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

Thursday, March 17, 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 Senator J. VERNE SMITH.

Point of Quorum

At 11:04 A.M., Senator McCONNELL made the point that a quorum was not present. It was ascertained that a quorum was not present.

Call of the Senate

Senator McCONNELL moved that a Call of the Senate be made. The following Senators answered the Call:

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

A quorum being present, the Senate resumed.

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

REGULATIONS RECEIVED

The following were received and referred to the appropriate committees for consideration:

Document No. 2942
Agency: Board of Education
Section 6301, et seq.
SUBJECT: Graduation Requirements
Received by Lieutenant Governor March 16, 2005
Referred to Education Committee
Legislative Review Expiration July 14, 2005
(Subject to Sine Die Revision)

Document No. 2962
Agency: Department of Health and Environmental Control
SUBJECT: Implementation of Emergency Health Powers Act
Received by Lieutenant Governor March 16, 2005
Referred to Medical Affairs Committee
Legislative Review Expiration July 14, 2005
(Subject to Sine Die Revision)

Document No. 2964
Agency: Board of Education
SUBJECT: Utilization of Generic Teacher Certification
Received by Lieutenant Governor March 16, 2005
Referred to Education Committee
Legislative Review Expiration July 14, 2005
(Subject to Sine Die Revision)

Document No. 2965
Agency: Department of Insurance
SUBJECT: Agent Fees for DMV Compliance
Received by Lieutenant Governor March 15, 2005
Referred to Banking and Insurance Committee
Legislative Review Expiration July 13, 2005

Document No. 2966
Agency: Department of Insurance
SUBJECT: Repeal 69-2, Annual Renewal Plan
Received by Lieutenant Governor March 15, 2005
Referred to Banking and Insurance Committee
Legislative Review Expiration July 13, 2005
(Subject to Sine Die Revision)

Document No. 2967
Agency: Department of Insurance
SUBJECT: Workers' Compensation Advisory Board
Received by Lieutenant Governor March 15, 2005
Referred to Banking and Insurance Committee
Legislative Review Expiration July 13, 2005

Document No. 2968
Agency: Department of Insurance
SUBJECT: Workers' Compensation Assigned Risk Rates
Received by Lieutenant Governor March 15, 2005
Referred to Banking and Insurance Committee
Legislative Review Expiration July 13, 2005
(Subject to Sine Die Revision)

Doctor of the Day

Senator SETZLER introduced Dr. David Gatti of West Columbia, S.C., Doctor of the Day.

Leave of Absence

At 12:32 P.M., Senator MOORE requested a leave of absence for the balance of the day.

S. 617--CO-SPONSOR ADDED

S. 617 (Word version) -- Senators Alexander, Setzler, Short, Verdin, Ryberg, Knotts and Campsen: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 16, ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO BENEFITS AND FUNDING OF PUBLIC EMPLOYEE PENSION PLANS IN THIS STATE, INVESTMENTS ALLOWED FOR FUNDS OF THE VARIOUS STATE-OPERATED RETIREMENT SYSTEMS, AND THE STATE RETIREMENT SYSTEMS INVESTMENT PANEL, SO AS TO DELETE THE RESTRICTIONS LIMITING SUCH INVESTMENTS TO AMERICAN-BASED CORPORATIONS REGISTERED ON AN AMERICAN NATIONAL EXCHANGE AS PROVIDED IN THE SECURITIES EXCHANGE ACT OF 1934 OR QUOTED THROUGH THE NATIONAL ASSOCIATION OF SECURITIES DEALERS AUTOMATIC QUOTATION SYSTEM; AND TO PROPOSE A FURTHER AMENDMENT TO SECTION 16, ARTICLE X, SO AS TO ELIMINATE THE STATE RETIREMENT SYSTEMS INVESTMENT PANEL.

On motion of Senator CAMPSEN, with unanimous consent, the name of Senator CAMPSEN was added as a co-sponsor of S. 617.

INTRODUCTION OF BILLS AND RESOLUTIONS

The following were introduced:

S. 638 (Word version) -- Senators Campsen, Grooms, Leventis, Bryant, Fair, Hayes and Hawkins: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, TO ENACT THE "EQUAL ACCESS TO INTERSCHOLASTIC ACTIVITIES ACT" BY ADDING SECTION 59-65-49 SO AS TO PERMIT HOME SCHOOL STUDENTS TO PARTICIPATE IN INTERSCHOLASTIC ACTIVITIES OF THE SCHOOL DISTRICT IN WHICH THE STUDENT RESIDES PURSUANT TO CERTAIN CONDITIONS.
l:\council\bills\pt\2473sj05.doc

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

H. 3783 (Word version) -- Reps. Phillips and Wilkins: A CONCURRENT RESOLUTION TO FIX WEDNESDAY, APRIL 27, 2005, IMMEDIATELY BEFORE THE FOLK HERITAGE AWARDS, AS THE DATE FOR THE HOUSE OF REPRESENTATIVES AND THE SENATE TO MEET IN JOINT SESSION IN THE HALL OF THE HOUSE OF REPRESENTATIVES FOR THE PURPOSE OF ELECTING MEMBERS OF THE BOARDS OF TRUSTEES OF THE CITADEL, COASTAL CAROLINA UNIVERSITY, SOUTH CAROLINA STATE UNIVERSITY, WIL LOU GRAY OPPORTUNITY SCHOOL, AND WINTHROP UNIVERSITY TO SUCCEED THOSE MEMBERS WHOSE TERMS EXPIRE IN 2005, OR WHOSE POSITIONS OTHERWISE MUST BE FILLED; AND TO ESTABLISH A PROCEDURE REGARDING NOMINATIONS AND NOMINATING AND SECONDING SPEECHES FOR THE CANDIDATES FOR THESE OFFICES DURING THE JOINT SESSION.

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

H. 3785 (Word version) -- Reps. Haley, E. H. Pitts, Huggins, Clark, Frye, Toole, Bingham and Ballentine: A CONCURRENT RESOLUTION TO EXPRESS THE PROFOUND SORROW OF THE MEMBERS OF THE GENERAL ASSEMBLY OF THE STATE OF SOUTH CAROLINA UPON THE DEATH OF LANCE CORPORAL JOSHUA TORRENCE, OF LEXINGTON COUNTY, AND TO EXTEND THE DEEPEST SYMPATHY TO HIS FAMILY AND MANY FRIENDS.

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

REPORTS OF STANDING COMMITTEES

Senator GREGORY from the Committee on Fish, Game and Forestry submitted a favorable with amendment report on:

S. 290 (Word version) -- Senator Gregory: A BILL TO AMEND ARTICLE 5, CHAPTER 9, TITLE 50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO HUNTING AND FISHING LICENSES, BY ADDING SECTION 50-9-545 SO AS TO PROVIDE THAT IT IS UNLAWFUL FOR A PERSON TO TAKE STRIPED BASS, HYBRID STRIPED BASS, BROOK TROUT, BROWN TROUT, RAINBOW TROUT, OR SMALL MOUTH BASS IN THE WATERS OF THIS STATE WITHOUT FIRST PROCURING A STATE FISHERIES HATCHERY STAMP AND HAVING A VALID STAMP IN THEIR POSSESSION WHILE FISHING OR TRANSPORTING STRIPED BASS, HYBRID STRIPED BASS, BROOK TROUT, BROWN TROUT, RAINBOW TROUT, OR SMALL MOUTH BASS CAUGHT IN THE WATERS OF THIS STATE, TO PROVIDE FOR FURNISHING THE STAMP AND FOR USE OF THE PROCEEDS FROM THE SALE OF THE STAMP, AND TO PROVIDE PENALTIES FOR VIOLATIONS OF THIS SECTION.

S. 290--Point of Order

Senator KNOTTS raised a Point of Order that the Bill was out of order inasmuch as it was violative of Article III, Section 15 of the S. C. Constitution, in that the Bill was purported to raise revenue and all revenue-raising measures should originate in the House of Representatives.

The PRESIDENT took the Point of Order under advisement.

Ordered for consideration tomorrow.

Message from the House

Columbia, S.C., March 16, 2005

Mr. President and Senators:

The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:

H. 3008 (Word version) -- Reps. Cato, Bales, Clark, Barfield, Huggins, Frye, Sandifer, E.H. Pitts, Taylor, Anthony, Bailey, Battle, Bingham, Ceips, Chalk, Chellis, Clemmons, Cooper, Dantzler, Davenport, Duncan, Edge, Hamilton, Hardwick, Harrell, Hinson, Kirsh, Leach, Limehouse, Littlejohn, Loftis, McCraw, Norman, Owens, Perry, Pinson, Rice, Simrill, Skelton, D.C. Smith, G.R. Smith, J.R. Smith, Stewart, Thompson, Toole, Townsend, Tripp, Umphlett, Vaughn, Vick, Viers, Walker, White, Whitmire, Wilkins, Witherspoon, Coates, Brady, Ballentine, Ott, Mahaffey, Haley, Hagood, Bowers and Young: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 32 TO TITLE 15, SO AS TO ENACT THE "SOUTH CAROLINA ECONOMIC DEVELOPMENT, CITIZENS, AND SMALL BUSINESS PROTECTION ACT OF 2005", PROVIDING FOR DEFINITIONS OF THE TERMS "DAMAGES", "FAULT", AND "PERSON", SEVERAL LIABILITY IN AN ACTION FOR PERSONAL INJURY, PROPERTY DAMAGE, OR WRONGFUL DEATH, A PROCEDURE FOR ASSESSING PERCENTAGES OF FAULT, JOINT LIABILITY ON ALL WHO CONSCIOUSLY AND DELIBERATELY PURSUE A COMMON PLAN TO COMMIT A TORTIOUS ACT, PLACEMENT OF THE BURDEN OF PROVING FAULT ON THE PERSON SEEKING TO ESTABLISH FAULT, AND AN EXCEPTION TO THE PROVISIONS OF THE CHAPTER; TO AMEND SECTION 15-3-640, RELATING TO AN ACTION BASED UPON A DEFECTIVE OR UNSAFE IMPROVEMENT TO REAL PROPERTY, SO AS TO DECREASE THE TIME AN ACTION MAY BE BROUGHT FROM THIRTEEN TO SIX YEARS AFTER THE SUBSTANTIAL COMPLETION OF THE IMPROVEMENT; TO AMEND SECTION 15-7-30, RELATING TO ACTIONS THAT MUST BE TRIED WHERE THE DEFENDANT RESIDES, SO AS TO DEFINE KEY TERMS AND TO PROVIDE FACTORS FOR THE COURT TO CONSIDER WHEN DETERMINING THE PRINCIPAL PLACE OF BUSINESS; TO AMEND SECTION 15-36-10, AS AMENDED, RELATING TO LIABILITY FOR ATTORNEY'S FEES AND COSTS OF FRIVOLOUS LAWSUITS, SO AS TO REPLACE THE EXISTING PROVISIONS WITH PROVISIONS REQUIRING THE SIGNATURE OF AN ATTORNEY OR PARTY ON ALL PLEADINGS AND OTHER DOCUMENTS FILED IN A CIVIL OR ADMINISTRATIVE ACTION, TO PROVIDE A PROCEDURE FOR ADMINISTERING SANCTIONS FOR A VIOLATION, AND TO PROVIDE FOR THE REPORTING OF AN ATTORNEY TO THE COMMISSION ON LAWYER CONDUCT; TO AMEND SECTION 36-2-803, RELATING TO PERSONAL JURISDICTION BASED UPON CONDUCT, SO AS TO ALLOW THE COURT TO CHANGE THE PLACE OF TRIAL WHEN THE CONVENIENCE OF WITNESSES AND THE ENDS OF JUSTICE WOULD BE PROMOTED BY THE CHANGE; TO REPEAL SECTIONS 15-36-20, 15-36-30, 15-36-40, AND 15-36-50 ALL RELATING TO FRIVOLOUS LAWSUITS, AND SECTION 58-23-90 RELATING TO VENUE IN ACTIONS AGAINST LICENSED MOTOR CARRIERS.
and has ordered the Bill enrolled for Ratification.
Very respectfully,
Speaker of the House

Received as information.

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. 185 (Word version) -- Senators Martin, McConnell, Alexander, Ford, Bryant and Knotts: A BILL TO AMEND SECTION 7-13-1340, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REQUIREMENTS OF VOTE RECORDERS, SO AS TO ADD REFERENCES TO OPTICAL SCAN VOTING DEVICES AND DELETE PROVISIONS REQUIRING SEPARATE VOTES FOR PRESIDENT; AND TO AMEND SECTION 7-13-320, RELATING TO BALLOT STANDARDS AND SPECIFICATIONS, SO AS TO DELETE THE PROHIBITION AGAINST COMBINING THE OFFICIAL BALLOT FOR PRESIDENTIAL ELECTORS WITH ANY OTHER OFFICIAL BALLOTS.

S. 483 (Word version) -- Senators Matthews, Knotts, J. Verne Smith, Sheheen, Land, Patterson, Scott, Hutto, Williams, Anderson and Ford: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 4 TO CHAPTER 127, TITLE 59 SO AS TO ENACT THE "SOUTH CAROLINA STATE UNIVERSITY ACADEMIC AND ADMINISTRATIVE FACILITIES BOND ACT", WHICH PRESCRIBES THE MANNER IN WHICH AND CONDITION UNDER WHICH SOUTH CAROLINA STATE UNIVERSITY MAY ISSUE CERTAIN REVENUE BONDS FOR THE ACQUISITION OF ACADEMIC AND ADMINISTRATIVE BUILDINGS.

S. 144 (Word version) -- Senators Mescher, Short and Rankin: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 59-63-80 AND 59-63-90 TO REQUIRE SCHOOL DISTRICTS TO ADOPT A POLICY AUTHORIZING A STUDENT TO SELF ADMINISTER ASTHMA MEDICATION, TO PROVIDE FOR THE ELEMENTS OF THE POLICY INCLUDING REQUIRING THE PARENT OF THE STUDENT TO PROVIDE CERTAIN MEDICAL INFORMATION, AND TO AMEND SECTION 15-78-60 BY PROVIDING IMMUNITY FROM LIABILITY FOR DISTRICTS AND THEIR EMPLOYEES.

S. 209 (Word version) -- Senator Grooms: A BILL TO AMEND SECTION 12-37-220, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO EXTEND THE EXEMPTION ALLOWED PROPERTY OWNED BY VOLUNTEER FIRE DEPARTMENTS AND RESCUE SQUADS TO PROPERTY LEASED BY SUCH DEPARTMENTS AND SQUADS.

SECOND READING BILLS

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

S. 293 (Word version) -- Senator Hayes: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 17-13-47 SO AS TO ALLOW A LAW ENFORCEMENT OFFICER EMPLOYED BY A NEIGHBORING STATE TO ENTER SOUTH CAROLINA IN FRESH PURSUIT OF A PERSON WHO IS IN FLIGHT FROM THE COMMISSION OF A CRIMINAL OFFENSE IN THE NEIGHBORING STATE AND TO ARREST THE PERSON, TO PROVIDE FOR A PROCEDURE TO DETERMINE THE LAWFULNESS OF THE ARREST, THE RELEASE OF THE PERSON ARRESTED, AND THE EXTRADITION OF THE ARRESTED PERSON, AND TO PROVIDE THAT THIS SECTION APPLIES ONLY TO LAW ENFORCEMENT OFFICERS EMPLOYED BY A NEIGHBORING STATE WHEN HIS STATE HAS ENACTED A PROVISION SIMILAR TO THIS SECTION RELATING TO THE ARREST AND CUSTODY OF A PERSON PURSUED INTO A NEIGHBORING STATE.

S. 293--Co-Sponsor Added

On motion of Senator KNOTTS, with unanimous consent, the name of Senator KNOTTS was added as a co-sponsor of S. 293.

S. 403 (Word version) -- Senators Sheheen and Malloy: A BILL TO AMEND SECTION 59-150-250, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SALE OF A LOTTERY TICKET OR SHARE TO A MINOR, SO AS TO ALLOW THE COURT THE DISCRETION TO REDUCE THE FINE OR GIVE A WARNING UPON CONVICTION FOR A FIRST OFFENSE OF VIOLATING THE PROVISIONS.

S. 491 (Word version) -- Senators McConnell, Martin and Ford: A BILL TO AMEND SECTION 42-3-80, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ADMINISTRATIVE DIRECTOR OF THE ADMINISTRATIVE DEPARTMENT OF THE WORKERS' COMPENSATION COMMISSION, SO AS TO TIE THE MAXIMUM SALARY PAID TO THE ADMINISTRATIVE DIRECTOR TO THE SALARY PAID TO COMMISSIONERS INSTEAD OF CIRCUIT JUDGES.

Senator RITCHIE explained the Bill.

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

Senator HUTTO explained the Bill.

H. 3246 (Word version) -- Reps. Duncan, Taylor and M.A. Pitts: A BILL TO AMEND SECTION 50-11-870, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO BIRD SANCTUARIES, SO AS TO DECLARE AS A BIRD SANCTUARY THE GROUNDS OF THE PRESBYTERIAN HOME OF SOUTH CAROLINA LOCATED ON HIGHWAY 56 IN THE TOWN OF CLINTON IN LAURENS COUNTY.

S. 629 (Word version) -- Fish, Game and Forestry Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF NATURAL RESOURCES, RELATING TO WILDLIFE MANAGEMENT AREA REGULATIONS, DESIGNATED AS REGULATION DOCUMENT NUMBER 2933, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

AMENDED, READ THE SECOND TIME

H. 3152 (Word version) -- Reps. Harrell, Wilkins, Leach, Littlejohn, Young, Bailey, Battle, Rice, Scarborough, Hinson, Simrill, Mahaffey, Sandifer, Hagood and J.E. Smith: A BILL TO AMEND CHAPTER 62 OF TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA MOTION PICTURE INCENTIVE ACT, SO AS TO INCLUDE AN EXEMPTION FROM LOCAL, AS WELL AS STATE, SALES AND USE TAXES, TO DEFINE "EMPLOYEE" FOR PURPOSES OF A FIVE PERCENT REBATE ON ALL TAXABLE WAGES PAID IN CONNECTION WITH AN EMPLOYEE'S WORK ON A MOTION PICTURE AND TO PROVIDE PROCEDURES FOR CLAIMING THE REBATE, TO ALLOW UP TO SEVEN PERCENT OF THE GENERAL FUND PORTION OF ADMISSIONS TAX COLLECTED BY THE STATE AND FUNDED TO THE USE OF THE SOUTH CAROLINA FILM COMMISSION TO BE USED EXCLUSIVELY FOR MARKETING AND SPECIAL EVENTS, AND TO PROVIDE, FURTHER, THAT THE COMMISSION REPORT ANNUALLY TO THE COORDINATING COUNCIL FOR ECONOMIC DEVELOPMENT ON USE OF ALL ITS FUNDS IN A PUBLIC REPORT, ACCESSIBLE ON ITS WEBSITE; TO AMEND SECTION 12-36-920, AS AMENDED, RELATING TO SALES TAX ON GROSS PROCEEDS FROM RENTALS ON LODGINGS, SO AS TO DELETE A REBATE TO A MOTION PICTURE PRODUCTION COMPANY FOR SALES TAX PAID ON ACCOMMODATIONS; TO AMEND SECTION 1-30-25, AS AMENDED, RELATING TO THE DEPARTMENT OF COMMERCE, SO AS TO DELETE A REFERENCE TO THE STATE DEVELOPMENT BOARD; AND TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO EXEMPTIONS FROM THE STATE SALES AND USE TAX, SO AS TO DELETE THE EXEMPTION FOR THE PROCEEDS OF SALES MADE TO A MOTION PICTURE COMPANY.

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

Senators McCONNELL, LEATHERMAN, ALEXANDER, FORD, KNOTTS, ELLIOTT and ANDERSON proposed the following amendment (GJK\20345SD05), which was adopted:

Amend the bill, as and if amended, in Section 12-62-50 of the 1976 Code, as contained in SECTION 1, by striking item (1) of subsection (A) which begins on line 42, page 4, and inserting:

/   (1)   The South Carolina Film Commission may rebate to a motion picture production company a portion of the South Carolina payroll of the employment of persons subject to South Carolina income tax withholdings in connection with production of a motion picture. The rebate may not exceed fifteen percent of the total aggregate South Carolina payroll for persons subject to South Carolina income tax withholdings employed in connection with the production when total production costs in South Carolina equal or exceed one million dollars during the taxable year. The rebates in total may not annually exceed seven million dollars and shall come from the state's general fund. For purposes of this section, 'total aggregate payroll' does not include the salary of an employee whose salary is equal to or greater than one million dollars for each motion picture.   /

Amend further, as and if amended, by striking items (4) and (5) of subsection (A) of Section 12-62-50 of the 1976 Code in their entirety.

Amend further, as and if amended, in Section 12-62-60 of the 1976 Code, as contained in SECTION 1, by striking / thirteen percent / on line 27, page 7, and inserting / thirteen percent twenty-six percent / and by striking /seven percent / on line 33, page 7 and inserting / seven percent fifteen percent /;

Amend further, as and if amended, by striking SECTION 4 and inserting:

/SECTION   4.   This act takes effect July 1, 2005.   /

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.

H. 3152--Ordered to a Third Reading

On motion of Senator LEATHERMAN, with unanimous consent, H. 3152 was ordered to receive a third reading on Friday, March 18, 2005.

COMMITTEE AMENDMENT AMENDED AND ADOPTED
READ THE SECOND TIME

S. 401 (Word version) -- Senator Sheheen: A BILL TO AMEND SECTION 59-149-50, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ELIGIBILITY OF A STUDENT TO RECEIVE A LIFE SCHOLARSHIP, SO AS TO INCLUDE A STUDENT WHOSE PARENT OR GUARDIAN IS IN THE MILITARY OR HAS RETIRED FROM THE MILITARY WITHIN FOUR YEARS OF THE DATE THE STUDENT APPLIES FOR THE SCHOLARSHIP IF THE PARENT OR GUARDIAN HAS PAID INCOME TAXES IN THIS STATE FOR A MAJORITY OF THE YEARS OF MILITARY SERVICE AND IS A RESIDENT OF THIS STATE.

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

Senator HUTTO proposed the following amendment (401R001.CBH), which was adopted:

Amend the committee report, as and if amended, page 1, lines 28 through 42, continuing on page 2, lines 1 though 17 by striking and inserting the following:

/   SECTION   1.   Section 59-149-50(A) of the 1976 Code, as last amended by Act 187 of 2004, is further amended to read:

"(A)   To be eligible for a LIFE Scholarship, a student must be either a student who has graduated member of a class graduating from a high school located in this State, a student who has completed at least three of the final four years of high school within this State, a home school student who has successfully completed a high school home school program in this State in the manner required by law, or a student who has graduated graduating from a preparatory high school outside this State, while a dependent of a parent or guardian who is a legal resident of this State and has custody of the dependent, or a student whose parent or guardian has served in or has retired from one of the United States Armed forces within the last four years, paid income taxes in this State for a majority of the years of service, and is a resident of this State. These students also must meet the requirements of subsection (B) and be eligible for in-state tuition and fees as determined pursuant to Chapter 112 of Title 59 and applicable regulations. In addition, beginning with the 1998-1999 school year for those students who graduate from high school on or after May 1998 the student must have graduated from high school with a minimum of a 3.0 cumulative grade average on a 4.0 scale and have scored 1000 or better on the Scholastic Aptitude Test (SAT) or have the equivalent ACT score, 1050 or better, beginning with school year 2000-2001, and 1100 or better, beginning with school year 2002-2003; provided that, if the student is to attend such a public or independent two-year college or university in this State, including a technical college, the SAT requirement does not apply. If a student chooses to attend such a public or independent institution of this State and does not make the required SAT score or the required high school grade point average, as applicable, the student may earn a LIFE Scholarship after his freshman year if he meets the grade point average and semester credit hour requirements of subsection (B)."

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

Renumber sections to conform.

Amend title to conform.

Senator HUTTO explained the amendment.

The amendment was adopted.

