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


Printed Page 1953 . . . . . Monday, April 18, 2005

Monday, April 18, 2005
(Statewide Session)


Indicates Matter Stricken
Indicates New Matter

The Senate assembled at 11:00 A.M., the hour to which it stood adjourned, and was called to order by the PRESIDENT.

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

Beloved, hear an ancient scripture, II Chronicles 1:11ff:

"Then God said to Solomon, 'Because you have asked wisdom and knowledge for yourself that you may judge (and rule) my people over whom I have made you King - wisdom and knowledge are granted to you'..."

Let us pray.

Father, we thank you for the high privilege of welcoming Your Servant, our President George W. Bush, today!

In these troubled times, he has asked, and You have granted to him, wisdom and knowledge, just as to King Solomon!

Father, please grant wisdom and knowledge to all who advise - and all who carry out his plans and prayers - and hopes and dreams for the people of our State - our country - and the whole wide world!

Father, hold our President, George, in the palm of Your hand!
Amen!

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

Committee to Escort

The PRESIDENT appointed Senators PEELER, COURSON, McGILL, KNOTTS and SCOTT to escort the Honorable George W. Bush, President of the United States, and members of his party to the House of Representatives for the Joint Assembly.

RECESS

At 11:55 A.M., the Senate receded from business for the purpose of attending the Joint Assembly.


Printed Page 1954 . . . . . Monday, April 18, 2005

JOINT ASSEMBLY
The President of the United States

At 12:00 Noon, the Senate appeared in the Hall of the House.

The PRESIDENT of the Senate called the Joint Assembly to order and announced that it had convened under the terms of H. 3858, a Concurrent Resolution adopted by both Houses

The Honorable George W. Bush, President of the United States, and members of his party, were escorted to the rostrum by Senators PEELER, COURSON, McGILL, KNOTTS and SCOTT and Representatives Anderson, Davenport, Kirsh, Littljohn and Young.

Speaker David Wilkins introduced the Honorable George W. Bush, President of the United States.

The President addressed the Joint Assembly as follows:

Thank you all very much. Mr. Speaker, thank you for that kind and short introduction. I appreciate Governor Sanford being here. I want to thank the Lt. Governor. I appreciate President Pro Tempore McCONNELL, Majority Leader LEATHERMAN and members of the South Carolina Legislature. I appreciate my traveling party from Washington. Hope you appreciate them, too. That would be Senator Lindsey Graham, Senator DeMint, members of the United States House of Representatives from the great State of South Carolina. I appreciate the justices of the South Carolina Supreme Court being here. I thank those of you who have taken time to come and listen. I appreciate your warm welcome.

It is an honor to be speaking in this Chamber. It is great to be back in the Capital of South Carolina. The last time I came to this city I gave the commencement speech at USC. I was proud to have received an honorary degree. When I told Laura about it, she said, "I thought your first degree was honorary." She sends her best and she sends her love. She's, by the way, a fabulous First Lady.

I appreciate our escort committee. I told the members that this is the first time I have spoken to a legislative body, state legislative body, since I was the Governor of Texas. So, thank you for having me. It's -- there're some differences, of course. There are a lot of cowboy hats back in Austin. And I'll be honest with you, a lot of us didn't know anything about dancing the shag. And I imagine we could have a pretty good debate about which of our states has the best barbecue. Now is not the time.

But one thing is, no matter whether you serve at the federal level or the state level, we share serious responsibilities. See, our constituents have put us into office to solve problems now. That's what they've


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done. They said, "We've elected you to go to your State House, or in my case, Washington, D.C., to solve problems." The people expect us to confront problems without illusion. They expect us to lead with conviction and confidence, not by reading the latest poll or listening to the latest focus group. And above all, they expect us to deliver results.

And here in South Carolina, you've delivered results. You've faced serious challenges, especially in your economy. Listen, we've had a stock market decline, we've had a recession, we've had corporate scandals, we've had a terrorist attack on September the 11th, 2001. We've had the demands of war. And all these have tested our nation's economy. And they hit particularly hard here in your State. South Carolina's economic growth slowed; small businesses moved out or shut down; workers lost their jobs; and state finances were headed toward a free fall.

The people of South Carolina look to you and they look to your Governor for leadership. And you delivered. You set clear priorities for your budget, and you made hard decisions when it came to spending. To rein in the rising costs of health care, you became one of the first states in the nation to offer health savings accounts to state employees. To reward hardworking families and job creators, you refused to raise taxes on the working people of South Carolina. You focused bipartisan actions; you've lifted your State out of fiscal crisis; you've erased a $155 million deficit, and you've done it two years ahead of schedule. Today South Carolina families are planning for the future with confidence.

I found this to be an interesting statistic about your State: more than 76 percent of the people in your State own their own home, one of the highest rates in the United States. Small businesses are investing and expanding, exports are on the rise. Thanks to your leadership, thanks to your hard work, thanks to your willingness to set aside partisan differences, jobs are coming back to the great State of South Carolina.

In Washington, we're moving forward with an ambitious agenda to keep this country safe, prosperous and free. The war on terror goes on. There are still ruthless enemies that would like to do harm to our people. We will continue to keep the pressure on these folks. We'll work with our friends and allies to be unrelenting in our search to bring them to justice. We will not rest until America is safe.

We'll continue to work to improve security here at home, but in the long term, in the long run, the best way to protect America and to keep the peace is to change the conditions that give rise to hopelessness and extremism. And the best way to do that is to spread freedom around


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the world. I don't believe freedom is America's gift to the world. I believe freedom is the Almighty God's gift to each man and woman in this world.

And that is why the United States of America will stand strongly with people in Afghanistan, to Iraq, to Lebanon, to the Ukraine, because we understand that as freedom advances, the American people will be more secure and we'll be able to achieve the peace that we all want.

My administration will continue to pursue pro-growth policies to ensure that America is the best place in the world to do business. To keep the economy growing and create jobs, we will keep the taxes low.

We'll continue to confront the problems of junk lawsuits by pushing for meaningful asbestos and medical liability reform. We'll work with Congress to pass an energy bill that will make America less dependent on foreign sources of energy.

I sent to Congress a disciplined federal budget, and both the House and the Senate have passed budget resolutions. And now they need to work out their differences and send me a budget that meets America's priorities, that restrains federal spending, and that keeps us on track to cut the deficit in half by 2009. In Washington, and in Columbia, South Carolina, government needs to follow a straightforward principle, a taxpayer's dollar must be spent wisely, or not spent at all.

Strong leadership means rising to the challenges of the day. It also means looking down the road. There will always be problems that arise unexpectedly; yet problems -- some problems are completely predictable. And as leaders, you and I have a responsibility to confront those problems today, and not pass them on to future generations.

Over the past few weeks I've been traveling around the country talking about one of the most serious and most predictable challenges which face our nation, and that is the long-term fiscal health of Social Security. Social Security has been a great success. Franklin Roosevelt did a really smart thing in setting up the Social Security system. It has provided an important safety net for millions of Americans. Seniors in South Carolina and seniors across this country depend on their monthly checks as an important part of their lives, as an important source of income for their retirement.

And today I have a message for every senior in South Carolina, and every senior across this country: Do not pay attention to the propaganda and scare ads. If you're receiving a Social Security check this month, you will continue receiving a Social Security [check] next


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month, and the month after that, and every month for the rest of your life.

There are other Americans who are now approaching retirement and have been paying into Social Security throughout their lives. These workers are counting on Social Security as part of their retirement plans, and there's money in the system for them. If you were born prior to 1950, America will honor the promise of Social Security for you. The problem is that the government is making promises for younger Americans that it cannot pay for. In other words, there's a hole in the safety net for younger Americans.

See, Social Security is a pay-as-you-go system -- you pay and we go ahead and spend here in Washington. We spend on -- to provide benefits for current retirees, and with money left over, we have spent your payroll taxes on government programs. Some people think there's a Social Security trust, where the government is holding your money, in an account with your name on it. It just doesn't work that way. That's not the way the system works. There is no vault holding your cash, waiting for you to retire. Instead, because we spend Social Security taxes on current retirees and other government programs, all that is left over in the so-called security trust is a bunch of filing cabinets with IOU's in them.

As a matter of fact, I went to West Virginia the other day to look at the filing cabinets, to make sure the IOU's were there -- paper. And it's there. And it's, frankly, not a very encouraging sight. It's not encouraging especially when you consider that times are changing in America, that the math for Social Security is changing significantly. By the math I mean this: In 1950, there were about 16 workers paying taxes for every beneficiary -- 16 workers for beneficiary. And today, there are 3.3 workers for every beneficiary. By the time our children and grandchildren are ready to retire, there will only be 2 workers paying for every beneficiary in the system.

That's only part of the problem. To compound the problem, the first baby boomers will soon start retiring. I happen to be one of them. As a matter of fact, I'm eligible to start collecting benefits in 2008 -- which happens to be a convenient year for me. The retirement of the baby boomer generation is going to have a huge impact on Social Security, because my generation is about 50 percent larger than my parents' generation. Today there are about 40 million retirees receiving benefits. By the time all the baby boomers have retired, there will be more than 72 million retirees receiving benefits. And thanks to


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advances in modern medicine, these retirees will live longer and collect benefits over longer retirements than the previous generation.

And to compound the problem even further, Congress has ensured that benefits to my generation will grow faster than our economy or the rate of inflation. In other words, people went around the country saying, vote for me, I'll make sure your benefits are higher. And so this sets up an enormous fiscal challenge facing Social Security. With each passing year, there will be fewer workers paying ever higher benefits to a larger number of retirees who are living longer.

And so here's the result: Three years from now, when the first baby boomers start collecting Social Security benefits, the system will start heading toward the red. Less than a decade later, in 2017, Social Security will go negative. And by that I mean it will be paying out more in benefits than it collects in payroll taxes. More money going out than coming in. And every year after that the shortfall will get worse.

In the year 2027, the government will somehow have to come up with an extra $200 billion to fund the system -- $200 billion more going out than coming in through payroll taxes. In 2034, the annual shortfall will be more than $300 billion a year. And by the year 2041, the entire system will be bankrupt. Now, think about that. If we don't do something to fix the system now, the students graduating this spring from the University of South Carolina or, in deference to the Speaker, Clemson -- will spend their entire careers paying Social Security taxes only to see the system go bankrupt a few years before they retire.

And I don't care if you're a Republican or Democrat, these are the facts. And the question is, do we have the will to do something about them. Now, in South Carolina, you know that once you're in the red, the options of getting out are never very appealing. If we allow Social Security to continue on its current path toward bankruptcy, we will leave our children and grandchildren with only a few drastic options to keep the system afloat. In other words, the longer you wait, the longer we don't do anything in Washington, the more drastic the solutions become.

For example, some estimate if we don't do anything, the payroll tax will get up to 18 percent. Is that a legacy we want to leave on younger generations of Americans? I don't think so. Or we're going to have to dramatically slash benefits, or cut other federal programs. The Social Security trust reported this: They said, every year we wait to fix the system will add an additional $600 billion to the cost of reform.


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I understand why some in Washington don't want to take on this issue. I guess they calculate there's a political cost when dealing with a tough issue. I think there's a political cost for not dealing with the issue. And so I've been traveling this country of ours, making it absolutely clear what the problems are. See, my strategy is pretty simple: Take the message to the people and define the facts of the problem, and let the people draw their own conclusions. I've been to 22 states to explain the facts. I've been to those states to explain the urgent need for the United States Congress to work with the administration to get something done now. And more and more Americans are beginning to hear the message.

I'm just starting, I'm just warming up. As a matter of fact, I like getting out of Washington, D.C. I like coming to places like South Carolina, to put the facts on the table so the people can make up their own mind about what's happening in Social Security.

I don't know if you've ever heard of Dutch Fork High School in Irmo. I met a very innovative teacher who assigned her students this assignment: Why don't you write letters to the editor about their impressions of Social Security? Here's what one of her students wrote: "By the time my generation gets to the age to draw Social Security, there will be no money left for us to draw on." This is a young high school student writing that. This isn't a professor in economics. This is a high school student. He said, "I don't know about other people, but I don't like the sound of that." People are beginning to get the message that there is a problem in Social Security.

Today I met an 80-year-old -- 80-year-old young woman from Silverstreet named Shirley. She said she's counting on Social Security. She gets a Social Security check every month, and she's confident she'll keep getting her checks. And there's no doubt in her mind she's going to get her checks, but there's a doubt in her mind as to whether or not her granddaughters are going to have comfort in their retirement, whether or not the safety net will be there for them. Here's what she said: "I don't know what I would do without it. It's my granddaughters that I'm worried about, and I want to do whatever is possible to fix the system for them."

Folks, we're talking about a generational issue here in America. The grandfolks are going to get their checks, and the fundamental question is, do we have the will in Washington, D.C. to make sure the system works for the grandchildren of America. And that's what I'm here talking about.


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I believe I have a duty to ask people to bring ideas forward. I brought a few myself, and I appreciate the response of Senator Lindsey Graham. He's brought some ideas forward, as has Senator Jim DeMint, as has your Governor. These men have been leaders in the debate. They've stepped up, and said, here are some ideas I'd like you to consider. But they're not the only ones who have set up good ideas. Former Congressman Tim Penny, a Democrat from Minnesota, has suggested tying Social Security benefits to prices rather than wages. My predecessor, Bill Clinton, had time -- had meetings all around the country on Social Security and he spoke of increasing the retirement age at one time.

I put together a commission of Republicans and Democrats, headed by the late Senator Daniel Patrick Moynihan of New York. And they did fine work. They recommended changing the way benefits are calculated. In other words, people are putting ideas on the table. An interesting idea was put forward by a Democrat Social Security expert named Robert Pozen, who has proposed a progressive way of structuring benefits that will be more generous to low-income workers. And that's an important idea.

In other words, all these ideas are on the table, but they have one thing in common -- they all require us to act now. Saving Social Security is not a Republican goal, it is not a Democrat goal; it is a vital goal to all our country. And people of both political parties need to get the job done now.

There are some basic principles that must guide our efforts to fix Social Security. We should not raise the payroll tax rate. That would hurt the economy and cost jobs. We must ensure that Social Security continues to provide dignity and peace of mind for Americans in retirement, and include extra protections for those with low incomes. We must reject temporary measures that put off Social Security problems for another day.

You need to be skeptical about any talk that talks about a 75-year fix. Back in 1983, Republicans and Democrats came together on what they thought was a 75-year fix. You know, I like the spirit of people of both parties coming together, and that was great. President Reagan and Speaker O'Neill said, "We've got a problem; let's come together to fix it." But they thought it was a 75-year fix; here we are, 22 years later. It's time to come up with a permanent solution. When people bring forth their ideas in Congress I will insist that we not have a band-aid approach to Social Security, that we have a permanent fix. And I'm optimistic about the chances for meaningful Social Security reform.


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You know, a few weeks ago the United States Senate voted on a resolution guaranteeing that any Social Security fix must be permanent. The vote has the agreement of the two senators from South Carolina, the two senators from Texas, the two senators from Massachusetts. Anytime that happens you've got yourself a bipartisan agreement. In fact, the vote in Congress was unanimous. Think about that. Every single United States senator is on the record supporting a permanent fix. Now those senators need to keep their word and make Social Security solvent once and for all.

Bringing permanent solvency to Social Security is an important start, but it's only part of our duty. Preserving Social Security should not mean preserving its problems. Today we have an opportunity to offer younger Americans a better deal than the current system. Today we can give every American the chance to tap into the power of compound interest, so they can get a higher rate of return on their money than the current system allows. You might notice I said, "their money." See, we're not spending the government's money. The payroll taxes are the people's money. It's coming from hardworking people.

We can build this opportunity into Social Security by giving younger workers the option to set aside some of their own money in a personal retirement account. The account would be a conservative mix of bonds and stocks that grows over time and can deliver a greater return than the Social Security system does. That would be a good deal for younger workers.

Since 1983, since that reform took place, stock investments have returned about 9 percent more than inflation per year, while the real return on Social Security is about 2 percent a year. That means that a dollar invested in the market in 1983 would be worth $11 today -- one dollar would grow to eleven -- while the same dollar would be worth about three if it had been put in Social Security. Every young American should have the opportunity to take advantage of the compounding rate of interest, to earn a better return on his or her own money.

