South Carolina Senate Journal May 19, 2005 - South Carolina Legislature Online

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

Printed Page 2781 . . . . . Thursday, May 19, 2005

Thursday, May 19, 2005
(Statewide Session)

~~Indicates Matter Stricken~~
Indicates New Matter

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

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

Beloved, hear words that St. Paul wrote to his young friend Timothy (II Timothy 2:6-7):

"Therefore, I remind you to stir up the gift of God which is in you...for God has not given us a spirit of fear, but of power and of love and of a sound mind."
Let us pray.

Father, You are our Lord and Master. You have given, even to us, the gifts of power, love and sound MINDS.

St. Paul is saying across the years: Stir up those gifts!

Many are praying. Our children, young people, old folks are praying for a happier life - and a world with higher hope for the future.

Thank You for wise leaders, attitudes of character, and social insights that will give us better times.

In the Holy Name we pray!

Amen.

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

Doctor of the Day

Senator RYBERG introduced Dr. Allen Sloan of North Augusta, S.C., Doctor of the Day.

RECALLED AND ADOPTED

S. 860 (Word version) -- Senator McConnell: A CONCURRENT RESOLUTION TO REQUEST THE DEPARTMENT OF TRANSPORTATION TO NAME THE TWO TOWERS OF THE NEW ARTHUR RAVENEL BRIDGE IN CHARLESTON AS THE "JOHN P. GRACE TOWER" AND THE "SILAS N. PEARMAN TOWER" RESPECTIVELY IN HONOR OF THE MEN FOR WHOM THE TWO OLD BRIDGES THAT WILL BE REPLACED BY THE ARTHUR RAVENEL BRIDGE WERE NAMED AND TO REQUEST THE DEPARTMENT

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TO ERECT MARKERS OR SIGNS AT THE APPROPRIATE PLACES REFLECTING THIS DESIGNATION.

Senator RYBERG asked unanimous consent to make a motion to recall the Resolution from the Committee on Transportation.

There was no objection.

The Resolution was recalled from the Committee on Transportation.

Senator RYBERG asked unanimous consent to take the Resolution up for immediate consideration.

There was no objection.

Senator RYBERG asked unanimous consent to adopt the Resolution and order the Resolution sent to the House.

There was no objection.

RECALLED AND READ THE SECOND TIME

H. 4038 (Word version) -- Reps. Govan, Cobb-Hunter and Ott: A BILL TO AMEND SECTION 7-7-440, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN ORANGEBURG COUNTY, SO AS TO REVISE CERTAIN VOTING PRECINCTS OF ORANGEBURG COUNTY AND REDESIGNATE A MAP NUMBER FOR THE MAP ON WHICH LINES OF THESE PRECINCTS ARE DELINEATED AND MAINTAINED BY THE OFFICE OF RESEARCH AND STATISTICS OF THE STATE BUDGET AND CONTROL BOARD.

Senator HUTTO asked unanimous consent to make a motion to recall the Bill from the Committee on Judiciary.

There was no objection.

Senator HUTTO asked unanimous consent to take the Bill up for immediate consideration.

There was no objection.

Senator HUTTO asked unanimous consent to give the Bill a second reading and place the Bill on the Third Reading Calendar.

There was no objection

H. 4038--Ordered to a Third Reading

On motion of Senator HUTTO, with unanimous consent, H. 4038 was ordered to receive a third reading on Friday, May 20, 2005.

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INTRODUCTION OF BILLS AND RESOLUTIONS

The following were introduced:

S. 867 (Word version) -- Senator Cromer: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION NAME THE PORTION OF SOUTH CAROLINA HIGHWAY 219 IN NEWBERRY COUNTY FROM OXNER ROAD (ROAD S-36-611) TO UNITED STATES HIGHWAY 176 AS "JERRY ALEWINE MEMORIAL HIGHWAY" IN MEMORY OF JERRY M. ALEWINE, WHO SERVED THE COUNTY OF NEWBERRY AND THE STATE OF SOUTH CAROLINA WITH DISTINCTION AS A MEMBER OF THE NEWBERRY COUNTY COUNCIL, AS BOARD CHAIRMAN OF THE NEWBERRY COUNTY MEMORIAL HOSPITAL, AND AS A MEMBER OF THE NEWBERRY COUNTY TRANSPORTATION COMMITTEE AND TO REQUEST THE DEPARTMENT OF TRANSPORTATION TO ERECT APPROPRIATE SIGNS OR MARKERS REFLECTING THIS DESIGNATION.
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The Concurrent Resolution was introduced and referred to the Committee on Transportation.

S. 868 (Word version) -- Banking and Insurance Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF INSURANCE, RELATING TO RECOGNITION OF THE 2001 CSO MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS, DESIGNATED AS REGULATION DOCUMENT NUMBER 2978, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
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Read the first time and ordered placed on the Calendar without reference.

S. 869 (Word version) -- Senator Grooms: A BILL TO AMEND CHAPTER 6, TITLE 12 OF THE 1976 CODE, BY ADDING SECTION 12-6-3580 TO ALLOW A REFUNDABLE STATE INCOME TAX CREDIT TO A RESIDENT TAXPAYER MILK PRODUCER FOR ANY TAXABLE YEAR IN WHICH THE USDA CLASS I PRICE OF FLUID MILK IN THIS STATE DROPS BELOW A PRODUCTION PRICE SET BY THE DEPARTMENT OF AGRICULTURE FOR

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MILK SOLD BELOW THAT PRODUCTION PRICE, TO PROVIDE FOR THE AMOUNT OF THE CREDIT, AND TO ESTABLISH FACTORS THE DEPARTMENT OF AGRICULTURE MUST CONSIDER WHEN ESTABLISHING A PRODUCTION PRICE.
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Read the first time and referred to the Committee on Finance.

S. 870 (Word version) -- Senator Moore: A BILL TO AMEND SECTION 7-7-240, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN EDGEFIELD COUNTY, SO AS TO REVISE AND RENAME CERTAIN VOTING PRECINCTS OF EDGEFIELD COUNTY, TO DESIGNATE A MAP NUMBER FOR THE MAP ON WHICH LINES OF THESE PRECINCTS ARE DELINEATED AND MAINTAINED BY THE OFFICE OF RESEARCH AND STATISTICS OF THE STATE BUDGET AND CONTROL BOARD, TO PROVIDE THAT THE POLLING PLACES FOR EDGEFIELD COUNTY MUST BE DETERMINED BY THE REGISTRATION AND ELECTIONS COMMISSION FOR EDGEFIELD COUNTY WITH THE APPROVAL OF A MAJORITY OF THE EDGEFIELD COUNTY LEGISLATIVE DELEGATION, AND TO CORRECT ARCHAIC LANGUAGE.
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Read the first time and referred to the Committee on Judiciary.

S. 871 (Word version) -- Senators Knotts, Hawkins, Grooms, Alexander, Williams, Gregory, Short, Ritchie, Cleary, Cromer, Ford, Courson, Elliott, Moore, Thomas, Campsen, Verdin, Richardson, Leatherman, Setzler, Hutto, Hayes, McGill, Mescher, Bryant, O'Dell, McConnell, Leventis, Peeler, Martin, Land, Ryberg, Fair, Lourie, Scott and Sheheen: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-3-750 SO AS TO PROVIDE THAT A PERSON CURRENTLY INCARCERATED BY THE DEPARTMENT OF CORRECTIONS FOR CERTAIN SEX OFFENSES INVOLVING A MINOR WHO IS RELEASED ON PROBATION, PAROLE, OR COMMUNITY SUPERVISION OR A PERSON CURRENTLY ON PROBATION, PAROLE, OR COMMUNITY SUPERVISION FOR CERTAIN SEX OFFENSES INVOLVING A MINOR MUST BE MONITORED BY AN ACTIVE ELECTRONIC MONITORING DEVICE FOR THE DURATION OF THE TIME THE PERSON IS REQUIRED TO BE UNDER

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SUPERVISION AND TO PROVIDE THAT A PERSON WHO VIOLATES A TERM OF PROBATION, PAROLE, OR COMMUNITY SUPERVISION MUST BE REQUIRED BY THE COURT TO BE MONITORED BY AN ACTIVE ELECTRONIC MONITORING DEVICE FOR THE DURATION OF THE TIME THE PERSON REMAINS ON THE SEX OFFENDER REGISTRY IN ADDITION TO OTHER APPROPRIATE ACTION BY THE COURT; BY ADDING SECTION 16-15-450 SO AS TO ADD THAT A PERSON WHO VIOLATES A PROVISION RELATING TO CHILD EXPLOITATION ALSO MUST BE ORDERED BY THE COURT TO BE MONITORED WITH AN ACTIVE ELECTRONIC MONITORING DEVICE; BY ADDING SECTION 23-3-540 SO AS TO ESTABLISH THE OFFENSE OF ASSISTING OR HARBORING AN UNREGISTERED SEX OFFENDER AND TO PROVIDE A PENALTY; BY ADDING SECTION 24-21-435 SO AS TO DEFINE THE TERM "ACTIVE ELECTRONIC MONITORING DEVICE", TO ESTABLISH THE OFFENSE OF TAMPERING WITH AN ACTIVE ELECTRONIC MONITORING DEVICE OR AN APPROVED ELECTRONIC MONITORING DEVICE, AND TO PROVIDE A PENALTY; TO AMEND SECTION 16-3-20, AS AMENDED, RELATING TO PUNISHMENT FOR MURDER, SO AS TO ADD TO THE LIST OF AGGRAVATING CIRCUMSTANCES THAT THE MURDER WAS COMMITTED BY A PERSON DEEMED A SEXUALLY VIOLENT PREDATOR; TO AMEND SECTION 16-3-652, RELATING TO CRIMINAL SEXUAL CONDUCT IN THE FIRST DEGREE, SO AS TO REVISE THE PENALTY FOR A PERSON CONVICTED OF CRIMINAL SEXUAL CONDUCT WITH A MINOR IN THE FIRST DEGREE AND TO REQUIRE THAT THE PERSON MUST BE ORDERED BY THE COURT TO BE MONITORED WITH AN ACTIVE ELECTRONIC MONITORING DEVICE UPON RELEASE FROM INCARCERATION FOR THE DURATION OF TIME THE PERSON IS REQUIRED TO REMAIN ON THE SEX OFFENDER REGISTRY; TO AMEND SECTION 16-3-653 RELATING TO CRIMINAL SEXUAL CONDUCT IN THE SECOND DEGREE, SO AS TO PROVIDE A PENALTY FOR A PERSON CONVICTED OF CRIMINAL SEXUAL CONDUCT WITH A MINOR IN THE SECOND DEGREE AND TO REQUIRE THAT THE PERSON MUST BE ORDERED BY THE COURT TO BE MONITORED WITH AN ACTIVE ELECTRONIC MONITORING DEVICE UPON RELEASE FROM INCARCERATION FOR THE DURATION OF TIME THE PERSON IS REQUIRED TO REMAIN

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ON THE SEX OFFENDER REGISTRY; TO AMEND SECTION 16-3-656, RELATING TO ASSAULTS WITH INTENT TO COMMIT CRIMINAL SEXUAL CONDUCT, SO AS TO PROVIDE THAT A PERSON CONVICTED OF ASSAULT WITH INTENT TO COMMIT A CRIMINAL DOMESTIC VIOLENCE OFFENSE WHO IS REQUIRED TO REGISTER ON THE SEX OFFENDER REGISTRY AND THE VICTIM IS A MINOR, THE PERSON'S SENTENCE MUST INCLUDE THAT HE BE MONITORED WITH AN ACTIVE ELECTRONIC MONITORING DEVICE UPON RELEASE FROM INCARCERATION FOR THE DURATION OF TIME HE IS REQUIRED TO REMAIN ON THE SEX OFFENDER REGISTRY; TO AMEND SECTION 16-3-810, RELATING TO ENGAGING A CHILD FOR A SEXUAL PERFORMANCE, AND SECTION 16-3-820, RELATING TO PRODUCING, DIRECTING, OR PROMOTING A SEXUAL PERFORMANCE BY A CHILD, BOTH SO AS TO REQUIRE THAT IN ADDITION TO OTHER PENALTIES THE PERSON MUST BE ORDERED BY THE COURT TO BE MONITORED WITH AN ACTIVE ELECTRONIC MONITORING DEVICE UPON RELEASE FROM INCARCERATION FOR THE DURATION OF TIME THE PERSON IS REQUIRED TO REMAIN ON THE SEX OFFENDER REGISTRY; TO AMEND SECTION 16-3-910, RELATING TO KIDNAPPING, SO AS TO REQUIRE THAT IN ADDITION TO THE PENALTY PROVIDED THE PERSON CONVICTED OF KIDNAPPING, IF THE VICTIM IS UNDER THE AGE OF EIGHTEEN AND THE PERSON IS NOT A PARENT, MUST BE ORDERED BY THE COURT TO BE MONITORED WITH AN ACTIVE ELECTRONIC MONITORING DEVICE UPON RELEASE FROM INCARCERATION FOR THE DURATION OF TIME THE PERSON IS REQUIRED TO REMAIN ON THE SEX OFFENDER REGISTRY; TO AMEND SECTION 16-15-20, RELATING TO INCEST, SO AS TO REQUIRE THAT IN ADDITION TO THE PENALTY PROVIDED THE PERSON MUST BE ORDERED BY THE COURT TO BE MONITORED WITH AN ACTIVE ELECTRONIC MONITORING DEVICE UPON RELEASE FROM INCARCERATION FOR THE DURATION OF TIME THE PERSON IS REQUIRED TO REMAIN ON THE SEX OFFENDER REGISTRY; TO AMEND SECTION 16-15-140, RELATING TO COMMITTING OR ATTEMPTING TO COMMIT A LEWD ACT UPON A CHILD UNDER SIXTEEN, SO AS TO REQUIRE THAT IN ADDITION TO THE PENALTY PROVIDED THE PERSON

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MUST BE ORDERED BY THE COURT TO BE MONITORED WITH AN ACTIVE ELECTRONIC MONITORING DEVICE UPON RELEASE FROM INCARCERATION FOR THE DURATION OF TIME THE PERSON IS REQUIRED TO REMAIN ON THE SEX OFFENDER REGISTRY; TO AMEND SECTION 16-15-342, RELATING TO CRIMINAL SOLICITATION OF A MINOR, SO AS TO REQUIRE THAT IN ADDITION TO THE PENALTY PROVIDED THE PERSON MUST BE ORDERED BY THE COURT TO BE MONITORED WITH AN ACTIVE ELECTRONIC MONITORING DEVICE UPON RELEASE FROM INCARCERATION FOR THE DURATION OF TIME THE PERSON IS REQUIRED TO REMAIN ON THE SEX OFFENDER REGISTRY; TO AMEND SECTION 23-3-460, AS AMENDED, RELATING TO ANNUAL REGISTRATION FOR LIFE FOR PURPOSES OF THE SEX OFFENDER REGISTRY, SO AS TO PROVIDE FOR REGISTRATION EVERY SIX MONTHS RATHER THAN ANNUALLY; AND TO AMEND SECTION 23-3-530, RELATING TO THE PROTOCOL MANUAL DEVELOPED BY THE STATE LAW ENFORCEMENT DIVISION FOR THE SEX OFFENDER REGISTRY, SO AS TO PROVIDE CERTAIN NONEXCLUSIVE REQUIREMENTS THAT MUST BE INCLUDED IN THE PROTOCOL MANUAL.
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Read the first time and referred to the Committee on Judiciary.

S. 872 (Word version) -- Senator Lourie: A SENATE RESOLUTION TO CONGRATULATE THE A. C. FLORA MEN'S TENNIS TEAM ON THEIR IMPRESSIVE CLASS AAA STATE CHAMPIONSHIP AND TO COMMEND THE PLAYERS AND THEIR COACH, JOE BAILEY, ON AN EXCEPTIONAL 15-0 SEASON.
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The Senate Resolution was adopted.

S. 873 (Word version) -- Senators Williams and Elliott: A SENATE RESOLUTION TO EXPRESS THE SINCERE SORROW OF THE MEMBERS OF THE SOUTH CAROLINA SENATE UPON THE DEATH OF MR. THADDEUS ROGERS OF MULLINS IN MARION COUNTY AND TO CONVEY THE DEEPEST SYMPATHY TO HIS FAMILY AND MANY FRIENDS.
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The Senate Resolution was adopted.

Printed Page 2788 . . . . . Thursday, May 19, 2005

H. 3569 (Word version) -- Rep. Bailey: A BILL TO AMEND ACT 536 OF 1986, AS AMENDED, RELATING TO THE ELECTION OF THE BOARD OF TRUSTEES FOR SUMMERVILLE SCHOOL DISTRICT NO. 2 IN DORCHESTER COUNTY, SO AS TO CHANGE THE BOUNDARY THAT SEPARATES SUMMERVILLE SCHOOL DISTRICT NO. 2 IN DORCHESTER COUNTY AND SCHOOL DISTRICT NO. 4 IN DORCHESTER COUNTY; 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.

Read the first time and on motion of Senator MATTHEWS, referred to the Dorchester County Delegation.

H. 4138 (Word version) -- Rep. Mack: A CONCURRENT RESOLUTION TO RECOGNIZE AND COMMEND THE SOUTH CAROLINA ASSOCIATION OF THE DEAF AND ITS MEDIA PARTNERS, WIS-TV, WYFF, WCSC, AND WBTW FOR THE CREATION AND OPERATION OF THE REAL-TIME CLOSED CAPTIONING PROJECT AND FOR THEIR COMMITMENT TO PROVIDING EQUAL ACCESS TO INFORMATION FOR THE HEARING IMPAIRED CITIZENS OF OUR STATE.

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

REPORTS OF STANDING COMMITTEES

Senator COURSON from the Committee on Education submitted a majority favorable with amendment and Senator LEVENTIS a minority unfavorable report on:

H. 3010 (Word version) -- Reps. W.D. Smith, Wilkins, G.R. Smith, Vaughn, Harrison, Davenport, Sandifer, Coates, Young, Leach, Viers, Littlejohn, Rice, Hinson, Clark, Walker, Mahaffey, Duncan, Hagood and Clemmons: A BILL TO AMEND CHAPTER 40, TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CHARTER SCHOOLS, SO AS TO PROVIDE FOR THE CREATION OF A CAROLINA PUBLIC CHARTER SCHOOL DISTRICT, ITS GOVERNANCE, AND ITS POWERS AND DUTIES; AND TO PROVIDE FOR THE MANNER IN WHICH A CHARTER SCHOOL SPONSORED BY THE CAROLINA PUBLIC CHARTER SCHOOL

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DISTRICT MUST BE FORMED, FUNDED, REGULATED, AND GOVERNED.

Ordered for consideration tomorrow.

Senator J. VERNE SMITH from the Committee on Labor, Commerce and Industry submitted a favorable with amendment report on:

H. 3383 (Word version) -- Reps. Loftis, Cato, Leach, Frye, Barfield, Hosey, J.R. Smith and Witherspoon: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 10, TITLE 40 SO AS TO ENACT THE FIRE PROTECTION SPRINKLER SYSTEMS ACT, INCLUDING PROVISIONS TO LICENSE AND REGULATE THE FIRE SPRINKLER SYSTEMS INDUSTRY, AND AMONG OTHER THINGS, TO ESTABLISH LICENSURE AND LICENSURE RENEWAL REQUIREMENTS AND FEES, TO PROVIDE GROUNDS FOR MISCONDUCT AND SANCTIONS FOR MISCONDUCT, AND TO FURTHER PROVIDE FOR THE LICENSURE AND REGULATION OF FIRE SPRINKLER CONTRACTORS AND FIRE SPRINKLER SYSTEMS.

Ordered for consideration tomorrow.

Senator COURSON from the Committee on Education submitted a favorable with amendment report on:

H. 3673 (Word version) -- Rep. Kirsh: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 2 TO CHAPTER 101 OF TITLE 59, RELATING TO INSTITUTIONS OF HIGHER LEARNING, SO AS TO PROVIDE THAT THESE INSTITUTIONS OF HIGHER LEARNING MAY SPEND FEDERAL AND OTHER NONSTATE APPROPRIATED SOURCES OF REVENUE TO PROVIDE LUMP-SUM BONUSES, TO PROVIDE THAT THESE INSTITUTIONS MAY OFFER EDUCATIONAL FEE WAIVERS TO NO MORE THAN FOUR PERCENT OF THE TOTAL STUDENT BODY, TO PROVIDE THAT THESE INSTITUTIONS MAY ESTABLISH RESEARCH GRANT POSITIONS FUNDED BY CERTAIN GRANTS, TO PROVIDE THE CONDITIONS FOR THE ESTABLISHMENT OF THESE POSITIONS, TO PROVIDE THAT THESE INSTITUTIONS MAY OFFER AND FUND, FROM ANY SOURCE OF REVENUE, HEALTH INSURANCE TO FULL-TIME GRADUATE ASSISTANTS, TO PROVIDE THAT THE BOARD OF TRUSTEES OF THESE INSTITUTIONS IS VESTED WITH CERTAIN POWERS

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OF EMINENT DOMAIN, AND TO PROVIDE THAT THESE INSTITUTIONS MAY NEGOTIATE FOR ITS ANNUAL AUDIT AND QUALITY REVIEW PROCESS WITH REPUTABLE CERTIFIED PUBLIC ACCOUNTANT FIRMS SELECTED FROM A LIST PREAPPROVED BY THE STATE AUDITOR'S OFFICE; BY ADDING SECTION 59-101-430 SO AS TO AUTHORIZE THE GOVERNING BODY OF A STATE-SUPPORTED INSTITUTION OF HIGHER LEARNING TO ENTER INTO GROUND LEASE OR LEASE-PURCHASE AGREEMENTS WITH A PRIVATE ENTITY FOR THE CREATION AND OPERATION OF AN ON-CAMPUS FACILITY, THE PURPOSE OF WHICH MUST BE DETERMINED BY THE GOVERNING BODY, AND TO PROVIDE FOR THE APPROVALS NECESSARY TO ENTER INTO THE AGREEMENT AND FOR SPECIFIC TERMS AND CONDITIONS WHICH MUST BE A PART OF THE AGREEMENT; BY ADDING SECTION 59-101-440 SO AS TO PROVIDE THAT INSTITUTIONS OF HIGHER LEARNING MAY EMPLOY INSIDE OR OUTSIDE COUNSEL TO ADVISE IT OR REPRESENT IT IN ANY MATTER EXCEPT A LITIGATION MATTER WITHOUT THE APPROVAL OF THE ATTORNEY GENERAL; BY ADDING SECTION 59-150-356 SO AS TO PROVIDE THAT THE COMMISSION ON HIGHER EDUCATION IN DEVELOPING THE APPLICATION AND REVIEW PROCESS FOR TECHNOLOGY GRANTS FROM THE EDUCATION LOTTERY ACCOUNT FOR FOUR-YEAR PUBLIC INSTITUTIONS SHALL DEVELOP A FORMULA FOR THE ALLOCATION OF THESE GRANTS WHICH IS NOT COMPETITIVELY BASED IN ORDER TO PERMIT MULTI-YEAR INVESTMENT APPROACHES; AND TO REPEAL ARTICLE 3, CHAPTER 101, TITLE 59 OF THE 1976 CODE RELATING TO HIGHER EDUCATION REGULATORY, PROCEDURAL, AND FINANCIAL MATTERS.

Ordered for consideration tomorrow.

Senator J. VERNE SMITH from the Committee on Labor, Commerce and Industry submitted a favorable report on:

H. 3724 (Word version) -- Reps. Funderburk, G.M. Smith, Lucas, Ott, Bales, Cobb-Hunter, Frye, Hardwick, Harvin, McLeod, J.H. Neal, Weeks, Herbkersman, Neilson and Bowers: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 31-7-25 AND 31-7-130 SO AS TO PROVIDE ADDITIONAL FINDINGS OF THE GENERAL ASSEMBLY WITH RESPECT TO

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PROPERTY AVAILABLE FOR REDEVELOPMENT FOR PURPOSES OF THE TAX INCREMENT FINANCING ACT FOR COUNTIES AND TO PROVIDE THAT THE PROVISIONS OF THIS ACT DO NOT RELIEVE A GOVERNMENT-OWNED TELECOMMUNICATIONS SERVICE FROM THE LIMITATIONS IMPOSED ON THOSE SERVICES BY LAW; TO AMEND SECTION 31-7-20, RELATING TO EXISTING FINDINGS FOR PURPOSES OF THE ACT, SO AS TO EXTEND EXISTING FINDINGS WITH RESPECT TO THE ACT; TO AMEND SECTION 31-7-30, RELATING TO DEFINITIONS FOR PURPOSES OF THE ACT, SO AS TO REVISE APPLICABLE DEFINITIONS TO EXTEND THE APPLICATION OF THE ACT TO MORE RURAL AREAS AND ADD ADDITIONAL ELEMENTS TO DEVELOPMENT PROJECTS NECESSARY TO ASSIST SUCH RURAL AREAS; TO AMEND SECTION 31-7-80, RELATING TO THE FINDINGS REQUIRED FOR A REDEVELOPMENT PROJECT ORDINANCE, SO AS TO REVISE THESE FINDINGS; AND TO AMEND SECTION 31-7-120, RELATING TO JOINTLY ADOPTED MUNICIPAL AND COUNTY REDEVELOPMENT PLANS, SO AS TO AUTHORIZE COUNTIES JOINTLY BY INTERGOVERNMENTAL AGREEMENTS TO ESTABLISH A MULTI-COUNTY OR REGIONAL AUTHORITY TO ESTABLISH REDEVELOPMENT PLANS AND PROPERTY WHEN SUCH PROJECTS HAVE ECONOMIC IMPACT BEYOND A SINGLE COUNTY AND PROVIDE FOR ALL SUCH AUTHORITIES TO ACT BY INTERGOVERNMENTAL AGREEMENT AND ORDINANCES OF COUNTIES PARTY TO THE AGREEMENT.

Ordered for consideration tomorrow.

Senator J. VERNE SMITH from the Committee on Labor, Commerce and Industry submitted a favorable with amendment report on:

H. 3883 (Word version) -- Reps. Duncan, Cato, Scarborough, Tripp, Mahaffey and Thompson: A BILL TO AMEND SECTION 40-29-200, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MANUFACTURED HOUSING LICENSE, SO AS TO EXEMPT FROM THIS LICENSING REQUIREMENT A LICENSED REAL ESTATE SALESMAN OR LICENSED REAL ESTATE BROKER WHO NEGOTIATES OR ATTEMPTS TO NEGOTIATE THE SALE OR OTHER DISPOSITION OF A USED MANUFACTURED OR MOBILE HOME IN CONJUNCTION WITH

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THE SALE OR OTHER DISPOSITION OF THE UNDERLYING REAL ESTATE.

Ordered for consideration tomorrow.

Senator COURSON from the Committee on Education submitted a favorable report on:

H. 3892 (Word version) -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE BOARD OF EDUCATION, RELATING TO UTILIZATION OF GENERIC TEACHER CERTIFICATION, DESIGNATED AS REGULATION DOCUMENT NUMBER 2964, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Ordered for consideration tomorrow.

Senator COURSON from the Committee on Education submitted a favorable with amendment report on:

H. 3906 (Word version) -- Reps. Harrell, Bales and Neilson: A BILL TO AMEND SECTION 59-104-20, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PALMETTO FELLOWS SCHOLARSHIP PROGRAM, SO AS TO PROVIDE ALTERNATE QUALIFICATIONS FOR THE SCHOLARSHIP.

Ordered for consideration tomorrow.

Message from the House

Columbia, S.C., May 19, 2005

Mr. President and Senators:

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

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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.
Very respectfully,
Speaker of the House

Received as information.

H. 3155--REPORT OF THE
COMMITTEE OF CONFERENCE ADOPTED

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.

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

Senator HAYES spoke on the report.

On motion of Senator HAYES, the Report of the Committee of Conference to H. 3155 was adopted as follows:

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H. 3155--Conference Report
CONFERENCE REPORT

H. 3155

The General Assembly, Columbia, S.C., May 17, 2005

The COMMITTEE OF CONFERENCE, to whom was referred:

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.

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

That the same do pass with the following amendments:

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

/ SECTION 1. 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

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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 must lay the foundation for the clusters of study system in elementary school 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 complete successfully their individual graduation plans, preparing them for a seamless transition to relevant employment, further training, or postsecondary study.

Section 59-59-30. This chapter must be implemented fully by July 1, 2011, at which time the council created pursuant to Section 59-59-170 shall cease to exist. The Department of Education shall provide administrative support and staffing to the council to carry out its responsibilities under this chapter.

Section 59-59-40. During the 2005-06 school year, 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.

Section 59-59-50. (A) Before July 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. These 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;

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(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) The Department of Education is to include in the state models and prototypes for individual graduation plans and curriculum framework the flexibility for a student to develop an individualized plan for graduation utilizing courses offered within the clusters at the school of attendance. Any plan of this type is to be approved by the student, parent or guardian, and the school guidance staff.

Section 59-59-55. The State Board of Education shall develop a state model for addressing at-risk students. This model shall include various programs and curriculum proven to be effective for at-risk students.

Section 59-59-60. Before July 1, 2007, school districts shall:

(1) organize high school curricula around a minimum of three clusters of study and cluster majors. The curricula must be designed to provide a well-rounded education for students by fostering artistic creativity, critical thinking, and self-discipline through the teaching of academic content, knowledge, and skills that students will use in the workplace, further education, and life;

(2) promote increased awareness and career counseling by providing access to the South Carolina Occupational Information System for all schools. However, if a school chooses another occupational information system, that system must be approved by the State Department of Education.

Section 59-59-70. During the 2006-07 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 effectively to involve parents, guardians, or individuals appointed by the parent or guardian to serve as their designee 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.

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Section 59-59-80. During the 2006-07 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.

Section 59-59-90. 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 interest inventories and information to assist 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, guardians, or individuals appointed by the parents or guardians to serve as their designee shall select a preferred cluster of study and develop an individual graduation plan, as provided for in Section 59-59-140.

Section 59-59-100. (A) By the 2006-07 school year, middle schools and by 2007-08 high schools shall provide students with the services of a career specialist who has obtained a bachelor's degree and who has successfully completed the national Career Development Facilitator (CDF) certification training or certified guidance counselor having completed the Career Development Facilitator certification training. This career specialist shall work under the supervision of a certified guidance counselor. By the 2007-08 school year, each middle and high school shall have a student-to-guidance personnel ratio of three hundred to one. Guidance personnel include certified school guidance counselors and career specialists.

