South Carolina General Assembly
117th Session, 2007-2008
Journal of the Senate

Printed Page 2983 . . . . . Wednesday, May 30, 2007

Wednesday, May 30, 2007
(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:

Hear God's Word from I Kings, Chapter 6:

"In the four hundred and eightieth year after the Israelites had come out of Egypt, in the fourth year of Solomon's reign over Israel, in the month of Ziv,   the second month, he began to build the temple of the Lord."     (I Kings 6:1)

Let us pray:

O Lord, we're not always certain what to make of references to actual time in Holy Scriptures. But we certainly know this: the sand in this Senate's hourglass continues to fall; we're drawing closer and closer to the end of this year's Session; and, clearly, the tasks before this Body are far from being completed. This knowledge, this reality, plays havoc with the nerves of many in this place! Yet we also know, dear God, that just as you were with Solomon every moment, so are you with each of us. May that very knowledge ease our anxieties and renew our determination to continue working hard for your glory here in this Senate Chamber. Bless each of these Your servants, Lord. Amen.

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

Doctor of the Day

Senator LEVENTIS introduced Dr. J. Capers Hiott of Wedgefield, S.C., Doctor of the Day.

S. 726--CO-SPONSOR ADDED

S. 726 (Word version) -- Senators Grooms, McGill, Rankin, Cleary, Reese, Bryant, Alexander, O'Dell, Verdin, Ford, Williams, McConnell, Short, Knotts, Land, Setzler, Malloy, Leatherman, Jackson, Hayes, Scott, Peeler, Sheheen, Thomas, Ryberg, Patterson, Vaughn, Fair, Hutto, Pinckney, Gregory, Moore, Anderson, Drummond, Hawkins, Campsen, Courson, Cromer, Matthews and Ritchie: A BILL TO AMEND CHAPTER 29,

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TITLE 59 OF THE 1976 CODE, RELATING TO SUBJECTS OF INSTRUCTION IN PUBLIC SCHOOLS, BY ADDING SECTION 59-29-230, TO PROVIDE THAT THE BOARD OF TRUSTEES OF ANY STATE SCHOOL DISTRICT MAY OFFER AN ELECTIVE COURSE TEACHING THE HISTORY AND LITERATURE OF THE OLD TESTAMENT ERA AND AN ELECTIVE COURSE TEACHING THE HISTORY AND LITERATURE OF THE NEW TESTAMENT ERA; TO PROVIDE THAT THE COURSES MUST BE TAUGHT IN AN OBJECTIVE MANNER WITH NO ATTEMPT TO INDOCTRINATE STUDENTS; TO PROVIDE THAT THE STATE BOARD OF EDUCATION MUST DEVELOP AND ADOPT ACADEMIC STANDARDS AND APPROPRIATE INSTRUCTIONAL MATERIALS FOR THE COURSES; AND TO PROVIDE FOR OVERSIGHT OF THE CLASSES BY THE LOCAL BOARD OF TRUSTEES.

On motion of Senator MARTIN, with unanimous consent, the name of Senator MARTIN was added as a co-sponsor of S. 726.

INTRODUCTION OF BILLS AND RESOLUTIONS

The following were introduced:

S. 797 (Word version) -- Senators Hutto, Land and Lourie: A BILL TO AMEND TITLE 50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO FISH, GAME, AND WATERCRAFT, SO AS TO ENACT "CHANDLER'S LAW" BY ADDING CHAPTER 26 SO AS TO PROVIDE FOR REGULATION OF THE OPERATION OF ALL-TERRAIN VEHICLES BY THE DEPARTMENT OF NATURAL RESOURCES, INCLUDING THE REQUIREMENT THAT A PERSON AT LEAST SIX AND NOT OVER SIXTEEN YEARS OF AGE MUST COMPLETE A SAFETY COURSE BEFORE HE MAY OPERATE AN ALL-TERRAIN VEHICLE AND MUST ALSO MEET AGE REQUIREMENTS SPECIFIC TO THE VEHICLE, TO PROVIDE THAT ALL-TERRAIN VEHICLES ARE EXEMPT FROM AD VALOREM TAXES BEGINNING WITH CALENDAR YEAR 2007, AND TO PROVIDE PENALTIES FOR CERTAIN VIOLATIONS; AND TO AMEND CHAPTER 3, TITLE 56, RELATING TO MOTOR VEHICLE REGISTRATION AND LICENSING, BY ADDING ARTICLE 10 SO AS TO PROVIDE A PROCEDURE FOR THE TITLING OF ALL-TERRAIN VEHICLES.
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Objection

Senator HUTTO asked unanimous consent to make a motion that the Bill be placed on the Calendar without reference.

Senator CAMPSEN objected.

Read the first time and referred to the Committee on Fish, Game and Forestry.

Senator HUTTO spoke on the Bill.

S. 798 (Word version) -- Senator Cleary: A BILL TO AMEND SECTION 40-15-110, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EXEMPTIONS FROM CHAPTER 15 OF TITLE 40 REGULATING DENTISTS AND DENTAL HYGIENISTS, SO AS TO FURTHER SPECIFY THE SCOPE OF ACTIVITIES OF INTERNS AND RESIDENTS WHO ARE EXEMPT FROM LICENSURE; AND TO AMEND SECTION 40-15-360, RELATING TO THE AUTHORIZATION OF PHARMACISTS TO FILL PRESCRIPTIONS FOR DENTISTS, SO AS TO EXTEND THIS AUTHORIZATION TO INTERNS AND RESIDENTS UNDER CERTAIN CONDITIONS.
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Read the first time and referred to the Committee on Medical Affairs.

S. 799 (Word version) -- Senator Hayes: A BILL TO AMEND SECTION 40-47-755 OF THE 1976 CODE, RELATING TO PHYSICIANS, SURGEONS, AND OSTEOPATHS, TO DELETE THE REQUIREMENT THAT AURICULAR DETOXIFICATION THERAPY TAKE PLACE UNDER THE DIRECT SUPERVISION OF A LICENSED ACUPUNCTURIST.
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Read the first time and referred to the Committee on Medical Affairs.

S. 800 (Word version) -- Senator Elliott: A BILL TO AMEND SECTION 12-37-220, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO GENERAL EXEMPTION FROM PROPERTY TAX, SO AS TO EXEMPT FROM THE PROPERTY TAX SIXTY-TWO PERCENT OF THE FAIR MARKET VALUE OF A WATERCRAFT AND ITS MOTOR, IF IT IS NOT ATTACHED TO THE WATERCRAFT; AND TO AMEND SECTION 12-37-714,

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RELATING TO PROPERTY TAX ON BOATS WITH SITUS IN SOUTH CAROLINA, SO AS TO INCREASE THE NUMBER OF DAYS A BOAT THAT IS USED IN INTERSTATE COMMERCE MUST BE PRESENT IN THE STATE TO BE SUBJECT TO THE PROPERTY TAX FROM THIRTY DAYS TO NINETY DAYS, AND TO INCREASE THE NUMBER OF DAYS A BOAT THAT IS NOT USED IN INTERSTATE COMMERCE MUST BE PRESENT IN THE STATE FROM SIXTY CONSECUTIVE DAYS TO ONE HUNDRED TWENTY CONSECUTIVE DAYS.
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Read the first time and referred to the Committee on Finance.

S. 801 (Word version) -- Senator Vaughn: A CONCURRENT RESOLUTION CONGRATULATING R. DENNIS HENNETT OF GREER ON THE OCCASION OF HIS RETIREMENT AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GREER STATE BANK AND EXTENDING TO HIM THE BEST WISHES OF THE MEMBERS OF THE GENERAL ASSEMBLY FOR GOOD HEALTH AND HAPPINESS IN THE YEARS TO COME.
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The Concurrent Resolution was adopted, ordered sent to the House.

S. 802 (Word version) -- Senator Jackson: A CONCURRENT RESOLUTION TO RECOGNIZE THE SOUTH CAROLINA DEPARTMENT OF ALCOHOL AND OTHER DRUG ABUSE SERVICES (DAODAS) AND ITS PREDECESSORS FOR FIFTY YEARS OF DEDICATED SERVICE TO THE CITIZENS OF SOUTH CAROLINA.
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The Concurrent Resolution was adopted, ordered sent to the House.

S. 803 (Word version) -- Senators Matthews and Hutto: A CONCURRENT RESOLUTION TO RECOGNIZE AND COMMEND MR. GILBERT A. HOFFMAN, JR. OF ORANGEBURG COUNTY ON THE OCCASION OF HIS RETIREMENT FROM THE ORANGEBURG COUNTY BOARD OF ELECTIONS AND REGISTRATION.
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The Concurrent Resolution was adopted, ordered sent to the House.

S. 804 (Word version) -- Senator Alexander: A BILL TO AMEND ACT 604 OF 1994, RELATING TO THE CREATION OF THE REGISTRATION AND ELECTIONS COMMISSION FOR OCONEE COUNTY, SO AS

Printed Page 2987 . . . . . Wednesday, May 30, 2007
TO AUTHORIZE THE COMMISSION TO APPOINT AND REMOVE THE EXECUTIVE DIRECTOR.
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Read the first time and ordered placed on the Local and Uncontested Calendar.

S. 804--Ordered to a Second and Third Reading

On motion of Senator ALEXANDER, with unanimous consent, S. 804 was ordered to receive a second and third reading on the next two consecutive legislative days.

S. 805 (Word version) -- Senators Matthews and Hutto: A CONCURRENT RESOLUTION EXPRESSING THE APPRECIATION OF THE MEMBERS OF THE SOUTH CAROLINA GENERAL ASSEMBLY FOR THE DISTINGUISHED CAREER IN PUBLIC SERVICE OF MS. DOROTHY D. KENNERLY ON THE OCCASION OF HER RETIREMENT FROM THE ORANGEBURG COUNTY BOARD OF ELECTIONS AND REGISTRATION.
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The Concurrent Resolution was adopted, ordered sent to the House.

S. 806 (Word version) -- Senators Sheheen and Lourie: A SENATE RESOLUTION RECOGNIZING AND HONORING SYDNEY BUTLER FOR HIS TIRELESS DEDICATION, COMMITMENT, AND ADVOCACY ON BEHALF OF PEOPLE WITH EPILEPSY.
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The Senate Resolution was adopted.

H. 4169 (Word version) -- Reps. Hart, Agnew, Alexander, Allen, Anderson, Anthony, Bales, Ballentine, Bannister, Barfield, Battle, Bedingfield, Bingham, Bowen, Bowers, Brady, Branham, Brantley, Breeland, G. Brown, R. Brown, Cato, Ceips, Chalk, Chellis, Clemmons, Clyburn, Cobb-Hunter, Coleman, Cooper, Cotty, Crawford, Dantzler, Davenport, Delleney, Duncan, Edge, Frye, Funderburk, Gambrell, Govan, Gullick, Hagood, Haley, Hamilton, Hardwick, Harrell, Harrison, Harvin, Haskins, Hayes, Herbkersman, Hinson, Hiott, Hodges, Hosey, Howard, Huggins, Jefferson, Jennings, Kelly, Kennedy, Kirsh, Knight, Leach, Limehouse, Littlejohn, Loftis, Lowe, Lucas, Mack, Mahaffey, McLeod, Merrill, Miller, Mitchell, Moody-Lawrence, Moss, Mulvaney, J. H. Neal, J. M. Neal, Neilson, Ott, Owens, Parks, Perry, Phillips, Pinson, E. H. Pitts, M. A. Pitts, Rice, Rutherford, Sandifer, Scarborough, Scott,

Printed Page 2988 . . . . . Wednesday, May 30, 2007
Sellers, Shoopman, Simrill, Skelton, D. C. Smith, F. N. Smith, G. M. Smith, G. R. Smith, J. E. Smith, J. R. Smith, W. D. Smith, Spires, Stavrinakis, Stewart, Talley, Taylor, Thompson, Toole, Umphlett, Vick, Viers, Walker, Weeks, Whipper, White, Whitmire, Williams, Witherspoon and Young: A CONCURRENT RESOLUTION TO COMMEND MRS. LINDA JONES SEAWRIGHT, MANAGER OF THE LIBRARY ANNEX OF THE UNIVERSITY OF SOUTH CAROLINA THOMAS COOPER LIBRARY, FOR HER OUTSTANDING SERVICE UPON THE OCCASION OF HER RETIREMENT, AND TO WISH HER MUCH SUCCESS AND HAPPINESS IN ALL HER FUTURE ENDEAVORS.

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

H. 4170 (Word version) -- Rep. W. D. Smith: A CONCURRENT RESOLUTION TO HONOR AND COMMEND ONE OF SOUTH CAROLINA'S MOST GENEROUS VOLUNTEERS AND PHILANTHROPISTS, MRS. MARTHA CHAPMAN OF SPARTANBURG, FOR A LIFETIME OF COMPASSIONATE AND CARING SUPPORT OF SO MANY WORTHWHILE ENTITIES AND ENDEAVORS INCLUDING THE SOUTH CAROLINA SCHOOL FOR THE DEAF AND THE BLIND AND WOFFORD COLLEGE, AND TO CONGRATULATE HER UPON HER RECEIPT OF THE DOUGLAS F. DENT DISTINGUISHED SERVICE AWARD FROM THE SOUTH CAROLINA SCHOOL FOR THE DEAF AND THE BLIND AND UPON THE OPENING EARLIER THIS YEAR OF THE MARTHA CLOUD CHAPMAN GALLERY AT WOFFORD COLLEGE.

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

RECALLED

H. 4087 (Word version) -- Reps. G. Brown, Lowe, J.H. Neal, G.M. Smith and Weeks: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION NAME THE INTERCHANGE LOCATED AT THE INTERSECTION OF UNITED STATES HIGHWAY 521 AND SOUTH CAROLINA HIGHWAY 441 IN SUMTER COUNTY THE "C. FRED MCLAUGHLIN MEMORIAL INTERCHANGE" AND ERECT APPROPRIATE MARKERS OR SIGNS AT THIS INTERCHANGE THAT CONTAIN

Printed Page 2989 . . . . . Wednesday, May 30, 2007
THE WORDS "C. FRED MCLAUGHLIN MEMORIAL INTERCHANGE".

Senator GROOMS 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 and ordered placed on the Calendar for consideration tomorrow.

RECALLED

H. 4097 (Word version) -- Reps. Ballentine, Huggins, Agnew, Alexander, Allen, Anderson, Anthony, Bales, Bannister, Barfield, Battle, Bedingfield, Bingham, Bowen, Bowers, Brady, Branham, Brantley, Breeland, G. Brown, R. Brown, Cato, Ceips, Chalk, Chellis, Clemmons, Clyburn, Cobb-Hunter, Coleman, Cooper, Cotty, Crawford, Dantzler, Davenport, Delleney, Duncan, Edge, Frye, Funderburk, Gambrell, Govan, Gullick, Hagood, Haley, Hamilton, Hardwick, Harrell, Harrison, Hart, Harvin, Haskins, Hayes, Herbkersman, Hinson, Hiott, Hodges, Hosey, Howard, Jefferson, Jennings, Kelly, Kennedy, Kirsh, Knight, Leach, Limehouse, Littlejohn, Loftis, Lowe, Lucas, Mack, Mahaffey, McLeod, Merrill, Miller, Mitchell, Moody-Lawrence, Moss, Mulvaney, J.H. Neal, J.M. Neal, Neilson, Ott, Owens, Parks, Perry, Phillips, Pinson, E.H. Pitts, M.A. Pitts, Rice, Rutherford, Sandifer, Scarborough, Scott, Sellers, Shoopman, Simrill, Skelton, D.C. Smith, F.N. Smith, G.M. Smith, G.R. Smith, J.E. Smith, J.R. Smith, W.D. Smith, Spires, Stavrinakis, Stewart, Talley, Taylor, Thompson, Toole, Umphlett, Vick, Viers, Walker, Weeks, Whipper, White, Whitmire, Williams, Witherspoon and Young: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION NAME THE PORTION OF OLD TAMAH ROAD IN RICHLAND COUNTY FROM ITS INTERSECTION WITH KOON ROAD TO ITS INTERSECTION WITH OLD BRICKYARD ROAD "CORPORAL DAVID G. WEIMORTZ MEMORIAL HIGHWAY" AND ERECT APPROPRIATE MARKERS OR SIGNS ALONG THIS PORTION OF HIGHWAY THAT CONTAIN THE WORDS "CORPORAL DAVID G. WEIMORTZ MEMORIAL HIGHWAY".

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

There was no objection.

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

REPORTS OF STANDING COMMITTEES

Senator SHEHEEN from the Committee on Judiciary submitted a favorable with amendment report on:

S. 110 (Word version) -- Senators Thomas, Elliott and Knotts: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY DESIGNATING THE EXISTING SECTIONS OF CHAPTER 22, TITLE 17 AS ARTICLE 1 AND BY ADDING ARTICLE 3 SO AS TO ENACT THE "UNIFORM EXPUNGEMENT OF CRIMINAL RECORDS ACT", TO PROVIDE A PROCEDURE WHICH MUST BE FOLLOWED REGARDING APPLICATIONS FOR EXPUNGEMENT OF ALL CRIMINAL RECORDS, AND TO AUTHORIZE EACH SOLICITOR'S OFFICE IN THE STATE TO ADMINISTER THE PROCEDURE.

Ordered for consideration tomorrow.

Senator LEATHERMAN from the Committee on Finance submitted a favorable report on:

S. 642 (Word version) -- Senator Thomas: A BILL TO AMEND SECTION 6-5-15 AND SECTION 11-13-60, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE COLLATERAL REQUIRED TO SECURE THE UNINSURED FUNDS ON DEPOSIT OF A LOCAL GOVERNMENT ENTITY AND THE STATE, SO AS TO DEFINE A FINANCIAL INSTITUTION IN WHICH THESE FUNDS ARE DEPOSITED AS A QUALIFIED PUBLIC DEPOSITORY, TO ALLOW SUCH A DEPOSITORY TO SECURE THESE FUNDS USING THE DEDICATED METHOD OR THE POOLING METHOD, AND TO PROVIDE THAT THE LOCAL GOVERNMENT ENTITY OR STATE TREASURER MAY REQUIRE SUCH A DEPOSITORY TO USE THE DEDICATED METHOD.

Ordered for consideration tomorrow.

Senator LEATHERMAN from the Committee on Finance submitted a favorable report on:

S. 652 (Word version) -- Senators Lourie, Alexander, Anderson, Bryant, Campsen, Cleary, Courson, Cromer, Drummond, Elliott, Fair, Ford, Gregory, Grooms, Hawkins, Hayes, Hutto, Jackson, Knotts, Land, Leatherman, Leventis, Malloy, Martin, Matthews, McConnell, McGill, Mescher,

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Moore, O'Dell, Patterson, Peeler, Pinckney, Rankin, Reese, Ritchie, Ryberg, Scott, Setzler, Sheheen, Short, Thomas, Vaughn, Verdin and Williams: A BILL TO AMEND SECTION 12-37-250, AS AMENDED, RELATING TO THE HOMESTEAD PROPERTY TAX EXEMPTION FOR PERSONS WHO HAVE ATTAINED AGE SIXTY-FIVE, OR WHO ARE PERMANENTLY AND TOTALLY DISABLED, OR WHO ARE LEGALLY BLIND, SO AS TO ALLOW THE APPLICATION FOR THE EXEMPTION TO BE MADE BY MAIL OR BY INTERNET AND PROVIDE THE CIRCUMSTANCES WHEN MAIL OR INTERNET APPLICATIONS MAY BE PROCESSED.

Ordered for consideration tomorrow.

Senator MOORE from the Committee on Judiciary submitted a majority favorable with amendment and Senator VAUGHN a minority unfavorable report on:

S. 714 (Word version) -- Senators Leatherman, Reese, Alexander, Patterson, Moore, Thomas, Williams, Ford, Hutto, Malloy, Anderson, Martin, Elliott, Land, O'Dell, Cleary, Rankin, Knotts, Scott, Cromer, Matthews, Pinckney, McGill, Hayes, Drummond, Hawkins, Lourie and Jackson: A BILL TO AMEND SECTION 2-17-10, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS USED REGARDING LOBBYISTS AND LOBBYING, SO AS TO DEFINE A "POLITICAL AWARENESS ORGANIZATION"; BY ADDING SECTION 2-17-27 SO AS TO PROVIDE FOR THE MANNER OF REGISTRATION OF POLITICAL AWARENESS ORGANIZATIONS; BY ADDING SECTION 2-17-37 SO AS TO PROVIDE FOR THE FILING OF A CERTIFIED CONTRIBUTION REPORT BY A POLITICAL AWARENESS ORGANIZATION; AND TO AMEND SECTION 2-17-130, RELATING TO PENALTIES FOR VIOLATIONS BY LOBBYISTS OR LOBBYIST'S PRINCIPALS, SO AS TO PROVIDE A PENALTY FOR A POLITICAL AWARENESS ORGANIZATION WHICH WILFULLY VIOLATES THE PROVISIONS OF CHAPTER 17, TITLE 2, LOBBYISTS AND LOBBYING.

Ordered for consideration tomorrow.

Senator CAMPSEN from the Committee on Judiciary submitted a favorable with amendment report on:

H. 3033 (Word version) -- Reps. Clemmons, Mahaffey and Cotty: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY

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ADDING SECTION 29-3-345 SO AS TO PROVIDE FOR A DOCUMENT OF RESCISSION TO CORRECT AN ERRONEOUS RECORDING OF A SATISFACTION OF A MORTGAGE OR OTHER LIEN AFFECTING REAL PROPERTY, TO PROTECT A PRIORITY CREDITOR WHO RECORDS AFTER THE ERRONEOUS RECORDING, TO PROVIDE A CIVIL CAUSE OF ACTION FOR A PERSON INJURED BY A WRONGFUL RECORDING OF A DOCUMENT OF RESCISSION, TO ESTABLISH A RECORDING FEE, AND TO PROVIDE A FORM FOR THE DOCUMENT.

Ordered for consideration tomorrow.

Senator MOORE from the Committee on Judiciary submitted a majority favorable with amendment and Senator JACKSON a minority unfavorable report on:

H. 3116 (Word version) -- Reps. W.D. Smith, Cooper and Mahaffey: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 11 TO CHAPTER 3, TITLE 14 SO AS TO CREATE THE COURT APPOINTMENT DEFERRAL FUND TO BE MAINTAINED BY THE SUPREME COURT IN ACCORDANCE WITH THE PROCEDURE FOR SUBMISSION OF RULES GOVERNING PRACTICE AND PROCEDURE.

Ordered for consideration tomorrow.

Senator LEATHERMAN from the Committee on Finance submitted a favorable report on:

H. 3239 (Word version) -- Reps. Funderburk, Cato and Mahaffey: A JOINT RESOLUTION TO AUTHORIZE THE SOUTH CAROLINA EMPLOYMENT SECURITY COMMISSION TO EXPEND UP TO FIVE HUNDRED THOUSAND DOLLARS OF THE FUNDS MADE AVAILABLE TO THE STATE UNDER SECTION 903 OF THE SOCIAL SECURITY ACT, AS AMENDED, FOR THE PURPOSE OF ACQUIRING LAND ON WHICH TO ERECT A BUILDING FOR USE BY THE SOUTH CAROLINA EMPLOYMENT SECURITY COMMISSION IN SPARTANBURG COUNTY.

Ordered for consideration tomorrow.

Senator LEATHERMAN from the Committee on Finance submitted a favorable report on:

H. 3358 (Word version) -- Reps. Kirsh and Cotty: A BILL TO REPEAL SECTION 8-11-10, CODE OF LAWS OF SOUTH CAROLINA, 1976,

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RELATING TO THE OFFICE HOURS OF STATE AGENCIES; AND TO REPEAL SECTION 11-5-30 RELATING TO THE OFFICE HOURS OF THE STATE TREASURER.

Ordered for consideration tomorrow.

Senator LEATHERMAN from the Committee on Finance submitted a favorable with amendment report on:

H. 3568 (Word version) -- Reps. Thompson and Bedingfield: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-43-233 SO AS TO PROVIDE ADDITIONAL "AGRITOURISM" USES FOR AGRICULTURAL REAL PROPERTY THAT DOES NOT AFFECT THE ELIGIBILITY OF THE PROPERTY FOR AGRICULTURAL USE CLASSIFICATION FOR PURPOSES OF THE PROPERTY TAX.

Ordered for consideration tomorrow.

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

H. 3569 (Word version) -- Reps. Harrell, Loftis, Govan, Merrill, Simrill, Bingham, Shoopman, Bannister, Haley, Bedingfield, Mitchell, Herbkersman, F.N. Smith, Anderson, Anthony, Bales, Barfield, Bowen, Bowers, R. Brown, Cato, Cooper, Davenport, Duncan, Edge, Frye, Funderburk, Hardwick, Harrison, Harvin, Hayes, Hinson, Hiott, Howard, Jennings, Limehouse, Littlejohn, Lowe, Lucas, Mahaffey, Miller, Neilson, Owens, Pinson, M.A. Pitts, Rice, Sandifer, J.R. Smith, Taylor, Umphlett, Whitmire, Witherspoon, Young, Knight, Talley, Walker, Ballentine and Hart: A JOINT RESOLUTION TO CREATE THE SOUTH CAROLINA WIRELESS TECHNOLOGY AND COMMUNICATIONS COMMISSION FOR THE PURPOSE OF IMPLEMENTING A STATEWIDE WIRELESS BROADBAND NETWORK AND TO PROVIDE FOR ITS MEMBERSHIP, POWERS, AND DUTIES.

Ordered for consideration tomorrow.

Senator HAWKINS from the Committee on Judiciary submitted a favorable with amendment report on:

H. 3572 (Word version) -- Reps. Hagood, Rutherford, Bales, Barfield, Branham, G. Brown, Cato, Ceips, Chalk, Coleman, Edge, Gullick, Hardwick, Hayes, Jefferson, Jennings, Limehouse, Littlejohn, Mack, McLeod, Ott, Pinson, Sandifer, Scott, W.D. Smith, Spires, Talley, White, Hart, Whipper and Cotty: A BILL TO AMEND CHAPTER 22, TITLE 17,

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CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PRETRIAL INTERVENTION PROGRAM BY DESIGNATING THE EXISTING SECTIONS AS ARTICLE 1 AND BY ADDING ARTICLE 3 SO AS TO CREATE THE "TRAFFIC DIVERSION PROGRAM ACT", TO PROVIDE THAT EACH SOLICITOR HAS THE AUTHORITY TO ESTABLISH A PROGRAM FOR PERSONS WHO COMMIT TRAFFIC-RELATED OFFENSES PUNISHABLE BY A FINE OR LOSS OF POINTS, TO PROVIDE THAT THE SOLICITOR IS AUTHORIZED TO CONTRACT FOR SERVICES WITH THE APPROPRIATE MUNICIPALITY OR COUNTY, AND TO PROVIDE PROCEDURES FOR THE OPERATION OF A TRAFFIC DIVERSION PROGRAM AND REQUIREMENTS FOR PERSONS DESIRING TO ENTER A PROGRAM.

Ordered for consideration tomorrow.

Senator HAWKINS from the Committee on Judiciary submitted a favorable with amendment report on:

H. 3771 (Word version) -- Reps. Harrison and Bales: A BILL TO AMEND SECTION 23-15-110, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PROHIBITION ON A SHERIFF, DEPUTY SHERIFF, OR SHERIFF'S CLERK FROM PRACTICING LAW OR HOLDING THE OFFICE OF CLERK OF COURT, SO AS TO REMOVE THE PROHIBITION REGARDING THE PRACTICE OF LAW.

Ordered for consideration tomorrow.

Senator LEATHERMAN from the Committee on Finance submitted a favorable report on:

H. 3812 (Word version) -- Reps. G.M. Smith, Weeks and Ceips: A BILL TO AMEND SECTION 6-1-320, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE LIMIT ON PROPERTY TAX MILLAGE INCREASES, SO AS TO PROVIDE FOR A MILLAGE RATE LIMITATION TO PURCHASE RESIDENTIAL DEVELOPMENT RIGHTS IN UNDEVELOPED PROPERTY NEAR MILITARY INSTALLATIONS TO PREVENT ADDITIONAL RESIDENTIAL DEVELOPMENT NEAR THOSE MILITARY INSTALLATIONS.

Ordered for consideration tomorrow.

Senator HAWKINS from the Committee on Judiciary submitted a favorable with amendment report on:

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H. 3817 (Word version) -- Reps. G.M. Smith, Weeks and G. Brown: A BILL TO AMEND SECTION 16-17-680, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE UNLAWFUL PURCHASE OR TRANSPORTATION OF COPPER WIRE OR COPPER PIPE, SO AS TO INCLUDE ALUMINUM AND PRODUCTS CONTAINING A MIXTURE OF COPPER AND ALUMINUM AND TO PROVIDE AN EXCEPTION FOR ALUMINUM CANS.

Ordered for consideration tomorrow.

Senator LEATHERMAN from the Committee on Finance submitted a favorable with amendment report on:

H. 3826 (Word version) -- Rep. White: A BILL TO AMEND SECTION 9-1-580, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CERTAIN PERSONNEL IN A HOSPITAL UNDER THE STATE RETIREMENT SYSTEM HAVING THE OPTION OF JOINING THE RETIREMENT SYSTEM, SO AS TO EXTEND THIS OPTION TO PHYSICIANS, TO PROVIDE THAT THIS OPTION IS IRREVOCABLE, AND TO PROVIDE THE METHOD BY WHICH SERVICE CREDIT MUST BE ESTABLISHED FOR A PERSON ENTITLED TO RETIREMENT BENEFITS.

Ordered for consideration tomorrow.

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

H. 3989 (Word version) -- Reps. Davenport, Haskins, Bedingfield, G.R. Smith, Ceips, Duncan, Littlejohn, Witherspoon, Agnew, Brantley, Chellis, Frye, Kelly, M.A. Pitts, Taylor, Young, Funderburk and Mulvaney: A CONCURRENT RESOLUTION TO MEMORIALIZE CONGRESS TO REPEAL OR DECLINE IMPLEMENTATION OF THE "REAL ID ACT OF 2005" AND TO OPPOSE THE CREATION OF A FEDERAL NATIONAL IDENTIFICATION CARD.

Ordered for consideration tomorrow.

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

ORDERED ENROLLED FOR RATIFICATION

The following Bills were read the third time and, having received three readings in both Houses, it was ordered that the titles be changed to that of Acts and enrolled for Ratification:

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H. 3319 (Word version) -- Reps. M.A. Pitts, Pinson and Parks: A BILL TO AMEND ACT 595 OF 1994, RELATING TO THE MANNER IN WHICH MEMBERS OF THE BOARD OF TRUSTEES OF GREENWOOD SCHOOL DISTRICT 50 ARE ELECTED, SO AS TO CHANGE THE FILING PERIOD FROM SEPTEMBER TO AUGUST.

By prior motion of Senator O'DELL

H. 3991 (Word version) -- Reps. McLeod, Haley, Toole, Spires, Huggins, Ott, E.H. Pitts, Bingham, Ballentine and Frye: 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 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.

HOUSE BILLS RETURNED

The following Joint Resolution was read the third time and ordered returned to the House with amendments:

H. 3828 (Word version) -- Reps. Cato, Loftis, Alexander, Duncan, Perry, Scott, Talley, Bales, Haskins, Witherspoon, Huggins, Bedingfield, Harrison, G.R. Smith, Bannister, Barfield, Battle, Branham, Chellis, Clemmons, Cooper, Crawford, Edge, Gambrell, Hardwick, Hayes, Jennings, Leach, Limehouse, Lowe, Mahaffey, Mitchell, Ott, Pinson, Rice, Sandifer, Scarborough, W.D. Smith, Taylor, Thompson, Vick, Viers, Walker and White: A JOINT RESOLUTION TO CREATE A STUDY COMMITTEE TO EXAMINE THE FEASIBILITY OF NATURAL GAS EXPLORATION IN THE ATLANTIC OCEAN OFF THE COAST OF SOUTH CAROLINA, TO PROVIDE FOR ITS COMPOSITION, APPOINTMENT, POWERS, DUTIES, AND RESPONSIBILITIES, AND TO REQUIRE THE COMMITTEE TO MAKE A REPORT ON ITS RECOMMENDATIONS TO THE GENERAL ASSEMBLY BEFORE JANUARY 8, 2008, AT WHICH TIME IT IS DISSOLVED.

Printed Page 2997 . . . . . Wednesday, May 30, 2007

THIRD READING BILLS

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

S. 793 (Word version) -- Senator Cleary: A BILL TO PROVIDE THAT THE BOARD OF TRUSTEES OF COASTAL CAROLINA UNIVERSITY MAY MEET IN LOCATIONS OTHER THAN CONWAY AND TO PROVIDE THAT ALL PROPERTY, REAL AND PERSONAL, AND RIGHTS OF EVERY DESCRIPTION VESTED IN COASTAL CAROLINA UNIVERSITY LOCATED IN HORRY COUNTY SHALL BE VESTED IN "COASTAL CAROLINA UNIVERSITY".

By prior motion of Senator CLEARY, with unanimous consent

S. 793--Co-Sponsor Added

On motion of Senator ELLIOTT, with unanimous consent, the name of Senator ELLIOTT was added as a co-sponsor of S. 793.

S. 360 (Word version) -- Senator Grooms: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 48-52-215 TO DEFINE "RENEWABLE ENERGY RESOURCES" FOR PURPOSES OF THE SOUTH CAROLINA ENERGY EFFICIENCY ACT.

S. 770 (Word version) -- Senator Leventis: A BILL TO AMEND SECTION 7-7-501, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN SUMTER COUNTY, SO AS TO RENAME AND REVISE CERTAIN VOTING PRECINCTS OF SUMTER 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 LANGUAGE.

By prior motion of Senator LEVENTIS, with unanimous consent

SECOND READING BILLS

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

H. 4099 (Word version) -- Medical, Military, Public and Municipal Affairs Committee: A JOINT RESOLUTION TO APPROVE

Printed Page 2998 . . . . . Wednesday, May 30, 2007
REGULATIONS OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION, BOARD OF MEDICAL EXAMINERS, RELATING TO OFFICE BASED SURGERY, DESIGNATED AS REGULATION DOCUMENT NUMBER 3079, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

H. 4136 (Word version) -- Reps. Lowe and Crawford: A BILL TO PROVIDE THAT THE REMAINS OF THE CSS PEE DEE, A CONFEDERATE NAVAL VESSEL WHICH SANK IN THE GREAT PEE DEE RIVER, AS WELL AS ALL OTHER ARTIFACTS LYING IN THE GREAT PEE DEE RIVER IN THE AREA BELOW THE ORDINARY HIGH WATER MARK BETWEEN FLORENCE AND MARION COUNTIES, IN A ZONE TWO MILES ABOVE AND TWO MILES BELOW THE UNITED STATES HIGHWAY 76 BRIDGE, ARE THE PROPERTY OF THE STATE OF SOUTH CAROLINA AND THAT IT IS UNLAWFUL TO COLLECT ANY ARTIFACTS FROM THE AREA; AND TO PROVIDE THAT THIS ACT IS AUTOMATICALLY REPEALED AFTER FIVE YEARS.

By prior motion of Senator LEATHERMAN, with unanimous consent

ADOPTED

S. 796 (Word version) -- Senator Pinckney: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION NAME THE PORTION OF INTERSTATE HIGHWAY 95 IN JASPER COUNTY FROM MILE MARKER THREE TO MILE MARKER FIVE THE "CORPORAL MARK D. JONES HIGHWAY" AND ERECT APPROPRIATE MARKERS OR SIGNS ALONG THIS PORTION OF HIGHWAY THAT CONTAIN THE WORDS "CORPORAL MARK D. JONES HIGHWAY".

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

AMENDED, CARRIED OVER

H. 3623 (Word version) -- Rep. Thompson: A BILL TO AMEND SECTION 6-11-340, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PROTECTION OF SPECIAL PURPOSE DISTRICTS, SO AS TO MAKE A TECHNICAL CHANGE; TO AMEND SECTIONS 14-1-206, 14-1-207, AND 14-1-208, ALL AS AMENDED, RELATING TO MONETARY ASSESSMENTS LEVIED AGAINST FINES

Printed Page 2999 . . . . . Wednesday, May 30, 2007
IMPOSED IN GENERAL SESSIONS, MAGISTRATES, AND MUNICIPAL COURTS, SO AS TO DELETE THE TERM "DEPARTMENT OF PUBLIC SAFETY" AND REPLACE IT WITH THE TERM "SOUTH CAROLINA CRIMINAL JUSTICE ACADEMY"; TO AMEND SECTION 23-11-110, RELATING TO CERTAIN QUALIFICATIONS THAT A SHERIFF MUST POSSESS, SO AS TO MAKE A TECHNICAL CHANGE; TO AMEND SECTION 23-23-70, RELATING TO THE ISSUANCE OF LAW ENFORCEMENT OFFICER CERTIFICATES, SO AS TO DELETE REFERENCES TO SECTION 23-6-440 AND REPLACE IT WITH REFERENCES TO SECTION 23-23-60; TO AMEND SECTIONS 23-28-20, 23-28-60, AND 23-28-90, ALL RELATING TO THE APPOINTMENT OF RESERVE POLICE OFFICERS, SO AS TO MAKE TECHNICAL CHANGES; TO AMEND SECTION 23-47-20, AS AMENDED, RELATING TO 911 SYSTEM REQUIREMENTS, SO AS TO MAKE A TECHNICAL CHANGE; TO AMEND SECTION 24-5-320, RELATING TO THE JAIL PRE-SERVICE TRAINING PROGRAM, SO AS TO DELETE REFERENCES TO THE DEPARTMENT OF PUBLIC SAFETY AND REPLACE THEM WITH REFERENCES TO THE SOUTH CAROLINA CRIMINAL JUSTICE ACADEMY, AND TO MAKE TECHNICAL CHANGES; TO AMEND SECTION 24-5-360, RELATING TO TRAINING OFFERED TO RESERVES WHO WISH TO BECOME FULL-TIME JAILERS OR DETENTION OFFICERS, SO AS TO DELETE REFERENCES TO THE DEPARTMENT OF PUBLIC SAFETY AND REPLACE THEM WITH REFERENCES TO THE SOUTH CAROLINA CRIMINAL JUSTICE ACADEMY, AND TO MAKE A TECHNICAL CHANGE; TO AMEND SECTION 56-5-2950, RELATING TO A PERSON WHO DRIVES A MOTOR VEHICLE HAVING GIVEN CONSENT TO SUBMIT TO CHEMICAL TESTS OF HIS BREATH, BLOOD, OR URINE FOR CERTAIN PURPOSES, SO AS TO DELETE A REFERENCE TO THE DEPARTMENT OF PUBLIC SAFETY AND REPLACE IT WITH A REFERENCE TO THE SOUTH CAROLINA CRIMINAL JUSTICE ACADEMY; AND TO AMEND SECTION 40-18-30, AS AMENDED, RELATING TO THE POWERS AND DUTIES OF THE STATE LAW ENFORCEMENT DIVISION, SO AS TO DELETE A REFERENCE TO THE LAW ENFORCEMENT TRAINING COUNCIL AND TO REPLACE IT WITH A REFERENCE TO THE SOUTH CAROLINA CRIMINAL JUSTICE ACADEMY.
Printed Page 3000 . . . . . Wednesday, May 30, 2007

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

Senator KNOTTS proposed the following amendment (JUD3623.002), which was adopted:

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

/   SECTION   ___.   Section 23-3-540(P) of the 1976 Code, as added by Act 346 of 2006, is amended to read:

"(P)   As used in this section, 'active electronic monitoring device' means a mechanism an all body worn device that is not removed from the person's body utilized by the Department of Probation, Parole and Pardon Services in conjunction with a web-based computer system that actively monitors and identifies records a person's location at least once every minute twenty-four hours a day and that timely records and reports or records the person's presence near or within a crime scene or prohibited area or the person's departure from a specified geographic location. The device must be integrated with an automated crime scene correlation system. In addition, the device must be resistant or impervious to unintentional or wilful damages. The South Carolina Criminal Justice Academy may offer training to officers of the Department of Probation, Parole and Pardon Services regarding the utilization of active electronic monitoring devices."     /

Renumber sections to conform.

Amend title to conform.

Senator KNOTTS explained the amendment.

The amendment was adopted.

On motion of Senator MALLOY, with unanimous consent, 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.

Printed Page 3001 . . . . . Wednesday, May 30, 2007
HAVING DISPENSED WITH THE MOTION PERIOD, THE SENATE PROCEEDED TO A CONSIDERATION OF REPORTS OF COMMITTEES OF CONFERENCE AND FREE CONFERENCE.

H. 3199--REPORT OF THE
COMMITTEE OF CONFERENCE ADOPTED

H. 3199 (Word version) -- Reps. G.M. Smith, Hagood, Cotty and Weeks: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, SO AS TO ENACT THE "ATM SAFETY ACT" BY AMENDING SECTION 16-11-380, RELATING TO ENTERING A BANK, DEPOSITORY, OR BUILDING AND LOAN ASSOCIATION WITH INTENT TO STEAL, SO AS TO INCLUDE AND CREATE VARIOUS ATM OFFENSES, TO ESTABLISH PENALTIES FOR EACH OFFENSE, TO REQUIRE THE POSTING OF A WARNING SIGN ON ATMS AND SIMILAR DEVICES, AND TO PROVIDE EXCEPTIONS; AND BY AMENDING SECTION 17-25-45, AS AMENDED, RELATING TO LIFE SENTENCES FOR CERTAIN MOST SERIOUS AND SERIOUS OFFENSES, SO AS TO ADD THE ATM OFFENSE TO THE LIST OF SERIOUS OFFENSES.

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

Senator HAWKINS spoke on the report.

On motion of Senator HAWKINS, the Report of the Committee of Conference to H. 3199 was adopted as follows:

H. 3199--Conference Report
The General Assembly, Columbia, S.C., May 16, 2007

The Committee of Conference, to whom was referred:

H. 3199 (Word version) -- Reps. G.M. Smith, Hagood, Cotty and Weeks: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, SO AS TO ENACT THE "ATM SAFETY ACT" BY AMENDING SECTION 16-11-380, RELATING TO ENTERING A BANK, DEPOSITORY, OR BUILDING AND LOAN ASSOCIATION WITH INTENT TO STEAL, SO AS TO INCLUDE AND CREATE VARIOUS ATM OFFENSES, TO ESTABLISH PENALTIES FOR EACH OFFENSE, TO REQUIRE

Printed Page 3002 . . . . . Wednesday, May 30, 2007
THE POSTING OF A WARNING SIGN ON ATMS AND SIMILAR DEVICES, AND TO PROVIDE EXCEPTIONS; AND BY AMENDING SECTION 17-25-45, AS AMENDED, RELATING TO LIFE SENTENCES FOR CERTAIN MOST SERIOUS AND SERIOUS OFFENSES, SO AS TO ADD THE ATM OFFENSE TO THE LIST OF SERIOUS OFFENSES.

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

That the same do pass with the following amendments: (Reference is to Printer's Version 3/29/07--S.)

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

/   SECTION 1.   This act may be cited as the "ATM Safety Act".
SECTION 2.   Section 16-11-380 of the 1976 Code is amended to read:

"Section 16-11-380.   (A)   It is unlawful for a person to enter a building or part of a building occupied as a bank, depository, or building and loan association with intent to steal money or, securities for money, or property, either by force, intimidation, or threats.

A person who violates the provisions of this section is guilty of a felony and, upon conviction, must be imprisoned not more than thirty years.

(B)   It is unlawful for a person to steal money, securities for money, or property, either by force, intimidation, or threats, from a person who is using or who has just finished using a bank night depository, an automated teller machine (ATM), or another automated banking device, as defined in Section 16-14-10, or in the vicinity of a bank depository, an ATM, or another automated banking device.

(C)   It is unlawful for a person to beg, panhandle, or solicit money from, or otherwise harass, a person using, who has just finished using, or who is in the vicinity of a bank night depository, an ATM, or another automated banking device.

(D)   A person who violates the provisions of:

(1)   subsection (A) is guilty of a felony and, upon conviction, must be imprisoned not more than thirty years;

(2)   subsection (B) is guilty of a felony and, upon conviction, must be fined not more than ten thousand dollars or imprisoned not more than twenty years, or both; and

(3)   subsection (C) is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars or imprisoned not more than thirty days, or both.

Printed Page 3003 . . . . . Wednesday, May 30, 2007

(E)   A separate location code, premise code, or designation for a bank night depository, an ATM, or other automated banking device offense must be added to the South Carolina Incident Based Reporting System. Law enforcement personnel are required to use this location code, premise code, or designation when completing incident reports for all criminal activity occurring at or in the vicinity of a bank night depository, an ATM, or another automated banking device in accordance with the provisions of this section.

(F)   To the extent that this section applies to bank night depositories, ATMs, and other automated banking devices, it applies only to these devices which are not located in a building or structure and those to which banking customers have access when they are outside a building or structure. A building or structure does not include an enclosure erected solely for the purpose of containing an otherwise outdoor or detached ATM or automated banking device. However, the provisions of this section do apply to drive-through banking terminals.