Personal accounts would be completely voluntary; younger workers could choose to join or choose not to join. That seems to make sense for government to provide opportunities of choice for individual Americans. Workers opting to open an account would be able to put about a third of their payroll taxes in investments, instead of sending their money to Washington. For example, a younger worker earning an average of $35,000 a year over a career, because of the growth of money, would be able to retire with a nest egg of nearly a quarter-


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million dollars. That would be a nice addition to the other Social Security benefits.

These voluntary accounts would come with strict guidelines to make sure they're secure. You couldn't take -- put them in the lottery -- sorry to say, Speaker. You could make sure the earnings aren't eaten up by hidden Wall Street fees. We'll make sure there are good options to protect investments from sudden market swings on the eve of retirement. You won't be able to withdraw all your money and take it to the racetrack. These accounts will offer straightforward investment choices that are easy to understand.

By the way, this concept isn't new. After all, in South Carolina, all state employees can choose to put part of their retirement savings in a traditional retirement plan, or in a conservative mix of bonds and stocks that can deliver a better rate of return. So when I talk about personal accounts available for younger workers, you know what I'm talking about right here in South Carolina. You've already made that decision for people who are serving the State.

I don't know if you know this or not, but federal employees have that same opportunity to watch their money grow, through a program called the Thrift Savings Plan. It's a plan that allows members of the United States Congress and the United States Senate to set aside some of their own money, if they so choose to do so, in a conservative mix of bonds and stocks. It seems fair to me that if setting up a personal savings account is good enough for a member of the United States Congress, it is good enough for workers all across America.

By giving younger workers an option to set up a personal savings account, we have an opportunity to modernize and strengthen a great American program. We have a chance to bring the Social Security system into the 21st century.

The reason I say that is, today young people are comfortable investing in bonds and stocks. Millions of workers now choose to plan for retirement with their own savings accounts, through programs like 401(k)'s. I don't remember growing up hearing the word 401(k) -- I don't think you remember that. You're old enough to be around when they didn't have 401(k)'s or IRA's. We're not talking about a new culture, we're talking about a culture that's already taken hold in our society, where workers from all walks of life are watching their money grow and making decisions on behalf of their families with where they invest.

See, telling younger workers they have to save money in a 1930's retirement system is like telling them that they have to use a cell phone


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with a rotary dial. If young people are confident they can improve their retirement by investing in a conservative mix of bonds and stocks, the government should not stand in their way.

Creating these accounts will also give our children and grandchildren a chance to replace a burden of uncertainty with a new opportunity. Instead of leaving their full retirement in the hands of future politicians, younger workers will be able to take part of their retirement into their own hands. Instead of sending all the payroll taxes to Washington, younger workers would be able to transfer part of their money directly into an account they own and that the government can never take away. Instead of forfeiting years of Social Security contributions if they die before retirement, younger workers would have peace of mind that their personal accounts could be passed on to a loved one.

Young people are learning more about the opportunity to own part of their retirement, and they're making their opinion pretty clear. I met Philip Meador today. He's a graduating senior from The Citadel. He told me he's going to be starting a new job in June. He knows he's going to start paying Social Security taxes. What he's not sure about is whether or not he'll ever be seeing a Social Security check. He certainly will be paying in; he's not so sure what's going to be coming out. He likes the idea of keeping part of his money in an account that he controls. He said, "I like the options. You choose what to put in, you choose the investments. It depends on what you're looking for. I think every individual should be able to choose a plan that fits them."

A lot of young people are beginning to say that. A lot of young people want this United States government to come together. Young people want the government to give them the option of making choices with their own money.

And I know you all feel the same way in this Chamber. That's why you passed resolutions calling the United States Congress to strengthen this important program, Social Security, and to give younger workers the option of voluntary personal retirement accounts. You recognize that a Social Security system that includes personal accounts will give all Americans -- not just a few, but all Americans -- a stake in the greatest creator of wealth the world has ever known. You recognize that personal accounts will bring the security and independence of ownership to millions of our citizens. And you recognize that personal accounts are critical to building an ownership society, a more optimistic and more hopeful America, in which more people own their own homes, more people own their own businesses, more people have a


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ownership in a retirement account, more people have an asset base they call their own that they can pass on to whomever they choose.

You see, owning assets ought not to be confined to a few people in our society. Owning an asset and being able to pass it on to your son or daughter ought not to be the purview of a few. In this great land, it ought to be spread -- ownership ought to be spread to everybody who is lucky enough to be an American. You recognize that when people own something, they have a vital stake in the future of our country, and that personal accounts will help give every citizen the chance, the opportunity to realize the dreams of this land.

The Legislature of this great State of South Carolina has shown leadership on this important issue, and now the United States Congress needs to do the same. I understand that Social Security is a tough issue, but Congress has tackled tough issues before. We've seen in the past how leaders from both parties can rise above partisan politics to meet great responsibilities. And now is the time for them to do so again.

I am confident that members of Congress will come together to reach a permanent solution. And when they do, our children and grandchildren will one day look back and be grateful that our generation made the difficult choices and the necessary choices to renew the great promise of the Social Security system for the 21st century.

I want to thank you all for the invitation to come to your great State. I appreciate you giving me a chance to come and visit. It's an honor to talk about such an important topic with those who have been willing to serve. May God bless you in your efforts, and may God bless your families and may God continue to bless the United States of America.

The purposes of the Joint Assembly having been accomplished, the PRESIDENT declared it adjourned, whereupon the Senate returned to its Chamber and was called to order by the PRESIDENT.

RECESS

At 12:50 P.M., by prior motion of Senator McCONNELL, the Senate receded from business until 2:30 P.M.

AFTERNOON SESSION

The Senate reassembled at 2:30 P.M. and was called to order by the PRESIDENT.


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MESSAGE FROM THE GOVERNOR
State of South Carolina
Office of the Governor
P. O. Box 11369
Columbia, SC 29211
April 15, 2003

Dear Mr. President and Members of the Senate:

I am hereby returning without my approval S. 547 (Word version), R-39, an Act:
TO AMEND ACT 587 OF 1994, AS AMENDED, RELATING TO THE CREATION OF THE CHESTERFIELD COUNTY BOARD OF ELECTIONS AND REGISTRATION, SO AS TO PROVIDE FOR THE TERMS OF THE ADDITIONAL MEMBERS ADDED TO THE BOARD AND TO DELETE ARCHAIC LANGUAGE.

This veto is based on my belief that this bill is unconstitutional. S. 547, R-39 provides for the terms of new members of the Chesterfield County Board of Elections and Registration. As such, S. 547, R-39, affects only Chesterfield County and is, therefore, clearly an act for a specific county. Such acts are in violation of Article VIII, Section 7 of the Constitution of the State of South Carolina, which provides that "[n]o laws for a specific county shall be enacted." Acts similar to S. 547, R-39 have been struck down by the South Carolina Supreme Court as violative of Article VIII, Section 7.

For this reason, I am returning S. 547, R-39 to you without my signature.

Sincerely,
/s/ Mark Sanford

VETO OVERRIDDEN

(R39, S547 (Word version)) -- Senator Sheheen: AN ACT TO AMEND ACT 587 OF 1994, AS AMENDED, RELATING TO THE CREATION OF THE CHESTERFIELD COUNTY BOARD OF ELECTIONS AND REGISTRATION, SO AS TO PROVIDE FOR THE TERMS OF THE ADDITIONAL MEMBERS ADDED TO THE BOARD AND TO DELETE ARCHAIC LANGUAGE.

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

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


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

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

Ayes 46; Nays 0

AYES

Alexander                 Anderson                  Bryant
Campsen                   Cleary                    Courson
Cromer                    Drummond                  Elliott
Fair                      Ford                      Gregory
Grooms                    Hawkins                   Hayes
Hutto                     Jackson                   Knotts
Land                      Leatherman                Leventis
Lourie                    Malloy                    Martin
Matthews                  McConnell                 McGill
Mescher                   Moore                     O'Dell
Patterson                 Peeler                    Pinckney
Rankin                    Reese                     Richardson
Ritchie                   Ryberg                    Scott
Setzler                   Sheheen                   Short
Smith, J. Verne           Thomas                    Verdin
Williams

Total--46

NAYS

Total--0

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

REGULATION RECEIVED

The following was received and referred to the appropriate committee for consideration:

Document No. 2971
Agency: Board of Education
60(7)(c), 59-30-10, and 20 U.S.C. Section 6301


Printed Page 1967 . . . . . Monday, April 18, 2005

SUBJECT: Assessment Program
Received by Lieutenant Governor April 15, 2005
Referred to Education Committee
Legislative Review Expiration August 13, 2005
(Subject to Sine Die Revision)

Leave of Absence

At 3:15 P.M., Senator LEATHERMAN requested a leave of absence for the balance of the day today.

Leave of Absence

At 3:15 P.M., Senator LEATHERMAN requested a leave of absence for Tuesday, April 19, 2005.

S. 708--CO-SPONSORS ADDED

S. 708 (Word version) -- Senators McConnell, Leatherman, Land and Thomas: A BILL TO AMEND SECTION 8-13-770, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PROHIBITION ON MEMBERS OF THE GENERAL ASSEMBLY SERVING ON BOARDS AND COMMISSIONS, SO AS TO ADD THE COMMISSION ON INDIGENT DEFENSE TO THE LIST OF EXCEPTIONS; TO AMEND ARTICLE 3, CHAPTER 3, TITLE 17, RELATING TO THE COMMISSION ON INDIGENT DEFENSE, SO AS TO REVISE THE MEMBERSHIP OF THE COMMISSION, TO REVISE THE DUTIES OF THE COMMISSION, THE OFFICE OF INDIGENT DEFENSE, AND THE EXECUTIVE DIRECTOR OF THE OFFICE OF INDIGENT DEFENSE, TO CREATE THE DIVISION OF APPELLATE DEFENSE WITHIN THE OFFICE OF INDIGENT DEFENSE, TO TRANSFER ALL DUTIES, RIGHTS, AND OBLIGATIONS OF THE FORMER COMMISSION AND OFFICE OF APPELLATE DEFENSE TO THE DIVISION OF APPELLATE DEFENSE, TO PROVIDE SPECIFICALLY FOR THE DUTIES AND OPERATION OF THE DIVISION OF APPELLATE DEFENSE, AND TO REPEAL CHAPTER 4, TITLE 17 RELATING TO THE COMMISSION AND OFFICE OF APPELLATE DEFENSE.

On motion of Senator DRUMMOND, with unanimous consent, the name of Senator DRUMMOND was added as a co-sponsor of S. 708.

On motion of Senator ALEXANDER, with unanimous consent, the name of Senator ALEXANDER was added as a co-sponsor of S. 708.


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INTRODUCTION OF BILLS AND RESOLUTIONS

The following were introduced:

S. 763 (Word version) -- Senator Ritchie: A CONCURRENT RESOLUTION TO RECOGNIZE THE WONDERFUL MUSIC CAREER OF MARSHALL CHAPMAN, A NATIVE OF SPARTANBURG, TO WELCOME HER TO COLUMBIA AS PART OF THE THREE RIVERS MUSIC FESTIVAL, AND TO PROCLAIM FRIDAY, APRIL 22, 2005, AS "MARSHALL CHAPMAN DAY" THROUGHOUT SOUTH CAROLINA IN HER HONOR.
l:\council\bills\bbm\10810sd05.doc

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

S. 764 (Word version) -- Senator Short: A BILL TO ESTABLISH THE REGISTRATION AND ELECTIONS COMMISSION OF CHESTER COUNTY, TO ABOLISH THE ELECTION COMMISSION AND THE REGISTRATION BOARD FOR CHESTER COUNTY AND DEVOLVE THE POWERS AND DUTIES OF THE ELECTION COMMISSION AND THE REGISTRATION BOARD UPON THE REGISTRATION AND ELECTIONS COMMISSION, AND TO PROVIDE THAT THE CURRENT MEMBERS OF THE CHESTER COUNTY ELECTION COMMISSION AND THE CHESTER COUNTY REGISTRATION BOARD SHALL ACT AS THE GOVERNING COMMISSION OF THE NEW CHESTER COUNTY REGISTRATION AND ELECTIONS COMMISSION UNTIL THE MEMBERS OF THE NEW COMMISSION ARE APPOINTED, AT WHICH TIME THE TERMS OF THE MEMBERS OF THE ELECTION COMMISSION AND REGISTRATION BOARD SHALL EXPIRE.
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Read the first time and ordered placed on the Local and Uncontested Calendar.

S. 765 (Word version) -- Senator Gregory: A BILL TO REPEAL SECTION 47-3-310, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DISPOSAL OR REMOVAL OF FERAL DOGS FROM CERTAIN PROPERTY; SECTION 47-3-320, RELATING TO TRAINING OF CONSERVATION OFFICERS TO REMOVE DOGS; SECTION 47-3-510, RELATING TO THE AUTHORITY OF AN OWNER OF A HUNTING DOG TO REGISTER THE DOG WITH THE DEPARTMENT OF NATURAL RESOURCES; SECTION 50-1-


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20, RELATING TO DEFINITION OF HUNTERS AND HUNTING; SECTION 50-3-360, RELATING TO EMPLOYMENT OF DEPUTY OFFICERS IN GAME ZONE 2; SECTION 50-3-396, RELATING TO THE USE OF AN OFFICIAL SUMMONS FOR LITTERING VIOLATIONS; SECTION 50-5-2517, RELATING TO PROHIBITED ACTS IN CONNECTION WITH A DOLPHIN OR PORPOISE; SECTION 50-11-30, RELATING TO EXTENSION OF HUNTING SEASONS OPENING OR CLOSING ON SUNDAY; SECTION 50-11-1070, RELATING TO AUTHORITY TO KILL BOBCATS WITHOUT A LICENSE; SECTION 50-13-60, RELATING TO THE DEPARTMENT'S AUTHORITY TO DECLARE A CLOSED SEASON ON FISH IN STREAMS ON RECOMMENDATION OF COUNTY LEGISLATIVE DELEGATIONS; SECTION 50-13-70, RELATING TO NOTICE OF A SEASON CLOSED PURSUANT TO SECTION 50-13-60; SECTION 50-13-80, RELATING TO CONDUCT WHICH IS PRIMA FACIE EVIDENCE OF VIOLATING A SEASON CLOSED PURSUANT TO SECTION 50-13-60; SECTION 50-13-120, RELATING TO NO SIZE LIMIT ON FRESH-WATER GAME FISH OR COLD-WATER TROUT; SECTION 50-13-350, RELATING TO UNLAWFUL FISHING OR TRESPASSING IN PRIVATE ARTIFICIAL PONDS USED TO BREED FISH OR OYSTERS; SECTION 50-13-980, RELATING TO PRESUMPTIONS FROM POSSESSION OF FISH IN EXCESS OF LEGAL LIMITS; SECTION 50-13-1760, RELATING TO SALE OF WHITE PERCH AND INVOICES REQUIRED FOR IMPORTED FISH; SECTIONS 50-19-750, 50-19-760, 50-19-960, 50-19-1160, 50-19-1170, 50-19-1180, 50-19-1510, AND 50-19-2310, ALL RELATING TO SPECIAL HUNTING AND FISHING PROVISIONS; SECTION 50-21-60, RELATING TO CERTAIN PERSONNEL, EXPENSES, AND SALARIES OF THE DEPARTMENT OF NATURAL RESOURCES REQUIRED TO BE APPROVED BY THE BUDGET AND CONTROL BOARD; AND SECTION 58-1-65, RELATING TO PUBLIC WATER IMPROVEMENT.
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Read the first time and referred to the Committee on Fish, Game and Forestry.

S. 766 (Word version) -- Senator Verdin: A BILL TO AMEND SECTION 58-23-40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE TRANSPORTATION OF PERSONS OR PROPERTY FOR COMPENSATION ON ANY IMPROVED PUBLIC HIGHWAY OF


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THIS STATE, SO AS TO PROHIBIT ANY MOTOR VEHICLE CARRIER FROM ADVERTISING OR HOLDING HIMSELF OUT AS AN OPERATOR FOR THE TRANSPORTATION OF PERSONS OR PROPERTY WITHOUT FIRST HAVING OBTAINED A CERTIFICATE FROM THE OFFICE OF REGULATORY STAFF; TO AMEND SECTION 58-23-80, RELATING TO PENALTIES FOR VIOLATING THE PROVISIONS CONTAINED IN ARTICLES 1 THROUGH 12 OF CHAPTER 23 IN TITLE 58, SO AS TO PROVIDE THAT ANY PERSON VIOLATING THOSE PROVISIONS MAY BE IMPRISONED FOR A TERM NOT TO EXCEED THIRTY DAYS; AND TO AMEND SECTION 58-23-590, RELATING TO THE REGULATION OF HOUSEHOLD GOODS AND HAZARDOUS WASTE CARRIERS, SO AS TO PROVIDE THAT A CARRIER OPERATING IN VIOLATION OF THE PROVISIONS CONTAINED IN ARTICLES 1 THROUGH 12 OF CHAPTER 23 IN TITLE 58 MAY BE IMPRISONED FOR A TERM NOT TO EXCEED THIRTY DAYS.
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Read the first time and referred to the Committee on Transportation.

H. 3175 (Word version) -- Reps. Davenport, Vaughn and Littlejohn: A BILL TO AMEND TITLE 40, CHAPTER 25, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PRACTICE OF SPECIALIZING IN HEARING AIDS, SO AS TO CONFORM THIS CHAPTER TO THE STATUTORY, ORGANIZATIONAL, AND ADMINISTRATIVE FRAMEWORK ESTABLISHED FOR PROFESSIONAL AND OCCUPATIONAL BOARDS IN CHAPTER 1, TITLE 40, TO FURTHER PROVIDE FOR THE LICENSURE AND REGULATION OF HEARING AID SPECIALISTS, INCLUDING PROVIDING PENALTIES FOR VIOLATIONS, TO DEVOLVE THE POWERS, DUTIES, FUNCTIONS, AND RESPONSIBILITIES OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL REGARDING THE "PRACTICE OF SPECIALIZING IN HEARING AIDS ACT" PURSUANT TO CHAPTER 25, TITLE 40 UPON THE DEPARTMENT OF LABOR, LICENSING AND REGULATION, AND TO PROVIDE THAT THE COMMISSION FOR HEARING AID SPECIALISTS SHALL ACT AS A PROFESSIONAL AND OCCUPATIONAL LICENSING BOARD FOR HEARING AID SPECIALISTS WITHIN THE DEPARTMENT OF LABOR, LICENSING AND REGULATION.


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

H. 3175--Recalled and Committed

Senator VERDIN asked unanimous consent to make a motion to recall the Bill from the Committee on Medical Affairs.

There was no objection.

The Bill was recalled from the Committee on Medical Affairs.

Senator VERDIN asked unanimous consent to make a motion to commit the Bill to the Committee on Labor, Commerce and Industry.

There was no objection.

The Bill was committed to the Committee on Labor, Commerce and Industry.

H. 3213 (Word version) -- Reps. Davenport, Vaughn, Toole, Tripp, Vick, Simrill, Bingham, J. R. Smith, Rice, Talley, G. Brown, Barfield, Owens, M. A. Pitts, G. R. Smith, Hamilton, White, Clark, Walker, Pinson, Loftis, Leach, McGee, W. D. Smith, Viers, Cato, Perry, Delleney, Altman, Cooper, Haskins, Huggins, Littlejohn, Hiott, Mahaffey, Wilkins, Merrill, D. C. Smith, Herbkersman, Bailey, Ceips, J. Brown, G. M. Smith, Weeks, Coates, F. N. Smith, E. H. Pitts, Thompson, Young, Duncan, Hagood and Chellis: A BILL TO AMEND TITLE 1, CHAPTER 1, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ADMINISTRATION OF GOVERNMENT, BY ADDING ARTICLE 5, SO AS TO ENACT THE "RIGHT TO LIFE ACT OF SOUTH CAROLINA" WHICH ESTABLISHES THAT THE RIGHT TO DUE PROCESS AND THE RIGHT TO EQUAL PROTECTION VEST AT FERTILIZATION.

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

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


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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 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.

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

H. 3543 (Word version) -- Reps. G. M. Smith and Weeks: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ENACTING "MARY LYNN'S LAW"; BY ADDING SECTION 16-1-130 SO AS TO PROVIDE THAT A PERSON WITH A CURRENT CHARGE OR A PRIOR CONVICTION FOR A VIOLENT OFFENSE, A HARASSMENT OR STALKING OFFENSE, OR A BURGLARY OFFENSE OR A PERSON SUBJECT TO A RESTRAINING ORDER OR VALID ORDER OF PROTECTION MAY NOT BE CONSIDERED FOR A DIVERSION PROGRAM; TO AMEND SECTIONS 16-3-1525 AND 16-3-1530, RELATING TO VICTIM NOTIFICATION, SO AS TO PROVIDE THAT VICTIM NOTIFICATION MAY NOT BE BY ELECTRONIC OR OTHER AUTOMATED COMMUNICATION OR RECORDING AND TO PROVIDE A PROCEDURE FOR NOTIFICATION; TO AMEND ARTICLE 17, CHAPTER 3, TITLE 16, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO STALKING AND HARASSMENT, SO AS TO REDEFINE STALKING AND HARASSMENT; TO REVISE THE PENALTIES FOR STALKING AND HARASSMENT; TO REQUIRE THAT WHEN A RESTRAINING ORDER IS ISSUED AS A CONDITION OF BOND


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FOR HARASSMENT OR STALKING, A COPY OF THE RESTRAINING ORDER MUST BE SENT BY THE COURT TO THE VICTIM; TO PROVIDE THAT A TEMPORARY RESTRAINING ORDER GRANTED WITHOUT NOTICE MUST BE ENTERED OF RECORD WITH THE MAGISTRATES COURT; TO PROVIDE THAT THE DURATION OF A TEMPORARY RESTRAINING ORDER IS EXTENDED FROM SIX MONTHS TO ONE YEAR; TO ALLOW LAW ENFORCEMENT OR ANOTHER PERSON TO SIGN A WARRANT FOR A PERSON ENGAGED IN HARASSMENT OR STALKING IN PLACE OF THE VICTIM; TO ALLOW SERVICE OF A RESTRAINING ORDER TO BE MADE BY MAIL RETURN RECEIPT TO THE DEFENDANT'S LAST KNOWN ADDRESS; TO REQUIRE THAT A MENTAL EVALUATION MUST BE MADE BEFORE BAIL IS SET ON A STALKING OR HARASSMENT CHARGE; AND TO REQUIRE THAT THE EVALUATION BE SCHEDULED WITHIN TEN DAYS OF THE ORDER'S ISSUANCE, THAT THE REPORT BE ISSUED WITHIN FORTY-EIGHT HOURS OF EVALUATION, AND THAT THE SOLICITOR ARRANGE FOR A BOND HEARING UPON RECEIPT OF THE REPORT BEFORE A CIRCUIT COURT JUDGE; TO AMEND SECTION 24-3-20, AS AMENDED, RELATING TO PRISONERS WHO ARE ELIGIBLE TO PARTICIPATE IN WORK RELEASE, SO AS TO PROHIBIT THOSE OFFENDERS CONVICTED OF A VIOLENT OFFENSE, A HARASSMENT OR STALKING OFFENSE, OR A BURGLARY OFFENSE; TO AMEND SECTION 56-1-90, AS AMENDED, RELATING TO REQUIRED INFORMATION NECESSARY TO OBTAIN A DRIVER'S LICENSE AND SECTION 56-1-230, RELATING TO NOTIFICATION OF CHANGE OF ADDRESS, BOTH SO AS TO REQUIRE PROOF OF ADDRESS AND TO PROVIDE EXAMPLES OF SUFFICIENT PROOF.

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

H. 3735 (Word version) -- Reps. Vaughn, Cato, Haskins, Hamilton, Leach, Loftis, Cotty, Pinson, Altman, Haley, Rhoad, Barfield, Branham, Cooper, Duncan, Emory, Frye, Hinson, Hosey, Limehouse, Littlejohn, Martin, Merrill, Perry, Tripp, Umphlett and Witherspoon: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 56-3-1335 SO AS TO PROVIDE THAT THE DEPARTMENT OF MOTOR VEHICLES SHALL SUSPEND A VEHICLE'S REGISTRATION AND NOT REGISTER OR


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REREGISTER A MOTOR VEHICLE THAT WAS OPERATED WHEN ITS DRIVER FAILED TO PAY A TOLL AND WHOSE OWNER HAS AN OUTSTANDING JUDGMENT FOR FAILURE TO PAY A TOLL ENTERED AGAINST HIM, TO PROVIDE A FIFTY DOLLAR REINSTATEMENT FEE THAT MUST BE USED TO DEFRAY THE COSTS ASSOCIATED WITH THIS SECTION; TO AMEND SECTION 57-5-1495, AS AMENDED, RELATING TO THE COLLECTION OF TOLLS, SO AS TO PROVIDE THAT UPON AN ADJUDICATION OF LIABILITY FOR FAILURE TO PAY A TOLL, THE COURT MUST MAIL A COPY OF THE JUDGMENT TO THE VEHICLE'S OWNER OR OPERATOR, TO PROVIDE THAT IF THE JUDGMENT IS NOT SATISFIED WITHIN A CERTAIN PERIOD OF TIME, THE COURT SHALL NOTIFY THE DEPARTMENT OF MOTOR VEHICLES OF THIS INCIDENT WHICH SHALL SUSPEND THE REGISTRATION OF THE VEHICLE THAT WAS OPERATED WHEN THE TOLL WAS NOT PAID AND DENY THE VEHICLE'S REGISTRATION OR REREGISTRATION UNTIL THE JUDGMENT IS SATISFIED, TO DELETE THE PROVISION THAT REFERS TO THE CITATION AS A TRAFFIC CITATION, AND TO PROVIDE THAT A "FAILURE TO PAY A TOLL" CITATION CONSTITUTES THE SUMMONS AND COMPLAINT FOR AN ACTION TO RECOVER THE TOLL AND ALL APPLICABLE FEES ALLOWED PURSUANT TO THIS SECTION.

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

H. 3847 (Word version) -- Rep. Harrell: A BILL TO AMEND SECTION 11-11-310, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE GENERAL RESERVE FUND, SO AS TO PROVIDE THAT THE GENERAL RESERVE FUND SHALL CONSIST NOT ONLY OF THREE PERCENT OF THE GENERAL FUND REVENUE OF THE LATEST COMPLETED FISCAL YEAR BUT ALSO THE FIRST TEN PERCENT OF ANY SURPLUS GENERAL FUND REVENUES ACCRUING FOR ANY FISCAL YEAR; TO AMEND SECTION 11-11-320, RELATING TO THE CAPITAL RESERVE FUND, SO AS TO REVISE WHEN APPROPRIATIONS FROM THE CAPITAL RESERVE FUND TAKE EFFECT; BY ADDING SECTION 11-11-335 SO AS TO PROVIDE THAT BEGINNING JULY 1, 2005, SURPLUS GENERAL FUND REVENUES FOR ANY FISCAL YEAR NOT OTHERWISE OBLIGATED AND APPROPRIATIONS TO THE CAPITAL


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RESERVE FUND ARE DEEMED TO HAVE OCCURRED AND ARE AVAILABLE FOR EXPENDITURE AFTER SEPTEMBER FIRST OF THE NEXT FISCAL YEAR AND AFTER THE STATE'S FINANCIAL BOOKS FOR THE PREVIOUS FISCAL YEAR HAVE BEEN CLOSED; BY ADDING SECTION 11-11-345 SO AS TO PROVIDE THAT BEGINNING JULY 1, 2006, IF THE COMPTROLLER GENERAL DETERMINES UPON THE CLOSING OF THE STATE'S FINANCIAL BOOKS FOR A FISCAL YEAR THAT THE STATE HAS A NEGATIVE GENERALLY ACCEPTED ACCOUNTING PRINCIPLES FUND BALANCE (GAAP FUND DEFICIT), ANY APPROPRIATIONS CONTAINED IN A GENERAL OR SUPPLEMENTAL APPROPRIATIONS ACT WHICH EXPENDS SURPLUS GENERAL FUND REVENUES OR IN A CAPITAL RESERVE FUND APPROPRIATIONS ACT TO BE EFFECTIVE DURING THE NEXT FISCAL YEAR ARE SUSPENDED AND MUST BE USED TO THE EXTENT NECESSARY TO OFFSET THE GAAP FUND DEFICIT IN THE MANNER THE GENERAL ASSEMBLY SHALL PROVIDE; AND BY ADDING SECTION 11-11-350 SO AS TO PROVIDE THAT EACH STATE AGENCY, DEPARTMENT, INSTITUTION, OR ENTITY RECEIVING IN THE AGGREGATE THREE PERCENT OR MORE OF THE STATE'S GENERAL FUND APPROPRIATIONS FOR ANY FISCAL YEAR SHALL PROVIDE TO THE OFFICE OF STATE BUDGET AN ESTIMATE OF ITS PLANNED GENERAL FUND EXPENDITURES FOR THE NEXT THREE FISCAL YEARS, AND TO PROVIDE THAT THIS DATA, IN CONJUNCTION WITH THE BOARD OF ECONOMIC ADVISORS' LONG-TERM REVENUE ESTIMATE, SHALL BE COMPILED BY THE OFFICE OF STATE BUDGET INTO A THREE-YEAR FINANCIAL PLAN THAT WILL ASSIST THE STATE IN DETERMINING AND PLANNING FOR ITS LONG-TERM FINANCIAL COMMITMENTS.

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

H. 3935 (Word version) -- Reps. Rutherford, Agnew, Allen, Altman, Anderson, Anthony, Bailey, Bales, Ballentine, Barfield, Battle, Bingham, Bowers, Brady, Branham, Breeland, G. Brown, J. Brown, R. Brown, Cato, Ceips, Chalk, Chellis, Clark, Clemmons, Clyburn, Coates, Cobb-Hunter, Coleman, Cooper, Cotty, Dantzler, Davenport, Delleney, Duncan, Edge, Emory, Frye, Funderburk, Govan, Hagood, Haley, Hamilton, Hardwick, Harrell, Harrison, Harvin, Haskins, Hayes,


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Herbkersman, J. Hines, M. Hines, Hinson, Hiott, Hosey, Howard, Huggins, Jefferson, Jennings, Kennedy, Kirsh, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lucas, Mack, Mahaffey, Martin, McCraw, McGee, McLeod, Merrill, Miller, Moody-Lawrence, J. H. Neal, J. M. Neal, Neilson, Norman, Ott, Owens, Parks, Perry, Phillips, Pinson, E. H. Pitts, M. A. Pitts, Rhoad, Rice, Rivers, Sandifer, Scarborough, Scott, Simrill, Sinclair, Skelton, D. C. Smith, F. N. Smith, G. M. Smith, G. R. Smith, J. E. Smith, J. R. Smith, W. D. Smith, Stewart, Talley, Taylor, Thompson, Toole, Townsend, Tripp, Umphlett, Vaughn, Vick, Viers, Walker, Weeks, Whipper, White, Whitmire, Wilkins, Witherspoon and Young: A CONCURRENT RESOLUTION TO DECLARE WEDNESDAY, APRIL 20, 2005, AS "LINKS DAY AT THE CAPITOL", TO RECOGNIZE THE SOUTH CAROLINA CHAPTER OF THE SOUTHERN AREA OF THE LINKS, INC., AND TO COMMEND THEM ON THEIR EFFORTS AND ADVOCACY IN SEEKING TO ELIMINATE HEALTH DISPARITIES IN THIS STATE.

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

H. 3942 (Word version) -- Reps. Delleney, W. D. Smith and F. N. Smith: A CONCURRENT RESOLUTION TO FIX 12:00 NOON ON WEDNESDAY, MAY 25, 2005, AS THE TIME TO ELECT A SUCCESSOR TO A CERTAIN JUDGE OF THE CIRCUIT COURT, AT-LARGE SEAT 12, WHOSE TERM EXPIRES JUNE 30, 2008; AND TO ELECT A SUCCESSOR TO A CERTAIN JUDGE OF THE FAMILY COURT FOR THE SIXTH JUDICIAL CIRCUIT, SEAT 1, WHOSE TERM EXPIRES JUNE 30, 2007.