The Committee on Education proposed the following amendment (PT\2438SJ05), which was adopted:

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

/ SECTION   1.   Section 59-149-50(A) of the 1976 Code, as last amended by Act 187 of 2004, is further amended to read:

"(A)   To be eligible for a LIFE Scholarship, a student must be either a student who has graduated member of a class graduating from a high school located in this State, a student who has completed at least three of the final four years of high school within this State, a home school student who has successfully completed a high school home school program in this State in the manner required by law, or a student who has graduated graduating from a preparatory high school outside this State, while a dependent of a parent or guardian who is a legal resident of this State and has custody of the dependent or a student whose parent or guardian has served in or has retired from one of the United States Armed forces within the last four years, paid income taxes in this State for a majority of the years of service, and is a resident of this State. These students must also must meet the requirements of subsection (B) and be eligible for in-state tuition and fees as determined pursuant to Chapter 112 of Title 59 and applicable regulations. In addition, beginning with the 1998-1999 school year for those students who graduate from high school on or after May 1998 the student must have graduated from high school with a minimum of a 3.0 cumulative grade average on a 4.0 scale and have scored 1000 or better on the Scholastic Aptitude Test (SAT) or have the equivalent ACT score, 1050 or better, beginning with school year 2000-2001, and 1100 or better, beginning with school year 2002-2003; provided that, if the student is to attend such a public or independent two-year college or university in this State, including a technical college, the SAT requirement does not apply. If a student chooses to attend such a public or independent institution of this State and does not make the required SAT score or the required high school grade point average, as applicable, the student may earn a LIFE Scholarship after his freshman year if he meets the grade point average and semester credit hour requirements of subsection (B)."

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

Renumber sections to conform.

Amend title to conform.

Senator HAYES 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.

COMMITTEE AMENDMENT ADOPTED
READ THE SECOND TIME

S. 422 (Word version) -- Senators McConnell, Hayes and Campsen: A BILL TO AMEND ARTICLE 7, TITLE 62 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TRUST ADMINISTRATION, SO AS TO ENACT THE UNIFORM TRUST CODE BY PROVIDING A COMPREHENSIVE CODIFICATION OR RECODIFICATION OF MUCH OF EXISTING TRUST LAW AND SUPPLEMENTING EXISTING COMMON LAW UNLESS THE CODE SPECIFICALLY CONTRADICTS IT, AND PROVIDING, AMONG OTHER THINGS, FOR GENERAL PROVISIONS AND DEFINITIONS INCLUDING A DEFINITION FOR "QUALIFIED BENEFICIARY" AND AN APPLICATION OF THE STATE'S WILL CONSTRUCTION RULES TO THE CONSTRUCTION OF TRUSTS WHEN APPROPRIATE; FOR JUDICIAL PROCEEDINGS AND REPRESENTATION BY OTHERS, ESSENTIALLY RECODIFYING EXISTING VENUE, JURISDICTION, AND REPRESENTATION PROVISIONS; FOR THE RULES FOR CREATION OF TRUSTS INCLUDING THAT A SELF-SETTLED TRUST MUST BE IN WRITING, THAT A TRUST PURPOSE BE LAWFUL AND ACHIEVABLE, THAT A VALID NONCHARITABLE TRUST MAY BE CREATED WITHOUT DEFINITE BENEFICIARIES IN ONLY CERTAIN INSTANCES, THAT AN EARLY TERMINATION OR MODIFICATION OF A NONAMENDABLE IRREVOCABLE TRUST REQUIRES COURT APPROVAL, THAT A COURT MAY MODIFY THE ADMINISTRATIVE OR DISPOSITIVE PROVISIONS OF A TRUST, AND THAT A TRUST MAY BE TERMINATED IF IT CANNOT JUSTIFY ITS ADMINISTRATIVE COSTS, MODIFIED TO ACCOMPLISH THE SETTLOR'S TAX OBJECTIVES, OR DIVIDED OR COMBINED WITH OTHERS TO FACILITATE ADMINISTRATION; FOR RETENTION OF THE ABILITY OF THE SETTLOR'S CREDITORS TO REACH THE TRUST PROPERTY IN A TRUST; FOR THE VALIDITY SPENDTHRIFT PROVISION EXCEPT AS TO CHILD SUPPORT AND PROTECTION OF THE SPECIAL NEEDS TRUST; FOR THE PRESUMED REVOCABILITY INSTEAD OF IRREVOCABILITY OF A TRUST, CLARIFICATION OF THE MENTAL CAPACITY FOR CREATING A REVOCABLE TRUST, AND A STATUTE OF LIMITATIONS FOR CONTESTING A REVOCABLE TRUST; AND FOR RULES FOR THE OFFICE OF TRUSTEE, INCLUDING RESIGNATION AND REMOVAL, DUTIES AND POWERS OF TRUSTEES, INCLUDING THE ESSENCE OF SOUTH CAROLINA'S UNIFORM TRUSTEES POWERS ACT AND THE UNIFORM PRUDENT INVESTORS ACT, ADDING A BROADER TRUSTEE POWER AND A STANDARD OF CARE FOR TRUSTEE MATTERS IN ADDITION TO INVESTMENT AND MANAGEMENT, AND THE UNIFORM PRINCIPAL AND INCOME ACT GOVERNING FIDUCIARY ACCOUNTING PRINCIPALS, SUBSTANTIAL RETENTION OF EXISTING LAW CONCERNING LIABILITY OF TRUSTEES AND RIGHTS OF PERSONS DEALING WITH THEM, AND APPLICATION OF THESE PROVISIONS TO EXISTING RELATIONSHIPS; TO AMEND SECTION 27-6-50, RELATING TO EXCEPTIONS TO THE RULE AGAINST PERPETUITIES, SECTION 33-31-152, RELATING TO RIGHTS OF STATES AS TO CORPORATIONS, SECTION 34-15-10, AS AMENDED, RELATING TO A BANK ACTING AS FIDUCIARY, SECTION 62-3-703, RELATING TO GENERAL DUTIES OF A PERSONAL REPRESENTATIVE, SECTION 62-3-913, RELATING TO DISTRIBUTION BY A PERSONAL REPRESENTATIVE TO A TRUSTEE, AND SECTION 62-5-417, RELATING TO THE GENERAL DUTY OF A CONSERVATOR, ALL SO AS TO AMEND CROSS REFERENCES TO CONFORM TO THIS ACT; AND TO REPEAL SECTION 27-5-70.

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 (JUD0422.003), which was adopted:

Amend the bill, as and if amended, page 92, by striking line 1 and inserting:

/   Subsections (c) and (d) are taken from former South Carolina Probate Code Section 62-7-204(A).   /

Amend the bill further, as and if amended, page 95, by striking line 4 and inserting:

/   SCTC subsections (c), (d), and (e) are taken from former South/

Amend the bill further, as and if amended, page 100, by striking line 21 and inserting:

/   (b)   The order in which the beneficiary representatives are listed/

Amend the bill further, as and if amended, page 101, by striking line 26 and inserting:

/   principal under Subsection (a)(3).     /

Amend the bill further, as and if amended, page 108, by striking line 30 and inserting:

/   ascertained now or in the future, subject to any applicable rule/

Amend the bill further, as and if amended, page 115, by striking line 35 and inserting:

/   internal revenue law.     /

Amend the bill further, as and if amended, page 117, by striking line 15 and inserting:

/   Internal Revenue Code Section 501 (c)(3).     /

Amend the bill further, as and if amended, page 118, by striking line 14 and inserting:

/   South Carolina expressly rejects the portion of the     /

Amend the bill further, as and if amended, page 119, by striking line 8 and inserting:

/     The South Carolina version of this section changes the word "void"   /

Amend the bill further, as and if amended, page 123, by striking line 11 and inserting:

/   Section 62-7-409.   Noncharitable trust without ascertainable/

Amend the bill further, as and if amended, page 136, by striking lines 20 through 31 and inserting:

/   (a)   After notice to the qualified beneficiaries, the trustee of a trust consisting of trust property having a total value less than $100,000 may terminate the trust if the trustee concludes that the value of the trust property is insufficient to justify the cost of administration.

(b)   The court may modify or terminate a trust or remove the trustee and appoint a different trustee if it determines that the value of the trust property is insufficient to justify the cost of administration.

(c)   Upon termination of a trust under this section, the trustee shall distribute the trust property as ordered by the court or, if the court does not specify the manner of distribution, in a manner consistent with the purposes of the trust.

(d)   This section does not apply to an easement for conservation or preservation.     /

Amend the bill further, as and if amended, page 144, by striking line 27 and inserting:

/   South Carolina Trust Code Subsections 62-7-418(a) and (b) retain/

Amend the bill further, as and if amended, page 146, by striking line 41 and inserting:

/   Medlin, The Law of Wills and Trusts, Vol. I, Estate Planning in/

Amend the bill further, as and if amended, page 147, by striking line 2 and inserting:

/   Medlin, supra. This Section avoids the confusion regarding the/

Amend the bill further, as and if amended, page 154, by striking line 42, and on page 155, by striking on line 1, and inserting:

/     (b)   For purposes of this section, a beneficiary who is a trustee of a trust, but who is not   /

Amend the bill further, as and if amended, page 158, by striking line 41 and inserting:

/   trusts as referred to in SCTC Section 62-7-504. Common     /

Amend the bill further, as and if amended, page 170, by striking line 27 and inserting:

/   S.C. Code Section 62-5-408.     /

Amend the bill further, as and if amended, page 175, by striking line 35 and inserting:

/   Section 62-7-606.   Anti-Lapse Provision in Trust.     /

Amend the bill further, as and if amended, page 186, by striking line 22 and inserting:

/     Subsections (b) and (d) provide for the proper administration of

Amend the bill further, as and if amended, page 211, by striking line 27 and inserting:

/   McCord Eq.) 383 (S.C. 18). Also, see Restatement, Second   /

Amend the bill further, as and if amended, page 212, by striking line 16 and inserting:

/   1953) (notwithstanding the general rule prohibiting a trustee from/

Amend the bill further, as and if amended, page 212, by striking line 29 and inserting:

/   the provisions of former SCPC Section 62-7-307). See     /

Amend the bill further, as and if amended, page 214, by striking line 24 and inserting:

/   1947) (it is the duty of the trustee in voting shares of corporate/

Amend the bill further, as and if amended, page 214, by striking line 42 and inserting:

/   type described in subsection (h)(3). Former SCPC Section     /

Amend the bill further, as and if amended, page 215, by striking line 1 and inserting:

/   subsection (h)(4). Former SCPC Section 67-7-704(c)(18) permitted   /

Amend the bill further, as and if amended, page 216, by striking line 7 and inserting:

/   (S.C. 1975),   the court recognized the existence of a trustee's duty to   /

Amend the bill further, as and if amended, page 230, by striking line 4 and inserting:

/   beneficiaries reasonably informed about the administration of the/

Amend the bill further, as and if amended, page 236, by striking line 22 and inserting:

/     (4)   deposit trust money in accounts - all types including   /

Amend the bill further, as and if amended, page 239, by striking line 28 and inserting:

/   Settlor's intent and facilitates the trust's administration without/     Amend the bill further, as and if amended, page 271, by striking line 24 and inserting:

/     (D)   A trustee shall diversify the investments of the trust unless the   /

Amend the bill further, as and if amended, page 272, by striking line 22 and inserting:

/   the provisions of this subsection apply to a trust established before/

Amend the bill further, as and if amended, page 274, by striking line 5 and inserting:

/   breach of trust as may be necessary in the interests of justice. See/

Amend the bill further, as and if amended, page 277, by striking line 43 and inserting:

/   See Restatement (Second) of Trusts Section 258 cmt. e (1959)./

Amend the bill further, as and if amended, page 279, by striking line 40 and inserting:

/   an action when the trustee fails to take action against a third party,/

Amend the bill further, as and if amended, page 282, by striking line 2 and inserting:

/   Probate Code Section 62-7-307. Both sections establish a statute/

Amend the bill further, as and if amended, page 282, by striking line 28 and inserting:

/   because the court, in determining the terms of the trust, is allowed/

Amend the bill further, as and if amended, page 283, by striking line 24 and inserting:

/     Prior South Carolina case law could be interpreted to     /

Amend the bill further, as and if amended, page 283, by striking line 31 and inserting:

/   infer that a trustee should follow the same canons of       /

Amend the bill further, as and if amended, page 283, by striking line 33 and inserting:

/   Section 62-7-704 encouraged trustees     /

Amend the bill further, as and if amended, page 284, by striking line 29 and inserting:

/   of events affecting the administration or distribution of a trust./

Amend the bill further, as and if amended, page 284, by striking line 35 and inserting:

/   372 (Ct. App. 1998) (essentially applying the same standards to a/

Amend the bill further, as and if amended, page 286, by striking line 16 and inserting:

/   the beneficiary consented to the conduct constituting the breach,/

Amend the bill further, as and if amended, page 287, by striking line 17 and inserting:

/     The South Carolina Trust Code adds Section 62-7-1009(b) not found     /

Amend the bill further, as and if amended, page 294, by striking line 41 and inserting:

/     8.   The trustee is authorized by the Trust Agreement to     /

Amend the bill further, as and if amended, page 295, by striking line 3 and inserting:

/   trustees, do hereby execute this Certificate of Trust this ___ day of

Amend the bill further, as and if amended, page 295, by striking line 26 and inserting:

/     I, , do hereby certify that trustee(s)   /

Amend the bill further, as and if amended, page 299, by striking lines 4 through 6 and inserting:

/   Section 62-7-1104. [RESERVED]

Section 62-7-1105. [RESERVED]

Section 62-7-1106.   Application to existing relationships.

(a)   Except as otherwise provided in this article, on the effective date   /

Amend the bill further, as and if amended, page 299, by striking line 29 and inserting:

/     (b)   If a right is acquired, extinguished, or barred upon the expiration   /

Amend the bill further, as and if amended, page 301, by striking line 4 and inserting:

/   SECTION   2.   Section 27-6-50(7) of the 1976 Code is amended to/

Amend the bill further, as and if amended, page 302, by striking lines 30 through 38 and inserting:

/   SECTION   9.   This act takes effect on January 1, 2006.     /

Renumber sections to conform.

Amend title to conform.

Senator RITCHIE 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.

COMMITTEE AMENDMENT ADOPTED
READ THE SECOND TIME

S. 259 (Word version) -- Senators Fair, Martin, Bryant, Malloy, Cromer and Campsen: A BILL TO AMEND SECTION 24-13-210 AND 24-13-230, BOTH AS AMENDED, RELATING TO GOOD BEHAVIOR, WORK, AND ACADEMIC CREDITS, SO AS TO REQUIRE THE DEPARTMENT OF CORRECTIONS TO DEVELOP POLICIES, PROCEDURES, AND GUIDELINES TO ALLOW CERTAIN PRISONERS TO RECEIVE A REDUCTION IN THEIR SENTENCES AND TO REVISE THE MAXIMUM AMOUNT OF TIME THAT MAY BE REDUCED FROM A SENTENCE; TO AMEND SECTION 24-27-200, RELATING TO THE FORFEITURE OF WORK, EDUCATION, OR GOOD CONDUCT CREDITS, SO AS TO PROVIDE THAT A REDUCTION IN THESE CREDITS MAY BE IMPLEMENTED PURSUANT TO AN ADMINISTRATIVE LAW JUDGE'S RECOMMENDATION, AND TO PROVIDE THAT THESE CREDITS MAY BE FORFEITED IF AN INMATE HAS SUBMITTED REPETITIVE CLAIMS PERTAINING TO HIS INCARCERATION OR APPREHENSION; AND TO AMEND SECTION 30-4-40, AS AMENDED, RELATING TO MATTERS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT, SO AS TO PROVIDE THAT CERTAIN ARCHITECTURAL PLANS, DRAWINGS, OR SCHEMATICS OR LAW ENFORCEMENT POLICIES WHOSE DISCLOSURE WOULD REASONABLY BE USED TO FACILITATE AN ESCAPE FROM LAWFUL CUSTODY MAY BE EXEMPT FROM DISCLOSURE.

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

The Committee on Corrections and Penology proposed the following amendment (SWB\6389CM05), which was adopted:

Amend the bill, as and if amended, Section 24-27-200(1) as contained in SECTION 3, by striking line 29, on page 4 and inserting:

/   (1)   submitted a malicious or frivolous claim, /

Renumber sections to conform.

Amend title to conform.

Senator HAWKINS 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.

S. 259--Co-Sponsor Added

On motion of Senator KNOTTS, with unanimous consent, the name of Senator KNOTTS was added as a co-sponsor of S. 259.

COMMITTEE AMENDMENT ADOPTED
READ THE SECOND TIME

S. 13 (Word version) -- Senators McConnell, Moore, Campsen, Elliott, Ritchie, Verdin, Mescher, Setzler, Bryant, Alexander, Fair, Grooms, Richardson and Lourie: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, TO ENACT THE SOUTH CAROLINA TEACHER PROTECTION ACT OF 2005; BY ADDING SECTION 15-78-210 SO AS TO PROVIDE PROTECTION FROM CIVIL LIABILITY FOR TEACHERS ACTING IN THE SCOPE OF THEIR EMPLOYMENT AND TO PROVIDE AN EXCEPTION TO THIS PROTECTION; BY ADDING SECTION 59-25-900, SO AS TO PROVIDE THAT A PERSON ASSOCIATED WITH A SCHOOL IN AN OFFICIAL CAPACITY WHO IS INJURED TO THE DEGREE THAT THE PERSON IS UNABLE TO RETURN TO HIS FORMER POSITION BY A STUDENT CONVICTED OF A VIOLATION OF THE SOUTH CAROLINA TEACHER PROTECTION ACT THAT CAUSED THE INJURY MUST BE ALLOWED TO CONTINUE IN ALL RETIREMENT, INSURANCE, AND DEFERRED COMPENSATION PROGRAMS IN WHICH THE PERSON WAS ENROLLED AT THE TIME OF THE INJURY WITH THE EMPLOYER REQUIRED TO CONTINUE EMPLOYER CONTRIBUTIONS ON BEHALF OF THE INJURED EMPLOYEE; TO AMEND SECTION 16-3-612, RELATING TO THE OFFENSE OF A STUDENT COMMITTING ASSAULT AND BATTERY AGAINST SCHOOL PERSONNEL, SO AS TO REDEFINE INTO THREE OFFENSES WITH SEPARATE PENALTIES FOR EACH, INCLUDING ESTABLISHING THE MOST SERIOUS OFFENSE AS A FELONY, AND TO AMEND SECTIONS 16-3-1535, 16-3-1545, AND 16-3-1550, RELATING TO THE REQUIREMENTS FOR NOTICE FOR CRIME VICTIMS AND WITNESSES TO CRIMES IN CRIMINAL AND JUVENILE OFFENDER PROCEEDINGS, SO AS TO REQUIRE JUDGES IN THESE PROCEEDINGS TO MAKE A SPECIFIC INQUIRY INTO COMPLIANCE WITH THESE NOTICE REQUIREMENTS.

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 (JUD0013.003), which was adopted:

Amend the bill, as and if amended, by striking SECTIONS 1, 2, 3, and 4 in their entirety and inserting:   /

SECTION   1.   SECTIONS 1, 2, and 3 of this act may be cited as the "South Carolina Teacher Protection Act of 2005".

SECTION   2.   Chapter 25, Title 59 of the 1976 Code is amended by adding:

"Section 59-25-900.   (A)   As used in this section:

(1)   'Teacher' means a:

(a)   licensed teacher, principal, administrator, or other educational professional who works on school grounds;

(b)   professional or non-professional employee who works on school grounds and has responsibility for maintaining order, discipline, or ensuring safety; or

(c)   school employee who, in an emergency, is called upon to maintain order, discipline, or to ensure safety.

(2)   'School' means a public or private kindergarten, a public or private elementary school, a public or private middle school or junior high, a public or private high school, a secondary school, an adult education school, a home school that includes students not related by blood to the operator, a public or private college or university, and any vocational, technical, or occupational school.

(3) 'Student' means a person:

(a)   enrolled in a school, whether the person is suspended or not suspended; or

(b)   expelled from a school within one year of enrollment.

(B)   A teacher may bring a civil action against a student who commits a criminal offense against the teacher if the offense occurs on school grounds or at a school-related event, or if the offense is directly related to the teacher's professional responsibilities. Nothing in this subsection is intended to limit the civil remedies available to another party as a result of the same criminal act.

(C)   In addition to the protections granted under the South Carolina Tort Claims Act, no teacher has civil liability to a student or to a party acting in the interest of a student for an act or omission by the teacher that occurs while the teacher is acting on behalf of the school if the:

(1)   teacher was acting within the scope of the teacher's employment;

(2)   actions of the teacher violated no state, local, or federal law including regulations set forth by the individual district or school;

(3)   acts or omissions were not the result of wilful or intentional conduct or gross negligence;

(4)   acts or omissions were not the result of the teacher operating a motor vehicle or watercraft; and

(5)   actions of the teacher do not constitute a violation of the student's civil rights.

(D)   This section does not affect the provisions of the South Carolina Tort Claims Act."

SECTION   3.   Section 16-3-612 of the 1976 Code is amended to read:

"Section 16-3-612.   (A)   For purposes of this section:

(1)   'Student' means a person currently:

(a)   enrolled in any a school, whether the person is suspended or not suspended; or

(b)   expelled from a school within one year of enrollment.

(2)   'School' includes, but is not limited to, means a public or private kindergarten, a public or private elementary school that contains any grades of kindergarten through twelfth grade, a public or private middle school or junior high, a public or private high school, a secondary school, an adult education school, a home school that includes students not related by blood to the operator, a public or private colleges, universities college or university, and any vocational, technical, or occupational school.

(3)   'Person affiliated with a school in an official capacity' includes, but is not limited to, administrators, teachers, faculty, substitute teachers, teachers' assistants, student teachers, custodial staff, food service staff, volunteers, law enforcement officers, school bus drivers, school crossing guards, or other regularly assigned school-contracted persons.

(B)   A student who commits an assault and battery, other than one that is aggravated, on school grounds or at a school-sponsored event against any person affiliated with the school in an official capacity including, but not limited to, administrators, teachers, faculty, substitute teachers, teachers' assistants, student teachers, custodial staff, food service staff, volunteers, law enforcement officers, school bus drivers, school crossing guards, or other regularly assigned school-contracted persons is guilty of assault and battery against school personnel which is a misdemeanor and, upon conviction, must be fined not more than one thousand dollars, or imprisoned not more than one year, or both. A student who commits simple assault and battery against a person affiliated with a school in an official capacity when the offense occurs on school grounds or at a school- related event, or when the offense is directly related to the school official's professional responsibilities, is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars or imprisoned not more than thirty days, or both.

(C)   A student who commits assault and battery, other than one that is aggravated, against a person affiliated with a school in an official capacity when the offense occurs on school grounds or at a school related event, or when the offense is directly related to the school official's professional responsibilities, is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned not more than one year, or both.

(D)   A student who commits assault and battery of a high and aggravated nature against a person affiliated with a school in an official capacity when the offense occurs on school grounds or at a school related event, or when the offense is directly related to the school official's professional responsibilities, is guilty of a felony and, upon conviction, must be fined not more than five thousand dollars or imprisoned not more than ten years, or both. A person is guilty of assault and battery of a high and aggravated nature pursuant to the provisions of this subsection if the person intentionally commits an assault and battery which involves the use of a deadly weapon or results in serious bodily injury to the victim.

(E)   Sentencing pursuant to this section must comply with the requirements of Article 15, Chapter 3, Title 16.

(F)   A person affiliated with a school in an official capacity who is:

(1)   the victim of a violation of this section for which a student was convicted, adjudicated delinquent, or pled guilty or nolo contendere; and

(2)   injured as a result of the violation of this section to the extent that his injury prevents him from returning to his former position within the school district, must be allowed to continue to participate in all retirement, insurance, and deferred compensation programs he was enrolled in at the time of the injury. The district shall continue to make the employer contributions on behalf of the injured school official.

(G)   If a school official reports an incident pursuant to this section to any school principal, vice principal, assistant principal, or other school administrator, the school administrator shall report the incident to law enforcement for investigation."   /

Renumber sections to conform.

Amend title to conform.

Senator RITCHIE 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.

AMENDED, READ THE SECOND TIME

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

Senator HAYES proposed the following amendment (PT\ 2474SJ05), which was adopted:

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

/ SECTION   1.   Title 59 of the 1976 Code is amended by adding:

  "CHAPTER 59

South Carolina Education and Economic Development Act

Section 59-59-10.   This chapter may be cited as the 'South Carolina Education and Economic Development Act'.