(G)   As used in this section, 'vicinity' means within the sight of a reasonable person."

SECTION   3.   Section 17-25-45(C)(2)(b) of the 1976 Code is amended to read:

"(b)   those felonies enumerated as follows:

16-3-220             Lynching, Second degree

16-3-810             Engaging child for sexual performance

16-9-220             Acceptance of bribes by officers

16-9-290             Accepting bribes for purpose of procuring

public office

16-11-110(B)         Arson, Second degree

16-11-312(B)         Burglary, Second degree

16-11-380(B)         Theft of a person using an automatic teller

machine

16-13-210(1)         Embezzlement of public funds

16-13-230(B)(3)       Breach of trust with fraudulent intent

16-13-240(1)         Obtaining signature or property by false

pretenses

38-55-540(3)         Insurance fraud

44-53-370(e)         Trafficking in controlled substances

44-53-375(C)         Trafficking in ice, crank, or crack cocaine

44-53-445(B)(1)&(2)   Distribute, sell, manufacture, or possess

with intent to distribute controlled

substances within proximity of school

56-5-2945           Causing death by operating vehicle while

Printed Page 3004 . . . . . Wednesday, May 30, 2007

under influence of drugs or alcohol; and"

SECTION   4.   The repeal or amendment by this act of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this act, all laws repealed or amended by this act must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this act, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.

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

Amend title to conform. 

/s/ Senator Hawkins               /s/Rep. G. M. Smith
/s/ Senator Sheheen               /s/Rep. Herbkersman
/s/ Senator Campsen               /s/Rep. Rutherford
On Part of the Senate.            On Part of the House.

, and a message was sent to the House accordingly.

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. 310 (Word version) -- Senators Hayes, Setzler and Gregory: A BILL TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SALES TAX EXEMPTIONS, SO AS TO EXEMPT THE GROSS PROCEEDS OF SALES OR SALES PRICE OF DURABLE MEDICAL EQUIPMENT AND RELATED MEDICAL SUPPLIES ELIGIBLE FOR MEDICARE OR MEDICAID REIMBURSEMENT AND WHICH ARE SOLD BY WRITTEN PRESCRIPTION OR CERTIFICATE OF MEDICAL NECESSITY.

The House returned the Bill with amendments.

Printed Page 3005 . . . . . Wednesday, May 30, 2007

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

Senators SETZLER and HAYES proposed the following amendment (310R005.RWH), which was adopted:

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

/     SECTION   1.   Section 12-36-2120 of the 1976 Code, is amended by adding an appropriately numbered item at the end to read:

"( )   durable medical equipment and related supplies:

(a)   as defined under federal and state Medicaid and Medicare laws;

(b)   which is paid directly by funds of this State or the United States under the Medicaid or Medicare programs, where state or federal law or regulation authorizing the payment prohibits the payment of the sale or use tax, and

(c)   sold by a provider who holds a South Carolina retail sales license and whose principal place of business is located in this State."

SECTION   2.   Notwithstanding the sales and use rates imposed pursuant to Chapter 36, Title 12 of the 1976 Code, the rate of tax imposed pursuant to that chapter on the gross proceeds of sales of items described in SECTION 1 is five and one-half percent for such sales from July 1, 2007, through June 30, 2008, four percent for such sales from July 1, 2008, through June 30, 2009, three percent for such sales from July 1, 2009, through June 30, 2010, two percent for such sales from July 1, 2010, through June 30, 2011, one percent for such sales from July 1, 2011, through June 30, 2012, and as of July 1, 2012, there shall be no sales and use rates on the gross proceeds of sales of items described in SECTION 1. Eighty percent of the revenues of the sales taxes raised by the special tax rates provided pursuant to this section must be credited to the general fund of the State and used as sales taxes are used and the remainder must be credited to the Education Improvement Act Fund.

SECTION   3.   Beginning with the February 15, 2008, forecast by the Board of Economic Advisors of annual general fund revenue growth for the upcoming fiscal year, and annually thereafter, if the forecast of that growth equals at least five percent of the most recent estimate by the board of general fund revenues for the current fiscal year, then the applicable state sales and use tax rate imposed on items described in SECTION 1 is reduced, effective the following July first, by one and one-half percent in the first year, and one percent every year thereafter.

Printed Page 3006 . . . . . Wednesday, May 30, 2007
That reduced rate applies until a subsequent reduction takes effect. If the February fifteenth forecast meets the requirement for a rate reduction, the board promptly shall certify this result in writing to the Department of Revenue. On the July first that the rate attains zero, the provisions of this subsection no longer apply.

SECTION   4.   This act takes effect July 1, 2007.       /

Renumber sections to conform.

Amend title to conform.

Senator SETZLER explained the amendment.

The amendment was adopted.

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

HOUSE AMENDMENTS AMENDED
RETURNED TO THE HOUSE WITH AMENDMENTS

S. 182 (Word version) -- Senators Fair, Campsen, Richardson, Hayes and Elliott: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 24-1-285 SO AS TO PROVIDE THAT THE DEPARTMENT OF CORRECTIONS IN CONJUNCTION WITH THE DEPARTMENT OF COMMERCE SHALL DEVELOP AND MAINTAIN A MARKETING PLAN TO ATTRACT PRIVATE SECTOR BUSINESSES FOR THE EMPLOYMENT OF INMATES THROUGH THE PRISON INDUSTRIES PROGRAM; AND BY ADDING SECTION 24-1-290 SO AS TO PROVIDE THAT THE DIRECTOR OF THE DEPARTMENT OF CORRECTIONS SHALL DEDUCT CERTAIN AMOUNTS FROM THE GROSS EARNINGS OF THE INMATES ENGAGED IN PRISON INDUSTRY SERVICE WORK.

The House returned the Bill with amendments.

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

Senator FAIR proposed the following amendment (182R003.MLF), which was adopted:

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

Printed Page 3007 . . . . . Wednesday, May 30, 2007

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

"Section 24-1-285.   (A)   The Department of Corrections, in conjunction with the Department of Commerce, shall develop and maintain a marketing plan to attract private sector service businesses for the employment of inmates through the prison industries program.

(B)   Prior to entering into new contracts and renewals of existing contracts with private sector service entities that want to hire inmates through the prison industries program, the Department of Corrections must provide public notice of its intention to establish or continue a prison-based industry at a particular facility and receive certification by the Department of Commerce that an unfair competitive wage disadvantage to the local economy is not created by each new contract for prison labor.

(1)   The public notice required in this subsection must be forwarded to a newspaper of general circulation in the county where the prison-based industry is or will be located, with a request that it be published at least once a week for two consecutive weeks. The notice must include a description of the work to be performed, the intent to contract for inmate labor, and provide that objections to the proposed hiring of prison labor may be filed with the Department of Commerce within thirty days of the last date that the notice appears.

(a)   The Department of Commerce must maintain a copy of any objections filed for a period of three years from the date that the objections were received.

(b)   Advertising costs associated with the publication of notice must be borne by the entity seeking to contract for prison labor.

(2)   The certification required by this subsection must be based upon objections to the establishment of a prison-industry program provided for in item (1).

(C)   No contract may be negotiated or executed prior to forty days after the last date that the notice required by subsection (A) appears. New contracts and renewals of existing contracts between private sector entities and the Department of Corrections must be negotiated in accordance with procedures established jointly by the Department of Commerce and the Department of Corrections. The procedures must be drafted to ensure fairness and consistency in establishing contracts with private sector entities seeking to establish or continue prison-based operations whenever the wage to be paid is less than the federally established minimum wage.

Printed Page 3008 . . . . . Wednesday, May 30, 2007

(D)   The marketing plan and the procedures for negotiating new contracts and contract renewals must be submitted to and approved by the Budget and Control Board prior to implementation. The Department of Corrections shall annually submit an audit report of the program to the Senate Corrections and Penology Committee and the House Medical, Military, Public and Municipal Affairs Committee. The provisions of the section may not be construed to apply to traditional prison industries as authorized in Section 24-3-320."

SECTION   2.   Chapter 1, Title 24 of the 1976 Code is amended by adding:

"Section 24-1-290.   The Director of the Department of Corrections may enter into contracts with private sector entities that allow inmate labor to be provided for prison industry service work and export work that involves exportation of products. The use of inmate labor may not result in the displacement of employed workers within the local region in which work is being performed. Pursuant to this section, service work is defined as any work that includes repair, replacement of original manufactured items, packaging, sorting, recycling, labeling, or similar work that is not original equipment manufacturing. The department may negotiate the wage to be paid for inmate labor provided under prison industry service work contracts and export work contracts, and these wages may be less than the prevailing wage for work of a similar nature in the private sector. However, the Director of the Department of Corrections shall deduct the following from the gross earnings of the inmates engaged in prison industry service work in addition to any other required deductions:

(1)   If restitution to a particular victim or victims has been ordered by a court of appropriate jurisdiction, then twenty percent must be used to fulfill the restitution obligation.

(2)   If restitution to a particular victim or victims has not been ordered by a court of appropriate jurisdiction, or if the court-ordered restitution to a particular victim or victims has been satisfied, then twenty percent must be applied to the South Carolina Victim's Compensation Fund.

(3)   Thirty-five percent must be used to pay the prisoner's child support obligations pursuant to law, court order, or agreement of the prisoner. These child support monies must be disbursed to the guardian of the child or children or to appropriate clerks of court, in the case of court ordered child support, for application toward payment of child support obligations, whichever is appropriate. If there are no child support obligations, then twenty-five percent must be used by the

Printed Page 3009 . . . . . Wednesday, May 30, 2007
Department of Corrections to defray the cost of the prisoner's room and board. Furthermore, if there are no child support obligations, then ten percent must be made available to the inmate during his incarceration for the purchase of incidentals pursuant to subsection (4). This is in addition to the ten percent used for the same purpose in subsection (4).

(4)   Ten percent must be made available to the inmate during his incarceration for the purchase of incidentals. Any monies made available to the inmate for the purchase of incidentals also may be distributed to the person or persons of the inmate's choice.

(5)   Ten percent must be held in an interest bearing escrow account for the benefit of the prisoner.

(6)   The remaining balance must be used to pay federal and state taxes required by law. Any monies not used to satisfy federal and state taxes must be made available to the inmate for the purchase of incidentals pursuant to subsection (4)."

SECTION   3.   The provisions of this act supercede and are controlling over any provision to the contrary in paragraph 37.36, Part IB of Act ___ of 2007, H 3620.

SECTION   4.   This act takes effect August 1, 2007.   /

Renumber sections to conform.

Amend title to conform.

Senator FAIR explained the amendment.

The amendment was adopted.

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

HOUSE AMENDMENTS AMENDED
RETURNED TO THE HOUSE WITH AMENDMENTS

S. 243 (Word version) -- Senators Setzler, Leatherman, Fair and Elliott: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 46 TO TITLE 11 SO AS TO ESTABLISH THE "SOUTH CAROLINA HYDROGEN INFRASTRUCTURE DEVELOPMENT FUND", TO AUTHORIZE THE SOUTH CAROLINA RESEARCH AUTHORITY TO ADMINISTER SUBGRANTS FOR THE PURPOSE OF PROMOTING THE DEVELOPMENT OF HYDROGEN PRODUCTION, TO ALLOW THE FUND TO RECEIVE DONATIONS, GRANTS, AND OTHER FUNDING AS PROVIDED BY LAW, TO ALLOW A TAXPAYER

Printed Page 3010 . . . . . Wednesday, May 30, 2007
WHO MAKES A CONTRIBUTION TO THE FUND TO RECEIVE A TAX CREDIT SUBJECT TO CERTAIN LIMITATIONS, TO REQUIRE THE GENERAL ASSEMBLY TO APPROPRIATE A SPECIFIC AMOUNT FROM THE GENERAL FUND OF THE STATE TO THE FUND, AND TO REQUIRE STATE AGENCIES TO CONSIDER PURCHASING EQUIPMENT AND MACHINERY OPERATED BY HYDROGEN OR FUEL CELLS OR BOTH OF THEM; BY ADDING SECTION 12-6-3630 SO AS TO ALLOW A CREDIT AGAINST THE INCOME TAX, LICENSE FEES, OR INSURANCE PREMIUM TAXES FOR QUALIFIED CONTRIBUTIONS MADE TO THE FUND; BY AMENDING SECTION 12-36-2120, AS AMENDED, RELATING TO SALES TAX EXEMPTIONS, SO AS TO ALLOW A SALES TAX EXEMPTION FOR EQUIPMENT OR MACHINERY OPERATED BY HYDROGEN OR FUEL CELLS OR USED TO DISTRIBUTE HYDROGEN AND FOR EQUIPMENT AND MACHINERY USED PREDOMINATELY FOR RESEARCH AND DEVELOPMENT INVOLVING HYDROGEN OR FUEL CELL TECHNOLOGIES, AND TO ALLOW A SALES TAX EXEMPTION FOR BUILDING MATERIALS, MACHINERY, OR EQUIPMENT USED TO CONSTRUCT A NEW OR RENOVATED BUILDING LOCATED IN A RESEARCH DISTRICT.

The House returned the Bill with amendments.

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

Senators LEATHERMAN and SETZLER proposed the following amendment (243R015.HKL), which was adopted:

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

/     SECTION   1.   The General Assembly finds that:

(1)   South Carolina must encourage a vibrant knowledge-based economy and establish a foundation for research and commercialization activities to create higher paying jobs and benefit all South Carolinians;

(2)   continuing to nurture a hydrogen and fuel cell cluster in South Carolina's economy, which has already begun with efforts by the state's research universities, is a public purpose that will help to further the state's goal to encourage a knowledge-based economy;

(3)   South Carolina considers hydrogen and fuel cell technology, which is an alternative means of electrical power, to be a "fuel of the

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future" due to its potential to create high-paying jobs for the citizens of the State, its safe uses for stationary, portable, and automotive devices, and its positive environmental impacts;

(4)   hydrogen is a clean fuel that is of benefit to citizens because of its renewable sources, nonpolluting characteristics, nonpetroleum basis, and its potential to limit the country's reliance on foreign sources of oil;

(5)   the global demand for hydrogen technology is projected to be more than $2.6 trillion in 2021 and the United States market is expected to exceed one trillion dollars and one million jobs before 2020, while the economic potential for South Carolina and surrounding communities is estimated to be 40,000 jobs and a ten billion dollar capital investment in the State by 2020; and

(6)   in order to capitalize on this economic opportunity, it is appropriate that the State create an ideal environment for all users and developers of hydrogen and fuel cell technology, including companies, businesses, and consumers, to further the state's goal to create a thriving hydrogen and fuel cell cluster in South Carolina's economy.

SECTION   2.   Title 11 of the 1976 Code is amended by adding:

  "CHAPTER 46

South Carolina Hydrogen Infrastructure Development Act

Section 11-46-10.   This chapter may be cited as the 'South Carolina Hydrogen Infrastructure Development Act'.

Section 11-46-20.   (A)   There is established in the State Treasury a separate and distinct fund known as the 'South Carolina Hydrogen Infrastructure Development Fund'. The revenues of the fund must be distributed in the form of grants by the South Carolina Research Authority (authority) and used for the purpose of promoting the development and deployment of hydrogen production, storage, distribution, and dispensing infrastructure and related products and services that enable the growth of hydrogen and fuel cell technologies in the State, either by the authority or a grantee. Unexpended revenues in this fund carry forward into succeeding fiscal years through June 30, 2012, and earnings in this fund must be credited to it.

(B)   The General Assembly must not appropriate more than a total of fifteen million dollars in grants as provided for in Section 11-46-30(B). Grants may not be made after June 30, 2012. Revenues remaining in the fund after that date, regardless of source, lapse to the General Fund of the State.

(C)   The authority shall implement and manage the application for grants. The authority shall administer the fund and provide grants for any purpose that furthers the creation of a sustainable foundation upon

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which a hydrogen economy may develop across the State including, but not limited to, a demonstration project, pilot project, and the purchase of machinery and equipment. The authority may charge an applicant a maximum of three percent of the total amount of the grant for the administrative costs of managing the grant process. The authority, upon consultation with the South Carolina Hydrogen and Fuel Cell Alliance, the University of South Carolina's Fuel Cell Center of Excellence, Clemson University, South Carolina State University's Clyburn Transportation Center, the Savannah River National Laboratory, the Center for Hydrogen Research, the Medical University of South Carolina, and the Columbia Innovation Center, shall establish guidelines for the application for and approval of grants, including specific objectives that an applicant must meet to receive a grant. The executive committee of the authority has the ultimate authority to determine any matter relating to the fund and to the application of fund proceeds including, but not limited to, the approval of grants.

(D)   Grants distributed from the fund are subject to the procurement procedures followed by the authority.

(E)   Appropriations made to the fund pursuant to Section 11-46-30(B) may be distributed as grants only to the extent that there is a dollar-for-dollar match, in cash or in kind, from a source other than the State. However, the executive committee of the authority, based on the merits of a grant proposal and its projected economic benefit, may reduce or eliminate the matching requirement on a case-by-case basis.

(F)   The authority shall make and implement all final decisions concerning any matter provided for in this chapter; however, a grant must not be made to the authority without approval by the Secretary of Commerce.

Section 11-46-30.   (A)   The South Carolina Hydrogen Infrastructure Development Fund may receive donations, grants, and any other funding as provided by law. A taxpayer making a contribution to the fund is allowed a tax credit provided pursuant to Section 12-6-3630.

(B)   The South Carolina Hydrogen Infrastructure Development Fund may receive appropriations from the general fund of the State up to the following amounts in the fiscal years indicated:

(1)   seven million dollars for the fiscal year 2007-08;

(2)   five million dollars for fiscal year 2008-09;

(3)   three million dollars for fiscal year 2009-10.

Section 11-46-40.   The South Carolina Research Authority shall submit an annual report to the Governor and the General Assembly containing at a minimum the following:

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(1)   the total amount of monies placed in the fund in a fiscal year and the total amount of monies granted from the fund in a fiscal year;

(2)   a list of the applicants that received grants and the applicant's stated objectives;

(3)   an audit of the activities conducted by the applicants;

(4)   the monies used by the authority for administration and management, which may not exceed two hundred thousand dollars annually, and the percentage of each grant used for administration and management;

(5)   the progress achieved by the authority and the fund in creating a sustainable foundation upon which a hydrogen economy may develop across the State; and

(6)   the certified gross profits earned by grant recipients provided pursuant to Section 11-46-60.

Section 11-46-50.   Each state agency head shall require the agency's procurement officer, or other state employee authorized to purchase equipment or machinery for the agency, to consider purchasing equipment or machinery operated by hydrogen or fuel cells, or both of them, if available and cost-effective.

Section 11-46-60.   Two percent of the gross profits derived from the sale of hydrogen and fuel cell products or services developed from a grant to a grant recipient, organized and operating as a for-profit business entity, must be annually remitted to the fund through June 30, 2012, until the full amount of the original grant has been repaid to the fund. Thereafter, if the full amount of the original grant has not been repaid, two percent of such gross profits must be annually remitted to the State Treasurer and transferred to the general fund of the State until repaid. The Department of Revenue shall promulgate regulations to determine and certify gross profits.

Section 11-46-70.   The authority or a nonprofit affiliate designated by the authority may implement the provisions of this chapter. A designated nonprofit affiliate shall establish a separate and distinct fund. Monies provided to the affiliate fund must be subject to the same conditions and requirements provided by law that apply to a fund established by the authority. Grants from the affiliate fund must be made with the consent of the executive committee of the authority. The provisions of this chapter and Section 12-6-3630 apply to the affiliate fund."

SECTION   3.   Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:

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"Section 12-6-3630.   (A)   For taxable years beginning after 2007, and before 2012, a taxpayer is allowed a credit against the income tax imposed pursuant to Chapter 6 or 11 of this title, license fees imposed pursuant to Chapter 20 of this title, or insurance premium tax imposed pursuant to Chapter 7, Title 38, or a combination of them, for a qualified contribution made by a taxpayer to the South Carolina Hydrogen Infrastructure Development Fund established pursuant to Chapter 46, Title 11. A contribution is not a qualified contribution if it is subject to a condition or limitation regarding the use of the contribution.

(B)   The credit is equal to twenty-five percent of a qualified contribution made by a taxpayer to the fund. The credit must be used against the taxpayer's liability on income taxes, premium insurance taxes, or license fees after the application of all other credits applicable to the taxpayer's tax liability. Unused credits may be carried forward for ten years after the tax year in which a qualified contribution was made. The credit is nonrefundable.

(C)   A taxpayer who claims a credit for a qualified contribution pursuant to this section may not claim a deduction for the same qualified contribution.

(D)   A taxpayer who claims a credit pursuant to this section must attach to his tax return a copy of a form provided by the authority identifying the taxpayer's qualified contribution. The Department of Revenue may require from the taxpayer additional information identifying the taxpayer's qualified contribution as it considers appropriate."

SECTION   4.   A.   Section 12-36-2120 of the 1976 Code, as last amended by Act 386 of 2006, is further amended by adding appropriately numbered items to read:

"( )   any device, equipment, or machinery operated by hydrogen or fuel cells, any device, equipment, or machinery used to generate, produce, or distribute hydrogen and designated specifically for hydrogen applications or for fuel cell applications, and any device, equipment, or machinery used predominantly for the manufacturing of, or research and development involving hydrogen or fuel cell technologies. For purposes of this item:

(1)   'fuel cells' means a device that directly or indirectly creates electricity using hydrogen (or hydrocarbon-rich fuel) and oxygen through an electro-chemical process; and

(2)   'research and development' means laboratory, scientific, or experimental testing and development of hydrogen or fuel cell

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technologies. Research and development does not include efficiency surveys, management studies, consumer surveys, economic surveys, advertising, or promotion, or research in connection with literary, historical, or similar projects.

( )   any building materials used to construct a new or renovated building or any machinery or equipment located in a research district. However, the amount of the sales tax that would be assessed without the exemption provided by this section must be invested by the taxpayer in hydrogen or fuel cell machinery or equipment located in the same research district within twenty-four months of the purchase of an exempt item.

'Research district' means land owned by the State, a county, or other public entity that is designated as a research district by the University of South Carolina, Clemson University, the Medical University of South Carolina, South Carolina State University, or the Savannah River National Laboratory."

