Indicates Matter Stricken
Indicates New Matter

The Senate assembled at 2:00 P.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:

In the writings of Jeremiah we read:

"The word that came to Jeremiah from the Lord: Stand in the gate of the Lord's house, and proclaim there this word, and say, Hear the word of the Lord, all you people... "     (Jeremiah 7:1-2)

Friends, let us pray:

Speak to us boldly and clearly, gracious God, that all in this esteemed Senate might hear your truth and respond to it with faithfulness and certitude. And especially guide and bless your servant, the Honorable Mark Sanford, our Governor, when he speaks tonight in our Joint Assembly with the House. Empower us all to be your faithful servants: wise and caring, diligent and dedicated, honorable and determined-doing all that is best for the people of South Carolina. In your name we pray, dear God.
Amen.

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

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

Initial Appointment, South Carolina Mining Council, with term to commence June 30, 2006, and to expire June 30, 2010

Mining Industry:

Roy P. Duckett, Jr., Kennecott Minerals Ridgeway Mining Co., 227 Summer Road, Ridgeway, S.C. 29130 VICE Donald Babb

Referred to the Committee on Agriculture and Natural Resources.

Initial Appointment, South Carolina Public Charter School District Board of Trustees, with term to commence August 1, 2006, and to expire August 1, 2008

Education Oversight Committee:

Tom O. DeLoach, SC BIPEC, NBSC Building, 1122 Lady Street, Suite 820, Columbia, S.C. 29201

Referred to the Committee on Education.

Initial Appointment, Board of Directors of the Jobs-Economic Development Authority, with term to commence July 27, 2004, and to expire July 27, 2007

At-Large - Chairman:

Robert Alan Faith, Greystar Real Estate Partners, LLC, 11 State Street, Charleston, S.C. 29401 VICE Charlie Way

Referred to the Committee on Labor, Commerce and Industry.

Initial Appointment, Medical Disciplinary Commission of the State Board of Medical Examiners, with term to commence July 1, 2005, and to expire July 1, 2008

Public/Layman:

Rev. Father Francis C. Zanger, 665 Fair Spring Drive, Charleston, S.C. 29135

Referred to the Committee on Medical Affairs.

Initial Appointment, South Carolina State Board of Podiatry Examiners, with term to commence December 31, 2006, and to expire December 31, 2010

Upper District:

Brandon S. Percival, D.P.M., P. O. Box 325, Lancaster, S.C. 29721 VICE Bruce Wellmon

Referred to the Committee on Medical Affairs.

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

Document No. 3084
Agency: Department of Health and Environmental Control
SUBJECT: Septic Tank Site Evaluation Fees
Received by Lieutenant Governor January 17, 2007
Referred to Medical Affairs Committee
Legislative Review Expiration May 17, 2007

Document No. 3085
Agency: Department of Natural Resources and 50-15-70
SUBJECT: Non-Game and Endangered Species
Received by Lieutenant Governor January 17, 2007
Referred to Fish, Game and Forestry Committee
Legislative Review Expiration May 17, 2007

Document No. 3086
Agency: Department of Natural Resources
50-11-350, 50-11-390, 50-11-520, 50-11-530, 50-11-854, 50-11-2200, and 50-11-2210
SUBJECT: Hunting In Wildlife Management Areas
Received by Lieutenant Governor January 17, 2007
Referred to Fish, Game and Forestry Committee
Legislative Review Expiration May 17, 2007

S. 261 (Word version) -- Senators Martin and Alexander: A BILL TO REQUIRE THAT ANY MEASURE BY THE PICKENS COUNTY SCHOOL BOARD OF TRUSTEES, RELATING TO THE RAISING OR SPENDING OF REVENUE, MUST RECEIVE THREE READINGS, THAT FIRST READING MAY BE BY TITLE OR DESCRIPTION ONLY, THAT SECOND AND THIRD READING MUST BE APPROVED BY A MAJORITY OF THE BOARD MEMBERS, AND THAT THIRD READING MUST NOT BE CONDUCTED PRIOR TO ONE WEEK FOLLOWING THE DATE OF SECOND READING.

On motion of Senator MARTIN, the Bill was recalled from the House of Representatives.

On motion of Senator MARTIN, the vote whereby the Bill was read the third time and ordered sent to the House was taken up for immediate consideration.

Having voted on the prevailing side, Senator MARTIN moved to reconsider the vote whereby the Bill was given a third reading.

There was no objection.

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

Senators MARTIN and ALEXANDER proposed the following amendment (261R002.LAM), which was adopted:

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

/   SECTION   1.   Any measure by the Pickens County School Board of Trustees providing for the annual operating budget, a supplemental budget or appropriation that exceeds one-half of one percent of the annual operating budget, or results in the district incurring debt, must receive three readings on separate days. The first reading may be by title or description only. The second and third reading must be approved by a majority of the board members to constitute a reading, and third reading must not be conducted prior to one week following the date of second reading.

SECTION   2.   This act takes effect upon approval by the Governor. /   Renumber sections to conform.

Amend title to conform.

Senator MARTIN explained the amendment.

The amendment was adopted.

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

The following were introduced:

S. 279 (Word version) -- Senators Knotts, Courson, Setzler and Cromer: A SENATE RESOLUTION TO RECOGNIZE AND HONOR THE HEROES AND LEGENDS OF LEXINGTON COUNTY SCHOOL DISTRICT ONE WHO HAVE SERVED THEIR COUNTRY IN THE ARMED FORCES, INCLUDING THOSE WHO GAVE THEIR LIVES IN DEFENSE OF THE UNITED STATES, ON THE OCCASION OF THE DEDICATION OF THE FLOYD D. SPENCE JUNIOR AIR FORCE ROTC WING AT LEXINGTON HIGH SCHOOL ON FEBRUARY 5, 2007.
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The Senate Resolution was adopted.

S. 280 (Word version) -- Senator Verdin: A CONCURRENT RESOLUTION TO REQUEST THE UNITED STATES DEPARTMENT OF INTERIOR AUTHORIZE THE PLACEMENT OF A MARKER OR MEMORIAL AT AN APPROPRIATE LOCATION AT THE BLOODY ANGLE IN THE MULE SHOE ON THE BATTLEFIELDS FOR THE SPOTSYLVANIA COURT HOUSE THAT RECOGNIZES THE SIGNIFICANT ROLE OF SOUTH CAROLINIAN SOLDIERS IN THE BATTLE AT SPOTSYLVANIA COURT HOUSE.
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The Concurrent Resolution was introduced and referred to the General Committee.

S. 281 (Word version) -- Senator Thomas: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 154 TO TITLE 59 SO AS TO REQUIRE ESTABLISHMENT OF INTERNET USE POLICIES FOR SOUTH CAROLINA PUBLIC SCHOOLS.
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Read the first time and referred to the Committee on Education.