(B) Career specialists currently employed by the sixteen tech prep consortia and their performance responsibilities related to the delivery of tech prep or school-to-work activities must be supervised by the State Department of Education's Office of Career and Technology Education in conjunction with the immediate site supervisor of the tech prep consortia.

Section 59-59-105. An individual employed by school districts to provide career services pursuant to Section 59-59-100 shall work to ensure the coordination, accountability, and delivery of career awareness, development, and exploration to students in kindergarten through twelfth grade. To ensure the implementation and delivery of this chapter, this individual shall:

(1) coordinate and present professional development workshops in career development and guidance for teachers, school counselors, and work-based constituents;

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(2) assist schools in promoting the goals of quality career development of students in kindergarten through twelfth grade;

(3) assist school counselors and students in identifying and accessing career information and resource material;

(4) provide educators, parents, and students with information on career and technology education programs offered in the district;

(5) support students in the exploration of career clusters and the selection of an area of academic focus within a cluster of study;

(6) learn and become familiar with ways to improve and promote career development opportunities within the district;

(7) attend continuing education programs on the certified career development facilitator curriculum sponsored by the State;

(8) assist with the selection, administration, and evaluation of career interest inventories;

(9) assist with the implementation of the district's student career plan or individual graduation plan;

(10) assist schools in planning and developing parent information on career development;

(11) coordinate with school counselors and administration career events, career classes, and career programming;

(12) coordinate community resources and citizens representing diverse occupations in career development activities for parents and students; and

(13) assist with the usage of computer assisted career guidance systems.

Section 59-59-110. 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, under their supervision, shall counsel students during the ninth and tenth grades to further define their career cluster goals and individual graduation plans, and before the end of the second semester of the tenth grade, tenth grade students shall have declared an area of academic focus within a cluster of study. Throughout high school, students must be provided guidance activities and career awareness programs that combine counseling on career options and experiential learning with academic planning to assist students in fulfilling their individual graduation plans. 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

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transfer to a high school offering that student's career cluster if not offered by the high school in his attendance zone.

Section 59-59-120. School guidance counselors and career specialists shall limit their activities to guidance and counseling and may not perform administrative tasks.

Section 59-59-130. By the 2009-10 school year, each high school shall implement the principles of the 'High Schools that Work' organizational model or have obtained approval from the Department of Education for another cluster or major organizational model.

Section 59-59-140. An individual graduation plan is a student specific educational plan detailing the courses necessary for the student to prepare for graduation and to successfully transition into the workforce or postsecondary education. 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) include core academic subjects, which must include, but are not limited to, English, math, science, and social studies to ensure that requirements for graduation will be met;

(4) include experience-based, 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 postsecondary education;

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

(7) be approved by a certified school guidance counselor and the student's parents, guardians, or individuals appointed by the parents or guardians to serve as their designee.

Section 59-59-150. By July 2007, the State Board of Education shall promulgate regulations outlining specific objective criteria for districts to use in the identification of students at risk for being poorly prepared for the next level of study or for dropping out of school. The criteria must include diagnostic assessments to identify strengths and weaknesses in the core academic areas. The process for identifying these students must be closely monitored by the State Department of Education in collaboration with school districts to ensure that students are being properly identified and provided timely, appropriate guidance and assistance and to ensure that no group is disproportionately

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represented. The regulations also must include evidence-based model programs for at-risk students designed to ensure that these students have an opportunity to graduate with a state high school diploma. By the 2007-08 school year, each high school of the State shall implement one or more of these programs to ensure that these students receive the opportunity to complete the necessary requirements to graduate with a state high school diploma and build skills to prepare them to enter the job market successfully. The regulation also must include an evaluation of model programs in place in each high school to ensure the programs are providing students an opportunity to graduate with a state high school diploma.

Section 59-59-160. Parental participation is an integral component of the clusters of study system. Beginning with students in the sixth grade and continuing through high school, schools must schedule annual parent counseling conferences to assist parents, guardians, or individuals appointed by the parents or guardians 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. In order to protect the interests of every student, a mediation process that includes parent advocates must be developed, explained, and made available for conferences upon request of the parent or student.

Section 59-59-170. (A) There is created the Education and Economic Development Coordinating Council. 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;

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(b) a principal;

(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

(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 state-wide 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, and the Governor are to ensure that the demographics and diversity of this State are represented.

(B) The council shall:

(1) advise the Department of Education on the implementation of this chapter;

(2) review accountability and performance measures for implementation of this chapter;

(3) designate and oversee the coordination and establishment of the regional centers established pursuant to Section 59-59-180.

(4) report annually by December first 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 and its ability to provide a better prepared workforce and student success in postsecondary education;

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

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(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, enforcement procedures, which may include monitoring and auditing functions, and addressing consequences for noncompliance.

Section 59-59-180. (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 shall 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.

(E)(1) The regional centers are to assume the geographic configuration of the Local Workforce Investment Areas (LWIA) of the South Carolina Workforce Investment Act. Each regional center shall have an advisory board comprised of a school district superintendent, high school principal, local workforce investment board chairperson, technical college president, four-year college or university representative, career center director or school district career and

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technology education coordinator, parent-teacher organization representative, and 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 center boards.

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

Section 59-59-190. (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 the regional education 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;

(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 59-59-200. Beginning with the 2006-07 academic year, colleges of education shall include in their training of teachers, guidance counselors, and administrators the following: 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

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evaluation system established in Chapter 26, Title 59, and the principal's evaluation system established in Section 59-24-40 must include a review of performance in career exploration and guidance. The department also shall develop programs to train educators in contextual teaching.

Section 59-59-210. (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 advisory committee, in collaboration with the Department of Education, shall coordinate work to study the content and rigor of high school courses in order to provide a seamless pathway to postsecondary education.

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

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Section 59-59-220. With the implementation of the clusters of study system, appropriate resources and instructional materials, aligned with the state's content standards, must be developed or adopted by the State Department of Education and made available to districts.

Section 59-59-230. 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 59-59-240. The requirements of this chapter do not apply to private schools or to home schools.

Section 59-59-250. 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. Section 59-17-135(B) of the 1976 Code is amended to read:

"(B) Each local school board of trustees of the State must develop a policy addressing character education. Any character education program implemented by a district as a result of an adopted policy must, to the extent possible, incorporate character traits including, but not limited to, the following: respect for authority and respect for others, honesty, self-control, cleanliness, courtesy, good manners, cooperation, citizenship, patriotism, courage, fairness, kindness, self-respect, compassion, diligence, good work ethics, sound educational habits, generosity, punctuality, cheerfulness, patience, sportsmanship, loyalty, and virtue. Local school boards must include all sectors of the community, as referenced in subsection (A)(4), in the development of a policy and in the development of any program implemented as a result of the policy. As part of any policy and program developed by the local school board, an evaluation component must be included."

SECTION 3. Section 59-18-900(D) of the 1976 Code is amended to read:

"(D) The report card must include a comprehensive set of performance indicators with information on comparisons, trends, needs, and performance over time which is helpful to parents and the public in evaluating the school. Special efforts are to be made to ensure that the information contained in the report cards is provided in an easily

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understood manner and a reader friendly format. This information should also provide a context for the performance of the school. Where appropriate, the data should yield disaggregated results to schools and districts in planning for improvement. The report card should include information in such areas as programs and curriculum, school leadership, community and parent support, faculty qualifications, evaluations of the school by parents, teachers, and students. In addition, the report card must contain other criteria including, but not limited to, information on promotion and retention ratios, disciplinary climate, dropout ratios, dropout reduction data, student and teacher ratios, and attendance data."

SECTION 4. Act 450 of 1994 and Section 59-52-95 of the 1976 Code are repealed.

SECTION 5. This act takes effect upon approval by the Governor./

Amend title to conform.

/s/Hon. Robert W. Hayes, Jr.      /s/Hon. Michael A. Anthony
/s/Hon. Luke A. Rankin, Sr.       /s/Hon. Ronald P. Townsend
/s/Hon. Linda H. Short            /s/Hon. Robert E. Walker
On Part of the Senate.                   On Part of the House.

,and a message was sent to the House accordingly.

H. 3155--ENROLLED FOR RATIFICATION

The Report of the Committee of Conference having been adopted by both Houses, ordered that the title be changed to that of an Act, and the Act enrolled for Ratification.

A message was sent to the House accordingly.

Message from the House

Columbia, S.C., May 18, 2005

Mr. President and Senators:

The House respectfully informs your Honorable Body that it insists upon the amendments proposed by the House to:

Printed Page 2807 . . . . . Thursday, May 19, 2005

OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 10, ENTITLED PHYSICAL EDUCATION AND NUTRITIONAL STANDARDS, TO TITLE 59 SO AS TO ESTABLISH PHYSICAL EDUCATION AND NUTRITIONAL STANDARDS IN ELEMENTARY SCHOOLS, TO PROVIDE FOR THE AMOUNT OF PHYSICAL EDUCATION INSTRUCTION A STUDENT IN KINDERGARTEN THROUGH FIFTH GRADE MUST RECEIVE EACH WEEK ON A PHASED-IN BASIS, PROVIDE FOR A MEASURE OF EFFECTIVENESS OF THE PHYSICAL EDUCATION PROGRAM IN ALL PUBLIC SCHOOLS, PROVIDE FOR A PHYSICAL EDUCATION ACTIVITY DIRECTOR, PROVIDE CERTAIN NUTRITIONAL STANDARDS FOR ELEMENTARY SCHOOLS, PROVIDE THAT ELEMENTARY SCHOOLS SHALL REMOVE CERTAIN FOOD AND DRINKS FROM VENDING MACHINES, PROVIDE THE MINIMUM AMOUNT OF TIME ELEMENTARY SCHOOL STUDENTS MUST HAVE TO EAT LUNCH, PROVIDE FOR THE ESTABLISHMENT OF A DISTRICT LEVEL AND AN ELEMENTARY SCHOOL LEVEL COORDINATED SCHOOL HEALTH ADVISORY COUNCIL AND PROVIDE ITS POWERS AND DUTIES, PROVIDE FOR NUTRITIONAL EDUCATION, AND PROVIDE A MEASURE OF EFFECTIVENESS OF HEALTH EDUCATION PROGRAMS.
asks for a Committee of Conference, and has appointed Reps. Walker, Townsend and Anthony to the committee on the part of the House.
Very respectfully,
Speaker of the House

Received as information.

H. 3499--CONFERENCE COMMITTEE APPOINTED

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

Printed Page 2808 . . . . . Thursday, May 19, 2005

KINDERGARTEN THROUGH FIFTH GRADE MUST RECEIVE EACH WEEK ON A PHASED-IN BASIS, PROVIDE FOR A MEASURE OF EFFECTIVENESS OF THE PHYSICAL EDUCATION PROGRAM IN ALL PUBLIC SCHOOLS, PROVIDE FOR A PHYSICAL EDUCATION ACTIVITY DIRECTOR, PROVIDE CERTAIN NUTRITIONAL STANDARDS FOR ELEMENTARY SCHOOLS, PROVIDE THAT ELEMENTARY SCHOOLS SHALL REMOVE CERTAIN FOOD AND DRINKS FROM VENDING MACHINES, PROVIDE THE MINIMUM AMOUNT OF TIME ELEMENTARY SCHOOL STUDENTS MUST HAVE TO EAT LUNCH, PROVIDE FOR THE ESTABLISHMENT OF A DISTRICT LEVEL AND AN ELEMENTARY SCHOOL LEVEL COORDINATED SCHOOL HEALTH ADVISORY COUNCIL AND PROVIDE ITS POWERS AND DUTIES, PROVIDE FOR NUTRITIONAL EDUCATION, AND PROVIDE A MEASURE OF EFFECTIVENESS OF HEALTH EDUCATION PROGRAMS.

Whereupon, Senators HAYES, SHORT and JACKSON were appointed to the Committee of Conference on the part of the Senate and a message was sent to the House accordingly.

HOUSE CONCURRENCE

S. 858 (Word version) -- Senator J. Verne Smith: A CONCURRENT RESOLUTION TO RECOGNIZE THE SOUTH CAROLINA GOVERNOR'S SCHOOL FOR THE ARTS AND HUMANITIES FOR ITS OUTSTANDING RANKING IN THE TOP TWO HUNDRED PUBLIC SCHOOLS IN THE NATION FOR THE NUMBER OF STUDENTS TAKING ADVANCED PLACEMENT AND INTERNATIONAL BACCALAUREATE TESTS AS COMPARED TO THE NUMBER OF GRADUATING SENIORS, AS REPORTED BY NEWSWEEK MAGAZINE.

Returned with concurrence.

Received as information.

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

HOUSE BILLS RETURNED

The following House Bills were read the third time and ordered returned to the House with amendments:

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H. 3827 (Word version) -- Reps. Loftis, Edge, R. Brown, Frye, Sandifer, W.D. Smith, Vick, Witherspoon, Davenport, Perry, Mahaffey, Miller and Clemmons: A BILL TO AMEND SECTION 48-39-210, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE AUTHORITY OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL TO PERMIT OR DENY ALTERATION OR UTILIZATION WITHIN AREAS DESIGNATED AS CRITICAL AREAS, SO AS TO DELETE CERTAIN PROVISIONS REQUIRED TO BE STATED ON A SURVEY DELINEATING COASTAL WATERS OR TIDELANDS; TO DELETE A REFERENCE TO CRITICAL AREA LINES AFFECTING SUBDIVIDED RESIDENTIAL LOTS WITH REGARD TO THE THREE YEAR EXPIRATION OF CRITICAL AREA LINES; TO DELETE THE ERODING COASTAL STREAM BANK EXCEPTION TO THE THREE YEAR EXPIRATION OF CRITICAL AREA LINES; AND TO PROVIDE THAT A CRITICAL AREA DELINEATION INCORPORATED OR REFERENCED IN A PERMIT IS VALID FOR THE TERM OF THE PERMIT.

H. 3539 (Word version) -- Reps. Wilkins, Harrison, Harrell, G.M. Smith, Young, Simrill, Cobb-Hunter, Altman, Sinclair, Talley, J.E. Smith, Coleman, Agnew, Whipper, Emory, Hagood, G.R. Smith, Hamilton, Tripp, Loftis and Vaughn: A BILL TO AMEND SECTION 8-13-770, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PROHIBITION ON MEMBERS OF THE GENERAL ASSEMBLY SERVING ON BOARDS AND COMMISSIONS, SO AS TO ADD THE COMMISSION ON INDIGENT DEFENSE TO THE LIST OF EXCEPTIONS; TO AMEND ARTICLE 3, CHAPTER 3, TITLE 17, RELATING TO THE COMMISSION ON INDIGENT DEFENSE, SO AS TO REVISE THE MEMBERSHIP OF THE COMMISSION, TO REVISE THE DUTIES OF THE COMMISSION, THE OFFICE OF INDIGENT DEFENSE, AND THE EXECUTIVE DIRECTOR OF THE OFFICE OF INDIGENT DEFENSE, TO CREATE THE DIVISION OF APPELLATE DEFENSE WITHIN THE OFFICE OF INDIGENT DEFENSE, TO TRANSFER ALL DUTIES, RIGHTS, AND OBLIGATIONS OF THE FORMER COMMISSION AND OFFICE OF APPELLATE DEFENSE TO THE DIVISION OF APPELLATE DEFENSE, TO PROVIDE SPECIFICALLY FOR THE DUTIES AND OPERATION OF THE DIVISION OF APPELLATE DEFENSE, AND

Printed Page 2810 . . . . . Thursday, May 19, 2005

TO REPEAL CHAPTER 4, TITLE 17 RELATING TO THE COMMISSION AND OFFICE OF APPELLATE DEFENSE.

COMMITTEE AMENDMENT AMENDED AND ADOPTED
READ THE THIRD TIME, RETURNED TO THE HOUSE
WITH AMENDMENTS

H. 3694 (Word version) -- Reps. Miller, Cotty, Anderson, Vaughn, Clark, Neilson, Altman, Battle, G. Brown, Davenport, Edge, Frye, Hagood, Hamilton, Rivers, Sinclair, D.C. Smith and Wilkins: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-19-170 ENACTING THE "GAMBLING CRUISE PROHIBITION ACT" SO AS TO PROHIBIT GAMBLING OR THE REPAIR OF GAMBLING DEVICES ON A VESSEL IN A VOYAGE THAT BEGINS AND ENDS WITHIN THIS STATE, TO PROHIBIT THE OPERATION OF A VESSEL THAT TRANSPORTS PERSONS TO ANOTHER VESSEL FOR THE PURPOSE OF GAMBLING IF BOTH THE TRANSPORTING VESSEL AND THE VESSEL ON WHICH A GAMBLING DEVICE IS USED OR REPAIRED BEGINS AND ENDS ITS VOYAGE IN THIS STATE, AND TO PROVIDE DEFINITIONS AND PENALTIES FOR VIOLATION.

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

By prior motion of Senator McCONNELL of Wednesday, May 18, 2005, a perfecting amendment to the amendment proposed by the Committee on Judiciary was taken up for immediate consideration and adopted.

Senator McCONNELL proposed the following amendment (3694R001.GFM), which was adopted:

Amend the committee amendment, as and if amended, by striking the committee amendment in its entirety and inserting:

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

Printed Page 2811 . . . . . Thursday, May 19, 2005

without an intervening stop, but to exempt from county or municipal regulation passenger cruise liners, as defined in Section 3-11-100(5), as contained in SECTION 2 of this act, because passenger cruise liners are vessels principally engaged in destination cruises and are not vessels used primarily for the operation of gambling. Furthermore, passenger cruise liners do not burden the public health or safety of the county or municipality because their voyages are infrequent, their cruises are not principally operated for the purpose of gambling, and their itineraries predominantly involve voyages that include one or more intervening stops.

SECTION 2. Title 3 of the 1976 Code is amended by adding:

"CHAPTER 11

Gambling Cruise Act

Section 3-11-100. For purposes of this chapter:

(1) 'Gambling vessel' means a boat, ship, casino boat, watercraft, or barge kept, operated, or maintained for the purpose of gambling, with one or more gaming establishments aboard, that carries or operates gambling devices for the use of its passengers or otherwise provides facilities for the purpose of gambling, whether within or without the jurisdiction of this State, and whether it is anchored, berthed, lying to, or navigating, and the sailing, voyaging, or cruising, or any segment of the sailing, voyaging, or cruising begins and ends within this State.

(2) 'Gambling' or 'gambling device' means any game of chance and includes, but is not limited to, slot machines, punchboards, video poker or blackjack machines, keeno, roulette, craps, or any other gaming table type gambling or poker, blackjack, or any other card gambling game.

(3) 'Intervening stop' occurs when a vessel departs the territorial waters of this State and sails into United States or international waters, and between the time the vessel departs the territorial waters of this State and the time it returns to the territorial waters of this State, the vessel docks at a port of call in another state, possession of the United States, or foreign country.

(4) 'Destination cruise' means a cruise in which a vessel makes one or more intervening stops.

(5) 'Passenger cruise liner' means a vessel that:

(a) has a draft that is equal to or larger than the controlled depth of the intercoastal waterway as determined by the United States Army Corps of Engineers;

Printed Page 2812 . . . . . Thursday, May 19, 2005

(b) provides separate passenger cabins, including bathroom or head facilities, in a size reasonably suitable to accommodate living and sleeping space in a ratio of at least one cabin for every four passengers;

(c) contains kitchen or galley facilities and dining facilities reasonably suitable to offer and accommodate all of the vessel's passengers at seated meals in no more than two sittings for each of the meals at breakfast, lunch, and dinner times;

(d) offers other support facilities and services including, but not limited to, exercise facilities, gift shops, medical services, and musical programs;

(e) is principally engaged in entertaining and transporting passengers on destination cruises; and

(f) is certified or authorized by the United States Coast Guard or equivalent foreign authority to carry passengers for hire upon the open ocean without navigational limitations.

(6) 'Per passenger' means the number of passengers allowed on a vessel pursuant to its United States Coast Guard certificate of documentation or equivalent foreign documentation.

Section 3-11-200. (A) Except as provided for in subsection (B), the General Assembly delegates to a county for the unincorporated areas of a county, and to a municipality for the municipality, the authority conferred to this State by the United States Congress pursuant to the Johnson Act, as amended, 15 U.S.C. Sections 1171 through 1177. The authority delegated herein includes the power to regulate or prohibit gambling aboard gambling vessels while such vessels are outside the territorial waters of the State, when such vessels embark or disembark passengers within their respective jurisdictions for voyages that depart from the territorial waters of the State, sail into United States or international waters, and return to the territorial waters of the State without an intervening stop.

(B) The General Assembly specifically retains and does not delegate to a county or municipality the authority to regulate or prohibit gambling on passenger cruise liners, as defined in this chapter, which is conferred to this State by the United States Congress pursuant to the Johnson Act, as amended, 15 U.S.C. Sections 1171 through 1177.

(C) The authority delegated to a county or municipality under subsection (A) is delegated pursuant to Chapter 9 of Title 4 and Chapter 7 of Title 5, Code of Laws of South Carolina.

Section 3-11-210. A county or municipality adopting an ordinance regulating or prohibiting gambling vessels pursuant to Section 3-11-200 may assess only a civil penalty of not more than one hundred

Printed Page 2813 . . . . . Thursday, May 19, 2005

dollars per passenger for each violation, with an aggregate total in penalties not to exceed fifty thousand dollars per vessel for a twenty-four hour period. Additionally, a county or municipality may obtain injunctive relief against a person for violation of an ordinance regulating or prohibiting gambling vessels pursuant to Section 3-11-200.

Section 3-11-300. (A) The authority delegated to a county or municipality pursuant to this section is granted pursuant to Chapter 9 of Title 4 and Chapter 7 of Title 5 of the Code of Laws of South Carolina, 1976. This authority is separate from and in addition to the authority granted to a county or municipality pursuant to Sections 3-11-200 through 3-11-210, which authorize exercise of this state's Johnson Act authority pursuant to 15 U.S.C. Sections 1171 through 1177, except for passenger cruise liners.

(B) Except as provided for in subsection (C), the General Assembly delegates to a county for the unincorporated areas of a county, and to a municipality for the municipality, the authority to regulate or prohibit gambling aboard gambling vessels while such vessels are outside the territorial waters of the State, when such vessels embark or disembark passengers within their respective jurisdictions for voyages that depart from the territorial waters of the State, sail into United States or international waters, and return to the territorial waters of the State without an intervening stop.

(C) A county or municipality is prohibited from regulating or prohibiting gambling on passenger cruise liners, as defined in this chapter.

Section 3-11-310. A county or municipality adopting an ordinance regulating or prohibiting gambling vessels pursuant to Section 3-11-300 may assess only a civil penalty of not more than one hundred dollars per passenger for each violation, with an aggregate total in penalties not to exceed fifty thousand dollars per gambling vessel for a twenty-four hour period. Additionally, a county or municipality may obtain injunctive relief against a person for violation of an ordinance regulating or prohibiting gambling vessels pursuant to Section 3-11-300.

Section 3-11-320. Any county or municipal ordinance prohibiting or regulating gambling or gambling vessels pursuant to Sections 3-11-200 or 3-11-300 must not be construed to prohibit or regulate a passenger cruise liner from having gambling devices on board so long as there is no gambling allowed while the passenger cruise liner is within the territorial waters of the State.

Printed Page 2814 . . . . . Thursday, May 19, 2005

Section 3-11-400. (A) This chapter does not apply to any gambling activity conducted on United States-flagged or foreign-flagged vessels during travel from a foreign nation or another state or possession of the United States up to the point of first entry into South Carolina waters or during travel to a foreign nation or another state or possession of the United States from the point of departure from South Carolina waters, provided that such vessels make intervening stops as defined in this chapter. Nothing herein precludes prosecution for any other offense that is unlawful.

(B) The provisions of this chapter must not be construed to:

(1) repeal or modify any other provision of law relating to gambling, or any existing county or municipal ordinance regulating or prohibiting gambling or gambling vessels;

(2) repeal or modify any law with regard to bingo or the operation of a device or machine pursuant to Section 12-21-2720(A)(3);

(3) allow or permit gambling aboard any vessel, gambling vessel, or passenger cruise liner within the territorial waters of the State;

(4) preclude prosecution for any other applicable gambling offense under state law; or

(5) preclude prosecution for violations of 15 U.S.C. Sections 1172, 1173, 1174, or 1175, to the extent not otherwise prohibited by provisions of the South Carolina Constitution.

(C)(1) For purposes of this section, 'gross proceeds' means the total amount wagered or otherwise paid, in cash or credit, by a passenger or user of a gambling device aboard a gambling vessel.

(2) If a county or municipality does not adopt an ordinance prohibiting a gambling vessel from operating, or if a gambling vessel other than a passenger cruise liner is permitted to operate because that gambling vessel, on each cruise, makes an intervening stop in another State, possession of the United States, or foreign country, the county or municipality may assess a surcharge of up to ten percent of each ticket sold per gambling cruise, and a surcharge of up to five percent of the gross proceeds of each gambling vessel.

(3)(a) If a county or municipality assesses the surcharges set forth in item (2), then the proceeds of the surcharges are to be paid to the county or municipality from which the gambling vessel originates its cruise. The county or municipality is responsible for setting forth the procedures by which the proceeds are paid to the county or the municipality.

Printed Page 2815 . . . . . Thursday, May 19, 2005

(b)(i) Each gambling vessel must report to the Department of Revenue, on a monthly basis, the average daily percentage of winnings to losses for each gambling device used on a gambling vessel. The report must be delivered to the Department of Revenue on the twentieth day of the month for the preceding month, in a form and format determined by the department. If no gambling devices are used, the gambling vessel must report to the department that no gambling devices were used. The department must perform an annual audit to verify the accuracy of the reports.

(ii) A gambling vessel that fails to deliver the report of winnings and losses to the department may be assessed a civil penalty up to the amount of one hundred dollars per day per gambling device for each day that the report is late.

(iii) The department must make this information available, on a quarterly basis, to the governing body of the county or municipality from which the gambling vessel originates and to the general public. In addition, quarterly reports must be submitted to the Governor, the President Pro Tempore of the Senate, and the Speaker of the House of Representatives.

(iv) The department is authorized to promulgate regulations to implement the provisions of this subsection.

(D) When a county or municipality enacts an ordinance pursuant to Sections 3-11-200 or 3-11-300 prohibiting gambling vessels, and a gambling vessel business operating as of January 1, 2005, would cease operation because of enforcement of this ordinance, then the county or municipality must allow the continued operation of the gambling vessel business for a period of five years from the effective date of the county or municipal ordinance. If, after the enactment of an ordinance pursuant to Sections 3-11-200 or 3-11-300 prohibiting gambling vessels, a county or municipality subsequently enacts an ordinance allowing gambling vessels and then enacts a later ordinance prohibiting gambling vessels and a gambling vessel business, the county or municipality must allow the continued operation of the gambling vessel business for a period of five years from the effective date of the county or municipal ordinance. The gambling vessel business must only operate in the same location with no more than the number of vessels that were operating as of January 1, 2005. The provisions of this subsection are also applicable to a county or municipal ordinance substantially described in Section 3-11-500(A).

Section 3-11-500. (A) A county or municipal ordinance prohibiting gambling vessels enacted before the effective date of this chapter, to

Printed Page 2816 . . . . . Thursday, May 19, 2005

the extent that it is consistent with the provisions of this chapter, remains in full force and effect after the effective date of this chapter, and is considered as promulgated pursuant to the powers and authority delegated to counties and municipalities by this chapter.

(B) A county or municipality, in order to prohibit gambling vessels in accordance with the provisions of this chapter, may, after the effective date of this chapter, enact an ordinance that substantially reads as follows:

(1) The governing body of ______________________, in accordance with Section 3-11-200 of the Code of Laws of South Carolina, 1976, as amended, exercises the authority conferred to the State of South Carolina by the United States Congress pursuant to the Johnson Act, as amended, 15 U.S.C. Sections 1171 through 1177, and hereby prohibits within its jurisdiction the docking and embarkation or disembarkation of passengers aboard gambling vessels, as defined in Section 3-11-100(1) of the 1976 Code, that provide gambling aboard voyages that depart from the jurisdiction of ______________, leave the territorial waters of the State of South Carolina, sail into United States or international waters, and return to the territorial waters of the State of South Carolina, without making an intervening stop, as defined in Section 3-11-100(3) of the 1976 Code. Nothing herein shall be construed to prohibit, regulate, or otherwise apply to passenger cruise liners, as defined by Section 3-11-100(5) of the 1976 Code, nor does this ordinance apply to vessels described in Section 3-11-400(A) of the 1976 Code.

(2) The governing body of _________________, in accordance with the authority delegated by Section 3-11-300 of the Code of Laws of South Carolina, 1976, as amended, hereby prohibits within its jurisdiction the docking and embarkation or disembarkation of passengers aboard gambling vessels, as defined in Section 3-11-100(1) of the 1976 Code, that provide gambling aboard voyages that depart from the jurisdiction of __________, leave the territorial waters of the State of South Carolina, sail into United States or international waters, and return to the territorial waters of the State of South Carolina without making an intervening stop, as defined in Section 3-11-100(3) of the 1976 Code. Nothing herein shall be construed to prohibit, regulate, or otherwise apply to passenger cruise liners, as defined by Section 3-11-100(5) of the 1976 Code, nor shall this ordinance apply to vessels described in Section 3-11-400(A) of the 1976 Code.

(3) Anyone violating this ordinance must be assessed a civil penalty of not more than one hundred dollars per passenger for each

Printed Page 2817 . . . . . Thursday, May 19, 2005

violation, with an aggregate total in penalties not to exceed fifty thousand dollars per gambling vessel for a twenty-four hour period. For the purposes of this ordinance, 'per passenger' is defined as the total number of passengers allowed on a vessel pursuant to its United Stated Coast Guard certificate of documentation or equivalent foreign documentation. In addition, violations of this ordinance are subject to injunctive relief.

(4) The exceptions for passenger cruise liners and Section 3-11-400(D) in this ordinance are so connected with the other sections of the ordinance that they are mutually dependent on each other as conditions and considerations for each other, so that the council would not have adopted this ordinance without them; therefore, should these exceptions be found unconstitutional or invalid, it is the intent of the council that the entire ordinance be found invalid.

(5) Except as provided for in subitem (4), if any other section, subsection, paragraph, item, subitem, subparagraph, sentence, clause, phrase, or word of this ordinance 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 council 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. The exceptions for passenger cruise lines and Section 3-11-400(D) in this act are so connected with the other sections of the act that they are mutually dependent on each other as conditions and considerations for each other, so that the General Assembly would not have adopted this act without them; therefore, should these exceptions be found unconstitutional or invalid, it is the intent of the General Assembly that the entire act be found invalid.

