Indicates Matter Stricken
Indicates New Matter
The Senate assembled at 11:00 A.M., the hour to which it stood adjourned, and was called to order by the PRESIDENT.
A quorum being present, the proceedings were opened with a devotion by the Chaplain as follows:
In Jeremiah we read:
"My joy is gone, grief is upon me, my heart is sick."
(Jeremiah 8:18)
Let us pray:
As we recently acknowledged, dear God, our blessings in this State are so very rich and grand. Yet the challenges before this body are also great and, perhaps, even intimidating. Our reactions to difficulties and obstacles are frequently like those of this speaker in Jeremiah. We also wonder: how can all of our problems be solved in the fairest means possible? O Lord, invest each member of this Senate with deepest wisdom, with a true sense of dedication and with a genuine determination to do the very best with the resources that are available. Through these servants and their talented staff members, bring about hope-filled results for the people of South Carolina.
In Your loving name we pray, Lord. Amen.
The PRESIDENT called for Petitions, Memorials, Presentments of Grand Juries and such like papers.
The following appointments were transmitted by the Honorable Mark C. Sanford:
Reappointment, South Carolina Crime Victims' Advisory Board, with the term to commence August 1, 2007, and to expire August 1, 2012
Sexual Assault Prevention/Treatment:
Martha V. Busterna, P.O. Box 693, Greenwood, SC 29648
Referred to the Committee on Judiciary.
Referred to the Committee on Judiciary.
Senator McCONNELL introduced Dr. Mark D. New of North Charleston, S.C., Doctor of the Day.
At 12:10 P.M., Senator ANDERSON requested a leave of absence beginning at 1:00 and lasting until 6:00 P.M. today.
At 12:25 P.M., Senator SCOTT requested a leave of absence for the balance of the day.
At 12:30 P.M., Senator VAUGHN requested a leave of absence for the balance of the day.
Senator McCONNELL rose for an Expression of Personal Interest.
On motion of Senator ALEXANDER, with unanimous consent, Senators RANKIN, HUTTO and ALEXANDER were granted leave to attend a meeting, be counted in any quorum calls and be granted leave to vote from the balcony.
H. 3566 (Word version) -- Medical, Military, Public and Municipal Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION, OCCUPATIONAL SAFETY AND HEALTH, RELATING TO REPORTING FATALITIES AND MULTIPLE HOSPITALIZATION INCIDENTS TO OSHA, DESIGNATED AS
Senator RYBERG asked unanimous consent to make a motion that the Joint Resolution be recalled from the Committee on Labor, Commerce and Industry.
There was no objection and the Resolution was recalled from the Committee on Labor, Commerce and Industry.
On motion of Senator RYBERG, with unanimous consent, the Joint Resolution was committed to the Committee on Medical Affairs.
H. 5021 (Word version) -- Rep. Duncan: A BILL TO AMEND SECTION 50-11-1920, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SALE UNDER CERTAIN CONDITIONS OF EXOTIC FARM-RAISED VENISON AND PENALTIES FOR VIOLATING THE PROVISIONS OF THIS SECTION, SO AS TO PROVIDE THAT THE PROHIBITIONS OF THIS SECTION DO NOT APPLY TO THE SALE OR PURCHASE OF PROCESSED PET FOODS OR PET TREATS CONTAINING EXOTIC FARM-RAISED VENISON, AND TO PROVIDE FOR CERTAIN REGISTRATION AND LABELING REQUIREMENTS OF THIS EXCEPTION.
Senator GREGORY asked unanimous consent to make a motion that the Bill be recalled from the Committee on Fish, Game and Forestry.
There was no objection and the Bill was recalled from the Committee on Fish, Game and Forestry.
The Bill was ordered placed on the Calendar for consideration tomorrow.
S. 932 (Word version) -- Senators Grooms, Elliott and Fair: A BILL TO AMEND SECTION 56-1-5 OF THE 1976 CODE, RELATING TO THE DEPARTMENT OF MOTOR VEHICLES, BY ADDING AN APPROPRIATELY DESIGNATED NEW ITEM TO PROVIDE THAT ALL SERVICES, PUBLICATIONS, PRINTED, AUDIO, AND VIDEO MATERIALS AND TESTS ADMINISTERED BY THE DEPARTMENT OF MOTOR VEHICLES MUST BE PROVIDED IN
Senator GROOMS asked unanimous consent to make a motion that the Bill be recalled from the Committee on Transportation.
There was no objection and the Bill was recalled from the Committee on Transportation.
The Bill was ordered placed on the Calendar for consideration tomorrow.
H. 4012 (Word version) -- Reps. Agnew and Gambrell: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION NAME THE PORTION OF SOUTH CAROLINA HIGHWAY 28 IN ABBEVILLE COUNTY FROM THE MCCORMICK COUNTY LINE TO THE ANDERSON COUNTY LINE THE "173D AIRBORNE BRIGADE (SEP) SKY SOLDIERS MEMORIAL HIGHWAY VIETNAM 1965-1971" AND ERECT APPROPRIATE MARKERS OR SIGNS ALONG THIS HIGHWAY THAT CONTAIN THE WORDS "173D AIRBORNE BRIGADE (SEP) SKY SOLDIERS MEMORIAL HIGHWAY VIETNAM 1965-1971".
Senator GROOMS asked unanimous consent to make a motion that the Concurrent Resolution be recalled from the Committee on Transportation.
There was no objection and the Concurrent Resolution was recalled from the Committee on Transportation.
Senator GROOMS asked unanimous consent to take the Concurrent Resolution up for immediate consideration.
There was no objection.
The question then was the adoption of the Concurrent Resolution.
The Concurrent Resolution was adopted, ordered returned to the House.
On motion of Senator KNOTTS, with unanimous consent, the name of Senator KNOTTS was added as a co-sponsor of S. 932.
The following were introduced:
S. 1347 (Word version) -- Senator Hawkins: A SENATE RESOLUTION HONORING COLONEL GILL P. BECK AND THANKING HIM FOR HIS DEDICATED SERVICE TO THE UNITED STATES OF AMERICA AND THE STATE OF SOUTH CAROLINA.
l:\s-res\jdh\017colb.mrh.doc
The Senate Resolution was adopted.
S. 1348 (Word version) -- Senator Hawkins: A SENATE RESOLUTION HONORING LIEUTENANT COLONEL FRANK DEARMON WHITNEY AND THANKING HIM FOR HIS DEDICATED SERVICE TO THE UNITED STATES OF AMERICA AND THE STATE OF SOUTH CAROLINA.
l:\s-res\jdh\016judg.mrh.doc
The Senate Resolution was adopted.
S. 1349 (Word version) -- Senators Sheheen, Hutto and Gregory: A BILL TO AMEND SECTION 22-1-10(A) OF THE 1976 CODE, RELATING TO THE APPOINTMENT OF MAGISTRATES, TO PROVIDE THAT THE SUPREME COURT IS RESPONSIBLE FOR APPOINTING MAGISTRATES IN EACH COUNTY OF THE STATE, AND TO AMEND SECTION 22-2-20, TO PROVIDE THAT THE SUPREME COURT MAY APPOINT A SCREENING COMMITTEE TO ASSIST THEM IN THEIR SELECTION OF MAGISTRATES.
l:\s-res\vas\009magi.kmm.doc
Read the first time and referred to the Committee on Judiciary.
S. 1350 (Word version) -- Senator Elliott: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLES 101, 102, AND 103 TO CHAPTER 3, TITLE 56 SO AS TO PROVIDE FOR THE ISSUANCE OF DISTINGUISHED SERVICE MEDAL, SILVER STAR, AND BRONZE STAR SPECIAL LICENSE PLATES.
l:\council\bills\swb\5534cm08.doc
Read the first time and referred to the Committee on Transportation.
S. 1351 (Word version) -- Judiciary Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF PUBLIC
Read the first time and ordered placed on the Calendar without reference.
S. 1352 (Word version) -- Judiciary Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE PUBLIC SERVICE COMMISSION, RELATING TO ELIGIBLE TELECOMMUNICATIONS CARRIER, DESIGNATED AS REGULATION DOCUMENT NUMBER 3124, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
l:\council\bills\nbd\12304ac08.doc
Read the first time and ordered placed on the Calendar without reference.
S. 1353 (Word version) -- Judiciary Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE PUBLIC SERVICE COMMISSION, RELATING TO ELECTRIC SYSTEMS AND GAS SYSTEMS, DESIGNATED AS REGULATION DOCUMENT NUMBER 3128, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
l:\council\bills\nbd\12305ac08.doc
Read the first time and ordered placed on the Calendar without reference.
H. 3975 (Word version) -- Reps. Delleney and Bowers: A JOINT RESOLUTION TO ALLOW THE GOVERNING BODY OF A COUNTY BY ORDINANCE TO POSTPONE FOR ONE ADDITIONAL YEAR A COUNTYWIDE PROPERTY TAX EQUALIZATION AND REASSESSMENT PROGRAM OTHERWISE SCHEDULED FOR IMPLEMENTATION BEGINNING FOR PROPERTY TAX YEAR 2007.
Read the first time and referred to the Committee on Finance.
H. 4337 (Word version) -- Reps. R. Brown, Clyburn, Knight, Bedingfield, Toole and Hodges: A BILL TO AMEND SECTION 48-14-120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO
Read the first time and referred to the Committee on Agriculture and Natural Resources.
H. 4346 (Word version) -- Reps. Harrell, Ballentine, Talley, Lowe, Young, Toole, E. H. Pitts, Kirsh, Littlejohn, Cotty, Bedingfield, Walker, Mahaffey and Neilson: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 2-7-81 SO AS TO PROVIDE FOR THE DISCLOSURE OF INFORMATION REGARDING EARMARK PROJECTS OR PROGRAMS REQUESTED BY MEMBERS OF THE GENERAL ASSEMBLY FOR INCLUSION IN AN APPROPRIATIONS BILL, TO PROVIDE DEFINITIONS APPLICABLE FOR THE DISCLOSURE, AND TO PROVIDE FOR THE ENFORCEMENT OF THESE DISCLOSURE PROVISIONS.
Read the first time and referred to the Committee on Finance.
H. 4355 (Word version) -- Reps. Harrell, Kirsh, Bales, Lowe, E. H. Pitts, Cotty, Mahaffey, Battle and Crawford: A BILL TO AMEND SECTIONS 4-10-20, 4-10-350, 4-10-580, AND 4-37-30, ALL AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE LOCAL OPTION SALES TAX, THE CAPITAL PROJECT SALES TAX, THE PERSONAL PROPERTY TAX EXEMPTION SALES TAX, AND THE TRANSPORTATION INFRASTRUCTURE SALES TAX, SO AS TO EXEMPT FROM THESE TAXES UNPREPARED FOOD ITEMS ELIGIBLE FOR PURCHASE WITH UNITED STATES DEPARTMENT OF AGRICULTURE FOOD COUPONS AND MAKE THIS EXEMPTION APPLY PROSPECTIVELY; AND TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO SALES AND USE TAX EXEMPTIONS, SO AS TO ALLOW A COUNTY GOVERNING BOARD BY ORDINANCE TO EXTEND THE STATE SALES TAX EXEMPTION FOR FOOD ITEMS TO A LOCALLY IMPOSED SALES AND USE TAX.
Read the first time and referred to the Committee on Finance.
H. 4672 (Word version) -- Reps. White, Duncan and Whipper: A BILL TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SALES TAX
Read the first time and referred to the Committee on Finance.
H. 4694 (Word version) -- Rep. Harrison: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 14-7-815 SO AS TO PROHIBIT A PERSON CHARGED WITH A CRIMINAL OFFENSE WITH A MAXIMUM PENALTY OF ONE YEAR OR MORE FROM SERVING ON A STATE GRAND JURY.
Read the first time and referred to the Committee on Judiciary.
H. 4697 (Word version) -- Reps. Walker and Whipper: A BILL TO AMEND SECTION 56-1-510, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE UNLAWFUL USE OF A DRIVER'S LICENSE AND PERSONAL IDENTIFICATION CARD, SO AS TO PROVIDE THAT IT IS UNLAWFUL TO DISPLAY OR POSSESS A COUNTERFEIT DRIVER'S LICENSE OR PERSONAL IDENTIFICATION CARD; AND TO AMEND SECTION 56-1-515, RELATING TO THE UNLAWFUL ALTERATION AND USE OF A DRIVER'S LICENSE AND PERSONAL IDENTIFICATION CARD, SO AS TO PROVIDE THAT IT IS UNLAWFUL TO PRODUCE OR POSSESS A COUNTERFEIT DRIVER'S LICENSE OR IDENTIFICATION CARD.
Read the first time and referred to the Committee on Judiciary.
H. 4758 (Word version) -- Reps. Erickson, Bedingfield, Ballentine, Pinson, Bannister, Herbkersman, E. H. Pitts, Sellers, Taylor, Young and Hodges: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-63-425 SO AS TO PROVIDE THAT ANY HIGH SCHOOL STUDENT WHO IS THE VICTIM OF PHYSICAL ABUSE, HARASSMENT, OR STALKING BY A CLASSMATE DURING SCHOOL HOURS OR OTHERWISE RESULTING IN A RESTRAINING ORDER BEING GRANTED AGAINST THE CLASSMATE BY A COURT OF COMPETENT JURISDICTION MAY TRANSFER WITH THE CONSENT OF THE STUDENT'S SCHOOL DISTRICT TO ANOTHER HIGH SCHOOL WITHIN OR OUT OF THE DISTRICT, WITHOUT ANY LOSS OF ELIGIBILITY TO PARTICIPATE IN INTERSCHOLASTIC ACTIVITIES AT THE SCHOOL TO WHICH THE STUDENT TRANSFERS.
Read the first time and referred to the Committee on Education.
H. 4764 (Word version) -- Reps. Witherspoon and Branham: A BILL TO AMEND SECTION 49-3-50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MATTERS TO BE CONSIDERED BY THE DEPARTMENT OF NATURAL RESOURCES IN REGARD TO WATER RESOURCES PLANNING AND COORDINATING, SO AS TO REVISE THESE CONSIDERATIONS; TO AMEND SECTION 50-21-10, RELATING TO DEFINITIONS IN REGARD TO EQUIPMENT AND OPERATION OF WATERCRAFT, SO AS TO REVISE CERTAIN DEFINITIONS; TO AMEND SECTION 50-21-30, RELATING TO THE SCOPE OF CERTAIN PROVISIONS OF LAW RELATING TO THE OPERATION OF VESSELS ON THE WATERS OF THIS STATE, SO AS TO CHANGE CERTAIN REFERENCES AND FURTHER PROVIDE FOR THE SCOPE OF THESE PROVISIONS; BY ADDING SECTION 50-23-10 SO AS TO PROVIDE FOR THE ISSUANCE, TERMS, AND CONDITIONS OF MARINE DEALERS' PERMITS; BY ADDING SECTION 50-23-11 SO AS TO PROVIDE FOR THE USE OF DEALER DEMONSTRATION NUMBERS AND CONDITIONS RELATED TO THEIR USE; TO AMEND SECTION 50-23-20, RELATING TO CERTIFICATES OF TITLE REQUIRED FOR WATERCRAFT AND OUTBOARD MOTORS, SO AS TO REQUIRE THE OWNER OF A WATERCRAFT OR OUTBOARD MOTOR TO NOTIFY THE DEPARTMENT WITHIN THIRTY DAYS OF ITS TRANSFER; TO AMEND SECTION 50-23-30, RELATING TO EXEMPTIONS
Read the first time and referred to the Committee on Fish, Game and Forestry.
H. 4921 (Word version) -- Reps. Moss, M. A. Pitts, Lowe, Phillips and Pinson: A BILL TO AMEND SECTION 47-1-10, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS IN REGARD TO CRUELTY TO ANIMALS, SO AS TO REVISE THE DEFINITION OF "ANIMAL".
Read the first time and referred to the Committee on Agriculture and Natural Resources.
H. 5009 (Word version) -- Reps. G. M. Smith, Weeks and Clemmons: A BILL TO AMEND SECTION 40-80-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO A CRIMINAL RECORDS CHECK FOR A FIREFIGHTER, SO AS TO PROVIDE NO PERSON MAY VOLUNTEER AS A FIREFIGHTER, BE EMPLOYED AS A FIREFIGHTER, OR PERFORM FIREFIGHTING
Read the first time and referred to the Committee on Labor, Commerce and Industry.
H. 5090 (Word version) -- Rep. Vick: A BILL TO AMEND SECTION 7-7-180, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN CHESTERFIELD COUNTY, SO AS TO REVISE AND NAME CERTAIN VOTING PRECINCTS OF CHESTERFIELD COUNTY, TO DESIGNATE A MAP NUMBER ON WHICH LINES OF THESE PRECINCTS ARE DELINEATED AND MAINTAINED BY THE OFFICE OF RESEARCH AND STATISTICS OF THE STATE BUDGET AND CONTROL BOARD, AND TO PROVIDE THAT POLLING PLACES FOR THESE PRECINCTS MUST BE ESTABLISHED BY THE CHESTERFIELD COUNTY BOARD OF ELECTIONS AND REGISTRATION SUBJECT TO APPROVAL OF A MAJORITY OF THE CHESTERFIELD COUNTY LEGISLATIVE DELEGATION.
Read the first time and referred to the Committee on Judiciary.
H. 5109 (Word version) -- Rep. F. N. Smith: A CONCURRENT RESOLUTION TO RECOGNIZE AND HONOR THE REVEREND FLORA JOHNSON WINESTOCK, OF GREENVILLE COUNTY, AND CONGRATULATE HER AND THE CONGREGATION UPON THE THIRTIETH ANNIVERSARY OF HER MINISTRY TO SECOND CALVARY MISSIONARY BAPTIST CHURCH.
The Concurrent Resolution was adopted, ordered returned to the House.
H. 5110 (Word version) -- Reps. Thompson and Young: A CONCURRENT RESOLUTION TO FIX WEDNESDAY, MAY 21, 2008, AS THE TIME TO ELECT SUCCESSORS TO THE THREE COMMISSIONERS FOR THE EMPLOYMENT SECURITY COMMISSION, WHOSE CURRENT TERMS EXPIRE JUNE 30, 2008, IMMEDIATELY FOLLOWING ANY OTHER ELECTIONS SCHEDULED FOR THAT DATE.
The Concurrent Resolution was introduced and referred to the Committee on Labor, Commerce and Industry.
Senator COURSON from the Committee on Education submitted a favorable with amendment report on:
S. 658 (Word version) -- Senator Bryant: A BILL TO AMEND SECTION 59-21-420(b) OF THE 1976 CODE, RELATING TO FUNDS FOR RENOVATION, CAPITAL IMPROVEMENT, OR REPAIR OF CLASSROOMS, OR REDUCTION OF MILLAGE AS TO BONDS, TO ELIMINATE THE WAIVER THAT A SCHOOL MAY APPLY FOR UNDER CERTAIN CIRCUMSTANCES.
Ordered for consideration tomorrow.
Senator LEATHERMAN from the Committee on Finance submitted a favorable report on:
S. 718 (Word version) -- Senators McConnell and Grooms: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 7, ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE REQUIREMENT FOR THE STATE AND ITS POLITICAL SUBDIVISIONS TO HAVE BUDGET PROCESSES DESIGNED TO KEEP REVENUES AND EXPENDITURES IN BALANCE, THE LIMITATION ON STATE APPROPRIATIONS, AND THE LIMITATIONS ON STATE EMPLOYEES, SO AS TO DELETE THE EXISTING STATE SPENDING LIMITATION AND REQUIRE THE GENERAL ASSEMBLY TO REPLACE IT BY A LAW PROVIDING A LIMIT ON STATE SPENDING FOR A FISCAL YEAR THAT EQUALS THE TOTAL OF STATE APPROPRIATIONS IN THE PRIOR YEAR INCREASED BY THE TOTAL PERCENTAGE OF INCREASES IN STATE PERSONAL INCOME AND STATE POPULATION IN THE MOST RECENT YEAR FOR WHICH THIS INFORMATION IS AVAILABLE AND PROVIDE THAT THE GENERAL ASSEMBLY IN ENACTING THIS LIMIT SHALL DEFINE THE APPROPRIATIONS TO WHICH THE LIMIT APPLIES, AND THE METHOD OF AND SOURCES FOR CALCULATING THE LIMIT.
Ordered for consideration tomorrow.
Senator ALEXANDER from the General Committee polled out S. 1095 favorable:
S. 1095 (Word version) -- Senator Hayes: A BILL TO AMEND SECTION 25-1-380, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO AN ASSISTANT ADJUTANT GENERAL FOR THE
AYES
Alexander O'Dell Martin Hawkins Knotts Ford Short Sheheen Reese Lourie Williams Vaughn Leventis Bryant Ceips Campbell Massey
Ordered for consideration tomorrow.
Senator COURSON from the Committee on Education submitted a favorable report on:
S. 1115 (Word version) -- Senators Leventis, Land, Ford, Anderson, Hutto, Malloy, Matthews, Williams, Peeler, Short, Sheheen, Drummond, Jackson, Ceips and Lourie: A BILL TO AMEND SECTION 59-112-50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO IN-STATE TUITION AT PUBLIC COLLEGES AND UNIVERSITIES FOR MILITARY PERSONNEL AND THEIR DEPENDENTS, SO AS TO FURTHER PROVIDE FOR THE MANNER IN WHICH AND CONDITIONS UNDER WHICH THESE PERSONNEL AND THEIR DEPENDENTS ARE ELIGIBLE TO RECEIVE AND RETAIN IN-STATE TUITION RATES.
Ordered for consideration tomorrow.
Senator LEATHERMAN from the Committee on Finance submitted a favorable report on:
S. 1220 (Word version) -- Senators McConnell, Gregory, Ford, Martin, Ritchie, Sheheen, Lourie, Campbell and Setzler: A BILL TO AMEND SECTION 11-11-410, CODE OF LAWS OF SOUTH CAROLINA,
Ordered for consideration tomorrow.
Senator GROOMS from the Committee on Transportation polled out H. 3084 favorable:
H. 3084 (Word version) -- Reps. Clemmons and Witherspoon: A BILL TO AMEND SECTION 56-16-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS OF TERMS CONTAINED IN CERTAIN PROVISIONS THAT REGULATE MOTORCYCLE MANUFACTURERS, DISTRIBUTORS, DEALERS, AND WHOLESALERS, SO AS TO REVISE THE DEFINITIONS OF THE TERMS "MANUFACTURER", "DEALERSHIP FACILITIES", "FRANCHISE", AND "DEALER", AND TO PROVIDE DEFINITIONS FOR THE TERMS "MOTORCYCLE DEALERSHIP" AND "DEPARTMENT"; TO AMEND SECTION 56-16-40, RELATING TO THE PROCEDURE A MANUFACTURER WHO SEEKS TO ENTER INTO A FRANCHISE ESTABLISHING AN ADDITIONAL NEW MOTORCYCLE DEALERSHIP OR RELOCATING AN EXISTING NEW MOTORCYCLE DEALERSHIP IN A RELEVANT MARKET AREA WHERE THIS
AYES
Grooms Ryberg Leatherman McGill Elliott Rankin Hawkins Verdin Malloy Short Campsen Scott Ceips
Land Cleary
Drummond Pinckney
H. 3084 (Word version) -- Reps. Clemmons and Witherspoon: A BILL TO AMEND SECTION 56-16-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS OF TERMS CONTAINED IN CERTAIN PROVISIONS THAT REGULATE MOTORCYCLE MANUFACTURERS, DISTRIBUTORS, DEALERS, AND WHOLESALERS, SO AS TO REVISE THE DEFINITIONS OF THE TERMS "MANUFACTURER", "DEALERSHIP FACILITIES", "FRANCHISE", AND "DEALER". (ABBREVIATED TITLE)
Senator GROOMS asked unanimous consent to take the Bill up for immediate consideration.
There was no objection.
The Senate proceeded to a consideration of the Bill, the question being the second reading of the Bill.
Senators RANKIN, ELLIOTT and McGILL proposed the following amendment (3084R001.LAR), which was adopted:
Amend the bill, as and if amended, by striking SECTION 1 in its entirety and inserting:
/ SECTION 1. Section 56-16-40 of the 1976 Code is amended to read:
"Section 56-16-40. If a manufacturer seeks to enter into a franchise establishing an additional new motorcycle dealership or relocating an existing new motorcycle dealership in a relevant market area where the line make line-make is represented, the manufacturer shall, in writing, first notify each new motorcycle dealer in this line make line-make in the relevant market area of the intention to establish an additional dealership or to relocate an existing dealership in the market area. The relevant market area is a radius of three fifteen miles around an existing dealership a location that sells motorcycles pursuant to the franchise. Within fifteen forty-five days of receiving the notice by certified mail or within fifteen forty-five days after the end of any appeal procedure provided by the manufacturer, the new motorcycle dealership may commence a civil action in a court of competent jurisdiction
The court shall enjoin or prohibit the establishment of the new or relocated dealership within a fifteen-mile radius of the existing dealership unless the manufacturer shows by a preponderance of the evidence that the existing dealership is not providing adequate representation of the line-make and that the new or relocated dealership is necessary to provide the public with reliable and convenient sales and service within that area. The burden of proof in establishing adequate representation is on the manufacturer. In determining whether good cause has been established for entering into or relocating an additional franchise for the same line-make, the court shall take into consideration the existing circumstances, including, but not limited to:
(1) the impact the establishment of the additional or relocated dealership will have on consumers, the public interest, and the existing dealership. However, financial impact may be considered only with respect to the existing dealership;
(2) the size and permanency of investment reasonably made and the reasonable obligations incurred by the existing dealership to perform its obligation pursuant to the dealership's franchise agreement;
(3) the reasonably expected market penetration of the line-make after consideration of all factors which may affect the penetration including, but not limited to, demographic factors such as age, income, education, product popularity, retail lease transactions, and other factors affecting sales to consumers;
(4) actions by the manufacturer in denying its existing dealership of the same line-make the opportunity for reasonable growth, market expansion, or relocation, including the availability of the line-make in keeping with reasonable expectations of the manufacturer in providing an adequate number of dealerships;
(5) attempts by the manufacturer to coerce the existing dealership into consenting to an additional or relocated dealership of the same line-make within a fifteen-mile radius of the existing dealership;
(6) distance, travel time, traffic patterns, and accessibility between the existing dealership of the same line-make and the location of the proposed new or relocated dealership;
(7) the likelihood of benefits to consumers from the establishment or relocation of the dealership, which benefits may not be obtained by
(8) whether the existing dealership is in substantial compliance with its franchise agreement;
(9) whether there is adequate interbrand and intrabrand competition with respect to the line-make, including the adequacy of sales and service facilities;
(10) whether the establishment or relocation of the proposed dealership appears to be warranted and justified based on economic and market conditions pertinent to dealerships competing within a fifteen-mile radius of the existing dealership, including anticipated changes; and
(11) the volume of service business transacted by the existing dealership.
The reopening in a relevant market area of a new motorcycle dealership within two miles of a location at which a former dealership of the same line make line-make had been in operation within the previous two years is not considered the establishment of a new motorcycle dealership.
The relocation of an existing dealer within its area of responsibility as defined in the franchise agreement is not subject to this section if the proposed relocation site is not within five miles of an existing dealer of the same line make line-make.
In determining whether good cause has been established for not entering into or relocating an additional franchise for the same line make, the court shall take into consideration the existing circumstances, including, but not limited to:
(a) the permanency of the investment;
(b) the effect on the retail new motorcycle business and the consuming public in the relevant market area;
(c) whether it is injurious to the public welfare for an additional new motor dealership to be established;
(d) whether the new motorcycle dealers of the same line make in that relevant market area are providing adequate competition and convenient consumer care for the motorcycles of the line make in the market area including the adequacy of motorcycle sales and service facilities, equipment, supply of motorcycle parts, and qualified service personnel;
(e) whether the new motorcycle dealers of the same line make in the relevant market area are providing adequate market penetration and
(f) whether the establishment of an additional new motorcycle dealership would increase competition and therefore be in the public interest; and
(g) the growth or decline in population and new motorcycle registrations in the relevant market area." /
Renumber sections to conform.
Amend title to conform.
Senator GROOMS explained the amendment.
The amendment was adopted.
There being no further amendments, the Bill was read the second time, passed and ordered to a third reading.
On motion of Senator GROOMS, with unanimous consent, H. 3084 was ordered to receive a third reading on Friday, May 2, 2008.
Senator COURSON from the Committee on Education submitted a favorable report on:
H. 4408 (Word version) -- Reps. Skelton, Harrell, Walker and Bedingfield: A BILL TO AMEND SECTIONS 59-104-25 AND 59-149-15, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PALMETTO FELLOWS SCHOLARSHIP STIPEND FOR STUDENTS MAJORING IN MATHEMATICS OR SCIENCES AND THE LIFE SCHOLARSHIP STIPEND FOR STUDENTS MAJORING IN MATHEMATICS OR SCIENCES, RESPECTIVELY, BOTH SO AS TO REVISE THE COURSE REQUIREMENTS NECESSARY TO RECEIVE THE STIPEND DURING A STUDENT'S FRESHMAN YEAR.
Ordered for consideration tomorrow.
Senator GREGORY from the Committee on Fish, Game and Forestry submitted a favorable report on:
H. 4534 (Word version) -- Reps. M.A. Pitts, Owens, Simrill, Davenport, Hosey, Leach, McLeod, Moss, Phillips, Thompson and Loftis: A BILL TO AMEND SECTION 50-3-410, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROCEDURES FOR
Ordered for consideration tomorrow.
Senator ALEXANDER from the General Committee polled out H. 4713 favorable:
H. 4713 (Word version) -- Rep. White: A BILL TO AMEND SECTION 25-11-80, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO STATE VETERANS' CEMETERIES AND QUALIFICATIONS TO RECEIVE A PLOT IN A STATE VETERANS' CEMETERY, SO AS TO REDUCE FROM TWENTY YEARS TO EIGHT YEARS THE TIME A VETERAN MUST HAVE BEEN A RESIDENT OF THIS STATE IN ORDER TO MEET ONE OF THE QUALIFICATIONS.
AYES
Alexander O'Dell Martin Hawkins Ford Short Sheheen Reese Lourie Williams Vaughn Leventis Bryant Ceips Campbell Massey
Knotts
Ordered for consideration tomorrow.
Senator GREGORY from the Committee on Fish, Game and Forestry submitted a favorable with amendment report on:
H. 4952 (Word version) -- Rep. M.A. Pitts: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 50-11-96 SO AS TO PROHIBIT THE INTRODUCTION OF A FERTILITY CONTROL AGENT OR CHEMICAL SUBSTANCE INTO WILDLIFE, TO AUTHORIZE EXCEPTIONS INCLUDING THOSE MADE FOR SPECIFIED PURPOSES UPON PERMIT OF THE DEPARTMENT, AND TO PROVIDE PENALTIES FOR VIOLATIONS.
Ordered for consideration tomorrow.
Columbia, S.C., May 1, 2008
Mr. President and Senators:
The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
H. 4520 (Word version) -- Reps. Cooper, Harrell, Cobb-Hunter, Walker, Perry, Battle, Skelton, Thompson, Alexander, Ballentine, Edge, Harrison, Hayes, Limehouse, J.H. Neal, Ott, Owens, Williams, Spires, Whipper, R. Brown, Hosey, Mitchell and Hodges: A BILL TO AUTHORIZE THE UNIVERSITY OF SOUTH CAROLINA TO ISSUE REVENUE BONDS TO PROVIDE FUNDS FOR THE ACQUISITION, CONSTRUCTION, AND EQUIPPING OF A NEW BUSINESS SCHOOL FACILITY AND FOR THE RENOVATION OF THE CLOSE-HIPP BUILDING FOR LEASE AND OCCUPANCY BY AN AGENCY OF THE FEDERAL GOVERNMENT, TO PROVIDE THAT THE REVENUE BONDS SHALL BE SECURED BY AND PAYABLE FROM A PLEDGE OF THE LEASE PAYMENTS, AND TO PROVIDE THE PROCESS BY WHICH THE REVENUE BONDS MAY BE ISSUED.
and has ordered the Bill enrolled for Ratification.
Very respectfully,
Speaker of the House
Received as information.
Columbia, S.C., April 30, 2008
Mr. President and Senators:
The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
H. 5043 (Word version) -- Reps. Hutson, 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, Daning, 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, 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 DESIGNATE THE FOURTH SATURDAY IN APRIL AS CITIZENS REMEMBRANCE DAY, TO BE OBSERVED ANNUALLY IN HONOR AND MEMORY OF VICTIMS OF FATAL MOTOR VEHICLE CRASHES.
Very respectfully,
Speaker of the House
Received as information.
S. 1346 (Word version) -- Senator Pinckney: A CONCURRENT RESOLUTION TO HONOR BISHOP PRESTON WARREN WILLIAMS II FOR HIS FOUR YEARS OF SERVICE AS PRESIDING PRELATE OF THE 7TH EPISCOPAL DISTRICT (SOUTH CAROLINA) OF THE AFRICAN METHODIST EPISCOPAL CHURCH.
Returned with concurrence.
Received as information.
S. 1298 (Word version) -- Senator Courson: A CONCURRENT RESOLUTION TO AUTHORIZE PALMETTO GIRLS STATE TO USE THE CHAMBERS OF THE SENATE AND THE HOUSE OF
Returned with concurrence.
Received as information.
THE SENATE PROCEEDED TO A CALL OF THE UNCONTESTED LOCAL AND STATEWIDE CALENDAR.
The following Bills and Joint Resolution were read the third time and, having received three readings in both Houses, it was ordered that the titles be changed to that of Acts and enrolled for Ratification:
H. 4775 (Word version) -- Reps. Hagood, Whipper, Breeland, Limehouse, Mack, Scarborough and Stavrinakis: A BILL TO AMEND ACT 340 OF 1967, AS AMENDED, CREATING THE CHARLESTON COUNTY SCHOOL DISTRICT, SO AS TO CHANGE THE DATES FOR FILING OF CONSTITUENT SCHOOL DISTRICT BOARD OF TRUSTEES AND TO CONSOLIDATE THE SCHOOL BOARD TO CONFORM WITH PROVISIONS OF STATE LAW.
H. 4547 (Word version) -- Rep. Vick: A BILL TO AMEND SECTION 50-9-530, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MIGRATORY WATERFOWL STAMPS, SO AS TO PROVIDE FOR THE COST OF THE STAMPS AND THE MANNER THEY ARE SOLD; TO AMEND SECTION 50-9-535, RELATING TO MIGRATORY GAME BIRD PERMITS, FEES, AND INTEGRATION WITH OTHER HUNTING LICENSES, SO AS TO PROVIDE THAT STATE RESIDENTS AT LEAST SIXTY-FOUR AND WHO HOLD A LIFETIME HUNTING AND FISHING LICENSE ARE NOT REQUIRED TO HAVE A MIGRATORY GAME BIRD PERMIT; TO AMEND SECTION 50-11-20, AS AMENDED, RELATING TO THE MIGRATORY WATERFOWL COMMITTEE, SO AS TO FURTHER DEFINE THE RESPONSIBILITIES AND DUTIES OF THE MIGRATORY WATERFOWL COMMITTEE; AND TO ADD SECTION 50-11-22 SO AS TO MAKE IT UNLAWFUL TO HARM, DISTURB, OR TAKE ACTIVELY NESTING WATERFOWL OR TO DISTURB OR DAMAGE A WATERFOWL NEST BOX, AND PROVIDE PENALTIES FOR VIOLATION.
H. 4949 (Word version) -- Medical, Military, Public and Municipal Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION - PANEL FOR DIETETICS, RELATING TO LICENSURE AND REGULATION OF PERSONS ENGAGING IN THE PRACTICE OF DIETETICS WITHIN THE STATE OF SOUTH CAROLINA, DESIGNATED AS REGULATION DOCUMENT NUMBER 3193, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
The following House Bills were read the third time and ordered returned to the House with amendments:
H. 3649 (Word version) -- Reps. Witherspoon, Merrill, Agnew, Anthony, Brady, R. Brown, Duncan, Funderburk, Hagood, Hardwick, Herbkersman, Hiott, Kelly, Loftis, Moss, Ott, E.H. Pitts, Scott, Talley, Toole, Umphlett, Cobb-Hunter, Leach, Cato, Clemmons, Barfield, Ceips, Dantzler, Hamilton, Howard, Jefferson, Lowe, Phillips, G.R. Smith, J.R. Smith, Stavrinakis, Bannister, J.H. Neal, Stewart, Sellers, Mitchell, Williams, G.M. Smith and Mahaffey: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 63 TO TITLE 12 SO AS TO ENACT THE "ENERGY FREEDOM AND RURAL DEVELOPMENT ACT" TO ALLOW A SALES TAX REBATE FOR THE PURCHASE OF CERTAIN FUEL EFFICIENT VEHICLES AND EQUIPMENT USED TO CONVERT A HYBRID VEHICLE INTO A HYBRID PLUG-IN VEHICLE, TO ALLOW AN INCENTIVE PAYMENT FOR ALTERNATIVE FUEL PURCHASES, AND TO ESTABLISH THE SOUTH CAROLINA RENEWABLE ENERGY INFRASTRUCTURE DEVELOPMENT FUND; BY ADDING SECTION 12-6-3376 SO AS TO ALLOW AN INCOME TAX CREDIT FOR THE PURCHASE OR LEASE OF A PLUG-IN HYBRID VEHICLE; BY ADDING SECTION 12-6-3630 SO AS TO ALLOW AN INCOME TAX CREDIT FOR QUALIFIED EXPENDITURES FOR RESEARCH AND DEVELOPMENT OF FEEDSTOCKS AND PROCESSES FOR CELLULOSIC ETHANOL AND FOR ALGAE-DERIVED BIODIESEL; BY AMENDING SECTION 12-6-3587, RELATING TO TAX CREDITS FOR SOLAR ENERGY HEATING AND COOLING SYSTEMS, SO AS TO ALLOW A TAX CREDIT EQUAL TO THREE THOUSAND FIVE HUNDRED DOLLARS FOR EACH BUILDING THAT IS
H. 3032 (Word version) -- Reps. Viers and Sandifer: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, TO CREATE A STUDY COMMITTEE TO STUDY APPROPRIATE ENFORCEMENT OF FEDERAL AND STATE LAWS RELATING TO THE PRESENCE OF ILLEGAL ALIENS IN THIS STATE AND TO RECOMMEND LEGISLATIVE CHANGES AS APPROPRIATE.
By prior motion of Senator McCONNELL, with unanimous consent
H. 4492 (Word version) -- Reps. Young, Harrell and Hutson: A BILL TO AMEND SECTION 7-7-230, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN DORCHESTER COUNTY, SO AS TO REVISE AND RENAME CERTAIN VOTING PRECINCTS IN DORCHESTER COUNTY, REDESIGNATE A MAP NUMBER FOR THE MAP ON WHICH LINES OF THESE PRECINCTS ARE DELINEATED AND MAINTAINED BY THE OFFICE OF RESEARCH AND STATISTICS OF THE STATE BUDGET AND CONTROL BOARD, AND CORRECT CERTAIN REFERENCES.
The Senate proceeded to a consideration of the Bill, the question being the third reading of the Bill.
Senator GROOMS asked unanimous consent to make a motion to take up further amendments pursuant to the provisions of Rule 26B.
There was no objection.
Having received the requisite number of votes under the provisions of Rule 26B, Amendment No. 1 was taken up for immediate consideration.
Senators SCOTT and MATTHEWS proposed the following amendment (JUD4492.001), which was adopted:
Amend the bill, as and if amended, page 3, line 29, by striking SECTION 2 in its entirety and inserting therein the following:
/ SECTION 2. This act takes effect January 1, 2009. /
Renumber sections to conform.
Amend title to conform.
Senator GROOMS explained the amendment.
The amendment was adopted.
There being no further amendments, the Bill was ordered returned to the House with amendment.
The following Bills and Joint Resolutions were read the third time and ordered sent to the House of Representatives:
S. 879 (Word version) -- Senators Campsen, Knotts, Fair and Malloy: A BILL TO ENACT THE UNIDENTIFIED HUMAN REMAINS DNA DATABASE ACT, BY AMENDING ARTICLE 9, CHAPTER 3 OF TITLE 23, RELATING TO THE STATE DNA DATABASE, TO PROVIDE THAT FAMILY MEMBERS OF A MISSING PERSON MAY SUBMIT DNA SAMPLES TO THE STATE LAW ENFORCEMENT DIVISION, TO PROVIDE THAT IF THE PERSON REMAINS MISSING FOR THIRTY DAYS, THE STATE LAW ENFORCEMENT DIVISION MUST CONDUCT DNA IDENTIFICATION, TYPING, AND TESTING ON THE DNA
S. 1132 (Word version) -- Senator Thomas: A BILL TO AMEND SECTION 38-1-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS USED IN MATTERS RELATING TO INSURANCE, SO AS TO REDEFINE "ADMITTED ASSETS"; TO AMEND SECTION 38-9-10, RELATING TO CAPITAL AND SURPLUS REQUIRED OF STOCK
S. 1337 (Word version) -- Labor, Commerce and Industry Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION, RELATING TO MODULAR BUILDING CONSTRUCTION ACT, RESTRUCTURING, DESIGNATED AS REGULATION DOCUMENT NUMBER 3183, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
S. 1338 (Word version) -- Labor, Commerce and Industry Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION, BUILDING CODES COUNCIL, RELATING TO BARRIER FREE DESIGN, RESTRUCTURING, DESIGNATED AS REGULATION DOCUMENT NUMBER 3181, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
The following Bills and Joint Resolutions, having been read the second time, were ordered placed on the Third Reading Calendar:
S. 252 (Word version) -- Senator Knotts: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 20-3-155 SO AS TO PROVIDE THAT FOR PURPOSES OF PROVISIONS OF LAW REQUIRING THE CESSATION OF ALIMONY AND SPOUSAL SUPPORT UPON THE REMARRIAGE OF THE SUPPORTED SPOUSE, A REMARRIAGE OF THE SUPPORTED SPOUSE WHICH IS LATER ANNULLED BY A COURT OF COMPETENT JURISDICTION SHALL CAUSE THE CESSATION OF ALIMONY OR SPOUSAL SUPPORT; TO PROVIDE THAT PARTIES MAY ENTER INTO A CONSENT ORDER FOR CONTINUED SUPPORT CONTRARY TO THIS SECTION; AND TO FURTHER PROVIDE THAT A PERSON MAY PETITION FOR RELIEF FROM AN ORDER TO PAY ALIMONY OR SPOUSAL SUPPORT IF THE ORDER REINSTATED ALIMONY OR SPOUSAL SUPPORT TO A FORMER SPOUSE WHOSE REMARRIAGE WAS LATER ANNULLED.
On motion of Senator KNOTTS, with unanimous consent, S. 252 was ordered to receive a third reading on Friday, May 2, 2008.
H. 3395 (Word version) -- Reps. Funderburk, Toole, Stavrinakis and Sandifer: A JOINT RESOLUTION TO PROVIDE THAT THE SOUTH CAROLINA ENERGY OFFICE AND THE OFFICE OF REGULATORY STAFF SHALL PROVIDE A REPORT TO THE GENERAL ASSEMBLY NOT LATER THAN OCTOBER 1, 2007, THAT RECOMMENDS PROCESS AND PROCEDURES FOR ESTABLISHING NET METERING PROGRAMS AT ALL DISTRIBUTION ELECTRIC UTILITIES IN SOUTH CAROLINA, INCLUDING INVESTOR-OWNED ELECTRIC UTILITIES, ELECTRIC COOPERATIVES, MUNICIPAL-OWNED ELECTRIC UTILITIES, AND THE SOUTH CAROLINA PUBLIC SERVICE AUTHORITY.
H. 3816 (Word version) -- Reps. G.M. Smith, Weeks and G. Brown: A BILL TO AMEND SECTION 15-41-30, AS AMENDED, CODE OF LAWS OF
H. 4926 (Word version) -- Rep. Funderburk: A BILL TO AMEND SECTION 7-7-340, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN KERSHAW COUNTY, SO AS TO REDESIGNATE A MAP NUMBER ON WHICH LINES OF THESE PRECINCTS ARE DELINEATED AND MAINTAINED BY THE OFFICE OF RESEARCH AND STATISTICS OF THE STATE BUDGET AND CONTROL BOARD.
H. 5015 (Word version) -- Reps. Gambrell, Cooper, Bowen, Thompson, Agnew and White: A BILL TO AMEND SECTION 7-7-80, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN ANDERSON COUNTY, SO AS TO REVISE CERTAIN VOTING PRECINCTS IN ANDERSON COUNTY, TO REDESIGNATE A MAP NUMBER FOR THE MAP ON WHICH LINES OF THESE PRECINCTS ARE DELINEATED AND MAINTAINED BY THE OFFICE OF RESEARCH AND STATISTICS OF THE STATE BUDGET AND CONTROL BOARD.