Section 59-59-20.   (A)   The Department of Education shall develop a curriculum, aligned with state content standards, organized around a career cluster system that must provide students with both strong academics and real-world problem solving skills. Students must be provided individualized educational, academic, and career-oriented choices and greater exposure to career information and opportunities. This system must promote the involvement and cooperative effort of parents, teachers, and school counselors in assisting students in making these choices, in setting career goals, and in developing individual graduation plans to achieve these goals.

(B)   School districts shall lay the foundation for the clusters of study system in elementary schools by providing career awareness activities. In the middle grades, programs must allow students to identify career interests and abilities and align them with clusters of study for the development of individual graduation plans. Finally, high school students must be provided guidance and curricula that will enable them to successfully complete their individual graduation plans, preparing them for a seamless transition to relevant employment, further training, or postsecondary study.

Section 59-59-30.   The Department of Education's guidance and counseling model must provide standards and strategies for school districts to use and follow in developing and implementing a comprehensive guidance and counseling program in their districts. This model must assist school districts and communities with the planning, development, implementation, and assessment of a school guidance and counseling program to support the personal, social, educational, and career development of pre-kindergarten through twelfth grade students. The Department of Education shall submit this guidance and counseling program model during the 2006 Legislative Session to the General Assembly in the form of a regulation in accordance with the South Carolina Administrative Procedures Act.

Section 59-59-40.   (A)   By June 1, 2006, the Department of Education shall develop state models and prototypes for individual graduation plans and the curriculum framework for career clusters of study. Clusters of study may be based upon the national career clusters and may include, but are not limited to:

(1)   agriculture, food, and natural resources;

(2)   architecture and construction;

(3)   arts, audio-video technology, and communications;

(4)   business, management, and administration;

(5)   education and training;

(6)   finance;

(7)   health science;

(8)   hospitality and tourism;

(9)   human services;

(10)   information technology;

(11)   law, public safety, and security;

(12)   manufacturing;

(13)   government and public administration;

(14)   marketing, sales, and service;

(15)   science, technology, engineering, and mathematics; and

(16)   transportation, distribution, and logistics.

(B)   During the 2005-06 school year, the department shall begin implementing a career development plan for educational professionals in career guidance that provides awareness, training, release time, and preparatory instruction. The plan must include strategies for certified school counselors to effectively involve parents in the career guidance process and in the development of the individual graduation plans. The plan also must include innovative approaches to recruit, train, and certify professionals needed to carry out the career development plan. The elements of the plan are to be available to certified career guidance professionals by the 2006-07 school year.

Section 59-59-50.   By August 1, 2007, each school district shall:

(1)   organize high school curricula around a minimum of three clusters of study and relevant cluster majors in accordance with a model or prototype developed or approved by the Department of Education. The curricula must ensure that each student' s goals and course of study can be met and be designed to teach academic content, knowledge, and skills that students will use in the workplace, further education, and life;

(2)   ensure that curricula for content clusters and majors provide a well-rounded education and allow for study in the arts and humanities, which foster the creativity, critical thinking skills, and self-discipline needed for success in any field; and

(3)   promote increased awareness and career school guidance counseling by providing to schools access to the South Carolina Occupational Information System. However, a district may choose another occupational information system, if approved by the Department of Education.

Section 59-59-70.   Parental participation is an integral component of the clusters of study system. Beginning with students in the sixth grade and continuing through high school, a school shall schedule annual parent counseling conferences to assist parents and their children in making career choices and creating individual graduation plans. These conferences must include, but are not limited to, assisting the student in identifying career interests and goals, selecting a cluster of study and an academic focus, and developing an individual graduation plan.

Section 59-59-80.   (A)   During the 2005-06 school year the department's school guidance and counseling program model along with career awareness and exploration activities must be integrated into the curricula for students in the first through fifth grades.

(B)   Beginning with the 2006-07 school year, counseling and career awareness programs on clusters of study must be provided to students in the sixth, seventh, and eighth grades, and they must receive career assessments and information to guide them in the career decision-making process. Before the end of the second semester of the eighth grade, eighth-grade students, in consultation with their parents, shall select a preferred cluster of study and develop an individual graduation plan as provided for in Section 59-59-100.

(C)   During the 2007-08 school year, each public high school shall implement a career guidance program model or prototype as developed or approved by the State Department of Education. At least annually after that, certified school guidance counselors and career specialists shall counsel students during the ninth and tenth grades to further define their career cluster goals and individual graduation plans. Before the end of the second semester of the tenth grade, each student shall declare an area of academic focus within a cluster of study. Throughout high school, a school shall provide each student guidance activities and career awareness programs that combine counseling on career options and experimental learning with academic planning to assist the student in fulfilling his individual graduation plans.

(D)   In order to maximize the number of clusters offered, a school district is to ensure that each high school within the district offers a variety of clusters. A student may transfer to a high school offering that student's career cluster if not offered by the high school in his attendance zone.

Section 59-59-90.   By the 2006-07 school year a middle school and by 2007-08 a high school shall provide students with the services of a certified school guidance counselor or career specialist who has obtained a bachelor's degree and who has successfully completed the national Career Development Facilitator (CDF) certification training. This career specialist shall work under the supervision of a certified school guidance counselor. The student to school guidance personnel ratio must be three hundred to one by school year 2006-07 for each middle school and 2007-08 for each high school. Guidance personnel include certified school guidance counselors and career specialists.

Section 59-59-100.   An individual graduation plan is a student specific educational plan detailing the curriculum necessary for the student to prepare for graduation and to successfully transition into the workforce or other post-secondary educational experiences. An individual graduation plan must:

(1)   align career goals and a student's course of study;

(2)   be based on the student's selected cluster of study and an academic focus within that cluster;

(3)   ensure that requirements for graduation will be met;

(4)   include career-oriented learning experiences including, but not limited to, internships, apprenticeships, mentoring, co-op education, and service learning;

(5)   be flexible to allow change in the course of study but be sufficiently structured to meet graduation requirements and admission to post-secondary education;

(6)   incorporate provisions of a student's individual education plan, when appropriate; and

(7)   be approved by a certified guidance professional and the student's parent or guardian.

Section 59-59-110.   (A)   The South Carolina Employment Security Commission, in collaboration with the State Board for Technical and Comprehensive Education and the Commission on Higher Education, shall assist the Department of Education, in planning and promoting the career information and employment options and preparation programs provided for in this chapter and in the establishment of regional education service centers by:

(1)   identifying potential employers to participate in the career-oriented learning programs;

(2)   serving as a contact point for employees seeking career information and training;

(3)   providing labor market information including, but not limited to, supply and demand and nontraditional jobs for men and women;

(4)   promoting increased career awareness and career counseling through the management and promotion of the South Carolina Occupational Information System;

(5)   collaborating with local agencies and businesses to stimulate funds; and

(6)   cooperating in the creation and coordination of workforce education programs.

(B)   The South Carolina Employment Security Commission shall assist in providing a link between employers in South Carolina and youth seeking employment.

Section 59-59-120.   (A)   There is created the Education and Economic Development Coordinating Council to implement the statewide performance, accountability, and enforcement requirements of this chapter. The council is comprised of the following members representing the geographic regions of the State and must be representative of the ethnic, gender, rural, and urban diversity of the State:

(1)   State Superintendent of Education or his designee;

(2)   Executive Director of the South Carolina Employment Security Commission or his designee;

(3)   Executive Director of the State Board for Technical and Comprehensive Education or his designee;

(4)   Secretary of the Department of Commerce or his designee;

(5)   Executive Director of the South Carolina Chamber of Commerce or his designee;

(6)   Executive Director of the South Carolina Commission on Higher Education or his designee;

(7)   the following members who must be appointed by the State Superintendent of Education:

(a)   a school district superintendent;

(b)   a principal;

      (c)   a school guidance counselor;

(d)   a teacher; and

(e)   the director of a career and technology center;

(8)   the following members who must be appointed by the Chairman of the Commission on Higher Education:

(a)   the president or provost of a research university;

(b)   the president or provost of a four-year college or university; and

(c)   the president of a technical college;

(9)   ten representatives of business appointed by the Governor, at least one of which must represent small business. Of the representatives appointed by the Governor five must be recommended by statewide organizations representing business and industry. The chair is to be selected by the Governor from one of his appointees;

(10)   Chairman of the Education Oversight Committee or his designee;

(11)   a member from the House of Representatives appointed by the Speaker of the House; and

(12)   a member from the Senate appointed by the President Pro Tempore. Initial appointments must be made by October 1, 2005, at which time the Governor shall call the first meeting. Appointments made by the Superintendent of Education, the Chamber of Commerce, and the Governor are to ensure that the demographics and diversity of this State are represented.

(B)   The council shall:

(1)   report annually to the General Assembly concerning the implementation of each component and phase of this chapter;

(2)   provide technical assistance to the Department of Education and the Commission on Higher Education to facilitate the implementation of this chapter;

(3)   designate and oversee the coordination and establishment of the regional centers established pursuant to Section 59-59-130;

(4)   report annually to the Governor, the General Assembly, the State Board of Education, and other appropriate governing boards on the progress, results, and compliance with the provisions of this chapter;

(5)   assist the Department of Education with the development and implementation of a communication and marketing plan to promote statewide awareness of the provisions of this chapter; and

(6)   provide input to the State Board of Education and other appropriate governing boards for the promulgation of regulations to carry out the provisions of this chapter including, but not limited to, recommended changes to high school graduation requirements, enforcement procedures, which may include monitoring and auditing functions, and penalties for noncompliance.

(C)   July 1, 2011, the council shall cease to exist.

(D)   The Education Oversight Committee shall provide staff support to the Education and Economic Development Coordinating Council.

Section 59-59-130.   (A)   Before July 1, 2006, the Education and Economic Development Council shall designate regional education centers to coordinate and facilitate the delivery of information, resources, and services to students, educators, employers, and the community.

(B)   The primary responsibilities of these centers are to:

(1)   provide services to students and adults for career planning, employment seeking, training, and other support functions;

(2)   provide information, resources, and professional development programs to educators;

(3)   provide resources to school districts for compliance and accountability pursuant to the provisions of this chapter;

(4)   provide information and resources to employers including, but not limited to, education partnerships, career-oriented learning, and training services;

(5)   facilitate local connections among businesses and those involved in education; and

(6)   work with school districts and institutions of higher education to create and coordinate workforce education programs.

(C)(1)   By the 2006-07 school year, each regional education center must have career development facilitators who shall coordinate career-oriented learning, career development, and postsecondary transitions for the schools in their respective regions.

(2)   A career development facilitator must be certified and recognized by the National Career Development Association.   (D)   The Education and Economic Development Coordinating Council, in consultation with the Department of Education, shall provide oversight to the regional centers, and the centers shall provide data and reports that the council may request.

Section 59-59-140.   Beginning with the 2006-07 academic year, colleges of education shall include in their training of teachers and administrators: career guidance, the use of the cluster of study curriculum framework and individual graduation plans, learning styles, the elements of the Career Guidance Model of the South Carolina Comprehensive Guidance and Counseling Program Model, contextual teaching, cooperative learning, and character education. The State Board of Education shall develop performance-based standards in these areas and include them as criteria for teacher program approval. By the 2009-10 school year, the teacher evaluation system established in Chapter 26 of Title 59, and the principals evaluation system established in Section 59-24-40 must include a review of performance in career exploration and contextual teaching.

Section 59-59-150.   (A)   By September 2005, the Commission on Higher Education shall convene the Advisory Committee on Academic Programs to address articulation agreements between school districts and public institutions of higher education in South Carolina to provide seamless pathways for adequately prepared students to move from high school directly into institutions of higher education. The committee shall review, revise, and recommend secondary to postsecondary articulation agreements and promote the development of measures to certify equivalency in content and rigor for all courses included in articulation agreements. The advisory committee shall include representatives from the research institutions, four-year comprehensive teaching institutions, two-year regional campuses, and technical colleges. The committee, for purposes pursuant to this chapter, shall include representation from the State Department of Education, and school district administrators, to include curriculum coordinators and guidance personnel.

(B)   By July 2006, the Advisory Committee on Academic Programs shall make recommendations to the Commission on Higher Education regarding coursework that is acceptable statewide for dual enrollment to be accepted in transfer within a related course of study. Dual enrollment college courses offered to high school students by two-year and four-year colleges and universities must be equivalent in content and rigor to the equivalent college courses offered to college students and taught by appropriately credentialed faculty. Related policies and procedures established by the Commission on Higher Education for dual enrollment and guidelines for offering dual enrollment coursework and articulation to two-year and four-year colleges and universities for awarding of credit must be followed.

(C)   The Commission on Higher Education shall report annually to the Education and Economic Development Coordinating Council regarding the committee's progress.

Section 59-59-160.   The State Board of Education, with input from the Education and Economic Development Council, shall promulgate regulations necessary to carry out the provisions of this chapter.

Section 59-59-170.   The requirements of this chapter do not apply to private schools or to home schools.

Section 59-59-180.   Each phase of implementation of this chapter is contingent upon the appropriation of adequate funding as documented by the fiscal impact statement provided by the Office of State Budget of the State Budget and Control Board. There is no mandatory financial obligation to school districts if state funding is not appropriated for each phase of implementation as provided for in the fiscal impact statement of the Office of the State Budget of the State Budget and Control Board."

SECTION   2.   Act 450 of 1994 and Section 59-52-95 of the 1976 Code are repealed.

SECTION   3.   This act takes effect upon approval by the Governor. /

Renumber sections to conform.

Amend title to conform.

Senator HAYES explained the amendment.

The amendment was adopted.

Senator SHORT proposed the following amendment (4R003.LHS), which was adopted:

Amend Section 59-59-130 by adding a new paragraph to read:

/   (D)   (1)   The regional service centers are to assume the geographic configuration of the twelve Local Workforce Investment Areas (LWIA) of the South Carolina Workforce Investment Act. Each regional center shall have an advisory board of nineteen members comprised of one school district superintendent, one high school principal, one local workforce investment board chairperson, one technical college president, one four-year college or university representative, one career center director or school district career and technology education coordinator, one parent-teacher organization representative, and twelve business and civic leaders. Appointees must reside or do business in the geographic area of the center. Appropriate local legislative delegations shall make the appointments to the regional service center boards.

(2)   The regional centers shall replace existing centers and shall include, but not be limited to, the one-stop shops, workforce investment boards, tech prep consortia, and regional instructional technology centers.     /

Renumber sections to conform.

Amend title to conform.

Senator SHORT explained the amendment.

The amendment was adopted.

Senator SHORT proposed the following amendment (4R002.LHS), which was adopted:

Amend Section 59-59-120(A) by amending the first sentence to read:

/   Section 59-59-120.   (A)   There is created the Education and Economic Development Coordinating Council to implement the statewide performance, accountability, and enforcement requirements of this chapter.     /

Renumber sections to conform.

Amend title to conform.

Senator SHORT 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
COMMITTED TO FINANCE COMMITTEE
RETAINING ITS PLACE ON THE CALENDAR

S. 165 (Word version) -- Senators Elliott, Hayes, Alexander, Fair and Richardson: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-36-925 SO AS TO PROVIDE FOR A SALES TAX ON THE GROSS PROCEEDS OF THE SALE OF ALCOHOLIC LIQUOR BY THE DRINK; TO AMEND SECTION 6-27-40 RELATING TO DISTRIBUTIONS FROM THE LOCAL GOVERNMENT FUND, SO AS TO REVISE THE AMOUNT OF THE DISTRIBUTION TO COUNTIES THAT MUST BE USED FOR ALCOHOL EDUCATION AND ALCOHOLISM AND DRUG REHABILITATION BUT TO PROVIDE THAT IN NO CASE MAY THE AMOUNT PROVIDED BE LESS THAN THE AMOUNT DISTRIBUTED IN FISCAL YEAR 2001-2002; TO AMEND SECTION 61-6-20, RELATING TO THE DEFINITIONS USED IN THE ALCOHOLIC BEVERAGE CONTROL ACT, SO AS TO PROVIDE A DEFINITION OF "ALCOHOLIC LIQUOR BY THE DRINK" AND "ALCOHOLIC BEVERAGES BY THE DRINK"; TO AMEND SECTION 61-6-700, RELATING TO ESTABLISHMENTS WHICH USE ALCOHOLIC BEVERAGES ONLY IN THE PREPARATION OF FOODS TO BE SERVED BY THE ESTABLISHMENTS, SO AS TO DELETE THE REFERENCE TO MINIBOTTLES; TO AMEND SECTIONS 61-6-1600 AND 61-6-1610, RELATING TO NONPROFIT ORGANIZATIONS AND BUSINESS ESTABLISHMENTS BEING LICENSED TO SELL ALCOHOLIC LIQUORS IN MINIBOTTLES, BOTH SO AS TO DELETE THE AUTHORIZATION TO SELL ALCOHOLIC LIQUORS IN MINIBOTTLES, TO AUTHORIZE THE SALE OF ALCOHOLIC LIQUORS BY THE DRINK, AND TO MAKE CONFORMING CHANGES, TO AMEND SECTION 61-6-1620, RELATING TO RESTRICTIONS ON MINIBOTTLE LICENSEES; SO AS TO DELETE THE RESTRICTIONS AND TO AUTHORIZE THE POSSESSION AND CONSUMPTION OF ALCOHOLIC LIQUORS IN CONTAINERS OTHER THAN MINIBOTTLES ON LICENSED PREMISES; TO AMEND SECTION 61-6-1825, RELATING TO THE PROCEDURES TO PROTEST THE ISSUANCE OR RENEWAL OF A MINIBOTTLE LICENSE, SO AS TO DELETE THE TERM "MINIBOTTLE" AND TO MAKE THE PROCEDURES APPLY TO ANY BIENNIAL LICENSE FOR ON-PREMISES CONSUMPTION; TO AMEND SECTIONS 61-6-2000 AND 61-6-2005, BOTH RELATING TO TEMPORARY PERMITS FOR NONPROFIT ORGANIZATIONS, SO AS TO PROVIDE THAT THE LICENSE AUTHORIZES THE SALE OF ALCOHOLIC LIQUORS BY THE DRINK; TO AMEND SECTION 61-6-2010 RELATING TO TEMPORARY PERMITS AUTHORIZED THROUGH A REFERENDUM, SO AS TO DELETE THE REFERENCES TO ALCOHOLIC LIQUORS "IN SEALED CONTAINERS OF TWO OUNCES OR LESS"; TO AMEND SECTION 61-6-2200, RELATING TO THE AGE OF THE SERVER OF ALCOHOLIC LIQUORS IN ON-PREMISES ESTABLISHMENTS, SO AS TO PROVIDE THE SERVER, WHO IS EIGHTEEN YEARS OF AGE OR OLDER, MAY SERVE ALCOHOLIC LIQUORS BY THE DRINK AND TO DELETE THE REFERENCE TO MINIBOTTLES; TO AMEND SECTIONS 61-6-2400 AND 61-6-2420, BOTH RELATING TO TAXATION OF ALCOHOLIC LIQUORS AND RESTAURANTS, SO AS TO DELETE THE REFERENCE TO MINIBOTTLES; TO AMEND SECTION 61-6-2600, RELATING TO THE PENALTIES FOR VIOLATING ARTICLE 5, CHAPTER 6, TITLE 61, CONCERNING THE REGULATION OF ALCOHOLIC LIQUORS IN MINIBOTTLES, SO AS TO DELETE THE REFERENCE TO MINIBOTTLES AND TO PROVIDE THAT A PERSON WHO ACTS TO AVOID THE PAYMENT OF THE SALES TAX ON THE SERVING OF ALCOHOLIC BEVERAGES BY THE DRINK IS SUBJECT TO THE PENALTIES OF THIS SECTION; TO AMEND SECTION 61-12-10, RELATING TO THE DISBURSEMENT OF REVENUE FOR EDUCATION PROGRAMS ABOUT ALCOHOLIC LIQUORS AND REHABILITATION OF ALCOHOLICS AND DRUG ADDICTS, SO AS TO CONFORM A STATUTORY REFERENCE; AND TO PROVIDE THAT ALL STATUTES AND REGULATIONS CONCERNING MINIBOTTLE LICENSES OR PERMITS APPLY TO THE LICENSE OR PERMIT TO SELL ALCOHOLIC LIQUORS BY THE DRINK AND TO PROVIDE THAT MINIBOTTLE LICENSES OR PERMITS IN EFFECT ON THE EFFECTIVE DATE OF THIS ACT ARE DEEMED TO BE PERMITS FOR ALCOHOLIC LIQUOR BY THE DRINK AFTER THE EFFECTIVE DATE OF THIS ACT; TO REPEAL SECTION 12-33-245, RELATING TO THE TWENTY-FIVE CENTS EXCISE TAX ON MINIBOTTLES.

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 (JUD0165.015), which was adopted:

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

/   TO AMEND SECTION 12-33-245, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ALCOHOL TAXES, SO AS TO PROVIDE FOR AN EXCISE TAX ON THE GROSS PROCEEDS OF THE SALE OF ALCOHOLIC LIQUOR BY THE DRINK AND TO PROVIDE FOR DISTRIBUTIONS FROM THE LOCAL GOVERNMENT FUND TO REVISE THE AMOUNT OF THE DISTRIBUTION TO COUNTIES THAT MUST BE USED FOR ALCOHOL EDUCATION AND ALCOHOLISM AND DRUG REHABILITATION BUT TO PROVIDE THAT IN NO CASE MAY THE AMOUNT PROVIDED BE LESS THAN THE AMOUNT DISTRIBUTED IN FISCAL YEAR 2003-2004; TO AMEND SECTION 12-36-90, RELATING TO THE GROSS PROCEEDS OF SALE, SO AS TO EXEMPT THE EXCISE TAX FOR ALCOHOLIC LIQUOR BY THE DRINK; TO AMEND SECTIONS 61-4-120, 61-4-570, 61-4-770, AND 61-4-1720, RELATING TO PROVISIONS CONCERNING BEER, ALE, PORTER AND WINE, SO AS TO DELETE THE REFERENCES TO MINIBOTTLES AND TO REQUIRE THAT WINES OF MORE THAN TWENTY-ONE PERCENT ALCOHOL ARE SOLD IN RETAIL LIQUOR STORES ONLY; TO AMEND SECTION 61-6-20, RELATING TO THE DEFINITIONS USED IN THE ALCOHOLIC BEVERAGE CONTROL ACT, SO AS TO PROVIDE A DEFINITION OF "ALCOHOLIC LIQUOR BY THE DRINK" AND "ALCOHOLIC BEVERAGES BY THE DRINK"; TO AMEND SECTION 61-6-185, RELATING TO THE PROCEDURES TO PROTEST THE ISSUANCE OR RENEWAL OF A RETAIL LIQUOR LICENSE, SO AS TO AMEND ADMINISTRATIVE LAW JUDGE DIVISION TO ADMINISTRATIVE LAW COURT; TO AMEND SECTION 61-6-700, RELATING TO ESTABLISHMENTS WHICH USE ALCOHOLIC BEVERAGES ONLY IN THE PREPARATION OF FOODS TO BE SERVED BY THE ESTABLISHMENTS, SO AS TO DELETE THE REFERENCE TO MINIBOTTLES; TO AMEND SECTION 61-6-1500, RELATING TO RETAIL DEALERS' LICENSES, SO AS TO DELETE THE RESTRICTIONS ON THE SIZE OF CONTAINERS OF ALCOHOLIC LIQUORS TO BE SOLD BY RETAIL DEALERS, TO AMEND THE RESTRICTIONS ON SALE AND DELIVERY OF ALCOHOLIC LIQUORS TO THE HOURS BETWEEN SEVEN P.M. AND SEVEN A.M., AND TO AMEND THE PENALTIES FOR UNLAWFULLY REFILLING OR TAMPERING WITH ALCOHOLIC LIQUORS; TO AMEND SECTION 61-6-1540, RELATING TO NONALCOHOLIC MERCHANDISE, SO AS TO AMEND THE AMOUNT OF ALCOHOLIC PERCENTAGE OF WINE TO BE SOLD IN LIQUOR STORES FROM FOURTEEN PERCENT TO TWENTY-ONE PERCENT IN ORDER TO CONFORM WITH THE DEFINITION OF NONALCOHOLIC BEVERAGES IN SECTION 61-4-10; TO AMEND SUBARTICLE 1, ARTICLE 5, CHAPTER 6, TITLE 61, RELATING TO BIENNIAL MINIBOTTLE LICENSES AND LICENSEES, SO AS TO DELETE THE REFERENCES TO MINIBOTTLES; TO AMEND SECTIONS 61-6-1600 AND 61-6-1610, RELATING TO NONPROFITS AND BUSINESS ESTABLISHMENTS, SO AS TO DELETE THE AUTHORIZATION TO SELL ALCOHOLIC LIQUORS IN MINIBOTTLES, TO AUTHORIZE THE SALE OF ALCOHOLIC LIQUORS BY THE DRINK, TO PROVIDE PENALTIES FOR UNLAWFULLY REFILLING OR TAMPERING WITH BOTTLES OF ALCOHOLIC LIQUORS, AND TO MAKE CONFORMING CHANGES; TO AMEND SECTION 61-6-1620, RELATING TO RESTRICTIONS ON MINIBOTTLE LICENSEES, SO AS TO DELETE THE RESTRICTIONS AND TO AUTHORIZE THE POSSESSION AND CONSUMPTION OF ALCOHOLIC LIQUORS IN CONTAINERS OTHER THAN MINIBOTTLES ON LICENSED PREMISES; TO AMEND SECTION 61-6-1630, RELATING TO THE PURCHASE OF ALCOHOLIC LIQUORS, SO AS TO PROVIDE THAT RETAIL DEALERS WITH FEDERAL WHOLESALE BASIC PERMITS MAY DELIVER ALCOHOLIC LIQUORS TO ESTABLISHMENTS LICENSED TO SELL ALCOHOLIC LIQUORS FOR ON-PREMISES CONSUMPTION; TO AMEND SECTION 61-6-1825, RELATING TO THE PROCEDURES TO PROTEST THE ISSUANCE OR RENEWAL OF A MINIBOTTLE LICENSE, SO AS TO DELETE THE TERM "MINIBOTTLE" AND TO MAKE THE PROCEDURES APPLY TO ANY BIENNIAL LICENSE FOR ON-PREMISES CONSUMPTION; TO AMEND SECTIONS 61-6-2000 AND 61-6-2005, BOTH RELATING TO TEMPORARY PERMITS FOR NONPROFIT ORGANIZATIONS, SO AS TO PROVIDE THAT THE LICENSE AUTHORIZES THE SALE OF ALCOHOLIC LIQUORS BY THE DRINK; TO AMEND SECTION 61-6-2010, RELATING TO TEMPORARY PERMITS AUTHORIZED THROUGH A REFERENDUM, SO AS TO DELETE THE REFERENCES TO ALCOHOLIC LIQUORS "IN SEALED CONTAINERS OF TWO OUNCES OR LESS" AND TO ALLOW A REFERENDUM FOR TEMPORARY PERMITS FOR THE SALE OF BEER AND WINE; TO AMEND SECTION 61-6-2200, RELATING TO THE AGE OF THE SERVER OF ALCOHOLIC LIQUORS IN ON-PREMISES ESTABLISHMENTS, SO AS TO PROVIDE THAT THE SERVER, WHO IS EIGHTEEN YEARS OF AGE OR OLDER, MAY SERVE ALCOHOLIC LIQUORS BY THE DRINK AND TO DELETE THE REFERENCES TO MINIBOTTLES; TO AMEND SECTION 61-6-2210, RELATING TO THE BREAKING OF THE SEAL OF A MINIBOTTLE, SO AS TO REQUIRE THE BREAKING OF THE SEAL BY THE PURCHASER OR SELLER WHEN THE MINIBOTTLE IS BEING SOLD FOR ON-PREMISES CONSUMPTION; TO AMEND SECTIONS 61-6-2220 AND 61-6-2230, RELATING TO ESTABLISHMENTS LICENSED TO SELL ALCOHOLIC LIQUORS, SO AS TO DELETE THE REFERENCES TO MINIBOTTLES; TO AMEND SECTIONS 61-6-2400 AND 61-6-2420, BOTH RELATING TO TAXATION OF ALCOHOLIC LIQUORS AND RESTAURANTS, SO AS TO DELETE THE REFERENCES TO MINIBOTTLES; TO AMEND SECTION 61-6-2600, RELATING TO THE REGULATION OF ALCOHOLIC LIQUORS IN MINIBOTTLES, SO AS TO DELETE THE REFERENCE TO MINIBOTTLES AND TO PROVIDE THAT A PERSON WHO ACTS TO AVOID THE PAYMENT OF THE SALES TAX ON THE SERVING OF ALCOHOLIC BEVERAGES BY THE DRINK IS SUBJECT TO THE PENALTIES OF THIS SECTION; AND TO PROVIDE THAT ALL STATUTES AND REGULATIONS CONCERNING MINIBOTTLE LICENSES OR PERMITS APPLY TO THE LICENSE OR PERMIT TO SELL ALCOHOLIC LIQUORS BY THE DRINK AND TO PROVIDE THAT MINIBOTTLE LICENSES OR PERMITS IN EFFECT ON THE EFFECTIVE DATE OF THIS ACT ARE CONSIDERED TO BE PERMITS FOR ALCOHOLIC LIQUOR BY THE DRINK AFTER THE EFFECTIVE DATE OF THIS ACT.

Be it enacted by the General Assembly:

  PART 1.

SECTION   1.   Section 12-33-245 of the 1976 Code is amended to read:

"Section 12-33-245.   (A)   In lieu of addition to taxes imposed under pursuant to the provisions of Sections 12-33-230, and 12-33-240, Article 5 of this chapter, and Chapter 36, Title 12, there is imposed an excise tax equal to five percent of the gross proceeds of the sales of alcoholic liquor liquors sold in minibottles must be taxed at the rate of twenty-five cents for each container in addition to the case tax as prescribed in Article 5 of this chapter and collected as those taxes are collected. Taxes levied in Article 3 of this chapter do not apply by the drink for on-premises consumption in an establishment licensed for sales pursuant to Article 5, Chapter 6, Title 61. All proceeds of this excise tax must be deposited to the credit of the general fund of the State. Except with respect to the distribution of the revenue of this tax, this excise tax is considered to be imposed pursuant to Chapter 36, Title 12. For purposes of this subsection, 'gross proceeds of sale' has the meaning as provided in Section 12-36-90, except that the sales tax imposed under Chapter 36, Title 12 is not included in 'gross proceeds of sales'.

(B)   Eleven percent of the revenue generated by the excise tax provided for in subsection (A) must be placed on deposit with the State Treasurer and credited to a fund separate and distinct from the general fund of the State. On a quarterly basis, the State Treasurer shall allocate this revenue to counties on a per capita basis according to the most recent United States Census. The State Treasurer must notify each county of the allocation pursuant to this subsection in addition to the funds allocated pursuant to Section 6-27-40(B), and the combination of these funds must be used by counties for educational purposes relating to the use of alcoholic liquors and for the rehabilitation of alcoholics and drug addicts. Counties A county may pool these funds with other counties and may combine these funds with other funds for the same purpose.

(C)   Those state agencies and local entities, including counties, which are allocated and receive by law minibottle tax revenues in fiscal year 2003-04 for education, prevention, and other purposes, shall receive at least the same amount of revenues from the new excise tax revenues beginning with the first full fiscal year after sales of liquor by the drink are authorized as they did from minibottle tax revenues during fiscal year 2003-04. If these state agencies and local entities do not, the difference must be made up from the general fund within sixty days after the close of each fiscal year."

SECTION   2.   Section 12-36-90(2) of the 1976 Code is amended to read by adding the following new lettered item to read:

"( )   the alcoholic liquor by the drink excise tax imposed by Section 12-33-245."

  PART   2.

SECTION   1.   Section 61-4-120 of the 1976 Code is amended to read:

"Section 61-4-120.   It is unlawful for a person to sell or offer for sale wine or beer in this State between the hours of twelve o'clock Saturday night and sunrise Monday morning. However, an establishment licensed pursuant to Article 5 of Chapter 6 is authorized to sell these products during those hours in which the sale of alcoholic liquors in minibottles by the drink is lawful. A person who violates the provisions of this section is considered guilty of a misdemeanor and, upon conviction, must be fined not more than one hundred dollars or imprisoned for not more than thirty days. The right of a person to sell wine and beer in this State under a license issued by the State must be forfeited and the license revoked upon his conviction of violating the provisions of this section."

SECTION   2.   Section 61-4-570 of the 1976 Code is amended to read:

"Section 61-4-570.   Notwithstanding any other provision of law, an establishment that holds a valid beer and wine license and a license to sell alcoholic liquors in minibottles by the drink may sell wine which is not in excess of twenty-one percent of alcohol by volume, to be consumed on the premises."

SECTION   3.   Section 61-4-770 of the 1976 Code is amended to read:

"Section 61-4-770.   Wines containing more than sixteen twenty-one percent of alcohol by volume may be sold only in licensed alcoholic liquor stores or in establishments licensed to sell and permit consumption of alcoholic liquors in minibottles by the drink."

SECTION   4.   Section 61-4-1720 of the 1976 Code is amended to read:

"Section 61-4-1720.   The brewpub permit provided for in this article is in lieu of a permit required for the manufacture of beer or sale of beer and wine including, but not limited to, a brewer's and retailer's permit. The sale of alcoholic liquors for consumption on the premises in minibottles by the drink requires an appropriate license which may be issued to the holder of a brewpub permit who meets all other qualifications for the license under this title."

  PART   3.

SECTION   1.   Section 61-6-20(1) of the 1976 Code is amended to read:

"(1)(a)   'Alcoholic liquors' or 'alcoholic beverages' means any spirituous malt, vinous, fermented, brewed (whether lager or rice beer), or other liquors or a compound or mixture thereof of them by whatever name called or known which contains alcohol and is used as a beverage, but does not include:

(a)(i)   wine when manufactured or made for home consumption and which is not sold by the maker thereof or by another person; or

(b)(ii)   a beverage declared by statute to be nonalcoholic or nonintoxicating;.

(b)   'Alcoholic liquor by the drink' or 'alcoholic beverage by the drink' means a drink poured from a container of alcoholic liquor, without regard to the size of the container for consumption on the premises of a business licensed pursuant to Article 5 of this chapter."

SECTION   2.   Section 61-6-20(5) of the 1976 Code is amended to read:

"(5)   'Minibottle' means a sealed container of two ounces fifty milliliters or less of alcoholic liquor."

SECTION   3.   Section 61-6-185 of the 1976 Code is amended to read:

"Section 61-6-185.   (A)   A person residing in the county in which a retail liquor license is requested to be granted, or a person residing within five miles of the location for which a retail liquor license is requested, may protest the issuance or renewal of the license if he files a written protest setting forth providing:

(1)   the name, address, and telephone number of the person filing the protest;

(2)   the name of the applicant for the license and the address of the premises sought to be licensed, or the name and address of the license holder if the application is for renewal;

(3)   the specific reasons why the application should be denied; and

(4)   whether or not he wishes to attend a contested case hearing before the Administrative Law Judge Division Court.

(B)   Upon receipt of a timely filed protest, the department shall determine the protestant's intent to attend a contested hearing before the Administrative Law Judge Division Court. If the protestant intends to attend a contested hearing, the department may not issue the permanent license but shall forward the file to the Administrative Law Judge Division Court.

(C)   If the protestant during the investigation expresses no desire to attend a contested hearing and offer testimony, the protest is deemed invalid, and the department shall continue to process the application and shall issue the license if all other statutory requirements are met.

(D)   A person who files a protest and fails to appear at a hearing after affirming a desire to attend the hearing may be assessed a penalty to include court costs."

SECTION   4.   Section 61-6-700 of the 1976 Code is amended to read:

"Section 61-6-700.   An establishment which offers meals to the public must be licensed by the department to purchase and possess liqueurs, wines, and similar alcoholic beverages used solely only in the cooking and preparing of foods served by the establishment. Application for the license must be in a form and under conditions prescribed by the department. The license fee is fifty dollars. A person violating this section is guilty of a misdemeanor and, upon conviction, must be fined five hundred dollars, and other licenses he holds from the department under pursuant to the provisions of this title must be revoked.

The license provided in this section does not alter or limit the privileges or responsibilities for holders of licenses issued to authorize the possession, sale, and consumption of alcoholic liquors in minibottles under by the drink pursuant to the provisions of Article 5 of this chapter. Establishments so licensed may use alcoholic liquors in the preparation of food without obtaining the license provided for in this section if only liquors in minibottles are used in the food preparation."

SECTION   5.   Section 61-6-1500 of the 1976 Code is amended to read:

"Section 61-6-1500.   (A) No A retail dealer may:

(1)   sell, offer for sale, barter, exchange, give, transfer, or deliver or permit to be sold, bartered, exchanged, given, transferred, or delivered alcoholic liquors in less quantities than two hundred milliliters;

(2)   own or keep in his possession alcoholic liquors in separate containers containing less than two hundred milliliters;

(3)   notwithstanding items (1) and (2), a retail dealer may sell, offer for sale, barter, exchange, give, transfer, deliver, permit to be sold, own, or keep in his possession alcoholic liquors in separate containers containing one hundred milliliters provided that such containers are packaged together into a single unit of not less than four one hundred milliliter containers without regard to the size of the container;

(4)(2)   not sell, barter, exchange, give, transfer, or deliver, offer for sale, barter, or exchange or permit the sale, barter, exchange, gift, transfer, or delivery of alcoholic liquors:

(a)   between the hours of 7:00 p.m. and 9:00 7:00 a.m.;

(b)   for consumption on the premises;

(c)   to a person under twenty-one years of age;

(d)   to an intoxicated person; or

(e)   to a mentally incompetent person;

(5)(3)   not permit the drinking of alcoholic liquors in his store or place of business;

(6)(4)   not sell alcoholic liquors on credit; however, this item does not prohibit payment by electronic transfer of funds if:

(a)   the transfer of funds is initiated by an irrevocable payment order on or before delivery of the alcoholic liquors; and

(b)   the electronic transfer is initiated by the retailer no later than one business day after delivery; or

(7)(5)   not redeem proof-of-purchase certificates for any promotional item.

However, during restricted hours retail dealers are permitted to receive, stock, and inventory merchandise, provide for maintenance and repairs, and other necessary, related functions that do not involve the sale of alcoholic liquors.

(B)(1)   The provisions of subsection (A) relating to quantities of less than two hundred milliliters do not apply to:

(a)   minibottles when authorized by law to be sold to persons licensed to sell minibottles for on-premises consumption; or

(b)   minibottles sold for consumption on commercial aircraft engaged in interstate commerce.

(2)   It is unlawful for a person licensed to sell alcoholic liquors under pursuant to the provisions of this section to knowingly and willfully refill, partially refill, or reuse a bottle of lawfully purchased alcoholic liquor, or otherwise tamper with the contents of the bottle a minibottle.

(2)   A person who violates the provisions of this section is guilty of a misdemeanor and, upon conviction:

(a)   for a first offense, must be fined five hundred dollars or imprisoned for not more than thirty days, or both;

(b)   for a second or subsequent offense, must be fined one thousand dollars or imprisoned not more than six months, or both.

(3)   In addition to the penalties provided in subsection (B), a violation of this section may subject the licensee or permit holder to revocation or suspension of the license or permit by the department.

(4)   The possession of a refilled or reused bottle or other container of alcoholic liquors is prima facie evidence of a violation of this section. A person who violates this provision must, upon conviction, have his license revoked permanently.

(3)(C)   A retail dealer must keep a record of all sales of alcoholic liquors sold in minibottles to establishments licensed for on-premises consumption. The record must include the name of the purchaser and the date and quantity of the sale by brand and bottle size.

(4)(D)   It is unlawful to sell minibottles alcoholic liquors except during lawful hours of operation.

(5)   A retail dealer who sells alcoholic liquors in minibottles to a person not licensed under Article 5 of this chapter is guilty of a misdemeanor and, upon conviction, must be fined not more than one thousand dollars and his retail dealer's license may be suspended or revoked in the discretion of the department. As used in this subsection, `a person licensed under Article 5 of this chapter' includes a person's designated agent as a purchaser."

SECTION   6.   Section 61-6-1540 of the 1976 Code is amended to read:

"Section 61-6-1540.   (A)   Except as provided in subsection (B), no other goods, wares, or merchandise may be kept or stored in or sold in or from a retail alcoholic liquor store or place of business, and no place of amusement may be maintained in or in connection with the store. However, retail dealers may sell:

(1)   drinking glassware packaged together with alcoholic liquors if the glassware and alcoholic liquors are packaged together by the wholesaler or producer in packaging provided by the producer;

(2)   nonalcoholic items, other than beer or wine, packaged together with alcoholic liquors if the nonalcoholic items and alcoholic liquors are in sealed packages and are packaged together by the alcoholic liquor producer at its place of business; and

(3)   lottery tickets under the provisions of Chapter 150 of Title 59.

(B)   Retail dealers licensed under the ABC Act pursuant to the provisions of this article may sell all wines in the stores or places of business covered by their respective licenses, whether declared alcoholic or nonalcoholic or nonintoxicating by the laws of this State. Wines containing more than fourteen twenty-one percent of alcohol by volume may be sold only in licensed alcoholic liquor stores or in establishments licensed to sell and permit consumption of alcoholic liquors in minibottles by the drink. The provisions of this section must not be construed to amend, alter, or modify the taxes imposed on wines or the collection and enforcement of these taxes."

  PART   4.

SECTION   1.   Subarticle 1, Article 5, Chapter 6, Title 61 of the 1976 Code is amended to read:

  "Article 5

Regulation of Alcoholic Liquors in Minibottles

Subarticle 1

Biennial Minibottle Licenses and Licensees

Section 61-6-1600.   (A)   A nonprofit organization which is licensed by the department pursuant to the provisions of this article may sell alcoholic liquors in minibottles by the drink. A member or guest of a member of a nonprofit organization may consume alcoholic liquors sold in minibottles by the drink upon the premises between the hours of ten o'clock in the morning and two o'clock the following morning.

(B)   An employee or agent of an establishment licensed as a nonprofit organization is prohibited from selling, making available for sale, or permitting the consumption of alcoholic liquors on the licensed premises between the hours of two o'clock in the morning and ten o'clock in the morning. A violation of this provision is a violation against the organization's license.

Section 61-6-1610.   (A)   Except on Sunday, it is lawful to sell and consume alcoholic liquors sold in minibottles by the drink in a business establishment between the hours of ten o'clock in the morning and two o'clock the following morning if the establishment meets the following requirements:

(1)   the business is bona fide engaged primarily and substantially in the preparation and serving of meals or furnishing of lodging; and

(2)   the business has a license from the department authorizing the sale and consumption of alcoholic liquors by the drink, which is conspicuously displayed conspicuously on the main entrance to the premises and clearly visible from the outside.

(B)   Notwithstanding any other provision of this article, the licensed premises of a business establishment which is bona fide engaged primarily and substantially in the preparation and service of meals and which holds a valid license for the sale and consumption of alcoholic liquors in minibottles by the drink do not extend to any portion of the business establishment or the property upon which it is located which is designed as or used for a parking area even though food may be served in the area.

(C)   An establishment licensed under pursuant to this article may use alcoholic liquors in the preparation of food without obtaining the license provided for in Section 61-6-700 if only liquors in minibottles are used in the food preparation.

(D)   Any licensee, employee, or agent of an establishment licensed as a food service establishment or place of lodging is prohibited from selling, making available for sale, or permitting the consumption of alcoholic liquors on the licensed premises between the hours of two o'clock in the morning and ten o'clock in the morning. However, any licensee, employee, or agent of an establishment licensed as a food service establishment or place of lodging is prohibited from selling, making available for sale, or permitting the consumption of alcoholic liquors on Sunday unless the establishment has been issued for that Sunday a temporary permit pursuant to the provisions of Section 61-6-2010. A violation of this subsection is a violation against the establishment's license.

(E)   It is unlawful for a person licensed to sell alcoholic liquor by the drink pursuant to the provisions of this section to knowingly and willfully refill, partially refill, or reuse a bottle of lawfully purchased alcoholic liquor, or otherwise tamper with the contents of the bottle.

(1)   A person who violates the provisions of this section is guilty of a misdemeanor and, upon conviction:

(a)   for a first offense, must be fined five hundred dollars or imprisoned for not more than thirty days, or both;

(b)   for a second or subsequent offense, must be fined one thousand dollars or imprisoned for not more than six months, or both.

(F)   In addition to the penalties provided in subsection (E), a violation of this section may subject the licensee or permit holder to revocation or suspension of the license or permit by the department.

(G)   The possession of a refilled or reused bottle or other container of alcoholic liquors is prima facie evidence of a violation of this section. A person who violates this provision must, upon conviction, have his license revoked permanently.

Section 61-6-1620.   (A)   This article must not be construed to authorize authorizes the possession or consumption of alcoholic liquors in containers other than minibottles on premises open to the general public for which a license has been obtained pursuant to Sections 61-6-1600 or 61-6-1610.

(B)   Alcoholic liquors may be possessed or consumed in separate and private areas of an establishment whether or not the establishment includes premises which are licensed pursuant to Sections 61-6-1600 or 61-6-1610, where specific individuals have leased these areas for a function not open to the general public.

Section 61-6-1630.   (A)   Alcoholic liquors in minibottles as authorized to be sold under this article must be purchased only by a person licensed under this article, in case lots, and only from licensed retail dealers. As used in this section, `a person licensed under this article' includes his designated agent as a purchaser. A licensed retail dealer with a wholesaler's basic permit issued pursuant to the Federal Alcohol Administration Act may deliver, in sealed containers, alcoholic liquors to the location of the person licensed under this article to sell alcoholic liquor by the drink for on-premises consumption.

(B)   No person licensed under the provisions of this article may be licensed as a retail dealer on the same premises A person licensed to sell alcoholic liquor by the drink for on-premises consumption must not be licensed as a retail dealer on the same premises.

Section 61-6-1640.   Notwithstanding the provisions of this subarticle or any other provision of law, an establishment licensed pursuant to Article 5 of this chapter is authorized to conduct samplings of wines in excess of sixteen percent alcohol, cordials, and distilled spirits, if the sampling is conducted as follows:

(1)   the establishment must have a permanent seating capacity of fifty or more persons;

(2)   samples may not be offered from more than four products at any one time;

(3)   the sampling must be held in the bar area of a licensed establishment and all open bottles must be visible at all times. All open bottles must be removed at the conclusion of the tasting;

(4)   samples must be less than one-half ounce for each product sampled;

(5)   a person may not be served more than one sample of each product;

(6)   sampling may not be offered for more than four hours;

(7)   at least five days before the sampling, a letter detailing the specific date and hours of the sampling must be mailed first class to the South Carolina Law Enforcement Division;

(8)   a sample may not be offered to, or allowed to be consumed by, an intoxicated person or a person under the age of twenty-one years;

(9)   a licensed establishment may not offer more than one sampling each day; and

(10)   the sampling must be conducted by the manufacturer or wholesaler or an agent of the manufacturer or wholesaler."

SECTION   2.   Section 61-6-1825 of the 1976 Code is amended to read:

"Section 61-6-1825.   A person residing in the county in which a minibottle license issued pursuant to subarticle 1 of this article is requested to be granted, or a person residing within five miles of the location for which a minibottle permit issued pursuant to subarticle 1 of this article is requested, may protest the issuance or renewal of the license if he files a written protest setting forth providing:

(1)   the name, address, and telephone number of the person filing the protest;

(2)   the name of the applicant for the license and the address of the premises sought to be licensed, or the name and address of the license holder if the application is for renewal;

(3)   the specific reasons why the application should be denied; and

(4)   whether or not he wishes to attend a contested case hearing before the Administrative Law Judge Division Court.

(B)   Upon receipt of a timely filed protest, the department shall must determine the protestant's intent to attend a contested hearing before the Administrative Law Judge Division Court. If the protestant intends to attend a contested hearing, the department may must not issue the permanent license but shall must forward the file to the Administrative Law Judge Division Court.

(C)   If the protestant during the investigation expresses no desire to attend a contested hearing and offer testimony, the protest is deemed invalid, and the department shall continue to process the application and shall issue the license if all other statutory requirements are met.

(D)   A person who files a protest and fails to appear at a hearing after affirming a desire to attend the hearing may be assessed a penalty to include court costs."