SECTION 4. Except as provided for in SECTION 3, if any section, subsection, item, subitem, paragraph, subparagraph, sentence, clause, phrase, or word of Chapter 11, Title 3 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,

Printed Page 2818 . . . . . Thursday, May 19, 2005

items, subitems, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

SECTION 5. This act takes effect upon approval by the Governor./

Renumber sections to conform.

Amend title to conform.

By prior motion of Senator McCONNELL, with unanimous consent, the amendment was adopted.

The Committee on Judiciary proposed the following amendment (JUD3694.002), which was adopted:

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

/ SECTION 1. This act may be cited as the "Gambling Cruise Act". It is the intent of the General Assembly to delegate to counties and municipalities of this State the authority to prohibit or regulate the operation of gambling vessels that are engaged in voyages that depart from the territorial waters of the State, sail into United States or international waters, and return to the territorial waters of the State without an intervening stop, but to exempt from county or municipal regulation passenger cruise liners, as defined in Section 3-11-100(5), as contained in SECTION 2 of this act, because passenger cruise liners are vessels principally engaged in destination cruises and are not vessels used primarily for the operation of gambling. Furthermore, passenger cruise liners do not burden the public health or safety of the county or municipality because their voyages are infrequent, their cruises are not principally operated for the purpose of gambling, and their itineraries predominantly involve voyages that include one or more intervening stops.

SECTION 2. Title 3 of the 1976 Code is amended by adding:

"CHAPTER 11

Gambling Cruise Act

Section 3-11-100. For purposes of this chapter:

Printed Page 2819 . . . . . Thursday, May 19, 2005

or navigating, and the sailing, voyaging, or cruising, or any segment of the sailing, voyaging, or cruising begins and ends within this State.

(4) 'Destination cruise' means a cruise in which a vessel makes one or more intervening stops.

(5) 'Passenger cruise liner' means a vessel that:

(a) has a draft that is equal to or larger than the controlled depth of the intercoastal waterway as determined by the United States Army Corps of Engineers;

(d) offers other support facilities and services including, but not limited to, exercise facilities, gift shops, medical services, and musical programs;

(e) is principally engaged in entertaining and transporting passengers on destination cruises; and

(f) is certified or authorized by the United States Coast Guard or equivalent foreign authority to carry passengers for hire upon the open ocean without navigational limitations.

(6) 'Per passenger' means the number of passengers allowed on a vessel pursuant to its United States Coast Guard certificate of documentation or equivalent foreign documentation.

Printed Page 2820 . . . . . Thursday, May 19, 2005

Johnson Act, as amended, 15 U.S.C. Sections 1171 through 1177. The authority delegated herein includes the power to regulate or prohibit gambling aboard gambling vessels while such vessels are outside the territorial waters of the State, when such vessels embark or disembark passengers within their respective jurisdictions for voyages that depart from the territorial waters of the State, sail into United States or international waters, and return to the territorial waters of the State without an intervening stop.

(C) The authority delegated to a county or municipality under subsection (A) is delegated pursuant to Chapter 9 of Title 4 and Chapter 7 of Title 5, Code of Laws of South Carolina.

Section 3-11-210. A county or municipality adopting an ordinance regulating or prohibiting gambling vessels pursuant to Section 3-11-200 may assess only a civil penalty of not more than one hundred dollars per passenger for each violation, with an aggregate total in penalties not to exceed fifty thousand dollars per vessel for a twenty-four hour period. Additionally, a county or municipality may obtain injunctive relief against a person for violation of an ordinance regulating or prohibiting gambling vessels pursuant to Section 3-11-200.

Printed Page 2821 . . . . . Thursday, May 19, 2005

international waters, and return to the territorial waters of the State without an intervening stop.

(C) A county or municipality is prohibited from regulating or prohibiting gambling on passenger cruise liners, as defined in this chapter.

(B) The provisions of this chapter must not be construed to:

(1) repeal or modify any other provision of law relating to gambling, or any existing county or municipal ordinance regulating or prohibiting gambling or gambling vessels;

(2) repeal or modify any law with regard to bingo or the operation of a device or machine pursuant to Section 12-21-2720(A)(3);

(3) allow or permit gambling aboard any vessel, gambling vessel, or passenger cruise liner within the territorial waters of the State;

(4) preclude prosecution for any other applicable gambling offense under state law; or

Printed Page 2822 . . . . . Thursday, May 19, 2005

(5) preclude prosecution for violations of 15 U.S.C. Sections 1172, 1173, 1174, or 1175, to the extent not otherwise prohibited by provisions of the South Carolina Constitution.

(C)(1) For purposes of this section, 'gross proceeds' means the total amount wagered or otherwise paid, in cash or credit, by a passenger or user of a gambling device aboard a gambling vessel.

(2) If a county or municipality does not adopt an ordinance prohibiting a gambling vessel from operating, or if a gambling vessel other than a passenger cruise liner is permitted to operate because that gambling vessel, on each cruise, makes an intervening stop in another state, possession of the United States, or foreign country, the county or municipality may assess a surcharge of up to ten percent of each ticket sold per gambling cruise, and a surcharge of up to five percent of the gross proceeds of each gambling vessel.

(3)(a) If a county or municipality assesses the surcharges set forth in item (C)(2), then the proceeds of the surcharges are to be paid to the county or municipality from which the gambling vessel originates its cruise. The county or municipality is responsible for setting forth the procedures by which the proceeds are paid to the county or the municipality.

(iv) The department is authorized to promulgate regulations to implement the provisions of this subsection.

Printed Page 2823 . . . . . Thursday, May 19, 2005

Section 3-11-500. (A) A county or municipal ordinance prohibiting gambling vessels enacted before the effective date of this chapter, to the extent that it is consistent with the provisions of this chapter, remains in full force and effect after the effective date of this chapter, and is considered as promulgated pursuant to the powers and authority delegated to counties and municipalities by this chapter.

Printed Page 2824 . . . . . Thursday, May 19, 2005

(3) Anyone violating this ordinance must be assessed a civil penalty of not more than one hundred dollars per passenger for each violation, with an aggregate total in penalties not to exceed fifty thousand dollars per gambling vessel for a twenty-four hour period. For the purposes of this ordinance, 'per passenger' is defined as the total number of passengers allowed on a vessel pursuant to its United Stated Coast Guard certificate of documentation or equivalent foreign documentation. In addition, violations of this ordinance are subject to injunctive relief.

(4) The exceptions for passenger cruise liners in this ordinance are so connected with the other sections of the ordinance that they are mutually dependent on each other as conditions and considerations for each other, so that the council would not have adopted this ordinance without them; therefore, should these exceptions be found unconstitutional or invalid, it is the intent of the council that the entire ordinance be found invalid.

(5) Except as provided for in subitem (4), if any other section, subsection, item, subitem, paragraph, subparagraph, sentence, clause, phrase, or word of this ordinance 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 council 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. The exceptions for passenger cruise liners in this act are so connected with the other sections of the act that they are mutually dependent on each other as conditions and considerations for each other, so that the General Assembly would not have adopted this act without them; therefore, should these exceptions be found unconstitutional or invalid, it is the intent of the General Assembly that the entire act be found invalid.

Printed Page 2825 . . . . . Thursday, May 19, 2005

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 5. This act takes effect upon approval by the Governor./

Renumber sections to conform.

Amend title to conform.

The committee amendment was adopted, as amended.

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

THIRD READING BILLS

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

S. 103 (Word version) -- Senators Hayes and Elliott: A BILL TO AMEND TITLE 40, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 20 TO ENACT THE "SOUTH CAROLINA DIETETICS LICENSURE ACT" SO AS TO ESTABLISH THE SOUTH CAROLINA BOARD OF DIETETICS AND TO PROVIDE FOR ITS MEMBERS, POWERS, AND DUTIES; TO PROVIDE FOR THE LICENSURE AND REGULATION OF PERSONS ENGAGING IN THE PRACTICE OF DIETETICS OR NUTRITION, INCLUDING ESTABLISHING CRITERIA FOR LICENSURE AND LICENSE RENEWAL; TO ESTABLISH THE SCOPE OF PRACTICE FOR DIETITIANS; AND TO PROVIDE GROUNDS FOR MISCONDUCT AND PENALTIES FOR MISCONDUCT, INCLUDING CRIMINAL PENALTIES.

S. 473 (Word version) -- Senators Lourie, J. Verne Smith, Short, Bryant, Reese, Rankin, Ford, Matthews, Verdin, Malloy, Leventis, Pinckney, O'Dell, Setzler, Cleary, Jackson, Anderson, Mescher, Hutto, Sheheen, McGill, Alexander, Thomas, Ryberg, Patterson, Leatherman, Elliott, Land and Hayes: 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 PROVIDE THAT CERTAIN PROPERTY TAX EXEMPTIONS PROVIDED TO

Printed Page 2826 . . . . . Thursday, May 19, 2005

VETERANS MUST BE EXTENDED TO A VETERAN'S SURVIVING SPOUSE WHO ESTABLISHES RESIDENCY IN THIS STATE SUBSEQUENT TO THE DEATH OF THE VETERAN, IF THE VETERAN, BUT FOR RESIDENCY REQUIREMENTS, COULD HAVE QUALIFIED FOR THE EXEMPTION.

S. 671 (Word version) -- Senator Leatherman: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-3575 SO AS TO ALLOW A TAX CREDIT OF FIFTY PERCENT OF THE TOTAL AMOUNT OF PREMIUMS PAID BY A TAXPAYER PURSUANT TO AN INDIVIDUAL POLICY FOR HEALTH INSURANCE COVERAGE, UP TO THREE THOUSAND DOLLARS FOR EACH TAXABLE YEAR FOR EACH COVERED INDIVIDUAL, AND TO PROHIBIT A DOUBLE BENEFIT.

By prior motion of Senator LEATHERMAN, with unanimous consent

S. 850 (Word version) -- Senators Knotts, Elliott, Gregory, Malloy, McConnell, Ford, Mescher, Martin, Alexander, Verdin, Williams, Cromer, Cleary, Grooms, Ryberg, Bryant, Ritchie, Rankin, Matthews, Richardson, Hutto, Land, Setzler and Jackson: A BILL TO AMEND SECTION 56-1-50, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ISSUANCE OF A BEGINNER'S PERMIT BY THE DEPARTMENT OF MOTOR VEHICLES, SO AS TO REVISE THE PERIOD OF TIME A PERSON WHO HAS NEVER HELD A FORM OF DRIVER'S LICENSE MUST HOLD A BEGINNER'S PERMIT BEFORE BEING ELIGIBLE FOR FULL LICENSURE.

S. 854 (Word version) -- Senator Pinckney: A BILL TO AMEND SECTION 30-5-10, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PERFORMANCE OF THE REGISTER OF DEEDS' DUTIES BY A CLERK OF COURT IN CERTAIN COUNTIES, SO AS TO ADD JASPER COUNTY TO THE LIST OF THOSE COUNTIES WHICH HAVE BOTH A REGISTER OF DEEDS AND A CLERK OF COURT; AND TO AMEND SECTION 30-5-12, AS AMENDED, RELATING TO THE APPOINTMENT OF A REGISTER OF DEEDS, SO AS TO ADD JASPER COUNTY TO THE LIST OF COUNTIES IN WHICH THE GOVERNING BODY APPOINTS THE REGISTER OF DEEDS.

Printed Page 2827 . . . . . Thursday, May 19, 2005

S. 855 (Word version) -- Senators Knotts, Courson, Cromer and Setzler: A BILL TO AMEND SECTION 7-7-380, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN LEXINGTON COUNTY, SO AS TO REVISE AND RENAME CERTAIN VOTING PRECINCTS OF LEXINGTON COUNTY AND REDESIGNATE A MAP NUMBER FOR THE MAP ON WHICH LINES OF THESE PRECINCTS ARE DELINEATED AND MAINTAINED BY THE OFFICE OF RESEARCH AND STATISTICS OF THE STATE BUDGET AND CONTROL BOARD, AND TO CORRECT ARCHAIC REFERENCES.

SECOND READING BILLS

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

S. 863 (Word version) -- Senator McGill: A BILL TO AMEND SECTION 7-7-520, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN WILLIAMSBURG COUNTY, SO AS TO REVISE CERTAIN VOTING PRECINCTS IN WILLIAMSBURG COUNTY, TO REDESIGNATE A MAP NUMBER FOR THE MAP ON WHICH LINES OF THESE PRECINCTS ARE DELINEATED AND MAINTAINED BY THE OFFICE OF RESEARCH AND STATISTICS OF THE STATE BUDGET AND CONTROL BOARD, AND TO CORRECT ARCHAIC REFERENCES.

By prior motion of Senator McGILL, with unanimous consent

H. 3578 (Word version) -- Reps. Witherspoon, Frye, Hiott, Ott and Vick: A BILL TO AMEND SECTION 46-25-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS IN REGARD TO FERTILIZER REGULATIONS, SO AS TO REVISE THE DEFINITION OF "SOIL AMENDMENT"; TO AMEND SECTION 46-25-30, AS AMENDED, RELATING TO ANALYSIS OF PLANT NUTRIENTS, SO AS TO PERMIT THE STATE CROP PEST COMMISSION TO REQUIRE PROOF OF CLAIMS MADE FOR FERTILIZER; AND TO AMEND SECTION 46-25-810, AS AMENDED, RELATING TO AN INSPECTION TAX AND TONNAGE REPORTS IN REGARD TO COMMERCIAL FERTILIZER, SO AS TO INCREASE THE INSPECTION TAX AND FURTHER PROVIDE FOR THE TONNAGE REPORT ON

Printed Page 2828 . . . . . Thursday, May 19, 2005

FERTILIZER SOLD, AND FOR CERTAIN ACTIONS WHICH WILL BE TAKEN IF THE REQUIRED TAXES AND REPORTS ARE NOT MADE.

H. 3410 (Word version) -- Reps. Harrison and Cotty: A BILL TO AMEND SECTIONS 33-1-200 AND 33-31-120, AS AMENDED, BOTH RELATING TO THE FILING REQUIREMENTS OF CERTAIN DOCUMENTS, SO AS TO PROVIDE THAT THE DOCUMENT MUST BE IN A MEDIUM AND FORM AS PERMITTED BY THE SECRETARY OF STATE.

H. 3297 (Word version) -- Rep. Harrell: A BILL TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EXEMPTIONS FROM SALES TAX, INCLUDING PRESCRIPTION MEDICATIONS, SO AS TO ALSO INCLUDE IN THIS EXEMPTION, PRESCRIPTIONS FOR THE TREATMENT OF RHEUMATOID ARTHRITIS.

H. 3297--Ordered to a Third Reading

On motion of Senator J. VERNE SMITH, H. 3297 was ordered to receive a third reading on Friday, May 20, 2005.

AMENDED, AMENDMENT PROPOSED, CARRIED OVER

H. 3107 (Word version) -- Reps. M.A. Pitts, Viers, Taylor, Mahaffey, Duncan and Umphlett: A BILL TO AMEND SECTION 40-47-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE STATE BOARD OF MEDICAL EXAMINERS, SO AS TO PROVIDE FOR TWO ADDITIONAL LAY MEMBERS OF THE BOARD, ONE TO BE APPOINTED BY THE PRESIDENT PRO TEMPORE OF THE SENATE AND ONE TO BE APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.

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

Senators ALEXANDER, KNOTTS, HUTTO and MARTIN proposed the following amendment (3107R005.TCA), which was adopted:

Amend the bill, as and if amended, page 2, line 33 by inserting an appropriately numbered section:

/ SECTION ___. Section 40-47-213 of the 1976 Code is amended to read:

Printed Page 2829 . . . . . Thursday, May 19, 2005

"Section 40-47-213. (A)(1) No A person connected with any complaint, investigation, or other proceeding before the board, including, but not limited to, any witness, counsel, counsel's ~~secretary~~ staff, board member, board employee, court reporter, or investigator, may not mention the existence of the complaint, investigation, or other proceeding or disclose any information ~~pertaining to the complaint, investigation, or other proceeding,~~ tending to identify the initial complainant or a witness, or discuss ~~any~~ testimony or other evidence in the complaint, investigation, or other proceeding, except as otherwise provided in this section.

(2) Information may be disclosed to persons involved and having a direct interest in the complaint, investigation, or other proceeding~~, and then only~~ to the extent necessary for the proper disposition of the complaint, investigation, or other proceeding. The name of the initial complainant must be provided to the licensee who is the subject of the complaint, investigation, or proceeding unless the board, hearing officer, or panel determines there is good cause to withhold that information.

(3) ~~However, whenever~~ When the board receives information in any complaint, investigation, or other proceeding before it indicating a violation of state or federal law, the board may provide that information, to the extent the board considers necessary, to the appropriate state or federal law enforcement agency or regulatory body.

(B) When a formal complaint is made regarding allegations of misconduct, the formal complaint and an answer must become available for public inspection and copying ten days after the filing of the answer or, if no answer is filed, ten days after the expiration of the time to answer. Once the formal complaint becomes available for public inspection and copying, subsequent records and proceedings relating to the misconduct allegations must be open to the public except as otherwise provided in this section.

(1) Patient records and identities shall remain confidential unless the patient or legal representative of the patient consents in writing to the release of the records.

(2) If allegations of incapacity of licensee due to physical or mental causes are raised in the complaint or answer, all records, information, and proceedings, relating to those allegations of incapacity must remain confidential; provided, however, any order relating to the licensee's authorization to practice must be made public, but the order must not disclose the nature of the incapacity.

Printed Page 2830 . . . . . Thursday, May 19, 2005

(C) Once a proceeding becomes public as provided in this section, there is a presumption that any hearing, other proceeding, or record must remain public unless a party to a proceeding makes a showing on the record before the board, hearing officer, or panel that closure of the hearing or the record, in whole or in part, is essential to protect patients, witnesses, or the respondent from unreasonable disclosure of personal or confidential information. Public notice must be given of the request or motion to close any portion of a hearing or record, and the board, hearing officer, or panel shall provide an opportunity for a person opposing the closure to be heard prior to the decision on closure being made.

(D) Subject to the right of public access and utilizing the procedure regarding closure described in this section, a witness in a proceeding or a patient whose care is at issue in a proceeding may petition the board, hearing officer, or panel for an order to close the hearing or record, in whole or part, to protect the witness or patient from unreasonable disclosure of personal or confidential information; provided, however, the identity of a minor or sexual boundary victim must remain confidential without a motion being made.

(E) Upon a finding on the record that the health or safety or the personal privacy of a witness or patient would be put at risk unreasonably by the public disclosure of identifying information or of other personal information, the board, hearing officer, or panel may issue an order to protect the witness or patient from the harm shown to be probable from public disclosure.

~~Nothing contained in this section may be construed so as to prevent the board from making public a copy of its final order in any proceeding as authorized or required by law~~." /

Renumber sections to conform.

Amend title to conform.

Senator ALEXANDER explained the amendment.

The amendment was adopted.

Senator LEVENTIS proposed the following amendment (SWB\ 6462CM05):

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

/SECTION __. Article 1, Chapter 47, Title 40 of the 1976 Code is amended by adding:

Printed Page 2831 . . . . . Thursday, May 19, 2005

"Section 40-47-215. (A) Notwithstanding the provisions of this article, or any other provision of law, the identity of a person filing a complaint with the board against a physician must remain anonymous unless the complainant waives his or her right to anonymity. However, if the Medical Disciplinary Commission finds that the complaint is without merit the physician may petition the Administrative Law Court to disclose the identity of the complainant.

(B) If a petition to disclose the identity of a complainant is filed with the Administrative Law Court, the court shall determine in camera if there is probable cause to believe that the complaint was made maliciously. If the court finds probable cause, the court shall disclose the identity of the complainant. /

Renumber sections to conform.

Amend title to conform.

Senator LEVENTIS explained the amendment.

Senator HAYES asked unanimous consent to carry the Bill over, as amended.

COMMITTEE AMENDMENT AMENDED AND ADOPTED
AMENDED, READ THE SECOND TIME

H. 3006 (Word version) -- Reps. Wilkins, Harrell, W.D. Smith, J. Brown, Cato, Chellis, Harrison, Townsend, Witherspoon, Bailey, G.R. Smith, Vaughn, Davenport, Sandifer, Barfield, Young, Owens, Kirsh, Leach, E.H. Pitts, Battle, Viers, Clyburn, Littlejohn, Taylor, Rice, Hinson, Clark, Walker, Bales, Cobb-Hunter, Simrill, Chalk, Duncan, Stewart, Talley, Harvin, J.E. Smith, Altman, Skelton, Mahaffey, Vick, Hagood, Martin, Neilson and Bowers: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, TO PROVIDE TAX CREDITS FOR CERTAIN INVESTMENTS, TO ESTABLISH A CAPITAL ACCESS PROGRAM RELATED TO THE MAKING OF LOANS BY FINANCIAL INSTITUTIONS TO SMALL BUSINESSES, TO MODIFY THE RULES RELATED TO MEMBERS OF A CORPORATION MAKING LOANS TO THE CORPORATION, TO PROVIDE A CREDIT TO EMPLOYERS FOR HEALTH CARE EXPENSES ASSOCIATED WITH HIRING NEW EMPLOYEES, TO AMEND THE SOUTH CAROLINA MOTION PICTURE INCENTIVE ACT, TO PROVIDE FOR DETERMINATION OF A NEXUS WITH THIS STATE FOR SALES AND USE TAX PURPOSES IN CONNECTION WITH A

Printed Page 2832 . . . . . Thursday, May 19, 2005

DISTRIBUTION FACILITY, AND TO PROVIDE TAX CREDITS FOR EMPLOYERS WHO INCREASES EMPLOYMENT. (ABBREVIATED TITLE)

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

Senators RITCHIE and SETZLER proposed the following amendment (MS\7552AHB05), which was adopted:

Amend the amendment, as and if amended, by deleting in its entirety Section 12-6-3360(C), as contained in SECTION 3, and inserting:

/ "(C) Subject to the conditions provided in subsection (N) of this section, a job tax credit is allowed for five years beginning in year two after the creation of the job for each new full-time job created if the minimum level of new jobs is maintained. The credit is available only ~~available~~ to taxpayers with one hundred or fewer employees that increase employment by ~~ten~~ two or more full-time jobs, and no only may be received if the gross wages of the full-time jobs created pursuant to this section amount to a minimum of one hundred twenty percent of the county's or state's average per capita income, whichever is lower. No credit is allowed for the year or any subsequent year in which the net employment increase falls below the minimum level of ~~ten~~ two. The amount of the initial job credit is as follows:

(1)~~(a)~~ ~~Eight~~ Four thousand dollars for each new full-time job created in distressed counties.

(2)~~(b)~~ ~~Four~~ Two thousand ~~five~~ two hundred fifty dollars for each new full-time job created in least developed counties.

~~(2)~~(3) ~~Three~~ One thousand ~~five~~ seven hundred fifty dollars for each new full-time job created in under developed counties.

~~(3)~~(4) ~~Two~~ One thousand ~~five~~ two hundred fifty dollars for each new full-time job created in moderately developed counties.

~~(4)~~(5) ~~One thousand five~~ Seven hundred fifty dollars for each new full-time job created in developed counties." /

Renumber sections to conform.

Amend title to conform.

Senator RITCHIE explained the amendment.

The amendment was adopted.

Printed Page 2833 . . . . . Thursday, May 19, 2005

The Committee on Finance proposed the following amendment (3006R001.HKL), which was adopted:

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

/ SECTION 1. Chapter 6 of Title 12 of the 1976 Code is amended by adding:

"Section 12-6-60. (A) Notwithstanding another provision of this chapter, whether or not a person has nexus with South Carolina for income tax and corporate license fee purposes, is determined without regard to whether the person:

(1) owns or utilizes a distribution facility within South Carolina;

(2) owns or leases property at a distribution facility within South Carolina that is used at, or distributed from, that facility; or

(3) sells property shipped or distributed from a distribution facility within South Carolina.

(B) The distribution facility is not considered to be a fixed place of business in South Carolina for the purposes of nexus.

SECTION 2. Chapter 36 of Title 12 of the 1976 Code is amended by adding:

"Section 12-36-2690. (A) Notwithstanding another provision of this chapter, owning or utilizing a distribution facility within South Carolina is not considered in determining whether the person has a physical presence in South Carolina sufficient to establish nexus with South Carolina for sales and use tax purposes.

(B) For purposes of this section, a distribution facility is defined in Section 12-6-3360."

SECTION 3. Section 12-6-3360(C) and (I) of the 1976 Code is amended to read:

"(C) Subject to the conditions provided in subsection (N) of this section, a job tax credit is allowed for five years beginning in year two after the creation of the job for each new full-time job created if the minimum level of new jobs is maintained. The credit is available only ~~available~~ to taxpayers with one hundred or fewer employees that increase employment by ~~ten~~ two or more full-time jobs, and no a credit is not allowed for the year or any subsequent year in which the net employment increase falls below the minimum level of ~~ten~~ two. The amount of the initial job credit is as follows:

(1)(a) ~~Eight~~ Four thousand dollars for each new full-time job created in distressed counties.

Printed Page 2834 . . . . . Thursday, May 19, 2005

(b) ~~Four~~ Two thousand ~~five~~ two hundred fifty dollars for each new full-time job created in least developed counties.

(2) ~~Three~~ One thousand ~~five~~ seven hundred fifty dollars for each new full-time job created in under developed counties.

(3) ~~Two~~ One thousand ~~five~~ two hundred fifty dollars for each new full-time job created in moderately developed counties.

(4) ~~One thousand five~~ Seven hundred fifty dollars for each new full-time job created in developed counties."

"(I) The merger, consolidation, or reorganization of a taxpayer where tax attributes survive does not create new eligibility in a succeeding taxpayer, but unused job tax credits may be transferred and continued by the succeeding taxpayer subject to the limitations of Section 12-6-3320. In addition, a taxpayer may assign its rights to its jobs tax credit to another taxpayer if it transfers all, or substantially all, of the assets of the taxpayer or all, or substantially all, of the assets of a trade or business or operating division of a taxpayer related to the generation of the jobs tax credits to that taxpayer if the required number of new jobs is maintained for that amount of credit. No A taxpayer is not allowed a jobs tax credit if the net employment increase for that taxpayer falls below ~~ten~~ two. The appropriate agency shall determine ~~whether or not~~ if qualifying net increases or decreases have occurred and may require reports, ~~promulgate~~ adopt rules or promulgate regulations, and hold hearings needed for substantiation and qualification."

SECTION 4. (A) The General Assembly finds that many tax incentives outlive their usefulness and should exist only for a time certain. It is the intent of the General Assembly to provide for a sunset provision on each tax incentive, including credits and exemptions, enacted by this act.

(B) Each tax incentive, including credits and exemptions, enacted by this act shall be repealed for tax years beginning after five years from the date of enactment, unless a different time frame is otherwise provided herein.

SECTION 5. This act takes effect upon approval by the Governor and applies to taxable years beginning January 1, 2006. /

Renumber sections to conform.

Amend title to conform.

Senator ALEXANDER explained the committee amendment.

The committee amendment was adopted.

Printed Page 2835 . . . . . Thursday, May 19, 2005

Senators ALEXANDER and SETZLER proposed the following amendment (NBD\11824AC05), which was adopted:

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

/SECTION __. A. Chapter 37, Title 33 of the 1976 Code is amended by adding:

"Article 10

Capital Access Program

Section 33-37-1010. For purposes of this article:

(1) 'CAP' means the capital access program created in this article.

(2) 'BDC' means Business Development Corporation of South Carolina.

(3) 'Financial institution' means a bank, trust company, savings bank, savings and loan association, or cooperative bank chartered by the State or a national banking association, federal savings and loan association, or federal savings bank, if that financial institution has offices located in South Carolina.

(4) 'Participating financial institution' means a financial institution participating in the capital access program.

(5) 'Small business' means:

(a) a retail or service business with annual sales not exceeding two million dollars;

(b) a wholesale business with annual sales not exceeding five million dollars;

(d) another business with annual revenue not exceeding two million dollars.

(6) 'State fund' and 'state fund account' means the funds appropriated by the General Assembly of South Carolina for the CAP, provided to BDC as custodian for the State of South Carolina, and deposited by BDC into one or more interest-bearing trust accounts maintained by it as custodian for the State of South Carolina.

(7) 'Loss reserve account' means one or more interest-bearing trust accounts maintained by BDC for holding and administering the loan loss reserve pursuant to this article.

Section 33-37-1020. (A) Upon appropriation of funds by the General Assembly for the CAP in the minimum initial sum of two million five hundred thousand dollars, those funds and funds resulting

Printed Page 2836 . . . . . Thursday, May 19, 2005

from later appropriations to the state fund must be provided to BDC for deposit in the state fund account.

(B) BDC shall establish the CAP to provide a loan loss reserve from the state fund to assist participating financial institutions making loans to small businesses located in South Carolina that otherwise find it difficult to obtain regular bank financing.

(C) The assistance must be provided by BDC through transfers by it from a state fund account into a loss reserve account maintained by, in the name of, and controlled by BDC as custodian to provide loan loss reserves for loans made to those small businesses.

Section 33-37-1030. A financial institution desiring to become a participating financial institution shall execute an agreement in a form BDC prescribes, containing the terms and provisions provided in Section 33-37-1040 and other terms and provisions BDC considers necessary or appropriate.

Section 33-37-1040. A participating financial institution originating a loan to a small business pursuant to this article shall:

(1) use its existing business and banking network to market and perpetuate the CAP so as to promote economic development among small businesses in South Carolina;

(2) provide financing to small businesses for their business purposes including, without limitation, expansion, start-up, purchase of fixed assets or inventory, facility or technology upgrading, and working capital;

(3) limit loans outstanding to one small business borrower pursuant to this article and the CAP to an aggregate balance outstanding of two hundred fifty thousand dollars or a lesser amount the BDC determines, in the exercise of its discretion for the benefit of the CAP and the small business community at large in this State;

(4) limit loans made pursuant to this article and under the CAP to those that are not guaranteed or otherwise assisted by another governmental entity or program;

(5) set aside an amount of at least one and one-half percent but no more than three and one-half percent of the principal amount of the loan, into the loss reserve account;

(6) obtain from the small business an amount equal to the reserve contribution made by the participating financial institution with respect to the loan;

(7) forward the funds collected and determined pursuant to items (5) and (6) of this section to BDC for deposit into the loss reserve

Printed Page 2837 . . . . . Thursday, May 19, 2005

account together with a written report in the form and with the content BDC prescribes; and

(8) report annually to BDC, in the manner and with the supporting information BDC prescribes, the outstanding balance of loans made by it pursuant to the CAP, and a projection and estimate of loans it anticipates making pursuant to the program in the succeeding year.