H. 5030 (Word version) -- Medical, Military, Public and Municipal Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO TANNING FACILITIES, DESIGNATED AS REGULATION DOCUMENT NUMBER 3114, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
S. 617 (Word version) -- Senators Fair and Verdin: A BILL TO AMEND CHAPTER 1, TITLE 56 OF THE 1976 CODE, RELATING TO DRIVER'S LICENSES, BY ADDING SECTION 56-1-186, TO PROVIDE THAT A PERSON WHO OPERATES A MOTOR
Senator FAIR asked unanimous consent to take the Bill up for immediate consideration.
There was no objection.
The Senate proceeded to a consideration of the Bill, the question being the adoption of the amendment proposed by the Committee on Judiciary.
The Committee on Judiciary proposed the following amendment (JUD0617.002), which was adopted:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. This act may be cited as "Tyler's Law".
SECTION 2. Chapter 1, Title 56 of the 1976 Code is amended by adding:
"Section 56-1-187. A parent or guardian who knowingly and willfully permits his dependant to operate a motor vehicle in violation of a restriction imposed on a beginner's permit pursuant to Section 56-1-50, a conditional driver's license pursuant to Section 56-1-175, or a special restricted driver's license pursuant to Section 56-1-180, or knowingly permits his dependant to operate a motor vehicle without a
SECTION 3. This act takes effect upon approval by the Governor./
Amend title to conform.
Senator FAIR explained the committee amendment.
The committee amendment was adopted.
Senator MALLOY spoke on the Bill.
There being no further amendments, the Bill was read the second time, passed and ordered to a third reading.
On motion of Senator MALLOY, with unanimous consent, S. 617 was ordered to receive a third reading on Friday, May 2, 2008.
S. 1129 (Word version) -- Senators Thomas, Jackson, Lourie, Ford and Reese: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 60 TO TITLE 38 SO AS TO ENACT THE "SOUTH CAROLINA HEALTHNET PROGRAM"; TO PROVIDE FOR THE CREATION OF A FIVE-YEAR PILOT PROGRAM TO PROMOTE THE AVAILABILITY OF HEALTH INSURANCE COVERAGE TO EMPLOYEES REGARDLESS OF HEALTH STATUS OR CLAIMS EXPERIENCE, PREVENT ABUSIVE RATING PRACTICES AND REQUIRE DISCLOSURE OF RATING PRACTICES TO PURCHASERS, ESTABLISH RULES REGARDING RENEWAL OF COVERAGE, LIMITATIONS ON THE USE OF PREEXISTING CONDITIONS EXCLUSIONS, ASSURE FAIR ACCESS TO HEALTH PLANS AND IMPROVE OVERALL FAIRNESS AND EFFICIENCY OF THE GROUP
The Senate proceeded to a consideration of the Bill, the question being the adoption of the amendment proposed by the Committee on Banking and Insurance.
The Committee on Banking and Insurance proposed the following amendment (DKA\3879DW08), which was adopted:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. Title 38 of the 1976 Code is amended by adding:
South Carolina HealthNet Program
Section 38-60-10. This chapter may be cited as the 'South Carolina HealthNet Program'.
Section 38-60-20. The purpose and intent of this chapter is to establish under the regulatory jurisdiction of the Department of Insurance a program designed to:
(1) promote the availability of health insurance coverage to employees of small employers;
(2) expand fair access to health plans; and
(3) improve the overall fairness and efficiency of the small group health insurance market.
Section 38-60-30. As used in this chapter:
(1) 'Actuarial oversight committee' means the committee composed of the three insurance industry representatives that serve on the board.
(2) 'Board' means the board of directors of the South Carolina HealthNet Program.
(3) 'Dependent' means a dependent as defined in Section 38-71-1330(5).
(4) 'Director or his designee' means the director as defined in Section 38-1-20(16).
(5) 'Eligible employee' means an eligible employee as defined in Sections 38-71-1330(6) and 38-60-110.
(7) 'Health group cooperative' means a health group cooperative formed pursuant to Section 38-71-1345.
(8) 'Health insurance coverage' means health insurance coverage as defined in Section 38-71-670(6), but for purposes of this chapter excludes coverage provided by Medicaid Managed Care Organizations that only offer coverage to eligible individuals through programs established by the Department of Health and Human Services and coverage provided by self-insured groups.
(9) 'Insurer' means an insurer as defined in Section 38-71-1330(10), but for purposes of this chapter excludes Medicaid Managed Care Organizations that only offer coverage to eligible individuals through programs established by the Department of Health and Human Services and organizations that only provide third party administrator services for self-insured groups.
(10) 'Plan of operation' means the plan of operation for the program established pursuant to this chapter and includes the initial South Carolina HealthNet plan approved by the director or his designee.
(11) 'Program' means the South Carolina HealthNet Program.
(12) 'Resident' means an individual who is a legal resident of the State of South Carolina as that term is defined by law.
(13) 'Small employer' means small employer as defined in Section 38-71-1330(17).
(14) 'Small employer insurer' means small employer insurer as defined in Section 38-71-1330(18).
(15) 'South Carolina HealthNet Plan' means a plan of insurance coverage that has been approved by the director or his designee for participation in the program.
Section 38-60-40. The provisions of this chapter apply only to small employer insurers and health group cooperatives. The provisions of this chapter do not apply to individual health insurance policies that are
Section 38-60-50. (A) The board of directors consists of fifteen voting members. The director or his designee shall serve as a member of the board in an ex officio capacity for the duration of the pilot project. The consumer advocate shall serve as a member of the board for the duration of the pilot project. The other members of the board must be selected as follows:
(1) the chairman must be appointed by the Governor for a three-year term;
(2) the director shall appoint:
(a) two representatives from the hospital community from a list of nominees submitted by the South Carolina Hospital Association. One must be appointed for a two-year term and the other for a three-year term. Subsequent terms are for three years;
(b) one representative appointed from a list of nominees submitted by the South Carolina Association of Health Underwriters appointed to a one-year term. Subsequent terms are for three years;
(c) three representatives from the insurance industry. One must be a domestic insurer representative appointed from a list of nominees submitted by the South Carolina Alliance of Health Plans appointed to a three-year term. One must be a foreign insurer representative appointed from a list of nominees submitted by the South Carolina Alliance of Health Plans appointed to a two-year term. One must be an at-large insurer representative appointed by the director to a two-year term. Subsequent terms are for three years;
(d) two representatives appointed from a list of nominees provided by the South Carolina Medical Association. One must be appointed for a two-year term and one for a three-year term. Subsequent terms are for three years;
(e) one representative appointed from a list of nominees provided by the South Carolina Department of Health and Human Services appointed to a three-year term. Subsequent terms are for three years; and
(f) one representative appointed from a list of nominees provided by the South Carolina Pharmacy Association to be appointed to a two-year term. Subsequent terms are for three years; and
(3) three consumer representatives. One must be an employer appointed by the President Pro Tempore of the Senate from a list of three nominees provided by the South Carolina Chamber of Commerce, one must be an employer appointed by the Speaker of the House of
(B) The director shall appoint an actuarial oversight committee, composed of the three representatives of the insurance industry pursuant to Section 38-60-50(A)(2)(c), to develop the rates and rate schedules for South Carolina HealthNet plans offered through the program.
(C) An individual board member may not serve more than two consecutive terms. The board shall conduct its business and meetings in accordance with the requirements of Chapter 23, Title 1 (the South Carolina Freedom of Information Act).
(D) If there is a tie vote of the board on any matter, the issue must be presented to the director or his designee for his approval or disapproval.
(E) The director or his designee shall give notice of the date, time, and place for the initial organizational meeting.
(F) The director, within thirty days of the effective date of this chapter, shall notify all nominating organizations designated in this section to provide nominations for board membership. Upon receipt of notification, the nominating organizations have thirty days to submit a list of nominees.
Section 38-60-60. (A) The board shall submit to the director or his designee a plan of operation for the program and any amendments necessary or suitable to assure the fair, reasonable, and equitable administration of the program. The director or his designee shall approve the plan of operation provided it is determined to be suitable to assure the fair, reasonable, and equitable administration of the program.
(B) If the board fails to submit a suitable plan of operation within one hundred twenty days after the initial organizational meeting, or at any time after that fails to submit suitable amendments to the plan, the department may develop the plan of operation or operating rules necessary to effectuate the provisions of this chapter. The department shall promulgate by regulation the approved plan of operation. The plan of operation or operating rules continue in force until modified by
(C) The plan of operation must:
(1) establish procedures for the handling and accounting of assets and monies of the program;
(2) establish procedures for filling vacancies on the board of directors;
(3) develop and implement a public awareness program to promote the existence of the plan;
(4) establish procedures for the board review of the health insurance plans;
(5) require producers to market the plan and the commissions, if any, to be paid at a reduced rate that must be no more than sixty percent of the commission rate that the agent normally receives for an otherwise identical group from the same insurer;
(6) establish a procedure to determine compliance with the program;
(7) authorize the board to appeal denials or disapprovals of plan amendments to the Administrative Law Court; and
(8) provide the means to obtain funding necessary to support the board and its activities subject to the requirements in subsection (D). (D) The program through its board has the following general powers including, but not limited to, the specific authority to:
(1) enter into contracts necessary to carry out the provisions of this chapter, including the authority, with the approval of the director or his designee, to enter into contracts with similar programs or nonprofit entities of other states or the federal government, such as Medicaid, for the joint performance of common administrative functions, or with persons or other organizations for the performance of administrative functions;
(2) sue or be sued, including taking legal actions necessary or proper for recovery of funds for the program; however, in no situation may any legal action be taken against any individual member of the board as a result of their service on the board and a member of the board may not be liable for an independent action of an insurer under the program;
(3) take legal action as necessary to protect the interests and assets of the program;
(4) appoint from among board members committees as necessary to facilitate the operation of the program;
(5) apply for and accept grants, monetary and other donations, or other funding to cover the costs of administering the program;
(6) develop forms, level of coverage, benefits and plan design;
(7) cause to be audited on an independent basis each year the finances of the program and submit the report of audit to the department who shall submit it to the chairman of the Senate Finance Committee and the chairman of the House Ways and Means Committee with recommendations on the operations of the program; and
(8) hire the staff necessary for the effective administration of the program.
(E) All professional assistance required by the board must be provided by independent, appropriately licensed or professionally designated resources who are under the contract with the board. All accounting determinations must be rendered by an independent certified public accountant, all actuarial assessments must be rendered by an independent Member of the American Academy of Actuaries (MAAA) and all legal determinations must be rendered by an independent member of the South Carolina Bar.
(F) Nothing prohibits the board from entering public-private partnerships with Medicaid or other government-sponsored programs as a means of providing insurance coverage to the most people possible.
(G) The members of the board shall receive mileage and per diem authorized by law for members of state boards, committees, and commissions.
Section 38-60-70. (A) The actuarial oversight committee, in consultation with an independent actuary, shall develop the rates and rate schedules for the plan benefits and design developed by the board. The actuarial committee and the independent actuary shall present the proposed rates and rate schedules to the board for its review and to the director for his approval.
(B) The rating methodology for South Carolina HealthNet plans under the program must be consistent with the small group rating requirements as described in Article 13, Chapter 71.
Section 38-60-80. (A) An insurer shall file with the director or his designee, in the form and manner prescribed by the director or his designee, South Carolina HealthNet plans authorized under this chapter.
(B) The director or his designee, at any time after providing notice and an opportunity for a hearing to the insurer, may disapprove the continued use by an insurer or health group cooperative of a South
(C) A policy, contract, certificate, or other evidence of coverage issued under this chapter must conspicuously display 'South Carolina HealthNet' on the declarations page of the policy.
(D) All plans authorized under this chapter shall provide, in enrollment materials, plain-language information on policy benefit coverage, benefit limits, cost sharing requirements, and exclusions and a clear representation of what is not covered in the plan.
(E) An insurer shall use the same underwriting and administration requirements for groups covered by the program as it uses for other equivalent groups in the small employer insurance market.
(F) All plans authorized under this chapter and approved by the director or his designee are exempt from all insurance mandates of the State.
(G) Except for being exempt from mandates as outlined in subsection (E) or as otherwise specified in this chapter, all plans authorized by this chapter must be consistent with the statutory and regulatory requirements for small group health insurance products in this State.
(H) An insurer that requires an employer to maintain a certain employee participation percentage for its group health insurance plan shall include the HealthNet Program coverage in the required participation percentage requirement.
(I) A plan authorized under this chapter may not be offered for sale in this State until it has been reviewed and approved by the director or his designee.
Section 38-60-90. A provider participating in a contract with the program and furnishing health care services to an individual insured by a South Carolina HealthNet plan may not bill that individual or otherwise hold that individual financially responsible for services rendered.
Section 38-60-100. Each small employer insurer writing group health insurance coverage in this State and any health group cooperative formed in accordance with Section 38-71-1345 shall participate in the program by offering and actively marketing South Carolina HealthNet plans. At the option of the employer, the South Carolina HealthNet plan must be offered to eligible employees of the small employer group either as an optional benefit plan to any other plan offered by the same insurer to that employer or as the sole benefit plan for that employer.
Section 38-60-110. (A) The eligible employees, and the employee's dependents, of a small employer in this State who provides health insurance coverage to its employees are eligible for coverage under the program, provided the eligible employee, and the employee's dependents, are citizens of the United States and have been legal residents of this State for a minimum of six months.
(B) An employee who cancels health insurance coverage under an employer group policy is not eligible for coverage in the program for a period of twelve months from the date of cancellation under the employer group plan. However, if an employee's group participation is cancelled due to termination of employment, the employee is eligible to participate in the South Carolina HealthNet plan, if any, offered by a subsequent employer.
Section 38-60-120. Plan coverage under the program ceases:
(1) upon a termination or nonrenewal of health insurance coverage by the insurer, provided the termination or nonrenewal complies with Section 38-71-870;
(2) on the date an employee or employer requests coverage to end; or
(3) at the time a person ceases to meet the eligibility requirements of this section.
Section 38-69-130. (A) An insurer participating in the program shall report claims data to the program in the manner prescribed by the board. The department may specify, by bulletin, the requirements for reporting claims data and other required information to the department.
(B) The board shall submit a report to the Governor, the President Pro Tempore of the Senate, and the Speaker of the House of Representatives no later than July 2015 regarding the effectiveness of the program, including any recommendations relating to the successful implementation and administration of the program.
Section 38-60-140. The Department of Insurance shall promulgate regulations necessary for implementation of this chapter."
SECTION 2. This act takes effect upon approval by the Governor. The program takes effect no earlier than January 1, 2009, but not later than July 1, 2010. This program terminates five years from the date of its first date of operation unless extended by action of the General Assembly. /
Renumber sections to conform.
Amend title to conform.
Senator THOMAS explained the committee amendment.
Senator LOURIE spoke on the committee amendment.
The committee amendment was adopted.
There being no further amendments, the Bill was read the second time, passed and ordered to a third reading.
On motion of Senator THOMAS, with unanimous consent, S. 1129 was ordered to receive a third reading on Friday, May 2, 2008.
H. 4437 (Word version) -- Rep. G.M. Smith: A BILL TO AMEND SECTION 16-15-410, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE OFFENSE OF THIRD DEGREE SEXUAL EXPLOITATION OF A MINOR, SO AS TO PROVIDE AN EXCEPTION FOR CERTAIN STATE AND LAW ENFORCEMENT PERSONNEL WHO ARE IN POSSESSION OF MATERIAL CONTAINING VISUAL REPRESENTATIONS OF MINORS ENGAGING IN SEXUAL ACTIVITY DURING THE COURSE OF AN INVESTIGATION.
The Senate proceeded to a consideration of the Bill, the question being the adoption of the amendment proposed by the Committee on Judiciary.
The Committee on Judiciary proposed the following amendment (JUD4437.001), which was adopted:
Amend the bill, as and if amended, page 1, by striking lines 40-42, and on page 2, by striking lines 1-4, and inserting:
/ (D) This section does not apply to an employee of a law enforcement agency, including the State Law Enforcement Division, a prosecuting agency, including the South Carolina Attorney General's office, or the South Carolina Department of Corrections who, while acting within the employee's official capacity in the course of an investigation or criminal proceeding, is in possession of material that contains a visual representation of a minor engaging in sexual activity."/
Renumber sections to conform.
Amend title to conform.
Senator RITCHIE explained the committee amendment.
The committee amendment was adopted.
There being no further amendments, the Bill was read the second time, passed and ordered to a third reading.
H. 4876 (Word version) -- Reps. Cooper and Cotty: A BILL TO AMEND TITLE 9 OF THE 1976 CODE, RELATING TO RETIREMENT SYSTEMS, TO COMPLY WITH VARIOUS QUALIFICATION REQUIREMENTS OF THE INTERNAL REVENUE CODE AND TO PROVIDE FOR QUALIFIED EXCESS BENEFIT ARRANGEMENTS.
(Abbreviated title)
The Senate proceeded to a consideration of the Bill, the question being the adoption of the amendment proposed by the Committee on Finance.
On motion of Senator LEATHERMAN, with unanimous consent, the original amendment proposed by the Committee on Finance (4876R002.TCA) was substituted with the following amendment (4876R004.HKL), which was adopted.
The Committee on Finance proposed the following amendment (4876R004.HKL), which was adopted:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. Section 9-1-1810 of the 1976 Code, as last amended by Act 153 of 2005, is further amended to read:
"Section 9-1-1810. (A) As of the end of each calendar year, the increase in the ratio of the Consumer Price Index to the index as of the prior December thirty-first must be determined.
(B)(1) If the Consumer Price Index as determined pursuant to subsection (A) of this section increases by no more than one two percent, the retirement allowance, inclusive of the supplemental allowances payable under the provisions of Sections 9-1-1910, 9-1-1920, and 9-1-1930, of each beneficiary in receipt of an allowance must be increased by a percentage equal to the increase in the index.
(2) If the Consumer Price Index as determined pursuant to subsection (A) of this section increases by more than onetwo percent, then:
(a) the retirement allowance of each beneficiary in receipt of an allowance, inclusive of the supplementsupplemental allowances payable under the provisions of Section 9-1-1910, 9-1-1920, and 9-1-1930, must be increased by onetwo percent; and
(b) the retirement allowance may be further increased by the board beyond onetwo percent up to the lesser of the total percentage increase in the Consumer Price Index or four percent, but only to the extent that the additional liabilities because of the increase in allowances would not extend the amortization period to liquidate the unfunded actuarial accrued liability of the South Carolina Retirement System beyond thirty years. In considering this additional increase, the board shall consider unrealized investment gains and lossesall of the following conditions are met:
(i) the amortization period for unfunded liability as reported in the annual valuation by the actuary for the most recently concluded fiscal year is at twenty-five years or below;
(ii) the estimated funded ratio in the current year, after an increase pursuant to this subitem, does not decrease from the actuary's reported funded ratio for the most recently completed fiscal year;
(iii) the estimated amortization period in the current year, after the increase pursuant to this subitem, is reduced by at least one year from that reported by the actuary for the most recently completed fiscal year; and
(iv) no increased employer contribution is required to support the increase pursuant to this subitem.
(C) The increase in retirement allowances commences the July first immediately following the December thirty-first that the increase in ratio was determined, and all increases in retirement allowances must be granted to these beneficiaries in receipt of a retirement allowance on July first immediately preceding the effective date of the increase. Any increase in allowance granted pursuant to this section must be included in the determination of any subsequent increases, irrespective of any subsequent decrease in the Consumer Price Index.
(D) The allowance of a surviving annuitant of a beneficiary whose allowance is increased under this section must, when and if payable, must be increased by the same percent.
(E) For purposes of this section, 'Consumer Price Index' means the Consumer Price Index for Wage Earners and Clerical Workers, as
SECTION 2. Section 9-11-310 of the 1976 Code, as last amended by Act 1 of 2001, is further amended to read:
"Section 9-11-310. As of the end of each calendar year, the increase in the ratio of the Consumer Price Index to the index as of the prior December thirty-first must be determined, and if the increase equals or exceeds four percent, the retirement allowance must be increased by four percent. If the increase in the index is less than four percent, the retirement allowances, as determined above, must be increased by a percentage equal to the increase in the index. The increase in retirement allowances commences the July first immediately following the December thirty-first that the increase in ratio was determined.
All increases in retirement allowances must be granted to those beneficiaries in receipt of a retirement allowance on July first immediately preceding the effective date of the increase. The increase in allowances is effective only if the additional liabilities on account of the increase in allowances do not require an increase in the employer rate of contribution. Any increase in allowance granted pursuant to this section is permanent, irrespective of any subsequent decrease in the Consumer Price Index, and must be included in determining any subsequent increase.
The allowance of a surviving annuitant of a beneficiary whose allowance is increased under this section, when and if payable, must be increased by the same percent.
For purposes of this section, "Consumer Price Index" means the Consumer Price Index for Wage Earners and Clerical Workers as published by the United States Department of Labor, Bureau of Labor Statistics.(A) As of the end of each calendar year, the increase in the ratio of the Consumer Price Index to the index as of the prior December thirty-first must be determined.
(B)(1) If the Consumer Price Index as determined pursuant to subsection (A) of this section increases by no more than two percent, the retirement allowance of each beneficiary in receipt of an allowance must be increased by a percentage equal to the increase in the index.
(2) If the Consumer Price Index as determined pursuant to subsection (A) of this section increases by more than two percent, then:
(a) the retirement allowance of each beneficiary in receipt of an allowance must be increased by two percent; and
(b) the retirement allowance may be further increased beyond two percent up to the lesser of the total percentage increase in the
(i) the amortization period for unfunded liability as reported in the annual valuation by the actuary for the most recently concluded fiscal year is at twenty-five years or below;
(ii) the estimated funded ratio in the current year, after an increase pursuant to this subitem, does not decrease from the actuary's reported funded ratio for the most recently completed fiscal year;
(iii) the estimated amortization period in the current year, after the increase pursuant to this subitem, is reduced by at least one year from that reported by the actuary for the most recently completed fiscal year; and
(iv) no increased employer contribution is required to support the increase pursuant to this subitem.
(C) The increase in retirement allowances commences the July first immediately following the December thirty-first that the increase in ratio was determined, and all increases in retirement allowances must be granted to these beneficiaries in receipt of a retirement allowance on July first immediately preceding the effective date of the increase. Any increase in allowance granted pursuant to this section must be included in the determination of any subsequent increases, irrespective of any subsequent decrease in the Consumer Price Index.
(D) The allowance of a surviving annuitant of a beneficiary whose allowance is increased under this section, when and if payable, must be increased by the same percent.
(E) For purposes of this section, 'Consumer Price Index' means the Consumer Price Index for Wage Earners and Clerical Workers, as published by the United States Department of Labor, Bureau of Labor Statistics.