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

REPORTS OF STANDING COMMITTEES

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

S. 57 (Word version) -- Senators Sheheen, Elliott and Ford: A BILL TO AMEND SECTION 56-3-1910, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ISSUANCE OF SPECIAL LICENSE TAGS TO CERTAIN HANDICAPPED PERSONS, SO AS TO DELETE THE TERM "LICENSE TAG" AND REPLACE IT WITH THE TERM "LICENSE PLATE", AND TO REVISE THE CRITERIA FOR THE ISSUANCE OF THE LICENSE PLATE; TO


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AMEND SECTION 56-3-1950, AS AMENDED, RELATING TO THE DEFINITION OF THE TERM "HANDICAPPED", AND THE REQUIREMENT THAT A LICENSED PHYSICIAN SHALL CERTIFY THAT A PERSON'S TOTAL AND PERMANENT DISABILITY SUBSTANTIALLY IMPAIRS HIS ABILITY TO WALK, SO AS TO REVISE THE DEFINITION OF THE TERM "HANDICAPPED" AND TO DELETE THE PROVISION RELATING TO THE CERTIFICATION OF A PERSON WHO IS TOTALLY AND PERMANENTLY DISABLED; TO AMEND SECTION 56-3-1960, AS AMENDED, RELATING TO FREE PARKING FOR HANDICAPPED PERSONS, AND THE ISSUANCE AND DISPLAY OF HANDICAPPED LICENSE PLATES AND PLACARDS, SO AS TO DELETE THE PROVISION THAT PROVIDES FOR THE ISSUANCE OF HANDICAPPED LICENSE PLATES, AND TO REVISE THE PROVISIONS REGARDING THE CONTENT, ISSUANCE PROCEDURE, AND DISPLAY OF HANDICAPPED PLACARDS; TO AMEND SECTION 56-3-1965, RELATING TO MUNICIPALITIES DESIGNATING PARKING SPACES FOR HANDICAPPED PERSONS, SO AS TO REVISE THE PROCEDURES THAT ALLOW A HANDICAPPED PERSON TO PARK IN METERED OR TIMED PARKING PLACES WITHOUT BEING SUBJECT TO PARKING FEES OR FINES; AND TO AMEND SECTION 56-3-1971, AS AMENDED, RELATING TO THE ISSUANCE OF A UNIFORM PARKING VIOLATION TICKET, SO AS TO ALLOW CERTAIN VOLUNTEERS TRAINED BY A LAW ENFORCEMENT AGENCY TO ISSUE THESE TICKETS.

Ordered for consideration tomorrow.

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

S. 296 (Word version) -- Senators Martin, Mescher, O'Dell, Richardson and Cromer: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 56-1-146 SO AS TO PROVIDE THAT A PERSON WHO IS CONVICTED OF A VIOLENT CRIME MUST SURRENDER HIS DRIVER'S LICENSE OR SPECIAL IDENTIFICATION CARD TO THE COURT WHICH MUST TRANSMIT IT TO THE DEPARTMENT OF MOTOR VEHICLES TOGETHER WITH NOTICE OF THE CRIME, TO PROVIDE THAT THE DRIVER'S LICENSE OR SPECIAL IDENTIFICATION CARD IS CONSIDERED REVOKED AND


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MUST NOT BE RETURNED TO THE PERSON UNDER CERTAIN CIRCUMSTANCES; BY ADDING 56-1-148 SO AS TO PROVIDE THAT A PERSON CONVICTED OF A VIOLENT CRIME MUST HAVE A SPECIAL CODE AFFIXED TO HIS DRIVER'S LICENSE OR SPECIAL IDENTIFICATION CARD THAT IDENTIFIES THE PERSON AS HAVING BEEN CONVICTED OF A VIOLENT CRIME, TO PROVIDE A FEE TO BE CHARGED FOR AFFIXING THE CODE AND FOR ITS DISTRIBUTION, TO PROVIDE THE INTENT FOR AFFIXING THE CODE, AND TO PROVIDE A PROCESS FOR THE REMOVAL OF THE CODE; TO AMEND SECTION 56-1-80, AS AMENDED, RELATING TO THE CONTENTS OF A DRIVER'S LICENSE APPLICATION, SO AS TO PROVIDE THAT THE APPLICATION MUST CONTAIN A STATEMENT TO DETERMINE WHETHER THE APPLICANT HAS BEEN CONVICTED OF A VIOLENT CRIME AND, IF SO, THE CRIME, AND MUST CONTAIN A LIST OF ALL VIOLENT CRIMES; AND TO AMEND SECTION 56-1-3350, AS AMENDED, RELATING TO THE ISSUANCE OF A SPECIAL IDENTIFICATION CARD BY THE DEPARTMENT OF MOTOR VEHICLES, SO AS TO PROVIDE THAT THE APPLICATION FOR A SPECIAL IDENTIFICATION CARD MUST CONTAIN A STATEMENT TO DETERMINE WHETHER THE APPLICANT HAS BEEN CONVICTED OF A VIOLENT CRIME AND, IF SO, THE CRIME, AND MUST CONTAIN A LIST OF ALL VIOLENT CRIMES.

Ordered for consideration tomorrow.

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

S. 597 (Word version) -- Senator Ryberg: A BILL TO AMEND SECTION 56-19-480, AS AMENDED, RELATING TO THE TRANSFER AND SURRENDER OF MOTOR VEHICLE CERTIFICATES OF TITLE, LICENSE PLATES, REGISTRATION CARDS, AND MANUFACTURERS' SERIAL PLATES OF VEHICLES SOLD AS SALVAGE, ABANDONED, SCRAPPED, OR DESTROYED, SO AS TO MAKE A TECHNICAL CHANGE, TO DELETE THE TERM "SALVAGED" AND REPLACE IT WITH THE TERM "TOTAL LOSS CLAIM", TO PROVIDE THAT THE PERCENTAGE OF THE TOTAL LOSS CLAIM MUST BE RECORDED ON THE TITLE NEXT TO THE BRAND OF "TOTAL LOSS CLAIM", AND TO DELETE THE PROVISION THAT A "VEHICLE DECLARED TO


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BE A TOTAL LOSS" IS SYNONYMOUS TO A "WRECKED VEHICLE" AND A "SALVAGE VEHICLE".

Ordered for consideration tomorrow.

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

S. 607 (Word version) -- Senators Lourie, J. Verne Smith, Anderson, Hayes, Land, Malloy, Ford, Elliott, Richardson, Matthews, Patterson, Grooms, McConnell, Short, Williams, Cleary, Leventis, Martin, Hutto, Scott, Thomas and Jackson: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 7 TO TITLE 37 SO AS TO PROVIDE FOR THE LICENSING AND REGULATION OF CONSUMER CREDIT COUNSELING IN THIS STATE BY THE DEPARTMENT OF CONSUMER AFFAIRS INCLUDING DEFINITIONS, LICENSING REQUIREMENTS, A WRITTEN CONTRACT, A THOROUGH BUDGET ANALYSIS, A TRUST ACCOUNT WITH AT LEAST QUARTERLY ACCOUNTINGS TO THE CONSUMER, A SURETY BOND, A LIMITATION ON FEES, REPORTS TO THE DEPARTMENT, A LIST OF PROHIBITED ACTIVITIES, CIVIL AND CRIMINAL PENALTIES FOR A VIOLATION, AND MAKING A VIOLATION AN UNFAIR TRADE PRACTICE SUBJECT TO THE UNFAIR TRADE PRACTICES ACT.

Ordered for consideration tomorrow.

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

S. 613 (Word version) -- Senators Fair and Hutto: A BILL TO AMEND SECTION 56-3-8000, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO NONPROFIT ORGANIZATIONS SPECIAL LICENSE PLATES, SO AS TO PROVIDE THAT A PORTION OF THE FEES FOR THESE SPECIAL LICENSE PLATES MUST BE DISTRIBUTED TO THE ORGANIZATION THAT SPONSORS THE SPECIAL LICENSE PLATE, AND TO REVISE THE NUMBER OF PREPAID APPLICATIONS FOR A SPECIAL LICENSE PLATE AND THE DEPOSIT THAT MUST BE RECEIVED BY THE DEPARTMENT OF MOTOR VEHICLES FROM A NONPROFIT ORGANIZATION BEFORE A SPECIAL LICENSE PLATE MAY BE PRODUCED.

Ordered for consideration tomorrow.


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

S. 687 (Word version) -- Senator Rankin: A BILL TO AMEND SECTION 56-3-130, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE EXEMPTION OF CERTAIN BOAT TRAILERS, FARM TRAILERS, AND UTILITY TRAILERS FROM BEING LICENSED OR REGISTERED, SO AS TO PROVIDE THAT CERTAIN TRAILERS THAT ARE USED IN CONNECTION WITH A BUSINESS VENTURE OF ITS OWNER ARE EXEMPT FROM BEING LICENSED OR REGISTERED; AND TO AMEND SECTION 56-5-4580, AS AMENDED, RELATING TO LIGHTING EQUIPMENT THAT MUST BE ATTACHED TO BUSES, TRUCKS, TRAILERS, SEMITRAILERS, AND POLE TRAILERS, SO AS TO REQUIRE ALL TRAILERS, SEMITRAILERS, AND POLE TRAILERS WEIGHING THREE THOUSAND POUNDS GROSS OR LESS TO BE EQUIPPED WITH ONE STOP LIGHT.

Ordered for consideration tomorrow.

Senator MESCHER from the General Committee submitted a favorable with amendment report on:

H. 3257 (Word version) -- Rep. Kirsh: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 25-15-50 SO AS TO PROVIDE THAT A PERSON RETIRED OR DISCHARGED FROM THE ARMED SERVICES OF THE UNITED STATES WHO HAS FILED HIS RELEASE OR DISCHARGE CERTIFICATE NOW KNOWN AS DD FORM 214 WITH THE CLERK OF COURT OF ANY COUNTY OF THIS STATE FOR SAFEKEEPING OR OTHER PURPOSES MAY INVALIDATE THIS FILING AND REMOVE IT FROM THE PUBLIC RECORDS PURSUANT TO SPECIFIED PROCEDURES.

Ordered for consideration tomorrow.

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

THIRD READING BILLS

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

S. 75 (Word version) -- Senators Knotts, Hutto, O'Dell, Alexander and Cromer: A BILL TO AMEND SECTION 42-11-30, CODE OF LAWS OF


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SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA WORKERS' COMPENSATION LAW, OCCUPATIONAL DISEASES, AND THE PRESUMPTION THAT HEART OR RESPIRATORY DISEASES OCCURRING IN FIREFIGHTERS AROSE OUT OF AND IN THE COURSE OF THEIR EMPLOYMENT, SO AS TO PROVIDE THAT A CARDIAC-RELATED INCIDENT RESULTING IN IMPAIRMENT OR INJURY TO A LAW ENFORCEMENT OFFICER RESULTING IN TOTAL OR PARTIAL DISABILITY, OR DEATH, IS PRESUMED TO HAVE ARISEN OUT OF AND IN THE COURSE OF EMPLOYMENT UNDER CERTAIN CONDITIONS.

S. 75--Co-Sponsor Added

On motion of Senator FORD, the name of Senator FORD was added as a co-sponsor of S. 75.

S. 108 (Word version) -- Senator Fair: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 15-75-45 SO AS TO CREATE A CAUSE OF ACTION FOR UNCOMPENSATED RECEIPT OF HEALTH CARE SERVICES WHEN A PERSON SECURES PERFORMANCE OF SUCH SERVICES, HAS RECEIVED INSURANCE PROCEEDS OR THIRD PARTY PAYMENT TO PAY FOR SUCH SERVICES, AND AFTER RECEIVING PROPER NOTICE HAS NOT REMITTED THE PAYMENT TO THE HEALTH CARE PROVIDER; TO ESTABLISH NOTICE REQUIREMENTS, A SCHEDULE OF DAMAGES, INCLUDING ACTUAL DAMAGES AND LIQUIDATED DAMAGES AS A PERCENTAGE OF THE ACTUAL DAMAGES, AND DEFENSES TO THIS CAUSE OF ACTION.

Senator RITCHIE explained the Bill.

S. 236 (Word version) -- Senator Ryberg: A BILL TO AMEND SECTION 56-1-510, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE UNLAWFUL USE OF A DRIVER'S LICENSE OR IDENTIFICATION CARD AND SUBMITTING A FRAUDULENT APPLICATION FOR A DRIVER'S LICENSE OR IDENTIFICATION CARD, SO AS TO PROVIDE THAT IT IS UNLAWFUL TO DISPLAY OR POSSESS A COUNTERFEIT DRIVER'S LICENSE OR IDENTIFICATION CARD; AND TO AMEND SECTION 56-1-515, RELATING TO THE UNLAWFUL ALTERATION, SALE, ISSUANCE, OR USE OF A


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DRIVER'S LICENSE OR IDENTIFICATION CARD, SO AS TO PROVIDE THAT IT IS UNLAWFUL FOR A PERSON TO PRODUCE OR POSSESS A COUNTERFEIT DRIVER'S LICENSE OR IDENTIFICATION CARD.

S. 276 (Word version) -- Senators Hayes and Campsen: A BILL TO AMEND SECTION 7-13-770, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO AN UNAUTHORIZED PERSON NOT ALLOWED WITHIN THE GUARD RAIL OF A VOTING BOOTH, SO AS TO AUTHORIZE A DEPENDENT CHILD OF A QUALIFIED ELECTOR TO ACCOMPANY THE QUALIFIED ELECTOR IN THE VOTING BOOTH WHILE HE IS CASTING HIS BALLOT.

S. 384 (Word version) -- Senators Lourie, Thomas, Reese, Bryant, Knotts, Sheheen, Hutto, McGill, Jackson, Ford, Scott, Malloy, Land, Gregory, Drummond, Pinckney, Cromer, Short, Matthews, Campsen, Anderson and Hawkins: A BILL TO AMEND SECTION 16-17-500, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SUPPLYING MINORS WITH TOBACCO OR CIGARETTES, SO AS TO PROVIDE THAT THIS PROVISION APPLIES TO THE SALE, FURNISHING, GIVING, DISTRIBUTION, AND PROVISION TO A MINOR OF CIGARETTES, TOBACCO, CIGARETTE PAPER, OR A TOBACCO PRODUCT; TO PROVIDE THAT CERTAIN INDIVIDUALS LESS THAN EIGHTEEN YEARS OF AGE MAY NOT PURCHASE, ACCEPT RECEIPT OF, POSSESS, ATTEMPT TO PURCHASE, ATTEMPT TO ACCEPT RECEIPT OF, OR ATTEMPT TO POSSESS A TOBACCO PRODUCT OR TO OFFER FRAUDULENT PROOF OF AGE FOR THE PURPOSE OF PURCHASING OR POSSESSING A TOBACCO PRODUCT; TO REVISE THE DISBURSEMENT OF FINES COLLECTED, SO AS TO DISTRIBUTE ONE-HALF OF THESE FINES TO THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL FOR ITS YOUTH SMOKING PREVENTION PLAN; TO AUTHORIZE COMMUNITY SERVICE IN LIEU OF FINING A MINOR; AND TO REVISE THE PENALTIES FOR VIOLATIONS OF THIS SECTION.


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Recorded Vote

Senator McCONNELL desired to be recorded as voting against the third reading of S. 384.

S. 557 (Word version) -- Senator Richardson: A BILL TO AMEND SECTION 42-1-500, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO WORKERS' COMPENSATION BENEFITS OF PRISONERS IN THE CUSTODY OF THE COUNTY PENAL SYSTEM, SO AS TO AUTHORIZE A MUNICIPALITY TO COVER PRISONERS WORKING FOR THE MUNICIPALITY.

Senator RITCHIE explained the Bill.

S. 707 (Word version) -- Senator Thomas: A BILL TO AMEND SECTION 37-6-502, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SELECTION OF MEMBERS OF THE COMMISSION ON CONSUMER AFFAIRS, SO AS TO PROVIDE FOR THE ELECTION OF THE COMMISSIONERS ELECTED BY THE GENERAL ASSEMBLY EVERY FOUR YEARS, BEGINNING FEBRUARY 1, 2006.

S. 749 (Word version) -- Judiciary Committee: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 17-23-175, SO AS TO PROVIDE THAT AN OUT-OF-COURT STATEMENT MADE BY A CHILD LESS THAN TWELVE YEARS OF AGE DESCRIBING CERTAIN OFFENSES THAT THE CHILD IS A VICTIM OF OR WITNESS TO IS ADMISSIBLE AS EVIDENCE UNDER CERTAIN CIRCUMSTANCES.

SECOND READING BILLS

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

S. 268 (Word version) -- Senators Peeler and Cleary: A BILL TO AMEND CHAPTER 37, TITLE 40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE LICENSURE AND REGULATION OF OPTOMETRISTS, SO AS TO CONFORM THIS CHAPTER TO THE STATUTORY AND ADMINISTRATIVE ORGANIZATIONAL FRAMEWORK ESTABLISHED FOR PROFESSIONAL AND OCCUPATIONAL BOARDS IN CHAPTER 1, TITLE 40, UNDER THE ADMINISTRATION OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION;


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AND TO FURTHER PROVIDE FOR THE LICENSURE AND REGULATION OF OPTOMETRISTS, AND AMONG OTHER THINGS, TO PROVIDE THAT A BACHELOR OF ARTS OR BACHELOR OF SCIENCE DEGREE IS REQUIRED FOR LICENSURE, TO ESTABLISH LICENSURE BY ENDORSEMENT, TO PROVIDE THAT BY SEPTEMBER 30, 2008, ALL LICENSED OPTOMETRISTS MUST BE LICENSED AS THERAPEUTICALLY-CERTIFIED OPTOMETRISTS, AND TO PROVIDE TRANSITION PROVISIONS.

S. 16 (Word version) -- Senators Moore, McConnell, Elliott, Hayes, Verdin, Alexander and Fair: A BILL TO AMEND SECTION 16-1-60, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO VIOLENT CRIMES, SO AS TO INCLUDE THE OFFENSE OF MANUFACTURING METHAMPHETAMINE AS A VIOLENT CRIME; TO AMEND SECTION 44-53-110, RELATING TO THE CONTROLLED SUBSTANCES ACT, SO AS TO AMEND THE DEFINITION OF "PARAPHERNALIA", ADD THE DEFINITIONS OF "COCAINE BASE" AND "METHAMPHETAMINE", AND DELETE THE DEFINITION OF "CRACK COCAINE, ICE, OR CRANK"; TO AMEND SECTION 44-53-365, RELATING TO THEFT OF CONTROLLED SUBSTANCES, SO AS TO INCLUDE THEFT OF PRECURSOR SUBSTANCES; AND TO AMEND SECTION 44-53-375, RELATING TO THE MANUFACTURE OF METHAMPHETAMINE, SO AS TO MAKE POSSESSION OF EQUIPMENT USED IN THE MANUFACTURE OF METHAMPHETAMINE PRIMA FACIE EVIDENCE OF THE INTENT TO MANUFACTURE, AND TO INCLUDE A PUNISHMENT SCHEDULE FOR POSSESSION OF EPHEDRINE, PSEUDOEPHEDRINE, AND PHENYLPROPANOLAMINE.

S. 16--Co-Sponsor Added

On motion of Senator KNOTTS, the name of Senator KNOTTS was added as a co-sponsor of S. 16.

S. 370 (Word version) -- Senator Hawkins: A BILL TO AMEND TITLE 7, CHAPTER 17 OF THE 1976 CODE, RELATING TO CERTIFICATES AND RECORDS OF RESULTS OF ELECTIONS BY ADDING SECTION 7-17-275, TO PROVIDE FOR AN AWARD FOR COSTS AND ATTORNEY FEES ASSOCIATED WITH AN ELECTION PROTEST; AND TO AMEND TITLE 7, CHAPTER 25


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RELATED TO OFFENSES AGAINST THE ELECTION LAWS BY ADDING SECTION 7-25-210 TO PROVIDE FOR QUALIFIED CIVIL IMMUNITY FOR POLL WORKERS.

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.

S. 610 (Word version) -- Senators Fair, Campsen, O'Dell, Scott, Bryant, Cleary, Rankin, Williams, Thomas, Hayes and Cromer: A BILL TO AMEND SECTION 23-6-440, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ISSUANCE OF CERTIFICATES THAT INDICATE THAT A PERSON HAS COMPLETED SUCCESSFULLY CERTAIN LAW ENFORCEMENT TRAINING, SO AS TO DELETE THE PROVISION THAT ALLOWS CANDIDATES FOR CERTIFICATION AS CLASS II-SCO (DEPARTMENT OF CORRECTIONS) IN ANY COUNTY WITH A PRISON SYSTEM THAT BORDERS ANOTHER STATE TO HOLD A DRIVER'S LICENSE ISSUED BY ANY JURISDICTION OF THE UNITED STATES, AND TO REPLACE IT WITH A PROVISION THAT ALLOWS CANDIDATES FOR CERTIFICATION AS STATE OR LOCAL CORRECTIONAL OFFICERS TO HOLD A DRIVER'S LICENSE ISSUED BY ANY JURISDICTION OF THE UNITED STATES.

S. 719 (Word version) -- Senator Fair: A JOINT RESOLUTION TO PROVIDE THAT THE DEPARTMENT OF CORRECTIONS MAY UTILIZE INMATE LABOR UNTIL JULY 1, 2007, DURING THE CONSTRUCTION OR RENOVATION, OR BOTH, OF A FOOD SERVICE FACILITY AT THE STEVENSON CORRECTIONAL INSTITUTION AND THE RELOCATION OF A HOUSING UNIT FROM THE FORMER GREENWOOD WORK RELEASE FACILITY TO THE STEVENSON CORRECTIONAL INSTITUTION.


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AMENDED, READ THE SECOND TIME

S. 347 (Word version) -- Senators Lourie, Jackson, Mescher, Ford, Knotts, Cleary, Scott, Short, Patterson, Land, Cromer, Elliott, Ryberg, Grooms and Gregory: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 7-25-210 SO AS TO MAKE IT A CRIME TO DEFACE, VANDALIZE, TAMPER WITH, OR REMOVE A POLITICAL CAMPAIGN SIGN, TO PROVIDE AN EXEMPTION, AND TO PROVIDE A PENALTY FOR VIOLATION.

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

Amendment No. 1

Senator McCONNELL proposed the following Amendment No. 1 (347R001.GFM), which was adopted:

Amend the bill, as and if amended, by striking SECTIONS 2 through 5 in their entirety.

Renumber sections to conform.

Amend title to conform.

Senator McCONNELL explained the amendment.

The amendment was adopted.

There being no further amendments, the Bill was read the second time, passed and ordered to a third reading.

COMMITTEE AMENDMENT ADOPTED
READ THE SECOND TIME

S. 637 (Word version) -- Senators Jackson, Malloy, J. Verne Smith, Matthews, Reese, Short, McGill, Leventis, Williams, Patterson and Pinckney: A BILL TO AMEND CHAPTER 68, TITLE 40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REGULATION OF STAFF LEASING SERVICES, SO AS TO CHANGE THE TERM "STAFF LEASING SERVICES" TO "PROFESSIONAL EMPLOYER ORGANIZATIONS" AND TO PROVIDE FOR THE LICENSURE AND REGULATION OF THESE ORGANIZATIONS THAT PROVIDE EMPLOYEES TO BUSINESSES GENERALLY ON A LONG TERM BASIS; AND AMONG OTHER THINGS, TO REQUIRE TWO YEARS OF INDUSTRY EXPERIENCE TO BE LICENSED AND TO PROVIDE A GRANDFATHER PROVISION FOR EXISTING LICENSEES PROVIDING THESE SERVICES; TO


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ESTABLISH CONTINUING EDUCATION REQUIREMENTS; TO AUTHORIZE THE DEPARTMENT OF CONSUMER AFFAIRS TO USE AN ASSURANCE ORGANIZATION TO CERTIFY THE QUALIFICATIONS OF A PROFESSIONAL EMPLOYER ORGANIZATION FOR LICENSURE; TO SPECIFY INSURANCE INFORMATION THAT AN ORGANIZATION MUST PROVIDE TO EMPLOYEES AND THE DEPARTMENT; AND TO FURTHER SPECIFY REQUIREMENTS WHEN PROVIDING EMPLOYEE INSURANCE.

The Senate proceeded to a consideration of the Bill, the question being the adoption of the amendment proposed by the Committee on Labor, Commerce and Industry.

The Committee on Labor, Commerce and Industry proposed the following amendment (S-637 AMENDMENT), which was adopted:

Amend the bill, as and if amended, page 2 by striking lines 29-32 and inserting:

/   (6)   'Insured health benefit plan', for the purposes of this chapter, means a plan offered by an insurer licensed by the Department of Insurance.                                   /

Amend further, page 7, by striking lines 8-15 and inserting:

/   (3)   The department shall appoint four licensees or controlling persons and one representative of the department to a panel for two-year terms to approve any courses questioned as to their qualifications as continuing professional education. The panel may conduct its meetings via conference call. The department shall develop a questionnaire to ascertain the interest and background of potential members of this panel.               /

Amend further, page 14, by striking lines 22-27 and inserting:

/     (B)   An applicant for a nonresident or restricted license shall file on a form approved by the department an appointment of a recognized and approved entity as its attorney to receive service of legal process issued against it in this State.     /

Amend further, on page 14 by striking lines 38-42 and on page 15 by striking lines 1-11 and inserting:

/   Section 40-68-110.   (A)   A licensee shall disclose to the department, each client company, and its assigned employees, information relating to any insurance or benefit plan provided for the benefit of its assigned employees. Benefit plan information must be provided to the assigned employees and the assigned employees shall sign a statement disclosing they have read and understand the benefit


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plan information prior to enrollment of assigned employees into the plan. The information must, at a minimum, include:

(1)   the type of coverage;

(2)   the identity of each insurer for each type of coverage;

(3)   the amount of benefits provided for each type of coverage and to whom or on whose behalf benefits are to be paid;

(4)   the policy limits on each insurance policy; and

(5)   whether the coverage is fully insured, partially insured, or fully self-funded.;

(6)   other information, such as full disclosure of deductibles or co-payments.         /

Amend further, page 15, by striking line 34 and inserting:

/   employer as provided below for in this subsection:       /   Amend further, page 17, by striking lines 27-40 and inserting:

/   (F)   A licensee may sponsor and maintain employee benefit plans for the benefits of assigned employees and client company both are deemed an employer and the sponsor of benefit plans for assigned workers. An employee health benefit plan sponsored by a licensee for the benefit of assigned employees must be an insured health benefit plan offered by an insurer licensed under Title 38. The employee health benefit plans provided by a licensed insurance provider, including the use of third party administrators, must comply with the applicable provisions of the insurance laws of this State and other federal law, including The Employment Retirement Income Security Act (ERISA), 29 USC Section 101 et seq. No licensee may maintain, sponsor, offer, endorse, or otherwise proffer self-insured, self-funded, or other plans for health benefits, that are not licensed with the Department of Insurance.

Amend further, on page 19 by striking lines 39-43, on page 20 by striking lines 1-42, on page 21 by striking lines 1-42 and on page 22 by striking lines 1-16 and inserting:

/   Section 40-68-155. When a complaint is filed against a licensee with the department regarding any insurance issue, the Department of Insurance shall investigate the complaint.                     /

Section 40-68-160.   (A)   For the purposes of this section, 'conviction' includes a plea of guilty or nolo contendere or a finding of guilt.

(B)   Disciplinary action may be taken against a licensee by the department The department may take disciplinary action against a licensee, or a person engaging in professional employer services without a license, on any of the following grounds:


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(1)   the conviction of a licensee or a controlling person of a licensee of bribery, fraud, or intentional or material misrepresentation in obtaining, attempting to obtain, or renewing a license;

(2)   the conviction of a licensee or a controlling person of a licensee of a crime that relates to the operation of a staff leasing service professional employer organization or the ability of the licensee or a controlling person of a licensee to operate a staff leasing service professional employer organization;

(3)   the conviction of a licensee or a controlling person of a licensee of a crime that relates to the classification, misclassification, or under-reporting of employees under the South Carolina Workers' Compensation Act;

(4)   the conviction of a licensee or a controlling person of a licensee of a crime that relates to the establishment or maintenance of a self-insurance program, whether health insurance, workers' compensation insurance, or other insurance;

(5)   the conviction of a licensee or a controlling person of a licensee of a crime that relates to fraud, deceit, or misconduct in the operation of a staff leasing service professional employer organization;

(6)   engaging in staff leasing professional employer services without a license;

(7)   transferring or attempting to transfer a license issued under pursuant to this chapter;

(8)   violating this chapter or any an order or regulation issued by the department under pursuant to this chapter;

(9)   failing to notify the department, in writing, of the civil judgment or felony conviction of a controlling person not later than the thirtieth day after the date on which that the judgment or conviction is entered;

(10)   failing to cooperate with an investigation, examination, or audit of the licensee's records conducted by the licensee's insurance company or its designee, as provided by the insurance contract or as authorized by law by the South Carolina Department of Insurance;

(11)   failing to notify the department and the South Carolina Department of Insurance not later than the thirtieth day after the effective date of a change in ownership, principal business address, or the address of accounts and records;

(12)   failing to correct a tax filing or payment deficiencies within a reasonable time as determined by the department;


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(13)   refusing, after reasonable notice, to meet reasonable health and safety requirements within the licensee's control and made known to the licensee by a federal or state agency;

(14)   failing to correct a delinquency in the payment of the licensee's insurance premiums within a reasonable time;

(15)   failing to correct a delinquency in the payment of an employee benefit plan premiums or contributions within a reasonable time; or

(16)   knowingly or without sufficient inquiry, maintain, sponsor, offer, endorse, or otherwise proffer self-insured, self-funded, or other employee benefit plans that are not licensed by the Department of Insurance;

(17)   knowingly making a material misrepresentation to an insurance company, to the department, or other governmental agency;

(18)   adverse final action by a state or federal regulatory agency for violations within the scope or control of the licensee;

(19)   failure to inform the department in writing within thirty days of an adverse final action by a state or federal regulatory agency; or

(20)   in case of a professional employer organization or group that has qualified for licensing pursuant to Section 40-68-55, the failure to notify the department within thirty days of any change in the status of its certification with the independent and qualified assurance organization.

(B)(C)   Upon finding that a licensee has violated one or more provisions of this section, the department may:

(1)   deny an application for a license;

(2)   revoke, restrict, suspend, or refuse to renew a license;

(3)   may impose an administrative penalty in an amount not less than one thousand dollars for each violation, but not more than fifty thousand dollars;

(4)   issue a reprimand; or

(5)   issue a cease and desist order; or

(6)   place the licensee on probation for the a period and subject to conditions and restrictions that the department specifies.

(C)(D)   On revocation, or suspension of a license, the licensee immediately shall return the revoked license to the department and may not.:

(1)   solicit any new clients; or

(2)   enter into or execute any additional contracts for professional employer services.


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(D)(E)   Disciplinary action, a denial of an application for a new or renewal license or, a revocation or suspension of a license, or a determination that a controlling person is unqualified may occur subject to the Administrative Procedures Act, with notice to, and an opportunity for a hearing by, the affected applicant, licensee, or controlling person. All contested hearings pursuant to this section are before the administrative law court.

(E)(F)   If a license is revoked or renewal is denied, the affected licensee may request a reinstatement hearing after a minimum of one year. The department may reinstate or renew the license only if the cause of the nonrenewal or revocation has been corrected.

(G)   A licensee who is found to be engaged in unlawful conduct may be assessed the reasonable costs necessary to the investigation, disciplinary proceedings, court proceedings, or other actions to enforce the provisions of this chapter.     /

Renumber sections to conform.

Amend title to conform.

Senator RYBERG explained the committee amendment.

The committee amendment was adopted.

There being no further amendments, the Bill was read the second time, passed and ordered to a third reading.

COMMITTED

S. 688 (Word version) -- Medical Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO STATE PRIMARY DRINKING WATER, DESIGNATED AS REGULATION DOCUMENT NUMBER 2897, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Senator PEELER asked unanimous consent to commit the Joint Resolution to the Committee on Medical Affairs.

There was no objection

The Joint Resolution was committed to the Committee on Medical Affairs.


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COMMITTEE AMENDMENT ADOPTED
OBJECTION

S. 523 (Word version) -- Senators Richardson, Thomas, Ryberg and O'Dell: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 41-1-130 SO AS TO PROVIDE THAT AN EMPLOYER WHO EMPLOYS AN ILLEGAL ALIEN FOR WORK IN THIS STATE IS SUBJECT TO AN ADMINISTRATIVE FINE AND LOSS OF LICENSING BY THE DEPARTMENT OF LABOR, LICENSING AND REGULATION.

