall be reimbursed. After the Public

Printed Page 3316 . . . . . Thursday, May 12, 2005

Service Authority is in funds, the compensation and expenses of each member of the board shall be paid from such funds, and the same shall compensation and expenses must be fixed by the advisory board hereinafter established. Members of the board of directors may be removed for cause, as established in Section 1-3-240(C), by the Governor of the State, the advisory board, or a majority thereof. No member of the General Assembly of the State of South Carolina shall be eligible for appointment as director of the Public Service Authority during the term of his office. Not No more than two members from the same county shall serve as directors at any time.
Amend further, by striking item (14), Section 58-31-30(A), SECTION 6, beginning on page 7 and line 38, and inserting:
/ (14)   from time to time as necessary to borrow money, make and issue negotiable notes, bonds, and other evidences of indebtedness, including refunding and advanced refunding notes, bonds, and other evidences of indebtedness, of the Public Service Authority; to secure the payment of such these obligations or any part thereof of them by mortgage, lien, pledge, or deed of trust, on all or any of its property, contracts, franchises, or revenues, including the proceeds of any such the refunding and advanced refunding notes, bonds, and other evidences of indebtedness and the investments in which such these proceeds are invested and the earning on and income therefrom from them; to invest its moneys monies, including without limitation its revenues and the proceeds of such these notes, bonds, or other evidences of indebtedness, in obligations of, or obligations the principal of and interest on which are guaranteed by or are fully secured by contracts with, the United States of America, in obligations of any agency, instrumentality, or corporation which has been or may hereafter be created by or pursuant to an act of Congress of the United States as an agency, instrumentality, or corporation thereof of them, in direct and general obligations of the State of South Carolina, and in certificates of deposit issued by any bank, trust company, or national banking association;. provided, however, that The authority, when investing in certificates of deposit, shall invest in certificates of deposit issued by institutions authorized to do business in South Carolina if such the institutions offer terms which, in the opinion of the authority, are equal to or better than those offered by other institutions; to make such agreements with the purchasers or holders of such the notes, bonds, or other evidences of indebtedness, or with others in connection with any such of these notes, bonds, or other evidences of indebtedness, whether issued or to be issued, as the Public Service

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Authority shall deem advisable; and in general to provide for the security for said notes, bonds, or other evidences of indebtedness and the rights of the holders thereof of them; provided, that in the exercise of the powers herein in this section granted to issue advanced refunding notes, bonds, or other evidences of indebtedness, the Public Service Authority, may, but shall is not be required to, avail itself of or comply with any of the provisions of the Advanced Refunding Act, Sections 11-21-10 to 11-21-80; /
Amend further, Section 58-31-30(A)(23), SECTION 6, by striking the second paragraph, beginning on page 10 and line 37 through page 11, line 16, and inserting:
/ Without limiting the generality of the foregoing, the Public Service Authority shall have power and is hereby authorized from time to time as necessary to issue its negotiable bonds and to secure the payment of the same by mortgage, lien, pledge, or deed of trust, on or of all or any of its property, contracts, franchises, or revenues. Said These bonds shall must be authorized by resolution of the board of directors and shall bear such the date or dates, be in such the forms, and contain such the provisions, as the board of directors may determine. Any resolution or resolutions authorizing any notes, bonds, or other evidences of indebtedness may contain provisions, which shall must be a part of the contract with the holders thereof of them, as to (a) the rates of tolls and other charges for use of the facilities of, or for the services rendered by, or for the commodities furnished by, the Public Service Authority, (b) the setting aside of reserves or sinking funds and the regulation and disposition thereof of them, (c) reserving the right to redeem the notes, bonds, or other evidences of indebtedness at such prices, not exceeding one hundred five per cent of the principal amount thereof of them and accrued interest, as may be provided, (d) limitations on the issuance of additional bonds, (e) the terms and provisions of any mortgage or deed of trust securing the bonds or under which the same may be issued and (f) any other or additional agreements with the holders of such the notes, bonds, or other evidences of indebtedness. /
Amend further, beginning on page 11, line 41, by striking Section 38-31-30(B), SECTION 6, and inserting:
/   (B)   The powers herein conferred by subsection (A) upon the board of directors shall may not be construed to give the board of directors the power to sell, lease, or dispose of, except by way of mortgage or deed of trust, all of the physical property, real, personal, or mixed, of the authority, but the board of directors may sell, lease, or

Printed Page 3318 . . . . . Thursday, May 12, 2005

dispose of any surplus property which it may acquire and which said the board of directors shall deem deems not to be necessary for the purpose of the development. Without prior approval from the General Assembly by act, the authority must not sell, transfer, lease, dispose of, or convey any property, real, personal, or mixed, of the authority used in the generation, transmission, or distribution of electricity, beyond that property considered to be surplus. However, the authority may lease property owned by the authority, including property within the authority's Federal Energy Regulatory Commission Project boundaries, provided the lease does not substantially or materially impair its ability to meet electricity generation, transmission, and distribution needs of its ongoing operation, including an adequate reserve capacity and such growth in needs as reasonably may be forecasted. Further, the lease must be in the best interests of the authority as defined in Section 51-31-55(A)(3).

Without prior approval from the General Assembly by act, the authority must not inquire into the feasibility of the sale, transfer, lease, disposal, or conveyance of property, real, personal, or mixed, of the authority that is used in the generation, transmission, or distribution of electricity unless the sale, transfer, lease, disposition, or conveyance would not materially impair the authority's ability to meet generation, transmission, and distribution needs of its ongoing operation, including an adequate reserve capacity and such growth in needs as reasonably may be forecasted. /
Renumber sections to conform.
Amend title to conform.

Rep. SANDIFER explained the amendment.
The amendment was then adopted.

The Bill, as amended, was read the second time and ordered to third reading.

OBJECTION TO MOTION

Rep. CATO asked unanimous consent that S. 573 (Word version) be read a third time tomorrow.
Rep. HAGOOD objected.


Printed Page 3319 . . . . . Thursday, May 12, 2005

S. 596--AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up:

S. 596 (Word version) -- Senator Sheheen: A BILL TO AMEND SECTION 56-7-10, AS AMENDED, RELATING TO THE USE OF THE UNIFORM TRAFFIC TICKET BY ALL LAW ENFORCEMENT OFFICERS, SO AS TO DELETE THE PROVISION THAT ALLOWS A LAW ENFORCEMENT AGENCY TO AUTOMATE THE ISSUANCE OF A UNIFORM TICKET IF APPROVED BY THE DEPARTMENT, AND PROVIDE THAT A LAW ENFORCEMENT AGENCY MAY UTILIZE COMPUTERS AND OTHER ELECTRONIC DEVICES TO ISSUE UNIFORM TRAFFIC CITATIONS AND STORE INFORMATION RESULTING FROM THE ISSUANCE OF A TRAFFIC CITATION IF THIS METHOD OF ISSUING A CITATION HAS BEEN APPROVED BY THE DEPARTMENT OF PUBLIC SAFETY; AND TO AMEND SECTION 56-7-30, AS AMENDED, RELATING TO THE PRINTING, ORDERING, AND PURCHASING OF UNIFORM TRAFFIC TICKETS, AND THE FILING OF THE VARIOUS COPIES OF THE TICKET WITH THE APPROPRIATE AGENCIES, SO AS TO PROVIDE THE PROCEDURE THAT A LAW ENFORCEMENT AGENCY THAT ISSUES UNIFORM TRAFFIC TICKETS IN AN ELECTRONIC FORMAT MUST DISTRIBUTE COPIES OF THE TICKET TO VARIOUS ENTITIES.

The Judiciary Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\SWB\6541CM05), which was adopted:
Amend the bill, as and if amended, Section 56-7-30(B) as contained in SECTION 3, page 5, by striking Section 56-7-30(B) in its entirety and inserting:
/ "(B)   A law enforcement agency that issues uniform traffic tickets in an electronic format as provided in Section 56-7-10 may generate a printed copy of this ticket by using an in-car data terminal or hand held device. A copy of the ticket must be given to the offender. The agency may then transmit the ticket data electronically to the Department of Motor Vehicles for its records and for audit purposes, the law enforcement agency by which the arresting officer is employed, and the trial officer for his records. If any of these entities does not have the capability to accept the ticket data solely using electronic means, the arresting agency must provide the entity with a printed copy of the ticket generated by the in-car data terminal or hand held device. Data


Printed Page 3320 . . . . . Thursday, May 12, 2005

transmissions to the Department of Motor Vehicles must be made pursuant to that agency's electronic system specifications. Printed copies provided to the Department of Motor Vehicles must meet that agency's document processing requirements." /
Renumber sections to conform.
Amend title to conform.

Rep. G. M. SMITH explained the amendment.
The amendment was then adopted.

The Bill, as amended, was read the second time and ordered to third reading.

S. 596--ORDERED TO BE READ THIRD TIME TOMORROW

On motion of Rep. G. M. SMITH, with unanimous consent, it was ordered that S. 596 (Word version) be read the third time tomorrow.

S. 535--POINT OF ORDER

The following Bill was taken up:

S. 535 (Word version) -- Senators Hutto, Moore, Ryberg, Richardson and Pinckney: A BILL TO AMEND SECTION 50-13-237, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE HARVEST OF STRIPED BASS AND STRIPED BASS HYBRIDS IN PORTIONS OF THE SAVANNAH RIVER, SO AS TO MAKE IT UNLAWFUL TO POSSESS MORE THAN TWO STRIPED BASS, STRIPED BASS HYBRIDS, WHITE BASS, OR ANY COMBINATION OF THESE SPECIES IN CERTAIN PORTIONS OF THE SAVANNAH RIVER AND TO PROVIDE THAT ANY LAWFUL POSSESSED FISH OF EACH OF THESE SPECIES MUST BE A MINIMUM OF TWENTY-SEVEN INCHES IN TOTAL LENGTH; AND TO REPEAL SECTION 50-13-120 RELATING TO NO SIZE LIMITS ON CERTAIN FRESH WATER FISH.

POINT OF ORDER

Rep. DUNCAN made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.


Printed Page 3321 . . . . . Thursday, May 12, 2005

S. 291--POINT OF ORDER

The following Bill was taken up:

S. 291 (Word version) -- Senators Gregory and Knotts: A BILL TO AMEND SECTION 50-9-510, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LICENSES AUTHORIZED FOR SALE BY THE DEPARTMENT, SO AS TO REVISE THE AGE AND FEE REQUIREMENTS FOR A STATEWIDE LIFETIME HUNTING AND FISHING LICENSE.

POINT OF ORDER

Rep. DUNCAN made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.

S. 289--POINT OF ORDER

The following Bill was taken up:

S. 289 (Word version) -- Senator Gregory: A BILL TO AMEND SECTION 50-11-2420, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO COMMERCIAL FUR LICENSES, SO AS TO INCREASE THE LICENSE FEES; TO AMEND SECTION 50-11-2460, AS AMENDED, RELATING TO THE TRAPPING OF FURBEARERS, SO AS TO FURTHER PROVIDE FOR THE TYPES OF TRAPS WHICH MAY BE USED; TO AMEND SECTION 50-11-2475, AS AMENDED, RELATING TO A FUR PROCESSOR'S LICENSE, SO AS TO FURTHER PROVIDE FOR THOSE PERSONS WHO ARE REQUIRED TO OBTAIN A LICENSE AND FOR THOSE WHO ARE NOT; TO AMEND SECTION 50-11-2480, AS AMENDED, RELATING TO PERSONS WHO ARE NOT REQUIRED TO OBTAIN A FUR BUYER'S LICENSE, SO AS TO MAKE A TECHNICAL CORRECTION; TO AMEND SECTION 50-11-2490, AS AMENDED, RELATING TO FUR BUYERS AND PROCESSORS REQUIRED TO KEEP A DAILY REGISTER, SO AS TO FURTHER PROVIDE FOR THOSE PERSONS REQUIRED TO KEEP SUCH A REGISTER AND THE CONTENTS OF THE REGISTER; TO AMEND SECTION 50-11-2510, AS AMENDED, RELATING TO THE TAGGING OF BOBCAT AND OTTER FURS, PELTS, AND HIDES AND THE ISSUANCE AND FEES FOR


Printed Page 3322 . . . . . Thursday, May 12, 2005

THOSE TAGS, SO AS TO REVISE THOSE PERSONS REQUIRED TO HAVE SUCH A TAG AND THE FEES AND PROCEDURES FOR THOSE TAGS; TO AMEND SECTION 50-11-2515, AS AMENDED, RELATING TO THE UNLAWFUL TRAFFICKING IN FURS OR FURBEARING ANIMALS, SO AS TO FURTHER PROVIDE FOR THE ELEMENTS OF THIS OFFENSE; TO AMEND SECTION 50-11-2540, AS AMENDED, RELATING TO THE COMMERCIAL TRAPPING SEASON FOR FURBEARING ANIMALS, SO AS TO REVISE THE LENGTH OF THIS SEASON; TO AMEND SECTION 50-11-2560, AS AMENDED, RELATING TO THE PENALTIES FOR VIOLATING THE PROVISIONS OF CERTAIN FUR AND FURBEARING PROVISIONS OF LAW, SO AS TO FURTHER PROVIDE FOR THOSE PROVISIONS TO WHICH THESE PENALTIES APPLY; TO AMEND SECTION 50-11-2610, RELATING TO FOX AND COYOTE HUNTING ENCLOSURE PERMITS, SO AS TO REVISE THE PERMIT YEAR; AND TO REPEAL SECTION 50-11-2500 RELATING TO PERMITS TO HOLD FURS BEYOND THE END OF THE REGULAR SEASON FOR TAKING FUR BEARING ANIMALS.

POINT OF ORDER

Rep. DUNCAN made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.

S. 184--POINT OF ORDER

The following Joint Resolution was taken up:

S. 184 (Word version) -- Senators Leatherman, Grooms, Mescher, Williams and McGill: A JOINT RESOLUTION TO CREATE THE FRANCIS MARION TRAIL COMMISSION TO ESTABLISH A HERITAGE AND TOURISM TRAIL HONORING FRANCIS MARION'S REVOLUTIONARY CAMPAIGNS AND TO ESTABLISH THE COMMISSION'S MEMBERSHIP, DUTIES, AND RELATED MATTERS.

POINT OF ORDER

Rep. DUNCAN made the Point of Order that the Joint Resolution was improperly before the House for consideration since its number


Printed Page 3323 . . . . . Thursday, May 12, 2005

and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.

S. 738--POINT OF ORDER

The following Joint Resolution was taken up:

S. 738 (Word version) -- Agriculture and Natural Resources Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE CLEMSON UNIVERSITY, STATE CROP PEST COMMISSION, RELATING TO DESIGNATION OF PLANT PEST, DESIGNATED AS REGULATION DOCUMENT NUMBER 2939, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

POINT OF ORDER

Rep. DUNCAN made the Point of Order that the Joint Resolution was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.