(F) For purposes of paying a portion of the increase in the retirement allowance provided pursuant to subsection (B)(1) of this section, the employer contribution rate for the system must be increased by an amount required to maintain the system's amortization period to liquidate the unfunded actuarial accrued liability at thirty years or one-half percent of the earnable compensation of all members employed by an employer participating in the system, whichever is less. The increase in the employer contribution rate must be effective July 1, 2009. The employer rate provided in this section also applies to payments for unused annual leave under the circumstances provided in Section 9-11-210. The employer rate provided in this section includes the system's normal contribution rate and accrued liability contribution
SECTION 3. A. Section 9-8-125 of the 1976 Code, as last amended by Act 108 of 2007, is further amended to read:
"Section 9-8-125. A member of the system who is at least sixty-fivesixty-two years of age and eligible to receive benefits pursuant to Chapter 9 of this title but for the member's current employment as a judge, solicitor, or circuit public defender may elect to receive retirement benefits from the Retirement System for members of the General Assembly by written notice to the board."
B. Notwithstanding the general effective date of this act, the provisions of Section 9-8-125 of the 1976 Code, as amended by this section, take effect upon approval of this act by the Governor.
SECTION 4. The fourth undesignated paragraph of Section 9-1-1020 of the 1976 Code, as last amended by Act 153 of 2005, is further amended to read:
"Each department and political subdivision shall pickup the employee contributions required by this section for all compensation paid on or after July 1, 1982, and the contributions so picked up shall be treated as employer contributions in determining federal tax treatment under the United States Internal Revenue Code; however, each department and political subdivision shall continue to withhold federal income taxes based upon these contributions until the Internal Revenue Service, or the federal courts, rule that, pursuant to Section 414(h) of the United States Internal Revenue Code, these contributions shall not be included as gross income of the employee until such time as they are distributed or made available. For this purpose, each department and political subdivision is deemed to have taken formal action on or before January 1, 2009, to provide that the contributions on behalf of its employees, although designated as employer contributions, shall be paid by the employer in lieu of employee contributions. The department and political subdivision shall pay these employee contributions from the same source of funds which is used in paying earnings to the employee. The department and political subdivision may pickup these contributions by a reduction in the cash salary of the employee.
The employee, however, must not be given the option of choosing to receive the contributed amount of the pickups directly instead of having
SECTION 5. Section 9-1-1620(A) of the 1976 Code, as last amended by Act 387 of 2000, is further amended to read:
"(A) No later than the date the first payment of a retirement allowance is due, a member shall elect a form of monthly payment from the following options:
Option A. The maximum retirement allowance payable under law for the life of the member. Upon the member's death, the member's designated beneficiary is entitled to receive any remaining member contributions.
Option B. A reduced retirement allowance payable during the retired member's life, which continues after the member's death for the life of the member's designated beneficiary or, if the member selects multiple beneficiaries, which continues after the member's death in equal shares to and for the life of each of two or more beneficiaries. The reduced retirement allowance payable under this option must be the actuarial equivalent of the maximum retirement allowance payable to the member under law, and if the member selects multiple beneficiaries, the benefit reduction factor must be based on the average age of the designated beneficiaries. If all of the designated beneficiaries predecease the member, then the member shall receive a retirement allowance equal to the maximum retirement allowance payable under law to the member. Any retirement allowance payable under this option, except an allowance for disability retirement pursuant to Section 9-1-1540, shall be subject to the incidental death benefit limitation upon the payment of survivorship benefits to a nonspouse beneficiary under Section 401(a)(9)(G) of the Internal Revenue Code and Treasury Regulation Section 1.401(a)(9)-6, Q&A-2.
Option C. A reduced retirement allowance payable during the retired member's life, which continues after the member's death at one-half the rate paid to the member for the life of the member's designated beneficiary or, if the member selects multiple beneficiaries, which continues after the member's death at one-half the rate paid to the member in equal shares to and for the life of each of two or more beneficiaries. The reduced retirement allowance payable under this option must be the actuarial equivalent of the maximum retirement allowance payable to the member under law, and if the member selects multiple beneficiaries, the benefit reduction factor must be based on the
SECTION 6. Article 13, Chapter 1, Title 9 of the 1976 Code is amended by adding:
"Section 9-1-1625. Compliance with Internal Revenue Code Section 401(a)(31).
(A) This section applies to distributions made on or after January 1, 1993. Notwithstanding any contrary provision or retirement law that would otherwise limit a distributee's election under this chapter, a distributee may elect, at the time and in the manner prescribed by the board, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
(B) Effective January 1, 2007, and notwithstanding anything in this chapter to the contrary that otherwise would limit a distributee's election under this section, and to the extent allowed under the applicable provisions of the Internal Revenue Code and the Treasury Regulations, a distributee who is a designated beneficiary, but not a surviving spouse, spouse or former spouse alternate payee may elect, at the time and in the manner prescribed by the board, to have all or part of his benefit that qualifies as an eligible rollover distribution paid in a direct trustee-to-trustee transfer to an eligible retirement plan that is an individual retirement plan described in clause (i) or (ii) of Internal Revenue Code Section 402(c)(8)(B). If such a transfer is made:
(1) the transfer shall be treated as an eligible distribution;
(2) the individual retirement plan shall be treated as an inherited individual retirement account or individual retirement annuity within the meaning of Internal Revenue Code Section 408(d)(3)(C); and
(3) Internal Revenue Code Section 401(a)(9)(B) other than clause (iv) thereof shall apply to such individual retirement plan.
(C) A 'designated beneficiary' is an individual who is designated as a beneficiary under this chapter and is the designated beneficiary under Internal Revenue Code Section 401(a)(9) and Section 1.401(a)(9)-1, Q&A-4 of the Treasury Regulations. An estate or revocable trust is not considered to be a designated beneficiary for purposes of Internal Revenue Code Section 401(a)(9).
(D) An 'eligible rollover distribution' is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include:
(1) any distribution that is one of a series of substantially equal periodic payments made not less frequently than annually for the life or the life expectancy of the distributee or the joint lives or joint life expectancies of the distributee and the distributee's designated beneficiary, or for a specified period of ten years or more;
(2) any distribution to the extent such distribution is required under Internal Revenue Code Section 401(a)(9); and
(3) any hardship distribution.
Effective January 1, 2002, a portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions that are not includible in gross income. However, such portion may be transferred only to an individual retirement account or annuity described in Internal Revenue Code Section 408(a) or (b), or in a direct trustee-to-trustee rollover to a qualified trust under Internal Revenue Code Section 401(a) or 403(a) that is part of a defined contribution or defined benefit plan, or to an annuity contract described in Internal Revenue Code Section 403(b), so long as such trust or annuity contract separately accounts for amounts so transferred, including separate accounting for the portion of such distribution that is includible in gross income and the portion of such distribution that in not includible. Effective January 1, 2008, an eligible rollover distribution also shall mean a qualified rollover contribution to a Roth IRA within the meaning of Internal Revenue Code Section 408A.
(E) Effective January 1, 2002, unless otherwise stated an 'eligible retirement plan' is:
(1) a plan eligible under Internal Revenue Code Section 457(b) that is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state that agrees to separately account for amounts transferred into the plan from the system;
(2) an individual retirement account described in Internal Revenue Code Section 408(a);
(3) an individual retirement annuity described in Internal Revenue Code Section 408(b);
(4) an annuity plan described in Internal Revenue Code Section 403(a);
(5) an annuity contract described in Internal Revenue Code Section 403(b);
(6) a qualified trust described in Internal Revenue Code Section 401(a) that accepts the distributee's eligible rollover distribution; or
(7) effective January 1, 2008, a Roth IRA described in Internal Revenue Code Section 408A.
(F) Effective January 1, 2002, the definition of eligible rollover distribution also includes a distribution to a surviving spouse, or to a spouse or former spouse who is an alternate payee under a domestic relations order, as defined in Internal Revenue Code Section 414(p).
(G) A 'distributee' includes an employee or former employee. It also includes the employee's or former employee's surviving spouse and the employee's or former employee's spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Internal Revenue Code Section 414(p). Effective January 1, 2007, it further includes a nonspouse beneficiary who is a designated beneficiary as defined by Internal Revenue Code Section 401(a)(9)(E). However, a nonspouse beneficiary may rollover the distribution only to an individual retirement account or individual retirement annuity established for the purpose of receiving the distribution and the account or annuity will be treated as an 'inherited' individual retirement account or annuity.
(H) A 'direct rollover' is a payment by the system to the eligible retirement plan specified by the distributee."
SECTION 7. Article 13, Chapter 1, Title 9 of the 1976 Code is amended by adding:
"Section 9-1-1665. Compliance with Internal Revenue Code Section 401(a)(9).
(A) Effective as of January 1, 1989, the system will pay all benefits in accordance with the requirements of Section 401(a)(9) of the Internal Revenue Code, including the incidental death benefit requirement in Section 401(a)(9)(G), and the applicable Treasury Regulations and Internal Revenue Service Rulings and other interpretations issued thereunder, including Treasury Regulations Sections 1.401(a)(9)-2 through 1.401(a)(9)-9. The provisions of this section shall override any distribution options that are inconsistent with Section 401(a)(9) to the extent that those distribution options are not grandfathered under Treasury Regulation Section 1.401(a)(9)-6, Q&A-16.
(B) Each member's entire benefit shall be distributed to the member, beginning no later than the required beginning date, over the member's lifetime or the joint lives of the member and a designated beneficiary, or over a period not extending beyond the member's life expectancy or the joint life expectancies of the member and a designated beneficiary. If a member fails to apply for retirement
(1) For purposes of this section, the 'required beginning date' is April first of the calendar year after the later of the following:
(a) the calendar year in which the member reaches age seventy and one-half years of age; or
(b) the calendar year in which the member retires.
(2) For purposes of this section, a 'designated beneficiary' means any individual designated as a co-beneficiary by the member under this chapter. If the member designates a trust as a co-beneficiary, the individual beneficiaries of the trust shall be treated as designated beneficiaries if the trust satisfies the requirement set forth in Treasury Regulation Section 1.401(a)(9)-3.
(3) Payment of retirement benefits, for those members who are eligible to receive retirement benefits and who have not applied for such pursuant to the provisions of this chapter, and who continue membership after attaining seventy and one-half years of age, shall commence on the effective date of retirement.
(C) If a retired member dies after benefits payments have begun or are required to begin under subsection (B) of this section, any survivor benefits shall be distributed at least as rapidly as under the distribution method being used at the member's death.
(D) If an active or inactive member dies before benefit payments have begun or are required to begin under subsection (B) of this section, any death benefits shall be distributed by December thirty-first of the calendar year that contains the fifth anniversary of the member's death. However, the five-year rule shall not apply to any death benefit that is payable to a member's designated beneficiary, if:
(1) the benefit is distributed over the designated beneficiary's lifetime or over a period not extending beyond the designated beneficiary's life expectancy; and
(2) the distributions begin no later than December thirty-first of the calendar year that contains the first anniversary of the member's death."
SECTION 8. Section 9-1-1680 of the 1976 Code, as last amended by Act 16 of 2001, is further amended to read:
"Section 9-1-1680. Except as provided in Section 9-18-10, and related sections, Section 20-7-1315 and Section 8-1-115 and subject to the doctrine of constructive trust ex maleficio, and subject to income tax levies imposed pursuant to state or federal law and distributions made pursuant to the federal Pension Protection Act of 2006, the right
SECTION 9. Section 9-1-1970 of the 1976 Code, as last amended by Act 48 of 1995, is further amended to read:
"Section 9-1-1970. Effective as of January 1, 1996, the annual compensation of a member taken into account for determining all benefits provided under this retirement system is subject to the limitations set forth in Section 401(a)(17) of the Internal Revenue Code of 1986 and any regulations promulgated thereunder, as adjusted for any cost-of-living increases in accordance with Section 401(a)(17)(B) of the Internal Revenue Code. Annual compensation means compensation during the plan year or such other consecutive twelve-month period over which compensation is otherwise determined under the retirement system hereinafter referred to as the determination period. The cost-of-living adjustment in effect for a calendar year applies to annual compensation for the determination period that begins with or within such calendar year. However, the limitation on compensation does not apply to the compensation of an individual who became a member of this retirement system before January 1, 1996."
SECTION 10. Chapter 1, Title 9 of the 1976 Code is amended by adding:
"Section 9-1-1975. Compliance with USERRA.
Effective December 12, 1994, and notwithstanding any provision in this chapter to the contrary, contributions, benefits, and service credit with respect to qualified military service shall be provided in accordance with Section 414(u) of the Internal Revenue Code."
SECTION 11. Chapter 1, Title 9 of the 1976 Code is amended by adding:
"Section 9-1-1980. Compliance with Internal Revenue Code Section 415.
(A) Effective as of July 1, 1989, member contributions paid to, and retirement benefits paid from, the system may not exceed the annual
(B) Before January 1, 1995, a member may not receive an annual benefit that exceeds the limits specified in Internal Revenue Code Section 415(b), subject to the applicable adjustments in that section. On and after January 1, 1995, a member may not receive an annual benefit that exceeds the dollar amount specified in Internal Revenue Code Section 415(b)(1)(A), subject to the applicable adjustments in Internal Revenue Code Section 415(b).
(C) For purposes of applying the limits under Internal Revenue Code Section 415(b), hereinafter referred to as 'limit', the following shall apply:
(1) prior to January 1, 2009, cost-of-living adjustments under Section 9-1-1810, shall be taken into consideration when determining a member's applicable limit;
(2) on or after January 1, 2009, with respect to a member who does not receive a portion of his annual benefit in a lump sum:
(a) a member's applicable limit shall be applied to the member's annual benefit in the first limitation year without regard to any automatic cost-of-living increases pursuant to Section 9-1-1810;
(b) to the extent the member's annual benefit equals or exceeds the limit, the member shall no longer be eligible for cost-of-living increases until such time as the benefit plus the accumulated increases are less than the limit;
(c) thereafter, in a subsequent limitation year, the member's annual benefit including any automatic cost-of-living increase applicable pursuant to Section 9-1-1810 shall be tested under the then applicable benefit limit including any adjustment to the Internal
(3) on and after January 1, 2009, with respect to a member who receives a portion of the member's annual benefit in a lump sum, a member's applicable limit shall be applied taking into consideration automatic cost-of-living increases under Section 9-1-1810 as required by Internal Revenue Code Section 415(b) and applicable Treasury Regulations;
(4) on and after January 1, 1995, in no event shall a member's annual benefit payable under the system in any limitation year be greater than the limit applicable at the annuity starting date, as increased in subsequent years pursuant to Internal Revenue Code Section 415(d) and the regulations thereunder. If the form of benefit without regard to the automatic benefit increase feature is not a straight life or a qualified joint and survivor annuity, then the preceding sentence is applied by adjusting the form of benefit to an actuarially equivalent straight life annuity benefit that is determined using the following assumptions and that take into account the death benefits under the form of benefit:
(a) for a benefit paid in a form to which Internal Revenue Code Section 417(e)(3) does not apply, the actuarially equivalent straight life annuity benefit which is the greater of (or the reduced 415(b) limit applicable at the annuity starting date which is the lesser of when adjusted in accordance with the following assumptions):
(i) the annual amount of the straight life annuity, if any, payable to the member under the plan commencing at the same annuity starting date as the form of benefit payable to the member; or
(ii) the annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the form of benefit payable to the member, computed using (aa) a five percent interest assumption or the applicable statutory interest assumption and (bb) the applicable mortality table described in Treasury Regulation Section 1.417(e)-1(d)(2) which is the mortality table specified in Revenue Ruling 98-1 for years prior to 2003 or, for subsequent years, in Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Ruling 2001-62;
(b) for a benefit paid in a form to which Internal Revenue Code Section 417(e)(3) applies, the actuarially equivalent straight life annuity benefit which is the greatest of (or the reduced 415(b) limit
(i) the annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable, computed using the interest rate and mortality table, or tabular factor, specified in the plan for actuarial experience;
(ii) the annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable, computed using (aa) a five and one-half percent interest assumption or the applicable statutory interest assumption and (bb) the applicable mortality table for the distribution under Treasury Regulation Section 1.417(e) -1(d)(2) which is the mortality table specified in Revenue Ruling 98-1 for years prior to 2003 or, for subsequent years, in Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Ruling 2001-62; or
(iii) the annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable, computed using (aa) the applicable interest rate for the distribution under Treasury Regulation Section 1.417(e)-1(d)(3) which, prior to July 1, 2007, is the thirty-year treasury rate in effect for the month prior to retirement, and, on and after July 1, 2007, is the thirty-year treasury rate in effect for the first day of the plan year with a one-year stabilization period and (bb) the applicable mortality table for the distribution under Treasury Regulation Section 1.417(e)-1(d)(2), which is the mortality table specified in Revenue Ruling 98-1 for years prior to 2003 or, for subsequent years, in Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Ruling 2001-62, divided by 1.05; and
(5) The member's annual benefit shall be adjusted as provided by Internal Revenue Code Section 415(b)(2)(B) and related Treasury regulations by taking into consideration after-tax contributions and rollover and transfer contributions made by the member.
(D) Notwithstanding any other provision of law to the contrary, the system may modify a request by a member to make a contribution to the system if the amount of the contribution would exceed the limits provided in Internal Revenue Code Section 415 by using the following methods:
(1) if the law requires a lump sum payment for the purchase of service credit, the board may establish a periodic payment plan for the member to avoid a contribution in excess of the limits under Internal Revenue Code Sections 415(c) or 415(n);
(2) if payment pursuant to item (1) shall not avoid a contribution in excess of the limits imposed by Internal Revenue Code Section 415(c), the system may either reduce the member's contribution to an amount within the limits of that section or refuse the member's contribution;
(3) effective for permissive service credit contributions made in years beginning after December 31, 1997, if a member makes one or more contributions to purchase permissive service credit under the system, then the requirements of this section shall be treated as met only if:
(a) the requirements of Internal Revenue Code Section 415(b) are met, determined by treating the accrued benefit derived from all such contributions as an annual benefit for purposes of Internal Revenue Code Section 415(b); or
(b) the requirements of Internal Revenue Code Section 415(c) are met, determined by treating all such contributions as annual additions for purposes of Internal Revenue Code Section 415(c).
For purposes of applying subitem (a) the system will not fail to meet the reduced limit under Internal Revenue Code Section 415(b)(2)(C) solely by reason of this subsection (D), and for purposes of applying subitem (b) the system will not fail to meet the percentage limitation under Internal Revenue Code Section 415(c)(1)(B) solely by reason of this subsection (D);
(4) for purposes of subsection (D) the term 'permissive service credit' means service credit:
(a) recognized by the system for purposes of calculating a member's benefit under the system;
(b) which such member has not received under the system; and
(c) which such member may receive only by making a voluntary additional contribution, in an amount determined under the system, which does not exceed the amount necessary to fund the benefit attributable to such service credit.
Effective for permissive service credit contributions made in years beginning after December 31, 1997, such term may include service credit for periods for which there is no performance of service, and, notwithstanding subitem (b), may include service credited in order to
(5) the system will fail to meet the requirements of this subsection (D) if:
(a) more than five years of nonqualified service credit are taken into account for purposes of this subsection (D); or
(b) any nonqualified service credit is taken into account under this subsection (D) before the member has at least five years of participation under the system;
(6) for purposes of item (5), effective for permissive service credit contributions made in years beginning after December 31, 1997, the term 'nonqualified service credit' means permissive service credit other than that allowed with respect to:
(a) service including parental, medical, sabbatical, and similar leave, as an employee of the government of the United States, any state or political subdivision thereof, or any agency or instrumentality of any of the foregoing other than military service or service for credit which was obtained as a result of a repayment described in Internal Revenue Code Section 415(k)(3);
(b) service including parental, medical, sabbatical, and similar leave, as an employee other than as an employee described in subitem (a), of an education organization described in Internal Revenue Code Section 170(b)(1)(A)(ii) which is a public, private, or sectarian school which provides elementary or secondary education through grade twelve, or a comparable level of education, as determined under the applicable law of the jurisdiction in which the service was performed; provided, however, that in the case of a private or sectarian school, only teaching service will not be treated as nonqualified service;
(c) service as an employee of an association of employees who are described in subitem (a); or
(d) military service, other than qualified military service under Internal Revenue Code Section 414(u), recognized by such governmental plan.
In the case of service described in subitem (a), (b), or (c), such service shall be nonqualified service if recognition of such service would cause a member to receive a retirement benefit for the same service under more than one plan;
(7) in the case of a trustee-to-trustee transfer after December 31, 2001, to which Internal Revenue Code Section 403(b)(13)(A) or 457(e)(17)(A) applies, without regard to whether the transfer is made between plans maintained by the same employer:
(a) the limitations of item (5) shall not apply in determining whether the transfer is for the purchase of permissive service credit;
(b) the distribution rules applicable under federal law to the system will apply to such amounts and any benefits attributable to such amounts;
(8) for an eligible member, the limitation of Internal Revenue Code Section 415(c)(1) shall not be applied to reduce the amount of permissive service credit which may be purchased to an amount less than the amount which was allowed to be purchased under the terms of the South Carolina Retirement System as in effect on August 5, 1997. For purposes of this item (8), an eligible member is an individual who first became a member in the system before July 1, 1998."
SECTION 12. Section 9-8-130(4) of the 1976 Code, as last amended by Act 249 of 2004, is further amended to read:
"(4) Each department and political subdivision shall pickup the employee contributions required by this section for all compensation paid on or after July 1, 1982, and the contributions so picked up shall be treated as employer contributions in determining federal tax treatment under the United States Internal Revenue Code; however, each department and political subdivision shall continue to withhold federal income taxes based upon these contributions until the Internal Revenue Service, or the federal courts, rule that, pursuant to Section 414(h) of the United States Internal Revenue Code, these contributions shall not be included as gross income of the employee until such time as they are distributed or made available. For this purpose, each department and political subdivision is deemed to have taken formal action on or before January 1, 2009, to provide that the contributions on behalf of its employees, although designated as employer contributions, shall be paid by the employer in lieu of employee contributions. The department and political subdivision shall pay these employee contributions from the same source of funds which is used in paying earnings to the employee. The department and political subdivision may pickup these contributions by a reduction in the cash salary of the employee. The employee, however, must not be given the option of choosing to receive the contributed amount of the pickups directly instead of having them paid by the employer to the retirement system. Employee contributions picked up shall be treated for all purposes of this section in the same manner and to the extent as employee contributions made prior to the date picked up."
SECTION 13. Section 9-8-190 of the 1976 Code, as last amended by Act 16 of 2001, is further amended to read:
"Section 9-8-190. Except as provided in Section 9-18-10, and related sections, Section 20-7-1315 and Section 8-1-115 and subject to the doctrine of constructive trust ex maleficio, and subject to income tax levies imposed pursuant to state or federal law and distributions made pursuant to the federal Pension Protection Act of 2006, the right of a person to a retirement allowance or to the return of contributions, a retirement allowance itself, any optional allowance or payment on death or any other right accrued or accruing to any person under the provisions of this chapter, and the monies of the system are exempted from state or municipal tax, except the taxes imposed pursuant to Chapters 6 and 16 of Title 12, and exempted from levy and sale, garnishment, attachment, or any other process and are unassignable except as otherwise provided in this chapter. This section does not apply to any authorized deduction from a retirement allowance."