SECTION   3.   Section 61-6-2000 of the 1976 Code is amended to read:

"Section 61-6-2000.   In addition to the minibottle licenses authorized under pursuant to subarticle 1 of this article, the department also may also issue a temporary license for a period not to exceed twenty-four hours to nonprofit organizations which authorizes these organizations to purchase and sell at a single social occasion alcoholic liquors in minibottles by the drink. Notwithstanding any other provision of this article, the issuance of this permit authorizes the organization to purchase alcoholic liquors in minibottles from licensed retail dealers in the same manner that persons with biennial minibottle licenses issued pursuant to the provisions of subarticle 1 of this article are authorized to make these purchases. The fee for the permit is thirty-five dollars payable at the time of application. The permit application must include a statement by the applicant as to the amount of alcoholic liquors to be purchased and the nature and date of the social occasion at which they are to be sold. The issuance or nonissuance of permits authorized under pursuant to this section is within the sole discretion of the department."

SECTION   4.   Section 61-6-2005(A) of the 1976 Code is amended to read:

"(A)   A person who purchases or acquires by lease, inheritance, divorce decree, eviction, or otherwise a retail business which sells alcoholic liquors in sealed containers of two ounces or less by the drink from a holder of a license to sell alcoholic liquors in sealed containers of two ounces or less by the drink at the business, upon initiating the application process for a permanent license, may be issued a temporary license by the department at the time of the purchase or acquisition if the location for which the temporary license is sought is not considered by the department to be a public nuisance and the applicant:

(1)   the applicant currently holds a valid license to sell alcoholic liquors in sealed containers of two ounces or less by the drink; or

(2)   the applicant has had a criminal history background check conducted by the State Law Enforcement Division within the past thirty days."

SECTION   5.   Section 61-6-2010 of the 1976 Code is amended to read:

"Section 61-6-2010.   (A)   In addition to the provisions of Section 61-6-2000, the department may issue a temporary permit to allow the possession, sale, and consumption of alcoholic liquors in sealed containers of two ounces or less by the drink. This permit is valid for a period not to exceed twenty-four hours and may be issued only to bona fide nonprofit organizations and business establishments otherwise authorized to be licensed for sales. The department shall charge a nonrefundable filing fee of one hundred dollars for processing each application and a daily permit fee of fifty dollars for each day for which a permit is approved. An application must be filed for each permit requested. The department must also offer the option of an annual fifty-two week temporary permit for a nonrefundable fee of three thousand dollars per year. However, the optional fifty-two week permit must not extend beyond the expiration date of the biennial license issued pursuant to this chapter. If the expiration date is less than fifty-two weeks from the date of the application for the optional fifty-two week permit, the department must prorate the three thousand dollar fee on a monthly basis. The department in its sole discretion shall specify the terms and conditions of the permit.

(B)(1)   The filing and permit fees must be distributed by the State Treasurer to the municipality or county in which the retailer who paid the fee is located. The revenue may be used only by the municipality or county for the following purposes:

(a)   capital improvements to tourism-related buildings including, but not limited to, civic centers, convention centers, coliseums, aquariums, stadiums, marinas, parks, and recreational facilities;

(b)   purchase or renovation of buildings which are historic properties as defined in Section 60-12-10(4) and (5);

(c)   festivals which have a demonstrable and significant impact on tourism;

(d)   local youth mentor programs to serve juvenile offenders under the jurisdiction of the family court;

(e)   contributions to matching funds necessary for a local government or entity to receive funding from the Legacy Trust Fund pursuant to Chapter 22, of Title 51;

(f)   contributions to a redevelopment authority pursuant to Section 31-12-10, et seq. Chapter 12, Title 31;

(g)   acquiring fee and less than fee interest in land while it is still available to be held in perpetuity as wildlife preserves or believed to be needed by the public in the future for active and passive recreation uses and scenic easements, to include the following types of land: ocean, harbor, and pond frontage in the form of beaches, dunes, and adjoining backlands; barrier beaches; fresh and saltwater marshes and adjoining uplands; land for bicycle paths; land protecting existing and future public water supply, well fields, highway buffering and aquifer recharge areas; land for wildlife preserves; and land for future public recreational facilities;

(h)   nourishment, renourishment (resanding), and maintenance of beaches;

(i)     dune restoration, including the planting of grass, sea oats, or other vegetation useful in preserving the dune system;

(j)     maintenance of public beach access;

(k)   capital improvements to the beaches and beach-related facilities, such as public parking areas for beach access; dune walkovers and rest room facilities, with or without changing rooms, at public beach parks; and

(l)     construction and maintenance of drainage systems.

(2)   The revenue may not be used for operating expenses of tourism-related buildings.

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

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

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

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

(2)   A referendum for this purpose may not be held more often than once in forty-eight months.

(3)   The expenses of any such referendum must be paid by the county or municipality conducting the referendum.

(D)(1)   The municipal governing body may order a referendum on the question of the issuance of temporary permits to allow the possession, sale, and consumption of alcoholic liquors in sealed containers of two ounces or less by the drink in the following circumstances:

(a)   parts of the municipality are located in more than one county;

(b)   as a result of a favorable vote in a county referendum held pursuant to this section, permits may be issued in only the parts of the municipality located in that county; and

(c)   the proposed referendum would authorize issuance of permits in the remaining parts of the municipality.

(2)   The method of ordering a referendum provided in this subsection is in addition to the petition method provided in subsection (C). An unfavorable vote in a municipal referendum does not affect the authority to issue these permits in the part of the municipality located in a county where these permits may be issued.

(3)   Upon receipt of a copy of the ordinance filed with the municipal election commission at least sixty days before the date of the general election, the commission must conduct the referendum at the time of the general election and publish and certify its results in the same manner as provided in subsection (C). Subsection (C)(2) does not apply to this referendum."

  PART   5.

SECTION   1.   Subarticle 7, Article 5, Chapter 6, Title 61 of the 1976 Code is amended to read:

  "Subarticle 7

Provisions Relating to Sales, Delivery, and Consumption of Liquor in Minibottles

Section 61-6-2200.     No A person may not serve or deliver to a purchaser of alcoholic liquors in minibottles by the drink in a business where these sales are authorized unless the person is eighteen years of age or older;. Nothing contained in this section may be construed as allowing bartenders under the age of twenty-one.

Section 61-6-2210.   The purchaser of a minibottle for on-premises consumption must break the seal of a minibottle unless the seller breaks the seal in the presence of the purchaser and delivers the container.

Section 61-6-2220.   No person or establishment licensed to sell alcoholic beverages liquors or liquor by the drink pursuant to this article may sell these beverages to persons in an intoxicated condition; these sales are considered violations of the provisions thereof and subject to the penalties contained herein.

Section 61-6-2230.   (A)   No person licensed to sell alcoholic beverages liquors or liquor by the drink pursuant to this article may knowingly conduct, operate, organize, promote, advertise, run, or participate in a `drinking contest' or `drinking game'.

(B)   For purposes of this section, `drinking contest' or `drinking game' includes, but is not limited to, a contest, game, event, or other endeavor which encourages or promotes the consumption of alcoholic beverages by participants at extraordinary speed or in increased quantities or in more potent form. `Drinking contest' or `drinking game' does not include a contest, game, event, or endeavor in which alcoholic beverages are not used or consumed by participants as part of the contest, game, event, or endeavor but instead are used solely as a reward or prize. Selling alcoholic beverages in the regular course of business is not considered a violation of this section."

SECTION   2.   Section 61-6-2400 of the 1976 Code is amended to read:

"Section 61-6-2400.   Alcoholic liquors sold in minibottles by the drink must be taxed pursuant to Chapter 33 of, Title 12."

SECTION   3.   Section 61-6-2420 of the 1976 Code is amended to read:

"Section 61-6-2420.   This article does not authorize a Class B Restaurant to sell, dispense, barter, or trade in minibottles alcoholic liquors by the drink. The law controlling Class B Restaurants in reference to the sale or dispensing of alcoholic liquors is not affected in any manner."

SECTION   4.   Section 61-6-2600 of the 1976 Code is amended to read:

"Section 61-6-2600.   A Except as otherwise provided in this title, a person who transports, possesses, or consumes alcoholic liquors except in a manner permitted by this article or a person who violates any of the provisions thereof of this article is guilty of a misdemeanor and, upon conviction, must be fined not more than one hundred dollars or imprisoned for not more than thirty days. In addition, a person licensed to sell alcoholic liquors pursuant to the provisions of this article who has in his possession on his licensed premises alcoholic liquors in containers other than minibottles, except wine as authorized for sale under Section 61-6-1540(B), or who displays minibottles when the seals are broken acts to avoid the payment of the excise tax levied on the serving of alcoholic beverages by the drink provided for in Chapter 33, Title 12 or who violates any other provision of this article must:

(1)   for a first offense be fined not less than two hundred dollars nor more than five hundred dollars or have his license suspended for not more than thirty days, or both;

(2)   for a second offense within three years of the first offense be fined not less than two hundred dollars nor more than five hundred dollars or have his license suspended for not more than one hundred eighty days, or both;

(3)   for a third offense within three years of the first offense be fined not less than five hundred dollars and have his license revoked permanently; or

(4)   for a violation involving the avoidance of taxes, a fine of be fined not less than one thousand dollars and permanent revocation of his license."

  PART   6.

SECTION   1.   This act establishes a license to sell alcoholic liquors by the drink. All statutes and regulations applicable to minibottle licenses or permits or applications for licenses or permits apply to licenses or permits for alcoholic liquors by the drink. All minibottle licenses or permits in effect before the effective date of this act are considered to be licenses or permits to sell alcoholic liquors by the drink after the effective date of this act through the expiration of the license or permit.

SECTION   2.   If any section, subsection, item, subitem, paragraph, subparagraph, sentence, clause, phrase, or word of the 1976 Code as added by this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of the chapter, the General Assembly hereby declaring that it would have passed each and every section, subsection, item, subitem, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, items, subitems, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

SECTION   3.   This act takes effect on January 1, 2006. Each person licensed pursuant to the Alcoholic Beverage Act to sell or purchase minibottles must take an inventory of minibottles in the licensee's possession as of the effective date and send within sixty days a certified copy of the inventory to the Department of Revenue. By no later than January 1, 2006, the department must devise a method whereby the twenty-five cents excise tax on minibottles previously paid by the licensees is credited to each licensee so that on or after the effective date, the tax rate paid on each minibottle is prorated in accordance with the terms of this act.   /

Renumber sections to conform.

Amend title to conform.

Senator RITCHIE explained the committee amendment.

The committee amendment was adopted.

Senator McCONNELL moved to commit the Bill to the Committee on Finance, retaining its place on the Calendar.

There was no objection and the Bill was committed to the Committee on Finance.

COMMITTEE AMENDMENT ADOPTED
CARRIED OVER

S. 414 (Word version) -- Senators Moore and Setzler: A BILL TO AMEND SECTION 59-149-50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ELIGIBILITY FOR LIFE SCHOLARSHIPS, SO AS TO REVISE ELIGIBILITY AND RETENTION REQUIREMENTS FOR THE SCHOLARSHIP BY INCLUDING A REQUIREMENT THAT THE CUMULATIVE GRADE POINT AVERAGE CALCULATION, FOR PURPOSES OF LIFE SCHOLARSHIP ELIGIBILITY, MUST BE INCLUSIVE OF THE STUDENT'S GRADE POINT AVERAGE AT ALL PUBLIC OR INDEPENDENT INSTITUTIONS ATTENDED BY THE STUDENT.

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

The Committee on Education proposed the following amendment (PT\2439SJ05), which was adopted:

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

/ SECTION   1.   1.   Section 59-149-50(B) of the 1976 Code is amended to read:

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

2.   The provisions of Section 59-149-50(B) of the 1976 Code, as amended by this act, apply with regard to LIFE Scholarships awarded beginning with the 2004 fall semester.

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

Renumber sections to conform.

Amend title to conform.

Senator SETZLER explained the committee amendment.

The committee amendment was adopted.

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

COMMITTEE AMENDMENT AMENDED, OBJECTION

S. 482 (Word version) -- Senators Patterson, Lourie and Jackson: A BILL TO AMEND SECTION 59-149-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LIFE SCHOLARSHIPS, SO AS TO REVISE THE INSTITUTIONS WHICH ARE QUALIFIED TO RECEIVE LIFE SCHOLARSHIP FUNDS.

Senator HUTTO and SHEHEEN proposed the following amendment (482-HUTTO), which was adopted:

Amend the committee report, as and if amended, page 2, after line 3 by adding an appropriately numbered SECTION to read:

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

/   "(A)   To be eligible for a LIFE Scholarship, a student must be either a student who has graduated member of a class graduating from a high school located in this State, a student who has completed at least three of the final four years of high school within this State, a home school student who has successfully completed a high school home school program in this State in the manner required by law, or a student who has graduated graduating from a preparatory high school outside this State, while a dependent of a parent or guardian who is a legal resident of this State and has custody of the dependent or a student whose parent or guardian has served in or has retired from one of the United States Armed forces within the last four years, paid income taxes in this State for a majority of the years of service, and is a resident of this State. These students also must meet the requirements of subsection (B) and be eligible for in-state tuition and fees as determined pursuant to Chapter 112 of Title 59 and applicable regulations. In addition, beginning with the 1998-1999 school year for those students who graduate from high school on or after May 1998 the student must have graduated from high school with a minimum of a 3.0 cumulative grade average on a 4.0 scale and have scored 1000 or better on the Scholastic Aptitude Test (SAT) or have the equivalent ACT score, 1050 or better, beginning with school year 2000-2001, and 1100 or better, beginning with school year 2002-2003; provided that, if the student is to attend such a public or independent two-year college or university in this State, including a technical college, the SAT requirement does not apply. If a student chooses to attend such a public or independent institution of this State and does not make the required SAT score or the required high school grade point average, as applicable, the student may earn a LIFE Scholarship after his freshman year if he meets the grade point average and semester credit hour requirements of subsection (B)."     /

Renumber sections to conform.

Amend title to conform.

Senator HUTTO explained the amendment.

The amendment was adopted.

Senator RITCHIE objected to further consideration of the Bill.

S. 482--Co-Sponsor Added

On motion of Senator FORD, with unanimous consent, the name of Senator FORD was added as a co-sponsor of S. 482.

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

RECALLED
RECOMMITTED TO COMMITTEE ON JUDICIARY
RETAINING ITS PLACE ON THE CALENDAR

H. 3133 (Word version) -- Reps. Delleney, Harrison, Altman, Simrill, Taylor, Vaughn, Davenport, Sandifer, Barfield, Owens, E.H. Pitts, Rice, Clark, Walker, Toole, Viers, M.A. Pitts, Vick, Littlejohn, Coates, Wilkins and Mahaffey: A JOINT RESOLUTION TO PROPOSE AN AMENDMENT TO ARTICLE XVII OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO MISCELLANEOUS MATTERS, BY ADDING SECTION 15, SO AS TO PROVIDE THAT MARRIAGE IS EXCLUSIVELY DEFINED AS THE UNION BETWEEN ONE MAN AND ONE WOMAN.

Senator HAWKINS moved to recall the Bill from the Committee on Judiciary.

Senator FORD argued contra to the motion.

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

Ayes 37; Nays 4

AYES

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

Total--37

NAYS

Ford                      Leventis                  McConnell
Patterson

Total--4

*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 Bill was recalled from the Committee on Judiciary.

Senator McCONNELL spoke on the motion.

Statement by Senator McCONNELL

First, let me make it very clear on the holy institution of marriage, I believe that marriage is between a man and a woman as embodied in the sacrament of matrimony. It is, in my opinion, God's law, and God's law is not something that I can change legislatively. Additionally, I believe that everyone should be treated equally before the law, and their rights should not be trampled on. It is in that atmosphere that it is best to try to protect the institution of marriage. Therefore, I deliberately appointed a subcommittee that was balanced with the hope that they would reach a consensus on this highly emotional issue and thus prevent the Senate from having hotly contested dialogue on this subject on the floor by one side trying to run over the other. In other words, had I appointed as a subcommittee those who were deeply committed to all three pieces of the legislation, then those who wished to be heard against it or have their views incorporated into it would have little likelihood of that ever happening. From experience, I knew that an emotional issue such as this would quickly jam the calendar and keep us from getting to the more time-pressing issues of tort reform, medical malpractice reform, government restructuring, Medicaid reform and environmental grand jury. Since the same-sex marriage legislation was, in fact, a constitutional amendment, it could not be voted on by the voters until next year in the general election and thus was not on the quick timeframe that other Bills were. I asked Senator FORD, as a senior member of the Senate Judiciary Committee, to take this difficult assignment and to be respectful of the will of the majority and to try to bring a consensus which would incorporate some of the views of the minority so that we could move forward. He agreed to do so.

Subsequently, it came to my attention that many hearings might be scheduled by the Senator, and I advised him that it was essential that he move in an expeditious fashion and that there could not be that many hearings on a piece of legislation, as we had neither the staff nor the resources to do the same. He reassured me that he would move in a timely fashion and hear from both sides and try to create a consensus but not hold up the legislation indefinitely. Simultaneously, and during the last several weeks, the Senator from Spartanburg, Senator JOHN HAWKINS, criticized Senator FORD being the chairman and wanted quick action taken on the legislation. I urged him to be patient and to let the process move forward. Just a little over two weeks ago, we received the House Bill, and I immediately referred it to the subcommittee so that it could be handled in a timely manner. Senator HAWKINS, on at least two separate occasions, raised the issue to me of his impatience. Today, with a public hearing scheduled by the subcommittee on the legislation, he ignored that fact and moved in the Motion Period to discharge the Bill from the full Senate Judiciary Committee and put it on the Calendar claiming it was languishing. This conduct was unprecedented and very divisive as well as being extremely disrespectful to the subcommittee chairman and to the legislative process. With the subcommittee meeting scheduled this afternoon, it was just flat wrong to remove the Bill from the subcommittee. As Chairman of the Senate Judiciary Committee, I have a responsibility to the process to maintain the committee in an orderly fashion and to let both sides be heard at the subcommittee level before calling the Bill up.

When the matter came up to recall it from the committee, I voted "no" because it would have been disrespectful and dishonorable for me, as chairman of the committee, to pull the rug from underneath the subcommittee chairman with whom I had charged with a task. My vote does not reflect my feelings on the legislation but rather my deep respect for the process and for the feelings of other members.

The Senator from Spartanburg took the floor and alleged the Bill was bottled up in the Senate Judiciary Committee and had been there for almost three months and that this important legislation needed to go forward. The facts are that subcommittee assignments were not made until the latter part of January, because we did not even come back into session to start the year until the second Tuesday in January. Additionally, staff had to be assigned and subcommittee hearings had to be set up. There are many, many Bills that are assigned to subcommittee for which there have been no hearings set up to date. Additionally, it was not until a little over two weeks ago that the House Bill came to the Senate. The House has made it clear that where a Bill was first acted upon by them, they expect us to use the House vehicle. It would be a waste of time for the subcommittee to use any Senate vehicle under the circumstances. Also, it was a policy decision made early on to get tort reform and medical malpractice among other issues out of the Senate first, and these have been our priorities.

If the Senator from Spartanburg believed that the matter was languishing, he could have moved to discharge the Bill from the subcommittee after consideration of amendments and discussion by the subcommittee at the conclusion of the public hearing. He did not wait to do that. Had he failed there, he would have the option at the next Senate Judiciary Committee to move to discharge it from the subcommittee and to report it out. He did not wait to do that. Instead, he threw this motion on the floor, putting the members in the position of appearing that they were pro or con on the same-sex marriage legislation if they did not vote for his motion, thus stampeding the membership into discharging the Bill and short-circuiting the process. Such actions contribute to an atmosphere of distrust and animosity within the membership. It creates, up the road, needless fights on other Bills as a result of being disrespectful of the process and of the members. Had a member tried to do this to his subcommittee, I would have stood with him the same way that I stood with Senator FORD.

As PRESIDENT Pro Tempore of the Senate, it is important for me to stand up for the institution of the Senate and to speak out against excesses by any member when they transgress upon the good order of the institution. I can only hope that with time, the bad feelings from the needless motion of the Senator from Spartanburg will pass, but his impulsive conduct has exposed the orderly process to acrimony when none was needed and to set precedential consequences. There was no danger of the same-sex marriage constitutional amendment not being considered in the session. Now, the precedent has been established for any member who wants to get a straw vote on any Bill to simply move to discharge it from the committee during the Motion Period. This will become increasingly disruptive in the weeks and months ahead, as the precedent is now utilized and to let the chips fall where they may.

Traditionally, the accepted practice of the Chamber should be to discourage such motions until gridlock has been reached in the subcommittee or the full committee and time is of the essence. None of this had occurred as of today. The process was short-circuited for what I believe was political grandstanding. I am writing this Statement for the Journal to arrest any criticism of my vote by those who might try to portray me as against the institution of marriage and against this Joint Resolution. It is my hope that others in similar trying times will stand up for the process and not allow the politics of the moments to sweep the rest of the Chamber toward distrust and division. I must stand up for the institution even under the most trying circumstances.

Senator FORD was unfairly treated on the floor of the Senate. I hope that those who read this understand the facts and comprehend the potential damage that was done to our Chamber by this hasty action today.

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

Having voted on the prevailing side, Senator ANDERSON moved to reconsider the vote whereby the Bill was recalled from the Committee on Judiciary.

Senator JACKSON spoke on the motion.

Remarks by Senator JACKSON

Thank you, Mr. PRESIDENT.

Mr. PRESIDENT Pro Tempore and ladies and gentlemen of the Senate. I debated whether or not to even get up here and to say something, but in the end I just had to because I had to do as I've always done and follow the dictate of my own conscience and my own spirit. What the Senator from Charleston said is so true and I am proud to be a member of this body and I am proud of how we've handled not only this situation but other situations like this. However, I think it is important to warn all of us to be very, very careful on going down the road in which I think we are headed and that is trying to legislate moral issues, trying to put them in the Constitution. As all of you know I am a minister, a pastor. My dad was a pastor and my dad's dad was the chairman of the deacon board. My dad and mom on March 27 celebrated 50 wonderful, glorious years of marriage with 5 children and seven grandchildren and all of their children are married and have been married and we enjoy healthy family relationships. But as I thought about this, one of the things that stand out is that people really do have a right to make their own decisions. Even if we think those decisions are wrong, they have a right to make those decisions and they've got a right to make their own moral judgment because you see one day they are going to have to be judged according to the decisions that they make in their lives. People ask me all the time, "As a minister, how can you not be out front to champion this?" I've always said that I want to be consistent and being consistent means that we can't legislate to anyone any moral decisions. I don't think you can mandate people to subscribe to whatever moral or religious views we hold. That's why in the religious community they call it winning converts, not forcing converts, because you have to convince them. An old minister said something to me that I should never forget and he said, "Remember this son, that everybody has a right even the right to be wrong and that is one's right." They have a right to make decisions and I think it is really, really dangerous when we use the Constitution because of whatever views we hold. I share your views, Senator from Spartanburg, and people who know me know that. But I am also very tolerant in opening up. I don't know everything. I don't have all the answers. I do know that God loves everyone and I know that everyone is welcome in His presence. I just have a difficult time. I would have a difficult time tonight living with myself even if I voted in favor of this amendment. And I've talked with my friend who is the other pastor and the Senator from Jasper County. He and I shared this and I hope he doesn't mind if I say this, but he and I have said the same thing -- we won't vote for this. Although we're not going to vote against it, but not voting for this is not contributing to the 2/3 majority that is needed to put this on the ballot. I could have not voted for it and just sat down and let you figure out why, but I didn't want to do that. Because I have never been a coward and I've never been afraid to say what I feel even if it isn't popular. Because in the end I want to be able to walk out of these doors, hold my head up high and say you know that you did the right thing. Forget about the next election, I can care less if this would cost me an election. If it costs me an election, then you get what you deserve and the State gets what it deserves. But any vote I've ever taken, I've felt as if and I feel as if that I can go before my constituents and look them in the eyes and say that I voted from the dictates of my heart. I will always try to do the right thing. I respect those on the other side. I'm not condemning you if you decide to vote for it and I'm not here trying to convince you to do otherwise. I just want the record to reflect why this one Senator from Richland County who happens to be a pastor of a church will vote this way. I will share it with the leaders of my church and I will share it with anybody in my church and I'll tell you one story. We had a situation a few years ago where a young man in this city was sick and he died of AIDS and his mother called me crying, Senator from Charleston, crying. She said, "You won't believe what happened." I said, "What?" She said, "My church, the church he was baptized in, the church in which he grew up, the church in which he contributed his money and participated has refused to allow them to have the burial and the funeral services at the church." The pastor said, "We don't want his kind of people coming in here for that kind of service." The mother was heartbroken. She said, "I have nowhere else to turn." She said, "I asked a friend of mine what should I do or where should I go and the friend said that maybe you want to call Rev. JACKSON because she heard that he is pretty open-minded." And she said, "I hate to insult you and put you on the spot, but would you mind allowing us to have my son's funeral at your church?" She said, "You don't have to come. You don't even have to show up. We can just have it because I want it to be in a House of God." And that broke my heart. So, I said to the mother, "Not only can you have it here, but I will be there to officiate over it. Because regardless of what we think about how he died and why he died, he was a great and a decent person." I was embarrassed for people in our community who would discriminate and hurt a family just because of an issue like that, and I am not only saying that's where we're going but I think that its very, very dangerous when we allow mindsets to develop like that. My only wish and my last hope is that I hope and pray that no one in this body will use this vote for any political reason. If you do, if you allow your party to do it or you allow anybody that you are associated with to use this for a political reason, then you are just like that pastor who told that mother, "You can't have this funeral at my church."