S. 282 (Word version) -- Senators Leatherman and Setzler: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 11-35-3005 SO AS TO AUTHORIZE CERTAIN PROJECT DELIVERY METHODS FOR STATE PROCUREMENTS RELATING TO INFRASTRUCTURE FACILITIES; BY ADDING SECTION 11-35-3015 SO AS TO SPECIFY THE SOURCE SELECTION METHODS FOR THE TYPES OF AUTHORIZED PROJECT DELIVERY METHODS; BY ADDING SECTION 11-35-3021 SO AS TO PROVIDE FOR SUBCONTRACTOR SUBSTITUTION; BY ADDING SECTION 11-35-3023 SO AS TO PROVIDE FOR PREQUALIFICATION ON STATE CONSTRUCTION; BY ADDING SECTION 11-35-3024 SO AS TO PROVIDE FOR CONTENTS OF A REQUEST FOR PROPOSALS AND EVALUATION FACTORS APPLICABLE TO CERTAIN PROJECT DELIVERY METHODS; BY ADDING SECTION 11-35-3035 SO AS TO PROVIDE FOR THE REQUIREMENT OF ERRORS AND OMISSIONS INSURANCE TO COVER CERTAIN SERVICES DELIVERED PURSUANT TO CERTAIN PROJECT DELIVERY METHODS; BY ADDING SECTION 11-35-3037 SO AS TO PROVIDE FOR OTHER FORMS OF SECURITY TO ENSURE PERFORMANCE; BY ADDING SECTION 11-35-3070 SO AS TO ALLOW THE GOVERNING BODY TO APPROVE NONMATERIAL CHANGE ORDERS; TO AMEND SECTION 11-35-310, AS AMENDED, RELATING TO DEFINITIONS FOR PURPOSES OF THE SOUTH CAROLINA CONSOLIDATED PROCUREMENT CODE, SO AS TO REDEFINE "CONSTRUCTION"; TO AMEND SECTION 11-35-1510, AS AMENDED, RELATING TO METHODS OF SOURCE SELECTION, SO AS TO PROVIDE FOR SELECTION METHODS IN CONNECTION WITH PROJECT DELIVERY METHODS; TO AMEND SECTION 11-35-1530, AS AMENDED, RELATING TO COMPETITIVE SEALED PROPOSALS, SO AS TO REQUIRE COMPETITIVE SEALED PROPOSALS FOR CONTRACTS FOR CERTAIN PROJECT DELIVERY METHODS AND TO PROVIDE EXCEPTIONS; TO AMEND SECTION 11-35-2410, AS AMENDED, RELATING TO FINALITY OF DETERMINATIONS IN CONNECTION WITH COMPETITIVE SEALED BIDDING, SO AS TO INCLUDE REFERENCES TO CHOICE OF DELIVERY METHOD AND PREQUALIFICATION ON STATE CONSTRUCTION; TO AMEND SECTION 11-35-2910, AS AMENDED, RELATING TO CERTAIN SERVICES, SO AS TO INCLUDE DEFINITIONS PERTAINING TO THE VARIOUS AUTHORIZED PROJECT DELIVERY METHODS INCLUDING "DESIGN REQUIREMENTS", "INDEPENDENT PEER REVIEWER SERVICE", AND "INFRASTRUCTURE FACILITY"; TO AMEND SECTION 11-35-3010, AS AMENDED, RELATING TO ADMINISTRATION OF CONSTRUCTION CONTRACTING, SO AS TO SUBSTITUTE PROJECT DELIVERY METHOD FOR THE PROCESS AND "GOVERNMENTAL BODY" FOR "USING AGENCY"; TO AMEND SECTION 11-35-3020, AS AMENDED, RELATING TO CONSTRUCTION PROCUREMENT PROCEDURES, SO AS TO DELETE SOURCE SELECTION LANGUAGE, TO INCORPORATE NEW PROVISIONS ADDED IN EARLIER SECTIONS AND TO DELETE LANGUAGE DUPLICATIVE OF NEW PROVISIONS ADDED; TO AMEND SECTION 11-35-3030, AS AMENDED, RELATING TO BOND AND SECURITY SO AS TO PROVIDE THAT THE CONTRACT PRICE FOR PURPOSES OF A PAYMENT BOND OR PERFORMANCE BOND DOES NOT INCLUDE THE COST OF OPERATION, MAINTENANCE, AND FINANCE, AND TO ALLOW FOR NO SURETY DURING PRECONSTRUCTION OR DESIGN PHASES; TO AMEND SECTION 11-35-3210, AS AMENDED, RELATING TO APPLICABILITY AND POLICY IN CONNECTION WITH CERTAIN SERVICES, SO AS TO DELETE THE PROVISIONS REFERRING TO APPLICABILITY TO THOSE SERVICES; TO AMEND SECTION 11-35-3220, AS AMENDED, RELATING TO PROCUREMENT PROCEDURES, SO AS TO SUBSTITUTE "GOVERNMENTAL BODY" FOR "USING AGENCY"; TO AMEND SECTION 11-35-3230, AS AMENDED, RELATING TO SMALL ARCHITECT-ENGINEERING AND LAND SURVEYING CONTRACTS, SO AS TO SUBSTITUTE "GOVERNMENTAL BODY" FOR "USING AGENCY"; TO AMEND SECTION 11-35-3245, AS AMENDED, RELATING TO PERFORMING OTHER WORK, SO AS TO LIMIT ITS APPLICATION TO PROCUREMENTS FOR CONSTRUCTION USING THE DESIGN-BID-BUILD PROJECT DELIVERY METHODS; TO AMEND SECTION 11-35-3310, AS AMENDED, RELATING TO INDEFINITE DELIVERY CONSTRUCTION CONTRACTS, SO AS TO ADD A CROSS REFERENCE; AND TO REPEAL SECTION 11-35-1825, RELATING TO PREQUALIFICATION OF CONSTRUCTION BIDDERS.
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Read the first time and referred to the Committee on Finance.

S. 283 (Word version) -- Senator Grooms: A BILL TO AMEND SECTION 50-11-2200, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ESTABLISHMENT OF WILDLIFE MANAGEMENT AREAS, SO AS TO PROVIDE THAT THE DEPARTMENT OF NATURAL RESOURCES MAY PROMULGATE REGULATIONS FOR THE PROTECTION, PRESERVATION, OPERATION, MAINTENANCE, AND USE OF LAND LEASED OR ESTABLISHED AS WILDLIFE MANAGEMENT AREAS.
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Read the first time and referred to the Committee on Fish, Game and Forestry.

S. 284 (Word version) -- Judiciary Committee: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 7, ARTICLE VI OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE CONSTITUTIONAL OFFICERS OF THIS STATE, SO AS TO DELETE THE ADJUTANT GENERAL FROM THE LIST OF STATE OFFICERS WHICH THE CONSTITUTION REQUIRES TO BE ELECTED AND PROVIDE THAT UPON THE EXPIRATION OF THE TERM OF THE ADJUTANT GENERAL SERVING IN OFFICE ON THE DATE OF THE RATIFICATION OF THIS PROVISION, THE ADJUTANT GENERAL MUST BE APPOINTED BY THE GOVERNOR UPON THE ADVICE AND CONSENT OF THE SENATE FOR A TERM COTERMINOUS WITH THE GOVERNOR; AND PROPOSING AN AMENDMENT TO SECTION 4, ARTICLE XIII, RELATING TO THE ADJUTANT GENERAL AND HIS STAFF OFFICERS, SO AS TO UPDATE REFERENCES TO THE ADJUTANT GENERAL'S TITLE AND TO PROVIDE THAT UPON THE EXPIRATION OF THE TERM OF THE ADJUTANT GENERAL SERVING IN OFFICE ON THE DATE OF THE RATIFICATION OF THIS PROVISION, THE ADJUTANT GENERAL MUST BE APPOINTED BY THE GOVERNOR UPON THE ADVICE AND CONSENT OF THE SENATE FOR A TERM COTERMINOUS WITH THE GOVERNOR.
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Read the first time and ordered placed on the Calendar without reference.