SECTION 14. Section 9-8-240 of the 1976 Code, as added by Act 48 of 1995, is amended to read:
"Section 9-8-240. Effective as of January 1, 1996, the annual compensation of a member taken into account for determining all benefits provided under this retirement system is subject to the limitations set forth in Section 401(a)(17) of the Internal Revenue Code of 1986 and any regulations promulgated thereunder, as adjusted for any cost-of-living increases in accordance with Section 401(a)(17)(B) of the Internal Revenue Code. Annual compensation means compensation during the plan year or such other consecutive twelve-month period over which compensation is otherwise determined under the retirement system, hereinafter referred to as the determination period. The cost-of-living adjustment in effect for a calendar year applies to annual compensation for the determination period that begins with or within such calendar year. However, the limitation on compensation does not apply to the compensation of an individual who became a member of this retirement system before January 1, 1996."
SECTION 15. Chapter 8, Title 9 of the 1976 Code is amended by adding:
"Section 9-8-245. Compliance with USERRA.
Effective December 12, 1994, and notwithstanding any provision in this chapter to the contrary, contributions, benefits, and service credit with respect to qualified military service shall be provided in accordance with Section 414(u) of the Internal Revenue Code."
SECTION 16. Chapter 8, Title 9 of the 1976 Code is amended by adding:
"Section 9-8-250. Compliance with Internal Revenue Code Section 401(a)(31).
(A) This section applies to distributions made on or after January 1, 1993. Notwithstanding any contrary provision or retirement law that would otherwise limit a distributee's election under this chapter, a distributee may elect, at the time and in the manner prescribed by the board, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
(B) Effective January 1, 2007, and notwithstanding anything in this chapter to the contrary that otherwise would limit a distributee's election under this section, and to the extent allowed under the applicable provisions of the Internal Revenue Code and the Treasury Regulations, a distributee who is a designated beneficiary, but not a surviving spouse, spouse or former spouse alternate payee may elect, at the time and in the manner prescribed by the board, to have all or part of his benefit that qualifies as an eligible rollover distribution paid in a direct trustee-to-trustee transfer to an eligible retirement plan that is an individual retirement plan described in clause (i) or (ii) of Internal Revenue Code Section 402(c)(8)(B). If such a transfer is made:
(1) the transfer shall be treated as an eligible rollover distribution;
(2) the individual retirement plan shall be treated as an inherited individual retirement account or individual retirement annuity within the meaning of Internal Revenue Code Section 408(d)(3)(C); and
(3) Internal Revenue Code Section 401(a)(9)(B) other than clause (iv) thereof, shall apply to such individual retirement plan. (C) A 'designated beneficiary' is an individual who is designated as a beneficiary under this chapter and is the designated beneficiary under Internal Revenue Code Section 401(a)(9) and Section 1.401(a)(9)-1, Q&A-4 of the Treasury Regulations. An estate or revocable trust is not considered to be a designated beneficiary for purposes of Internal Revenue Code Section 401(a)(9).
(D) An 'eligible rollover distribution' is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include:
(1) any distribution that is one of a series of substantially equal periodic payments made not less frequently than annually for the life or the life expectancy of the distributee or the joint lives or joint life expectancies of the distributee and the distributee's designated beneficiary, or for a specified period of ten years or more;
(2) any distribution to the extent such distribution is required under Internal Revenue Code Section 401(a)(9); and
(3) any hardship distribution.
Effective January 1, 2002, a portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions that are not includible in gross income. However, such portion may be transferred only to an individual retirement account or annuity described in Internal Revenue Code Section 408(a) or (b), or in a direct trustee-to-trustee rollover to a qualified trust under Internal Revenue Code Section 401(a) or 403(a) that is part of a defined contribution or defined benefit plan, or to an annuity contract described in Internal Revenue Code Section 403(b), so long as such trust or annuity contract separately accounts for amounts so transferred, including separate accounting for the portion of such distribution that is includible in gross income and the portion of such distribution that is not includible. Effective January 1, 2008, an eligible rollover distribution also shall mean a qualified rollover contribution to a Roth IRA within the meaning of Internal Revenue Code Section 408A.
(E) Effective January 1, 2002, unless otherwise stated an 'eligible retirement plan' is:
(1) a plan eligible under Internal Revenue Code Section 457(b) that is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state that agrees to separately account for amounts transferred into the plan from the system;
(2) an individual retirement account described in Internal Revenue Code Section 408(a);
(3) an individual retirement annuity described in Internal Revenue Code Section 408(b);
(4) an annuity plan described in Internal Revenue Code Section 403(a);
(5) an annuity contract described in Internal Revenue Code Section 403(b);
(6) a qualified trust described in Internal Revenue Code Section 401(a) that accepts the distributee's eligible rollover distribution; or
(7) effective January 1, 2008, a Roth IRA described in Internal Revenue Code Section 408A.
(F) Effective January 1, 2002, the definition of eligible rollover distribution also includes a distribution to a surviving spouse, or to a
(G) A 'distributee' includes an employee or former employee. It also includes the employee's or former employee's surviving spouse and the employee's or former employee's spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Internal Revenue Code Section 414(p). Effective January 1, 2007, it further includes a nonspouse beneficiary who is a designated beneficiary as defined by Internal Revenue Code Section 401(a)(9)(E). However, a nonspouse beneficiary may rollover the distribution only to an individual retirement account or individual retirement annuity established for the purpose of receiving the distribution and the account or annuity will be treated as an 'inherited' individual retirement account or annuity.
(H) A direct rollover is a payment by the system to the eligible retirement plan specified by the distributee."
SECTION 17. Chapter 8, Title 9 of the 1976 Code is amended by adding:
"Section 9-8-260. Compliance with Internal Revenue Code Section 401(a)(9).
(A) Effective as of January 1, 1989, the system shall pay all benefits in accordance with the requirements of Section 401(a)(9) of the Internal Revenue Code, including the incidental death benefit requirement in Section 401(a)(9)(G), and the applicable Treasury Regulations and Internal Revenue Service Rulings and other interpretations issued thereunder, including Treasury Regulations Sections 1.401(a)(9)-2 through 1.401(a)(9)-9. The provisions of this section shall override any distribution options that are inconsistent with Section 401(a)(9) of the Internal Revenue Code to the extent that those distribution options are not grandfathered under Treasury Regulation Section 1.401(a)(9)-6, Q&A-16.
(B) Each member's entire benefit shall be distributed to the member, beginning no later than the required beginning date, over the member's lifetime or the joint lives of the member and a designated beneficiary, or over a period not extending beyond the member's life expectancy or the joint life expectancies of the member and a designated beneficiary. If a member fails to apply for retirement benefits by his required beginning date, the board shall begin distributing the benefit as required by this chapter:
(1) For purposes of this section, the 'required beginning date' is April first of the calendar year after the later of the following:
(a) the calendar year in which the member reaches age seventy and one-half years of age; or
(b) the calendar year in which the member retires.
(2) For purposes of this section, a 'designated beneficiary' means any individual designated as a co-beneficiary by the member under this chapter. If the member designates a trust as a co-beneficiary, the individual beneficiaries of the trust shall be treated as designated beneficiaries if the trust satisfies the requirement set forth in Treasury Regulation Section 1.401(a)(9)-3.
(3) Payment of retirement benefits, for those members who are eligible to receive retirement benefits and who have not applied for such pursuant to the provisions of this chapter, and who continue membership after attaining seventy and one-half years of age, shall commence on the effective date of retirement.
(C) If a retired member dies after benefits payments have begun or are required to begin under subsection (B) of this section, any survivor benefits shall be distributed at least as rapidly as under the distribution method being used at the member's death.
(D) If an active or inactive member dies before benefit payments have begun or are required to begin under subsection (B) of this section, any death benefits shall be distributed by December thirty-first of the calendar year that contains the fifth anniversary of the member's death. However, the five-year rule shall not apply to any death benefit that is payable to a member's designated beneficiary, if:
(1) the benefit is distributed over the designated beneficiary's lifetime or over a period not extending beyond the designated beneficiary's life expectancy; and
(2) the distributions begin no later than December thirty-first of the calendar year that contains the first anniversary of the member's death."
SECTION 18. Chapter 8, Title 9 of the 1976 Code is amended by adding:
"Section 9-8-270. Compliance with Internal Revenue Code Section 415.
(A) Effective as of July 1, 1989, member contributions paid to, and retirement benefits paid from, the system may not exceed the annual limits on contributions and benefits, respectively, allowed by Internal Revenue Code Section 415. For purposes of applying these limits, the definition of compensation where applicable will be compensation as defined in Treasury Regulation Section 1.415(c)-2(d)(3), or successor regulation; provided, however, that the definition of compensation will
(B) Before January 1, 1995, a member may not receive an annual benefit that exceeds the limits specified in Internal Revenue Code Section 415(b), subject to the applicable adjustments in that section. On and after January 1, 1995, a member may not receive an annual benefit that exceeds the dollar amount specified in Internal Revenue Code Section 415(b)(1)(A), subject to the applicable adjustments in Internal Revenue Code Section 415(b).
(C) For purposes of applying the limits under Internal Revenue Code Section 415(b), hereinafter referred to as 'limit', the following shall apply:
(1) prior to January 1, 2009, cost-of-living adjustments under Section 9-8-90 will be taken into consideration when determining a member's applicable limit;
(2) on and after January 1, 2009, with respect to a member who does not receive a portion of the member's annual benefit in a lump sum:
(a) a member's applicable limit shall be applied to the member's annual benefit in the first limitation year without regard to any automatic cost-of living increases under Section 9-8-90;
(b) to the extent the member's annual benefit equals or exceeds the limit, the member will no longer be eligible for cost-of-living increases until such time as the benefit plus the accumulated increases are less than the limit; and
(c) thereafter, in any subsequent limitation year, the member's annual benefit, including any automatic cost-of-living increase applicable under Section 9-8-90, shall be tested under the then applicable benefit limit including any adjustment to the Internal Revenue Code Section 415(b)(1)(A) dollar limit under Internal Revenue Code Section 415(d) and the regulations thereunder;
(3) on and after January 1, 2009, with respect to a member who receives a portion of the member's annual benefit in a lump sum, a member's applicable limit shall be applied taking into consideration
(4) on and after January 1, 1995, in no event shall a member's annual benefit payable under the system in any limitation year be greater than the limit applicable at the annuity starting date, as increased in subsequent years pursuant to Internal Revenue Code Section 415(d) and the regulations thereunder. If the form of benefit without regard to the automatic benefit increase feature is not a straight life or a qualified joint and survivor annuity, then the preceding sentence is applied by adjusting the form of benefit to an actuarially equivalent straight life annuity benefit that is determined using the following assumptions and that take into account the death benefits under the form of benefit:
(a) for a benefit paid in a form to which Internal Revenue Code Section 417(e)(3) does not apply, the actuarially equivalent straight life annuity benefit which is the greater of (or the reduced Internal Revenue Code Section 415(b) limit applicable at the annuity starting date which is the lesser of when adjusted in accordance with the following assumptions):
(i) the annual amount of the straight life annuity if any payable to the member under the plan commencing at the same annuity starting date as the form of benefit payable to the member; or
(ii) the annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the form of benefit payable to the member, computed using (aa) a five percent interest assumption or the applicable statutory interest assumption and (bb)the applicable mortality table described in Treasury Regulation Section 1.417(e)-1(d)(2) which is the mortality table specified in Revenue Ruling 98-1 for years prior to 2003 or, for subsequent years, in Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Ruling 2001-62; or
(b) for a benefit paid in a form to which Internal Revenue Code Section 417(e)(3) applies, the actuarially equivalent straight life annuity benefit which is the greatest of (or the reduced Internal Revenue Code Section 415(b) limit applicable at the annuity starting date which is the least of when adjusted in accordance with the following assumptions):
(i) the annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as
(ii) the annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable, computed using (aa) a five and one-half percent interest assumption or the applicable statutory interest assumption and (bb) the applicable mortality table for the distribution under Treasury Regulation Section 1.417(e)-1(d)(2) which is the mortality table specified in Revenue Ruling 98-1 for years prior to 2003 or, for subsequent years, in Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Ruling 2001-62; or
(iii) the annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable computed using (aa) the applicable interest rate for the distribution under Treasury Regulation Section 1.417(e)-1(d)(3) which, prior to July 1, 2007, is the thirty-year treasury rate in effect for the month prior to retirement, and on and after July 1, 2007, is the thirty-year treasury rate in effect for the first day of the plan year with a one-year stabilization period, and (bb) the applicable mortality table for the distribution under Treasury Regulation Section 1.417(e)-1(d)(2) which is the mortality table specified in Revenue Ruling 98-1 for years prior to 2003 or, for subsequent years, in Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Ruling 2001-62, divided by 1.05; and
(5) the member's annual benefit will be adjusted as provided by Internal Revenue Code Section 415(b)(2)(B) and related treasury regulations by taking into consideration after-tax contributions and rollover and transfer contributions made by the member.
(D) Notwithstanding any other provision of law to the contrary, the system may modify a request by a member to make a contribution to the system if the amount of the contribution would exceed the limits provided in Internal Revenue Code Section 415 by using the following methods:
(1) if the law requires a lump sum payment for the purchase of service credit, the board may establish a periodic payment plan for the member to avoid a contribution in excess of the limits under Internal Revenue Code Section 415(c) or 415(n);
(2) if payment pursuant to item (1) shall not avoid a contribution in excess of the limits imposed by Internal Revenue Code Section 415(c), the system may either reduce the member's contribution to an amount within the limits of that section or refuse the member's contribution; and
(3) effective for permissive service credit contributions made in years beginning after December 31, 1997, if a member makes one or more contributions to purchase permissive service credit under the system, then the requirements of this section will be treated as met only if:
(a) the requirements of Internal Revenue Code Section 415(b) are met, determined by treating the accrued benefit derived from all such contributions as an annual benefit for purposes of Code Section 415(b); or
(b) the requirements of Internal Revenue Code Section 415(c) are met, determined by treating all such contributions as annual additions for purposes of Code Section 415(c).
For purposes of applying subitem (a) the system shall not fail to meet the reduced limit under Internal Revenue Code Section 415(b)(2)(C) solely by reason of this subsection (D), and for purposes of applying subitem (b) the system shall not fail to meet the percentage limitation under Internal Revenue Code Section 415(c)(1)(B) solely by reason of this subsection (D);
(4) for purposes of subsection (D), the term 'permissive service credit' means service credit:
(a) recognized by the system for purposes of calculating a member's benefit under the system;
(b) which such member has not received under the system; and
(c) which such member may receive only by making a voluntary additional contribution, in an amount determined under the system, which does not exceed the amount necessary to fund the benefit attributable to such service credit.
Effective for permissive service credit contributions made in years beginning after December 31, 1997, such term may include service credit for periods for which there is no performance of service, and, notwithstanding subitem (b), may include service credited in order to provide an increased benefit for service credit which a member is receiving under the system;
(5) the system shall fail to meet the requirements of this subsection (D) if:
(a) more than five years of nonqualified service credit are taken into account for purposes of this subsection (D); or
(b) any nonqualified service credit is taken into account under this subsection (D) before the member has at least five years of participation under the system;
(6) for purposes of item (5), effective for permissive service credit contributions made in years beginning after December 31, 1997, the term 'nonqualified service credit' means permissive service credit other than that allowed with respect to:
(a) service including parental, medical, sabbatical, and similar leave as an employee of the government of the United States, any state or political subdivision thereof, or any agency or instrumentality of any of the foregoing other than military service or service for credit which was obtained as a result of a repayment described in Internal Revenue Code Section 415(k)(3);
(b) service including parental, medical, sabbatical, and similar leave as an employee, other than as an employee described in subitem (a), of an education organization described in Internal Revenue Code Section 170(b)(1)(A)(ii) which is a public, private, or sectarian school which provides elementary or secondary education through grade twelve, or a comparable level of education, as determined under the applicable law of the jurisdiction in which the service was performed; provided, however, that in the case of a private or sectarian school, only teaching service will not be treated as nonqualified service;
(c) service as an employee of an association of employees who are described in subitem (a); or
(d) military service, other than qualified military service under Internal Revenue Code Section 414(u), recognized by such governmental plan.
In the case of service described in subitem (a), (b), or (c), such service shall be nonqualified service if recognition of such service would cause a member to receive a retirement benefit for the same service under more than one plan;
(7) in the case of a trustee-to-trustee transfer after December 31, 2001, to which Internal Revenue Code Section 403(b)(13)(A) or 457(e)(17)(A) applies, without regard to whether the transfer is made between plans maintained by the same employer:
(a) the limitations of item (5) shall not apply in determining whether the transfer is for the purchase of permissive service credit; and
(b) the distribution rules applicable under federal law to the system will apply to such amounts and any benefits attributable to such amounts;
(8) for an eligible member, the limitation of Internal Revenue Code Section 415(c)(1) shall not be applied to reduce the amount of permissive service credit which may be purchased to an amount less than the amount which was allowed to be purchased under the terms of the Retirement System for Judges and Solicitors as in effect on August 5, 1997. For purposes of this item, an eligible member is an individual who first became a member in the system before July 1, 1998."
SECTION 19. Section 9-11-150(A) of the 1976 Code, as last amended by Act 387 of 2000, is further amended to read:
"(A) No later than the date the first payment of a retirement allowance is due, a member shall elect a form of monthly payment from the following options:
Option A. The maximum retirement allowance payable under law for the life of the member. Upon the member's death, the member's designated beneficiary is entitled to receive any remaining member contributions.
Option B. A reduced retirement allowance payable during the retired member's life, which continues after the member's death for the life of the member's designated beneficiary or, if the member selects multiple beneficiaries, which continues after the member's death in equal shares to and for the life of each of two or more beneficiaries. The reduced retirement allowance payable under this option must be the actuarial equivalent of the maximum retirement allowance payable to the member under law, and if the member selects multiple beneficiaries, the benefit reduction factor must be based on the average age of the designated beneficiaries. If all of the designated beneficiaries predecease the member, then the member shall receive a retirement allowance equal to the maximum retirement allowance payable under law to the member. Any retirement allowance payable under this option, except an allowance for disability retirement pursuant to Section 9-11-80, shall be subject to the incidental death benefit limitation upon the payment of survivorship benefits to a nonspouse beneficiary under Section 401(a)(9)(G) of the Internal Revenue Code and Treasury Regulation Section 1.401(a)(9)-6, Q&A-2.
Option C. A reduced retirement allowance payable during the retired member's life, which continues after the member's death at one-half the rate paid to the member for the life of the member's designated beneficiary or, if the member selects multiple beneficiaries,
SECTION 20. Chapter 11, Title 9 of the 1976 Code is amended by adding:
"Section 9-11-155. Compliance with Internal Revenue Code Section 401(a)(31).
(A) This section applies to distributions made on or after January 1, 1993. Notwithstanding any contrary provision or retirement law that would otherwise limit a distributee's election under this chapter, a distributee may elect, at the time and in the manner prescribed by the board, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
(B) Effective January 1, 2007, and notwithstanding anything in this chapter to the contrary that otherwise would limit a distributee's election under this section, and to the extent allowed under the applicable provisions of the Internal Revenue Code and the Treasury Regulations, a distributee who is a designated beneficiary, but not a surviving spouse, spouse or former spouse alternate payee may elect, at the time and in the manner prescribed by the board, to have all or part of his benefit that qualifies as an eligible rollover distribution paid in a direct trustee-to-trustee transfer to an eligible retirement plan that is an individual retirement plan described in clause (i) or (ii) of Internal Revenue Code Section 402(c)(8)(B). If such a transfer is made:
(1) the transfer shall be treated as an eligible rollover distribution;
(2) the individual retirement plan shall be treated as an inherited individual retirement account or individual retirement annuity within the meaning of Internal Revenue Code Section 408(d)(3)(C); and
(3) Internal Revenue Code Section 401(a)(9)(B) other than clause (iv) thereof, shall apply to such individual retirement plan.
(C) A 'designated beneficiary' is an individual who is designated as a beneficiary under this chapter and is the designated beneficiary under
(D) An 'eligible rollover distribution' is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include:
(1) any distribution that is one of a series of substantially equal periodic payments made not less frequently than annually for the life or the life expectancy of the distributee or the joint lives or joint life expectancies of the distributee and the distributee's designated beneficiary, or for a specified period of ten years or more;
(2) any distribution to the extent such distribution is required under Internal Revenue Code Section 401(a)(9); and
(3) any hardship distribution.
Effective January 1, 2002, a portion of a distribution will not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions that are not includible in gross income. However, such portion may be transferred only to an individual retirement account or annuity described in Internal Revenue Code Section 408(a) or (b), or in a direct trustee-to-trustee rollover to a qualified trust under Internal Revenue Code Section 401(a) or 403(a) that is part of a defined contribution or defined benefit plan, or to an annuity contract described in Internal Revenue Code Section 403(b), so long as such trust or annuity contract separately accounts for amounts so transferred, including separate accounting for the portion of such distribution that is includible in gross income and the portion of such distribution that is not includible. Effective January 1, 2008, an eligible rollover distribution also shall mean a qualified rollover contribution to a Roth IRA within the meaning of Internal Revenue Code Section 408A.
(E) Effective January 1, 2002 unless otherwise stated an 'eligible retirement plan' is:
(1) a plan eligible under Internal Revenue Code Section 457(b) that is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state that agrees to separately account for amounts transferred into the plan from the system;
(2) an individual retirement account described in Internal Revenue Code Section 408(a);
(3) an individual retirement annuity described in Internal Revenue Code Section 408(b);
(4) an annuity plan described in Internal Revenue Code Section 403(a);
(5) an annuity contract described in Internal Revenue Code Section 403(b);
(6) a qualified trust described in Internal Revenue Code Section 401(a) that accepts the distributee's eligible rollover distribution; or
(7) effective January 1, 2008, a Roth IRA described in Internal Revenue Code Section 408A.
(F) Effective January 1, 2002, the definition of eligible rollover distribution also includes a distribution to a surviving spouse, or to a spouse or former spouse who is an alternate payee under a domestic relations order, as defined in Internal Revenue Code Section 414(p).
