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:

The Psalmist declares:

"Blessed are they who maintain justice, who constantly do what is right."     (Psalm 106:3)

Join me as we bow in prayer, please:

In the midst of competing interests, with conflicting voices calling from every direction, with the very best answer sometimes being only an "all right" response-how challenging to strive to be one of your faithful servants here in this brave year of 2007, O God. We invite you, Lord, to bestow Your grace and mercy upon every single one of these Senators. Empower them truly to lead this State, doing so with wisdom and integrity... all to Your glory, dear Lord.
Amen.

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

Senator McCONNELL introduced Dr. Ivar L. Frithsen of Charleston, S.C., Doctor of the Day.

Senator SETZLER rose for an Expression of Personal Interest.

Senator GROOMS rose for an Expression of Personal Interest.

At 1:30 P.M., Senator RANKIN requested a leave of absence until Tuesday at Noon.

At 1:30 P.M., Senator SHEHEEN requested a leave of absence beginning at 2:00.P. M. and lasting until 4:00 P.M. this evening.

At 1:30 P.M., Senator KNOTTS requested a leave of absence beginning at 3:00.P. M. and lasting until 6:00 P.M. this evening.

At 1:45 P.M., Senator RITCHIE requested a leave of absence until 4:00 P.M. this evening.

At 3:00 P.M., Senator MALLOY requested a leave of absence beginning at 4:30.P. M. and lasting until Tuesday at Noon.

At 11:23 A.M., Senator McCONNELL asked unanimous consent to make a motion to invite the House of Representatives to attend the Senate Chamber for the purpose of ratifying Acts at 12:00 Noon.

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

H. 4161 (Word version) -- Reps. Scott, Govan, Hart, J.H. Neal, 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, 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.M. Neal, Neilson, Ott, Owens, Parks, Perry, Phillips, Pinson, E.H. Pitts, M.A. Pitts, Rice, Rutherford, Sandifer, Scarborough, 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

Senator KNOTTS asked unanimous consent to make a motion to recall the Resolution from the Committee on Judiciary.

There was no objection.

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

S. 278 (Word version) -- Senator Hutto: A JOINT RESOLUTION TO DIRECT THE COMPTROLLER GENERAL TO RELEASE PROPERTY TAX REIMBURSEMENTS FOR THE ALLENDALE COUNTY SCHOOL DISTRICT FOR THE 2005-06 FISCAL YEAR THAT ARE CURRENTLY BEING WITHHELD BECAUSE OF THE FAILURE OF THE ALLENDALE COUNTY GOVERNMENT TO SUBMIT AUDITED FINANCIAL REPORTS FOR THE 2004-05 FISCAL YEAR, WITH THE AMOUNT RELEASED TO BE BASED UPON THE DISTRICT'S PORTION OF THE TOTAL PROPERTY TAX MILLAGE FOR THE COUNTY, WHICH IS 57.9646 PERCENT, MULTIPLIED BY THE TOTAL AMOUNT WITHHELD FOR THE COUNTY.

Senator HUTTO asked unanimous consent to make a motion to recall the Resolution from the local Allendale Delegation.

There was no objection and the Resolution was recalled from the delegation.

Senator HUTTO asked unanimous consent to give the Resolution a third reading and order the Resolution sent to the House.

There was no objection.

The Resolution was read the third time and sent to the House.

The following were introduced:

S. 807 (Word version) -- Senator Scott: A SENATE RESOLUTION RECOGNIZING ROMIE SIMMONS FOR HIS OUTSTANDING

The Senate Resolution was adopted.

S. 808 (Word version) -- Senators Hawkins and Hayes: A BILL TO AMEND CHAPTER 7, TITLE 20 OF THE 1976 CODE, TO ENACT THE MILITARY PARENT EQUAL PROTECTION ACT, TO PROVIDE THAT A MILITARY PARENT'S MILITARY SERVICE SHALL NOT BE CONSIDERED A CHANGE IN CIRCUMSTANCE FOR PURPOSES OF CHILD CUSTODY AND VISITATION, TO PROVIDE THAT THE CUSTODIAL NON-MILITARY PARENT MUST REASONABLY ACCOMMODATE THE MILITARY PARENT'S LEAVE SCHEDULE, TO PROVIDE THAT THE FAMILY COURT MAY HOLD AN EXPEDITED TEMPORARY HEARING TO ENSURE THAT THE MILITARY PARENT HAS ACCESS TO A MINOR CHILD, AND TO PROVIDE THAT ANY INCREASE OR DECREASE IN EARNING CAPACITY DUE TO MILITARY SERVICE IS NOT CONSIDERED A PERMANENT CHANGE.
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Read the first time and referred to the Committee on Judiciary.

S. 809 (Word version) -- Senator Reese: A JOINT RESOLUTION TO ESTABLISH A MEDICAID TRANSPORTATION ADVISORY COMMITTEE, TO PROVIDE FOR ITS MEMBERS, POWERS, AND DUTIES, INCLUDING RESOLVING ISSUES AND COMPLAINTS CONCERNING THE MEDICAID TRANSPORTATION BROKERAGE SYSTEM, AND TO PROVIDE THAT THE COMMITTEE IS ABOLISHED AT SUCH TIME AS THE CONTRACT EXPIRES OR IS TERMINATED FOR THE OPERATION OF THE MEDICAID TRANSPORTATION BROKERAGE SYSTEM.
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Read the first time and referred to the Committee on Medical Affairs.

S. 810 (Word version) -- Senator Malloy: A SENATE RESOLUTION TO CONGRATULATE THE HARTSVILLE HIGH SCHOOL "RED FOXES" BASEBALL TEAM OF DARLINGTON COUNTY ON ITS EXCITING AAAA STATE CHAMPIONSHIP WIN AND TO

The Senate Resolution was adopted.

S. 811 (Word version) -- Senator Knotts: A SENATE RESOLUTION TO REQUEST THE STATE BUDGET AND CONTROL BOARD TO SUBMIT A REPORT TO THE SOUTH CAROLINA SENATE REGARDING SPECIFICATIONS TO BE USED IN SCHOOL BUSES AND TO PROVIDE THE BOARD SHOULD NOT ENTER INTO CONTRACTS TO PURCHASE NEW SCHOOL BUSES UNTIL THE REPORT IS SUBMITTED TO THE SENATE.
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Senator KNOTTS spoke on the Resolution.

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

Senator SHORT objected.

The Senate Resolution was introduced and referred to the Committee on Finance.

S. 812 (Word version) -- Senators Grooms, Campsen, Verdin and Bryant: A BILL TO AMEND CHAPTER 5, TITLE 56, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 50 TO REQUIRE THAT A RETAILER OF ALL-TERRAIN VEHICLES MUST ATTACH A WARNING TO EACH ALL-TERRAIN VEHICLE SOLD, TO PROVIDE THAT AN OWNER OF AN ALL-TERRAIN VEHICLE MAY NOT KNOWINGLY ALLOW A CHILD UNDER THE AGE OF SIXTEEN TO OPERATE THE ALL-TERRAIN VEHICLE WITHOUT WRITTEN PERMISSION FROM THE CHILD'S PARENT OR LEGAL GUARDIAN, 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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Read the first time and, on motion of Senator GROOMS, with unanimous consent, S. 812 was ordered placed on the Calendar without reference.

S. 813 (Word version) -- Senator Malloy: A SENATE RESOLUTION TO CONGRATULATE THE EMMANUEL CHRISTIAN SCHOOL BASEBALL TEAM OF DARLINGTON COUNTY ON ITS MOST IMPRESSIVE 2A SOUTH CAROLINA CHRISTIAN SCHOOLS ASSOCIATION STATE CHAMPIONSHIP WIN AND TO HONOR THE PLAYERS AND HEAD COACH BRENT HALL ON AN INCREDIBLE SEASON.
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The Senate Resolution was adopted.

H. 4207 (Word version) -- Rep. Barfield: A CONCURRENT RESOLUTION TO OFFER THE WARMEST CONGRATULATIONS TO THE HONORABLE AND MRS. MILFORD JUNE COOPER OF ANDERSON COUNTY ON THE OCCASION OF THEIR SIXTIETH WEDDING ANNIVERSARY ON JUNE 15, 2007, AND TO EXTEND TO THEM BEST WISHES FOR CONTINUED HAPPINESS IN THE YEARS TO COME.

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

H. 4210 (Word version) -- Reps. Barfield, Agnew, Alexander, Allen, Anderson, Anthony, Bales, Ballentine, Bannister, 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, 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, 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,

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

Senator GREGORY from the Committee on Fish, Game and Forestry polled out S. 797 favorable:

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.

Gregory                   Drummond                  Land
McGill                    Elliott                   Moore

Hutto                     Sheheen                   Martin
Knotts                    Thomas

Grooms                    Cromer                    Alexander
Campsen                   Vaughn

Ordered for consideration tomorrow.

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

H. 3526 (Word version) -- Reps. Taylor, Brady, Bales, Bedingfield, Bowers, Branham, Chellis, Gullick, Hagood, Hardwick, Knight, Limehouse, Littlejohn, Mahaffey, Scarborough, J.R. Smith, Talley, Bingham, Toole, R. Brown, Mulvaney, Whipper and Loftis: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-3477 SO AS TO ALLOW A CREDIT AGAINST THE STATE INCOME TAX EQUAL TO ONE THOUSAND DOLLARS IN A TAXABLE YEAR FOR A TAXPAYER EMPLOYING AN APPRENTICE IN AN APPRENTICESHIP PROGRAM REGISTERED WITH THE UNITED STATES DEPARTMENT OF LABOR, TO ALLOW UNUSED CREDIT TO CARRY FORWARD TO FIVE SUCCEEDING TAXABLE YEARS, AND TO PROVIDE FOR THE ADMINISTRATION OF THIS CREDIT.

Ordered for consideration tomorrow.

Columbia, S.C., May 30, 2007

Mr. President and Senators:

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

H. 3135 (Word version) -- Reps. J.E. Smith, Funderburk and Cotty: A JOINT RESOLUTION TO ESTABLISH A STUDY COMMITTEE TO DEVELOP A STATEWIDE COMPREHENSIVE SERVICE DELIVERY SYSTEM FOR PERSONS WITH EPILEPSY IN THIS

Received as information.

Columbia, S.C., May 30, 2007

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has overridden the veto by the Governor on R.53, S. 277 by a vote of 3 to 0:

(R53, S277 (Word version)) -- Senator Verdin: AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 57-23-830 SO AS TO PROVIDE THAT THE DEPARTMENT OF TRANSPORTATION MAY MOW BEYOND THIRTY FEET FROM THE PAVEMENT ROADSIDE VEGETATION ADJACENT TO THE PORTION OF INTERSTATE HIGHWAY 385 IN LAURENS COUNTY BETWEEN MILE MARKER 11 AND ITS CONFLUENCE WITH INTERSTATE HIGHWAY 26, AND ADJACENT TO INTERSTATE HIGHWAY 26 FROM ITS CONFLUENCE WITH INTERSTATE HIGHWAY 385 TO THE NEWBERRY COUNTY LINE.
Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., May 30, 2007

Mr. President and Senators:

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

H. 3355 (Word version) -- Reps. Delleney, Mulvaney, Bedingfield, Shoopman, Leach, Gullick, Duncan, Hamilton, Kelly, M.A. Pitts, Rice, Talley, Walker, Haskins, Simrill, Vick, Owens, Viers, Loftis, G.M. Smith, Toole, G.R. Smith, Pinson and Bingham: A BILL TO AMEND SECTION 44-41-330 OF THE 1976 CODE, RELATING TO PREREQUISITES FOR THE PERFORMANCE OF AN ABORTION,

Received as information.

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

Columbia, S.C., May 30, 2007

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has appointed Reps. G. M. Smith, W. D. Smith and Rutherford to the Committee of Conference on the part of the House on:

S. 446 (Word version) -- Senators Malloy, McConnell, Ford, Rankin, Knotts, Cleary, Anderson, Vaughn, Hawkins, Scott, Williams, Drummond, Mescher, Thomas, Short, Hutto, Leatherman, Richardson, Leventis, Elliott, Patterson, Pinckney, Land, Lourie, Jackson, Peeler, Sheheen, Moore and McGill: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, SO AS TO ENACT THE "INDIGENT DEFENSE ACT" BY ADDING SECTION 17-3-5 SO AS TO DEFINE CERTAIN TERMS FOR PURPOSES OF THE CHAPTER; BY ADDING ARTICLE 5, CHAPTER 3, TITLE 17 SO AS TO ESTABLISH CIRCUIT PUBLIC DEFENDER SELECTION PANELS, PROVIDE FOR THEIR MEMBERSHIP AND RESPONSIBILITIES RELATED TO THE APPOINTMENT OF CIRCUIT PUBLIC DEFENDERS, PROVIDE ELIGIBILITY REQUIREMENTS FOR CIRCUIT PUBLIC DEFENDERS AND ESTABLISH THEIR DUTIES, AND AUTHORIZE THE CIRCUIT PUBLIC DEFENDERS TO EMPLOY CHIEF COUNTY PUBLIC DEFENDERS AND OTHER NECESSARY PERSONNEL; TO AMEND SECTION 17-3-30, RELATING TO THE AFFIDAVIT REGARDING A PERSON'S INABILITY TO EMPLOY COUNSEL AND PAYMENT OF AN INDIGENT PERSON'S ASSETS TO THE STATE, SO AS TO PROVIDE THOSE ASSETS ARE TO BE PAID TO THE GENERAL FUND OF THE STATE; TO AMEND SECTION 17-3-50, RELATING TO FEES FOR APPOINTED COUNSEL AND PUBLIC DEFENDERS, SO AS TO DELETE OBSOLETE LANGUAGE REGARDING THE APPOINTMENT OF COUNSEL IN ACCORDANCE WITH A PLAN PROMULGATED BY THE BAR OF EACH COUNTY; TO AMEND SECTION 17-3-90, RELATING TO PAYMENT VOUCHERS FOR PRIVATE, APPOINTED COUNSEL, SO AS TO MAKE CONFORMING

Received as information.

Columbia, S.C., May 30, 2007

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has appointed Reps. Scott, Stewart and Clemmons to the Committee of Conference on the part of the House on:

S. 327 (Word version) -- Senator Sheheen: A BILL TO AMEND SECTIONS 7-5-10, 7-5-35, AND 7-13-70, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE APPOINTMENT AND REMOVAL OF MEMBERS OF THE COUNTY BOARD OF REGISTRATION AND COUNTY COMMISSIONERS OF ELECTION AND THE COMPOSITIONS OF THESE BOARDS AND COMMISSIONS, SO AS TO REQUIRE THAT THE CERTIFICATION BE ISSUED WHEN A MEMBER OR DESIGNATED STAFF PERSON HAS COMPLETED A TRAINING PROGRAM AND TO REQUIRE THE GOVERNOR TO REMOVE A MEMBER OF THESE BOARDS OR COMMISSIONS, APPOINTED ON OR AFTER THE ACT'S EFFECTIVE DATE, WHO HAS NOT FULFILLED THE TRAINING REQUIREMENT WITHIN EIGHTEEN MONTHS.
Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., May 31, 2007

Mr. President and Senators:

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

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.
Very respectfully,
Speaker of the House

Received as information.

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

A message was sent to the House accordingly.

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.

Returned with concurrence.

Received as information.

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.

Returned with concurrence.

Received as information.

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.

Returned with concurrence.

Received as information.

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.

Returned with concurrence.

Received as information.

S. 632 (Word version) -- Senators Patterson, Courson, Jackson and Lourie: A JOINT RESOLUTION A JOINT RESOLUTION TO ALLOW THE DEPARTMENT OF REVENUE TO AMEND THE 2007 INDEX OF TAXPAYING ABILITY FOR PURPOSES OF CALCULATING THE 2007 INDEX OF TAXPAYING ABILITY.

On motion of Senator CAMPSEN, with unanimous consent, the name of Senator CAMPSEN was added as a co-sponsor of S. 632.

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

The following Bill and Joint Resolution 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:

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

H. 3304 (Word version) -- Reps. J.M. Neal, McLeod, Branham, Chalk, Frye, Gambrell, Littlejohn, Lucas, Mulvaney, Neilson, Rice, Spires, Viers and Agnew: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 7 TO CHAPTER 61, TITLE 44 SO AS TO ENACT THE "SOUTH CAROLINA EMERGENCY MEDICAL SERVICES EMPLOYMENT ACT" AND TO REQUIRE AFTER JUNE 30, 2007, A PERSON SEEKING EMPLOYMENT AS AN EMERGENCY MEDICAL TECHNICIAN (EMT) TO UNDERGO A CRIMINAL RECORDS CHECK PRIOR TO EMPLOYMENT, TO PROHIBIT

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

Senators McCONNELL, MALLOY and FORD proposed the following amendment (JUD3304.001), which was adopted:

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

/   SECTION   ___.     A.   Section 23-3-620 of the 1976 Code is amended to read:

"Section 23-3-620.   (A)   Following sentencing and at the time of intake at a jail or prison a lawful custodial arrest or a direct indictment for a felony offense or an offense that is punishable by a sentence of five years or more, either of which is committed in this State, the person arrested must provide a saliva or tissue sample from which DNA may be obtained for inclusion in the State DNA Database must be provided by:.

(1)   any person convicted or adjudicated delinquent and incarcerated in a state correctional facility on or after July 1, 2004, for:

(a)   eavesdropping or peeping (Section 16-17-470); or

(b)   any offense classified as a felony in Section 16-1-90 or any other offense that carries a maximum term of imprisonment of five years or more; and

(2)   any criminal offender convicted or adjudicated delinquent on or after July 1, 2004, who is ordered by the court to provide a sample.

(B)   A convicted offender who is required to provide a DNA sample under subsections (A)(1) or (A)(2) but who is not sentenced to a term of confinement must provide a sample as a condition of his sentence. This sample must be taken at a prison, jail, or other location as specified by the sentencing court law enforcement agency with jurisdiction over the offense for which the person was subjected to a lawful custodial arrest. If appropriately trained personnel are not available to take a sample from which DNA may be obtained, the failure of the arrested person to provide a DNA sample shall not be the sole basis for refusal to release the person from custody. An arrested

(C)(B)   At such time as possible and before parole or release Unless a sample has already been provided pursuant to the provisions of subsection (A), before a person may be paroled or released from confinement, the person must provide a suitable sample from which DNA may be obtained for inclusion in the State DNA Database must be provided by:

(1)   a person who was convicted or adjudicated delinquent before July 1, 2004, and who was sentenced to and is serving a term of confinement on or after July 1, 2004, for:

(a)   eavesdropping or peeping (Section 16-17-470); or

(b)   any offense classified as a felony in Section 16-1-90 or any other offense that carries a maximum term of imprisonment of five years or more; and

(2)   any criminal offender ordered by the court who was convicted or adjudicated delinquent before July 1, 2004, and who was sentenced to and is serving a term of confinement on or after July 1, 2004.

(D)(C)   An agency having custody of an offender who is required to provide a DNA sample under pursuant to subsection (C)(1) or (C)(2) (B) must notify SLED at least three days, excluding weekends and holidays, before the individual person is paroled or released from confinement.

(E)(D)   At such time as possible and Unless a sample has already been provided pursuant to the provisions of subsection (A), before release a person is released from confinement or release released from the agency's jurisdiction, a suitable sample from which DNA may be obtained for inclusion in the State DNA Database must be provided as a condition of probation or parole by:

(1)   a person convicted or adjudicated delinquent before July 1, 2004, who is serving a probated sentence or is paroled on or after July 1, 2004, for:

(a)   eavesdropping or peeping (Section 16-17-470); or

(b)   any offense classified as a felony in Section 16-1-90 or any other offense that carries a maximum term of imprisonment of five years or more; and

(2)   any criminal offender ordered by the court who was convicted or adjudicated delinquent before July 1, 2004, and who is serving a probated sentence or is paroled on or after July 1, 2004.

(F)   A person who provides a sample pursuant to this article also must provide any other information as may be required by SLED.

(G)(E)   A person required to provide a sample pursuant to this section may be required to provide another sample if the original sample is lost, damaged, contaminated, or unusable for examination.

(H)(F)   The provisions of this section apply to juveniles notwithstanding the provisions of Section 20-7-8510."

B.     Section 23-3-630 of the 1976 Code is amended to read:

"Section 23-3-630.   (A)   Only a correctional health nurse technician, physician, registered professional nurse, licensed practical nurse, laboratory technician, or other an appropriately trained health care worker person may take a sample from which DNA may be obtained.

(B)   A person taking a sample pursuant to this article is immune from liability if the sample was taken according to recognized medical procedures. However, no person is relieved from liability for negligence in the taking of any blood a sample."

C.     Section 23-3-650 of the 1976 Code is amended to read:

"Section 23-3-650.   (A)   The DNA sample and the results of a DNA profile of an individual provided under this article are confidential and must be securely stored, except that SLED must make available the results to federal, state, and local law enforcement agencies and to approved crime laboratories which serve these agencies and to the solicitor or the solicitor's designee upon a written or electronic request and in furtherance of an official investigation of a criminal offense. These results or the DNA sample of an individual also must be made available as required by a court order following a hearing directing SLED to release the record or sample.

(B)   To prevent duplications of DNA samples, SLED must coordinate with any law enforcement agency obtaining a DNA sample to determine whether a DNA sample from the person under lawful custodial arrest has been previously obtained and is in the DNA database.

(B)(C)   A person who wilfully discloses in any manner individually identifiable DNA information contained in the State DNA Database to a person or agency not entitled to receive this information is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars or imprisoned not more than one year, or both.

(C)(D)   A person who, without authorization, wilfully obtains individually identifiable DNA information from the State DNA Database is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars or imprisoned not more than one year, or both."

D.   Section 23-3-660 of the 1976 Code is amended to read:

"Section 23-3-660.   (A)   A person whose DNA record has been included in the State DNA Database may request expungement on the grounds that:

(1)   the charges pending against the person who has been arrested have been nolle prossed or dismissed; or

(2)   the person's conviction or adjudication has been reversed, set aside, or vacated.

(B)   SLED shall must purge DNA and all other identifiable record information from the State Database and shall must destroy the person's sample if SLED receives the person's written request for expungement and either:

(1)   a document from the court or law enforcement agency that the charges have been nolle prossed or dismissed; or

(2)   a certified copy of the court order reversing, setting aside, or vacating the conviction or adjudication and.

(C)   The person seeking expungement must provide proof that the identity of the individual making the request is the person whose record is to be expunged.

(D)   If the person has more than one entry in the State DNA Database, only the entry covered by the expungement request may be expunged."

E.     Section 23-3-670 of the 1976 Code is amended to read:

"Section 23-3-670.   (A)   A person who is required to provide a sample pursuant to this article must pay a two hundred and fifty dollar processing fee which may not be waived by the court The cost of collecting and processing a sample pursuant to this article must be paid by the general fund of the State. A fee of two hundred fifty dollars must be assessed at the time of the sentencing against persons convicted of, pleading guilty or nolo contendere to, or forfeiting bond for the crime for which they were arrested.

(1)   If the person is incarcerated, the fee must be paid before the person is paroled or released from confinement and may be garnished from wages the person earns while incarcerated.

(2)   If the person is not sentenced to a term of confinement, payment of the fee must be a condition of the person's sentence and may be paid in installments if so ordered by the court.

(B)   The processing fee assessed pursuant to this section must be remitted to the general fund of the State and credited to the State Law Enforcement Division to offset the expenses SLED incurs in carrying out the provisions of this article."

F.     The repeal or amendment by the provisions of this SECTION or 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.

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

H.   The provisions of this SECTION take effect on July 1, 2008; however, the implementation of the procedures provided for in the provisions of this SECTION is contingent upon the State Law Enforcement Division's receipt of funds necessary to implement these provisions.     /

Renumber sections to conform.

Amend title to conform.

Senator MALLOY explained the amendment.

The amendment was adopted.

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

H. 3362 (Word version) -- Reps. Parks, Sandifer, Scott, Pinson, Allen, Agnew, Alexander, Cato, Cobb-Hunter, Davenport, Harrison, Hart, Harvin, Howard, Jefferson, Leach, Miller, J.H. Neal, M.A. Pitts, Sellers, F.N. Smith, Taylor, Weeks, Whipper, Whitmire and Mahaffey: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 44-63-72 SO AS TO REQUIRE AN EMBALMER OR FUNERAL DIRECTOR WHO FILES A DEATH CERTIFICATE TO PROVIDE HIS EMBALMER OR FUNERAL HOME DIRECTOR LICENSE NUMBER ON THE DEATH CERTIFICATE; AND TO AMEND SECTION 44-63-70, RELATING TO THE STATE REGISTRAR'S OBLIGATION TO PRESCRIBE DEATH CERTIFICATE FORMS, AMONG OTHER VITAL STATISTICS FORMS, TO COUNTY REGISTRARS AND APPROPRIATE AGENCIES, SO AS TO REQUIRE THE REGISTRAR TO INCLUDE ON DEATH CERTIFICATE FORMS A SPACE WHERE AN EMBALMER OR FUNERAL DIRECTOR MAY PROVIDE HIS LICENSE NUMBER WHEN FILING A DEATH CERTIFICATE.

Senators KNOTTS and VAUGHN asked unanimous consent to make a motion to take up further amendments pursuant to the provisions of Rule 26B.

There was no objection.

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

Senator KNOTTS proposed the following amendment (JUD3362.001), which was adopted:

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

/   SECTION   ___.   Section 40-19-20(18) of the 1976 Code is amended to read:

"(18)   'Practice of funeral service' means:

(a)   engaging in providing shelter, care, and custody of the human dead;

(b)   the practice of preparing the human dead by embalming or other methods for burial or other disposition;

(c)   arranging for the transportation of the human dead;

(d)   making arrangements at or before the time of death, financial or otherwise, including arrangements for cremation, for providing these services, or the sale of funeral merchandise, whether for present or future use; provided, that no funeral director, embalmer, funeral company, cemetery, or related entity shall charge a fee for the assignment to the funeral director, embalmer, funeral company, cemetery, or related entity of an insurance policy providing burial expenses, excluding preneed contracts as provided in Section 32-7-35; and

(e)   engaging in the practice or performing any functions of funeral directing or embalming as presently recognized by persons engaged in these functions."

SECTION   ___.   Section 40-19-110 of the 1976 Code is amended by adding an appropriately numbered subsection at the end to read:

"( )   an embalmer, funeral director, funeral company, cemetery, or related entity charging a fee for assignment to the embalmer, funeral director, funeral company, cemetery, or related entity of an insurance policy providing burial expenses, excluding preneed contracts as provided in Section 32-7-35."     /

Renumber sections to conform.

Amend title to conform.

Senator KNOTTS explained the amendment.

The amendment was adopted.

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

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

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.

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, 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.

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 TO AUTHORIZE THE COMMISSION TO APPOINT AND REMOVE THE EXECUTIVE DIRECTOR.

By prior motion of Senator ALEXANDER

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

On motion of Senator REESE, with unanimous consent, H. 3239 was ordered to receive a third reading on Friday, June 1, 2007.

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.

Senator LEVENTIS explained the Bill.

On motion of Senator LEVENTIS, with unanimous consent, the Bill was given a second reading.

H. 3317 (Word version) -- Reps. Walker, Hinson, Harrell, Cobb-Hunter, Weeks, Hart, F.N. Smith, Parks, Knight, Williams, Jefferson, Howard, McLeod, Mahaffey, Herbkersman and Agnew: A BILL TO AMEND ARTICLE 13, CHAPTER 43, TITLE 44 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE GIFT OF LIFE TRUST FUND, SO AS TO CHANGE THE NAME TO "DONATE LIFE SOUTH CAROLINA", AND TO ADD ARTICLE 14 TO CHAPTER 43, TITLE 44 SO AS TO ESTABLISH AN ORGAN AND TISSUE DONOR REGISTRY TO BE ADMINISTERED BY DONATE LIFE SOUTH CAROLINA; AND TO AMEND SECTION 56-1-80, RELATING TO DRIVER'S LICENSE AND PERMIT APPLICATIONS, SO AS TO REQUIRE THE DEPARTMENT OF MOTOR VEHICLES TO PROVIDE ORGAN DONOR INFORMATION INDICATED ON SUCH APPLICATIONS TO DONATE LIFE SOUTH CAROLINA.

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

Senator RITCHIE proposed the following amendment (H-3317 AMENDMENT), which was adopted:

Amend the bill, as and if amended, page 2, Section 44-43-1320, by striking lines 4-27 and inserting:

/   Section 44-43-1320.   (A)   The Gift of Life Trust Fund Donate Life South Carolina is to be administered by a board of directors appointed by the Governor, with the advice and consent of the Senate, and is composed of:

(1)   one representative from LifePoint, Inc.;

(2)   one representative from a civic organization that promotes organ or tissue donation or both;

(3) (2)     four members representing organ, and tissue, and eye recipients, families of recipients, and families of donors who are residents of South Carolina; of these four members, one each must represent the Lowcountry, Pee Dee, Midlands, and Piedmont regions of the State;

(4) (3)     one forensic pathologist who is a resident of and who is licensed to practice medicine in South Carolina;

(5) (4)     four at-large members who have demonstrated an interest in organ, and tissue, and eye donation and education and who are residents of this State.

(B)   Members shall serve terms of four years and until successors are appointed and qualify. A board member may be removed by the Governor in accordance with Section 1-3-240(B). Members may serve no more than two full terms, except that there is no limit to the number of terms that a forensic pathologist may serve. Vacancies must be filled in the manner of the original appointment for the unexpired portion of the term.             /

Renumber sections to conform.

Amend title to conform.

Senator RITCHIE explained the amendment.

The amendment was adopted.

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

On motion of Senator FAIR, with unanimous consent, H. 3317 was ordered to receive a third reading on Friday, June 1, 2007.

H. 3820 (Word version) -- Reps. Cato, Viers, Clemmons, Bales, Hardwick, Miller, Haley, Perry, Leach, Anderson, Witherspoon, Barfield, Battle, Dantzler, Edge, Herbkersman and Hodges: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ENACTING THE "OMNIBUS COASTAL PROPERTY INSURANCE REFORM ACT OF 2007", TO ALLOW AN INSURANCE POLICYHOLDER TO ESTABLISH A CATASTROPHE SAVINGS ACCOUNT, TO ALLOW A TAX CREDIT FOR CERTAIN EXPENDITURES, TO ALLOW A THREE PERCENT SALES TAX ON SPECIFIED BUILDING MATERIALS USED ON HOMES TO MITIGATE DAMAGE FROM WIND, TO PROVIDE THAT THE DIRECTOR OF THE DEPARTMENT OF INSURANCE HAS AUTHORITY TO ISSUE GENERAL ORDERS APPLICABLE TO ALL INSURANCE COMPANIES AFTER THE GOVERNOR DECLARES A STATE OF EMERGENCY, TO ALLOW TAX CREDIT INCENTIVES TO INSURANCE COMPANIES THAT PROVIDE FULL INSURANCE COVERAGE TO PROPERTY OWNERS ALONG THE COAST, TO REGULATE CERTAIN INSURANCE RATES, TO PROVIDE FOR ADDITIONAL GENERAL CORPORATE POWERS AND DUTIES FOR THE SOUTH CAROLINA WIND AND HAIL UNDERWRITING ASSOCIATION AND TO REGULATE THEIR RATES, TO ESTABLISH THE "SOUTH CAROLINA HURRICANE GRANT DAMAGE MITIGATION PROGRAM" WHICH PROVIDES FOR A GRANT PROGRAM FOR THE MITIGATION OF DAMAGE TO OR THE ENHANCEMENT OF MANUFACTURED HOMES, AND TO INCREASE THE TIME PERIOD FOR NOTIFYING AN INSURED OF THE CANCELLATION OR REFUSAL TO RENEW AN INSURANCE POLICY.
(Abbreviated Title)

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

The Banking and Insurance Committee proposed the following amendment (DKA\3367DW07), which was adopted:

Amend the bill, as and if amended, Section 38-75-755(A), SECTION 6, page 10, line 24, by striking / commercial property or /.

When amend Section 38-75-755(A) reads:

/ (A)   All insurers, at the issuance of a new policy and at each renewal, clearly shall notify the applicant or policyholder of a personal lines residential property insurance policy of the availability and the range of each premium discount, credit, other rate differential, or reduction in deductibles for properties on which fixtures or construction techniques demonstrated to reduce the amount of loss in a windstorm have been installed or implemented. The notice must describe generally what measures the policyholders may take to reduce their windstorm premium. /

Amend further, by striking in its entirety Section 38-75-460 as contained SECTION 10, page 21, and inserting:

/   "Section 38-75-460.   The director or his designee, by written order, temporarily may expand the area in which the association shall provide essential property insurance. The director or his designee shall find and declare the existence of an emergency because of the unavailability of coastal property insurance or other unavailability of coastal property insurance on a reasonable basis through normal channels. The order must include the surveys of the market conducted in order to make the determination. The director or his designee may expand the area in which the association shall provide essential property insurance to the whole area or just part of the area. The director may expand the area by construction type or age of construction. The area may not be expanded further than the seacoast territory as defined in Section 38-75-310(7) and may not be expanded to cover the area for more than twenty-four months. If the director or his designee issues an order that expands the area in which the association provides essential property insurance, he shall notify the General Assembly of that order and he shall recommend to the General Assembly any appropriate statutory changes in the law concerning the definition of 'coastal area' which he believes needs to be enacted.

(A)   In order to maintain stability in the property insurance market and to assure the continued, consistent availability of essential property insurance coverage in the coastal area, the Director of the Department of Insurance, who is selected as defined in Section 38-1-20(16), or his designee, by written order, may expand the coastal area in which the association shall provide essential property insurance for periods up to twenty-four months. The order is subject to renewal by the director but no renewal shall exceed twenty-four months. In determining whether

(1)   changes in the number of insurers writing essential property insurance in the seacoast area and the capacity of those insurers including, but not limited to, the number of policies those insurers have cancelled or nonrenewed, as provided in Sections 38-75-730, 38-75-740, and 38-75-1160, during the previous twelve months;

(2)   changes in the extent to which (a) nonadmitted or surplus lines insurers, or (b) South Carolina Coastal Captive Insurance Companies, pursuant to Article 5 of Chapter 90 of Title 38, are providing essential property insurance in the seacoast area;

(3)   changes in reinsurance activity impacting insurers writing essential property insurance in the seacoast area;

(4)   changes in the demand for property insurance in the seacoast area; and

(5)   any other information considered relevant to effectuate the purpose of this chapter including, but not limited to, the availability of essential property insurance coverage for insurable property that is within the coastal area and is located in a Coastal Barrier Resource Act (CBRA) zone.