S. 618--POINT OF ORDER

The following Bill was taken up:

S. 618 (Word version) -- Senators Alexander, Setzler, Short, Verdin and Knotts: A BILL TO ENACT THE STATE RETIREMENT SYSTEM PRESERVATION AND INVESTMENT REFORM ACT BY AMENDING SECTION 9-1-1790, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE EARNING LIMIT APPLICABLE TO RETIRED MEMBERS OF THE SOUTH CAROLINA RETIREMENT SYSTEM WHO RETURN TO COVERED EMPLOYMENT, SO AS TO REQUIRE THESE MEMBERS TO PAY THE EMPLOYEE CONTRIBUTION FOR ACTIVE MEMBERS; BY AMENDING SECTION 8-11-620, AS AMENDED, RELATING TO LUMP SUM PAYMENTS FOR ANNUAL LEAVE FOR STATE EMPLOYEES, SO AS TO POSTPONE THIS LUMP SUM FOR TERI PARTICIPANTS UNTIL THE EMPLOYEE ENDS TERI PARTICIPATION; BY AMENDING SECTION 9-1-2210, RELATING TO THE TERI PROGRAM, SO AS TO REQUIRE TERI PROGRAM PARTICIPANTS TO PAY THE


Printed Page 3324 . . . . . Thursday, May 12, 2005

EMPLOYEE CONTRIBUTION FOR ACTIVE MEMBERS, TO DELAY UNTIL A MEMBER ENDS PARTICIPATION THE INCLUSION OF THE APPLICABLE AMOUNT OF THE MEMBERS UNUSED ANNUAL LEAVE IN THE CALCULATION OF AVERAGE FINAL COMPENSATION, TO PROVIDE FOR THE RECALCULATION OF AVERAGE FINAL COMPENSATION WHEN THE MEMBER ENDS PARTICIPATION IN TERI FOR PURPOSES OF THE MEMBERS' FUTURE RETIREMENT BENEFITS OR OF A BENEFICIARY OF FUTURE BENEFITS ON THE DEATH OF A TERI PARTICIPANT WHO ELECTED A SURVIVOR OPTION, TO PROVIDE THAT A TERI PARTICIPANT UPON ENDING TERI PARTICIPATION MUST LEAVE COVERED EMPLOYMENT AND IS NOT ELIGIBLE TO RETURN TO COVERED EMPLOYMENT WITH THE SOUTH CAROLINA RETIREMENT OR THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, AND TO PROVIDE EXCEPTIONS FOR CERTAIN TEACHERS AND PRINCIPALS; BY ADDING SECTIONS 9-1-490 AND 9-1-1520 SO AS TO ESTABLISH TWO CLASSES OF SERVICE FOR PERSONS BECOMING SOUTH CAROLINA RETIREMENT SYSTEM MEMBERS AFTER 2005 AND PROVIDE A RETIREMENT OPTION FOR THESE PERSONS AT ANY AGE WITH TWENTY-EIGHT YEARS OF CREDITABLE SERVICE WITH A PENALTY FACTOR FOR THEIR EARLY RETIREMENT, BY AMENDING SECTIONS 9-1-10, 9-1-1020, 9-1-1140, 9-1-1510, 9-1-1515, 9-1-1550, AND 9-1-1660, ALL AS AMENDED, RELATING TO DEFINITIONS, CONTRIBUTIONS, SERVICE CREDIT, RETIREMENT AND EARLY RETIREMENT, AND CALCULATION OF BENEFITS FOR PURPOSES OF THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO CLOSE TWENTY-EIGHT YEARS OF CREDITABLE SERVICE RETIREMENT AT ANY AGE FOR PERSONS BEGINNING PARTICIPATION IN THE SOUTH CAROLINA RETIREMENT SYSTEM AFTER 2005, TO PROVIDE EXCEPTIONS, TO DESIGNATE THOSE PERSONS "GRANDFATHERED" AS SCRS28 PARTICIPANTS, TO DESIGNATE PARTICIPANTS AFTER 2005 AS SCRS30 PARTICIPANTS AND PROVIDE FOR THEIR RETIREMENT QUALIFICATIONS, SERVICE REQUIREMENTS, INCLUDING THE ELECTION OF CLASS B SERVICE WITH A HIGHER MULTIPLIER, HIGHER EMPLOYEE CONTRIBUTIONS, AND PENALTY FOR RETIREMENT BEFORE THIRTY YEARS OF CREDITABLE SERVICE AND TO MAKE

Printed Page 3325 . . . . . Thursday, May 12, 2005

CONFORMING AMENDMENTS; BY AMENDING 9-1-1310, AS AMENDED, RELATING TO THE STATE BUDGET AND CONTROL BOARD AS TRUSTEE OF THE STATE RETIREMENT SYSTEM, SO AS TO CONFORM THIS REFERENCE TO THE RETIREMENT SYSTEM INVESTMENT COMMISSION ESTABLISHED IN THIS ACT AND ALLOW EQUITY INVESTMENTS AS PERMITTED IN THE CONSTITUTION OF THIS STATE; BY AMENDING SECTIONS 9-16-10, 9-16-80, AND 9-16-90, RELATING TO DEFINITIONS, MEETINGS, AND REPORTING FOR PURPOSES OF INVESTMENTS OF RETIREMENT SYSTEM FUNDS BY THE STATE BUDGET AND CONTROL BOARD, SO AS TO CONFORM THESE PROVISIONS TO THE ROLE OF THE RETIREMENT SYSTEM INVESTMENT COMMISSION ESTABLISHED IN THIS ACT; BY AMENDING ARTICLE III, CHAPTER 9 OF THE 1976 CODE, SO AS TO REVISE THE DUTIES OF THE STATE RETIREMENT SYSTEMS INVESTMENT PANEL, ESTABLISH THE RETIREMENT SYSTEM INVESTMENT COMMISSION AND PROVIDE FOR ITS MEMBERS, POWERS, AND DUTIES AS TRUSTEE OF THE ASSETS AND INVESTOR OF THE FUNDS OF THE STATE RETIREMENT SYSTEM, CONFORM THE INVESTMENT REQUIREMENTS TO THE ROLE OF THIS COMMISSION INCLUDING THE VESTING IN IT OF ALL INVESTMENT AUTHORITY AND THE ELIMINATION OF A MAXIMUM LIMIT ON EQUITY INVESTMENTS AND ESTABLISH ADDITIONAL STANDARDS OF CONDUCT FOR FIDUCIARIES; BY AMENDING SECTION 8-17-310, AS AMENDED, RELATING TO EXEMPTIONS FROM THE STATE EMPLOYEE GRIEVANCE PROCEDURE ACT, SO AS TO EXEMPT EMPLOYEES OF THE RETIREMENT SYSTEM INVESTMENT COMMISSION; BY AMENDING SECTION 30-4-70, AS AMENDED, RELATING TO MEETINGS EXEMPT FROM THE FREEDOM OF INFORMATION ACT, SO AS TO CONFORM THE EXEMPTION TO THE PROVISIONS OF THIS ACT, TO PROVIDE FOR AN ASSUMED INVESTMENT RETURN ON RETIREMENT SYSTEM ASSETS OF NOT LESS THAN EIGHT PERCENT A YEAR, AND TO PROVIDE TRANSITION PROVISIONS.

The Ways and Means Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\GGS\22171HTC05):


Printed Page 3326 . . . . . Thursday, May 12, 2005

Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/   SECTION   1.   Section 8-11-40 of the 1976 Code, as last amended by Act 295 of 2004, is further amended by adding a new subsection at the end to read:

"(D)   A retired member of the South Carolina Retirement System who is hired by an agency to fill all or some fraction of a full-time equivalent (FTE) position is allowed fifteen working days sick leave each calendar year for use during the calendar year. Such an employee hired after the beginning of a calendar year is allowed a pro-rata share of sick leave at the rate of one and one-fourth working days leave for each full month remaining in the calendar year. A retired member of the South Carolina Retirement System who is granted sick leave according to this subsection may not carry over sick leave into future years."
SECTION   2.   Section 8-11-610 of the 1976 Code is amended by adding a new paragraph at the end to read:

"A retired member of the South Carolina Retirement System who is hired by an agency to fill all or some fraction of a full-time equivalent (FTE) position is allowed fifteen working days annual leave each calendar year for use during the calendar year. Such an employee who is hired after the beginning of a calendar year is allowed a pro-rata share of annual leave at the rate of one and one-fourth working days leave for each full month remaining in the calendar year. An employee allowed annual leave pursuant to this paragraph may not carry over annual leave into future years."
SECTION   3.   Section 8-11-620(A) of the 1976 Code, as last amended by Act 356 of 2002, is further amended to read:

"(A)(1)   Upon termination from state employment, an employee may take both annual leave and a lump-sum payment for unused leave, but in no event shall such this combination may not exceed forty-five days in a calendar year except as provided for in Section 8-11-610. If an employee dies, his the employee's legal representative shall be is entitled to a lump-sum payment for his the employee's unused leave, not to exceed forty-five working days, except as provided for in Section 8-11-610.

(2)   Upon retirement from state employment, or upon the death of an employee if the member does not elect to participate in the Teacher and Employee Retention Incentive Program, a lump-sum payment will be made must be paid for unused leave, not to exceed forty-five days, unless a higher maximum is approved under the


Printed Page 3327 . . . . . Thursday, May 12, 2005

provisions of pursuant to Section 8-11-610, and without regard to the earned leave taken during the calendar year in which the employee retires.

(3)   Upon retirement from state employment, if the employee participates in the Teacher and Employee Retention Incentive Program, the employee shall not receive payment for unused annual leave until the employee terminates from state employment and ends participation in the Teacher and Employee Retention Incentive Program. Upon termination of state employment and participation in the Teacher and Employee Retention Incentive Program, a lump-sum must be paid for unused leave, not to exceed forty-five days, unless a higher maximum is approved pursuant to Section 8-11-610, and without regard to the earned leave taken during the calendar year in which the employee retires."
SECTION   4.   A.   Items (14), (15), and (16) of Section 8-17-370 of the 1976 Code, as last amended by Act 356 of 2002, are further amended to read:

"(14)   employees of the Medical University Hospital Authority, provided the Medical University Hospital Authority has promulgated an employee grievance plan in accordance with its enabling provision; and

(15)   presidents of the South Carolina Technical College System.;

(16)   a retired member of the South Carolina Police Officers Retirement System or a retired member of the South Carolina Retirement System who is hired by an agency to fill all or some fraction of a full-time equivalent (FTE) position covered by the State Employee Grievance Procedure Act; and"
B.   Section 8-17-370 of the 1976 Code, as last amended by Act 356 of 2002, is further amended by adding a new item at the end to read:

"(17)   notwithstanding the provisions of Section 9-1-2210(E), any participant in the Teacher and Employee Retention Incentive Program."
SECTION   5.   The third undesignated paragraph of Section 9-1-1020 of the 1976 Code, as last amended by Act 475 of 1988, is further amended to read:

"The rates of the deductions must be, without regard to a member's coverage under the Social Security Act, as follows: in the case of Class One members, five percent of earnable compensation and, in the case of Class Two members, six percent of earnable compensation. The rates of the deductions, without regard to a member's coverage under the Social Security Act, must be the


Printed Page 3328 . . . . . Thursday, May 12, 2005

percentage of earnable compensation as provided in the following schedule:

Class One       Class Two
Before July 1, 2005       5             6
July 1, 2005 through
June 30, 2006             5.25           6.25
After June 30, 2006       5.50           6.50"
SECTION   6.   A.   Article 9, Chapter 1, Title 9 of the 1976 Code is amended by adding:

"Section 9-1-1175.   Effective July 1, 2006, the board shall increase the employer contribution rate for the system by one-half percent of the earnable compensation of all members employed by an employer participating in the system. The board shall further increase the employer contribution rate by one-half percent effective July 1, 2007. The employer rate provided in this section also applies to payments for unused annual leave under the circumstances provided in Section 9-1-1020. The employer rate provided in this section includes the system's normal contribution rate and accrued liability contribution rate, but does not include contributions for group life insurance or other benefits that are remitted to the retirement systems. Contributions for group life insurance or other benefits are in addition to the applicable employer contribution rate. After June 30, 2007, the board, in its discretion, may increase or decrease the employer contribution rate set by this section based on the actuarial valuation provided to the board by the system's actuaries and considering the normal contribution rate determined pursuant to Section 9-1-1060 and the accrued liability contribution rate determined pursuant to Section 9-1-1070."
B.   Section 9-20-50 of the 1976 Code, as amended by Act 54 of 2001, is further amended to read:

"Section 9-20-50.   Each participant shall contribute monthly to the program the same amount he would be required to contribute to the South Carolina Retirement System if the participant were a member of that system. Participant contributions must be made by employer pick up in accordance with Section 9-1-1160(B) and any applicable provisions of the Internal Revenue Code of 1986. Each employer shall contribute on behalf of each participant five percent of compensation. Deductions must not be made from this five percent contribution. Each employer shall remit to the designated companies, for application to participants' contracts or accounts, or both, an amount equal to the participant's contribution plus the employer's contribution in accordance with the guidelines established by the Internal Revenue


Printed Page 3329 . . . . . Thursday, May 12, 2005

Service for payroll tax remittance. The employer shall remit to the retirement system two and fifty-five hundredths percent the percentage of the employee's compensation that is the difference between the system employer contribution rate set in Section 9-1-1175 and the five percent allocated to member accounts in this section, in accordance with the guidelines established for remitting retirement contributions to the South Carolina Retirement System. The South Carolina Retirement System may retain from this employer contribution an amount as determined by the director to defray any reasonable expenses incurred in performing services regarding the plan. These services may include, but are not limited to:

(1)   participant education regarding the merits and risks associated with selection of defined contribution plans versus defined benefit plans;

(2) on-going investment education, where appropriate;

(3) recordkeeping; and

(4) monitoring contract compliance."
C.   Sections 9-1-1200 and 9-1-1220 of the 1976 Code are repealed.
SECTION   7.   Section 9-1-1770 of the 1976 Code, as last amended by Act 1 of 2001, is further amended to read:

"Section 9-1-1770.   (A)   Effective July 1, 1968, There shall be is created the Preretirement Death Benefit Program, which shall be effective as of that date to for all employers under the system except counties, municipalities, and other political subdivisions, as well as those and those state departments, agencies, or other institutions which pay directly to the system the total employer contributions for the participating members in their employ.

(B)   The program shall be is available to those employers exempted in the preceding paragraph subsection (A) by written application of such the employer. An application shall be is an irrevocable commitment to participate under the program. For applications received by the System prior to October 1, 1968, the effective date of the coverage shall be July 1, 1968. For all other applications the Applications are effective date shall be July first next following the date of receipt by the system of the application.

(C)(1)   Upon receipt of proof, satisfactory to the board, of the death of: (a) a contributing member in service who had completed at least one full year of membership in the system or of the death of a contributing member as a result of an injury arising out of and in the course of the performance of his duties regardless of length of membership, as of the effective date of his employer's participation, or


Printed Page 3330 . . . . . Thursday, May 12, 2005

(b) a retired contributing member of the system, there must be paid to the person he nominated for the refund of his accumulated contributions, unless he has nominated a different beneficiary by written designation filed with the board, in the event of his death pursuant to Section 9-1-1650, if the person is living at the time of the member's death, otherwise to the member's estate, a death benefit equal to the annual earnable compensation of the member at the time his death occurs. The death benefit is payable apart and separate from the payment of the member's accumulated contributions on his death pursuant to Sections 9-1-1650 or 9-1-1660.

(2)   For purposes of this section subsection, a member described in item (1)(a) is considered to be in service at the date of his death if the last day the member was employed in a continuous, regular pay status, while earning regular or unreduced wages and regular or unreduced retirement service credit, whether the member was physically working on that day or taking continuous accrued annual leave or sick leave while receiving a full salary, occurred not more than ninety days before the date of his death and he has not retired.

(3)   For purposes of this subsection, a member described in (1)(b) is considered a retired contributing member if the last day the member was employed in a continuous, regular pay status, while earning regular or unreduced wages and paying retirement system contributions whether the member was physically working on that day or taking continuous accrued annual leave or sick leave while receiving a full salary, occurred not more than ninety days before the date of his death.

(D)   The board is authorized to may take such the action as may be necessary to provide the death benefit under this section in the form of group life insurance upon a determination that to do so would guarantee a more favorable tax treatment of the benefit to beneficiaries to whom such the benefit is payable.

(E)   Upon the death of a retired member who is not a retired contributing member after December 31, 2000, there must be paid to the designated beneficiary or beneficiaries, if living at the time of the retired member's death, otherwise to the retired member's estate, a life insurance benefit of one two thousand dollars if the retired member had ten years of creditable service but less than twenty years, two four thousand dollars if the retired member had twenty years of creditable service but less than twenty-eight, and three six thousand dollars if the retired member had at least twenty-eight years of creditable service at the time of retirement, provided if the retired member's most recent


Printed Page 3331 . . . . . Thursday, May 12, 2005

employer, prior to before the member's retirement, is covered by the Group Life Insurance Program.

Upon the death of a retired member after June 30, 2000, the life insurance benefit otherwise due the member's beneficiary, beneficiaries, or estate under the above paragraph is increased as follows: one thousand dollars is increased to two thousand dollars, two thousand dollars is increased to four thousand dollars, and three thousand dollars is increased to six thousand dollars."
SECTION   8.   Section 9-1-1790 of the 1976 Code, as last amended by Act 25 of 2001, is further amended to read:

"Section 9-1-1790.   (A)   A retired member of the system who has been retired for at least sixty fifteen consecutive calendar days may be hired and return to employment covered by the this system or any other system provided in this title 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 this system or any other system provided in this title sooner than sixty fifteen 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.

(B)   An employer shall pay to the system the employer contribution for active members prescribed by law with respect to any retired member engaged to perform services for the employer, regardless of whether the retired member is a full-time or part-time employee or a temporary or permanent employee. If an employer who is obligated to the system pursuant to this subsection fails to pay the amount due, as determined by the system, the amount must be deducted from any funds payable to the employer by the State.

(C)   A retired member shall pay to the system the employee contribution as if the member were an active contributing member if an employer participating in the system employs the retired member. The retired member does not accrue additional service credit in the system


Printed Page 3332 . . . . . Thursday, May 12, 2005

by reason of the contributions required pursuant to this subsection and subsection (B) of this section."
SECTION   9.   Section 9-1-1810 of the 1976 Code, as last amended by Act 1 of 2001, is further amended to read:

"Section 9-1-1810.   (A)   As of the end of each calendar year, the increase in the ratio of the Consumer Price Index to the index as of the prior December thirty-first must be determined,. and

(B)(1)   If the increase equals or exceeds four Consumer Price Index as determined pursuant to subsection (A) of this section increases by no more than one percent, the retirement allowance, inclusive of the supplemental allowances payable under the provisions of Sections 9-1-1910, 9-1-1920, and 9-1-1930, of each beneficiary in receipt of an allowance must be increased by four percent. If the increase in the index is less than four percent, the retirement allowance, inclusive of supplemental allowances, all as determined above, must be increased by a percentage equal to the increase in the index.

(2)   If the Consumer Price Index as determined pursuant to subsection (A) of this section increases by more than one percent, then:

(a)   the retirement allowance of each beneficiary in receipt of an allowance, inclusive of the supplement allowances payable under the provisions of Sections 9-1-1910, 9-1-1920, and 9-1-1930, must be increased by one percent; and

(b)   the retirement allowance may be further increased beyond one percent up to the lesser of the total percentage increase in the Consumer Price Index or four percent, to the extent that the additional liabilities because of the increase in allowances would not extend the amortization period to liquidate the unfunded actuarial accrued liability of the South Carolina Retirement System beyond thirty years.

(C)   The increase in retirement allowances commences the July first immediately following the December thirty-first that the increase in ratio was determined, and all increases in retirement allowances must be granted to these beneficiaries in receipt of a retirement allowance on July first immediately preceding the effective date of the increase. Any increase in allowances is effective only if the additional liabilities because of the increase in allowances do not require an increase in the total employer rate of contribution. Any increase in allowance granted pursuant to this section must be included in the determination of any subsequent increases, irrespective of any subsequent decrease in the Consumer Price Index.


Printed Page 3333 . . . . . Thursday, May 12, 2005

(D)   The allowance of a surviving annuitant of a beneficiary whose allowance is increased under this section must, when and if payable, be increased by the same percent.

(E)   For purposes of this section, 'Consumer Price Index' means the Consumer Price Index for Wage Earners and Clerical Workers, as published by the United States Department of Labor, Bureau of Labor Statistics."
SECTION   10.   Section 9-1-2210 of the 1976 Code, as added by Act 1 of 2001, is further amended to read:

"Section 9-1-2210.   (A)   An active contributing member who is eligible for service retirement under this chapter and complies with the requirements of this article may elect to participate in the Teacher and Employee Retention Incentive Program (program). A member electing to participate in the program retires for purposes of the system, and the member's normal retirement benefit is calculated on the basis of the member's average final compensation and service credit at the time the program period begins. The program participant shall agree to continue employment with an employer participating in the system for a program period, not to exceed five years. The member shall notify the system before the beginning of the program period. Participation in the program does not guarantee employment for the specified program period.

(B)   After June 30, 2005, and notwithstanding the provisions of Section 9-1-10(4), a payment for unused annual leave is not included in calculating a member's deferred program benefit during the program period. The member's average final compensation for the purpose of calculating the deferred program retirement benefit must be solely the average of the member's highest twelve consecutive quarters of earnable compensation at the time the member enters the program. During the specified program period, receipt of the member's normal retirement benefit is deferred. The member's deferred monthly benefit must be placed in the system's trust fund on behalf of the member. No interest is paid on the member's deferred monthly benefit placed in the system's trust fund during the specified program period.

(C)   During the specified program period, the employer shall pay to the system the employer contribution for active members prescribed by law with respect to any program participant it employs, regardless of whether the program participant is a full-time or part-time employee, or a temporary or permanent employee. The program participant shall pay to the system the employee contribution as if the program participant were an active contributing member, but the program


Printed Page 3334 . . . . . Thursday, May 12, 2005

participant does not accrue additional service credit in the system for these employer and employee contributions. If an employer who is obligated to the system pursuant to this subsection fails to pay the amount due, as determined by the system, the amount must be deducted from any funds payable to the employer by the State.

(D)   A program participant is retired from the retirement system as of the beginning of the program period. A program participant makes no further employee contributions to the system, accrues no service credit during the program period, and is not eligible to receive group life insurance benefits or disability retirement benefits. Accrued annual leave and sick leave used in any manner in the calculation of the program participant's retirement benefit is deducted from the amount of such leave accrued by the participant.

(E)   A program participant is retired for retirement benefit purposes only. For employment purposes, a program participant is considered to be an active employee, retaining all other rights and benefits of an active employee except for grievance rights pursuant to Section 8-17-370, and is not subject to the earnings limitation of Section 9-1-1790 during the program period.

(F)   Upon termination of employment either during or at the end of the program period, the member must receive the balance in the member's program account by electing one of the following distribution alternatives:

(1)   a lump-sum distribution, paying appropriate taxes; or

(2)   to the extent permitted under law, a tax sheltered rollover into an eligible plan.

For members who began participation in the program before July 1, 2005, the member also must receive the previously determined normal retirement benefits based upon the member's average final compensation and service credit at the time the program period began, plus any applicable cost of living increases declared during the program period. The program participant is thereafter subject to the earnings limitation of Section 9-1-1790.

Upon termination of employment of members who began participation in the program after June 30, 2005, the retirement systems shall recalculate the average final compensation of the member to determine the benefit the member receives after participation in the program. the average final compensation calculated at the commencement of the program must be increased by an amount up to and including forty-five days' termination pay for unused annual leave received by the member at termination of employment, divided by


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three. The member's benefit after participation in the program must be calculated in accordance with Section 9-1-1550, utilizing the recalculated average final compensation determined in this subsection, and the member's service credit, including sick leave, as of the date the member began participation in the program, plus any cost-of-living increases declared during the program period with respect to the amount of the member's deferred program benefit.

(G)   If a program participant dies during the specified program period, the member's designated beneficiary must receive the balance in the member's program account by electing one of the following distribution alternatives:

(1)   a lump-sum distribution, paying appropriate taxes; or

(2)   to the extent permitted under law, a tax sheltered rollover into an eligible plan.

In accordance with the form of system benefit selected by the member at the time the program commenced, the member's designated beneficiary must receive either a survivor benefit or a refund of contributions from the member's system account.

If a program participant who began participation in the program before July 1, 2005, elected either Option B or Option C under Section 9-1-1620, the average final compensation calculated when the member commenced the program must be used in determining the survivor benefit.

If a program participant who began participation in the program after June 30, 2005, elected either Option B or C under Section 9-1-1620, then the designated survivor beneficiary shall receive a survivor benefit based on a recalculated average final compensation. The average final compensation calculated at the commencement of the program must be increased by an amount up to and including forty-five days termination pay for unused annual leave received by the member's legal representative at the member's death, divided by three. The survivor benefit must be calculated in accordance with Section 9-1-1550, utilizing the recalculated average final compensation determined in this subsection, and the member's service credit, including sick leave, as of the date the member began participation in the program, plus any cost-of-living increases declared during the program period with respect to the amount of the member's deferred program benefit.

(H)   If a program participant fails to terminate employment with an employer participating in the retirement system within one month after the end of the specified program period, the member must receive


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the previously determined normal retirement benefits based upon the member's average final compensation and service credit at the time the program began, plus any applicable cost of living increases declared during the program period. The program participant is thereafter subject to the earnings limitation of Section 9-1-1790. The program participant also must receive the balance in the member's program account by selecting one of the following alternatives:

(1)   a lump-sum distribution, paying appropriate taxes; or

(2)   to the extent permitted under law, a tax sheltered rollover into an eligible plan.
A program participant shall terminate employment no later than the day before the fifth annual anniversary of the date the member commenced participation in the program.

(I)   A member is not eligible to participate in the program if the member has participated previously in and received a benefit under this program or any other state retirement system. "
SECTION   11.   Section 9-16-90 of the 1976 Code, as added by Act 371 of 1998, is amended by adding a new subsection at the end to read:

"(C)   the panel and the Office of the State Treasurer jointly and not less than quarterly shall report to the board on the status of the investments of the retirement system."
SECTION   12.   A.   Section 9-16-320(A) of the 1976 Code, as added by Act 371 of 1998, is amended to read:

"(A)   The panel shall develop an annual investment plan for the retirement systems for the next fiscal year. The panel shall submit a draft of the annual investment plan to the State Treasurer for review and comment no later than April thirtieth of each year. The comments of the State Treasurer must be delivered directly to the other board members on or before the date the approval of the annual investment plan is on the board's agenda. The panel shall meet no later than May first fifteenth of each year to adopt the proposed annual investment plan for the retirement systems for the next fiscal year. The annual investment plan must be developed by the panel. No later than June first of each year, the panel shall submit the proposed plan to the board. Amendments may be made to the plan by the panel during the fiscal year with the approval of the board."
B.   Section 9-16-340(C)(1) of the 1976 Code, as added by Act 371 of 1998, is amended to read:

"(1)   the target allocation of system assets between equity investments and fixed-income investments. The target allocation to either equity or fixed-income investments may not exceed sixty percent


Printed Page 3337 . . . . . Thursday, May 12, 2005

of system assets. Appreciation of either the equity or fixed-income assets above sixty percent of system assets does not require an immediate reduction in allocation; however, the actual allocation to either equity or fixed income may not exceed the target allocation by more than five percent at the start of any fiscal year; the minimum and maximum portions of system assets that may be allocated to equity investments on an ongoing basis not to exceed forty percent and the minimum and maximum portions of system assets not to exceed ten percent that may be allocated to additional equity investment during the plan fiscal year. When investments in equities attain the maximum allocation allowed by this item, up to forty percent of current member and employer contributions to the retirement system may be invested in equities. If, due to growth in value of equity investments, equity investments exceed forty percent of the total assets of the retirement system, this subsection does not require the sale of equities to reduce the percentage of equities to forty percent;"
C.   Notwithstanding the general effective date of this act, this section takes effect upon approval of this act by the Governor. Following the effective date of this section, the State Retirement Systems Investment Panel shall develop an amendment to the annual investment plan for submission to the State Budget and Control Board for implementing the revised limits provided pursuant to this section.
SECTION   13.   Article 3, Chapter 16, Title 9 of the 1976 Code is amended by adding:

"Section 9-16-315.   The Retirement and Pre-Retirement Advisory Board shall elect from its membership a retired member of the South Carolina Retirement System to serve as an advisor to the State Retirement Systems Investment Panel. In addition, the State Budget and Control Board shall select an active member of the South Carolina Retirement System to serve as an advisor to the panel. Before making its selection, the board shall solicit input from those organizations representing public employees as the board considers appropriate. These advisors may participate in all panel discussions and deliberations and have access to any information available to the panel; however, these advisors are not authorized to vote or otherwise make any decisions on behalf of the panel."
SECTION   14.   Article 3, Chapter 16, Title 9 of the 1976 Code is amended by adding:

"Section 9-16-345.   In hiring and procurement in the implementation and administration of this chapter, and consistent with its duties as trustee and fiduciary under this title, the board shall strive


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to assure that minorities and minority-owned businesses are represented."
SECTION   15.   A.   Section 9-1-10(17) of the 1976 Code, as last amended by Act 387 of 2000, is further amended to read:

"(17)   [Reserved]   'Medical board' means the board of physicians provided for in Section 9-1-220."
b.   Section 9-9-10 of the 1976 Code is amended by deleting item (16) which reads:

"(16)   'Medical board' shall mean the board of physicians provided for in Section 9-9-35. "
C.   Section 9-11-10(18) of the 1976 Code, as last amended by Act 387 of 2000, is further amended to read:

"(18)   [Reserved]   'Medical board' means the board provided for in Section 9-11-30(2)."
D.   Section 9-11-30(2) of the 1976 Code is amended to read:

"(2)   [Reserved]   The Board shall designate a medical board to be composed of three physicians who are not members of the System. If required, other physicians who are not members of the System may be employed to report on special cases. The medical board shall arrange for and pass upon all medical examinations required under the System, shall investigate all essential statements and certificates by or on behalf of a member in connection with an application for disability retirement, and shall report in writing to the Board its conclusions and recommendations upon all matters referred to it."
E.   Sections 9-1-220 and 9-9-35 of the 1976 Code are repealed.
F.   In Title 9 of the 1976 Code, wherever the phrase 'medical board' or any variant of 'medical board' appears, it must be construed to mean the 'system' unless the context clearly requires otherwise. The Code Commissioner shall replace the reference in future code supplements and replacement volumes as the Code Commissioner determines appropriate.
SECTION   16.   This act takes effect July 1, 2005.   /
Renumber sections to conform.
Amend title to conform.

Rep. KIRSH explained the amendment.

POINT OF ORDER

Rep. TRIPP made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not


Printed Page 3339 . . . . . Thursday, May 12, 2005

been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.

OBJECTION TO RECALL

Rep. LITTLEJOHN asked unanimous consent to recall H. 3136 (Word version) from the Committee on Judiciary.
Rep. G. M. SMITH objected.

S. 97--RECALLED FROM COMMITTEE ON LABOR, COMMERCE AND INDUSTRY

On motion of Rep. CATO, with unanimous consent, the following Bill was ordered recalled from the Committee on Labor, Commerce and Industry:

S. 97 (Word version) -- Senators Land, Elliott and Ford: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 31-7-25 SO AS TO PROVIDE ADDITIONAL FINDINGS OF THE GENERAL ASSEMBLY WITH RESPECT TO PROPERTY AVAILABLE FOR REDEVELOPMENT FOR PURPOSES OF THE TAX INCREMENT FINANCING ACT FOR COUNTIES; TO AMEND SECTION 31-7-20, RELATING TO EXISTING FINDINGS FOR PURPOSES OF THE ACT, SO AS TO EXTEND EXISTING FINDINGS WITH RESPECT TO THE ACT; TO AMEND SECTION 31-7-30, RELATING TO DEFINITIONS FOR PURPOSES OF THE ACT, SO AS TO REVISE APPLICABLE DEFINITIONS TO EXTEND THE APPLICATION OF THE ACT TO MORE RURAL AREAS AND ADD ADDITIONAL ELEMENTS TO DEVELOPMENT PROJECTS NECESSARY TO ASSIST SUCH RURAL AREAS; TO AMEND SECTION 31-7-80, RELATING TO THE FINDINGS REQUIRED FOR A REDEVELOPMENT PROJECT ORDINANCE, SO AS TO REVISE THESE FINDINGS; AND TO AMEND SECTION 31-7-120, RELATING TO JOINTLY ADOPTED MUNICIPAL AND COUNTY REDEVELOPMENT PLANS, SO AS TO AUTHORIZE COUNTIES JOINTLY BY INTERGOVERNMENTAL AGREEMENTS TO ESTABLISH A MULTI-COUNTY OR REGIONAL AUTHORITY TO ESTABLISH REDEVELOPMENT PLANS AND PROPERTY WHEN SUCH PROJECTS HAVE ECONOMIC IMPACT BEYOND A SINGLE COUNTY AND PROVIDE FOR ALL SUCH AUTHORITIES TO


Printed Page 3340 . . . . . Thursday, May 12, 2005

ACT BY INTERGOVERNMENTAL AGREEMENT AND ORDINANCES OF COUNTIES PARTY TO THE AGREEMENT.

OBJECTION TO RECALL

Rep. LOFTIS asked unanimous consent to recall H. 3225 (Word version) from the Committee on Education and Public Works.
Rep. MARTIN objected.

OBJECTION TO RECALL

Rep. MILLER asked unanimous consent to recall H. 3335 (Word version) from the Committee on Education and Public Works.
Rep. SKELTON objected.

H. 3407--RECALLED FROM COMMITTEE ON WAYS AND MEANS

On motion of Rep. NEILSON, with unanimous consent, the following Bill was ordered recalled from the Committee on Ways and Means:

H. 3407 (Word version) -- Reps. J. M. Neal, Govan, McCraw, Phillips, Altman, Bales, Branham, Emory, Harrell, Huggins, Limehouse, Rhoad, Scarborough and G. R. Smith: A BILL TO AMEND SECTION 59-111-110, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TUITION FOR CHILDREN OF FIREMEN, LAW ENFORCEMENT OFFICERS, AND GOVERNMENT EMPLOYEES DISABLED OR KILLED IN THE LINE OF DUTY, SO AS TO INCLUDE SPOUSES IN THE PERSONS ELIGIBLE FOR THE TUITION EXEMPTION AND TO INCLUDE SUMMER SEMESTERS IN THE FOUR YEARS THE PERSONS MAY RECEIVE THE TUITION EXEMPTION; TO AMEND SECTION 59-111-160, RELATING TO THE DEFINITION OF "TOTAL DISABILITY", SO AS TO INCLUDE SPOUSES IN THE APPLICATION OF THIS ARTICLE.

OBJECTION TO RECALL

Rep. SCOTT asked unanimous consent to recall H. 3907 (Word version) from the Committee on Judiciary.
Rep. TALLEY objected.


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OBJECTION TO RECALL

Rep. TRIPP asked unanimous consent to recall H. 4054 (Word version) from the Committee on Ways and Means.
Rep. SIMRILL objected.

H. 3335--RECALLED FROM COMMITTEE ON
EDUCATION AND PUBLIC WORKS

On motion of Rep. LIMEHOUSE, with unanimous consent, the following Bill was ordered recalled from the Committee on Education and Public Works:

H. 3335 (Word version) -- Reps. Limehouse, Hagood, Merrill, Whipper, Altman, Breeland, R. Brown, Chellis, Harrell, Hinson, Mack, Scarborough, Umphlett, Ceips and Miller: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 1-1-676 SO AS TO DESIGNATE SWEET GRASS BASKET THE OFFICIAL STATE HANDCRAFT.

H. 3499--SENATE AMENDMENTS AMENDED AND RETURNED TO THE SENATE

The Senate amendments to the following Bill were taken up for consideration:

H. 3499 (Word version) -- Reps. Harrell, Wilkins, Townsend, Leach, Bales, G. R. Smith, J. R. Smith, Battle, Cobb-Hunter, Neilson, Clark, Harrison, Skelton, Moody-Lawrence, Rice, Harvin, Ott, J. E. Smith, Merrill, Mack, Hinson, Cotty, Norman, Talley, Chellis, Hardwick, Clemmons, Bailey, Dantzler, Walker, Cooper, E. H. Pitts, Ballentine, Bowers, Huggins and Hagood: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 10, ENTITLED PHYSICAL EDUCATION AND NUTRITIONAL STANDARDS, TO TITLE 59 SO AS TO ESTABLISH PHYSICAL EDUCATION AND NUTRITIONAL STANDARDS IN ELEMENTARY SCHOOLS, TO PROVIDE FOR THE AMOUNT OF PHYSICAL EDUCATION INSTRUCTION A STUDENT IN KINDERGARTEN THROUGH FIFTH GRADE MUST RECEIVE EACH WEEK ON A PHASED-IN BASIS, PROVIDE FOR A MEASURE OF EFFECTIVENESS OF THE PHYSICAL EDUCATION PROGRAM IN ALL PUBLIC SCHOOLS, PROVIDE FOR A PHYSICAL EDUCATION ACTIVITY DIRECTOR, PROVIDE CERTAIN NUTRITIONAL STANDARDS FOR


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ELEMENTARY SCHOOLS, PROVIDE THAT ELEMENTARY SCHOOLS SHALL REMOVE CERTAIN FOOD AND DRINKS FROM VENDING MACHINES, PROVIDE THE MINIMUM AMOUNT OF TIME ELEMENTARY SCHOOL STUDENTS MUST HAVE TO EAT LUNCH, PROVIDE FOR THE ESTABLISHMENT OF A DISTRICT LEVEL AND AN ELEMENTARY SCHOOL LEVEL COORDINATED SCHOOL HEALTH ADVISORY COUNCIL AND PROVIDE ITS POWERS AND DUTIES, PROVIDE FOR NUTRITIONAL EDUCATION, AND PROVIDE A MEASURE OF EFFECTIVENESS OF HEALTH EDUCATION PROGRAMS.

Rep. TOWNSEND proposed the following Amendment No. 3 (Doc Name COUNCIL\PT\2651SJ05), which was adopted:
Amend the bill, as and if amended, by deleting all after the enacting words and inserting:
/ SECTION   1.   This act may be cited as the Students Health and Fitness Act of 2005.
SECTION   2.   Title 59 of the 1976 Code is amended by adding:

"CHAPTER 10
Physical Education, School Health
Services, and Nutritional Standards
Article 1
Physical Education Standards

Section 59-10-10.   The General Assembly finds that:

(1)   South Carolina is ranked among the highest in the nation in obesity rates.

(2)   Three out of every five adults in our State are either overweight or obese.

(3)   Fifty percent of obese children will become obese adults.

(4)   Only two percent of school-age children meet the recommended minimum number of servings for all five food groups on the classic food pyramid.

(5)   Twenty-five percent of children ages five to ten have high cholesterol, high blood pressure, or other early warning signs of heart disease.

(6)   The National Institute of Health research shows that inactivity has major implications on a child's academic performance.

(7)   The Centers for Disease Control report that for the first time in over one hundred years the current generation of people will have a lesser life span than the previous generation due to a sedentary lifestyle.


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Section 59-10-15.   (A)   The certified physical education teacher to student ratio is designed to provide students in kindergarten through fifth grade scheduled physical activity by a certified physical education teacher either every day or on alternate days throughout the school year. The goal of this article is to provide every elementary student with the equivalent of thirty minutes of physical education daily.

(1)   Beginning with the 2005-06 school year, the student to certified physical education teacher ratio in the elementary schools of the State must be 700 to 1.

(2)   Beginning with the 2006-07 school year, the student to certified physical education teacher ratio in the elementary schools of the State must be 600 to 1.

(3)   Beginning with the 2007-08 school year, the student to certified physical education teacher ratio in the elementary schools of the State must be 500 to 1.

(B)   The physical education instruction taught by certified physical education teachers employed pursuant to subsection (A) must be based on the South Carolina Physical Education Curriculum Standards and the weekly minutes of instruction must be distributed in a developmentally appropriate manner for each grade level. The student to teacher ratio in a physical education class may not exceed the average student to teacher ratio of 28 to 1. An individual student's fitness status must be reported to his parent or guardian during a student's fifth grade, eighth grade, and high school physical education courses.

(C)   Each district shall make every effort to ensure that the schools in its district have age appropriate equipment and facilities to implement the physical education curriculum standards.

(D)   During each year of implementation of the reduced student to physical education teacher ratio, each district shall report to the State Department of Education by June 15, the number of minutes of physical education instruction students receive daily with a total for the week. The report must be listed by elementary school and by individual class and grade level. The State Department of Education shall report this information to the General Assembly by August first of each year of implementation.

Section 59-10-20.   Each public school in this State shall administer the South Carolina Physical Education Assessment. Assessment of students in second grade, fifth grade, eighth grade, and high school must be used to assess the effectiveness of the school's physical education program and its adherence to the South Carolina


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Physical Education Curriculum Standards. The State Department of Education shall develop a procedure for calculating a district and school physical education program effectiveness score. The district and school physical education effectiveness score must be reported to the education community through the district and school report card.

Section 59-10-30.   The physical education teachers in a school that receives an unsatisfactory program effectiveness score pursuant to Section 59-10-20, will be provided professional development activities designed to assist it in improving its programs' effectiveness.

Section 59-10-40.   Each elementary school shall designate a physical education teacher to serve as its Physical Education Activity Director. The Physical Education Activity Director shall coordinate opportunities for additional physical activity for students and teachers that exceed the designated weekly student instruction times that may include, but not be limited to, before, during, and after school dance instruction, fitness trail programs, intramural programs, bicycling programs, walking programs, recess, and activities designed to promote physical activity opportunities in the classroom. The director annually shall submit to the principal a report outlining the additional physical activities for students and teachers.

Section 59-10-50.   The implementation of decreased student to teacher ratio and increased instruction in physical education pursuant to Section 59-10-10 is not intended to replace or reduce time dedicated to instruction in the arts taught by certified arts specialists.

Article 2
School Health Services

Section 59-10-210.   (A)   The General Assembly finds that one goal of public education is to assist all students in reaching their full academic potential. In this regard, school nurses:

(1)   are instrumental in early detection of health problems that can interfere with learning or lead to more serious or disabling health conditions;

(2)   prevent disease by teaching and encouraging healthy lifestyles and habits that have lifelong implications for children and their families;

(3)   provide valuable health services, including administering medications and care management necessary for those students who have chronic or episodic health conditions and disabilities;

(4)   care for students who incur injuries at school including injuries that require medical attention;


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(5)   assist families and students in accessing health care and procuring community health services;

(6)   contribute to a child's ability to learn by improving overall health, therefore encouraging school attendance, readiness to learn, and enhanced learning potential and achievement; and

(7)   provide direct health services and professional advice to teachers and staff members regarding health problems and concerns.

(B)   The General Assembly believes that each elementary public school in this State should have a full-time school nurse.

Section 59-10-220.   Beginning with the 2006-07 school year, the General Assembly, annually in the General Appropriations Act, shall appropriate funds to the Department of Education for providing licensed nurses for elementary public schools. The State Department of Education shall make these funds available through a grant program and shall distribute the funds to the local school districts on a per school basis.

Article 3
Nutrition Standards

Section 59-10-310.   In an effort to promote optimal healthy eating patterns, the State Board of Education by policy shall establish requirements for elementary school food service meals and competitive foods based upon the recommendations outlined in the State Department of Education Task Force on Student Nutrition and Physical Activity Report.

Section 59-10-320.   (A)   The State Department of Education is encouraged to make available to the school districts of the State an age-appropriate, proven-effective nutrition education curriculum aligned with the South Carolina Health and Safety Education Curriculum Standards.

(B)   The State Department of Education shall make available to each school district a coordinated school health model designed to address health issues of children. The program must provide for coordinating the following eight components: safe and healthy environment, physical education, health education, staff wellness, health services, guidance and psycho-social health, nutrition services, and parent and community involvement. The Department of Education shall notify each school district of the availability of professional development opportunities and provide technical assistance for implementing the coordinated school health model.

(C)   The Department of Education shall develop or adopt an assessment program to evaluate district and school health education


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programs. At a minimum, the assessment must be designed to determine program effectiveness and adherence to South Carolina Health and Safety Education Curriculum Standards. The State Department of Education shall begin piloting health education assessments in the 2006-07 school year with full implementation in all schools in the 2008-09 school year.

Section 59-10-330.   (A)   Each school district shall establish and maintain a Coordinated School Health Advisory Council (CSHAC) to assess, plan, implement, and monitor district and school health policies and programs, including the development of a district wellness policy to begin implementation in the 2006-07 school year. The council must be composed of community and school representatives from the following areas:

(1)   physical education;

(2)   nutrition services;

(3)   health education;

(4)   health services;

(5)   counseling, psychological, and social services;

(6)   local health department;

(7)   school administration; and

(8)   other individuals to include students, parents, district food service employees, and school board members.

(B)   Each district, in collaboration with the CSHAC, shall develop a school health improvement plan that addresses strategies for improving student nutrition, health, and physical activity and includes the district's wellness policy. The district health improvement plan goals and progress toward those goals must be included in the district's strategic plan required pursuant to Section 59-20-60. Health improvement plans must be submitted to the Department of Education and must include a timeline for implementation beginning July 1, 2007. Progress reports on implementation must be provided annually to the department until implementation is complete.

(C)   Professional development in health and safety education, to include nutrition education, must be provided to teachers in kindergarten through fifth grades annually.

(D)   Each school board of trustees shall establish health and nutrition policies for its elementary schools designed to limit vending sales and sales of foods and beverages other than school meals, except for sales of milk, juice, entrees, bread, fruits, vegetables, and a food item that is considered a meal component.


Printed Page 3347 . . . . . Thursday, May 12, 2005

Section 59-10-340.   Each elementary school shall establish and maintain a school-level Coordinated School Health Advisory Council with membership representing areas outlined in Section 59-10-340 (A). Each school shall use the assessment tool made available by the State Department of Education to assess current school health programs using the state assessment model, develop a plan to improve health programs, assist in the implementation of the improvement plan, and monitor and evaluate the school health programs. The school health improvement plan goals and progress toward those goals must be included in the school's strategic plan required pursuant to Section 59-20-60.

Section 59-10-350.   (A)   An elementary school may not provide to students at any time during the school day foods of minimal nutritional value. However, this policy does not restrict the food that a parent or guardian may provide for his child's consumption at school. A school district board of trustees may adopt a more restrictive policy.

(B)   Each elementary school shall remove food, soda, and carbonated vending machines from public areas. However, beverage vending machines selling only products that contain one hundred percent fruit juice or bottled water, and food vending machines selling only products that meet state and USDA guidelines as a healthy snack may be located in public areas. Each district's Coordinated School Health Advisory Council established pursuant to Section 59-10-340 shall determine which snacks may be sold in vending machines in elementary schools.

Section 59-10-360.   Each elementary school shall provide students a minimum of twenty minutes to eat lunch once they have received their food. In determining the total length of the lunch period, time to and from the cafeteria, time to go through the line, and time to bus trays at the end of lunch must be considered.

Section 59-10-370.   Students in kindergarten through fifth grade shall receive nutrition education weekly as a part of health and safety education instruction.

Section 59-10-380.   Each phase of implementation of this chapter is contingent upon the appropriation of adequate funding as documented by the fiscal impact statement provided by the Office of State Budget of the State Budget and Control Board. There is no mandatory financial obligation to school districts if state funding is not appropriated for each phase of implementation as provided for in the fiscal impact statement of the Office of the State Budget of the State Budget and Control Board.


Printed Page 3348 . . . . . Thursday, May 12, 2005

Section 59-10-390.   Nothing in this article may be construed to prohibit or limit the sale or distribution of any food or beverage item through fundraisers by students, teachers, or groups when the items are intended for sale off the school campus."
SECTION   3.   This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.

Rep. HARRELL explained the amendment.
The amendment was then adopted.

The Senate amendments, as amended, were then agreed to and the Bill was ordered returned to the Senate.

SENT TO THE SENATE

The following Bills were taken up, read the third time, and ordered sent to the Senate:

H. 3344 (Word version) -- Reps. Wilkins and Harrison: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-27-55 SO AS TO ALLOW THE FORFEITURE OF PROPERTY, MONIES, NEGOTIABLE INSTRUMENTS, SECURITIES, AND OTHER THINGS OF VALUE WHEN A PERSON VIOLATES A PROVISION OF THE ANIMAL FIGHTING AND BAITING ACT, TO PROVIDE PROCEDURES FOR FORFEITURE, AND TO CREATE AN EXCEPTION FOR THE INNOCENT OWNER OF PROPERTY SUBJECT TO FORFEITURE; TO AMEND SECTION 16-27-60, RELATING TO ACTIVITIES THAT ARE NOT SUBJECT TO THE CRIMINAL PENALTIES OF THE ANIMAL FIGHTING AND BAITING ACT, SO AS TO INCLUDE GAME FOWL UNDER THE PROVISIONS OF THE ACT BY DELETING ITS EXEMPTION; AND TO REPEAL SECTION 16-17-650 RELATING TO THE MISDEMEANOR OFFENSE OF COCKFIGHTING.

H. 3694 (Word version) -- Reps. Miller, Cotty, Anderson, Vaughn, Clark, Neilson, Altman, Battle, G. Brown, Davenport, Edge, Frye, Hagood, Hamilton, Rivers, Sinclair, D. C. Smith and Wilkins: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-19-170 ENACTING THE "GAMBLING CRUISE PROHIBITION ACT" SO AS TO PROHIBIT GAMBLING OR THE


Printed Page 3349 . . . . . Thursday, May 12, 2005

REPAIR OF GAMBLING DEVICES ON A VESSEL IN A VOYAGE THAT BEGINS AND ENDS WITHIN THIS STATE, TO PROHIBIT THE OPERATION OF A VESSEL THAT TRANSPORTS PERSONS TO ANOTHER VESSEL FOR THE PURPOSE OF GAMBLING IF BOTH THE TRANSPORTING VESSEL AND THE VESSEL ON WHICH A GAMBLING DEVICE IS USED OR REPAIRED BEGINS AND ENDS ITS VOYAGE IN THIS STATE, AND TO PROVIDE DEFINITIONS AND PENALTIES FOR VIOLATION.

H. 3777--SENT TO THE SENATE

The following Bill was taken up:

H. 3777 (Word version) -- Reps. Ceips, Loftis, Breeland, Scott, Whipper, Hosey, Vaughn, Anthony, Battle, Chalk, Clyburn, Dantzler, Hardwick, Harvin, Herbkersman, J. Hines, Howard, Jefferson, Kirsh, Lee, Martin, McCraw, Miller, Moody-Lawrence, J. H. Neal, Perry, M. A. Pitts, Rivers, Scarborough, Simrill, Toole, Umphlett, Mahaffey and Bailey: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-17-605 SO AS TO DEFINE THE TERMS "GEOCACHE", "GEOCACHING", AND "LETTERBOXING", TO PROVIDE THAT IT IS UNLAWFUL TO ENGAGE IN GEOCACHING OR LETTERBOXING IN CEMETERIES, ARCHEOLOGICAL SITES, OR ON THE HISTORIC PROPERTIES OF THE STATE, AND TO PROVIDE A PENALTY.

Rep. THOMPSON moved to continue the Bill.

Rep. SCARBOROUGH demanded the yeas and nays which were taken, resulting as follows:

Yeas 26; Nays 77

Those who voted in the affirmative are:

Ballentine             Bingham                Chellis
Delleney               Edge                   Funderburk
Hagood                 Haley                  Hinson
Huggins                Lucas                  McGee
Merrill                Phillips               E. H. Pitts
Rutherford             Scott                  Simrill
D. C. Smith            G. M. Smith            Stewart

Printed Page 3350 . . . . . Thursday, May 12, 2005

Talley                 Thompson               Tripp
Umphlett               Viers

Total--26

Those who voted in the negative are:

Allen                  Altman                 Anderson
Anthony                Bailey                 Bales
Barfield               Battle                 Bowers
Brady                  Branham                Breeland
G. Brown               J. Brown               R. Brown
Cato                   Ceips                  Chalk
Clark                  Clemmons               Clyburn
Coates                 Cobb-Hunter            Coleman
Dantzler               Davenport              Duncan
Emory                  Frye                   Hamilton
Hardwick               Harrell                Harrison
J. Hines               Hiott                  Hosey
Howard                 Jefferson              Jennings
Kirsh                  Leach                  Limehouse
Littlejohn             Loftis                 Mack
Mahaffey               Martin                 McCraw
McLeod                 Miller                 Moody-Lawrence
Neilson                Norman                 Ott
Owens                  Parks                  Perry
Pinson                 M. A. Pitts            Rice
Sandifer               Scarborough            Sinclair
Skelton                G. R. Smith            J. R. Smith
W. D. Smith            Taylor                 Townsend
Vaughn                 Vick                   Weeks
Whipper                White                  Whitmire
Wilkins                Young

Total--77

So, the House refused to continue the Bill.

The Bill was read the third time and ordered sent to the Senate.


Printed Page 3351 . . . . . Thursday, May 12, 2005

RECURRENCE TO THE MORNING HOUR

Rep. MCCRAW moved that the House recur to the Morning Hour, which was agreed to.

CONCURRENT RESOLUTION

The following was introduced:

H. 4087 (Word version) -- Rep. Clyburn: A CONCURRENT RESOLUTION TO EXPRESS THE PROFOUND SORROW OF THE MEMBERS OF THE GENERAL ASSEMBLY UPON THE DEATH OF MS. MOZELLE J. SIMPKINS, OF JACKSON, SOUTH CAROLINA, ON APRIL 15, 2005, AND TO CONVEY DEEPEST SYMPATHY TO HER FAMILY AND MANY FRIENDS.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

INTRODUCTION OF BILLS

The following Bills were introduced, read the first time, and referred to appropriate committees:

H. 4088 (Word version) -- Reps. Viers, Vaughn, Miller, Bales, Battle, G. Brown, Limehouse, Loftis, Scarborough and Umphlett: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 5-7-320 SO AS TO PROHIBIT A MUNICIPALITY FROM REQUIRING THAT A SERVICE STATION USE ONLY A PREPAYMENT PROCEDURE FOR GASOLINE.
Referred to Committee on Judiciary

H. 4089 (Word version) -- Rep. Bingham: A BILL TO AMEND SECTION 42-1-360, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EXEMPTIONS OF EMPLOYEES FROM THE WORKERS' COMPENSATION LAW, SO AS TO INCLUDE CERTAIN EMPLOYEES OF A RESIDENTIAL CONSTRUCTION COMPANY AS BEING EXEMPT.
Referred to Committee on Labor, Commerce and Industry


Printed Page 3352 . . . . . Thursday, May 12, 2005

S. 204--POINT OF ORDER

The following Bill was taken up:

S. 204 (Word version) -- Senator J. V. Smith: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-150-375 SO AS TO PROVIDE THAT CERTAIN VISUAL OR HEARING IMPAIRED STUDENTS MAY RECEIVE STATE SCHOLARSHIP FUNDS TO ATTEND CERTAIN OUT-OF-STATE INSTITUTIONS.

POINT OF ORDER

Rep. DAVENPORT made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.

H. 3841--POINT OF ORDER

The following Bill was taken up:

H. 3841 (Word version) -- Reps. Talley, Bowers, Cotty, Clark, Chellis, Martin, Skelton, Davenport, McGee, Altman, Bailey, Brady, Harrison, J. Hines, Leach, Miller, Moody-Lawrence, Phillips, Rice, Scarborough, Scott, W. D. Smith, Young, Jennings, Coleman, Hagood, Pinson and Loftis: A BILL TO AMEND TITLE 6, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LOCAL GOVERNMENTS, BY ADDING CHAPTER 34 SO AS TO ENACT THE "SOUTH CAROLINA RETAIL FACILITIES REVITALIZATION ACT" INCLUDING PROVISIONS TO PROVIDE PROPERTY TAX CREDITS OR INCOME TAX CREDITS FOR REHABILITATION EXPENSES MADE TO ELIGIBLE SITES WHICH HAVE BEEN USED AS RETAIL SALES OR SERVICE FACILITIES.

POINT OF ORDER

Rep. OTT made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.


Printed Page 3353 . . . . . Thursday, May 12, 2005

ORDERED TO THIRD READING

The following Bill and Joint Resolution were taken up, read the second time, and ordered to a third reading:

H. 4035 (Word version) -- Reps. Harrell, Wilkins, Chellis, Thompson, Cotty, Huggins, Clark, Bales, Neilson, Hosey, J. E. Smith, Frye, Altman, Anthony, Bailey, Battle, Bowers, Branham, Cato, Cobb-Hunter, Cooper, Davenport, Delleney, Hagood, Hardwick, Haskins, J. Hines, Hinson, Kirsh, Leach, Mahaffey, McLeod, Miller, J. H. Neal, Norman, Ott, Owens, Rhoad, Rice, Scarborough, Scott, D. C. Smith, G. R. Smith, Talley, Taylor, Vaughn, Walker, White, Witherspoon and Young: A BILL TO AMEND CHAPTER 45, TITLE 11, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE VENTURE CAPITAL INVESTMENT ACT, SO AS TO ESTABLISH A VENTURE CAPITAL AUTHORITY WITHIN THE DEPARTMENT OF COMMERCE TO SOLICIT INVESTMENT PLANS FOR RAISING AND INVESTING VENTURE CAPITAL PURSUANT TO THE VENTURE CAPITAL INVESTMENT ACT AND TO REVISE AND FURTHER PROVIDE FOR THE PROCEDURES, CONDITIONS, AND REQUIREMENTS UNDER WHICH VENTURE CAPITAL IS RAISED AND INVESTORS RECEIVE STATE TAX CREDITS FOR THEIR INVESTMENT; TO AMEND SECTION 11-35-710, AS AMENDED, RELATING TO EXEMPTIONS FROM THE CONSOLIDATED PROCUREMENT CODE, SO AS TO EXEMPT THE VENTURE CAPITAL AUTHORITY, AND TO AMEND SECTION 30-4-40, AS AMENDED, RELATING TO MATTERS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT, SO AS TO EXEMPT PRIVATE INVESTMENT AND OTHER PROPRIETARY FINANCIAL DATA PROVIDED TO THE VENTURE CAPITAL AUTHORITY BY A DESIGNATED INVESTOR GROUP OR AN INVESTOR.

Rep. HINSON explained the Bill.

S. 467 (Word version) -- Senators Hayes and Peeler: A JOINT RESOLUTION TO PROVIDE THAT UPON EXECUTION OF AN APPROPRIATE CONTRACT THE SOUTH CAROLINA DEPARTMENT OF MENTAL HEALTH IS AUTHORIZED TO TRANSFER A CERTAIN SUM OF MONEY FROM AN ACCOUNT DESIGNATED FOR THE PURCHASE OR CONSTRUCTION OF A CHILD AND


Printed Page 3354 . . . . . Thursday, May 12, 2005

ADOLESCENT FACILITY AT THE CATAWBA COMMUNITY MENTAL HEALTH CENTER TO THE FRIENDS OF THE FAMILY CENTER, A NONPROFIT ORGANIZATION, FOR THE PURPOSE OF RAISING ADDITIONAL FUNDING TO PURCHASE A SUITABLE BUILDING TO SERVE AS A CHILD AND ADOLESCENT MENTAL HEALTH FACILITY TO BE NAMED THE CATAWBA FAMILY CENTER.

Rep. LITTLEJOHN explained the Joint Resolution.

H. 4035--ORDERED TO BE READ
THIRD TIME TOMORROW

On motion of Rep. HINSON, with unanimous consent, it was ordered that H. 4035 (Word version) be read the third time tomorrow.

S. 467--ORDERED TO BE READ THIRD TIME TOMORROW

On motion of Rep. LITTLEJOHN, with unanimous consent, it was ordered that S. 467 (Word version) be read the third time tomorrow.

H. 3221--POINT OF ORDER

The following Bill was taken up:

H. 3221 (Word version) -- Reps. Clemmons, Rice, Simrill, Mahaffey, Wilkins, Harrell, Harrison, Cato, J. Brown, Townsend, Edge, Merrill, Chellis, Ott, R. Brown, Mack, Barfield, Witherspoon, Duncan, M. A. Pitts, Owens, Chalk, Bailey, Ceips, Haley, Toole, Viers and Hardwick: A BILL TO AMEND ARTICLE 5, CHAPTER 6, TITLE 44 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA RETIREES AND INDIVIDUALS POOLING TOGETHER FOR SAVINGS ACT (SCRIPTS), SO AS TO CHANGE THE NAME OF THIS ACT TO THE SOUTH CAROLINA RETIREES AND INDIVIDUALS POOLING TOGETHER FOR SAVINGS-SILVERXCARD ACT AND TO PROVIDE THAT THE SCRIPTS-SILVERXCARD PROGRAM MUST COORDINATE WITH MEDICARE PART D TO PROVIDE TO LOW INCOME SENIOR RESIDENTS ASSISTANCE WITH THE COST OF PRESCRIPTION DRUGS, TO REQUIRE THAT A PARTICIPANT BE ENROLLED IN A MEDICARE PART D DRUG PLAN, TO CLARIFY OTHER ELIGIBILITY CRITERIA, TO SPECIFY THAT AN ENROLLEE IS ENTITLED TO BENEFITS WHEN THE ENROLLEE'S ANNUAL OUT-OF-POCKET DRUG EXPENSES


Printed Page 3355 . . . . . Thursday, May 12, 2005

REACH THE POINT THAT STANDARD MEDICARE PART D BENEFITS ARE NO LONGER AVAILABLE AND THAT BENEFITS TERMINATE WHEN THE PARTICIPANT'S ANNUAL OUT-OF-POCKET EXPENSES REACH THE POINT THAT CATASTROPHIC MEDICARE PART D BENEFITS ARE AVAILABLE, AND TO PROVIDE THAT IF REVENUE IS GENERATED FOR THE PROGRAM FROM OTHER SOURCES, THIS ADDITIONAL REVENUE MUST BE USED TO FUND PROGRAM BENEFITS AND MAKE PAYMENTS, AS MAY BE REQUIRED, UNDER THE FEDERAL MEDICARE PRESCRIPTION DRUG, IMPROVEMENT AND MODERNIZATION ACT OF 2003; AND TO REPEAL CHAPTER 130, TITLE 44, RELATING TO THE SOUTH CAROLINA SENIORS' PRESCRIPTION DRUG PROGRAM ACT.

The Ways and Means Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\NBD\11788AC05):
Amend the bill, as and if amended, Section 44-6-650, page 4, immediately after line 7 by inserting:
/(C)(1)   If a federally-approved South Carolina Medicare Part D Plan offers prescription drug coverage that does not include an annual coverage limit, the department may expand program benefits to include an alternative benefit plan that functions in a manner that is economically equivalent to the program authorized in this article.

(2)   The department is authorized to automatically enroll in the program individuals who are enrolled in a Medicaid waiver program and who satisfy program eligibility criteria if each enrollee is notified in writing of his or her right to disenroll and the process necessary to disenroll./
Amend the bill further, by deleting Section 44-6-670 on page 4 and inserting:
/Section 44-6-670.   (A)   The department may seek waivers of any federal laws, regulations, or rules necessary to implement this program.

(B)   The department may promulgate regulations necessary for the administration of this program. /
Renumber sections to conform.
Amend title to conform.

Rep. LITTLEJOHN explained the amendment.


Printed Page 3356 . . . . . Thursday, May 12, 2005

POINT OF ORDER

Rep. OTT made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.

H. 3803--AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up:

H. 3803 (Word version) -- Reps. Edge and Wilkins: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 15, CHAPTER 53, TITLE 44 SO AS TO ENACT THE SOUTH CAROLINA PRESCRIPTION MONITORING ACT AUTHORIZING THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, BUREAU OF DRUG CONTROL TO ESTABLISH A PROGRAM TO MONITOR THE PRESCRIBING AND DISPENSING OF SCHEDULE II-V CONTROLLED SUBSTANCES AND TO PROVIDE THE MANNER AND PROCEDURES UNDER WHICH DISPENSERS ARE TO PROVIDE SUCH INFORMATION, TO PROVIDE FOR THE USE AND CONFIDENTIALITY OF THIS INFORMATION, AND TO PROVIDE PENALTIES FOR VIOLATIONS.

The Ways and Means Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\NBD\11790AC05), which was adopted:
Amend the bill, as and if amended, Section 44-53-1620, page 1, beginning on line 41 by deleting /or other licit drugs of abuse/ so when amended Section 44-53-1620 reads:
/Section 44-53-1620.   This article is intended to improve the state's ability to identify and stop diversion of prescription drugs in an efficient and cost effective manner that will not impede the appropriate medical utilization of licit controlled substances./
Amend the bill further, by deleting Section 44-53-1640 beginning on page 2 and inserting:
/Section 44-53-1640.   (A)   The Department of Health and Environmental Control, Bureau of Drug Control may establish and maintain a program to monitor the prescribing and dispensing of all Schedule II, III, IV, and V controlled substances by professionals licensed to prescribe or dispense these substances in this State.


Printed Page 3357 . . . . . Thursday, May 12, 2005

(B)(1)   A dispenser shall submit to drug control, by electronic means, information regarding each prescription dispensed for a controlled substance. The information submitted for each prescription must include, but is not limited to:

(a)   dispenser identification number;

(b)   date drug was dispensed;

(c)   prescription number;

(d)   whether prescription is new or a refill;

(e)   NDC code for drug dispensed;

(f)   quantity dispensed;

(g)   approximate number of days supplied;

(h)   patient name;

(i)     patient address;

(j)     patient date of birth;

(k)   prescriber identification number;

(l)     date prescription issued by prescriber;

(m)   source of payment for prescription.

(2)   A dispenser shall submit the information required pursuant to subsection (B)(1) in accordance with transmission methods and frequency established by drug control, but shall report at least every thirty days, between the 1st and the 15th of the month following the month the prescription was dispensed.

(3)   Drug control may issue a waiver to a dispenser who is unable to submit prescription information by electronic means. The waiver may permit the dispenser to submit prescription information by paper form or other means if all information required pursuant to subsection (B)(1) is submitted in this alternative format./
Amend the bill further, Section 44-53-1650(D)(4), page 4, line 5 after /drugs/ by inserting /and/ so when amended Section 44-53-1650(D)(4) reads:

/(4)   a local, state, or federal law enforcement or prosecutorial official engaged in the administration, investigation, or enforcement of the laws governing licit drugs and who is involved in a bona fide specific drug related investigation involving a designated person;/
Amend the bill further, Section 44-53-1680(B) and (C) on page 4, line 40 and on page 5, line 3 after /person/ by inserting /or persons/ and on page 5, lines 1, 2, 6, and 7 by deleting /five/ and inserting /ten/ so when amended Section 44-53-1680(B) and (C) read:
/(B)   A person or persons authorized to have prescription monitoring information pursuant to this article who knowingly discloses this information in violation of this article is guilty of a felony and, upon


Printed Page 3358 . . . . . Thursday, May 12, 2005

conviction, must be fined not more than ten thousand dollars or imprisoned not more than ten years, or both.

(C)   A person or persons authorized to have prescription monitoring information pursuant to this article who uses this information in a manner or for a purpose in violation of this article is guilty of a felony and, upon conviction, must be fined not more than ten thousand dollars or imprisoned not more than ten years, or both./
Renumber sections to conform.
Amend title to conform.

Rep. LITTLEJOHN explained the amendment.
The amendment was then adopted.

The Bill, as amended, was read the second time and ordered to third reading.

H. 3803--ORDERED TO BE READ
THIRD TIME TOMORROW

On motion of Rep. LITTLEJOHN, with unanimous consent, it was ordered that H. 3803 (Word version) be read the third time tomorrow.

S. 589--POINT OF ORDER

The following Bill was taken up:

S. 589 (Word version) -- Senators McConnell, Drummond, Rankin, Land, McGill, Thomas, Moore, Fair, Ryberg, Setzler, Peeler, Reese and Verdin: A BILL TO AMEND ARTICLE 3, CHAPTER 43, TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO COUNTY EQUALIZATION AND REASSESSMENT, BY ADDING SECTION 12-43-365, SO AS TO PROVIDE THAT THE VALUE OF TANGIBLE AND INTANGIBLE PERSONAL PROPERTY AND ANY INCOME DERIVED THEREFROM, WHETHER DIRECTLY OR INDIRECTLY, SHALL NOT BE INCLUDED IN THE DETERMINATION OF FAIR MARKET VALUE OF GOLF COURSE REAL PROPERTY FOR AD VALOREM TAX PURPOSES.

POINT OF ORDER

Rep. SIMRILL made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not


Printed Page 3359 . . . . . Thursday, May 12, 2005

been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.

H. 3703--POINT OF ORDER

The following Bill was taken up:

H. 3703 (Word version) -- Reps. Vaughn, Loftis, Haskins, Davenport, Altman, Bailey, Bales, R. Brown, Cato, Ceips, Cooper, Herbkersman, Littlejohn, Rhoad, Rice and Walker: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-43-275, SO AS TO REPLACE CALCULATION AND IMPOSITION OF A ROLLBACK PROPERTY TAX MILLAGE RATE FOR REASSESSMENT YEARS WITH A REASSESSMENT YEAR MILLAGE RATE CALCULATED TO PRODUCE NO MORE THAN ONE PERCENT ADDITIONAL PROPERTY TAX REVENUE THAN SUCH REVENUE IN THE PRECEDING YEAR; TO AMEND SECTION 6-1-320, AS AMENDED, RELATING TO MILLAGE RATE LIMITATIONS ON LOCAL GOVERNING BODIES, SO AS TO DELETE AUTHORIZATION FOR MILLAGE RATE INCREASES EQUAL TO INCREASES IN THE CONSUMER PRICE INDEX WITHOUT A POSITIVE MAJORITY VOTE OF THE GOVERNING BODY; AND TO AMEND SECTION 12-37-251, AS AMENDED, RELATING TO THE RESIDENTIAL PROPERTY TAX EXEMPTION FROM SCHOOL OPERATING MILLAGE AND CALCULATION OF THE ROLLBACK TAX SO AS TO DELETE THE ROLLBACK TAX PROVISIONS MADE OBSOLETE BY THE PROVISIONS OF THIS ACT.

POINT OF ORDER

Rep. BATTLE made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.

H. 3702--POINT OF ORDER

The following Bill was taken up:

H. 3702 (Word version) -- Reps. J. R. Smith, Loftis, Hinson, G. R. Smith, Haskins, Barfield, Vaughn, Clark, Frye, Davenport, Viers, Haley, Altman,


Printed Page 3360 . . . . . Thursday, May 12, 2005

Bailey, Cato, Ceips, Chellis, Clemmons, Dantzler, Edge, Hagood, Hamilton, Harrell, Herbkersman, Huggins, Limehouse, Littlejohn, McGee, Merrill, Perry, E. H. Pitts, Rice, Sandifer, Scarborough, D. C. Smith, W. D. Smith, Talley, Tripp and Young: A BILL TO AMEND SECTION 59-67-460, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CONTRACTS FOR SCHOOL TRANSPORTATION SERVICES, SO AS TO PROVIDE THAT A SCHOOL DISTRICT MAY CONTRACT WITH PRIVATE INDIVIDUALS OR CONTRACTORS FOR ITS TRANSPORTATION SERVICES AND TO PROVIDE THE FORMULA BY WHICH THE STATE BUDGET AND CONTROL BOARD SHALL CALCULATE STATE AID.

The Ways and Means Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\PT\2640SJ05):
Amend the bill, as and if amended, by deleting all after the enacting words and inserting:
/ SECTION   1.   Section 59-67-460 of the 1976 Code is amended to read:

"Section 59-67-460.   (A)   Any county board of education A school district may at any time contract for any part or all of its transportation services with private individuals or contractors for the furnishing of such these services. In any such this instance the county board of education school district shall execute the contracts. The county board shall school district must be responsible for the payment of all sums due under contracts so entered into pursuant to this section and shall receive aid from the State for pupils thus transported only on the basis of the average per pupil operating cost of State-owned equipment for the current year as determined by the State Board of Education. as calculated by the State Budget and Control Board to include that district's proportional share of the current year's state appropriations of any money used for school transportation activities, including fuel, maintenance, parts, driver's salaries, insurance, and any other relevant activities, based on actual expenditures in that district as they relate to total statewide expenditures for school transportation activities, including fuel, maintenance, parts, driver's salaries, insurance, and any other relevant activities in the year previous to the decision to contract. In addition, the district may receive, at its discretion, from the State all school buses and school bus maintenance vehicles provided by the State to the district in the year previous to the decision to contract or the proceeds from the sale of those vehicles as a


Printed Page 3361 . . . . . Thursday, May 12, 2005

one-time payment. The State Department of Education promptly shall deliver to the Budget and Control Board a full and complete accounting of all state expenditures on school transportation pursuant to this subsection upon request.

(B)   The Board board may enter into agreements an agreement with county boards of education a school district whereby pupils living in isolated areas may be transported by special arrangements when such transportation can be provided at lower cost than by operating a regular bus route."
SECTION   2.   This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.

Rep. COTTY explained the amendment.

POINT OF ORDER

Rep. SCOTT made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.

S. 305--POINT OF ORDER

The following Bill was taken up:

S. 305 (Word version) -- Senators Peeler, J. V. Smith, Short, Alexander, Hayes, Moore, Lourie and Knotts: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, TO ENACT THE "SOUTH CAROLINA MEDICAID MODERNIZATION ACT" INCLUDING PROVISIONS TO ADD ARTICLE 8, CHAPTER 6, TITLE 44 SO AS TO PROVIDE THAT THE DEPARTMENT OF HEALTH AND HUMAN SERVICES SHALL IMPLEMENT EFFECTIVE AND EFFICIENT MEDICAID CARE MANAGEMENT, INCLUDING ADMINISTERING CARE MANAGEMENT PROGRAMS FOR ROUTINE CARE AND IMPLEMENTING CARE MANAGEMENT PROGRAMS FOR CHRONIC DISEASE CARE; TO PROVIDE FOR EFFECTIVE MEDICAID PHARMACY BENEFIT MANAGEMENT, INCLUDING THE ESTABLISHMENT OF THE PHARMACY AND THERAPEUTICS COMMITTEE, WHICH SHALL RECOMMEND CLASSES OF DRUGS THAT SHOULD BE INCLUDED ON A PREFERRED DRUG LIST AND CRITERIA FOR


Printed Page 3362 . . . . . Thursday, May 12, 2005

IMPLEMENTATION OF A PREFERRED DRUG LIST PROGRAM; TO PROVIDE FOR EFFECTIVE MEDICAID STATE AGENCY SERVICE MANAGEMENT, INCLUDING PERIODIC MEETINGS OF DIRECTORS OF ALL STATE AGENCIES RECEIVING MEDICAID FUNDS FOR THE PURPOSE OF CONTROLLING THE GROWTH OF MEDICAID AND IMPROVING THE STATE MEDICAID PROGRAM AND TO REQUIRE THE DEPARTMENT TO REPORT TO THE GENERAL ASSEMBLY ON MEDICAID EXPENDITURES AND TO CONDUCT PERIODIC AUDITS AND REVIEWS OF STATE AGENCIES RECEIVING MEDICAID FUNDS; TO ADD SECTION 44-6-110 SO AS TO REQUIRE THE DEPARTMENT OF HEALTH AND HUMAN SERVICES TO, AMONG OTHER THINGS, DEVELOP MEDICAID ELIGIBILITY DETERMINATION CRITERIA, TO CENTRALIZE MEDICAID ELIGIBILITY PROCESSING, AND TO CONDUCT AUDITS OF ELIGIBILITY FILES; TO AMEND SECTION 44-6-80, RELATING TO REPORTS TO THE GENERAL ASSEMBLY, SO AS TO FURTHER SPECIFY THE CONTENTS AND REQUIREMENTS FOR THESE REPORTS; TO AMEND ARTICLE 3, CHAPTER 6, TITLE 44, RELATING TO CHILD DEVELOPMENT SERVICES, SO AS TO DELETE THESE PROVISIONS AND TO PROVIDE FOR MEDICAID FRAUD AND ABUSE MANAGEMENT, INCLUDING PROVISIONS REQUIRING AUDITS, SANCTIONS, AND CONTRACTING WITH OTHER ENTITIES TO PREVENT MEDICAID FRAUD, ABUSE, AND WASTE; TO ADD SECTION 38-71-270 SO AS TO REQUIRE HEALTH INSURERS TO SUBMIT NAMES AND OTHER IDENTIFYING INFORMATION TO THE DEPARTMENT OF INSURANCE TO BE PROVIDED TO THE DEPARTMENT OF HEALTH AND HUMAN SERVICES TO USE IN IDENTIFYING MEDICAID RECIPIENTS WHO HAVE OTHER HEALTH INSURANCE COVERAGE; TO ADD SECTION 44-6-112 SO AS TO AUTHORIZE THE DEPARTMENT OF HEALTH AND HUMAN SERVICES TO FUND THE NET COSTS OF ANY THIRD PARTY LIABILITY AND DRUG REBATE COLLECTION EFFORTS FROM THE REVENUE COLLECTED IN THOSE EFFORTS; TO AMEND SECTION 43-3-65, RELATING TO COUNTIES PROVIDING OFFICE SPACE TO THE DEPARTMENT OF SOCIAL SERVICES, SO AS TO ALSO REQUIRE COUNTIES TO PROVIDE SPACE FOR THE DEPARTMENT OF HEALTH AND HUMAN SERVICES ELIGIBILITY PROCESSING; AND TO

Printed Page 3363 . . . . . Thursday, May 12, 2005

REPEAL JOINT RESOLUTION 370 OF 2002 RELATING TO NURSING HOME BED FRANCHISE FEES.

POINT OF ORDER

Rep. RICE made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.

H. 4070--POINT OF ORDER

The following Joint Resolution was taken up:

H. 4070 (Word version) -- Ways and Means Committee: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 16, ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO BENEFITS AND FUNDING OF PUBLIC EMPLOYEE PENSION PLANS IN THIS STATE AND INVESTMENTS ALLOWED FOR FUNDS OF THE VARIOUS STATE-OPERATED RETIREMENT SYSTEMS, SO AS TO DELETE THE RESTRICTIONS LIMITING SUCH INVESTMENTS TO AMERICAN-BASED CORPORATIONS REGISTERED ON AN AMERICAN NATIONAL EXCHANGE AS PROVIDED IN THE SECURITIES EXCHANGE ACT OF 1934 OR QUOTED THROUGH THE NATIONAL ASSOCIATION OF SECURITIES DEALERS AUTOMATIC QUOTATION SYSTEM.

POINT OF ORDER

Rep. SIMRILL made the Point of Order that the Joint Resolution was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.


Printed Page 3364 . . . . . Thursday, May 12, 2005

S. 138--POINT OF ORDER

The following Bill was taken up:

S. 138 (Word version) -- Senator Hayes: A BILL TO AMEND CHAPTER 3, TITLE 56 OF THE 1976 CODE, RELATING TO MOTOR VEHICLE REGISTRATION AND LICENSING, BY ADDING ARTICLE 10 TO PROVIDE FOR THE REGISTRATION AND LICENSING OF ALL-TERRAIN VEHICLES.

POINT OF ORDER

Rep. OTT made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.

H. 4078--POINT OF ORDER

The following Bill was taken up:

H. 4078 (Word version) -- Reps. Duncan, Taylor, M. A. Pitts, Cotty, Clark, Viers, Rivers, Bowers, Hosey, Anderson, G. Brown, Leach, W. D. Smith, Rhoad, Bailey, Bales, Branham, Breeland, R. Brown, Chellis, Clyburn, Jefferson, Merrill, Neilson, Simrill, Sinclair and Young: A BILL TO AMEND SECTION 59-1-370, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CLOSING OF EDUCATIONAL INSTITUTIONS ON GENERAL ELECTION DAY, SO AS TO PROVIDE THAT UPON A MAJORITY VOTE OF THE BOARD OF TRUSTEES EACH SCHOOL DISTRICT MAY CHOOSE TO CLOSE ON GENERAL ELECTION DAY EACH YEAR.

POINT OF ORDER

Rep. TAYLOR made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.


Printed Page 3365 . . . . . Thursday, May 12, 2005

H. 3346--POINT OF ORDER

The following Bill was taken up:

H. 3346 (Word version) -- Reps. Scott, Govan, J. Brown, McLeod, Clyburn, J. Hines, Hosey, Miller, M. Hines, Haskins, Phillips, J. H. Neal, Bales, Battle, Breeland, R. Brown, Howard, Jennings, J. E. Smith, Clark and Rutherford: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 45, TITLE 44 TO ENACT THE SOUTH CAROLINA CHILDREN'S HEALTH OBESITY ACT, INCLUDING PROVISIONS TO CREATE THE CHILD HEALTH ADVISORY COMMITTEE; TO PROVIDE FOR ITS MEMBERSHIP, POWERS AND DUTIES, INCLUDING DEVELOPING NUTRITION AND PHYSICAL ACTIVITY STANDARDS AND RECOMMENDATIONS TO BE IMPLEMENTED BY THE DEPARTMENT OF EDUCATION; TO PROVIDE FOR CERTAIN HEALTH AND NUTRITION SPECIALISTS TO BE EMPLOYED BY THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL AND THE DEPARTMENT OF EDUCATION, CONTINGENT UPON AVAILABLE FUNDING; TO REQUIRE SCHOOL DISTRICTS TO CONVENE NUTRITION AND PHYSICAL ACTIVITY ADVISORY COMMITTEES; TO REQUIRE STUDENT AND SCHOOL REPORT CARDS TO CONTAIN CERTAIN HEALTH DATA; AND TO REQUIRE THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL AND THE DEPARTMENT OF EDUCATION TO REPORT TO CERTAIN LEGISLATIVE COMMITTEES ON THE IMPLEMENTATION OF THIS ACT.

POINT OF ORDER

Rep. SCOTT made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.

OBJECTION TO RECALL

Rep. SCOTT asked unanimous consent to recall H. 3907 (Word version) from the Committee on Judiciary.
Rep. TALLEY objected.


Printed Page 3366 . . . . . Thursday, May 12, 2005

OBJECTION TO RECALL

Rep. TRIPP asked unanimous consent to recall H. 4054 (Word version) from the Committee on Ways and Means.
Rep. ANTHONY objected.

OBJECTION TO RECALL

Rep. M. A. PITTS asked unanimous consent to recall H. 3163 (Word version) from the Committee on Medical, Military, Public and Municipal Affairs.
Rep. J. BROWN objected.

MOTION PERIOD

The motion period was dispensed with on motion of Rep. COOPER.

S. 1--DEBATE ADJOURNED

Rep. TOWNSEND moved to adjourn debate upon the following Bill until Tuesday, May 17, which was adopted:

S. 1 (Word version) -- Senators Ryberg, Hutto, Lourie, Drummond, Land, Moore, Matthews, McGill, O'Dell, Reese, Hayes, Gregory, Jackson, Martin, Rankin, Short, Richardson, Ritchie, Cromer, J. V. Smith, Leatherman, Fair and Patterson: A BILL TO AMEND SECTION 56-5-6450, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CHILD PASSENGER RESTRAINT SYSTEM REQUIREMENTS, SO AS TO PROVIDE THAT A FINE FOR A VIOLATION OF THE LAW MUST NOT BE WAIVED; TO AMEND SECTION 56-5-6530, RELATING TO EXCEPTIONS TO THE MANDATORY USE OF SAFETY BELTS AND CHILD RESTRAINT SYSTEM REQUIREMENTS, SO AS TO PROVIDE THAT OCCUPANTS OF THE BACK SEAT OF A MOTOR VEHICLE ARE NOT EXEMPT FROM THE SAFETY BELT REQUIREMENT; TO AMEND SECTION 56-5-6540, RELATING TO PENALTIES FOR VIOLATIONS OF THE SAFETY BELT LAW AND CHILD RESTRAINT SYSTEM REQUIREMENTS, SO AS TO PROVIDE THAT ALL FUNDS COLLECTED PURSUANT TO THIS SECTION MUST BE DEPOSITED IN THE STATE GENERAL FUND, A LAW ENFORCEMENT OFFICER MAY NOT SEARCH A VEHICLE STOPPED SOLELY FOR A PRIMARY SAFETY BELT VIOLATION, A LAW ENFORCEMENT OFFICER MAY STOP A DRIVER OF A MOTOR VEHICLE FOR ANY PRIMARY VIOLATION OF A PROVISION THAT REQUIRES A DRIVER OR PASSENGER TO WEAR A SAFETY BELT OR A CHILD


Printed Page 3367 . . . . . Thursday, May 12, 2005

RESTRAINT SYSTEM, A PERSON MUST NOT BE CONVICTED FOR A PRIMARY SAFETY BELT VIOLATION EXCEPT UPON PROOF BEYOND A REASONABLE DOUBT, A VIOLATION OF THE MANDATORY SAFETY BELT LAW MAY BE TRIED BEFORE EITHER A JUDGE OR A JURY, AND A CONVICTION FOR A VIOLATION OF THE STATE'S MANDATORY SAFETY BELT LAW IS APPEALABLE TO THE COURT OF COMMON PLEAS.

S. 348--DEBATE ADJOURNED

Rep. CATO moved to adjourn debate upon the following Bill until Tuesday, May 17, which was adopted:

S. 348 (Word version) -- Senators Thomas and J. V. Smith: A BILL TO AMEND SECTION 45-2-70 OF THE 1976 CODE, RELATING TO THE POSTING OF RULES IN LODGING ESTABLISHMENTS, TO REQUIRE THE POSTING OF A NOTICE REQUIRED BY SECTION 45-5-80; TO AMEND CHAPTER 5, TITLE 45 BY ADDING SECTION 45-5-80 TO PROVIDE THAT ALL LODGING ESTABLISHMENTS WITHOUT A SPRINKLER SYSTEM MUST POST A NOTICE IN A CONSPICUOUS PLACE AT OR NEAR THE GUEST REGISTRATION DESK; TO AMEND CHAPTER 5, TITLE 45 BY ADDING SECTION 45-5-90 TO REQUIRE THAT INSURANCE COMPANIES THAT PROVIDE PROPERTY INSURANCE FOR HOTELS THAT HAVE WATER SPRINKLER SYSTEMS THAT ARE NOT IN COMPLIANCE WITH NATIONAL FIRE PROTECTION ASSOCIATION STANDARDS MUST INCLUDE A STATEMENT IN THE INSURED'S INSURANCE RENEWAL NOTICE THAT CALCULATES THE PREMIUM SAVINGS THE INSURED WOULD REALIZE IF THE MOTEL'S SPRINKLER SYSTEM WAS COMPLIANT WITH THOSE STANDARDS.

S. 318--ORDERED TO THIRD READING

The following Bill was taken up:

S. 318 (Word version) -- Senators McConnell and Ford: A BILL TO AMEND CHAPTER 1, TITLE 5, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MUNICIPAL INCORPORATION, SO AS TO ESTABLISH A JOINT LEGISLATIVE COMMITTEE ON MUNICIPAL INCORPORATION TO REVIEW THE FILING OF AN


Printed Page 3368 . . . . . Thursday, May 12, 2005

AREA SEEKING INCORPORATION AND TO RECOMMEND TO THE SECRETARY OF STATE WHETHER THE MINIMUM SERVICE STANDARDS FOR MUNICIPAL INCORPORATION ARE MET AND TO DEFINE CONTIGUITY FOR PURPOSES OF MUNICIPAL INCORPORATION.

Rep. SINCLAIR proposed the following Amendment No. 2 (Doc Name COUNCIL\GJK\20507SD05), which was tabled:
Amend the bill, as and if amended, in Section 5-1-30 of the 1976 Code, as contained in SECTION 1, by striking item (2) of subsection (B) which begins on line 33, page 5, and inserting:
/   (2)   For the purposes of item (1) of this subsection, the six-month time period begins with the date the municipality receives the annexation petition from the area seeking incorporation.

(3)   The municipal council of the nearest incorporated municipality may by resolution of council waive the five-mile limitation.   /
Renumber sections to conform.
Amend title to conform.

Rep. SCARBOROUGH moved to table the amendment, which was agreed to.

Rep. SCARBOROUGH explained the Bill.

Rep. FUNDERBURK moved to adjourn debate on the Bill until Tuesday, May 17.

Rep. SCARBOROUGH moved to table the motion.

Rep. FUNDERBURK demanded the yeas and nays which were taken, resulting as follows:

Yeas 68; Nays 28

Those who voted in the affirmative are:

Anthony                Bailey                 Bales
Ballentine             Barfield               Bingham
Bowers                 Brady                  J. Brown
Cato                   Ceips                  Chalk
Chellis                Clark                  Clemmons
Clyburn                Cobb-Hunter            Cooper

Printed Page 3369 . . . . . Thursday, May 12, 2005

Cotty                  Dantzler               Davenport
Delleney               Duncan                 Emory
Govan                  Hagood                 Haley
Hamilton               Hardwick               Harrell
Harrison               Haskins                Herbkersman
Howard                 Huggins                Jennings
Kennedy                Leach                  Limehouse
Loftis                 Lucas                  Martin
Merrill                Moody-Lawrence         Neilson
Ott                    Owens                  Parks
Perry                  Pinson                 E. H. Pitts
M. A. Pitts            Rice                   Scarborough
Simrill                Sinclair               Skelton
D. C. Smith            G. M. Smith            J. R. Smith
Stewart                Taylor                 Thompson
Toole                  Townsend               Vaughn
Whitmire               Wilkins

Total--68

Those who voted in the negative are:

Agnew                  Allen                  Anderson
Breeland               G. Brown               Coleman
Frye                   Funderburk             Hayes
Hiott                  Hosey                  Jefferson
Kirsh                  Littlejohn             Mahaffey
McCraw                 McLeod                 J. H. Neal
Norman                 Phillips               Rutherford
F. N. Smith            G. R. Smith            Talley
Tripp                  Weeks                  Whipper
White

Total--28

So, the motion to adjourn debate was tabled.

Pursuant to Rule 7.7 the Yeas and Nays were taken resulting as follows:

Yeas 81; Nays 20


Printed Page 3370 . . . . . Thursday, May 12, 2005

Those who voted in the affirmative are:
Allen                  Anthony                Bailey
Bales                  Ballentine             Barfield
Battle                 Bingham                Bowers
Brady                  R. Brown               Cato
Ceips                  Chalk                  Chellis
Clark                  Clemmons               Clyburn
Coates                 Cobb-Hunter            Coleman
Cooper                 Cotty                  Dantzler
Davenport              Delleney               Duncan
Govan                  Hagood                 Haley
Hamilton               Hardwick               Harrell
Harrison               Haskins                Hayes
Herbkersman            Hosey                  Huggins
Jefferson              Jennings               Leach
Limehouse              Loftis                 Lucas
Martin                 McCraw                 McGee
Merrill                J. H. Neal             Neilson
Ott                    Owens                  Perry
Phillips               E. H. Pitts            M. A. Pitts
Rice                   Sandifer               Scarborough
Simrill                Sinclair               Skelton
D. C. Smith            F. N. Smith            G. M. Smith
G. R. Smith            J. R. Smith            W. D. Smith
Stewart                Taylor                 Thompson
Toole                  Townsend               Umphlett
Vaughn                 Vick                   Weeks
White                  Whitmire               Wilkins

Total--81

Those who voted in the negative are:

Agnew                  Anderson               Breeland
G. Brown               Frye                   Funderburk
Hiott                  Howard                 Kirsh
Littlejohn             Mahaffey               McLeod
Miller                 Moody-Lawrence         Norman
Parks                  Rutherford             Talley
Tripp                  Whipper

Total--20


Printed Page 3371 . . . . . Thursday, May 12, 2005

So, the Bill was read the second time and ordered to third reading.

RECURRENCE TO THE MORNING HOUR

Rep. G. M. SMITH moved that the House recur to the Morning Hour, which was agreed to.