(G) A 'distributee' includes an employee or former employee. It also includes the employee's or former employee's surviving spouse and the employee's or former employee's spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Internal Revenue Code Section 414(p). Effective January 1, 2007, it further includes a nonspouse beneficiary who is a designated beneficiary as defined by Internal Revenue Code Section 401(a)(9)(E). However, a nonspouse beneficiary may rollover the distribution only to an individual retirement account or individual retirement annuity established for the purpose of receiving the distribution and the account or annuity will be treated as an 'inherited' individual retirement account or annuity.
(H) A 'direct rollover' is a payment by the system to the eligible retirement plan specified by the distributee."
SECTION 21. Chapter 11, Title 9 of the 1976 Code is amended by adding:
"Section 9-11-175. Compliance with Internal Revenue Code Section 401(a)(9).
(A) Effective as of January 1, 1989, the system will pay all benefits in accordance with the requirements of Internal Revenue Code Section 401(a)(9) of the Internal Revenue Code, including the incidental death benefit requirement in Internal Revenue Code Section 401(a)(9)(G), and the applicable Treasury Regulations and Internal Revenue Service Rulings and other interpretations issued thereunder, including Treasury Regulations Sections 1.401(a)(9)-2 through 1.401(a)(9)-9. The provisions of this section shall override any distribution options that are inconsistent with Section 401(a)(9) to the extent that those distribution
(B) Each member's entire benefit shall be distributed to the member, beginning no later than the required beginning date, over the member's lifetime or the joint lives of the member and a designated beneficiary, or over a period not extending beyond the member's life expectancy or the joint life expectancies of the member and a designated beneficiary. If a member fails to apply for retirement benefits by his required beginning date, the board will begin distributing the benefit as required by this chapter.
(1) For purposes of this section, the 'required beginning date' is April first of the calendar year after the later of the following:
(a) the calendar year in which the member reaches age seventy and one-half years of age; or
(b) the calendar year in which the member retires.
(2) For purposes of this section, a 'designated beneficiary' means any individual designated as a co-beneficiary by the member under this chapter. If the member designates a trust as a co-beneficiary, the individual beneficiaries of the trust shall be treated as designated beneficiaries if the trust satisfies the requirement set forth in Treasury Regulation Section 1.401(a)(9)-3.
(3) Payment of retirement benefits, for those members who are eligible to receive retirement benefits and who have not applied for such pursuant to the provisions of this chapter, and who continue membership after attaining seventy and one-half years of age, shall commence on the effective date of retirement.
(C) If a retired member dies after benefits payments have begun or are required to begin under subsection (B) of this section, any survivor benefits shall be distributed at least as rapidly as under the distribution method being used at the member's death.
(D) If an active or inactive member dies before benefit payments have begun or are required to begin under subsection (B) of this section, any death benefits shall be distributed by December thirty-first of the calendar year that contains the fifth anniversary of the member's death. However, the five-year rule shall not apply to any death benefit that is payable to a member's designated beneficiary, if:
(1) the benefit is distributed over the designated beneficiary's lifetime or over a period not extending beyond the designated beneficiary's life expectancy; and
(2) the distributions begin no later than December thirty-first of the calendar year that contains the first anniversary of the member's death."
SECTION 22. Section 9-11-210(11) of the 1976 Code is amended to read:
"(11) Each department and political subdivision shall pickup the employee contributions required by this section for all compensation paid on or after July 1, 1982, and the contributions so picked up shall be treated as employer contributions so picked up shall be treated as employer contributions in determining federal tax treatment under the United States Internal Revenue Code; however, each department and political subdivision shall continue to withhold federal income taxes based upon these contributions until the Internal Revenue Service, or the federal courts, rule that, pursuant to Section 414(h) of the United States Internal Revenue Code, these contributions shall not be included as gross income of the employee until such time as they are distributed or made available. For this purpose, each department and political subdivision is deemed to have taken formal action on or before January 1, 2009, to provide that the contributions on behalf of its employees, although designated as employer contributions, shall be paid by the employer in lieu of employee contributions. The department and political subdivision shall pay these employee contributions from the same source of funds which is used in paying earnings to the employee. The department and political subdivision may pickup these contributions by a reduction in the cash salary of the employee. The employee, however, must not be given the option of choosing to receive the contributed amount of the pickups directly instead of having them paid by the employer to the retirement system. Employee contributions picked up shall be treated for all purposes of this section in the same manner and to the extent as employee contributions made prior to the date picked up."
SECTION 23. Section 9-11-270 of the 1976 Code, as last amended by Act 16 of 2001, is further amended to read:
"Section 9-11-270. Except as provided in Section 9-18-10 and related sections, Section 20-7-1315 and Section 8-1-115 and subject to the doctrine of constructive trust ex maleficio, and subject to income tax levies imposed pursuant to state or federal law and distributions made pursuant to the federal Pension Protection Act of 2006, the right of a person to retirement allowance or to the return of contributions, a retirement allowance itself, any optional or death benefit, or any other right accrued or accruing to a person under the provisions of this
SECTION 24. Section 9-11-350 of the 1976 Code, as added by Act 48 of 1995, is amended to read:
"Section 9-11-350. Effective as of January 1, 1996, the annual compensation of a member taken into account for determining all benefits provided under this retirement system is subject to the limitations set forth in Section 401(a)(17) of the Internal Revenue Code of 1986 and any regulations promulgated thereunder, as adjusted for any cost-of-living increases in accordance with Section 401(a)(17)(B) of the Internal Revenue Code. Annual compensation means compensation during the plan year or such other consecutive twelve-month period over which compensation is otherwise determined under the retirement system, hereinafter referred to as the determination period. The cost-of-living adjustment in effect for a calendar year applies to annual compensation for the determination period that begins with or within such calendar year. However, the limitation on compensation does not apply to the compensation of an individual who became a member of this retirement system before January 1, 1996."
SECTION 25. Chapter 11, Title 9 of the 1976 Code is amended by adding:
"Section 9-11-355. Compliance with USERRA.
Effective December 12, 1994, and notwithstanding any provision in this chapter to the contrary, contributions, benefits, and service credit with respect to qualified military service will be provided in accordance with Section 414(u) of the Internal Revenue Code."
SECTION 26. Chapter 11, Title 9 of the 1976 Code is amended by adding:
"Section 9-11-360. Compliance with Internal Revenue Code Section 415.
(A) Effective as of July 1, 1989, member contributions paid to, and retirement benefits paid from, the system may not exceed the annual limits on contributions and benefits, respectively, allowed by Internal Revenue Code Section 415. For purposes of applying these limits, the definition of compensation where applicable will be compensation as defined in Treasury Regulation Section 1.415(c)-2(d)(3), or successor regulation; provided, that the definition of compensation will exclude
(B) Before January 1, 1995, a member may not receive an annual benefit that exceeds the limits specified in Internal Revenue Code Section 415(b), subject to the applicable adjustments in that section. On and after January 1, 1995, a member may not receive an annual benefit that exceeds the dollar amount specified in Internal Revenue Code Section 415(b)(1)(A), subject to the applicable adjustments in Internal Revenue Code Section 415(b).
(C) For purposes of applying the limits under Internal Revenue Code Section 415(b), hereinafter referred to as 'limit', the following will apply:
(1) prior to January 1, 2009, cost-of-living adjustments under Section 9-11-310 will be taken into consideration when determining a member's applicable limit;
(2) on and after January 1, 2009, with respect to a member who does not receive a portion of the member's annual benefit in a lump sum:
(a) a member's applicable limit shall be applied to the member's annual benefit in the first limitation year without regard to any automatic cost-of-living increases under Section 9-11-310;
(b) to the extent the member's annual benefit equals or exceeds the limit, the member is no longer eligible for cost-of-living increases until such time as the benefit plus the accumulated increases are less than the limit; and
(c) thereafter, in any subsequent limitation year, the member's annual benefit including any automatic cost-of-living increase applicable under Section 9-11-310 shall be tested under the then applicable benefit limit including any adjustment to the Internal Revenue Code Section 415(b)(1)(A) dollar limit under Internal Revenue Code Section 415(d) and the regulations thereunder;
(3) on and after January 1, 2009, with respect to a member who receives a portion of the member's annual benefit in a lump sum, a member's applicable limit shall be applied taking into consideration
(4) on and after January 1, 1995, in no event shall a member's annual benefit payable under the system in any limitation year be greater than the limit applicable at the annuity starting date, as increased in subsequent years pursuant to Internal Revenue Code Section 415(d) and the regulations thereunder. If the form of benefit without regard to the automatic benefit increase feature is not a straight life or a qualified joint and survivor annuity, then the preceding sentence is applied by adjusting the form of benefit to an actuarially equivalent straight life annuity benefit this is determined using the following assumptions and that take into account the death benefits under the form of benefit:
(a) for a benefit paid in a form to which Internal Revenue Code Section 417(e)(3) does not apply, the actuarially equivalent straight life annuity benefit which is the greater of (or the reduced Internal Revenue Code Section 415(b) limit applicable at the annuity starting date which is the lesser of when adjusted in accordance with the following assumptions):
(i) the annual amount of the straight life annuity if any payable to the member under the plan commencing at the same annuity starting date as the form of benefit payable to the member; or
(ii) the annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the form of benefit payable to the member, computed using (aa) a five percent interest assumption or the applicable statutory interest assumption and (bb) the applicable mortality table described in Treasury Regulation Section 1.417(e)-1(d)(2) which is the mortality table specified in Revenue Ruling 98-1 for years prior to 2003 or, for subsequent years, in Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Ruling 2001-62; or
(b) for a benefit paid in a form to which Internal Revenue Code Section 417(e)(3) applies, the actuarially equivalent straight life annuity benefit which is the greatest of (or the reduced Internal Revenue Code Section 415(b) limit applicable at the annuity starting date which is the least of when adjusted in accordance with the following assumptions):
(i) the annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as
(ii) the annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable, computed using (aa) a five and one-half percent interest assumption or the applicable statutory interest assumption and (bb) the applicable mortality table for the distribution under Treasury Regulation Section 1.417(e)-1(d)(2) which is the mortality table specified in Revenue Ruling 98-1 for years prior to 2003 or, for subsequent years, in Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Ruling 2001-62; or
(iii) the annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable, computed using (aa) the applicable interest rate for the distribution under Treasury Regulation Section 1.417(e)-1(d)(3) which, prior to July 1, 2007, is the thirty-year treasury rate in effect for the month prior to retirement, and on and after July 1, 2007, is the thirty-year treasury rate effect for the first day of the plan year with a one-year stabilization period, and (bb) the applicable mortality table for the distribution under Treasury Regulation Section 1.417(e)-1(d)(2) which is the mortality table specified in Revenue Ruling 98-1 for years prior to 2003 or, for subsequent years, in Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Ruling 2001-62, divided by 1.05; and
(5) the member's annual benefit will be adjusted as provided by Internal Revenue Code Section 415(b)(2)(B) and related treasury regulations by taking into consideration after-tax contributions and rollover and transfer contributions made by the member.
(D) Notwithstanding any other provision of law to the contrary, the system may modify a request by a member to make a contribution to the system if the amount of the contribution would exceed the limits provided in Internal Revenue Code Section 415 by using the following methods:
(1) if the law requires a lump sum payment for the purchase of service credit, the board may establish a periodic payment plan for the member to avoid a contribution in excess of the limits under Internal Revenue Code Section 415(c) or 415(n);
(2) if payment pursuant to item (1) shall not avoid a contribution in excess of the limits imposed by Internal Revenue Code Section 415(c), the system may either reduce the member's contribution to an amount within the limits of that section or refuse the member's contribution;
(3) effective for permissive service credit contributions made in years beginning after December 31, 1997, if a member makes one or more contributions to purchase permissive service credit under the system, then the requirements of this section will be treated as met only if:
(a) the requirements of Internal Revenue Code Section 415(b) are met, determined by treating the accrued benefit derived from all such contributions as an annual benefit for purposes of Internal Revenue Code Section 415(b); or
(b) the requirements of Internal Revenue Code Section 415(c) are met, determined by treating all such contributions as annual additions for purposes of Internal Revenue Code Section 415(c).
For purposes of applying subitem (a) the system shall not fail to meet the reduced limit under Internal Revenue Code Section 415(b)(2)(C) solely by reason of this subsection (D), and for purposes of applying subitem (b) the system shall not fail to meet the percentage limitation under Internal Revenue Code Section 415(c)(1)(B) solely by reason of this subsection (D);
(4) for purposes of subsection (D) the term 'permissive service credit' means service credit:
(a) recognized by the system for purposes of calculating a member's benefit under the system;
(b) which such member has not received under the system; and
(c) which such member may receive only by making a voluntary additional contribution, in an amount determined under the system, which does not exceed the amount necessary to fund the benefit attributable to such service credit.
Effective for permissive service credit contributions made in years beginning after December 31, 1997, such term may include service credit for periods for which there is no performance of service, and, notwithstanding subitem (b), may include service credited in order to provide an increased benefit for service credit which a member is receiving under the system;
(5) the system will fail to meet the requirements of this subsection (D) if:
(a) more than five years of nonqualified service credit are taken into account for purposes of this subsection (D); or
(b) any nonqualified service credit is taken into account under this subsection (D) before the member has at least five years of participation under the system;
(6) for purposes of item (5), effective for permissive service credit contributions made in years beginning after December 31, 1997, the term 'nonqualified service credit' means permissive service credit other than that allowed with respect to:
(a) service, including parental, medical, sabbatical, and similar leave, as an employee of the government of the United States, any state or political subdivision thereof, or any agency or instrumentality of any of the foregoing other than military service or service for credit which was obtained as a result of a repayment described in Internal Revenue Code Section 415(k)(3);
(b) service, including parental, medical, sabbatical, and similar leave, as an employee, other than as an employee described in subitem (a), of an education organization described in Internal Revenue Code Section 170(b)(1)(A)(ii) which is a public, private, or sectarian school which provides elementary or secondary education through grade twelve, or a comparable level of education, as determined under the applicable law of the jurisdiction in which the service was performed; provided, however, that in the case of a private or sectarian school, only teaching service will not be treated as nonqualified service;
(c) service as an employee of an association of employees who are described in subitem (a); or
(d) military service, other than qualified military service under Internal Revenue Code Section 414(u), recognized by such governmental plan.
In the case of service described in subitem (a), (b), or (c), such service will be nonqualified service if recognition of such service would cause a member to receive a retirement benefit for the same service under more than one plan;
(7) in the case of a trustee-to-trustee transfer after December 31, 2001, to which Internal Revenue Code Section 403(b)(13)(A) or 457(e)(17)(A) applies, without regard to whether the transfer is made between plans maintained by the same employer:
(a) the limitations of item (5) shall not apply in determining whether the transfer is for the purchase of permissive service credit; and
(b) the distribution rules applicable under federal law to the system will apply to such amounts and any benefits attributable to such amounts;
(8) for an eligible member, the limitation of Internal Revenue Code Section 415(c)(1) shall not be applied to reduce the amount of permissive service credit which may be purchased to an amount less than the amount which was allowed to be purchased under the terms of the South Carolina Police Officers' Retirement System as in effect on August 5, 1997. For purposes of this item (8), an eligible member is an individual who first became a member in the system before July 1, 1998."
SECTION 27. Section 9-16-20 of the 1976 Code, as last amended by Act 153 of 2005, is further amended by adding:
"(C) The board shall hold the assets of the retirement systems in a group trust under Section 401(a)(24) of the Internal Revenue Code that meets the requirements of Revenue Ruling 81-100, 1981-1 C.B. 326, as amended by Revenue Ruling 2004-67. Any group trust shall be operated or maintained exclusively for the commingling and collective investment of funds from other trusts that it holds. The board shall be permitted to hold in this group trust funds that consist exclusively of trust assets held under plans qualified under Internal Revenue Code Section 401(a), individual retirement accounts that are exempt under Internal Revenue Code Section 408(e), and eligible governmental plans that meet the requirements of Internal Revenue Code Section 457(b). For this purpose, a trust includes a custodial account under Internal Revenue Code Section 401(f) or under Internal Revenue Code Section 457(g)(3)."
SECTION 28. Title 9 of the 1976 Code is amended by adding:
Qualified Excess Benefit Arrangements
Section 9-12-10. Definitions.
As used in this chapter, unless a different meaning is plainly required by the context:
(1) 'Board' means the State Budget and Control Board acting as trustee of the retirement systems and acting through its Division of Retirement Systems.
(2) 'Internal Revenue Code' means the Internal Revenue Code of 1986, as amended from time to time.
(3) 'QEBA' means a Qualified Excess Benefit Arrangements under Section 415(m) of the Internal Revenue Code.
(4) 'Retirement system' means the South Carolina Retirement System, Retirement System for Judges and Solicitors, and Police Officers Retirement System established pursuant to Chapters 1, 8, and 11 of this title.
Section 9-12-20. Qualified Excess Benefits Arrangements created.
Each retirement systems may establish and maintain a QEBA. The amount of any annual benefit that would be payable pursuant to this chapter but for the limitation imposed by Section 415 of the Internal Revenue Code shall be paid from a QEBA established and maintained pursuant to this chapter. A QEBA established under this chapter shall be maintained through a separate unfunded QEBA. This arrangement is established for the sole purpose of enabling the retirement systems to continue to apply the same formulas for determining benefits payable to all employees covered by the retirement systems created under Chapters 1, 8, 9, and 11 of this title, including those whose benefits are limited by Section 415 of the Internal Revenue Code.
Section 9-12-30. Administration of QEBAs.
The board shall administer the QEBAs. The board has full discretionary authority to determine all questions arising in connection with the QEBAs, including its interpretation and any factual questions arising under the QEBAs. Further, the board has full authority to make modifications to the benefits payable under the QEBAs as may be necessary to maintain the QEBAs' qualification under Section 415(m) of the Internal Revenue Code.
Section 9-12-40. Eligibility for participation in a QEBA.
All members, retired members, and beneficiaries of the retirement systems are eligible to participate in a QEBA if their benefits would exceed the limitation imposed by Section 415 of the Internal Revenue Code. Participation is determined for each calendar year, and participation shall cease for any calendar year in which the benefit of a member, retired member or beneficiary is not limited by Section 415 of the Internal Revenue Code.
Section 9-12-50. QEBA supplemental retirement allowance.
On and after the effective date of the QEBA, the board shall pay to each eligible retiree and beneficiary a supplemental retirement allowance equal to the difference between the retiree's or beneficiary's monthly benefit otherwise payable from the applicable retirement system prior to any reduction or limitation because of Section 415 of the Internal Revenue Code and the actual monthly benefit payable from the retirement system as limited by Section 415. The board shall compute and pay the supplemental retirement allowance in the same
Section 9-12-60. Amount of contributions to the QEBA.
The board shall determine the amount of benefits that cannot be provided under the retirement systems because of the limitations of Section 415 of the Internal Revenue Code, and the amount of contributions that must be made to the QEBAs as separate funds within the retirement systems. The board shall engage such actuarial services as shall be required to make these determinations. If applicable, fees for the actuary's service shall be paid by the applicable employers.
Section 9-12-70. Employer contributions and separate fund.
Contributions shall not be accumulated under a QEBA to pay future supplemental retirement allowances. Instead, each payment of contributions by the applicable employer that would otherwise be made to a retirement system shall be reduced by the amount necessary to pay the required supplemental retirement allowances, and these contributions will be deposited in a separate fund that is a portion of the retirement system. This separate fund is intended to be exempt from federal income tax under Sections 115 and 415(m) of the Internal Revenue Code. The board shall pay the required supplemental retirement allowances to the member, retired member or beneficiary out of the employer contributions so transferred. The employer contributions otherwise required under the terms of a retirement system shall be divided into those contributions required to pay supplemental retirement allowances hereunder, and those contributions paid into and accumulated in the retirement system funds created under Chapter 16 of this title to pay the maximum benefits permitted. Employer contributions made to a separate fund to provide supplemental retirement allowances shall not be commingled with the contributions paid into and accumulated in the retirement system funds created under Chapter 16. The supplemental retirement allowance benefit liability shall be funded on a calendar year to calendar year basis. Any assets of a separate QEBA fund not used for paying benefits for a current calendar year shall be used, as determined by the board, for the payment of administrative expenses of the QEBA for the calendar year.
Section 9-12-80. No ability to defer.
A member, retired member, or beneficiary cannot elect to defer the receipt of all or any part of the payments due under a QEBA.
Section 9-12-90. No assignment.
Payments under a QEBA are exempt from garnishment, assignment, alienation, judgments, and other legal processes to the same extent as a retirement allowance under a retirement system.
Section 9-12-100. QEBA funds unsecured.
Nothing in this chapter shall be construed as providing for assets to be held in trust or escrow or any form of asset segregation for members, retired members, or beneficiaries. To the extent any person acquires the right to receive benefits under a QEBA, the right shall be no greater than the right of any unsecured general creditor of the State of South Carolina.
Section 9-12-110. QEBA is a governmental plan.
A QEBA is a portion of a governmental plan as defined in Section 414(d) of the Internal Revenue Code, is intended to meet the requirements of Internal Revenue Code Sections 115 and 415(m), and shall be so interpreted and administered.
Section 9-12-120. No deduction for employer contributions.
Amounts deducted from employer contributions and deposited in a separate QEBA fund shall not increase the amount of employer contributions required under Chapters 1, 8, 9, and 11 of this title."
SECTION 29. Article 3, Chapter 1 of Title 9 of the 1976 Code is amended by adding:
"Section 9-1-320. Confidentiality of member records.
All records of all active, retired, and inactive members maintained by the South Carolina Retirement System are classified as confidential records. These records are exempt from the disclosure requirements of Chapter 4 of Title 30 and shall not be disclosed to third parties, except where authorized by the member or where requested by state and federal authorities, and then only at the sole discretion of the director of the South Carolina Retirement Systems."
SECTION 30. Section 9-1-10(11) of the 1976 Code, as last amended by Act 387 of 2000, is further amended to read:
"(11) 'Employee' means:
(a) to the extent compensated by this State, an employee, agent, or officer of the State or any of its departments, bureaus, and institutions, other than the public schools, whether the employee is elected, appointed, or employed;
(b) the president, a dean, professor, or teacher or any other person employed in any college, university, or educational institution of higher learning supported by and under the control of the State;
(c) an employee, agent, or officer of a county, municipality, or school district, or an agency or department of any of these, which has
(d) an employee of the extension service and any other employee a part of whose salary or wage is paid by the federal government if the federal funds from which the salary or wage is paid before disbursement become state funds;
(e) an employee of a service organization, the membership of which is composed solely of persons eligible to be teachers or employees as defined by this section, if the compensation received by the employees of the service organizations is provided from monies paid by the members as dues or otherwise or from funds derived from public sources and if the employee contributions prescribed by this title are paid from the funds of the service organization;
(f) an employee of an alcohol and drug abuse planning agency authorized to receive funds pursuant to Section 61-12-20.;
(g) an employee of a local council on aging or other governmental agency providing aging services funded by the Office on Aging, Department of Health and Human Services.