(B)   The director or his designee shall find and declare the existence of conditions that threaten to destabilize the property insurance market and jeopardize the continued, consistent availability of essential property insurance in the seacoast area. The director or his designee shall utilize market surveys, data calls, catastrophe models, reinsurance information, and other objective sources to support the order of expansion.

(C)   The director or his designee may expand the coastal area in which the association shall provide essential property insurance. The expansion may encompass a portion of the seacoast area or the entire seacoast area, but may not extend further than the seacoast area. The area must not be expanded more than reasonably necessary to ensure a stable property insurance market. An expansion of the coastal area is subject to the plan of operation as amended and approved by the director or his designee. The director or his designee shall report any expansion of the coastal area to the General Assembly within thirty days of the order of expansion or upon commencement of the next term of the General Assembly, if expansion occurs when the General Assembly is not in session. The General Assembly may revise or vacate any expansion order by passage of a joint resolution." /

Amend further by adding an appropriately numbered SECTION to read:

/ SECTION   __.   Chapter 90, Title 38 of the 1976 Code is amended by adding:

Section 38-90-810.   This article may be cited as the 'South Carolina Coastal Captive Insurance Company Act'.

Section 38-90-820.   For purposes of this article:

(1)   'Peril' means the cause of an insured loss.

(2)   'South Carolina coastal captive insurance company' means a captive insurance company, as it is defined by Section 38-90-10(8), that is specifically formed to provide wind and storm surge property insurance coverage in this State.

(3)   'Storm surge' means a temporary rise in sea-level accompanying a hurricane or other intense storm that is associated with the hurricane's or storm's low barometric pressure and winds, and that is usually measured as the difference between the observed sea-level height and the normal sea-level height, such as the level that would have occurred in the absence of the storm, taking into account the predicted tide.

(4)   'Wind' means windstorms, cyclones, hurricanes, tornadoes, high winds, and hail, and similar perils not normally among those covered under most property insurance policies but obtainable through the purchase of wind, wind and hail, storm or windstorm coverage, or both.

Section 38-90-830.   (A)   A South Carolina coastal captive insurance company, if permitted by its articles of incorporation or organization, operating agreement, or charter, may apply to the director for a license to write primary and excess wind and storm surge insurance covering property within the State of South Carolina, and may not write insurance covering any other perils nor may it write insurance coverage in any other state.

(B)   A South Carolina coastal captive insurance company that qualified as an association captive under the provisions of Section 38-90-10(3) is exempt from the requirement that the association be in existence for one year so long as the association is in good standing as an entity upon becoming an owner of a South Carolina coastal captive insurance company.

(C)   A South Carolina coastal captive insurance company is exempt from the provisions of Section 38-90-20(A)(5) that prohibit a captive

(D)(1)   A South Carolina coastal captive insurance company formed as a sponsored captive insurance company:

(a)   is exempt from the provisions of Section 38-90-220 that require that the business written by a sponsored captive insurance company, with respect to each protected cell, must be fronted by an insurance company license pursuant to the laws of:

(i)   a state; or

(ii)   a jurisdiction if the insurance company is a wholly owned subsidiary of an insurance company licensed pursuant to the laws of any state; provided that the South Carolina coastal captive insurance company also meets the requirements of subsection (E) of this section.

(b)   may create a protected cell as a legal person separate from the protected cell company and may organize a protected cell under any incorporation or organization option available under Section 38-90-60, unless the director finds such option is not feasible pursuant to Section 38-90-860(B);

(c)   may have as its sponsor an association formed to address coastal property and insurance issues.

(2)   A South Carolina coastal captive insurance company may issue directly its own policies to insureds.

(E)   Any South Carolina coastal captive insurance company that otherwise qualifies for the limited exemption from the provisions of Section 38-9-220 pursuant to subsection (D)(1) of this section and any South Carolina coastal captive insurance company, regardless of form, that issues policies directly to the public shall comply with the following:

(1)   It shall not expose itself to a loss on one risk in an amount exceeding ten percent of its surplus to policyholders and any risk or portion of it which has been reinsured must be deducted in determining this limitation of risk;

(2)   It shall not have loss reserves in excess of five times its surplus to policyholders;

(3)   It shall not have net premiums written in excess of three times its surplus to policyholders and any risk or portion of it which has been reinsured must be deducted in determining this limitation of risk; and

(4)   It shall file quarterly and annual statements with the department in accordance with statutory accounting principles on forms

(F)   To conduct business in this State, a South Carolina coastal captive insurance company shall:

(1)   obtain from the director a license authorizing it to conduct business as a South Carolina coastal captive insurance company in this State;

(2)   hold at least one meeting of its governing body each year in this State;

(3)   maintain its principal place of business in this State;

(4)   appoint a registered agent to accept service of process and act otherwise on its behalf in this State; and

(5)   name the director as the agent for the South Carolina coastal captive insurance company upon whom process, notice, or demand may be served if a registered agent, with reasonable diligence, is not located and served.

(G)   Before receiving a license, a South Carolina coastal captive insurance company shall file with the director:

(1)   a certified copy of its organizational documents;

(2)   a statement under oath of its president and secretary or other persons considered appropriate by the director showing its financial condition; and

(3)   other documents required by the director.

(H)   In addition to the information required by subsection (G), the applicant South Carolina coastal captive insurance company shall file with the director evidence of:

(1)   the amount and liquidity of its assets relative to the risks to be assumed;

(2)   the adequacy of the expertise, experience, and character of the person who manages it;

(3)   the overall soundness of its plan of operation;

(4)   the adequacy of loss prevention programs;

(5)   other overall factors considered relevant by the director in ascertaining if the proposed South Carolina coastal captive insurance company is able to meet its policy obligations; and

(6)   any information required by Section 38-90-20 specifically applicable to the form of the South Carolina coastal captive insurance company, and fees prescribed by that section.

(I)   Information submitted pursuant to this section is confidential as provided in Section 38-90-35, except that information is discoverable by a party in a civil action or contested case to which the South Carolina coastal captive insurance company that submitted the information is a party, upon a finding by the court that:

(1)   the captive insurance company is a necessary party to the action and not joined only for the purposes of evading the confidentiality provisions of this chapter;

(2)   the information sought is relevant, material to, and necessary for the prosecution or defense of the claim asserted in litigation; and

(3)   the information sought is not available through another source.

Section 38-90-840.   (A)(1)   The director may not issue a license to a South Carolina coastal captive insurance company unless the company possesses and maintains unimpaired paid-in capital of not less than one million dollars; however, in the case of a South Carolina coastal captive insurance company formed as a sponsored captive insurance company that does not assume any risk, where the risks insured by the protected cells are homogeneous, the director may reduce this amount to an amount not less than five hundred thousand dollars.

(2)(a)   Except for a South Carolina coastal captive insurance company formed as a sponsored captive insurance company that does not assume any risk, the capital must be in the form of cash, cash equivalent, or an irrevocable letter of credit issued by a bank chartered by this State or a member bank of the Federal Reserve System with a branch office in this State or as approved by the director.

(b)   For a South Carolina coastal captive insurance company formed as a sponsored captive insurance company that does not assume any risk, the capital also may be in the form of other high quality securities as approved by the director.

(B)   For purposes of subsection (A), the director may issue a license expressly conditioned upon the South Carolina coastal captive insurance company providing to the director satisfactory evidence of possession of the minimum required unimpaired paid-in capital. Until this evidence is provided, the captive insurance company may not issue a policy, assume any liability, or otherwise provide coverage. The director summarily may revoke the conditional license without legal recourse by the company if satisfactory evidence of the required capital is not provided within a maximum period of time, not to exceed one year, to be established by the director at the time the conditional license is issued.

(C)   The director may prescribe additional capital or, net assets based upon the type, volume, and nature of insurance business transacted. Contributions in connection with these prescribed additional net assets or capital must be in the form of:

(1)   cash;

(2)   cash equivalent;

(3)   an irrevocable letter of credit issued by a bank chartered by this State or a member bank of the Federal Reserve System with a branch office in this State or as approved by the director.

(D)   Section 38-90-100(C) does not apply and loans to its parent company and affiliates are prohibited.

(E)(1)   A South Carolina coastal captive insurance company may not pay a dividend out of, or other distribution with respect to, capital or surplus, in excess of the limitations set forth in Section 38-21-250 through Section 38-21-270, without the prior approval of the director. Approval of an ongoing plan for the payment of dividends or other distributions must be conditioned upon the retention, at the time of each payment, of capital or surplus in excess of amounts specified by, or determined in accordance with formulas approved by, the director.

(2)   A captive insurance company incorporated as a nonprofit corporation may not make any distributions without the prior approval of the director.

(F)   An irrevocable letter of credit, which is issued by a financial institution other than a bank chartered by this State or a member bank of the Federal Reserve System, shall meet the same standards as an irrevocable letter of credit which has been issued by either entity.

Section 38-90-850.   (A)(1)   The director may not issue a license to a South Carolina coastal captive insurance company unless the company possesses and maintains free surplus of not less than one million dollars; however, in the case of a South Carolina coastal captive insurance company formed as a sponsored captive insurance company that does not assume any risk, where the risks insured by the protected cells are homogeneous, the director may reduce this amount to an amount not less than five hundred thousand dollars.

(2)(a)   Except for South Carolina coastal captive insurance company formed as a sponsored captive insurance company that does not assume any risk, the surplus must be in the form of cash, cash equivalent, or an irrevocable letter of credit issued by a bank chartered by this State or a member bank of the Federal Reserve System with a branch office in this State and approved by the director.

(b)   For a South Carolina coastal captive insurance company formed as a sponsored captive insurance company that does not assume any risk, the surplus also may be in the form of other high quality securities as approved by the director.

(B)   For purposes of subsection (A), the director may issue a license expressly conditioned upon the captive insurance company providing to the director satisfactory evidence of possession of the minimum required free surplus. Until this evidence is provided, the captive insurance company may not issue a policy, assume any liability, or otherwise provide coverage. The director summarily may revoke the conditional license without legal recourse by the company if satisfactory evidence of the required capital is not provided within a maximum period of time, not to exceed one year, to be established by the director at the time the conditional license is issued.

(C)   The director may prescribe additional surplus based upon the type, volume, and nature of insurance business transacted. This additional surplus must be in the form of:

(1)   cash;

(2)   cash equivalent;

(3)   an irrevocable letter of credit issued by a bank chartered by this State, or a member bank of the Federal Reserve System with a branch in this State or as approved by the director.

(D)   Section 38-90-100(C) does not apply and loans to its parent company and affiliates are prohibited.

(E)(1)   A captive insurance company may not pay a dividend out of, or other distribution with respect to, capital or surplus in excess of the limitations provided in Sections 38-21-250 through 38-21-270, without the prior approval of the director. Approval of an ongoing plan for the payment of dividends or other distribution must be conditioned upon the retention, at the time of each payment, of capital or surplus in excess of amounts specified by, or determined in accordance with formulas approved by, the director.

(2)   A captive insurance company incorporated as a nonprofit corporation may not make any distributions without the prior approval of the director.

(F)   An irrevocable letter of credit, which is issued by a financial institution other than a bank chartered by this State or a member bank of the Federal Reserve System, shall meet the same standards as an irrevocable letter of credit which has been issued by either entity.

Section 38-90-860.   (A)   The requirements of Section 38-90-60 apply to a South Carolina coastal captive insurance company.

(B)   The director has the discretion to restrict the form of a South Carolina coastal captive insurance company to one or more of the types of defined captives listed in Section 38-90-10(8), and has the discretion to accept or deny an application based on a finding that one or more of the incorporation or organization options available under Section 38-90-60 are not feasible for a South Carolina coastal captive insurance company.

Section 38-90-870.   The director, by rule, regulation, or order, may exempt a South Carolina coastal captive insurance company, on a case by case basis, from provisions of this chapter that are determined to be inappropriate given the nature of the risks to be insured and the intent of this article.

Section 38-90-875.   The confidentiality provisions of Sections 38-90-70(B) and 38-90-80 do not extend to final reports of its financial condition produced by the director in inspecting or examining a South Carolina coastal captive insurance company and do not extend to reports submitted by a South Carolina coastal captive insurance company. All work papers, recorded information, documents, and their copies produced by, obtained by, or disclosed to the director, his designee, or other persons made under this chapter must be given confidential treatment as provided in Sections 38-90-35, 38-90-70(B), and 38-90-80.

Section 38-90-880.   (A)   A South Carolina coastal captive insurance company shall include the following notice on each application form for insurance, as well as the declaration page of each policy, in no less than fourteen-point bold type:

This policy is issued by a South Carolina coastal captive insurance company, which is not subject to all of the insurance laws and regulations of the State of South Carolina. State insurance insolvency guaranty funds are not available for a South Carolina coastal captive insurance company.'

(B)   A South Carolina coastal captive insurance company shall include the following acknowledgment on each application form for insurance, as well as in each policy, in no less than fourteen-point bold type and directly above the applicant or insured's signature:

'I have read the Notice contained in this application (or policy) and understand that State of South Carolina insurance insolvency guaranty funds are not available for a South Carolina coastal captive insurance company.'

Section 38-90-890.   The director may not issue a license to a South Carolina coastal captive insurance company unless the director finds that the:

(1)   coastal captive insurance company is capitalized adequately or properly reinsured, or both, after giving due consideration to the business plan, feasibility study, and proformas, including the level of risk to be retained by the coastal captive insurance company;

(2)   proposed business plan of the coastal captive insurance company provides for a reasonable and expected successful operation and is not hazardous to any policyholder;

(3)   proposed business plan, including any contracts or agreements to which the coastal captive insurance company is a party, and the intended operation of the coastal captive insurance company comply with this article and with any other applicable provisions of this title; and

(4)   proposed business plan and intended operation of the coastal captive insurance company satisfy the purpose of this article." /

Renumber sections to conform.

Amend title to conform.

Senator THOMAS explained the committee amendment.

The committee amendment was adopted.

Senators McCONNELL, RANKIN, PINCKNEY, FORD, MATTHEWS, CLEARY, SCOTT, GROOMS, CAMPSEN and ELLIOTT proposed the following amendment (JUD3820.001), which was adopted:

Amend the bill, as and if amended, page 4, line 40, in Section 12-6-1620(A)(2), as contained in SECTION 1, by striking /All/ and inserting:

/   all   /

Amend the bill further, as and if amended, page 5, by striking lines 19 through 30, in Section 12-6-1620(B)(3), as contained in SECTION 2, and inserting therein:

/     (3)   The total amount that may be contributed to a Catastrophe Savings Account must not exceed:

(a)   in the case of an individual whose qualified deductible is less than or equal to one thousand dollars, two thousand dollars;

(b)   in the case of an individual whose qualified deductible is greater than one thousand dollars, the amount equal to the lesser of

(c)   in the case of a self-insured individual who chooses not to obtain insurance on his legal residence, two hundred fifty thousand dollars, but shall not exceed the value of the individual taxpayer's legal residence.   /

Amend the bill further, as and if amended, page 6, by striking lines 18 through 26, in Section 12-6-1630(E)(2) and (F), as contained in SECTION 2, and inserting therein:

/       (2)   If a taxpayer receives a nontaxable distribution under this subsection, the taxpayer must not make further contributions to any Catastrophe Savings Account.

(F)   If a taxpayer who owns a Catastrophe Savings Account dies, his account is included in the income of the person who receives the account, unless that person is the surviving spouse of the taxpayer. Upon the death of the surviving spouse, the account is included in the income of the person who receives the account. The additional tax in subsection (D) does not apply to distribution on death of the taxpayer or the surviving spouse."     /

Amend the bill further, as and if amended, page 6, by striking lines 36 through 43, in Section 12-6-3660(A) and (B), as contained in SECTION 3, and inserting therein the following:

/   rising floodwater, or other catastrophic windstorm event.

(B)   In order to qualify for the state income tax credit allowed pursuant to this section, costs must not include ordinary repair or replacement of existing items, and must be associated with those fortification measures defined in subsection (C), and must increase the residence's resistance to hurricane, rising floodwater, or catastrophic windstorm event damage, as defined by the director or his designee by regulation.   /

Amend the bill further, as and if amended, page 7, line 6, in Section 12-6-3660(D), as contained in SECTION 3, by striking /may/ and inserting:

/   must     /

Amend the bill further, as and if amended, page 7, by striking lines 19 through 21, in Section 12-6-3665(A), as contained in SECTION 3, and inserting therein:

/   calculated by multiplying by six percent the purchase price of tangible personal property for which the individual may claim the income tax credit in Section 12-6-3660. The maximum credit allowed     /

Amend the bill further, as and if amended, beginning on page 8, line 5, by striking SECTION 4.B. in its entirety and inserting therein:

/   B.   Chapter 3, Title 38 of the 1976 Code is amended by adding:

Section 38-3-410.   (A)   If the Governor declares a state of emergency pursuant to Section 1-3-420, the director may issue one or more emergency regulations pursuant to Section 1-23-130(A) applicable to all insurance companies, entities, and persons, as defined in Section 38-1-20, that are subject to Title 38.

(B)(1)   The provisions of Section 1-23-130(A), (B), and (D) are applicable to emergency regulations promulgated under this section.

(2)   The provisions of Section 1-23-130(C) are not applicable to emergency regulations promulgated under this section. An emergency regulation promulgated under this section becomes effective upon issuance and continues for one hundred twenty days unless terminated sooner by the director. The director may extend an emergency regulation for additional periods of one hundred twenty days, whether or not the General Assembly is in session, for as long as he determines that the conditions that gave rise to the emergency regulation still exist. Each extension of the emergency regulation must be published in the State Register as provided in Section 1-23-130(D). By concurrent resolution, the General Assembly may terminate an emergency regulation issued under this section.

(C)   The text of an emergency regulation promulgated under this section together with a statement explaining how the emergency regulation facilitates recovery from the emergency must be published in the State Register as provided in Section 1-23-130(D).

Section 38-3-420.   (A)   By an emergency regulation issued pursuant to Section 38-3-410, the director may adopt any procedure that facilitates recovery from the emergency and is fair under the circumstances if the:

(1)   procedure provides at least the procedural protection given by other statutes, the Constitution of this State, or the United States Constitution;

(2)   department takes only that action necessary to protect the public interest under the emergency procedure; and

(3)   department publishes in writing, at the time of or before its action, the specific facts and reasons for finding an immediate danger to the public health, safety, or welfare and its reasons for concluding that the procedure used is fair under the circumstances.

(B)   Subject to applicable constitutional and statutory provisions, an emergency regulation becomes effective immediately on filing. After notice of the emergency regulation is published in the State Register as provided in Section 1-23-130(D) and Section 38-3-410, then the department's findings of immediate danger, necessity, and procedural fairness are judicially reviewable under Section 38-3-210.

Section 38-3-430.   (A)   The department may promulgate by emergency regulation, pursuant to Section 38-3-410, standardized requirements that may be applied to insurers as a consequence of a hurricane or other natural disaster. The emergency regulations must address the following areas:

(1)   claims reporting requirements;

(2)   grace periods for payment of premiums and performance of other duties by insureds;

(3)   temporary postponement of cancellations and nonrenewals; and

(4)   any other rule the director considers necessary.

(B)   The emergency regulations adopted under this section shall require the department to issue an order within ten days after the occurrence of a hurricane or other natural disaster specifying, by line of insurance, which of the standardized requirements apply, the geographic areas in which they apply, the time at which applicability commences, and the time at which applicability terminates. An order issued pursuant to this subsection must comply with the requirements of Section 1-23-140.

Section 38-3-440.   The department may promulgate the regulations pursuant to the South Carolina Administrative Procedures Act, Chapter 23 of Title 1, necessary to implement the provisions of this article."/

Amend the bill further, as and if amended, page 9, line 40, in Section 38-7-200(A), as contained in SECTION 5, by striking:

/   by an expansion order     /

Amend the bill further, as and if amended, page 10, by striking lines 7 through 17, in Section 38-7-200, as contained in SECTION 5, and inserting therein:

/   (C)   A licensed insurer who claims the credit allowed by this section shall provide information required by the Department of Insurance to demonstrate that the taxpayer is eligible for the credit and that the amount paid for premiums for which the credit is claimed was not excluded from the licensed insurer's gross income for the taxable year.

(D)   The tax credit allowed under this section for a taxable year may be claimed only once for any one structure, regardless of the number of policies written on the structure.

(E)   The department shall take the action necessary to monitor and examine the use of the credits claims under this section.

(F)   This section applies to all new policies issued with an effective date after December 31, 2007."   /

Amend the bill further, as and if amended, page 11, by striking lines 1 through 13, in Section 38-3-110(5), as contained in SECTION 7 and inserting therein:

/   "(5)   The director must hold a public hearing at least annually at a location within the seacoast area, as defined in Section 38-75-310(7), to provide the public with information and an opportunity to discuss and offer input concerning the rates, territory, and other pertinent issues regarding the South Carolina Wind and Hail Underwriting Association. The director must provide notice of the public hearing in newspapers of general circulation within the seacoast area at least thirty days before the date of the public hearing. The director must submit a report to the President Pro Tempore of the Senate and the Speaker of the House of Representatives by no later than January thirty-first of each year regarding the status of the South Carolina Wind and Hail Underwriting Association, including any recommended modifications to statutory or regulatory law regarding the operation of the South Carolina Wind and Hail Underwriting Association and its territory."   /

Amend the bill further, as and if amended, page 11, lines 15 through 32, by striking SECTION 8 in its entirety and inserting therein:

/   SECTION   8.   Section 38-73-260 of the 1976 Code, as last amended by Act 332 of 2006, is further amended by adding at the end:

"(F)(1)   Nothing in this section prevents the director or his designee from considering the impact on individual territories or individual insureds when determining whether the rate is excessive, inadequate, or unfairly discriminatory. Rate level increases or decreases falling within the limitation specified in this subsection must comply with the requirements of this chapter prohibiting rate increases from being excessive, inadequate, or unfairly discriminatory.

(2)   With respect to fire, allied lines, and homeowner's rates, the director or his designee shall specifically review all rate filings made on or after June 1, 2007, to ensure that each insurer's rates for policies that exclude wind coverage reflect a discount commensurate with that insurer's previously filed surcharge for policies that include wind coverage.

(3)   This subsection does not apply to private passenger automobile insurance nor to insurance against liability arising out of the ownership, maintenance, or the use of:

(a)   an individual private passenger automobile as defined in Section 38-77-30(5.5)(a); or

(b)   property having wheels."

Amend the bill further, as and if amended, page 12, by striking lines 7 through 14, in Section 38-73-1095(C), as contained in SECTION 9, and inserting therein:

/   organization or selected by order of the director involving the risk or hazard. An order issued pursuant to this section must comply with the requirements of Section 1-23-140.

The department may by regulation define how the implementation of these factors qualify for credits or discounts. The regulation must specify what evidence or proof the policyholder or applicant shall present to obtain the credit or discount. This section applies to policies issued or renewed after December 31, 2007."   /

Amend the bill further, as and if amended, page 13, by striking lines 20 through 35 in Section 38-75-310(5), as contained in SECTION 10, and inserting therein:

/   (5)   'Coastal area' means:

(a)   all areas in Beaufort County and Colleton County which are east of the west bank of the intracoastal waterway;

(b)   the following areas in Georgetown County: all areas between the Harrell Siau Bridge and Murrells Inlet the Georgetown-Horry County border which are east of a line paralleling and lying one hundred fifty feet east of U.S. Highway No. 17 Business, all areas in Murrells Inlet which are east of U.S. Highway No. 17 Business, and Cedar Island, North Island, and South Island;

(c)   all areas in Horry County east of a line paralleling and lying one hundred fifty feet east of U.S. Highway No. 17 Business or By-Pass 17, whichever is farther to the west;

(d)   the following areas in Charleston County: Edisto Island, Edingsville Beach, Kiawah Island, Botany Bay Island, Folly Island, Seabrook Island, Morris Island, and all areas north of the City of Charleston which are east of the west bank of the intracoastal waterway and the following areas:

(i)     the portion of James Island which is east of the west bank of the James Island Creek;

(ii)   the portion of John's Island which is east of a line paralleling Exchange Road which becomes Plow Ground Road to Hoopstick Island Road to Church Creek; and

(iii)   the portion of Wadmalaw Island which is east of a line paralleling Roseville Road to west of Cherry Point Road to Maybank Highway to Brigger Hill Road.   /

Amend the bill further, as and if amended, page 14, by striking lines 36 through 38, in Section 38-75-340(A), as contained in SECTION 10, and inserting therein:

/     (1)   the number, qualifications, terms of office, and manner of election of the members of the board of directors and shall provide for, provided that four members of the board of directors must be consumers who are representative of business policyholders, residential single family dwelling policyholders, and apartment, condominium, or multiple-family dwelling policyholders, and who are selected from recommendations from the members of the legislative delegations from the seacoast area;   /

Amend the bill further, as and if amended, page 15, by striking lines 8 through 13, in Section 38-75-340(A), as contained in SECTION 10, and inserting therein the following:

/     (8)   reasonable underwriting standards, rating subdivisions, and rates including, but not limited to, developing multiple-tiered rates within the coastal area territory that reflect the relative risks of the properties located within a particular tier;

(9)   commissions to be paid to agents or brokers,;

(10)   procedures for an open, competitive process for the acceptance and cession of reinsurance, procedures provided that the association is not required to follow the provisions of the South Carolina Consolidated Procurement Code, and for determining the amounts of insurance to be provided to specific risks,;     /

Amend the bill further, as and if amended, pages 21-22, beginning on line 26 of page 21, by striking in its entirety Section 38-75-460, as contained SECTION 10, and inserting therein:

/   Section 38-75-460.   The director or his designee, by written order, temporarily may expand the area in which the association shall provide essential property insurance. The director or his designee shall find and declare the existence of an emergency because of the unavailability of coastal property insurance or other unavailability of coastal property insurance on a reasonable basis through normal channels. The order must include the surveys of the market conducted in order to make the determination. The director or his designee may expand the area in

(A)   In order to maintain stability in the property insurance market and to assure the continued, consistent availability of essential property insurance coverage in the coastal area, the Director of the Department of Insurance, who is selected as defined in Section 38-1-20(16), or his designee, by written order complying with the requirements of Section 1-23-140, may expand the coastal area in which the association shall provide essential property insurance for periods up to twenty-four months. The order is subject to renewal by the director but no renewal shall exceed twenty-four months. In determining whether expansion of the coastal area is warranted, the director or his designee shall consider:

(1)   changes in the number of insurers writing essential property insurance in the seacoast area and the capacity of those insurers including, but not limited to, the number of policies those insurers have cancelled or nonrenewed, as provided in Sections 38-75-730, 38-75-740, and 38-75-1160, during the previous twelve months;

(2)   changes in the extent to which (a) nonadmitted or surplus lines insurers, or (b) South Carolina Coastal Captive Insurance Companies, pursuant to Article 5 of Chapter 90 of Title 38, are providing essential property insurance in the seacoast area;

(3)   changes in reinsurance activity impacting insurers writing essential property insurance in the seacoast area;

(4)   changes in the demand for property insurance in the seacoast area; and

(5)   any other information considered relevant to effectuate the purpose of this chapter including, but not limited to, the availability of essential property insurance coverage for insurable property that is within the coastal area and is located in a Coastal Barrier Resource Act (CBRA) zone.

(B)   The director or his designee shall find and declare the existence of conditions that threaten to destabilize the property insurance market

(C)(1)   The director or his designee may expand the coastal area in which the association shall provide essential property insurance. The expansion may encompass a portion of the seacoast area or the entire seacoast area, but may not extend further than the seacoast area. The area must not be expanded more than reasonably necessary to ensure a stable property insurance market.

(2)   In expanding the coastal area, the director or his designee may provide for the coastal area territory to be divided into multiple tiers to allow the association to develop multiple-tiered rates that reflect the relative risks of the properties located within a particular tier.

(3)   An expansion of the coastal area is subject to the plan of operation as amended and approved by the director or his designee.

(4)   The director or his designee shall report any expansion of the coastal area to the General Assembly within thirty days of the order of expansion or upon commencement of the next term of the General Assembly, if expansion occurs when the General Assembly is not in session. The General Assembly may approve, revise, or vacate any expansion order by passage of a joint resolution.

(D)   On the effective date of this section, the General Assembly ratifies the director's May 23, 2007 coastal area expansion order and the multiple-tier structure described in the order for the time period stated in the order and authorized by this section."   /

Amend the bill further, as and if amended, page 26, by striking lines 26 through 43, and inserting therein:

/     (2)   The department shall define by regulation the details of the mitigation measures necessary to qualify for the grants or public assistance described in this section.

(3)   Multimedia public education, awareness, and advertising efforts designed to specifically address mitigation techniques must be employed, as well as a component to support ongoing consumer resources and referral services.

(4)   The department shall use its best efforts to obtain grants or funds from the federal government to supplement the financial resources of the program. In addition to state appropriations, if any, this program must be implemented by the department through the use of the premium taxes due to this State by the South Carolina Wind and

(5)   The director or his designee may promulgate regulations necessary to implement the provisions of this article.

Section 38-75-490.   (A)   The Department of Insurance, in consultation with the Department of Consumer Affairs, the Department of Commerce, the Federal Alliance for Safe Homes, the Manufactured Housing Institute of South Carolina, South Carolina Building Codes Council, the Home Builders Association of South Carolina, the Civil Engineering Department of Clemson University, and the Institute for Business and Homes Safety shall study and prepare a proposal to develop an objective rating system that will allow homeowners to evaluate the relative ability of South Carolina's coastal properties to withstand the wind load from a hurricane.

(B)   The rating system must be designed in a manner the property owner may easily understand, based on proven readily verifiable mitigation techniques and devices, and able to be implemented through a visual inspection program. The rating system must be designed to facilitate a home inspection process to determine a home's existing as well as projected wind resistance capabilities.

(C)   The rating system must contemplate the use of certified wind resistance and loss mitigation inspectors.

(D)   The department must provide a report to the Governor, the President Pro Tempore of the Senate, and the Speaker of the House of Representatives by March 5, 2008, detailing the nature and construction of the rating scale, its projected effectiveness based on implementation in a pilot program, an operational plan for statewide implementation of the rating scale, and any recommendations for additional legislation."

Amend the bill further, as and if amended, on page 27, lines 30 through 43, and on page 28, lines 1 through 26, by striking SECTIONS 14 and 15 and inserting therein the following:

/   SECTION   14.   Sections 38-75-730 and 38-75-740 of the 1976 Code are amended to read:

"Section 38-75-730.   (a)   No insurance policy or renewal thereof may be cancelled by the insurer prior to the expiration of the term stated in the policy, except for one of the following reasons:

(1)   nonpayment of premium;

(2)   material misrepresentation of fact which, if known to the company, would have caused the company not to issue the policy;

(3)   substantial change in the risk assumed, except to the extent that the insurer should reasonably have foreseen the change or contemplated the risk in writing the policy;

(4)   substantial breaches of contractual duties, conditions, or warranties;

(5)   loss of the insurer's reinsurance covering all or a significant portion of the particular policy insured, or where continuation of the policy would imperil the insurer's solvency or place that insurer in violation of the insurance laws of this State. Prior to cancellation for reasons permitted in this item (5), the insurer shall notify the director or his designee, in writing, at least sixty days prior to such cancellation and the director or his designee shall, within thirty days of such notification, approve or disapprove such action.

(b)   Cancellation under item (1) of subsection (a) of this section is not effective unless written notice of cancellation has been delivered or mailed to the insured and the agent of record, if any, not less than ten days prior to the proposed effective date of cancellation. Cancellation under items (2) through (5) of subsection (a) of this section is not effective unless written notice of cancellation has been delivered or mailed to the insured and the agent of record, if any, not less than thirty days prior to the proposed effective date of cancellation. The notice must be given or mailed to the insured and the agent at their addresses shown in the policy or, if not reflected therein, at their last known addresses. Any notice of cancellation shall state the precise reason for cancellation. Proof of mailing is sufficient proof of notice.

(c)   Subsections (a) and (b) of this section do not apply to any insurance policy which has been in effect for less than one hundred and twenty days and is not a renewal of a previously existing policy. The policy may be cancelled for any reason by furnishing to the insured at least thirty days' written notice of cancellation, except where the reason for cancellation is nonpayment of premium, in which case not less than ten days' written notice must be furnished.

(d)   For purposes of item (3) of subsection (a), substantial change in the risk assumed, if based upon changes in climactic conditions, must be based on statistical data relative to South Carolina that has been approved by the director or his designee as a basis for substantial change in the risk assumed.

Section 38-75-740.   (a)   No insurance policy may be nonrenewed by an insurer except in accordance with the provisions of this section or Section 38-75-730, and any nonrenewal attempted which is not in compliance with this section or Section 38-75-730 is ineffective.

(b)   A policy written for a term of one year or less may be nonrenewed by the insurer at its expiration date by giving or mailing written notice of nonrenewal to the insured and the agent of record, if any, not less than thirty sixty days prior to the expiration date of the policy for any nonrenewal that would be effective between November first and May thirty-first and not less than ninety days for any nonrenewal that would be effective between June first and October thirty first.

(c)   Subject to subsection (c) of Section 38-75-760, a policy written for a term of more than one year or for an indefinite term may be nonrenewed by the insurer at its anniversary date by giving or mailing written notice of nonrenewal to the insured and the agent of record, if any, not less than thirty sixty days prior to the anniversary date of the policy for any nonrenewal that is effective between November first and May thirty-first and not less than ninety days prior to the anniversary date of the policy for any nonrenewal that is effective between June first and October thirty first.

(d)   The notice required by this section must be given or mailed to the insured and the agent at their addresses shown in the policy or, if not reflected therein, at their last known addresses. Proof of mailing is sufficient proof of notice.

(e)   Any notice of nonrenewal shall state the precise reason for nonrenewal."