Section 33-37-1050. After receipt of the funds and report provided in Section 33-37-1040(7) of this article, BDC shall transfer from the state fund account to the loss reserve account an amount equal to one hundred fifty percent of the total of the contributions of the participating financial institution and the small business. BDC shall maintain accurate records to determine the allocation and allocable share of each participating financial institution in and to the loan loss reserves in the loss reserve account and shall provide a report of the allocation to each participating financial institution annually. BDC also shall provide the report to a participating financial institution upon its written request during the year, but not more often than quarterly, and to the South Carolina Department of Commerce quarterly. In addition, the BDC shall provide an internal quarterly report on the project job creation and capital investment associated with each loan.

Section 33-37-1060. If the participating financial institution suffers a loss on a loan made pursuant to the CAP and this article, it may request that all or a portion of its allocated loan reserve in the loss reserve account be applied to the loan. Upon receipt by BDC of a certification of loss by the participating financial institution, BDC shall release the funds in the account to repay the loan in whole or in part, in an amount not to exceed the actual loss incurred by the participating financial institution. BDC shall prescribe the form and content of the certification report.

Section 33-37-1070. Earnings or interest from the principal of the state fund account and the loss reserve account must be paid monthly to BDC:

(1) as compensation for its administration and management of the CAP and the accounts; and

(2) for economic development in South Carolina for the purposes and within the meanings set forth in this chapter and in the corporate charter of BDC.

Section 33-37-1080. If a participating financial institution that elects to discontinue its participation in the CAP has funds on deposit in the loss reserve account, the funds must be forfeited by the

Printed Page 2838 . . . . . Thursday, May 19, 2005

institution to the state fund and used in the CAP as loss reserves as provided in this article.

Section 33-37-1090. An independent certified public accountant, as elected annually by the board of directors of the BDC, shall conduct an annual certified audit of its management, administration, and recordkeeping in connection with the CAP and provide the audit to the South Carolina Board of Financial Institutions upon its request, the General Assembly upon its request, and the South Carolina Department of Commerce. Annual reports to the South Carolina Department of Commerce and the General Assembly also must include projected capital investment and job creation associated with each CAP loan provided.

Section 33-37-1100. If a loan is not made by participating financial institutions for three consecutive years and the General Assembly does not appropriate additional funds for the program for those three consecutive years, BDC may pay over to the participating financial institutions their allocable shares of funds in the loss reserve account and pay over to the State of South Carolina, as directed by the South Carolina Board of Financial Institutions, funds held in the state fund account."

B. Section 33-37-460(2) and (3) of the 1976 Code, as last amended by Act 234 of 2000, is further amended to read:

"(2) A loan to the corporation under the loan call agreement may not be made if, immediately after the loan, the total amount of the obligations of the corporation under the loan call agreement exceeds ten times the greater of the net worth of the corporation or the amount then paid in on the outstanding capital stock of the corporation.

(3) The total amount outstanding on loans to the corporation made by a member at any one time~~, when added to the amount of the investment in capital stock of the corporation then held by the member,~~ under the loan call agreement may not exceed:

(a) ten percent of the total amount then outstanding ~~on loans to the corporation by all members, including in the total amount outstanding amounts validly called for loan but not yet loaned~~ or committed, or both, under the loan call agreement; or

(b) any federal or state statutory or regulatory limitations applicable to the members."

C. Section 33-37-465 of the 1976 Code, as added by Act 234 of 2000, is amended to read:

"Section 33-37-465. A member may make short-term loans to the corporation independently of the loan calls made pursuant to Section

Printed Page 2839 . . . . . Thursday, May 19, 2005

33-37-460, except that the aggregate of the outstanding balance of the short-term loans and the outstanding amount of a loan call to that member may not exceed the statutory and regulatory limitations as provided in Section 33-37-460. These short-term loans are not subject to the limitations and restrictions described in Section 33-37-460. When the purpose of the short-term loan is to provide funds to the corporation for disbursement of a loan, the corporation may grant to the member funding the short-term loan a security interest in or collateral assignment of the loan on the condition that the security interest or collateral assignment is terminated upon payment of the short-term loan."/

Renumber sections to conform.

Amend title to conform.

Senator ALEXANDER 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. 3006--Ordered to a Third Reading

On motion of Senator SETZLER, with unanimous consent, H. 3006 was ordered to receive a third reading on Friday, May 20, 2005.

COMMITTEE AMENDMENT ADOPTED
AMENDED, READ THE SECOND TIME

H. 3412 (Word version) -- Reps. Harrison, Bales, Cotty, Brady, Whipper, Vaughn, Branham, Toole, Taylor, D.C. Smith and Bailey: A BILL TO AMEND SECTION 44-17-410, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EMERGENCY ADMISSIONS TO MENTAL HEALTH FACILITIES, SO AS TO PROVIDE THAT IF A PATIENT DOES NOT REQUIRE INVOLUNTARY TREATMENT, THE COURT, UPON PROPER NOTICE, SHALL DISMISS THE PETITION FOR COMMITMENT; TO AMEND SECTION 44-17-430, RELATING TO TAKING PERSONS WHO ARE BELIEVED TO BE A DANGER TO THEMSELVES OR OTHERS INTO CUSTODY, SO AS TO PROVIDE THAT AN ORDER AUTHORIZING SUCH CUSTODY IS VALID ONLY FOR SEVENTY-TWO HOURS; TO ADD SECTION 44-13-05 SO AS TO ESTABLISH PROCEDURES FOR A LAW ENFORCEMENT

Printed Page 2840 . . . . . Thursday, May 19, 2005

OFFICER TO TAKE A PERSON WHO THE OFFICER BELIEVES TO BE MENTALLY ILL INTO PROTECTIVE CUSTODY AND TO PROVIDE IMMUNITY FROM LIABILITY; TO AMEND SECTION 44-17-580, RELATING TO PROCEDURES FOR JUDICIAL COMMITMENT TO A MENTAL HEALTH FACILITY, SO AS TO CLARIFY THESE PROCEDURES AND TO AUTHORIZE THE COURT TO ORDER OUT-PATIENT TREATMENT FOLLOWING IN-PATIENT COMMITMENT; TO AMEND SECTION 44-24-150, RELATING TO THE AUTHORITY OF THE FAMILY COURT TO COMMIT CERTAIN CHILDREN FOR PSYCHIATRIC EVALUATION, SO AS TO PROVIDE THAT THE COURT MAY ORDER THAT SUCH AN EVALUATION BE CONDUCTED BY A COMMUNITY MENTAL HEALTH CENTER AND THAT IF AN IN-PATIENT EVALUATION IS RECOMMENDED, THE COURT MAY COMMIT THE CHILD TO A DESIGNATED HOSPITAL FOR UP TO FIFTEEN DAYS FOR SUCH AN EVALUATION; AND TO AMEND SECTION 44-52-50, RELATING TO PROCEDURES FOR EMERGENCY ADMISSIONS FOR ALCOHOL AND DRUG TREATMENT, SO AS TO CLARIFY THAT IF A COURT ISSUES AN ORDER TO TAKE A PERSON IN NEED OF SUCH TREATMENT INTO PROTECTIVE CUSTODY, THE ORDER IS VALID ONLY FOR SEVENTY-TWO HOURS.

Senator MALLOY asked unanimous consent to take the Bill up for immediate consideration.

There was no objection.

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

The Medical Affairs Committee proposed the following amendment (NBD\11806AC05), which was adopted:

Amend the bill, as and if amended, Section 44-13-05 by deleting in subsection (A), (B), and (C) /where available/ and inserting /if available in their jurisdictions/.

Renumber sections to conform.

Amend title to conform.

Senator HAYES explained the committee amendment.

The committee amendment was adopted.

Printed Page 2841 . . . . . Thursday, May 19, 2005

Senator PINCKNEY proposed the following amendment (NBD\11847AC05), which was adopted:

Amend the bill, as and if amended, Section 44-13-05, page 4, immediately after line 27 by inserting:

/ (G) A law enforcement officer may transport a person as provided in this section to a local mental health center or a crisis stabilization program beyond the officer's jurisdiction if the law enforcement agency employing the officer has a written memo of understanding with the local mental health center or crisis stabilization program receiving the person taken into custody./

Renumber sections to conform.

Amend title to conform.

Senator PINCKNEY explained the amendment.

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. 570 (Word version) -- Senators Fair, Campsen, Anderson, Cromer, Williams, Verdin, Sheheen, Hawkins, Scott, Bryant and Thomas: A BILL TO AMEND CHAPTER 13, TITLE 24, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEPARTMENT OF CORRECTIONS, BY ADDING ARTICLE 12 SO AS TO ALLOW THE DEPARTMENT TO ESTABLISH DAY REPORTING CENTERS FOR CERTAIN INMATES.

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 Corrections and Penology Committee proposed the following amendment (NBD\11696AC05), which was adopted:

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

/SECTION 1. Chapter 21, Title 24 of the 1976 Code is amended by adding:

Printed Page 2842 . . . . . Thursday, May 19, 2005

"Article 13

Day Reporting Centers

Section 24-21-1300. (A) The Department of Probation, Parole and Pardon Services may develop and operate day reporting centers within the State.

(B) 'Day reporting center' means a State facility providing supervision of inmates or offenders placed on supervision which includes, but is not limited to, mandatory reporting, program participation, drug testing, community service, and any other conditions as determined by the Department of Corrections and the Department of Probation, Parole and Pardon Services.

(C) 'Eligible inmate' means a person sentenced to imprisonment for more than three months, excluding a person sentenced for:

(1) a violent crime, as provided for in Section 16-1-60;

(2) an A, B, C, or D felony, as provided for in Section 16-1-20;

(3) an unclassified crime which carries a maximum term of imprisonment of ten years or more, as provided for in, Section 16-1-10(d); or

(4) a crime which requires a registration as a sex offender, as provided for in Section 23-3-430. 'Eligible inmate' does not include a person who does not provide an approved in-state residence as determined jointly by the Department of Corrections and the Department of Probation, Parole and Pardon Services.

(D) 'Eligible offender' means a person placed on probation, parole, community supervision, or any other supervision program operated by the Department of Probation, Parole and Pardon Services, excluding a person sentenced for:

(1) a violent crime, as provided for in Section 16-1-60;

(2) an A, B, C, or D felony, as provided for in Section 16-1-20;

(3) an unclassified crime which carries a maximum term of imprisonment of ten years or more, as provided for in Section 16-1-10(d); or

(4) a crime which required a registration as a sex offender, as provided for in Section 23-3-430. 'Eligible offender' does not include a person who does not provide an approved in-state residence as determined jointly by the Department of Corrections and the Department of Probation, Parole and Pardon Services.

Section 24-21-1310. (A) Notwithstanding another provision of law, the Department of Probation, Parole and Pardon Services may develop and operate day reporting centers for eligible inmates and eligible offenders, if the General Assembly appropriates funds to operate these

Printed Page 2843 . . . . . Thursday, May 19, 2005

centers. The Department of Probation, Parole and Pardon Services may develop policies, procedures, and guidelines for the operation of day reporting centers. The period of time an eligible inmate or offender is required to participate in a day reporting program and the individual terms and conditions of an eligible inmate's or offender's placement and participation are at the joint discretion of the Department of Corrections and the Department of Probation, Parole and Pardon Services.

(B) An inmate or offender has no right to be placed in a day reporting center. The Department of Corrections and the Department of Probation, Parole, and Pardon Services have absolute discretion to place an eligible inmate or offender in a day reporting center and nothing in this article may be construed to entitle an inmate or offender to participate in a day reporting center program.

Section 24-21-1320. (A) An eligible inmate or offender placed in a day reporting center must agree to abide by the conditions established by the Department of Corrections and the Department of Probation, Parole and Pardon Services, which may include, but are not limited to:

(1) seek and maintain employment;

(2) participate in any educational or counseling programs recommended by the department;

(3) refrain from using alcohol or nonprescription medication; and

(4) pay a reasonable supervision fee, which may be waived by the department, that must be retained by the department to assist in funding this program.

(B) An eligible inmate or offender who fails to abide by the conditions established by the Department of Corrections and the Department of Probation, Parole and Pardon Services may be removed from the community and brought before an administrative hearing officer of the Department of Probation, Parole and Pardon Services. The Department of Probation, Parole and Pardon Services is the sole authority for determining whether any condition has been violated and for determining the actions to be taken in response to the violation. An participant revoked from participation in a day reporting center may be subject to further criminal proceedings or the institution of internal disciplinary sanctions for violations of any conditions associated with his placement in the day reporting center program. A participant who fails to report as instructed, or whose whereabouts are unknown, may be considered to be an escapee by the department and may be apprehended and returned to custody as any other inmate who is deemed an escapee by the department.

Printed Page 2844 . . . . . Thursday, May 19, 2005

(C) If a sentence to a day reporting center is revoked, the participant must serve the remainder of his sentence within the Department of Corrections.

Section 24-21-1330. The day reporting center program terminates June 30, 2009, unless extended by the General Assembly."

SECTION 2. This act takes effect upon the signature of the Governor and implemented upon the appropriations of sufficient funds by the General Assembly./

Renumber sections to conform.

Amend title to conform.

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. 570--Ordered to a Third Reading

On motion of Senator FAIR, with unanimous consent, S. 570 was ordered to receive a third reading on Friday, May 20, 2005.

COMMITTEE AMENDMENT ADOPTED
READ THE SECOND TIME

H. 3067 (Word version) -- Reps. J.R. Smith, Clark, Clyburn, Perry, D.C. Smith, Stewart and G.R. Smith: A BILL TO AMEND SECTION 12-14-60, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE INVESTMENT TAX CREDIT AGAINST STATE INCOME TAX ALLOWED FOR ECONOMIC IMPACT ZONE QUALIFIED MANUFACTURING AND PRODUCTIVE EQUIPMENT PROPERTY, SO AS TO EXTEND FOR CERTAIN TAXPAYERS THE TEN-YEAR CARRY-FORWARD PERIOD FOR UNUSED TAX CREDITS AND PROVIDE THE REQUIREMENTS NECESSARY FOR A TAXPAYER TO RECEIVE THE ADDITIONAL CARRY-FORWARD PERIOD.

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

The Committee on Finance proposed the following amendment (GGS\22205HTC05), which was adopted:

Amend the bill, as and if amended, page 1, by striking lines 31-33 and inserting:

Printed Page 2845 . . . . . Thursday, May 19, 2005

/ (2) In the case of credit unused within the initial ten-year period, a taxpayer may continue to carry forward unused credits for use in any subsequent tax years if the taxpayer: /

Amend further, as and if amended, Page 2, by striking Section 2 and inserting:

/ SECTION 2. This act takes effect upon approval by the Governor and the provisions of Section 12-14-60(D)(2) of the 1976 Code, as amended by this act, apply for credits earned in taxable years beginning after 1996. /

Renumber sections to conform.

Amend title to conform.

Senator ALEXANDER 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. 3235 (Word version) -- Reps. Witherspoon, R. Brown, Clark, Bowers and Mahaffey: A BILL TO AMEND SECTION 49-23-70, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DROUGHT RESPONSE AND CURTAILMENT OF NONESSENTIAL WATER USE DURING SEVERE OR EXTREME DROUGHT, SO AS TO PROVIDE THAT CERTAIN AGRICULTURAL PURPOSES ARE ALSO CONSIDERED AN ESSENTIAL WATER USE AND ARE EXEMPT FROM THIS MANDATORY CURTAILMENT OF NONESSENTIAL WATER USES.

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

Senator GROOMS proposed the following amendment (3235R002.LKG), which was adopted:

Amend the bill, as and if amended, page 1, by striking lines 28 - 42 and inserting:

/ "(C) The department may promulgate regulations to specify categories of nonessential water use and other terms necessary to implement this section. Water used strictly for firefighting purposes, health and medical purposes, agricultural operations for food

Printed Page 2846 . . . . . Thursday, May 19, 2005

production, minimum stream flow requirements, ~~and~~ minimum water levels in the potable drinking water supplies and the above and below ground water tables, and the use of water to satisfy federal, state, or local public health and safety requirements is are considered essential water use. Water used to maintain minimum water levels in the potable drinking water supply and water used for public safety purposes have the highest priority in the essential water category. The department by regulation may provide for the mandatory curtailment of nonessential water uses during periods of severe or extreme drought in drought management areas. Agricultural operations for non-food production, and nonessential water users that may suffer a critical economic loss as a result of mandatory curtailment, have priority over other nonessential water users. Agricultural operations for non-food production and nonessential water users that may suffer a critical economic loss as a result of mandatory curtailment must certify to the Drought Response Committee the nature of the loss in order to qualify for the higher priority nonessential use. Mandatory curtailment of nonessential water use shall become effective only after the Drought Response Committee determines the action to be /

Renumber sections to conform.

Amend title to conform.

Senator GROOMS 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. 3235--Ordered to a Third Reading

On motion of Senator KNOTTS, H. 3235 was ordered to receive a third reading on Friday, May 20, 2005.

COMMITTEE AMENDMENT ADOPTED
READ THE SECOND TIME

H. 3244 (Word version) -- Rep. Talley: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 2-1-230 SO AS TO PROVIDE THAT AN AGENCY REQUIRED BY LAW TO REPORT TO THE GENERAL ASSEMBLY SHALL PREPARE ITS REPORT AND NOTIFY THE MEMBERS OF THE

Printed Page 2847 . . . . . Thursday, May 19, 2005

GENERAL ASSEMBLY BY MAIL OR EMAIL THAT THE REPORT IS AVAILABLE UPON REQUEST.

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 (JUD3244.002), which was adopted:

Amend the bill, as and if amended, page 1, by striking lines 30 and 31, in Section 2-1-230, as contained in SECTION 1, and inserting therein the following:

/ and transmit its report electronically to the Office of Legislative Printing, Information and Technology Systems (LPITS) and to the State Library as provided in Section 60-2-30. /

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
AMENDED, READ THE SECOND TIME

H. 3328 (Word version) -- Reps. Brady, Ceips, Cobb-Hunter, Funderburk, Haley, Haskins, Hinson, Lee, Martin, Miller, Moody-Lawrence, Neilson, Parks, Young and Clark: A BILL TO AMEND SECTION 23-3-410, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE OPERATION OF THE SEX OFFENDER REGISTRY BY THE STATE LAW ENFORCEMENT DIVISION (SLED), SO AS TO PROVIDE THAT SLED SHALL INCLUDE AND CROSS-REFERENCE ALIAS NAMES IN THE REGISTRY; TO AMEND SECTION 23-3-430, AS AMENDED, RELATING TO PERSONS WHO MUST BE REFERRED TO AS SEX OFFENDERS, SO AS TO PROVIDE THAT A SEX OFFENDER WHOSE NAME IS CONTAINED ON THE SEX OFFENDER REGISTRY, AND WHO HAS BEEN GRANTED A PARDON, MUST REMAIN ON THE REGISTRY AND MUST REGISTER ANNUALLY; TO AMEND SECTION 23-3-440, AS AMENDED, RELATING TO THE

Printed Page 2848 . . . . . Thursday, May 19, 2005

NOTIFICATION A SHERIFF MUST RECEIVE FROM CERTAIN CORRECTIONAL AGENCIES REGARDING THE RELEASE OF A SEX OFFENDER, SO AS TO PROVIDE THAT AN OFFENDER'S PHOTOGRAPH MUST BE PROVIDED TO SLED BEFORE HE IS RELEASED; TO AMEND SECTION 23-3-450, AS AMENDED, RELATING TO REQUIRING A SEX OFFENDER TO REGISTER WITH THE SHERIFF OF THE COUNTY IN WHICH HE RESIDES, SO AS TO PROVIDE THAT THE OFFENDER ALSO MUST REGISTER WITH THE SHERIFF OF THE COUNTY WHERE HE OWNS REAL PROPERTY; AND TO AMEND SECTION 23-3-460, AS AMENDED, RELATING TO REQUIRING A SEX OFFENDER TO REGISTER ANNUALLY FOR LIFE, SO AS TO PROVIDE THAT A REGISTERED SEX OFFENDER WHO ACQUIRES REAL PROPERTY WITHIN THIS STATE MUST PROVIDE NOTICE OF THE ADDRESS TO THE SHERIFF IN THE COUNTY WHERE THE REAL PROPERTY IS LOCATED, AND TO PROVIDE THAT A PERSON WHO IS REQUIRED TO REGISTER AS A SEX OFFENDER WHO MOVES TO THIS STATE, ACQUIRES REAL PROPERTY IN THIS STATE, AND IS NOT UNDER THE JURISDICTION OF CERTAIN CORRECTIONAL AGENCIES, MUST REGISTER WITHIN TEN DAYS OF ACQUIRING PROPERTY WITHIN THIS STATE.

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 (JUD3328.001), which was adopted:

Amend the bill, as and if amended, page 4, by striking lines 25 through 29 and inserting:

/ (21) administering, distributing, dispensing, delivering, or aiding, abetting, attempting, or conspiring to administer, distribute, dispense, or deliver a controlled substance or gamma hydroxy butyrate to an individual with the intent to commit a crime listed in Section 44-53-370(f), except petit larceny or grand larceny. /

Amend the bill further, as and if amended, by striking Section 23-3-430(E) in its entirety on page 4, lines 35-42, and on page 5, lines 1-2, and inserting:

/ (E) SLED shall remove a person's name and any other information concerning that person from the sex offender registry immediately upon notification by the Attorney General that the

Printed Page 2849 . . . . . Thursday, May 19, 2005

person's adjudication, conviction, guilty plea, or plea of nolo contendere for an offense listed in ~~Section 23-3-430(C)~~ subsection (C) was reversed, overturned, or vacated on appeal and a final judgment has been rendered.

(F) If an offender receives a pardon for the offense for which he was required to register, the offender may not be removed from the registry except:

(1) as provided by the provisions of subsection (E);

(2) if the pardon is based on a finding of not guilty specifically stated in the pardon; or

(3) if, after the time for post conviction relief has expired, the offender files a petition for a pardon with the circuit court in the county of conviction based on newly discovered evidence and serves a copy of the petition upon the solicitor of the county of conviction, and within thirty days the solicitor is given an opportunity to respond to the petition and demand a hearing on the merits of the petition, and the court overturns the conviction." /

Amend the bill further, as and if amended, page 6, by striking SECTION 4 in its entirety and inserting:

/ SECTION 4. Section 23-3-450 of the 1976 Code is amended to read:

"Section 23-3-450. The offender shall register with the sheriff of ~~the~~ each county in which he resides, owns real property, or attends any public or private school, including, but not limited to, a secondary school, adult education school, college or university, and any vocational, technical, or occupational school. To register, the offender must provide information as prescribed by SLED. The sheriff in the county in which the offender resides, owns real property, or attends any public or private school shall forward all required registration information to SLED within five business days. A copy of this information must be kept by the sheriff's department. The county sheriff shall ensure that all information required by SLED is secured and shall establish specific times of the day during which an offender may register. An offender shall not be considered to have registered until all information prescribed by SLED has been provided to the sheriff. The sheriff in the county in which the offender resides, owns real property, or attends any public or private school shall notify all local law enforcement agencies, including college or university law enforcement agencies, within five business days of an offender who resides, owns real property, or attends any public or private school within the local law enforcement agency's jurisdiction."

Printed Page 2850 . . . . . Thursday, May 19, 2005

Amend the bill further, as and if amended, pages 7-8, by striking SECTION 5 in its entirety and inserting:

/ SECTION 5. Section 23-3-460 of the 1976 Code is amended to read:

"Section 23-3-460. ~~Any~~ A person required to register under this article ~~shall be~~ is required to register annually for life. For purposes of this article, 'annually' means each year within thirty days after the anniversary date of the offender's last registration. The offender shall register at the sheriff's department in ~~the~~ each county where he resides, owns real property, or attends any public or private school, including, but not limited to, a secondary school, adult education school, college or university, and any vocational, technical, or occupational school. A person determined by a court to be a sexually violent predator pursuant to state law is required to verify registration and be photographed every ninety days by the sheriff's department in the county in which he resides unless the person is committed to the custody of the State, whereby verification shall be held in abeyance until his release.

If ~~any~~ a person required to register under this article changes his address within the same county, that person must send written notice of the change of address to the ~~county~~ sheriff within ten days of establishing the new residence. If a person required to register under this article owns or acquires real property within a county in this State, or attends any public or private school, including, but not limited to, a secondary school, adult education school, college or university, and any vocational, technical, or occupational school, he must register with the sheriff in each county where the real property or the public or private school is located within ten days of acquiring the real property or attending the public or private school.

If ~~any~~ a person required to register under this article changes his address into another county in South Carolina, the person must register with the county sheriff in the new county within ten days of establishing the new residence. The person must also provide written notice within ten days of the change of address in the previous county to the ~~county~~ sheriff with whom the person last registered.

~~Any~~ A person required to register under this article and who is employed by, attends, is enrolled at, or carries on a vocation at ~~an institution of higher education~~ any public or private school, including, but not limited to, a kindergarten, elementary school, middle school or junior high, high school, secondary school, adult education school, college or university, and any vocational, technical, or occupational school must provide written notice within ten days of each change in

Printed Page 2851 . . . . . Thursday, May 19, 2005

attendance, enrollment, employment, or vocation status at ~~an institution of higher education~~ any public or private school in this State. For purposes of this section: 'employed and carries on a vocation' means employment that is full time or part time for a period of time exceeding fourteen days or for an aggregate period of time exceeding thirty days during any calendar year, whether financially compensated, volunteered, or for the purpose of government or educational benefit; and 'student' means a person who is enrolled on a full-time or part-time basis, in any public or private ~~educational institution, including any secondary school, trade, professional institution, or institution of higher education~~ school, including, but not limited to, a kindergarten, elementary school, middle school or junior high, high school, secondary school, adult education school, college or university, and any vocational, technical, or occupational school.

If ~~any~~ a person required to register under this article moves outside of South Carolina, the person must provide written notice within ten days of the change of address to a new state to the county sheriff with whom the person last registered.

~~Any~~ A person required to register under this article who moves to South Carolina from another state, establishes residence, acquires real property, attends or is enrolled at, or is employed by or carries on a vocation at any public or private school, including, but not limited to, a kindergarten, elementary school, middle school or junior high, high school, secondary school, adult education school, college or university, and any vocational, technical, or occupational school in South Carolina, and is not under the jurisdiction of the Department of Corrections, the Department of Probation, Parole and Pardon Services, or the Department of Juvenile Justice, or the Juvenile Parole Board at the time of moving to South Carolina must register within ten days of establishing residence, acquiring real property, attending or enrolling at, or being employed by or carrying on a vocation at any public or private school in this State.

The sheriff of the county in which the person resides must forward all changes to any information provided by a person required to register under this article to SLED within five business days.

A sheriff who receives registration information, notification of change of address, or notification of change in attendance, enrollment, employment, or vocation status at any public or private school, including, but not limited to, a kindergarten, elementary school, middle school or junior high, high school, secondary school, adult education school, college or university, and any vocational, technical, or

Printed Page 2852 . . . . . Thursday, May 19, 2005

occupational school, must notify all local law enforcement agencies, including college or university law enforcement agencies, within five business days of an offender whose address, real property, or public or private school is within the local law enforcement agency's jurisdiction.

The South Carolina Department of Motor Vehicles, shall inform, in writing, any new resident who applies for a driver's license, chauffeur's license, vehicle tag, or state identification card of the obligation of sex offenders to register. The department also shall inform, in writing, a person renewing a driver's license, chauffeur's license, vehicle tag, or state identification card of the requirement for sex offenders to register." /

Amend the bill further, as and if amended, page 9, by striking SECTION 6 in its entirety and inserting:

/ SECTION 6. Section 23-3-470 of the 1976 Code is amended to read:

"Section 23-3-470. (A) It is the duty of the offender to contact the sheriff in order to register, provide notification of change of address, or notification of change in attendance, enrollment, employment, or vocation status at any public or private school, including, but not limited to, a kindergarten, elementary school, middle school or junior high, high school, secondary school, adult education school, college or university, and any vocational, technical, or occupational school. If an offender fails to register, provide notification of change of address, or notification of change in attendance, enrollment, employment, or vocation status at any public or private school, as required by this article, he must be punished as provided in subsection (B).

(B)(1) A person convicted for a first offense is guilty of a misdemeanor and must be imprisoned for a mandatory period of ninety days, no part of which shall be suspended nor probation granted.

(2) A person convicted for a second offense is guilty of a misdemeanor and must be imprisoned for a mandatory period of one year, no part of which shall be suspended nor probation granted.

(3) A person convicted for a third or subsequent offense is guilty of a felony and must be imprisoned for a mandatory period of five years, three years of which shall not be suspended nor probation granted." /

Amend the bill further, as and if amended, pages 9-10, by striking SECTION 7 in its entirety and inserting:

/ SECTION 7. Article 7, Chapter 3, Title 23 of the 1976 Code is amended by adding:

Printed Page 2853 . . . . . Thursday, May 19, 2005

"Section 23-3-525. A real estate brokerage and its affiliated licensees is immune from liability for any act or omission related to the disclosure of information under this chapter if the brokerage or its affiliated licensees in a timely manner provides to its clients and customers written notice that they may obtain information about the sex offender registry and persons registered with the registry by contacting the county sheriff. The notice may be included as part of a listing agreement, buyer representation agreement, or sales agreement." /

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

/ SECTION ____. Section 40-57-180(E) of the 1976 Code is amended to read:

"(E) No cause of action may arise against an owner of real estate or licensed real estate agent of any party to a transaction for failure to disclose in a transaction:

(1) that the subject real estate is or was occupied by an individual who was infected with a virus or any other disease which has been determined by medical evidence as being highly unlikely to be transmitted through occupancy of a dwelling place either presently or previously occupied by the infected individual;

(2) that the death of an occupant of a property has occurred or the manner of the death;

~~(3)~~ ~~the location of any registered sex offender;~~

~~(4)~~(3) any offsite condition or hazard that does not directly impact the property being transferred; or

~~(5)~~(4) any psychological impact that has no material impact on the physical condition of the property being transferred." /

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

/ SECTION ___. Chapter 3, Title 23 of the 1976 Code is amended to read:

"Section 23-3-540. (A) Prior to an offender's release after completion of a term of imprisonment, being placed on parole, being placed under community supervision, being placed under a community supervision program, or when an offender is sentenced to probation, the Department of Probation, Parole and Pardon Services shall place the offender under a system of active electronic monitoring that identifies the location of the offender and that can produce, upon request, reports or records of the offender's presence near or within a crime scene or prohibited area or the offender's departure from a specified geographic location.