S. 285 (Word version) -- Judiciary Committee: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 7, ARTICLE VI OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE CONSTITUTIONAL OFFICERS OF THIS STATE, SO AS TO DELETE THE COMPTROLLER GENERAL FROM THE LIST OF STATE OFFICERS WHICH THE CONSTITUTION REQUIRES TO BE ELECTED AND PROVIDE THAT UPON THE EXPIRATION OF THE TERM OF THE COMPTROLLER GENERAL SERVING IN OFFICE ON THE DATE OF THE RATIFICATION OF THIS PROVISION, THE COMPTROLLER GENERAL SHALL BE NOMINATED BY THE GOVERNOR, APPROVED BY UNANIMOUS VOTE OF THE GOVERNOR, THE STATE TREASURER, THE CHAIRMAN OF THE WAYS AND MEANS COMMITTEE OF THE HOUSE OF REPRESENTATIVES, AND THE CHAIRMAN OF THE FINANCE COMMITTEE OF THE SENATE, AND SUBJECT TO THE ADVICE AND CONSENT OF THE SENATE.
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Read the first time and ordered placed on the Calendar without reference.

S. 286 (Word version) -- Judiciary Committee: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 7, ARTICLE VI OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE CONSTITUTIONAL OFFICERS OF THIS STATE, SO AS TO DELETE THE SUPERINTENDENT OF EDUCATION FROM THE LIST OF STATE OFFICERS WHICH THE CONSTITUTION REQUIRES TO BE ELECTED AND PROVIDE THAT UPON THE EXPIRATION OF THE TERM OF THE SUPERINTENDENT OF EDUCATION SERVING IN OFFICE ON THE DATE OF THE RATIFICATION OF THIS PROVISION, THE SUPERINTENDENT OF EDUCATION MUST BE APPOINTED BY THE GOVERNOR UPON THE ADVICE AND CONSENT OF THE SENATE FOR A TERM COTERMINOUS WITH THE GOVERNOR; AND PROPOSING AN AMENDMENT TO SECTION 1, ARTICLE XI, RELATING TO THE STATE BOARD OF EDUCATION, SO AS TO ABOLISH THE BOARD EFFECTIVE UPON THE STATE SUPERINTENDENT OF EDUCATION BEING APPOINTED BY THE GOVERNOR.
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Read the first time and ordered placed on the Calendar without reference.

S. 287 (Word version) -- Judiciary Committee: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 7, ARTICLE VI OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE CONSTITUTIONAL OFFICERS OF THIS STATE, SO AS TO DELETE THE COMMISSIONER OF AGRICULTURE FROM THE LIST OF STATE OFFICERS WHICH THE CONSTITUTION REQUIRES TO BE ELECTED AND PROVIDE THAT UPON THE EXPIRATION OF THE TERM OF THE COMMISSIONER OF AGRICULTURE SERVING IN OFFICE ON THE DATE OF THE RATIFICATION OF THIS PROVISION, THE COMMISSIONER OF AGRICULTURE MUST BE APPOINTED BY THE GOVERNOR UPON THE ADVICE AND CONSENT OF THE SENATE FOR A TERM COTERMINOUS WITH THE GOVERNOR.
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Read the first time and ordered placed on the Calendar without reference.

S. 288 (Word version) -- Judiciary Committee: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 7, ARTICLE VI OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE CONSTITUTIONAL OFFICERS OF THIS STATE, SO AS TO DELETE THE SECRETARY OF STATE FROM THE LIST OF STATE OFFICERS WHICH THE CONSTITUTION REQUIRES TO BE ELECTED AND PROVIDE THAT UPON THE EXPIRATION OF THE TERM OF THE SECRETARY OF STATE SERVING IN OFFICE ON THE DATE OF THE RATIFICATION OF THIS PROVISION, THE SECRETARY OF STATE MUST BE APPOINTED BY THE GOVERNOR UPON THE ADVICE AND CONSENT OF THE SENATE FOR A TERM COTERMINOUS WITH THE GOVERNOR.
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Read the first time and ordered placed on the Calendar without reference.

S. 289 (Word version) -- Senators Bryant and Ryberg: A BILL TO AMEND CHAPTER 3, TITLE 5 OF THE 1976 CODE, BY ADDING SECTION 5-3-160, RELATING TO ANNEXATION, TO PROVIDE THAT A MUNICIPALITY MAY NOT REQUIRE ANNEXATION AS A CONDITION PRECEDENT TO PROVIDING UTILITY SERVICES.
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Read the first time and referred to the Committee on Judiciary.

S. 290 (Word version) -- Senators Knotts, Bryant, Verdin, Grooms, Hayes, Malloy, McConnell, Leatherman, Peeler, Courson, McGill, Drummond, Setzler, Fair, Reese, Alexander, Leventis, Sheheen, Ryberg, Pinckney, Jackson, Lourie, Moore, Cromer, Mescher, Ritchie, Martin, Matthews, Gregory, Cleary, Scott and Campsen: A CONCURRENT RESOLUTION TO INVITE THE NATIONAL COMMANDER OF THE AMERICAN LEGION, THE HONORABLE PAUL A. MORIN, TO ADDRESS THE GENERAL ASSEMBLY IN JOINT SESSION AT 12:30 P.M. ON TUESDAY, FEBRUARY 27, 2007.
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Senator KNOTTS spoke on the Resolution.

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

S. 291 (Word version) -- Senators Ritchie, McConnell, Malloy, Sheheen and Peeler: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-104-25 SO AS TO PROVIDE THAT A RESIDENT STUDENT WHO HAS COMPLETED AT LEAST THIRTY CREDIT HOURS AND IS ATTENDING A PUBLIC OR PRIVATE INSTITUTION IN THIS STATE, MAJORING IN SCIENCE OR MATHEMATICS, AND RECEIVING A PALMETTO FELLOWS SCHOLARSHIP SHALL RECEIVE AN ADDITIONAL PALMETTO FELLOWS LOAN FOR THE REMAINDER OF HIS UNDERGRADUATE TERM IF HE MEETS CERTAIN CONDITIONS, INCLUDING MAKING SATISFACTORY ACADEMIC PROGRESS TOWARD RECEIVING AN UNDERGRADUATE DEGREE IN SCIENCE OR MATHEMATICS, TO PROVIDE THAT A SCIENCE OR MATHEMATICS MAJOR INCLUDES AN ENGINEERING MAJOR, AND TO PROVIDE THAT THE RECIPIENT OF THE LOAN MAY HAVE THE LOAN CANCELED PURSUANT TO CERTAIN CONDITIONS; AND BY ADDING SECTION 59-149-15 SO AS TO PROVIDE THAT A RESIDENT STUDENT WHO HAS COMPLETED AT LEAST THIRTY CREDIT HOURS AND IS ATTENDING A PUBLIC OR PRIVATE INSTITUTION IN THIS STATE, MAJORING IN SCIENCE OR MATHEMATICS, AND RECEIVING A LIFE SCHOLARSHIP SHALL RECEIVE AN ADDITIONAL LIFE LOAN FOR THE REMAINDER OF HIS UNDERGRADUATE TERM IF HE MEETS CERTAIN CONDITIONS, INCLUDING MAKING SATISFACTORY ACADEMIC PROGRESS TOWARD RECEIVING AN UNDERGRADUATE DEGREE IN SCIENCE OR MATHEMATICS, TO PROVIDE THAT A SCIENCE OR MATHEMATICS MAJOR INCLUDES AN ENGINEERING MAJOR, AND TO PROVIDE THAT THE RECIPIENT OF THE LOAN MAY HAVE THE LOAN CANCELED PURSUANT TO CERTAIN CONDITIONS.
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Read the first time and referred to the Committee on Education.