SECTION   15.   Section 38-75-1160 of the 1976 Code is amended to read:

"Section 38-75-1160.   (A)(1)   A Except for a cancellation pursuant to Section 38-75-730, a cancellation or refusal to renew by an insurer of a policy of insurance covered in this article is not effective unless the insurer delivers or mails to the named insured at the address shown in the policy a written notice of the cancellation or refusal to renew. This notice must:

(a)   be approved as to form by the director or his designee before use;

(b)   state the date not less than thirty sixty days for any cancellation or refusal to renew that is effective between November first and May thirty-first and not less than ninety days for any cancellation or refusal to renew that is effective between June first and October thirty-first after the date of the mailing or delivering on which the cancellation or refusal to renew becomes effective;

(c)   state the specific reason of the insurer for cancellation or refusal to renew and provide for the notification required by Section 38-75-1180(B);

(d)   inform the insured of his right to request in writing within fifteen thirty days of the receipt of notice that the director review the action of the insurer. The notice of cancellation or refusal to renew must contain the following statement in bold print to inform the insured of this right:

'IMPORTANT NOTICE: Within fifteen thirty days of receiving this notice, you or your attorney may request in writing that the director review this action to determine whether the insurer has complied with South Carolina laws in canceling or nonrenewing your policy. If this insurer has failed to comply with the cancellation or nonrenewal laws, the director may require that your policy be reinstated. However, the director is prohibited from making underwriting judgments. If this insurer has complied with the cancellation or nonrenewal laws, the director does not have the authority to overturn this action.'

(e)   inform the insured of the possible availability of other insurance which may be obtained through his agent, or through another insurer; and

(f)   state that the Department of Insurance has available a buyer's guide regarding property insurance shopping and availability, and provide applicable mailing addresses and telephone numbers, including a toll-free number, if available, for contacting the Department of Insurance.

(2)   Nothing in this subsection prohibits any insurer or agent from including in the notice of cancellation or refusal to renew, any additional disclosure statements required by state or federal laws, or any additional information relating to the availability of other insurance.

(B)   Subsection (A) does not apply if the:

(1)   insurer has manifested to the insured its willingness to renew by actually issuing or offering to the insured to issue a renewal policy, certificate, or other evidence of renewal, or has manifested this intention to the insured by another means;

(2)   named insured has demonstrated by some overt action to the insurer or its agent that he expressly intends that the policy be canceled or that it not be renewed; or

(3)   the notice of cancellation or refusal to renew by an insurer regarding private passenger automobile insurance or to insurance against liability arising out of ownership, maintenance, or use of:

(a)   an individual private passenger automobile as defined in Section 38-77-30(5.5)(a); or

(b)   property having wheels."   /

Renumber sections to conform.

Amend title to conform.

Senator McCONNELL explained the amendment.

Senators RANKIN and ELLIOTT spoke on the amendment.

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

On motion of Senator THOMAS, with unanimous consent, H. 3820 was ordered to receive a third reading on Friday, June 1, 2007.

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.

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

The Judiciary Committee proposed the following amendment (JUD0110.001), which was adopted:

Amend the bill, as and if amended, page 2, by striking lines 23-31 in their entirety and inserting:

/   Section 17-22-340.   In exchange for the expungement service, the applicant is responsible for payment to the solicitor's office of an administrative fee in the amount of two hundred fifty dollars per individual order, which must be retained by that office and used to

Amend the bill further, as and if amended, page 3, by striking lines 32-36 in their entirety and inserting:

/   (D)   SLED shall verify and document that the criminal charges in all cases, except in cases when charges are sought to be expunged pursuant to Section 17-1-40, are appropriate for expungement before the solicitor or his designee, and then a circuit court judge, or a family court judge in the case of a juvenile, signs the application for expungement. If the expungement is sought pursuant to Section 34-11-90(e), Section 22-5-910, Section 22-5-920, or Section 56-5-750(f), the conviction for any traffic related offense which is punishable only by a fine or loss of points will not be considered as a bar to expungement.   /

Amend the bill further, as and if amended, page 4, by striking lines 17-40 in their entirety and inserting:

/   (F)   Each expungement order may contain only one charge sought to be expunged, except in those circumstances when expungement is sought for multiple charges occurring out of a single incident and subject to expungement pursuant to Section 17-1-40 or 17-22-150(a). Only in those circumstances may more than one charge be included on a single application for expungement and, when applicable, only one two-hundred-fifty-dollar fee, one twenty-five-dollar SLED verification fee, and one thirty-five dollar clerk of court filing fee may be charged.

(G)   A filing fee may not be charged by the clerk's office to an applicant seeking the expungement of a criminal record pursuant to Section 17-1-40, when the charge was discharged, dismissed, nol prossed, or the applicant was acquitted.

(H)   Nothing in this article precludes an applicant from retaining counsel to apply to the solicitor's office on his behalf or precludes retained counsel from initiating an action in circuit court seeking a judicial determination of eligibility when the solicitor, in his discretion, does not consent to the expungement. In either event, retained counsel is responsible to the solicitor or his designee, when applicable, for the two-hundred-fifty-dollar fee, the twenty-five-dollar SLED verification

Amend the bill further, as and if amended, page 5, after line 6, by adding an appropriately numbered SECTION to read:

/   SECTION   ___.   Section 17-1-40 of the 1976 Code is amended to read:

"Section 17-1-40.   Any person who after being charged with a criminal offense and such charge is discharged or proceedings against such person dismissed or is found to be innocent of such charge, the arrest and booking record, files, mug shots, and fingerprints of such person shall be destroyed and no evidence of such record pertaining to such charge shall be retained by any municipal, county, or State state law enforcement agency. Any person who intentionally retains the arrest and booking record, files, mugshots, fingerprints, or any evidence of such record pertaining to a charge discharged or dismissed pursuant to this section shall be in contempt of court."     /

Renumber sections to conform.

Amend title to conform.

Senator RITCHIE explained the committee amendment.

The committee amendment was adopted.

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

On motion of Senator RITCHIE, with unanimous consent, S. 110 was ordered to receive a third reading on Friday, June 1, 2007.

On motion of Senator FORD, with unanimous consent, the name of Senator FORD was added as a co-sponsor of S. 110.

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

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

The Committee on Finance proposed the following amendment (3826R001.WHO), which was adopted:

Amend the bill, as and if amended, SECTION 1, page 1, by striking line 31 and inserting:

/   may elect to become or not to become members of the South Carolina       /

Renumber sections to conform.

Amend title to conform.

The committee amendment was adopted.

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

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.

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

The Judiciary Committee proposed the following amendment (JUD3817.001), which was adopted:

Amend the bill, as and if amended, pages 1-3, by striking SECTION 1 in its entirety and inserting:

/   SECTION   1.   Section 16-17-680 of the 1976 Code is amended to read:

"Section 16-17-680.   (A)   It is unlawful to purchase copper wire, copper pipe, copper bars, or copper sheeting, aluminum, a product that is a mixture of aluminum and copper, or stainless steel beer kegs or containers in excess of ten pounds any amount from a person who is not a holder of a retail license or an authorized wholesaler or unless the purchaser obtains and can verify the name and address of the seller. A purchaser of copper wire, copper pipe, copper bars, or copper sheeting, aluminum, a product that is a mixture of aluminum and copper, or stainless steel beer kegs or containers shall maintain a record containing the date of purchase, name and address of seller, weight or length, and size or other description of copper wire, copper pipe, copper bars, or copper sheeting, aluminum, a product that is a mixture of aluminum and copper, or stainless steel beer kegs or containers purchased and amount paid for it. Records must be maintained and kept open for inspection by law enforcement officials or local and state governmental agencies during regular business hours. The records must be maintained for twelve months from the date of purchase. The provisions of this subsection do not apply to the purchase or sale of aluminum cans.

(B)   It is unlawful for a person to transport or have in his possession on highways of this State, in a vehicle other than a vehicle used in the ordinary course of business for the purpose of transporting copper wire, copper pipe, copper bars, or copper sheeting, aluminum, a product that is a mixture of aluminum and copper, or stainless steel beer kegs or containers an amount of copper wire, copper pipe, copper bars, or copper sheeting, aluminum, a product that is a mixture of aluminum and copper, or stainless steel beer kegs or containers of an aggregate weight of more than twenty-five pounds in any amount, unless the person has in his possession:

(1)   a bill of sale signed by:

(a)   a holder of a retail license for a business engaged in the sale of copper wire, copper pipe, copper bars, or copper sheeting, aluminum, a product that is a mixture of aluminum and copper, or stainless steel beer kegs or containers;

(b)   an authorized wholesaler engaged in the sale of copper wire, copper pipe, copper bars, or copper sheeting, aluminum, a product that is a mixture of aluminum and copper, or stainless steel beer kegs or containers; or

(c)   a registered dealer in scrap metals; or

(2)   a certificate of origin signed by the sheriff, or his designated representative, of the county in which the purchase was made.

(C)   The bill of sale or certificate of origin pursuant to subsection (B) clearly must identify the material to which it applies and show the name and address of the seller, license plate of the vehicle in which the material is delivered to the purchaser, identified by license number, year, and state of issue, the name and address of the purchaser, the date of sale, and the type and amount of copper wire, copper pipe, copper bars, or copper sheeting, aluminum, a product that is a mixture of aluminum and copper, or stainless steel beer kegs or containers purchased.

(C)(D)   A person who violates the provisions of this section is guilty of a:

(1)   misdemeanor and, upon conviction, must be fined not more than two hundred dollars or imprisoned not more than thirty days for a first offense. This offense is triable in magistrate's magistrates court;

(2)   misdemeanor and, upon conviction, must be fined not more than five hundred dollars or imprisoned not more than one year, or both, for a second offense;

(3)   misdemeanor and, upon conviction, must be fined not more than one thousand dollars or imprisoned not more than three years, or both, for a third or subsequent offense. For an offense to be considered a third or subsequent offense, only those offenses which occurred within a period of ten years, including and immediately preceding the date of the last offense shall constitute a prior offense within the meaning of this section.

(D)(E)   For purposes of this section, the only identification acceptable is a:

(1)   a valid South Carolina driver's license;

(2)   a South Carolina identification card issued by the Department of Motor Vehicles;

(3)   a valid driver's license from another state that contains the licensee's picture on the face of the license; or

(4)   a valid military identification card."     /

Renumber sections to conform.

Amend title to conform.

Senator RITCHIE explained the committee amendment.

The committee amendment was adopted.

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

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.

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

Senators MOORE, FORD, RANKIN and SCOTT proposed the following amendment (JUD3569.004), which was adopted:

Amend the committee report, as and if amended, pages [3569-4], lines 39-43, and on page [3569- 5], by striking lines 1-18 and inserting:

/     (7)   make recommendations to the General Assembly regarding the best method of leasing the excess capacity of EBS licensees in this State. In making its recommendations, the committee must consider whether broadband service expansion should be accomplished in a manner that allows South Carolina based broadband providers a reasonable opportunity to contribute toward the realization of the goals of this section. Excess capacity must not be leased prior to approval of the recommendations of the study committee by the General Assembly. Upon approval of the recommendations by the General Assembly, the EBS licensees are authorized to lease excess capacity in cooperation with the Division of the CIO. The awarding of contracts for the lease of excess capacity must be done by competitive solicitation in accordance with the South Carolina Consolidated Procurement Code. In entering into contracts to allow third parties to lease the EBS licensee's excess capacity, the EBS licensee and the Division of the CIO must not impose any pricing requirements on those third parties.

Renumber sections to conform.

Amend title to conform.

Senator MOORE explained the perfecting amendment.

The perfecting amendment was adopted.

Senator MOORE proposed the following amendment (JUD3569.005), which was adopted:

Amend the committee report, as and if amended, page [3569-3], by striking lines 26-29 and inserting:

/   (8)   the President of Trident Technical College or his designee;/     Renumber sections to conform.

Amend title to conform.

Senator MOORE explained the perfecting amendment.

The perfecting amendment was adopted.

The Judiciary Committee proposed the following amendment (JUD3569.003), which was adopted:

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

TO CREATE THE SOUTH CAROLINA TECHNOLOGY AND COMMUNICATIONS STUDY COMMITTEE FOR THE PURPOSE OF EVALUATING THE STATE'S BROADBAND COMMUNICATIONS INFRASTRUCTURE AND ASSESSING THE AVAILABILITY OF AND NEED FOR BROADBAND SERVICES IN UNSERVED AND UNDERSERVED AREAS WITHIN THE STATE AND TO PROVIDE FOR ITS MEMBERSHIP, POWERS, AND DUTIES.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION   1.   (A)   The General Assembly finds that:

(1)   access to computers and the Internet, along with the ability to effectively use these technologies, is becoming increasingly important for full participation in America's economic, political, and social life;

(2)   affordable, high-speed Internet access is critical to attracting, growing, and retaining businesses in the highly competitive global marketplace;

(3)   in the digital age, universal connectivity at an affordable price is a necessity for business transactions, education and training, health care, and government services;

(4)   broadband service to access information and resources is pivotal to eliminating the digital divide and promoting the economic and personal self-sufficiency of low-income individuals;

(5)   broadband service is proving valuable to the economic transitioning and growth of distressed urban and rural communities;

(6)   broadband service currently is being provided using a number of different technologies, each of which has unique characteristics and advantages;

(7)   communications service providers in South Carolina, including those in rural areas of the State, have invested and continue to invest significant amounts of capital to deploy and maintain networks to make broadband services available to the vast majority of South Carolina citizens;

(8)   access to computers and broadband access at home and at school enhances the learning environment for school age children; and

(9)   changes to the 2495-2690 MHz band of the spectrum licensed by the Federal Communications Commission for Educational Broadband Service and Broadband Radio Service will enable EBS and BRS providers to use that spectrum in a more technologically and economically efficient manner, encourage licensees to digitize their frequencies thereby creating excess capacity on their spectrum, and allow licensees to lease up to ninety-five percent of their capacity to commercial entities.

(B)   It is the goal of the General Assembly to ensure that:

(1)   all South Carolinians have affordable access to broadband products and services as quickly as possible; and

(2)   the policies of this State promote technological neutrality, competition, investment, and innovation so that broadband service providers have sufficient incentive to develop and offer these products and services.

(C)   There is created a committee to be known as the "South Carolina Broadband Technology and Communications Study Committee", composed of the following seventeen members, of whom fourteen are voting members and three are nonvoting members:

(1)   two members of the Senate appointed by the President Pro Tempore of the Senate;

(2)   two members of the House of Representatives appointed by the Speaker;

(3)   two members of the private sector appointed by the President Pro Tempore of the Senate, each having a background of substantial duration and expertise in telecommunications or broadband issues;

(4)   two members of the private sector appointed by the Speaker of the House of Representatives, each having a background of substantial duration and expertise in telecommunications or broadband issues;

(5)   one member from the private sector who has a background of substantial duration and expertise in telecommunications or broadband issues appointed by the Governor;

(6)   one member to represent the Municipal Association of South Carolina appointed by the Governor;

(7)   one member to represent the South Carolina Association of Counties appointed by the Governor;

(8)   one member to represent EBS licensees Greenville Technical College and Trident Technical College appointed by the Governor upon the recommendation by the State Board for Technical and Comprehensive Education;

(9)   the Secretary of Commerce or his designee;

(10)   the President of the South Carolina Educational Television or his designee;

(11)   the State Chief Information Officer (CIO), or his designee, who shall serve ex officio in a nonvoting and advisory capacity;

(12)   the Executive Director of the Office of Regulatory Staff, or his designee, who shall serve ex officio in a nonvoting and advisory capacity; and

(13)   the Director of the State Library, or his designee, who shall serve ex officio in a nonvoting and advisory capacity.

(D)   The senior member from the Senate shall serve as chairman of the committee and the senior member from the House of Representatives shall serve as vice-chairman of the committee.

(E)   Committee members serve at the pleasure of the appointing authority. Members who serve by virtue of an office serve on the

(F)   Committee members serve without compensation, except citizen members are allowed the per diem and mileage as provided by law for members of a board, committee, or commission while on official business of the committee.

(G)   The committee has no authority over the portion of the spectrum allocated to public safety services or the broadband assets of the University of South Carolina-Columbia, Clemson University, and the Medical University of South Carolina.

(H)   The committee has the following powers and duties:

(1)   evaluate how to best foster a partnership between the private sector and public sector to accomplish the goals of this section;

(2)   engage consultants and counsel with expertise in issues relating to the operation of large broadband networks to advise and assist the committee in the evaluation of information and data;

(3)   evaluate the state's broadband communications infrastructure to determine whether and where broadband services are available, by whom they are provided, and by what manner of technology;

(4)   assess the need for broadband services in unserved and underserved areas within the State;

(5)   maintain an inventory of locations within the State at which broadband services are not available or are underutilized;

(6)   identify the types and locations of infrastructure and services required to satisfy the need for broadband services in unserved and underserved areas within the State;

(7)   make recommendations to the General Assembly regarding the best method of leasing the excess capacity of EBS licensees in this State. In making its recommendations, the committee must consider whether broadband service expansion should be accomplished in a manner that allows South Carolina based broadband providers a reasonable opportunity to contribute toward the realization of the goals of this section. Upon approval of the recommendations by the General

(8)   recommend to the General Assembly necessary legislation, rules, programs, and policies for the State, a state agency, or a political subdivision of the State to advance the goal of providing all South Carolinians with affordable access to broadband products and services; provided that any policies recommended by the committee should promote technological neutrality, competition, investment, and innovation to ensure that broadband service providers have sufficient incentive to develop and offer these products and services.

(I)   In performing its powers and duties, the committee must act in the public interest. For purposes of this section, "public interest" includes, but is not limited to, a balancing of the following:

(1)   concerns of the using and consuming public with respect to broadband services, regardless of the class of customer;

(2)   economic development and job attraction and retention in South Carolina;

(3)   viability of existing broadband networks and recognition of the investments made therein; and

(4)   encouragement of continued private investment in and maintenance of broadband facilities so as to provide reliable and high quality broadband services.

(J)   The committee must use clerical and professional employees of the Senate and the House of Representatives for its staff, as approved and designated by the President Pro Tempore of the Senate and the Speaker of the House, respectively. Upon request by the committee, the Division of the CIO and ETV must make available to the committee technical and professional staff. The costs and expenses of the committee must be paid from the approved accounts of the Senate and

(K)   The committee must submit a report containing its findings and recommendations to the Governor, the President Pro Tempore of the Senate, and the Speaker of the House of Representatives no later than December 31, 2007.

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

Renumber sections to conform.

Amend title to conform.

Senator MOORE explained the committee amendment.

The committee amendment was adopted.

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

On motion of Senator RITCHIE, with unanimous consent, H. 3569 was ordered to receive a third reading on Friday, June 1, 2007.

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.

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

The Committee on Finance proposed the following amendment (3568R002.WGR), which was adopted:

Amend the bill, as and if amended, SECTION 1, page 2, by striking line 3 and inserting:

/   farm tours, horseback riding, horseback sporting events and training for horseback sporting events, cross-country trails, on-farm food     /

Renumber sections to conform.

Amend title to conform.

The committee amendment was adopted.

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

On motion of Senator O'DELL, with unanimous consent, H. 3568 was ordered to receive a third reading on Friday, June 1, 2007.

H. 3699 (Word version) -- Reps. Rice, Govan, Huggins, Kirsh, Young, Viers and Thompson: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 2-1-240 SO AS TO ESTABLISH A MORATORIUM ON THE PLACEMENT OF NEW MONUMENTS ON THE STATE HOUSE GROUNDS AND IN THE STATE HOUSE, EXCEPT FOR THE SENATE CHAMBER AND THE HOUSE OF REPRESENTATIVES CHAMBER; TO PROVIDE THAT TWO-THIRDS VOTE OF THE STATE HOUSE COMMITTEE IS REQUIRED TO LIFT THE MORATORIUM; TO PROVIDE THAT IF THE MORATORIUM IS LIFTED, A NEW MONUMENT MAY BE PLACED PURSUANT TO THIS ACT IF THE MONUMENT MEETS CERTAIN REQUIREMENTS OF HISTORICAL SIGNIFICANCE OR MARKS A MILESTONE IN STATE HISTORY; AND TO PROVIDE THAT IN ORDER TO PLACE A NEW MONUMENT, A MAJORITY OF THE STATE HOUSE COMMITTEE MUST AGREE TO REVIEW PROPOSALS, A PROPOSAL MUST BE APPROVED BY TWO-THIRDS OF THE STATE HOUSE COMMITTEE, AND THE GENERAL ASSEMBLY MUST ADOPT THE PROPOSAL BY CONCURRENT RESOLUTION.

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

Senator McCONNELL proposed the following amendment (3699R001.GFM), which was adopted:

Amend the bill, as and if amended, on page 2, by striking lines 4 - 6 and inserting:

/   Representatives are exempt from this moratorium.   /

Renumber sections to conform.

Amend title to conform.

Senator McCONNELL explained the amendment.

The amendment was adopted.

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

On motion of Senator COURSON, with unanimous consent, H. 3699 was ordered to receive a third reading on Friday, June 1, 2007.

S. 585 (Word version) -- Senator Ryberg: A JOINT RESOLUTION TO DIRECT THE DEPARTMENT OF COMMERCE, DIVISION OF PUBLIC RAILWAYS TO IMPLEMENT AND OVERSEE A STATEWIDE RAIL PLAN, ON OR BEFORE MARCH 31, 2008, IN ACCORDANCE WITH EXISTING FEDERAL STATUTES, RULES, AND GUIDELINES.

The Senate proceeded to a consideration of the Joint Resolution, the question being the adoption of the previously proposed amendment by Senator CLEARY and printed in the journal of March 27, 2007.

Senator CLEARY asked unanimous consent to withdraw his previously proposed amendment.

There was no objection.

The previously proposed amendment by Senator CLEARY was withdrawn.

Senator CLEARY proposed the following amendment (585R002.REC), which was adopted:

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

/     SECTION   1.   (A)   The General Assembly finds that South Carolina must create a new statewide rail plan that accommodates all future commercial and passenger demands and that addresses the state's economic development needs.

(B)   The General Assembly finds that to receive federal funds, the new statewide rail plan must comply with any and all federal statutes, rules, and guidelines.

SECTION   2.   (A)   The Division of Public Railways is directed to create a statewide rail plan on or before March 31, 2009, in compliance with applicable federal laws, rules, and regulations.

(B)   Throughout the planning of the statewide rail plan, the division shall consult with and seek input from: the Department of Transportation, the State Ports Authority, the Aeronautics Division of the Department of Commerce, the Department of Parks, Recreation and Tourism, the South Carolina Public Service Commission, the Office of Regulatory Staff, and the Department of Health and Environmental Control.

(C)   The division shall further seek the advice and input of the Councils of Governments, CSX, Norfolk Southern, Amtrak, short-line railroads, and any other associations that may be affected by the development of the statewide rail plan.

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

Renumber sections to conform.

Amend title to conform.

Senator CLEARY explained the amendment.

The amendment was adopted.

The Resolution was read the second time, passed and ordered to a third reading.

On motion of Senator CLEARY, with unanimous consent, S. 585 was ordered to receive a third reading on Friday, June 1, 2007.

On motion of Senator CLEARY, with unanimous consent, the name of Senator CLEARY was added as a co-sponsor of S. 585.

H. 3782 (Word version) -- Reps. Rice, Hiott and Owens: A BILL TO AMEND ACT 260 OF 1981, AS AMENDED, RELATING TO THE PICKENS COUNTY SCHOOL BOARD OF TRUSTEES, SO AS TO REDUCE FROM THREE TO ONE THE NUMBER OF AT-LARGE MEMBERS OF THE BOARD, TO PROVIDE THAT THE AT-LARGE MEMBER OF THE BOARD SHALL SERVE AS ITS CHAIRMAN, AND TO MAKE CONFORMING CHANGES NECESSARY TO IMPLEMENT THE ABOVE PROVISIONS INCLUDING PROVIDING FOR THE ELECTION OF THE AT-LARGE MEMBER TO SERVE AS CHAIRMAN.

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

There was no objection.

Senator ALEXANDER proposed the following Amendment No. 1 (3782R001.LAM), which was tabled:

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

/     SECTION   1.   A.   Section 1 of Act 260 of 1981, as last amended by Act 182 of 1995, is further amended to read:

"Section 1.   Notwithstanding any other another provision of law, the Public Educational System of Pickens County shall be is directed and managed by the Board of Trustees of the School District of Pickens County. The board shall must be comprised of nine six members, six all of whom shall must be qualified electors from each of the districts for which members of the county governing body of Pickens County are elected and three shall be elected from the county at large. The . A current at-large members shall be elected from the county at large for terms of four years each, and until their successors are elected or appointed and qualify, provided that beginning with the 1998 election, the three at-large seats shall be numbered consecutively as Seats 7, 8, and 9 respectively, and candidates for these offices shall file for and be elected from the county at large from specific at-large seats. In addition, in order to stagger the terms of the at-large members, of the three at-large members elected in 1998, Seats 7 and 8 shall serve terms of four years each and Seat 9 shall serve a term of two years. Thereafter, all at-large members shall be elected for terms of four years each member holding Seat 7, 8, or 9 shall continue to serve until his term is ended or he vacates the at-large seat for whatever reason,

All members of the board of trustees shall must be elected in a nonpartisan election at the time of the general election in the year in which their terms expire.

Upon the termination of the term of each single-member district trustee, his successor shall must be a qualified elector of the same district and shall must be elected in a nonpartisan election to be held at the same time as the general election preceding the expiration date by the qualified electors of the district for a term of four years and until his successor is elected and qualifies. Vacancies on the board shall be filled for the remainder of the unexpired term by appointment by a majority of the members of the board of trustees. the If a single-member district seat is vacated before the end of its term, the seat must be filled for the remainder of the term by way of a special election conducted in the same manner. The board of trustees shall elect the a chairman and such other officers as it considers necessary."

B.   (A)   This section is subject to approval by referendum. The county election commission shall conduct a referendum on the question of amending the Board of Trustees of the School District of Pickens County. A referendum for this purpose must be held at the time of the next general election. Two weeks before the referendum, the election commission shall publish in a newspaper of general circulation the question that is to appear on the ballot. This notice is in lieu of any other notice otherwise required by law.

(B)   The referendum question to be on the ballot must read substantially as follows:

'Must the Board of Trustees of the School District of Pickens County be decreased from nine to six members by dissolving three members of the Board that are elected from the County at-large, upon the end of their term or upon their vacation of the seat, and, must a single-member seat that is vacated before the end of its term be filled for the remainder of the term by way of a special election?'

(C)   All qualified electors desiring to vote in favor of amending the Board of Trustees of the School District of Pickens County shall vote 'Yes' and all qualified electors opposed to amending the Board of Trustees of the School District of Pickens County shall vote 'No'. If a majority of the votes cast are in favor of amending the Board, this section takes effect as provided in this act. The election commission shall conduct the referendum under the election laws of this State, mutatis mutandis, and shall certify the results no later than December thirty-first to the county governing body.

(D)   Upon receipt of the returns of the referendum, the county council, by resolution, shall declare the results thereof. The results of the referendum may not be questioned except by a suit or proceeding instituted within thirty days from the date the resolution is adopted. /

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

/     SECTION   4.   This act takes effect upon approval by the Governor and any member elected to Seat 7, 8, or 9 after the effective date of this act, shall serve a term of two years.   /

Renumber sections to conform.

Amend title to conform.

Senator ALEXANDER explained the amendment.

Senator MARTIN spoke on the amendment.

Senator MARTIN moved to lay the amendment on the table.

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

Martin  (81.49)

Alexander (18.51)

By a weighted vote of 81.49 to 18.51, the amendment was laid on the table.

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

Senator ALEXANDER desired to be recorded as voting against the second reading of the Bill.

On motion of Senator MARTIN, H. 3782 was ordered to receive a third reading on Friday, June 1, 2007.

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.

Senator MARTIN spoke on the Concurrent Resolution.

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

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 THE WORDS "C. FRED MCLAUGHLIN MEMORIAL INTERCHANGE".

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

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".

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

S. 782 (Word version) -- Senator Moore: A BILL TO AMEND ACT 472 OF 1976, AS AMENDED, RELATING TO THE BOARD OF TRUSTEES OF SCHOOL DISTRICT NO. 4 OF MCCORMICK COUNTY, SO AS TO CREATE ONE SINGLE-MEMBER AND TWO MULTI-MEMBER ELECTION DISTRICTS IN WHICH TRUSTEES SHALL RESIDE AND FROM WHICH MEMBERS MUST BE ELECTED.

On motion of Senator MOORE, the Bill was committed to the McCormick Delegation.

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 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

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

H. 3358 (Word version) -- Reps. Kirsh and Cotty: A BILL TO REPEAL SECTION 8-11-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE OFFICE HOURS OF STATE AGENCIES; AND TO REPEAL SECTION 11-5-30 RELATING TO THE OFFICE HOURS OF THE STATE TREASURER.

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

Senators HAYES, McCONNELL, SHORT, HAWKINS, MALLOY, LOURIE and FORD proposed the following amendment (AGM\18883MM07), which was adopted:

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

/ SECTION   ____.   Chapter 5, Title 11 of the 1976 Code is amended by adding:

"Section 11-5-300.   (A)   The Treasurer shall contract for the operation of an electronic deferred presentment transaction registry for the purposes of collecting and reporting financial and demographic data regarding deferred presentment transactions.

(B)   Before entering into a deferred presentment transaction with a person, a licensee shall submit to the registry provider information the Treasurer may require. When the transaction is closed, the licensee shall submit the transaction as closed with the registry provider.

(C)   The registry must have real-time access through an internet connection and be accessible at all times to licensees. The registry provider shall establish and maintain a process for registering deferred presentment transactions when technical difficulties prevent the licensee from accessing the registry through the internet including, but not limited to, access by telephone.

(D)   A licensee shall notify a person seeking to enter into a deferred presentment transaction that data regarding the transaction is to be entered into the registry.

(E)   The registry provider may charge an administration fee to a licensee for each transaction submitted. The fee must be established by the Treasurer and may not exceed the actual cost of administering the registry. A licensee may charge a person seeking to enter into a deferred presentment transaction one-half of the actual cost of the fee.

(F)   Except as otherwise provided in this section, all personally identifiable information regarding a person contained within, or obtained by way of, the database is strictly confidential and is exempt from disclosure under the Freedom of Information Act. The registry provider and Treasurer shall use the information collected under this section only as prescribed in this section and for no other purpose." /

Renumber sections to conform.

Amend title to conform.

Senator HAYES explained the amendment.

The amendment was adopted.

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

H. 3749 (Word version) -- Reps. W.D. Smith, Mitchell, Kelly, Littlejohn, Mahaffey, Moss, Phillips, Talley and Walker: A BILL TO AMEND SECTION 12-10-80, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO JOB DEVELOPMENT CREDITS, SO AS TO ALLOW A TAXPAYER WHO QUALIFIES FOR THE JOB DEVELOPMENT CREDIT AND WHO IS LOCATED IN A MULTI-COUNTY BUSINESS OR INDUSTRIAL PARK TO RECEIVE A CREDIT EQUAL TO THE AMOUNT DESIGNATED TO THE COUNTY WITH THE LOWEST DEVELOPMENT STATUS OF THE COUNTIES CONTAINING THE PARK IN CERTAIN CIRCUMSTANCES.

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

Senator HUTTO proposed the following amendment (3749R015.CBH), which was adopted:

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

/   SECTION ___.   Section 61-4-737 of the 1976 Code is amended to read:

"Section 61-4-737.   Notwithstanding any other provision of law or regulation, the holder of a retail wine permit for off-premises consumption whose primary product is beer, wine, or distilled spirits may conduct, in accordance with department rulings or regulations, not more than twenty-four wine tastings at the retail location in a calendar year quarter."     /

Renumber sections to conform.

Amend title to conform.

Senator HUTTO explained the amendment.

The amendment was adopted.

Senator ALEXANDER proposed the following amendment (3749R016.TCA), which was adopted:

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

/     SECTION   ___.   Section 12-6-3585(A) of the 1976 Code, as added by Act 319 of 2006, is amended to read:

"(A)   A taxpayer may claim as a credit against his state income tax imposed by Chapter 6 of Title 12, bank tax imposed by Chapter 11 of Title 12, license fees imposed by Chapter 20 of Title 12, or insurance premiums imposed by Chapter 7 of Title 38, or any combination of them, one hundred percent of an amount contributed to the Industry Partnership Fund at the South Carolina Research Authority, or an SCRA-designated affiliate, or both, pursuant to Section 13-17-88(E), up to a maximum credit of six hundred fifty thousand dollars for an individual taxpayer, not to exceed an aggregate credit of two million dollars for all taxpayers in tax year 2006; up to a maximum credit of one million three hundred thousand dollars for an individual taxpayer, not to exceed an aggregate credit of four million dollars for all taxpayers in tax year 2007; and up to a maximum credit of two million dollars for an individual taxpayer, not to exceed an aggregate credit of six million dollars for all taxpayers for each tax year beginning after December 31, 2007. For purposes of determining a taxpayer's entitlement to the credit for qualified contributions for a given tax year in which more than the applicable aggregate annual limit on the credit

Renumber sections to conform.

Amend title to conform.

Senator ALEXANDER explained the amendment.

The amendment was adopted.

Senator ALEXANDER proposed the following amendment (AGM\18881MM07), which was adopted:

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

/ SECTION   ____.A.   Article 13, Chapter 60, Title 12 is amended by adding:

"Section 12-60-3312.   Except as otherwise provided by law or proper judicial order, all proceedings and records of a contested case hearing of the Administrative Law Court of a matter covered by the South Carolina Revenue Procedures Act are open to the public."

B.     This section takes effect upon approval by the Governor and applies to all tax decisions and associated information filed of record, whether or not the decision in the contested case hearing was issued before, on, or after that date.

SECTION   ____.A.   Section 6-34-40(C)(3) and (5) of the 1976 Code, as added by Act 285 of 2006, is amended to read:

"(3)   The credit earned pursuant to this subsection by a general partnership, limited partnership, limited liability company, or any other entity taxed as a partnership pursuant to Subchapter K of the Internal Revenue Code must be passed through to its partners and may be allocated among any of its partners, including without limitation, an allocation of the entire credit to one partner, in a manner agreed by the partners that is consistent with Subchapter K of the Internal Revenue Code. As used in this subsection, the term 'partner' means a partner, member, or owner of an interest in the pass through entity, as applicable.

(5)   The South Carolina Department of Revenue shall may promulgate regulations to verify the site's eligibility in accordance with the provisions of this chapter."

B.     This section takes effect upon approval by the Governor and Subsection (C)(3) applies for rehabilitation expenses for eligible sites placed in service after June 30, 2006.

SECTION   ____.   Section 12-2-20 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:

"Section 12-2-20.   As used in this title and in other titles which that provide for taxes administered by the department, and unless otherwise required by the context, the term:

(1)   'person' includes an any individual, a trust, estate, partnership, receiver, association, company, limited liability company, corporation, or any other entity or group; and

(2) 'individual' means a human being."

SECTION   ____.   Section 12-6-40(C) of the 1976 Code, as last amended by Act 89 of 2001, is further amended to read:

"(C)   If a taxpayer complies with the provisions of Internal Revenue Code Section 367 (Foreign Corporations), it is not necessary for the taxpayer to obtain the approval of the department. The A taxpayer filing a paper return shall attach a copy of the approval received from the Internal Revenue Service to its next South Carolina income tax return. A taxpayer filing an electronic return shall keep a copy of the approval with his tax records."

SECTION   ____.A.   Section 12-6-545(E)(1) of the 1976 Code, as last amended by Act 386 of 2006, is further amended to read:

"(1)   Notwithstanding item (A)(1)(ed) of this section, if a taxpayer owns an interest in one or more pass-through businesses that have a total gross income of less than one million dollars and taxable income of less than one hundred thousand dollars and his total South Carolina taxable income from pass-through entities for which he performs personal services is one hundred thousand dollars or less, excluding capital gains and losses, then the taxpayer may elect, instead of determining the actual amount of active trade or business income related to his personal services, to treat fifty percent of his active trade or business income as not related to his personal services. For purposes of this item, the term taxpayer 'taxpayer' includes both taxpayers who file a joint return."

B.     This section takes effect upon approval by the Governor and applies to tax years beginning after December 31, 2005.

SECTION   ____.A.   Section 12-6-1140(10) of the 1976 Code, as last amended by Act 242 of 2006, is further amended to read:

"(10)(a)   a deduction calculated as provided in this item for a volunteer firefighter, rescue squad member, volunteer member of a Hazardous Materials (HAZMAT) Response Team, reserve police officer, Department of Natural Resources deputy enforcement officer, or member of the State Guard not otherwise eligible for this exemption.

(b)   An individual may receive only one deduction pursuant to this item. The Board of Economic Advisors annually shall estimate a maximum deduction that may be permitted under this section for a taxable year based on an individual income tax revenue loss of three million one hundred thousand dollars attributable to this deduction and shall certify that maximum deduction to the Department of Revenue and for the applicable taxable year, the maximum deduction amount must not exceed the lesser of the certified estimate or three thousand dollars.

(c)(i)   Only a volunteer earning a minimum number of points pursuant to Section 23-9-190 is eligible for this deduction unless otherwise provided in this item.

(ii)   In the case of a reserve police officer and in lieu of minimum points determining eligibility, this deduction is allowed only if the reserve police officer's coordinator-supervisor certifies in writing to the officer that the officer met all requirements of Chapter 28, Title 23 applicable to a reserve police officer for the entire taxable year.

(iii)   In the case of a Department of Natural Resources deputy enforcement officer and in lieu of minimum points determining eligibility, this deduction is allowed only if the deputy enforcement officer's supervisor certifies in writing to the officer that the officer met all requirements of Section 50-3-315 for the entire taxable year.

(iv)   In the case of a member of the State Guard and in lieu of minimum points determining eligibility, this deduction is allowed only if the State Guard member completes a minimum of sixteen hours of training or drill each month, equating to one hundred ninety-two hours a year, and the member's commanding officer certifies in writing to the member that the member met these requirements.

(d)   These certifications from supervisors of taxpayers claiming the deduction must be on a form approved by the Department of Revenue that must be filed with the officer's or member's tax return for the exemption to be claimed department. The department may require a copy of the certification be attached to the taxpayer's income tax return or otherwise be made available to the department."

B.     This section takes effect upon approval by the Governor and applies to taxable years beginning after 2005.

SECTION   ____.A.   Section 12-6-3360(H) of the 1976 Code, as last amended by Act 277 of 2000, is further amended to read:

"(H)   A credit claimed under pursuant to this section but not used in a taxable year may be carried forward for fifteen years from the taxable year in which the credit is earned by the taxpayer. Credits which that are carried forward must be used in the order earned and before jobs credits claimed in the current year. A taxpayer who earns credits allowed by this section and who also is eligible for the moratorium provided in Section 12-6-3365 3367 may claim the credits and may carry forward unused credits beginning after the moratorium period expires."

B.   This section takes effect upon approval by the Governor and applies to taxable years beginning after 2005.

SECTION   ____.A.   Section 12-6-3360(M)(1) of the 1976 Code, as last amended by Act 384 of 2006, is further amended to read:

"(1)   'Taxpayer' means a sole proprietor, partnership, corporation of any classification, limited liability company, or association taxable as a business entity that is subject to South Carolina taxes as contained in Sections Section 12-6-510 and, Section 12-6-530, Chapter 11 of Title 12, and or Chapter 7 of Title 38."

B.   This section takes effect upon approval by the Governor.

SECTION   ____.A.   Section 12-6-3360(M)(10) of the 1976 Code is amended to read:

"(10)   'Corporate office facility' means a corporate headquarters that meets the definition of a 'corporate headquarters' contained in Section 12-6-3410(J)(1). The corporate headquarters of a general contractor licensed by the South Carolina Department of Labor, Licensing and Regulation qualifies even if it is not a regional or national headquarters as those terms are defined in Section 12-6-3410(J)(1)."

B.   This section takes effect upon approval by the Governor and applies to tax years beginning after December 31, 2005.

SECTION   ____.   Section 12-6-3535(A) of the 1976 Code, as last amended by Act 386 of 2006, and the first paragraph of Section 12-6-3535(B), as last amended by Act 69 of 2003, is further amended to read:

"(A)   A taxpayer who is allowed a federal income tax credit pursuant to Section 47 of the Internal Revenue Code for making qualified rehabilitation expenditures for a certified historic structure located in

(B)   A taxpayer who is not eligible for a federal income tax credit under Section 47 of the Internal Revenue Code and who makes rehabilitation expenses for a certified historic residential structure located in this State is allowed to claim a credit against the tax imposed by this chapter. The amount of the credit is twenty-five percent of the rehabilitation expenses. To claim the credit allowed by this subsection, the a taxpayer filing a paper return must attach to the return a copy of the certification obtained from the State Historic Preservation Officer verifying that the historic structure has been rehabilitated in accordance with this subsection, along with all information that the Department of Revenue determines is necessary for the calculation of the credit provided by this subsection. A taxpayer filing an electronic return shall keep a copy of the certification with his tax records."

SECTION   ____.A.   Section 12-6-3585 of the 1976 Code, as added by Act 319 of 2006, is amended to read:

"Section 12-6-3585.   (A)   A taxpayer may claim as a credit against his state income tax imposed by Chapter 6 of Title 12, license fees imposed by Chapter 20 of Title 12, or insurance premiums imposed by Chapter 7 of Title 38, or any combination of them, one hundred percent of an amount contributed to the Industry Partnership Fund at the South Carolina Research Authority, or an SCRA-designated affiliate, or both, pursuant to Section 13-17-88(E), up to a maximum credit of six hundred fifty thousand dollars for an individual a single taxpayer, not to exceed an aggregate credit of two million dollars for all taxpayers in tax year 2006; up to a maximum credit of one million three hundred thousand dollars for an individual a single taxpayer, not to exceed an aggregate credit of four million dollars for all taxpayers in tax year 2007; and up to a maximum credit of two million dollars for an individual a single taxpayer, not to exceed an aggregate credit of six

(B)   The amount of the credit is equal to one hundred percent of the amount of the taxpayer's qualified contributions to the Industry Partnership Fund, subject to the limitations in this section. The credit is nonrefundable.

(C)   The use of the credit is limited to the taxpayer's applicable income or premium tax or license fee liability for the tax year of the taxpayer after the application of all other credits. An unused credit may be carried forward ten tax years of the taxpayer after the end of the tax year of the taxpayer during which the qualified contribution was made.

(D)   A contribution is not a qualified contribution if it is subject to conditions or limitations regarding the use of the contribution.

(E)   'Taxpayer' means an individual, corporation, partnership, trust, bank, insurance company, or other entity having a state income or insurance premium tax or license fee liability who has made a qualified contribution.

(F)   To claim qualify for the credit, the taxpayer shall attach to the return a copy of retain a form provided by SCRA identifying the taxpayer's qualified contribution and the year and amount of credit for which the taxpayer qualifies. The Department of Revenue may require a copy of the form be attached to the taxpayer's income tax return or be provided otherwise to the department.

(G)   The Department of Revenue department may require information and submissions by the taxpayer as it considers appropriate in relation to a taxpayer's claim of entitlement to the credit.

(H)   The merger, consolidation, or reorganization of a corporation where tax attributes survive does not create new eligibility in a succeeding corporation, but unused credits may be transferred and continued by the succeeding corporation. In addition, a corporation or partnership may assign its rights to its unused credit to another corporation or partnership if it transfers all, or substantially all, of the assets of the corporation or partnership or all, or substantially all, of the

(I)   A taxpayer who claims the credit may not take a deduction in relation to the qualified contribution which gives rise to such credit."

B.     This section takes effect upon approval by the Governor and applies to tax years beginning after December 31, 2005.

SECTION   ____.A.   Section 12-6-3587(A) of the 1976 Code, as added by Act 386 of 2006, is amended to read:

"(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 installation of a solar energy heating or cooling system, or both, in a building in South Carolina 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 may not exceed three thousand five hundred dollars 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, the taxpayer may carry forward the excess for up to ten years."

B.     This section takes effect upon approval by the Governor and applies to installation costs incurred after December 31, 2005.

SECTION   ____.   Section 12-6-4980 of the 1976 Code, as last amended by Act 363 of 2002, is further amended to read:

"Section 12-6-4980.   (A)   The department, for good cause, may allow an extension of time not to exceed six months for filing returns under this chapter or the annual report under Chapter 20 of this title. A taxpayer requesting an extension of time for filing, on or before the date the return or annual report is due, shall submit a tentative return and pay the full amount of the tax and license fee due.

(B)   When a taxpayer is not required to make a payment of tax at the time of the extension, and the taxpayer has been granted an extension of time to file a federal income tax return, the taxpayer is not required to apply to the department for an extension of time to file the South Carolina return. The department shall accept a copy, if applicable, of a properly filed federal extension attached to the South Carolina return when filed. Any taxes shown to be due on a return required pursuant to this chapter must be paid at the time the return is due to be filed, without regard to any extension of time granted for filing the return.

(C)   An extension may not be granted to a taxpayer who has been granted an extension for a previous period and has not fulfilled the requirements of the previous period."

SECTION   ____.   Section 12-8-580(D)(2) of the 1976 Code is amended to read:

"(2)   The buyer is liable for the collection and payment of an amount due pursuant to this section. The A lending institution, real estate agent, and or closing attorney are is not liable for the collection of an amount due from the buyer pursuant to this section. However, a lending institution, real estate agent, or closing attorney that has in fact withheld taxes is required timely to remit the amount withheld within the timeframe provided in item (1) of this subsection."

SECTION   ____.   Section 12-8-590(D) of the 1976 Code is amended to read:

"(D)   A partnership required to withhold taxes on distributed or undistributed income shall make a return with each payment of tax to the department disclosing on the return the names, taxpayer identification number, the total amount of South Carolina taxable income paid or credited to each nonresident partner, the tax withheld for each nonresident partner, and any other information the department requires. The partnership shall furnish to each nonresident shareholder partner a written statement as required by Section 12-8-1540(A) as proof of the amount of his share of distributed or undistributed income that has been withheld."

SECTION   ____.   Section 12-8-2020 of the 1976 code is amended to read:

"Section 12-8-2020.   (A)   A refund or credit may be allowed for an overpayment of tax withheld under pursuant to this chapter to:

(1)   the withholding agent to the extent that the withholding agent did not withhold the overpayment amount from the taxpayer; or

(2)   the taxpayer to the extent that the overpayment was withheld from the taxpayer.

(B)   A refund or credit may be granted to a withholding agent who has withheld taxes in error if the withholding agent furnishes evidence that has refunded or unconditionally credited the amount erroneously withheld has been refunded or unconditionally credited to the taxpayer and the amount is refunded or credited to the taxpayer before the issuance of the original wage and tax statement for the calendar year.

(C)   The withholding agent or taxpayer shall apply for a refund or credit under this section within three years from the deemed date of the overpayment. A refund or credit is not allowed for less than one dollar. For purposes of this section, the deemed date of overpayment is the original due date of the return in which the withholding is credited against tax imposed by Chapter 6 of this title."

SECTION   ____.   Section 12-20-90 of the 1976 Code, as last amended by Act 89 of 2001, is further amended to read:

"Section 12-20-90.   The amount of the license fee required by Section 12-20-50 for a bank holding company, insurance holding company system, and savings and loan holding company must be measured by the capital stock and paid-in surplus of the holding company exclusive of the capital stock and paid-in surplus of a bank, insurer, or savings and loan association that is a subsidiary of the holding company. For the purposes of this section, 'bank', 'bank holding company', and 'subsidiary' of a bank holding company have the same definitions as in Section 34-24-20 34-25-10; 'insurer', 'insurance holding company system', and a 'subsidiary' of an insurance holding company system have the same definitions as in Section 38-21-10; and savings and loan 'association', 'savings and loan holding company', and a 'subsidiary' of a savings and loan company have the same definitions as in Section 34-28-300."

SECTION   ____.A.   Section 12-23-20(9) of the 1976 Code, as added by Act 335 of 2006, is amended to read:

"(9)   electricity used by a technology intensive facility as defined in Section 12-6-3360(M)(14)(b) and qualifying for the sales tax exemption provided pursuant to Section 12-36-2120(65), and the equipment and raw materials including, without limitation, fuel used by such qualifying facility to generate, transform, transmit, distribute, or manage electricity for use in such a facility. The running of the periods of limitation within which the department may assess taxes pursuant to Section 12-54-85 is suspended during the same time period it is suspended in item (65)(d) of Section 12-36-2120."

B.     This section takes effect June 6, 2006.

SECTION   ____.A.   Section 12-36-2120(66) of the 1976 Code, as added by Act 335 of 2006, is amended to read:

"(66)   electricity used by a technology intensive facility as defined in Section 12-6-3360(M)(14)(b) and qualifying for the sales tax exemption provided pursuant to item (65) of this section, and the equipment and raw materials including, without limitation, fuel used by such qualifying facility to generate, transform, transmit, distribute, or manage electricity for use in such a facility. The running of the periods of limitation within which the department may assess taxes pursuant to Section 12-54-85 is suspended during the same time period it is suspended in item (65)(d) of this section."

B.     This section takes effect June 6, 2006.

SECTION   ____.   Section 12-36-2510(C) of the 1976 Code, as last amended by Act 145 of 2005, is further amended to read:

"(C)   A seller that complies with the provisions of this section is relieved from any tax otherwise applicable if it is determined that the purchaser improperly claimed an exemption or exclusion by use of a certificate, provided the seller fraudulently did not fraudulently fail to collect or remit the tax, or both, or solicit a purchaser to participate in an unlawful claim of an exemption. The liability for any tax shifts to the purchaser who improperly claimed the exemption or exclusion by use of the certificate."

SECTION   ____.   Section 12-37-270(C) of the 1976 Code, as last amended by Act 386 of 2006, is further amended to read:

"(C)   The department shall may promulgate regulations necessary to carry out the provisions of this section."

SECTION   ____.   Section 12-54-70(a) of the 1976 Code is amended to read:

"(a)   The department may, for good cause, allow further time for the filing of returns or remitting of tax due, required under by the provisions of law administered by the department. The request for an extension may be granted only if the request is must be filed with the department on or before the day the return of the tax is due. Except as otherwise provided in this section, the department may allow an extension of time not to exceed six months. A tentative return is required reflecting one hundred percent of the anticipated tax to be paid for the taxable period, to be accompanied by a remittance for the tentative tax liability. Interest at the rate as provided under in Section 12-54-25, calculated from the date the tax was originally due, must be added to the balance due whenever an extension to file or to remit tax due is granted."

SECTION   ____.A.   Section 12-54-85(C) of the 1976 Code, as last amended by Act 399 of 2000, is further amended to read:

"(C)   Taxes may be determined and assessed after the thirty-six month limitation if:

(1)   there is fraudulent intent to evade the taxes;

(2)   the taxpayer failed to file a return or document as required by law;

(3)   there is a twenty percent understatement of the total of all taxes required to be shown on the return or document. The taxes in this case may be assessed at any time within seventy-two months from the date the return or document was filed or due to be filed, whichever is later. For the purpose of this item, the total of all taxes required to be

(4)   the person liable for any taxes consents in writing, before the expiration of the time prescribed in this section for assessing taxes due, to the assessment of the taxes after the time prescribed by this section. ; or

(5)   the tax is a use tax imposed under Chapter 36 of this title, or a local use tax administered and collected by the department on behalf of a local jurisdiction, and the assessment of the use tax is the result of information received from, or as a result of exchange agreements with, other state or local taxing authorities, regional or national tax administration organizations, or the federal government. The use taxes in this case may be assessed at any time within twelve months after the department receives the information, but no later than seventy-two months after the last day the use tax may be paid without penalty."

B.     This section takes effect upon approval by the Governor and applies to all assessments issued after that date.

SECTION   ____.A.   Section 12-54-155(D)(2) of the 1976 Code, as last amended by Act 386 of 2006, is further amended to read:

"(2)   In the case of underpayment attributable to a substantial valuation misstatement with respect to charitable deduction property, item (1) does not apply if unless:

(a)   the claimed value of the property was based on a qualified appraisal made by a qualified appraiser; and

(b)   in addition to obtaining the appraisal, the taxpayer made a good faith investigation of the value of the contributed property."

B.     This section takes effect upon approval by the Governor and applies for tax periods beginning after December 31, 2006.

SECTION   ____.   Section 12-54-240(B)(12), as last amended by Act 145 of 2005, and (13) of the 1976 Code, is further amended to read:

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

(b)   disclosure to any a county auditor or county assessor of whether the four percent assessment pursuant to Section 12-43-220(c)(1) has been claimed by a taxpayer in any a county.

(13)   disclosure of information pursuant to Section 12-54-1010(c) or 12-54-1020(c) Reserved;"

SECTION   ____.A.   Section 12-54-240(B) of the 1976 Code, as last amended by Act 386 of 2006, is further amended by adding at the end:

"(26)   disclosure of information referred to in Section 12-60-3312."

B.     This section takes effect upon approval by the Governor and applies to all tax decisions and associated information filed whether the decision was issued before or after that date.

SECTION   ____.A.   Section 12-60-20 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:

"Section 12-60-20.   It is the intent of the General Assembly to provide the people of this State with a straightforward procedure to determine any a dispute with the Department of Revenue and a dispute concerning property taxes. The South Carolina Revenue Procedures Act must be interpreted and construed in accordance with, and in furtherance of, that intent."

B.     This section takes effect upon approval by the Governor.

SECTION   ____.   Section 12-60-90(C) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:

"(C)   Taxpayers may be represented during the administrative tax process by:

(1)   the same individuals who may represent them in administrative tax proceedings with the Internal Revenue Service pursuant to Section 10.3(a), (b), and (c), Section 10.7(a), (c)(1)(i) through (c)(1)(vi), and (c)(2 1)(viii), and Section 10.7(d) and (e) of United States Treasury Department Circular No. 230; and

(2)   a real estate appraiser who is registered, licensed, or certified pursuant to Chapter 60 of Title 40 during the administrative tax process in a matter limited to questions concerning the valuation of real property."

SECTION   ____.A.   Section 6-1-320(A) of the 1976 Code, as last amended by Act 388 of 2006, is further amended to read:

"(A)   Notwithstanding Section 12-37-251(E), a local governing body may increase the millage rate imposed for general operating purposes above the rate imposed for such purposes for the preceding tax year only to the extent of the increase in the average of the twelve monthly consumer price indexes for the most recent twelve-month period consisting of January through December of the preceding calendar

SECTION   ____.   Article 5, Chapter 4, Title 12 is amended by adding:

"Section 12-4-535.   (A)   the department may issue a department determination directing the appropriate county official to comply with all applicable state law relating to the valuation, assessment, or taxation of property.

(B)   Within thirty days of the date the department determination is mailed or hand delivered, the county must respond in writing by first class mail or hand delivery to the department and state its agreement or disagreement with the department determination.

(C)   If the county disagrees with, or fails to respond to, the department determination, the department by its director or designee or the county governing body by resolution may request a contested case hearing before the Administrative Law Court within thirty days after the date the county disagreement notice was, or should have been, mailed or hand delivered. A request for a contested case hearing before the Administrative Law Court must be made in accordance with its rules.

(D)   The county governing body by resolution may request a department determination on any state law regarding the valuation, assessment, or taxation of property. Within thirty days of a request by a county governing body, the department may issue, in its discretion, the determination, which must be issued by first class mail or hand delivery to the county."

SECTION   ____.   Section 12-4-320 of the 1976 Code is amended by adding an appropriately numbered item at the end:

"( )   enter into an installment payment agreement with a taxpayer."

SECTION   ____.   Section 12-6-40(A)(1)(a) of the 1976 Code, as last amended by Act 386 of 2006, is further amended to read:

"(a)   Except as otherwise provided, 'Internal Revenue Code' means the Internal Revenue Code of 1986, as amended through December 31, 20052006, and includes the effective date provisions contained in it."

SECTION   ____.A.   Section 12-6-50(2) of the 1976 Code is amended to read:

"(2)   Sections 22 through 5354, 515, 853, 901 through 908, and 960 relating to tax credits;"

B.   This section takes effect upon approval by the Governor and applies to tax years beginning after December 31, 2005.

SECTION   ____.   Section 12-6-3360(B)(5)(f) and (h) of the 1976 Code, as added by Act 161 of 2005 and Act 386 of 2006, respectively, is amended to read:

"(f)   In a county in which one employer has lost at least 1,500 jobs in a calendar year, the credit allowed is one tier higher than the credit for which the county would otherwise qualify. The one-tier-higher credit allowed by this subsection is allowed for a three-year period beginning immediately following the year during which the jobs were lost five taxable years for jobs created in 2006, 2007, and 2008. This subsection does not apply to a job created in a county eligible for a higher tier pursuant to another provision of this section.

(h)   In a county in which one employer has lost at least 1,500 jobs in calendar year 2006, the credit allowed is three tiers higher than the credit for which the county would otherwise qualify. The three-tier-higher credit allowed by this subsection is allowed for five taxable years beginning for jobs created in 2007 and 2008. This subsection does not apply to a job created in a county eligible for a higher tier pursuant to another provision of this section."

SECTION   ____.A.   Section 12-6-3362(B) of the 1976 Code, as added by Act 389 of 2006, is amended to read:

"(B)   Beginning with the first full month wages are paid for year the new full-time jobs are created, the taxpayer is allowed a jobs tax credit in an amount equal to 8.33 percent of the maximum credit amount calculated pursuant to Section 12-6-3360(C)(2) each month, for not more than sixty consecutive months, multiplied by the number of new full-time jobs for which wages are paid for the full month five consecutive years. A credit is not allowed for any month a year in which the new employment full-time job increase falls below the minimum level of two. To claim the credits allowed pursuant to Section 12-6-3360(C)(2)(a), the minimum gross wages requirement is met if the gross wages paid for the month, when annualized, meet the minimum requirement."

B.   This section takes effect upon approval by the Governor and applies to tax years beginning after December 31, 2005.

SECTION   ____.   Section 12-6-3585(A) of the 1976 Code, as added by Act 319 of 2006, is amended to read:

"(A)   A taxpayer may claim as a credit against his state income tax imposed by Chapter 6 of Title 12, bank tax imposed by Chapter 11 of Title 12, license fees imposed by Chapter 20 of Title 12, or insurance premiums imposed by Chapter 7 of Title 38, or any combination of them, one hundred percent of an amount contributed to the Industry Partnership Fund at the South Carolina Research Authority, or an SCRA-designated affiliate, or both, pursuant to Section 13-17-88(E), up to a maximum credit of six hundred fifty thousand dollars for an individual taxpayer, not to exceed an aggregate credit of two million dollars for all taxpayers in tax year 2006; up to a maximum credit of one million three hundred thousand dollars for an individual taxpayer, not to exceed an aggregate credit of four million dollars for all taxpayers in tax year 2007; and up to a maximum credit of two million dollars for an individual taxpayer, not to exceed an aggregate credit of six million dollars for all taxpayers for each tax year beginning after December 31, 2007. For purposes of determining a taxpayer's entitlement to the credit for qualified contributions for a given tax year in which more than the applicable aggregate annual limit on the credit is contributed by taxpayers for that year, taxpayers who have made contributions that are intended to be qualified contributions earlier in the applicable tax year than other taxpayers must be given priority entitlement to the credit. The SCRA shall certify to taxpayers who express a bona fide intention of making one or more qualified contributions as to whether the taxpayer is entitled to that priority."

SECTION   ____.   A.   Section 12-36-2120(67) of the 1976 Code, as added by Act 384 of 2006, is amended to read:

"(67)   effective July 1, 2011, construction materials used in the construction of a new or expanded single manufacturing and or distribution facility, or one that serves both purposes, with a capital investment of at least one hundred million in real and personal property at a single site in the State over an eighteen-month period. The taxpayer must provide notice of the exemption, and the Department of Revenue may assess taxes owing in the manner provided in Section 12-36-2120(51)."

B.   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 qualifying construction materials used in the construction of a single manufacturing or distribution facility, as provided in item (67), is four percent for sales

SECTION   ____.   Section 12-54-200(C) of the 1976 Code, as last amended by Act 89 of 2001, is further amended to read:

"(C)   If A person is required to maintain a separate account, he must give the name of the financial institution, the account number, and other information the department requires. Taxes, penalties, and interest due must be withdrawn from the account by preprinted, consecutively numbered checks signed by a properly authorized officer, partner, manager, employee, or member of the taxpayer and made payable to the department. Monies deposited in the account may must not be commingled with other funds. The department, at its discretion, may apply Section 12-54-250, if the amount due from the taxpayer is twenty fifteen thousand dollars or more."

SECTION   ____.   Section 12-54-240(B) of the 1976 Code, as last amended by Act 386 of 2006, is further amended by adding appropriately numbered items at the end:

"( )   disclosure of information to the State Treasurer necessary for the administration and enforcement of the Uniform Unclaimed Property Act;

( )   exchange of information between the department, the Department of Commerce and its agency, the Venture Capital Authority, and the Department of Insurance for the purpose of registering and verifying the existence, possession, transfer, and use of tax credits pursuant to Chapter 45 of Title 11."

SECTION   ____.   Section 12-54-250(A) and (B) of the 1976 Code, as last amended by Act 163 of 2002, is further amended to read:

"(A)(1)   The South Carolina Department of Revenue may require, consistent with the cash management policies of the State Treasurer, that any a person owing fifteen thousand dollars or more in connection with any return, report, or other document to be filed with the department or a withholding agent making at least twenty-four payments in a year pursuant to Section 12-8-1520(D) shall pay the tax liability to the State no later than the date the payment is required by law to be made, in funds which that are available immediately to the State on the date of payment. 'Payment in immediately available funds' may be made means payment by cash to the main office of the department before five o'clock p.m. or by any electronic means established by the department, with the approval of the State Treasurer,

(2)   Evidence of the payment must be furnished to the department Initiation of the transfer of funds must occur on or before the due date of the tax as provided by law. If payment is made by means other than cash and settlement to the state's account does not occur on or before the banking day following the due date of the tax, payment is deemed to occur on the date settlement occurs.

(3)   Failure to make timely payment in immediately available funds or failure to provide evidence of payment in a timely manner subjects the taxpayer to penalties and interest as provided by law for delinquent or deficient tax payments.

(B)   The department by rule may prescribe provide alternative periodic filing and payment dates later than the dates otherwise provided by law for any taxes collected by the department in those instances where it is considered to be in the best interest interests of the State. An alternative date may must not be later than the last day of the month in which the tax was otherwise due."

SECTION   ____.   Section 12-60-430 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:

"(A)   If a taxpayer fails or refuses to make a report or to file a return required by the provisions of this title or required to be filed with the department, the department may make an estimate of the tax liability from the best information available and issue a proposed assessment for the taxes, including penalties and interest.

(B)   If the department determines a return or report filed by a taxpayer is frivolous, the department may make an estimate of the tax liability from the best information available and issue a proposed assessment for the tax, including penalties and interest."

SECTION   ____.   Section 11-11-156(D) of the 1976 Code, as added by Act 388 of 2006, is amended to read:

"(D)   Notwithstanding any other another provision of this section, in the case of a redevelopment project area created pursuant to Chapter 6, 7, or 12 of Title 31, the reimbursements provided pursuant to this section for the property tax exemption allowed by Section 12-37-220(B)(47) must include full payment to each taxing entity for the incremental property tax that, in the absence of such exemption, would otherwise be payable to such taxing entity with respect to owner-occupied residential real property located in a redevelopment project area pursuant to the tax increment financing law for cities,

SECTION   ____.   Section 11-45-55(I) of the 1976 Code, as added by Act 125 of 2005, is amended by adding at the end:

"(3)   Notwithstanding Section 12-54-240(A), the authority, the Department of Commerce, the Department of Revenue, and the Department of Insurance may exchange information for the purpose of registering and verifying the existence, possession, transfer, and use of tax credits pursuant to this chapter."

SECTION   ____.   A taxpayer must not be penalized for following the provisions of Section 401 of the Federal Tax Increase Prevention and Reconciliation Act of 2005 for South Carolina purposes.

SECTION   ____.   A.   Article 17, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-2252.   (A)   A taxpayer whose principal business in this State is (i) manufacturing or a form of collecting, buying, assembling, or processing goods and materials within this State, or (ii) selling, distributing, or dealing in tangible personal property within this State, shall make returns and pay annually an income tax that includes its income apportioned to this State. Its income apportioned to this State is determined by multiplying the net income remaining after allocation pursuant to Sections 12-6-2220 and 12-6-2230 by the sales factor defined in Section 12-6-2280.

(B)   If a sales factor does not exist, the remaining net income is apportioned to the business's principal place of business."

B.   This section takes effect upon approval by the Governor and applies for taxable years beginning after 2006.

SECTION   ____.   A.   Article 17, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-2295.   (A)   The terms 'sales' as used in Section 12-6-2280 and 'gross receipts' as used in Section 12-6-2290 include, but are not limited to, the following items if they have not been separately allocated:

(1)   receipts from the sale or rental of property maintained for sale or rental to customers in the ordinary course of the taxpayer's trade or business including inventory;

(2)   receipts from the sale of accounts receivable acquired in the ordinary course of trade or business for services rendered or from the sale or rental of property maintained for sale or rental to customers in the ordinary course of the taxpayer's trade or business if the accounts receivable were created by the taxpayer or a related party. For purposes of this item, a related person includes a person that bears a relationship to the taxpayer as described in Section 267 of the Internal Revenue Code;

(3)   receipts from the use of intangible property in this State including, but not limited to, royalties from patents, copyrights, trademarks, and trade names;

(4)   net gain from the sale of property used in the trade or business. For purposes of this subsection, property used in the trade or business means property subject to the allowance for depreciation, real property used in the trade or business, and intangible property used in the trade or business which is:

(a)   not property of a kind that properly would be includible in inventory of the business if on hand at the close of the taxable year; or

(b)   held by the business primarily for sale to customers in the ordinary course of the trade or business;

(5)   receipts from services if the entire income-producing activity is within this State. If the income-producing activity is performed partly within and partly without this State, sales are attributable to this State to the extent the income-producing activity is performed within this State;

(6)   receipts from the sale of intangible property which are unable to be attributed to any particular state or states are excluded from the numerator and denominator of the factor.

(B)   The terms 'sales' as used in Section 12-6-2280 and 'gross receipts' as used in Section 12-6-2290 do not include:

(1)   repayment, maturity, or redemption of the principal of a loan, bond, or mutual fund or certificate of deposit or similar marketable instrument;

(2)   the principal amount received under a repurchase agreement or other transaction properly characterized as a loan;

(3)   proceeds from the issuance of the taxpayer's stock or from sale of treasury stock;

(4)   damages and other amounts received as the result of litigation;

(5)   property acquired by an agent on behalf of another;

(6)   tax refunds and other tax benefit recoveries;

(7)   pension reversions;

(8)   contributions to capital, except for sales of securities by securities dealers;

(9)   income from forgiveness of indebtedness; or

(10)   amounts realized from exchanges of inventory that are not recognized by the Internal Revenue Code."

B.   This section takes effect upon approval of this act by the Governor and applies for taxable years beginning after 2006.

SECTION   ____.A.   Section 12-6-2250 of the 1976 Code, as last amended by Act 384 of 2006, is further amended to read:

"Section 12-6-2250.   A taxpayer whose principal business in this State is (i) manufacturing or any form of collecting, buying, assembling, or processing goods and materials within this State, or (ii) selling, distributing, or dealing in tangible personal property within this State, shall make returns and pay annually an income tax that includes its income apportioned to this State. Its income apportioned to this State is determined by multiplying the net income remaining after allocation pursuant to Sections 12-6-2220 and 12-6-2230 by a fraction, the numerator of which is the number of sales made in South Carolina, and the denominator of which is the total number of sales for the taxpayer. However, if a sales ratio does not exist, the denominator of the fraction is the number of existing ratios, and where the sales ratio exists but the payroll ratio or the property ratio does not exist, the denominator of the fraction is the number of existing ratios plus one. The sales ratios must be determined in accordance with Section 12-6-2280. (A)   A taxpayer whose principal business in this State is (i) manufacturing or a form of collecting, buying, assembling, or processing goods and materials within this State, or (ii) selling, distributing, or dealing in tangible personal property within this State, shall make returns and pay annually an income tax that includes its income apportioned to this State. Its income apportioned to this State is determined by multiplying the net income remaining after allocation pursuant to Sections 12-6-2220 and 12-6-2230 by a fraction, the numerator of which is the property ratio, plus the payroll ratio, plus twice the sales ratio, and the denominator of which is four. However, where the sales ratio does not exist, the denominator of the fraction is the number of existing ratios, and where the sales ratio exists but the

(B)   For taxable years beginning in 2007 through 2010 only, a taxpayer in subsection (A) shall apportion income by using the method provided in Section 12-6-2250(A) and, if applicable, the method provided in Section 12-6-2252. If the calculation permitted in Section 12-6-2252 results in a reduction in income allocated to this State, the reduction is allowed as follows:

Taxable year beginning in:       Percentage of reduction allowed

2007                     20

2008                     40

2009                     60

2010                     80."

