Indicates Matter Stricken
Indicates New Matter

The Senate assembled at 12:00 Noon, the hour to which it stood adjourned, and was called to order by the PRESIDENT.

A quorum being present, the proceedings were opened with a devotion by the Chaplain as follows:

From the book of Joshua:

"Joshua set up twelve stones in the middle of the Jordan, in the place where the feet of the priests bearing the ark of the covenant had stood; and they are there to this day."     (Joshua 4:9)

Let us bow:

Holy Lord, we realize that by ordering the stones to be placed in the river, Joshua was creating a memorial to complement the one at the camp in Gilgal. But we cannot help but ponder: what sort of lasting "memorial" might we be creating for those who follow after us? Indeed, dear God, lead these servants of Yours in this Senate to leave a legacy that will be worthy and meaningful, one that will bless and benefit the people of this State. Surround us all with Your loving arms and guide us. In our Lord's name we pray.
Amen.

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

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

Initial Appointment, South Carolina Workers' Compensation Commission, with the term to commence June 30, 2008, and to expire June 30, 2014
At-Large:
Samuel F. Painter, 36 Stone Market Road, Columbia, SC 29212 VICE George N. Funderburk

Referred to the Committee on Judiciary.

Initial Appointment, South Carolina Workers' Compensation Commission, with the term to commence June 30, 2008, and to expire June 30, 2014
At-Large:
Avery B. Wilkerson, Jr., 329 Tamwood Circle, Cayce, SC 29033 VICE J. Alan Bass

Referred to the Committee on Judiciary.

Reappointment, South Carolina Workers' Compensation Commission, with the term to commence June 30, 2008, and to expire June 30, 2014
At-Large:
Derrick L. Williams, 3800 Trenholm Road, Columbia, SC 29206

Referred to the Committee on Judiciary.

Initial Appointment, South Carolina Workers' Compensation Commission, with the term to commence June 30, 2008, and to expire June 30, 2010
Chairman:
Andrea C. Roche, 118 Newberry Dr., Prosperity, SC 29127 VICE David W. Huffstetler

Referred to the Committee on Judiciary.

Initial Appointment, Lee County Master-in-Equity, with the term to commence December 31, 2007, and to expire December 31, 2013
Stephen B. Doby, Esquire, Jennings & Jennings Law Firm, P.O. Box 106, Bishopville, SC 29010 VICE Robert Jennings

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

Document No. 3129
Agency: Commission on Higher Education
SUBJECT: Licensing Criteria
Received by Lieutenant Governor January 15, 2008

Document No. 3137
Agency: State Board of Education
SUBJECT: School-To-Work Transition Act
Received by Lieutenant Governor January 10, 2008
Referred to Education Committee
Legislative Review Expiration May 9, 2008

Document No. 3150
Agency: Department of Health and Environmental Control
SUBJECT: Hazardous Waste Management
Received by Lieutenant Governor January 11, 2008
Referred to Medical Affairs Committee
Legislative Review Expiration May 10, 2008

Document No. 3155
Agency: Department of Health and Environmental Control
SUBJECT: Water Pollution Control Permits
Received by Lieutenant Governor January 10, 2008
Referred to Medical Affairs Committee
Legislative Review Expiration May 9, 2008

Document No. 3165
Agency: Department of Transportation
SUBJECT: Transportation Project Prioritization
Received by Lieutenant Governor January 14, 2008
Referred to Transportation Committee
Legislative Review Expiration May 13, 2008

Document No. 3166
Agency: Department of Transportation
SUBJECT: SCDOT Chief Internal Auditor
Received by Lieutenant Governor January 14, 2008
Referred to Transportation Committee
Legislative Review Expiration May 13, 2008

Document No. 3167
Agency: Department of Transportation
SUBJECT: SCDOT Commission Approval of Actions

Document No. 3168
Agency: Department of Transportation
SUBJECT: SCDOT Secretary of Transportation Approval of Actions
Received by Lieutenant Governor January 14, 2008
Referred to Transportation Committee
Legislative Review Expiration May 13, 2008

Document No. 3170
Agency: Commission on Higher Education
SUBJECT: Nonpublic Postsecondary Institution Licensing - Use of Surety Bond Funds
Received by Lieutenant Governor January 15, 2008
Referred to Education Committee
Legislative Review Expiration May 14, 2008

Document No. 3181
Agency: Department of Labor, Licensing and Regulation - Building Codes Council
SUBJECT: Barrier Free Building Design
Received by Lieutenant Governor January 11, 2008
Referred to Labor, Commerce and Industry Committee
Legislative Review Expiration May 10, 2008

Document No. 3182
Agency: Department of Labor, Licensing and Regulation - Building Codes Council
SUBJECT: Barrier Free Design - Repeal
Received by Lieutenant Governor January 11, 2008
Referred to Labor, Commerce and Industry Committee
Legislative Review Expiration May 10, 2008

Document No. 3183
Agency: Department of Labor, Licensing and Regulation - Building Codes Council
SUBJECT: Modular Building Construction Act
Received by Lieutenant Governor January 11, 2008
Referred to Labor, Commerce and Industry Committee

Senator THOMAS introduced Dr. William Jones of Greenville, S.C., Doctor of the Day.

On motion of Senator MATTHEWS, at 12:05 P.M., Senator PINCKNEY was granted a leave of absence for today and lasting until Tuesday, January 29, 2008.

At 12:05 P.M., Senator CROMER requested a leave of absence for Wednesday and Thursday of this week.

Senator FORD rose for an Expression of Personal Interest.

Mr. PRESIDENT and ladies and gentlemen of the Senate.

Today is January 15, 2008, the date that Dr. Martin Luther King, Jr. was born. The reason I am up here, Mr. Chairman, is because the last three or four days I have had a real heavy heart regarding the presidential race. I just want to try and point out to my brothers in the white community that for those of us that were a part of the movement, Senator McCONNELL, we appreciate the fact that Dr. King had the vision and ability to bring white and black people together. His whole movement was based on blacks and whites working together. When Dr. King started his movement we all know the condition of Negroes in this country at the time. And what he was able to do, first of all, was to wake some of us up in the African-American community and we were in the streets marching and demonstrating. It took a son of the South.

Lyndon Johnson, a US Senator at the time, ran for president in 1960 against John Kennedy. And what happened when Sen. Johnson ran for

And so, of course, everyone knows that President John Kennedy was assassinated and Lyndon Johnson became President. Once Lyndon Johnson became President, the Civil Rights Movement, you might say, was real life because he was able to get his friends in the Senate -- Senator Stennis, Senator Eastland of Mississippi, even your Senators in South Carolina. He was able to get them not to filibuster toward Civil Rights legislation, Voter's Rights legislation and the Human Rights legislation. As a result of that, he was able to sign into law seven of the Civil Rights packages that made it possible for me to be here today, along with the rest of the African-American Senators, along with women and everyone else.

But it took that combination of King and Johnson working together to get that done. I just want to set the record straight on that because a lot of people in the South and in South Carolina and a lot of people in this country are trying to make the presidential race between Senator Obama and Senator Clinton strictly based on race and that is not going to do us any good for our country.

And I just want to make sure we understand that it takes us working together, just like Senator McCONNELL and I became great working brothers and became great friends. Why? Because of my teaching of Dr. King and I'm sure because of his teaching with General Robert E. Lee and General Stonewall Jackson.

That's all I wanted to say. I just wanted to make sure that my brothers in the white community understand and make sure that people like Senator Clinton and President Clinton understand and Senator Leatherman understand that we do appreciate when we can work together in the South. And I think that all this stuff going on in the media and all these talk show radio hosts are trying to divide us in South Carolina. I'm just simply saying, let's put a stop to it and let's put a stop to it now !!!

Thank you.

On motion of Senator McCONNELL, with unanimous consent, the remarks of Senator FORD were ordered printed in the Journal.

Senator MARTIN rose for an Expression of Personal Interest.

Senator McCONNELL rose for an Expression of Personal Interest.

S. 976 (Word version) -- Senator Courson: A BILL TO AMEND SECTION 59-147-30 OF THE 1976 CODE, RELATING TO ISSUANCE OF REVENUE BONDS BY UNIVERSITIES, SO AS TO CLARIFY AND FURTHER SPECIFY WHAT FACILITIES ARE ELIGIBLE TO BE FINANCED UNDER THE HIGHER EDUCATION REVENUE BOND ACT, AND TO REPEAL SECTION 59-147-120.

On motion of Senator McCONNELL, with unanimous consent, the name of Senator McCONNELL was added as a co-sponsor of S. 976.

H. 4397 (Word version) -- Reps. Ott, Agnew, Alexander, Allen, Anderson, Anthony, Bales, Ballentine, Bannister, Barfield, Battle, Bedingfield, Bingham, Bowen, Bowers, Brady, Branham, Brantley, Breeland, G. Brown, R. Brown, Cato, Chalk, Clemmons, Clyburn, Cobb-Hunter, Coleman, Cooper, Cotty, Crawford, Dantzler, Davenport, Delleney, Duncan, Edge, Erickson, Frye, Funderburk, Gambrell, Govan, Gullick, Hagood, Haley, Hamilton, Hardwick, Harrell, Harrison, Hart, Harvin, Haskins, Hayes, Herbkersman, Hiott, Hodges, Hosey, Howard, Huggins, Hutson, Jefferson, Jennings, Kelly, Kennedy, Kirsh, Knight, Leach, Limehouse, Littlejohn, Loftis, Lowe, Lucas, Mack, Mahaffey, McLeod, Merrill, Miller, Mitchell, Moody-Lawrence, Moss, Mulvaney, J.H. Neal, J.M. Neal, Neilson, 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 DECLARE THAT JANUARY 31, 2008, "PUBLIC LIBRARY APPRECIATION DAY" IN SOUTH CAROLINA.

Senator COURSON asked unanimous consent to make a motion to recall the Resolution from the Committee on Education.

There was no objection.

The Resolution was recalled from the Committee on Education.

Senator COURSON asked unanimous consent to take the Resolution up for immediate consideration.

There was no objection.

The Senate proceeded to a consideration of the Resolution, the question being the adoption of the Resolution.

Senator COURSON asked unanimous consent to adopt the Resolution.

There was no objection.

The Resolution was adopted and ordered returned to the House.

H. 4436 (Word version) -- Rep. Walker: A CONCURRENT RESOLUTION TO DESIGNATE JANUARY 2008 AS SOUTH CAROLINA SCHOOL BOARD MEMBER RECOGNITION MONTH TO HONOR SCHOOL BOARD MEMBERS FOR THEIR EXCEPTIONAL COMMITMENT TO IMPROVING PUBLIC EDUCATION FOR ALL SOUTH CAROLINA SCHOOLCHILDREN.

Senator COURSON asked unanimous consent to make a motion to recall the Resolution from the Committee on Education.

There was no objection.

The Resolution was recalled from the Committee on Education.

Senator COURSON asked unanimous consent to take the Resolution up for immediate consideration.

There was no objection.

The Senate proceeded to a consideration of the Resolution, the question being the adoption of the Resolution.

Senator COURSON asked unanimous consent to adopt the Resolution.

There was no objection.

The Resolution was adopted and ordered returned to the House.

The following were introduced:

S. 984 (Word version) -- Senator Malloy: A SENATE RESOLUTION RECOGNIZING AND HONORING COACH COREY LEWIS FOR HIS MANY ACHIEVEMENTS AND HIS DEDICATION AND LEADERSHIP AS A COACH AND AN EDUCATOR.
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The Senate Resolution was adopted.

S. 985 (Word version) -- Senator Gregory: A BILL TO AMEND SECTION 50-9-510, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO HUNTING AND FISHING LICENSES AUTHORIZED FOR SALE, SO AS TO REVISE THE REQUIREMENTS AND PRIVILEGES OF AND PROCEDURES FOR A SENIOR LIFETIME LICENSE.
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Read the first time and referred to the Committee on Fish, Game and Forestry.

S. 986 (Word version) -- Senator Gregory: A BILL TO AMEND SECTION 50-9-510, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO HUNTING AND FISHING LICENSES AUTHORIZED FOR SALE, SO AS TO REVISE THE REQUIREMENTS AND PRIVILEGES OF AND PROCEDURES FOR A DISABILITY LICENSE.
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Read the first time and referred to the Committee on Fish, Game and Forestry.

S. 987 (Word version) -- Senator Gregory: A BILL TO AMEND SECTION 50-21-80, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ENFORCEMENT OF BOATING LAWS, SO AS TO FURTHER PROVIDE FOR THIS ENFORCEMENT, THE AUTHORITY OF ALL LAW ENFORCEMENT OFFICERS TO ENFORCE THESE PROVISIONS, AND TO PROVIDE PENALTIES FOR VIOLATION; TO AMEND SECTION 50-21-114, AS AMENDED, RELATING TO OPERATING A WATER DEVICE UNDER THE INFLUENCE OF ALCOHOL OR DRUGS AND THE IMPLIED CONSENT FOR A BREATH TEST TO DETERMINE BLOOD ALCOHOL LEVELS, SO AS TO FURTHER PROVIDE

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

S. 988 (Word version) -- Senators McConnell, Rankin, Hutto, Martin, Alexander, Bryant, Anderson, Campbell, Ceips, Drummond, Ford, O'Dell, Pinckney, Ritchie, Sheheen, Thomas, Verdin, Williams, Knotts and Setzler: A BILL TO AMEND SECTION 27-18-20, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE UNIFORM UNCLAIMED PROPERTY ACT, AND BY ADDING SECTIONS 27-18-185 AND 27-18-255, SO AS TO PROVIDE FOR AN

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

S. 989 (Word version) -- Senators Peeler, Reese, Fair and Pinckney: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 5 TO CHAPTER 12, TITLE 58 SO AS TO ENACT THE "CABLE ANTIDISCRIMINATION AND DISPUTE RESOLUTION ACT OF 2008", TO PROVIDE DEFINITIONS, PROHIBIT DISCRIMINATION BY A CABLE OPERATOR WHEN PROVIDING PROGRAMMING WHICH COMPETES IN THE SAME PROGRAMMING CATEGORY OF ANOTHER OPERATOR, AND TO PROVIDE A PROCEDURE FOR RESOLVING DISPUTES.
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Read the first time and referred to the Committee on Judiciary.

S. 990 (Word version) -- Senators Martin, Ford, Ritchie, Knotts and Cleary: A BILL TO AMEND SECTION 2-19-30, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PUBLIC HEARINGS, SO AS TO REQUIRE THAT WRITTEN STATEMENTS OF PROPOSED TESTIMONY OF ANYONE WISHING TO TESTIFY BEFORE THE JUDICIAL MERIT SELECTION COMMISSION HEARING BE FURNISHED BY THE PERSON WISHING TO TESTIFY NO LESS THAN TWO WEEKS PRIOR TO THE DATE AND TIME SET FOR THE HEARING UNLESS EXIGENT CIRCUMSTANCES ARE SHOWN BY THE SUBMITTING INDIVIDUAL.
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Read the first time and referred to the Committee on Judiciary.

S. 991 (Word version) -- Senator McConnell: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 60-11-120, SO AS TO PROVIDE FOR THE DISPOSITION OF DUPLICATIVE ARCHIVAL MATERIAL BY THE SOUTH CAROLINA COMMISSION OF ARCHIVES AND HISTORY; AND TO REPEAL SECTION 59-103-200, RELATING TO DISPOSITION OF DUPLICATIVE ARCHIVAL MATERIAL, THAT WAS ERRONEOUSLY CODIFIED UNDER THE COMMISSION OF

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

S. 992 (Word version) -- Senator McConnell: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 1-11-495, SO AS TO AUTHORIZE THE STATE BUDGET OFFICE OF THE BUDGET AND CONTROL BOARD TO CONDUCT A SURVEY TO DETERMINE ALL THE CONTRACTS AND GRANTS ADMINISTERED BY STATE AGENCIES AND TO PROVIDE A SEARCHABLE WEBSITE LISTING ALL SUCH CONTRACTS AND GRANTS.
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Read the first time and referred to the Committee on Finance.

S. 993 (Word version) -- Senator Hutto: A BILL TO ENACT THE "ALLENDALE COUNTY SCHOOL DISTRICT SCHOOL BOND-PROPERTY TAX RELIEF ACT" SO AS TO AUTHORIZE THE IMPLEMENTATION FOLLOWING REFERENDUM APPROVAL OF A SALES AND USE TAX IN ALLENDALE COUNTY NOT TO EXCEED ONE PERCENT TO BE USED FOR DEBT SERVICE ON GENERAL OBLIGATION BONDS ISSUED FOR SCHOOL CONSTRUCTION AND RENOVATION OR FOR DIRECT PAYMENTS FOR SCHOOL CONSTRUCTION AND RENOVATIONS.
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Read the first time and ordered placed on the Local and Uncontested Calendar.

H. 4315 (Word version) -- Reps. R. Brown and Hodges: A BILL TO AMEND ACT 190 OF 1991, RELATING TO THE BOARD OF TRUSTEES OF THE SCHOOL DISTRICT OF COLLETON COUNTY, SO AS TO CHANGE THE TIME FOR FILING THE STATEMENT OF CANDIDACY TO BE ELECTED TO THE BOARD OF TRUSTEES AND TO CORRECT INCORRECT REFERENCES.

Read the first time and ordered placed on the Local and Uncontested Calendar.

H. 4403 (Word version) -- Rep. Davenport: A JOINT RESOLUTION TO DESIGNATE THE SITE OF THE BOILING SPRINGS GEYSER IN SPARTANBURG COUNTY AS A STATE HISTORIC SITE.

Read the first time and referred to the General Committee.

H. 4429 (Word version) -- Reps. Harrell, W. D. Smith, White, Cooper, Harrison, Cato, Walker, Witherspoon and Howard: A CONCURRENT RESOLUTION INVITING HIS EXCELLENCY, MARSHALL CLEMENT (MARK) SANFORD, JR., GOVERNOR OF THE STATE OF SOUTH CAROLINA, TO ADDRESS THE GENERAL ASSEMBLY IN JOINT SESSION AT 7:00 P.M. ON WEDNESDAY, JANUARY 16, 2008, IN THE CHAMBER OF THE SOUTH CAROLINA HOUSE OF REPRESENTATIVES.

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

Columbia, S.C., January 15, 2008

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has confirmed the appointment:

Appointment, Lee County Master-in-Equity, with term to commence December 31, 2007, and to expire December 31, 2013

Initial Appointment:

Stephen B. Doby, Esquire, Jennings & Jennings Law Firm, P. O. Box 106, Bishopville, SC 29010 VICE Robert Jennings
Very respectfully,
Speaker of the House

Received as information.

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

H. 3789 (Word version) -- Reps. Kirsh and Cooper: A BILL TO RETITLE ARTICLE 5, CHAPTER 11, TITLE 1, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EMPLOYEES AND RETIREMENT INSURANCE AS "EMPLOYEES AND RETIREES INSURANCE-ACCOUNTING FOR POST-EMPLOYMENT BENEFITS", TO MAKE FINDINGS WITH RESPECT TO THE STATE'S COMPLIANCE WITH NEW REQUIREMENTS OF THE

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

Senator ALEXANDER proposed the following amendment (3789R004.TCA), which was adopted:

Amend the committee amendment, as and if amended, SECTION 2, page [3789-5], by striking line 9 and inserting:

/     (I)   The board shall fund the SCRHI Trust Fund by January 31, 2008. The employee insurance program shall transfer to the trust fund from the employee insurance program's operating account, the cash balance in the operating account in excess of one hundred forty percent of the actuarially-determined IBNR reserves of the state's health plans as of December thirty-first of the preceding year. Upon the recommendation of the General Assembly, any further IBNR reserve

Renumber sections to conform.

Amend title to conform.

Senator ALEXANDER explained the perfecting amendment.

The perfecting amendment was adopted.

The Committee on Finance proposed the following amendment (BBM\10108HTC07), which was adopted:

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

/ SECTION   1.   Article 5, Chapter 11, Title 1 of the 1976 Code is retitled "Employees and Retirees Insurance-Accounting for Post-Employment Benefits".

SECTION   2.   Article 5, Chapter 11, Title 1 of the 1976 Code is amended by adding:

"Section 1-11-703.   As used in this article:

(1)   'Actuarial accrued liability' means that portion, as determined by a particular actuarial cost method, of the actuarial present value of fund obligations and administrative expenses which is not provided for by future normal costs.

(2)   'Actuarial assumptions' means assumptions regarding the occurrence of future events affecting costs of the SCRHI Trust Fund or LTDI Trust Fund such as mortality, withdrawal, disability, and retirement; changes in compensation; aging effects and cost trends for post-employment benefits; benefit election rates; rates of investment earnings and asset appreciation or depreciation; procedures used to determine the actuarial value of assets; and other such relevant items.

(3)   'Actuarial cost method' means a method for determining the actuarial present value of the obligations and administrative expenses of the SCRHI Trust Fund or LTDI Trust Fund and for developing an actuarially equivalent allocation of such value to time periods, usually in the form of a normal cost and an actuarial accrued liability. Acceptable actuarial methods are the aggregate, attained age, individual entry age, frozen attained age, frozen entry age, and projected unit credit methods.

(4)   'Actuarial present value of total projected benefits' means the present value, at the valuation date, of the cost to finance benefits

(5)   'Actuarial valuation' means the determination, as of a valuation date, of the normal cost, actuarial accrued liability, actuarial value of assets, and related actuarial present values for the SCRHI Trust Fund or LTDI Trust Fund.

(6)   'Actuarially sound' means that calculated contributions to the SCRHI Trust Fund or LTDI Trust Fund are sufficient to pay the full actuarial cost of these trust funds. The full actuarial cost includes both the normal cost of providing for fund obligations as they accrue in the future and the cost of amortizing the unfunded actuarial accrued liability over a period of no more than thirty years.

(7)   'Administrative expenses' means all expenses incurred in the operation of the SCRHI Trust Fund and LTDI Trust Fund, including all investment expenses.

(8)   'LTDI Trust Fund' means the Long Term Disability Insurance Trust Fund established pursuant to Section 1-11-707 to fund benefits under the State's Basic Long Term Disability (BLTD) Income Benefit Plan.

(9)   'Board' means the State Budget and Control Board.

(10)   'Employee insurance program' or 'EIP' means the office of the board designated by the board to operate insurance programs pursuant to this article.

(11)   'IBNR' means unpaid health claims incurred but not reported. The liability for IBNR claims is actuarially estimated based on the most current historical claims experience of previous payments, inflation, award trends, and estimates of health care trend changes.

(12)   'Operating account' means the health insurance program's business operating activities account maintained by the State Treasurer in which are deposited all premiums for enrollees in self-funded health plans authorized in this article, along with employer contributions for active employees covered by such self-funded health plans, and from which claims and administrative expenses of the self-funded health and dental plans administered by the employee insurance program are paid.

(13)   'State-covered entity' means state agencies and institutions, however described, and school districts. It also includes political subdivisions of the State that participate in the state health and dental plans.

(14)   'State health and dental plans' means any insurance program administered by the employee insurance program pursuant to this article.

(15)   'SCRHI Trust Fund' means the South Carolina Retiree Health Insurance Trust Fund established pursuant to Section 1-11-705 to fund the employer cost for health benefits for retired state employees and retired public school district employees.

(16)   'State Retirement System' or 'State Retirement Systems' means all retirement systems established pursuant to Title 9 except for the National Guard Retirement System.

(17)   'Unfunded actuarial accrued liability' means for any actuarial valuation the excess of the actuarial accrued liability over the actuarial value of the assets of the fund under an actuarial cost method utilized by the fund for funding purposes.

(18)   'Trust fund paid premiums' means the employer premium for state health and dental plans coverage paid by the SCRHI Trust Fund on behalf of a retiree. When it is expressed as a percentage of trust fund paid premiums, it means that the SCRHI Trust Fund shall pay the stated percentage of the employer premiums, with the retiree paying the balance of the employer premiums and the entire employee premium.

Section 1-11-705.   (A)   There is established in the State Treasury separate and distinct from the general fund of the State and all other funds the South Carolina Retiree Health Insurance Trust Fund (SCRHI Trust Fund) to provide for the employer costs of retiree post-employment health insurance benefits for retired state employees and retired employees of public school districts. Earnings on the SCRHI Trust Fund must be credited to it and unexpended funds carried forward in it to succeeding fiscal years.

(B)   The board is the trustee of the SCRHI Trust Fund.

(C)   The employee insurance program shall administer the SCRHI Trust Fund.

(D)   The employee insurance program shall engage actuarial and other services as required to transact the business of the SCRHI Trust Fund. The actuary engaged by the employee insurance program shall provide technical advice to the board regarding operation of the SCRHI Trust Fund.

(E)   Upon recommendations of the actuary, the board shall adopt generally accepted and reasonable actuarial assumptions and methods for the operation and funding of the SCRHI Trust Fund as it considers necessary and prudent. The actuarial assumptions and methods adopted by the board must be appropriate for the purposes at hand and must be reasonable, individually and in the aggregate, taking into account the experience of the plan and reasonable expectations. Utilizing the actuarial assumptions most recently adopted by the board,

(F)   The board may adopt rules and promulgate regulations as necessary for the proper administration of the SCRHI Trust Fund.

(G)   (1)The funds of the SCRHI Trust Fund must be invested and reinvested by the State Treasurer in the manner allowed by law. The State Treasurer shall consult with the employee insurance program and the employee insurance program's actuary to develop an annual investment plan for the SCRHI Trust Fund taking into account the cash flow needs of the employee insurance program with regard to payment of the employer share of premiums and claims for covered retirees.

(2)   Effective beginning with the first fiscal year after the ratification of an amendment to Section 16, Article X of the Constitution of this State allowing funds in post-employment benefits trust funds to be invested in equity securities, the Retirement System Investment Commission (RSIC) established pursuant to Chapter 16 of Title 9, shall invest and reinvest the funds of the SCRHI Trust Fund as assets of a retirement system are invested. The chief investment officer shall consult with the employee insurance program and the employee insurance program's actuary to develop an annual investment plan for the SCRHI Trust Fund taking into account the cash flow needs of the employee insurance program with regard to payment of the employer share of premiums and claims for covered retirees. After the initial fiscal year the RSIC assumes this investing function, the annual investment plan for the SCRHI Trust Fund must be approved by the commission no later than June first of each year for the fiscal year beginning July first of the same calendar year.

(H)   The board annually shall determine the minimum annual required contributions to the SCRHI Trust Fund on an actuarially sound basis in accordance with Governmental Accounting Standards Board Statement No. 45, or any other Governmental Accounting Standards Board statements that may be applicable to the SCRHI Trust Fund.

(I)   [RESERVED]

(J)   Each month, the employee insurance program shall determine the monthly amount of the state-funded employer premium with respect to retired state employees and retired public school district employees who are eligible for state-paid employer premiums pursuant to Section 1-11-730, and shall transfer this amount to the operating account from the SCRHI Trust Fund. In addition, the employee

(K)   The funds of the SCRHI Trust Fund may only be used for the payment of employer-provided other post-employment benefits under the terms of the state health and dental plans. The administrative costs related to the administration of the SCRHI Trust Fund, and the investment and reinvestment of its funds, may be funded from the earnings of the SCRHI Trust Fund.

(L)   As a trust, the funds of the SCRHI Trust Fund are not assets of the State or the school districts or their respective agencies. The contributions to the SCRHI Trust Fund are irrevocable and may not revert to the employer except upon complete satisfaction of all liabilities and administrative expenses of the state health and dental plans of other post-employment benefits provided pursuant to the state health and dental plans.

Section 1-11-707.   (A)   There is established in the State Treasury separate and distinct from the general fund of the State and all other funds the South Carolina Long Term Disability Insurance Trust Fund (LTDI Trust Fund) to provide for the payment of benefits under the state's Basic Long Term Disability Income Benefit Plan. Earnings on the LTDI Trust Fund must be credited to it and unexpended funds carry forward in it to succeeding fiscal years.

(B)   The board is the trustee of the LTDI Trust Fund.

(C)   The employee insurance program shall administer the LTDI Trust Fund.

(D)   The employee insurance program shall engage actuarial and other services as required to transact the business of the LTDI Trust Fund. The actuary engaged by the employee insurance program shall provide technical advice to the board regarding operation of the LTDI Trust Fund.

(E)   Upon recommendations of the actuary, the board shall adopt generally accepted and reasonable actuarial assumptions and methods for the operation and funding of the LTDI Trust Fund as it considers necessary and prudent. The actuarial assumptions and methods adopted by the board must be appropriate for the purposes at hand and must be reasonable, individually and in the aggregate, taking into account the experience of the plan and reasonable expectations. Utilizing the actuarial assumptions most recently adopted by the board,

(F)   The board may adopt rules and promulgate regulations as necessary for the proper administration of the LTDI Trust Fund.

(G)   (1)   The funds of the LTDI Trust Fund must be invested and reinvested by the State Treasurer in the manner allowed by law. The State Treasurer shall consult with the employee insurance program and the employee insurance program's actuary to develop an annual investment plan for the LTDI Trust Fund taking into account the cash flow needs of the employee insurance program with regard to payment of the employer share of premiums and claims for covered retirees.

(2)   Effective beginning with the first fiscal year after the ratification of an amendment to Section 16, Article X of the Constitution of this State allowing funds in post-employment benefits trust funds to be invested in equity securities, the Retirement System Investment Commission (RSIC) established pursuant to Chapter 16 of Title 9, shall invest and reinvest the funds of the LTDI Trust Fund as assets of a retirement system are invested. The chief investment officer shall consult with the employee insurance program and the employee insurance program's actuary to develop an annual investment plan for the LTDI Trust Fund taking into account the cash flow needs of the employee insurance program with regard to payment of the employer share of premiums and claims for covered retirees. After the initial fiscal year the RSIC assumes this investing function, the annual investment plan for the LTDI Trust Fund must be approved by the commission no later than June first of each year for the fiscal year beginning July first of the same calendar year.

(H)   The board annually shall determine the minimum annual required contributions to the LTDI Trust Fund on an actuarially sound basis in accordance with Governmental Accounting Standards Board Statement No. 45, or any other Governmental Accounting Standards Board statements that may be applicable to the LTDI Trust Fund.

(I)   [RESERVED]

(J)   Each month, the employee insurance program shall transfer to the operating account from the LTDI Trust Fund the amount invoiced by the third-party administrator for the BLTD Plan for payment of LTDI claims, including reasonable expenses associated with claims administration of the BLTD Plan.

(K)   The assets of the LTDI Trust Fund may only be used for the payment of the state's claims under the BLTD Plan along with reasonable expenses associated with the operation of the BLTD Plan, and the assets of the LTDI Trust Fund may not be used for any other purpose. The administrative costs related to the administration of the LTDI Trust Fund, and the investment and reinvestment of its funds, must be funded from the earnings of the LTDI Trust Fund.

(L)   As a trust, the funds of the LTDI Trust Fund are not assets of the State or the school districts or their respective agencies. The contributions to the LTDI Trust Fund are irrevocable and may not revert to the employer except upon complete satisfaction of all liabilities and administrative expenses of the State Basic Long Term Disability Income Benefit Plan of other post-employment benefits provided pursuant to the State Basic Long Term Disability Income Benefit Plan."

SECTION   3.   Section 1-11-730 of the 1976 Code is amended to read:

"Section 1-11-730.   (A)   If a person began employment eligible for coverage under the state health and dental plans on or before the reference date, the following eligibility provisions govern that person's participation in state health and dental plans as a retiree:

(A)(1)   A person covered by the state health and dental insurance plans who terminates employment with at least twenty years' retirement service credit by a state-covered entity before eligibility for retirement under a state retirement system is eligible for state health and dental plans coverage, the plans effective on the date of retirement under a state retirement system, if the last five years are consecutive and in a full-time permanent position with a state-covered entity. With respect to a retiree eligible for coverage pursuant to this subsection, the retiree is eligible for trust fund paid premiums and the retiree is responsible for the entire employee premium.

(B)(2)   A member of the General Assembly who leaves office or retires with at least eight years' credited service in the General Assembly Retirement System is eligible to participate in the state health and dental plans by paying the full premium costs as determined by the State Budget and Control Board.

(C)(3)   With respect to an active employee: (a) employed by the State or a public school district, (b) retiring with ten or more years of state-covered entity service credited under a state retirement system, and (c) with the last five years of earned service credit consecutive and in a full-time permanent position with the State or a public school

(D)(4)   A person covered by the state health and dental plans who retires with at least five years' state-covered entity service credited under a state retirement system is eligible to participate in the plan state health and dental plans by paying the full premium costs as determined by the board, if the last five years are consecutive and in a full-time permanent position with a state-covered entity.

(E)(5)   A spouse or dependent of a person covered by the plans who is killed in the line of duty after December 31, 2001, shall receive equivalent coverage under the state health and dental plans for a period of twelve months and the State shall be is responsible for paying the full premium costs. After the twelve-month period, a spouse or dependent is eligible for state-paid trust fund paid premiums. A spouse is eligible for state-paid trust fund paid premiums under this subsection until the spouse remarries. A dependent is eligible for state-paid trust fund paid premiums under this subsection until the dependent's eligibility for coverage under the plans would ordinarily terminate.

(F)   All state and school district employees employed before July 1, 1984, who were or would have been eligible for the plans upon completion of five years' service are exempt from the provisions of this section and are eligible for the plan effective on the date of their retirement.

(G)(6)   A former municipal or county council member of a county or municipality which participates in the state health and dental insurance plans who served on the council for at least twelve years and who was covered under the plans at the time of termination is eligible to maintain coverage under the plans if the former member pays the full employer and employee contributions and if the county or municipal council elects to allow this coverage for former members.

(H)(7)   A person covered by the state health and dental plans who terminated employment with at least eighteen years' retirement service credit by a state-covered entity before eligibility for retirement under a state retirement system prior to before 1990 is eligible for the plans effective on the date of retirement, if this person returns to a state-covered entity and is covered by the state health and dental plans and completes at least two consecutive years in a full-time, permanent position prior to before the date of retirement.

(B)   If a person began employment eligible for coverage under the state health and dental plans after the reference date, the following eligibility provisions govern that person's participation in state health and dental plans as a retiree:

(1)   An active employee covered by the state health and dental plans who retires with at least five years of earned retirement service credit under a state retirement system with a state-covered entity is eligible to participate as a retiree in the state health and dental plans if the last five years of the person's covered employment were consecutive and in a full-time permanent position.

(2)   A person covered by the state health and dental plans who terminates employment before the person's date of retirement with at least twenty years of earned retirement service credit under a state retirement system with a state-covered entity is eligible to participate as a retiree in the state health and dental plans on the person's date of retirement under a state retirement system, if the last five years of the person's covered employment before termination were consecutive and in a full-time permanent position.

(3)   A retired state employee or a retired employee of a public school district who retires under a state retirement system and who is eligible for state health and dental plan coverage under the provisions of item (1) or (2) of this subsection, is eligible for trust fund paid premiums as follows:

(a)   If the retiree's earned service credit in a state retirement system is five or more years but fewer than fifteen years with a state-covered entity, then the retiree shall pay the full premium for health and dental plans.

(b)   If the retiree's earned service credit in a state retirement system is more than fifteen years, but fewer than twenty-five years with a state-covered entity, then the retiree is eligible for fifty percent trust fund paid premiums and the retiree shall pay the remainder of the premium cost.

(c)   If the retiree's earned service credit in a state retirement system is twenty-five or more years with a state-covered entity, then the retiree is eligible for trust fund paid premiums and the retiree is responsible for the entire employee premium.

(4)   If a retiree under a state retirement system was employed by an entity that participates in the state health and dental plans pursuant to the provisions of Section 1-11-720 and is eligible to participate in state health and dental plans as a retiree pursuant to the provisions of item (1) or (2) of this subsection, then the retiree's employer, at its

(5)   A spouse or dependent of a person covered by the plans who is killed in the line of duty on or after the reference date, shall continue to maintain coverage under state health and dental plans for a period of twelve months after the covered person's death and the State is responsible for paying the full premium. After the twelve-month period, a spouse or dependent is eligible for trust fund paid premiums and the spouse or dependent is responsible for the entire employee premium. A spouse is eligible for trust fund paid premiums under this subsection until the spouse remarries. A dependent is eligible for trust fund paid premiums pursuant to this subsection until the dependent's eligibility for coverage under the plans would ordinarily terminate.

(C)   For employees who participate in the state health and dental plans pursuant to the provisions of Section 1-11-720 but who are not members of the State Retirement Systems, one year of full-time employment or its equivalent under their employment relation equates to one year of earned retirement service credit under a state retirement system for purposes of the requirements of subsection (B)(1) and (2) of this section. The EIP shall implement the provisions of this subsection and make determinations pursuant to it. A person aggrieved by a determination of the EIP pursuant to this subsection may appeal that determination as a contested case as provided in Chapter 23 of Title 1, the Administrative Procedures Act.

(D)   Notwithstanding the dates of employment provided in subsections (A) and (B) of this section, a member of the General Assembly on leaving office may elect eligibility for participation in the state health and dental insurance plans pursuant to subsection (A) or (B) of this section."

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

SECTION   5.   The Code Commissioner shall insert the effective date of this act for the phrase "reference date" where it appears in Section

SECTION   6.   This act takes effect on the first day of the month following the month during which this act is approved by the Governor.

Renumber sections to conform.

Amend title to conform.

The committee amendment was adopted.

Senator RYBERG proposed the following amendment (3789R002.WGR):

Amend the bill, as and if amended, SECTION 5, page 13, by deleting lines 21 through 28.

Renumber sections to conform.

Amend title to conform.

Senator ALEXANDER explained the proposed amendment.

On motion of Senator RYBERG, with unanimous consent, the amendment was carried over, along with the Bill, as amended.

H. 4426 (Word version) -- Reps. G. Brown, Weeks, G.M. Smith, Lowe and J.H. Neal: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION NAME THE PORTION OF OLD UNITED STATES HIGHWAY 521 (S-43-1342) FROM ITS INTERSECTION WITH SOUTH CAROLINA HIGHWAY 441 TO ITS INTERSECTION WITH CHARLES JACKSON ROAD "BILL PINKNEY OF THE ORIGINAL DRIFTERS MEMORIAL HIGHWAY" AND ERECT APPROPRIATE MARKERS OR SIGNS ALONG THIS HIGHWAY THAT CONTAIN THE WORDS "BILL PINKNEY OF THE ORIGINAL DRIFTERS MEMORIAL HIGHWAY".

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

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

Having received a favorable report from the Senate, the following appointment was confirmed in open session:

Initial Appointment, Lee County Master-in-Equity, with the term to commence December 31, 2007, and to expire December 31, 2013
Stephen B. Doby, Esquire, Jennings & Jennings Law Firm, P.O. Box 106, Bishopville, SC 29010 VICE Robert Jennings

On motion of Senator RYBERG, with unanimous consent, the Senate stood adjourned out of respect to the memory of Mr. John Travis Bodenheimer of Aiken County, S.C. Mr. Bodenheimer was a distinguished attorney who had retired in 2002, after having served the people of Aiken County in private practice for over forty years. He was graduated from the University of South Carolina in 1954 and from the USC School of Law in 1959. He served in the U. S. Air Force and also served in the Air Force Reserves as Judge Advocate General's officer, attaining the rank of Captain. He was an interim family court judge, president of the local bar, with exemplary service on the S. C. Bar's House of Delegates, