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

Tuesday, February 19, 2008
(Statewide Session)


Indicates Matter Stricken
Indicates New Matter

The Senate assembled at 12:00 Noon, 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, addressing our Creator God, writes:

"When I look at your heavens, the work of your fingers, the moon and the stars that you have established, what are human beings that you are mindful of them, mortals that you care for them?"
(Psalm 8:3-4)

Please, let us pray:
  Holy God, we are indeed so aware of Your care, of Your concern for us. And we give You thanks and praise for all of Your rich and wonderful blessings. Guide us now, O Lord, as we strive to care for those in our charge, as well. Give each of these Senators hearts filled with concern for and interest in all of the citizens of this State, that these leaders might faithfully honor You by caring for others. In Your loving name we pray, O Lord.
Amen.

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

MESSAGE FROM THE GOVERNOR

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

Statewide Appointments

Initial Appointment, Donate Life South Carolina, with the term to commence April 1, 2008, and to expire April 1, 2012
Interested Party:
Matthew L. Hogue, 217 Derbyshire Lane, Conway, SC 29526 VICE Royce Carter

Referred to the Committee on Medical Affairs.

Reappointment, John De La Howe School Board of Trustees, with the term to commence April 1, 2008, and to expire April 1, 2013
At-Large:
Rosalind F. Neal, 118 Barksdale Ferry Road, McCormick, SC 29835

Referred to the Committee on Education.

Initial Appointment, South Carolina Panel for Dietetics, with the term to commence May 30, 2007, and to expire May 30, 2009
Hospital Employee - SCHA:
Karen G. Schwartz, M.S., R.D., 6 Split Oak Court, Taylors, SC 29687

Referred to the Committee on Medical Affairs.

Initial Appointment, South Carolina Public Charter School District Board of Trustees, with the term to commence August 1, 2006, and to expire August 1, 2008
Education Oversight Committee:
Michael R. Brenan, 1215 Jennings Court, Columbia, SC 29204

Referred to the Committee on Education.

Reappointment, South Carolina Public Charter School District Board of Trustees, with the term to commence August 1, 2008, and to expire August 1, 2011
Education Oversight Committee:
Michael R. Brenan, 1215 Jennings Court, Columbia, SC 29204

Referred to the Committee on Education.

Initial Appointment, South Carolina State Ports Authority, with the term to commence February 13, 2003, and to expire February 13, 2010
At-Large:
Douglas M. Robertson, 83 May River Point, Bluffton, SC 29910 VICE James A. Bennett

Referred to the Committee on Transportation.

Doctor of the Day

Senator McCONNELL introduced Dr. Dawn E. Clancy of Johns Island, S.C., Doctor of the Day.

Leave of Absence

On motion of Senator GROOMS, at 12:50 P.M., Senator CAMPSEN was granted a leave of absence for today and lasting until 2:00 P.M. tomorrow.

Leave of Absence

At 12:50 P.M., Senator O'DELL requested a leave of absence beginning at 2:00 P.M. today and lasting until 3:00 P.M. tomorrow.

INTRODUCTION OF BILLS AND RESOLUTIONS

The following were introduced:

S. 1119 (Word version) -- Senator Sheheen: A BILL TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SALES AND USE TAX EXEMPTIONS FOR PURPOSES OF THE SOUTH CAROLINA SALES AND USE TAX ACT, SO AS TO EXEMPT FROM SALES AND USE TAX TANGIBLE PERSONAL PROPERTY SOLD OR LEASED TO PUBLIC SCHOOLS AND PUBLIC SCHOOL DISTRICTS IN THIS STATE.
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Read the first time and referred to the Committee on Finance.

S. 1120 (Word version) -- Senator Land: A BILL TO PROVIDE THAT FROM JUNE 1, 2008, TO SEPTEMBER 30, 2008, A NON-RESIDENT MAY OBTAIN A LIFETIME COMBINATION LICENSE FROM THE DEPARTMENT OF NATURAL RESOURCES UNDER CERTAIN CIRCUMSTANCES.
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Read the first time and referred to the Committee on Fish, Game and Forestry.

S. 1121 (Word version) -- Senators Grooms, Land, Campsen, Cleary, Lourie and Verdin: A BILL TO AMEND SECTION 56-5-4140, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO GROSS VEHICLE WEIGHTS, SO AS TO PROVIDE THAT FOR A VEHICLE OR TRAILER TRANSPORTING UNPROCESSED FOREST PRODUCTS, THE ENFORCEMENT TOLERANCE IS FIFTEEN PERCENT.
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Read the first time and referred to the Committee on Transportation.

S. 1122 (Word version) -- Senator Hutto: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 50-11-515 SO AS TO PERMIT AMERICAN INDIAN ARTISTS WHO ARE MEMBERS OF A TRIBE RECOGNIZED BY THE SOUTH CAROLINA COMMISSION FOR MINORITY AFFAIRS TO ADVERTISE AND SELL THEIR ARTS AND CRAFTS CONTAINING WILD TURKEY FEATHERS UNDER CERTAIN CONDITIONS.
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Read the first time and referred to the Committee on Fish, Game and Forestry.

H. 3478 (Word version) -- Reps. Spires, Haley, Huggins, Bedingfield, F. N. Smith, Ballentine, Crawford, Frye, Harvin, Jefferson, Knight, Leach, Littlejohn, Mitchell, J. R. Smith, Stavrinakis, Toole, Whipper and Weeks: A BILL TO AMEND SECTION 20-7-1315, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO WAGE WITHHOLDING FOR THE COLLECTION AND ENFORCEMENT OF CHILD SUPPORT PAYMENTS, SO AS TO PROVIDE THAT THE FAMILY COURT SHALL ORDER WAGE WITHHOLDING UPON FINDING THAT A PERSON, WHO IS NOT REQUIRED TO PAY THROUGH WAGE WITHHOLDING OR THE FAMILY COURT, IS, OR HAS BEEN, IN ARREARS IN AN AMOUNT EQUAL TO THREE OR MORE MONTH'S SUPPORT OBLIGATION.

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

H. 3853 (Word version) -- Reps. Witherspoon, Walker, Bales, Harvin, Littlejohn, Lowe, Mahaffey, Miller, M. A. Pitts, Spires and Bowers: A BILL TO AMEND SECTION 56-5-4630, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PLACEMENT OF A RED LIGHT, LANTERN, OR FLAG UPON A LOAD THAT EXTENDS FOUR FEET OR MORE BEYOND THE BED OR BODY OF A VEHICLE, SO AS TO REVISE THE CIRCUMSTANCES UPON WHICH THE RED LIGHT, LANTERN, OR FLAG MUST BE PLACED UPON THE LOAD, AND TO PROVIDE THAT UNDER CERTAIN CIRCUMSTANCES AN AMBER STROBE LIGHT MUST BE AFFIXED TO THE LOAD.

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

H. 4357 (Word version) -- Reps. E. H. Pitts and Viers: A BILL TO AMEND SECTION 57-25-30, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO BUS SHELTERS AND ADVERTISING ALLOWED THEREON FOR SUCH SHELTERS LOCATED IN THE RIGHT-OF-WAY OF A STATE ROAD, SO AS TO ALLOW ADVERTISING ON A STAND-ALONE BUS BENCH LOCATED WITHIN THE RIGHT-OF-WAY OF A STATE ROAD.

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

H. 4470 (Word version) -- Reps. Harrell, Leach, Cato, Hagood, Hamilton, Harrison, Limehouse, Merrill, Scarborough, W. D. Smith, Stavrinakis, Walker, Young, Gambrell, Haley, Bedingfield, Mahaffey, Cotty, McLeod, Owens, Rice, Bowen, Viers and Shoopman: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-3680 SO AS TO ALLOW A STATE INCOME TAX CREDIT FOR THE PURCHASE, INSTALLATION, OR IMPROVEMENT OF A FIRE SPRINKLER SYSTEM AND TO PROVIDE THE ADMINISTRATION OF THE CREDIT; TO AMEND SECTION 5-31-670, RELATING TO MUNICIPAL AND SPECIAL SERVICE DISTRICT WATER SYSTEMS, SO AS TO LIMIT CHARGES FOR SEPARATE LINES FOR FIRE SPRINKLER SYSTEMS TO ACTUAL COSTS; TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO SALES TAX EXEMPTIONS, SO AS TO EXEMPT FIRE SPRINKLER SYSTEMS; TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO ALLOW AN EXEMPTION FROM COUNTY TAXES FOR FIVE YEARS FOR THE FIRST FIFTY THOUSAND DOLLARS OF THE COST OF ADDING TO AND UPGRADES OF FIRE SPRINKLER SYSTEMS IN MANUFACTURING ESTABLISHMENTS IN EXISTENCE BEFORE JULY 1, 2008; TO AMEND SECTION 12-37-930, AS AMENDED, RELATING TO DEPRECIATION ALLOWED IN THE VALUATION OF MANUFACTURING PROPERTY FOR PURPOSES OF THE PROPERTY TAX, SO AS TO ALLOW A TWENTY PERCENT ANNUAL DEPRECIATION FOR THE ADDITION OR UPGRADE OF A FIRE SPRINKLER SYSTEM INSTALLED OR UPGRADED IN A MANUFACTURING ESTABLISHMENT IN EXISTENCE BEFORE JULY 1, 2008, AND TO ALLOW THIS COST TO BE COMPLETELY DEPRECIATED; AND TO AMEND SECTION 23-9-40, RELATING TO THE DUTIES OF THE STATE FIRE MARSHAL, SO AS TO ADD AUTHORITY RELATING TO FIRE SPRINKLER SYSTEMS.

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

H. 4494 (Word version) -- Reps. Harrell, Harrison, Cooper, Walker, Cato, Witherspoon, White, Gambrell and Bales: A BILL TO AMEND SECTION 2-75-5, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LEGISLATIVE FINDINGS CONCERNING RESEARCH CENTERS OF ECONOMIC EXCELLENCE, SO AS TO REVISE REFERENCES AS TO SOURCES OF FUNDS FOR ENDOWED PROFESSORSHIPS; TO AMEND SECTION 2-75-30, RELATING TO CENTERS OF EXCELLENCE MATCHING ENDOWMENT, SO AS TO PROVIDE THAT INTEREST EARNINGS OF THE ENDOWMENT MAY BE USED FOR PROGRAMMATIC SUPPORT IN ACCORDANCE WITH BOARD POLICIES AND GUIDELINES; TO AMEND SECTION 2-75-50, RELATING TO APPLICATION REQUIREMENTS, SO AS TO REVISE THE FUNDING DOCUMENTATION AN APPLICATION MUST CONTAIN; TO AMEND SECTION 2-75-90, AS AMENDED, RELATING TO MEETING MATCHING REQUIREMENT WITH PRIVATE OR FEDERAL FUNDS, SO AS TO DELETE OBSOLETE LANGUAGE; BY ADDING SECTION 2-75-100 SO AS TO ALLOW SENIOR RESEARCH UNIVERSITIES TO UTILIZE A PORTION OF NONSTATE MATCHING FUNDS TO PAY FOR INITIAL OPERATING COSTS; AND BY ADDING SECTION 2-75-110 SO AS TO ALLOW THESE UNIVERSITIES TO ACCEPT AND APPLY CASH EQUIVALENT AND IN-KIND DONATIONS FROM NONSTATE SOURCES.

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

H. 4686 (Word version) -- Reps. McLeod and Duncan: A JOINT RESOLUTION PROVIDING FOR THE TRANSFER OF A SURPLUS OPERATIONS AND MAINTENANCE SHOP IN NEWBERRY TO THE COUNTY OF NEWBERRY.

Read the first time and, on motion of Senator CROMER, with unanimous consent, H. 4686 was ordered placed on the Calendar without reference.