Thank you!

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

Statement by Senator LEVENTIS

I voted not to recall this Bill from the Judiciary Committee where it is presently in subcommittee because the committee has not completed its work on the Bill. This legislative session has been characterized by legislation brought to the floor for debate before the committees have completed their work. There is no urgency.
  Public hearings are planned. A public hearing is scheduled for today! People cannot be heard. Some say this proposal is institutionalizing a new "separate but equal" precedent in our State for some of our citizens. I must wonder if the Senator from Spartanburg, Senator HAWKINS, wants to suppress testimony or if he is concerned about what he might hear from the public. Whether or not this or other inputs would make a difference, I cannot say. There are people from both sides who feel strongly and have significant information we need to know. As citizens, they have a right to be heard, whether we personally agree with them or not.
  Because this is a proposed constitutional amendment, it cannot be placed on the ballot for public approval until the next general election in November of 2006. There is no urgency that would require this unprecedented action.
  For these reasons, as well as those stated in this Journal by the Senator from Charleston, Senator McCONNELL, and the Senator from Richland, Senator JACKSON, I voted against the motion.

Senator HAWKINS spoke on the motion.

Senator ANDERSON asked unanimous consent to make a motion to withdraw the motion to reconsider the vote whereby the Bill was recalled from the Committee on Judiciary.

There was no objection and the motion was withdrawn.

Expression of Personal Interest

Senator HAWKINS rose for an Expression of Personal Interest.

Remarks by Senator HAWKINS

I want to respond to some of the statements that have been made here today and I want to tell you all the real story behind this Bill and why I made the motion to recall the Bill and why there's absolutely no prejudice to the Senator from Charleston in what we did today.

The Senate Bills were prefiled. They have been sitting in the Judiciary Committee now going on three months. The House passed H. 3133, which is a Constitutional amendment; passed it 90-something to 1; it came over here. The Senator from Charleston was assigned to be the chairman of this subcommittee on the same sex marriage Bills. The Senator from Charleston, who is a fine man and a good Senator -- and I have a lot of respect for him -- is totally opposed to this legislation and I respect the Chairman of the Judiciary Committee's right and authority to assign Bills to whatever committee and whoever he desires. He has got that right and that prerogative and he assigned it to the Senator from Charleston.

The first thing the Senator from Charleston said was that he opposed the legislation and that he was going to hold seven subcommittee hearings on the legislation -- seven. I don't think we had that many on any other Bill -- seven subcommittee hearings. So then, apparently, people realized that was too many. And so the Senator from Charleston decided he was going to pare it down to three. I don't have it in front of me -- they're getting it for me -- but I just want to tell you some of the subjects that are going to be discussed in this subcommittee hearing and why it is my sincere and honest belief that this subcommittee is a deep-six for this legislation. And that, folks, is why we have Rule 22.

I heard the statement made that what I did today by moving to recall was violating the Rules and that was cruel. I heard the words "cruel" and "mean-spirited" used. Folks, we've got a rule that we passed. There's nothing cruel or mean-spirited or wrong or anything against using a rule to recall a Bill from a subcommittee. If I had any faith at all that the Bill would ever see the light of day, I would have never made the motion that I made. But when I see things like this -- a press release sent out from the Senator from Charleston's office about holding a series of public hearings on the same sex marriage Bills, and the first hearing is going to be held this afternoon --let me tell you what some of the topics for discussion are on this and why I felt in the bottom of my heart that this subcommittee was never being formed for any serious purpose to consider the Bill. Topics that we were supposed to take up, that we have absolutely no competence to know or understand and that have nothing to do with the Bill -- Impact of Anti-Gay Legislation on South Carolina's Economy -- that's the first thing right there that you have to deem this legislation as "anti-gay;" -- second, S.C. Census Data on Gay Families -- third, Causes of Sexual Orientation. We're not equipped in the South Carolina Senate to determine the causes of sexual orientation. Fourth, Emotional Health of Children Reared by Gay Parents and, fifth, the Stability of Gay Relationships. So, there were first going to be seven hearings, and then there were going to be three, and then I heard there was going to be one public hearing. That is what I understood yesterday, but then today the Senator said he wanted two more. It's getting on to the end of March. Next month is April, so under his schedule, the way that I understand it, we wouldn't even have a Bill to be reported out of subcommittee until the end of April. Then you're into May and June, so there's a lot of people, folks, that watch this process and don't quite frankly understand why we haven't passed a Bill already -- why we haven't already passed what is simply a recognition and a definition of marriage as this State has understood it ever since the inception of this country.

And I would submit to you that it is not the proponents of this legislation that are attempting to do anything mean or mean-spirited or cruel. What actually the proponents are trying to do is to try to define the current law and state what is so obvious to the overwhelming majority of those in this country. You hear talk about precedent. Well, I have sat here for five years and you've sat here for five years, and I've followed the precedent, folks, because we've recalled Bills before from subcommittee and I just refuse to stand idly by and allow the subcommittee process to make a mockery out of a very serious issue. I see a really good precedent in what we've done today. And in a minute, you're going to ask to go back on what you just did out of some sense of senatorial courtesy. Let me tell you this, this afternoon, and I'll be there if he still has the meeting, we still have four Senate Bills dealing with gay marriage in Senator FORD's subcommittee. That public hearing is scheduled and if he wants it to go forward, it will go forward. We will have that public hearing this afternoon. All we did is we recalled the House Bill out of subcommittee and put in on the Calendar. It's not going to move anywhere anytime soon. He can have public hearings and report back to the full Senate. That's fine. Nobody's trying to short-circuit that. But what we are trying to do is not let this subcommittee process be used to stall this important piece of legislation.

South Carolinians don't understand why we haven't done it already and I don't understand why we haven't done it already. It is a simple, simple thing. The House did it with an overwhelming majority of the votes, the Governor supports it, and an overwhelming number of members of this Senate support it. But you are going to be asked in a minute to go back because somehow we might have offended the Senator, and if I personally offended him, I regret it. That's not my intention, but I don't apologize for my actions because I think they are the right actions to take. I think we stalled too long and I ask you to stand firm on this next vote, because this next vote is a vote to determine whether or not we are going to have protection of traditional marriage in South Carolina and I ask that we not go back.

Senator HUTTO: I hear what you're saying on the substance of the Bill, but let me ask you something about the procedure. Are you telling me that every Bill that got prefiled, that if it hadn't had a subcommittee hearing by now, we're languishing on it, we're holding it back? Isn't it true that you're chairman of some subcommittees that haven't met yet? We can't meet on every Bill all the time just because it's been assigned to a subcommittee, can we?

Senator HAWKINS: I would submit this Bill is quite different. I would submit that, if I had any kind of feeling or any kind of assurance from the Senator from Charleston that there was a sincere attempt to move this Bill forward and not turn this subcommittee process into a bazaar where we try to determine the causes of sexual orientation. We're not qualified to do that, Senator.

Senator HUTTO: I don't want to talk about that -- I want to talk about the process, because what you've said is that because this Bill was prefiled and it hadn't had a subcommittee hearing yet, that a recall was appropriate. And what I am suggesting to you is that knowing that a subcommittee hearing was scheduled today, don't you think your motion was a little premature?

Senator HAWKINS: Today is the first day that I could move for reconsideration and it only requires a majority vote. No, I don't think it was premature. I think, Senator, that the use of Rule 22 to recall Bills ought to be used as an exception and not the overall rule. I think it should only be used rarely when certain criteria are met and the criteria is met here.

Lt. Gov: Was there an objection to the Senator from Greenville's unanimous consent to withdraw his request, his motion to reconsider? Was there an objection? Hearing none, so moved. You would need to have the podium now on a Point of Personal Interest if you'd like to keep the podium, Senator from Spartanburg.

Senator MARTIN: Unanimous consent request to have Judiciary hold the Bill until it's next meeting and report it out...

Senator HAWKINS: There is no realistic significance to the Bill going back to the subcommittee. The subcommittee still has four Senate Bills in its possession dealing with this issue. Why can't we leave the Bill on the Calendar in the possession of the full Senate and then continue with the public hearings on the Senate Bills? The findings that the subcommittee makes are just as relevant to this Bill because it mirrors the many other Bills in the subcommittee.

I represent a silent majority out here of people that don't believe that, there is realistically any intent to move this Bill forward. I don't want to do anything today that sets us back. Senator, if you'd be willing to amend your unanimous consent request to tell me that when the Bill is going to come back to the floor, and that it would automatically be placed on Special Order, I might be willing to consider that. Let's not move backwards. I don't want to do anything that is a demonstration to this State that we somehow are backing off. That's going to appear as a vacillation or a hand-wringing on this issue. If we are committed to it and we all agree to it, then let's go with what you said and let's agree to set it for Special Order.

On motion of Senator GROOMS, with unanimous consent, Senator HAWKINS' remarks were ordered printed in the Journal.

Objection

Senator MARTIN asked unanimous consent to make a motion that, with the Bill retaining its place on the Calendar, the Bill be recommitted to the Committee on Judiciary with the understanding that the Bill is to be considered by the committee no later than April 5, 2005.

Senator LEATHERMAN spoke on the motion.

Senator RICHARDSON objected.

Senator MARTIN addressed the Senate with brief remarks.

Motion Adopted

Senator MARTIN asked unanimous consent to make a motion that, with the Bill retaining its place on the Calendar, the Bill be recommitted to the Committee on Judiciary with the understanding that the Bill is to be considered by the committee no later than April 5, 2005.

There was no objection and the motion was adopted.

Senator FORD addressed the Senate with brief remarks.

Senator LEVENTIS addressed the Senate with brief remarks.

Expression of Personal Interest

Senator FORD rose for an Expression of Personal Interest.

Remarks by Senator FORD

Mr. PRESIDENT, Ladies and Gentleman of the Senate:

The Senator from Spartanburg, Senator JOHN HAWKINS, made comments regarding the seven public hearings on the same sex legislation that I proposed. He cited the specific topics of the hearings. I assume, the Senator from Spartanburg, as well as most of the Senate and the General Assembly would like to violate the civil rights of a segment of our community without giving the group the privilege of a hearing on this controversial issue or due process.

We don't know very much about the gay and lesbian community. The last time that the South Carolina General Assembly dealt with marriage in the State Constitution was to ban inter-racial marriage. As you know, both the State Supreme Court and the Federal Courts ruled that decision as unconstitutional. The same sex marriage constitutional amendment is no different. Based on our limited knowledge of the gay and lesbian community, we cannot make a decision without making this effort to hold hearings. For example, it is estimated that the gay and lesbian community has a population of approximately 250,000-350,000 in South Carolina. Most of the members of the gay and lesbian community are considered upper middle class and represent every profession in South Carolina. This community contributes billions of dollars annually to the South Carolina economy. The gay and lesbian community is subjected to all types of abuse and prejudice by society. There must be a scientific or medical reason for them to want to suffer this type of ill-treatment. We need to take the time to listen and discuss why members of today's society prefer this lifestyle.

I could never understand how anyone who calls himself or herself an elected official -- which means they were elected to serve by people from all walks of life -- would want to take away the civil rights of a group of people without discussion. Elected officials should be members of the community -- committed to serving all of the people of that community. We should represent a higher moral standard than what the South Carolina General Assembly is showing at this time. We must be fair in our deliberations; we must never forget that we must "look out for the least of these." This is not only our religious and moral responsibility. It is our political responsibility.

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

RECOMMITTED

S. 136 (Word version) -- Senators Gregory, Elliott, Mescher, Fair, Richardson and Bryant: A BILL TO AMEND SECTION 15-3-640 OF THE 1976 CODE, RELATING TO LEGAL ACTIONS BASED UPON A DEFECTIVE OR UNSAFE CONDITION OF AN IMPROVEMENT TO REAL PROPERTY AND TO ESTABLISH AN OUTSIDE LIMITATION OF SIX YEARS AFTER SUBSTANTIAL COMPLETION OF THE IMPROVEMENT FOR BRINGING THE ACTION.

Senator RITCHIE moved to recommit the Bill to the Committee on Judiciary.

There was no objection and the Bill was recommitted to the Committee on Judiciary.

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. 83 (Word version) -- Senators McConnell, Moore, Campsen, Ryberg, O'Dell, Elliott, Alexander, Gregory, Leatherman, Richardson and Bryant: A BILL TO ENACT THE "TORT REFORM ACT OF 2005 RELATING TO MEDICAL MALPRACTICE" BY AMENDING TITLE 15, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CIVIL REMEDIES AND PROCEDURES, BY ADDING ARTICLE 3, CHAPTER 32, SO AS TO ESTABLISH PROCEDURES GOVERNING THE AWARD OF NONECONOMIC DAMAGES; TO AMEND CHAPTER 35, TITLE 15, RELATING TO CIVIL REMEDIES AND PROCEDURES, BY ADDING SECTION 15-35-400, SO AS TO PROVIDE FOR OFFERS OF JUDGMENT AFTER COMMENCEMENT OF ANY CIVIL ACTION BASED ON CONTRACT OR SEEKING THE RECOVERY OF MONEY DAMAGES; TO AMEND CHAPTER 36, TITLE 15, RELATING TO CIVIL REMEDIES AND PROCEDURES, BY ADDING SECTION 15-36-100, SO AS TO ESTABLISH STANDARDS FOR EXPERT WITNESSES IN PROFESSIONAL MALPRACTICE ACTIONS; TO AMEND TITLE 15, RELATING TO CIVIL REMEDIES AND PROCEDURES, BY ADDING CHAPTER 79, SO AS TO PROVIDE FOR MANDATORY MEDIATION AND TO PERMIT BINDING ARBITRATION IN MEDICAL MALPRACTICE ACTIONS; TO AMEND ARTICLE 1, CHAPTER 79, TITLE 38, RELATING TO THE JOINT UNDERWRITING ASSOCIATION AND BOARD OF GOVERNORS FOR THE PATIENTS' COMPENSATION FUND, BY ADDING SECTION 38-79-40, SO AS TO PROHIBIT A PERSON SERVING IN THESE AGENCIES FROM BEING EMPLOYED OR COMPENSATED BY EITHER OF THESE AGENCIES; TO AMEND SECTION 38-79-460, RELATING TO THE PATIENTS' COMPENSATION FUND, SO AS TO PROVIDE THAT THE FUND SHALL BE MANAGED BY THE BOARD OF GOVERNORS RATHER THAN THE STATE TREASURER; TO AMEND SECTION 38-79-470, RELATING TO THE PATIENTS' COMPENSATION FUND, SO AS TO PROVIDE THAT MONEY SHALL BE WITHDRAWN FROM THE FUND UPON SIGNATURE OF THE CHAIRMAN OF THE BOARD OF GOVERNORS; AND TO AMEND SECTION 40-47-211, RELATING TO THE BOARD OF MEDICAL EXAMINERS, SO AS TO ALTER THE MEMBERSHIP OF THE BOARD BY PROVIDING FOR LAY MEMBERS.

The House returned the Bill with amendments.

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

Senator McCONNELL spoke on the Bill.

Amendment No. 1

Senator McCONNELL proposed the following Amendment No. 1 (JUD0083.050), which was adopted:

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

/   PART I

GENERAL ASSEMBLY FINDINGS

SECTION   1.   The General Assembly finds that the sections presented in this act constitute one subject as required by Article III, Section 17 of the South Carolina Constitution, in particular finding that each change and each topic relates directly to or in conjunction with other sections to the subject of tort and other civil action reform as clearly enumerated in the title.

The General Assembly further finds that a common purpose or relationship exists among the sections, representing a potential plurality but not disunity of topics, notwithstanding that reasonable minds might differ in identifying more than one topic contained in the act.

  PART II

DAMAGES

SECTION   2.   Title 15 of the 1976 Code is amended by adding:

  "CHAPTER 32

Article 3

Noneconomic Damage Awards

Section 15-32-200.   This article may be cited as the 'South Carolina Noneconomic Damage Awards Act of 2005'.

Section 15-32-210.   As used in this article, unless the context clearly requires otherwise:

(1)   'Ambulatory surgical facility' means a licensed, distinct, freestanding, self-contained entity that is organized, administered, equipped, and operated exclusively for the purpose of performing surgical procedures or related care, treatment, procedures, and/or services, by licensed health care providers, for which patients are scheduled to arrive, receive surgery or related care, treatment, procedures, and/or services, and be discharged on the same day. This term does not include abortion clinics.

(2)   'Claimant' means the person suffering personal injury.

(3)   'Economic damages' means pecuniary damages arising from medical expenses and medical care, rehabilitation services, costs associated with education, custodial care, loss of earnings and earning capacity, loss of income, burial costs, loss of use of property, costs of repair or replacement of property, costs of obtaining substitute domestic services, a claim for loss of spousal services, loss of employment, loss of business or employment opportunities, loss of retirement income, and other monetary losses.

(4)   'Health care institution' means an ambulatory surgical facility, a hospital, an institutional general infirmary, a nursing home, and a renal dialysis facility.

(5)   'Health care provider' means a physician, surgeon, osteopath, nurse, oral surgeon, dentist, pharmacist, chiropractor, optometrist, podiatrist, or similar category of licensed health care provider, including a health care practice, association, partnership, or other legal entity.

(6)   'Hospital' means a licensed facility with an organized medical staff to maintain and operate organized facilities and services to accommodate two or more nonrelated persons for the diagnosis, treatment, and care of such persons over a period exceeding twenty-four hours and provides medical and surgical care of acute illness, injury, or infirmity and may provide obstetrical care, and in which all diagnoses, treatment, or care are administered by or performed under the direction of persons currently licensed to practice medicine and surgery in the State of South Carolina. This term includes a hospital that provides specialized service for one type of care, such as tuberculosis, maternity, or orthopedics.

(7)   'Institutional general infirmary' means a licensed facility which is established within the jurisdiction of a larger nonmedical institution and which maintains and operates organized facilities and services to accommodate two or more nonrelated students, residents, or inmates with illness, injury, or infirmity for a period exceeding twenty-four hours for the diagnosis, treatment, and care of such persons and which provides medical, surgical, and professional nursing care, and in which all diagnoses, treatment or care are administered by or performed under the direction of persons currently licensed to practice medicine and surgery in the State of South Carolina.

(8)   'Medical malpractice' means doing that which the reasonably prudent health care provider or health care institution would not do or not doing that which the reasonably prudent health care provider or health care institution would do in the same or similar circumstances.

(9)   'Noneconomic damages' means nonpecuniary damages arising from pain, suffering, inconvenience, physical impairment, disfigurement, mental anguish, emotional distress, loss of society and companionship, loss of consortium, injury to reputation, humiliation, other nonpecuniary damages, and any other theory of damages including, but not limited to, fear of loss, illness, or injury.

(10)   'Nursing home' means a licensed facility with an organized nursing staff to maintain and operate organized facilities and services to accommodate two or more unrelated persons over a period exceeding twenty-four hours which is operated either in connection with a hospital or as a freestanding facility for the express or implied purpose of providing skilled nursing services for persons who are not in need of hospital care. This term does not include assisted living, independent living, or community residential care facilities that do not provide skilled nursing services.

(11)   'Personal injury' means injuries to the person including, but not limited to, bodily injuries, mental distress or suffering, loss of wages, loss of services, loss of consortium, wrongful death, survival, and other noneconomic damages and actual economic damages.

(12)   'Personal injury action' means an action for personal injury, including a wrongful death action pursuant to Sections 15-51-10 through 15-51-60 and a survival action pursuant to Section 15-5-90.

(13)   'Renal dialysis facility' means an outpatient facility which offers staff assisted dialysis or training and supported services for self-dialysis to end-stage renal disease patients.

(14)   'Skilled nursing services' means services that:

(a)   are ordered by a physician;

(b)   require the skills of technical or professional personnel such as registered nurses, licensed practical (vocational) nurses, physical therapists, occupational therapists, and speech pathologists or audiologists; and

(c)   are furnished directly by, or under the supervision of such personnel.

Section 15-32-220.   (A)   In an action on a medical malpractice claim when final judgment is rendered against a single health care provider the limit of civil liability for noneconomic damages of the health care provider is limited to an amount not to exceed three hundred fifty thousand dollars for each claimant, regardless of the number of separate causes of action on which the claim is based, except as provided in subsection (E).

(B)   In an action on a medical malpractice claim when final judgment is rendered against a single health care institution, the limit of civil liability for noneconomic damages is limited to an amount not to exceed three hundred fifty thousand dollars for each claimant, regardless of the number of separate causes of action on which the claim is based, except as provided in subsection (E).

(C)   In an action on a medical malpractice claim when final judgment is rendered against more than one health care institution, or more than one health care provider, or any combination thereof, the limit of civil liability for noneconomic damages for each health care institution and each health care provider is limited to an amount not to exceed three hundred fifty thousand dollars for each claimant and the limit of civil liability for noneconomic damages for all health care institutions and health care providers is limited to an amount not to exceed one million fifty thousand dollars for each claimant, except as provided in subsection (E).

(D)(1)   The provisions of this section do not limit the amount of compensation for economic damages suffered by each claimant in a medical malpractice claim.

(2)   The provisions of this section do not limit the amount of punitive damages in cases where the plaintiff is able to prove an entitlement to an award of punitive damages as required by law.

(E)   The limitations for noneconomic damages rendered against any health care provider do not apply if the jury or court determines that the defendant was grossly negligent, wilful, wanton, or reckless, and such conduct was the proximate cause of the claimant's noneconomic damages, or if the defendant has engaged in fraud or misrepresentation related to the claim, or if the defendant altered or destroyed medical records with the purpose of avoiding a claim or liability to the claimant.

(F)   At the end of each calendar year, the State Budget and Control Board, Board of Economic Advisors must determine the increase or decrease in the ratio of the Consumer Price Index to the index as of December 31 of the previous year, and the limitation on compensation for noneconomic damages pursuant to subsection (A), (B), or (C) must be increased or decreased accordingly. As soon as practicable after this adjustment is calculated, the Director of the State Budget and Control Board shall submit the revised limitation on compensation to the State Register for publication pursuant to Section 1-23-40(2), and the revised limitation becomes effective upon publication in the State Register. For purposes of this subsection, 'Consumer Price Index' means the Consumer Price Index for All Urban Consumers as published by the United States Department of Labor, Bureau of Labor Statistics.

Section 15-32-230.   (A)   In an action involving a medical malpractice claim arising out of care rendered in a genuine emergency situation involving an immediate threat of death or serious bodily injury to the patient receiving care in an emergency department or in an obstetrical or surgical suite, no physician may be held liable unless it is proven that the physician was grossly negligent.

(B)   In an action involving a medical malpractice claim arising out of obstetrical care rendered by a physician on an emergency basis when there is no previous doctor/patient relationship between the physician or a member of his practice with a patient or the patient has not received prenatal care, such physician is not liable unless it is proven such physician is grossly negligent.

(C)   The limitation on physician liability established by subsections (A) and (B) shall only apply if the patient is not medically stable and:

(1)   in immediate threat of death; or

(2)   in immediate threat of serious bodily injury.

Further, the limitation on physician liability established by subsections (A) and (B) shall only apply to care rendered prior to the patient's discharge from the emergency department or obstetrical or surgical suite.

Section 15-32-240.   The provisions of this article do not affect any right, privilege, or provision of the South Carolina Tort Claims Act pursuant to Chapter 78, Title 15 or the South Carolina Solicitation of Charitable Funds Act as contained in Chapter 56, Title 33."