B.   This section takes effect October 1, 2007.

SECTION   5.   A.   Chapter 14, Title 12 of the 1976 Code is amended by adding:

"Section 12-14-80.   (A)   There is allowed an economic impact zone tax credit pursuant to Section 12-14-60 for qualifying investments made by a manufacturer which:

(1)   is engaged in this State in at least one economic impact zone, as defined in Section 12-14-30(1), in an activity or activities listed under the North American Industry Classification System Manual (NAICS) Section 326;

(2)   is employing five thousand or more full-time workers in this State and having a total capital investment in this State of not less than two billion dollars; and

(3)   has invested five hundred million dollars in capital investment in this state between January 1, 2006 and July 1, 2011.

(B)   A taxpayer that qualifies for the tax credit allowed by this section may claim the credit earned pursuant to this section and credits earned pursuant to Section 12-6-3360 in the manner provided pursuant to Sections 12-6-3360 and 12-14-60, or as a credit in an amount equal to not more than fifty percent of the employee's withholding on the taxpayer's quarterly withholding tax returns. The taxpayer must elect to take the credit either as an income tax or a withholding tax credit but not both. A taxpayer must first take the credits as an income tax credit in a year in which the taxpayer has a corporate income tax liability. The withholding tax credit may be taken only when the taxpayer has

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used the maximum investment tax credit allowed against the corporate income tax for that year. The withholding credit may only be taken for qualifying investments made or placed in service after July 1, 2007. To claim the credit against the employee's withholding, the taxpayer must be in compliance with its withholding tax and other taxes due to the State."

B.   This section takes effect July 1, 2007, and applies for capital investments placed in service outside of an economic impact zone after June 30, 2007, and for quarterly state withholding returns due on and after that date, provided that for the period July 1, 2007 to June 30, 2008, a taxpayer using this section many not reduce its state withholding tax to less than the withholding tax remitted for the period June 30, 2006, to July 1, 2007.

SECTION   6.   A.   Section 12-36-2120 of the 1976 Code, as last amended by Act 386 of 2006, is further amended by adding an appropriately numbered item at the end to read:

"( )   an amusement park ride and any parts, machinery, and equipment used to assemble, operate, and make up an amusement park ride or performance venue facility located in a qualifying amusement park or theme park and any related or required machinery, equipment, and fixtures located in the same qualifying amusement park or theme park.

(a)   To qualify for the exemption, the taxpayer shall meet the investment and job requirements provided in subsubitem (i) of subitem (b) over a five-year period beginning on the date of the taxpayer's first use of this exemption. The taxpayer shall notify the Department of Revenue of its intent to qualify and use this exemption and upon receipt of the notification, the department shall issue an appropriate exemption certificate to the taxpayer to be used for qualifying purposes under this item. Within six months after the fifth anniversary of the taxpayer's first use of this exemption, the taxpayer shall notify the department, in writing, that it has or has not met the investment and job requirements of this item. If the taxpayer fails to meet the investment and job requirements, the taxpayer shall pay to the State the amount of the tax that would have been paid but for this exemption. The running of the periods of limitations for assessment of taxes provided in Section 12-54-85 is suspended for this time period beginning with the taxpayer's first use of this exemption and ending with notice to the department that the taxpayer has or has not met the investment and job requirements of this item.

(b)   For purposes of this item:

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(i)     'Qualifying amusement park or theme park' means a park that is constructed and operated by a taxpayer who makes a capital investment of at least two hundred fifty million dollars at a single site and creates at least two hundred fifty full-time jobs and five hundred part-time or seasonal jobs.

(ii)   'Related or required machinery, equipment, and fixtures' means an ancillary apparatus used for or in conjunction with an amusement park ride or performance venue facility, or both, including, but not limited to, any foundation, safety fencing and equipment, ticketing, monitoring device, computer equipment, lighting, music equipment, stage, queue area, housing for a ride, electrical equipment, power transformers, and signage.

(iii)   'Performance venue facility' means a facility for a live performance, nonlive performance, including any animatronics and computer-generated performance, and firework, laser, or other pyrotechnic show.

(iv)   'Taxpayer' means a single taxpayer or, collectively, a group of one or more affiliated taxpayers. An 'affiliated taxpayer' means a person or entity related to the taxpayer that is subject to common operating control and that is operated as part of the same system or enterprise. The taxpayer is not required to own a majority of the voting stock of the affiliate."

B.   Notwithstanding the general effective date of this act, subsection A. of this section takes effect on the first day of the month succeeding the month in which this act is approved by the Governor.

SECTION   7.   Section 13-17-40(B)(1) of the 1976 Code, as last amended by Act 319 of 2006, is further amended to read:

"(1)   The President of Clemson University, President of the Medical University of South Carolina, President of the University of South Carolina at Columbia, the Governor or his designee, the Chairman of the House Ways and Means Committee's designee, the Chairman of the Senate Finance Committee's designee, and the chairman of the board of trustees shall serve as the executive committee of the board of trustees. The executive committee has all powers and authority of the board of trustees. The board shall have an advisory role only and shall advise the executive committee of the actions recommended by the board."

SECTION   8.   A.   Section 11-45-30(10) and (15) of the 1976 Code, as last amended by Act 125 of 2005, is further amended to read:

"(10)   'Lender' means a banking institution subject to the income tax on banks under Chapter 11 of Title 12, an insurance company subject to a state premium tax liability under pursuant to Chapter 7 of

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Title 38, a captive insurance company regulated under pursuant to Chapter 90 of Title 38, a utility regulated under pursuant to Title 58, or any other person approved by the authority pursuant to guidelines and regulations established by the authority pursuant to Section 11-45-100 a financial institution with proven experience in state-based venture capital transactions, pursuant to guidelines established by the Authority. Both the guidelines and the lender must be approved by the Budget and Control Board.

(15)   'Designated investor group' means any a person who enters into a designated investor contract with the authority pursuant to Section 11-45-50.

(16)   'Interest' means interest on the outstanding balance owed or owing to a lender by a designated investor group under such calculations, terms, or conditions as determined by the authority, provided that the method of calculating interest may be included in the tax credit certificates to the extent that the authority considers the information necessary or appropriate."

B.     Section 11-45-50(B)(1) of the 1976 Code, as last amended by Act 125 of 2005, is further amended to read:

"(1)   Each designated investor group selected pursuant to subsection (A)(3) of this section shall enter into a designated investor contract with the authority, which designated investor contract shall must contain those any investment guidelines and those other terms and conditions as the authority may deem considers necessary, advisable, or appropriate."

C.     Section 11-45-55(B) of the 1976 Code, as last amended by Act 125 of 2005, is further amended to read:

"(B)   The authority shall issue tax credit certificates to each lender contemporaneously with each loan made pursuant to this chapter in accordance with any guidelines and regulations established by the authority pursuant to Section 11-45-100. These guidelines and regulations shall relate to and govern, among other things, The tax credit certificates must describe procedures for the issuance, transfer and redemption of the certificates, and related tax credits. These certificates shall state also must describe the amounts, year, and conditions for redemption of the tax credits reflected on the certificates. Once a loan is made by a lender, the certificate issued to the lender shall be binding on the authority and this State and may not be modified, terminated, or rescinded. The form of the tax credit certificate must be approved by the Budget and Control Board."

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D.     Section 11-45-70(2)(a) of the 1976 Code, as last amended by Act 125 of 2005, is further amended to read:

"(a)   While each designated investor group shall give preference to investors, otherwise qualified, that agree to maintain either a headquarters or an office staffed by an investment professional in South Carolina, investments may be made with investors not principally located in South Carolina; provided, that if the investors are otherwise qualified under pursuant to this chapter and, together with related companies, have other venture capital investments in South Carolina or in South Carolina based companies or can provide evidence to the authority of prior investments in South Carolina or South Carolina based companies at least equal to the total amount of monies placed with that investor by the designated investor group."

E.     Chapter 45, Title 11 of the 1976 Code is amended by adding:

"Section 11-45-105.   Any guideline issued by the authority pursuant to this chapter must be approved by the Budget and Control Board."

SECTION   9.   If any 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 section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

SECTION   10.   Except as otherwise provided elsewhere in this act, this act takes effect upon approval by the Governor.     /

Renumber sections to conform.

Amend title to conform.

Senator SETZLER explained the amendment.

The amendment was adopted.

Senator PINCKNEY proposed the following amendment (AGM\18859MM07), which was adopted:

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

/ SECTION   _____.   Section 58-5-10(4) of the 1976 Code, as last amended by Act 318 of 2006, is further amended to read:

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"(4)   The term 'public utility' includes every corporation and person delivering natural gas distributed or transported by pipe, and every corporation and person furnishing or supplying in any manner heat (other than by means of electricity), water, sewerage collection, sewerage disposal, and street railway service, or any of them, to the public, or any portion thereof, for compensation; provided, however, that a corporation or person furnishing, supplying, marketing, and/or selling natural gas at the retail level for use as a fuel in self-propelled vehicles shall is not be considered a public utility by virtue of the furnishing, supplying, marketing, and/or selling of such natural gas and a corporation or person whose only purpose is the furnishing, supplying, marketing, and/or selling of treated effluent for irrigation purposes is not a public utility by virtue of the furnishing, supplying, marketing, and/or selling of treated effluent if the effluent is not permitted for consumption by a regulatory agency." /

Renumber sections to conform.

Amend title to conform.

Senator SETZLER explained the amendment.

The amendment was adopted.

Senator SETZLER proposed the following amendment (243R018.NGS), which was adopted:

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

/   SECTION   ___.   A.   Title 12 of the 1976 Code is amended by adding:

  "CHAPTER 63

Energy Freedom and Rural Development

Section 12-63-10.   This chapter may be cited as the 'Energy Freedom and Rural Development Act'.

Section 12-63-20.   (A)(1)   A sales tax rebate must be applied to a vehicle purchase beginning after June 30, 2008, and ending before July 1, 2013, as follows:

(a)   three hundred dollars for an in-state purchase or lease of a Flex-Fuel Vehicle (FFV), which is capable of operating on E85 motor fuel. An eligible vehicle for each model year is a model identified by the manufacturer as being a flexible-fuel vehicle capable of operating on E85 motor fuel. E85 motor fuel is a fuel comprised of eighty-five percent ethanol fuel and fifteen percent gasoline fuel;

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(b)   three hundred dollars for an in-state purchase or lease of a hydrogen-fueled vehicle and an advanced lean-burn vehicle. A hydrogen-fueled vehicle and an advanced lean-burn vehicle is a vehicle classified by the United States Department of Energy as a hydrogen-fueled vehicle or lean-burn vehicle;

(c)   three hundred dollars for an in-state purchase or lease of a hybrid vehicle, an electric vehicle, and a plug-in hybrid vehicle. A hybrid vehicle is defined as a hybrid gasoline-electric vehicle that is partially powered by a large on-board battery. An electric vehicle is defined as having at least three wheels, uses a large on-board battery or electrical storage device, and is rated for more than thirty-five miles per hour and approved for use by the United States Department of Transportation for use on United States Highways (excludes neighborhood electric vehicles (NEVs)). A plug-in hybrid vehicle is a vehicle classified by the United States Department of Energy as a hybrid vehicle capable of being propelled by both a gasoline-fueled internal combustion engine and an electric motor powered by a battery that can be recharged by being plugged into an external source of electricity;

(d)   three hundred dollars for the in-state purchase or lease of a high fuel-economy vehicle with a city fuel-economy rating by the United States Environmental Protection Agency (EPA) of thirty miles a gallon or higher; and

(e)   not more than five hundred dollars for the purchase of equipment for conversion of a conventional hybrid electric vehicle to a plug-in hybrid electric vehicle or for the in-state purchase of EPA-certified equipment for conversion of conventional vehicles to operate on propane, compressed natural gas, liquefied natural gas, hydrogen, or E85 (eighty-five percent ethanol and fifteen percent gasoline).

(2)   The rebates allowed pursuant to this subsection must be in the form of a payment sent to the buyer upon completion of a form created by the Department of Revenue and made available to the public, dealers, and the Department of Motor Vehicles.

(3)   The rebates allowed pursuant to this subsection shall be phased in at twenty percent a year until the rebate equals three hundred dollars for subitems (a) through (d) of subsection (A)(1) and five hundred dollars for subitem (e) of subsection (A)(1). The amount of rebate that a person may claim is limited to the amount of rebate in effect for the year in which the vehicle was purchased or converted, whichever is applicable.

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(B)(1)   An incentive payment for an alternative fuel purchase is provided beginning after June 30, 2009, and ending before July 1, 2012, and shall be provided from the General Fund, excluding revenue derived from the sales and use tax as follows:

(a)   five cents to the retailer for each gallon of E70 fuel or greater sold provided that the ethanol-based fuel is subject to the South Carolina motor fuel user fee;

(b)   twenty-five cents to the retailer for each gallon of pure biodiesel fuel sold so that the biodiesel in the blend is at least two percent B2 or greater, provided that the qualified biodiesel content fuel is subject to the South Carolina motor fuel user fee. Biodiesel fuel is a fuel for motor vehicle diesel engines comprised of vegetable oils or animal fats and meeting the specifications of the American Society of Testing and Materials (ASTM) D 6751; and

(c)   twenty-five cents to the retailer or wholesaler for each gallon of pure biodiesel fuel sold as dyed diesel fuel for 'off-road' uses, so that the biodiesel in the blend is at least two percent B2 or greater.

(2)   The payments allowed pursuant to this subsection must be made to the retailer upon compliance with verification procedures set forth by the Department of Agriculture.

(C)(1)   An incentive payment for production of electricity or methane gas fuel is provided beginning after June 30, 2008, and ending before July 1, 2018, and shall be provided from the General Fund, excluding revenue derived from the sales and use tax as follows:

(a)   One cent per kilowatt-hour (kwh) for electricity produced from biomass resources in a facility not using biomass resources before June 30, 2008, or facilities which produce at least twenty-five percent more electricity from biomass resources than the greatest three-year average before June 30, 2008, up to a maximum of one hundred thousand dollars per year per taxpayer for five years. The rebate is applicable to energy from a qualifying facility placed in service and first producing energy on or after July 1, 2008, and extends for five years, ending on July 1, 2013, or, if later, five years from the date the facility was placed in service and first produced electricity. In no case shall the rebate apply after June 30, 2018.

(b)   Nine cents per therm for methane gas fuel produced from biomass resources in a facility not using biomass resources before June 30, 2008, or facilities which produce at least twenty-five percent more methane gas from biomass resources than the greatest three-year average before June 30, 2008, up to a maximum of one hundred thousand dollars per year per taxpayer for five years. The rebate is

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applicable to energy from a qualifying facility placed in service and first producing energy on or after July 1, 2008, and extends for five years, and ending before July 1, 2013, or, if later, five years from the date the facility was placed in service and first produced electricity. In no case shall the rebate apply after June 30, 2018.

(2)   For purposes of this subsection, a biomass resource means wood, wood waste, agricultural waste, animal waste, sewage, landfill gas, and other organic materials.

(D)   The Department of Revenue may prescribe forms and procedures, issue policy documents, and distribute funds as necessary to ensure the orderly and timely implementation of the provisions of this section. The Department of Revenue shall coordinate with the Department of Agriculture as necessary.

(E)   Notwithstanding the incentive amounts provided pursuant to this section:

(1)   For a fiscal year all claims made pursuant to subsection (A)(1)(a) of this section must not exceed 2,050,000 dollars and must apply proportionately to all eligible claimants;

(2)   For a fiscal year all claims made pursuant to subitems (b) through (e) of subsection (A)(1) of this section must not exceed 2.1 million dollars and must apply proportionately to all eligible claimants; and

(3)   For a fiscal year all claims made pursuant to subsections (B) and (C) of this section must not exceed 2.1 million dollars and must apply proportionately to all eligible claimants.

Section 12-63-30.   A state-owned diesel fueling facility shall provide fuel containing at least five percent biodiesel fuel in all diesel pumps."

B.   All state-owned diesel fueling facilities must be in compliance with Section 12-63-30 by January 1, 2008.

SECTION   ___.   Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-3376.   (A)   For taxable years beginning after 2007, and before 2011, a taxpayer is allowed a tax credit against the income tax imposed pursuant to this chapter for the in-state purchase or lease of a plug-in hybrid vehicle. A plug-in hybrid vehicle is a vehicle that shares the same benefits as an internal combustion and electric engine with an all-electric range of no less than nine miles. The credit is equal to two thousand dollars. The credit allowed by this section is nonrefundable and if the amount of the credit exceeds the taxpayer's

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liability for the applicable taxable year, any unused credit may be carried forward for five years.

(B)   Notwithstanding the credit amount allowed pursuant to this section, for a fiscal year all claims made pursuant to this section must not exceed two hundred thousand dollars and must apply proportionately to all eligible claimants."

SECTION   ___.   Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-3630.   (A)   For taxable years beginning after 2007, and before 2012, a taxpayer is allowed a credit against the income tax imposed pursuant to this chapter for qualified expenditures for research and development.

(B)   For purposes of this section:

(1)   'Qualified expenditures for research and development' include expenditures to develop feedstocks and processes for cellulosic ethanol and for algae-derived biodiesel.

(2)   'Cellulosic ethanol' means fuel from ligno-cellulosic materials, including wood chips, corn stover, and switchgrass.

(C)   The credit is equal to twenty-five percent of qualified expenditures for research and development. A taxpayer's total credit in all years, for all expenditures allowed pursuant to this section must not exceed one hundred thousand dollars. Unused credits may be carried forward for five years after the tax year in which a qualified expenditure was made. The credit is nonrefundable.

(D)   The amount of the credit provided by this section to a taxpayer must be invested by the taxpayer in demonstration projects on or research and development of:

(1)   enzymes and catalysts;

(2)   best and most cost efficient feedstocks for South Carolina; and

(3)   product development.

(E)   Expenditures qualifying for a tax credit allowed by this section and investments made by a taxpayer pursuant to subsection (D) must be certified by the State Energy Office, in consultation with the Department of Agriculture and the South Carolina Institute for Energy Studies.

(F)   Notwithstanding the credit amount allowed pursuant to this section, for a fiscal year all claims made pursuant to this section must not exceed one hundred thousand dollars and must apply proportionately to all eligible claimants."

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SECTION   ___.   Section 12-6-3587 of the 1976 Code, as added by Act 386 of 2006, is further amended to read:

"Section 12-6-3587.   (A)   There is allowed as a tax credit against the income tax liability of a taxpayer imposed by this chapter an amount equal to twenty-five percent of the costs incurred by the taxpayer in the purchase and installation of a solar energy system, or both for heating water, space heating, air cooling, or the generation of electricity in or on a facility in South Carolina and owned by the taxpayer. The tax credit allowed by this section must not be claimed before the completion of the installation, and must be claimed for the year that the costs are incurred. The amount of the credit in any year may not exceed three thousand five hundred dollars for each facility or fifty percent of the taxpayer's tax liability for that taxable year, whichever is less. If the amount of the credit exceeds three thousand five hundred dollars for each facility, the taxpayer may carry forward the excess for up to ten years.

(B)   'System' includes all controls, tanks, pumps, heat exchangers, and other equipment used directly and exclusively for the conversion of solar energy for heating or cooling system. The term 'system' does not include any land or structural elements of the building such as walls and roofs or other equipment ordinarily contained in the structure. No credit shall be allowed for a solar system unless the system is certified for performance by the nonprofit Solar Rating and Certification Corporation or a comparable entity endorsed by the South Carolina Energy Office."

SECTION   ___.   A.   Subsections (A), (B), and (C) of Section 12-6-3600 of the 1976 Code, as added by Act 386 of 2006, are further amended to read:

"(A)   For taxable years beginning after 2006, and before 2014, there is allowed a credit against the tax imposed pursuant to this chapter for any corn-based ethanol or soy-based biodiesel facility which is in production at the rate of at least twenty-five percent of its name plate design capacity for the production of corn-based ethanol or soy-based biodiesel, before denaturing, on or before December 31, 2009. The facility must be placed in use after 2006. The credit equals twenty cents a gallon of corn-based ethanol or soy-based biodiesel produced and is allowed for sixty months beginning with the first month for which the facility is eligible to receive the credit and ending not later than December 31, 2014. The credit only may be claimed if the corn-based ethanol or soy-based biodiesel facility maintains an average production rate of at least twenty-five percent of its name plate design capacity for

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at least six months after the first month for which it is eligible to receive the credit.

(B)   As used in this section:

(1)   "Ethanol facility" means a plant or facility primarily engaged in the production of ethanol or ethyl alcohol derived from grain components, coproducts, or byproducts;

(2)   "Biodiesel facility" means a plant or facility primarily engaged in the production of vegetable or animal based fuels used as a substitute for diesel fuel; and

(3)   "Name plate design capacity" means the original designed capacity of an ethanol or biodiesel facility. Capacity may be specified as bushels of grain ground or gallons of ethanol or biodiesel produced a year. For taxable years beginning after 2006, and before 2014, there is allowed a credit against the tax imposed pursuant to this chapter for an ethanol facility using a feedstock other than corn or a biodiesel facility using a feedstock other than soy oil which is in production at the minimum rates provided pursuant to this subsection of its name plate design capacity for the production of ethanol or biodiesel, before denaturing, on or before December 31, 2009. The credit equals thirty cents a gallon of noncorn ethanol or nonsoy oil biodiesel produced and is allowed for sixty months beginning with the first month for which the facility is eligible to receive the credit and ending no later than December 31, 2014. The credit is continued only if the ethanol or biodiesel facility maintains the average minimum production rates provided pursuant to this subsection of its name plate design capacity for at least six months after the first month for which it is eligible to receive the credit.

(C)   An ethanol or biodiesel facility eligible for a tax credit under subsection (A) of this section also shall receive a credit against the tax imposed pursuant to this chapter the amount of twenty cents a gallon of ethanol or biodiesel produced in excess of the original name plate design capacity which results from expansion of the facility completed after 2006 and before 2009. The tax credit is allowed for sixty months beginning with the first month for which production from the expanded facility is eligible to receive the tax credit and ending not later than 2014. As used in this section:

(1)   'Ethanol facility' means a plant or facility primarily engaged in the production of ethanol or ethyl alcohol derived from renewable and sustainable bioproducts used as a substitute for gasoline fuel.

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(2)   'Biodiesel facility' means a plant or facility primarily engaged in the production of plant or animal based fuels used as a substitute for diesel fuel.

(3)   'Name plate design capacity' means the original designed capacity of an ethanol or biodiesel facility. Capacity may be specified as bushels of grain ground or gallons of ethanol or biodiesel produced a year."

B.   Section 12-6-3600 of the 1976 Code, as added by Act 386 of 2006, is amended by adding a new subsection at the end to read:

"(H)   Notwithstanding the credit amount allowed by this section, for a fiscal year all claims made pursuant to this section must not exceed eight hundred thousand dollars and must apply proportionately to all eligible claimants."