H. 4708 (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, Chalk, Clemmons, Clyburn, Cobb-Hunter, Coleman, Cooper, Cotty, Crawford, Dantzler, Davenport, Delleney, Duncan, Edge, Erickson, Frye, Funderburk, Gambrell, Govan, Gullick, Hagood, Haley, Hamilton, Hardwick, Harrell, Harrison, Hart, Harvin, Haskins, Hayes, Herbkersman, Hiott, Hodges, Hosey, Howard, Huggins, Hutson, 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 RECOGNIZE AND HONOR THE PHILANTHROPY OF BUSINESSMAN LARRY W. PAUL, OF HORRY COUNTY, AND TO COMMEND HIM FOR THE FORESIGHT THAT INSPIRED HIM TO COLLECT AND DONATE NUMEROUS VALUABLE ARTIFACTS TO THE HORRY COUNTY MUSEUM.

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

H. 4710 (Word version) -- Reps. Scott, Agnew, Alexander, Allen, Anderson, Anthony, Bales, Ballentine, Bannister, Barfield, Battle, Bedingfield, Bingham, Bowen, Bowers, Brady, Branham, Brantley, Breeland, G. Brown, R. Brown, Cato, Chalk, Clemmons, Clyburn, Cobb-Hunter, Coleman, Cooper, Cotty, Crawford, Dantzler, Davenport, Delleney, Duncan, Edge, Erickson, Frye, Funderburk, Gambrell, Govan, Gullick, Hagood, Haley, Hamilton, Hardwick, Harrell, Harrison, Hart, Harvin, Haskins, Hayes, Herbkersman, Hiott, Hodges, Hosey, Howard, Huggins, Hutson, 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, 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 RECOGNIZE BLYTHEWOOD MIDDLE SCHOOL, OF RICHLAND SCHOOL DISTRICT TWO, FOR BEING NAMED A "SCHOOL TO WATCH" BY THE NATIONAL FORUM TO ACCELERATE MIDDLE-GRADES REFORM.

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

H. 4715 (Word version) -- Reps. Walker and Skelton: A CONCURRENT RESOLUTION TO EXPRESS HEARTIEST CONGRATULATIONS TO THE SEVENTEEN SOUTH CAROLINA TECHNICAL COLLEGE STUDENTS NAMED TO SOUTH CAROLINA'S 2008 ALL-STATE ACADEMIC TEAM IN THE ALL-USA ACADEMIC TEAM COMPETITION FOR TECHNICAL COLLEGES, COMMUNITY COLLEGES, AND JUNIOR COLLEGES, SPONSORED BY PHI THETA KAPPA, THE INTERNATIONAL HONOR SOCIETY OF THE TWO-YEAR COLLEGE, THE AMERICAN ASSOCIATION OF COMMUNITY COLLEGES, AND USA TODAY.

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

REPORT OF STANDING COMMITTEE

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

S. 909 (Word version) -- Senators Bryant and Elliott: A BILL TO AMEND CHAPTER 111 0F TITLE 59 OF THE 1976 CODE, RELATING TO EDUCATION SCHOLARSHIPS, BY ADDING SECTION 59-111-25, TO PROVIDE THAT MEMBERS OF THE SOUTH CAROLINA NATIONAL GUARD OR RESERVE COMPONENTS THAT ARE AWARDED A BRONZE STAR MEDAL, OR HIGHER MILITARY AWARD IN THE ORDER OF PRECEDENCE, FOR COMBAT OPERATIONS MAY BE ADMITTED TO ANY STATE-SUPPORTED COLLEGE, UNIVERSITY, OR POST HIGH SCHOOL TECHNICAL EDUCATION INSTITUTION FREE OF TUITION.

Ordered for consideration tomorrow.

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

THIRD READING BILL

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

S. 970 (Word version) -- Senator Hutto: A BILL TO AMEND SECTION 44-29-135, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CONFIDENTIALITY OF SEXUALLY TRANSMITTED DISEASE RECORDS, SO AS TO DELETE THE PROVISION REQUIRING THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL TO NOTIFY THE SCHOOL DISTRICT SUPERINTENDENT AND SCHOOL NURSE IF A MINOR IS ATTENDING A SCHOOL IN THE DISTRICT AND HAS ACQUIRED IMMUNODEFICIENCY SYNDROME OR IS INFECTED WITH THE HUMAN IMMUNODEFICIENCY VIRUS.

SECOND READING BILLS

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

H. 3140 (Word version) -- Rep. W.D. Smith: A BILL TO AMEND SECTION 37-5-103, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO RESTRICTIONS ON DEFICIENCY JUDGMENTS IN CONSUMER CREDIT SALES, SO AS TO CORRECT CROSS-REFERENCES TO THE UNIFORM COMMERCIAL CODE.

S. 1107 (Word version) -- Medical Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE BUDGET AND CONTROL BOARD, RELATING TO DATA REPORTING REQUIREMENTS PERTAINING TO SUBMISSION OF AMBULATORY ENCOUNTER DATA, DESIGNATED AS REGULATION DOCUMENT NUMBER 3178, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

S. 1108 (Word version) -- Medical Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO SOUTH CAROLINA BIRTH DEFECTS PROGRAM, DESIGNATED AS REGULATION DOCUMENT NUMBER 3151, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

S. 1109 (Word version) -- Medical Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE BUDGET AND CONTROL BOARD, RELATING TO DATA REPORTING REQUIREMENTS PERTAINING TO SOUTH CAROLINA HOSPITALS, DESIGNATED AS REGULATION DOCUMENT NUMBER 3179, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

S. 1110 (Word version) -- Medical Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO ENVIRONMENTAL ELECTRONIC REPORTING REQUIREMENTS, DESIGNATED AS REGULATION DOCUMENT NUMBER 3149, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

S. 1111 (Word version) -- Medical Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO ICE, DESIGNATED AS REGULATION DOCUMENT NUMBER 3139, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

CARRIED OVER

S. 1112 (Word version) -- Agriculture and Natural Resources Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO CRITICAL AREAS OF THE COASTAL ZONE, DESIGNATED AS REGULATION DOCUMENT NUMBER 3111, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

On motion of Senator McCONNELL, the Joint Resolution was carried over.

S. 1113 (Word version) -- Agriculture and Natural Resources Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF AGRICULTURE, RELATING TO WEIGHTS AND MEASURES, DESIGNATED AS REGULATION DOCUMENT NUMBER 3133, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

On motion of Senator PEELER, the Joint Resolution was carried over.

S. 1114 (Word version) -- Medical Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO SOLID WASTE MANAGEMENT, DESIGNATED AS REGULATION DOCUMENT NUMBER 3113, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

On motion of Senator LEATHERMAN, the Joint Resolution was carried over.

H. 4598 (Word version) -- Agriculture, Natural Resources and Environmental Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF AGRICULTURE, RELATING TO GASOLINE, LUBRICATING OILS AND OTHER PETROLEUM PRODUCTS, DESIGNATED AS REGULATION DOCUMENT NUMBER 3123, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

On motion of Senator RYBERG, the Joint Resolution was carried over.

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

COMMITTED

S. 530 (Word version) -- Senator Leatherman: A BILL TO ENACT THE PROVISO CODIFICATION ACT OF 2007, TO PROVIDE FOR THE CODIFICATION IN THE SOUTH CAROLINA CODE OF LAWS OF CERTAIN PROVISOS CONTAINED IN THE ANNUAL GENERAL APPROPRIATIONS ACT, AND TO PROVIDE FOR OTHER PROVISIONS RELATED TO THE ANNUAL GENERAL APPROPRIATIONS ACT EFFECTIVE FOR FISCAL YEAR 2007-2008 ONLY.

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

The Bill was committed to the Committee on Finance, retaining its place on the Calendar.

MOTION ADOPTED

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

THE SENATE PROCEEDED TO THE SPECIAL ORDERS.

AMENDED, READ THE SECOND TIME
RETURNED TO THE STATUS OF SPECIAL ORDER

S. 398 (Word version) -- Senator Ford: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-13-480 SO AS TO CREATE THE CRIME OF ENGAGING IN THE BUSINESS OF DEFERRED PRESENTMENT IN THIS STATE, TO PROVIDE THAT A VIOLATION IS A FELONY, AND TO PROVIDE FOR A MANDATORY MINIMUM PENALTY; AND TO REPEAL CHAPTER 39 OF TITLE 34 RELATING TO THE SOUTH CAROLINA DEFERRED PRESENTMENT SERVICES ACT.

The Senate proceeded to a consideration of the Bill, the question being the adoption of Amendment No. 2 (398R005.JHR) proposed by Senators RITCHIE, HAYES, LAND, McCONNELL, O'DELL, REESE, FORD, JACKSON, CLEARY, CEIPS, MARTIN, BRYANT, McGILL, FORD, CAMPBELL and DRUMMOND:

Amendment No. 2

Senators RITCHIE, HAYES, LAND, McCONNELL, O'DELL, REESE, FORD, JACKSON, CLEARY, CEIPS, MARTIN, BRYANT, McGILL, FORD, CAMPBELL, SHORT and DRUMMOND proposed the following Amendment No. 2 (398R005.JHR), which was adopted:

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

SECTION   1.   Chapter 39 of Title 34 is amended by adding:

"Section 34-39-175.   (A)   The Consumer Finance Division of the Board of Financial Institutions shall implement a common database with real-time access through an internet connection for deferred presentment providers, as provided in this subsection. The board is authorized to enter into a contract with a single source private vendor to develop and operate the database. The database must be accessible to the board and the deferred presentment providers to verify if deferred presentment transactions are outstanding for a particular person. Deferred presentment providers shall submit that data before entering into a deferred presentment transaction and once a deferred presentment transaction has been paid in full, in a format the board requires by rule including the drawer's name, social security number or employment authorization alien number, address, driver's license number, amount of the transaction, date of transaction, the date that the transaction is closed, and additional information required by the board. The board may impose a fee not to exceed one dollar for each transaction for data required to be submitted by a licensee. A licensee may rely on the information contained in the database as accurate and is not subject to any administrative penalty or civil liability as a result of relying on inaccurate information contained in the database. The board may adopt rules to administer and enforce the provisions of this section and to ensure that the database is used by licensees in accordance with this section.

(B)   The information provided in the database is limited for the use in determining if a customer is eligible or ineligible to enter into a new deferred presentment transaction and to describe the reason for the determination of eligibility or ineligibility."

SECTION   2.   Chapter 39, Title 34 of the 1976 Code is amended by adding:

"Section 34-39-270.   (A)   A licensee may not enter into a deferred presentment transaction with a person:

(1)   who has one or more outstanding deferred presentment transactions that are equal to the maximum loan amount permitted by this chapter;

(2)   who has entered into an extended payment play agreement as provided in Section 34-39-280 which has not been paid in full or terminated; or

(3)   sooner than the second business day after the date upon which the person last closed out a deferred presentment transaction with any licensee;

(B)   Before entering into a deferred presentment transaction with a person, a licensee shall verify whether the person is eligible to enter into the transaction by inquiring of the person, checking the licensee's records, and accessing the deferred presentment transaction database established pursuant to subsection (C).

(C)   The board shall contract with a single third party database provider to establish and operate a deferred presentment transaction database for the purpose of verifying whether a person is eligible to enter into a deferred presentment transaction. The board shall supervise the establishment and operation of the database and shall ensure that the database provider establishes and operates the database pursuant to the provisions of this section. The board shall have full access to the database and all records related to the database for purposes of supervising the establishment and operation of the database. If the database provider violates a provision of this section, the board shall terminate the contract. The database must have real-time access through an internet connection and be accessible at all times to the board and licensees. The database provider shall establish and maintain a process for responding to transaction verification requests when technical difficulties prevent the licensee from accessing the database through the internet including, but not limited to, verification by telephone. The database must be set up so as to notify the board if a licensee or a person enters into a transaction in violation of the provisions of this section.

(D)   To conduct an inquiry as to whether a person is eligible to enter into a deferred presentment transaction, a licensee shall submit to the database provider such information as the board may require. The response to an inquiry to the database provider by a licensee must state only that a person is eligible or ineligible to enter into a transaction and describe the reason for that determination. The person seeking to enter into the transaction may make a direct inquiry to the database provider to request a more detailed explanation of the basis for the database provider's determination that the person is ineligible to enter into the transaction.

(E)   A licensee shall notify the database provider immediately when the licensee enters into a deferred presentment transaction with a person. The licensee shall submit to the database provider such information as the board requires. When the transaction is closed, the licensee shall designate the transaction as closed and immediately notify the database provider. When the database provider receives notification that the transaction is closed, the database provider immediately shall designate the transaction as closed in the database.

(F)   A licensee shall notify a person seeking to enter into a deferred presentment transaction that the licensee shall access the database to verify whether the person is eligible to enter into a transaction. The licensee also shall notify the person that information related to a new transaction must be entered into the database.

(G)   The database provider may charge a database verification fee to a licensee for an inquiry as to whether a person is eligible to enter into a deferred presentment transaction, if that transaction is consummated by the licensee. The fee must be established by the board and may not exceed the actual cost of verifying a person's eligibility. A licensee may charge a person seeking to enter into a deferred presentment transaction one-half of the actual cost of the verification fee.

(H)   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 database provider and licensees shall use the information collected pursuant to this section only as prescribed in this section and for no other purpose.

(I)   A licensee may rely on the information contained in the database as accurate and is not subject to any administrative penalty or civil liability as a result of relying on inaccurate information contained in the database.

Section 34-39-280.   (A)   Subject to the terms and conditions contained in this section, a customer may pay any outstanding deferred presentment transaction by means of an extended payment plan.

(B)   A licensee must enter into a written plan agreement with the customer if the customer, on or before the deferred presentment transaction's due date, requests a plan and signs an amendment to the written agreement that memorializes the plan's terms and must enter the information into the database established in Section 34-29-175 that the customer has an extended payment plan.

(C)   The plan's terms must allow the customer, at no additional cost, to repay the deferred presentment transaction in substantially equal installments over not less than sixty days. Each plan installment must coincide with a date on which the customer receives regular income. The customer may prepay a plan in full at any time without penalty. If the customer fails to pay any plan installment when due, the plan is terminated and the licensee immediately may accelerate and collect the unpaid transaction balance. The licensee may, with each payment under the plan by a customer, provide for the return of the customer's prior held check and require a new check for the remaining balance under the plan.

(D)   A licensee must notify the customer of his plan rights by displaying the following statement, in at least 12-point bold type, on the first page of the written agreement:

'You should use a deferred presentment transaction only for a short-term credit need. If you have a long-term credit need, you should consider a less costly way to borrow money or seek the advice of a nonprofit credit counselor. You may repay this contract through an extended payment plan. If you choose this right, then you must, on or before the date this contract is due, ask for an extended payment plan. You will be asked to sign a new agreement for this extended payment plan. The extended payment plan must let you repay this contract in substantially equal installments over the next sixty days. There will be no additional cost. Each extended payment plan installment must match with a date on which you receive regular income. You may prepay an extended payment plan in full at any time without penalty. If you fail to pay an extended payment plan installment when due, the extended payment plan will end and we may collect immediately the unpaid contract balance.'

Section 34-29-290.   Based upon data provided by the database vendor, the Board of Financial Institutions annually shall report to the General Assembly the following information for loans made in South Carolina in the previous reporting year, specifically the number of:

(1)   loans made in South Carolina by loan amount and the dollar amount of fees collected by loan amount;

(2)   individual borrowers by loan amount and the number of borrowers by the number of times each borrower took out a loan;

(3)   borrowers who chose to pay off their loans through an Extended Payment Plan by loan amount;

(4)   loans that were not paid off in the previous year by loan amount; and

(5)   loans on which the lender submitted the check for collection by loan amount and the number of loans on which the lender took action for collection."

SECTION   2.   Section 34-39-130 of the 1976 Code is amended by adding at the end:

"(C)   A person may not engage in the business of deferred presentment services with a customer residing in this State, whether or not that person has a location in South Carolina, except in accordance with the provisions of this chapter and without having first obtained a license pursuant to this chapter.

(D)(1)   A licensee pursuant to this chapter may not offer, arrange, act as an agent for, or assist a deferred deposit originator in any way in the making of a deferred deposit transaction unless the deferred deposit originator complies with all applicable federal and state laws and regulations including this chapter.

(2)   This prohibition does not apply to the arranger, agent, or assistant to a state or federally chartered bank, thrift, savings association, or credit union if, upon review of the entire circumstances, the state or federally chartered bank, thrift, savings association, or credit union:

(a)   initially advanced the loan proceeds to the customer;

(b)   maintained a preponderant economic interest in the loan after its initiation; and

(c)   developed the deferred deposit transaction product or products on its own without involvement of the licensee.

(3)   If a licensee offers, arranges, acts as an agent for, or assists a state or federally chartered bank, thrift, savings association, or credit union in the making of a deferred deposit transaction and the licensee demonstrates that the standards in item (2)(a), (b), and (c) are met, the licensee must comply with all other provisions of this chapter to the extent that they are not preempted by other federal or state law."

SECTION   3.   Section 34-39-150(C) and (D) of the 1976 Code is amended to read:

"(C)   The application must be accompanied by payment of an application fee of two hundred fifty dollars five hundred dollars and an investigation fee of five hundred dollars. These fees are not refundable or abatable. If the license is granted, however, payment of the application fee satisfies the fee requirement for the first license year or its remainder.

(D)   A license expires annually and may be renewed upon payment of a license fee of two hundred fifty dollars five hundred dollars. The annual license renewal fee for an applicant with more than one location is two hundred fifty five hundred dollars for the first location and fifty one hundred dollars for each additional location. The Board of Financial Institutions shall disburse one-half of the license fees collected to the South Carolina Attorney General's Office to establish and maintain a division to enforce the provisions of this chapter."

SECTION   4.   Section 34-39-160 of the 1976 Code is amended to read:

"To qualify for a license issued pursuant to this chapter, an applicant shall have:

(1)   a minimum net worth, determined in accordance with generally accepted accounting principles, of at least twenty-five one hundred thousand dollars available for the operation of each location; and

(2)   the financial responsibility, character, experience, and general fitness so as to command the confidence of the public and to warrant belief that the business is operated lawfully, honestly, fairly, and efficiently."

SECTION   5.   Section 34-39-180 of the 1976 Code, as added by Act 433 of 1998, is amended to read:

"Section 34-39-180.   (A) A licensee may defer the presentment or deposit of a check for up to thirty-one days pursuant to the provisions of this section.

(B)(A)   The total amount advanced by all licensees to any customer for deferred presentment or deposit may not exceed the lesser of twenty-five percent of the customer's gross income during the term of the loan or five hundred dollars, exclusive of the fees allowed in Section 34-39-180(E). A licensee may not advance to a customer an amount for deferred presentment or deposit which causes this limit to be exceeded by that customer.

(B)   Each check must be documented by a written agreement signed by both the customer and the licensee. The written agreement must contain the name or trade name of the licensee, the transaction date, the amount of the check, and a statement of the total amount of fees charged, expressed both as a dollar amount and as an effective annual percentage rate (APR). The written agreement must authorize expressly the licensee to defer presentment or deposit of the check until a specific date, not later than thirty-one days from the date the check is accepted by the licensee. The written agreement also must contain plain language developed by the board which sufficiently informs the customer regarding the nature of deferred presentment services, the deferred presentment service process, the customer's rights pursuant to this chapter, information to file complaints with the South Carolina Department of Consumer Affairs and the South Carolina Attorney General's Office, and other information the board may require.

(C)   The board shall require each licensee to issue a standardized consumer notification and disclosure form in compliance with state and federal truth-in-lending laws before entering into a deferred presentment agreement with a customer.

(D)   A licensee shall may not charge, directly or indirectly, a fee or other consideration in excess of fifteen percent of the face amount of the check advanced for accepting a check for deferred presentment or deposit. The fee or other consideration authorized by this subsection may be imposed only once for each written agreement. Records must be kept by each licensee with sufficient detail to ensure that the fee or other consideration authorized by this subsection may be is imposed only once for each written agreement.

(E)   A check accepted for deferred presentment or deposit pursuant to this chapter may must not be repaid from the proceeds of another check accepted for deferred presentment or deposit by the same licensee or an affiliate of the licensee. A licensee shall may not renew or otherwise extend presentment of a check or withhold the check from deposit, for old or new consideration, for a period beyond the time set forth in the written agreement with the customer. A licensee shall not enter into a deferred presentment agreement with a customer who has entered into an extended payment plan agreement with any licensee as provided in Section 34-39-280.

(F)   If a check is returned to the licensee from a payer financial institution due to insufficient funds, closed account, or stop payment order, the licensee may pursue all legally available civil means to collect the check including, but not limited to, the imposition of a returned check charge as provided in Section 34-11-70(a), except that the service charge imposed by the licensee shall may not exceed the lesser of ten dollars or the fee imposed by the financial institution on the licensee for the returned check. An individual who issues a personal check to a licensee under a deferred presentment agreement is not subject to criminal penalty.

(G)   If a check is returned to the licensee from a payer financial institution due to insufficient funds, closed account, or stop payment order, the licensee may pursue all legally available civil means to collect the check including, but not limited to, the imposition of a returned check charge as provided in Section 34-11-70(a), except that the service charge imposed by the licensee shall not exceed the lesser of ten dollars or the fee imposed by the financial institution on the licensee for the returned check. An individual who issues a personal check to a licensee under a deferred presentment agreement is not subject to criminal penalty."

SECTION   6.   Section 34-39-200 of the 1976 Code is amended to read:

"Section 34-39-200.   A person required to be licensed pursuant to this chapter may not:

(1)   charge fees in excess of those authorized by this chapter;

(2)   engage in the business of:

(i)     making loans of money or extension of credit;

(ii)   discounting notes, bills of exchange, items, or other evidences of debt; or

(iii)   accepting deposits or bailments of money or items, except as expressly provided by Section 34-39-180;

(3)   use or cause to be published or disseminated advertising communication which contains false, misleading, or deceptive statements or representations;

(4)   conduct business at premises or locations other than locations licensed by the board;

(5)   engage in unfair, deceptive, or fraudulent practices, including unconscionable conduct in violation of Section 37-5-108;

(6)   alter or delete the date on a check accepted by the licensee;

(7)   accept an undated check or a check dated on a date other than the date on which the licensee accepts the check;

(8)   require a customer to provide security for the transaction or require the customer to provide a guaranty from another person;

(9)   engage in the retail sale of goods or services, other than deferred presentment services and Level I check-cashing services as defined in Section 34-41-10, at the location licensed pursuant to this chapter, provided, however except, that a sale of money orders, or postage stamps, and the payment of utility bills with no additional a fee to the customer that does not exceed one percent of the bill being paid, vending machines for food or beverage, facsimile services, Western Union wire transfer or money transmitter services, or rental of postal boxes at rates not higher than allowed by the United States Postal Service is are not the sale sales of goods or services prohibited by this subsection;

(10)   be licensed pursuant to Section 12-21-2720(a)(3) to operate a video poker machine; or

(11)   permit others to engage in an activity prohibited by this section at a location licensed pursuant to this chapter. ; or

(12)   broker or arrange a deferred presentment transaction on behalf of a third-party lender, unless the transaction complies with the provisions of this chapter and is not preempted by federal law."