(C) For purposes of calculation of the license fee pursuant to Section 12-20-60, the percentage reduction is applied in the same manner as in subsection (B).

B.   This section takes effect upon approval of this act by the Governor and applies for taxable years beginning after 2006.

SECTION   ____.A.   Section 12-6-2280 of the 1976 Code is amended to read:

"Section 12-6-2280.   (A)   The sales factor is a fraction in which the numerator is the total sales of the taxpayer in this State during the taxable year and the denominator is the total sales of the taxpayer everywhere during the taxable year.

(B)   The term 'sales in this State' includes sales of goods, merchandise, or property received by a purchaser in this State other than the .United States Government. The place where goods are received by the purchaser after all transportation is completed is considered as the place at which the goods are received by the purchaser. Direct delivery into this State by the taxpayer to a person designated by a purchaser constitutes delivery to the purchaser in this State.

(C)   The word 'sales' includes, but is not limited to:

(1)   rentals from tangible personal property located in this State which are not separately allocated; and

(2)   sales of intangible personal property and receipts from services if the entire income-producing activity is within this State. If the income-producing activity is performed partly within and partly without this State, sales are attributable to this State to the extent the

(D)   For purposes of this section, items included in sales are as provided in Section 12-6-2295."

B.   This section takes effect upon approval of this act by the Governor and applies for taxable years beginning after 2006.

SECTION   ____.   Section 12-6-2290 of the 1976 Code is amended to read:

"Section 12-6-2290.   If the principal profits or income of a taxpayer are derived from sources other than those described in Section 12-6-2250 or Section 12-6-2310, the taxpayer shall apportion its remaining net income using a fraction in which the numerator is gross receipts from within this State during the taxable year and the denominator is total gross receipts from everywhere during the taxable year. For purposes of this section, items included in gross receipts are as provided in Section 12-6-2295. "

B.   This section takes effect upon approval of this act by the Governor and applies for taxable years beginning after 2006.

SECTION   ____.   A.     Section 12-6-1130(6) of the 1976 Code is amended to read:

"(6)   In computing the depletion deduction pursuant to Internal Revenue Code Sections 611 through 613, a taxpayer who allocates or apportions income under pursuant to the provisions of Article 17 of this chapter has the option of:

(a)   apportioning the deduction according to the appropriate South Carolina apportionment percentage provided in Sections 12-6-2250 12-6-2252 through 12-6-2310; or

(b)   allocating the deduction to South Carolina with respect to mines, oil and gas wells, and other natural deposits located in this State. The amount allocated to South Carolina may not exceed fifty percent of the net income apportioned to South Carolina by Sections 12-6-2250 12-6-2252 through 12-6-2310."

B.     Section 12-6-2240 of the 1976 Code is amended to read:

"Section 12-6-2240.   All income remaining after allocation under pursuant to Sections 12-6-2220 and 12-6-2230 is apportioned in accordance with Sections 12-6-2250 Section 12-6-2252, or one of the

C.     Section 12-6-2290 of the 1976 Code is amended to read:

"Section 12-6-2290.   If the principal profits or income of a taxpayer are derived from sources other than those described in Section 12-6-2250 12-6-2252 or Section 12-6-2310, the taxpayer shall apportion its remaining net income using a fraction in which the numerator is gross receipts from within this State during the taxable year and the denominator is total gross receipts from everywhere during the taxable year. For purposes of this section, items included in gross receipts are as provided in Section 12-6-2295."

D.     Sections 12-6-2250, 12-6-2260, and 12-6-2270 are repealed.

E.   This section takes effect for tax years after 2010.

SECTION   ____.   Section 6-5-10(a) of the 1976 Code is amended to read:

"(a)   The governing body of any municipality, county, school district, or other local government unit or political subdivision and county treasurers may invest money subject to their control and jurisdiction in:

(1)   Obligations of the United States and its agencies thereof; , the principal and interest of which is fully guaranteed by the United States;

(2)   Obligations issued by the Federal Financing Bank, Federal Farm Credit Bank, the Bank of Cooperatives, the Federal Intermediate Credit Bank, the Federal Land Banks, the Federal Home Loan Banks, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, the Government National Mortgage Association, the Federal Housing Administration, and the Farmers Home Administration, if, at the time of investment, the obligor has a long-term, unenhanced, unsecured debt rating in one of the top two ratings categories, without regard to a refinement or gradation of rating category by numerical modifier or otherwise, issued by at least two nationally recognized credit rating organizations;

(23)(i)   General obligations of the State of South Carolina or any of its political units; or (ii) revenue obligations of the State of South Carolina or its political units, if at the time of investment, the obligor has a long-term, unenhanced, unsecured debt rating in one of the top two ratings categories, without regard to a refinement or gradation of rating category by numerical modifier or otherwise, issued by at least two nationally recognized credit rating organizations;

(34)   Savings and Loan Associations to the extent that the same are insured by an agency of the federal government;

(45)   Certificates of deposit where the certificates are collaterally secured by securities of the type described in (1) and (2) above held by a third party as escrow agent or custodian, of a market value not less than the amount of the certificates of deposit so secured, including interest; provided, however, such collateral shall not be required to the extent the same are insured by an agency of the federal government.

(56)   Repurchase agreements when collateralized by securities as set forth in this section.

(67)   No load open-end or closed-end management type investment companies or investment trusts registered under the Investment Company Act of 1940, as amended, where the investment is made by a bank or trust company or savings and loan association or other financial institution when acting as trustee or agent for a bond or other debt issue of that local government unit, political subdivision, or county treasurer if the particular portfolio of the investment company or investment trust in which the investment is made (i) is limited to obligations described in items (1), (2), (3) and (56) of this subsection, and (ii) has among its objectives the attempt to maintain a constant net asset value of one dollar a share and to that end, value its assets by the amortized cost method.

(78)   A political subdivision receiving Medicaid funds appropriated by the General Assembly in the annual general appropriations act may utilize appropriated funds and other monies generated by hospital operations to participate in principal protected investments in the form of notes, bonds, guaranteed investment contracts, debentures, or other contracts issued by a bank chartered in the United States or agency of a bank if chartered in the United States, financial institution, insurance company, or other entity which provides for full principal payment at the end of a contract term not to exceed twelve years if the issuer has received a rating in one of three highest general rating categories issued by no fewer than two nationally recognized credit rating organizations. No more than forty percent of the appropriated funds and other monies generated by hospital operations may be invested in the manner provided in this item. Revenue realized pursuant to these investments must be expended on health care services."

SECTION   ____.   Section 12-6-3620(A) of the 1976 Code, as added by Act 386 of 2006, is amended to read:

"(A)   For taxable years beginning after 2006, there is allowed a tax credit against the tax imposed pursuant to Section 12-6-530 for twenty-five percent of the costs incurred by a taxpayer for use of

Renumber sections to conform.

Amend title to conform.

Senator ALEXANDER explained the amendment.

The amendment was adopted.

Senator O'DELL proposed the following amendment (3749R017.WHO), which was adopted:

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

/     SECTION   ___.   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 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

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   ___.   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:

(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

(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, this SECTION takes effect on the first day of the month succeeding the month in which this act is approved by the Governor.       /

Renumber sections to conform.

Amend title to conform.

Senator LEATHERMAN explained the amendment.

The amendment was adopted.

On motion of Senator LEATHERMAN, 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.

H. 3032 (Word version) -- Reps. Viers and Sandifer: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, TO CREATE A STUDY COMMITTEE TO STUDY APPROPRIATE ENFORCEMENT OF FEDERAL AND STATE LAWS RELATING

Senator MARTIN, as Chairman of the Committee on Rules, moved under Rule 32B to take up the Bill immediately after the Bills on Special Order.

The motion was adopted.

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

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

S. 91 (Word version) -- Senators Campsen, Ritchie and Knotts: A BILL TO ENACT THE RESEARCH AND DEVELOPMENT TAX CREDIT REFORM ACT BY AMENDING SECTION 12-6-3415, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CORPORATE INCOME TAX AND CORPORATE LICENSE TAX CREDIT ALLOWED TAXPAYERS CLAIMING A FEDERAL INCOME TAX CREDIT FOR RESEARCH ACTIVITY, SO AS TO ALLOW THE CREDIT AGAINST ANY INCOME TAX IMPOSED PURSUANT TO THE SOUTH CAROLINA INCOME TAX ACT.

The House returned the Bill with amendments.

Senators LEATHERMAN and SETZLER proposed the following amendment (91R003.HKL), which was adopted:

Amend the bill, as and if amended, SECTION 2, page 2, by striking line 14 and inserting:

/   (3)   has invested five hundred million dollars in capital investment in this     /

Renumber sections to conform.

Amend title to conform.

Senator LEATHERMAN explained the amendment.

The amendment was adopted.

Senators McCONNELL and MOORE proposed the following amendment (JUD0091.004), which was adopted:

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

/   SECTION   ____.   Section 11-35-40(2) of the 1976 Code, as last amended by Act 376 of 2006, is amended to read:

"(2)   Application to State Procurement. This code applies to every procurement or expenditure of funds by this State under contract acting through a governmental body as herein defined irrespective of the source of the funds, including federal assistance monies, except as specified in Section 11-35-40(3) (Compliance with Federal Requirements) and except that this code does not apply to gifts, to the issuance of grants, or to contracts between public procurement units, except as provided in Article 19 (Intergovernmental Relations). It shall also apply to the disposal of state supplies as provided in Article 15 (Supply Management). No state agency or subdivision thereof may sell, lease, or otherwise alienate or obligate telecommunications and information technology infrastructure of the State by temporary proviso and unless provided for in the general laws of the State."   /

Renumber sections to conform.

Amend title to conform.

Senator McCONNELL explained the amendment.

The amendment was adopted.

Senator ALEXANDER proposed the following amendment (AGM\18882MM07), which was adopted:

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

/ SECTION   ____.A.   Article 13, Chapter 60, Title 12 is amended by adding:

"Section 12-60-3312.   Except as otherwise provided by law or proper judicial order, all proceedings and records of a contested case hearing of the Administrative Law Court of a matter covered by the South Carolina Revenue Procedures Act are open to the public."

B.     This section takes effect upon approval by the Governor and applies to all tax decisions and associated information filed of record, whether or not the decision in the contested case hearing was issued before, on, or after that date.

SECTION   ____.A.   Section 6-34-40(C)(3) and (5) of the 1976 Code, as added by Act 285 of 2006, is amended to read:

"(3)   The credit earned pursuant to this subsection by a general partnership, limited partnership, limited liability company, or any other entity taxed as a partnership pursuant to Subchapter K of the Internal Revenue Code must be passed through to its partners and may be allocated among any of its partners, including without limitation, an allocation of the entire credit to one partner, in a manner agreed by the partners that is consistent with Subchapter K of the Internal Revenue Code. As used in this subsection, the term 'partner' means a partner, member, or owner of an interest in the pass through entity, as applicable.

(5)   The South Carolina Department of Revenue shall may promulgate regulations to verify the site's eligibility in accordance with the provisions of this chapter."

B.     This section takes effect upon approval by the Governor and Subsection (C)(3) applies for rehabilitation expenses for eligible sites placed in service after June 30, 2006.

SECTION   ____.   Section 12-2-20 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:

"Section 12-2-20.   As used in this title and in other titles which that provide for taxes administered by the department, and unless otherwise required by the context, the term:

(1)   'person' includes an any individual, a trust, estate, partnership, receiver, association, company, limited liability company, corporation, or any other entity or group; and

(2) 'individual' means a human being."

SECTION   ____.   Section 12-6-40(C) of the 1976 Code, as last amended by Act 89 of 2001, is further amended to read:

"(C)   If a taxpayer complies with the provisions of Internal Revenue Code Section 367 (Foreign Corporations), it is not necessary for the taxpayer to obtain the approval of the department. The A taxpayer filing a paper return shall attach a copy of the approval received from the Internal Revenue Service to its next South Carolina income tax return. A taxpayer filing an electronic return shall keep a copy of the approval with his tax records."

SECTION   ____.A.   Section 12-6-545(E)(1) of the 1976 Code, as last amended by Act 386 of 2006, is further amended to read:

"(1)   Notwithstanding item (A)(1)(ed) of this section, if a taxpayer owns an interest in one or more pass-through businesses that have a total gross income of less than one million dollars and taxable income

B.     This section takes effect upon approval by the Governor and applies to tax years beginning after December 31, 2005.

SECTION   ____.A.   Section 12-6-1140(10) of the 1976 Code, as last amended by Act 242 of 2006, is further amended to read:

"(10)(a)   a deduction calculated as provided in this item for a volunteer firefighter, rescue squad member, volunteer member of a Hazardous Materials (HAZMAT) Response Team, reserve police officer, Department of Natural Resources deputy enforcement officer, or member of the State Guard not otherwise eligible for this exemption.

(b)   An individual may receive only one deduction pursuant to this item. The Board of Economic Advisors annually shall estimate a maximum deduction that may be permitted under this section for a taxable year based on an individual income tax revenue loss of three million one hundred thousand dollars attributable to this deduction and shall certify that maximum deduction to the Department of Revenue and for the applicable taxable year, the maximum deduction amount must not exceed the lesser of the certified estimate or three thousand dollars.

(c)(i)   Only a volunteer earning a minimum number of points pursuant to Section 23-9-190 is eligible for this deduction unless otherwise provided in this item.

(ii)   In the case of a reserve police officer and in lieu of minimum points determining eligibility, this deduction is allowed only if the reserve police officer's coordinator-supervisor certifies in writing to the officer that the officer met all requirements of Chapter 28, Title 23 applicable to a reserve police officer for the entire taxable year.

(iii)   In the case of a Department of Natural Resources deputy enforcement officer and in lieu of minimum points determining eligibility, this deduction is allowed only if the deputy enforcement officer's supervisor certifies in writing to the officer that the officer met all requirements of Section 50-3-315 for the entire taxable year.

(iv)   In the case of a member of the State Guard and in lieu of minimum points determining eligibility, this deduction is allowed only if the State Guard member completes a minimum of sixteen hours of training or drill each month, equating to one hundred ninety-two hours a year, and the member's commanding officer certifies in writing to the member that the member met these requirements.

(d)   These certifications from supervisors of taxpayers claiming the deduction must be on a form approved by the Department of Revenue that must be filed with the officer's or member's tax return for the exemption to be claimed department. The department may require a copy of the certification be attached to the taxpayer's income tax return or otherwise be made available to the department."

B.     This section takes effect upon approval by the Governor and applies to taxable years beginning after 2005.

SECTION   ____.A.   Section 12-6-3360(H) of the 1976 Code, as last amended by Act 277 of 2000, is further amended to read:

"(H)   A credit claimed under pursuant to this section but not used in a taxable year may be carried forward for fifteen years from the taxable year in which the credit is earned by the taxpayer. Credits which that are carried forward must be used in the order earned and before jobs credits claimed in the current year. A taxpayer who earns credits allowed by this section and who also is eligible for the moratorium provided in Section 12-6-3365 3367 may claim the credits and may carry forward unused credits beginning after the moratorium period expires."

B.   This section takes effect upon approval by the Governor and applies to taxable years beginning after 2005.

SECTION   ____.A.   Section 12-6-3360(M)(1) of the 1976 Code, as last amended by Act 384 of 2006, is further amended to read:

"(1)   'Taxpayer' means a sole proprietor, partnership, corporation of any classification, limited liability company, or association taxable as a business entity that is subject to South Carolina taxes as contained in Sections Section 12-6-510 and, Section 12-6-530, Chapter 11 of Title 12, and or Chapter 7 of Title 38."

B.   This section takes effect upon approval by the Governor.

SECTION   ____.A.   Section 12-6-3360(M)(10) of the 1976 Code is amended to read:

"(10)   'Corporate office facility' means a corporate headquarters that meets the definition of a 'corporate headquarters' contained in Section 12-6-3410(J)(1). The corporate headquarters of a general contractor licensed by the South Carolina Department of Labor,

B.   This section takes effect upon approval by the Governor and applies to tax years beginning after December 31, 2005.

SECTION   ____.   Section 12-6-3535(A) of the 1976 Code, as last amended by Act 386 of 2006, and the first paragraph of Section 12-6-3535(B), as last amended by Act 69 of 2003, is further amended to read:

"(A)   A taxpayer who is allowed a federal income tax credit pursuant to Section 47 of the Internal Revenue Code for making qualified rehabilitation expenditures for a certified historic structure located in this State is allowed to claim a credit against income taxes imposed by Sections 12-6-510 and 12-6-530 and license fees imposed by Chapter 20 of Title 12. For the purposes of this section, 'qualified rehabilitation expenditures' and 'certified historic structure' are defined as provided in the Internal Revenue Code Section 47 and the applicable treasury regulations. The amount of the credit is ten percent of the expenditures that qualify for the federal credit. To claim the credit allowed by this subsection, the a taxpayer filing a paper return must attach to the return a copy of the section of the federal income tax return showing the credit claimed, along with any other information that the Department of Revenue determines is necessary for the calculation of the credit provided by this subsection.

(B)   A taxpayer who is not eligible for a federal income tax credit under Section 47 of the Internal Revenue Code and who makes rehabilitation expenses for a certified historic residential structure located in this State is allowed to claim a credit against the tax imposed by this chapter. The amount of the credit is twenty-five percent of the rehabilitation expenses. To claim the credit allowed by this subsection, the a taxpayer filing a paper return must attach to the return a copy of the certification obtained from the State Historic Preservation Officer verifying that the historic structure has been rehabilitated in accordance with this subsection, along with all information that the Department of Revenue determines is necessary for the calculation of the credit provided by this subsection. A taxpayer filing an electronic return shall keep a copy of the certification with his tax records."

SECTION   ____.A.   Section 12-6-3585 of the 1976 Code, as added by Act 319 of 2006, is amended to read:

"Section 12-6-3585.   (A)   A taxpayer may claim as a credit against his state income tax imposed by Chapter 6 of Title 12, license fees

(B)   The amount of the credit is equal to one hundred percent of the amount of the taxpayer's qualified contributions to the Industry Partnership Fund, subject to the limitations in this section. The credit is nonrefundable.

(C)   The use of the credit is limited to the taxpayer's applicable income or premium tax or license fee liability for the tax year of the taxpayer after the application of all other credits. An unused credit may be carried forward ten tax years of the taxpayer after the end of the tax year of the taxpayer during which the qualified contribution was made.

(D)   A contribution is not a qualified contribution if it is subject to conditions or limitations regarding the use of the contribution.

(E)   'Taxpayer' means an individual, corporation, partnership, trust, bank, insurance company, or other entity having a state income or insurance premium tax or license fee liability who has made a qualified contribution.

(F)   To claim qualify for the credit, the taxpayer shall attach to the return a copy of retain a form provided by SCRA identifying the taxpayer's qualified contribution and the year and amount of credit for which the taxpayer qualifies. The Department of Revenue may require

(G)   The Department of Revenue department may require information and submissions by the taxpayer as it considers appropriate in relation to a taxpayer's claim of entitlement to the credit.

(H)   The merger, consolidation, or reorganization of a corporation where tax attributes survive does not create new eligibility in a succeeding corporation, but unused credits may be transferred and continued by the succeeding corporation. In addition, a corporation or partnership may assign its rights to its unused credit to another corporation or partnership if it transfers all, or substantially all, of the assets of the corporation or partnership or all, or substantially all, of the assets of the trade or business or operating division of the corporation or partnership to another corporation or partnership.

(I)   A taxpayer who claims the credit may not take a deduction in relation to the qualified contribution which gives rise to such credit."

B.     This section takes effect upon approval by the Governor and applies to tax years beginning after December 31, 2005.

SECTION   ____.A.   Section 12-6-3587(A) of the 1976 Code, as added by Act 386 of 2006, is amended to read:

"(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 installation of a solar energy heating or cooling system, or both, in a building in South Carolina 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 may not exceed three thousand five hundred dollars 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, the taxpayer may carry forward the excess for up to ten years."

B.     This section takes effect upon approval by the Governor and applies to installation costs incurred after December 31, 2005.

SECTION   ____.   Section 12-6-4980 of the 1976 Code, as last amended by Act 363 of 2002, is further amended to read:

"Section 12-6-4980.   (A)   The department, for good cause, may allow an extension of time not to exceed six months for filing returns under this chapter or the annual report under Chapter 20 of this title. A taxpayer requesting an extension of time for filing, on or before the date the return or annual report is due, shall submit a tentative return and pay the full amount of the tax and license fee due.

(B)   When a taxpayer is not required to make a payment of tax at the time of the extension, and the taxpayer has been granted an extension of time to file a federal income tax return, the taxpayer is not required to apply to the department for an extension of time to file the South Carolina return. The department shall accept a copy, if applicable, of a properly filed federal extension attached to the South Carolina return when filed. Any taxes shown to be due on a return required pursuant to this chapter must be paid at the time the return is due to be filed, without regard to any extension of time granted for filing the return.

(C)   An extension may not be granted to a taxpayer who has been granted an extension for a previous period and has not fulfilled the requirements of the previous period."

SECTION   ____.   Section 12-8-580(D)(2) of the 1976 Code is amended to read:

"(2)   The buyer is liable for the collection and payment of an amount due pursuant to this section. The A lending institution, real estate agent, and or closing attorney are is not liable for the collection of an amount due from the buyer pursuant to this section. However, a lending institution, real estate agent, or closing attorney that has in fact withheld taxes is required timely to remit the amount withheld within the timeframe provided in item (1) of this subsection."

SECTION   ____.   Section 12-8-590(D) of the 1976 Code is amended to read:

"(D)   A partnership required to withhold taxes on distributed or undistributed income shall make a return with each payment of tax to the department disclosing on the return the names, taxpayer identification number, the total amount of South Carolina taxable income paid or credited to each nonresident partner, the tax withheld for each nonresident partner, and any other information the department requires. The partnership shall furnish to each nonresident shareholder partner a written statement as required by Section 12-8-1540(A) as proof of the amount of his share of distributed or undistributed income that has been withheld."

SECTION   ____.   Section 12-8-2020 of the 1976 code is amended to read:

"Section 12-8-2020.   (A)   A refund or credit may be allowed for an overpayment of tax withheld under pursuant to this chapter to:

(1)   the withholding agent to the extent that the withholding agent did not withhold the overpayment amount from the taxpayer; or

(2)   the taxpayer to the extent that the overpayment was withheld from the taxpayer.

(B)   A refund or credit may be granted to a withholding agent who has withheld taxes in error if the withholding agent furnishes evidence that has refunded or unconditionally credited the amount erroneously withheld has been refunded or unconditionally credited to the taxpayer and the amount is refunded or credited to the taxpayer before the issuance of the original wage and tax statement for the calendar year.

(C)   The withholding agent or taxpayer shall apply for a refund or credit under this section within three years from the deemed date of the overpayment. A refund or credit is not allowed for less than one dollar. For purposes of this section, the deemed date of overpayment is the original due date of the return in which the withholding is credited against tax imposed by Chapter 6 of this title."

SECTION   ____.   Section 12-20-90 of the 1976 Code, as last amended by Act 89 of 2001, is further amended to read:

"Section 12-20-90.   The amount of the license fee required by Section 12-20-50 for a bank holding company, insurance holding company system, and savings and loan holding company must be measured by the capital stock and paid-in surplus of the holding company exclusive of the capital stock and paid-in surplus of a bank, insurer, or savings and loan association that is a subsidiary of the holding company. For the purposes of this section, 'bank', 'bank holding company', and 'subsidiary' of a bank holding company have the same definitions as in Section 34-24-20 34-25-10; 'insurer', 'insurance holding company system', and a 'subsidiary' of an insurance holding company system have the same definitions as in Section 38-21-10; and savings and loan 'association', 'savings and loan holding company', and a 'subsidiary' of a savings and loan company have the same definitions as in Section 34-28-300."

SECTION   ____.A.   Section 12-23-20(9) of the 1976 Code, as added by Act 335 of 2006, is amended to read:

"(9)   electricity used by a technology intensive facility as defined in Section 12-6-3360(M)(14)(b) and qualifying for the sales tax exemption provided pursuant to Section 12-36-2120(65), and the equipment and raw materials including, without limitation, fuel used by such qualifying facility to generate, transform, transmit, distribute, or manage electricity for use in such a facility. The running of the periods of limitation within which the department may assess taxes pursuant to Section 12-54-85 is suspended during the same time period it is suspended in item (65)(d) of Section 12-36-2120."

B.     This section takes effect June 6, 2006.

SECTION   ____.A.   Section 12-36-2120(66) of the 1976 Code, as added by Act 335 of 2006, is amended to read:

"(66)   electricity used by a technology intensive facility as defined in Section 12-6-3360(M)(14)(b) and qualifying for the sales tax exemption provided pursuant to item (65) of this section, and the equipment and raw materials including, without limitation, fuel used by such qualifying facility to generate, transform, transmit, distribute, or manage electricity for use in such a facility. The running of the periods of limitation within which the department may assess taxes pursuant to Section 12-54-85 is suspended during the same time period it is suspended in item (65)(d) of this section."

B.     This section takes effect June 6, 2006.

SECTION   ____.   Section 12-36-2510(C) of the 1976 Code, as last amended by Act 145 of 2005, is further amended to read:

"(C)   A seller that complies with the provisions of this section is relieved from any tax otherwise applicable if it is determined that the purchaser improperly claimed an exemption or exclusion by use of a certificate, provided the seller fraudulently did not fraudulently fail to collect or remit the tax, or both, or solicit a purchaser to participate in an unlawful claim of an exemption. The liability for any tax shifts to the purchaser who improperly claimed the exemption or exclusion by use of the certificate."

SECTION   ____.   Section 12-37-270(C) of the 1976 Code, as last amended by Act 386 of 2006, is further amended to read:

"(C)   The department shall may promulgate regulations necessary to carry out the provisions of this section."

SECTION   ____.   Section 12-54-70(a) of the 1976 Code is amended to read:

"(a)   The department may, for good cause, allow further time for the filing of returns or remitting of tax due, required under by the provisions of law administered by the department. The request for an extension may be granted only if the request is must be filed with the department on or before the day the return of the tax is due. Except as otherwise provided in this section, the department may allow an extension of time not to exceed six months. A tentative return is required reflecting one hundred percent of the anticipated tax to be paid for the taxable period, to be accompanied by a remittance for the tentative tax liability. Interest at the rate as provided under in Section 12-54-25, calculated from the date the tax was originally due, must be added to the balance due whenever an extension to file or to remit tax due is granted."

SECTION   ____.A.   Section 12-54-85(C) of the 1976 Code, as last amended by Act 399 of 2000, is further amended to read:

"(C)   Taxes may be determined and assessed after the thirty-six month limitation if:

(1)   there is fraudulent intent to evade the taxes;

(2)   the taxpayer failed to file a return or document as required by law;

(3)   there is a twenty percent understatement of the total of all taxes required to be shown on the return or document. The taxes in this case may be assessed at any time within seventy-two months from the date the return or document was filed or due to be filed, whichever is later. For the purpose of this item, the total of all taxes required to be shown on the return is the total of all taxes required to be shown on the return before any reduction for estimated payments, withholding payments, other prepayments, or discount allowed for timely filing of the return and payment of the tax due, but that amount must be reduced by another credit that may be claimed on the return;

(4)   the person liable for any taxes consents in writing, before the expiration of the time prescribed in this section for assessing taxes due, to the assessment of the taxes after the time prescribed by this section. ; or

(5)   the tax is a use tax imposed under Chapter 36 of this title, or a local use tax administered and collected by the department on behalf of a local jurisdiction, and the assessment of the use tax is the result of information received from, or as a result of exchange agreements with, other state or local taxing authorities, regional or national tax administration organizations, or the federal government. The use taxes in this case may be assessed at any time within twelve months after the department receives the information, but no later than seventy-two months after the last day the use tax may be paid without penalty."

B.     This section takes effect upon approval by the Governor and applies to all assessments issued after that date.

SECTION   ____.A.   Section 12-54-155(D)(2) of the 1976 Code, as last amended by Act 386 of 2006, is further amended to read:

"(2)   In the case of underpayment attributable to a substantial valuation misstatement with respect to charitable deduction property, item (1) does not apply if unless:

(a)   the claimed value of the property was based on a qualified appraisal made by a qualified appraiser; and

(b)   in addition to obtaining the appraisal, the taxpayer made a good faith investigation of the value of the contributed property."

B.     This section takes effect upon approval by the Governor and applies for tax periods beginning after December 31, 2006.

SECTION   ____.   Section 12-54-240(B)(12), as last amended by Act 145 of 2005, and (13) of the 1976 Code, is further amended to read:

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

(b)   disclosure to any a county auditor or county assessor of whether the four percent assessment pursuant to Section 12-43-220(c)(1) has been claimed by a taxpayer in any a county.

(13)   disclosure of information pursuant to Section 12-54-1010(c) or 12-54-1020(c) Reserved;"

SECTION   ____.A.   Section 12-54-240(B) of the 1976 Code, as last amended by Act 386 of 2006, is further amended by adding at the end:

"(26)   disclosure of information referred to in Section 12-60-3312."

B.     This section takes effect upon approval by the Governor and applies to all tax decisions and associated information filed whether the decision was issued before or after that date.

SECTION   ____.A.   Section 12-60-20 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:

"Section 12-60-20.   It is the intent of the General Assembly to provide the people of this State with a straightforward procedure to determine any a dispute with the Department of Revenue and a dispute concerning property taxes. The South Carolina Revenue Procedures Act must be interpreted and construed in accordance with, and in furtherance of, that intent."

B.     This section takes effect upon approval by the Governor.

SECTION   ____.   Section 12-60-90(C) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:

"(C)   Taxpayers may be represented during the administrative tax process by:

(1)   the same individuals who may represent them in administrative tax proceedings with the Internal Revenue Service pursuant to Section 10.3(a), (b), and (c), Section 10.7(a), (c)(1)(i) through (c)(1)(vi), and (c)(2 1)(viii), and Section 10.7(d) and (e) of United States Treasury Department Circular No. 230; and

(2)   a real estate appraiser who is registered, licensed, or certified pursuant to Chapter 60 of Title 40 during the administrative tax process in a matter limited to questions concerning the valuation of real property."

SECTION   ____.A.   Section 6-1-320(A) of the 1976 Code, as last amended by Act 388 of 2006, is further amended to read:

"(A)   Notwithstanding Section 12-37-251(E), a local governing body may increase the millage rate imposed for general operating purposes above the rate imposed for such purposes for the preceding tax year only to the extent of the increase in the average of the twelve monthly consumer price indexes for the most recent twelve-month period consisting of January through December of the preceding calendar year, plus, beginning in 2007, the percentage increase in the previous year in the population of the entity as determined by the Office of Research and Statistics of the State Budget and Control Board. If an entity experiences a reduction in population, the percentage change in population is deemed to be zero. However, in the year in which a reassessment program is implemented, the rollback millage, as calculated pursuant to Section 12-37-251(E), must be used in lieu of the previous year's millage rate."

SECTION   ____.   Article 5, Chapter 4, Title 12 is amended by adding:

"Section 12-4-535.   (A)   the department may issue a department determination directing the appropriate county official to comply with all applicable state law relating to the valuation, assessment, or taxation of property.

(B)   Within thirty days of the date the department determination is mailed or hand delivered, the county must respond in writing by first class mail or hand delivery to the department and state its agreement or disagreement with the department determination.

(C)   If the county disagrees with, or fails to respond to, the department determination, the department by its director or designee or the county governing body by resolution may request a contested case hearing before the Administrative Law Court within thirty days after the date the county disagreement notice was, or should have been, mailed or hand delivered. A request for a contested case hearing before the Administrative Law Court must be made in accordance with its rules.

(D)   The county governing body by resolution may request a department determination on any state law regarding the valuation, assessment, or taxation of property. Within thirty days of a request by

SECTION   ____.   Section 12-4-320 of the 1976 Code is amended by adding an appropriately numbered item at the end:

"( )   enter into an installment payment agreement with a taxpayer."

SECTION   ____.   Section 12-6-40(A)(1)(a) of the 1976 Code, as last amended by Act 386 of 2006, is further amended to read:

"(a)   Except as otherwise provided, 'Internal Revenue Code' means the Internal Revenue Code of 1986, as amended through December 31, 20052006, and includes the effective date provisions contained in it."

SECTION   ____.A.   Section 12-6-50(2) of the 1976 Code is amended to read:

"(2)   Sections 22 through 5354, 515, 853, 901 through 908, and 960 relating to tax credits;"

B.   This section takes effect upon approval by the Governor and applies to tax years beginning after December 31, 2005.

SECTION   ____.   Section 12-6-3360(B)(5)(f) and (h) of the 1976 Code, as added by Act 161 of 2005 and Act 386 of 2006, respectively, is amended to read:

"(f)   In a county in which one employer has lost at least 1,500 jobs in a calendar year, the credit allowed is one tier higher than the credit for which the county would otherwise qualify. The one-tier-higher credit allowed by this subsection is allowed for a three-year period beginning immediately following the year during which the jobs were lost five taxable years for jobs created in 2006, 2007, and 2008. This subsection does not apply to a job created in a county eligible for a higher tier pursuant to another provision of this section.

(h)   In a county in which one employer has lost at least 1,500 jobs in calendar year 2006, the credit allowed is three tiers higher than the credit for which the county would otherwise qualify. The three-tier-higher credit allowed by this subsection is allowed for five taxable years beginning for jobs created in 2007 and 2008. This subsection does not apply to a job created in a county eligible for a higher tier pursuant to another provision of this section."

SECTION   ____.A.   Section 12-6-3362(B) of the 1976 Code, as added by Act 389 of 2006, is amended to read:

"(B)   Beginning with the first full month wages are paid for year the new full-time jobs are created, the taxpayer is allowed a jobs tax credit in an amount equal to 8.33 percent of the maximum credit amount calculated pursuant to Section 12-6-3360(C)(2) each month, for not

B.   This section takes effect upon approval by the Governor and applies to tax years beginning after December 31, 2005.

SECTION   ____.   Section 12-6-3585(A) of the 1976 Code, as added by Act 319 of 2006, is amended to read:

"(A)   A taxpayer may claim as a credit against his state income tax imposed by Chapter 6 of Title 12, bank tax imposed by Chapter 11 of Title 12, license fees imposed by Chapter 20 of Title 12, or insurance premiums imposed by Chapter 7 of Title 38, or any combination of them, one hundred percent of an amount contributed to the Industry Partnership Fund at the South Carolina Research Authority, or an SCRA-designated affiliate, or both, pursuant to Section 13-17-88(E), up to a maximum credit of six hundred fifty thousand dollars for an individual taxpayer, not to exceed an aggregate credit of two million dollars for all taxpayers in tax year 2006; up to a maximum credit of one million three hundred thousand dollars for an individual taxpayer, not to exceed an aggregate credit of four million dollars for all taxpayers in tax year 2007; and up to a maximum credit of two million dollars for an individual taxpayer, not to exceed an aggregate credit of six million dollars for all taxpayers for each tax year beginning after December 31, 2007. For purposes of determining a taxpayer's entitlement to the credit for qualified contributions for a given tax year in which more than the applicable aggregate annual limit on the credit is contributed by taxpayers for that year, taxpayers who have made contributions that are intended to be qualified contributions earlier in the applicable tax year than other taxpayers must be given priority entitlement to the credit. The SCRA shall certify to taxpayers who express a bona fide intention of making one or more qualified contributions as to whether the taxpayer is entitled to that priority."

SECTION   ____.   A.   Section 12-36-2120(67) of the 1976 Code, as added by Act 384 of 2006, is amended to read:

"(67)   effective July 1, 2011, construction materials used in the construction of a new or expanded single manufacturing and or distribution facility, or one that serves both purposes, with a capital

B.   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 qualifying construction materials used in the construction of a single manufacturing or distribution facility, as provided in item (67), is four percent for sales from July 1, 2007, through June 30, 2008, three percent for sales from July 1, 2008, through June 30, 2009, two percent for sales from July 1, 2009, through June 30, 2010, and one percent for sales from July 1, 2010, through June 30, 2011.

SECTION   ____.   Section 12-54-200(C) of the 1976 Code, as last amended by Act 89 of 2001, is further amended to read:

"(C)   If A person is required to maintain a separate account, he must give the name of the financial institution, the account number, and other information the department requires. Taxes, penalties, and interest due must be withdrawn from the account by preprinted, consecutively numbered checks signed by a properly authorized officer, partner, manager, employee, or member of the taxpayer and made payable to the department. Monies deposited in the account may must not be commingled with other funds. The department, at its discretion, may apply Section 12-54-250, if the amount due from the taxpayer is twenty fifteen thousand dollars or more."

SECTION   ____.   Section 12-54-240(B) of the 1976 Code, as last amended by Act 386 of 2006, is further amended by adding appropriately numbered items at the end:

"( )   disclosure of information to the State Treasurer necessary for the administration and enforcement of the Uniform Unclaimed Property Act;

( )   exchange of information between the department, the Department of Commerce and its agency, the Venture Capital Authority, and the Department of Insurance for the purpose of registering and verifying the existence, possession, transfer, and use of tax credits pursuant to Chapter 45 of Title 11."

SECTION   ____.   Section 12-54-250(A) and (B) of the 1976 Code, as last amended by Act 163 of 2002, is further amended to read:

"(A)(1)   The South Carolina Department of Revenue may require, consistent with the cash management policies of the State Treasurer,

(2)   Evidence of the payment must be furnished to the department Initiation of the transfer of funds must occur on or before the due date of the tax as provided by law. If payment is made by means other than cash and settlement to the state's account does not occur on or before the banking day following the due date of the tax, payment is deemed to occur on the date settlement occurs.

(3)   Failure to make timely payment in immediately available funds or failure to provide evidence of payment in a timely manner subjects the taxpayer to penalties and interest as provided by law for delinquent or deficient tax payments.

(B)   The department by rule may prescribe provide alternative periodic filing and payment dates later than the dates otherwise provided by law for any taxes collected by the department in those instances where it is considered to be in the best interest interests of the State. An alternative date may must not be later than the last day of the month in which the tax was otherwise due."

SECTION   ____.   Section 12-60-430 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:

"(A)   If a taxpayer fails or refuses to make a report or to file a return required by the provisions of this title or required to be filed with the department, the department may make an estimate of the tax liability from the best information available and issue a proposed assessment for the taxes, including penalties and interest.

(B)   If the department determines a return or report filed by a taxpayer is frivolous, the department may make an estimate of the tax liability from the best information available and issue a proposed assessment for the tax, including penalties and interest."

SECTION   ____.   Section 11-11-156(D) of the 1976 Code, as added by Act 388 of 2006, is amended to read:

"(D)   Notwithstanding any other another provision of this section, in the case of a redevelopment project area created pursuant to Chapter 6, 7, or 12 of Title 31, the reimbursements provided pursuant to this section for the property tax exemption allowed by Section 12-37-220(B)(47) must include full payment to each taxing entity for the incremental property tax that, in the absence of such exemption, would otherwise be payable to such taxing entity with respect to owner-occupied residential real property located in a redevelopment project area pursuant to the tax increment financing law for cities, counties, or redevelopment authorities. Such payment for incremental property taxes shall be calculated in accordance with the applicable tax increment financing law and shall be based on the assessed value of, and the school operating millage rate otherwise applicable to, the owner-occupied residential property in question the city or county creating the redevelopment project area for amounts that would have been payable to the special tax allocation fund created pursuant to that chapter if no such exemption existed."

SECTION   ____.   Section 11-45-55(I) of the 1976 Code, as added by Act 125 of 2005, is amended by adding at the end:

"(3)   Notwithstanding Section 12-54-240(A), the authority, the Department of Commerce, the Department of Revenue, and the Department of Insurance may exchange information for the purpose of registering and verifying the existence, possession, transfer, and use of tax credits pursuant to this chapter."

SECTION   ____.   A taxpayer must not be penalized for following the provisions of Section 401 of the Federal Tax Increase Prevention and Reconciliation Act of 2005 for South Carolina purposes.

SECTION   ____.   A.   Article 17, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-2252.   (A)   A taxpayer whose principal business in this State is (i) manufacturing or a form of collecting, buying, assembling, or processing goods and materials within this State, or (ii) selling, distributing, or dealing in tangible personal property within this State, shall make returns and pay annually an income tax that includes its income apportioned to this State. Its income apportioned to this State is determined by multiplying the net income remaining after allocation pursuant to Sections 12-6-2220 and 12-6-2230 by the sales factor defined in Section 12-6-2280.

(B)   If a sales factor does not exist, the remaining net income is apportioned to the business's principal place of business."

B.   This section takes effect upon approval by the Governor and applies for taxable years beginning after 2006.

SECTION   ____.   A.   Article 17, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-2295.   (A)   The terms 'sales' as used in Section 12-6-2280 and 'gross receipts' as used in Section 12-6-2290 include, but are not limited to, the following items if they have not been separately allocated:

(1)   receipts from the sale or rental of property maintained for sale or rental to customers in the ordinary course of the taxpayer's trade or business including inventory;

(2)   receipts from the sale of accounts receivable acquired in the ordinary course of trade or business for services rendered or from the sale or rental of property maintained for sale or rental to customers in the ordinary course of the taxpayer's trade or business if the accounts receivable were created by the taxpayer or a related party. For purposes of this item, a related person includes a person that bears a relationship to the taxpayer as described in Section 267 of the Internal Revenue Code;

(3)   receipts from the use of intangible property in this State including, but not limited to, royalties from patents, copyrights, trademarks, and trade names;

(4)   net gain from the sale of property used in the trade or business. For purposes of this subsection, property used in the trade or business means property subject to the allowance for depreciation, real property used in the trade or business, and intangible property used in the trade or business which is:

(a)   not property of a kind that properly would be includible in inventory of the business if on hand at the close of the taxable year; or

(b)   held by the business primarily for sale to customers in the ordinary course of the trade or business;

(5)   receipts from services if the entire income-producing activity is within this State. If the income-producing activity is performed partly within and partly without this State, sales are attributable to this State to the extent the income-producing activity is performed within this State;

(6)   receipts from the sale of intangible property which are unable to be attributed to any particular state or states are excluded from the numerator and denominator of the factor.

(B)   The terms 'sales' as used in Section 12-6-2280 and 'gross receipts' as used in Section 12-6-2290 do not include:

(1)   repayment, maturity, or redemption of the principal of a loan, bond, or mutual fund or certificate of deposit or similar marketable instrument;

(2)   the principal amount received under a repurchase agreement or other transaction properly characterized as a loan;

(3)   proceeds from the issuance of the taxpayer's stock or from sale of treasury stock;

(4)   damages and other amounts received as the result of litigation;

(5)   property acquired by an agent on behalf of another;

(6)   tax refunds and other tax benefit recoveries;

(7)   pension reversions;

(8)   contributions to capital, except for sales of securities by securities dealers;

(9)   income from forgiveness of indebtedness; or

(10)   amounts realized from exchanges of inventory that are not recognized by the Internal Revenue Code."

B.   This section takes effect upon approval of this act by the Governor and applies for taxable years beginning after 2006.

SECTION   ____.A.   Section 12-6-2250 of the 1976 Code, as last amended by Act 384 of 2006, is further amended to read:

"Section 12-6-2250.   A taxpayer whose principal business in this State is (i) manufacturing or any form of collecting, buying, assembling, or processing goods and materials within this State, or (ii) selling, distributing, or dealing in tangible personal property within this State, shall make returns and pay annually an income tax that includes its income apportioned to this State. Its income apportioned to this State is determined by multiplying the net income remaining after allocation pursuant to Sections 12-6-2220 and 12-6-2230 by a fraction, the numerator of which is the number of sales made in South Carolina, and the denominator of which is the total number of sales for the taxpayer. However, if a sales ratio does not exist, the denominator of the fraction is the number of existing ratios, and where the sales ratio exists but the payroll ratio or the property ratio does not exist, the denominator of the fraction is the number of existing ratios plus one. The sales ratios must be determined in accordance with Section 12-6-2280. (A)   A taxpayer whose principal business in this State is (i) manufacturing or a form of collecting, buying, assembling, or processing goods and materials within this State, or (ii) selling,

(B)   For taxable years beginning in 2007 through 2010 only, a taxpayer in subsection (A) shall apportion income by using the method provided in Section 12-6-2250(A) and, if applicable, the method provided in Section 12-6-2252. If the calculation permitted in Section 12-6-2252 results in a reduction in income allocated to this State, the reduction is allowed as follows:

Taxable year beginning in:       Percentage of reduction allowed

2007                     20

2008                     40

2009                     60

2010                     80."

(C) For purposes of calculation of the license fee pursuant to Section 12-20-60, the percentage reduction is applied in the same manner as in subsection (B).

B.   This section takes effect upon approval of this act by the Governor and applies for taxable years beginning after 2006.

SECTION   ____.A.   Section 12-6-2280 of the 1976 Code is amended to read:

"Section 12-6-2280.   (A)   The sales factor is a fraction in which the numerator is the total sales of the taxpayer in this State during the taxable year and the denominator is the total sales of the taxpayer everywhere during the taxable year.

(B)   The term 'sales in this State' includes sales of goods, merchandise, or property received by a purchaser in this State other than the .United States Government. The place where goods are received by the purchaser after all transportation is completed is considered as the place at which the goods are received by the purchaser. Direct delivery into this State by the taxpayer to a person

(C)   The word 'sales' includes, but is not limited to:

(1)   rentals from tangible personal property located in this State which are not separately allocated; and

(2)   sales of intangible personal property and receipts from services if the entire income-producing activity is within this State. If the income-producing activity is performed partly within and partly without this State, sales are attributable to this State to the extent the income-producing activity is performed within this State. Sales of tangible personal property to the United States government are not included in the numerator or the denominator of the sales factor. Only sales for which the United States government makes direct payment to the seller pursuant to the terms of a contract constitute sales to the United States government.

(D)   For purposes of this section, items included in sales are as provided in Section 12-6-2295."

B.   This section takes effect upon approval of this act by the Governor and applies for taxable years beginning after 2006.

SECTION   ____.   Section 12-6-2290 of the 1976 Code is amended to read:

"Section 12-6-2290.   If the principal profits or income of a taxpayer are derived from sources other than those described in Section 12-6-2250 or Section 12-6-2310, the taxpayer shall apportion its remaining net income using a fraction in which the numerator is gross receipts from within this State during the taxable year and the denominator is total gross receipts from everywhere during the taxable year. For purposes of this section, items included in gross receipts are as provided in Section 12-6-2295. "

B.   This section takes effect upon approval of this act by the Governor and applies for taxable years beginning after 2006.

SECTION   ____.   A.     Section 12-6-1130(6) of the 1976 Code is amended to read:

"(6)   In computing the depletion deduction pursuant to Internal Revenue Code Sections 611 through 613, a taxpayer who allocates or apportions income under pursuant to the provisions of Article 17 of this chapter has the option of:

(a)   apportioning the deduction according to the appropriate South Carolina apportionment percentage provided in Sections 12-6-2250 12-6-2252 through 12-6-2310; or

(b)   allocating the deduction to South Carolina with respect to mines, oil and gas wells, and other natural deposits located in this State. The amount allocated to South Carolina may not exceed fifty percent of the net income apportioned to South Carolina by Sections 12-6-2250 12-6-2252 through 12-6-2310."

B.     Section 12-6-2240 of the 1976 Code is amended to read:

"Section 12-6-2240.   All income remaining after allocation under pursuant to Sections 12-6-2220 and 12-6-2230 is apportioned in accordance with Sections 12-6-2250 Section 12-6-2252, or one of the special apportionment formulas provided in Sections 12-6-2290 through 12-6-2310."

C.     Section 12-6-2290 of the 1976 Code is amended to read:

"Section 12-6-2290.   If the principal profits or income of a taxpayer are derived from sources other than those described in Section 12-6-2250 12-6-2252 or Section 12-6-2310, the taxpayer shall apportion its remaining net income using a fraction in which the numerator is gross receipts from within this State during the taxable year and the denominator is total gross receipts from everywhere during the taxable year. For purposes of this section, items included in gross receipts are as provided in Section 12-6-2295."

D.     Sections 12-6-2250, 12-6-2260, and 12-6-2270 are repealed.

E.   This section takes effect for tax years after 2010.

SECTION   ____.   Section 6-5-10(a) of the 1976 Code is amended to read:

"(a)   The governing body of any municipality, county, school district, or other local government unit or political subdivision and county treasurers may invest money subject to their control and jurisdiction in:

(1)   Obligations of the United States and its agencies thereof; , the principal and interest of which is fully guaranteed by the United States;

(2)   Obligations issued by the Federal Financing Bank, Federal Farm Credit Bank, the Bank of Cooperatives, the Federal Intermediate Credit Bank, the Federal Land Banks, the Federal Home Loan Banks, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, the Government National Mortgage Association, the Federal Housing Administration, and the Farmers Home Administration, if, at the time of investment, the obligor has a long-term, unenhanced, unsecured debt rating in one of the top two ratings categories, without regard to a refinement or gradation of rating category by numerical modifier or otherwise, issued by at least two nationally recognized credit rating organizations;

(23)(i)   General obligations of the State of South Carolina or any of its political units; or (ii) revenue obligations of the State of South Carolina or its political units, if at the time of investment, the obligor has a long-term, unenhanced, unsecured debt rating in one of the top two ratings categories, without regard to a refinement or gradation of rating category by numerical modifier or otherwise, issued by at least two nationally recognized credit rating organizations;

(34)   Savings and Loan Associations to the extent that the same are insured by an agency of the federal government;

(45)   Certificates of deposit where the certificates are collaterally secured by securities of the type described in (1) and (2) above held by a third party as escrow agent or custodian, of a market value not less than the amount of the certificates of deposit so secured, including interest; provided, however, such collateral shall not be required to the extent the same are insured by an agency of the federal government.

(56)   Repurchase agreements when collateralized by securities as set forth in this section.

(67)   No load open-end or closed-end management type investment companies or investment trusts registered under the Investment Company Act of 1940, as amended, where the investment is made by a bank or trust company or savings and loan association or other financial institution when acting as trustee or agent for a bond or other debt issue of that local government unit, political subdivision, or county treasurer if the particular portfolio of the investment company or investment trust in which the investment is made (i) is limited to obligations described in items (1), (2), (3) and (56) of this subsection, and (ii) has among its objectives the attempt to maintain a constant net asset value of one dollar a share and to that end, value its assets by the amortized cost method.

(78)   A political subdivision receiving Medicaid funds appropriated by the General Assembly in the annual general appropriations act may utilize appropriated funds and other monies generated by hospital operations to participate in principal protected investments in the form of notes, bonds, guaranteed investment contracts, debentures, or other contracts issued by a bank chartered in the United States or agency of a bank if chartered in the United States, financial institution, insurance company, or other entity which provides for full principal payment at the end of a contract term not to exceed twelve years if the issuer has received a rating in one of three highest general rating categories issued by no fewer than two nationally recognized credit rating organizations. No more than forty percent of

SECTION   ____.   Section 12-6-3620(A) of the 1976 Code, as added by Act 386 of 2006, is amended to read:

"(A)   For taxable years beginning after 2006, there is allowed a tax credit against the tax imposed pursuant to Section 12-6-530 for twenty-five percent of the costs incurred by a taxpayer for use of methane gas taken from a landfill to provide power energy for a manufacturing facility." /

Renumber sections to conform.

Amend title to conform.

Senator ALEXANDER explained the amendment.

The amendment was adopted.

Senator ALEXANDER proposed the following amendment (91R020.TCA), which was adopted:

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

/   Section ___.   A.   Section 12-6-3415(A) of the 1976 Code is amended to read:

"Section 12-6-3415.   (A)   A   taxpayer that claims a federal income tax credit pursuant to Section 41 of the Internal Revenue Code for increasing research activities for the taxable year is allowed a credit against any tax due pursuant to Section 12-6-530 this chapter or Section 12-20-50 equal to five percent of the taxpayer's qualified research expenses made in South Carolina. For the purposes of this credit, qualified research expenses has the same meaning as provided for in Section 41 of the Internal Revenue Code."

B.     This SECTION takes effect upon the approval by the Governor, and is applicable for tax years beginning after 2006.

SECTION ___.   Section 12-20-105 of the 1976 Code is amended to read:

"Section 12-20-105.   (A)   Any company subject to a license tax under Section 12-20-100 may claim a credit against its license tax liability for amounts paid in cash to provide infrastructure for an eligible project.

(B)(1) To be considered an eligible project for purposes of this section, the project must qualify for income tax credits under Chapter 6 of Title 12, withholding tax credit under Chapter 10 of Title 12, income tax credits under Chapter 14 of Title 12, or fees in lieu of property taxes under either Chapter 12 of Title 4, Chapter 29 of Title 4, or Chapter 44 of Title 12.

(2) If a project consists of an office, business, commercial, or industrial park which is owned or constructed by a county or political subdivision of this State when the qualifying improvements are paid for, the project does not have to meet the qualifications of item (1) to be considered an eligible project.

(C) For the purpose of this section, "infrastructure" means improvements for water, sewer, gas, steam, electric energy, and communication services made to a building or land that are considered necessary, suitable, or useful to an eligible project. These improvements include, but are not limited to:

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

(2) improvements to both public or private electric, natural gas, and telecommunications systems including, but not limited to, ones owned or leased by an electric cooperative, electric utility, or electric supplier, as defined in Chapter 27, Title 58;

(3) fixed transportation facilities including highway, road, rail, water, and air;

(4) for a qualifying project under subsection (B)(2), infrastructure improvements include industrial shell buildings and the purchase of land for an office, business, commercial, or industrial park which is owned or constructed by a county or political subdivision of this State. Nothing in this section shall prohibit the county or political subdivision from selling the industrial shell building or industrial park after the company has paid in cash to provide the infrastructure for an eligible project.

(D) A company is not allowed the credit provided by this section for actual expenses it incurs in the construction and operation of any building or infrastructure it owns, leases, manages, or operates.

(E) The maximum aggregate credit that may be claimed in any tax year by a single company is three hundred thousand dollars.

(F) The credits allowed by this section may not reduce the license tax liability of the company below zero. If the applicable credit originally earned during a taxable year exceeds the liability and is otherwise

(G) For South Carolina income tax and license purposes, a company that claims the credit allowed by this section is ineligible to claim the credit allowed by Section 12-6-3420."

B.     This SECTION takes effect upon the approval by the Governor, and is applicable for tax years beginning after 2003.

Renumber sections to conform.

Amend title to conform.

Senator ALEXANDER explained the amendment.

The amendment was adopted.

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

S. 449 (Word version) -- Senators Martin, Verdin, Sheheen, Leventis, Bryant and Knotts: A BILL TO AMEND CHAPTER 1, TITLE 56 OF THE 1976 CODE, BY ADDING SECTION 56-1-85, TO PROVIDE THAT THE STATE WILL NOT PARTICIPATE IN THE IMPLEMENTATION OF THE REAL ID ACT UNTIL THE FEDERAL GOVERNMENT MAKES CERTAIN MODIFICATIONS.

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 MARTIN proposed the following amendment (449R001.LAM), which was adopted:

Amend the bill, as and if amended, by deleting SECTION 2 in its entirety.

Renumber sections to conform.

Amend title to conform.

Senator MARTIN explained the amendment.

The amendment was adopted.

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

S. 610 (Word version) -- Senator Thomas: A BILL TO AMEND SECTION 44-53-360, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CONTROLLED SUBSTANCES PRESCRIPTIONS, INCLUDING LIMITATIONS ON QUANTITIES PRESCRIBED, SO AS TO PROVIDE THAT PRESCRIPTIONS FOR CONTROLLED SUBSTANCES IN SCHEDULES III THROUGH V MUST NOT EXCEED A NINETY-DAY SUPPLY.

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 CROMER proposed the following amendment (MS\7367SSP07), which was adopted:

Amend the bill, as and if amended, Article 3, Chapter 117, Title 44, as found in SECTION 4.A., page 2-7, by deleting SECTION 4.A. in its entirety and inserting:

/ SECTION   4.   A.     Chapter 117, Title 44 of the 1976 Code is amended by adding:

Section 44-117-310.   As used in this article:

(1)   'Board' means the State Board of Pharmacy.

(2)   'Confidential information' has the same meaning as provided in Section 40-43-30(8).

(3)   'Digital signature' means an electronic signature based upon cryptographic methods of originator authentication and computed by using a set of rules and set of parameters so that the identity of the signer and the integrity of the data can be verified.

(4)   'Electronic signature' means an electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.

(5)   'Electronic transmission' means transmission of information by electronic means, including computer to computer, computer to facsimile machine, electronic device to computer, e-mail, or the

(6)   'Practitioner' means a health care professional licensed in this State who is authorized by law to issue prescription drug orders.

(7)   'Prescription' or 'prescription drug order' means a lawful order of a practitioner for a drug or device for a specific patient that is communicated to a pharmacist.

(8)   'Routing company' means a business that electronically receives a prescription or any other confidential information from a prescriber and transmits the prescription or confidential information to or from the pharmacy specified by the patient in accordance with a contract between the routing company and the prescriber or a company that provides computer software for the management of the prescriber's practice.

Section 44-117-320.   (A)   A practitioner may electronically transmit a prescription to a pharmacy if all of these conditions are met:

(1)   A valid practitioner/patient relationship must exist.

(2)   The prescription must identify the transmitter's phone number, the time and date of transmission, and the pharmacy intended to receive the transmission and any other information required by federal or state law.

(3)   The prescription must be transmitted by the authorized practitioner or the practitioner's designated agent to the pharmacy of the patient's choice, and the prescription must be received only by a pharmacy, with no intervening person or entity having access to view, read, manipulate, alter, store, or delete the electronic prescription prior to its receipt at the pharmacy.

(4)   The prescription must be transmitted to the pharmacy of the patient's choice. If the pharmacy of the patient's choice is not equipped with the capability to accept an electronic prescription, the practitioner shall provide the patient with a written prescription, telephone an oral prescription, or transmit via facsimile to the pharmacy of the patient's choice.

(5)   The prescription must have the practitioner's electronic or digital signature or key code.

(6)   The prescription must be sent directly from the practitioner to the receiving pharmacy of the patient's choice. If an electronic prescription is printed out, it must possess an original handwritten signature before being delivered to a patient. If a prescription is a hard copy prescription drug order generated from electronic media, a prescribing practitioner's electronic or manual signature must be

(B)   An electronically transmitted prescription is deemed the original prescription drug order if it meets the requirements of this article and other applicable laws and regulations.

(C)(1)   Nothing in this article may be construed to prohibit a practitioner from using a routing company to transmit a prescription pursuant to this article, except that a routing company shall provide its tax identification number to the Board of Pharmacy before offering its services in this State.

(2)   A routing company:

(a)   may, for the purpose of verifying an audit conducted of the routing company, store any prescription or other confidential information it receives or transmits pursuant to this article in a form that is secure and ensures the confidentiality of the information in compliance with federal and state privacy law; and

(b)   may not add a provision to, delete a provision from, or otherwise modify a prescription or any other confidential information that it receives or transmits pursuant to this article.

Section 44-117-330.   All electronic equipment for receipt of prescription drug orders communicated by way of electronic transmission must have adequate security and system safeguards and must be maintained so as to ensure patient confidentiality and to ensure against unauthorized access or an intervening person or entity having access to view, read, manipulate, alter, store, or delete the electronic prescription prior to its receipt by the pharmacy of the patient's choice. The pharmacist shall exercise professional judgment regarding the accuracy, validity, and authenticity of the prescription drug order consistent with existing federal or state laws and regulations. Once the drug has been dispensed, any alterations in prescription drug order data must be documented, including the identification of the pharmacist responsible for the alteration.

Section 44-117-340.   (A)   All laws and regulations applicable to oral prescription drug orders apply to all computer to computer, computer to facsimile machine, electronic device to computer, e-mail, or the transmission of the exact visual image of a document by way of electronic equipment prescription orders.

(B)   A prescription order transmitted by computer to computer, computer to facsimile machine, electronic device to computer, e-mail, or the transmission of the exact visual image of a document by way of

(C)   A practitioner or practitioner's agent shall note any generic substitution instructions on the electronic prescription order transmitted computer to computer, computer to facsimile machine, electronic device to computer or e-mail. Such electronic prescription order may follow the format provided for in Section 40-43-86(H)(3) or any other format that clearly indicates the generic substitution instructions.

(D)   A pharmacist may dispense prescription orders transmitted by computer to computer, computer to facsimile machine, electronic device to computer, e-mail, or the transmission of the exact visual image of a document by way of electronic equipment only when a valid patient/physician relationship exists and the prescription has been signed by the prescribing practitioner and transmitted from the practitioner or a long-term care facility in compliance with all sections of this article.

(E)   The original document must be assigned the number of the prescription dispensed and maintained in the pharmacy records for at least two years.

(F)   The facsimile machine receiving prescription drug orders must be in the prescription department of the pharmacy to protect confidentiality and security.

Section 44-117-350.   (A)   Prescription information and other patient health care information received by a pharmacy must be maintained in a manner that protects the integrity and confidentiality of such information as provided by the State Board of Pharmacy in regulation.

(B)   A pharmacy shall provide a mechanism to prevent the disclosure of any information, confidential or otherwise, about patients that was obtained or collected by a pharmacist or pharmacy incidental to the delivery of pharmaceutical care other than as authorized in regulation.

(C)   The pharmacist-in-charge shall:

(a)   establish and maintain written policies and procedures for maintaining the integrity and confidentiality of prescription information and patient health care information. All employees of the pharmacy with access to this information must be required to comply with the established policies and procedures.

(b)   ensure that the requirements of this section are established and implemented.

Section 44-117-360.   The board may refuse to issue or renew, or may suspend, revoke, restrict the license or the registration of, or fine

Section 44-117-370.   A pharmacist or pharmacy must not provide a computer modem or other similar electronic device to a prescriber, health care facility, or any other third party or provider entity for the purpose of providing an incentive to the practitioner, health care facility, or third party or provider entity that refers patients to a particular pharmacy or department. This does not prohibit a hospital from providing in-house equipment for the use of practitioners and the hospital pharmacy to communicate within the system.

Section 44-117-380.   Entities that offer electronic services for a pharmacist or pharmacy must comply with Section 40-43-86(F) of the South Carolina Pharmacy Practice Act." /

Renumber sections to conform.

Amend title to conform.

Senator CROMER explained the amendment.

The amendment was adopted.

There being no further amendments, the Bill was read the third time, passed and ordered returned to the House, as amended.

S. 99 (Word version) -- Senators Sheheen, Malloy and Ford: A BILL TO AMEND SECTIONS 7-11-20 AND 7-13-15, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PARTY CONVENTIONS AND PARTY PRIMARY ELECTIONS CONDUCTED BY THE STATE ELECTION COMMISSION AND COUNTY ELECTION COMMISSIONS, SO AS TO PROVIDE THAT THE STATE ELECTION COMMISSION CONDUCT PRESIDENTIAL PREFERENCE PRIMARIES, THAT THE STATE COMMITTEE OF THE PARTY SET THE DATE AND THE FILING REQUIREMENTS FOR THE PRESIDENTIAL PREFERENCE PRIMARIES, TO

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.

Senator SHEHEEN proposed the following amendment (JUD0099.014), which was adopted:

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

/   SECTION   1.   Section 7-11-20 of the 1976 Code is amended to read:

"Section 7-11-20.   (A)   Except as provided in subsection (B), Party party conventions or party primary elections held by political parties certified as such by the State Election Commission under pursuant to the provisions of this Title title to nominate candidates for any of the offices to be filled in a general or special election shall must be conducted in accordance with the provisions of this Title title and in accordance with party rules not in conflict with the provisions of this Title title or of the Constitution and laws of this State or of the United States.

(B)(1)   AExcept as provided in item (2), a certified political party wishing to hold a presidential preference primary election may do so in accordance with the provisions of this title and party rules. However, notwithstanding any other provision of this title, the state committee of the party shall set the date and the hours that the polls will be open for the presidential primary election and the filing requirements. If a party

(2)   For the 2008 election cycle, if the state committee of a certified political party which received at least five percent of the popular vote in South Carolina for the party's candidate for President of the United States decides to hold a presidential preference primary election, the State Election Commission must conduct the presidential preference primary in accordance with the provisions of this title and party rules provided that a registered elector may cast a ballot in only one presidential preference primary. However, notwithstanding any other provision of this title, (a) the State Election Commission and the authorities responsible for conducting the elections in each county shall provide for cost-effective measures in conducting the presidential preference primaries including, but not limited to, combining polling places, while ensuring that voters have adequate notice and access to the polling places; and (b) the state committee of the party shall set the date and the filing requirements, including a certification fee. Political parties must verify the qualifications of candidates prior to certifying to the State Election Commission the names of candidates to be placed on primary ballots. The written certification required by this section must contain a statement that each certified candidate meets, or will meet by the time of the general election, or as otherwise required by law, the qualifications in the United States Constitution, statutory law, and party rules to participate in the presidential preference primary for which he has filed. Political parties must not certify any candidate who does not or will not by the time of the general election meet the qualifications in the United States Constitution, statutory law, and party rules for the presidential preference primary for which candidate desires to file, and such candidate's name must not be placed on a primary ballot. Political parties may charge a certification fee to persons seeking to be candidates in the presidential preference primary for the political party. A filing fee not to exceed twenty thousand dollars, as determined by the State Election Commission, for each candidate certified by a political party must be transmitted by the respective political party to the State Election Commission and must be used for conducting the presidential preference primaries.

(3)   The political party shall give written notice to the State Election Commission of the date set for the party's presidential

(4)   Nothing in this section prevents a political party from conducting a presidential preference primary for the 2008 election cycle pursuant to the provisions of Section 7-11-25."

SECTION   2.   Section 7-13-15 of the 1976 Code is amended to read:

"Section 7-13-15.   (A)(1)   Except for This section does not apply to municipal primaries,.

(2)   This section does not apply to presidential preference primary elections for the Office of President of the United States, which are provided for in Section 7-11-20(B).

(B)   all primaries for national offices, excluding the Office of President and all primaries for state offices, offices including more than one county, and countywide and less than countywide offices, specifically including, but not limited to, all school boards and school trustees, special purpose district offices, which include, but are not limited to, water, sewer, fire, soil conservation, and other similar district offices, must be conducted by the State Election Commission and the county election commissions on the second Tuesday in June of each general election year. Except as provided in subsection (A) or unless otherwise specifically provided for by statute or ordinance, the following primaries must be conducted by the State Election Commission and the county election commissions on the second Tuesday in June of each general election year:

(1)   primaries for national offices, excluding the presidential preference primaries for the Office of President of the United States, which are provided for in Section 7-11-20(B); and

(2)   primaries for:

(a)   state offices;

(b)   offices including more than one county;

(c)   countywide and less than countywide offices, specifically including, but not limited to, all school boards and school trustees; and

(d)   special purpose district offices, which include, but are not limited to, water, sewer, fire, soil conservation, and other similar district offices."

SECTION   3.   Section 7-11-25 of the 1976 Code is amended to read:

"Section 7-11-25.   Nothing Except for the provisions of Section 7-11-20 related to presidential preference primaries, nothing in this act chapter nor any other provision of law may be construed as either requiring or prohibiting the political parties a political party in this State from conducting, advisory primaries according to their the party's

SECTION   4.     Chapter 9, Title 7 of the 1976 Code is amended by adding:

"Section 7-9-110.   A political party or the State Election Commission may conduct a primary or election, without charge, in any facility that receives state funds for support or operation. The use of the facility, pursuant to the provisions of this section, is subject to the availability of the facility as determined by the facility's governing entity."