SECTION   ___.   A.   Section 12-6-3610 of the 1976 Code, as added by Act 386 of 2006, is further amended to read:

"Section 12-6-3610.   (A)   As used in this section, renewal 'renewable fuel' means liquid nonpetroleum based fuels that can be placed in motor vehicle fuel tanks and used as a fuel in a highway vehicle. It includes all forms of fuel commonly or commercially known or sold as biodiesel and ethanol.

(B)(1)   A taxpayer that purchases or constructs and installs and places in service in this State a qualified commercial facility property that is used for distribution or dispensing renewable fuel specified in this subsection, at a new or existing commercial fuel distribution or dispensing facility is allowed a credit equal to twenty-five percent of the cost to the taxpayer of purchasing, constructing, and installing the property against the taxpayer's liability for a tax imposed pursuant to this chapter constructing and installing the part of the distribution facility or dispensing facility, including. Eligible property includes pumps, storage tanks, and related equipment that is directly and exclusively used for distribution, dispensing, or storing renewable fuel. A facility taxpayer is qualified for a tax credit provided pursuant to this subsection if the equipment used to store, distribute, or dispense renewable fuel is labeled for this purpose and clearly identified as associated with renewable fuel. The entire credit may not be taken for the taxable year in which the facility property is placed in service but must be taken in three equal annual installments beginning with the taxable year in which the facility property is placed in service. If, in one of the years in which the installment of a credit accrues, the portion of the facility property directly and exclusively used for distributing, dispensing, or storing renewable fuel is disposed of or taken out of

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service and is not replaced, so that the facility no longer distributes, dispenses, or stores renewable fuel, the credit expires and the taxpayer may not take any remaining installment of the credit. The unused portion of an unexpired credit may be carried forward for not more than ten succeeding taxable years.

(2)   For purposes of this subsection, 'renewable fuel' means E70 or greater ethanol fuel dispensed at the retail level for use in motor vehicles and pure ethanol or biodiesel fuel dispensed by a distributor or facility that blends these nonpetroleum liquids with gasoline fuel or diesel fuel for use in motor vehicles.

(C)   A taxpayer that constructs and places in service in this State a commercial facility for processing renewable fuel the production of renewable fuel is allowed a credit equal to twenty-five percent of the cost to the taxpayer of constructing or renovating a building and equipping the facility for the purpose of producing renewable fuel. Production of renewable fuel includes intermediate steps such as milling, crushing, and handling of feedstock and the distillation and manufacturing of the final product. The entire credit may not be taken for the taxable year in which the facility is placed in service but must be taken in seven equal annual installments beginning with the taxable year in which the facility is placed in service. If, in one of the years in which the installment of a credit accrues, the facility with respect to which the credit was claimed is disposed of or taken out of service, the credit expires and the taxpayer may not take any remaining installment of the credit. A taxpayer's total credit in all years, for all expenditures allowed pursuant to this subsection, must not exceed one million dollars. The unused portion of an unexpired credit may be carried forward for not more than ten succeeding taxable years.

(D)   A taxpayer that claims any other credit allowed under this article with respect to the costs of constructing and installing a facility may not take the credit allowed in this section with respect to the same costs.

(E)   Notwithstanding the credit amounts allowed pursuant to this section, for a fiscal year all claims made pursuant to this section must not exceed one hundred fifty thousand dollars and must apply proportionately to all eligible claimants."

B.   This SECTION takes effect January 1, 2008.

SECTION   ___.   Section 12-6-3620 of the 1976 Code, as added by Act 386 of 2006, is further amended to read:

"Section 12-6-3620.   (A)   For taxable years beginning after 2007, there is allowed a tax credit against the income tax imposed pursuant to

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Section 12-6-530 or license fees imposed pursuant to Section 12-20-50, or both, for twenty-five percent of the costs incurred by a taxpayer for use of methane gas taken from a landfill to provide power for a manufacturing facility the purchase and installation of equipment used to create heat, power, steam, electricity, or another form of energy for commercial use from a fuel consisting of no less than ninety percent biomass resource. Costs incurred by a taxpayer and qualifying for the credit allowed by this section must be certified by the State Energy Office, in consultation with the Department of Agriculture and the South Carolina Institute for Energy Studies.

(B)   A taxpayer's credit utilization in any one year, for all expenditures allowed pursuant to this section, must not exceed six hundred fifty thousand dollars. The tax credit allowed by this section may not exceed fifty percent of the liability of the taxpayer for the tax taxes imposed pursuant to Section Sections 12-6-530 and 12-20-50. Unused credits may be carried forward for ten fifteen years.

(C)   For purposes of this section, manufacturing facility is as defined in Section 12-6-3360(M)(5). For purposes of this section:

(1)   'Biomass resource' means wood, wood waste, agricultural waste, animal waste, sewage, landfill gas, and other organic materials.

(2)   'Commercial use' means a use intended for the purpose of generating a profit.

(3)   If the facility ceases to use biomass resources as its primary fuel source before the entire credit has been utilized, it is ineligible to utilize any remaining credit until it resumes using biomass resources as its primary fuel source (at least ninety percent). The fifteen-year carry forward period must not be extended due to periods of noncompliance.

(D)   Notwithstanding the credit amount allowed pursuant to this section, for a fiscal year all claims made pursuant to this section must not exceed six hundred fifty thousand dollars and must apply proportionately to all eligible claimants."

SECTION   ___.   Section 12-28-110(70) of the 1976 Code, as last amended by Act 386 of 2006, is further amended to read:

"(70)   'Biodiesel' means a fuel composed of mono-alkyl esters of long chain fatty acids generally derived from vegetable oils or animal fats, commonly known as B100, that is commonly and commercially known or sold as a fuel that is suitable for use in a highway vehicle. The fuel meets this requirement if, without further processing or blending, the fuel is a fluid and has practical and commercial fitness for use in the propulsion of a highway vehicle. 'Biodiesel' means vegetable or animal based fuels used as a substitute for diesel fuel a diesel fuel

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substitute produced from nonpetroleum renewable resources that meets the registration requirements for fuels and fuel additives established by the United States Environmental Protection Agency pursuant to Section 211 of the Clean Air Act (42 U.S.C. 7545) and that meets the American Society for Testing and Materials D6751-02a Standard Specification for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels."/

Renumber sections to conform.

Amend title to conform.

Senator SETZLER explained the amendment.

The amendment was adopted.

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

THE SENATE PROCEEDED TO THE INTERRUPTED DEBATE.

COMMITTEE AMENDMENT AMENDED AND ADOPTED
AMENDMENT PROPOSED, DEBATE INTERRUPTED

H. 3124 (Word version) -- Reps. Walker, Harrell, Harrison, Cotty, Bingham, Toole, D.C. Smith and Crawford: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 62 TO TITLE 59 SO AS TO PROVIDE FOR THE PUBLIC SCHOOL OPEN ENROLLMENT CHOICE PROGRAM IN THE PUBLIC SCHOOL SYSTEM OF THIS STATE, TO DEFINE CERTAIN TERMS, TO PROVIDE FOR AN APPLICATION PROCESS FOR STUDENTS WISHING TO TRANSFER, TO PROVIDE RESPONSIBILITIES OF RECEIVING SCHOOL DISTRICTS, TO PROVIDE STANDARDS OF APPROVAL, PRIORITIES OF ACCEPTING STUDENTS, AND CRITERIA FOR DENYING STUDENTS, TO PROVIDE THAT THE PARENT IS RESPONSIBLE FOR TRANSPORTING THE STUDENT TO SCHOOL, TO PROVIDE FOR THE FUNDING OF THE OPEN ENROLLMENT CHOICE PROGRAM, TO PROVIDE THAT A STUDENT MAY NOT PARTICIPATE IN INTERSCHOLASTIC ATHLETIC CONTESTS DURING THE FIRST YEAR OF ENROLLMENT, TO PROVIDE THAT A RECEIVING DISTRICT SHALL ACCEPT CERTAIN CREDITS TOWARD A STUDENT'S REQUIREMENTS FOR GRADUATION, TO PROVIDE THAT A SCHOOL DISTRICT

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MAY CONTRACT WITH CERTAIN ENTITIES FOR THE PROVISION OF SERVICES, AND TO PROVIDE THAT THE STATE DEPARTMENT OF EDUCATION SHALL CONDUCT AN ANNUAL SURVEY AND REPORT THE RESULTS TO THE GENERAL ASSEMBLY.

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

Senator COURSON was recognized to explain the Bill.

Amendment No. P-1B

Senators GROOMS, McCONNELL, THOMAS, FAIR, VERDIN, CAMPSEN, BRYANT and VAUGHN proposed the following Amendment P-1B (3124R008.LKG), which was not adopted:

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

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

  "Chapter 62

South Carolina Public School Choice Programs

Section 59-62-10.   (A)   There is established a district choice program and an open enrollment program within the public school system of this State.

(B)   In establishing these programs, it is the objective of the General Assembly to make the South Carolina public school system the most choice-driven public school system in the nation by increasing student participation in and student access to public school educational opportunities both within and outside their resident school district regardless of where they may live or their socioeconomic status. It is therefore the intent of the General Assembly that this chapter be construed broadly to maximize parental choice options and student access to educational opportunities that are not now available.

Section 59-62-20. As used in this chapter:

(1)   'School district choice programs' means a public education delivery system that requires school districts to provide for student programs of choice offered within the district, which may include, but not be limited to, public charter schools, virtual school programs, extended day or school year programs, flexible school scheduling programs, Montessori programs, single-gender programs, learning team programs, magnet school programs, and school-within-a-school programs, and to provide for school assignments to these programs

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using parents' indicated preferential choice as a significant factor for assigning students within the district.

(2)   'Open enrollment' means a public education delivery system that requires school districts to allow for school assignments of students outside of the student's resident district using parents' indicated preferential choice as a significant factor.

(3)   'Attendance zone' means the geographic area used to determine a particular school assignment for students in the district of residence.

(4)   'Capacity' as established by State Board of Education guidelines means individual school capacities to include any district projections per school for the school year impacted by a transfer pursuant to this chapter. However, when defining capacity, only permanent building structures are allowed in the calculation of capacity.

(5)   'District of residence' means a school district in which the parent or guardian of a student resides.

(6)   'Failing public school' means a public school in the State that has received a rating of 'below average' or 'unsatisfactory' as its absolute grade on its most recent annual report card under the education accountability act.

(7)   'Feeder pattern' means the schools to which students are assigned upon the completion of the highest grade level of their previous school.

(8)   'Good cause' means a change in a child's residence due to a change in parent or guardian's residence, a change in a child's parent's marital status, a change caused by a guardianship or custody proceeding, placement of a child in foster care, adoption, participation by a child in an approved foreign exchange program, participation by a child in a substance abuse or mental health treatment program, revocation of a charter school contract, or a set of circumstances consistent with this definition of 'good cause'.

(9)   'Independent school' means a school, other than a public school, at which the compulsory attendance requirements of Section 59-56-10 may be met and that does not discriminate based on the grounds of race, color, or national origin. 'Independent school' includes home schools as provided in Article 1, Chapter 65, Title 59.

(10)   'Parent' means the parent or legal guardian of a student of the State.

(11)   'Receiving district' means a school district other than the district of residence in which a student seeks to enroll. Where the

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district of residence includes more than one school providing instruction at a given grade level, and a parent of a child entering the grade level applies to enroll his child in a public school in the district of residence other than the program in which the child would normally be assigned to attend based on the child's place of residence, the district of residence also must be considered to be the receiving district for purposes of this chapter.

(12)   'Siblings' means all children residing in the same household on a permanent basis who have the same mother or father or guardian.

(13)   'Working days' means working days as determined by a school district's administrative calendar.

Section 59-62-30.   (A)   The State Department of Education shall establish the Office of School Choice and Innovation. This office shall provide school districts with information on various school choice programs, best practice information, staff development, assistance in planning for transportation needs, and technical assistance for developing and implementing public school choice and open enrollment programs throughout the State.

(B)   In conjunction with a series of town meetings held throughout the State, the Office of School Choice and Innovation shall conduct a statewide inventory. The inventory shall be designed to determine the public's knowledge and understanding of public school choice. Additionally, the inventory shall collect information on district growth projections, choice programs available in districts, and choice options parents would like to see implemented in their district of residence. With the information received from the statewide inventory, the Office of School Choice and Innovation shall compile and disseminate the results to the school districts of the State and members of the General Assembly.

(C)   In the 2007-08 school year, with funds appropriated by the General Assembly, the Office of School Choice and Innovation shall establish a School District Choice and an Open Enrollment pilot program. Participation of districts in the pilots shall be voluntary. The School District Choice pilot program shall be designed to pair districts currently offering multiple student choice options with districts where student choice options are limited or do not exist, for the purpose of offering guidance, technical assistance, and staff development. The Open Enrollment pilot program shall be designed to provide nontuition choice options for students between adjacent school districts. The Office of School Choice and Innovation shall offer technical assistance

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to the pilot districts in developing and implementing Open Enrollment choice programs.

(D)   Throughout the pilot year, the Office of School Choice and Innovation shall provide information to all school districts regarding obstacles that have the potential of interfering with the implementation of quality school choice and open enrollment programs and shall make recommendations for overcoming and avoiding those obstacles. The information provided shall also include costs associated with the implementation of both pilot programs.

(E)   The State Board of Education shall develop guidelines listing factors to be used in determining school capacity. In developing these guidelines, a task force shall be established with membership to include, but not be limited to, school board members, superintendents, principals, parents, and business and community leaders. The membership of the task force shall reflect urban and rural areas of the State.

(F)   During the 2007-08 school year, each school district of the State shall convene a School Choice Committee. The committee shall include, but not be limited to, members representing parents, community and business leaders, teachers, and students. The committee membership shall represent the ethnicity and geographic diversity of the district. With information obtained from the statewide survey, the School Choice Committee shall develop an action plan incorporated in the school renewal plan for providing parents and students choice options within the district and shall include a timeline and budget proposal for implementation of the identified options. Each district shall submit their plan to the Office of School Choice and Innovation for review, and if necessary the Office of School Choice and Innovation shall provide recommendations. Districts having plans currently in place shall also submit their plans.

Section 59-62-40.   (A)   Beginning in the 2008-09 school year and succeeding school years, with innovation funds appropriated by the General Assembly, each school district of the State shall begin implementation of their school choice plans. At a minimum, each district shall begin by providing a choice option for students at the elementary, middle, and high school level. With approval from the State Department of Education, districts may utilize technical assistance funds provided pursuant to Section 59-18-1595 to assist in the implementation of school choice plans.

(B)   During the 2008-09 school year, the School Choice Committee established pursuant to Section 59-62-30 and school district

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administration shall develop plans to implement an Open Enrollment Choice Program as outlined in this chapter. However, nothing in this chapter shall prohibit a school district from implementing the open enrollment choice program prior to the 2009-10 school year.

(C)   Based on the findings obtained from the pilot programs established in Section 59-62-30(C) and the implementation of district choice programs, the State Department of Education shall issue a report to the General Assembly by January 1, 2009. The report shall include, but not be limited to, districts participating in the pilot programs and number of students participating in new choice options, types of choice options being implemented in each school district, number of students participating in school district choice options, and recommended changes to this chapter, to include the basis for such recommendations.

Section 59-62-50.   (A)   Beginning with the 2009-10 school year and each succeeding school year, a parent residing in this State may enroll his child in a public school in any school district without the requirement of payment of tuition in the manner provided in this chapter.

(B)   Each school district of the State shall participate in public school open enrollment consistent with this chapter. A parent of a school age child may apply to enroll his child in a school in a receiving district by submitting a written application, on a form provided by the State Department of Education, to the receiving district and to the district of residence postmarked not later than January fifteenth, for enrollment during the following school year for grades kindergarten through twelve. The application shall identify the reason for seeking enrollment in the receiving district. The parent may request a particular school or program as part of the application. However, the assignment of the student must be determined by the receiving school district based on capacity.

(C)   If a parent of a school age child fails to file an application by the deadline established in subsection (A), and good cause exists for the failure to meet the deadline, the receiving district and the district of residence shall accept and consider the application in the same manner as if the deadline had been met.

(D)   Upon agreement between the resident and the nonresident school boards, or between the affected schools within the resident district, the deadline for application may be waived.

(E)   The parent of a school age child may withdraw the application at any time before the first day of the school year by giving written

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notice to the boards of the receiving district and the district of residence.

(F)   The parent or guardian of the student approved to enroll shall confirm in writing to the nonresident school district by April first whether the student intends to enroll. Notice of intent to enroll in the nonresident district obligates the student to attend the nonresident district during the following school year, unless the boards of the resident and nonresident school districts agree in writing to allow the student to transfer back to the resident district, or good cause can be substantiated.

(G)   A parent who applies and whose child is approved to enroll in a nonresident school district, but whose child fails to attend the nonresident district, is ineligible to apply again for enrollment in that nonresident district unless good cause can be substantiated.

Section 59-62-60.   (A)   Within ten working days of receiving an application, the receiving district shall notify the district of residence that it has received the application. This notification must include the grade level and school the student previously attended in the district of residence.

(B)   The board of trustees of the receiving district shall take action no later than the last day of February of the school year preceding enrollment to approve or deny an application for admission in grades kindergarten through twelve.

(C)   The board of the receiving district shall take action to approve or deny an application filed in accordance with Section 59-62-50 within forty-five days of the receipt of the application.

(D)   The board of the receiving district shall notify the parent of the child and the board of the district of residence in writing within five working days after board action. In the case of denial, a written explanation of the denial must be included in the notification.

Section 59-62-70.   (A)   In implementing the provisions of this chapter, a student who currently resides in the attendance zone of a school must not be displaced by students transferring from outside the attendance zone.

(B)   A school district is not required to:

(1)   accept students residing outside the school district in excess of three percent of its highest average daily membership in any year over the preceding ten-year period. Accepting students residing outside the school district must be phased in at one-half of one percent of the district's previous year's average daily membership. Enrolled students residing outside the school district must continue to be counted in the

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receiving district's acceptance percentage until the student is no longer enrolled in a receiving district school;

(2)   make alterations in the structure of a requested school;

(3)   establish and offer a particular program in a school if the program is not currently offered in the requested school; or

(4)   alter or waive an established eligibility criteria for participation in a particular program, including age requirements, course prerequisites, or required levels of performance.

(C)   The school board of trustees shall adopt specific policies regarding capacity standards, standards of approval, and priorities of acceptance.

(1)   Standards of approval may include consideration of the capacity of a program, class, or grade level. However, district standards for capacity must not be set less than seventy-five percent of those established in State Board of Education regulations. Standards must not be based on ethnicity, national origin, gender, income level, or include an applicant's athletic, artistic, or other extracurricular ability, disabling conditions, English proficiency level, or previous disciplinary proceedings, except that an expulsion from another district may be included. Standards may include an applicant's previous academic achievement only if enrollment in that program or school is based upon specific levels of performance uniformly applied to all seeking enrollment to that program or school.

(2)   In developing priorities of acceptance, applications must be considered in the order they are received. However, in the assignment of students, priority must be given:

(a)   first, to students residing within the district including students currently enrolled in independent schools and home schools, but who desire to attend a school outside their attendance zone;

(b)   second, to returning students who continue to meet the requirements for the program or school;

(c)   third, to students who meet the requirements for the program or school and who seek to attend the designated school in the district's feeder pattern;

(d)   fourth, to the siblings of students residing in the same household already enrolled in the school, provided that any siblings seeking priority under this section meet the requirements for the program or school; and

(e)   fifth, to students whose parent or legal guardian is assigned to the school as his or her primary place of employment.

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(D)   A receiving school district only may deny resident students living outside the attendance zone or nonresident students permission to enroll for the following reasons:

(1)   there is a lack of capacity in the district, school, or program requested;

(2)   the school requested does not offer the appropriate programs or is not structured or equipped with the necessary facilities to meet special needs of a student;

(3)   the student does not meet established eligibility criteria for participation in a particular program, including age requirements, course prerequisites, or required levels of performance;

(4)   a voluntary or court-ordered desegregation plan is in effect for the school district, and the denial is necessary in order to enable compliance with the desegregation plan; or

(5)   the student is expelled or is in the process of being expelled.

A denial of a request by the board of a receiving district is subject to appeal. The parent or legal guardian may appeal a denial to the State Board of Education within thirty days after the date the notification of denial was received by the parent or legal guardian. The State Board of Education shall promulgate regulations establishing the basis and procedures for hearing appeals.

(E)   A student who resides in the attendance zone of a failing public school that has an application denied by the board of a receiving district pursuant to subsection (D)(1) or an application that has been deemed to have been denied pursuant to this subsection, is eligible to receive an Educational Opportunity Scholarship if the student's household income is less than two hundred percent of the federal poverty rate. A student's application to the school board of a receiving district is deemed to have been denied if the school board of the receiving district to which the application was made does not make a decision and transmit that decision to the applicant within forty-five days of the board's receipt of the application.

(F)   A sending school district only may deny resident students a transfer to a receiving district when the transfer would violate a voluntary or court-ordered desegregation plan in effect for that district.

(G)   A district may not take any action to prohibit or prevent application by resident students to attend school in a nonresident school district or to attend another school within the resident district.

(H)   Each board of trustees of a school district annually shall submit capacity figures for each of its schools to the State Department of Education. These figures must be used by the State Board of Education

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in addition to any other factors it considers appropriate in developing board policy to determine a school's capacity. Each district is responsible for annually posting school capacities on the district and school websites. Additionally, information regarding the current enrollment of the school and its percentage of capacity must be included. This information must be verified by the State Department of Education.

Section 59-62-80.   (A)   A student approved for enrollment in a nonresident district school or program pursuant to this chapter is entitled to remain enrolled in that district until completion of the final grade within that school without being required to submit annual applications. Before completion of that final grade of the school, application for enrollment in the feeder school must be submitted pursuant to this chapter.

(B)   A receiving district may terminate the enrollment of a nonresident student enrolled pursuant to this chapter at the end of a school year if the:

(1)   student meets the definition of a habitual truant;

(2)   student fails to comply with requirements for attending school or class;

(3)   student has incurred multiple violations of, or one or more serious violations of, the receiving district's student code of conduct; or

(4)   board of the district of residence, the board of the receiving district, and the parent having submitted the application for enrollment agree for any reason to terminate the enrollment.

Section 59-62-90.   (A)   The parent is responsible for transporting the student to and from the school. However, nothing in this chapter shall be construed as prohibiting resident districts or the receiving districts from providing bus transportation on any approved route and districts are encouraged to collaborate in the development of transportation plans for students whose parents are unable to provide transportation.