Printed Page 2854 . . . . . Thursday, May 19, 2005

(B) An offender who violates a term of probation, parole, community supervision, or a community supervision program must be ordered by the court to be placed by the Department of Probation, Parole and Pardon Services under a system of active electronic monitoring that identifies the location of the offender and that can produce, upon request, reports or records of the offender's presence near or within a crime scene or prohibited area or the offender's departure from a specified geographic location.

(1) convicted of, pled guilty or nolo contendere to, or been adjudicated delinquent for any of the following offenses:

(a) criminal sexual conduct with minors, first degree (Section 16-3-655(1));

(b) criminal sexual conduct with minors, second degree. If evidence is presented at the criminal proceeding and the court makes a specific finding on the record that the conviction obtained for this offense resulted from consensual sexual conduct, as contained in Section 16-3-655(3) provided the offender is eighteen years of age or less, or consensual sexual conduct between persons under sixteen years of age, the convicted person is not an offender and is not required to register pursuant to the provisions of this article;

(d) producing, directing, or promoting sexual performance by a child (Section 16-3-820);

(e) criminal sexual conduct: assaults with intent to commit (Section 16-3-656) involving a minor;

(f) committing or attempting lewd act upon child under sixteen (Section 16-15-140);

(g) violations of Article 3, Chapter 15 of Title 16 involving a minor;

(h) kidnapping (Section 16-3-910) of a person under eighteen years of age except when the offense is committed by a parent;

(i) criminal solicitation of a minor if the purpose or intent of the solicitation or attempted solicitation was to:

(i) persuade, induce, entice, or coerce the person solicited to engage or participate in sexual activity as defined in Section 16-15-375(5);

(ii) perform a sexual activity in the presence of the person solicited (Section 16-15-342);

Printed Page 2855 . . . . . Thursday, May 19, 2005

(2) ordered as a condition of sentencing to be included in the sex offender registry pursuant to Section 23-3-430(D) for an offense involving a minor.

(D) The offender shall remain under the system of active electronic monitoring for the duration of the time the offender is required to remain on the sex offender registry pursuant to the provisions of this article, unless the offender is committed to the custody of the State.

(E) The offender shall follow instructions provided by the Department of Probation, Parole and Pardon Services to maintain the electronic monitoring device in working order. Incidental damage or defacement of the electronic monitoring device must be reported to the Department of Probation, Parole and Pardon Services within two hours. An offender who fails to comply with the reporting requirement of this subsection is guilty of a felony and, upon conviction, must be fined not more than five thousand dollars or imprisoned not more than five years.

(F) The offender shall abide by any other conditions set forth by the Department of Probation, Parole and Pardon Services with regard to the electronic monitoring.

(G) The offender must be charged a fee in accordance with Section 24-21-85.

(H) A person who intentionally removes, tampers with, defaces, alters, damages, or destroys an electronic monitoring device is guilty of a felony and, upon conviction, must be fined not more than five thousand dollars or imprisoned not more than five years. This subsection does not apply to a person or agent authorized by the Department of Probation, Parole and Pardon Services to perform maintenance and repairs to the electronic monitoring devices." /

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

/ SECTION ___. Chapter 3, Title 23 of the 1976 Code is amended to read:

"Section 23-3-550. A person who knowingly protects, harbors, or conceals an offender who the person knows is not in compliance with the requirements of this article, is guilty of a felony and, upon conviction, must be fined not more than five thousand dollars or imprisoned not more than five years." /

Amend the bill further, as and if amended, page 10, by striking SECTION 10 in its entirety and inserting:

/ SECTION 10. All SECTIONS of this act take effect on January 1, 2006, except the appropriately numbered new SECTION adding Section 23-3-540 goes into effect upon the Department of Probation,

Printed Page 2856 . . . . . Thursday, May 19, 2005

Parole and Pardon Services' receipt of the funds necessary to implement Section 23-3-540. /

Amend title to conform.

Renumber sections to conform.

Senator MARTIN explained the committee amendment.

The committee amendment was adopted.

Senator HUTTO proposed the following amendment (JUD3328.005), which was adopted:

Amend the bill, as and if amended, page 2, by striking lines 30 through 43 and inserting:

/ "Section 23-3-430. (A) Any person, regardless of age, residing in the State of South Carolina who in this State has been convicted of, adjudicated delinquent for, pled guilty or nolo contendere to an offense described below, or who has been convicted, adjudicated delinquent, pled guilty or nolo contendere, or found not guilty by reason of insanity in any comparable court in the United States, or a foreign country, or who has been convicted, adjudicated delinquent, pled guilty or nolo contendere, or found not guilty by reason of insanity in the United States federal courts of a similar offense, or who has been convicted of, adjudicated delinquent for, pled guilty or nolo contendere, or found not guilty by reason of insanity to an offense for which the person was required to register in the state where the conviction or plea occurred, shall be required to register pursuant to the provisions of this article. A person who has been found not guilty by reason of insanity shall not be required to register pursuant to the provisions of this article unless and until the person is declared to no longer be insane or is ordered to register by the trial judge. A person who has been convicted, adjudicated delinquent, pled guilty or nolo contendere, or found not guilty by reason of insanity in any court in a foreign country may raise as a defense to a prosecution for failure to register that the offense in the foreign country was not equivalent to any offense in this State for which he would be required to register and may raise as a defense that the conviction, adjudication, plea, or finding in the foreign country was based on a proceeding or trial in which the person was not afforded the due process of law as guaranteed by the Constitution of the United States and this State. /

Renumber sections to conform.

Amend title to conform.

Printed Page 2857 . . . . . Thursday, May 19, 2005

Senator HUTTO 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
AMENDED, READ THE SECOND TIME

H. 3543 (Word version) -- Reps. G.M. Smith and Weeks: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ENACTING "MARY LYNN'S LAW"; BY ADDING SECTION 16-1-130 SO AS TO PROVIDE THAT A PERSON WITH A CURRENT CHARGE OR A PRIOR CONVICTION FOR A VIOLENT OFFENSE, A HARASSMENT OR STALKING OFFENSE, OR A BURGLARY OFFENSE OR A PERSON SUBJECT TO A RESTRAINING ORDER OR VALID ORDER OF PROTECTION MAY NOT BE CONSIDERED FOR A DIVERSION PROGRAM; TO AMEND SECTIONS 16-3-1525 AND 16-3-1530, RELATING TO VICTIM NOTIFICATION, SO AS TO PROVIDE THAT VICTIM NOTIFICATION MAY NOT BE BY ELECTRONIC OR OTHER AUTOMATED COMMUNICATION OR RECORDING AND TO PROVIDE A PROCEDURE FOR NOTIFICATION; TO AMEND ARTICLE 17, CHAPTER 3, TITLE 16, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO STALKING AND HARASSMENT, SO AS TO REDEFINE STALKING AND HARASSMENT; TO REVISE THE PENALTIES FOR STALKING AND HARASSMENT; TO REQUIRE THAT WHEN A RESTRAINING ORDER IS ISSUED AS A CONDITION OF BOND FOR HARASSMENT OR STALKING, A COPY OF THE RESTRAINING ORDER MUST BE SENT BY THE COURT TO THE VICTIM; TO PROVIDE THAT A TEMPORARY RESTRAINING ORDER GRANTED WITHOUT NOTICE MUST BE ENTERED OF RECORD WITH THE MAGISTRATES COURT; TO PROVIDE THAT THE DURATION OF A TEMPORARY RESTRAINING ORDER IS EXTENDED FROM SIX MONTHS TO ONE YEAR; TO ALLOW LAW ENFORCEMENT OR ANOTHER PERSON TO SIGN A WARRANT FOR A PERSON ENGAGED IN HARASSMENT OR STALKING IN PLACE OF THE VICTIM; TO ALLOW SERVICE OF A RESTRAINING ORDER TO BE MADE

Printed Page 2858 . . . . . Thursday, May 19, 2005

BY MAIL RETURN RECEIPT TO THE DEFENDANT'S LAST KNOWN ADDRESS; TO REQUIRE THAT A MENTAL EVALUATION MUST BE MADE BEFORE BAIL IS SET ON A STALKING OR HARASSMENT CHARGE; AND TO REQUIRE THAT THE EVALUATION BE SCHEDULED WITHIN TEN DAYS OF THE ORDER'S ISSUANCE, THAT THE REPORT BE ISSUED WITHIN FORTY-EIGHT HOURS OF EVALUATION, AND THAT THE SOLICITOR ARRANGE FOR A BOND HEARING UPON RECEIPT OF THE REPORT BEFORE A CIRCUIT COURT JUDGE; TO AMEND SECTION 24-3-20, AS AMENDED, RELATING TO PRISONERS WHO ARE ELIGIBLE TO PARTICIPATE IN WORK RELEASE, SO AS TO PROHIBIT THOSE OFFENDERS CONVICTED OF A VIOLENT OFFENSE, A HARASSMENT OR STALKING OFFENSE, OR A BURGLARY OFFENSE; TO AMEND SECTION 56-1-90, AS AMENDED, RELATING TO REQUIRED INFORMATION NECESSARY TO OBTAIN A DRIVER'S LICENSE AND SECTION 56-1-230, RELATING TO NOTIFICATION OF CHANGE OF ADDRESS, BOTH SO AS TO REQUIRE PROOF OF ADDRESS AND TO PROVIDE EXAMPLES OF SUFFICIENT PROOF.

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 (JUD3543.001), which was adopted:

Amend the bill, as and if amended, page 2, by striking lines 32-40 and inserting:

/ "Section 16-1-130. (A) A person may not be considered for a diversion program, including, but not limited to, a drug court program or a mental health court, if the:

(1) person's current charge is for a violent offense as defined in Section 16-1-60 or a stalking offense pursuant to Article 17, Chapter 3, Title 16;

(2) person has a prior conviction for a violent crime as defined in Section 16-1-60, or a harassment or stalking offense pursuant to Article 17, Chapter 3, Title 16; /

Amend the bill further, as and if amended, page 3, by striking SECTION 3 in its entirety.

Amend the bill further, as and if amended, page 4, by striking lines 33-43 and inserting:

Printed Page 2859 . . . . . Thursday, May 19, 2005

/ (3) a department or agency having custody of a person accused, convicted, or adjudicated guilty of committing an offense involving one or more victims must inform each victim, upon request, of before any non-intradepartmental transfer of the person to a less secure facility or to a diversionary program including, but not limited to, a drug court program or a mental health court. The provisions of this item do not apply to transfers to other law enforcement agencies and transfers to other nonlaw enforcement locations if the person remains under security supervision. All victims, upon request, must be notified of intradepartmental transfers after the transfer occurs; and /

Amend the bill further, as and if amended, page 5, by striking lines 6-9 and inserting:

/ (B) Notification of a victim pursuant to the provisions of this section may not be only by electronic or other automated communication or recording except in the case of an intradepartmental transfer." /

Amend the bill further, as and if amended, page 5, by striking SECTION 7 in its entirety and inserting:

/ SECTION 7. Section 16-3-1535 of the 1976 Code is amended by adding an appropriately lettered subsection at the end to read:

"( ) In cases in which the sentence is more than ninety days, the summary court judge must forward, as appropriate and within fifteen days, a copy of each victim's impact statement or the name, mailing address, and telephone number of each victim, or both, to the Department of Corrections, the Department of Probation, Parole and Pardon Services, or the Board of Juvenile Parole, the Department of Juvenile Justice, and a diversion program. The names, addresses, and telephone numbers of victims and prosecution witnesses contained in the records of the Department of Corrections, the Department of Probation, Parole and Pardon Services, the Board of Juvenile Parole, and the Department of Juvenile Justice are confidential and must not be disclosed directly or indirectly, except by order of a court of competent jurisdiction or as necessary to provide notifications, or services, or both, between these agencies, these agencies and the prosecuting agency, or these agencies and the Attorney General." /

Amend the bill, as and if amended, by striking Section 16-3-1700 in its entirety on page 5, lines 27-43, and on page 6, lines 1-42, and inserting:

/ "Section 16-3-1700. As used in this article:

(A) 'Harassment in the first degree' means a pattern of intentional, substantial, and unreasonable intrusion into the private life of a targeted

Printed Page 2860 . . . . . Thursday, May 19, 2005

person that serves no legitimate purpose and causes the person and would cause a reasonable person in his position to suffer mental or emotional distress. Harassment in the first degree may include, but is not limited to:

(1) following the targeted person as he moves from location to location;

(2) visual, or physical~~, verbal, written, or electronic~~ contact that is initiated, maintained, or repeated after a person has been provided oral or written notice that the contact is unwanted or after the victim has filed an incident report with a law enforcement agency;

(3) surveillance of or the maintenance of a presence near the targeted person's:

(a) residence;

(b) place of work;

(d) another place regularly occupied or visited by the targeted person; and

(4) vandalism and property damage.

Harassment in the does not include words or conduct that is protected by the Constitution of this State or the United States and does not apply to law enforcement officers or process servers performing their official duties.

(B) 'Harassment in the second degree' means a pattern of intentional, substantial, and unreasonable intrusion into the private life of a targeted person that serves no legitimate purpose and causes the person and would cause a reasonable person in his position to suffer mental or emotional distress. Harassment in the second degree may include, but is not limited to, verbal, written, or electronic contact that is initiated, maintained, or repeated.

(C) 'Stalking' means a pattern of words, ~~conduct,~~ whether verbal, written, or electronic, or a pattern of conduct that serves no legitimate purpose and is intended to cause and does cause a targeted person and would cause a reasonable person in the targeted person's position to fear:

(1) death of the person or a member of his family;

(2) assault upon the person or a member of his family;

(3) bodily injury to the person or a member of his family;

(4) criminal sexual contact on the person or a member of his family;

(5) kidnapping of the person or a member of his family; or

Printed Page 2861 . . . . . Thursday, May 19, 2005

(6) damage to the property of the person or a member of his family.

Stalking does not include words or conduct that is protected by the Constitution of this State or the United States and does not apply to law enforcement officers or process servers performing their official duties.

~~(C)~~ ~~'Aggravated stalking' means stalking accompanied or followed by an act of violence.~~

(D) 'Pattern' means two or more acts ~~within a ninety-day~~ occurring over a period of time, however short, evidencing a continuity of purpose.

(E) 'Family' means a spouse, child, parent, sibling, or a person who regularly resides in the same household as the targeted person.

(F) 'Electronic contact' means any transfer of signs, signals, writings, images, sounds, data, intelligence, or information of any nature transmitted in whole or in part by any device, system, or mechanism, including, but not limited to, a wire, radio, computer, electromagnetic, photoelectric, or photo-optical system.

(G) This section does not apply to words or conduct protected by the Constitution of this State or the United States, a law enforcement officer or a process server performing official duties, or a licensed private investigator performing services or an investigation as described in detail in a contract signed by the client and the private investigator pursuant to Section 40-18-70. /

Amend the bill further, as and if amended, by striking Section 16-3-1705(A) in its entirety on page 7, lines 1-4, and inserting:

/ Section 16-3-1705. (A) An electronic mail service provider must not be charged with or have a penalty assessed based upon a violation of this article or have a cause of action filed against it based on the electronic mail service provider's: /

Amend the bill further, as and if amended, page 8, by striking lines 36-42 and inserting:

/ (D) In addition to the penalties provided in this section, a person convicted of stalking who received licensing or registration information pursuant to Article 4, Chapter 3 of Title 56 and used the information in furtherance of the commission of the offense pursuant to this section must be fined one thousand dollars or imprisoned one year, or both. /

Amend the bill further, as and if amended, page 13, by striking lines 1-12 and inserting:

/ performed by the local mental health department. The purpose of this evaluation is to determine if the defendant needs mental health treatment or counseling as a condition of bond. The evaluation must be

Printed Page 2862 . . . . . Thursday, May 19, 2005

scheduled within ten days of the order's issuance. Once the evaluation is completed, the examiner must, within forty-eight hours, issue a report to the local solicitor's office, summary court judge, or other law enforcement agency. Upon receipt of the report, the solicitor, summary court judge, or other law enforcement agency must arrange for a bond hearing before a circuit court judge or summary court judge." /

Amend the bill further, as and if amended, page 13, by striking lines 33-43 and inserting:

/ "Section 24-3-20. (A) A person convicted of an offense against this State and sentenced to imprisonment for more than three months is in the custody of the South Carolina Department of Corrections, and the department shall designate the place of confinement where the sentence must be served. Nothing in this section prevents a court from ordering a sentence to run concurrently with a sentence being served in another state or an active federal sentence. The department may designate as a place of confinement any available, suitable, and appropriate institution or facility, including a county jail or prison camp, whether maintained by the department, or otherwise. If the facility /

Amend the bill further, as and if amended, page 16, after line 37 by adding an appropriately numbered new SECTION to read:

/ SECTION ____. Section 16-3-1555 of the 1976 Code is amended to read:

"Section 16-3-1555. (A) The circuit or family court must order, in a timely manner, reasonable expert witness fees and reimbursement to victims of reasonable out-of-pocket expenses associated with lawfully serving a subpoena.

(B) ~~The~~ In cases in which the sentence is more than ninety days, the prosecuting agency must forward, as appropriate and within ~~a reasonable time~~ fifteen days, a copy of each victim's impact statement or the name, mailing address, and telephone number of each victim, or both, to the Department of Corrections, the Department of Probation, Parole and Pardon Services, or the Board of Juvenile Parole, ~~and~~ the Department of Juvenile Justice, and a diversion program. The names, addresses, and telephone numbers of victims and prosecution witnesses contained in the records of the Department of Corrections, the Department of Probation, Parole and Pardon Services, the Board of Juvenile Parole, and the Department of Juvenile Justice are confidential and must not be disclosed directly or indirectly, except by order of a court of competent jurisdiction or as necessary to provide notifications,

Printed Page 2863 . . . . . Thursday, May 19, 2005

or services, or both, between these agencies, these agencies and the prosecuting agency, or these agencies and the Attorney General.

(C) The prosecuting agency must file with an indictment a copy of a written victim's impact statement. The victim's impact statement may be sealed by the appropriate authority until the defendant has been adjudicated, found guilty, or has pled guilty maintain the victim's original impact statement. The victim's impact statement must not be provided to the defendant until the defendant has been adjudicated, found guilty, or has pled guilty. The victim's impact statement and its contents are not admissible as evidence in any trial.

(D) The prosecuting agency must inform the victim and the prosecution witnesses of their responsibility to provide the prosecuting agency, the Department of Corrections, the Department of Probation, Parole and Pardon Services, the Board of Juvenile Parole, the Department of Juvenile Justice, or the Attorney General, as appropriate, their legal names, current addresses, and telephone numbers.

(E) The prosecuting agency must inform the victim about the collection of restitution, fees, and expenses, the recovery of property used as evidence, and how to contact the Department of Corrections, the Board of Juvenile Parole, the Department of Probation, Parole and Pardon Services, the Department of Juvenile Justice, or the Attorney General, as appropriate." /

Amend the bill further, as and if amended, by striking SECTION 14 in its entirety and inserting:

/ SECTION 14. Section 11 of this act takes effect upon approval by the Governor. The remaining sections of this act take effect on January 1, 2006. /

Renumber sections to conform.

Amend title to conform.

Senator HUTTO explained the committee amendment.

The committee amendment was adopted.

Senator HUTTO proposed the following amendment (JUD3543.002), which was adopted:

Amend the bill, as and if amended, page 13, by striking lines 26-28 and inserting:

/ (B) The court shall consider the accused's criminal record, if any. The court shall consider, if available, all incident reports generated as a result of the offense charged." /

Printed Page 2864 . . . . . Thursday, May 19, 2005

Amend the bill further, as and if amended, page 14, by striking lines 38-43 and inserting:

/ act on a child; engaging a child for sexual performance; or spousal sexual battery; or a violent offense as defined in Section 16-1-60, a harassment or stalking offense pursuant to Article 17, Chapter 3 of Title 16, or a burglary offense pursuant to Sections 16-11-311 or 16-11-312(B). A prisoner who is serving a sentence for a 'no parole offense' as defined in Section 24-13-100 and who is /

Renumber sections to conform.

Amend title to conform.

Senator HUTTO explained the amendment.

The amendment was adopted.

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

COMMITTEE AMENDMENT ADOPTED
READ THE SECOND TIME

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

Printed Page 2865 . . . . . Thursday, May 19, 2005

AUTHORITY, AND TO AMEND SECTION 30-4-40, AS AMENDED, RELATING TO MATTERS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT, SO AS TO EXEMPT PRIVATE INVESTMENT AND OTHER PROPRIETARY FINANCIAL DATA PROVIDED TO THE VENTURE CAPITAL AUTHORITY BY A DESIGNATED INVESTOR GROUP OR AN INVESTOR.

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

The Committee on Finance proposed the following amendment (4035R001.HKL), which was adopted:

Amend the bill, as and if amended, page 18 by striking lines 17 - 21.

Renumber sections to conform.

Amend title to conform.

The committee amendment was adopted.

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

ADOPTED

S. 553 (Word version) -- Senator Hawkins: A CONCURRENT RESOLUTION REQUESTING THE CONGRESS OF THE UNITED STATES TO ENACT NO INCREASES IN PAYROLL TAXES, NO CUTS TO SOCIAL SECURITY BENEFITS, AND OPTIONAL SOCIAL SECURITY PERSONAL RETIREMENT ACCOUNTS.

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

Recorded Vote

Senator LEVENTIS desired to be recorded as voting against the adoption of the Resolution.

COMMITTEE AMENDMENT ADOPTED, OBJECTION

S. 821 (Word version) -- Senator Rankin: A JOINT RESOLUTION TO PROVIDE FOR A STATEWIDE ADVISORY REFERENDUM TO BE HELD AT THE SAME TIME AS THE 2006 GENERAL ELECTION TO DETERMINE WHETHER OR NOT THE QUALIFIED ELECTORS OF THIS STATE FAVOR CHANGING THE STARTING DATE

Printed Page 2866 . . . . . Thursday, May 19, 2005

FOR ELEMENTARY AND SECONDARY SCHOOLS OF THIS STATE.

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

The Committee on Judiciary proposed the following amendment (JUD0821.002), which was adopted:

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

/ SECTION 1. (A) A statewide advisory referendum must be held at the same time as the 2006 General Election to ascertain the wishes of the qualified electors of this State as to whether or not August twenty-fifth should be established as the earliest date that may be set as the start date for the elementary and secondary instructional school year.

(B) The question put before the voters at the 2006 advisory referendum shall read as follows:

"When establishing a start date for the elementary and secondary instructional school year, should the State Board of Education, the local school districts, or any other body designated to set the instructional school year start date be limited to establishing a start date to no earlier than August twenty-fifth of each year?

Yes [ ]

No [ ]

Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'."

(C) Within sixty days after the results of the 2006 General Election are certified, the State Election Commission must submit a report to the Senate Judiciary Committee and the House of Representatives Judiciary Committee concerning the conduct of the referendum, the performance of the new voting system, and the results of the referendum. /

Renumber sections to conform.

Amend title to conform.

Senators HUTTO and RITCHIE explained the committee amendment.

Printed Page 2867 . . . . . Thursday, May 19, 2005

The committee amendment was adopted.

Senator RYBERG objected to further consideration of the Resolution.

COMMITTEE AMENDMENT WITHDRAWN

H. 3296 (Word version) -- Reps. Harrell, Wilkins, Leach, Lucas, Bales, G.R. Smith, J.R. Smith, Vaughn, Battle, Cobb-Hunter, Neilson, Clark, Skelton, Kirsh, Moody-Lawrence, Rice, Harrison, Haley, Harvin, Young, Cotty, Mack, J.E. Smith, Taylor, Clemmons, Tripp, Chalk, Breeland, Limehouse, Altman, Bailey, Ballentine, Barfield, Bingham, Ceips, Chellis, Dantzler, Delleney, Duncan, Frye, Hagood, Hardwick, Herbkersman, Hinson, Huggins, Jennings, Littlejohn, Martin, McGee, Norman, Ott, Perry, E.H. Pitts, Scarborough, Sinclair, D.C. Smith, Stewart, Toole, Townsend, Umphlett, Walker, Witherspoon, Brady, Mahaffey and R. Brown: A BILL TO AMEND SECTION 12-28-1555, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PROHIBITION AGAINST THE USE OF DYED MOTOR VEHICLE FUELS UNDER CERTAIN CIRCUMSTANCES, AND PENALTIES ASSOCIATED WITH VIOLATIONS OF THIS SECTION, SO AS TO PROVIDE THAT ALL FINES IMPOSED PURSUANT TO THIS SECTION MUST BE PLACED IN THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND; TO AMEND SECTION 12-28-2355, AS AMENDED, RELATING TO BOTH THE INSPECTION FEE AND THE ENVIRONMENTAL IMPACT FEE CHARGED ON PETROLEUM PRODUCTS, SO AS TO PROVIDE THAT AFTER JUNE 30, 2005, ALL FEES COLLECTED PURSUANT TO THE PROVISIONS CONTAINED IN THIS SECTION MUST BE PLACED IN THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND; TO AMEND SECTION 12-28-2720, AS AMENDED, RELATING TO THE DISTRIBUTION OF THE GASOLINE USER FEE, SO AS TO PROVIDE THAT THE FEE MUST BE PLACED IN THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND INSTEAD OF BEING TURNED OVER TO THE DEPARTMENT OF TRANSPORTATION; TO AMEND SECTION 12-28-2910, AS AMENDED, RELATING TO THE FUNDING AND FUNCTIONS OF THE SOUTH CAROLINA COORDINATING COUNCIL FOR ECONOMIC DEVELOPMENT, SO AS TO PROVIDE THAT ITS FUNDING PROVIDED FROM A

Printed Page 2868 . . . . . Thursday, May 19, 2005

PORTION OF THE GASOLINE USER FEE SHALL BE ELIMINATED OVER A FIVE-YEAR PERIOD; TO AMEND SECTION 56-1-50, AS AMENDED, RELATING TO THE ISSUANCE OF A BEGINNERS PERMIT, SO AS TO PROVIDE THAT THE FEES COLLECTED FROM THE ISSUANCE OF A BEGINNERS PERMIT MUST BE TRANSFERRED FROM THE GENERAL FUND OF THE STATE TO THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND OVER A FIVE-YEAR PERIOD; TO AMEND SECTION 56-1-140, AS AMENDED, RELATING TO THE ISSUANCE OF A DRIVER'S LICENSE, SO AS TO PROVIDE THAT THE FEES COLLECTED PURSUANT TO THE ISSUANCE OF A DRIVER'S LICENSE MUST BE TRANSFERRED FROM THE GENERAL FUND OF THE STATE TO THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND OVER A FIVE-YEAR PERIOD; TO AMEND SECTION 56-1-200, AS AMENDED, RELATING TO OBTAINING A DUPLICATE OF A LOST OR DESTROYED DRIVER'S LICENSE, SO AS TO PROVIDE THAT THE FEES COLLECTED PURSUANT TO THE ISSUANCE OF A DUPLICATE DRIVER'S LICENSE MUST BE TRANSFERRED FROM THE GENERAL FUND OF THE STATE TO THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND OVER A FIVE-YEAR PERIOD; TO AMEND SECTION 56-1-390, AS AMENDED, RELATING TO THE FEE CHARGED FOR THE REINSTATEMENT OF A DRIVER'S LICENSE, SO AS TO PROVIDE THAT THESE FEES MUST BE TRANSFERRED FROM THE GENERAL FUND OF THE STATE TO THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND OVER A FIVE-YEAR PERIOD; TO AMEND SECTION 56-1-740, AS AMENDED, RELATING TO THE SUSPENSION OF A DRIVER'S LICENSE AND THE ISSUANCE OF A SPECIAL RESTRICTED DRIVER'S LICENSE, SO AS TO PROVIDE THAT THE FEES COLLECTED FROM THE ISSUANCE OF SPECIAL RESTRICTED DRIVER'S LICENSES MUST BE TRANSFERRED FROM THE GENERAL FUND OF THE STATE TO THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND OVER A FIVE-YEAR PERIOD; TO AMEND SECTION 56-1-2090, RELATING TO THE ISSUANCE OF A COMMERCIAL DRIVER LICENSE, SO AS TO PROVIDE THAT THE FEES COLLECTED FROM THE ISSUANCE OF

Printed Page 2869 . . . . . Thursday, May 19, 2005

COMMERCIAL DRIVER LICENSES MUST BE TRANSFERRED FROM THE GENERAL FUND OF THE STATE TO THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND OVER A FIVE-YEAR PERIOD; TO AMEND SECTION 56-1-3350, AS AMENDED, RELATING TO THE ISSUANCE OF SPECIAL IDENTIFICATION CARDS, SO AS TO PROVIDE THAT THE FEES COLLECTED FROM THE ISSUANCE OF SPECIAL IDENTIFICATION CARDS MUST BE TRANSFERRED FROM THE GENERAL FUND OF THE STATE TO THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND OVER A FIVE-YEAR PERIOD; TO AMEND SECTION 56-3-910, AS AMENDED, RELATING TO THE DISPOSITION OF CERTAIN MOTOR VEHICLE REGISTRATION AND LICENSING FEES, SO AS TO PROVIDE THAT THESE FEES MUST BE TRANSFERRED FROM THE GENERAL FUND OF THE STATE TO THE DEPARTMENT OF TRANSPORTATION STATE NON-FEDERAL AID HIGHWAY FUND; TO AMEND SECTION 57-11-20, AS AMENDED, RELATING TO REVENUES RECEIVED BY THE DEPARTMENT OF TRANSPORTATION FOR ITS OPERATION, SO AS TO PROVIDE THAT THESE FUNDS MUST BE PLACED IN EITHER THE "STATE HIGHWAY FUND" OR THE "STATE NON-FEDERAL AID HIGHWAY FUND"; AND TO PROVIDE A DECLINING SCHEDULE OF PAYMENTS FOR THE DEPARTMENT OF TRANSPORTATION'S COST OF ADMINISTRATION.

Senator LEATHERMAN asked unanimous consent to withdraw the amendment from the Committee on Finance.

There was no objection and the amendment was withdrawn.