The Senate proceeded to a consideration of the Bill, the question being the adoption of the amendment proposed by the Committee on Labor, Commerce and Industry.

The Committee on Labor, Commerce and Industry proposed the following amendment (S-523 AMENDMENT), which was adopted:

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

/   SECTION   1.   Chapter 1 of Title 41 of the 1976 Code is amended by adding:

"Section 41-1-130.   (A)   For purposes of this section:

(1)   'Department" means the Department of Labor, Licensing and Regulation.

(2) 'Employer' means a person, partnership, for profit or nonprofit corporation, the State and its political subdivisions, and their agents, that employ one or more employees.

(3)   'Employment' means service or labor performed for remuneration including day labor or other casual labor engaged in as a compensated activity.

(4)   'Illegal alien' means a person who is in the United States illegally or who lacks employment authorization in the United States, or both.

(B)   An employer who hires, recruits, or refers an illegal alien for employment in this State, or continues to employ an illegal alien for employment in this State, with actual or constructive knowledge that he is an illegal alien as defined in subsection (A)(4), is subject to an administrative fine of up to five thousand dollars for each incident and a license issued to that employer by the department pursuant to its jurisdiction may be revoked if it is shown that the employer has intentionally disregarded the provisions of this chapter or has shown a pattern of disregard for the provisions of this chapter by poor recordkeeping and deceptive recruitment practices.


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(C)   The penalties provided in this section are in addition to and cumulative of other remedies and penalties at law."

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

Renumber sections to conform.

Amend title to conform.

Senator RYBERG explained the committee amendment.

The committee amendment was adopted.

Senator LAND objected to further consideration of the Bill.

S. 523--Co-Sponsor Removed

On motion of Senator O'DELL, the name of Senator O'DELL was removed as a co-sponsor of S. 523.

COMMITTEE AMENDMENT ADOPTED
OBJECTION

H. 3347 (Word version) -- Reps. Scott, Cato, Tripp, J. Hines, Hosey, M. Hines, Vaughn, Bales, Battle, Branham, Breeland, R. Brown, Davenport, Hamilton, Haskins, Jennings, Leach, Loftis, Miller, Rhoad, Rivers and G.R. Smith: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 7-13-1655 SO AS TO PROVIDE THAT THE STATE ELECTION COMMISSION SHALL ADOPT ONE VOTING SYSTEM TO BE USED TO CONDUCT ELECTIONS IN THIS STATE AND DEFINE "VOTING SYSTEM"; TO AMEND SECTION 7-13-1320, RELATING TO THE PROCUREMENT AND USE OF VOTE RECORDERS, SO AS TO AUTHORIZE THE USE OF AN "OPTICAL SCAN VOTING SYSTEM" INSTEAD OF "VOTE RECORDERS" FOR USE IN ABSENTEE PRECINCTS; TO AMEND SECTIONS 7-13-1330 AND 7-13-1620, BOTH AS AMENDED, RELATING TO THE VOTING MACHINE APPROVAL PROCESS, SO AS TO CHANGE REFERENCES TO AN "OPTICAL SCAN VOTING SYSTEM" AND DELETE REFERENCES TO A SYSTEM BEING APPROVED BY AN INDEPENDENT TESTING AUTHORITY AND TO PROVIDE A PROCEDURE FOR REPORTING DECERTIFICATION BY A VENDER WHEN HE HAS COMMITTED ETHICAL OR TECHNICAL VIOLATIONS IN ANOTHER STATE; AND TO REPEAL SECTION 7-13-1310 RELATING TO THE USE OF VOTE RECORDERS, AND SECTION 7-13-1660 RELATING TO THE


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ACQUISITION AND USE OF APPROVED VOTING MACHINES BY A COUNTY OR MUNICIPALITY.

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

The Committee on Judiciary proposed the following amendment (JUD3347.002), which was adopted:

Amend the bill, as and if amended, page 2, by striking lines 19 through 33 and inserting therein the following:

/   (B)   The State Election Commission shall:

(1)   either approve and adopt one voting system to be used by authorities charged by law with conducting elections, or approve and adopt multiple voting systems if the commission, in its discretion, determines not to adopt one voting system;

(2)   support the authorities charged by law with conducting elections by providing basic level training for personnel in the operation of the voting system approved and adopted by the commission;

(3)   support all aspects of creating the ballots and the database of the voting system that is approved and adopted; and

(4)   comply with the provisions of Chapter 35 of Title 11 in procuring a voting system or systems, as defined in subsection (A)."/

Renumber sections to conform.

Amend title to conform.

Senator RITCHIE explained the committee amendment.

The committee amendment was adopted.

Senator KNOTTS objected to further consideration of the Bill.

CARRIED OVER

H. 3682 (Word version) -- Labor, Commerce and Industry Committee: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 41-35-125 SO AS TO ALLOW BENEFITS FOR INDIVIDUALS UNEMPLOYED AS A DIRECT RESULT OF DOMESTIC ABUSE, TO AMEND SECTION 41-31-125, RELATING TO THE ASSIGNMENT OF THE EMPLOYMENT BENEFIT RECORD OF AN EMPLOYMENT UNIT IN A BUSINESS ACQUISITION OR REORGANIZATION WITH CONTINUITY OF


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CONTROL FOR PURPOSES OF THE SOUTH CAROLINA EMPLOYMENT SECURITY LAW, SO AS TO REQUIRE A VIOLATION TO BE KNOWING RATHER THAN WILFUL AND TO DEFINE "KNOWINGLY" AND "KNOWING" AND TO REQUIRE THE SOUTH CAROLINA EMPLOYMENT SECURITY COMMISSION TO ESTABLISH PROCEDURES TO IDENTIFY THE TRANSFER OF A BUSINESS, TO AMEND SECTION 41-35-120, RELATING TO DISQUALIFICATION FOR BENEFITS OF AN INSURED WORKER UNDER THE EMPLOYMENT SECURITY LAW, SO AS TO PROVIDE THE WORKER IS INELIGIBLE FOR BENEFITS IF HE REFUSES TO TAKE A DRUG TEST OR TESTS POSITIVE DURING A DRUG TEST FOR CERTAIN SUBSTANCES, TO PROVIDE THE REQUIREMENTS FOR DRUG TESTING AND TO ALLOW INFORMATION RECEIVED BY AN EMPLOYER IN A DRUG-TESTING PROGRAM TO BE RECEIVED IN EVIDENCE IN A PROCEEDING DETERMINING ELIGIBILITY FOR UNEMPLOYMENT COMPENSATION, AND TO AMEND SECTION 41-35-130, RELATING TO UNEMPLOYMENT PAYMENTS NOT CHARGEABLE TO A FORMER EMPLOYER, SO AS TO PROVIDE THAT BENEFITS PAID IN CONNECTION WITH A DOMESTIC ABUSE-RELATED JOB LOSS MUST NOT BE CHARGED TO THE ACCOUNT OF A CONTRIBUTING EMPLOYER.

Senator RYBERG explained the Bill.

On motion of Senator HUTTO, the Bill was carried over.

COMMITTEE AMENDMENT ADOPTED
CARRIED OVER

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.

The Senate proceeded to a consideration of the Bill, the question being the adoption of the amendment proposed by the Committee on Labor, Commerce and Industry.

The Committee on Labor, Commerce and Industry proposed the following amendment (S-660), which was adopted:


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Amend the bill, as and if amended, page 1, by striking line 28 and inserting:

/   areas within the time prescribed by the National Council of Architectural Registration Boards (NCARB). Scores for the individual subject areas cannot be averaged.                         /

Renumber sections to conform.

Amend title to conform.

Senator MOORE explained the committee amendment.

The committee amendment was adopted.

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

THE CALL OF THE UNCONTESTED CALENDAR HAVING BEEN COMPLETED, THE SENATE PROCEEDED TO THE MOTION PERIOD.

MOTION ADOPTED

On motion of Senator MARTIN, the Senate agreed to dispense with the Motion Period.

HAVING DISPENSED WITH THE MOTION PERIOD, THE SENATE PROCEEDED TO A CONSIDERATION OF BILLS AND RESOLUTIONS RETURNED FROM THE HOUSE.

HOUSE AMENDMENTS AMENDED
RETURNED TO THE HOUSE WITH AMENDMENTS

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 OR ALCOHOL OR SUBSTANCE ABUSE, 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 SUCH TREATMENT THROUGH A MANAGED CARE ORGANIZATION, TO ESTABLISH TREATMENT CONDITIONS TO QUALIFY FOR


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COVERAGE, AND TO REQUIRE THE DEPARTMENT OF INSURANCE TO REPORT TO THE GENERAL ASSEMBLY ON THE FISCAL IMPACT.
The House returned the Bill with amendments.

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

Senators HAYES and MARTIN proposed the following amendment (NBD\11704AC05), which was adopted:

Amend the bill, as and if amended, Section 38-71-290, page 1, beginning on line 36 by deleting /, as qualified by SECTION 3 of this act,/.

Amend the bill, further, by deleting Section 38-71-290(F) on page 3, lines 14 through 28 and inserting:

/   (F)   The provisions of this section do not:

(1)   limit the provision of specialized medical services for individuals with mental health disorders;

(2)   supersede the provisions of federal law, federal or state Medicaid policy, or the terms and conditions imposed on a Medicaid waiver granted to the State for the provision of services to individuals with mental health disorders; or

(3)   require a health insurance plan to provide rates, terms, or conditions for access to treatment for mental illness that are identical to rates, terms, or conditions for access to treatment for a physical condition./

Renumber sections to conform.

Amend title to conform.

Senator HAYES explained the amendment.

The amendment was adopted.

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

NONCONCURRENCE

H. 3155 (Word version) -- Reps. Townsend, Wilkins, Walker, Littlejohn, Battle, Clark, Cobb-Hunter, Simrill, Sandifer, Haley, Brady, Hagood, Talley, G.R. Smith and Neilson: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 59


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TO TITLE 59 SO AS TO ENACT THE SOUTH CAROLINA EDUCATION AND ECONOMIC DEVELOPMENT ACT WHICH PROVIDES FOR THE DEVELOPMENT OF A CURRICULUM ORGANIZED AROUND A CAREER CLUSTER SYSTEM THAT MUST PROVIDE STUDENTS WITH BOTH STRONG ACADEMICS AND REAL-WORLD PROBLEM-SOLVING SKILLS; TO AMEND SECTION 59-17-135, RELATING TO CHARACTER EDUCATION, SO AS TO FURTHER PROVIDE FOR THE TRAITS WHICH MUST BE INCORPORATED INTO SCHOOL BOARD POLICIES ADDRESSING CHARACTER EDUCATION; TO AMEND SECTION 59-18-900, AS AMENDED, RELATING TO SCHOOL REPORT CARDS, SO AS TO EXPAND THE CONTENT OF THE REPORT CARD TO INCLUDE, DROPOUT REDUCTION DATA; AND TO REPEAL ACT 450 OF 1994 AND SECTION 59-52-95 RELATING TO THE SOUTH CAROLINA SCHOOL-TO-WORK TRANSITION ACT OF 1994.

The House returned the Bill with amendments.

On motion of Senator HAYES, the Senate nonconcurred in the House amendments and a message was sent to the House accordingly.

THE SENATE PROCEEDED TO THE SPECIAL ORDERS.

AMENDED, READ THE SECOND TIME
RETURNED TO THE STATUS OF SPECIAL ORDER

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 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


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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.

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

Amendment No. 2

Senators RANKIN, ELLIOTT, MARTIN, MESCHER and HUTTO proposed the following Amendment No. 2 (JUD0573.005), which was adopted:

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

/   SECTION   1.   Section 1-3-240(C) of the 1976 Code, as last amended by Act 175 of 2004, is amended to read:


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"(C)(1)     Persons appointed to the following offices of the State may be removed by the Governor for malfeasance, misfeasance, incompetency, absenteeism, conflicts of interest, misconduct, persistent neglect of duty in office, or incapacity:

(1)(a)   Workers' Compensation Commission;

(2)(b)   Commission of the Department of Revenue Reserved;

(3)(c)   Ethics Commission;

(4)(d)   Election Commission;

(5)(e)   Professional and Occupational Licensing Boards;

(6)(f)   Juvenile Parole Board;

(7)(g)   Probation, Parole and Pardon Board;

(8)(h)   Director of the Department of Public Safety;

(9)(i)   Board of the Department of Health and Environmental Control, excepting the chairman;

(10)(j)   Chief of State Law Enforcement Division. ;

(11)(k)   South Carolina Lottery Commission; and

(12)(l)   Executive Director of the Office of Regulatory Staff; and

(m)     Directors of the South Carolina Public Service Authority appointed pursuant to Section 58-31-20. A director of the South Carolina Public Service Authority also may be removed for his breach of any duty arising under Sections 58-31-55 or 58-31-56. The Governor must not request a director of the South Carolina Public Service Authority to resign unless cause for removal, as established by this subsection, exists. Removal of a director of the South Carolina Public Service Authority, except as is provided by this section or by Section 58-31-20(A), must be considered to be an irreparable injury for which no adequate remedy at law exists.

(2)   Upon the expiration of an officeholder's term, such the individual may continue to serve until a successor has been is appointed and qualifies."

SECTION   2.   Section 15-78-60 of the 1976 Code is amended by adding the following numbered item to read:

"(38)   conduct of a director appointed pursuant to Section 58-31-20 giving rise to a lawsuit under Section 58-31-57."

SECTION   3.   Section 15-78-70 of the 1976 Code is amended by adding the following lettered subsection at the end to read:

"(e)   Nothing in this chapter may be construed to give a director appointed pursuant to Section 58-31-20 immunity from suit and liability as set forth in Section 58-31-57. The State Budget and Control Board, Insurance Reserve Fund is prohibited from providing insurance coverage for this individual liability; however, nothing shall prevent the


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Public Service Authority or its directors from obtaining insurance coverage from any other source."

SECTION   4.   Section 58-3-530 of the 1976 Code, as added by Act 175 of 2004, is amended by adding the following numbered subsection at the end to read:

"(14)   to review candidates for appointment to the South Carolina Public Service Authority Board of Directors as submitted by the Governor to determine whether the candidates meet the qualifications set forth in Section 58-31-20."

SECTION   5.   Section 58-31-20 of the 1976 Code is amended to read:

"Section 58-31-20.   (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. Three 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. One director shall have experience with a large retail customer of the Public Service Authority receiving power from the high voltage transmission system and having a potential demand for electric service of at least 1,000 kilowatts per month. 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


Printed Page 2002 . . . . . Monday, April 18, 2005

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 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.

(B)   Candidates for appointment to the board must be screened by the State Regulation of Public Utilities Review Committee and, prior to confirmation by the Senate, must be found qualified by meeting the minimum requirements contained in subsection (C). The review committee must submit a written report to the Clerk of the Senate setting forth its findings as to the qualifications of each candidate. A candidate must not serve on the board, even in an interim capacity, until he is screened and found qualified by the State Regulation of Public Utilities Review Committee.

(C)   Each member must possess abilities and experience that are generally found among directors of energy utilities serving this State and that allow him to make valuable contributions to the conduct of the authority's business. These abilities include substantial business skills and experience, but are not limited to:

(1)   general knowledge of the history, purpose, and operations of the Public Service Authority and the responsibilities of being a director of the authority;

(2)   the ability to interpret legal and financial documents and information so as to further the activities and affairs of the Public Service Authority;

(3)   with the assistance of counsel, the ability to understand and apply federal and state laws, rules, and regulations, including, but not


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limited, to Chapter 4 of Title 30 of the 1976 Code, as they relate to the activities and affairs of the Public Service Authority; and

(4)   with the assistance of counsel, the ability to understand and apply judicial decisions as they relate to the activities and affairs of the Public Service Authority.