(B)   Parents or guardians of students attending a receiving school district, whose family income is one hundred eighty-five percent or less of the federal poverty guidelines as promulgated annually by the U.S. Department of Health and Human Services, making them eligible for free or reduced-price lunches, shall be eligible for transportation services provided by the school district or shall be eligible for transportation reimbursement from the district with funds appropriated by the General Assembly for that purpose.

(C)   With funds appropriated by the General Assembly, the State Department of Education shall reimburse receiving school districts for

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transportation expenses as provided in subsection (B) of this section. The rate of reimbursement shall be pursuant to State Board of Education regulations.

Section 59-62-100.   (A)   A student enrolled in a receiving district pursuant to this chapter must be included in the average daily membership of the receiving district for the purposes relating to the allocation of all state and federal education funding and must not be included in the average daily membership of the district of residence for these purposes.

(B)   Districts shall receive one hundred percent of the base student cost from the State for nonresident students enrolled pursuant to this chapter.

Section 59-62-110.   (A)   A student enrolled in a receiving district pursuant to this chapter is ineligible to participate in interscholastic athletic contests and competitions for one calendar year after the student's date of enrollment in the receiving district or, if the student makes subsequent transfers, for one calendar year from the date of each transfer. This restriction does not apply to a student's initial transfer from his district of residence if the sport in which the student wishes to participate is not offered in the district of residence.

(B)   A student may not gain eligibility to participate in extracurricular activities in violation of policies governing eligibility as a result of an enrollment transfer to another school district.

Section 59-62-120.   (A)   A receiving district shall accept credits for a course completed in another accredited school and shall apply those credits toward the student's requirements for graduation.

(B)   The receiving district shall award a diploma to a nonresident student if the student meets all state requirements for graduation.

Section 59-62-130.   Open enrollment does not preclude a school district from contracting with other school districts, educational service providers, or other state-approved entities for the provision of services. A child with a disability receiving services from another district pursuant to contract due to lack of appropriate programming in his resident school district is not eligible to transfer as an open enrollment student into the district currently providing services but is eligible to transfer as an open enrollment student into another district that has an appropriate program and has not reached enrollment capacity.

Section 59-62-140.   The State Department of Education shall conduct an annual survey of districts to determine the number of students participating in the open enrollment program. The participants must be reported according to the number of resident students enrolling in a

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school other than the school in their attendance zone, the number of nonresident students enrolled, the number of denied applications, and reasons for denial. The State Department of Education shall report these findings to the General Assembly annually by January first.

Section 59-62-150.   Implementation of this chapter each fiscal year is contingent upon the appropriation of adequate funding for implementation as documented by a fiscal impact statement provided by the Office of State Budget of the State Budget and Control Board to the General Assembly and the State Department of Education on or before April fifteenth of each year estimating the cost of implementation for the ensuing fiscal year; provided that for fiscal year 2007-2008 the cost of implementation shall be as determined in the fiscal impact statement of the act enacting this chapter. There is no mandatory financial obligation to public schools or public school districts with respect to this chapter if state funding is not appropriated for each fiscal year of implementation as provided for in the annual fiscal impact statement of the Office of the State Budget of the State Budget and Control Board provided for above.

Section 59-62-160.   If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this chapter 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 chapter, the General Assembly hereby declaring that it would have passed this chapter, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

SECTION   2.     Chapter 63, Title 59 of the 1976 Code is amended by adding:

  "Article 6

Educational Opportunity Scholarship

Section 59-63-600.   This article may be referred to and cited as the "South Carolina Educational Opportunity Act".

Section 59-63-610.   As used in this article:

(1)   'Failing public school' means a public school in the State that has received a rating of 'below average' or 'unsatisfactory' as its absolute grade on its most recent annual report card under the education accountability act.

(2)   'Parent' means the natural or adoptive parent or legal guardian of a child.

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(3)   'Independent school' means a school, other than a public school, at which the compulsory attendance requirements of Section 59-56-10 may be met and that does not discriminate based on the grounds of race, color, or national origin. 'Independent school' includes home schools as provided in Article 1, Chapter 65, Title 59.

(4)   'Public school' means a public school in the State as defined in Section 59-1-120.

Section 59-63-620.   (A)   A student whose household income is less than two hundred percent of the federal poverty rate is eligible to transfer to an independent school pursuant to this article if the student resides in the attendance zone of a failing public school, submitted an application pursuant to Section 59-62-70(D), and that application was denied or it has been deemed to have been denied.

(B)   A student eligible to transfer to an independent school pursuant to this section may contact the Department of Education for a list of independent schools to which the student may transfer.

Section 59-63-630.   (A)   A student that is eligible to transfer to an independent school pursuant to this article must choose the independent school that he would like to attend and apply for admission to that school. When the student's application has been accepted, the student must give the Department of Education written notice that his application for admission to an independent school has been accepted, identify the school, and provide the expected date of enrollment. The independent school must give the Department of Education written notice that verifies the acceptance and enrollment of the student and must also submit a request for funds to the department.

(B)   When the Department of Education receives the notice and the request for funds required in subsection (A), it must issue a check payable to the independent school selected by the student equal to one hundred percent of the base student cost from the State as provided for in the annual Appropriations Act. The check must be delivered or mailed by the Department of Education to the school at which the scholarship is to be used.

(C)   A student who is taught at home is not eligible to receive a scholarship pursuant to this article.

Section 59-63-640.   An independent school that accepts scholarship students pursuant to this article:

(1)   shall comply with federal anti-discrimination law pursuant to 42 U.S.C. Section 1981;

(2)   shall meet state and local health and safety laws and codes;

(3)   shall comply with state statutes relating to independent schools;

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(4)   shall employ or contract with teachers who hold a baccalaureate or higher degree, or have at least three years of teaching experience in a public or independent school, or have special skills, knowledge, or expertise that qualifies them to provide instruction in subjects taught;

(5)   must be academically accountable to the parent or guardian for meeting the education needs of the student;

(6)   shall administer to all scholarship students a nationally recognized achievement test and report the school's aggregate score to all parents in accordance with Section 59-63-650;

(7)   shall adhere to the tenets of the school's published disciplinary procedures prior to the expulsion of an educational opportunity scholarship program participant;

(8)   shall accept scholarship students who meet the admissions criteria of the school on a random, religious neutral basis, without regard to the student's past academic history, with preference given to siblings of other scholarship students;

(9)   may not compel a scholarship student to profess a specific ideological belief, to pray, or to worship;

(10)   must have a physical location in the State of South Carolina where the students attend classes;

(11)   shall demonstrate their financial viability by showing they can repay any funds that might be owed to the State, if they are to receive more than fifty thousand dollars in scholarship payments during the school year by filing with the department of revenue, before the beginning of the school year:

(a)   a surety bond payable to the State in an amount equal to the aggregate amount of scholarship revenue expected to be paid to the school by participating families during the school year; or

(b)   Financial information that demonstrates that the school has the ability to pay an aggregate amount equal to the amount of scholarship revenue expected to be paid to the school by participating families during the school year.

Section 59-63-650.   To ensure that schools provide academic accountability to parents of students in the educational opportunity scholarship program, the General Assembly, and the Governor, participating schools annually shall administer either the state's Palmetto Achievement Test (PACT) test or it's equivalent, or a nationally recognized norm-referenced test, such as the Stanford Achievement, Iowa Test of Basic Skills, or both, in math and language arts to each student participating in the program. Participating schools publicly shall disclose the aggregate results of the tests by grade level,

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but only if the disclosure of the aggregate results is in compliance with 20 U.S.C. Section 1232g, Family Educational Rights and Privacy Act of 1974, and shall provide the parents of each student with a copy of the results. Participating schools shall also provide aggregate results by grade level to the Chairman of the House Education and Public Works Committee, the Senate Education Committee, and the Governor no later than August 31 of the school year in which the tests are administered.

Section 59-63-660.   Once a student transfers from a failing school pursuant to this article, the student is eligible for the scholarship program until he graduates from high school regardless of a subsequent change in the rating of the school from which he transferred.

Section 59-63-670.   If a qualifying student's enrollment in an independent school is terminated before the end of the school year, the independent school shall pay to the state on a pro rata basis any excess tuition paid. At the time of making the refund, the independent school shall issue a receipt reflecting the date, amount, and payee for each refund and shall provide a copy of the receipt to the Department of Revenue.

Section 59-63-680.   The Department of Revenue may promulgate regulations to aid in the performance of its duties pursuant to this chapter; however, its power does not extend to matters of school governance, curriculum, hiring or firing, or religious beliefs or practices.

Section 59-63-690.   The Department of Revenue may conduct examinations and investigations whenever it believes that the provisions of this chapter have been evaded or violated in any manner. All powers possessed by the department as provided in Title 12 to conduct examinations and investigations apply to examinations and investigations conducted pursuant to this section.

Section 59-63-700.   (A)   Annually, the State Budget and Control Board shall provide for the preparation of a report on the impact of the implementation of this chapter on school enrollment and state and local funding of public schools for the fiscal year most recently completed. The report must include, but need not be limited to, an analysis of and statement on the:

(1)   change in public school enrollment, by school district, attributable to this chapter; and

(2)   amount of funds the State would have had to expend for public schools under the education funding formula in existence on or

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before the enactment of this chapter and the amount actually expended by the State in public schools.

(B)   The report must be submitted by December first of each year to the Governor, the Chairman of the Senate Finance Committee, the Chairman of the Senate Education Committee, the Chairman of the House Ways and Means Committee, and the Chairman of the House Education and Public Works Committee.

Section 59-63-710.   (A)(1)   In addition to the annual report as provided in Section 59-63-710, the State Budget and Control Board shall provide for a long-term evaluation of the impact of this chapter. The evaluation must be conducted by contract with one or more qualified persons or entities with previous experience evaluating school choice programs and must be conducted for a minimum of five years beginning five years after enactment of this section. The evaluation must include an assessment of the:

(a)   level of parental satisfaction for parents of students participating in the scholarship program provided for in this chapter;

(b)   level of parental satisfaction for parents of students in failing public schools;

(c)   academic performance of participating independent schools and failing public schools;

(d)   level of student satisfaction with the scholarship program provided for in this chapter;

(e)   level of student satisfaction for students attending failing public schools;

(f)   impact of the provisions of this chapter on public school districts, public school students, independent schools, and independent school students; and

(g)   impact of the provisions of this chapter on school capacity, availability, and quality.

(2)   The evaluation must be conducted using appropriate analytical and behavioral science methodologies and must protect the identity of participating schools and students by, at a minimum, keeping anonymous all disaggregated data other than that for the categories of grade, gender, race, and ethnicity. The evaluation of public and independent school students must compute the relative efficiency of public and independent schools, the value added to educational performance by independent schools relative to failing public schools, and a comparison of acceptance rates into college, while adjusting or controlling for student and family background.

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(B)   State and local government entities shall cooperate with the persons or entities conducting the evaluation provided for in subsection (A). Cooperation includes providing available student assessment results and other information needed to complete the evaluation.

(C)   The State Budget and Control Board shall pay the cost of the evaluation from funds available to it for that purpose except that state funds used must not exceed four hundred thousand dollars per year.

(D)   By January thirty-first of each year, the State Budget and Control Board shall provide to each member of the General Assembly interim reports of the results of the evaluation. Upon completion of the evaluation, the State Budget and Control Board shall provide a final report to each member of the General Assembly. At the same time as the final report is made public, the persons or entities who conducted the evaluation must make their data and methodology available for public review and inspection, but only if the release of the data and methodology is in compliance with 20 U.S.C. Section 1232g, Family Educational Rights and Privacy Act of 1974.

Section 59-63-720.   The provisions of this article regarding independent schools only apply to independent schools that choose to accept scholarship students."

SECTION   3.   (A)   A qualifying school that accepts students benefiting from scholarships, grants, or tax credits is not an agent or arm of the state or federal government.

(B)   Except as provided by this act, the Department of Education, Department of Revenue, Budget and Control Board, or any other state agency may not regulate the educational program of a qualifying school that accepts students pursuant to this act.

(C)   One purpose of this act is to allow maximum freedom to parents and independent schools to respond to and provide for the educational needs of children without governmental control, and this act must be liberally construed to achieve that purpose.

SECTION   4.   If a section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, this holding does not affect the constitutionality or the validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words thereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

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SECTION   5.   This act takes effect upon approval by the Governor and applies at the start of the first school year beginning one year after approval of this act."                     /

Renumber sections to conform.

Amend title to conform.

Senator GROOMS explained the amendment.

ACTING PRESIDENT PRESIDES

At 11:51 A.M., Senator MARTIN assumed the Chair.

Senator GROOMS resumed explaining the amendment.

PRESIDENT PRESIDES

At 12:04 P.M., the PRESIDENT assumed the Chair.

Senator GROOMS resumed explaining the amendment.

RECESS

At 12:42 P.M., with Senator GROOMS retaining the floor, on motion of Senator PEELER, with unanimous consent, the Senate receded from business not to exceed thirty minutes.

At 1:35 P.M., the Senate resumed.

Senator GROOMS resumed explaining the amendment.

Senator THOMAS argued in favor of the adoption of the amendment.

Senator LOURIE argued contra to the adoption of the amendment.

Senator JACKSON spoke on the amendment.

Motion Adopted

On motion of Senator MARTIN, with unanimous consent, Senators HUTTO, RITCHIE and MARTIN were granted leave to attend a conference committee meeting and vote from the balcony.

Senator PINCKNEY spoke on the amendment.

By a division vote of 13-23, the adoption of the amendment fails.

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Amendment No. P-2B

Senator THOMAS proposed the following Amendment No. P-2B (3124R009.DLT), which was tabled:

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

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

  "Chapter 62

South Carolina Public School Choice Programs

Section 59-62-10.   (A)   There is established a district choice program and an open enrollment program within the public school system of this State.

(B)   In establishing these programs, it is the objective of the General Assembly to make the South Carolina public school system the most choice-driven public school system in the nation by increasing student participation in and student access to public school educational opportunities both within and outside their resident school district regardless of where they may live or their socioeconomic status. It is therefore the intent of the General Assembly that this chapter be construed broadly to maximize parental choice options and student access to educational opportunities that are not now available.

Section 59-62-20. As used in this chapter:

(1)   'School district choice programs' means a public education delivery system that requires school districts to provide for student programs of choice offered within the district, which may include, but not be limited to, public charter schools, virtual school programs, extended day or school year programs, flexible school scheduling programs, Montessori programs, single-gender programs, learning team programs, magnet school programs, and school-within-a-school programs, and to provide for school assignments to these programs using parents' indicated preferential choice as a significant factor for assigning students within the district.

(2)   'Open enrollment' means a public education delivery system that requires school districts to allow for school assignments of students outside of the student's resident district using parents' indicated preferential choice as a significant factor.

(3)   'Attendance zone' means the geographic area used to determine a particular school assignment for students in the district of residence.

(4)   'Capacity' as established by State Board of Education guidelines means individual school capacities to include any district projections per school for the school year impacted by a transfer

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pursuant to this chapter. However, when defining capacity, only permanent building structures are allowed in the calculation of capacity.

(5)   'District of residence' means a school district in which the parent or guardian of a student resides.

(6)   'Failing public school' means a public school in the State that has received a rating of 'below average' or 'unsatisfactory' as its absolute grade on its most recent annual report card under the education accountability act.

(7)   'Feeder pattern' means the schools to which students are assigned upon the completion of the highest grade level of their previous school.

(8)   'Good cause' means a change in a child's residence due to a change in parent or guardian's residence, a change in a child's parent's marital status, a change caused by a guardianship or custody proceeding, placement of a child in foster care, adoption, participation by a child in an approved foreign exchange program, participation by a child in a substance abuse or mental health treatment program, revocation of a charter school contract, or a set of circumstances consistent with this definition of 'good cause'.

(9)   'Independent school' means a school, other than a public school, at which the compulsory attendance requirements of Section 59-56-10 may be met and that does not discriminate based on the grounds of race, color, or national origin. 'Independent school' includes home schools as provided in Article 1, Chapter 65, Title 59.

(10)   'Parent' means the parent or legal guardian of a student of the State.

(11)   'Receiving district' means a school district other than the district of residence in which a student seeks to enroll. Where the district of residence includes more than one school providing instruction at a given grade level, and a parent of a child entering the grade level applies to enroll his child in a public school in the district of residence other than the program in which the child would normally be assigned to attend based on the child's place of residence, the district of residence also must be considered to be the receiving district for purposes of this chapter.

(12)   'Siblings' means all children residing in the same household on a permanent basis who have the same mother or father or guardian.

(13)   'Working days' means working days as determined by a school district's administrative calendar.

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Section 59-62-30.   (A)   The State Department of Education shall establish the Office of School Choice and Innovation. This office shall provide school districts with information on various school choice programs, best practice information, staff development, assistance in planning for transportation needs, and technical assistance for developing and implementing public school choice and open enrollment programs throughout the State.

(B)   In conjunction with a series of town meetings held throughout the State, the Office of School Choice and Innovation shall conduct a statewide inventory. The inventory shall be designed to determine the public's knowledge and understanding of public school choice. Additionally, the inventory shall collect information on district growth projections, choice programs available in districts, and choice options parents would like to see implemented in their district of residence. With the information received from the statewide inventory, the Office of School Choice and Innovation shall compile and disseminate the results to the school districts of the State and members of the General Assembly.

(C)   In the 2007-08 school year, with funds appropriated by the General Assembly, the Office of School Choice and Innovation shall establish a School District Choice and an Open Enrollment pilot program. Participation of districts in the pilots shall be voluntary. The School District Choice pilot program shall be designed to pair districts currently offering multiple student choice options with districts where student choice options are limited or do not exist, for the purpose of offering guidance, technical assistance, and staff development. The Open Enrollment pilot program shall be designed to provide nontuition choice options for students between adjacent school districts. The Office of School Choice and Innovation shall offer technical assistance to the pilot districts in developing and implementing Open Enrollment choice programs.

(D)   Throughout the pilot year, the Office of School Choice and Innovation shall provide information to all school districts regarding obstacles that have the potential of interfering with the implementation of quality school choice and open enrollment programs and shall make recommendations for overcoming and avoiding those obstacles. The information provided shall also include costs associated with the implementation of both pilot programs.

(E)   The State Board of Education shall develop guidelines listing factors to be used in determining school capacity. In developing these guidelines, a task force shall be established with membership to

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include, but not be limited to, school board members, superintendents, principals, parents, and business and community leaders. The membership of the task force shall reflect urban and rural areas of the State.

(F)   During the 2007-08 school year, each school district of the State shall convene a School Choice Committee. The committee shall include, but not be limited to, members representing parents, community and business leaders, teachers, and students. The committee membership shall represent the ethnicity and geographic diversity of the district. With information obtained from the statewide survey, the School Choice Committee shall develop an action plan incorporated in the school renewal plan for providing parents and students choice options within the district and shall include a timeline and budget proposal for implementation of the identified options. Each district shall submit their plan to the Office of School Choice and Innovation for review, and if necessary the Office of School Choice and Innovation shall provide recommendations. Districts having plans currently in place shall also submit their plans.

Section 59-62-40.   (A)   Beginning in the 2008-09 school year and succeeding school years, with innovation funds appropriated by the General Assembly, each school district of the State shall begin implementation of their school choice plans. At a minimum, each district shall begin by providing a choice option for students at the elementary, middle, and high school level. With approval from the State Department of Education, districts may utilize technical assistance funds provided pursuant to Section 59-18-1595 to assist in the implementation of school choice plans.

(B)   During the 2008-09 school year, the School Choice Committee established pursuant to Section 59-62-30 and school district administration shall develop plans to implement an Open Enrollment Choice Program as outlined in this chapter. However, nothing in this chapter shall prohibit a school district from implementing the open enrollment choice program prior to the 2009-10 school year.

(C)   Based on the findings obtained from the pilot programs established in Section 59-62-30(C) and the implementation of district choice programs, the State Department of Education shall issue a report to the General Assembly by January 1, 2009. The report shall include, but not be limited to, districts participating in the pilot programs and number of students participating in new choice options, types of choice options being implemented in each school district, number of students

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participating in school district choice options, and recommended changes to this chapter, to include the basis for such recommendations.

Section 59-62-50.   (A)   Beginning with the 2009-10 school year and each succeeding school year, a parent residing in this State may enroll his child in a public school in any school district without the requirement of payment of tuition in the manner provided in this chapter.

(B)   Each school district of the State shall participate in public school open enrollment consistent with this chapter. A parent of a school age child may apply to enroll his child in a school in a receiving district by submitting a written application, on a form provided by the State Department of Education, to the receiving district and to the district of residence postmarked not later than January fifteenth, for enrollment during the following school year for grades kindergarten through twelve. The application shall identify the reason for seeking enrollment in the receiving district. The parent may request a particular school or program as part of the application. However, the assignment of the student must be determined by the receiving school district based on capacity.

(C)   If a parent of a school age child fails to file an application by the deadline established in subsection (A), and good cause exists for the failure to meet the deadline, the receiving district and the district of residence shall accept and consider the application in the same manner as if the deadline had been met.

(D)   Upon agreement between the resident and the nonresident school boards, or between the affected schools within the resident district, the deadline for application may be waived.

(E)   The parent of a school age child may withdraw the application at any time before the first day of the school year by giving written notice to the boards of the receiving district and the district of residence.

(F)   The parent or guardian of the student approved to enroll shall confirm in writing to the nonresident school district by April first whether the student intends to enroll. Notice of intent to enroll in the nonresident district obligates the student to attend the nonresident district during the following school year, unless the boards of the resident and nonresident school districts agree in writing to allow the student to transfer back to the resident district, or good cause can be substantiated.

(G)   A parent who applies and whose child is approved to enroll in a nonresident school district, but whose child fails to attend the

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nonresident district, is ineligible to apply again for enrollment in that nonresident district unless good cause can be substantiated.

Section 59-62-60.   (A)   Within ten working days of receiving an application, the receiving district shall notify the district of residence that it has received the application. This notification must include the grade level and school the student previously attended in the district of residence.

(B)   The board of trustees of the receiving district shall take action no later than the last day of February of the school year preceding enrollment to approve or deny an application for admission in grades kindergarten through twelve.

(C)   The board of the receiving district shall take action to approve or deny an application filed in accordance with Section 59-62-50 within forty-five days of the receipt of the application.

(D)   The board of the receiving district shall notify the parent of the child and the board of the district of residence in writing within five working days after board action. In the case of denial, a written explanation of the denial must be included in the notification.

Section 59-62-70.   (A)   In implementing the provisions of this chapter, a student who currently resides in the attendance zone of a school must not be displaced by students transferring from outside the attendance zone.