SECTION   7.   Chapter 39, Title 34 of the 1976 Code is amended by adding:

"Section 39-34-205.   On-premises advertising by a licensee may not contain false, misleading, or deceptive statements or representations. The board must promulgate regulations necessary to administer and enforce this section."

SECTION   8.   This act takes effect January 1, 2009.   /

Renumber sections to conform.

Amend title to conform.

Senator RITCHIE explained the amendment.

Senator RITCHIE moved that the amendment be adopted.

Senator HAYES spoke on the amendment.

Senator HAWKINS argued contra to the adoption of the amendment.

ACTING PRESIDENT PRESIDES

At 1:16 P.M., Senator MARTIN assumed the Chair.

Senator HAWKINS argued contra to the adoption of the amendment.

Senator HAWKINS moved to carry over the amendment and take up for immediate consideration the amendment proposed by the Committee on Judiciary.

Senator HAYES moved to lay the motion to carry over the amendment on the table.

The motion to table the motion to carry over the amendment failed.

The question then was the motion to carry over the amendment.

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

Ayes 11; Nays 28

AYES

Anderson                  Fair                      Ford
Hawkins                   Hutto                     Leventis
Lourie                    Malloy                    Patterson
Scott                     Sheheen

Total--11

NAYS

Alexander                 Bryant                    Campbell
Ceips                     Cleary                    Courson
Cromer                    Elliott                   Gregory
Grooms                    Hayes                     Jackson
Knotts                    Land                      Leatherman
Martin                    Massey                    McConnell
McGill                    O'Dell                    Peeler
Rankin                    Reese                     Ritchie
Ryberg                    Setzler                   Short
Thomas

Total--28

The Senate refused to carry over the amendment.

Senator HAWKINS resumed arguing contra to the adoption of the amendment.

PRESIDENT PRESIDES

At 1:26 P.M., the PRESIDENT assumed the Chair.

Senator HAWKINS resumed arguing contra to the adoption of the amendment.

PRESIDENT Pro Tempore PRESIDES

At 1:48 P.M., Senator McCONNELL assumed the Chair.

Senator HAWKINS resumed arguing contra to the adoption of the amendment.

ACTING PRESIDENT PRESIDES

At 2:07 P.M., Senator MARTIN assumed the Chair.

Senator HAWKINS resumed arguing contra to the adoption of the amendment.

RECESS

At 2:14 P.M., with Senator HAWKINS retaining the floor, with unanimous consent, on motion of Senator HAYES, the Senate receded from business not to exceed ten minutes.

At 2:25 P.M., the Senate resumed.

Senator HAWKINS resumed arguing contra to the adoption of the amendment.

On motion of Senator HUTTO, with unanimous consent, Amendment No. 2 was adopted.

Senator HUTTO asked unanimous consent to make a motion to take up Amendment No. 4.

There was no objection.

Amendment No. 4

Senator HAWKINS proposed the following Amendment No. 4 (398R009.JDH), which was tabled:

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

/   SECTION   1.   Chapter 17 of Title 16 of the 1976 Code is amended by adding:

  "ARTICLE 6

PAYDAY LOANS

Section 16-17-330.   As used in this article:

(1)   'Check' has the same meaning as in Section 36-3-104;

(2)   'Payday loan' means a transaction pursuant to a written agreement involving the following combination of activities in exchange for a fee:

(a)   a person accepting a check from the maker; and

(b)   holding the check for a period of time before presentment for payment or deposit.

(3)   'Person' means an individual, group of individuals, partnership, association, corporation, or other business unit or legal entity.

(4)   'Location' means the entire space in which payday loans are provided.

Section 16-17-340.   It is unlawful for a person to provide payday loans. A person found guilty of a violation of this section is guilty of a misdemeanor and, upon conviction, shall be punished by a fine of not less than one thousand dollars nor more than five thousand dollars and imprisoned for not more than three years. The court may also order the violator to pay restitution to each person to whom the violator provided payday loans. The restitution must include the principal amount of the loan and any charges, fees, or interest that the violator collected.

Section 16-17-350.   In addition to any other penalties imposed on a person convicted of a violation of this article, the State may recover a civil penalty equal to three times the amount of any interest or charges associated with all payday loans the violator provided. A civil action to collect the penalty provided for in this section may be initiated by the Attorney General or the solicitor for the circuit in which the violation occurred.

Section 16-17-360. The proceeds of all payday loans made by a person convicted of a violation of this article are taxable to the violator as income at the rate of seventy-five percent times the amount of the proceeds.

Section 16-17-370.   The location of a place of business engaged in payday lending is declared a public nuisance.

Section 16-17-380.   A person who provides payday loans is prohibited from maintaining or obtaining any certificate of authority from the Secretary of State or a license to operate any lawful business by any licensing authority in the State."

SECTION   2.   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   3.   The General Assembly finds that the sections presented in this act constitute one subject as required by Article III, Section 17 of the South Carolina Constitution, in particular finding that each change and each topic relates directly to or in conjunction with other sections to the subject of payday loans as clearly enumerated in the title.

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

SECTION   4.   Chapter 39 of Title 34 is repealed.

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

Renumber sections to conform.

Amend title to conform.

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

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

Call of the Senate

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

Alexander                 Anderson                  Bryant
Campbell                  Ceips                     Cleary
Courson                   Cromer                    Drummond
Elliott                   Fair                      Ford
Gregory                   Grooms                    Hawkins
Hayes                     Hutto                     Jackson
Knotts                    Land                      Leatherman
Leventis                  Lourie                    Malloy
Martin                    Massey                    Matthews
McConnell                 McGill                    O'Dell
Patterson                 Peeler                    Pinckney
Rankin                    Reese                     Ritchie
Ryberg                    Scott                     Setzler
Sheheen                   Short                     Thomas
Williams

A quorum being present, the Senate resumed.

The question then was the adoption of Amendment No. 4.

Senator HAYES moved to lay the amendment on the table.

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

Ayes 23; Nays 18

AYES

Alexander                 Bryant                    Campbell
Ceips                     Cleary                    Cromer
Gregory                   Grooms                    Hayes
Jackson                   Knotts                    Land
Leatherman                Martin                    Massey
McConnell                 O'Dell                    Peeler
Reese                     Ritchie                   Ryberg
Setzler                   Thomas

Total--23

NAYS

Anderson                  Courson                   Elliott
Fair                      Ford                      Hawkins
Hutto                     Leventis                  Lourie
Malloy                    Matthews                  McGill
Patterson                 Pinckney                  Rankin
Scott                     Sheheen                   Williams

Total--18

The amendment was laid on the table.

Amendment Proposed by the Committee on Judiciary
Carried Over and Subsequently Withdrawn

The question then was the adoption of the amendment proposed by the Committee on Judiciary.

The Judiciary Committee proposed the following amendment (JUD0398.007), which was carried over and subsequently withdrawn:

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

/   SECTION   1.   Section 34-39-130(A) of the 1976 Code is amended to read:

"(A)   A person, including a person doing business over the internet, may not engage in the business of deferred presentment services with a person in South Carolina without first obtaining a license pursuant to this chapter. A separate license is required for each location or internet website from which the business is conducted. The licensee shall post its license to engage in the business of deferred presentment services at each location or on each internet website licensed pursuant to this chapter."

SECTION   2.   Section 34-39-180 of the 1976 Code is amended to read:

"Section 34-39-180.   (A)   A licensee may defer the presentment or deposit of a check for up to thirty-one days pursuant to the provisions of this section.

(B)   The face amount of a check taken for deferred presentment or deposit may not exceed three four hundred dollars, exclusive of the fees allowed in Section 34-39-180(E).

(C)   Each check must be documented by a written agreement signed by both the customer and the licensee. The written agreement must contain the name or trade name of the licensee, the transaction date, the amount of the check, and a statement of the total amount of fees charged, expressed both as a dollar amount and as an effective annual percentage rate (APR). The written agreement must authorize expressly the licensee to defer presentment or deposit of the check until a specific date, not later than thirty-one days from the date the check is accepted by the licensee. The written agreement must also contain plain language developed by the board that sufficiently informs the customer regarding the nature of deferred presentment services, the deferred presentment service process, the customer's rights pursuant to this act, and any other information the board may require.

(D)   The board shall require each licensee to issue a standardized consumer notification and disclosure form in compliance with state and federal truth-in-lending laws before entering into a deferred presentment agreement.

(E)   Except as otherwise provided in this chapter, A a licensee shall not charge, directly or indirectly, a fee or other consideration in excess of fifteen percent of the face amount of the check advanced for accepting a check for deferred presentment or deposit. The fee or other consideration authorized by this subsection may be imposed only once for each written agreement. Records must be kept by each licensee with sufficient detail to ensure that the fee or other consideration authorized by this subsection may be imposed only once for each written agreement.

(F)   A check accepted for deferred presentment or deposit pursuant to this chapter may not be repaid from the proceeds of another check accepted for deferred presentment or deposit by the same licensee or an affiliate of the licensee. A Except as provided in this chapter, a licensee shall not renew or otherwise extend presentment of a check or withhold the check from deposit, for old or new consideration, for a period beyond the time set forth in the written agreement with the customer.

(G)   If a check is returned to the licensee from a payer financial institution due to insufficient funds, closed account, or stop payment order, the licensee may pursue all legally available civil means to collect the check including, but not limited to, the imposition of a returned check charge as provided in Section 34-11-70(a), except that the service charge imposed by the licensee shall not exceed the lesser of ten dollars or the fee imposed by the financial institution on the licensee for the returned check. An individual who issues a personal check to a licensee under a deferred presentment agreement is not subject to criminal penalty."

SECTION   3.   Section 34-39-200 of the 1976 Code is amended to read:

"Section 34-39-200.   A person required to be licensed pursuant to this chapter may not:

(1)   charge fees in excess of those authorized by this chapter;

(2)   engage in the business of:

(i)     making loans of money or extension of credit;

(ii)   discounting notes, bills of exchange, items, or other evidences of debt; or

(iii)   accepting deposits or bailments of money or items, except as expressly provided by Section 34-39-180;

(3)   use or cause to be published or disseminated advertising communication which contains false, misleading, or deceptive statements or representations;

(4)   conduct business at premises or locations other than locations licensed by the board;

(5)   engage in unfair, deceptive, or fraudulent practices, including unconscionable conduct in violation of Section 37-5-108;

(6)   alter or delete the date on a check accepted by the licensee;

(7)   accept an undated check or a check dated on a date other than the date on which the licensee accepts the check;

(8)   require a customer to provide security for the transaction or require the customer to provide a guaranty from another person;

(9)   engage in the retail sale of goods or services, other than deferred presentment services and Level I check-cashing services as defined in Section 34-41-10, at the location licensed pursuant to this chapter, provided, however, that a sale of money orders, postage stamps, payment of utility bills with no additional fee to the customer, vending machines for food or beverage, facsimile services, Western Union money transmission services, or postal boxes at rates not higher than allowed by the United States Postal Service is not the sale of goods or services prohibited by this subsection;

(10)   be licensed pursuant to Section 12-21-2720(a)(3) to operate a video poker machine; or

(11)   permit others to engage in an activity prohibited by this section at a location licensed pursuant to this chapter; or

(12)   broker or arrange a deferred presentment transaction on behalf of a third-party lender, unless the transaction complies with the provisions of this act and is not preempted by federal law."

SECTION   4.   Chapter 39, Title 34 of the 1976 Code is amended by adding:

"Section 34-39-270.   (A)   Subject to the terms and conditions contained in this section, a person may pay any outstanding deferred presentment transaction by means of an extended payment plan.

(B)   During any twelve-month period, a person may enter into no more than one plan with any licensee.