(D)   For the assistance of the board of directors of said the Public Service Authority, there is hereby established an advisory board to be known as the advisory board of the South Carolina Public Service Authority, to be composed of the Governor of the State, the Attorney General, the State Treasurer, the Comptroller General, and the Secretary of State, as ex officio members, who shall must serve without extra compensation other than necessary traveling expenses. Said The advisory board shall must perform any duties imposed on them under this chapter, and shall must consult and advise with the board of directors on any and all matters which by the board of directors may be referred to the advisory board. The board of directors shall must make annual reports to the advisory board, which reports shall must be submitted to the General Assembly by the Governor, in which full information as to all of the acts of said board of directors shall be given, together with financial statement and full information as to the work of the authority. The On July first of each year, the advisory board shall on July first of each year, must designate some reputable a certified public accountant or accountants, resident in the State, for the purpose of making a complete audit of the affairs of said the authority, which said audit shall must be filed with the annual report of the board of directors. The Public Service Authority must submit the audit to the General Assembly.

SECTION   6.   Section 58-31-30 of the 1976 Code, as last amended by Act 283 of 1996, is further amended to read:

"Section 58-31-30.   (A)   The Public Service Authority has power to develop the Cooper River, the Santee River, and the Congaree River in this State, as instrumentalities of intrastate, interstate, and foreign commerce and navigation; to produce, distribute, and sell electric power; to acquire, treat, distribute, and sell water at wholesale; to reclaim and drain swampy and flooded lands; and to reforest the watersheds of rivers in this State; and also has all powers which may be necessary or convenient for the exercise of these powers, including without limiting the generality of the foregoing, the following powers:

(1)   to have perpetual succession as a corporation;

(2)   to sue and be sued;

(3)   to adopt, use, and alter a corporate seal;


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(4)   to acquire, purchase, hold, use, lease, mortgage, sell, transfer, and dispose of any property, real, personal, or mixed, or any interest therein;

(5)   to divert water from the Tail Race Canal by means of canals, flumes, or otherwise and to build, construct, maintain, and operate canals, dams, locks, aqueducts, reservoirs, draw-spans, ditches, drains, and roads, and to lay and construct any tunnels, penstocks, culverts, flumes, conduits, mains, and other pipes necessary or useful in connection therewith;

(6)   to divert waters from the Santee River by means of a canal or canals, flume or flumes or otherwise, and to construct and maintain a dam of any height or size for the purpose of impounding said waters and to discharge the same into the Cooper River or otherwise;

(7)   to build, acquire, construct, and maintain power houses and any and all structures, ways and means, necessary, useful or customarily used and employed in the manufacture, generation, and distribution of water power, steam electric power, hydroelectric power, and any and all other kinds of power, including power transmission lines, poles, telephone lines, substations, transformers, and generally all things used or useful in the manufacture, distribution, purchase, and sale of power generated by water, steam, or otherwise;

(8)   to manufacture, produce, generate, transmit, distribute, and sell water power, steam electric power, hydroelectric power, or mechanical power within and without the State of South Carolina;

(9)   to reclaim and drain swampy and flooded lands;

(10)   to reforest the watersheds of the Cooper, Santee, and Congaree Rivers and to prevent soil erosion and floods;

(11)   to make bylaws for the management and regulation of its affairs;

(12)   to appoint officers, agents, employees, and servants, to prescribe their duties, and to fix their compensation;

(13)   to fix, alter, charge, and collect tolls and other charges for the use of their facilities of, or for the services rendered by, or for any commodities furnished by, the Public Service Authority at rates to be determined by it, such these rates to be at least sufficient to provide for payment of all expenses of the Public Service Authority, the conservation, maintenance, and operation of its facilities and properties, the payment of principal and interest on its notes, bonds, and other evidences of indebtedness or obligation and to fulfill the terms and provisions of any agreements made with the purchasers or holders of any such notes, bonds, or other evidences of indebtedness or obligation;


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(14)   from time to time 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 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; 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, 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 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; 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;

(15)   to endorse or otherwise guarantee the obligations of any a corporation all of the voting stock of which the Public Service Authority may own or acquire;


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(16)   without limitation of the foregoing to borrow money from the United States Government or any corporation or agency created, designed, or established by the United States;

(17)   to make contracts of every name and nature and to sue and be sued thereon; to enter into agreements providing for binding arbitration between the parties thereto; and to execute all instruments necessary or convenient for the carrying on of its business;

(17)   to make contracts of every name and nature and to execute all instruments necessary or convenient for the carrying on of its business.

(18)   to have power of eminent domain;

(19)   to mortgage, pledge, hypothecate, or otherwise encumber all or any of the property, real, personal, or mixed, or facilities, or revenues of the Public Service Authority as security for notes, bonds, evidences of indebtedness, or other obligations of the Public Service Authority;

(20)   to do all acts and things necessary or convenient to carry out the powers granted to it by this chapter or any other law;

(21)   to investigate, study, and consider all undeveloped power sites and navigation projects in the State and to acquire or develop the same as need may arise in the same manner as herein provided. Provided, always, nevertheless, that said investigations, studies, and considerations of said South Carolina Public Service Authority herein created shall be limited to the Congaree River and its tributaries below the confluence of the Broad and Saluda Rivers and the Wateree tributary of the Santee River at and near a point at or near Camden, South Carolina. Provided, however, that the Public Service Authority shall have no power at any time or in any manner to pledge the credit and the taxing power of the State or any of its political subdivisions, nor shall any of its obligations or securities be deemed to be obligations of the State or of any of its political subdivisions; nor shall the State be legally, equitably, or morally liable for the payment of principal of and interest on such obligations or securities. The State of South Carolina does hereby pledge to and agree with any person, firm, or corporation, the government of the United States and any corporation or agency created, designated, or established by the United States, subscribing to or acquiring the notes, bonds, evidences of indebtedness, or other obligations to be issued by the Public Service Authority for the construction of any project, that the State will not alter or limit the rights hereby vested in the Public Service Authority until the said notes, bonds, evidences of indebtedness, or other obligations, together with the interest thereon, are fully met and discharged; provided, that nothing herein contained shall preclude such limitation or alteration if


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and when and after adequate provisions shall be made by law for the protection of those subscribing to or acquiring such notes, bonds, evidences of indebtedness, or other obligations of the Public Service Authority. The State of South Carolina or any political subdivision shall in no way be responsible for any debts or obligations contracted by or for the authority, and the board or directors of the authority, the advisory board, and the officers shall make no debt whatsoever for the payment of which the State or any political subdivision shall in any way be bound. It is intended that the project to be developed hereunder and any and all projects undertaken by the provisions of this chapter, shall be financed as self-liquidating projects and that the credit and taxing powers of the State, or its political subdivisions, shall never be pledged to pay said debts and obligations;

(22)   to acquire or purchase, if requested to do so, or to construct, operate, and maintain all structures and facilities necessary, useful, or customarily used and employed in the treatment and distribution of water for industrial, commercial, domestic, or agricultural purposes within the counties of Berkeley, Calhoun, Charleston, Clarendon, Colleton, Dorchester, Orangeburg, and Sumter. The provisions of this section do not apply to the acquisition or purchase of existing electric systems;

(23)   to acquire, treat, transmit, distribute, and sell water at wholesale within the counties of Berkeley, Calhoun, Charleston, Clarendon, Colleton, Dorchester, Orangeburg, and Sumter if requested in writing to do so by the governing body of any incorporated municipality, by the governing body of any special purpose district providing water service in the unincorporated areas of each county, or by the governing body of each county for those unincorporated areas not so provided water service by a special purpose district. The authority may not transfer water from one river basin to another except for those located in the counties specified in this item. However, the authority shall prepare and maintain its books and records for its water supply operations separate and apart from its books and records for the generation, transmission, and distribution of electric power. The costs of water supply operations, including the loss of the generation of hydroelectric power, may not affect rates and charges for electric service. Water must be offered for sale by the authority on a nondiscriminatory basis without regard to whether electricity is also purchased from the authority.

Without limiting the generality of the foregoing, the Public Service Authority shall have power and is hereby authorized from time to time


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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 bonds shall be authorized by resolution of the board of directors and shall bear such date or dates, be in such forms, and contain such 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, 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, (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 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.

The Public Service Authority may enter into any mortgages, deeds of trust, or other agreements with any bank or trust company or other person or persons in the United States having power to enter into the same, including the United States Government or any agency or creature thereof, as security for the notes, bonds, or other evidences of indebtedness and may transfer, convey, mortgage, or pledge all or any of the property, contracts, franchises, or revenues of the Public Service Authority thereunder. Such mortgage, deed of trust, or other agreement may contain such provisions as may be customary in such the instruments or as the Public Service Authority may authorize, including, (but without limitation), provisions as to (a) the construction, operation, maintenance, and repair of the properties or facilities of the Public Service Authority, (b) the application of funds and the safeguarding of funds on hand or on deposit, (c) the rights and remedies of said the trustee and the holders of the bonds, (d) possession of the mortgaged properties, and (e) the terms and provisions of the bonds, and may also may provide for a franchise for operation of the property and business of the Public Service Authority, or any part thereof, to any person, firm, or corporation, including the United States Government, or any agency thereof, acquiring the mortgaged property or any part


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thereof upon foreclosure for a period of not to exceed twenty years from the date of such the acquisition.

(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 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 Public Service Authority must not sell, transfer, lease, dispose of, or convey any property, real, personal, or mixed, of the Public Service Authority used in the generation, transmission, or distribution of electricity unless such 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 may be reasonably forecasted.

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 Public Service Authority that is used in the generation, transmission, or distribution of electricity unless such 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 may be reasonably forecasted."

SECTION   7.   Article 1, Chapter 31, Title 58 of the 1976 Code is amended by adding:

"Section 58-31-55.   (A)   A director shall discharge his duties as a director, including his duties as a member of a committee:

(1)   in good faith;

(2)   with the care an ordinarily prudent person in a like position would exercise under similar circumstances; and

(3)   in a manner he reasonably believes to be in the best interests of the Public Service Authority. As used in this chapter, 'best interests' means a balancing of the following:

(a)   preservation of the financial integrity of the Public Service Authority and its ongoing operation of generating, transmitting, and distributing electricity to wholesale and retail customers on a reliable,


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adequate, efficient, and safe basis, at just and reasonable rates, regardless of the class of customer;

(b)   economic development and job attraction and retention within the Public Service Authority's present service area or areas within the State authorized to be served by an electric cooperative, or municipally owned electric utility that is a direct or indirect wholesale customer of the authority; and

(c)   subject to the limitations of Section 58-31-30(B) and item (3)(a) of this section, exercise of the powers of the authority set forth in Section 58-31-30 in accordance with good business practices and the requirements of applicable licenses, laws, and regulations.

(B)   In discharging his duties, a director is entitled to rely on information, opinions, reports, or statements, including financial statements and other financial data, if prepared or presented by:

(1)   one or more officers or employees of the Public Service Authority whom the director reasonably believes to be reliable and competent in the matters presented;

(2)   legal counsel, public accountants, or other persons as to matters the director reasonably believes are within the person's professional or expert competence; or

(3)   a committee of the board of directors of which he is not a member if the director reasonably believes the committee merits confidence.

(C)   A director is not acting in good faith if he has knowledge concerning the matter in question that makes reliance otherwise permitted by subsection (B) unwarranted.

(D)   A director is not liable for any action taken as a director, or any failure to take any action, if he performed the duties of his office in compliance with this section.

(E)   An action against a director for failure to perform the duties imposed by this section must be commenced within three years after the cause of action has occurred, or within two years after the time when the cause of action is discovered, or should reasonably have been discovered, whichever occurs sooner. This limitations period does not apply to breaches of duty which have been concealed fraudulently.

Section 58-31-56.   (A)   A conflict of interest transaction is a transaction with the Public Service Authority in which a director of the Public Service Authority has a direct or indirect interest. A conflict of interest transaction is not voidable by the Public Service Authority solely because of the director's interest in the transaction if any one of the following is true:


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(1)   the material facts of the transaction and the director's interest were disclosed or known to the board of directors or a committee of the board of directors, and the board of directors or a committee authorized, approved, or ratified the transaction; or

(2)   the transaction was fair to the Public Service Authority and its customers.

If item (1) has been accomplished, the burden of proving unfairness of any transaction covered by this section is on the party claiming unfairness. If item (1) has not been accomplished, the party seeking to uphold the transaction has the burden of proving fairness.

(B)   For purposes of this section, a director of the Public Service Authority has an indirect interest in a transaction if:

(1)   another entity in which he has a material financial interest or in which he is a general partner is a party to the transaction; or

(2)   another entity of which he is a director, officer, or trustee is a party to the transaction and the transaction is or should be considered by the board of directors of the Public Service Authority.

(C)   For purposes of subsection (A)(1), a conflict of interest transaction is authorized, approved, or ratified if it receives the affirmative vote of a majority of the directors on the board of directors (or on the committee) who have no direct or indirect interest in the transaction, but a transaction may not be authorized, approved, or ratified under this section by a single director. If a majority of the directors who have no direct or indirect interest in the transaction vote to authorize, approve, or ratify the transaction, a quorum is present for the purpose of taking action under this section. The presence of, or a vote cast by, a director with a direct or indirect interest in the transaction does not affect the validity of any action taken under subsection (A)(1) if the transaction is otherwise authorized, approved, or ratified as provided in that subsection.

Section 58-31-57.   Wholesale and retail customers of the Public Service Authority and electric cooperatives that are indirect customers of the Public Service Authority may bring suit against Public Service Authority directors asserting a breach of any duty arising under Sections 58-31-55 and 58-31-56. If it is proved that a director violated the provisions of Section 58-31-55 or Section 58-31-56, he is subject to liability under the same theories of liability as for a breach of duty by a corporate director pursuant to Title 33 and South Carolina common law. Liability under this section shall be limited to disgorgement of any ill-gotten gain and damages of not more than fifty thousand dollars per occurrence, reasonable attorney's fees and costs. If the customer


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prevails, the court may also grant appropriate equitable relief and may award reasonable attorney's fees and costs. Any remedy granted or damages awarded pursuant to this section do not relieve a director from criminal liability or preclude criminal prosecution."

SECTION   8.   Section 58-31-110 of the 1976 Code is amended to read:

"Section 58-31-110.   The South Carolina Public Service Authority is a corporation, completely owned by and to be operated for the benefit of the people of this State, and any. Any and all net earnings thereof of the Public Service Authority not necessary or desirable for the prudent conduct and operation of its business in the best interests of the Public Service Authority as defined by Section 58-31-55(A)(3) or to pay the principal of and interest on its bonds, notes, or other evidences of indebtedness, or other obligations or to fulfill the terms and provisions of any agreements made with the purchasers or holders thereof or others shall must be paid over semiannually to the State Treasurer for the general funds of the State and shall must be used to reduce the tax burdens on the people of this State. Nothing in this section shall prohibit the authority from paying to the State each year up to one percent of its projected operating revenues, as such revenues would be determined on an accrual basis, from the combined electric and water systems."

SECTION   9.   Section 58-31-320 of the 1976 Code is amended to read:

"Section 58-31-320.   After July 9, 1973, the Public Service Authority shall have the right to provide electric service only to, and it shall have the right to serve:

(1)   Central Electric Power Cooperative, Inc., including (a) all electric cooperatives that are members of Central Electric Power Cooperative, Inc., on July 9, 1973, (b) any electric cooperative which after July 9, 1973, becomes a member of Central Electric Power Cooperative, Inc., (c) any electric cooperative which after July 9, 1973, ceases to be a member of Central Electric Power Cooperative, Inc., and (d) in the event Central Electric Power Cooperative, Inc., ceases to exist as a corporate entity, any electric cooperative which was a member of Central Electric Power Cooperative, Inc., at the time of its dissolution;

(2)   all premises, customers, and electric cooperatives served by it on July 9, 1973;

(3)   its present service area as defined in Section 58-31-330;


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(4)   those areas owned, leased, or controlled by the Public Service Authority adjacent to the lakes and waterways of Federal Power Commission Project No. 199.

If, after July 9, 1973, any customers, premises, or electric cooperatives located outside the present service area of the Public Service Authority as defined in Section 58-31-330 and being served by the Public Service Authority, including any subsequent expansions or additions by such customers, premises, or cooperatives, ceases or discontinues accepting electrical service from the Public Service Authority, the Public Service Authority may subsequently sell and furnish electrical service to new customers, premises, or electric cooperatives from its major transmission lines in an amount not exceeding the amount of power the sale of which was lost by reason of such discontinuation of service.