H. 3209 (Word version) -- Rep. Cobb-Hunter: A BILL TO AMEND ACT 456 OF 2006, RELATING TO THE CREATION, MEMBERS, AND DUTIES OF THE CHRONIC KIDNEY DISEASE TASK FORCE, SO AS TO PROVIDE THAT THE TASK FORCE SHALL SUBMIT ITS REPORT BEFORE APRIL 1, 2007.

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

Senator MARTIN from the Committee on Judiciary submitted a favorable report on:

S. 152 (Word version) -- Senators Alexander, McConnell, Leatherman, Campsen, Vaughn, Ryberg, Richardson, Hayes, Mescher, Knotts, Elliott and Cleary: A BILL TO RATIFY AN AMENDMENT TO SECTION 16, ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO BENEFITS AND FUNDING OF PUBLIC EMPLOYEE PENSION PLANS IN THIS STATE, INVESTMENTS ALLOWED FOR FUNDS OF THE VARIOUS STATE-OPERATED RETIREMENT SYSTEMS, AND THE STATE RETIREMENT SYSTEMS INVESTMENT PANEL, SO AS TO DELETE THE RESTRICTIONS LIMITING SUCH INVESTMENTS TO AMERICAN-BASED CORPORATIONS REGISTERED ON AN AMERICAN NATIONAL EXCHANGE AS PROVIDED IN THE SECURITIES EXCHANGE ACT OF 1934 OR QUOTED THROUGH THE NATIONAL ASSOCIATION OF SECURITIES DEALERS AUTOMATIC QUOTATION SYSTEM; AND TO RATIFY AN AMENDMENT TO SECTION 16, ARTICLE X, SO AS TO ELIMINATE THE STATE RETIREMENT SYSTEMS INVESTMENT PANEL.

Ordered for consideration tomorrow.

Senator MARTIN from the Committee on Judiciary submitted a favorable report on:

S. 153 (Word version) -- Senators McConnell, Leatherman, Campsen, Vaughn, Ryberg, Richardson, Hayes, Knotts, Elliott and Cleary: A BILL TO RATIFY AN AMENDMENT TO SECTION 29, ARTICLE III OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE LEGISLATIVE DEPARTMENT, SO AS TO PROVIDE THAT TAXES UPON REAL PROPERTY MUST BE ASSESSED IN ACCORDANCE WITH THE METHODS AS PROVIDED BY THE GENERAL ASSEMBLY IN ARTICLE X OF THE STATE CONSTITUTION; AND TO RATIFY AN AMENDMENT TO SECTION 6 OF ARTICLE X, SO AS TO PROVIDE THAT THE GENERAL ASSEMBLY SHALL ESTABLISH A METHOD OF VALUATION FOR ASSESSMENT OF REAL PROPERTY WITHIN THE STATE; AND TO PROVIDE THAT THE GENERAL ASSEMBLY BY LAW SHALL PROVIDE FOR THE TERMS, CONDITIONS, AND PROCEDURES TO IMPLEMENT THE ABOVE PROVISIONS.

Ordered for consideration tomorrow.

Senator ELLIOTT from the Committee on Judiciary submitted a favorable report on:

S. 154 (Word version) -- Senators Hawkins, Campsen, Vaughn, Ryberg, Hayes, Knotts and Elliott: A BILL TO RATIFY AN AMENDMENT TO ARTICLE XVII OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO MISCELLANEOUS MATTERS, BY ADDING SECTION 15 SO AS TO PROVIDE THAT MARRIAGE BETWEEN ONE MAN AND ONE WOMAN IS THE ONLY LAWFUL DOMESTIC UNION THAT IS VALID OR RECOGNIZED IN THIS STATE AND TO PROVIDE THAT THE STATE OR ITS POLITICAL SUBDIVISIONS MAY NOT CREATE ANY OTHER DOMESTIC UNION AND MAY NOT RECOGNIZE A DOMESTIC UNION CREATED BY ANOTHER JURISDICTION.

Ordered for consideration tomorrow.

Senator MARTIN from the Committee on Judiciary submitted a favorable report on:

S. 155 (Word version) -- Senators Campsen, McConnell, Leatherman, Gregory, Elliott, Rankin, Vaughn, Ryberg, Courson, Richardson, Hayes, Mescher, Ritchie, Knotts and Cleary: A BILL TO RATIFY AN AMENDMENT TO SECTION 13, ARTICLE I OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE TAKING OF PRIVATE PROPERTY, SO AS TO PROVIDE THAT PRIVATE PROPERTY MUST NOT BE CONDEMNED BY EMINENT DOMAIN FOR ANY PURPOSE OR BENEFIT INCLUDING, BUT NOT LIMITED TO, THE PURPOSE OR BENEFIT OF ECONOMIC DEVELOPMENT, UNLESS THE CONDEMNATION IS FOR PUBLIC USE; EXCEPT THAT IN THE INSTANCE OF THE EXERCISE OF EMINENT DOMAIN FOR THE LIMITED PURPOSE OF REMEDYING BLIGHT, THE GENERAL ASSEMBLY MAY PROVIDE FOR THE PRIVATE USE OF CONDEMNED PROPERTY UNDER CERTAIN CONDITIONS; AND TO RATIFY AMENDMENTS TO SECTION 17, ARTICLE I, AND SECTION 5, ARTICLE XIV, RELATING TO TREASON AND THE EXERCISE OF THE POWERS OF EMINENT DOMAIN BY OR WITHIN SUMTER, CHEROKEE, SPARTANBURG, YORK, FLORENCE, GREENVILLE, CHARLESTON, RICHLAND, AND LAURENS COUNTIES, SO AS TO DELETE THOSE PROVISIONS.

Ordered for consideration tomorrow.

Senator MOORE from the Committee on Judiciary submitted a favorable report on:

S. 156 (Word version) -- Senators Campsen, McConnell, Leatherman, Vaughn, Courson, Hayes, Richardson, Ritchie, McGill, Knotts and Elliott: A BILL TO RATIFY AN AMENDMENT TO SECTION 9, ARTICLE III OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO SESSIONS OF THE GENERAL ASSEMBLY, SO AS TO PROVIDE THAT, AFTER THE GENERAL ASSEMBLY CONVENES ON THE SECOND TUESDAY IN JANUARY OF EACH YEAR, THE SENATE AND THE HOUSE OF REPRESENTATIVES MAY RECEDE FOR A TIME PERIOD NOT TO EXCEED THIRTY CALENDAR DAYS BY A MAJORITY VOTE OF THE RECEDING BODY OR FOR MORE THAN THIRTY DAYS BY A TWO-THIRDS VOTE OF THE RECEDING BODY, TO PROVIDE THAT EACH BODY MAY PROVIDE FOR MEETINGS DURING THE LEGISLATIVE SESSION AS IT CONSIDERS APPROPRIATE AND TO AUTHORIZE AN ORGANIZATIONAL SESSION FOLLOWING THE ELECTION OF SENATORS; AND TO RATIFY AN AMENDMENT TO ARTICLE III BY DELETING SECTION 21, WHICH PROVIDES THAT NEITHER HOUSE, DURING THE SESSION OF THE GENERAL ASSEMBLY, SHALL WITHOUT THE CONSENT OF THE OTHER ADJOURN FOR MORE THAN THREE DAYS, NOR TO ANY OTHER PLACE THAN THAT IN WHICH IT SHALL BE AT THE TIME SITTING.

Ordered for consideration tomorrow.