(C)   A licensee must enter into a written plan agreement with the person if the person, before the deferred presentment transaction's due date, requests a plan, pays all accrued finance charges, and signs an amendment to the written agreement that memorializes the plan's terms.

(D)   The plan's terms must allow the person, at no additional cost, to repay the deferred presentment transaction in four substantially equal installments. Each plan installment must coincide with a date on which the person receives regular income. The person may prepay a plan in full at any time without penalty. If the person fails to pay any plan installment when due, then the plan is terminated and the licensee may immediately accelerate and collect the unpaid transaction balance.

(E)   A licensee must notify a person of the person's plan rights by displaying the following statement, in at least ten-point bold type, on the first page of the written agreement:

'You should use a deferred presentment transaction only for a short-term credit need. If you have a long-term credit need, then you should consider a less-expensive credit alternative or seek the advice of a non-profit credit counselor. If you have not entered into an extended payment plan with any deferred presentment licensee during the previous twelve months, then you may repay this transaction by means of an extended payment plan. If you elect to exercise your extended payment plan rights, then you must, before this transaction's due date, request an extended payment plan, pay all accrued finance charges, and sign an amendment to this agreement that memorializes the extended payment plan terms. The extended payment plan terms will allow you, at no additional cost, to repay this transaction in four substantially equal installments. Each extended payment plan installment must coincide with a date on which you receive regular income. You may prepay an extended payment plan in full at any time without penalty. If you fail to pay any extended payment plan installment when due, then the extended payment plan is terminated and we may immediately accelerate and collect the unpaid transaction balance.'"

SECTION   5.   Chapter 39, Title 34 of the 1976 Code is amended by adding:

"Section 34-39-280.   (A)   A licensee shall not enter into a deferred presentment transaction with a person who has:

(1)   an outstanding deferred presentment transaction with any licensee;

(2)   had a deferred presentment transaction with any licensee in the previous seven days; or

(3)   had five or more deferred presentment transactions with any licensee within the previous twelve months.

(B)   Before entering into a deferred presentment transaction with a person, a licensee shall verify whether the person is eligible to enter into the transaction by inquiring of the person, checking the licensee's records, and accessing the deferred presentment transaction database established pursuant to subsection (C).

(C)   The board shall contract with a single third party database provider to establish and operate a deferred presentment transaction database for the purpose of verifying whether a person is eligible to enter into a deferred presentment transaction. The board shall supervise the establishment and operation of the database and shall ensure that the database provider establishes and operates the database pursuant to the provisions of this section. The board shall have full access to the database and all records related to the database for purposes of supervising the establishment and operation of the database. If the database provider violates a provision of this section, the board shall terminate the contract. The database must have real-time access through an internet connection and be accessible at all times to the board and licensees. The database provider shall establish and maintain a process for responding to transaction verification requests when technical difficulties prevent the licensee from accessing the database through the internet, including, but not limited to, verification by telephone. The database must be set up to notify the board if a licensee or a person enters into a transaction in violation of the provisions of this section.

(D)   To conduct an inquiry as to whether a person is eligible to enter into a deferred presentment transaction, a licensee shall submit to the database provider such information as the board may require. The response to an inquiry to the database provider by a licensee must only state that a person is eligible or ineligible to enter into a transaction and describe the reason for that determination. The person seeking to enter into the transaction may make a direct inquiry to the database provider to request a more detailed explanation of the basis for the database provider's determination that the person is ineligible to enter into the transaction.

(E)   A licensee shall notify the database provider immediately when the licensee has entered into a deferred presentment transaction with a person. The licensee shall submit to the database provider such information as the board may require. When the transaction is closed, the licensee shall designate the transaction as closed and immediately notify the database provider. When the database provider receives notification that the transaction has been closed, the database provider shall immediately designate the transaction as closed in the database.

(F)   A licensee shall notify a person seeking to enter into a deferred presentment transaction that the licensee will be accessing the database to verify whether the person is eligible to enter into a transaction. The licensee shall also notify the person that information related to any new transaction will be entered into the database.

(G)   The database provider may charge a database verification fee to a licensee for an inquiry as to whether a person is eligible to enter into a deferred presentment transaction. The fee must be established by the board and must not exceed the actual cost of verifying a person's eligibility. A licensee may charge a person seeking to enter into a deferred presentment transaction one half of the actual cost of the verification fee.

(H)   Except as otherwise provided in this section, all personally identifiable information regarding any 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 database provider and licensees shall only use the information collected under this section as prescribed in this section and for no other purpose.

(I)   A licensee may rely on the information contained in the database as accurate and is not subject to any administrative penalty or civil liability as a result of relying on inaccurate information contained in the database."

SECTION   6.   This act takes effect January 1, 2008.       /

Renumber sections to conform

Amend title to conform.

Senator MARTIN asked unanimous consent to make a motion to carry over the amendment proposed by the Committee on Judiciary.

The amendment proposed by the Committee on Judiciary was carried over and subsequently withdrawn.

Amendment Proposed by the Committee on Banking and Insurance Tabled

The Committee on Banking and Insurance proposed the following amendment (AGM\18820MM07), which was tabled:

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

/   SECTION   1.   Chapter 39 of Title 34 is amended by adding:

"Section 34-39-175.   (A)   The Consumer Finance Division of the Board of Financial Institutions shall implement a common database with real-time access through an Internet connection for deferred presentment providers, as provided in this subsection. The Board is authorized to enter into a contract with a single source private vendor to develop and operate the database. The database must be accessible to the board and the deferred presentment providers to verify if deferred presentment transactions are outstanding for a particular person. Deferred presentment providers shall submit that data before entering into a deferred presentment transaction and once a deferred presentment transaction has been paid in full, in a format the board requires by rule including the drawer's name, social security number or employment authorization alien number, address, driver's license number, amount of the transaction, date of transaction, the date that the transaction is closed, and additional information required by the board. The board may impose a fee not to exceed one dollar for each transaction for data required to be submitted by a licensee. A licensee may rely on the information contained in the database as accurate and is not subject to any administrative penalty or civil liability as a result of relying on inaccurate information contained in the database. The board may adopt rules to administer and enforce the provisions of this section and to ensure that the database is used by licensees in accordance with this section.

(B)   The information provided in the database is limited for the use in determining if a customer is eligible or ineligible to enter into a new deferred presentment transaction and to describe the reason for the determination of eligibility or ineligibility."

SECTION   2.   Chapter 39, Title 34 of the 1976 Code is amended by adding:

"Section 34-39-270.   (A)   A licensee may not enter into a deferred presentment transaction with a person who has:

(1)   one or more outstanding deferred presentment transactions that are equal to the maximum loan amount permitted by this chapter; or

(2)   had a deferred presentment transaction closed out with any licensee in the previous two full business days;

(B)   Before entering into a deferred presentment transaction with a person, a licensee shall verify whether the person is eligible to enter into the transaction by inquiring of the person, checking the licensee's records, and accessing the deferred presentment transaction database established pursuant to subsection (C) and Section 34-39-175.

(C)   The board shall contract with a single third party database provider to establish and operate a deferred presentment transaction database for the purpose of verifying whether a person is eligible to enter into a deferred presentment transaction. The board shall supervise the establishment and operation of the database and shall ensure that the database provider establishes and operates the database pursuant to the provisions of this section. The board shall have full access to the database and all records related to the database for purposes of supervising the establishment and operation of the database. If the database provider violates a provision of this section, the board shall terminate the contract. The database must have real-time access through an internet connection and be accessible at all times to the board and licensees. The database provider shall establish and maintain a process for responding to transaction verification requests when technical difficulties prevent the licensee from accessing the database through the internet including, but not limited to, verification by telephone. The database must be set up so as to notify the board if a licensee or a person enters into a transaction in violation of the provisions of this section.

(D)   To conduct an inquiry as to whether a person is eligible to enter into a deferred presentment transaction, a licensee shall submit to the database provider such information as the board may require. The response to an inquiry to the database provider by a licensee must state only that a person is eligible or ineligible to enter into a transaction and describe the reason for that determination. The person seeking to enter into the transaction may make a direct inquiry to the database provider to request a more detailed explanation of the basis for the database provider's determination that the person is ineligible to enter into the transaction.

(E)   A licensee shall notify the database provider immediately when the licensee enters into a deferred presentment transaction with a person. The licensee shall submit to the database provider such information as the board requires. When the transaction is closed, the licensee shall designate the transaction as closed and immediately notify the database provider. When the database provider receives notification that the transaction is closed, the database provider immediately shall designate the transaction as closed in the database.

(F)   A licensee shall notify a person seeking to enter into a deferred presentment transaction that the licensee shall access the database to verify whether the person is eligible to enter into a transaction. The licensee also shall notify the person that information related to a new transaction must be entered into the database.

(G)   The database provider may charge a database verification fee to a licensee for an inquiry as to whether a person is eligible to enter into a deferred presentment transaction. The fee must be established by the board and may not exceed the actual cost of verifying a person's eligibility. A licensee may charge a person seeking to enter into a deferred presentment transaction one half of the actual cost of the verification fee.

(H)   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 database provider and licensees shall use the information collected pursuant to this section only as prescribed in this section and for no other purpose.

(I)   A licensee may rely on the information contained in the database as accurate and is not subject to any administrative penalty or civil liability as a result of relying on inaccurate information contained in the database.

Section 34-39-280.   (A)   Subject to the terms and conditions contained in this section, a customer may pay any outstanding deferred presentment transaction by means of an extended payment plan.

(B)   A licensee must enter into a written plan agreement with the customer if the customer, on or before the deferred presentment transaction's due date, requests a plan and signs an amendment to the written agreement that memorializes the plan's terms.

(C)   The plan's terms must allow the customer, at no additional cost, to repay the deferred presentment transaction in sixty days. Each plan installment must coincide with a date on which the customer receives regular income. The customer may prepay a plan in full at any time without penalty. If the customer fails to pay any plan installment when due, the plan is terminated and the licensee immediately may accelerate and collect the unpaid transaction balance.

(D)   A licensee must notify the customer of his plan rights by displaying the following statement, in at least 12-point bold type, on the first page of the written agreement:

'You should use a deferred presentment transaction only for a short-term credit need. If you have a long-term credit need, you should consider a less costly way to borrow money or seek the advice of a nonprofit credit counselor. You may repay this contract through an extended payment plan. If you choose this right, then you must, on or before the date this contract is due, ask for an extended payment plan. You will be asked to sign a new agreement for this extended payment plan. The extended payment plan must let you repay this contract in equal installments over the next sixty days. There will be no additional cost. Each extended payment plan installment must match with a date on which you receive regular income. You may prepay an extended payment plan in full at any time without penalty. If you fail to pay an extended payment plan installment when due, the extended payment plan will end and we may collect immediately the unpaid contract balance.'

Section 34-29-290.   Based upon data provided by the database vendor, the Board of Financial Institutions annually shall report to the General Assembly the following information for loans made in South Carolina in the previous reporting year, specifically the number of:

(1)   loans made in South Carolina by loan amount and the dollar amount of fees collected by loan amount;

(2)   individual borrowers by loan amount and the number of borrowers by the number of times each borrower took out a loan;

(3)   borrowers who chose to pay off their loans through an Extended Payment Plan by loan amount;

(4)   loans that were not paid off in the previous year by loan amount; and

(5)   loans on which the lender submitted the check for collection by loan amount and the number of loans on which the lender took action for collection."

SECTION   3.   Section 34-39-130 of the 1976 Code, as added by Act 433 of 1998, is amended by adding at the end:

"(C)   A person may not engage in the business of deferred presentment services with a customer residing in this State, whether or not that person has a location in South Carolina, except in accordance with the provisions of this chapter and without having first obtained a license pursuant to this chapter.

(D)(1)   A licensee pursuant to this chapter may not offer, arrange, act as an agent for, or assist a deferred deposit originator in any way in the making of a deferred deposit transaction unless the deferred deposit originator complies with all applicable federal and state laws and regulations including this chapter.

(2)   This prohibition does not apply to the arranger, agent, or assistant to a state or federally chartered bank, thrift, savings association, or credit union if, upon review of the entire circumstances, the state or federally chartered bank, thrift, savings association, or credit union:

(a)   initially advanced the loan proceeds to the customer;

(b)   maintained a preponderant economic interest in the loan after its initiation; and

(c)   developed the deferred deposit transaction product or products on its own without involvement of the licensee.

(3)   If a licensee offers, arranges, acts as an agent for, or assists a state or federally chartered bank, thrift, savings association, or credit union in the making of a deferred deposit transaction and the licensee demonstrates that the standards in item (2)(a), (b), and (c) are met, the licensee must comply with all other provisions of this chapter to the extent that they are not preempted by other federal or state law."

SECTION   4.   Section 34-39-150(C) and (D) of the 1976 Code, as added by Act 433 of 1998, is amended to read:

"(C)   The application must be accompanied by payment of an application fee of two hundred fifty dollars five hundred dollars and an investigation fee of five hundred dollars. These fees are not refundable or abatable. If the license is granted, however, payment of the application fee satisfies the fee requirement for the first license year or its remainder.

(D) A license expires annually and may be renewed upon payment of a license fee of two hundred fifty dollars five hundred dollars. The annual license renewal fee for an applicant with more than one location is two hundred fifty five hundred dollars for the first location and fifty one hundred dollars for each additional location. The Board of Financial Institutions shall disburse one half of the license fees collected to the SC Attorney General's office to establish and maintain a division to enforce the provisions of this chapter."

SECTION   5.   Section 34-39-180 of the 1976 Code, as added by Act 433 of 1998, is amended to read:

"Section 34-39-180.   (A) A licensee may defer the presentment or deposit of a check. for up to thirty-one days pursuant to the provisions of this section.

(B) (A)   The total amount advanced by all licensees to any customer for deferred presentment or deposit may not exceed the lesser of twenty percent of the customer's gross income during the term of the loan or five hundred dollars, exclusive of the fees allowed in Section 34-39-180(E). A licensee may not advance to a customer an amount for deferred presentment or deposit which causes this limit to be exceeded by that customer.

(B)   Each check must be documented by a written agreement signed by both the customer and the licensee. The written agreement must contain the name or trade name of the licensee, the transaction date, the amount of the check, and a statement of the total amount of fees charged, expressed both as a dollar amount and as an effective annual percentage rate (APR). The written agreement must authorize expressly the licensee to defer presentment or deposit of the check until a specific date, not later than thirty-one days from the date the check is accepted by the licensee. The written agreement also must contain plain language developed by the board which sufficiently informs the customer regarding the nature of deferred presentment services, the deferred presentment service process, the customer's rights pursuant to this chapter, information to file complaints with the South Carolina Department of Consumer Affairs and the South Carolina Attorney General's Office, and other information the board may require.

(C)   The board shall require each licensee to issue a standardized consumer notification and disclosure form in compliance with state and federal truth-in-lending laws before entering into a deferred presentment agreement with a customer.

(D)   A licensee shall may not charge, directly or indirectly, a fee or other consideration in excess of fifteen percent of the face amount of the check advanced for accepting a check for deferred presentment or deposit. The fee or other consideration authorized by this subsection may be imposed only once for each written agreement. Records must be kept by each licensee with sufficient detail to ensure that the fee or other consideration authorized by this subsection may be is imposed only once for each written agreement.

(E)   A check accepted for deferred presentment or deposit pursuant to this chapter may must not be repaid from the proceeds of another check accepted for deferred presentment or deposit by the same licensee or an affiliate of the licensee. A licensee shall may not renew or otherwise extend presentment of a check or withhold the check from deposit, for old or new consideration, for a period beyond the time set forth in the written agreement with the customer.

(F)   If a check is returned to the licensee from a payer financial institution due to insufficient funds, closed account, or stop payment order, the licensee may pursue all legally available civil means to collect the check including, but not limited to, the imposition of a returned check charge as provided in Section 34-11-70(a), except that the service charge imposed by the licensee shall may not exceed the lesser of ten dollars or the fee imposed by the financial institution on the licensee for the returned check. An individual who issues a personal check to a licensee under a deferred presentment agreement is not subject to criminal penalty."

SECTION   6.   Section 34-39-200 of the 1976 Code, as added by Act 433 of 1998, is amended to read:

"Section 34-39-200.   A person required to be licensed pursuant to this chapter may not:

(1)   charge fees in excess of those authorized by this chapter;

(2)   engage in the business of:

(i)   making loans of money or extension of credit;

(ii)   discounting notes, bills of exchange, items, or other evidences of debt; or

(iii)   accepting deposits or bailments of money or items, except as expressly provided by Section 34-39-180;

(3)   use or cause to be published or disseminated advertising communication which contains false, misleading, or deceptive statements or representations;

(4)   conduct business at premises or locations other than locations licensed by the board;

(5)   engage in unfair, deceptive, or fraudulent practices, including unconscionable conduct in violation of Section 37-5-108;

(6)   alter or delete the date on a check accepted by the licensee;

(7)   accept an undated check or a check dated on a date other than the date on which the licensee accepts the check;

(8)   require a customer to provide security for the transaction or require the customer to provide a guaranty from another person;

Senator HAYES moved to table the amendment proposed by the Committee on Banking and Insurance.

The amendment proposed by the Committee on Banking and Insurance was laid on the table.

Amendment No. 6

Senators HAWKINS, MALLOY and RANKIN proposed the following Amendment No. 6 (398R011.JDH), which was adopted, subsequently reconsidered and tabled:

Amend the bill, as and if amended, by striking Section 34-39-180 and inserting:

/   "Section 34-39-180.   (A) A licensee may defer the presentment or deposit of a check. for up to thirty-one days pursuant to the provisions of this section.

(B)(A)   The total amount advanced by all licensees to any customer for deferred presentment or deposit may not exceed the lesser of twenty-five percent of the customer's gross income during the term of the loan or five hundred dollars, exclusive of the fees allowed in Section 34-39-180(E). A licensee may not advance to a customer an amount for deferred presentment or deposit which causes this limit to be exceeded by that customer.

(B)   The face amount of a check taken for deferred presentment or deposit may not exceed three hundred dollars, exclusive of the fees allowed in Section 34-39-180(E). A licensee may not utilize electronic funds transfer to secure funds under a deferred presentment contract for individuals who receive Social Security or Supplemental Security Insurance income.

(C)   Each check must be documented by a written agreement signed by both the customer and the licensee. The written agreement must contain the name or trade name of the licensee, the transaction date, the amount of the check, and a statement of the total amount of fees charged, expressed both as a dollar amount and as an effective annual percentage rate (APR). The written agreement must authorize expressly the licensee to defer presentment or deposit of the check until a specific date, not later than thirty-one days from the date the check is accepted by the licensee. The written agreement also must contain plain language developed by the board which sufficiently informs the customer regarding the nature of deferred presentment services, the deferred presentment service process, the customer's rights pursuant to this chapter, information to file complaints with the South Carolina Department of Consumer Affairs and the South Carolina Attorney General's Office, and other information the board may require.

(D)   The board shall require each licensee to issue a standardized consumer notification and disclosure form in compliance with state and federal truth-in-lending laws before entering into a deferred presentment agreement with a customer.

(E)   A licensee shall may not charge, directly or indirectly, a fee or other consideration in excess of fifteen percent of the face amount of the check advanced for accepting a check for deferred presentment or deposit. The fee or other consideration authorized by this subsection may be imposed only once for each written agreement. Records must be kept by each licensee with sufficient detail to ensure that the fee or other consideration authorized by this subsection may be is imposed only once for each written agreement.

(F)   A check accepted for deferred presentment or deposit pursuant to this chapter may must not be repaid from the proceeds of another check accepted for deferred presentment or deposit by the same licensee or an affiliate of the licensee. A licensee shall may not renew or otherwise extend presentment of a check or withhold the check from deposit, for old or new consideration, for a period beyond the time set forth in the written agreement with the customer. A licensee shall not enter into a deferred presentment agreement with a customer who has entered into an extended payment plan agreement with any licensee as provided in Section 34-39-280.

(G)   If a check is returned to the licensee from a payer financial institution due to insufficient funds, closed account, or stop payment order, the licensee may pursue all legally available civil means to collect the check including, but not limited to, the imposition of a returned check charge as provided in Section 34-11-70(a), except that the service charge imposed by the licensee shall may not exceed the lesser of ten dollars or the fee imposed by the financial institution on the licensee for the returned check. An individual who issues a personal check to a licensee under a deferred presentment agreement is not subject to criminal penalty."       /

Renumber sections to conform.

Amend title to conform.

Senator HAWKINS explained the amendment.

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

Ayes 39; Nays 1

AYES

Alexander                 Anderson                  Campbell
Ceips                     Cleary                    Courson
Cromer                    Elliott                   Fair
Ford                      Gregory                   Grooms
Hawkins                   Hayes                     Hutto
Jackson                   Knotts                    Land
Leatherman                Leventis                  Lourie
Malloy                    Martin                    Massey
Matthews                  McConnell                 McGill
O'Dell                    Patterson                 Peeler
Pinckney                  Rankin                    Reese
Ryberg                    Scott                     Setzler
Sheheen                   Thomas                    Williams

Total--39

NAYS

Bryant

Total--1

The amendment was adopted.

Amendment No. 7

Senators LOURIE, RANKIN and MALLOY proposed the following Amendment No. 7 (398R012.JL), which was adopted:

Amend the bill, as and if amended, by striking Section 34-39-280(A)(3) and inserting:

/   (3)   had a deferred presentment transaction with any licensee in the previous seven days.     /

Renumber sections to conform.

Amend title to conform.

Senator LOURIE explained the amendment.

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

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

Ayes 25; Nays 15

AYES

Anderson                  Cleary                    Courson
Cromer                    Elliott                   Fair
Ford                      Gregory                   Hawkins
Hutto                     Jackson *                 Leventis
Lourie                    Malloy                    Massey
Matthews                  McGill                    Patterson
Pinckney                  Rankin                    Scott
Sheheen                   Short                     Thomas
Williams

Total--25

NAYS

Alexander                 Bryant                    Campbell
Ceips                     Grooms                    Hayes
Land                      Martin                    McConnell
O'Dell                    Peeler                    Reese
Ritchie                   Ryberg                    Setzler

Total--15

*This Senator was not present in the Chamber at the time the vote was taken and the vote was recorded by leave of the Senate, with unanimous consent.

The amendment was adopted.

Amendment No. 8

Senators SHEHEEN, MALLOY, RANKIN, HAWKINS and ANDERSON proposed the following Amendment No. 8 (398R014.VAS), which was adopted:

Amend the bill, as and if amended, by striking Section 34-39-270(A)(1) and inserting:

/   (1)   who has an outstanding deferred presentment transaction with any licensee;   /

Renumber sections to conform.

Amend title to conform.

Senator SHEHEEN explained the amendment.

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

Ayes 37; Nays 3

AYES

Alexander                 Anderson                  Ceips
Cleary                    Courson                   Cromer
Elliott                   Fair                      Ford
Gregory                   Grooms                    Hawkins
Hayes                     Hutto                     Jackson
Knotts                    Land                      Leventis
Lourie                    Malloy                    Martin
Massey                    Matthews                  McConnell
McGill                    O'Dell                    Patterson
Peeler                    Pinckney                  Rankin
Ryberg                    Scott                     Setzler
Sheheen                   Short                     Thomas
Williams

Total--37

NAYS

Bryant                    Campbell                  Reese

Total--3

The amendment was adopted.

Amendment No. 12

Senators LOURIE and RANKIN proposed the following Amendment No. 12 (398R017.JL), which was adopted:

Amend the bill, as and if amended, by adding an appropriately numbered new item to Section 34-39-180 to read:

/   ( )   The board shall develop a form that must be used by all licensees to calculate the maximum amount of funds it may lend a customer based on the customer's income during the term of the loan as required by subsection (A). The form and copies of the documentation verifying the customer's income shall be maintained by the licensee and a copy of both attached to the written agreement signed by the customer."       /

Renumber sections to conform.

Amend title to conform.

Senator LOURIE explained the amendment.

The amendment was adopted.

Amendment No. 13

Senator HAWKINS proposed the following Amendment No. 13 (398R015.JDH), which was tabled:

Amend the bill, as and if amended, by striking Section 34-39-180(D) and inserting:

/   (D) A licensee shall not charge, directly or indirectly, a fee or other consideration in excess of fifteen percent of the face amount of the check for accepting a check for deferred presentment or deposit. The fee or other consideration authorized by this subsection may be imposed only once for each written agreement. Records must be kept by each licensee with sufficient detail to ensure that the fee or other consideration authorized by this subsection may be imposed only once for each written agreement.(1) A licensee may charge an administrative fee of no more than five dollars for each deferred presentment loan entered into with a customer. Each licensee must keep records with sufficient detail to ensure that the fee or other consideration authorized by this subsection is imposed only once for each written agreement.

(2) In addition to the administrative fee, the licensee may charge interest on the amount of cash delivered to the customer in an amount no greater than one hundred percent for each three hundred and sixty-five-day year. The rate charged on the outstanding balance after maturity must not be greater than the rate charged during the loan term. Charges on loans must be computed and paid only as a percentage of the unpaid principal balance. 'Principal balance' means the balance due and owing exclusive of any interest, service charges, or other loan-related charges.     /

Renumber sections to conform.

Amend title to conform.

Senator HAWKINS explained the amendment.

Senator HAYES moved to lay the amendment on the table.

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

Ayes 23; Nays 19

AYES

Alexander                 Bryant                    Campbell
Ceips                     Cleary                    Cromer
Drummond                  Gregory                   Grooms
Hayes                     Knotts                    Land
Leatherman                Martin                    Massey
McConnell                 McGill                    Peeler
Reese                     Ritchie                   Ryberg
Short                     Thomas

Total--23

NAYS

Anderson                  Courson                   Elliott
Fair                      Ford                      Hawkins
Hutto                     Jackson                   Leventis
Lourie                    Malloy                    Matthews
Patterson                 Pinckney                  Rankin
Scott                     Setzler                   Sheheen
Williams

Total--19

The amendment was laid on the table.

Amendment No. 23

Senator HAYES proposed the following Amendment No. 23 (398R028.RWH), which was adopted:

Amend the bill, as and if amended, by adding a new SECTION to read:

/   SECTION   ___.   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.   /

Renumber sections to conform.

Amend title to conform.

Senator HAYES explained the amendment.

The amendment was adopted.

Senator HAWKINS spoke on the Bill.

Senator MALLOY spoke on the Bill.

Adoption of Amendment No. 6 Reconsidered and
Amendment No. 6 Tabled

Having voted on the prevailing side, Senator McCONNELL moved to reconsider the vote whereby Amendment No. 6 was adopted.

The motion was adopted to reconsider the vote whereby Amendment No. 6 was adopted.

The question then was the adoption of Amendment No. 6.

Senator RITCHIE moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 24

Senator RANKIN proposed the following Amendment No. 24 (398R030.LAR), which was adopted:

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

/   SECTION ____.   Section 34-39-170 of the 1976 Code is amended by adding an appropriately numbered new item to read:

"( )   A licensee and a customer may not enter into an electronic funds transfer agreement to make automatic debited loan payments for any portion of a deferred presentment agreement."         /

Renumber sections to conform.

Amend title to conform.

Senator RANKIN explained the amendment.

Senator RANKIN moved that the amendment be adopted.

The amendment was adopted.

Amendment No. 25

Senator RYBERG proposed the following Amendment No. 25 (398R031.WGR), which was adopted:

Amend the bill, as and if amended, by striking Section 34-39-160 and inserting:

/   "Section 34-39-160.   To qualify for a license issued pursuant to this chapter, an applicant shall have:

(1)   a minimum net worth, determined in accordance with generally accepted accounting principles, of at least twenty-five thousand dollars available for the operation of each location; and

(2)   the financial responsibility, character, experience, and general fitness so as to command the confidence of the public and to warrant belief that the business is operated lawfully, honestly, fairly, and efficiently."     /

Renumber sections to conform.

Amend title to conform.

Senator RYBERG explained the amendment.

The amendment was adopted.

On motion of Senator HAYES, with unanimous consent, the amendment proposed by the Committee on Judiciary, which was previously carried over, was withdrawn.

Amendment No. 1A

Senator THOMAS proposed the following Amendment No. 1A(398R033.DLT), which was adopted:

Amend the bill, as and if amended, Section 34-39-150(D) as found in SECTION 4, by deleting subsection (D) in its entirety and inserting:

/   (D)   A license expires annually and may be renewed upon payment of a license fee of two hundred fifty dollars five hundred dollars. The annual license renewal fee for an applicant with more than one location is two hundred fifty five hundred dollars for the first location and fifty one hundred dollars for each additional location. All license fees collected must be remitted to the general fund.     /

Amend the bill further, Section 34-39-180(B) as found in SECTION 5, by deleting after / Consumer Affairs / the following: /     and the South Carolina Attorney General's office       / .

Renumber sections to conform.

Amend title to conform.

Senator THOMAS explained the amendment.

Senator LEATHERMAN spoke on the amendment.

The amendment was adopted.

Clerk's Conforming Amendment

The following amendment incorporates all amendments which were adopted on S. 398:

Amendment No. 30

Senators RITCHIE, HAYES, LAND, McCONNELL, O'DELL, REESE, FORD, JACKSON, CLEARY and CEIPS proposed the following Amendment No. 30 (398R032.JHR), which was adopted:

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

SECTION   1.   Chapter 39 of Title 34 is amended by adding:

"Section 34-39-175.   (A)   The Consumer Finance Division of the Board of Financial Institutions shall implement a common database with real-time access through an internet connection for deferred presentment providers, as provided in this subsection. The board is authorized to enter into a contract with a single source private vendor to develop and operate the database. The database must be accessible to the board and the deferred presentment providers to verify if deferred presentment transactions are outstanding for a particular person. Deferred presentment providers shall submit that data before entering into a deferred presentment transaction and once a deferred presentment transaction has been paid in full, in a format the board requires by rule including the drawer's name, social security number or employment authorization alien number, address, driver's license number, amount of the transaction, date of transaction, the date that the transaction is closed, and additional information required by the board. The board may impose a fee not to exceed one dollar for each transaction for data required to be submitted by a licensee. A licensee may rely on the information contained in the database as accurate and is not subject to any administrative penalty or civil liability as a result of relying on inaccurate information contained in the database. The board may adopt rules to administer and enforce the provisions of this section and to ensure that the database is used by licensees in accordance with this section.

(B)   The information provided in the database is limited for the use in determining if a customer is eligible or ineligible to enter into a new deferred presentment transaction and to describe the reason for the determination of eligibility or ineligibility."

SECTION   2.   Chapter 39, Title 34 of the 1976 Code is amended by adding:

"Section 34-39-270.   (A)   A licensee may not enter into a deferred presentment transaction with a person:

(1)   who has an outstanding deferred presentment transaction with any licensee;

(2)   who has entered into an extended payment plan agreement as provided in Section 34-39-280 which has not been paid in full or terminated; or

(3)   sooner than the seventh day after the date upon which the person last closed out a deferred presentment transaction with any licensee.

(B)   Before entering into a deferred presentment transaction with a person, a licensee shall verify whether the person is eligible to enter into the transaction by inquiring of the person, checking the licensee's records, and accessing the deferred presentment transaction database established pursuant to subsection (C).

(C)   The board shall contract with a single third party database provider to establish and operate a deferred presentment transaction database for the purpose of verifying whether a person is eligible to enter into a deferred presentment transaction. The board shall supervise the establishment and operation of the database and shall ensure that the database provider establishes and operates the database pursuant to the provisions of this section. The board shall have full access to the database and all records related to the database for purposes of supervising the establishment and operation of the database. If the database provider violates a provision of this section, the board shall terminate the contract. The database must have real-time access through an internet connection and be accessible at all times to the board and licensees. The database provider shall establish and maintain a process for responding to transaction verification requests when technical difficulties prevent the licensee from accessing the database through the internet including, but not limited to, verification by telephone. The database must be set up so as to notify the board if a licensee or a person enters into a transaction in violation of the provisions of this section.

(D)   To conduct an inquiry as to whether a person is eligible to enter into a deferred presentment transaction, a licensee shall submit to the database provider such information as the board may require. The response to an inquiry to the database provider by a licensee must state only that a person is eligible or ineligible to enter into a transaction and describe the reason for that determination. The person seeking to enter into the transaction may make a direct inquiry to the database provider to request a more detailed explanation of the basis for the database provider's determination that the person is ineligible to enter into the transaction.

(E)   A licensee shall notify the database provider immediately when the licensee enters into a deferred presentment transaction with a person. The licensee shall submit to the database provider such information as the board requires. When the transaction is closed, the licensee shall designate the transaction as closed and immediately notify the database provider. When the database provider receives notification that the transaction is closed, the database provider immediately shall designate the transaction as closed in the database.

(F)   A licensee shall notify a person seeking to enter into a deferred presentment transaction that the licensee shall access the database to verify whether the person is eligible to enter into a transaction. The licensee also shall notify the person that information related to a new transaction must be entered into the database.

(G)   The database provider may charge a database verification fee to a licensee for an inquiry as to whether a person is eligible to enter into a deferred presentment transaction, if that transaction is consummated by the licensee. The fee must be established by the board and may not exceed the actual cost of verifying a person's eligibility. A licensee may charge a person seeking to enter into a deferred presentment transaction one-half of the actual cost of the verification fee.

(H)   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 database provider and licensees shall use the information collected pursuant to this section only as prescribed in this section and for no other purpose.

(I)   A licensee may rely on the information contained in the database as accurate and is not subject to any administrative penalty or civil liability as a result of relying on inaccurate information contained in the database.

Section 34-39-280.   (A)   Subject to the terms and conditions contained in this section, a customer may pay any outstanding deferred presentment transaction by means of an extended payment plan.

(B)   A licensee must enter into a written plan agreement with the customer if the customer, on or before the deferred presentment transaction's due date, requests a plan and signs an amendment to the written agreement that memorializes the plan's terms and must enter the information into the database established in Section 34-29-175 that the customer has an extended payment plan.

(C)   The plan's terms must allow the customer, at no additional cost, to repay the deferred presentment transaction in substantially equal installments over not less than sixty days. Each plan installment must coincide with a date on which the customer receives regular income. The customer may prepay a plan in full at any time without penalty. If the customer fails to pay any plan installment when due, the plan is terminated and the licensee immediately may accelerate and collect the unpaid transaction balance. The licensee may, with each payment under the plan by a customer, provide for the return of the customer's prior held check and require a new check for the remaining balance under the plan.