'Employee' does not include supreme and circuit court judges, any person whose services are remunerated solely by per diem payments, or any person employed by a school, college, or university at which the person is enrolled as a student or otherwise regularly attending classes for academic credit unless the person is employed as a school bus driver and is paid by the same school district in which the person is enrolled in school. In determining student status, the system may consider the guidelines of the Social Security Administration regarding student services and other criteria the system uniformly prescribes."
SECTION 31. Section 9-1-1140 of the 1976 Code, as last amended by Act 77 of 2003, is further amended by adding a new subsection to read:
"( ) An employee drawing workers' compensation who is on a leave of absence for a limited period may voluntarily contribute on his contractual salary, to be matched by the employer."
SECTION 32. Section 9-1-1620 of the 1976 Code, as last amended by Act 387 of 2000, is further amended by adding a new subsection to read:
"( ) Except as provided in this section, a retired member may not change the form of his monthly payment after the first payment of a retirement allowance is due."
SECTION 33. Article 9, Chapter 1, Title 9 of the 1976 Code is amended by adding:
"Section 9-1-1135. Interest on member accounts.
Interest shall be credited to the account of each member once each year as of June thirtieth, on the basis of the balance in the account of each member as of the previous June thirtieth. Upon the death, retirement, or termination of a member, interest shall be figured to the end of the month immediately preceding the date of refund or retirement, interest being based on the balance in such member's account as of the June thirtieth immediately preceding the date of refund or retirement."
SECTION 34. Article 13, Chapter 1, Title 9 of the 1976 Code is amended by adding:
"Section 9-1-1775. Group Life Insurance Plan.
(A) The Group Life Insurance Plan for members of the South Carolina Retirement System, hereinafter referred to as the 'plan', is hereby established and created, for the purpose of providing group life insurance for the payment of the benefits provided by Section 9-1-1770 of the laws governing said system.
(B) A separate fund, to be known as the Group Life Insurance Plan Reserve Fund, is hereby established within the South Carolina Retirement System, hereinafter referred to as the 'retirement system', to be held in trust by the board. The fund shall consist of all premiums paid by the employers and other monies received and paid into the fund for group term life insurance purposes, and of the investment earnings upon such monies, and shall be used only to pay the group term life insurance prescribed by subsection (C). Concurrent with the determination of the initial liability of the plan for the balance of the fiscal year on and after the effective date of insurance, for the group term life insurance provided and to be paid for pursuant to this plan, there shall be segregated and transferred from the Employer Annuity Accumulation Fund of the retirement system to the reserve fund created by this section such amounts as shall be determined by the actuary to be necessary to pay anticipated group term life insurance claims. Subsequent segregations and transfers shall be made as shall be required to pay the insurance prescribed by subsection (C) from the reserve fund provided by this section.
(C) In the event of the death of a member who has met the eligibility requirements set forth in Section 9-1-1770 on or after the effective date of insurance, an amount of insurance equal to the death benefit provided by Section 9-1-1770 shall be paid to the person
(D) The actuary shall investigate the claim experience of the plan as provided by Section 9-1-250. On the basis of such investigations and upon the recommendation of the actuary, as provided in Section 9-1-1210, the board shall certify the premium rates computed to be necessary to fund the group term life insurance authorized to be paid by the plan. As soon as practicable after the close of each fiscal year, the board shall determine the premium which the employers participating in the plan are required to pay into the reserve fund to discharge the obligations of the plan for the past fiscal year.
(E) Each qualified member of the retirement system is to be insured as provided herein effective commencing as of June 19, 1973."
SECTION 35. Chapter 8, Title 9 of the 1976 Code is amended by adding:
"Section 9-8-35. Confidentiality of member records.
All records of all active, retired, and inactive members maintained by the Retirement System for Judges and Solicitors are classified as confidential records. These records are exempt from the disclosure requirements of Chapter 4 of Title 30 and shall not be disclosed to third parties, except where authorized by the member or where requested by state and federal authorities, and then only at the sole discretion of the director of the South Carolina Retirement Systems."
SECTION 36. Section 9-8-70 of the 1976 Code, as last amended by Act 336 of 1992, is further amended by adding a new paragraph at the end to read:
"Except as provided in this section, a retired member may not change the form of his monthly payment after the first payment of a retirement allowance is due."
SECTION 37. Chapter 8, Title 9 of the 1976 Code is amended by adding:
"Section 9-8-185. Interest on member accounts.
Interest shall be credited to the account of each member once each year as of June thirtieth, on the basis of the balance in the account of each member as of the previous June thirtieth. Upon the death, retirement, or termination of a member, interest shall be figured to the end of the month immediately preceding the date of refund or retirement, interest being based on the balance in such member's account as of the June thirtieth immediately preceding the date of refund or retirement."
SECTION 38. Article 1, Chapter 11, Title 9 of the 1976 Code is amended by adding:
"Section 9-11-35. Confidentiality of member records.
All records of all active, retired, and inactive members maintained by the South Carolina Police Officers' Retirement System are classified as confidential records. These records are exempt from the disclosure requirements of Chapter 4 of Title 30 and shall not be disclosed to third parties, except where authorized by the member or where requested by state and federal authorities, and then only at the sole discretion of the director of the South Carolina Retirement Systems."
SECTION 39. Section 9-11-50 of the 1976 Code, as last amended by Act 77 of 2003, is further amended by adding a new subsection to read:
"( ) An employee drawing workers' compensation who is on a leave of absence for a limited period may voluntarily contribute on his contractual salary, to be matched by the employer."
SECTION 40. Section 9-11-150 of the 1976 Code, as last amended by Act 387 of 2000, is further amended by adding a new subsection to read:
"( ) Except as provided in this section, a retired member may not change the form of his monthly payment after the first payment of a retirement allowance is due."
SECTION 41. Article 1, Chapter 11, Title 9 of the 1976 Code is amended by adding:
"Section 9-11-265. Interest on member accounts.
Interest shall be credited to the account of each member once each year as of June thirtieth, on the basis of the balance in the account of each member as of the previous June thirtieth. Upon the death, retirement, or termination of a member, interest shall be figured to the end of the month immediately preceding the date of refund or retirement, interest being based on the balance in such member's account as of the June thirtieth immediately preceding the date of refund or retirement."
SECTION 42. Article 1, Chapter 11, Title 9 of the 1976 Code is amended by adding:
"Section 9-11-125. Group Life Insurance Plan.
(A) The Group Life Insurance Plan for members of the South Carolina Police Officers' Retirement System, hereinafter referred to as the 'plan', is hereby established and created, for the purpose of providing group life insurance for the payment of the benefits provided by Section 9-11-120 of the laws governing said system.
(B) A separate fund, to be known as the Group Life Insurance Plan Reserve Fund, is hereby established within the South Carolina Police Officers' Retirement System, hereinafter referred to as the 'retirement system', to be held in trust by the board. The fund shall consist of all premiums paid by the employers and other monies received and paid into the fund for group term life insurance purposes, and of the investment earnings upon such monies, and shall be used only to pay the group term life insurance prescribed by subsection (C). Concurrent with the determination of the initial liability of the plan for the balance of the fiscal year on and after the effective date of insurance, for the group term life insurance provided and to be paid for pursuant to this plan, there shall be segregated and transferred from the Employer Annuity Accumulation Fund of the retirement system to the reserve fund created by this section such amounts as shall be determined by the actuary to be necessary to pay anticipated group term life insurance claims. Subsequent segregations and transfers shall be made as shall be required to pay the insurance prescribed by subsection (C) from the reserve fund provided by this section.
(C) In the event of the death of a member who has met the eligibility requirements set forth in Section 9-11-120 on or after the effective date of insurance, an amount of insurance equal to the death benefit provided by Section 9-11-120 shall be paid to the person nominated by the member in accordance with the provisions of Section 9-11-120 or to the member's estate.
(D) The actuary shall investigate the claim experience of the plan as provided by Section 9-11-30. On the basis of such investigations and upon the recommendation of the actuary, as provided in Section 9-11-120, the board shall certify the premium rates computed to be necessary to fund the group term life insurance authorized to be paid by the plan. As soon as practicable after the close of each fiscal year, the board shall determine the premium which the employers participating in the plan are required to pay into the reserve fund to discharge the obligations of the plan for the past fiscal year.
(E) Each qualified member of the retirement system is to be insured as provided herein effective commencing as of June 19, 1973."
SECTION 43. Section 9-9-70 of the 1976 Code, as last amended by Act 458 of 1996, is further amended to read:
"Section 9-9-70. (A) Until the first payment on account of a retirement allowance becomes normally due, any member or beneficiary may elect, by filing with the system, to convert the retirement allowance otherwise payable on his account after retirement
Option 1. A reduced retirement allowance payable during the retired member's life, with the provision that it continues after his death to and for the life of the beneficiary, or the trustee of the beneficiary nominated by him by written designation duly acknowledged and filed with the board at the time of retirement if the person survives him. Any retirement allowance payable under this option, except an allowance for disability retirement pursuant to Section 9-9-65, shall be subject to the incidental death benefit limitation upon the payment of survivorship benefits to a nonspouse beneficiary under Section 401(a)(9)(G) of the Internal Revenue Code and Treasury Regulation Section 1.401(a)(9)(9)-6, Q&A-2;
Option 2. A reduced retirement allowance payable during the retired member's life, with the provision that it continues after his death at one-half the rate paid to him to and for the life of the beneficiary or the trustee of the beneficiary nominated by him by written designation duly acknowledged and filed with the board at the time of retirement, if the person survives him;
Option 3. A member may elect either Option 1 or 2 with the added provision that, if the designated beneficiary predeceases the member, the retirement allowance payable to the member after the designated beneficiary's death must be equal to the retirement allowance which would have been payable had the member not elected the option;
Option 4. A member may elect Option 1 or 2 with the added provision that the reduced retirement allowance after his death is payable in equal shares to and for the life of each of two or more beneficiaries, or to the trustee or trustees of the beneficiaries, for so long as each beneficiary survives him. The benefit reduction factor must be based on the average age of the beneficiaries.
(B) A member having elected Option 1, 2, or 3 and nominated his spouse to receive a retirement allowance upon the member's death may revoke the prior nomination and elect a new option only after the death of his spouse, a divorce, or other change in the member's marital status. This change may be accomplished only by filing with the system:
(a)(1) the form prescribed by the system, appropriately completed, signed by the member and notarized, that simultaneously both revokes the prior nomination and elects a new option and contains such other information as the system requires,; or
(b)(2) a writing signed by the member and notarized that makes the same revocation and election and contains the identical information required by the prescribed form. The revocation and election of a new option is effective on the first day of the month in which the new option is elected. The retirement allowance payable following the election of a new option allowed by this paragraph must be computed upon the actuarial equivalent of the retirement allowance in effect immediately before the effective date of the new option. The revocation of the prior nomination and the election of a new option after the death of the member's spouse must be made before the first anniversary of the death of the spouse.
(C) A member may, upon occurrence of a change in his marital status after the date of retirement, revoke the form of payment elected and elect a new option effective on the first day of the month in which the new option is elected, providing for a retirement allowance computed to be the actuarial equivalent of the retirement allowance in effect immediately prior to the effective date of the new option.
(D) The board may approve a five-year pay-out plan developed by the actuary on the basis of the total retirement allowance for surviving beneficiaries, other than a spouse."
SECTION 44. Section 9-9-120(6) of the 1976 Code is amended to read:
"(6) Each department and political subdivision shall pickup the employee contributions required by this section for all compensation paid on or after July 1, 1982, and the contributions so picked up shall be treated as employer contributions in determining federal tax treatment under the United States Internal Revenue Code; however, each department and political subdivision shall continue to withhold federal income taxes based upon these contributions until the Internal Revenue Service, or the federal courts, rule that, pursuant to Section 414(h) of the United States Internal Revenue Code, these contributions shall not be included as gross income of the employee until such time as they are distributed or made available. For this purpose, each department and political subdivision is deemed to have taken formal action on or before January 1, 2009, to provide that the contributions on behalf of its employees, although designated as employer contributions, shall be paid by the employer in lieu of employee contributions. The department and political subdivision shall pay these employee contributions from the same source of funds which is used in paying earnings to the employee. The department and political subdivision may pickup these contributions by a reduction in the cash salary of the
SECTION 45. Section 9-9-180 of the 1976 Code, as last amended by Act 16 of 2001, is further amended to read:
"Section 9-9-180. Except as provided in Section 9-18-10, and related sections, Section 20-7-1315 and Section 8-1-115 and subject to the doctrine of constructive trust ex maleficio, and subject to income tax levies imposed pursuant to state or federal law and distributions made pursuant to the federal Pension Protection Act of 2006, the right of a person to a retirement allowance or to the return of contributions, a retirement allowance itself, any optional allowance or payment on death or any other right accrued or accruing to any person under the provisions of this chapter, and the monies of the system are exempted from any state or municipal tax, except the taxes imposed pursuant to Chapters 6 and 16 of Title 12, and exempted from levy and sale, garnishment, attachment, or any other process and are unassignable except as specifically otherwise provided in this chapter. This section does not apply to any authorized deduction from a retirement allowance."
SECTION 46. Section 9-9-240 of the 1976 Code, as added by Act 48 of 1995, is amended to read:
"Section 9-9-240. Effective as of January 1, 1996, the annual compensation of a member taken into account for determining all benefits provided under this retirement system is subject to the limitations set forth in Section 401(a)(17) of the Internal Revenue Code of 1986 and any regulations promulgated thereunder, as adjusted for any cost-of-living increases in accordance with Section 401(a)(17)(B) of the Internal Revenue Code. Annual compensation means compensation during the plan year or such other consecutive twelve-month period over which compensation is otherwise determined under the retirement system, hereinafter referred to as the determination period. The cost-of-living adjustment in effect for a calendar year applies to annual compensation for the determination period that begins with or within such calendar year. However, the limitation on compensation does not apply to the compensation of an individual who became a member of this retirement system before January 1, 1996."
SECTION 47. Chapter 9, Title 9 of the 1976 Code is amended by adding:
"Section 9-9-245. Compliance with USERRA.
Effective December 12, 1994, and notwithstanding any provision in this chapter to the contrary, contributions, benefits, and service credit with respect to qualified military service will be provided in accordance with Section 414(u) of the Internal Revenue Code."
SECTION 48. Chapter 9, Title 9 of the 1976 Code is amended by adding:
"Section 9-9-250. Compliance with Internal Revenue Code Section 401(a)(31).
(A) This section applies to distributions made on or after January 1, 1993. Notwithstanding any contrary provision or retirement law that would otherwise limit a distributee's election under this chapter, a distributee may elect, at the time and in the manner prescribed by the board, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
(B) Effective January 1, 2007, and notwithstanding anything in this chapter to the contrary that otherwise would limit a distributee's election under this section, and to the extent allowed under the applicable provisions of the Internal Revenue Code and the Treasury Regulations, a distributee who is a designated beneficiary, but not a surviving spouse, spouse or former spouse alternate payee may elect, at the time and in the manner prescribed by the board, to have all or part of his benefit that qualifies as an eligible rollover distribution paid in a direct trustee-to-trustee transfer to an eligible retirement plan that is an individual retirement plan described in clause (i) or (ii) of Internal Revenue Code Section 402(c)(8)(B). If such a transfer is made:
(1) the transfer shall be treated as an eligible rollover distribution;
(2) the individual retirement plan shall be treated as an inherited individual retirement account or individual retirement annuity within the meaning of Internal Revenue Code Section 408(d)(3)(C); and
(3) Internal Revenue Code Section 401(a)(9)(B) other than clause (iv) thereof shall apply to such individual retirement plan.
(C) A 'designated beneficiary' is an individual who is designated as a beneficiary under this chapter and is the designated beneficiary under Internal Revenue Code Section 401(a)(9) and Section 1.401(a)(9)-1, Q&A-4 of the Treasury Regulations. An estate or revocable trust is not
(D) An 'eligible rollover distribution' is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include:
(1) any distribution that is one of a series of substantially equal periodic payments made not less frequently than annually for the life or the life expectancy of the distributee or the joint lives or joint life expectancies of the distributee and the distributee's designated beneficiary, or for a specified period of ten years or more;
(2) any distribution to the extent such distribution is required under Internal Revenue Code Section 401(a)(9); and
(3) any hardship distribution.
Effective January 1, 2002, a portion of a distribution will not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions that are not includible in gross income. However, such portion may be transferred only to an individual retirement account or annuity described in Internal Revenue Code Section 408(a) or (b), or in a direct trustee-to-trustee rollover to a qualified trust under Internal Revenue Code Section 401(a) or 403(a) that is part of a defined contribution or defined benefit plan, or to an annuity contract described in Internal Revenue Code Section 403(b), so long as such trust or annuity contract separately accounts for amounts so transferred, including separate accounting for the portion of such distribution that is includible in gross income and the portion of such distribution that is not includible. Effective January 1, 2008, an eligible rollover distribution also shall mean a qualified rollover contribution to a Roth IRA within the meaning of Internal Revenue Code Section 408A.
(E) Effective January 1, 2002, unless otherwise stated an 'eligible retirement plan' is:
(1) a plan eligible under Internal Revenue Code Section 457(b) that is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state that agrees to separately account for amounts transferred into the plan from the system;
(2) an individual retirement account described in Internal Revenue Code Section 408(a);
(3) an individual retirement annuity described in Internal Revenue Code Section 408(b);
(4) an annuity plan described in Internal Revenue Code Section 403(a);
(5) an annuity contract described in Internal Revenue Code Section 403(b);
(6) a qualified trust described in Internal Revenue Code Section 401(a) that accepts the distributee's eligible rollover distribution; or
(7) effective January 1, 2008, a Roth IRA described in Internal Revenue Code Section 408A.
(F) Effective January 1, 2002, the definition of eligible rollover distribution also includes a distribution to a surviving spouse, or to a spouse or former spouse who is an alternate payee under a domestic relations order, as defined in Internal Revenue Code Section 414(p).
(G) A 'distributee' includes an employee or former employee. It also includes the employee's or former employee's surviving spouse and the employee's or former employee's spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Internal Revenue Code Section 414(p). Effective January 1, 2007, it further includes a nonspouse beneficiary who is a designated beneficiary as defined by Internal Revenue Code Section 401(a)(9)(E). However, a nonspouse beneficiary may rollover the distribution only to an individual retirement account or individual retirement annuity established for the purpose of receiving the distribution and the account or annuity will be treated as an 'inherited' individual retirement account or annuity.
(H) A 'direct rollover' is a payment by the system to the eligible retirement plan specified by the distributee."
SECTION 49. Chapter 9, Title 9 of the 1976 Code is amended by adding:
"Section 9-9-255. Compliance with Internal Revenue Code Section 401(a)(9).
(A) Effective as of January 1, 1989, the system shall pay all benefits in accordance with the requirements of Section 401(a)(9) of the Internal Revenue Code, including the incidental death benefit requirement in Internal Revenue Code Section 401(a)(9)(G), and the applicable Treasury Regulations and Internal Revenue Service Rulings and other interpretations issued thereunder, including Treasury Regulations Sections 1.401(a)(9)-2 through 1.401(a)(9)-9. The provisions of this section shall override any distribution options that are inconsistent with Internal Revenue Code Section 401(a)(9) to the extent that those distribution options are not grandfathered under Treasury Regulation Section 1.401(a)(9)-6, Q&A-16.
(B) Each member's entire benefit shall be distributed to the member, beginning no later than the required beginning date, over the member's lifetime or the joint lives of the member and a designated beneficiary, or over a period not extending beyond the member's life expectancy or the joint life expectancies of the member and a designated beneficiary. If a member fails to apply for retirement benefits by his required beginning date, the board shall begin distributing the benefit as required by this chapter.
(1) For purposes of this section, the 'required beginning date' is April first of the calendar year after the later of the following:
(a) the calendar year in which the member reaches age seventy and one-half years of age; or
(b) the calendar year in which the member retires.
(2) For purposes of this section, a 'designated beneficiary' means any individual designated as a co-beneficiary by the member under this chapter. If the member designates a trust as a co-beneficiary, the individual beneficiaries of the trust shall be treated as designated beneficiaries if the trust satisfies the requirement set forth in Treasury Regulation Section 1.401(a)(9)-3.
(3) Payment of retirement benefits, for those members who are eligible to receive retirement benefits and who have not applied for such pursuant to the provisions of this chapter, and who continue membership after attaining seventy and one-half years of age, shall commence on the effective date of retirement.
(C) If a retired member dies after benefits payments have begun or are required to begin under subsection (B) of this section, any survivor benefits shall be distributed at least as rapidly as under the distribution method being used at the member's death.
(D) If an active or inactive member dies before benefit payments have begun or are required to begin under subsection (B) of this section, any death benefits shall be distributed by December thirty-first of the calendar year that contains the fifth anniversary of the member's death. However, the five-year rule shall not apply to any death benefit that is payable to a member's designated beneficiary, if:
(1) the benefit is distributed over the designated beneficiary's lifetime or over a period not extending beyond the designated beneficiary's life expectancy; and
(2) the distributions begin no later than December thirty-first of the calendar year that contains the first anniversary of the member's death."
SECTION 50. Chapter 9, Title 9 of the 1976 Code is amended by adding:
"Section 9-9-260. Compliance with Internal Revenue Code Section 415.
(A) Effective as of July 1, 1989, member contributions paid to, and retirement benefits paid from, the system may not exceed the annual limits on contributions and benefits, respectively, allowed by Internal Revenue Code Section 415. For purposes of applying these limits, the definition of compensation where applicable will be compensation as defined in Treasury Regulation Section 1.415(c)-2(d)(3), or successor regulation; provided, that the definition of compensation shall exclude member contributions picked up under Internal Revenue Code Section 414(h)(2), and for plan years beginning after December 31, 1997, compensation shall include the amount of any elective deferrals, as defined in Internal Revenue Code Section 402(g)(3), and any amount contributed or deferred by the employer at the election of the member and which is not includible in the gross income of the member by reason of Internal Revenue Code Section 125 or 457, and, for plan years beginning on and after January 1, 2001, Internal Revenue Code Section 132(f)(4).
(B) Before January 1, 1995, a member may not receive an annual benefit that exceeds the limits specified in Internal Revenue Code Section 415(b), subject to the applicable adjustments in that section. On and after January 1, 1995, a member may not receive an annual benefit that exceeds the dollar amount specified in Internal Revenue Code Section 415(b)(1)(A), subject to the applicable adjustments in Internal Revenue Code Section 415(b).