Senator MOORE from the Committee on Judiciary submitted a favorable report on:

S. 157 (Word version) -- Senators McConnell, Vaughn, Campsen, Courson, Richardson, Hayes, Mescher, McGill, Knotts, Elliott and Cleary: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, TO ENACT THE "SOUTH CAROLINA TEACHER PROTECTION ACT OF 2007", BY ADDING SECTION 59-25-900, SO AS TO PROVIDE THAT A TEACHER MAY BRING A CIVIL ACTION AGAINST A STUDENT WHO COMMITS A CRIMINAL OFFENSE AGAINST THE TEACHER IF THE OFFENSE OCCURS ON SCHOOL GROUNDS OR AT A SCHOOL-RELATED EVENT, OR IF THE OFFENSE IS DIRECTLY RELATED TO THE TEACHER'S PROFESSIONAL RESPONSIBILITIES, AND TO PROVIDE THAT NO TEACHER HAS CIVIL LIABILITY TO A STUDENT OR TO A PARTY ACTING IN THE INTEREST OF THE STUDENT FOR AN ACT OR OMISSION BY THE TEACHER THAT OCCURS WHILE THE TEACHER IS ACTING ON BEHALF OF THE SCHOOL; AND TO AMEND SECTION 16-3-612, RELATING TO THE OFFENSE OF A STUDENT COMMITTING ASSAULT AND BATTERY AGAINST A PERSON AFFILIATED WITH A SCHOOL IN AN OFFICIAL CAPACITY, SO AS TO REDEFINE INTO THREE OFFENSES WITH SEPARATE PENALTIES FOR EACH, INCLUDING ESTABLISHING THE MOST SERIOUS OFFENSE AS A FELONY.

Ordered for consideration tomorrow.

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

The following Joint Resolution was read the third time and ordered sent to the House of Representatives:

S. 273 (Word version) -- Senators Richardson and Pinckney: A JOINT RESOLUTION TO CHANGE THE CERTIFICATION DATE FOR A SALES AND USE TAX REFERENDUM HELD DURING THE 2006 GENERAL ELECTION FROM NO LATER THAN NOVEMBER 30, 2006, TO DECEMBER 10, 2006.

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

S. 277 (Word version) -- Senator Verdin: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 57-23-830 SO AS TO PROVIDE THAT THE DEPARTMENT OF TRANSPORTATION MAY MOW BEYOND THIRTY FEET FROM THE PAVEMENT ROADSIDE VEGETATION ADJACENT TO THE PORTION OF INTERSTATE HIGHWAY 385 IN LAURENS COUNTY BETWEEN MILE MARKERS 7 AND 11.

Senator RICHARDSON explained the Bill.

S. 227 (Word version) -- Senators Ford, Anderson, Alexander, Courson, Campsen, O'Dell, Williams, Knotts, Hutto, Matthews, Land, Jackson, McConnell, Patterson, McGill, Pinckney, Reese, Elliott, Leatherman, Peeler, Lourie, Malloy, Sheheen, Short, Rankin, Ryberg, Ritchie, Leventis, Fair, Grooms, Cromer, Bryant, Mescher, Martin, Hayes, Richardson, Scott and Vaughn: A CONCURRENT RESOLUTION INVITING THE HONORABLE JAMES E. CLYBURN, MEMBER OF THE UNITED STATES HOUSE OF REPRESENTATIVES FROM THE SIXTH CONGRESSIONAL DISTRICT OF SOUTH CAROLINA AND NEWLY-ELECTED MAJORITY WHIP OF THE HOUSE OF REPRESENTATIVES FOR THE 110TH CONGRESS, TO ADDRESS THE GENERAL ASSEMBLY IN JOINT ASSEMBLY ON A DATE AND TIME CONVENIENT FOR REPRESENTATIVE CLYBURN'S SCHEDULE AS DETERMINED BY THE PRESIDENT PRO TEMPORE OF THE SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.

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

On motion of Senator SETZLER, with unanimous consent, the names of Senators SETZLER, MOORE and MARTIN were added as co-sponsors of S. 227.

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

S. 101 (Word version) -- Senators McConnell, Courson, Martin, Campsen, Richardson and Cleary: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO ARTICLE III OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, BY ADDING SECTION 37, SO AS TO PROVIDE THAT THE SENATE MUST ELECT FROM AMONG ITS MEMBERS A PRESIDENT OF THE SENATE TO PRESIDE OVER THE SENATE AND TO PERFORM OTHER DUTIES AS PROVIDED BY LAW; PROPOSING AN AMENDMENT TO SECTION 8, ARTICLE IV, RELATING TO THE ELECTION, QUALIFICATIONS, AND TERM OF THE LIEUTENANT GOVERNOR, SO AS TO PROVIDE FOR THE JOINT ELECTION OF THE GOVERNOR AND LIEUTENANT GOVERNOR; PROPOSING AN AMENDMENT TO ARTICLE IV, RELATING TO THE PRESIDENT PRO TEMPORE OF THE SENATE, SO AS TO DELETE SECTION 9 WHICH PROVIDES THAT THE SENATE MUST CHOOSE A PRESIDENT PRO TEMPORE AND WHICH ALSO PROVIDES THAT A MEMBER OF THE SENATE ACTING AS LIEUTENANT GOVERNOR VACATES HIS SEAT AND ANOTHER PERSON IS ELECTED IN HIS STEAD; PROPOSING AN AMENDMENT TO ARTICLE IV, RELATING TO THE LIEUTENANT GOVERNOR AS PRESIDENT OF THE SENATE, BY DELETING SECTION 10 WHICH PROVIDES THAT THE LIEUTENANT GOVERNOR IS THE PRESIDENT OF THE SENATE; PROPOSING AN AMENDMENT TO SECTION 12, ARTICLE IV, RELATING TO THE DISABILITY OF THE GOVERNOR, SO AS TO PROVIDE THAT IF BOTH THE ATTORNEY GENERAL AND THE STATE TREASURER TRANSMIT TO THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES A WRITTEN DECLARATION THAT THE GOVERNOR IS UNABLE TO DISCHARGE THE POWERS AND DUTIES OF HIS OFFICE, THE LIEUTENANT GOVERNOR MUST ASSUME THE POWERS AND DUTIES OF THE OFFICE AS ACTING GOVERNOR; PROPOSING AN AMENDMENT TO SECTION 15, ARTICLE V, RELATING TO THE QUALIFICATIONS OF JUSTICES AND JUDGES, SO AS TO DELETE AN OBSOLETE PARAGRAPH WHICH PROVIDES FOR CERTAIN QUALIFICATIONS OF SITTING JUSTICES AND JUDGES; PROPOSING AN AMENDMENT TO SECTION 18, ARTICLE V, RELATING TO VACANCIES IN THE SUPREME COURT, COURT OF APPEALS, OR CIRCUIT COURT, SO AS TO PROVIDE THAT A VACANCY MAY BE FILLED BY THE GOVERNOR WITH THE ADVICE AND CONSENT OF THE SENATE; PROPOSING AN AMENDMENT TO SECTION 5, ARTICLE VI, RELATING TO THE OATH OF OFFICE FOR EXECUTIVE OFFICERS, SO AS TO DELETE MEMBERS OF THE GENERAL ASSEMBLY FROM THE SECTION AND TO MAINTAIN OATHS FOR MEMBERS OF THE GENERAL ASSEMBLY UNDER ARTICLE III, SECTION 26.

Senator McCONNELL was recognized to explain the Resolution.

Senator McCONNELL moved to recall the Resolution from the Committee on Judiciary and ordered placed on the Calendar for consideration tomorrow.

The Resolution was recalled from the Committee on Judiciary and ordered placed on the Calendar for consideration tomorrow.

On motion of Senator McCONNELL, with unanimous consent, the Senate agreed that, when the Senate adjourns today, it stand adjourned to meet at 10:00 A.M. tomorrow.