(D)   A licensee must notify the customer of his plan rights by displaying the following statement, in at least 12-point bold type, on the first page of the written agreement:

'You should use a deferred presentment transaction only for a short-term credit need. If you have a long-term credit need, you should consider a less costly way to borrow money or seek the advice of a nonprofit credit counselor. You may repay this contract through an extended payment plan. If you choose this right, then you must, on or before the date this contract is due, ask for an extended payment plan. You will be asked to sign a new agreement for this extended payment plan. The extended payment plan must let you repay this contract in substantially equal installments over the next sixty days. There will be no additional cost. Each extended payment plan installment must match with a date on which you receive regular income. You may prepay an extended payment plan in full at any time without penalty. If you fail to pay an extended payment plan installment when due, the extended payment plan will end and we may collect immediately the unpaid contract balance.'

Section 34-29-290.   Based upon data provided by the database vendor, the Board of Financial Institutions annually shall report to the General Assembly the following information for loans made in South Carolina in the previous reporting year, specifically the number of:

(1)   loans made in South Carolina by loan amount and the dollar amount of fees collected by loan amount;

(2)   individual borrowers by loan amount and the number of borrowers by the number of times each borrower took out a loan;

(3)   borrowers who chose to pay off their loans through an Extended Payment Plan by loan amount;

(4)   loans that were not paid off in the previous year by loan amount; and

(5)   loans on which the lender submitted the check for collection by loan amount and the number of loans on which the lender took action for collection."

SECTION   3.   Section 34-39-130 of the 1976 Code is amended by adding at the end:

"(C)   A person may not engage in the business of deferred presentment services with a customer residing in this State, whether or not that person has a location in South Carolina, except in accordance with the provisions of this chapter and without having first obtained a license pursuant to this chapter.

(D)(1)   A licensee pursuant to this chapter may not offer, arrange, act as an agent for, or assist a deferred deposit originator in any way in the making of a deferred deposit transaction unless the deferred deposit originator complies with all applicable federal and state laws and regulations including this chapter.

(2)   This prohibition does not apply to the arranger, agent, or assistant to a state or federally chartered bank, thrift, savings association, or credit union if, upon review of the entire circumstances, the state or federally chartered bank, thrift, savings association, or credit union:

(a)   initially advanced the loan proceeds to the customer;

(b)   maintained a preponderant economic interest in the loan after its initiation; and

(c)   developed the deferred deposit transaction product or products on its own without involvement of the licensee.

(3)   If a licensee offers, arranges, acts as an agent for, or assists a state or federally chartered bank, thrift, savings association, or credit union in the making of a deferred deposit transaction and the licensee demonstrates that the standards in item (2)(a), (b), and (c) are met, the licensee must comply with all other provisions of this chapter to the extent that they are not preempted by other federal or state law."

SECTION   4.   Section 34-39-150(C) and (D) of the 1976 Code is amended to read:

"(C)   The application must be accompanied by payment of an application fee of two hundred fifty dollars five hundred dollars and an investigation fee of five hundred dollars. These fees are not refundable or abatable. If the license is granted, however, payment of the application fee satisfies the fee requirement for the first license year or its remainder.

(D)   A license expires annually and may be renewed upon payment of a license fee of two hundred fifty dollars five hundred dollars. The annual license renewal fee for an applicant with more than one location is two hundred fifty five hundred dollars for the first location and fifty one hundred dollars for each additional location. All license fees collected must be remitted to the general fund."

SECTION   5.   Section 34-39-180 of the 1976 Code, as added by Act 433 of 1998, is amended to read:

"Section 34-39-180.   (A) A licensee may defer the presentment or deposit of a check for up to thirty-one days pursuant to the provisions of this section. The total amount advanced by all licensees to any customer for deferred presentment or deposit may not exceed the lesser of twenty-five percent of the customer's gross income during the term of the loan or five hundred dollars, exclusive of the fees allowed in Section 34-39-180(E). A licensee may not advance to a customer an amount for deferred presentment or deposit which causes this limit to be exceeded by that customer.

(B)   Each check must be documented by a written agreement signed by both the customer and the licensee. The written agreement must contain the name or trade name of the licensee, the transaction date, the amount of the check, and a statement of the total amount of fees charged, expressed both as a dollar amount and as an effective annual percentage rate (APR). The written agreement must authorize expressly the licensee to defer presentment or deposit of the check until a specific date, not later than thirty-one days from the date the check is accepted by the licensee. The written agreement also must contain plain language developed by the board which sufficiently informs the customer regarding the nature of deferred presentment services, the deferred presentment service process, the customer's rights pursuant to this chapter, information to file complaints with the South Carolina Department of Consumer Affairs and other information the board may require.

(C)   The board shall require each licensee to issue a standardized consumer notification and disclosure form in compliance with state and federal truth-in-lending laws before entering into a deferred presentment agreement with a customer.

(D)   A licensee shall may not charge, directly or indirectly, a fee or other consideration in excess of fifteen percent of the face amount of the check advanced for accepting a check for deferred presentment or deposit. The fee or other consideration authorized by this subsection may be imposed only once for each written agreement. Records must be kept by each licensee with sufficient detail to ensure that the fee or other consideration authorized by this subsection may be is imposed only once for each written agreement.

(E)   A check accepted for deferred presentment or deposit pursuant to this chapter may must not be repaid from the proceeds of another check accepted for deferred presentment or deposit by the same licensee or an affiliate of the licensee. A licensee shall may not renew or otherwise extend presentment of a check or withhold the check from deposit, for old or new consideration, for a period beyond the time set forth in the written agreement with the customer. A licensee shall not enter into a deferred presentment agreement with a customer who has entered into an extended payment plan agreement with any licensee as provided in Section 34-39-280.

(F)   If a check is returned to the licensee from a payer financial institution due to insufficient funds, closed account, or stop payment order, the licensee may pursue all legally available civil means to collect the check including, but not limited to, the imposition of a returned check charge as provided in Section 34-11-70(a), except that the service charge imposed by the licensee shall may not exceed the lesser of ten dollars or the fee imposed by the financial institution on the licensee for the returned check. An individual who issues a personal check to a licensee under a deferred presentment agreement is not subject to criminal penalty.

(G)   If a check is returned to the licensee from a payer financial institution due to insufficient funds, closed account, or stop payment order, the licensee may pursue all legally available civil means to collect the check including, but not limited to, the imposition of a returned check charge as provided in Section 34-11-70(a), except that the service charge imposed by the licensee shall not exceed the lesser of ten dollars or the fee imposed by the financial institution on the licensee for the returned check. An individual who issues a personal check to a licensee under a deferred presentment agreement is not subject to criminal penalty.

(H)   The board shall develop a form that must be used by all licensees to calculate the maximum amount of funds it may lend a customer based on the customer's income during the term of the loan as required by subsection (A). The form and copies of the documentation verifying the customer's income shall be maintained by the licensee and a copy of both attached to the written agreement signed by the customer."

SECTION   6.   Section 34-39-200 of the 1976 Code is amended to read:

"Section 34-39-200.   A person required to be licensed pursuant to this chapter may not:

(1)   charge fees in excess of those authorized by this chapter;

(2)   engage in the business of:

(i)     making loans of money or extension of credit;

(ii)   discounting notes, bills of exchange, items, or other evidences of debt; or

(iii)   accepting deposits or bailments of money or items, except as expressly provided by Section 34-39-180;

(3)   use or cause to be published or disseminated advertising communication which contains false, misleading, or deceptive statements or representations;

(4)   conduct business at premises or locations other than locations licensed by the board;

(5)   engage in unfair, deceptive, or fraudulent practices, including unconscionable conduct in violation of Section 37-5-108;

(6)   alter or delete the date on a check accepted by the licensee;

(7)   accept an undated check or a check dated on a date other than the date on which the licensee accepts the check;

(8)   require a customer to provide security for the transaction or require the customer to provide a guaranty from another person;

(9)   engage in the retail sale of goods or services, other than deferred presentment services and Level I check-cashing services as defined in Section 34-41-10, at the location licensed pursuant to this chapter, provided, however except, that a sale of money orders, or postage stamps, and the payment of utility bills with no additional a fee to the customer that does not exceed one percent of the bill being paid, vending machines for food or beverage, facsimile services, Western Union wire transfer or money transmitter services, or rental of postal boxes at rates not higher than allowed by the United States Postal Service is are not the sale sales of goods or services prohibited by this subsection;

(10)   be licensed pursuant to Section 12-21-2720(a)(3) to operate a video poker machine; or

(11)   permit others to engage in an activity prohibited by this section at a location licensed pursuant to this chapter. ; or

(12)   broker or arrange a deferred presentment transaction on behalf of a third-party lender, unless the transaction complies with the provisions of this chapter and is not preempted by federal law."

SECTION   7.   Chapter 39, Title 34 of the 1976 Code is amended by adding:

"Section 39-34-205.   On-premises advertising by a licensee may not contain false, misleading, or deceptive statements or representations. The board must promulgate regulations necessary to administer and enforce this section."

SECTION 8.   Section 34-39-170 of the 1976 Code is amended by adding an appropriately numbered new item to read:

"( )   A licensee and a customer may not enter into an electronic funds transfer agreement to make automatic debited loan payments for any portion of a deferred presentment agreement."

SECTION   9.   If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

SECTION   10.   This act takes effect January 1, 2009.       /

Renumber sections to conform.

Amend title to conform.

The amendment was adopted.

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

Statement by Senator BRYANT

My "no" vote reflects my disappointment in the database of payday lender customers created by this legislation. Although I do agree with some of the regulatory changes, the database is a violation of the privacy of our citizens.

The Bill was returned to the status of Special Order.

DEBATE INTERRUPTED

H. 3496 (Word version) -- Reps. G.M. Smith, Harrison, Cotty, Shoopman, Duncan, Davenport, Leach, Haley, Huggins, Mcleod, G.R. Smith, F.N. Smith, Allen, Bales, Ballentine, Barfield, Bingham, Bowen, Brady, Cato, Ceips, Chalk, Chellis, Clemmons, Cooper, Crawford, Edge, Frye, Funderburk, Gambrell, Govan, Gullick, Hagood, Hamilton, Hardwick, Harrell, Harvin, Haskins, Herbkersman, Hinson, Hiott, Jefferson, Kirsh, Knight, Littlejohn, Loftis, Lucas, Merrill, Moss, Neilson, Ott, Parks, Pinson, E.H. Pitts, M.A. Pitts, Rice, Sandifer, Scarborough, Scott, Simrill, Skelton, D.C. Smith, J.R. Smith, Spires, Stewart, Talley, Taylor, Toole, Umphlett, Vick, Viers, Walker, Weeks, Whipper, White, Whitmire, Witherspoon And Young: A BILL TO AMEND TITLE 56 OF THE 1976 CODE, RELATING TO DRIVING UNDER THE INFLUENCE, CONCERNING THE DENIAL AND SUSPENSION OF A LICENSE TO A PERSON UNDER THE AGE OF TWENTY-ONE WHO HAS OPERATED A MOTOR VEHICLE WHILE UNDER THE INFLUENCE OF ALCOHOL, IMPLIED CONSENT AND REFUSING A CHEMICAL TEST, THE IMMOBILIZATION OF A MOTOR VEHICLE OWNED BY A PERSON WHO HAS BEEN CONVICTED OF DRIVING UNDER THE INFLUENCE, THE OFFENSE OF CAUSING GREAT BODILY INJURY OR DEATH BY OPERATING A VEHICLE WHILE UNDER THE INFLUENCE, AND THE VIDEOTAPING OF A PERSON CHARGED WITH DRIVING UNDER THE INFLUENCE.
(ABBREVIATED TITLE)

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

On motion of Senator McCONNELL, debate was interrupted by adjournment.

MOTION ADOPTED

On motion of Senator McGILL, with unanimous consent, the Senate stood adjourned out of respect to the memory of Ms. Ida Salters, 104 years old, of the White Oak Community, S.C.

ADJOURNMENT

At 4:24 P.M., on motion of Senator McCONNELL, the Senate adjourned to meet tomorrow at 2:00 P.M.

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