(C) For purposes of applying the limits under Internal Revenue Code Section 415(b), hereinafter referred to as 'limit', the following will apply:
(1) prior to January 1, 2009, cost-of-living adjustments under this chapter, if any, will be taken into consideration when determining a member's applicable limit;
(2) on and after January 1, 2009, with respect to a member who does not receive a portion of the member's annual benefit in a lump sum:
(a) a member's applicable limit shall be applied to the member's annual benefit in the first limitation year without regard to any automatic cost-of-living increases under this chapter, if any;
(b) to the extent the member's annual benefit equals or exceeds the limit, the member is no longer eligible for cost-of-living
(c) thereafter, in any subsequent limitation year, the member's annual benefit including any automatic cost-of-living increase applicable under this chapter, if any, shall be tested under the then applicable benefit limit including any adjustment to the Internal Revenue Code Section 415(b)(1)(A) dollar limit under Internal Revenue Code Section 415(d) and the regulations thereunder;
(3) on and after January 1, 2009, with respect to a member who receives a portion of the member's annual benefit in a lump sum, a member's applicable limit shall be applied taking into consideration automatic cost-of-living increases under this chapter, if any, as required by Code Section 415(b) and applicable Treasury Regulations;
(4) on and after January 1, 1995, in no event shall a member's annual benefit payable under the system in any limitation year be greater than the limit applicable at the annuity starting date, as increased in subsequent years pursuant to Internal Revenue Code Section 415(d) and the regulations thereunder. If the form of benefit without regard to the automatic benefit increase feature is not a straight life or a qualified joint and survivor annuity, then the preceding sentence is applied by adjusting the form of benefit to an actuarially equivalent straight life annuity benefit that is determined using the following assumptions and that take into account the death benefits under the form of benefit:
(a) for a benefit paid in a form to which Internal Revenue Code Section 417(e)(3) does not apply, the actuarially equivalent straight life annuity benefit which is the greater of (or the reduced Internal Revenue Code Section 415(b) limit applicable at the annuity starting date which is the lesser of when adjusted in accordance with the following assumptions):
(i) the annual amount of the straight life annuity if any payable to the member under the plan commencing at the same annuity starting date as the form of benefit payable to the member; or
(ii) the annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the form of benefit payable to the member, computed using (aa) a five percent interest assumption or the applicable statutory interest assumption and (bb) the applicable mortality table described in Treasury Regulation Section 1.417(e)-1(d)(2) which is the mortality table specified in Revenue Ruling 98-1 for years prior to 2003 or, for subsequent years, in Revenue Ruling 2001-62 or any
(b) for a benefit paid in a form to which Internal Revenue Code Section 417(e)(3) applies, the actuarially equivalent straight life annuity benefit which is the greatest of (or the reduced Internal Revenue Code Section 415(b) limit applicable at the annuity starting date which is the least of when adjusted in accordance with the following assumptions):
(i) the annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable, computed using the interest rate and mortality table, or tabular factor, specified in the plan for actuarial experience;
(ii) the annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable, computed using (aa) a five and one-half percent interest assumption or the applicable statutory interest assumption and (bb) the applicable mortality table for the distribution under Treasury Regulation Section 1.417(e)-1(d)(2) which is the mortality table specified in Revenue Ruling 98-1 for years prior to 2003 or, for subsequent years, in Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Ruling 2001-62; or
(iii) the annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable, computed using (aa) the applicable interest rate for the distribution under Treasury Regulation Section 1.417(e)-1(d)(3) which, prior to July 1, 2007, is the thirty-year treasury rate in effect for the month prior to retirement, and, on and after July 1, 2007, is the thirty-year treasury rate in effect for the first day of the plan year with a one-year stabilization period and (bb) the applicable mortality table for the distribution under Treasury Regulation Section 1.417(e)-1(d)(2), which is the mortality table specified in Revenue Ruling 98-1 for years prior to 2003 or, for subsequent years, in Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Ruling 2001-62, divided by 1.05; and
(5) the member's annual benefit will be adjusted as provided by Internal Revenue Code Section 415(b)(2)(B) and related treasury regulations by taking into consideration after-tax contributions and rollover and transfer contributions made by the member.
(D) Notwithstanding any other provision of law to the contrary, the system may modify a request by a member to make a contribution to the system if the amount of the contribution would exceed the limits provided in Internal Revenue Code Section 415 by using the following methods:
(1) if the law requires a lump sum payment for the purchase of service credit, the board may establish a periodic payment plan for the member to avoid a contribution in excess of the limits under Internal Revenue Code Sections 415(c) or 415(n);
(2) if payment pursuant to subitem (1) will not avoid a contribution in excess of the limits imposed by Internal Revenue Code Section 415(c), the system may either reduce the member's contribution to an amount within the limits of that section or refuse the member's contribution;
(3) effective for permissive service credit contributions made in years beginning after December 31, 1997, if a member makes one or more contributions to purchase permissive service credit under the system, then the requirements of this section will be treated as met only if:
(a) the requirements of Internal Revenue Code Section 415(b) are met, determined by treating the accrued benefit derived from all such contributions as an annual benefit for purposes of Internal Revenue Code Section 415(b); or
(b) the requirements of Internal Revenue Code Section 415(c) are met, determined by treating all such contributions as annual additions for purposes of Internal Revenue Code Section 415(c).
For purposes of applying subitem (a) the system shall not fail to meet the reduced limit under Internal Revenue Code Section 415(b)(2)(C) solely by reason of this subsection (D), and for purposes of applying subitem (b) the system shall not fail to meet the percentage limitation under Internal Revenue Code Section 415(c)(1)(B) solely by reason of this subsection (D);
(4) for purposes of subsection (D) the term 'permissive service credit' means service credit:
(a) recognized by the system for purposes of calculating a member's benefit under the system;
(b) which such member has not received under the system; and
(c) which such member may receive only by making a voluntary additional contribution, in an amount determined under the system, which does not exceed the amount necessary to fund the benefit attributable to such service credit.
Effective for permissive service credit contributions made in years beginning after December 31, 1997, such term may include service credit for periods for which there is no performance of service, and, notwithstanding subitem (b), may include service credited in order to provide an increased benefit for service credit which a member is receiving under the system;
(5) the system shall fail to meet the requirements of this subsection (D) if:
(a) more than five years of nonqualified service credit are taken into account for purposes of this subsection (D); or
(b) any nonqualified service credit is taken into account under this subsection (D) before the member has at least five years of participation under the system;
(6) for purposes of item (5), effective for permissive service credit contributions made in years beginning after December 31, 1997, the term 'nonqualified service credit' means permissive service credit other than that allowed with respect to:
(a) service, including parental, medical, sabbatical, and similar leave, as an employee of the government of the United States, any state or political subdivision thereof, or any agency or instrumentality of any of the foregoing other than military service or service for credit which was obtained as a result of a repayment described in Internal Revenue Code Section 415(k)(3);
(b) service, including parental, medical, sabbatical, and similar leave, as an employee other than as an employee described in subitem (a) of an education organization described in Internal Revenue Code Section 170(b)(1)(A)(ii) which is a public, private, or sectarian school which provides elementary or secondary education through grade twelve, or a comparable level of education, as determined under the applicable law of the jurisdiction in which the service was performed; provided, however, that in the case of a private or sectarian school, only teaching service will not be treated as nonqualified service;
(c) service as an employee of an association of employees who are described in subitem (a); or
(d) military service, other than qualified military service under Internal Revenue Code Section 414(u), recognized by such governmental plan.
In the case of service described in subitem (a), (b), or (c), such service is nonqualified service if recognition of such service would cause a member to receive a retirement benefit for the same service under more than one plan;
(7) in the case of a trustee-to-trustee transfer after December 31, 2001, to which Internal Revenue Code Section 403(b)(13)(A) or 457(e)(17)(A) applies, without regard to whether the transfer is made between plans maintained by the same employer:
(a) the limitations of item (5) will not apply in determining whether the transfer is for the purchase of permissive service credit; and
(b) the distribution rules applicable under federal law to the system will apply to such amounts and any benefits attributable to such amounts;
(8) for an eligible member, the limitation of Internal Revenue Code Section 415(c)(1) shall not be applied to reduce the amount of permissive service credit which may be purchased to an amount less than the amount which was allowed to be purchased under the terms of the Retirement Systems for Members of the General Assembly as in effect on August 5, 1997. For purposes of this item (8), an eligible member is an individual who first became a member in the system before July 1, 1998."
SECTION 51. Chapter 9, Title 9 of the 1976 Code is amended by adding:
"Section 9-9-31. Confidentiality of member records.
All records of all active, retired, and inactive members maintained by the Retirement System for Members of the General Assembly are classified as confidential records. These records are exempt from the disclosure requirements of Chapter 4 of Title 30 and shall not be disclosed to third parties, except where authorized by the member or where requested by state and federal authorities, and then only at the sole discretion of the director of the South Carolina Retirement Systems."
SECTION 52. Section 9-9-70 of the 1976 Code, as last amended by Act 458 of 1996, is further amended by adding a new subsection to read:
"( ) Except as provided in this section, a retired member may not change the form of his monthly payment after the first payment of a retirement allowance is due."
SECTION 53. Chapter 9, Title 9 of the 1976 Code is amended by adding:
"Section 9-9-175. Interest on member accounts.
Interest shall be credited to the account of each member once each year as of June thirtieth, on the basis of the balance in the account of each member as of the previous June thirtieth. Upon the death,
SECTION 54. Upon the effective date of this act, Regulations 19-900 through 19-997 of the South Carolina Code of Regulations shall have no application whatsoever to the operation of Title 9 of the 1976 Code.
SECTION 55. The captions or catchlines after particular sections of the 1976 Code as contained in this act are for informational purposes only and are not considered part of the code sections themselves.
SECTION 56. If all or any portion of Sections 1 and 2 of this act, for any reason, is held to be unconstitutional, invalid, or unenforceable, either in whole or in part, or if any of the amendments made to Section 9-1-1810 of the 1976 Code by Act 153 of 2005, for any reason, are held to be unconstitutional, invalid or unenforceable, either in whole or in part, then effective at the time of that holding:
(1) Section 9-1-1810 of the 1976 Code is amended to the version of that section in effect before the enactment of Act 153 of 2005; and
(2) Section 9-11-310 of the 1976 Code is amended to the versions of Section 9-11-310 in effect before the enactment of this act.
SECTION 57. (A) Sections 1 and 2 of this act take effect when the State Budget and Control Board has:
(1) approved an assumed annual rate of return on the investments of the assets of the South Carolina Retirement System and the South Carolina Police Officers' Retirement System of at least eight percent; and
(2) determined that the increase in retirement benefits can be provided on a sound actuarial basis as required pursuant to Article X, Section 16 of the Constitution of this State.
(B) The provisions of Sections 1 and 2 of this act first apply to cost-of-living adjustments approved to be awarded on the July first immediately following the State Budget and Control Board's actions required for this act to be effective as provided in subsection (A) of this section.
(C) If for any reason, an assumed annual rate of return on the investments of the assets of the South Carolina Retirement System and the South Carolina Police Officers' Retirement System of less than eight percent is approved or otherwise takes effect, then effective at that time the provisions Section 56 of this act apply and Section
(D) Except as otherwise provided, the remainder of this act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.
Senator ALEXANDER explained the committee amendment.
The committee amendment was adopted.
Senator LEATHERMAN proposed the following amendment (4876R003.HKL), which was adopted:
Amend the bill, as and if amended, by adding an appropriately numbered SECTION to read:
/ SECTION ___. Section 12-6-40(A)(1)(a) of the 1976 Code is amended to read:
"(a) Except as otherwise provided, 'Internal Revenue Code' means the Internal Revenue Code of 1986, as amended through December 31, 2006 2007, and includes the effective date provisions contained in it."/
Renumber sections to conform.
Amend title to conform.
Senator LEATHERMAN explained the amendment.
The amendment was adopted.
There being no further amendments, the Bill was read the second time, passed and ordered to a third reading.
On motion of Senator LEATHERMAN, with unanimous consent, H. 4876 was ordered to receive a third reading on Friday, May 2, 2008.
S. 1183 (Word version) -- Senators Ritchie, Ford and Knotts: A CONCURRENT RESOLUTION TO FIX 12:00 NOON ON WEDNESDAY, MAY 21, 2008, AS THE TIME TO ELECT A SUCCESSOR TO A CERTAIN JUDGE OF THE COURT OF APPEALS, SEAT 3, TO FILL THE UNEXPIRED TERM WHICH EXPIRES JUNE 30, 2013; TO ELECT A SUCCESSOR TO A CERTAIN JUDGE OF THE COURT OF
The Senate proceeded to a consideration of the Concurrent Resolution, the question being the adoption of the Resolution.
Senator McCONNELL proposed the following amendment (JUD1183.004), which was adopted:
Amend the resolution, as and if amended, page 2, after line 4, by adding:
/ Be it further resolved that immediately following the election of all judicial candidates, the General Assembly shall elect successors to the Honorable John E. Howard, Public Service Commissioner for the First District, whose term expires June 30, 2008; the Honorable Randy Mitchell, Public Service Commissioner for the Third District, whose term expires June 30, 2008; the Honorable G. O'Neal Hamilton, Public Service Commissioner for the Fifth District, whose term expires June 30, 2008; and the Honorable C. Robert Moseley, Public Service Commissioner for the At-Large Seat, whose term expires June 30, 2008.
Be it further resolved that all nominations for successors to the Public Service Commission must be made by the Chairman of the State Regulation of Public Utilities Review Committee and that no further nominating or seconding speeches may be made by members of the General Assembly on behalf of any candidate.
Be it further resolved that immediately following the election of all successors to certain members of the boards of trustees of the College of Charleston, Coastal Carolina University, Francis Marion University, the Medical University of South Carolina, South Carolina State University, the University of South Carolina, and the Wil Lou Gray Opportunity School, the General Assembly shall elect three successors to members of the Employment Security Commission, whose terms expire June 30, 2008.
Be it further resolved that all nominations for successors to the Employment Security Commission must be made by the Chairman of the Senate Labor, Commerce and Industry Committee or his designee
Renumber sections to conform.
Amend title to conform.
Senator RITCHIE explained the amendment.
The amendment was adopted.
The Concurrent Resolution was adopted, as amended, and ordered sent to the House.
S. 1313 (Word version) -- Senators Knotts, Peeler, Williams, Elliott, Ford, Vaughn, Grooms, Malloy, Cromer, Bryant, Courson, Setzler, McConnell, Ceips, Ritchie, Cleary, Campsen, Short, McGill, Patterson, Reese, Ryberg, Fair, Thomas, Campbell, Anderson, Drummond, Pinckney, Jackson, Alexander, Leatherman, O'Dell, Lourie, Matthews, Martin, Rankin, Hayes and Verdin: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-43-223 SO AS TO PROVIDE THAT A PERSON WHO THROUGH A BOND FOR TITLE, LEASE-PURCHASE AGREEMENT, CONTRACT FOR SALE, OR OTHER TYPE OF CONTRACTUAL AGREEMENT OWNS AN EQUITABLE INTEREST IN A PARCEL OF REAL PROPERTY, THE LEGAL TITLE TO WHICH REMAINS IN THE SELLER, WHICH THAT PERSON MAINTAINS AS HIS LEGAL RESIDENCE QUALIFIES FOR A FOUR PERCENT ASSESSMENT RATIO THEREON IF HE MEETS ALL OTHER REQUIREMENTS PROVIDED BY LAW FOR SUCH CLASSIFICATION INCLUDING A REQUIREMENT IN THE CONTRACTUAL AGREEMENT THAT HE IS RESPONSIBLE FOR THE REAL PROPERTY TAXES ON THE PROPERTY.
On motion of Senator CAMPSEN, the Bill was carried over.
H. 4450 (Word version) -- Rep. Gullick: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 57-23-840 SO AS TO PROVIDE THAT THE DEPARTMENT OF TRANSPORTATION SHALL MAINTAIN ALL PROPERTY AND VEGETATION UNDER ITS CONTROL AT EXIT 90 ALONG
On motion of Senator HAYES, with unanimous consent, the Report of the Committee of Conference was taken up for immediate consideration.
Senator HAYES spoke on the report.
On motion of Senator HAYES, the Report of the Committee of Conference to H. 4450 was adopted as follows:
The COMMITTEE OF CONFERENCE, to whom was referred:
H. 4450 (Word version) -- Rep. Gullick: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 57-23-840 SO AS TO PROVIDE THAT THE DEPARTMENT OF TRANSPORTATION SHALL MAINTAIN ALL PROPERTY AND VEGETATION UNDER ITS CONTROL AT EXIT 90 ALONG INTERSTATE HIGHWAY 77 IN YORK COUNTY AND ALLOW PERSONS WHO OWN LAND ADJACENT TO THIS PROPERTY TO ASSIST THE DEPARTMENT IN MEETING THE REQUIREMENTS OF THIS SECTION
Beg leave to report that they have duly and carefully considered the same and recommend:
That the same do pass with the following amendment:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. Article 17, Chapter 23, Title 57 of the 1976 Code is amended by adding:
"Section 57-23-840. Notwithstanding the provisions contained in Section 57-23-800, or another provision of law, the Department of Transportation may maintain and mow beyond thirty feet from the pavement roadside vegetation adjacent to Interstate Highway 77 in York County between mile marker 89 and the North Carolina state line and may allow persons who own land adjacent to this property to assist the department in meeting the requirements of this section."
SECTION 2. Article 17, Chapter 23, Title 57 of the 1976 Code is amended by adding:
"Section 57-23-850. Notwithstanding the provisions of Section 57-23-800, or any other provision of law, the Department of Transportation may maintain and mow roadside vegetation beyond thirty feet from the pavement within the Greenville City limits at the following areas and interchanges:
(1) I-85 and I-385;
(2) I-385 and Roper Mountain Road;
(3) I-385 and Hayward Road;
(4) I-385 and Pleasantburg Drive/Highway 291;
(5) I-385 and Stone Avenue;
(6) I-85 and Woodruff Road/Highway 146;
(7) I-85 and Laurens/Highway 276; and
(8) I-85 and Mauldin Road."
SECTION 3. This act takes effect upon approval by the Governor./
Amend title to conform.
/s/Sen. Robert W. Hayes /s/Rep. Herb Kirsh /s/Sen. Linda H. Short /s/Rep. J. Gary Simrill /s/Sen. Michael L. Fair /s/Rep. Carl L. Gullick On Part of the Senate. On Part of the House.
, and a message was sent to the House accordingly.
Columbia, S.C., May 1, 2008
Mr. President and Senators:
The House respectfully informs your Honorable Body that it has adopted the report of the Committee of Conference on:
H. 4450 (Word version) -- Rep. Gullick: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 57-23-840 SO AS TO PROVIDE THAT THE DEPARTMENT OF TRANSPORTATION SHALL MAINTAIN ALL PROPERTY AND VEGETATION UNDER ITS CONTROL AT EXIT 90 ALONG INTERSTATE HIGHWAY 77 IN YORK COUNTY AND ALLOW PERSONS WHO OWN LAND ADJACENT TO THIS PROPERTY TO ASSIST THE DEPARTMENT IN MEETING THE REQUIREMENTS OF THIS SECTION.
Very respectfully,
Speaker of the House
Received as information.
S. 1066 (Word version) -- Senators Leatherman, Setzler, Knotts and Cromer: A JOINT RESOLUTION TO AUTHORIZE THE DEPARTMENT OF AGRICULTURE TO RELOCATE THE COLUMBIA STATE FARMERS' MARKET FROM ITS CURRENT LOCATION IN RICHLAND COUNTY TO LEXINGTON COUNTY, TO RE-AUTHORIZE APPROPRIATIONS FOR THE DEPARTMENT TO EXPEND CERTAIN MONIES FOR THE RELOCATION, TO AUTHORIZE THE COMMISSIONER OF AGRICULTURE TO TERMINATE THE PENDING PROJECT THAT RELOCATES THE MARKET TO THE WALKER TRACT IN RICHLAND COUNTY, AND TO AUTHORIZE THE COMMISSIONER TO IMPLEMENT A STATEWIDE FARMERS' MARKET PLAN.
The House returned the Resolution with amendment.
The Senate proceeded to a consideration of the Joint Resolution, the question being the concurrence in the House amendment.
Senator LEATHERMAN proposed the following amendment (1066R002.HKL), which was adopted:
Amend the bill, as and if amended, beginning on page 1, by striking line 30 through line 2 on page 3 and inserting:
/ Commissioner of Agriculture in Lexington County. The new location will include both public and private investment and public and private property.
(B) The following funds are authorized or re-authorized to be used for the relocation project:
(1) the balance of the ten million dollars from the Capital Improvement Bond funds authorized in the 1999 Bond Act. These bonds have already been issued and the proceeds available for expenditure; thus, the department may draw down these available funds with approval of the Joint Bond Review Committee;
(2) a minimum of fourteen million eight hundred fifty thousand dollars from the sale of the existing market;
(3) the two million five hundred thousand dollars from the Ordinary Sinking Fund;
(4) the fifteen million dollars from the Capital Reserve Fund in 2007; and
(5) the proceeds from the sale of the Columbia Metrology Laboratory and the contiguous tract of state land.
The department may use no more than twenty-two million five hundred thousand dollars for the relocation project, and of this amount, up to five million four hundred thousand dollars may be used for infrastructure improvements on any property that constitutes the new location related to roads, water, sewer, site preparation, and other infrastructure, to be spent by the Commissioner of Agriculture. The state funds to be used for infrastructure must be placed in escrow. The release of the escrow funds is contingent upon project inspection and certification by the State Engineer's Office and must be disbursed as those improvements are actually constructed. The Department of Agriculture must obtain the approval of the Joint Bond Review Committee prior to spending the balance of the twenty-two million five hundred thousand dollars allocated for the market relocation. This joint resolution modifies and supersedes any conflicting language found in the 2007-2008 and the 2008-2009 General Appropriations Act.
(C) As part of the relocation project authorized in this joint resolution, the Commissioner of Agriculture is authorized to terminate the pending project on the Walker Tract in Richland County, to resolve any related disputes, negotiate and enter any agreements incidental to the relocation project, and to engage any needed professional services. The commissioner shall provide a quarterly /
Renumber sections to conform.
Amend title to conform.
Senator LEATHERMAN explained the amendment.
The amendment was adopted.
There being no further amendments, the Joint Resolution was ordered returned to the House with amendment.
Senator McCONNELL rose for an Expression of Personal Interest.
At 1:28 P.M., on motion of Senator McCONNELL, the Senate adjourned to meet tomorrow at 11:00 A.M. under the provisions of Rule 1 for the purpose of taking up local matters and uncontested matters which have previously received unanimous consent to be taken up.
This web page was last updated on Monday, June 22, 2009 at 1:51 P.M.