On motion of Senator MARTIN, with unanimous consent, the Senate agreed that, following the Joint Assembly, the Senate would stand adjourned.

At 2:43 P.M., on motion of Senator McCONNELL, the Senate receded from business until 6:40 P.M.

The Senate reassembled at 6:40 P.M. and was called to order by the PRESIDENT.

The PRESIDENT appointed Senators PEELER, SETZLER, O'DELL, KNOTTS, SCOTT and WILLIAMS to escort the Honorable Marshall Clement (Mark) Sanford, Governor of South Carolina, and members of his party to the House of Representatives for the Joint Assembly.

At 6:55 P.M., on motion of Senator McCONNELL, the Senate receded from business for the purpose of attending the Joint Assembly.

At 7:00 P.M., the Senate appeared in the Hall of the House.

The PRESIDENT of the Senate called the Joint Assembly to order and announced that it had convened under the terms of H. 3205, a Concurrent Resolution adopted by both Houses.

The Honorable Marshall Clement (Mark) Sanford and members of his party were escorted to the rostrum by Senators PEELER, SETZLER, O'DELL, KNOTTS, SCOTT and WILLIAMS and Representatives Breeland, Brady, Duncan, Mahaffey, Mitchell and James Smith.

The PRESIDENT of the Senate introduced the Honorable Mark C. Sanford, Governor of the State of South Carolina.

The Governor addressed the Joint Assembly as follows:

Mr. Speaker, Mr. President, Ladies and Gentleman of the General Assembly, Constitutional Officers and my fellow South Carolinians:

It's an honor to be with you tonight to deliver my view of the State of our State, but before I do I would like to offer a few "Thank you's."

Last year I mentioned a safety calendar contest in which our third son, Bolton, had made not having your birthday party in Afghanistan his safety tip for the year. It's a long way from "wear a bike helmet" or "don't play with matches," but many young Americans are still having their birthdays in both Afghanistan and Iraq. So before we consider the State of the State this evening, it's worth pausing again to remember our country remains at war.

Whether you agree or disagree with what is going on in the Middle East, in the last year since I spoke here, nine more of our fellow South Carolinians have died in efforts to bring greater freedoms to that part of the world. The service and sacrifice of men and women in uniform should serve as a constant reminder to all of us that freedom is not free. Military families bear this cost, and know the price - and so I ask you to join me in remembering South Carolinians lost in fighting over the last year:

Specialist Anthony C. Owens, USA - Conway

Staff Sergeant Jay T. Collado, USMC - Columbia

2nd Lieutenant Almar L. Fitzgerald, USMC - Lexington

Sergeant John P. Phillips, USMC - St. Stephen

Corporal David G. Weimortz, USMC - Irmo

Specialist Seth A. Hildreth, USA - Myrtle Beach

Private First Class Satieon V. B. Greenlee, USA - Pendleton

Corporal Matthew V. Dillon, USMC - Aiken

Specialist Douglas L. Tinsley, USA - Chester

While I am at it, I want to thank a few other people as well.

I talk a lot about the inefficiency of our government. How, because of our structure, we spend 130 percent the U.S. average on the cost of government. How we need to continue what Governor Carroll Campbell began in changing this government's structure.

I want to again be clear that the faults of our government do not rest with its workers. It rests in its structure, which is in our hands to change - and so I would ask that you join me in recognizing one such worker who is representative of so many who often times work without recognition, like Velvet McGowan, who has worked for the past 20-plus years at the Department of Juvenile Justice.

Finally, I want to recognize a person who is representative of tens of thousands in the private sector who go about their jobs without recognition or praise, and yet are the wellspring of all the money that eventually comes to government to pay for the services of government. Bobby Sheridan, who runs SMS Sportsworld in North Augusta, thank you.

I ask that my Cabinet stand and be recognized for their hard work in administering their respective fields of government.

The State of our State is that we are still a state in transition, and both our opportunities and our challenges stem from the way that the world is changing and in how we choose to respond to those changes.

In our changing world, for the first time a kid in Greenville County is directly competing with a kid in Shanghai, New Delhi or Dublin. As a consequence, the level of competition in our connected world of 6.5 billion souls is at levels never before seen.

China could soon be the largest English speaking country in the world. There will be about another 200 people born in India in the next five minutes, and all of these things will impact the 4 million people who make our state great.

Our opportunities are the opposite side of the same coin. In a global age, where you are on the globe still matters - and we have been blessed by God in our geography. Our location midway on the South-Atlantic Coast opens particular opportunities in areas ranging from distribution to tourism.

The work ethic of our people is a great resource, and we are at the front end of a wave of graying in America that will have profoundly positive implications for this state if we handle the growth that will come with it in a thoughtful manner.

So things are changing and we have to change too.

Where I believe we want to go is to South Carolina being a land of greater opportunity for each one of us in this state and for each one of our children - while at the same time keeping its special sense of place. To South Carolina being a more fertile place to build an idea or a dream into a business - and, therefore, a better place to make a good living and get a great job. To South Carolina being a place where a great education and health care are available to all. To South Carolina being a great place to enjoy a high quality of life with one's family.

In my first Inaugural, I quoted from the book Red Hills and Cotton, and in it a South Carolina tenant farmer described his difficult decision to leave the land for the factory at the turn of the last century. He said simply: "I want to improve my condition. I want to educate my children. I want them to have things better than I have had."

Whether or not a working family is able to affirmatively answer whether one lives in an improving condition is the test of all of our time in politics.

I am pleased to say that we have begun that process of improving conditions here in South Carolina. It has been with starts and stops, at times it has been contentious - and both of those things come with change.

For instance over the last four years, we have taken very serious steps to improving our business climate.

A good business climate means government not spending money it doesn't have, which makes it important that we have dug out of a $1 billion financial hole.

We've gone from losing to gaining jobs, with over 150,000 more people working and 2,500 net more small businesses over the last four years. Last year our Commerce Department had the highest net capital investment in the last 15 years at $1.3 billion.

A good business climate means an Executive Branch budget that is no longer simply a wish list - and we have changed the Executive Branch's level of involvement in the budget process, and in that process saved over $100 million.

A good business climate means not forgetting small business when it comes to economic development, and toward that end we passed tort reform and cut the marginal income tax rate for small businesses.

In education we have fully funded base student cost and funded teacher pay $300 above the Southeast average. In affecting quality of life, we have together moved things as wide ranging as the campaign finance reform bill, for three years now fully funding the Conservation Bank crucial to open space in South Carolina.

We have streamlined agencies so they can do more with what they have, and we see it with results that make a difference in people's lives - whether at DNR in its ability to purchase a property like Hamilton Ridge, or DMV with reduced wait times.

That is where we are, but tonight is as well about where we go to better the lives of South Carolinians in the next year.

For all that we have gotten done, we still have many miles to go in improving our state and the lives of people in our state.

In addressing both the challenges and opportunities before us, let me add two postscripts on how I personally will be confronting the many things we need to improve and change in the way that our state government serves the people of South Carolina.

One, the good Lord and the voters have given me only four more years. That means I'll be saying a whole lot of the Irish prayer in asking God grant me the serenity to accept the things I cannot change, the courage to change the things I can, and the wisdom to know the difference.

Two, I will ask for your leadership. I've come to learn over the last four years in amazingly concrete terms, that in South Carolina the Governor can propose but that it is up to the Legislative Branch to dispose. Change is truly in your hands.

When you talk about something like restructuring and updating a 100-year-old governmental system, each of you will be tested in the choices you make. Each of your respective grandchildren will be blessed or burdened by the choices that are indeed in your hands.