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

Renumber sections to conform.

Amend title to conform.

Senator SHEHEEN explained the amendment.

The amendment was adopted.

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

S. 493 (Word version) -- Senator Ryberg: A BILL TO AMEND CHAPTER 3, TITLE 56 OF THE 1976 CODE, TO PROVIDE THAT THE DEPARTMENT OF MOTOR VEHICLES MAY ISSUE OPERATION DESERT STORM-DESERT SHIELD VETERANS LICENSE PLATES, OPERATION ENDURING FREEDOM VETERANS LICENSE PLATES, AND OPERATION IRAQI FREEDOM VETERANS LICENSE PLATES.

The House returned the Bill with amendments.

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

Senator MALLOY proposed the following amendment (SWB\5334CM07), which was adopted:

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

/ SECTION   ___.   Section 56-3-8100 as last amended by Act 398 of 2006 is further amended to read:

"Section 56-3-8100.   (A)   Before the Department of Motor Vehicles produces and distributes a special license plate created by the General Assembly after January 1, 2006, it must receive:

(1)   four hundred prepaid applications for the special license plate or four thousand dollars from the individual or organization seeking issuance of the license plate;

(2)   a plan to market the sale of the special license plate which must be approved by the department; and

(3)   the emblem, a seal, or other symbol to be used for the plate and, if necessary, written authorization for the department to use a logo, trademark, or design that is copyrighted or registered. If the individual or organization seeking issuance of the plate submits four thousand dollars, the Comptroller General shall place that money into a restricted account to be used by the department to defray the initial cost of producing the special license plate.

(B)   The fee for all special license plates created by the General Assembly after January 1, 2006, is the regular biennial registration fee set forth in Article 5, Chapter 3 of this title plus an additional fee to be requested by the individual or organization seeking issuance of the plate. The initial fee amount requested can only be changed every five years from the first year the plate is issued. Each special license plate must be of the same size and general design of regular motor vehicle license plates. Each special license plate must be issued or revalidated for a biennial period which expires twenty-four months from the month the special license plate is issued.

(C)   Of the additional fee collected pursuant to this section, the Comptroller General shall place sufficient funds into a special restricted account to be used by the Department of Motor Vehicles to defray the expenses of producing and administering special license plates. Any of the remaining fee not placed in the restricted account must be distributed to an organization designated by the individual or organization seeking issuance of the license plate.

(D)   If the department receives less than three hundred biennial applications and renewals for a particular special license plate, it shall not produce additional special license plates in that series. The department shall continue to issue special license plates of that series until the existing inventory is exhausted.

(E)   If the department receives less than three hundred biennial applications and renewals for plates created pursuant to Article 12, Chapter 3, Title 56; Article 14, Chapter 3, Title 56; Article 31, Chapter 3, Title 56; Article 39, Chapter 3, Title 56; Article 40, Chapter 3, Title

(F)   The provisions contained in subsection (A)(1) and (2) do not apply to the production and distribution of the Korean War Veterans Special License Plates contained in Article 68, Chapter 3, Title 56, Gold Star Family Special License Plates contained in Article 99, Chapter 3, Title 56, or all future special license plates created by the General Assembly that recognize military veterans who have served this country."/

Renumber sections to conform.

Amend title to conform.

Senator MALLOY explained the amendment.

The amendment was adopted.

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

At 1:10 P.M., Senator MARTIN assumed the Chair.

H. 3232 (Word version) -- Reps. Breeland, Mack, Anderson, R. Brown, Clyburn, Hart, Hosey, Howard, Jefferson, Scott and Williams: A BILL TO AMEND SECTION 56-3-7750, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ISSUANCE OF FRATERNITY AND SORORITY SPECIAL LICENSE PLATES, SO AS TO PROVIDE FEES COLLECTED PURSUANT TO THIS SECTION MAY BE USED FOR ACADEMIC SCHOLARSHIPS, OR TO FUND PROGRAMS THAT SEND BOYS AND GIRLS WHO ARE AT LEAST EIGHT YEARS OLD AND NOT MORE THAN SIXTEEN YEARS OLD TO SUMMER CAMP, OR BOTH.

The House returned the Bill with amendments.

On motion of Senator GROOMS, the Senate concurred in the House amendments, and a message was sent to the House accordingly. Ordered that the title be changed to that of an Act and the Act enrolled for Ratification.

H. 3721 (Word version) -- Reps. Howard, Perry, Haskins, Witherspoon, Harrison, Brady, Walker and Merrill: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 44-7-380 SO AS TO PROVIDE THE REQUIREMENTS FOR A PERSON TO PRACTICE SURGICAL TECHNOLOGY AND TO PROVIDE AN EXCEPTION; AND BY ADDING SECTION 44-7-385 SO AS TO PROVIDE THAT AN OPERATING ROOM CIRCULATOR MUST BE A REGISTERED NURSE, AND TO PROVIDE THE CONDITIONS UNDER WHICH A SURGICAL TECHNOLOGIST MAY ASSIST IN PERFORMING OPERATING ROOM CIRCULATION DUTIES.

The House returned the Bill with amendments.

On motion of Senator HAYES, the Senate concurred in the House amendments and a message was sent to the House accordingly. Ordered that the title be changed to that of an Act and the Act enrolled for Ratification.

Pursuant to an invitation the Honorable Speaker and House of Representatives appeared in the Senate Chamber on May 31, 2007, at 1:30 P.M. and the following Acts and Joint Resolutions were ratified:

(R85, S. 20 (Word version)) -- Senators Elliott, Mescher, Cleary, Hutto, Lourie, Moore, Sheheen, Reese, Knotts, Leventis, Land, McGill, Rankin, Campsen, Grooms, Hawkins, Short and Scott: AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-71-280 SO AS TO REQUIRE HEALTH INSURANCE COVERAGE, INCLUDING COVERAGE UNDER THE STATE HEALTH PLAN, FOR AUTISM SPECTRUM DISORDER AND TO DEFINE "AUTISM SPECTRUM DISORDER" AS AUTISTIC DISORDER, ASPERGER'S SYNDROME, AND NOT OTHERWISE SPECIFIED PERVASIVE DEVELOPMENTAL DISORDER.
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(R86, S. 139 (Word version)) -- Senators Knotts and Elliott: AN ACT TO AMEND SECTION 12-37-224, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MOTOR HOMES WHICH QUALIFY AS A PRIMARY OR SECONDARY RESIDENCE FOR PURPOSES OF AD VALOREM PROPERTY TAX, SO AS TO INCLUDE A BOAT OR WATERCRAFT, OR A TRAILER USED FOR CAMPING AND RECREATIONAL TRAVEL PULLED BY A MOTOR VEHICLE AND TO REQUIRE THE FAIR MARKET VALUE OF A MOTOR HOME, A BOAT OR WATERCRAFT, OR TRAILER THAT MEETS THE REQUIREMENTS OF THIS ACT TO BE DETERMINED IN THE MANNER THAT MOTOR VEHICLES ARE VALUED FOR PROPERTY TAX PURPOSES.
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(R87, S. 235 (Word version)) -- Senators Hayes, Thomas and Knotts: AN ACT TO AMEND SECTIONS 34-26-110, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS OF THE SOUTH CAROLINA CREDIT UNION ACT, SO AS TO REVISE THE DEFINITION OF "DEPOSIT ACCOUNT"; 34-26-350, RELATING TO THE PRINCIPAL PLACE OF BUSINESS OF A CREDIT UNION, SO AS TO CLARIFY THAT THE CREDIT UNION MAY ESTABLISH AND CLOSE BRANCHES WITH THE APPROVAL OF THE BOARD OF FINANCIAL INSTITUTIONS; 34-26-420, RELATING TO POWERS INCIDENTAL TO THE PURPOSE OF CREDIT UNIONS, SO AS TO PROVIDE THAT THE POWERS GRANTED BY STATE LAW TO A STATE-CHARTERED CREDIT UNION SHALL NOT EXCEED THOSE FOR A FEDERALLY CHARTERED CREDIT UNION AND TO DELETE A REFERENCE TO A CREDIT UNION BEING GIVEN POWERS BY REGULATION; 34-26-500, AS AMENDED, RELATING TO THE REQUIREMENTS OF MEMBERSHIP OF A CREDIT UNION, SO AS TO DELETE THE PROVISION THAT A CREDIT UNION PRESENTLY DOES NOT HAVE A CREDIT UNION SERVICE AVAILABLE, AND PROVIDE THAT THE BOARD APPROVAL IS NOT NECESSARY TO ADD GROUPS WITH NOT MORE THAN TWO HUNDRED FIFTY POTENTIAL MEMBERS INSTEAD OF ONE HUNDRED; 34-26-605, RELATING TO THE BOARD OF A CREDIT UNION, SO AS TO PROVIDE THAT THE BYLAWS MAY OFFER THE OPTION OF USING LOAN OFFICERS INSTEAD OF A CREDIT COMMITTEE; 34-26-750, RELATING TO THE OWNERSHIP INTERESTS IN SHARE ACCOUNTS, SO AS TO

(R88, S. 334 (Word version)) -- Senators Leventis, Hayes, Knotts, Drummond, Anderson and Ford: AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 41-35-126 SO AS TO MAKE AN INDIVIDUAL ELIGIBLE FOR WAITING WEEK CREDIT FOR UNEMPLOYMENT COMPENSATION IF THE EMPLOYMENT SECURITY COMMISSION FINDS THAT THE INDIVIDUAL HAS LEFT WORK VOLUNTARILY TO RELOCATE BECAUSE OF THE TRANSFER OF A SPOUSE WHO HAS BEEN REASSIGNED FROM ONE MILITARY ASSIGNMENT TO ANOTHER UNDER CERTAIN CIRCUMSTANCES; AND TO AMEND SECTION 41-35-130, AS AMENDED, RELATING TO THE PAYMENT OF BENEFITS TO AN INSURED WORKER UNDER THE EMPLOYMENT SECURITY LAW, SO AS TO PROVIDE THAT LEAVING AN EMPLOYER BECAUSE OF THE TRANSFER OF A SPOUSE FROM ONE MILITARY ASSIGNMENT TO ANOTHER DOES NOT DISQUALIFY A PERSON FROM THESE BENEFITS.
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(R89, S. 367 (Word version)) -- Senators Hayes, Setzler, Matthews, Short, Fair, Richardson and Vaughn: AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-60-2545 SO AS TO PROVIDE THAT IF IN AN APPEAL OF A DECISION BY THE COUNTY ASSESSOR TO REMOVE THE AGRICULTURAL USE CLASSIFICATION THE TAXPAYER PREVAILS IN THE CONTESTED CASE HEARING AND THE ADMINISTRATIVE LAW JUDGE FINDS THAT THE ASSESSOR'S DECISION WAS UNREASONABLE, THEN THE COUNTY SHALL PAY THE TAXPAYER'S REASONABLE ATTORNEY'S FEES; TO AMEND SECTION 6-1-50, AS AMENDED, RELATING TO REPORTING BY COUNTIES AND MUNICIPALITIES TO THE OFFICE OF RESEARCH AND STATISTICS OF THE STATE BUDGET AND CONTROL BOARD, SO AS TO CHANGE THE REPORTING DATE; TO AMEND SECTION 6-1-320, AS AMENDED, RELATING TO THE LIMIT ON PROPERTY TAX MILLAGE INCREASES, SO AS TO PROVIDE THAT A REDUCTION IN POPULATION AND A DECLINE IN THE CONSUMER PRICE INDEX DOES NOT DECREASE THE APPLICABLE LIMIT AND TO PROVIDE THAT THIS MILLAGE INCREASE LIMIT DOES NOT AMEND OR REPEAL ANY MORE RESTRICTIVE LIMITS APPLICABLE IN OTHER LAW; TO AMEND SECTIONS 11-11-155 AND 11-11-156, RELATING TO THE HOMESTEAD EXEMPTION FUND AND THE MANNER IN WHICH THE SCHOOL DISTRICTS OF THE STATE RECEIVE REVENUES FROM THE HOMESTEAD EXEMPTION FUND, SO AS TO CLARIFY THE METHOD OF DETERMINING AND CALCULATING THESE PAYMENTS, PROVIDING THE SCHEDULE OF THE PAYMENTS TO SCHOOL DISTRICTS, SPECIFYING THE SOURCE OF THE TWO AND ONE-HALF MILLION DOLLAR MINIMUM PAYMENT TO A COUNTY FOR SCHOOL DISTRICTS IN THE COUNTY, AND SPECIFYING WHEN A REMAINING BALANCE IN THE HOMESTEAD EXEMPTION FUND IS REMITTED TO COUNTIES FOR PURPOSES OF THE COUNTY OPERATING MILLAGE PROPERTY TAX CREDIT FOR OWNER-OCCUPIED RESIDENTIAL PROPERTY; TO AMEND SECTION 12-37-670, AS AMENDED, RELATING TO THE OPTIONAL ACCELERATION OF LISTING REAL PROPERTY FOR PROPERTY TAX, SO AS TO REQUIRE A COUNTY ORDINANCE IMPLEMENTING THE ACCELERATION TO USE A QUARTERLY SCHEDULE,

(R90, S. 391 (Word version)) -- Senators Knotts, Elliott, Grooms, Drummond, Ford, Anderson, McGill and Mescher: AN ACT TO AMEND SECTION 17-5-50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO VACANCIES IN THE OFFICE OF CORONER, SO AS TO REVISE THE MANNER IN WHICH A VACANCY IS FILLED AND TO PROVIDE THE CHIEF MAGISTRATE OF THE COUNTY, OR HIS DESIGNEE, SHALL SERVE AS CORONER

(R91, S. 459 (Word version)) -- Senators Sheheen, Leventis, Lourie, Bryant, Ford, Knotts and Campsen: AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 154 TO TITLE 59 SO AS TO ENACT THE "JESSICA HORTON ACT" TO PROVIDE THAT CAMPUS POLICE OFFICERS SHALL NOTIFY AND WORK WITH THE STATE LAW ENFORCEMENT DIVISION ON THE INVESTIGATION OF A DEATH OR AN ALLEGED ACT OF CRIMINAL SEXUAL CONDUCT RESULTING FROM AN INCIDENT OCCURRING ON THE CAMPUS OF AN

(R92, S. 504 (Word version)) -- Senators Leatherman, Gregory, Courson, Bryant, Alexander, Verdin, Elliott, Ritchie and Hayes: AN ACT TO AMEND SECTION 6-9-40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE BUILDING CODE ADOPTION PROCEDURE, SO AS TO PROVIDE THAT THE PROCEDURE FOR MODIFYING AN EXISTING CODE IS THE SAME AS ADOPTING A CODE, AND TO PROVIDE THE PROCEDURE FOR AN EMERGENCY BUILDING CODE MODIFICATION.
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(R93, S. 518 (Word version)) -- Medical Affairs Committee: AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 44-37-50 SO AS TO PROVIDE THAT A HOSPITAL MUST MAKE AVAILABLE TO THE PARENTS OF A NEWBORN BABY A VIDEO PRESENTATION ON THE DANGERS OF SHAKING INFANTS AND INFORMATION ON THE IMPORTANCE OF INFANT CPR AND THAT THE HOSPITAL MUST REQUEST THAT THE MATERNITY PATIENT, FATHER, OR PRIMARY CAREGIVER VIEW THE VIDEO, TO PROVIDE THAT THE DIRECTOR OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL SHALL REVIEW ALL SUBMITTED VIDEOS AND SHALL APPROVE ACCEPTABLE VIDEOS, TO PROVIDE THAT THE VIDEO PRESENTATION MUST BE MADE AVAILABLE TO CHILDCARE FACILITIES AND CHILDCARE PROVIDERS AND THAT CHILDCARE FACILITIES MUST INCLUDE THIS VIDEO PRESENTATION IN THE TRAINING OF THE FACILITY'S CAREGIVERS, TO PROVIDE THAT THE DEPARTMENT MUST MAKE THE VIDEO AVAILABLE TO ANY INTERESTED PERSON AT COST, TO PROVIDE THAT THE DEPARTMENT SHALL ESTABLISH A PROTOCOL FOR HEALTH CARE PROVIDERS TO EDUCATE PARENTS OR PRIMARY CAREGIVERS ABOUT THE DANGERS OF SHAKING INFANTS AND YOUNG CHILDREN, TO PROVIDE THAT THE DEPARTMENT SHALL REQUEST PEDIATRIC HEALTH CARE PROVIDERS TO REVIEW THESE DANGERS WITH PARENTS OR CAREGIVERS ASSOCIATED WITH

(R94, H. 3135 (Word version)) -- Reps. J.E. Smith, Funderburk and Cotty: A JOINT RESOLUTION TO ESTABLISH A STUDY COMMITTEE TO DEVELOP A STATEWIDE COMPREHENSIVE SERVICE DELIVERY SYSTEM FOR PERSONS WITH EPILEPSY IN THIS STATE AND TO PROVIDE FOR THE MEMBERSHIP, DUTIES, AND RESPONSIBILITIES OF THE STUDY COMMITTEE.
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(R95, H. 3161 (Word version)) -- Reps. Walker, Mahaffey, Herbkersman, Cotty, Hagood, Scarborough and Stavrinakis: AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-67-105 SO AS TO PROVIDE FOR THE MAXIMUM SCHOOL BUS RIDE TIME OF EACH STUDENT AND ROUTING EFFICIENCY FOR EACH SCHOOL BUS; BY ADDING SECTION 59-67-108 SO AS TO PROVIDE FOR THOSE PERSONS WHO MAY DRIVE A SCHOOL BUS AND FOR THE REQUIRED TRAINING AND CERTIFICATION OF SCHOOL BUS DRIVERS; BY ADDING SECTION 59-67-415 SO AS TO PROVIDE THAT PARENTS ARE RESPONSIBLE FOR THE SAFETY, CONDUCT, AND TIMELY ARRIVAL OF THEIR CHILDREN TO, FROM, AND AT THE SCHOOL BUS STOP; TO AMEND SECTION 59-67-100, RELATING TO SCHOOL BUS SEATING SPACE AND STUDENTS ASSIGNED TO A SCHOOL BUS, SO AS TO PROVIDE THAT THE NUMBER OF STUDENTS ASSIGNED TO A SCHOOL BUS MUST NOT BE GREATER THAN THE MANUFACTURER CERTIFIED SEATING CAPACITY AND PROVIDE THAT ALL PASSENGERS TRANSPORTED MUST HAVE ADEQUATE SEATING AREA TO COMPLY WITH CERTAIN STANDARDS; TO AMEND SECTION 59-67-270, RELATING TO INSPECTION OF BUSES, SO AS TO PROVIDE THAT ALL PUBLICLY OWNED OR LEASED SCHOOL BUSES MUST BE INSPECTED AT LEAST ONCE ANNUALLY, TO PROVIDE THAT CERTAIN PRIVATELY OWNED SCHOOL BUSES MUST BE INSPECTED ANNUALLY, AND TO PROVIDE FOR THE MANNER OF INSPECTION; TO AMEND SECTION

(R96, H. 3319 (Word version)) -- Reps. M.A. Pitts, Pinson and Parks: AN ACT 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

(R97, H. 3510 (Word version)) -- Reps. Vick, M.A. Pitts, Lowe and Bedingfield: AN ACT TO AMEND SECTION 50-9-530, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MIGRATORY WATERFOWL STAMPS, SO AS TO PROVIDE THAT FOR THE PRIVILEGE OF HUNTING MIGRATORY WATERFOWL, A PERSON MUST PURCHASE A MIGRATORY WATERFOWL PERMIT, TO PROVIDE THAT THE DEPARTMENT OF NATURAL RESOURCES ALSO SHALL PRODUCE AN ANNUAL COMMEMORATIVE MIGRATORY WATERFOWL STAMP, AND TO PROVIDE FOR THE COST AND MANNER OF SALE OF THESE PERMITS AND STAMPS; TO AMEND SECTION 50-9-535, RELATING TO MIGRATORY GAME BIRD PERMITS, FEES, AND INTEGRATION WITH OTHER HUNTING LICENSES, SO AS TO PROVIDE THAT STATE RESIDENTS AT LEAST SIXTY-FOUR YEARS OF AGE AND WHO HOLD A LIFETIME HUNTING AND FISHING LICENSE ARE NOT REQUIRED TO HAVE A MIGRATORY GAME BIRD PERMIT; TO AMEND SECTION 50-11-20, AS AMENDED, RELATING TO THE MIGRATORY WATERFOWL COMMITTEE, SO AS TO FURTHER DEFINE THE RESPONSIBILITIES AND DUTIES OF THE MIGRATORY WATERFOWL COMMITTEE; AND TO ADD SECTION 50-11-22 SO AS TO MAKE IT UNLAWFUL WITHOUT A FEDERAL PERMIT TO HARM, DISTURB, OR TAKE ACTIVELY NESTING WATERFOWL, ITS NEST, OR EGGS OR TO DISTURB OR DAMAGE A WATERFOWL NEST BOX, AND PROVIDE PENALTIES FOR VIOLATION.
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(R98, H. 3659 (Word version)) -- Reps. Kirsh, Simrill, Owens, Scott and McLeod: AN ACT TO AMEND SECTION 12-33-245, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE EXCISE TAX ON ALCOHOLIC LIQUORS FOR ON-PREMISES CONSUMPTION, SO AS TO REQUIRE REVENUE FROM THE EXCISE TAX TO BE DISTRIBUTED IN FOUR EQUAL PAYMENTS TO STATE AGENCIES AND ENTITIES BASED ON PAYMENTS REMITTED IN FISCAL YEAR 2004-2005 AND TO

(R99, H. 3722 (Word version)) -- Reps. Scott, Govan, Rutherford, Whipper, Brantley, Agnew, Alexander, Allen, Anderson, Anthony, Bales, Breeland, G. Brown, R. Brown, Clyburn, Cobb-Hunter, Funderburk, Hart, Harvin, Hodges, Hosey, Howard, Jefferson, Jennings, Kennedy, Knight, Mack, McLeod, Miller, Mitchell, J.H. Neal, Ott, Parks, Sellers, Vick, Weeks and Williams: AN ACT TO AMEND CHAPTER 22, TITLE 40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE LICENSURE AND REGULATION OF ENGINEERS AND LAND SURVEYORS, SO AS TO, AMONG OTHER THINGS, ESTABLISH A STATE POLICY TO ENCOURAGE THE DEVELOPMENT AND PROMOTE THE ACCOUNTABILITY OF PROFESSIONAL ENGINEERS; TO PROVIDE STAGGERED TERMS FOR MEMBERS OF THE STATE BOARD OF REGISTRATION FOR PROFESSIONAL ENGINEERS AND SURVEYORS; TO REVISE THE CAP ON CIVIL FINES; TO AUTHORIZE THE BOARD TO WAIVE STATE LICENSING AND CREDENTIALING REQUIREMENTS DURING A STATE OF DECLARED PUBLIC EMERGENCY; TO PROVIDE FOR THE LICENSURE AND REGULATION OF SURVEYORS, RATHER THAN LAND SURVEYORS; TO ELIMINATE CATEGORY A ENGINEER LICENSURE AND TO PROVIDE THAT CATEGORY B ENGINEERS MAY CONTINUE TO PRACTICE UNTIL JULY 1, 2020, AT WHICH TIME CATEGORY B ENGINEERING CEASES TO EXIST; TO REVISE EDUCATIONAL REQUIREMENTS FOR LICENSURE AS AN ENGINEER AND FOR CERTIFICATION AS AN ENGINEER-IN-TRAINING; AND TO DELETE OBSOLETE PROVISIONS.
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(R100, H. 3990 (Word version)) -- Agriculture, Natural Resources and Environmental Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO HAZARDOUS WASTE MANAGEMENT REGULATIONS, DESIGNATED AS REGULATION DOCUMENT NUMBER 3096,

(R101, H. 3914 (Word version)) -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF MOTOR VEHICLES, RELATING TO DRIVER TRAINING SCHOOLS, DESIGNATED AS REGULATION DOCUMENT NUMBER 3093, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
L:\COUNCIL\ACTS\3914AC07.DOC

(R102, H. 3991 (Word version)) -- Reps. McLeod, Haley, Toole, Spires, Huggins, Ott, E.H. Pitts, Bingham, Ballentine and Frye: AN ACT 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.
L:\COUNCIL\ACTS\3991DW07.DOC

(R103, H. 4081 (Word version)) -- Rep. Cotty: AN ACT TO AMEND ACT 930 OF 1970, AS AMENDED, RELATING TO THE SCHOOL BOARD OF TRUSTEES FOR KERSHAW COUNTY, SO AS TO ALLOW THE SCHOOL BOARD TO ADJUST ITS SALARY AND EXPENSES, BY RESOLUTION, TO BE EFFECTIVE ON THE COMMENCEMENT DATE OF THE TERMS OF TWO OR MORE MEMBERS ELECTED AT THE NEXT GENERAL ELECTION FOLLOWING THE ADOPTION OF THE RESOLUTION.
L:\COUNCIL\ACTS\4081SSP07.DOC

THE SENATE PROCEEDED TO THE INTERRUPTED DEBATE.

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

The Senate proceeded to a consideration of the Bill, the question being the adoption of Amendment No. 1A (JUD3124.001) proposed by Senator MALLOY and previously printed in the Journal of Wednesday, May 30, 2007.

Senator MALLOY proposed the following Amendment No. 1A (JUD3124.001), which was ruled out of order:

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

/   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 HAYES raised a Point of Order that the amendment was out of order inasmuch as it was not germane to the Bill under Rule 24A.

Senator MALLOY spoke on the Point of Order.

Senator HAYES spoke on the Point of Order.

The ACTING PRESIDENT sustained the Point of Order.

Senator MALLOY spoke on the amendment.

Senator KNOTTS spoke on the amendment.

Amendment No. 1A was ruled out of order.

At 1:26 P.M., the PRESIDENT assumed the Chair.

Senator VERDIN proposed the following Amendment No. 2 (3124R013.DV), which was withdrawn:

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

/   SECTION   ___.   Section 59-40140(B) of the 1976 Code is amended to read:

"(B)   The South Carolina Public Charter School District shall receive and distribute state funds to the charter school as determined by the following formula: the current year's base student cost, as funded by the General Assembly, multiplied by the weighted students enrolled in the charter school, which must be subject to adjustment for student attendance and state budget allocations. Except that for each student that transfers to the charter school from a failing public school, the South Carolina Public Charter School district shall receive and distribute to the charter school the weighted pupil amount of all state, county, and school district funds attributable to the transferring student. For purposes of this section, a '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. These state funds are in addition to other funds to be received and distributed by the South Carolina Public Charter School District pursuant to subsections (C) and (D) of this section and Section 59-40-220(A). However, the South Carolina Public Charter School District may not retain more than two percent of its gross revenue for its internal administrative and operating expenses."     /

Renumber sections to conform.

Amend title to conform.

Senator VERDIN explained the amendment.

Senator SHORT raised a Point of Order that the amendment was out of order inasmuch as it was not germane to the Bill under Rule 24A.

The PRESIDENT took the Point of Order under advisement and the ACTING PRESIDENT subsequently overruled the Point of Order.

At 1:45 P.M., with Senator VERDIN retaining the floor, on motion of Senator MARTIN, the Senate receded from business until 3:00 P.M.

The Senate reassembled at 3:15 P.M. and was called to order by the PRESIDENT.

At 3:15 P.M., Senator MARTIN assumed the Chair.

At 3:15 P.M., Senator LEVENTIS made the point that a quorum was not present. It was ascertained that a quorum was not present.

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

Alexander                 Anderson                  Bryant
Campsen                   Cleary                    Courson
Cromer                    Fair                      Ford
Grooms                    Hayes                     Jackson
Leatherman                Leventis                  Lourie
Malloy                    Martin                    Matthews
McConnell                 McGill                    Moore
O'Dell                    Peeler                    Pinckney
Reese                     Ryberg                    Scott
Setzler                   Sheheen                   Short
Thomas                    Vaughn                    Verdin
Williams

A quorum being present, the Senate resumed.

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

The Senate resumed consideration of the Bill, the question being the adoption of Amendment No. 2 (3124R013.DV) proposed by Senator VERDIN.

The ACTING PRESIDENT took up the Point of Order raised by Senator SHORT that the amendment was out of order inasmuch as it was not germane to the Bill under Rule 24A.

Senator VERDIN spoke on the Point of Order.

The ACTING PRESIDENT overruled the Point of Order.

Senator VERDIN explained Amendment No. 2.

On motion of Senator VERDIN, with unanimous consent, Amendment No. 2 was withdrawn.

Senator RITCHIE proposed the following Amendment No. 4 (NBD\11736SD07), which was adopted:

Amend the bill, as and if amended, by striking subsection (F) of Section 59-62-50 of the 1976 Code, as contained in SECTION 1 and inserting:

/(F)   A parent who applies under this chapter and whose child is approved to enroll in a school outside of his school attendance area of his resident district but whose child fails to attend the school is ineligible to apply again for enrollment for a period of one year absent good cause shown. Good cause shall be determined by the board of the local school district of the applicable school./

Renumber sections to conform.

Amend title to conform.

Senator RITCHIE explained the amendment.

The amendment was adopted.

Senator RITCHIE proposed the following Amendment No. 5 (NBD\11737SD07), which was adopted:

Amend the bill, as and if amended, by striking subsection (B) of Section 59-62-50 of the 1976 Code, as contained in SECTION 1 and inserting:

/(B)(1)   Each school district of the State shall participate in public school open enrollment consistent with this chapter.

(2)   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 shall request a particular school or program as part of the application.

(3)   If a parent desires to transfer a child to a school within the parent and child's district of residence but not within the child's attendance area or zone, the parent shall make application therefor in the same manner provided in this chapter for interdistrict transfers.

(4)   Nothing herein prevents applications to enroll in more than one school.   /

Amend the bill further, as and if amended, by adding Section 59-62-65 immediately after Section 59-62-60, as contained in SECTION 1 to read:

/   Section 59-62-65.   Students under this chapter, subject to capacity and the other requirements of this chapter, shall be permitted to transfer to a school outside their attendance area within their district or to a

Amend the bill further, as and if amended, by striking Section 59-62-70(B)(1) of the 1976 Code, as contained in SECTION 1 and inserting:

/   (1)   accept students at a particular school residing outside the school's attendance area in excess of five percent of the school's highest average daily membership in any year over the preceding ten-year period. Accepting students residing outside of the attendance area for a particular school must be phased in at a yearly increase each year for the first three years of one percent of the school's previous year's average daily membership with the increase to be five percent in year four computed as provided above. Enrolled students residing outside of the school's attendance zone must continue to be counted in the receiving school's acceptance percentage until the student is no longer enrolled in a receiving school;   /

Amend the bill further, as and if amended, by striking / district, / on the first line of item (1) of subsection (D) of Section 59-62-70 of the 1976 Code, as contained in SECTION 1.

Amend the bill further, as and if amended, by striking subsection (E) of Section 59-62-70 of the 1976 Code, as contained in SECTION 1 and inserting:

/   (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 schools exceeds twenty percent of the sending district's enrollment, the sending district must concur with any additional students transferring from the school to attend a receiving school. If a school's transfer 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.   /

Renumber sections to conform.

Amend title to conform.

Senator RITCHIE explained the amendment.

The amendment was adopted.

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

At 3:44 P.M., Senator ANDERSON made the point that a quorum was not present. It was ascertained that a quorum was present.

The Senate resumed.

Senators HAYES, THOMAS and SHORT proposed the following Amendment No. 9 (NBD\11743AC07), which was adopted:

Amend the bill, as and if amended, by deleting Section 59-62-100 on page 10 and inserting:

/Section 59-62-100. 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. /

Renumber sections to conform.

Amend title to conform.

Senator HAYES explained the amendment.

The amendment was adopted.

Senator GROOMS proposed the following Amendment No. 10 (3124R020.LKG), which was adopted:

Amend the bill, as and if amended, on page 2, by striking lines 41 - 43 and on page 3, by striking lines 1 - 3, and inserting:

/     (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 may be included in the calculation of capacity and must not include transfers permitted by federal law.   /

Renumber sections to conform.

Amend title to conform.

Senator GROOMS explained the amendment.

Senator HAYES spoke on the amendment.

The amendment was adopted.

Senators RITCHIE and SHORT proposed the following Amendment No. 11 (GGS\22924SD07), which was adopted:

Amend the bill, as and if amended, by striking item (4), subsection (B) of Section 59-62-50 of the 1976 Code and inserting:

/   (4)   If a local school board by the last day of February notifies an applicant that their application for enrollment in a particular school has been denied due to a lack of capacity in that school, the school board in the denial notice shall also notify the applicant of any remaining schools in the district with the capacity to accept additional students seeking to enroll under this chapter. In this case, the applicant has an additional fifteen days from receipt of the notice to reapply seeking enrollment in one of these schools with capacity and the local board within fifteen days after receipt of the new application must act thereon.   /

Renumber sections to conform.

Amend title to conform.

Senator MATTHEWS explained the amendment.

The amendment was adopted.

There being no further amendments, the question then was the second reading of the Bill.

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

Alexander                 Bryant                    Campsen
Cleary                    Courson                   Cromer
Elliott *                 Fair                      Gregory *
Grooms                    Hawkins *                 Hayes
Knotts *                  Leatherman                Lourie
Martin                    Matthews                  McConnell

O'Dell                    Peeler                    Ritchie
Ryberg                    Scott                     Setzler
Sheheen                   Short                     Thomas
Vaughn                    Verdin

Anderson                  Ford                      Jackson
Leventis                  Malloy                    McGill
Moore                     Pinckney                  Reese
Williams

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

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

S. 355 (Word version) -- Senators Grooms, Richardson, Verdin, Campsen and Vaughn: A BILL TO PROVIDE FOR THE RESTRUCTURING OF THE DEPARTMENT OF TRANSPORTATION. (ABBREVIATED TITLE)

Senator McCONNELL was recognized to give a report to the body regarding the work of the Committee of Conference on S. 355.