RECOMMITTED TO COMMITTEE ON JUDICIARY
RETAINING ITS PLACE ON THE CALENDAR

S. 796 (Word version) -- Senators McConnell, Thomas, Knotts, Richardson, Bryant and Cromer: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO FINANCE AND TAXATION, BY ADDING SECTION 6A SO AS TO ELIMINATE INCREASES IN FAIR MARKET VALUE OF OWNER-OCCUPIED RESIDENTIAL PROPERTY ATTRIBUTABLE TO A PROPERTY TAX REASSESSMENT IN A COUNTY OCCURRING AFTER DECEMBER 31, 2006, AND TO PROVIDE THAT THIS

Printed Page 2870 . . . . . Thursday, May 19, 2005

EXEMPTION CONTINUES UNTIL THE PROPERTY WITH CERTAIN EXCEPTIONS IS TRANSFERRED OR IMPROVED.

Senator RITCHIE asked unanimous consent to recommit the Resolution to the Committee on Judiciary, retaining its place on the Calendar, with the condition that it be returned to the Calendar not later than January 30, 2006.

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

CARRIED OVER

S. 723 (Word version) -- Senator Campsen: A BILL TO AMEND SECTIONS 12-24-10 AND 12-24-70, CODE OF LAWS OF SOUTH CAROLINA, 1976, BOTH RELATING TO RECORDING OF DEEDS, SO AS TO PROVIDE THAT AN INSTRUMENT ALIENATING REALTY TO THE DISTRIBUTEE OF AN ESTATE IS NOT A DEED REQUIRING A RECORDING FEE OR AN AFFIDAVIT.

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

S. 810 (Word version) -- Senators Martin, J. Verne Smith, Leventis, Hawkins, Fair and Anderson: A BILL TO AMEND SECTION 47-3-750 OF THE 1976 CODE, RELATING TO THE SEIZURE AND IMPOUNDMENT OF A DANGEROUS ANIMAL, TO PROVIDE THAT ANY DANGEROUS ANIMAL THAT ATTACKS A HUMAN BEING OR DOMESTIC ANIMAL MUST BE SEIZED AND IMPOUNDED WHILE ANY PROCEEDING PURSUANT TO THIS ARTICLE IS PENDING.

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

S. 810--CO-SPONSOR ADDED

On motion of Senator RYBERG, with unanimous consent, the name of Senator RYBERG was added as a co-sponsor of S. 810.

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H. 3813 (Word version) -- Rep. Harrell: A BILL TO AMEND SECTIONS 25-1-3235 AND 25-1-3240, BOTH AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE NATIONAL GUARD PENSION FUND AND ELIGIBILITY FOR THE NATIONAL GUARD PENSION AND THE ADMINISTRATION OF PENSIONS FOR MEMBERS OF THE NATIONAL GUARD, SO AS TO ESTABLISH THE STATE BUDGET AND CONTROL BOARD AS TRUSTEE OF THE NATIONAL GUARD PENSION FUND AND PROVIDE FOR THE INVESTMENT OF ITS FUNDS AS THE FUNDS OF OTHER STATE RETIREMENT FUNDS ARE INVESTED, PROVIDE FOR THE ADMINISTRATION OF THOSE PENSIONS BY THE RETIREMENT SYSTEM OF THE STATE BUDGET AND CONTROL BOARD, AND PROVIDE FOR THE EXPENSES OF ADMINISTRATION TO BE PAID FROM EARNINGS.

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

H. 3767 (Word version) -- Rep. Kirsh: A BILL TO AMEND SECTION 12-2-75, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SIGNATORIES TO TAX RETURNS, SO AS TO AUTHORIZE A QUALIFIED TAX PREPARER TO SIGN ELECTRONICALLY; TO AMEND SECTION 12-4-30, RELATING TO COMPOSITION OF THE DEPARTMENT OF REVENUE, SO AS TO DELETE OUT-DATED LANGUAGE; TO AMEND SECTION 12-4-540, RELATING TO APPRAISAL, ASSESSMENT, AND EQUALIZATION OF TAXABLE VALUES OF CORPORATE PROPERTY, SO AS TO MAKE A GRAMMATICAL CHANGE; TO AMEND SECTION 12-6-50, AS AMENDED, RELATING TO SECTIONS OF THE INTERNAL REVENUE CODE NOT ADOPTED BY SOUTH CAROLINA, SO AS TO ADD A CROSS REFERENCE; TO AMEND SECTION 12-6-1170, RELATING TO INCOME DEDUCTION FROM TAXABLE RETIREMENT INCOME, SO AS TO ADD CLARIFYING LANGUAGE; TO AMEND SECTION 12-6-1720, RELATING TO TAXABLE INCOME REPORTABLE BY A NONRESIDENT, SO AS TO INCLUDE LOTTERY AND BINGO WINNINGS; TO AMEND SECTION 12-6-3360, AS AMENDED, RELATING TO THE JOB TAX CREDIT, SO AS TO CORRECT A CROSS REFERENCE; TO AMEND SECTION 12-6-3570, AS AMENDED, RELATING TO TAX CREDITS FOR A MOTION PICTURE PRODUCTION COMPANY, SO AS TO CORRECT A CROSS REFERENCE; TO

Printed Page 2872 . . . . . Thursday, May 19, 2005

AMEND SECTION 12-10-80, AS AMENDED, RELATING TO JOB DEVELOPMENT CREDITS, SO AS TO PROVIDE THAT THE COUNTY DESIGNATION IS EFFECTIVE AS OF THE DATE THE APPLICATION FOR CREDITS IS RECEIVED; TO AMEND SECTION 12-54-55, AS AMENDED, RELATING TO INTEREST ON THE UNDERPAYMENT OF ESTIMATED TAX, SO AS TO INCLUDE SMALL AMOUNT PROVISIONS; TO AMEND SECTION 12-54-70, RELATING TO THE EXTENSION OF TIME FOR FILING TAX RETURNS, SO AS TO CLARIFY A CROSS REFERENCE; TO AMEND SECTION 12-54-110, AS AMENDED, RELATING TO THE POWER OF THE DEPARTMENT OF REVENUE TO SUMMON A PERSON, SO AS TO PROVIDE THAT AN ADMINISTRATIVE LAW JUDGE HOLD A CONTEMPT HEARING ON FAILURE TO COMPLY WITH A SUMMONS; AND TO AMEND SECTION 12-60-90, AS AMENDED, RELATING TO SANCTIONS AGAINST A PERSON AUTHORIZED TO
REPRESENT A TAXPAYER ADMINISTRATIVELY, SO AS TO INCLUDE A MONETARY PENALTY AND MAKE A CLARIFICATION.

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

COMMITTEE AMENDMENT ADOPTED
AMENDED, CARRIED OVER

H. 3768 (Word version) -- Rep. Kirsh: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-21-1085 SO AS TO PROVIDE FOR SALES AND USE TAXES ON BEER AND WINE; BY ADDING SECTION 12-28-1400 SO AS TO REQUIRE THE REPORTING THE DEPARTMENT OF REVENUE REQUIRES BY REGULATION FOR PURPOSES OF THE USER FEE ON MOTOR FUELS AND PROVIDE AN ADDITIONAL CIVIL PENALTY FOR VIOLATORS; BY ADDING SECTION 12-54-123 SO AS TO PROTECT FROM LIABILITY A PERSON WHO SURRENDERS THE PROPERTY OF ANOTHER LEVIED ON BY THE DEPARTMENT OF REVENUE; BY ADDING CHAPTER 55 TO TITLE 12, ENACTING THE OVERDUE DEBT COLLECTION ACT AUTHORIZING THE SOUTH CAROLINA DEPARTMENT OF REVENUE TO IMPOSE A COLLECTION ASSISTANCE FEE ON CERTAIN OVERDUE TAX DEBTS EQUAL TO TWENTY PERCENT OF THE OVERDUE AMOUNT AND TO ALLOW THE DEPARTMENT TO RETAIN A PORTION OF THE COLLECTION ASSISTANCE FEE FOR ITS OPERATION; BY

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ADDING SECTION 61-4-725 SO AS TO ALLOW A LICENSED WINERY TO SELL, DELIVER, AND PERMIT ON-PREMISES CONSUMPTION ON SUNDAYS IN JURISDICTIONS WHERE MINIBOTTLE SALES ARE ALLOWED ON SUNDAYS; TO AMEND SECTION 4-29-67, AS AMENDED, RELATING TO THE FEE IN LIEU OF PROPERTY TAX, SO AS TO DELETE THE NET PERCENT VALUE METHOD OF CALCULATING ANNUAL FEE PAYMENTS; TO AMEND SECTION 6-1-320, AS AMENDED, RELATING TO THE LIMITS ON ANNUAL INCREASES IN LOCAL GOVERNMENT AND SCHOOL DISTRICT PROPERTY TAX MILLAGE, SO AS TO CLARIFY THE METHOD OF CALCULATING THE ALLOWED CONSUMER PRICE INDEX INCREASE IN THE MILLAGE RATE; TO AMEND SECTIONS 12-6-40 AND 12-6-50, BOTH AS AMENDED, RELATING TO DEFINITIONS AND CONFORMITY PROVISIONS FOR PURPOSES OF THE SOUTH CAROLINA INCOME TAX ACT, SO AS TO UPDATE THE REFERENCE DATE BY WHICH THIS STATE ADOPTS VARIOUS PROVISIONS OF THE INTERNAL REVENUE CODE OF 1986 AND CLARIFY THOSE PROVISIONS NOT ADOPTED; TO AMEND SECTIONS 12-6-1110 AND 12-6-1130, RELATING TO CALCULATIONS OF INCOME, SO AS TO PROVIDE FOR CALCULATIONS WITHOUT SOME OF THE DEDUCTIONS ALLOWED BY THE INTERNAL REVENUE CODE; TO AMEND SECTION 12-6-1140, AS AMENDED, RELATING TO DEDUCTIONS FROM SOUTH CAROLINA INDIVIDUAL TAXABLE INCOME FOR PURPOSES OF THE STATE INCOME TAX, SO AS TO DELETE AN OBSOLETE DEDUCTION RELATING TO MEDICAL INSURANCE PREMIUMS; TO AMEND SECTION 12-6-2220, RELATING TO ALLOCATION AND APPORTIONMENT FOR PURPOSES OF THE STATE INCOME TAX, SO AS TO PROVIDE FOR THE ALLOCATION OF DIVIDENDS; TO AMEND SECTION 12-6-3360, AS AMENDED, RELATING TO THE TARGETED JOBS TAX CREDIT, SO AS TO REVISE THE DEFINITION OF "NEW JOB"; TO AMEND SECTION 12-6-3365, AS AMENDED, RELATING TO THE CORPORATE INCOME TAX MORATORIUM FOR JOB CREATION, SO AS TO CLARIFY THE APPLICATION OF THE MORATORIUM TO INSURANCE PREMIUM TAXES; TO AMEND SECTION 12-6-3480, RELATING TO TAX CREDITS, SO AS TO FURTHER PROVIDE THE MANNER IN WHICH CREDITS ARE ALLOWED AND MAY BE CLAIMED; TO AMEND SECTION

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12-6-4910, AS AMENDED, RELATING TO THOSE REQUIRED TO FILE INCOME TAX RETURNS, SO AS TO PROVIDE FOR THOSE NONRESIDENTS REQUIRED TO FILE IN THIS STATE; TO AMEND SECTIONS 12-6-5020, AS AMENDED, AND 12-6-5030, RELATING TO THE FILING OF CONSOLIDATED CORPORATE INCOME TAX RETURNS AND COMPOSITE INDIVIDUAL INCOME TAX RETURNS, SO AS TO REQUIRE THE DETERMINATION OF CREDITS ON A CONSOLIDATED BASIS AND FURTHER PROVIDE FOR COMPOSITE RETURNS; TO AMEND SECTION 12-8-520 RELATING TO STATE INCOME TAX WITHHOLDING, SO AS TO PROVIDE FOR THE WITHHOLDING OF PARTNERSHIP AND SUBCHAPTER "S" CORPORATION INCOME OF NONRESIDENTS; TO AMEND SECTION 12-8-1520, RELATING TO STATE INCOME TAX WITHHOLDING, SO AS TO PROVIDE ADDITIONAL REQUIREMENTS FOR WITHHOLDING AGENTS; TO AMEND SECTION 12-10-105, RELATING TO ANNUAL FEES FOR JOB DEVELOPMENT CREDITS FOR PURPOSES OF THE ENTERPRISE ZONE ACT OF 1995, SO AS TO EXTEND THESE FEES TO JOB RETRAINING CREDITS IN EXCESS OF TEN THOUSAND DOLLARS AND PROVIDE FOR THE COLLECTION OF THESE FEES; TO AMEND SECTION 12-20-105, AS AMENDED, RELATING TO TAX CREDITS FOR PURPOSES OF THE CORPORATE LICENSE TAX, SO AS TO CLARIFY THE APPLICATION OF THESE CREDITS; TO AMEND SECTION 12-28-740, RELATING TO EXEMPTIONS FROM THE MOTOR FUELS USER FEE, SO AS TO DELETE A REFERENCE TO A CREDIT; TO AMEND SECTIONS 12-21-1090 AND 12-21-6550, RELATING TO LICENSE TAXES, SO AS TO PROVIDE FOR THE PERMISSIVE PROMULGATION OF REGULATIONS AND FURTHER PROVIDE FOR THE APPLICATIONS REQUIRED PURSUANT TO THE TOURISM INFRASTRUCTURE ADMISSIONS TAX ACT; TO AMEND SECTION 12-28-1730, AS AMENDED, RELATING TO PENALTIES FOR PURPOSES OF THE MOTOR FUELS TAX, SO AS TO DELETE A CIVIL PENALTY; TO AMEND SECTION 12-36-530, RELATING TO THE REQUIREMENT FOR THE RETURN OF A RETAIL LICENSE WHEN A BUSINESS CLOSES OR IS SOLD, SO AS TO ELIMINATE THE REQUIREMENT THAT THE TAX IS DUE AT THE TIME OF SALE AND CONSTITUTES A LIEN ON THE PROPERTY IN THE HANDS OF THE PURCHASER; TO AMEND SECTION 12-36-1310, AS AMENDED,

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RELATING TO THE SOUTH CAROLINA SALES AND USE TAX ACT, SO AS TO FURTHER PROVIDE FOR THE APPLICATION OF SALES TAX TO TELECOMMUNICATIONS SERVICES; TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO SALES AND USE TAX EXEMPTIONS, SO AS TO EXEMPT PRESCRIPTIONS AND OVER-THE-COUNTER MEDICINES AND MEDICAL SUPPLIES SOLD TO A FREE CLINIC; TO AMEND SECTION 12-36-2510, RELATING TO THE SOUTH CAROLINA SALES AND USE TAX ACT, SO AS TO PROVIDE FURTHER FOR THE ISSUE OF CERTIFICATES BY THE DEPARTMENT OF REVENUE FOR DIRECT PAY AND EXEMPTIONS AND PROVIDE FOR MORE EFFICIENT ADMINISTRATION OF SALES TAXES AND SALES TAX EXEMPTIONS; TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO DELETE OBSOLETE REFERENCES IN EXISTING EXEMPTIONS; TO AMEND SECTION 12-37-230, RELATING TO SERVICE CONTRACTS WITH NONPROFIT HOUSING CORPORATIONS, SO AS TO ALLOW A COUNTY OR MUNICIPALITY TO CHARGE REASONABLE FEES FOR SERVICES NOT TO EXCEED TAXES THAT WOULD OTHERWISE BE DUE ON THE PROPERTY; TO AMEND SECTION 12-44-50, AS AMENDED, RELATING TO THE "FEE IN LIEU OF TAX SIMPLIFICATION ACT OF 1997", SO AS TO REVISE THE ELIGIBILITY TO USE THE NET PERCENT VALUE METHOD OF CALCULATING THE ANNUAL FEE PAYMENT; TO AMEND SECTIONS 12-54-42 AND 12-54-43, AS AMENDED, RELATING TO THE UNIFORM METHOD OF COLLECTION AND ENFORCEMENT OF STATE LEVIED TAXES, SO AS TO CLARIFY THE APPLICATION OF PENALTIES FOR FAILING TO PROVIDE WITHHOLDING STATEMENTS, AND CLARIFY AND REVISE THE APPLICATION OF CIVIL PENALTIES FOR FILING GROUNDLESS RETURNS OR FOR MISUSE OF A SALES TAX CERTIFICATE; TO AMEND SECTION 12-54-90, RELATING TO THE COLLECTION AND ENFORCEMENT OF STATE TAXES, SO AS TO ALLOW THE DEPARTMENT OF REVENUE TO REFUSE TO ISSUE A LICENSE TO A TAXPAYER IN VIOLATION; TO AMEND SECTIONS 12-54-210 AND 12-54-240, AS AMENDED, RELATING TO THE COLLECTION AND ENFORCEMENT OF STATE TAXES, SO AS TO INCREASE THE PENALTY FOR FAILURE TO KEEP RECORDS, FILE RETURNS, AND COMPLY WITH REGULATIONS, UPDATE REFERENCES RELATING TO

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THE CONFIDENTIALITY OF RETURNS, AND DELETE AN EXEMPTION TO THE CONFIDENTIALITY REQUIREMENTS FOR RECORDS SUBPOENAED BY A FEDERAL GRAND JURY; TO AMEND SECTION 12-58-185, AS AMENDED, RELATING TO THE TAXPAYERS' BILL OF RIGHTS, SO AS TO CLARIFY AND EXTEND THE APPLICATION OF HARDSHIP EXTENSIONS TO PAY; TO AMEND SECTIONS 12-60-420 AND 12-60-490, BOTH AS AMENDED, RELATING TO THE REVENUES PROCEDURE ACT, SO AS TO PROVIDE THAT THE APPLICATION OF A DIVISION DECISION OR A DETERMINATION OF DEFICIENCY APPLIES TO LOCAL TAXES ADMINISTERED BY THE DEPARTMENT OF REVENUE AND REQUIRE THE NOTICE TO PROVIDE THAT FAILURE TO FILE A PROTEST RESULTS IN A DECISION BECOMING FINAL AND TO PROVIDE, FURTHER, FOR SETOFFS AGAINST TAX REFUNDS; TO AMEND SECTION 61-4-747, RELATING TO REGULATION OF WINE, SO AS TO REQUIRE OUT-OF-STATE WINE SHIPPERS TO PAY SALES AND EXCISE TAXES ON WINE SHIPPED TO RESIDENTS OF THIS STATE BY JANUARY TWENTIETH OF EACH YEAR FOR THE PRECEDING YEAR; BY ADDING SECTION 33-14-420 SO AS TO FURTHER PROVIDE FOR CLAIMANTS AGAINST FUNDS OF A DISSOLVED CORPORATION; TO REPEAL SECTION 12-37-240, RELATING TO PAYMENTS IN LIEU OF TAXES BY EXEMPT NONPROFIT HOUSING CORPORATIONS AND SECTION 12-37-290, RELATING TO AN OBSOLETE HOMESTEAD EXEMPTION PROVISION.

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

The Committee of Finance proposed the following amendment (3768R001.HKL), which was adopted:

Amend the bill, as and if amended, page 10, by striking lines 32 - 35 and inserting:

/ ~~(14)~~(16) Sections 2001 through 7655, 7801 through 7871, and 8001 through 9602, except for ~~Section 6015~~ Sections 6015 and 6701, and except for Sections 6654 and 6655 which are adopted as provided in Section 12-6-3910." /

Amend the bill further, as and if amended, page 11 by striking lines 15 - 20 and inserting:

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/ "(2) The deduction for taxes permitted by Internal Revenue Code Section 164 is computed in the same manner as provided in Section 164 except there is no deduction for state and local income taxes, or state and local franchise taxes measured by net income, ~~or any~~ other income taxes, or ~~any~~ taxes measured ~~by or~~ with respect to net income. In addition, if a taxpayer elects, pursuant to Section 164, to deduct state and local sales taxes instead of state and local income taxes, the taxpayer may not deduct state and local sales and use taxes.

This modification is limited for individual taxpayers to the excess of itemized deductions over the standard deduction that would be allowed if the taxpayer had used the standard deduction for federal income tax purposes." /

Amend the bill further, as and if amended, page 18 by striking lines 3 - 4 and inserting:

/ (1) improvements to both public or private water and sewer systems; /

Amend the bill further, as and if amended, page 29, by adding appropriately numbered SECTIONS after line 28:

/ SECTION ______. Notwithstanding the ratification of another act during the 2004-2005 Session of the General Assembly affecting the sections of the 1976 Code, amended in Sections 7, 8, 9, and 10 of this act, the ratification of this act is deemed to be the last action of the General Assembly regarding those code sections.

SECTION _____. A. Section 12-6-1130 of the 1976 Code is amended by adding:

"(12) The deduction for charitable contributions allowed by Section 170 of the Internal Revenue code is determined in the same manner as provided in Section 170 of the Code except that no deduction is allowed unless, in addition to the requirements of Section 170 of the Internal Revenue Code, the contribution also meets the requirements of Section 12-6-5590."

B. Section 12-6-3515(B)(1) of the 1976 Code is amended to read:

"(B)(1) For purposes of this section:

(a) 'Qualified conservation contribution' and a 'qualified real property interest' are defined as provided in Internal Revenue Code Section 170(h);

(b) 'Gift of land for conservation' means a charitable contribution of fee simple title to real property conveyed for conservation purposes as defined in Internal Revenue Code Section 170(h)(4)(A) to a qualified conservation organization as described in Internal Revenue Code Section 170(h)(3).; and

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(c) No credit is allowed pursuant to this section unless the contribution meets the requirements of Section 170 of the Internal Revenue Code, this section, and Section 12-6-5590."

C. Subsections 12-43-232(3)(c) and 12-43-232(3)(d) of the 1976 Code are amended to read:

"(c) Real property idle under a federal or state land retirement program or property idle pursuant to accepted agricultural practices is agricultural real property if the property otherwise would have qualified as ~~such~~ agricultural real property subject to satisfactory proof to the assessor.

(d) Unimproved real property subject to a perpetual conservation easement as provided in Chapter 8 of Title 27 ~~must be classified as~~ is agricultural real property if the property otherwise would have qualified as agricultural real property subject to satisfactory proof to the assessor."

D. Article 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-5590. (A) No credit under Section 12-6-3515 or deduction under Section 170 of the Internal Revenue Code and Section 12-6-1130(12) shall be allowed for a contribution unless the donor has the donative intent required by Section 170 of the Internal Revenue Code and the regulations and cases interpreting Section 170 of the Internal Revenue Code.

(B) In addition to the donative intent required by Section 170 of the Internal Revenue Code, no credit under Section 12-6-3515 or deduction under Section 170 of the Internal Revenue Code and Section 1-6-1130(12) shall be allowed for any non-cash charitable contribution in the claimed amount of $100,000.00 or more unless the donor has the requisite donative intent required by this section.

(C) The requisite donative intent includes the requirement that the donor be motivated by detached and disinterested generosity benefiting a charitable purpose rather than expected economic benefit.

(D) A non-cash charitable contribution by a donor given to comply with any state or federal environmental or other regulatory requirement; for the purpose of obtaining road, water, or sewer services; or in conjunction with obtaining a grant, subdivision, building, zoning, environmental, mitigation, or similar permit or approval from any government, shall be deemed not to have the requisite donative intent absent extraordinary circumstances.

(E) A contribution of an otherwise 'qualified contribution contribution' as defined in Section 170(h) of the Internal Revenue Code shall be deemed not to have the requisite donative intent if the

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underlying property is used for, or associated with, the playing of golf, or is planned to be so used or associated.

(F) The department shall examine the substance, rather than merely the form of the contribution and related and surrounding transactions, and my use the step transaction, economic reality, quid pro quo, personal benefit, and other judicially developed doctrines in determining whether the requisite donative intent is present."

SECTION _____. A. Section 12-44-30(7) of the 1976 Code is amended by adding:

"(e) that satisfies the requirements of Section 11-41-30(2)(a), and for which the Secretary of Commerce has delivered certification pursuant to Section 11-41-70(2)(a)."

B. Section 4-12-30(D)(4)(a) of the 1976 Code is amended by adding:

"(v) in the case of a project that satisfies the requirements of Section 11-41-30(2)(a), and for which the Secretary of Commerce has delivered certification pursuant to Section 11-41-70(2)(a)."

C. Section 4-29-67(D)(4)(a) of the 1976 Code is amended by adding:

"(v) in the case of a project that satisfies the requirements of Section 11-41-30(2)(a), and for which the Secretary of Commerce has delivered certification pursuant to Section 11-41-70(2)(a)."

SECTION ____. Article 1, Chapter 37, Title 12 of the 1976 Code is amended by adding:

"Section 12-37-135. A county governing body may require a business registration throughout the entire county area and may impose an administrative fee not to exceed fifteen dollars. The fee is an administrative fee and must not be based upon business income. The business registration authorized by this section must be administered and enforced in the same manner as the business-license tax described in Section 4-9-30(12), but must not be converted into a business-license tax as described in that provision. The business registration administrative fee may be billed on any property tax bill and is deemed to be property tax for the purposes of collection if so billed. This registration, if adopted, is in lieu of any business license which is authorized pursuant to Section 4-9-30(12)."

SECTION ____. Article 5, Chapter 37, Title 12 of the 1976 Code is amended by adding:

"Section 12-37-712. In addition to any other provisions of law subjecting boats and boat motors to property tax in this State:

(1) A boat, including its motor if separately taxed, used in interstate commerce having a tax situs in this State and at least one other state is subject to property tax in this State. The value of such a

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boat must be determined based on the fair market value of the boat multiplied by a fraction representing the number of days present in this State. The fraction is determined by dividing the number of days the boat was present in this State by three hundred and sixty-five days. A boat used in interstate commerce must be physically present in this State for thirty days in the aggregate in a property tax year to become subject to ad valorem taxation.

(2) A boat, including its motor if the motor is separately taxed, which is not currently taxed in this State and is not used exclusively in interstate commerce, is subject to property tax in this State if it is present within this State for sixty consecutive days or on ninety days in the aggregate in a property tax year. Upon written request by a tax official, the owner must provide documentation or logs relating to the whereabouts of the boat in question. Failure to produce requested documents creates a rebuttable presumption that the boat in question is taxable within this State."

SECTION ____. Chapter 45, Title 12 of the 1976 Code is amended by adding:

"Section 12-45-430. A county treasurer may not issue a tax receipt to a taxpayer unless the taxes, any applicable penalties and costs, and all other charges included on the tax bill have been paid in full."

SECTION ____. Section 12-37-2650 of the 1976 Code is amended to read:

"Section 12-37-2650. The auditor shall prepare a tax notice of all vehicles owned by the same person and licensed at the same time for each tax year within the two-year licensing period. A notice must describe the motor vehicle by name, model, and identification number. The notice must set forth the assessed value of the vehicle, the millage, the taxes due on each vehicle, and the license period or tax year. The notice must be delivered to the county treasurer who must collect or receive payment of the taxes. One copy of the notice must be in the form of a bill or statement for the taxes due on the motor vehicle and, when practical, the treasurer shall mail that copy to the owner or person having control of the vehicle. When the tax is and all other charges included on the tax bill have been paid, the treasurer shall issue the taxpayer ~~two copies of the~~ a paid receipt. ~~One~~ The receipt or a copy may be delivered by the taxpayer to the Department of Motor Vehicles with the application for the motor vehicle registration. A ~~copy~~ record of the payment of the tax must be retained by the treasurer. The auditor shall maintain a separate duplicate for motor vehicles. No registration may be issued by the Department of Motor Vehicles unless the

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application is accompanied by the receipt, a copy of the notification required by Section 12-37-2610 or notice from the county treasurer, by other means satisfactory to the Department of Motor Vehicles, of payment of the tax. Motor vehicles registered under the International Registration Plan may pay ad valorem property taxes on a semiannual basis, and a proportional receipt must be issued by the treasurer subject to penalties in Section 12-37-2730. The treasurer, tax collector, or other official charged with the collection of ad valorem property taxes in each county may delegate the collection of motor vehicle taxes to banks or banking institutions, if each institution assigns, hypothecates, or pledges to the county, as security for the collection, federal funds or federal, state, or municipal securities in an amount adequate to prevent any loss to the county from any cause. Each institution shall remit the taxes collected daily to the county official charged with the collections. The receipt given to the taxpayer, in addition to the information required in this section and by Section 12-45-70, must contain the name and office of the treasurer or tax collector of the county and must also show the name of the banking institution to which payment was made.

The county official charged with the collection of taxes shall send a list of the institutions collecting the taxes to the Department of Motor Vehicles. Each institution shall certify to the Department of Motor Vehicles that the taxes have been paid, and the Department of Motor Vehicles is authorized to accept certification in lieu of the tax receipt given to the taxpayer if certification contains information required by this section.

Tax bills (notices) for county assessed personal property valued in accordance with applicable Department of Revenue regulations must include notification of the taxpayer's appeal rights, to include a minimum amount of information of how the taxpayer should file his appeal, to whom, and within what time period."

SECTION ____. Section 12-37-2730 of the 1976 Code is amended to read:

"Section 12-37-2730. (A) It is unlawful for ~~any~~ a person to use the treasurer's receipt to obtain a motor vehicle license ~~plates~~ plate unless all municipal personal property taxes due in the county of his residence on ~~any vehicles~~ a vehicle now or previously owned by the applicant have been paid. ~~Any~~ A person who knowingly violates the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than two hundred dollars. Each day's violation constitutes a separate offense.

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The above penalty is in addition to any other penalties prescribed by law for failure to pay municipal taxes.

~~The verbatim text of the first paragraph of this section must be printed or stamped upon the treasurer's receipt.~~ When a municipality contracts for the collection of its vehicle tax, a receipt for the payment of the taxes must not be issued unless both the county and municipal tax and all other charges included on the tax bill have been paid. The owner of ~~any~~ a motor vehicle registered under the International Reciprocity Plan who opts to pay semiannually and fails to pay semiannual payments as provided in this chapter is not permitted to relicense the vehicle until all taxes are paid and shall forfeit any further privilege to pay semiannually.

(B) To enforce the collection of personal property taxes and vehicle registration laws of this State, a code-enforcement officer may issue an ordinance summons to a person the officer believes has failed to remit property taxes to the appropriate taxing entity or a person he believes has failed to comply fully with the vehicle registration laws of this State. However, a code-enforcement officer may not stop a vehicle that is in motion to issue an ordinance summons pursuant to this section. A fine imposed pursuant to this section may not exceed the criminal jurisdiction of the magistrates' court. A magistrate shall dismiss an ordinance summons issued pursuant to this subsection upon a showing by the person summoned of proper registration and the payment of current and delinquent property taxes before the court hearing date set in the summons."