Abraham Lincoln once said, "Nearly all men can stand adversity, but if you want to test a man's character, give him power." And we all know the power to make or walk away from the proposals I will offer is in your hands.

The danger of power lies in the fact that those who are vested with it too often make its preservation their first concern and therefore naturally oppose any changes in the forces that have given them this power.

This means most of you will have to take the road less traveled in politics for our government structure to change. It will mean looking beyond simply power for those who currently wield it to how well the system works. It is my humble and earnest prayer that you will take this course, and I realize some would say I need to keep on praying because there is no way that is happening in our state.

But I don't believe that.

Our differences over the last four years have been well chronicled and documented. It is undeniable that I have had major differences with some of the outcomes of the General Assembly. As is often the case, I believe outcomes of a group can be inferior to the individuals who make up that group, as the outcomes fall prey not to the best ideas - but to whomever can speak the loudest or the longest.

That's a reality, but despite it, I have come to see many of you as real heroes. Many of you were working in your hometown and you decided you wanted to come to Columbia to make a difference just as real as I do.

I need that individual greatness to step forward and show itself over the next year, and the four in front of us, if we are to have real hope of bringing change to South Carolina. I can't possibly make these changes on my own - I need your help.

We also need to think about a number of challenges confronting us not in South Carolina terms, but in global terms. As we think about policy in South Carolina, we need to remember the bumper sticker we've all seen on occasion that says "Think Globally Act Locally."

In this vein, we almost need to think of ourselves as a country rather than a state because as comforting as it might be to be a part of the United States, our competition is no longer in America with North Carolina or Georgia.

South Carolina's Gross State Product is roughly $140 billion a year. That puts us just below Israel, Finland, Venezuela and Ireland in the size of our economy.

It puts our economic size just above the oil-rich United Arab Emirates. It puts us well above places like New Zealand, Slovakia, Bulgaria, Kuwait or Jamaica. The question we all need to ask ourselves is whether or not we see each of our actions as steps toward or against being able to compete economically with other countries.

Finally, as I mentioned in my Inaugural this year, we very much need to focus on getting principles right so that we unleash the power of individual initiative. Nobel Prize winning Economist Milton Friedman once said, "Nobody spends somebody else's money as carefully as he spends his own. Nobody uses somebody else's resources as carefully as he uses his own. So if you want efficiency and effectiveness, if you want knowledge to be properly utilized, you have to do it through the means of individual ownership."

To me that means we should not shy away from the idea of actually limiting government's growth so we move more power and authority to individual South Carolinians - and in turn unleash the potential of individual South Carolinians.

With all this said, here are our priorities for the year.

We believe the number one thing we could do this year to better our state government - and in turn people's lives - is to update and change our government structure. The number one thing we could do in this category is to make DOT a cabinet agency.

I know that some of you are thinking, "Why don't we leave good enough alone?" and the answer lies in the fact that "good enough" won't make us competitive in the new world of which we're a part. In life you can be just a little bit off the mark and completely miss the mark.

Just like a few words can make all the difference, in the same way some would see just a few little things out of place with our structure - but we get a world of difference in the outcomes of our government.

The deliberation of ideas is well done by a committee, but the execution of those ideas can never be well done by a committee because in administration, responsibility - "the buck" if you will - has to stop somewhere. Our government structure is fatally flawed in the way responsibility for outcomes fall to groups of people rather than one person or branch of government - and if everyone is responsible, no one is responsible. This is the case with the committee structure at DOT where our needs are great.

I simply ask for what I have asked for before - your leadership in moving us toward a more balanced and therefore better functioning government - with three more equal branches of government.

To compete in the times we live in it is vital we let the Executive Branch of government do what the Founding Fathers intended, and what occurs in nearly every other state - administer the laws created and approved by the Legislative and Judicial Branches of government.

There is no more pressing case for reform than at DOT, where the agency's budget has outpaced the rest of state government and where we even outpace the Southeastern average - without commensurate results. The Department of Transportation is accountable to the Executive Branch in 47 other states. It needs to be in South Carolina as well.

I furthermore ask on restructuring at large that you simply allow the chance to take a vote on whether or not citizens would like a long list of Constitutional Officers independently elected or a part of the same Executive Branch cabinet.

Health care restructuring continues to be vital to a better-integrated system and consequently better care. The creation of a Department of Administration would bring to the South Carolina governorship administrative oversight now handled by forty-nine other governors. We are the only state in the country with a Budget and Control Board, and allowing its administrative functions to move to a Department of Administration would bring us in line with the 49 other states.

Second, we continue to believe it is vital we take steps each year to continue to better "soil conditions" for business so that we have more in the way of jobs and economic opportunity. This year we propose an economic betterment package of three things: workers' comp reform, an income tax cut and small business health care reform.

Workers' compensation rates in South Carolina are scaring off business investment and killing jobs in our state. Since 2000, S.C. ranks second in terms of workers' compensation rate growth.

Our system is too subjective and penalizes some of the most in need of help. Reforming the Workers' Compensation Commission has become important not just because of rate change, but because there is no consistency of awards, no objective standards, very little use of mediation and very little accountability in the way non-expert advice is relied on and in the way that effects of natural aging can be classified.

The Second Injury Fund has seen skyrocketing assessments. Currently, one third of every dollar in workers' comp premiums goes to the Second Injury Fund, though only about two percent of employers actually receive reimbursements.

To give you a sense of how out of balance our system is - our assessments in this state are 10 times California's, the reverse of what you would expect in our state that also happens to be 10 times smaller than California.

Second in this package, we believe part of our state's ability to compete lies in our competitiveness in different tax categories. As an administration, we have come to agree with many of you who believe that we should take a comprehensive look at our tax system, and we are committed to working with you to look comprehensively at our system.

In the near term though, we need to take steps each year that move us toward being more competitive. On this front, we believe doing what we have called for in our budget - trading off an increase in cigarette tax for a decrease in income taxes would be incredibly timely.

On this point it needs to be remembered that the Democratic Governor of New Mexico, Bill Richardson, cut income tax rates from 8.2 percent to 4.9 percent. Democratic Governor of Oklahoma Brad Henry cut income tax rates from 6.25 percent to 5.25 percent. Democratic Governor of Arizona Janet Napolitano cut income taxes by 10 percent.

Democratic Governor of West Virginia Joe Manchin has called for Legislators to lower a variety of taxes including the income tax, and even Rhode Island - with massive Democratic majorities in its legislature - now offers residents the choice of a flat tax that cuts the top tax rate from 9.9 percent to 5.5 percent. This should not be a partisan issue in our state, just as it has not been in so many others.

Finally, we believe small businesses need help in offering health care plans to their workers. This is important both in addressing the number of uninsured in South Carolina and in addressing a small business's ability to compete.

Currently small businesses are not allowed to band together as big businesses can to find the most affordable health care. They are also saddled with over 30 well-intentioned mandates that make the health care they can offer less affordable; we believe reform that brings flexibility on both fronts is vital and I ask you to join us in advancing reform.

Third, I ask that you help me hold the line on how much government grows this year in South Carolina. I recognize that we all have different perspectives on how much it should grow.

South Carolina spending led the Southeast over the last two years with 25% growth versus the Southeastern average of 13.7% - about half that number. If we spend all the money that comes in over this next year, South Carolina government will have grown 38% since 2004.

State general fund spending will have risen from $5 billion to essentially $7 billion over the last four years, and total spending in South Carolina has grown by 25% over the last three years - as it's risen from $15.5 billion to $19.4 billion. It does not make common sense to grow government faster than people's wallets and pocketbooks.