HOUSE RESOLUTION

The following was introduced:

H. 4090 (Word version) -- Reps. Talley, Sinclair, W. D. Smith, G. M. Smith and F. N. Smith: A HOUSE RESOLUTION TO CONGRATULATE THE WOFFORD COLLEGE BOWL TEAM ON ITS UNPRECEDENTED PERFORMANCE IN ADVANCING TO THE NATIONAL COLLEGE BOWL TOURNAMENT AND TO WISH IT THE BEST IN ALL FUTURE COMPETITION.

The Resolution was adopted.

CONCURRENT RESOLUTION

The following was introduced:

H. 4091 (Word version) -- Rep. Bingham: A CONCURRENT RESOLUTION TO RECOGNIZE AND COMMEND SOUTH CAROLINA FARM BUREAU MUTUAL INSURANCE COMPANY UPON REACHING ITS FIFTIETH ANNIVERSARY OF SERVICE TO ITS MEMBER-POLICYHOLDERS AND TO THE INSURANCE MARKET OF SOUTH CAROLINA.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

S. 22--CONFERENCE REPORT ADOPTED

CONFERENCE REPORT

The General Assembly, Columbia, S.C., May 12, 2005

The COMMITTEE OF CONFERENCE, whom was referred: (Doc. No. l:\s-jud\amend\crjud22.doc)

S. 22 (Word version) -- Senators Knotts, McConnell, Leventis, Sheheen, Hayes, Alexander, Ford, McGill, Williams and Malloy: A BILL TO AMEND


Printed Page 3372 . . . . . Thursday, May 12, 2005

SECTION 14-7-1610, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE LEGISLATIVE INTENT OF ARTICLE 15, CHAPTER 7, TITLE 14, SO AS TO PROVIDE THAT THERE IS A NEED TO ENHANCE THE GRAND JURY SYSTEM TO IMPROVE THE ABILITY OF THE STATE TO DETECT AND INVESTIGATE VIOLATIONS WHICH RESULT IN HARM TO THE ENVIRONMENT AND TO PROVIDE THAT THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, BECAUSE OF ITS UNIQUE QUALIFICATIONS, MUST PLAY A SUBSTANTIAL ROLE IN THE INVESTIGATION OF ANY SUCH ALLEGED ENVIRONMENTAL OFFENSE; AND TO AMEND SECTION 14-7-1630, RELATING TO THE JURISDICTION OF THE STATE GRAND JURY, SO AS TO EXTEND THE SUBJECT MATTER JURISDICTION OF THE STATE GRAND JURY TO INCLUDE WILFUL CRIMINAL VIOLATIONS WHICH RESULT IN HARM TO THE ENVIRONMENT, AND TO PROVIDE THAT THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL MUST MAKE A FORMAL WRITTEN RECOMMENDATION TO THE ATTORNEY GENERAL AND THE CHIEF OF THE SOUTH CAROLINA LAW ENFORCEMENT DIVISION IN CONSIDERATION OF THE NEED TO IMPANEL A STATE GRAND JURY.
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 therein the following:
/     SECTION   1.   Section 14-7-1610 of the 1976 Code, as last amended by Act 208 of 2004, is further amended to read:

"Section 14-7-1610.   (A)   It is the intent of the General Assembly to enhance the grand jury system and to improve the ability of the State to detect and eliminate criminal activity. The General Assembly recognizes the great importance of having the federal authorities available for certain investigations. The General Assembly finds that crimes involving narcotics, dangerous drugs, or controlled substances, as well as crimes involving obscenity, often transpire or have significance in more than one county of this State. When this occurs, these crimes are most effectively detected and investigated by a grand jury system with the authority to cross county lines.


Printed Page 3373 . . . . . Thursday, May 12, 2005

(B)   The General Assembly finds that there is a need to enhance the grand jury system to improve the ability of the State to detect and eliminate public corruption. Crimes involving public corruption transpire at times in a single county, but often transpire or have significance in more than one county of this State. The General Assembly believes that a state grand jury, possessing considerably broader investigative authority than individual county grand juries, should be available to investigate public corruption offenses in South Carolina.

(C)   The General Assembly finds it fundamentally necessary to improve the ability of the State to prevent, detect, investigate, and prosecute crimes that involve the depiction of children under the age of eighteen in sexual activity, and obscenity crimes that are directed toward or involve children under the age of eighteen. The serious and unacceptable threat that these crimes pose to children is self-evident and impacts the State as a whole even if the actual criminal act occurs only in one county of the State. An effective effort to eliminate these heinous crimes requires a coordinated effort, which is accomplished more effectively through the state grand jury system. The effective prevention, detection, investigation, and prosecution of these crimes may require the use and application of state obscenity statutes or common law offenses not specifically directed toward the prevention and punishment of obscenity crimes involving children. Because many of these crimes involve computers, statewide jurisdiction over these crimes is consistent with the jurisdiction of a state grand jury over offenses defined in the Computer Crime Act. The General Assembly concludes that a state grand jury must be available to employ its broad investigative powers in the investigation of child-related obscenity by enabling the state grand jury to investigate all obscenity offenses, regardless of their multi-county impact, or whether they transpire or have significance in more than one county of this State.

(D)   The General Assembly finds that there is a need to enhance the grand jury system to improve the ability of the State to detect and investigate crimes involving the election laws including, but not limited to, those named offenses as specified in Title 7, or common law crimes involving the election laws where not superseded, or a crime arising out of or in connection with the election laws, or attempt, aiding, abetting, solicitation, or conspiracy to commit a crime involving the election laws.

(E)   The General Assembly finds that there is a need to enhance the grand jury system to improve the ability of the State to detect and


Printed Page 3374 . . . . . Thursday, May 12, 2005

investigate knowing and willful crimes which result in actual and substantial harm to the environment. These crimes include knowing and willful offenses specified in Titles 13, 44, and 48, or any knowing and willful crime arising out of or in connection with environmental laws, or any attempt, aiding, abetting, solicitation, or conspiracy to commit a knowing and willful crime involving the environment if the anticipated actual damages, including, but not limited to, the cost of remediation, are two million dollars or more, as certified by an independent environmental engineer who shall be contracted by the Department of Health and Environmental Control.

(1)   The General Assembly finds that the South Carolina Department of Health and Environmental Control possesses the expertise and knowledge to determine whether there has occurred an alleged environmental offense as defined in this article.

(2)   The General Assembly finds that because of its expertise and knowledge, the Department of Health and Environmental Control must play a substantial role in the investigation of any such alleged environmental offense.

(3)   The General Assembly finds that, while the Department of Health and Environmental Control must not make prosecutorial decisions regarding such alleged environmental offense as defined in this article, the department must be integrally involved in the investigation of any such alleged environmental offense before and after the impaneling of a state grand jury pursuant to Section 14-7-1630.

(4)   The General Assembly finds that it is in the public interest to avoid duplicative and overlapping prosecutions to the extent that the Attorney General considers possible. Therefore, the Attorney General shall consult with and advise the Environmental Protection and Enforcement Coordinating Subcommittee and cooperate with other state and federal prosecutorial authorities having jurisdiction over environmental enforcement in order to carry out the provisions of Sections 14-7-1630(A)(8) and 14-7-1630(C).

(F)   The General Assembly finds that related criminal activity often arises out of or in connection with crimes involving narcotics, dangerous drugs or controlled substances, obscenity, or public corruption, or environmental offenses and that the mechanism for detecting and investigating these related crimes must be improved.

(G)   Accordingly, the General Assembly concludes that a state grand jury should be allowed to investigate certain crimes related to narcotics, dangerous drugs, and obscenity and should also be allowed


Printed Page 3375 . . . . . Thursday, May 12, 2005

to investigate crimes involving public corruption, and election laws, and environmental offenses.

(H)   This section does not limit the authority of a county grand jury, solicitor, or other appropriate law enforcement personnel to investigate, indict, or prosecute offenses within the jurisdiction of the state grand jury."
SECTION   2.   Section 14-7-1630 of the 1976 Code, as last amended by Act 208 of 2004, is further amended to read:

"Section 14-7-1630.   (A)   The jurisdiction of a state grand jury impaneled under this article extends throughout the State. The subject matter jurisdiction of a state grand jury in all cases is limited to the following offenses:

(1)   a crime involving narcotics, dangerous drugs, or controlled substances, or a crime arising out of or in connection with a crime involving narcotics, dangerous drugs, or controlled substances including, but not limited to, money laundering as specified in Section 44-53-475, obstruction of justice, perjury or subornation of perjury, or any attempt, aiding, abetting, solicitation, or conspiracy to commit one of the aforementioned crimes if the crime is of a multi-county nature or has transpired or is transpiring or has significance in more than one county of this State;

(2)   a crime, statutory, common law or other, involving public corruption as defined in Section 14-7-1615, a crime, statutory, common law or other, arising out of or in connection with a crime involving public corruption as defined in Section 14-7-1615, and any attempt, aiding, abetting, solicitation, or conspiracy to commit a crime, statutory, common law or other, involving public corruption as defined in Section 14-7-1615;

(3)   a crime involving the election laws including, but not limited to, those named offenses as specified in Title 7, or a common law crime involving the election laws if not superseded, or a crime arising out of or in connection with the election laws, or any attempt, aiding, abetting, solicitation, or conspiracy to commit a crime involving the election laws;

(4)   a crime involving computer crimes, pursuant to Chapter 16, Title 16, or a conspiracy or solicitation to commit a crime involving computer crimes;

(5)   a crime involving terrorism, or a conspiracy or solicitation to commit a crime involving terrorism. Terrorism includes an activity that:


Printed Page 3376 . . . . . Thursday, May 12, 2005

(a)   involves an act dangerous to human life that is a violation of the criminal laws of this State;

(b)   appears to be intended to:

(i)     intimidate or coerce a civilian population;

(ii)   influence the policy of a government by intimidation or coercion; or

(iii)   affect the conduct of a government by mass destruction, assassination, or kidnapping; and

(c)   occurs primarily within the territorial jurisdiction of this State;

(6)   a crime involving a violation of Chapter 1, Title 35 of the Uniform Securities Act, or a crime related to securities fraud or a violation of the securities laws; and

(7)   a crime involving obscenity including, but not limited to, a crime as provided in Article 3, Chapter 15, Title 16, or any attempt, aiding, abetting, solicitation, or conspiracy to commit a crime involving obscenity.; and

(8)   a knowing and willful crime involving actual and substantial harm to the water, ambient air, soil or land, or both soil and land. Such a crime includes a knowing and willful violation of the Pollution Control Act, the Atomic Energy and Radiation Control Act, the State Underground Petroleum Environmental Response Bank Act, the State Safe Drinking Water Act, the Hazardous Waste Management Act, the Infectious Waste Management Act, the Solid Waste Policy and Management Act, the Erosion and Sediment Control Act, the South Carolina Mining Act, and the Coastal Zone Management Act, or any knowing and willful crime arising out of or in connection with environmental laws, or any attempt, aiding, abetting, solicitation, or conspiracy to commit a knowing and willful crime involving the environment if the anticipated actual damages, including, but not limited to, the cost of remediation, are two million dollars or more, as certified by an independent environmental engineer who shall be contracted by the Department of Health and Environmental Control. If the knowing and willful crime is a violation of federal law, then a conviction or an acquittal under federal law for the same act is a bar to the impaneling of a state grand jury pursuant to this section.

(B)   Whenever the Attorney General and the Chief of the South Carolina Law Enforcement Division consider it necessary and normal investigative or prosecutorial procedures are not adequate, the Attorney General may petition in writing to the chief administrative judge of the judicial circuit in which he seeks to impanel a state grand jury for an


Printed Page 3377 . . . . . Thursday, May 12, 2005

order impaneling a state grand jury. This judge is referred to in this article as the impaneling judge. The petition must allege the type of offenses to be inquired into and, in the case of those offenses contained in subsection (A)(1), must allege that these offenses may be of a multi-county nature or have transpired or are transpiring or have significance in more than one county of the State. The petition in all instances must specify that the public interest is served by the impanelment.

(C)   In all investigations of crimes specified in subsection (A)(8), except in matters where the Department of Health and Environmental Control or its officers or employees are the subjects of the investigation, the Commissioner of the Department of Health and Environmental Control must consult with and, after investigation, provide a formal written recommendation to the Attorney General and the Chief of the South Carolina Law Enforcement Division. The Attorney General and the Chief of the South Carolina Law Enforcement Division must consider the impaneling of a state grand jury necessary before the Attorney General presents a petition, which includes the commissioner's written recommendation, to the chief administrative judge pursuant to Section 14-7-1630(B).

(1)   In the case of evidence brought to the attention of the Attorney General, the Chief of the South Carolina Law Enforcement Division, or the Department of Health and Environmental Control by an employee or former employee of the alleged violating entity, there must also be separate, credible evidence of the violation in addition to the testimony or documents provided by the employee or former employee of the alleged violating entity.

(2)   Where an individual employee performs a criminal violation of the environmental laws that results in actual and substantial harm pursuant to subsection (A)(8) and which prompts an investigation authorized by this article, only the individual employee is subject to the investigation unless or until there is separate, credible evidence that the individual's employer knew of, concealed, directed, or condoned the employee's action.

(D)   The impaneling judge, after due consideration of the petition, may order the impanelment of a state grand jury in accordance with the petition for a term of twelve calendar months. Upon petition by the Attorney General, the then chief administrative judge of the judicial circuit in which a state grand jury was impaneled, by order, may extend the term of that state grand jury for a period of six months but the term


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of that state grand jury, including any extension thereof, shall not exceed two years.

(D)(E)   The chief administrative judge of the circuit wherein a state grand jury is sitting shall preside over that state grand jury during his tenure as chief administrative judge. The successor chief administrative judge shall assume all duties and responsibilities with regard to any state grand jury impaneled before his term, including, but not limited to, presiding over the state grand jury and ruling on petitions to extend its term. This judge is referred to in this article as the presiding judge.

(E)(F)   The presiding judge may discharge a state grand jury prior to the end of its original term or any extension thereof, upon a determination that its business has been completed or upon the request of the Attorney General.

(F)(G)   If, at any time within the original term of any state grand jury or any extension thereof, the presiding judge determines that the state grand jury is not conducting investigative activity within its jurisdiction or proper investigative activity, the presiding judge may limit the investigation so that the investigation conforms with the jurisdiction of the state grand jury and existing law or he may discharge the state grand jury. An order issued pursuant to this subsection or under subsection (E)(F) shall not become effective less than ten days after the date on which it is issued and actual notice given to the Attorney General and the foreman of the state grand jury, and may be appealed by the Attorney General to the Supreme Court. If an appeal from the order is made, the state grand jury, except as is otherwise ordered by the Supreme Court, shall continue to exercise its powers pending disposition of the appeal."
SECTION   3.   This act takes effect upon approval by the Governor./

Amend title to conform.

Senator Larry Martin              Representative Doug Jennings
Senator Jake Knotts               Representative Jim Merrill
Senator Gerald Malloy             Representative G. Murrell Smith
On Part of the Senate.            On Part of the House.

Rep. G. M. SMITH explained the Conference Report.

The Conference Report was adopted and a message was ordered sent to the Senate accordingly.


Printed Page 3379 . . . . . Thursday, May 12, 2005

Rep. HARRISON moved that the House do now adjourn, which was agreed to.

ADJOURNMENT

At 11:55 a.m. the House, in accordance with the motion of Rep. G. BROWN, adjourned in memory of Christopher Caswell Wilcox, to meet at 10:00 a.m. tomorrow.

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