(B)   A school district is not required to:

(1)   accept students residing outside the school district in excess of three percent of its highest average daily membership in any year over the preceding ten-year period. Accepting students residing outside the school district must be phased in at one-half of one percent of the district's previous year's average daily membership. Enrolled students residing outside the school district must continue to be counted in the receiving district's acceptance percentage until the student is no longer enrolled in a receiving district school;

(2)   make alterations in the structure of a requested school;

(3)   establish and offer a particular program in a school if the program is not currently offered in the requested school; or

(4)   alter or waive an established eligibility criteria for participation in a particular program, including age requirements, course prerequisites, or required levels of performance.

(C)   The school board of trustees shall adopt specific policies regarding capacity standards, standards of approval, and priorities of acceptance.

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(1)   Standards of approval may include consideration of the capacity of a program, class, or grade level. However, district standards for capacity must not be set less than seventy-five percent of those established in State Board of Education regulations. Standards must not be based on ethnicity, national origin, gender, income level, or include an applicant's athletic, artistic, or other extracurricular ability, disabling conditions, English proficiency level, or previous disciplinary proceedings, except that an expulsion from another district may be included. Standards may include an applicant's previous academic achievement only if enrollment in that program or school is based upon specific levels of performance uniformly applied to all seeking enrollment to that program or school.

(2)   In developing priorities of acceptance, applications must be considered in the order they are received. However, in the assignment of students, priority must be given:

(a)   first, to students residing within the district including students currently enrolled in independent schools and home schools, but who desire to attend a school outside their attendance zone;

(b)   second, to returning students who continue to meet the requirements for the program or school;

(c)   third, to students who meet the requirements for the program or school and who seek to attend the designated school in the district's feeder pattern;

(d)   fourth, to the siblings of students residing in the same household already enrolled in the school, provided that any siblings seeking priority under this section meet the requirements for the program or school; and

(e)   fifth, to students whose parent or legal guardian is assigned to the school as his or her primary place of employment.

(D)   A receiving school district only may deny resident students living outside the attendance zone or nonresident students permission to enroll for the following reasons:

(1)   there is a lack of capacity in the district, school, or program requested;

(2)   the school requested does not offer the appropriate programs or is not structured or equipped with the necessary facilities to meet special needs of a student;

(3)   the student does not meet established eligibility criteria for participation in a particular program, including age requirements, course prerequisites, or required levels of performance;

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(4)   a voluntary or court-ordered desegregation plan is in effect for the school district, and the denial is necessary in order to enable compliance with the desegregation plan; or

(5)   the student is expelled or is in the process of being expelled.

A denial of a request by the board of a receiving district is subject to appeal. The parent or legal guardian may appeal a denial to the State Board of Education within thirty days after the date the notification of denial was received by the parent or legal guardian. The State Board of Education shall promulgate regulations establishing the basis and procedures for hearing appeals.

(E)   A student who resides in the attendance zone of a failing public school that has an application denied by the board of a receiving district pursuant to subsection (D)(1) or an application that has been deemed to have been denied pursuant to this subsection, is eligible to receive an Educational Opportunity Scholarship. A student's application to the school board of a receiving district is deemed to have been denied if the school board of the receiving district to which the application was made does not make a decision and transmit that decision to the applicant within forty-five days of the board's receipt of the application.

(F)   A sending school district only may deny resident students a transfer to a receiving district when the transfer would violate a voluntary or court-ordered desegregation plan in effect for that district.

(G)   A district may not take any action to prohibit or prevent application by resident students to attend school in a nonresident school district or to attend another school within the resident district.

(H)   Each board of trustees of a school district annually shall submit capacity figures for each of its schools to the State Department of Education. These figures must be used by the State Board of Education in addition to any other factors it considers appropriate in developing board policy to determine a school's capacity. Each district is responsible for annually posting school capacities on the district and school websites. Additionally, information regarding the current enrollment of the school and its percentage of capacity must be included. This information must be verified by the State Department of Education.

Section 59-62-80.   (A)   A student approved for enrollment in a nonresident district school or program pursuant to this chapter is entitled to remain enrolled in that district until completion of the final grade within that school without being required to submit annual applications. Before completion of that final grade of the school,

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application for enrollment in the feeder school must be submitted pursuant to this chapter.

(B)   A receiving district may terminate the enrollment of a nonresident student enrolled pursuant to this chapter at the end of a school year if the:

(1)   student meets the definition of a habitual truant;

(2)   student fails to comply with requirements for attending school or class;

(3)   student has incurred multiple violations of, or one or more serious violations of, the receiving district's student code of conduct; or

(4)   board of the district of residence, the board of the receiving district, and the parent having submitted the application for enrollment agree for any reason to terminate the enrollment.

Section 59-62-90.   (A)   The parent is responsible for transporting the student to and from the school. However, nothing in this chapter shall be construed as prohibiting resident districts or the receiving districts from providing bus transportation on any approved route and districts are encouraged to collaborate in the development of transportation plans for students whose parents are unable to provide transportation.

(B)   Parents or guardians of students attending a receiving school district, whose family income is one hundred eighty-five percent or less of the federal poverty guidelines as promulgated annually by the U.S. Department of Health and Human Services, making them eligible for free or reduced-price lunches, shall be eligible for transportation services provided by the school district or shall be eligible for transportation reimbursement from the district with funds appropriated by the General Assembly for that purpose.

(C)   With funds appropriated by the General Assembly, the State Department of Education shall reimburse receiving school districts for transportation expenses as provided in subsection (B) of this section. The rate of reimbursement shall be pursuant to State Board of Education regulations.

Section 59-62-100.   (A)   A student enrolled in a receiving district pursuant to this chapter must be included in the average daily membership of the receiving district for the purposes relating to the allocation of all state and federal education funding and must not be included in the average daily membership of the district of residence for these purposes.

(B)   Districts shall receive one hundred percent of the base student cost from the State for nonresident students enrolled pursuant to this chapter.

Printed Page 3057 . . . . . Wednesday, May 30, 2007

Section 59-62-110.   (A)   A student enrolled in a receiving district pursuant to this chapter is ineligible to participate in interscholastic athletic contests and competitions for one calendar year after the student's date of enrollment in the receiving district or, if the student makes subsequent transfers, for one calendar year from the date of each transfer. This restriction does not apply to a student's initial transfer from his district of residence if the sport in which the student wishes to participate is not offered in the district of residence.

(B)   A student may not gain eligibility to participate in extracurricular activities in violation of policies governing eligibility as a result of an enrollment transfer to another school district.

Section 59-62-120.   (A)   A receiving district shall accept credits for a course completed in another accredited school and shall apply those credits toward the student's requirements for graduation.

(B)   The receiving district shall award a diploma to a nonresident student if the student meets all state requirements for graduation.

Section 59-62-130.   Open enrollment does not preclude a school district from contracting with other school districts, educational service providers, or other state-approved entities for the provision of services. A child with a disability receiving services from another district pursuant to contract due to lack of appropriate programming in his resident school district is not eligible to transfer as an open enrollment student into the district currently providing services but is eligible to transfer as an open enrollment student into another district that has an appropriate program and has not reached enrollment capacity.

Section 59-62-140.   The State Department of Education shall conduct an annual survey of districts to determine the number of students participating in the open enrollment program. The participants must be reported according to the number of resident students enrolling in a school other than the school in their attendance zone, the number of nonresident students enrolled, the number of denied applications, and reasons for denial. The State Department of Education shall report these findings to the General Assembly annually by January first.

Section 59-62-150.   Implementation of this chapter each fiscal year is contingent upon the appropriation of adequate funding for implementation as documented by a fiscal impact statement provided by the Office of State Budget of the State Budget and Control Board to the General Assembly and the State Department of Education on or before April fifteenth of each year estimating the cost of implementation for the ensuing fiscal year; provided that for fiscal year 2007-2008 the cost of implementation shall be as determined in the

Printed Page 3058 . . . . . Wednesday, May 30, 2007
fiscal impact statement of the act enacting this chapter. There is no mandatory financial obligation to public schools or public school districts with respect to this chapter if state funding is not appropriated for each fiscal year of implementation as provided for in the annual fiscal impact statement of the Office of the State Budget of the State Budget and Control Board provided for above.

Section 59-62-160.   If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this chapter 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 chapter, the General Assembly hereby declaring that it would have passed this chapter, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

SECTION   2.     Chapter 63, Title 59 of the 1976 Code is amended by adding:

  "Article 6

Educational Opportunity Scholarship

Section 59-63-600.   This article may be referred to and cited as the 'South Carolina Educational Opportunity Act'.

Section 59-63-610.   As used in this article:

(1)   'Failing public school' means a public school in the State that has received a rating of 'below average' or 'unsatisfactory' as its absolute grade on its most recent annual report card under the education accountability act.

(2)   'Parent' means the natural or adoptive parent or legal guardian of a child.

(3)   'Independent school' means a school, other than a public school, at which the compulsory attendance requirements of Section 59-56-10 may be met and that does not discriminate based on the grounds of race, color, or national origin. 'Independent school' includes home schools as provided in Article 1, Chapter 65, Title 59.

(4)   'Public school' means a public school in the State as defined in Section 59-1-120.

Section 59-63-620.   (A)   A is eligible to transfer to an independent school pursuant to this article if the student resides in the attendance zone of a failing public school, submitted an application pursuant to Section 59-62-70(D), and that application was denied or it has been deemed to have been denied.

Printed Page 3059 . . . . . Wednesday, May 30, 2007

(B)   A student eligible to transfer to an independent school pursuant to this section may contact the Department of Education for a list of independent schools to which the student may transfer.

Section 59-63-630.   (A)   A student that is eligible to transfer to an independent school pursuant to this article must choose the independent school that he would like to attend and apply for admission to that school. When the student's application has been accepted, the student must give the Department of Education written notice that his application for admission to an independent school has been accepted, identify the school, and provide the expected date of enrollment. The independent school must give the Department of Education written notice that verifies the acceptance and enrollment of the student and must also submit a request for funds to the Department.

(B)   When the Department of Education receives the notice and the request for funds required in subsection (A), it must issue a check payable to the independent school selected by the student equal to one hundred percent of the base student cost from the State as provided for in the annual Appropriations Act. The check must be delivered or mailed by the Department of Education to the school at which the scholarship is to be used.

(C)   A student who is taught at home is not eligible to receive a scholarship pursuant to this article.

Section 59-63-640.   An independent school that accepts scholarship students pursuant to this article:

(1)   shall comply with federal anti-discrimination law pursuant to 42 U.S.C. Section 1981;

(2)   shall meet state and local health and safety laws and codes;

(3)   shall comply with state statutes relating to independent schools;

(4)   shall employ or contract with teachers who hold a baccalaureate or higher degree, or have at least three years of teaching experience in a public or independent school, or have special skills, knowledge, or expertise that qualifies them to provide instruction in subjects taught;

(5)   must be academically accountable to the parent or guardian for meeting the education needs of the student;

(6)   shall administer to all scholarship students a nationally recognized achievement test and report the school's aggregate score to all parents in accordance with Section 59-63-650;

(7)   shall adhere to the tenets of the school's published disciplinary procedures prior to the expulsion of an educational opportunity scholarship program participant;

Printed Page 3060 . . . . . Wednesday, May 30, 2007

(8)   shall accept scholarship students who meet the admissions criteria of the school on a random, religious neutral basis, without regard to the student's past academic history, with preference given to siblings of other scholarship students;

(9)   may not compel a scholarship student to profess a specific ideological belief, to pray, or to worship;

(10)   must have a physical location in the State of South Carolina where the students attend classes;

(11)   shall demonstrate their financial viability by showing they can repay any funds that might be owed to the State, if they are to receive more than fifty thousand dollars in scholarship payments during the school year by filing with the department of revenue, before the beginning of the school year:

(a)   a surety bond payable to the State in an amount equal to the aggregate amount of scholarship revenue expected to be paid to the school by participating families during the school year; or

(b)   Financial information that demonstrates that the school has the ability to pay an aggregate amount equal to the amount of scholarship revenue expected to be paid to the school by participating families during the school year.

Section 59-63-650.   To ensure that schools provide academic accountability to parents of students in the educational opportunity scholarship program, the General Assembly, and the Governor, participating schools annually shall administer either the state's Palmetto Achievement Test (PACT) test or it's equivalent, or a nationally recognized norm-referenced test, such as the Stanford Achievement, Iowa Test of Basic Skills, or both, in math and language arts to each student participating in the program. Participating schools publicly shall disclose the aggregate results of the tests by grade level, but only if the disclosure of the aggregate results is in compliance with 20 U.S.C. Section 1232g, Family Educational Rights and Privacy Act of 1974, and shall provide the parents of each student with a copy of the results. Participating schools shall also provide aggregate results by grade level to the Chairman of the House Education and Public Works Committee, the Senate Education Committee, and the Governor no later than August 31 of the school year in which the tests are administered.

Section 59-63-660.   Once a student transfers from a failing school pursuant to this article, the student is eligible for the scholarship program until he graduates from high school regardless of a subsequent change in the rating of the school from which he transferred.

Printed Page 3061 . . . . . Wednesday, May 30, 2007

Section 59-63-670.   If a qualifying student's enrollment in an independent school is terminated before the end of the school year, the independent school shall pay to the state on a pro rata basis any excess tuition paid. At the time of making the refund, the independent school shall issue a receipt reflecting the date, amount, and payee for each refund and shall provide a copy of the receipt to the Department of Revenue.

Section 59-63-680.   The Department of Revenue may promulgate regulations to aid in the performance of its duties pursuant to this chapter; however, its power does not extend to matters of school governance, curriculum, hiring or firing, or religious beliefs or practices.

Section 59-63-690.   The Department of Revenue may conduct examinations and investigations whenever it believes that the provisions of this chapter have been evaded or violated in any manner. All powers possessed by the department as provided in Title 12 to conduct examinations and investigations apply to examinations and investigations conducted pursuant to this section.

Section 59-63-700.   (A)   Annually, the State Budget and Control Board shall provide for the preparation of a report on the impact of the implementation of this chapter on school enrollment and state and local funding of public schools for the fiscal year most recently completed. The report must include, but need not be limited to, an analysis of and statement on the:

(1)   change in public school enrollment, by school district, attributable to this chapter; and

(2)   amount of funds the State would have had to expend for public schools under the education funding formula in existence on or before the enactment of this chapter and the amount actually expended by the State in public schools.

(B)   The report must be submitted by December first of each year to the Governor, the Chairman of the Senate Finance Committee, the Chairman of the Senate Education Committee, the Chairman of the House Ways and Means Committee, and the Chairman of the House Education and Public Works Committee.

Section 59-63-710.   (A)(1)   In addition to the annual report as provided in Section 59-63-710, the State Budget and Control Board shall provide for a long-term evaluation of the impact of this chapter. The evaluation must be conducted by contract with one or more qualified persons or entities with previous experience evaluating school choice programs and must be conducted for a minimum of five years

Printed Page 3062 . . . . . Wednesday, May 30, 2007
beginning five years after enactment of this section. The evaluation must include an assessment of the:

(a)   level of parental satisfaction for parents of students participating in the scholarship program provided for in this chapter;

(b)   level of parental satisfaction for parents of students in failing public schools;

(c)   academic performance of participating independent schools and failing public schools;

(d)   level of student satisfaction with the scholarship program provided for in this chapter;

(e)   level of student satisfaction for students attending failing public schools;

(f)   impact of the provisions of this chapter on public school districts, public school students, independent schools, and independent school students; and

(g)   impact of the provisions of this chapter on school capacity, availability, and quality.

(2)   The evaluation must be conducted using appropriate analytical and behavioral science methodologies and must protect the identity of participating schools and students by, at a minimum, keeping anonymous all disaggregated data other than that for the categories of grade, gender, race, and ethnicity. The evaluation of public and independent school students must compute the relative efficiency of public and independent schools, the value added to educational performance by independent schools relative to failing public schools, and a comparison of acceptance rates into college, while adjusting or controlling for student and family background.

(B)   State and local government entities shall cooperate with the persons or entities conducting the evaluation provided for in subsection (A). Cooperation includes providing available student assessment results and other information needed to complete the evaluation.

(C)   The State Budget and Control Board shall pay the cost of the evaluation from funds available to it for that purpose except that state funds used must not exceed four hundred thousand dollars per year.

(D)   By January thirty-first of each year, the State Budget and Control Board shall provide to each member of the General Assembly interim reports of the results of the evaluation. Upon completion of the evaluation, the State Budget and Control Board shall provide a final report to each member of the General Assembly. At the same time as the final report is made public, the persons or entities who conducted the evaluation must make their data and methodology available for

Printed Page 3063 . . . . . Wednesday, May 30, 2007
public review and inspection, but only if the release of the data and methodology is in compliance with 20 U.S.C. Section 1232g, Family Educational Rights and Privacy Act of 1974.

Section 59-63-720.   The provisions of this article regarding independent schools only apply to independent schools that choose to accept scholarship students."

SECTION   3.   (A)   A qualifying school that accepts students benefiting from scholarships, grants, or tax credits is not an agent or arm of the state or federal government.

(B)   Except as provided by this act, the Department of Education, Department of Revenue, Budget and Control Board, or any other state agency may not regulate the educational program of a qualifying school that accepts students pursuant to this act.

(C)   One purpose of this act is to allow maximum freedom to parents and independent schools to respond to and provide for the educational needs of children without governmental control, and this act must be liberally construed to achieve that purpose.

SECTION   4.   If a section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, this holding does not affect the constitutionality or the validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words thereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

SECTION   5.   This act takes effect upon approval by the Governor and applies at the start of the first school year beginning one year after approval of this act.                     /

Renumber sections to conform.

Amend title to conform.

Senator THOMAS explained the amendment.

Senator GROOMS spoke on the amendment.

Senator MOORE spoke on the amendment.

Senator VAUGHN spoke on the amendment.

Senator SHEHEEN moved to lay the amendment on the table.

Printed Page 3064 . . . . . Wednesday, May 30, 2007

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

Ayes 29; Nays 15

AYES

Alexander                 Anderson                  Courson
Drummond                  Elliott                   Ford
Hayes                     Hutto                     Jackson
Knotts                    Land                      Leatherman
Leventis                  Lourie                    Malloy
Martin                    Matthews                  McGill
Moore                     Patterson                 Peeler
Pinckney                  Rankin                    Reese
Ritchie                   Setzler                   Sheheen
Short                     Williams

Total--29

NAYS

Bryant                    Campsen                   Cleary
Cromer                    Fair                      Gregory
Grooms                    Hawkins                   McConnell
O'Dell                    Ryberg                    Scott
Thomas                    Vaughn                    Verdin

Total--15

The amendment was laid on the table.

Amendment No. P-3A

Senators JACKSON, ANDERSON, SHEHEEN and GROOMS proposed the following Amendment No. P-3A (BBM\10131SSP07), which was adopted:

Amend the committee report, as and if amended, by striking lines 22-38 and inserting:

/ (2)   In the assignment of students, priority must be given:

(a)   first, to students qualifying for the USDA free and reduced lunch program or eligible for Medicaid desiring to attend a school where the percentage of students qualifying for the USDA free and reduced lunch or Medicaid is less than that of the student's attendance zone;

Printed Page 3065 . . . . . Wednesday, May 30, 2007

(b)   second, to students residing within the district including students currently enrolled in private schools and home schools, but who desire to attend a school outside their attendance zone;

(c)   third, to returning students who continue to meet the requirements for the program or school;

(d)   fourth, to students who meet the requirements for the program or school and who seek to attend the designated school in the district's feeder pattern;

(e)   fifth, to the siblings of students residing in the same household already enrolled in the school, provided that any siblings seeking priority pursuant to this section meet the requirements for the program or school; and

(f)   sixth, to students whose parent or legal guardian is assigned to the school as his or her primary place of employment.

In the assignment of students, the racial make-up of the schools and school districts involved must be considered. The policies must not have the purpose or effect of causing racial segregation in a school or the school district. /

Renumber sections to conform.

Amend title to conform.

Senator JACKSON explained the amendment.

The amendment was adopted.

Recorded Vote

Senator McCONNELL desired to be recorded as voting against the adoption of the amendment.

Statement by Senator McCONNELL

I voted against Amendment P-3A because it discriminates against the children of working families simply because they are not on food stamps, free or reduced lunch or Medicaid. And, it deprives them of equal access to a public resource -- an adequate public education. Why should these children be forced to stay in the failing school? This amendment's answer is because they are not on Medicaid and do not qualify for free lunch or reduced lunch. There are hardworking families who cannot afford a private education and have children in a failing school. This amendment forces them to the back of the line simply because their parents make too much money to qualify for food stamps but not enough money to afford private school.

Printed Page 3066 . . . . . Wednesday, May 30, 2007

When I voted for the GROOMS' amendment, it was to give at least some of the poor students a ticket out of failing schools. However, with the adoption of this amendment, the Bill now denies public access to a child based on economic factors over which the child has no control.

Amendment No. P-4

Senator RITCHIE proposed the following Amendment No. P-4 (GJK\20368SD07), which was adopted:

Amend the committee amendment, as and if amended, by inserting / or more / after / ten days / on line 1 of item (5) of subsection (D) of Section 59-62-70 of the 1976 Code, as contained in SECTION 1.

Renumber sections to conform.

Amend title to conform.

Senator HAYES explained the amendment.

The amendment was adopted.

Amendment No. P-5

Senator RITCHIE proposed the following Amendment No. P-5 (GJK\20370SD07), which was adopted:

Amend the committee amendment, as and if amended, by inserting at the end of subsection (H) of Section 59-62-70 of the 1976 Code, as contained in SECTION 1 / This information must be provided to the department and posted on the district and school websites by January first of each school year as it relates to capacity capabilities for the following school year.   /

Renumber sections to conform.

Amend title to conform.

Senator HAYES explained the amendment.

The amendment was adopted.

Amendment No. P-6

Senator RITCHIE proposed the following Amendment No. P-6 (GJK\20372SD07), which was adopted:

Amend the committee amendment, as and if amended, by striking of Section 59-62-110 of the 1976 Code, as contained in SECTION 1 and inserting:

Printed Page 3067 . . . . . Wednesday, May 30, 2007

/   Section 59-62-110.     (A)   A student enrolled in a receiving school pursuant to this chapter is ineligible to participate in athletic contests and competitions during the student's first year of enrollment in the receiving school unless the sport in which the student wishes to participate is not offered in the student's previous school.

(B)   A student may not gain eligibility to participate in extracurricular activities in violation of policies governing eligibility as a result of an enrollment transfer to another school.   /

Renumber sections to conform.

Amend title to conform.

Senator RITCHIE explained the amendment.

The amendment was adopted.