SECTION ____. Section 12-43-220(c) of the 1976 Code is amended by adding an appropriately numbered subitem at the end to read:

"( ) Notwithstanding any other provision of law, the owner-occupant of a legal residence is not disqualified from receiving the four percent assessment ratio allowed by this item if the taxpayer's residence meets the requirements of Internal Revenue Code Section 280A(g) as defined in Section 12-6-40(A) and the taxpayer otherwise is eligible to receive the four percent assessment ratio."

SECTION ____. Section 12-49-950 of the 1976 Code is amended to read:

"Section 12-49-950. If, on the sale of such personal property, there is no bid for as much as the tax and costs then due on the delinquent tax execution, ~~such~~ the personal property ~~shall~~ must be bid in by the Forfeited Land Commission of the county for the amount ~~of the delinquent tax and the accrued costs~~ equal to the amount of all unpaid

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property taxes, assessments, and charges billed on the property tax bill, and all costs which may be incurred by a taxing entity as a result of the tax delinquency including taxes levied for the year in which the redemption period begins. An assessment for purposes of this section includes, but is not limited to, amounts owed a special taxing district created pursuant to Section 4-9-30, and a district created pursuant to Chapter 19 of this title and amounts owed pursuant to Chapter 15 of Title 6."

SECTION ____. Section 12-51-55 of the 1976 Code is amended to read:

"Section 12-51-55. The officer charged with the duty to sell real property and mobile or manufactured housing for nonpayment of ad valorem property taxes shall submit a bid on behalf of the Forfeited Land Commission equal to the amount of all unpaid property taxes, penalties, assessments, including, but not limited to, assessments owed to a special taxing district established pursuant to Section 4-9-30, Chapter 19 of Title 4, or an assessment district established pursuant to Chapter 15 of Title 6, and costs including taxes levied for the year in which the redemption period begins. The Forfeited Land Commission is not required to bid on property known or reasonably suspected to be contaminated. If the contamination becomes known after the bid or while the commission holds the title, the title is voidable at the election of the commission. If the property is not redeemed, the excess above the amount of taxes, penalties, assessments, charges, and costs for the year in which the property was sold must be applied first to the taxes becoming due during the redemption period."

SECTION ____. Section 12-51-130 of the 1976 Code is amended to read:

"Section 12-51-130. Upon failure of the defaulting taxpayer, a grantee from the owner, a mortgagee, a judgment creditor, or a lessee of the property to redeem realty within the time period allowed for redemption, the person officially charged with the collection of delinquent taxes, within thirty days or as soon after that as possible, shall make a tax title to the purchaser or the purchaser's assignee. Delivery of the tax title to the clerk of court or register of deeds is considered 'putting the purchaser, or assignee, in possession'. The tax title must include, among other things, the name of the defaulting taxpayer, the name of any grantee of record of the property, the date of execution, the date the realty was posted and by whom, and the dates each certified notice was mailed to the party or parties of interest, to whom mailed and whether or not received by the addressee. The

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successful purchaser, or assignee, is responsible ~~in the amount of fifteen dollars~~ for the actual cost of preparing the tax title plus documentary stamps necessary to be affixed and recording fees. The successful purchaser, or assignee, shall pay the amounts to the person officially charged with the collection of delinquent taxes before delivery of the tax title to the clerk of court or register of deeds and, upon payment, the person officially charged with the collection of delinquent taxes is responsible for promptly transmitting the tax title to the clerk of court or register of deeds for recording and remitting the recording fee and documentary stamps cost. If the tax sale of an item produced more cash than the full amount due in taxes, assessments, penalties, and costs, the overage belongs to the owner of record immediately before the end of the redemption period to be claimed or assigned according to law. These sums are payable ninety days after execution of the deed unless a judicial action is instituted during that time by another claimant. If neither claimed nor assigned within five years of date of public auction tax sale, the overage shall escheat to the general fund of the governing body. Before the escheat date, unclaimed overages must be kept in a separate account and must be invested so as not to be idle and the governing body of the political subdivision is entitled to the earnings for keeping the overage. On escheat date the overage must be transferred to the general funds of the governing body."

SECTION ____. Section 12-54-25(C)(3) of the 1976 Code is amended to read:

"(3) Interest on an overpayment is not allowed pursuant to this subsection if it is refunded:

(a) within seventy-five days after the last day prescribed for filing the tax return, without regard to an extension of time for filing, or within seventy-five days after the last day prescribed for paying the tax if no return is required;

(b) within seventy-five days after the return is filed, in the case of a return filed after the last date; or

(c) within seventy-five days after the taxpayer files a claim for a credit or refund for the overpayment of tax for the period between the filing of the claim to the payment of the refund; or

(d) within seventy-five days after the county has received notice from the Department of Revenue that the taxpayer is due a credit or refund for the overpayment of property taxes."

SECTION ____. Section 12-54-240(B)(12) of the 1976 Code is amended to read:

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"(12) disclosure to ~~any~~ a state agency, county auditor, or county assessor of whether a resident or nonresident tax return was filed by ~~any~~ a particular taxpayer, whether the return is joint or individual, the name of any taxpayer filing jointly with the taxpayer, and what county code of residence is contained on the return." /

Renumber sections to conform.

Amend title to conform.

Senator ALEXANDER explained the committee amendment.

The committee amendment was adopted.

Senator RICHARDSON proposed the following amendment (3768R003.SHR), which was adopted:

Amend the bill, as and if amended, page 29, line 28 by adding an appropriately numbered SECTION:

/ SECTION _____. Chapter 37, Title 12 of the 1976 Code is amended by adding:

"Section 12-37-712. A marina must provide immediate access to its business records and premises to city, county, and state tax authority employees for the purpose of making a property tax assessment. For the purposes of this section, 'marina' means a facility that provides mooring or dry storage for watercraft on a leased or rental basis. /

Renumber sections to conform.

Amend title to conform.

Senator RICHARDSON explained the amendment.

The amendment was adopted.

On motion of Senator ALEXANDER, with unanimous consent, the Bill was carried over, as amended.

COMMITTEE AMENDMENT ADOPTED
CARRIED OVER

H. 3325 (Word version) -- Rep. Harrison: A BILL TO AMEND SECTION 61-4-1115, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO AN AGREEMENT BETWEEN AN IMPORTER AND A FOREIGN BREWER, SO AS TO CLARIFY THAT A FOREIGN BREWER INCLUDES ITS SUCCESSOR OR ASSIGNEE.

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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 (JUD3325.001), which was adopted:

Amend the bill, as and if amended, page 1, by striking line 25 and inserting:

/ brewer located outside of the United States, the importer is ~~deemed~~ considered to be /

Renumber sections to conform.

Amend title to conform.

Senator RITCHIE explained the committee amendment.

The committee amendment was adopted.

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

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

MOTION ADOPTED

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

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

HOUSE AMENDMENTS AMENDED
RETURNED TO THE HOUSE WITH AMENDMENTS

S. 618 (Word version) -- Senators Alexander, Setzler, Short, Verdin and Knotts: A BILL TO ENACT THE STATE RETIREMENT SYSTEM PRESERVATION AND INVESTMENT REFORM ACT TO REQUIRE A RETIRED MEMBER OF THE SOUTH CAROLINA RETIREMENT SYSTEM WHO RETURNS TO COVERED EMPLOYMENT TO PAY THE EMPLOYEE CONTRIBUTION FOR ACTIVE MEMBERS, TO ESTABLISH TWO CLASSES OF

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SERVICE FOR PERSONS BECOMING SOUTH CAROLINA RETIREMENT SYSTEM MEMBERS AFTER 2005 AND PROVIDE A RETIREMENT OPTION FOR THESE PERSONS AT ANY AGE WITH TWENTY-EIGHT YEARS OF CREDITABLE SERVICE WITH A PENALTY FACTOR FOR THEIR EARLY RETIREMENT, TO MAKE VARIOUS AMENDMENTS TO THE TERI PROGRAM, AND TO ESTABLISH THE RETIREMENT SYSTEM INVESTMENT COMMISSION AND PROVIDE FOR ITS MEMBERS, POWERS, AND DUTIES AS TRUSTEE OF THE ASSETS AND INVESTOR OF THE FUNDS OF THE STATE RETIREMENT SYSTEM. (ABBREVIATED TITLE)

The House returned the Bill with amendments.

Senator ALEXANDER proposed the following amendment (GGS\22220HTC05), which was adopted:

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

/ PART I

Citation

SECTION 1. This act may be cited as the State Retirement System Preservation and Investment Reform Act.

PART II

South Carolina Retirement System

Employee Contributions - TERI Adjustments

SECTION 1. Section 9-1-1790 of the 1976 Code, as last amended by Act 25 of 2001, is further amended by adding a new subsection at the end to read:

"(C) A retired member shall pay to the system the employee contribution for active members if an employer participating in the system employs the retired member. The retired member does not accrue additional service credit in the system by reason of the contributions required pursuant to this subsection and subsection (B) of this section."

SECTION 2. A. Section 8-11-620(A) of the 1976 Code, as amended by Act 356 of 2002, is further amended to read:

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

Printed Page 2888 . . . . . Thursday, May 19, 2005

not to exceed forty-five working days, except as provided ~~for~~ in Section 8-11-610.

(2) Upon retirement from state employment ~~or upon the death of an employee~~ if the member does not elect to participate in the Teacher and Employee Retention Incentive Program, a lump-sum ~~payment will be made~~ must be paid for unused leave, not to exceed forty-five days, unless a higher maximum is approved ~~under the provisions of~~ pursuant to Section 8-11-610, and without regard to the earned leave taken during the calendar year in which the employee retires.

(3) Upon retirement from state employment, if the employee participates in the Teacher and Employee Retention Incentive Program, the employee shall not receive payment for unused annual leave until the employee terminates from state employment and ends participation in the Teacher and Employee Retention Incentive Program. Upon termination of state employment and participation in the Teacher and Employee Retention Incentive Program, a lump-sum must be paid for unused leave, not to exceed forty-five days, unless a higher maximum is approved pursuant to Section 8-11-610, and without regard to the earned leave taken during the calendar year in which the employee retires."

B. Section 9-1-2210 of the 1976 Code, as added by Act 1 of 2001, is amended to read:

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

(B) After June 30, 2005, and notwithstanding the provisions of Section 9-1-10(4), a payment for unused annual leave is not included in calculating a member's deferred program benefit during the program period. The member's average final compensation for the purpose of calculating the deferred program retirement benefit must be solely the average of the member's highest twelve consecutive quarters of

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earnable compensation at the time the member enters the program. During the specified program period, receipt of the member's normal retirement benefit is deferred. The member's deferred monthly program benefit must be placed in the system's trust fund on behalf of the member. No interest is paid on the member's deferred monthly program benefit placed in the system's trust fund during the specified program period.

(C) During the specified program period, the employer shall pay to the system the employer contribution for active members prescribed by law with respect to any program participant it employs, regardless of whether the program participant is a full-time or part-time employee, or a temporary or permanent employee. The program participant shall pay to the system the employee contribution for active members. The program participant does not accrue additional service credit in the system. If an employer who is obligated to the system pursuant to this subsection fails to pay the amount due, as determined by the system, the amount must be deducted from any funds payable to the employer by the State.

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

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

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

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

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

For members who began participation in the program before July 1, 2005, the member also must receive the previously determined normal retirement benefits based upon the member's average final

Printed Page 2890 . . . . . Thursday, May 19, 2005

compensation and service credit at the time the program period began, plus any applicable cost of living increases declared during the program period. The program participant is thereafter subject to the earnings limitation of Section 9-1-1790.

Upon termination of employment of members who began participation in the program after June 30, 2005, the Retirement Systems shall recalculate the average final compensation of the member to determine the benefit the member receives after participation in the program. The average final compensation calculated at the commencement of the program must be increased by: an amount up to and including forty-five days termination pay for unused annual leave received by the member at termination of employment, divided by three. The member's benefit after participation in the program must be calculated in accordance with Section 9-1-1550, utilizing the recalculated average final compensation determined in this subsection, and the member's service credit, including sick leave, as of the date member began participation in the program, plus any cost of living increases declared during the program period with respect to the amount of the member's deferred program benefit.

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

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

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

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

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

If a program participant who began participation in the program after June 30, 2005, elected a survivor option, then the survivor shall receive a survivor benefit based on a recalculated average final compensation. The average final compensation calculated at the commencement of the program must be increased by an amount up to and including forty-five

Printed Page 2891 . . . . . Thursday, May 19, 2005

days termination pay for unused annual leave received by the member's legal representative at the member's death, divided by three. The survivor benefit must be calculated in accordance with Section 9-1-1550, utilizing the recalculated average final compensation determined in this subsection, and the member's service credit, including sick leave, as of the date the member began participation in the program, plus any cost of living increases declared during the program period with respect to the amount of the member's deferred program benefit.

(H) If a program participant fails to terminate employment with an employer participating in the retirement system within one month after the end of the specified program period, the member must receive the previously determined normal retirement benefits based upon the member's average final compensation and service credit at the time the program began, plus any applicable cost of living increases declared during the program period. The program participant is thereafter subject to the earnings limitation of Section 9-1-1790. The program participant also must receive the balance in the member's program account by selecting one of the following alternatives:

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

~~(2)~~ ~~to the extent permitted under law, a tax sheltered rollover into an eligible plan.~~ (1) A program participant must terminate employment no later than the fifth annual anniversary of the date the member commenced participation in the program.

(2) Notwithstanding Section 9-1-1790 or any other provision of law, a program participant who began TERI participation after June 30, 2005, is ineligible to be employed by an employer covered under this chapter or Chapter 11 of this title except:

(a) a member returning to a position of teacher specialist or principal specialist as provided in Section 59-18-1530;

(b) a certified teacher returning to employment as provided in Section 9-1-1795; or

(c) a teacher who terminates employment during the school year and, with the written approval of the district superintendent, returns to employment to complete the school year.

(I) A member is not eligible to participate in the program if the member has participated previously in and received a benefit under this program or any other state retirement system."

SECTION 3. Section 9-1-1790 (A) of the 1976 Code, as last amended by Act 25 of 2001, is further amended to read:

Printed Page 2892 . . . . . Thursday, May 19, 2005

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

PART III

SCRS28-SCRS30

SECTION 1. Article 5, Chapter 1, Title 9 of the 1976 Code is amended by adding:

"Section 9-1-495. Effective January 1, 2006, there are two classes of service credit that may be earned by SCRS30 participants: Class A Service and Class B Service. SCRS30 participants shall not participate in SCRS under Class I or Class II membership, but rather will earn either Class A Service or Class B Service. SCRS28 participants shall not earn either Class A Service or Class B Service.

The employer contribution rate for all SCRS30 participants is the same as the employer contribution rate for Class II SCRS28 participants.

An SCRS30 participant of the South Carolina Retirement System who began membership in the system after December 31, 2005, within thirty consecutive days after joining the system, shall file with the system an election form designating whether the member will earn Class A Service or Class B Service. The election form described in this section must be prescribed by the system. If a member fails to make the election specified in this section within the period required by this section, the member is considered to have elected to earn Class A Service."

SECTION 2. Article 13, Chapter 1, Title 9 of the 1976 Code is amended by adding:

Printed Page 2893 . . . . . Thursday, May 19, 2005

"Section 9-1-1520. (A) In addition to other types of retirement provided by this chapter, an SCRS30 participant may elect early retirement if the SCRS30 participant:

(1) has five or more years of earned service;

(2) has at least twenty-eight years of creditable service; and

(3) has separated from service.

A member electing early retirement shall apply in the manner provided in Section 9-1-1510.

(B) The benefits for an SCRS30 participant electing early retirement under this section must be calculated in the manner provided in Section 9-1-1550, except that in lieu of any other reduction factor, the SCRS30 participant's early retirement allowance is reduced by twelve percent a year, prorated for periods less than one year, for each year of creditable service less than thirty years.

(C) An SCRS30 participant who elects early retirement under this section is ineligible to receive any cost-of-living increase provided by law to retirees until the earlier of the:

(1) second July first after the date the SCRS30 participant attains age sixty; or

(2) second July first after the date an SCRS30 participant would have thirty years creditable service had he not retired."

SECTION 3. A. Section 9-1-10(18) of the 1976 Code, as last amended by Act 387 of 2000, is further amended to read:

"(18) 'Member' means a teacher or employee included in the membership of the system as provided in Article 5 of this chapter. The term member includes SCRS28 participants and SCRS30 participants."

B. Section 9-1-10 of the 1976 Code, as last amended by Act 77 of 2003, is further amended by adding two new items at the end to read:

"(31) 'SCRS28 participant' means a member of the South Carolina Retirement System who began membership in the system before January 1, 2006, and had contributions on account with the system as of December 31, 2005. However, an active contributing participant in the State Optional Retirement Program as of December 31, 2005, may become an SCRS28 participant in the system if the participant is eligible to join the South Carolina Retirement System pursuant to Section 9-20-40(B) during the open enrollment period from January 1, 2006, through March 1, 2006, and elects to join the system no later than March 1, 2006. If a member of the South Carolina Retirement System who had contributions on account with the system as of December 31, 2005, withdraws those contributions after December 31, 2005, the member is no longer an SCRS28 participant

Printed Page 2894 . . . . . Thursday, May 19, 2005

and upon subsequently rejoining the system, shall join the system as an SCRS30 participant.

(32) 'SCRS30 participant' means a member of the South Carolina Retirement System who began membership in the system after December 31, 2005. However, an active contributing participant in the State Optional Retirement Program as of December 31, 2005, may become an SCRS28 participant of the system if the participant is eligible to join the South Carolina Retirement System under Section 9-20-40(B) during the open enrollment period from January 1, 2006 to March 1, 2006, and elects to join the system no later than March 1, 2006. If a member of the South Carolina Retirement System who had contributions on account with the system as of December 31, 2005, withdraws those contributions after December 31, 2005, the participant is no longer an SCRS28 participant and subsequently upon rejoining the system, shall join the system as an SCRS30 participant."

SECTION 4. The third undesignated paragraph of Section 9-1-1020 of the 1976 Code, as last amended by Act 475 of 1988, is further amended to read:

"The rates of the deductions must be, without regard to a member's coverage under the Social Security Act, as follows:

(a) in the case of Class One ~~members~~ SCRS28 participants, five percent of earnable compensation; ~~and~~

(b) in the case of Class Two ~~members~~ SCRS28 participants and SCRS30 participants earning Class A Service, six percent of earnable compensation; and

(c) in the case of SCRS30 participants earning Class B Service, eight and sixty-six hundredths percent of earnable compensation."

SECTION 5. Section 9-1-1140 of the 1976 Code, as last amended by Act 77 of 2003, is further amended by adding three new subsections at the end to read:

"(N) An active member who is an SCRS30 participant may establish Class A Service for the same types of service, at the same cost, and under the same conditions provided in items (A) through (M) of this section.

(O) An active member who is an SCRS30 participant may establish Class B Service for the same types of service and under the same conditions provided in items (A) through (M) of this section, however, the cost for each type of service purchased as Class B Service under this subsection must be determined by the board, based on the recommendation of the system's actuary.

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(P) An active member who is an SCRS30 participant and is currently earning Class B Service, may convert the member's Class A Service into Class B Service by paying an amount to be determined by the board, based on the recommendation of the system's actuary."

SECTION 6. Section 9-1-1510 of the 1976 Code, as last amended by Act 1 of 2001, is further amended to read:

"Section 9-1-1510. (A) ~~A member~~ An SCRS28 participant may retire upon written application to the system setting forth at what time, no more than ninety days before nor more than six months after the execution and filing of the application, the ~~member~~ SCRS28 participant desires to be retired, if the ~~member~~ SCRS28 participant at the time specified for the member's service retirement has:

(1) five or more years of earned service;

(2) attained the age of sixty years or has twenty-eight or more years of creditable service; and

(3) separated from service.

(B) An SCRS30 participant may retire upon written application to the system setting forth at what time, no more than ninety days before nor more than six months after the execution and filing of the application, the SCRS30 participant desires to be retired, if the SCRS30 participant at the time specified for the member's service retirement has:

(1) five or more years of earned service;

(2) attained the age of sixty years or has thirty or more years of creditable service; and

(3) separated from service.

(C) A member who is an elected official whose annual compensation is less than the earnings limitation pursuant to Section 9-1-1790 and who is otherwise eligible for service retirement may retire for purposes of this section without a break in service."

SECTION 7. Subsections (B) and (C) of Section 9-1-1515 of the 1976 Code, as last amended by Act 1 of 2001, are further amended to read:

"(B) The benefits for a member electing early retirement under this section must be calculated in the manner provided in Section 9-1-1550, except that in lieu of any other reduction factor, the member's early retirement allowance is reduced by four percent a year, prorated for periods less than one year, for each year of creditable service less than twenty-eight for SCRS28 participants and thirty for SCRS30 participants.

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(C) A member who elects early retirement under this section is ineligible to receive any cost-of-living increase provided by law to retirees until the earlier of the:

(1) second July first after the date the member attains age sixty; or

(2) second July first after the date ~~the member~~ an SCRS28 participant would have twenty-eight years creditable service had he not retired~~, whichever is earlier~~ or the date an SCRS30 participant would have thirty years creditable service had he not retired."

SECTION 8. Section 9-1-1550 of the 1976 Code, as last amended by Act 1 of 2001, is further amended to read:

"Section 9-1-1550. (A) Upon retirement from service on or after July 1, 1964, a Class One ~~member~~ SCRS28 participant shall receive a service retirement allowance, which shall consist of:

(1) an employee annuity which shall be the actuarial equivalent of his accumulated contributions at the time of his retirement; and

(2) an employer annuity equal to the employee annuity allowable at the age of sixty-five years or at age of retirement, whichever is less, computed on the basis of contributions made prior to the age of sixty-five years; and

(3) if he has a prior service certificate in full force and effect, an additional employer annuity which must be equal to the employee annuity which would have been provided at age sixty-five or at age of retirement, whichever is less, by twice the contributions which he would have made during his entire period of prior service had the system been in operation and had he contributed thereunder during such entire period.

Upon retirement from service after December 31, 2000, a Class One ~~member~~ SCRS28 participant shall receive a service retirement allowance computed as follows: If the member's service retirement date occurs on or after his sixty-fifth birthday, or after he has completed twenty-eight or more years of creditable service, the allowance must be equal to one and forty-five hundredths percent of his average final compensation multiplied by the number of years of his creditable service.

If the ~~member's~~ SCRS28 participant's service retirement date occurs before his sixty-fifth birthday and before he completes twenty-eight years of creditable service, his service retirement allowance is computed as above, but is reduced by five-twelfths of one percent thereof for each month by which his retirement date precedes the first

Printed Page 2897 . . . . . Thursday, May 19, 2005

day of the month, prorated for periods less than a month, coincident with or next following his sixty-fifth birthday.

Notwithstanding the foregoing provisions, any Class One ~~member~~ SCRS28 participant who retires on or after July 1, 1976, shall receive not less than the benefit provided under the formula in effect before July 1, 1976.

(B) Upon retirement from service after December 31, 2000, a Class Two ~~member~~ SCRS28 participant shall receive a service retirement allowance computed as follows:

(1) If the ~~member~~ SCRS28 participant's service retirement date occurs on or after his sixty-fifth birthday or after he has completed twenty-eight or more years of creditable service, the allowance must be equal to one and eighty-two hundredths percent of his average final compensation, multiplied by the number of years of his creditable service.

(2) If the ~~member's~~ SCRS28 participant's service retirement date occurs before his sixty-fifth birthday and before he completes the twenty-eight years of creditable service, his service retirement allowance is computed as in item (1) above but is reduced by five-twelfths of one percent thereof for each month, prorated for periods less than a month, by which his retirement date precedes the first day of the month coincident with or next following his sixty-fifth birthday.

(3) Notwithstanding the foregoing provisions, a Class Two ~~member~~ SCRS28 participant whose creditable service began before July 1, 1964, shall receive not less than the benefit provided by subsection (A) of this section.

(C) Upon retirement from service after December 31, 2005, an SCRS30 participant shall receive a service retirement allowance computed as follows:

(1) If an SCRS30 participant's service retirement date occurs on or after his sixty-fifth birthday or after he has completed thirty or more years of creditable service, the allowance must be equal to the sum of:

(a) one and eighty-two hundredths percent of his average final compensation, multiplied by the number of years of his Class A Service; and

(b) two and thirty-nine hundredths percent of his average final compensation, multiplied by the number of years of his Class B Service.

(2) If an SCRS30 participant's service retirement date occurs before his sixty-fifth birthday and before he completes the thirty years

Printed Page 2898 . . . . . Thursday, May 19, 2005

of creditable service, his service retirement allowance is computed as in item (1) above but is reduced by five-twelfths of one percent thereof for each month, prorated for periods less than a month, by which his retirement date precedes the first day of the month coincident with or next following his sixty-fifth birthday."

SECTION 9. Section 9-1-1660(A)(3) of the 1976 Code, as last amended by Act 387 of 2000, is further amended to read:

"(3) has either attained the age of sixty years or has accumulated fifteen years or more of creditable service, elect to receive in lieu of the accumulated contributions an allowance for life in the same amount as if the deceased member had retired at the time of the member's death and had named the person as beneficiary under an election of Option B of Section 9-1-1620(A). For purposes of the benefit calculation, ~~a member~~ an SCRS28 participant under age sixty with less than twenty-eight years credit is assumed to be sixty years of age. For purposes of the benefit calculation, an SCRS30 participant under age sixty with less than thirty years credit is assumed to be sixty years of age."

PART IV

Retirement System Investment Commission

SECTION 1. A. Section 9-1-1310 of the 1976 Code is amended to read:

"Section 9-1-1310. (A) The board is the trustee of ~~the funds of~~ the retirement system, as 'retirement system' is defined in Section 9-16-10(8). The Retirement Systems Investment Commission ~~and~~ ~~may~~ shall invest and reinvest the funds of the retirement system as 'retirement system' is defined in Section 9-16-10(8), subject to all the terms, conditions, limitations, and restrictions imposed by Article 7, Chapter 9, Title 11, upon the investment of sinking funds of the State, and, subject to like terms, conditions, and limitation, and restrictions, may hold, purchase, sell, assign, transfer, and dispose of any of the securities and investments in which the funds created in this chapter have been invested, plus the proceeds of these investments and any monies belonging to these funds. Additionally, and without regard to the limitations imposed pursuant to Article 7, Chapter 9, Title 11, the board may invest and reinvest the funds of the system in equity securities of a corporation within the United States that is registered on a national stock exchange as provided in the Securities Exchange Act, 1934, or a successor act, or quoted through the National Association of Securities Dealers Automatic Quoting System, or similar service

Printed Page 2899 . . . . . Thursday, May 19, 2005

Section 16, Article X of the South Carolina Constitution, subsection (B) of this section, and Chapter 16 of this Title.

(B) Except as prohibited by Section 16, Article X of the South Carolina Constitution and Chapter 16 of this Title, the funds of the system may be invested in, including but not limited to, the following:

(1) bonds of this State, other states of the United States, the United States, or any political subdivisions or agency thereof;

(2) banks and savings and loan institutions;

(3) top-rated commercial paper;

(4) funds of funds;

(5) foreign certificates of deposit;

(6) short-term debt;

(7) investment trust securities;

(8) real estate securities;

(9) foreign fixed-income obligations;

(10) futures and options regulated by the United States Securities and Exchange Commission;

(11) private equity;

(12) domestic and foreign group trusts;

(13) investment vehicles of Federal Deposit Insurance;

(14) bonds of foreign countries designated industrialized by the International Monetary Fund;

(15) collateralized mortgage obligations;

(16) World Bank bonds;

(17) debt of the United States or Canadian corporations collateralized at least fifty percent;

(18) equipment trust debt;

(19) purchase money mortgages received for real estate; or

(20) real estate investment trusts.

(C) The funds and assets of the various state retirement systems are not funds of the State, but are instead held in trust as provided in Section 9-16-20."

B. Section 9-1-1340 of the 1976 Code is amended to read:

"Section 9-1-1340. Except as otherwise ~~herein~~ provided in this chapter or in Chapters 8, 9, and 11 of this Title, no member of or person employed by the ~~Board~~ Retirement Systems Investment Commission shall have any direct interest in the gains or profits of any investment made by the ~~Board~~ commission. No ~~Board~~ commission member or employee of the ~~Board~~ commission shall, directly or indirectly, for himself or as an agent in any manner use the funds of the ~~Board~~ commission except to make such current and necessary

Printed Page 2900 . . . . . Thursday, May 19, 2005

payments as are authorized by the board or commission. Nor shall any member or employee of the ~~Board~~ commission become an endorser or surety or in any manner an obligor for ~~moneys~~ monies loaned or borrowed from the ~~Board~~ commission."

C. Sections 9-8-160, 9-9-150, and 9-11-240 of the 1976 Code are repealed.

SECTION 2. Article 1, Chapter 16, Title 9 of the 1976 Code, as added by Act 371 of 1998, is amended to read:

"Article 1

Duties of the Trustee, Fiduciaries, Agents

Section 9-16-10. As used in this chapter, unless a different meaning is plainly required by the context:

(1) 'Assets' means all funds, investments, and similar property of the retirement system.

(2) 'Beneficiary' means a person, other than the participant, who is designated by a participant or by a retirement program to receive a benefit under the program.

(3) 'Board' means the State Budget and Control Board acting as trustee of the retirement system.

(3.5) 'Commission' means the Retirement Systems Investment Commission.

(4) 'Fiduciary' means a person who:

(a) exercises any authority to invest or manage assets of a system;

(b) provides investment advice for a fee or other direct or indirect compensation with respect to assets of a system or has any authority or responsibility to do so; or

(c) ~~is a member of the State Budget and Control Board when it acts as trustee for the retirement system.~~ is a member of the commission; or

(d) is the commission's chief investment officer.

(5) 'Participant' means an individual who is or has been an employee enrolled in a retirement program and who is or may become eligible to receive or is currently receiving a benefit under the program. The term does not include an individual who is no longer an employee of an employer as defined by laws governing the retirement system and who has withdrawn his contributions from the retirement system.

(6) [Reserved] ~~"Panel" means the State Retirement Systems Investment Panel established pursuant to Section 9-16-310.~~

Printed Page 2901 . . . . . Thursday, May 19, 2005

(7) 'Retirement program' means a program of rights and obligations which a retirement system establishes or maintains and which, by its express terms or as a result of surrounding circumstances:

(a) provides retirement benefits to qualifying employees and beneficiaries; or

(b) results in a deferral of income by employees for periods extending to the termination of covered employment or beyond.

(8) 'Retirement system' means the South Carolina Retirement System, Retirement System for Judges and Solicitors, Retirement System for Members of the General Assembly, and Police Officers Retirement System established pursuant to Chapters 1, 8, 9, and 11 of this Title.