Nothing contained herein shall be construed to restrict the right of the Public Service Authority to furnish electric service to its own premises; to exchange or interchange electric service with, purchase electric energy from or sell electric energy to any other electrical utility or any joint agency organized and operating pursuant to Chapter 23 of Title 6; to construct additional facilities, within or without its present service area, as defined in Section 58-31-330; to construct additional delivery points to or for any of the premises or customers it is authorized to serve as provided for in this section; or to fulfill the growth needs of any customer legally served by it."

SECTION   10.   Responsibilities and duties of the directors of the Public Service Authority created by the provisions of this act are in addition to responsibilities and duties created by other provisions of law.

SECTION   11.   This act becomes effective upon approval by the Governor. The provisions in SECTIONS 4 and 5 are effective for directors confirmed on or after this act's effective date. Notwithstanding any other provision of this act, the Senate Judiciary Committee shall act instead of the State Regulation of Public Utilities Review Committee, mutatis mutandis, for any appointment made on or before July 1, 2005.   /

Renumber sections to conform.

Amend title to conform.

Senator RANKIN explained the amendment.

Senator ELLIOTT spoke on the amendment.


Printed Page 2014 . . . . . Monday, April 18, 2005

ACTING PRESIDENT PRESIDES

At 4:27 P.M., Senator McCONNELL assumed the Chair.

Senator ELLIOTT spoke on the amendment.

The amendment was adopted.

On motion of Senator MARTIN, with unanimous consent, Amendment No. 1A, which had been previously carried over, was taken up for immediate consideration.

Amendment No. 1A

Senators MOORE and RICHARDSON proposed the following Amendment No. 1A (MOORE-573), which was adopted:

Amend the bill, as and if amended, SECTION 5, Section 59-31-20, after the first sentence by amending as follows:

/   Four of the directors shall have had substantial work experience /

Renumber sections to conform.

Amend title to conform.

Senator MOORE explained the amendment.

Senator MESCHER argued contra to the adoption of the amendment.

Senator RYBERG argued contra to the adoption of the amendment.

Senator RYBERG moved to lay the amendment on the table.

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

Ayes 8; Nays 35

AYES

Bryant                    Campsen                   Cleary
Grooms                    Hayes                     Mescher
Ritchie                   Ryberg

Total--8

NAYS

Alexander                 Anderson                  Courson
Cromer                    Drummond *                Elliott
Ford                      Gregory                   Hawkins
Hutto                     Jackson *                 Knotts

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Land                      Leventis *                Lourie
Malloy                    Martin                    Matthews
McConnell                 McGill *                  Moore
O'Dell                    Patterson                 Peeler
Pinckney                  Rankin                    Reese
Richardson                Scott                     Setzler
Sheheen                   Short                     Thomas
Verdin                    Williams

Total--35

*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by leave of the Senate, with unanimous consent.

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

The amendment was adopted.

Amendment No. 3

Senator RYBERG proposed the following Amendment No. 3 (573R002.WGR), which was tabled:

Amend the bill, as and if amended, page 12 by striking lines 8 through 19 and inserting:

/   necessary for the purpose of the development."   /

Renumber sections to conform.

Amend title to conform.

Senator RYBERG explained the amendment.

Senator RANKIN moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 4

Senator RICHARDSON proposed the following Amendment No. 4 (573R003.SHR), which was tabled:

Amend the bill, as and if amended, page 4 by striking lines 22 through 33 and inserting:


Printed Page 2016 . . . . . Monday, April 18, 2005

/   board. Each director shall serve for a term of seven four 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 four years, or until his successor has been appointed and qualified. In the event of a director vacancy occurring in the     /

Renumber sections to conform.

Amend title to conform.

Senator RICHARDSON explained the amendment.

Senator MESCHER argued contra to the adoption of the amendment.

Senator MESCHER moved to lay the amendment on the table.

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

Ayes 30; Nays 10

AYES

Alexander                 Anderson                  Elliott
Ford                      Grooms                    Hawkins
Hayes                     Hutto                     Knotts
Land                      Leventis                  Lourie
Malloy                    Martin                    Matthews
McGill *                  Mescher                   Moore
O'Dell                    Patterson                 Peeler
Pinckney                  Rankin                    Scott
Setzler                   Sheheen                   Short
Thomas                    Verdin                    Williams

Total--30

NAYS

Bryant                    Campsen                   Cleary
Courson                   Cromer                    Gregory

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McConnell                 Richardson                Ritchie
Ryberg

Total--10

*This Senator was not present in the Chamber at the time the vote was taken and the vote was recorded by leave of the Senate, with unanimous consent.

The amendment was laid on the table.

Senator COURSON spoke on the Bill.

Amendment No. 5A

Senators CAMPSEN and RYBERG proposed the following Amendment No. 5A (JUD0573.015), which was tabled:

Amend the bill, as and if amended, by striking SECTION 1 in its entirety and inserting therein the following:

/   SECTION   1.   Section 1-3-240(C) of the 1976 Code, as last amended by Act 175 of 2004, is amended to read:

"(C)(1)     Persons appointed to the following offices of the State may be removed by the Governor for malfeasance, misfeasance, incompetency, absenteeism, conflicts of interest, misconduct, persistent neglect of duty in office, or incapacity:

(1)(a)   Workers' Compensation Commission;

(2)(b)   Commission of the Department of Revenue Reserved;

(3)(c)   Ethics Commission;

(4)(d)   Election Commission;

(5)(e)   Professional and Occupational Licensing Boards;

(6)(f)   Juvenile Parole Board;

(7)(g)   Probation, Parole and Pardon Board;

(8)(h)   Director of the Department of Public Safety;

(9)(i)   Board of the Department of Health and Environmental Control, excepting the chairman;

(10)(j)   Chief of State Law Enforcement Division. ;

(11)(k)   South Carolina Lottery Commission; and

(12)(l)   Executive Director of the Office of Regulatory Staff; and

(m)     Directors of the South Carolina Public Service Authority appointed pursuant to Section 58-31-20, excepting the chairman. A director of the South Carolina Public Service Authority also may be removed for his breach of any duty arising under Sections 58-31-55 or


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58-31-56. The Governor must not request a director of the South Carolina Public Service Authority to resign unless cause for removal, as established by this subsection, exists. Removal of a director of the South Carolina Public Service Authority, except as is provided by this section or by Section 58-31-20(A), must be considered to be an irreparable injury for which no adequate remedy at law exists.

(2)   Upon the expiration of an officeholder's term, such the individual may continue to serve until a successor has been is appointed and qualifies."   /

Renumber sections to conform.

Amend title to conform.

Senator CAMPSEN explained the amendment.

PRESIDENT PRESIDES

At 5:57 P.M., the PRESIDENT assumed the Chair.

Senator CAMPSEN explained the amendment.

Senator MESCHER moved to lay the amendment on the table.

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

Ayes 27; Nays 11

AYES

Alexander                 Anderson                  Courson
Cromer                    Drummond *                Elliott
Hutto                     Knotts                    Land
Leventis                  Lourie                    Malloy
Martin                    McGill *                  Mescher
Moore                     O'Dell                    Peeler
Pinckney                  Rankin                    Reese
Scott                     Setzler                   Sheheen
Short                     Thomas                    Williams

Total--27

NAYS

Bryant                    Campsen                   Cleary
Gregory                   Grooms                    Hawkins

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McConnell                 Richardson                Ritchie *
Ryberg                    Verdin

Total--11

*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by leave of the Senate, with unanimous consent.

The amendment was laid on the table.

Amendment No. 9

Senator MESCHER proposed the following Amendment No. 9 (JUD0573.006), which was tabled:

Amend the bill, as and if amended, by striking SECTION 5, Section 58-31-20, beginning on page 3, in its entirety and inserting therein the following:

/   "Section 58-31-20.   (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 one director shall have substantial work experience with a small retail business customer of the authority, and two one shall be from the State at large, one of whom shall be chairman and the other of whom. Three 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. One director shall have experience with a large retail customer of Santee Cooper receiving power from the high voltage transmission system and having a potential demand for electric service of at least 1,000 kilowatts per month. 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


Printed Page 2020 . . . . . Monday, April 18, 2005

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 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.

(B)   Candidates for appointment to the board must be screened by the State Regulation of Public Utilities Review Committee and, prior to confirmation by the Senate, must be found qualified by meeting the minimum requirements contained in subsection (C). The review committee must submit a written report to the Clerk of the Senate setting forth its findings as to the qualifications of each candidate. A candidate must not serve on the board, even in an interim capacity, until he is screened and found qualified by the State Regulation of Public Utilities Review Committee.

(C)   Each member must possess abilities and experience that are generally found among directors of energy utilities serving this State and that allow him to make valuable contributions to the conduct of the authority's business. These abilities include substantial business skills and experience, but are not limited to:


Printed Page 2021 . . . . . Monday, April 18, 2005

(1)   general knowledge of the history, purpose, and operations of the Public Service Authority and the responsibilities of being a director of the authority;

(2)   the ability to interpret legal and financial documents and information so as to further the activities and affairs of the Public Service Authority;

(3)   with the assistance of counsel, the ability to understand and apply federal and state laws, rules, and regulations, including, but not limited, to Chapter 4 of Title 30 of the Code, as they relate to the activities and affairs of the Public Service Authority; and

(4)   with the assistance of counsel, the ability to understand and apply judicial decisions as they relate to the activities and affairs of the Public Service Authority.

(D)   For the assistance of the board of directors of said the Public Service Authority, there is hereby established an advisory board to be known as the advisory board of the South Carolina Public Service Authority, to be composed of the Governor of the State, the Attorney General, the State Treasurer, the Comptroller General, and the Secretary of State, as ex officio members, who shall must serve without extra compensation other than necessary traveling expenses. Said The advisory board shall must perform any duties imposed on them under this chapter, and shall must consult and advise with the board of directors on any and all matters which by the board of directors may be referred to the advisory board. The board of directors shall must make annual reports to the advisory board, which reports shall must be submitted to the General Assembly by the Governor, in which full information as to all of the acts of said board of directors shall be given, together with financial statement and full information as to the work of the authority. The On July first of each year, the advisory board shall on July first of each year, must designate some reputable a certified public accountant or accountants, resident in the State, for the purpose of making a complete audit of the affairs of said the authority, which said audit shall must be filed with the annual report of the board of directors. The Public Service Authority must submit the audit to the General Assembly.   /

Renumber sections to conform.

Amend title to conform.

Senator MESCHER explained the amendment.

Senator McCONNELL moved to lay the amendment on the table.


Printed Page 2022 . . . . . Monday, April 18, 2005

The amendment was laid on the table.

Amendment No. 10

Senator MESCHER proposed the following Amendment No. 10 (JUD0573.007), which was tabled:

Amend the bill, as and if amended, SECTION 5, pages 3 and 4, in Section 58-31-20, by striking subsection (A) in its entirety and inserting therein the following:

/   "Section 58-31-20.   (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. Three 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. One director shall have experience with a large retail customer of Santee Cooper receiving power from the high voltage transmission system and having a potential demand for electric service of at least 1,000 kilowatts per month. 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. Of the two appointments made in the year 2005, one director with electric


Printed Page 2023 . . . . . Monday, April 18, 2005

cooperative experience shall represent the third congressional district and the other director shall have small retail business experience. Of the two appointments made in the year 2006, one director with electric cooperative experience shall represent the sixth congressional district and the other director shall represent Berkley County. Of the two appointments made in the year 2007, one director shall have industrial experience and the other director shall represent the fourth congressional district. Of the two appointments made in the year 2008, one director with electric cooperative experience shall represent the second congressional district and the other director shall represent Georgetown County. Of the two appointments made in the year 2009, one director shall represent the fifth congressional district and the other director shall represent Horry County. No appointments shall be made in the year 2010. In the year 2011, a chairman shall be appointed at large. 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 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.   /

Renumber sections to conform.

Amend title to conform.

Senator MESCHER explained the amendment.

Senator McCONNELL spoke on the amendment.

Senator McCONNELL moved to lay the amendment on the table.

The amendment was laid on the table.


Printed Page 2024 . . . . . Monday, April 18, 2005

Amendment No. 11

Senator MESCHER proposed the following Amendment No. 11 (JUD0573.009), which was tabled:

Amend the bill, as and if amended, by striking SECTION 8 in its entirety and inserting therein the following:

/   SECTION   8.   Section 58-31-110 of the 1976 Code is amended to read:

"Section 58-31-110.   The South Carolina Public Service Authority is a corporation, completely owned by and to be operated for the benefit of the people of this State, and any. Any and all net earnings thereof of the Public Service Authority not necessary or desirable for the prudent conduct and operation of its business in the best interests of the Public Service Authority as defined by Section 58-31-55(A)(3) or to pay the principal of and interest on its bonds, notes, or other evidences of indebtedness, or other obligations or to fulfill the terms and provisions of any agreements made with the purchasers or holders thereof or others shall must be paid over semiannually to the State Treasurer for the general funds of the State and shall must be used to reduce the tax burdens on the people of this State. Nothing in this section shall prohibit the authority from paying to the State each year up to twelve percent of its prior year net earnings from the combined electric and water systems."   /

Renumber sections to conform.

Amend title to conform.

Senator MESCHER explained the amendment.

Senator McCONNELL spoke on the amendment.

Senator RANKIN moved to lay the amendment on the table.

The amendment was laid on the table.

There being no further amendments, the Bill was read the second time, passed and ordered to a third reading.

The Bill was returned to the status of Special Order.

Statement by Senator McCONNELL

Throughout this process, I met with and had my staff consult with the management of Santee Cooper about this legislation. This consultation proved to be productive until the Santee Cooper Board voted to restrict access to their staff.


Printed Page 2025 . . . . . Monday, April 18, 2005

I have confirmed with Santee Cooper senior management today that:

1) Not one of the three largest bond credit rating agencies have said that, if this subcommittee amendment passes, the company's rating will be downgraded; and

2) Those agencies meeting with Santee Cooper have said that the board should be independent of the Governor and any particular class of customers. These agencies are concerned whether any class of customers has too much influence at the board table. They are also concerned if the Governor can remove the directors without cause. I believe that the subcommittee amendment addresses both of these concerns. The amendment requires cause for removal. It also contains strict "conflict of interest provisions" and prohibits transactions which are disregard to the long-term interests of Santee Cooper's operations.

Statement by Senators MOORE, RANKIN and MARTIN

Throughout this process, the Judiciary Committee Chairman has met with and had his staff consult with the management of Santee Cooper about this legislation. This consultation proved to be productive until the Santee Cooper Board voted to restrict access to their staff.

We have confirmed with Santee Cooper senior management today that:

1) Not one of the three largest bond credit rating agencies have said that, if this subcommittee amendment passes, the company's rating will be downgraded; and

2) Those agencies meeting with Santee Cooper have said that the board should be independent of the Governor and any particular class of customers. These agencies are concerned whether any class of customers has too much influence at the board table. They are also concerned if the Governor can remove the directors without cause. We believe that the subcommittee amendment addresses both of these concerns. The amendment requires cause for removal. It also contains strict "conflict of interest provisions" and prohibits transactions which are adverse to the long-term interests of Santee Cooper's operations.

HOUSE AMENDMENTS AMENDED
RETURNED TO THE HOUSE WITH AMENDMENTS

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


Printed Page 2026 . . . . . Monday, April 18, 2005

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.

The House returned the Bill with amendments.

Senator KNOTTS proposed the following amendment (JUD0022.008), which was adopted:

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

/   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.

(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


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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 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


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


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(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:

(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:


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(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 one 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 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


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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 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


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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./

Renumber sections to conform.

Amend title to conform.

The amendment was adopted.

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

STATEWIDE APPOINTMENT
Confirmation

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

Statewide Appointment

Initial Appointment, South Carolina Arts Commission, with term to commence June 30, 2003, and to expire June 30, 2006


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At-Large:

Harry J. Love, 408 38th Avenue North, Myrtle Beach, S.C. 29577 VICE Connie R. Williams

MOTION ADOPTED

On motion of Senator MOORE, with unanimous consent, the Senate stood adjourned out of respect to the memory of Mr. James Robert "Bob" Murrell of North Augusta, S.C.

ADJOURNMENT

At 6:56 P.M., on motion of Senator McCONNELL, the Senate adjourned to meet tomorrow at 12:00 Noon.

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