H. 3575 (Word version) -- Reps. Young, Harrell, Anthony, Clyburn, Lucas, J.M. Neal, Owens, E.H. Pitts, Taylor, White, Chellis, Gullick, R. Brown, Stavrinakis, Hagood and Scarborough: A BILL TO PROVIDE FOR THE RESTRUCTURING OF THE DEPARTMENT OF TRANSPORTATION. (ABBREVIATED TITLE)

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

There was no objection.

Senator McCONNELL proposed the following Amendment No. 1 (3575R001.GFM), which was adopted:

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

/     SECTION   1.   Section 1-30-105 of the 1976 Code is amended to read:

"Section 1-30-105.   (A)   Effective on July 1, 1993, the following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities as well as the employees, funds, property, and all contractual rights and obligations associated with any such agency, except for those subdivisions specifically included under another department, are hereby transferred to and incorporated in and shall be administered as part of the Department of Transportation to be initially divided into divisions for Mass Transit, Construction and Maintenance, Engineering and Planning, Finance and Administration; provided, however, that the State Highway Commission as constituted on June 30, 1993, under the provisions of Title 56, shall be the governing authority for the department until February 15, 1994, or as soon as its successors are elected or appointed and qualified, whichever is later:

Department of Highways and Public Transportation, except the Motor Vehicle Division, which was established as the Department of Motor Vehicles by Section 56-1-5, and the State Highway Patrol, formerly provided for at Section 56-1-10, et seq.

(B)   The Commission of the Department of Transportation constituted, on the effective date of this subsection, shall continue to serve until the requirements of Section 57-1-380 are met, at which time the commission is abolished and the Department of Transportation Board, as established in Chapter 1 of Title 57, is the governing authority for the department."

SECTION   2.   Section 1-3-240(C)(1) of the 1976 Code is amended to read:

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

(a)   Workers' Compensation Commission;

(b)   Reserved Department of Transportation Board;

(c)   Ethics Commission;

(d)   Election Commission;

(e)   Professional and Occupational Licensing Boards;

(f)   Juvenile Parole Board;

(g)   Probation, Parole and Pardon Board;

(h)   Director of the Department of Public Safety;

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

(j)     Chief of State Law Enforcement Division;

(k)   South Carolina Lottery Commission;

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

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

SECTION   3.   Chapter 1 of Title 57 of the 1976 Code is amended to read:

Section 57-1-10.   For the purposes of this title, the following words, phrases, and terms are defined as follows:

(1)   'Commission' 'Board' means the administrative and governing body of the Department of Transportation.

(2)   'Department' means the Department of Transportation (DOT).

(3)   'Director' 'Executive Director' means the chief administrative officer of the Department of Transportation.

(4)   'Chief Highway Engineer' means the person selected by the board as provided in Section 57-1-410(B).

Section 57-1-20.   The Department of Transportation is established as an administrative agency of state government which is comprised of a Division of Mass Transit; a Division of Construction Engineering and Planning; and a Division of Finance and Administration. Each division of the Department of Transportation shall have such functions and powers as provided for by law.

Section 57-1-30.   (A)   The department shall have as its functions and purposes the systematic planning, construction, maintenance, and operation of the state highway system and the development of a statewide mass transit system that is consistent with the needs and desires of the public.

(B)   The department shall coordinate all state and federal programs relating to highways among all departments, agencies, and other bodies politic and legally constituted agencies of this State and the performance of such other duties and matters as may be delegated to it pursuant to law. The goal of the department is to provide adequate, safe, and efficient transportation services for the movement of people and goods.

Section 57-1-35.   The members of the board and employees of the department are subject to the provisions of Chapter 13 of Title 8, the State Ethics Act, and the provisions of Chapter 78 of Title 15, the South Carolina Tort Claims Act.

Section 57-1-40.   (A)   It is unlawful for a member of the commission board or an engineer, agent, or other employee, acting for or in behalf of the department or commission board, to accept or agree to accept, receive or agree to receive, or ask or solicit, either directly or indirectly, with the intent to have his decision or action on any question, matter, cause, or proceeding which at the time may be pending or which by law may be brought before him in his official capacity or in his place of trust or profit influenced, any:

(1)   money;

(2)   contract, promise, undertaking, obligation, gratuity, or security for the payment of money or for the delivery or conveyance of anything of value;

(3)   political appointment or influence, present, or reward;

(4)   employment; or

(5)   other thing of value.

A person violating the provisions of subsection (A) is guilty of a felony and, upon conviction, must be imprisoned not more than five years and is disqualified forever from holding any office of trust or profit under the Constitution or laws of this State.

(B)   It is unlawful for a person to give or offer to give, promise, or cause or procure to be promised, offered, or given, either directly or indirectly, to a member of the commission board or an engineer, agent, or other employee acting for or on behalf of the commission board or department with the intent to have his decision or action on any question, matter, cause, or proceeding which at the time may be

(1)   money;

(2)   contract, promise, undertaking, obligation, gratuity, or security for the payment of money or for the delivery or conveyance of anything of value;

(3)   political appointment or influence, present, or reward;

(4)   employment; or

(5)   other thing of value.

A person violating the provisions of subsection (B) is guilty of a felony and, upon conviction, must be imprisoned not more than five years and is disqualified forever from holding any office of trust or profit under the Constitution or laws of this State.

Section 57-1-50.   The assent of the State is hereby given to the terms and provisions of any act providing for federal aid to the states for the construction of highways and other related transportation projects. The good faith of the State is hereby pledged to provide sufficient funds to meet the requirements of said federal act, so as to acquire the benefits thereof.

Section 57-1-60.   (A)   The Governor, in addition to other duties and responsibilities conferred upon him by the Constitution and laws of this State, is charged with the responsibility for the administration of the state's highway safety programs and is further charged with the duty of contracting and doing all other things necessary on behalf of this State and, in so doing, to work with federal and state agencies, agencies private and public, interested organizations, and with individuals to effectuate that purpose. The Governor shall be the official of this State having the ultimate responsibility for dealing with the federal government with respect to highway safety transportation programs and activities. To that end the Governor shall coordinate the activities of any and all departments and agencies of this State and its subdivisions.

(B)(1)   The Department of Transportation Board, in conjunction with the Chief Highway Engineer, must develop a methodology for determining how to design the Statewide Transportation Improvement Plan (STIP) that includes, but is not limited to, the schedule of priorities for all construction projects with a projected cost of over ten million dollars, bridge replacement, major intersection improvements, widenings, interchanges, transportation earmarks, construction and scheduled repair of weigh stations, rest areas, and welcome centers and funds allocated to complete those projects. The Statewide

(2)   In developing the methodology, the department must include, but is not limited to, consideration of the following criteria:

(a)   financial viability, including a life cycle analysis of estimated maintenance and repair costs over the expected life of the project;

(b)   public safety;

(c)   potential for economic development;

(d)   traffic volume;

(e)   truck traffic;

(f)   the pavement quality index;

(g)   alternative transportation solutions;

(h)   consistency with local land use plans;

(i)     environmental impact; and

(j)     federal requirements for designing and setting priorities for the Statewide Transportation Improvement Plan (STIP).

(3)   The department shall conduct one or more public hearings to receive input prior to adopting a methodology. Any public hearing must include the opportunity for the public to address board members and staff or a hearing officer in a format so that comments are heard by the general public attending the hearing. A recording of the public hearing and documents received as public comment must be available to the public as provided in Chapter 4 of Title 30, the South Carolina Freedom of Information Act.

(4)   The methodology must be submitted to the Joint Transportation Review Committee for review and comment as provided in Section 57-1-730(9).

(5)(a)   Following review of the methodology by the Joint Transportation Review Committee, the department must promulgate the methodology as a regulation under the provisions of Article 3 of Chapter 23 of Title 1, the State Administrative Procedures Act. The methodology is effective only after the regulation is approved by the General Assembly as provided in Section 1-23-120, Section 1-23-125, and Section 1-23-126. The methodology must not be promulgated as an emergency regulation under the provisions of Section 1-23-130. The approved methodology must be used in designing the Statewide Transportation Improvement Plan (STIP) until the board determines that the methodology must be revised. If the methodology is revised by the board, the methodology must be approved as provided in this subsection prior to becoming effective and used to design the Statewide

(b)   The department shall conduct one or more public hearings to receive input prior to developing the Statewide Transportation Improvement Plan (STIP). If required by federal regulations, the department must conduct a public hearing in each county affected to allow the department to share information regarding the project with the local community and to allow the local community to address its concerns with department board members and staff. Any public hearing must include the opportunity for the public to address board members and staff or a hearing officer in a format so that comments are heard by the general public attending the hearing. A recording of the public hearing and documents received as public comment must be available to the public as provided in Chapter 4 of Title 30, the South Carolina Freedom of Information Act.

(C)(1)   The Executive Director is charged with evaluating and approving the routine operation and maintenance requests or emergency repairs that are needed for existing roads and bridges that are not included in the Statewide Transportation Improvement Plan (STIP).

(2)   Any request made under this subsection for resurfacing, installation of new signals, curb cuts on primary roads, bike lanes, or construction projects under ten million dollars must be reviewed by the Chief Highway Engineer who must certify in writing to the Executive Director that the request is needed based upon objective and quantifiable factors before work may proceed.

(3)(a)   For purposes of this section 'routine operation and maintenance' includes, but is not limited to, signage of routes, pavement marking, replacement and installation of guard rails, repair and installation of signals, 'chip seal' of existing roads, enhancement projects such as streetscaping, adopt an interchange, bike lanes, curb cuts, installation of overhead message boards and cameras, research

(b)   For purposes of this section 'emergency repairs' means, but is not limited to, unforeseen deterioration of roads, bridges, or equipment due to accidents, natural disasters, or other causes that could not have been expected or that pose an immediate danger to the public.

Section 57-1-65.   (A)   At each board meeting the Executive Director must provide a detailed written report of all:

(1)   requests that he has received since the last board meeting for routine operation and maintenance or emergency repairs, his decision concerning those requests, and a status report on all approved requests; and

(2)   pending projects certified by the Chief Highway Engineer and the status of those projects, if there has been any material change in the status since the last board meeting.

(B)   The board must review the report and make findings as to whether the requests approved by the Executive Director meet the needs of the public based upon objective and quantifiable factors.

(C)   The board may question the Executive Director concerning the approval or denial of any request and the process the Executive Director employed to reach his decision. The board may also request additional information concerning any request and further investigate any request, approval, or denial of a project by the Executive Director. The Executive Director must fully cooperate with any request made of him or his office by the board regarding any further investigation undertaken by the board.

(D)   The text of the Executive Director's written report and the findings made by the board must be included in the board meeting minutes. A list of all projects certified since the last meeting of the board by the Chief Highway Engineer, together with an explanation of the objective and quantifiable factors used to justify his certification, must also be included in the board meeting minutes.

Section 57-1-70.   It is the sense of the General Assembly that the Department of Transportation should comply with Section 105(f) of the Federal Aid Highway Act. The department is directed to effectuate and assure the compliance through contract documents and regulations as may be necessary and such input from the Governor's Office (Office of Small and Minority Business Assistance) in the promulgation of the regulations.

Section 57-1-310.   The congressional districts of this State are constituted and created Department of Transportation districts of the State, designated by numbers corresponding to the numbers of the respective congressional districts. The Commission of the Department of Transportation shall be composed of one member from each transportation district elected by the delegations of the congressional district and one member appointed by the Governor, upon the advice and consent of the Senate, from the State at large. Such elections or appointment, as the case may be, shall take into account race and gender so as to represent, to the greatest extent possible, all segments of the population of the State; however, consideration of these factors in making an appointment or in an election in no way creates a cause of action or basis for an employee grievance for a person appointed or elected or for a person who fails to be appointed or elected.

(A)   On and after the effective date of this section, the Department of Transportation's administrative and governing authority is a board composed of seven members, one member elected from each congressional district of the State and one member appointed by the Governor, with the advice and consent of the Senate, from the state at large.

(B)   (1)   Candidates for election to the board must be screened by the Joint Transportation Review Committee, as provided in Article 7 of this chapter, and determined to meet the qualifications contained in subsection (C) of this section before being nominated by the review committee and eligible for election by the appropriate legislative delegation.

(2)   The Senate Transportation Committee must determine whether the at-large appointee meets the qualifications of subsection (C) and report its findings to the Senate. Unless the Senate Transportation Committee finds a gubernatorial appointee qualified, the appointee must not be confirmed by the Senate.

(C)   The qualifications that each board member must possess, include, but are not limited to:

(1)   reside in South Carolina and, in the case of a member representing a congressional district, reside in the congressional district he represents; and

(2)   have a background of substantial duration and expertise in at least one of the following:

(a)   transportation issues;

(b)   finance;

(c)   accounting;

(d)   engineering; or

(e)   law.

(D)   The review committee may find a candidate qualified even if does not have a background of substantial duration and expertise as provided by item (C)(2), if the review committee finds that the candidate possesses other outstanding qualifications or expertise that would greatly contribute to the board's overall performance of its duties and obligations.

(E)   No member of the General Assembly or member of his immediate family shall be elected or appointed to the board while the member is serving in the General Assembly; nor shall a member of the General Assembly or a member of his immediate family be elected or appointed to the board for a period of four years after the member either:

(1)   ceases to be a member of the General Assembly; or

(2)   fails to file for election to the General Assembly in accordance with Section 7-11-15.

(F)   A person that served on the Department of Transportation Commission may be elected to serve on the board if he is otherwise qualified.

Section 57-1-320.   (A) A county that is divided among two or more Department of Transportation congressional districts, for purposes of electing a commission member, is deemed to be considered in the district which contains the largest number of residents from that county.

(B) No county within a Department of Transportation district shall have a resident commission member for more than one consecutive term successive terms and in no event shall any two persons from the same county serve as a commission member simultaneously except as provided hereinafter.

Section 57-1-325.   (A) Legislators residing in representing a portion of a the congressional district shall meet, as required by subsection (C), upon written call of a majority of the members of the delegation of each district at a time and place to be designated in the call for the purpose of electing a commissioner board member to represent the district. A majority present, either in person or by written proxy, of the delegation from a given congressional district constitutes a quorum for the purpose of electing a district commissioner board member. The delegation must use a weighted voting formula in the election. No person may be elected commissioner who fails to receive a majority of the weighted

(B)   The delegation must be organized by the election of a chairman and a secretary, and the delegations of each congressional district shall adopt such rules as they consider proper to govern the election. Any absentee may vote by written proxy. When the election is completed, the chairman and the secretary of the delegation shall immediately transmit the name of the person elected to the Secretary of State who shall issue to the person, after he has taken the usual oath of office, a certificate of election as commissioner a board member. The Governor shall thereupon issue a commission to the person, and pending the issuance of the commission, the certificate of election is sufficient warrant to the person to perform all of the duties and functions of his office as commissioner a board member. Each commissioner elected board member shall serve until his successor is elected and qualified.

(C)   An election held to choose a district board member must be held no earlier than one week and no later than three weeks after the Joint Transportation Review Committee files its report of the qualifications of the candidates with the Clerk of the Senate and the Clerk of the House of Representatives.

Section 57-1-330.   (A)   Beginning February 15, 1994, commissioners must be elected by the legislative delegation of each congressional district. For the purposes of electing a commission member, a legislator shall vote only in the congressional district in which he resides. All commission elected board members must serve for a term of office of four years, except as provided in subsection (B), which expires on February fifteenth of the appropriate year as provided in this section. Commissioners shall continue to serve until their successors are elected and qualify, provided that a commissioner may only serve in a hold-over capacity for a period not to exceed six months. Any vacancy occurring in the office of commissioner an elected board member must shall be filled by election in the manner provided in this article chapter for the unexpired term only. No person is eligible to serve as a commission an elected board member who is not a resident of that the congressional district he represents at the time of his appointment, . except that the The at-large commission board member may be appointed from any county in the State regardless of whether unless another commissioner board member is serving from that county. Failure by a commission an elected board member to maintain residency in the district for which he is elected shall result in

(B)   The terms of the initial Board members of the commission initially elected appointed from congressional districts are as follows: shall complete the term of office for which the commissioner representing the corresponding congressional district was elected. Thereafter, board members shall serve a term of four years.

(1)   commission members appointed to represent odd-numbered congressional districts--two years; and

(2)   commission members appointed to represent even-numbered congressional districts--four years.

(C)   The at-large commissioner shall serve at the pleasure of the Governor for a term of four years.

(D)   All board members may be removed from office as provided in Section 1-3-240(C)(1).

Section 57-1-340.   Each commission board member, within thirty days after his election or appointment, and before entering upon the discharge of the duties of his office, shall take, subscribe, and file with the Secretary of State the oath of office prescribed by the Constitution of the State.

Section 57-1-350.   (A) The commission board may adopt an official seal for use on official documents of the department.

(B) The commission board shall elect a chairman and adopt its own rules and procedures and may select such additional officers to serve such terms as the commission board may designate.

(C) Commissioners Board members must be reimbursed for official expenses as provided by law for members of state boards and commissions as established in the annual general appropriation act.

(D)   All board members are eligible to vote on all official business that comes before the board.

Section 57-1-360.   The board shall hire appropriate legal and administrative staff as the board feels necessary to carry out the functions required of the board. Any employees hired pursuant to this section shall serve at the pleasure of the board.

Section 57-1-370.   The board has authority to award all federal enhancement grants. Annually, the board must submit a report to the Joint Transportation Review Committee describing the number of federal enhancement grants that were awarded and the recipients of the federal enhancement grants.

Section 57-1-380.   (A)   The Joint Transportation Review Committee, established pursuant to Article 7 of this chapter, must meet

(B)   Commissioners legally holding office on the Department of Transportation Commission on the effective date of this act to serve as initial board members may file a notice of intention to seek election to the board.

(C)   Notwithstanding the provisions of Section 1-3-210, the initial at-large board member appointed by the Governor shall serve in an interim capacity pending confirmation by the Senate. If the appointment is made while the Senate is not is session, then the Governor must report the appointment of the initial at-large board member to the Senate and must forward a formal appointment during the 2008 regular session. An interim appointment made pursuant to this section must be transmitted to the Senate pursuant to Section 1-3-215. If the Senate does not advise and consent to the interim appointment of the initial at-large board member by sine die of the 2008 session, the office is vacant and the interim appointment must not serve in hold over status, notwithstanding any other provision of law to the contrary. A subsequent interim appointment of a different person to a vacancy created by a failure of the Senate to grant confirmation to the original interim appointment expires on the second Tuesday in January following the date of such subsequent interim appointment and the office shall be vacant.

(D)   No later than thirty days after the final initial board member is elected or appointed, as the case may be, the board must meet and organize. Following the initial board meeting, the board chairman must immediately file with the Secretary of State certification the board has met and organized.

(E)   The Department of Transportation Commission is abolished effective on the date that the certification required by subsection (C) is filed with the Secretary of State and the powers, duties, and functions of the commission are devolved upon the board.

Section 57-1-410.   (A)   The commission Governor shall employ a director appoint with the advice and consent of the Senate an Executive

(B)   The board shall appoint, with the advice and consent of the Senate, a Chief Highway Engineer who shall serve for a term of two years and who may be removed by the board only for malfeasance, misfeasance, incompetency, absenteeism, conflicts of interest, misconduct, persistent neglect of duty in office, or incapacity. A person appointed to this position shall have, at a minimum, a baccalaureate degree in civil engineering and any other experience the board may require. The Chief Highway Engineer, in conjunction with the board, must develop the methodology for determining how to design the Statewide Transportation Improvement Plan (STIP) and design the Statewide Transportation Improvement Plan (STIP) as provided in this chapter. In addition, the Chief Highway Engineer shall have any other duties, powers, functions, and responsibilities authorized by the board or provided by law. The Chief Highway Engineer shall have such staff and support as may be authorized and funded by the board and receive such compensation as may be established under the provisions of Section 8-11-160 and for which funds have been authorized in the general appropriation act.

(C)(1)   There is created an Office of Internal Audit that must establish, implement, and maintain the exclusive internal audit function of all departmental activities. The board shall appoint a Chief Internal Auditor to manage and operate the Office of Internal Audit. The Chief Internal Auditor shall serve for a term of two years and may be removed by the board only for malfeasance, misfeasance, incompetency, absenteeism, conflicts of interest, misconduct, persistent neglect of duty in office, or incapacity. The Chief Internal Auditor must be a Certified Public Accountant and possess any other experience the board may require. The audits performed by the office must comply with recognized governmental auditing standards. The department must timely produce all books, papers, correspondence, memoranda, and other records considered necessary in connection with an internal audit. The department must, at its own expense, provide appropriate office space within its headquarters building and facility service, including janitorial, utility and telephone services, computer

(2)   The board is vested with the exclusive management and control of the Office of Internal Audit. All final audit reports must be submitted to the board before being made public.

Section 57-1-430.   (A)   The director Executive Director is charged with the affirmative duty to must carry out the policies of the commission, and to administer the day-to-day affairs of the department, to direct the implementation of the Statewide Transportation Improvement Plan (STIP) and the statewide mass transit plan, and to ensure the timely completion of all projects certified by the Chief Highway Engineer, and routine operation and maintenance requests, and emergency repairs. and may exercise all powers belonging to the commission within the guidelines and policies established by the commission, when the commission is not in session. He must represent the department in its dealings with other state agencies, local governments, special districts, and the federal government. The Executive Director must prepare a budget for the department that must be approved by the board and a copy of which must be submitted to the General Assembly.

(B)   For each division, the director Executive Director may employ such personnel and prescribe their duties, powers, and functions as he considers necessary and as may be authorized by statute and for which funds have been authorized in the annual general appropriation act.

Section 57-1-440.   The director Executive Director shall have the exclusive authority to employ a chief counsel and such staff attorneys and support staff as are necessary to represent the department in legal matters, condemnation procedures, and other such litigation. Any extra legal services that may be required shall be performed by attorneys selected by the director Executive Director. The department is authorized to retain independent adjusters for purposes of investigating and adjusting claims and suits resulting from motor vehicle damage and personal injury damage programs involving department liability exposure and recovery potential. Expenses for the administration and implementation of this section shall be paid for from the state highway fund.

Section 57-1-450.   The director Executive Director shall appoint a deputy director for each division of the department who shall serve at the pleasure of the director Executive Director and shall recommend the salary for each deputy director as allowed by statute or applicable law.

Section 57-1-490.   The department shall be audited by a certified public accountant or firm of certified public accountants once each year to be designated by the State Auditor. The designated accountant or firm of accountants shall issue audited financial statements in accordance with generally accepted accounting principles, and such financial statements shall be made available annually by October fifteenth to the General Assembly. The costs and expenses of the audit must be paid by the department out of its funds."

SECTION   4.   Chapter 1, Title 57 of the 1976 Code is amended by adding:

Section 57-1-710.   There is hereby established a committee to be known as the Joint Transportation Review Committee, hereinafter called the review committee, which must exercise the powers and fulfill the duties described in this article.

Section 57-1-720.   (A)   The review committee is composed of ten members as follows:

(1)   one appointed by the Chairman of the Senate Finance Committee;

(2)   one appointed by the Chairman of the Senate Judiciary Committee;

(3)   one appointed by the Chairman of the Senate Transportation Committee;

(4)   two members appointed by the President Pro Tempore of the Senate upon the recommendations of the Senate Majority Leader and the Senate Minority Leader;

(5)   one appointed by the Chairman of the House Ways and Means Committee;

(6)   one appointed by the Chairman of the House Judiciary Committee;

(7)   one appointed by the Chairman of the House Education and Public Works Committee; and

(8)   two members appointed by the Speaker of the House of Representatives upon the recommendations of the House Majority Leader and the House Minority Leader.

(B)   In making appointments to the review committee, race, gender, and other demographic factors, such as residence in rural or urban areas, must be considered to assure nondiscrimination, inclusion, and representation to the greatest extent possible of all segments of the population of the State. The members of the general public appointed

(C)   The review committee must meet as soon as practicable after appointment and organize itself by electing one of its members as chairman and such other officers as the review committee may consider necessary. Thereafter, the review committee must meet at least quarterly and at the call of the chairman or by a majority of the members. A quorum consists of five members.

Section 57-1-730.   The review committee has the following powers and duties:

(1)   to screen candidates for election to the board;

(2)   in screening candidates and making its findings, the review committee must seek to find the best qualified people by giving due consideration to:

(a)   ability, area of expertise, dedication, compassion, common sense, and integrity of the candidates; and

(b)   the race and gender of the candidates and other demographic factors, such as residence in rural or urban areas, to assure nondiscrimination to the greatest extent possible of all segments of the population of the State;

(3)   to determine if the candidates are qualified and meet the requirements provided by law to serve as members of the Department of Transportation Board, make findings concerning whether the candidates are qualified, and deliver its findings to the Clerk of the Senate and the Clerk of the House of Representatives;

(4)   to nominate for election all qualified candidates, not to exceed three, for each vacancy on the board;

(5)   to submit to the Chairman of the Senate Transportation Committee and to the Chairman of the House Education and Public Works Committee, on an annual basis, the review committee's evaluation of the actions of the department, so that the members of the General Assembly may better judge whether these actions serve the best interests of the citizens of South Carolina, both individual and corporate;

(6)   to submit to the Chairman of the Senate Transportation Committee and to the Chairman of the House Education and Public Works Committee, on an annual basis, the review committee's evaluation of the performance of the board and recommendations for any statutory changes. A proposed draft of the evaluation must be submitted to the board prior to submission to the General Assembly,

(7)   to assist the department in developing an annual workshop of at least six contact hours concerning ethics and the Administrative Procedures Act for the board members and upper management employees of the Department of Transportation; and an annual workshop of at least one contact hour for all other department employees;

(8)   to make reports and recommendations to the General Assembly on matters relating to the powers and duties set forth in this section; and

(9)   to submit a letter to the Chairman of the Senate Transportation Committee and the Chairman of the House Education and Public Works Committee indicating the review committee has reviewed the methodology for the Statewide Transportation Improvement Plan (STIP) as provided in Section 57-1-60(B)(4).

Section 57-1-740.   (A)   For purposes of this section, a vacancy is created on the board when a term expires, a new congressional district is created, or a board member resigns, dies, or is removed from office as provided in Section 57-1-330(C). Except in the case of the death of a board member, the review committee may provide notice of a vacancy and begin screening prior to the actual date of the vacancy.

(B)   Whenever a board member must be elected to fill a vacancy:

(1)   The review committee must forward a notice of the district board member vacancy to:

(a)   a newspaper of general circulation within the congressional district from which a board member must be elected with a request that it be published at least once a week for four consecutive weeks;

(b)   any person who has informed the committee that he desires to be notified of the vacancy; and

(c)   to each member of the General Assembly representing a portion of the congressional district.

The committee may provide such additional notice that it deems appropriate.

(2)   The review committee may not accept a notice of intention to seek the office from any candidate until the review committee certifies to the Clerk of the Senate and the Clerk of the House of Representatives that the proper notices, required by this section, have been published or provided or until the time for the publication of the notices has expired.

(3)   The cost of the notification process required by this section must be absorbed and paid from the approved accounts of the Senate and the House of Representatives as contained in the annual appropriation act.

(C)   Any person that would like to be a candidate for election to fill a vacancy on the board must file a notice of intention with the review committee no later than five business days after the last date which the published notice appeared in a newspaper of general circulation.

(D)(1)   At the close of the notice of intention filing period, the review committee shall begin to conduct investigations of the candidates, as it considers appropriate, and may utilize the services of any agency of state government to assist in the investigations. Upon request of the review committee for assistance, an agency shall cooperate fully.

(2)(a)   Upon completion of the candidate investigations, the chairman of the review committee shall schedule a public hearing concerning the qualifications of the candidates. Any person who desires to testify at the hearing, including the candidates, must furnish a written statement of his proposed testimony to the chairman of the review committee. These statements shall be furnished no later than forty-eight hours prior to the date and time set for the hearing. The review committee shall determine the persons who shall testify at the hearing. All testimony, including documents furnished to the review committee, shall be submitted under oath and persons knowingly furnishing false information either orally or in writing shall be subject to the penalties provided by law for perjury and false swearing. During the course of the investigation, the review committee may schedule an executive session at which each candidate, and other persons who the review committee wishes to interview, may be interviewed on matters pertinent to the candidate's qualification for the office to be filled. The review committee shall render its tentative findings as to whether the candidate is qualified to serve on the board as a district member and its reasons for making the findings within a reasonable time after the hearing.

(b)   As soon as possible after the completion of the hearing, a verbatim copy of the testimony, documents submitted at the hearing, and findings of fact shall be transcribed and published in the journals of both houses or otherwise made available in a reasonable number of copies to the members of both houses and a copy must be furnished to each candidate.

(c)   No member of the legislative delegation electing a board member may pledge his vote until the qualifications of all candidates to

(d)   A candidate may withdraw at any stage of the proceedings, and in this event no further inquiry, report on, or consideration of his candidacy shall be made.

(3)   All records, information, and other material that the review committee has obtained or used to make its findings of fact, except materials, records, and information presented under oath at the public hearing, shall be kept strictly confidential. After the review committee has reported its findings of fact, or after a candidate withdraws his name from consideration, all records, information, and material required to be kept confidential must be destroyed.

(4)(a)   The review committee may, in the discharge of its duties, administer oaths and affirmations, take depositions, and issue subpoenas to compel the attendance of witnesses and the production of books, papers, correspondence, memoranda, and other records considered necessary in connection with the investigation of the review committee.

(b)   No person shall be excused from attending and testifying or from producing books, papers, correspondence, memoranda, or other records before the review committee on the ground that the testimony or evidence, documentary or otherwise, required of him may tend to incriminate him or subject him to a penalty or forfeiture. However, no individual shall be prosecuted or subjected to any criminal penalty based upon testimony or evidence submitted or forfeiture for or on account of any transaction, matter, or thing concerning which he is compelled, after having claimed his privilege against self-incrimination, to testify or produce evidence, documentary or otherwise, except that the individual so testifying shall not be exempt

(c)   In case of contumacy by any person or refusal to obey a subpoena issued to any person, any circuit court of this State or circuit judge thereof within the jurisdiction of which the person guilty of contumacy or refusal to obey is found, resides, or transacts business, upon application by the review committee, may issue to the person an order requiring him to appear before the review committee to produce evidence, if so ordered, or to give testimony concerning the matter under investigation. Any failure to obey an order of the court may be punished as contempt. Subpoenas shall be issued in the name of the review committee and shall be signed by the review committee chairman. Subpoenas shall be issued to those persons as the review committee may designate.

(5)   The privilege of the floor in either house of the General Assembly may not be granted to any candidate, or any immediate family member of a candidate unless the family member is serving in the General Assembly, during the time the candidate's application is pending before the review committee and during the time the candidate's election is pending.

Section 57-1-750.   (A)   The review committee members are entitled to such mileage, subsistence, and per diem as authorized by law for members of boards, committees, and commissions while in the performance of the duties for which appointed. These expenses shall be paid from the general fund of the State on warrants duly signed by the chairman of the review committee and payable by the authorities from which they are appointed.

(B)   The expenses associated with the review committee's duties to qualify and nominate candidates for the Department of Transportation Board must be paid from the legislative appropriation of the general fund of the State.

Section 57-1-760.   (A)   The review committee must use clerical and professional employees of the General Assembly for its staff, who must be made available to the review committee.

(B)   The review committee may employ or retain other professional staff, upon the determination of the necessity for other staff by the review committee and as may be funded in the legislative appropriation of the annual general appropriation act.

(C)   The costs and expenses of the review committee must be funded in the legislative appropriation of the annual general appropriation act.

Section 57-1-770.   The review committee may conduct a comprehensive study of other states' Department of Transportation Boards' structures, responsibilities, qualifications, and compensation. The review committee may prepare and deliver this report along with its recommendations to the General Assembly on or before January 15, 2009."

SECTION   5.   Unless extended by subsequent act of the General Assembly, the Governor's authority to appoint the Executive Director of the Department of Transportation pursuant to Section 57-1-410(A) terminates and is devolved upon the Department of Transportation Board effective July 1, 2015. All other provisions regarding the rights, powers, and duties of the Executive Director shall remain in full force and effect.

SECTION   6.   References in the 1976 Code to the "Commission of the Department of Transportation" or references to "commission" that refer to the administrative and governing body of the Department of Transportation, mean the "Department of Transportation Board" or "board", as appropriate; references to "director" that refer to the chief administrative officer of the Department of Transportation, mean the "Executive Director of the Department of Transportation" or "Executive Director," as appropriate; and references to "Department of Transportation Commissioner" mean "member of the Department of Transportation Board" or "board member" as appropriate. The Code Commissioner shall change references in the 1976 Code to conform to this act, and such changes must be included in the next printing of replacement volumes or cumulative supplements.

SECTION   7.   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   8.   (A)   The repeal or amendment by this act of any law, whether temporary or permanent, does not affect pending actions, rights, duties, or liabilities founded on it, or alter, discharge, release, or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision

(B)   Any statute enacted and any rule or regulation made in respect to any state agency, board, commission, or council or function transferred to, or consolidated, coordinated, or combined with any other state agency, board, commission, or council or function under the provisions of this act before the effective date of the transfer, consolidation, coordination, or combination, except to the extent repealed, modified, superseded, or made inapplicable by or under the authority of law, shall have the same effect as if the transfer, consolidation, coordination, or combination had not been made. But when any such statute, rule, or regulation has vested functions in the state agency, board, commission, or council from which the transfer is made under the act, the functions, insofar as they are to be exercised after the transfer, must be considered as vested in the state agency, board, commission, or council to which the transfer is made under the act.

SECTION 9.   This act takes effect upon approval by the Governor./

Renumber sections to conform.

Amend title to conform.

Senator McCONNELL explained the amendment.

The amendment was adopted.

On motion of Senator McCONNELL, with unanimous consent, the Bill was read the second time, passed and ordered to a third reading.

On motion of Senator McCONNELL, with unanimous consent, the Bill was placed in the status of Adjourned Debate.

On motion of Senator RITCHIE, with unanimous consent, the Senate stood adjourned out of respect to the memory of Mr. David L. Solomon of Morgantown, West Virginia.

At 4:11 P.M., on motion of Senator MARTIN, the Senate adjourned to meet tomorrow at 11:00 A.M. under the provisions of Rule 1 for the purpose of taking up local matters and uncontested matters which have previously received unanimous consent to be taken up.

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