(9) 'Trustee' means the State Budget and Control Board.

Section 9-16-20. (A) All assets of a retirement system are held in trust. The ~~trustee~~ commission has the exclusive authority, subject to this chapter and Section 9-1-1310, to invest and manage those assets.

(B) If the retirement system invests in a security issued by an investment company registered under the Investment Company Act of 1940 (15 U.S.C. Section 80a-1, et seq.), the assets of the system include the security, but not assets of the investment company.

Section 9-16-30. (A) The ~~trustee~~ commission may delegate functions that a prudent ~~trustee~~ person acting in a like capacity and familiar with those matters could properly delegate under the circumstances but final authority to invest cannot be delegated.

(B) The ~~trustee~~ commission shall exercise reasonable care, skill, and caution in:

(1) selecting an agent;

(2) establishing the scope and terms of the delegation, consistent with the purposes and terms of the retirement program; and

(3) periodically reviewing the agent's performance and compliance with the terms of the delegation.

(C) In performing a delegated function, an agent owes a duty to the retirement system and to its participants and beneficiaries to comply with the terms of the delegation and, if a fiduciary, to comply with the duties imposed by Section 9-16-40.

(D) A ~~trustee~~ commission member who complies with subsections (A) and (B) is not liable to the retirement system or to its participants or beneficiaries for the decisions or actions of the agent to whom the function was delegated.

Printed Page 2902 . . . . . Thursday, May 19, 2005

(E) By accepting the delegation of a function from the ~~trustee~~ commission, an agent submits to the jurisdiction of the courts of this State.

(F) ~~A trustee~~ The commission may limit the authority of an agent to delegate functions under this section.

Section 9-16-40. A trustee, commission member, or other fiduciary shall discharge duties with respect to a retirement system:

(1) solely in the interest of the retirement systems, participants, and beneficiaries;

(2) for the exclusive purpose of providing benefits to participants and beneficiaries and paying reasonable expenses of administering the system;

(3) with the care, skill, and caution under the circumstances then prevailing which a prudent person acting in a like capacity and familiar with those matters would use in the conduct of an activity of like character and purpose;

(4) impartially, taking into account any differing interests of participants and beneficiaries;

(5) incurring only costs that are appropriate and reasonable; and

(6) in accordance with a good faith interpretation of this chapter.

Section 9-16-50. (A) In investing and managing assets of a retirement system pursuant to Section 9-16-40, the ~~trustee~~ commission:

(1) shall consider among other circumstances:

(a) general economic conditions;

(b) the possible effect of inflation or deflation;

(d) needs for liquidity, regularity of income, and preservation or appreciation of capital; and

(e) the adequacy of funding for the plan based on reasonable actuarial factors;

(2) shall diversify the investments of the retirement system unless the ~~trustee~~ commission reasonably determines that, because of special circumstances, it is clearly prudent not to do so;

(3) shall make a reasonable effort to verify facts relevant to the investment and management of assets of a retirement system;

(4) may invest in any kind of property or type of investment consistent with this chapter and Section 9-1-1310;

(5) may consider benefits created by an investment in addition to investment return only if the ~~trustee~~ commission determines that the

Printed Page 2903 . . . . . Thursday, May 19, 2005

investment providing these collateral benefits would be prudent even without the collateral benefits.

(B) The ~~trustee~~ commission shall adopt a statement of investment objectives and policies for the retirement system. The statement must include the desired rate of return on assets overall, the desired rates of return and acceptable levels of risk for each asset class, asset-allocation goals, guidelines for the delegation of authority, and information on the types of reports to be used to evaluate investment performance. At least annually, the ~~trustee~~ commission shall review the statement and change or reaffirm it. The relevant portion of this statement may constitute parts of the annual investment plan required pursuant to Section 9-16-330.

Section 9-1-60. (A) Compliance by the trustee, commission, or other fiduciary with Sections 9-16-30, 9-16-40, and 9-16-50 must be determined in light of the facts and circumstances existing at the time of the trustee's, commission's, or fiduciary's decision or action and not by hindsight.

(B) The ~~trustee's~~ commission's investment and management decisions must be evaluated not in isolation but in the context of the trust portfolio as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the retirement system.

Section 90-16-70. (A) ~~The trustee~~ A commission member or other fiduciary who breaches a duty imposed by this chapter is personally liable to the retirement system for any losses resulting from the breach and any profits resulting from the breach or made by the ~~trustee~~ commission member or other fiduciary through use of assets of the system by ~~trustees~~ the commission member or other fiduciary. The ~~trustee~~ commission member or other fiduciary is subject to other equitable remedies as the court considers appropriate, including removal.

(B) An agreement that purports to limit the liability of a trustee or other fiduciary for a breach of duty under this chapter is void.

(C) The retirement system may insure a trustee, commission member, fiduciary, or itself against liability or losses occurring because of a breach of duty under this chapter.

(D) A trustee, commission member, or other fiduciary may insure against personal liability or losses occurring because of a breach of duty under this chapter if the insurance is purchased or provided by the individual trustee, commission member, or fiduciary, but a fiduciary who obtains insurance pursuant to this chapter must disclose all terms,

Printed Page 2904 . . . . . Thursday, May 19, 2005

conditions, and other information relating to the insurance policy to the retirement system.

Section 9-16-80. (A) Meetings by the board while acting as trustee of the retirement system, or meetings of the commission, or by its fiduciary agents to deliberate about, or make tentative or final decisions on, investments or other financial matters may be in executive session if disclosure of the deliberations or decisions would jeopardize the ability to implement a decision or to achieve investment objectives.

(B) A record of the board, or commission, or of its fiduciary agents that discloses deliberations about, or a tentative or final decision on, investments or other financial matters is exempt from the disclosure requirements of Chapter 4 of Title 30, the Freedom of Information Act, to the extent and so long as its disclosure would jeopardize the ability to implement an investment decision or program or to achieve investment objectives.

Section 9-16-90. (A) The ~~trustees~~ commission shall provide investment reports at least quarterly during the fiscal year to the ~~panel~~ State Budget and Control Board, the Speaker of the House of Representatives, the President Pro Tempore of the Senate, and other appropriate officials and entities.

(B) In addition to the quarterly reports provided in subsection (A), the ~~trustees~~ commission shall provide an annual report to the ~~panel~~ State Budget and Control Board, the Speaker of the House of Representatives, members of the House of Representatives or Senate, but only upon their request, the President Pro Tempore of the Senate, and other appropriate officials and entities of the investment status of the retirement systems. The report must contain:

(1) a description of a material interest held by a trustee, fiduciary, or an employee who is a fiduciary with respect to the investment and management of assets of the system, or by a related person, in a material transaction with the system within the last three years or proposed to be effected;

(2) a schedule of the rates of return, net of total investment expense, on assets of the system overall and on assets aggregated by category over the most recent one-year, three-year, five-year, and ten-year periods, to the extent available, and the rates of return on appropriate benchmarks for assets of the system overall and for each category over each period;

(3) a schedule of the sum of total investment expense and total general administrative expense for the fiscal year expressed as a percentage of the fair value of assets of the system on the last day of the

Printed Page 2905 . . . . . Thursday, May 19, 2005

fiscal year, and an equivalent percentage for the preceding five fiscal years; and

(4) a schedule of all assets held for investment purposes on the last day of the fiscal year aggregated and identified by issuer, borrower, lessor, or similar party to the transaction stating, if relevant, the asset's maturity date, rate of interest, par or maturity value, number of shares, costs, and fair value and identifying an asset that is in default or classified as uncollectible.

These disclosure requirements are cumulative to and do not replace other reporting requirements provided by law."

SECTION 3. Article 3, Chapter 16, Title 9 of the 1976 Code is amended to read:

"Article 3

Investment of Funds

Section 9-16-310. There is created the State Retirement Systems Investment Panel, consisting of five members, one each appointed by the Governor, State Treasurer, Comptroller General, the chairman of the Ways and Means Committee of the House of Representatives, and the chairman of the Senate Finance Commission. The member appointed by the Governor shall serve as chairman. All members appointed to the panel must possess substantial financial investment experience. No person may be appointed or continue to serve who is an elected or appointed officer or employee of the State or any of its political subdivisions, including school districts. Members shall serve for terms of two years and until their successors are appointed and qualify. Vacancies must be filled for the unexpired term in the manner of the original appointment. Members shall serve without compensation, but may receive the mileage, subsistence, and per diem authorized by law for members of state boards, commissions, and committees as a retirement system expense to be paid from approved accounts of the retirement system. The panel shall advise the chief investment officer of the Retirement System Investment Commission in the preparation of the annual investment plan in the manner that the chief investment officer determines appropriate.

Section 9-16-315. (A) There is established the Retirement System Investment Commission (RSIC) consisting of six members as follows:

(1) one member appointed by the Governor;

(2) one member appointed by the State Treasurer;

(3) one member appointed by the Comptroller General;

(4) one member appointed by the chairman of the Senate Finance Committee;

Printed Page 2906 . . . . . Thursday, May 19, 2005

(5) one member appointed by the chairman of the Ways and Means Committee of the House of Representatives;

(6) one member who is a retired member of the retirement system who shall serve without voting privileges. This representative member must be appointed by unanimous vote of the voting members of the commission.

Members shall serve for terms of five years and until their successors are appointed and qualify, except that of those first appointed, the appointees of the Comptroller General and the chairman of the Senate Finance Committee shall serve for terms of three years and the appointee of the chairman of the Committee on Ways and Means and the representative appointee shall serve for terms of one year. Terms are deemed to expire after June thirtieth of the year in which the term is due to expire. Members are appointed for a term and may be removed before the term expires only by the Governor for the reasons provided in Section 1-3-240(C).

The commission shall select one of the voting members to serve as chairman and shall select those other officers it determines necessary.

(B) Each member shall receive three thousand dollars quarterly as compensation for his service on the commission during the preceding three months. Each member is allowed the mileage, subsistence, and per diem allowed by law for members of state boards, committees, and commissions.

(C) A person may not be appointed to the commission unless the person possesses at least one of the following qualifications:

(1) the Chartered Financial Analyst credential of the CFA Institute;

(2) the Certified Financial Planner credential of the Certified Financial Planner Board of Standards;

(3) at least ten years professional securities broker experience;

(4) at least ten years professional actuarial experience;

(5) at least ten years professional teaching experience in economics or finance; or

(6) an earned Ph.D. in economics or finance.

No person may be appointed or continue to serve who is an elected or appointed officer or employee of the State or any of its political subdivisions, including school districts.

(D) The Retirement System Investment Commission is established to invest the funds of the retirement system. All of the powers and duties of the State Budget and Control Board as investor in equity securities and the State Treasurer's function of investing in fixed

Printed Page 2907 . . . . . Thursday, May 19, 2005

income instruments are transferred to and devolved upon the Retirement System Investment Commission. To assist the commission in its investment function, it shall employ a chief investment officer, who under the direction and supervision of the commission, and as its agent, shall develop and maintain annual investment plans and invest and oversee the investment of retirement system funds. The chief investment officer serves at the pleasure of the commission and must receive the compensation the commission determines appropriate. The commission may employ the other professional, administrative, and clerical personnel it determines necessary and fix their compensation. All employees of the commission are employees-at-will. The compensation of the chief investment officer and other employees of the commission is not subject to the state compensation plan.

(E) The administrative costs of the Retirement System Investment Commission must be paid from the earnings of the state retirement system in the manner provided in Section 9-1-1310.

Section 9-16-320. (A) The ~~panel~~ commission shall meet no later than May first of each year to adopt the proposed annual investment plan for the retirement systems for the next fiscal year. The annual investment plan must be developed by the ~~panel~~ chief investment officer. No later than ~~June~~ April first of each year, the ~~panel~~ chief investment officer shall submit the proposed plan to the ~~board~~ commission. Amendments may be made to the plan by the ~~panel~~ commission during the fiscal year ~~with the approval of the board~~.

(B) The ~~panel~~ commission shall meet at least once during each fiscal year quarter for the purposes of reviewing the performance of investments, assessing compliance with the annual investment plan, and determining whether to ~~recommend amendments to~~ amend the plan ~~to the board~~. The ~~panel~~ commission shall meet at such other times as are set by the ~~panel~~ commission or the chairman or requested by the board.

(C) The ~~panel~~ commission may discuss, deliberate on, and make decisions on a portion of the annual investment plan or other related financial or investment matters in executive session if disclosure thereof would jeopardize the ability to implement that portion of the plan or achieve investment objectives.

(D) A record of the ~~panel or of the Retirement System~~ commission that discloses discussions, deliberations, or decisions on portions of the annual investment plan or other related financial or investment matters is not a public record under Section 30-4-20 to the extent and so long as

Printed Page 2908 . . . . . Thursday, May 19, 2005

its disclosure would jeopardize the ability to implement that portion of the plan or achieve investment objectives.

(E) [Reserved] The costs of administering the duties of the panel must be paid from the investment earnings of these systems. Administrative and clerical assistance to the panel must be provided. The board must approve all reasonable expenses of the panel in performing its duties under this section.

(F) [Reserved] ~~The panel does not act as a fiduciary with respect to the funds of the retirement system, but must exercise reasonable care and skill in carrying out its duties.~~

(G) The ~~panel~~ commission may retain independent advisors to assist it and periodically shall provide for an outside evaluation of the investment strategy ~~of the board~~.

Section 9-16-330. (A) The ~~board~~ commission shall provide the ~~panel~~ chief investment officer with a statement of general investment objectives. The commission shall also provide the chief investment officer with a statement of actuarial assumptions ~~and general investment objectives~~ developed by the system's actuary and approved by the board. The ~~board~~ commission shall review the statement of general investment objectives annually for the purpose of affirming or changing it and advise the ~~panel~~ chief investment officer of its actions. The Retirement System shall provide the commission and its chief investment officer that data or other information needed to prepare the annual investment plan.

(B) The annual investment plan must be consistent with actions taken by the ~~board~~ commission pursuant to subsection (A) and must include, but is not limited to, the following components:

(1) general operational and investment policies;

(2) investment objectives and performance standards;

(3) investment strategies, which may include indexed or enhanced indexed strategies as the preferred or exclusive strategies for equity investing, and an explanation of the reasons for the selection of each strategy;

(4) industry sector, market sector, issuer, and other allocations of assets that provide diversification in accordance with prudent investment standards, including desired rates of return and acceptable levels of risks for each asset class;

(5) policies and procedures providing flexibility in responding to market contingencies;

(6) procedures and policies for selecting, monitoring, compensating, and terminating investment consultants, equity

Printed Page 2909 . . . . . Thursday, May 19, 2005

investment managers, and other necessary professional service providers; and

(7) methods for managing the costs of the investment activities.

(1) diversify the investments of the retirement systems, unless the ~~panel~~ commission reasonably determines that, because of special circumstances, it is clearly not prudent to do so; and

(2) make a reasonable effort to verify facts relevant to the investment of assets of the retirement systems.

Section 9-16-340. (A) The ~~State Budget and Control Board~~ commission, ~~as trustee of the retirement system,~~ acting through the chief investment officer shall invest and reinvest the assets of the retirement systems as provided in Section 9-1-1310. The State Treasurer shall serve as the agent of the board with respect to investments made pursuant to Article 7, Chapter 9, Title 11. Investments allowed by law in equities may be made by the board in the manner it shall determine, consistent with Section 9-16-330 and consistent with its fiduciary duties with respect to the retirement funds. The ~~board~~ commission may employ or retain administrators, agents, consultants, or other advisors it considers necessary with respect to making ~~equity~~ investments. ~~The board is subject to the provisions of Chapter 23 of Title 1, the Administrative Procedures Act, in the implementation of this article~~ The chief investment officer may use the services of the State Treasurer in making nonequity security investments as the chief investment officer determines appropriate.

(B) After receiving the proposed plan of the ~~panel~~ chief investment officer, the ~~board~~ commission shall adopt an annual investment plan, which must be implemented by the ~~board~~ commission through the chief investment officer. The ~~board~~ commission shall regularly review the plan implementation and makes amendments as it considers appropriate. The plan must include the minimum and maximum portions of system assets that may be allocated to equity investments on an ongoing basis not to exceed seventy percent.

~~(C)~~ ~~The plan adopted must provide:~~

~~(1)~~ the minimum and maximum portions of system assets that may be allocated to equity investments on an ongoing basis not to exceed forty percent and the minimum and maximum portions of system assets not to exceed ten percent that may be allocated to additional equity investment during the plan fiscal year. When investments in equities attain the maximum allocation allowed by this

Printed Page 2910 . . . . . Thursday, May 19, 2005

item, up to forty percent of current member and employer contributions to the retirement system may be invested in equities. If, due to growth in value of equity investments, equity investments exceed forty percent of the total assets of the retirement system, this subsection does not require the sale of equities to reduce the percentage of equities to forty percent;

~~(2)~~ preference to brokerage firms domiciled in this State for conducting nondiscretionary brokerage transactions if these brokerage firms are able to meet the test of equal service and best execution in the purchase and sale of authorized investments.

Section 9-16-345. In hiring and procurement, and consistent with its duties as trustee and fiduciary, the commission shall strive to assure that minorities and minority-owned businesses are represented.

Section 9-16-350. (A) It is unlawful for a member, employee, or agent of the ~~panel~~ commission or anyone acting on his behalf to use any information concerning ~~panel~~ commission activities to obtain any economic interest for himself, a member of his immediate family, an individual with whom he is associated, or a business with which he is associated.

(B) If a member of the ~~panel~~ commission, an employee of the ~~panel~~ commission, or a member of his immediate family holds an economic interest in a blind trust, he is not considered to have violated the provisions of subsection (A) even if the acquisition of the economic interest by the blind trust would otherwise violate the provisions of subsection (A), if the existence of the blind trust and the manner of its control is disclosed to the State Ethics Commission and the ~~Budget and Control Board~~ commission.

(C) A person who violates the provisions of this section is guilty of a felony and, upon conviction, must be imprisoned for not more than ten years and fined not more than one hundred thousand dollars.

(D) The provisions of this section are cumulative to, and not in lieu of, any other provisions of law applicable to the ~~panel~~ commission and its members in the performance of official duties including, but not limited to, Chapter 13 of Title 8.

Section 9-16-360. (A) In addition to and not in lieu of the provisions of Section 9-16-350 and Chapter 13 of Title 8, and for the purposes of this article, there are the standards of conduct provided in subsection (B) of this section that apply for a fiduciary or employee of a fiduciary.

(B) A fiduciary or employee of a fiduciary shall:

Printed Page 2911 . . . . . Thursday, May 19, 2005

(1) take no action to purchase or acquire services or property for the commission or the retirement system where the fiduciary or employee of the fiduciary, their family, or their business associates have a financial interest in the services or property;

(2) take no action to invest retirement system funds in any share, or other security if the fiduciary or employee of the fiduciary, their family, or their business associates have an interest in, are underwriters of, or receive any fees from the investment;

(3) have no interest in the profits or receive any benefit from a contract entered into by the fiduciary;

(4) not use their positions to secure, solicit, or accept things of value, including gifts, travel, meals and lodging, and consulting fees for payment for outside employment, from parties doing or seeking to do business with or interested in matters before the fiduciary;

(5) not represent, while serving as or in the employment of the fiduciary and for one year after leaving the fiduciary, any person, in any fashion, before any public agency, with respect to any matters in which the fiduciary personally participated while serving as or employed by the fiduciary;

(6) not take any official action on matters that will result in a benefit to themselves, their family members, or their business associates;

(7) not, during or after their term of service, disclose or use confidential information acquire in their official capacity as fiduciary or employee of the fiduciary, without proper authorization;

(8) not use assets of the system for their own interests;

(9) not act on behalf of a party whose interests are adverse to the system or the fiduciary, even if the member receives no personal gain;

(10) not have any direct or indirect interest in the gains or profits of any system investment;

(11) not make investments through or purchases from, or otherwise do any business with a former fiduciary member or employee or with a business that is owned or controlled by a former fiduciary member or employee, for a period of three years after the fiduciary member or employee leaves the fiduciary.

(C) A breach of the standards provided in this section is grounds for the removal of a commission member as a conflict of interest pursuant to the Governor's removal powers under Section 1-3-240(C), for the dismissal of an employee of the commission, and in the case of a corporate fiduciary, at the commission's option, voiding any contract with the fiduciary."

Printed Page 2912 . . . . . Thursday, May 19, 2005

SECTION 4. Section 8-17-370 of the 1976 Code, as last amended by Act 356 of 2002, is further amended by adding an appropriately numbered item at the end to read:

"( ) the chief investment officer and all other employees of the Retirement System Investment Commission."

SECTION 5. Section 30-4-70(a)(6) of the 1976 Code, as added by Act 371 of 1998, is amended to read:

"(6) The ~~State Budget and Control Board~~, ~~while meeting as the trustee of the State Retirement System, or of the State Retirement Systems Investment Panel~~ Retirement System Investment Commission, if the meeting is in executive session specifically pursuant to Section 9-16-80(A) or 9-16-320(C)."

SECTION 6. Section 11-13-30 of the 1976 Code is amended to read:

"Section 11-13-30. To facilitate the management, investment, and disbursement of public funds, no board, commission, agency or officer within the State government, except the State Treasurer ~~shall be authorized to~~ may invest and deposit funds from any source, including, but not limited to, funds for which he is custodian, such funds to draw the best rate of interest obtainable.

This section does not apply to the Retirement Systems Investment Commission with respect to the investment of funds of the retirement system as defined in Section 9-16-10(8)."

SECTION 7. Upon implementation of the provisions of this part, it is the intent of the General Assembly that the Retirement System Investment Commission shall seek to maximize the rate of return on retirement system assets.

SECTION 8. Notwithstanding the general effective date provided for this act, the transfer of the investor functions provided by this part occur October 1, 2005. Notwithstanding the provisions of this part, the commission established by this part shall adopt and implement an interim investment plan for the period October 1, 2005, through June 30, 2006.

PART V

Transition

SECTION 1. (A) Beginning October 1, 2005, all assets and liabilities, appropriations, FTE's, employees, contracts, real and personal property, records, and archives of the State Budget and Control Board with respect to its investment duties for the various state retirement systems are transferred to and devolved upon the Retirement Systems Investment Commission.

Printed Page 2913 . . . . . Thursday, May 19, 2005

(B) It is the intention of the General Assembly that the transfer required by this act occur seamlessly, and to this end, the Executive Director of the State Budget and Control Board and the State Treasurer shall insure an orderly transfer that allows no hiatus in the investment of the funds of the retirement systems.

PART V - A

Severability Clause

SECTION 1. If any part, section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every part, section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other parts, sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

PART VI

Effective Date

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

Renumber sections to conform.

Amend title to conform.

Senator ALEXANDER explained the amendment.

The amendment was adopted.

Senator ALEXANDER proposed the following amendment (GGS\22222HTC05), which was adopted:

Amend the bill, as and if amended, in PART II, by adding an appropriately numbered Section at the end of PART II to read:

/ SECTION ____. Section 9-11-90 of the 1976 Code, as last amended by Act 356 of 2002, is further amended by adding a new subsection at the end to read:

"(6) A retired member shall pay to the system the employee contribution as if the member were an active contributing member if an employer participating in the system employs the retired member. The retired member does not accrue additional service credit in the system by reason of the contributions required pursuant to this subsection and subsection (4)(b) of this section." /

Printed Page 2914 . . . . . Thursday, May 19, 2005

Renumber sections to conform.

Amend title to conform.

Senator ALEXANDER explained the amendment.

The amendment was adopted.

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

THE SENATE PROCEEDED TO THE SPECIAL ORDERS.

COMMITTEE AMENDMENT AMENDED AND ADOPTED
READ THE SECOND TIME

H. 3110 (Word version) -- Reps. M.A. Pitts, Viers, Taylor, Rice, Witherspoon, Sandifer, Toole, Duncan, Huggins, Tripp, Cato, Walker, Davenport, G.R. Smith, Hamilton, Leach, F.N. Smith, Vaughn, Pinson, E.H. Pitts, Barfield, Clemmons, Owens, Young, Hinson, White, Loftis, Jennings, Hayes, Vick, Hosey, Merrill, Ceips, Bailey, Limehouse, Cooper, Hagood, Mahaffey, Bowers, Ott, Delleney, Talley, Scarborough, Hiott, McGee, J.R. Smith, Altman, Anthony, Umphlett, Hardwick, Townsend, Stewart, Thompson, J.E. Smith, Rutherford, Haley, Ballentine, Rhoad, Agnew, Littlejohn, Parks, Rivers and Chellis: A BILL TO AMEND SECTION 23-31-215, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ISSUANCE OF CONCEALABLE WEAPONS PERMITS, SO AS TO PROVIDE THAT VALID OUT-OF-STATE PERMITS TO CARRY CONCEALABLE WEAPONS HELD BY A RESIDENT OF ANOTHER STATE MUST BE HONORED BY THIS STATE AND TO DELETE THE PROVISION THAT THIS STATE WILL ONLY HONOR OUT-OF-STATE PERMITS ISSUED BY A STATE WITH WHICH SOUTH CAROLINA HAS RECIPROCITY.

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

Senators McCONNELL, MARTIN, RITCHIE, J. VERNE SMITH, FORD, WILLIAMS, ELLIOTT, KNOTTS and PATTERSON proposed the following amendment (JUD3110.006), which was adopted:

Printed Page 2915 . . . . . Thursday, May 19, 2005

Amend the committee report, as and if amended, pages [3110-1 and 3110-2], by striking SECTION 1 in its entirety and inserting:

/ SECTION 1. Section 23-31-215(N) of the 1976 Code, as added by Act 464 of 1996, is amended to read:

"(N) Valid out-of-state permits to carry concealable weapons held by a resident of ~~a reciprocal~~ the issuing state which honors a permit issued by South Carolina must be honored by this State, provided that the issuing state requires as a condition for the issuance of a concealed weapons permit that an applicant:

(1) successfully completes a handgun education course that includes information on the use of deadly force, information on the safe handling and operation of a handgun, and the demonstration of such by the actual firing of a handgun in the presence of the instructor;

(2) be an instructor certified by the National Rifle Association or another competent national organization that promotes the safe use of handguns;

(3) demonstrates to the Director of SLED or his designee that he has proficiency in both the use of handguns and state laws pertaining to handguns;

(4) be an active duty police handgun instructor;

(5) have an approved competitive handgun shooting classification; or

(6) be a member of the active or reserve military, or a member of the National Guard who has had handgun training in the previous three years.

SLED shall ~~make a determination as to those states which have permit issuance standards equal to or greater than the standards contained in this article~~ enter into a reciprocal agreement with a state that requires a reciprocal agreement before honoring a South Carolina concealable weapons permit and shall maintain and publish a list of those states as the states with which South Carolina has reciprocity."/

Renumber sections to conform.

Amend title to conform.

Senator RITCHIE explained the amendment.

The amendment was adopted.

The Committee on Judiciary proposed the following amendment (JUD3110.002), which was adopted:

Printed Page 2916 . . . . . Thursday, May 19, 2005

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

/ SECTION 1. Section 23-31-215(N) of the 1976 Code, as added by Act 464 of 1996, is amended to read:

"(N) Valid out-of-state permits to carry concealable weapons held by a resident of ~~a reciprocal~~ another state which honors a permit issued by South Carolina must be honored by this State. SLED shall ~~make a determination as to those states which have permit issuance standards equal to or greater than the standards contained in this article~~ enter into a reciprocal agreement with a state that requires a reciprocal agreement before honoring a South Carolina concealable weapons permit and shall maintain and publish a list of those states as the states with which South Carolina has reciprocity." /

Renumber sections to conform.

Amend title to conform.

The committee amendment was adopted.

Senator HAWKINS proposed the following amendment (JUD3110.007), which was tabled:

Amend the committee report, as and if amended, pages [3110-1 and 3110-2], by striking SECTION 1 in its entirety and inserting:

/ SECTION 1. Section 23-31-215(N) of the 1976 Code, as added by Act 464 of 1996, is amended to read:

(2) be an instructor certified by the National Rifle Association or another competent national organization that promotes the safe use of handguns;

(3) demonstrates to the Director of SLED or his designee that he has proficiency in both the use of handguns and state laws pertaining to handguns;

(4) be an active duty police handgun instructor;

Printed Page 2917 . . . . . Thursday, May 19, 2005

(5) have an approved competitive handgun shooting classification; or

(6) be a member of the active or reserve military, or a member of the National Guard who has had firearm training in the previous three years.

Renumber sections to conform.

Amend title to conform.

Senator HAWKINS spoke on the amendment.

Senator McCONNELL spoke on the amendment.

Senator McCONNELL moved to lay the amendment on the table.

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

Ayes 22; Nays 15

AYES

Anderson                  Cleary                    Fair
Ford                      Gregory                   Jackson
Knotts                    Leatherman                Malloy
Martin                    Matthews                  McConnell
Patterson                 Pinckney                  Ritchie
Ryberg                    Scott                     Setzler
Short                     Smith, J. Verne           Thomas
Williams

Total--22

NAYS

Alexander                 Bryant                    Campsen
Cromer                    Elliott                   Grooms
Hawkins                   Hayes                     Hutto

Printed Page 2918 . . . . . Thursday, May 19, 2005

Lourie                    Mescher                   Peeler
Richardson                Sheheen                   Verdin

Total--15

The amendment was laid on the table.

H. 3110--Ordered to a Third Reading

On motion of Senator KNOTTS, with unanimous consent, H. 3110 was ordered to receive a third reading on Friday, May 20, 2005.

STATEMENT BY SENATORS MARTIN
McCONNELL, KNOTTS and RITCHIE

We voted against Senator HAWKINS' amendment on H. 3110 for a very important policy reason. His proposal would have granted to out-of-state citizens the right to carry concealed weapons in South Carolina for a class of individuals, military personnel. We cannot support a reciprocity privilege for out-of-state citizens that is not granted to South Carolinians. Moreover, we had crafted an amendment that opponents of the Bill accepted and agreed not to filibuster or hold up the Bill's passage. This amendment would have negated that agreement and we most likely would have suffered a significant delay in the Bill's final adoption.

MOTION ADOPTED

On motion of Senator McGILL, with unanimous consent, the Senate stood adjourned out of respect to the memory of Mrs. Elaine Altman Richardson of Brittons Neck, S.C.

ADJOURNMENT

At 1:30 P.M., on motion of Senator McCONNELL, the Senate adjourned to meet tomorrow at 11:00 A.M. under the provisions of Rule 1 for the purpose of taking up local matters and uncontested matters which have previously received unanimous consent to be taken up.

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