One of the most unsustainable components of our present budget is tied to retiree benefits that were promised but not paid for. In our case, retiree health care benefits are completely unfunded and amount to a $9.3 billion liability. These unfunded promises have an eerie similarity to the unfunded promises of Medicare, Medicaid and Social Security in Washington.

David Walker is the Comptroller General of the United States of America and is currently embarked on what he calls the "Fiscal Wake-Up Tour." He argues that America will lose its competitive position in the world if we as a country don't subscribe to the common sense notion that families and businesses adhere to in matching costs with benefits.

In an effort to avoid financial explosions every state must now account for its long-term liabilities, and in South Carolina alone, $535 million would be required to fully fund this year's portion.

Holding the line on spending to population plus inflation is necessary to avoid growing government by 38 percent over four years, it's necessary to set aside money to pay for unfunded and promised benefits, and it's necessary if we're going to return $200 million to taxpayers this year.

If we don't hold the line on spending this year I am also certain we are going to crawl right back into the financial hole we just spent four years climbing out of. This will mean mid-year level budget cuts, which are bad for anyone relying on government.

It will mean cuts past muscle and right into bone in agencies we are now adequately funding. I implore you not to spend all this money projected to come our way. There are serious storm clouds on the financial horizon as the U.S. trade deficit in 2006 was right at $878 billion, the savings rate in this country has gone flat and housing markets across the country are cooling.

It isn't just about the sustainability of spending - it is also about change. Think about it - if you really believe that we live in one of the most transformative times in world history, then wouldn't you want to maximize the part of your economy that will change the fastest? Money in the private sector can be redirected faster than money in the public sector.

More than anything, this whole spending debate is about common sense notions. Most folks tell me they agree with the principal of "first things first" and that it makes sense to pay off money you have committed to spend before you begin new spending. They tell me it doesn't make sense to grow government faster than people's ability to pay for it.

On this front I ask just two things. One, as I mentioned earlier, adopt what we laid out in our budget in setting aside money for the $9 billion health care liability, and two, limit this year's growth in government to population plus inflation so we can do so.

Finally, enhancing the quality of one's life in South Carolina is critical to fully answering the charge put to each of us in the book Red Hills and Cotton. This year the top three things on our list are DUI reform, further education reform and $20 million for land conservation.

On DUI there is nothing more fundamental to quality of life than life itself. Tragically, people are being robbed of their lives in South Carolina because of anemic DUI laws.

I believe it is morally wrong that Tony Howard, a husband and father of three who lived in the Upstate, died because of our weak DUI laws, killed by a drunk driver in 2002. The drunk driver had already racked up five DUI convictions in South Carolina and two more in North Carolina.

Each time though, he was either let off without a major penalty or allowed to plead to a lesser offence. Finally, on the eighth offense, this drunk driver killed Tony. This is not acceptable - we have to change the way DUI laws are enforced in this state and I ask we do it this year.

I have talked a lot about open space and in this year's budget have even proposed another $20 million for land conservation because we are running out of time in preserving glimpses of the South Carolina so many of us grew up with. The demographic change that is an engine of growth brings with it the seeds to destroy a sizable portion of the open space that many of us consider important in our choice to make South Carolina home. I ask for your quick action on this measure.

I continue to believe passionately that a parent ought to be able to decide what school works best for their child, and as a consequence believe in the need for choice in education and market based solutions to education. It therefore strikes me that as we deal with education funding this year in the wake of last year's property tax reform - we have two readily achievable outcomes in this area.

One, I think moving toward a single weighted funding formula is not only something we can do, but it would also move us toward greater educational equality in South Carolina and open avenues by which more educational choices could become available in South Carolina.

Two, let's recognize our wide-ranging school district sizes and structures for what they are - in some cases a throwback to the era of segregation, and so let's instead move toward a system of one district per county.

At the end of the day, I don't believe our current testing efforts or additional spending can ultimately replace the power of a parent putting his or her child into a school setting that works for them. I continue to believe choice is crucial to bettering education and will embrace the chance to work with any and all of you on reforms.

To keep my list short and attainable, I stop here in the things I ask you to consider.

There are a few other things that are worth highlighting though as we consider the State of our State, and so I will mention them as well.

We will work with many of you this year in addressing what has become a crisis for many families and businesses in paying for, or even having access to, property insurance on the coast.

I think it is important we advance market based remedies that don't penalize people living at the opposite end of the state, or the next generation, as has been the remedy of some states.

Specifically, we believe a catastrophe fund whose cost is borne by people and commercial interests directly impacted by storms makes sense when combined with catastrophe savings accounts that encourage people to save for the losses that can come with a storm and tax deductions for mitigation measures that reward people for making their property more resistant to a storm's damages.

Since insurance is fundamentally about paying for damages after they've been incurred and offsetting the risk of damage before it occurs, I think it is also important we examine the root cause of the damages themselves. Toward that end, we will propose two things this year.

First, a climate change stakeholders' conference. I join others in believing climate change will impact the intensity of upcoming storms. It goes without saying that from South Carolina we can't impact what might be happening in China or India with CO2 emissions, but we probably could incentivize building codes that are more energy-efficient and wind-resistant in the event of hurricanes. So we plan to fully explore those issues with a range of stakeholders over the next year.

Second, insurance rates are being impacted by the rate of growth on the coast, and accordingly we need to take a closer look at how we develop as a state given the fact that a million people are coming here between now and 2030. During roughly the same time period, we're projected to have $57 billion in infrastructure needs.

What this means is that in some of the high-growth areas along the coast, no matter how many lanes you build, we will have evacuation and density problems that in turn impact the cost of insurance on the coast.

In looking for long term solutions, it is our hope to invite Andrés Duany, a world renowned architect and community planner, for a land use and planning conference that may well afford local county planners more market-based tools as they deal with growth issues in their respective counties.

In health we will continue to try and raise awareness of the importance of taking steps to become more active. Lifestyle - not money - could add years and quality to every one of our lives. It needs to be remembered that we rank 47th nationwide in overall health while ranking 11th in public health care spending per capita. We will be doing another Family Fitness Challenge this year and hope you will join us.

In closing, my simple hope and prayer is that as we deal with these and other issues - as well as each other - this year, that we would live and walk Micah 6:8 - Doing with justice that which we are charged to do, embracing with mercy all affected by what we do, and most of all walking humbly with each other and those we serve in this state.

I look forward to working with each of you this year. Thank you and good night.

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

On motion of Senators RITCHIE, ALEXANDER, ANDERSON, BRYANT, CAMPSEN, CLEARY, COURSON, CROMER, DRUMMOND, ELLIOTT, FAIR, FORD, GREGORY, GROOMS, HAWKINS, HAYES, HUTTO, JACKSON, KNOTTS, LAND, LEATHERMAN, LEVENTIS, LOURIE, MALLOY, MARTIN, MATTHEWS, McCONNELL, McGILL, MESCHER, MOORE, O'DELL, PATTERSON, PEELER, PINCKNEY, RANKIN, REESE, RICHARDSON, RYBERG, SCOTT, SETZLER, SHEHEEN, SHORT, THOMAS, VAUGHN, VERDIN and WILLIAMS, with unanimous consent, the Senate stood adjourned out of respect to the memory of legendary singer, James Brown, known as the "Godfather of Soul." Born in Barnwell, S.C., Mr. Brown was a founder of rap, funk and disco music and was a founding inductee of the Rock and Roll Hall of Fame. He died at age 73.

At 7:48 P.M., on motion of Senator McCONNELL, the Senate adjourned to meet tomorrow at 10:00 A.M.

This web page was last updated on Monday, June 22, 2009 at 2:01 P.M.