  PART III

PROCEDURAL PROVISIONS

SECTION   3.   Chapter 35, Title 15 of the 1976 Code is amended by adding:

"Section 15-35-400.   (A)   Offer of Judgment. Except in domestic relations actions, after commencement of any civil action based upon contract or seeking the recovery of money damages, whether or not other relief is sought, any party may, at any time more than twenty days before the actual trial date, file with the clerk of the court a written offer of judgment signed by the offeror or his attorney, directed to the opposing party, offering to take judgment in the offeror's favor, or as the case may be, to allow judgment to be taken against the offeror, for a sum stated therein, for property, or to the effect specified in the offer. The offeror shall give notice of the offer of judgment to the offeree's attorney, or if the offeree is not represented by an attorney, to the offeree himself, in accordance with the service rules for motions and other pleadings set forth in the South Carolina Rules of Civil Procedure. Within twenty days after notification, or at least ten days prior to the trial date, whichever date is earlier, the offeree or his attorney may file with the clerk of the court a written acceptance of the offer of judgment. Upon the filing, the clerk shall enter immediately judgment of the stipulation. If the offer of judgment is not accepted within twenty days after notification or prior to or on the tenth day before the actual trial date, whichever date occurs first, the offer shall be considered rejected and evidence thereof is not to be admissible except in a proceeding after the trial to fix costs, interests, attorney's fees, and other recoverable monies. Any offeror may withdraw an offer of judgment prior to its acceptance or prior to the date on which it would be considered rejected by giving notice to the offeree or his attorney in accordance with the service rules for motions and other pleadings outlined in the South Carolina Rules of Civil Procedure. Any offeror may file a subsequent offer of judgment in any amount provided that the subsequent offer supercedes any earlier offer that was rejected by the offeree or withdrawn by the offeror, and, on filing, terminates any rights of interest or costs that may have been applicable to the superceded offer. Notwithstanding this provision, an offer is not considered rejected upon the making of a counteroffer by the offeree, but shall remain effective until accepted, rejected, or withdrawn as provided in this subsection. Any and all offers of judgment and any acceptance of offers of judgment must be included by the clerk in the record of the case.

(B)   Consequences of Non-Acceptance. If an offer of judgment is not accepted and the offeror obtains a verdict or determination at least as favorable as the rejected offer, the offeror shall be allowed to recover from the offeree: (1) any administrative, filing, or other court costs from the date of the offer until judgment; (2) if the offeror is a plaintiff, eight percent interest computed on the amount of the verdict or award from the date of the offer; or (3) if the offeror is a defendant, a reduction from the judgment or award of eight percent interest computed on the amount of the verdict or award from the date of the offer.

(C)   This section shall not be interpreted to abrogate the contractual rights of any party concerning the recovery of attorney's fees or other monies in accordance with the provisions of any written contract between the parties to the action."

SECTION   4.   Chapter 36, Title 15 of the 1976 Code is amended by adding:

"Section 15-36-100.   (A)   As used in this section, 'expert witness' means an expert who is qualified as to the acceptable conduct of the professional whose conduct is at issue and who:

(1)   is licensed by an appropriate regulatory agency to practice his or her profession in the location in which the expert practices or teaches; and

(2)(a)   is board certified by a national or international association or academy which administers written and oral examinations for certification in the area of practice or specialty about which the opinion on the standard of care is offered; or

(b)   has actual professional knowledge and experience in the area of practice or specialty in which the opinion is to be given as the result of having been regularly engaged in:

(i)     the active practice of the area of specialty of his or her profession for at least three of the last five years immediately preceding the opinion;

(ii)   the teaching of the area of practice or specialty of his or her profession for at least half of his or her professional time as an employed member of the faculty of an educational institution which is accredited in the teaching of his or her profession for at least three of the last five years immediately preceding the opinion; or

(iii)   any combination of the active practice or the teaching of his or her profession in a manner which meets the requirements of subitems (i) and (ii) for at least three of the last five years immediately preceding the opinion;

(3)   is an individual not covered by subsections (A)(1) or (2), that has scientific, technical, or other specialized knowledge which may assist the trier of fact in understanding the evidence and determining a fact or issue in the case, by reason of the individual's study, experience, or both. However, an affidavit filed pursuant to subsection (B) by an expert qualified under this subsection must contain an explanation of the expert's credentials and why the expert is qualified to conduct the review required by subsection (B). The defendant is entitled to challenge the sufficiency of the expert's credentials pursuant to subsection (E).

(B)   Except as provided in Section 15-79-125, in an action for damages alleging professional negligence against a professional licensed by or registered with the State of South Carolina and listed in subsection (G) or against any licensed health care facility alleged to be liable based upon the action or inaction of a health care professional licensed by the State of South Carolina and listed in subsection (G), the plaintiff must file as part of the complaint an affidavit of an expert witness which must specify at least one negligent act or omission claimed to exist and the factual basis for each claim based on the available evidence at the time of the filing of the affidavit.

(C)(1)   The contemporaneous filing requirement of subsection (B) does not apply to any case in which the period of limitation will expire, or there is a good faith basis to believe it will expire on a claim stated in the complaint, within ten days of the date of filing and, because of the time constraints, the plaintiff alleges that an affidavit of an expert could not be prepared. In such a case, the plaintiff has forty-five days after the filing of the complaint to supplement the pleadings with the affidavit. Upon motion, the trial court, after hearing and for good cause, may extend the time as the court determines justice requires. If an affidavit is not filed within the period specified in this subsection or as extended by the trial court and the defendant against whom an affidavit should have been filed alleges, by motion to dismiss filed contemporaneously with its initial responsive pleading that the plaintiff has failed to file the requisite affidavit, the complaint is subject to dismissal for failure to state a claim. The filing of a motion to dismiss pursuant to this section, shall alter the period for filing an answer to the complaint in accordance with Rule 12(a), South Carolina Rules of Civil Procedure.

(2)   The contemporaneous filing requirement of subsection (B) is not required to support a pleaded specification of negligence involving subject matter that lies within the ambit of common knowledge and experience, so that no special learning is needed to evaluate the conduct of the defendant.

(D)   This section does not extend an applicable period of limitation, except that, if the affidavit is filed within the period specified in this section, the filing of the affidavit after the expiration of the statute of limitations is considered timely and provides no basis for a statute of limitations defense.

(E)   If a plaintiff files an affidavit which is allegedly defective, and the defendant to whom it pertains alleges, with specificity, by motion to dismiss filed contemporaneously with its initial responsive pleading, that the affidavit is defective, the plaintiff's complaint is subject to dismissal for failure to state a claim, except that the plaintiff may cure the alleged defect by amendment within thirty days of service of the motion alleging that the affidavit is defective. The trial court may, in the exercise of its discretion, extend the time for filing an amendment or response to the motion, or both, as the trial court determines justice requires. The filing of a motion to dismiss pursuant to this section shall alter the period for filing an answer to the complaint in accordance with Rule 12(a), South Carolina Rules of Civil Procedure.

(F)   If a plaintiff fails to file an affidavit as required by this section, and the defendant raises the failure to file an affidavit by motion to dismiss filed contemporaneously with its initial responsive pleading, the complaint is not subject to renewal after the expiration of the applicable period of limitation unless a court determines that the plaintiff had the requisite affidavit within the time required pursuant to this section and the failure to file the affidavit is the result of a mistake. The filing of a motion to dismiss pursuant to this section shall alter the period for filing an answer to the complaint in accordance with Rule 12(a), South Carolina Rules of Civil Procedure.

(G)   This section applies to the following professions:

(1)   architects;

(2)   attorneys at law;

(3)   certified public accountants;

(4)   chiropractors;

(5)   dentists;

(6)   land surveyors;

(7)   medical doctors;

(8)   marriage and family therapists;

(9)   nurses;

(10)   occupational therapists;

(11)   optometrists;

(12)   osteopathic physicians;

(13)   pharmacists;

(14)   physical therapists;

(15)   physicians' assistants;

(16)   professional counselors;

(17)   professional engineers;

(18)   podiatrists;

(19)   psychologists;

(20)   radiological technicians;

(21)   respiratory therapists; and

(22)   veterinarians."

SECTION 5.   Title 15 of the 1976 Code is amended by adding:

  "CHAPTER 79

Section 15-79-110.   As used in this chapter:

(1)   'Ambulatory surgical facility' means a licensed, distinct, freestanding, self-contained entity that is organized, administered, equipped, and operated exclusively for the purpose of performing surgical procedures or related care, treatment, procedures, and/or services, by licensed health care providers, for which patients are scheduled to arrive, receive surgery or related care, treatment, procedures, and/or services, and be discharged on the same day. This term does not include abortion clinics.

(2)   'Health care institution' means an ambulatory surgical facility, a hospital, an institutional general infirmary, a nursing home, and a renal dialysis facility.

(3)   `Health care provider' means a physician, surgeon, osteopath, nurse, oral surgeon, dentist, pharmacist, chiropractor, optometrist, podiatrist, or any similar category of licensed health care provider, including a health care practice, association, partnership, or other legal entity.

(4)   'Hospital' means a licensed facility with an organized medical staff to maintain and operate organized facilities and services to accommodate two or more nonrelated persons for the diagnosis, treatment, and care of such persons over a period exceeding twenty-four hours and provides medical and surgical care of acute illness, injury, or infirmity and may provide obstetrical care, and in which all diagnoses, treatment, or care are administered by or performed under the direction of persons currently licensed to practice medicine and surgery in the State of South Carolina. This term includes a hospital that provides specialized service for one type of care, such as tuberculosis, maternity, or orthopedics.

(5)   'Institutional general infirmary' means a licensed facility which is established within the jurisdiction of a larger nonmedical institution and which maintains and operates organized facilities and services to accommodate two or more nonrelated students, residents or inmates with illness, injury or infirmity for a period exceeding twenty-four hours for the diagnosis, treatment, and care of such persons and which provides medical, surgical and professional nursing care, and in which all diagnoses, treatment or care are administered by or performed under the direction of persons currently licensed to practice medicine and surgery in the State of South Carolina.

(6)   'Medical malpractice' means doing that which the reasonably prudent health care provider or health care institution would not do or not doing that which the reasonably prudent health care provider or health care institution would do in the same or similar circumstances.

(7)   'Nursing home' means a licensed facility with an organized nursing staff to maintain and operate organized facilities and services to accommodate two or more unrelated persons over a period exceeding twenty-four hours which is operated either in connection with a hospital or as a freestanding facility for the express or implied purpose of providing skilled nursing services for persons who are not in need of hospital care. This term does not include assisted living, independent living, or community residential care facilities that do not provide skilled nursing services.

(8)   'Renal dialysis facility' means an outpatient facility which offers staff assisted dialysis or training and supported services for self-dialysis to end-stage renal disease patients.

(9)   'Skilled nursing services' means services that:

(a)   are ordered by a physician;

(b)   require the skills of technical or professional personnel such as registered nurses, licensed practical (vocational) nurses, physical therapists, occupational therapists, and speech pathologists or audiologists; and

(c)   are furnished directly by, or under the supervision of such personnel.

Section 15-79-120.   At any time before a medical malpractice action is brought to trial, the parties shall participate in mediation governed by procedures established in the South Carolina Circuit Court Alternative Dispute Resolution Rules in effect at the time for the State or any portion of the State. Parties may also agree to participate in binding arbitration.

Section 15-79-125.   (A)   Prior to filing or initiating a civil action alleging injury or death as a result of medical malpractice, the plaintiff shall contemporaneously file a Notice of Intent to File Suit and an affidavit of an expert witness, subject to the affidavit requirements established in Section 15-36-100, in a county in which venue would be proper for filing or initiating the civil action. The notice must name all adverse parties as defendants, must contain a short and plain statement of the facts showing that the party filing the notice is entitled to relief, must be signed by the plaintiff or by his attorney, and must include any standard interrogatories or similar disclosures required by the South Carolina Rules of Civil Procedure. Filing the Notice of Intent to File Suit tolls all applicable statutes of limitations. The Notice of Intent to File Suit must be served upon all named defendants in accordance with the service rules for a summons and complaint outlined in the South Carolina Rules of Civil Procedure.

(B)   After the Notice of Intent to File Suit is filed and served, all named parties may subpoena medical records and other documents potentially related to the medical malpractice claim pursuant to the rules governing the service and enforcement of subpoenas outlined in the South Carolina Rules of Civil Procedure. Upon leave of court, the named parties also may take depositions pursuant to the rules governing discovery outlined in the South Carolina Rules of Civil Procedure.

(C)   Within ninety days and no later than one hundred twenty days from the service of the Notice of Intent to File Suit, the parties shall participate in a mediation conference unless an extension for no more than sixty days is granted by the court based upon a finding of good cause. Unless inconsistent with this section, the Circuit Court Alternative Dispute Resolution Rules in effect at the time of the mediation conference for all or any part of the State shall govern the mediation process, including compensation of the mediator and payment of the fees and expenses of the mediation conference. The parties otherwise are responsible for their own expenses related to mediation pursuant to this section.

(D)   The circuit court has jurisdiction to enforce the provisions of this section.

(E)   If the matter cannot be resolved through mediation, the plaintiff may initiate the civil action by filing a summons and complaint pursuant to the South Carolina Rules of Civil Procedure. The action must be filed:

(1)   within sixty days after the mediator determines that the mediation is not viable, that an impasse exists, or that the mediation should end; or

(2)   prior to expiration of the statute of limitations, whichever is later.

(F)   Participation in the prelitigation mediation pursuant to this section does not alter or eliminate any obligation of the parties to participate in alternative dispute resolution after the civil action is initiated. However, there is no requirement for participation in more than one alternative dispute resolution forum following the filing of a summons and complaint to initiate a civil action in the matter.

Section 15-79-130.   If a judge finds that an expert health care provider or health care institution in a medical malpractice action in this State has offered testimony or evidence in bad faith or without a reasonable basis in fact or otherwise acted unethically in conjunction with testifying as an expert in deposition or at trial, the judge must report the expert to the state entity that licenses and regulates the profession of the expert or the type of health care entity represented by the expert."

  PART IV

JOINT UNDERWRITING ASSOCIATION

SECTION   6.   Article 1, Chapter 79, Title 38 of the 1976 Code is amended by adding:

"Section 38-79-40.   (A)   A person who serves on the Board of the Joint Underwriting Association or the Board of Governors of the Patients' Compensation Fund is prohibited from being employed in any manner or compensated by the Joint Underwriting Association or the Patients' Compensation Fund, and this prohibition continues for one year after the person ceases to be a member of the board.

(B)   No provision of this section may be construed to prohibit an insurance agent from selling insurance products from the association or from receiving commissions as a result of selling insurance products from the association."

SECTION   7.   Article 3, Chapter 79, Title 38 of the 1976 Code is amended by adding:

"Section 38-79-155.   (A)   All medical malpractice insurance carriers issuing policies of insurance within South Carolina for licensed health care providers, as defined in Section 38-79-410, shall provide and maintain coverage to all qualified applicants who timely remit payments for the coverage period and who meet and comply with all underwriting criteria of the policy and with applicable federal and state statutes and regulations.

(B)   Such policies shall be written on either a 'claims-made' or 'occurrence' basis in compliance with the standard set by the board of directors of the Joint Underwriters Association pursuant to Section 38-79-190.

(C)   The provisions of this section apply only to policies written on or after January 1, 2006."

SECTION   8.   Section 38-79-460 of the 1976 Code is amended to read:

"Section 38-79-460.   The Fund fund, and any income from it, must be held in trust, deposited in the office of the State Treasurer and kept in a segregated account entitled `Patients' Compensation Fund', invested and reinvested by the State Treasurer in the same manner as provided by law for the investment of other state funds in interest-bearing investments and may not become a part of the general fund of the State. All expenses of collecting, protecting, and administering the Fund must be paid from the Fund managed by the board according to its plan of operation developed pursuant to Section 38-79-430."

SECTION   9.   Section 38-79-470(1) of the 1976 Code is amended to read:

"(1)   Monies may be withdrawn from the Fund fund only upon the signature of the Chairman of the Board of Governors or his designee upon written warrants of the Comptroller General, drawn on the State Treasurer to the payee designated in the requisition."

  PART V

MEDICAL DISCIPLINARY COMMISSION

SECTION   10.   Section 40-47-200 of the 1976 Code is amended by adding:

"(K)   If a person's license is suspended, reissued, or reinstated by any South Carolina board for any reason, it shall report that action to the licensee's last known employer and, if applicable, to any place where the person has been granted privileges to practice medicine."

SECTION   11.   Section 40-47-211 of the 1976 Code is amended to read:

"Section 40-47-211.   (A)   There is created the Medical Disciplinary Commission of the State Board of Medical Examiners to be composed of thirty-six forty-eight members. The members of the commission Of these, thirty-six must be licensed physicians practicing their profession,. and five Five physician commissioners must be elected from each of the six congressional districts, and six physician members of the commission must be elected at large from across the State. The board shall conduct the elections, and the elections for the physician members shall provide for participation by any physician currently licensed and actively practicing medicine in South Carolina and residing in the congressional district in which the election is held. At-large physician members must be currently licensed and actively practicing medicine in South Carolina and must reside within the State at the time of election and throughout their term terms. One physician commissioner initially elected from each district shall serve for a term of one year and until his successor is elected and qualifies, one physician commissioner initially elected from each district shall serve for a term of two years and until his successor is elected and qualifies, and one physician commissioner initially elected from each district shall serve for a term of three years and until his successor is elected and qualifies. The successors of the initial physician commissioners shall serve for terms of three years or until their successors are elected and qualify. The members of the commission are limited to three terms. The members appointed to the board may not simultaneously serve as a commissioner. In case of any vacancy by way of death, resignation, or otherwise, the board shall appoint a successor to serve for the unexpired term. Where justice, fairness, or other circumstances so require, the board may appoint past commissioners to hear complaints in individual cases.

(B)   Twelve members of the commission must be lay commissioners who each must have, at a minimum, a baccalaureate degree or the equivalent, and have no ascertainable ties to the health care industry. Two lay commissioners must be appointed by the Governor from each of the six congressional districts, with the advice and consent of the Senate. Each lay commissioner must be a registered voter and reside in the congressional district he represents throughout his term. Each lay commissioner initially elected from each district shall serve for a term of three years and until his successor is elected and qualifies. The lay commissioners are limited to three consecutive terms.

(C)   The commission is empowered to investigate and hear those complaints against physicians (medical and osteopathic) filed with the board pursuant to Section 40-47-200. The hearing must be conducted in accordance with Act 176 of 1977 (Administrative Procedures Act) and with regulations promulgated by the board and must be before a panel composed of at least three commissioners designated by the board, and one of those three commissioners must be a lay member. The panel is empowered to hear the matters complained of and to make findings of fact and recommendations as to disposition of those matters to the board. The panel shall make a certified report of the proceedings before it, including its findings of fact, conclusions, and recommendations, which must be filed together with a transcript of the testimony taken and exhibits as may have been in evidence before it with the administrator of the board, and a copy of the report must be delivered to the office of general counsel and the licensee or his counsel."

  PART VI

LIABILITY OF MEMBERS OF PROFESSIONAL COMMITTEES

SECTION   12.   Section 40-71-10, as last amended by Act 296 of 2004, is further amended to read:

"Section 40-71-10.   (A)   'Professional society' as used in this chapter includes legal, medical, osteopathic, optometric, chiropractic, psychological, dental, accounting, pharmaceutic, and engineering organizations having as members at least a majority of the eligible licentiates in the area served by the particular society and any foundations composed of members of these societies. It also includes the South Carolina Law Enforcement Accreditation Council.

(B)   There is no monetary liability on the part of, and no cause of action for damages arising against, a member of an appointed committee which is formed to maintain professional standards of a state or local professional society as defined in this section or an appointed member of a committee of a medical staff of a licensed hospital, provided the medical staff operates pursuant to written bylaws that have been approved by the governing board of the hospital, or a committee appointed by the Department of Health and Environmental Control to review patient medical and health records in order to study the causes of death and disease for any act or proceeding undertaken or performed within the scope of the functions of the committee if the committee member acts without malice, has made a reasonable effort to obtain the facts relating to the matter under consideration, and acts in the belief that the action taken by him is warranted by the facts known to him.

(C)   No person acting pursuant to subsection (B) shall be subject to any monetary liability or cause of action for damages for any action for restraint of trade, violation of the South Carolina Unfair Trade Practices Act, or other action predicated upon unfair or illegal competition unless such person acted with malice.

(C)(D)   The provisions of this section do not affect the official immunity of an officer or employee of a public corporation."

SECTION   13.   Chapter 71, Title 40 of the 1976 Code is amended by adding:

"Section 40-71-30.   When a party asserts a claim of confidentiality over documents pursuant to Section 40-71-20 and the party seeking the documents objects, the documents must be filed under seal with the circuit court having jurisdiction over the pending action and are subject to judicial review by the circuit court judge. If the court determines that any of the documents are not subject to confidentiality pursuant to Section 40-71-20 and are otherwise discoverable, the court shall provide the documents to the requesting party. In the event the court finds that a party acted unreasonably in unsuccessfully asserting the claim of confidentiality, the court shall assess attorney's fees against that party for any fees incurred by the requesting party in obtaining the documents."

  PART VII

DEPARTMENT OF INSURANCE AND GENERAL ASSEMBLY

REVIEW OF INSURER'S REDUCTION OF PREMIUMS TO REFLECT SAVINGS

SECTION   14.   The Department of Insurance shall review data reported on annual statements by liability insurers, including, but not limited to, paid claims, reserves, loss adjustment expenses, and such additional data as the department may require by promulgation of bulletin, to determine savings related to a decrease in litigation and claims paid pursuant to litigation after the effective date of this act. The department may require special reports from insurers to determine if savings are realized as a result of the provisions of this act. The department shall compile a report of savings realized and submit it for General Assembly review upon request. Costs or expenses associated with the compilation of this report of savings shall be paid by the insurers pursuant to the provisions of Chapter 13 of Title 38. The Department of Insurance shall review premium and losses by line of insurance to determine if appropriate adjustments have been made based upon the department estimates of savings realized pursuant to the provisions of this act.

SECTION   15.   As a majority of the health care community is insured through the South Carolina Medical Malpractice Joint Underwriting Association and the Patients' Compensation Fund and as it is essential for the General Assembly to understand the effects of changes to tort laws, the South Carolina Department of Insurance is given authority to request data regarding changes in claims practices from the South Carolina Medical Malpractice Joint Underwriting Association and the Patients' Compensation Fund. Such data may include paid claims, paid loss adjustment expense, case reserves, bulk reserves, and claim counts by quarter for the previous five years. The department may make such a request of the South Carolina Medical Malpractice Joint Underwriting Association and the Patients' Compensation Fund and such information must be provided within thirty days.

The Department of Insurance shall report annually to the Speaker of the House of Representatives, the President Pro Tempore of the Senate, and the Governor as to whether this and other related enactments have resulted in reductions in premiums and as to any other trends of significance which might impact premium cost.

  PART VIII

MISCELLANEOUS

SECTION   16.   Chapter 38, Title 15 of the 1976 Code, as added by H. 3008 of 2005 bearing Ratification No. ____, is amended to read:

"Section 15-38-15.   (A)(1)   In an action to recover damages resulting from personal injury, wrongful death, or damage to property or to recover damages for economic loss or for noneconomic loss such as mental distress, loss of enjoyment, pain, suffering, loss of reputation, or loss of companionship resulting from tortious conduct, if indivisible damages are determined to be proximately caused by more than one defendant, joint and several liability does not apply to any defendant whose conduct is determined to be less than fifty percent of the total fault for the indivisible damages as compared with the total of: (i) the fault of all the defendants; and (ii) the fault ('comparative negligence'), if any, of plaintiff. A defendant whose conduct is determined to be less than fifty percent of the total fault shall only be liable for that percentage of the indivisible damages determined by the jury or trier of fact.

(B)   Apportionment of percentages of fault among defendants is to be determined as specified in subsection (C).

(C)   The jury, or the court if there is no jury, shall:

(1)   specify the amount of damages;

(2)   determine the percentage of fault, if any, of plaintiff and the amount of recoverable damages under applicable rules concerning 'comparative negligence'; and

(3)   upon a motion by at least one defendant, where there is a verdict under items (1) and (2) above for damages against two or more defendants for the same indivisible injury, death, or damage to property, specify in a separate verdict under the procedures described at subitem (b) below the percentage of liability that proximately caused the indivisible injury, death, damage to property, or economic loss from tortious conduct, as determined by item (1) above, that is attributable to each defendant whose actions are a proximate cause of the indivisible injury, death, or damage to property. In determining the percentage attributable to each defendant, any fault of the plaintiff, as determined by item (2) above, will be included so that the total of the percentages of fault attributed to the plaintiff and to the defendants must be one hundred percent. In calculating the percentage of fault attributable to each defendant, inclusion of any percentage of fault of the plaintiff (as determined in item (2) above) shall not reduce the amount of plaintiff's recoverable damages (as determined under item (2) above).

(a)   For this purpose, the court may determine that two or more persons are to be treated as a single party. Such treatment must be used where two or more defendants acted in concert or where, by reason of agency, employment, or other legal relationship, a defendant is vicariously responsible for the conduct of another defendant.

(b)   After the initial verdict awarding damages is entered and before the special verdict on percentages of liability is rendered, the parties shall be allowed oral argument, with the length of such argument subject to the discretion of the trial judge, on the determination of the percentage attributable to each defendant. However, no additional evidence shall be allowed.

(D)   A defendant shall retain the right to assert that another potential tortfeasor, whether or not a party, contributed to the alleged injury or damages and/or may be liable for any or all of the damages alleged by any other party.

(E)   Notwithstanding the application of this section, setoff from any settlement received from any potential tortfeasor prior to the verdict shall be applied in proportion to each defendant's percentage of liability as determined pursuant to subsection (C).

(F)   This section does not apply to a defendant whose conduct is determined to be wilful, wanton, reckless, grossly negligent, or intentional or conduct involving the use, sale, or possession of alcohol or the illegal or illicit use, sale, or possession of drugs."

SECTION 17.   If any provision of SECTION 16 or its application to any person is held invalid, unenforceable, or unconstitutional, this validity, unenforceability, or unconstitutionality shall negate the other provisions or applications of SECTION 16, and to this end, the provisions of SECTION 16 are not severable.

SECTION   18.   The provisions of this act do not affect any right, privilege, or provision of the South Carolina Tort Claims Act as contained in Chapter 78, Title 15 of the 1976 Code of South Carolina or the South Carolina Solicitation of Charitable Funds Act as contained in Chapter 56 of Title 33.

SECTION   19.   The repeal or amendment by this act of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this act, all laws repealed or amended by this act must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this act, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.

SECTION   20.   Except as provided by SECTION 17 if any section, subsection, item, subitem, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, item, subitem, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, items, subitems, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

SECTION   21.   (A)   Section 16 takes effect July 1, 2005, and shall only apply to causes of action arising on or after that date except for causes of actions relating to construction torts which would take effect on July 1, 2005, and apply to improvements to real property that first obtain substantial completion on or after July 1, 2005. For purposes of this section, an improvement to real property obtains substantial completion when a municipality or county issues a certificate of occupancy in the case of new construction, or completes a final inspection in the case of improvements to existing improvements."

(B)   Upon approval by the Governor, this act takes effect July 1, 2005, for causes of action arising after July 1, 2005, except that as of this act's effective date, the State Treasurer shall relinquish the management of funds in the Patients' Compensation Fund, created pursuant to Section 38-79-420, to the Board of Governors of the fund, and premiums paid on or after this act's effective date must be deposited with the Board of Governors of the fund. The fund must be fully transferred to the Board of Governors, and the State Treasurer may not hold any deposits of the fund as of ninety days after this act's effective date.   /

Renumber sections to conform.

Amend title to conform.

Senator McCONNELL explained the amendment.

The amendment was adopted.

S. 83, as amended, was ordered returned to the House.

Motion to Ratify Adopted

At 12:50 P.M., Senator McCONNELL asked unanimous consent to make a motion to invite the House of Representatives to attend the Senate Chamber for the purpose of ratifying Acts at 3:00 P.M.

There was no objection and a message was sent to the House accordingly.

RECESS

At 1:04 P.M., on motion of Senator McCONNELL, the Senate receded from business until 2:30 P.M.

At 3:00 P.M., the Senate resumed.

RATIFICATION OF ACTS

Pursuant to an invitation the Honorable Speaker and House of Representatives appeared in the Senate Chamber on March 17, 2005, at 3:00 P.M. and the following Acts and Joint Resolutions were ratified:

(R8, S. 19 (Word version)) -- Senators McConnell, Campsen, Elliott, Hayes, Fair, Richardson and Bryant: AN ACT TO RATIFY AN AMENDMENT TO SECTION 1, ARTICLE VIII-A OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE POWERS OF THE GENERAL ASSEMBLY PERTAINING TO ALCOHOLIC LIQUORS AND BEVERAGES, SO AS TO REGULATE THEIR SALE IN CONTAINERS OF SUCH SIZE AS THE GENERAL ASSEMBLY CONSIDERS APPROPRIATE.
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(R9, S. 91 (Word version)) -- Senators McConnell, Knotts and Elliott: AN ACT TO AMEND SECTION 1-7-310, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE TERM OF OFFICE FOR SOLICITORS, SO AS TO PROVIDE THAT A SOLICITOR'S TERM OF OFFICE BEGINS AT NOON ON THE FIRST WEDNESDAY FOLLOWING THE SECOND TUESDAY IN JANUARY FOLLOWING HIS ELECTION AND ENDS AT NOON ON THE FIRST WEDNESDAY FOLLOWING THE SECOND TUESDAY IN JANUARY FOUR YEARS LATER.
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(R10, S. 113 (Word version)) -- Senators Verdin, Knotts, Elliott and Campsen: AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 48 TO CHAPTER 3, TITLE 56 SO AS TO PROVIDE THAT THE DEPARTMENT OF MOTOR VEHICLES MAY ISSUE SONS OF CONFEDERATE VETERANS SPECIAL LICENSE PLATES.
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(R11, S. 223 (Word version)) -- Senator Alexander: AN ACT TO AMEND SECTION 5-31-230, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MUNICIPALITIES WITH NO BOARD OF COMMISSIONERS OF PUBLIC WORKS, SO AS TO PROVIDE THAT FOR THE CITY OF WESTMINSTER, THE DUTIES OF THE BOARD OF COMMISSIONERS OF PUBLIC WORKS SHALL DEVOLVE UPON THE CITY COUNCIL ON JULY 1, 2005.
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(R12, S. 255 (Word version)) -- Senator Grooms: AN ACT TO AMEND ARTICLE 3, CHAPTER 39, TITLE 39 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE LABELING AND MARKETING OF EGGS, SO AS TO FURTHER PROVIDE FOR THE REGULATION INCLUDING LICENSING OF SELLERS OF EGGS BY THE DEPARTMENT OF AGRICULTURE AND REQUIREMENTS FOR LABELING AND REFRIGERATED STORING OF EGGS, AND TO PROVIDE PENALTIES FOR CERTAIN VIOLATIONS.
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(R13, S. 319 (Word version)) -- Senators Hayes, Malloy, Moore, Williams, O'Dell, McGill, Short and Leventis: AN ACT TO AMEND CHAPTER 2, TITLE 60, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE STATE DOCUMENTS DEPOSITORY SYSTEM, SO AS TO REVISE DEFINITIONS AND PROCEDURES IN ORDER TO PROVIDE FOR THE ACQUISITION OF MATERIALS IN BOTH PRINT AND ELECTRONIC FORMATS AND TO DELETE CERTAIN OBSOLETE REFERENCES.
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(R14, S. 326 (Word version)) -- Senators Ritchie, Gregory, Sheheen, J. Verne Smith and Ryberg: AN ACT TO AMEND SECTION 48-1-87, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE AQUATIC LIFE PROTECTION ACT, SO AS TO FURTHER PROVIDE FOR THE MANNER IN WHICH AND CONDITIONS UNDER WHICH THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL MAY IMPOSE NPDES PERMIT LIMITATIONS FOR WHOLE EFFLUENT TOXICITY WHERE THE DEPARTMENT DETERMINES A DISCHARGE CAUSES OR HAS THE REASONABLE POTENTIAL TO CAUSE OR CONTRIBUTE TO A VIOLATION OF WATER QUALITY STANDARDS; AND TO AMEND ACT 258 OF 2004, ALSO RELATING TO THE AQUATIC LIFE PROTECTION ACT, SO AS TO FURTHER PROVIDE THE CIRCUMSTANCES WHEN THE PROVISIONS OF THIS ACT DO NOT APPLY.
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(R15, S. 339 (Word version)) -- Senator Leatherman: AN ACT TO AMEND ARTICLE 7, CHAPTER 21, TITLE 12 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-21-1085, SO AS TO PROVIDE WITH CERTAIN EXCEPTIONS THAT THE TAXES PROVIDED FOR IN ARTICLE 7 ARE IN LIEU OF ALL OTHER TAXES ON BEER AND WINE.
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(R16, S. 386 (Word version)) -- Senator McGill: AN ACT TO AMEND ACT 632 OF 1980, AS AMENDED, RELATING TO THE BOARD OF TRUSTEES OF THE SCHOOL DISTRICT OF WILLIAMSBURG COUNTY, SO AS TO PROVIDE FOR THE ALLOWANCE FOR EACH MEAL THAT EACH MEMBER AND EMPLOYEE OF THE BOARD OF TRUSTEES SHALL RECEIVE FOR IN-STATE OR OUT-OF-STATE OVERNIGHT TRAVEL.
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(R17, S. 426 (Word version)) -- Senator Land: AN ACT TO AMEND ACT 355 OF 2004, RELATING TO THE CLARENDON COUNTY SCHOOL DISTRICTS' PROPERTY TAX RELIEF ACT, AND THE ONE PERCENT SALES TAX AUTHORIZED TO BE IMPOSED IN CLARENDON COUNTY FOR SCHOOL CONSTRUCTION, SO AS TO DELETE THE EXEMPTION ALLOWED IN THE CLARENDON COUNTY SALES AND USE TAX FOR FOOD WHICH MAY BE PURCHASED WITH UNITED STATES DEPARTMENT OF AGRICULTURE FOOD COUPONS.
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(R18, S. 456 (Word version)) -- Senators Hayes, Peeler, Gregory and Short: AN ACT TO AMEND ACT 470 OF 2000, RELATING TO THE ESTABLISHMENT OF ELECTION DISTRICTS FROM WHICH MEMBERS OF THE BOARD OF TRUSTEES OF ROCK HILL SCHOOL DISTRICT 3 OF YORK COUNTY ARE ELECTED, SO AS TO CLARIFY THE BOUNDARIES OF CERTAIN ELECTION DISTRICTS.
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(R19, S. 457 (Word version)) -- Senators Hayes, Peeler, Gregory and Short: AN ACT TO AMEND ACT 469 OF 2000, AS AMENDED, RELATING TO THE ESTABLISHMENT OF ELECTION DISTRICTS FROM WHICH MEMBERS OF THE BOARD OF TRUSTEES OF YORK SCHOOL DISTRICT 1 OF YORK COUNTY ARE ELECTED, SO AS TO CLARIFY THE BOUNDARIES OF CERTAIN ELECTION DISTRICTS.
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(R20, S. 493 (Word version)) -- Labor, Commerce and Industry Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION-ENVIRONMENTAL CERTIFICATION BOARD, RELATING TO CHAPTER REVISION, DESIGNATED AS REGULATION DOCUMENT NUMBER 2931, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
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(R21, S. 583 (Word version)) -- Senators J. Verne Smith and Hutto: A JOINT RESOLUTION TO EXTEND BY ONE ADDITIONAL PROPERTY TAX YEAR THE PROPERTY TAX EXEMPTION ALLOWED FOR PROPERTY NOT OWNED BY BUT WHICH IS USED EXCLUSIVELY BY THE BOY SCOUTS OF AMERICA OR THE GIRL SCOUTS OF AMERICA.
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(R22, S. 598 (Word version)) -- Senators Sheheen and Lourie: AN ACT TO AMEND ACT 930 OF 1970, AS AMENDED, RELATING TO SCHOOL TRUSTEES FOR KERSHAW COUNTY, SO AS TO REVISE THE ELECTION DISTRICTS FROM WHICH THE MEMBERS OF THE BOARD OF TRUSTEES ARE ELECTED; AND TO DESIGNATE A MAP NUMBER FOR THE MAP ON WHICH THESE LINES OF THE ELECTION DISTRICTS FOR TRUSTEES ARE DELINEATED AND MAINTAINED BY THE OFFICE OF RESEARCH AND STATISTICS OF THE STATE BUDGET AND CONTROL BOARD.
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(R23, H. 3008 (Word version)) -- Reps. Cato, Bales, Clark, Barfield, Huggins, Frye, Sandifer, E.H. Pitts, Taylor, Anthony, Bailey, Battle, Bingham, Ceips, Chalk, Chellis, Clemmons, Cooper, Dantzler, Davenport, Duncan, Edge, Hamilton, Hardwick, Harrell, Hinson, Kirsh, Leach, Limehouse, Littlejohn, Loftis, McCraw, Norman, Owens, Perry, Pinson, Rice, Simrill, Skelton, D.C. Smith, G.R. Smith, J.R. Smith, Stewart, Thompson, Toole, Townsend, Tripp, Umphlett, Vaughn, Vick, Viers, Walker, White, Whitmire, Wilkins, Witherspoon, Coates, Brady, Ballentine, Ott, Mahaffey, Haley, Hagood, Bowers and Young: AN ACT TO AMEND SECTION 15-3-640, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO AN ACTION BASED UPON A DEFECTIVE OR UNSAFE IMPROVEMENT TO REAL PROPERTY, SO AS TO DECREASE THE TIME AN ACTION MAY BE BROUGHT FROM THIRTEEN TO EIGHT YEARS AFTER THE SUBSTANTIAL COMPLETION OF THE IMPROVEMENT; TO AMEND SECTION 15-7-30, RELATING TO ACTIONS THAT MUST BE TRIED WHERE THE DEFENDANT RESIDES, SO AS TO DEFINE KEY TERMS AND TO PROVIDE FACTORS FOR THE COURT TO CONSIDER WHEN DETERMINING THE PRINCIPAL PLACE OF BUSINESS; TO AMEND SECTION 15-7-100, RELATING TO CHANGING THE PLACE OF TRIAL, SO AS TO PROVIDE THAT THE COURT MAY CHANGE THE PLACE OF TRIAL IF IT IS A COURT IN A COUNTY DESIGNATED FOR THAT PURPOSE BUT THE DESIGNATED COUNTY IS NOT THE PROPER COUNTY PURSUANT TO ANOTHER VENUE STATUTE; TO AMEND SECTION 15-36-10, RELATING TO LIABILITY FOR ATTORNEY'S FEES AND COSTS OF FRIVOLOUS LAWSUITS, SO AS TO REPLACE THE EXISTING PROVISIONS WITH PROVISIONS REQUIRING THE SIGNATURE OF AN ATTORNEY OR PARTY ON ALL PLEADINGS AND OTHER DOCUMENTS FILED IN A CIVIL OR ADMINISTRATIVE ACTION, TO PROVIDE A PROCEDURE FOR ADMINISTERING SANCTIONS FOR A VIOLATION, AND TO PROVIDE FOR THE REPORTING OF AN ATTORNEY TO THE COMMISSION ON LAWYER CONDUCT; BY ADDING SECTION 15-38-15 SO AS TO PROVIDE IN AN ACTION TO RECOVER DAMAGES RESULTING FROM PERSONAL INJURY, WRONGFUL DEATH, DAMAGE TO PROPERTY, OR TO RECOVER DAMAGES FOR ECONOMIC LOSS OR NONECONOMIC LOSS, JOINT AND SEVERAL LIABILITY DOES NOT APPLY TO A DEFENDANT WHO IS LESS THAN FIFTY PERCENT AT FAULT, TO PROVIDE FOR APPORTIONMENT OF PERCENTAGES OF FAULT AMONG DEFENDANTS, AND TO PROVIDE THAT THE PROVISIONS OF THIS SECTION DO NOT APPLY TO A DEFENDANT WHOSE CONDUCT IS WILFUL, WANTON, RECKLESS, GROSSLY NEGLIGENT, INTENTIONAL, OR CONDUCT INVOLVING THE USE, SALE, OR POSSESSION OF ALCOHOL OR DRUGS; TO AMEND SECTION 34-31-20, AS AMENDED, RELATING TO THE LEGAL RATE OF INTEREST, SO AS TO CHANGE THE RATE FROM TWELVE PERCENT A YEAR TO EQUAL TO THE PRIME RATE AS LISTED IN THE FIRST EDITION OF THE WALL STREET JOURNAL PUBLISHED FOR EACH CALENDAR YEAR PLUS FOUR PERCENTAGE POINTS; TO AMEND SECTION 36-2-803, RELATING TO PERSONAL JURISDICTION BASED UPON CONDUCT, SO AS TO REMOVE AN EXCEPTION SO THAT AN ACTION PURSUANT TO THIS SECTION WOULD BE SUBJECT TO THE PROVISIONS OF SECTION 15-7-100(3); BY ADDING SECTION 39-5-39 SO AS TO PROVIDE THAT IT IS AN UNLAWFUL TRADE PRACTICE FOR AN ATTORNEY TO ADVERTISE HIS SERVICES IN A FALSE, DECEPTIVE, OR MISLEADING MANNER; AND TO REPEAL SECTIONS 15-36-20, 15-36-30, 15-36-40, AND 15-36-50 ALL RELATING TO FRIVOLOUS LAWSUITS AND SECTION 58-23-90 RELATING TO VENUE IN ACTIONS AGAINST LICENSED MOTOR CARRIERS.
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(R24, H. 3026 (Word version)) -- Reps. Cato, G.M. Smith, Edge, Sandifer, Coates, Kirsh and Bales: AN ACT TO AMEND SECTION 6-9-40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ADOPTION AND PROMULGATION OF CERTAIN BUILDING CODES AND STANDARDS, SO AS TO PROVIDE THE MODIFICATIONS PROMULGATED PURSUANT TO THE PROVISIONS OF THIS SECTION DO NOT REQUIRE READOPTION BY THE BUILDING CODES COUNCIL FOR SUBSEQUENT EDITIONS OF THE BUILDING CODES, AND TO PROVIDE A PROCEDURE TO RECONSIDER EXISTING MODIFICATIONS.
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(R25, H. 3126 (Word version)) -- Reps. Duncan, Rice and M.A. Pitts: AN ACT TO AMEND SECTION 56-3-1250, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ISSUANCE, CONTENT, POSSESSION, AND DISPLAY OF A VEHICLE REGISTRATION CARD, AND THE PENALTY FOR THE FAILURE OF THE OWNER OF A VEHICLE TO SIGN THE VEHICLE'S REGISTRATION CARD, SO AS TO DELETE THE PROVISION THAT REQUIRES A VEHICLE OWNER TO SIGN THE VEHICLE'S REGISTRATION CARD AND THE PENALTY FOR THE FAILURE OF THE OWNER OF A VEHICLE TO SIGN THE VEHICLE'S REGISTRATION CARD.
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(R26, H. 3130 (Word version)) -- Reps. Scarborough, Harrell, Vaughn and Bowers: AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 3, CHAPTER 18, TITLE 41, TO ENACT THE "SOUTH CAROLINA RIDER SAFETY ACT" SO AS TO REQUIRE RIDERS OF AMUSEMENT AND CARNIVAL DEVICES TO COMPLY WITH CERTAIN SAFETY REQUIREMENTS, TO REPORT INJURIES IN A TIMELY MANNER, TO REQUIRE OWNERS OF SUCH DEVICES TO POST SIGNS RELATING TO RIDER SAFETY, AND TO ESTABLISH A MISDEMEANOR FOR VIOLATIONS OF THIS ARTICLE; AND TO DESIGNATE SECTIONS 41-18-10 THROUGH 41-18-150 AS ARTICLE 1, CHAPTER 18, TITLE 41, AND TO NAME THAT ARTICLE "GENERAL PROVISIONS".
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(R27, H. 3379 (Word version)) -- Rep. Wilkins: A JOINT RESOLUTION TO ADOPT REVISED CODE VOLUMES 1 AND 7 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, TO THE EXTENT OF THEIR CONTENTS, AS THE ONLY GENERAL PERMANENT STATUTORY LAW OF THE STATE AS OF JANUARY 1, 2005.
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(R28, H. 3396 (Word version)) -- Reps. Bowers and Rivers: A JOINT RESOLUTION TO PROVIDE THAT SCHOOL DAY MISSED ON SEPTEMBER 27, 2004, BY THE STUDENTS OF SCHOOLS IN HAMPTON SCHOOL DISTRICT ONE IN HAMPTON COUNTY WHEN THE SCHOOLS WERE CLOSED DUE TO ICE OR INCLEMENT WEATHER CONDITIONS IS EXEMPTED FROM THE MAKE-UP REQUIREMENT THAT THE FULL SCHOOL DAY MISSED DUE TO EXTREME WEATHER OR OTHER CIRCUMSTANCES BE MADE UP.
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(R29, H. 3428 (Word version)) -- Reps. W.D. Smith, Sinclair, Walker, Davenport, Lee, Littlejohn, Mahaffey and Talley: A JOINT RESOLUTION AUTHORIZING THE CITY OF SPARTANBURG TO MOVE THE STATUE OF REVOLUTIONARY WAR GENERAL DANIEL MORGAN IN CONNECTION WITH THE CITY'S PLAN TO UPGRADE DANIEL MORGAN SQUARE.
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(R30, H. 3430 (Word version)) -- Reps. Vick, Jennings, Lucas and Neilson: AN ACT TO PROVIDE THAT EACH MEMBER OF THE CHESTERFIELD COUNTY TRANSPORTATION COMMITTEE SHALL BE ALLOWED AND PAID FROM CHESTERFIELD COUNTY "C" FUND REVENUES SEVENTY-FIVE DOLLARS FOR EACH MEETING AT WHICH HE IS IN ATTENDANCE, TO PROVIDE THAT THE COMMITTEE SHALL RECEIVE THE PAYMENT AUTHORIZED IN THIS ACT UPON ISSUANCE OF APPROVED VOUCHERS BY THE COMMITTEE'S CHAIRMAN, EXCEPT THAT THE CHAIRMAN MAY NOT APPROVE VOUCHERS IN ANY SINGLE FISCAL YEAR WHICH VOUCHERS AUTHORIZE PAYMENT FOR MORE THAN FIFTEEN MEETINGS PER FISCAL YEAR FOR EACH MEMBER OF THE COMMITTEE, AND TO PROVIDE THAT THE CHAIRMAN OF THE CHESTERFIELD COUNTY LEGISLATIVE DELEGATION SHALL BE AN EX OFFICIO NONVOTING MEMBER OF THE CHESTERFIELD COUNTY TRANSPORTATION COMMITTEE WHO SHALL NOT RECEIVE ANY PER DIEM OR COMPENSATION FOR THIS SERVICE.
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(R31, H. 3460 (Word version)) -- Reps. Bailey, Chellis, Harrell and Young: AN ACT TO AMEND ACT 1627 OF 1972, AS AMENDED, RELATING TO THE DORCHESTER COUNTY VOCATIONAL EDUCATION BOARD OF TRUSTEES, SO AS TO CHANGE REFERENCES FROM DORCHESTER VOCATIONAL EDUCATION TO DORCHESTER COUNTY CAREER AND TECHNOLOGY CENTER AND TO UPDATE LANGUAGE, TO PROVIDE THAT THE TWO MEMBERS APPOINTED FROM THE SCHOOLS DISTRICTS MUST NOT BE VOTING MEMBERS BUT SHALL SERVE EX OFFICIO, AND TO PROVIDE THAT THE OPERATIONAL BUDGET MUST BE SUBMITTED TO THE DORCHESTER COUNTY COUNCIL.
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MOTION ADOPTED

On motion of Senators GREGORY, ALEXANDER, ANDERSON, BRYANT, CAMPSEN, CLEARY, COURSON, CROMER, DRUMMOND, ELLIOTT, FAIR, FORD, 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, J. VERNE SMITH, THOMAS, VERDIN and WILLIAMS, with unanimous consent, the Senate stood adjourned out of respect to the memory of our good friend and colleague, former Senator Caldwell T. "Red" Hinson of Lancaster, S.C.

ADJOURNMENT

At 3:15 P.M., on motion of Senator MARTIN, the Senate adjourned to meet tomorrow at 11:00 A.M. under the provisions of Rule 1 for the purpose of taking up local matters and uncontested matters which have previously received unanimous consent to be taken up.

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