Amendment No. P-9

Senator RITCHIE proposed the following Amendment No. P-9 (GJK\20362SD07), which was tabled:

Amend the committee amendment, as and if amended, by striking the last sentence of Section 59-62-20(4) of the 1976 Code, as contained in SECTION 1.

Renumber sections to conform.

Amend title to conform.

Senator RITCHIE explained the amendment.

Senator RITCHIE moved that the amendment be adopted.

Senator SHORT moved to lay the amendment on the table.

By a division vote of 20-18, the amendment was laid on the table.

Amendment No. P-11

Senator RITCHIE proposed the following Amendment No. P-11 (GJK\20373SD07), which was adopted:

Amend the committee amendment, as and if amended, by adding Section 59-62-160 immediately following Section 59-62-150 of the 1976 Code, as contained in SECTION 1 to read:

/   Section 59-62-160.   If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this chapter 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

Printed Page 3068 . . . . . Wednesday, May 30, 2007
chapter, the General Assembly hereby declaring that it would have passed this chapter, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.   /

Renumber sections to conform.

Amend title to conform.

Senator RITCHIE explained the amendment.

The amendment was adopted.

Motion to Reconsider Withdrawn

Having voted on the prevailing side, Senator RYBERG moved to reconsider the vote whereby Amendment P-3A, proposed by Senators JACKSON, ANDERSON, SHEHEEN and GROOMS was adopted.

Senator RYBERG spoke on the motion.

Senator SHEHEEN argued contra to the motion to reconsider.

Senator McCONNELL argued in favor of the motion to reconsider.

On motion of Senator RYBERG, with unanimous consent, the motion to reconsider was withdrawn.

On motion of Senator PEELER, with unanimous consent, Amendment No. P-13 was taken up for immediate consideration.

RECESS

At 4:25 P.M., on motion of Senator PEELER, the Senate receded from business not to exceed two minutes.

At 4:30 P.M., the Senate resumed.

Amendment No. P-13

Senators PEELER, SETZLER, MATTHEWS and VERDIN proposed the following Amendment No. P-13 (3124R016.DV), which was adopted:

Amend the committee amendment, as and if amended, by striking:

/   (2)   In the assignment of students, priority must be given:

(a)   first, to students qualifying for the USDA free and reduced lunch program or eligible for Medicaid desiring to attend a school where the percentage of students qualifying for the USDA free and

Printed Page 3069 . . . . . Wednesday, May 30, 2007
reduced lunch or Medicaid is less than that of the student's attendance zone;

(b)   second, to students residing within the district including students currently enrolled in private schools and home schools, but who desire to attend a school outside their attendance zone;

(c)   third, to returning students who continue to meet the requirements for the program or school;

(d)   fourth, to students who meet the requirements for the program or school and who seek to attend the designated school in the district's feeder pattern;

(e)   fifth, to the siblings of students residing in the same household already enrolled in the school, provided that any siblings seeking priority pursuant to this section meet the requirements for the program or school; and

(f)   sixth, to students whose parent or legal guardian is assigned to the school as his or her primary place of employment.

In the assignment of students, the racial make-up of the schools and school districts involved must be considered. The policies must not have the purpose or effect of causing racial segregation in a school or the school district.     / and inserting:

/   (2)   In the assignment of students, priority must be given:

(a)   to students residing within the district who desire to attend a school outside their attendance zone, and

(b)   to returning students who continue to meet the requirements for the program or school.

The policies must not have the purpose or effect of causing racial segregation in a school or the school district.       /

Renumber sections to conform.

Amend title to conform.

Senator PEELER explained the amendment.

The amendment was adopted.

The question then was the adoption of the committee amendment, as amended.

Senator PATTERSON was recognized to speak.

The Committee on Education proposed the following amendment (NBD\11594AC07), which was adopted:

Printed Page 3070 . . . . . Wednesday, May 30, 2007

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 62

Public School Choice Programs

Section 59-62-10.   (A)   There is established a district choice program and an open enrollment program within the public school system of this State.

(B)   In establishing these programs, it is the objective of the General Assembly to make the South Carolina public school system the most choice-driven public school system in the nation by increasing student participation in and student access to public school educational opportunities both within and outside of their resident school district, regardless of where they may live or their socioeconomic status. It is therefore the intent of the General Assembly that this chapter be construed broadly to maximize parental choice options and student access to public school educational opportunities that are now not available to their children.

Section 59-62-20.   As used in this chapter:

(1)   'School district choice programs' mean a public education delivery system that requires school districts to provide for student programs of choice offered within the district, which may include but not be limited to, public charter schools, virtual school programs, extended day or school year programs, flexible school scheduling programs, Montessori programs, single-gender programs, learning team programs, magnet school programs, education in and through the arts programs, and school-within-a-school programs and to provide for school assignments to these programs using parents' indicated preferential choice as a significant factor for assigning students within the district.

(2)   'Open enrollment' means a public education delivery system that requires school districts to allow for school assignments of students outside of the students' district of residence using parents' indicated preferential choice as a significant factor.

(3)   'Attendance zone' means the geographic area used to determine a particular school assignment for students in the district of residence.

(4)   'Capacity' as established by State Board of Education guidelines means individual school capacities to include any district projections per school for the school year impacted by a transfer pursuant to this chapter. However, when defining capacity, only

Printed Page 3071 . . . . . Wednesday, May 30, 2007
permanent building structures may be included in the calculation of capacity.

(5)   'District of residence' means a school district in which the parent or guardian of a student resides.

(6)   'Feeder pattern' means the schools to which students are assigned upon the completion of the highest grade level of their previous school.

(7)   'Good cause' means a change in a child's residence due to a change in parent or guardian's residence, a change in a child's parent's marital status, a change caused by a guardianship or custody proceeding, placement of a child in foster care, adoption, participation by a child in an approved foreign exchange program, or participation by a child in a substance abuse or mental health treatment program, revocation of a charter school contract, or a set of circumstances consistent with this definition of 'good cause'.

(8)   'Parent' means the parent or legal guardian of a student of the State.

(9)   'Receiving district' means a school district other than the district of residence in which a student seeks to enroll. Where the district of residence includes more than one school providing instruction at a given grade level, and a parent of a child entering the grade level applies to enroll his child in a public school in the district of residence other than the program in which the child would normally be assigned to attend based on the child's place of residence, the district of residence also must be considered to be the receiving district for purposes of this chapter.

(10)   'Siblings' mean all children residing in the same household on a permanent basis who have the same mother or father or guardian.

(11)   'Working days' means working days as determined by a school district's administrative calendar.

Section 59-62-30.   (A)   The State Department of Education shall establish the Office of School Choice and Innovation. This office shall provide school districts with information on various school choice programs, best practice information, staff development, assistance in planning for transportation needs, and technical assistance for developing and implementing public school choice and open enrollment programs throughout the State.

(B)   In conjunction with a series of town meetings held throughout the State, the Office of School Choice and Innovation shall conduct a statewide inventory. The inventory shall be designed to determine the public's knowledge and understanding of public school choice.

Printed Page 3072 . . . . . Wednesday, May 30, 2007
Additionally, the inventory shall collect information on district growth projections, choice programs available in districts, and choice options parents would like to see implemented in their district of residence. With the information received from the statewide inventory, the Office of School Choice and Innovation shall compile and disseminate the results to the school districts of the State and members of the General Assembly.

(C)   In the 2007-2008 school year, with funds appropriated by the General Assembly, the Office of School Choice and Innovation shall establish a School District Choice and an Open Enrollment pilot program. Participation of districts in the pilots shall be voluntary. The School District Choice pilot program shall be designed to pair districts currently offering multiple student choice options with districts where student choice options are limited or do not exist, for the purpose of offering guidance, technical assistance, and staff development. The Open Enrollment pilot program shall be designed to provide nontuition choice options for students between adjacent school districts. The Office of School Choice and Innovation shall offer technical assistance to the pilot districts in developing and implementing Open Enrollment choice programs.

(D)   Throughout the pilot year, the Office of School Choice and Innovation shall provide information to all school districts regarding obstacles that have the potential of interfering with the implementation of quality school choice and open enrollment programs and shall make recommendations for overcoming and avoiding those obstacles. The information provided shall also include costs associated with the implementation of both pilot programs.

(E)   During the 2007-08 school year, each school district of the State shall convene a School Choice Committee. The committee shall include, but not be limited to, members representing parents, community and business leaders, teachers, and students. The committee membership shall represent the ethnicity and geographic diversity of the district. With information obtained from the statewide survey, the School Choice Committee shall develop an action plan incorporated in the school renewal plan for providing parents and students choice options within the district and shall include a timeline and budget proposal for implementation of the identified options. Each district shall submit their plan to the Office of School Choice and Innovation for review, and if necessary the Office of School Choice and Innovation shall provide recommendations. Districts having plans currently in place shall also submit their plans.

Printed Page 3073 . . . . . Wednesday, May 30, 2007

Section 59-62-40.   (A)   Beginning in the 2008-09 school year and succeeding school years with innovation funds appropriated from the General Assembly, each school district of the State shall begin implementation of their school choice plans. At a minimum, each district shall begin by providing a choice option for students at the elementary, middle, and high school level. With approval from the State Department of Education, districts may utilize technical assistance funds provided pursuant to Section 59-18-1595 to assist in the implementation of school choice plans.

(B)   During the 2008-09 school year, the School Choice Committee, established pursuant to Section 59-62-30(E), and school district administration shall develop plans to implement an Open Enrollment Choice Program as outlined in this chapter. However, nothing in this chapter shall prohibit a school district from implementing the open enrollment choice program prior to the 2009-10 school year.

(C)   Based on the findings obtained from the pilot programs established in Section 59-62-30(C) and the implementation of district choice programs, the State Department of Education shall issue a report to the General Assembly by January 1, 2009. The report shall include, but not be limited to, districts participating in the pilot programs and number of students participating in new choice options, types of choice options being implemented in each school district, number of students participating in school district choice options, and recommended changes to this chapter to include the basis for such recommendations.

Section 59-62-50.   (A)   Beginning with the 2009-10 school year and each succeeding school year, a parent residing in this State may enroll his child in a public school in any school district without the requirement of payment of tuition in the manner provided in this chapter.

(B)   Each school district of the State shall participate in public school open enrollment consistent with this chapter.

A parent of a school age child may apply to enroll his child in a school in a receiving district by submitting a written application, on a form provided to districts by the State Department of Education, to the receiving district and to the district of residence postmarked not later than January fifteen for enrollment during the following school year for grades kindergarten through twelve. The application should identify the reason for seeking enrollment in the receiving district. The parent may request a particular school or program as part of the application; however, the assignment of the student must be determined by the receiving school district based on capacity.

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(C)   If a parent of a school age child fails to file an application by the deadline established in subsection (A), and good cause exists for the failure to meet the deadline, the receiving district and the district of residence may accept and consider the application in the same manner as if the deadline had been met.

(D)   Upon agreement between the resident and the nonresident school boards, or between the affected schools within the resident district, the deadline for application may be waived.

(E)   The parent or guardian of the student approved to enroll shall confirm in writing to the nonresident school district by April first whether the student intends to enroll. Notice of intent to enroll in the nonresident district obligates the student to attend the nonresident district during the following school year, unless the boards of the resident and nonresident school districts agree in writing to allow the student to transfer back to the district of residence, or good cause can be substantiated.

(F)   A parent who applies and whose child is approved to enroll in a nonresident school district, but whose child fails to attend the nonresident district, is ineligible to apply again for enrollment in that nonresident district unless good cause can be substantiated.

Section 59-62-60.   (A)   Within ten working days of receiving an application, the receiving district shall notify the district of residence that it has received application. This notification must include the grade level and school the student previously attended in the district of residence.

(B)   The board of trustees of the receiving district shall take action no later than the last day of February of the school year preceding enrollment to approve or deny an application for admission in grades kindergarten through twelve.

(C)   The board of the receiving district shall take action to approve or deny an application filed in accordance with Section 59-62-30(B) within forty-five days of the receipt of the application.

(D)   The board of the receiving district shall notify the parent of the child and the board of the district of residence in writing within five working days after board action. In the case of denial, a written explanation of the denial must be included in the notification.

Section 59-62-70.   (A)   In implementing the provisions of this chapter, a student who currently resides in the attendance zone of a school must not be displaced by students transferring from outside the attendance zone.

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(B)   A school district is not required to:

(1)   accept students residing outside the school district in excess of three percent of its highest average daily membership in any year over the preceding ten-year period. Accepting students residing outside the school district must be phased in at one-half a percent of the district's previous year's average daily membership. Enrolled students residing outside the school district must continue to be counted in the receiving district's acceptance percentage until the student is no longer enrolled in a receiving district school;

(2)   make alterations in the structure of a requested school;

(3)   establish and offer a particular program in a school if the program is not currently offered in the requested school; or

(4)   alter or waive an established eligibility criteria for participation in a particular program, including age requirements, course prerequisites, or required levels of performance.

(C)   The school board of trustees shall adopt specific policies regarding capacity standards, standards of approval, and priorities of acceptance.

(1)   Standards of approval may include consideration of the capacity of a program, class, or grade level. However, district standards for capacity must not be set less than fifty percent of those established in State Board of Education regulations. Standards must not be based on ethnicity, national origin, gender, income level, or include an applicant's athletic, artistic, or other extracurricular ability, disabling conditions, English proficiency level, or previous disciplinary proceedings, except that an expulsion from another district, offences committed that would result in expulsion, or suspensions from the previous school year that total ten days may be included. However, the school board may provide for provisional enrollment of students with prior behavior problems and may establish conditions under which enrollment of nonresident students would be permitted or continued. Standards may include an applicant's previous academic achievement only if enrollment in that program or school is based upon specific levels of performance uniformly applied to all seeking enrollment to that program or school.

(2)   In developing priorities of acceptance, applications must be considered in the order they are received, however, in the assignment of students, priority must be given:

(a)   first, to students residing within the district including students currently enrolled in private schools and home schools, but who desire to attend a school outside their attendance zone;

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(b)   second, to returning students who continue to meet the requirements for the program or school;

(c)   third, to students who meet the requirements for the program or school and who seek to attend the designated school in the district's feeder pattern;

(d)   fourth, to the siblings of students residing in the same household already enrolled in the school, provided that any siblings seeking priority under this section meet the requirements for the program or school; and

(e)   fifth, to students whose parent or legal guardian is assigned to the school as his or her primary place of employment.

(D)   A receiving school district only may deny resident students living outside the attendance zone or nonresident students permission to enroll for the following reasons:

(1)   there is a lack of capacity in the district, school, or program requested;

(2)   the school requested does not offer the appropriate programs or is not structured or equipped with the necessary facilities to meet special needs of a student;

(3)   the student does not meet established eligibility criteria for participation in a particular program, including age requirements, course prerequisites, or required levels of performance;

(4)   a voluntary or court-ordered desegregation plan is in effect for the school district, and the denial is necessary in order to enable compliance with the desegregation plan; or

(5)   the student was suspended for ten days the previous school year, is expelled, has committed offenses that would result in expulsion, or is in the process of being suspended or expelled.

A denial of a request by the board of a receiving district is subject to appeal. The parent or legal guardian may appeal a denial to the State Board of Education within thirty days after the date the notification of denial was received by the parent or legal guardian. The State Board of Education shall promulgate regulations establishing the basis and procedures for hearing appeals.

(E)   A sending school district only may deny resident students a transfer to a receiving school when the transfer would violate a voluntary or court-ordered desegregation plan in effect for that district. However, if the percentage of students seeking to transfer to receiving districts exceeds twenty percent of the sending school's enrollment, the sending district must concur with any additional students transferring from the school to attend a receiving district. If a school's transfer

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requests exceed twenty percent of its enrollment, the State Board of Education shall appoint an external review team to study educational programs in the school, identify factors contributing to the transfer requests of students, and make recommendations to the district.

(F)   A district may not take any action to prohibit or prevent application by resident students to attend school in a nonresident school district or to attend another school within the resident district.

(G)   The State Board of Education shall develop guidelines listing factors to be used in determining school capacity. In developing these guidelines, a task force shall be established with membership to include, but not be limited to, school board members, superintendents, principals, parents, and business and community leaders. The membership of the task force shall reflect urban and rural areas of the State.

(H)   Each school board of trustees of the school district annually shall submit capacity figures for each of its schools to the State Department of Education. Each district is responsible for annually posting school capacities on the district and school websites. Additionally, information regarding the current enrollment of the school and its percentage of capacity must be included. This information must be verified by the State Department of Education.

Section 59-62-80.   (A)   A student approved for enrollment in a nonresident district school or program pursuant to this chapter is entitled to remain enrolled in that district until completion of the final grade within that school without being required to submit annual applications. Before completion of that final grade of the school, application for enrollment in the feeder school must be submitted pursuant to this chapter.

(B)   A receiving district may terminate the enrollment of a nonresident student enrolled pursuant to this chapter at the end of a school year if the:

(1)   student meets the definition of a habitual truant;

(2)   student fails to comply with requirements for attending school or class;

(3)   student has committed violations of the receiving district's student code of conduct resulting in 10 or more days of suspension; or

(4)   board of the district of residence, the board of the receiving district, and the parent having submitted the application for enrollment agree for any reason to terminate the enrollment.

Section 59-62-90.   (A)   The parent is responsible for transporting the student to and from the school. However, nothing in this chapter shall

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be construed as prohibiting resident districts or the receiving districts from providing bus transportation on any approved route and districts are encouraged to collaborate in the development of transportation plans for students whose parents are unable to provide transportation.

(B)   Parents or guardians of students attending a receiving school district, whose family income is one hundred eighty-five percent or less of the federal poverty guidelines as promulgated annually by the United States Department of Health and Human Services, making them eligible for free or reduced-price lunches, shall be eligible for transportation services provided by the school district or shall be eligible for transportation services provided by the school district or shall be eligible for transportation reimbursement from the district with funds appropriated by the General Assembly for that purpose. Should the General Assembly fail to appropriate funds for this purpose, receiving school districts shall be under no obligation to accept any nonresident student.

(C)   With funds appropriated by the General Assembly, the State Department of Education shall reimburse receiving school districts for transportation expenses as provided in subsection (B) of this section. The rate of reimbursement shall be pursuant to State Board of Education regulations.

Section 59-62-100.   (A)   A student enrolled in a receiving district pursuant to this chapter must be included in the average daily membership of the receiving district for the purposes relating to the allocation of all state and federal education funding and must not be included in the average daily membership of the district of residence for these purposes.

(B)   Receiving districts must be appropriated an additional amount from the State for each nonresident student equal to the receiving district's local average per pupil revenue.

Section 59-62-110.   (A)   A student enrolled in a receiving district pursuant to this chapter is ineligible to participate in interscholastic, athletic contests and competitions during the student's first year of enrollment in the receiving district unless the sport in which the student wishes to participate is not offered in the district of residence.

(B)   A student may not gain eligibility to participate in extracurricular activities in violation of policies governing eligibility as a result of an enrollment transfer to another school district.

Section 59-62-120.   (A)   A receiving district shall accept credits for a course completed in another accredited school and shall apply those credits toward the student's requirements for graduation.

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(B)   The receiving district shall award a diploma to a nonresident student if the student meets all state requirements for graduation.

Section 59-62-130.   Open enrollment does not preclude a school district from contracting with other school districts, educational service providers, or other state-approved entities for the provision of services. A child with a disability receiving services from another district pursuant to contract due to lack of appropriate programming in his resident school district is not eligible to transfer as an open enrollment student into the district currently providing services, but is eligible to transfer as an open enrollment student into another district that has an appropriate program and has not reached enrollment capacity.

Section 59-62-140.   The State Department of Education shall conduct an annual survey of districts to determine the number of students participating in the open enrollment program. The participants must be reported according to the number of resident students enrolling in a school other than the school in their attendance zone, the number of nonresident students enrolled, the number of denied applications, reasons for denial, and changes to the racial composition and poverty level of the districts and schools enrolling students. The State Department of Education annually shall report these findings to the General Assembly annually by January first.

Section 59-62-150.   Each year of implementation of this chapter is contingent upon the appropriation of adequate funding as documented by a fiscal impact statement provided by the Office of State Budget of the State Budget and Control Board. There is no mandatory financial obligation to public schools or public school districts with respect to this chapter if state funding is not appropriated for each year 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.   This act takes effect upon approval by the Governor./

Renumber sections to conform.

Amend title to conform.

The amendment was adopted.

Amendment No. 1A

Senator MALLOY proposed the following Amendment No. 1A (JUD3124.001):

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

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/   SECTION   ___.   Section 59-43-20 of the 1976 Code is amended to read:

"Section 59-43-20.   (A)   The State Board of Education may:

(1)   make and enforce regulations for the organization, conduct, and supervision of adult basic and adult secondary (GED and high school diploma) education;. However, the regulations must allow candidates sixteen years or older to apply for the state general education development (GED) diploma;

(2)   determine the qualifications of teachers and issue teaching certificates for teaching adult basic and adult secondary (GED and high school diploma) education classes;

(3)   determine the tuition which may be required of persons attending adult basic and adult secondary (GED and high school diploma) education classes;

(4)   determine the subjects which may be taught in adult basic and adult secondary (GED and high school diploma) education classes.

(B)   The State Board of Education is also responsible for the administration, coordination, and management of adult basic and adult secondary (GED and high school diploma) education for the purpose of facilitating and coordinating adult basic and adult secondary (GED and high school diploma) education programs for South Carolina adults whose level of educational attainment is below high school, as prescribed by state and federal laws and regulations. The State Board of Education and the local school districts are responsible for effective coordination and utilization of literacy councils, the technical education system, the educational television network, nonprofit groups, business and industry representatives, and other state and local agencies and private persons interested in adult basic and adult secondary (GED and high school diploma) education programs to deliver programs to the state's undereducated adult population.

(C)   Any funds distributed by the State Board of Education for local literacy councils or programs must be made available to those councils or programs either in kind or in money."     /

Renumber sections to conform.

Amend title to conform.

Senator MALLOY explained the amendment.

Senator SHORT moved to lay the amendment on the table.

Senator HAYES spoke on the amendment.

Senator KNOTTS spoke on the amendment.

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On motion of Senator PEELER, with unanimous consent, debate was interrupted, with Senator KNOTTS retaining the floor.

MOTION ADOPTED

On motion of Senator HAYES, with unanimous consent, the Senate stood adjourned on this traditional Memorial Day in respect to the memory of those brave, selfless and courageous men and women who have lost their lives during wars and conflicts and who paid the ultimate sacrifice in defense of the United States and to also thank their families for their sacrifices.

ADJOURNMENT

At 5:07 P.M., on motion of Senator PEELER, the Senate adjourned to meet tomorrow at 11:00 A.M.

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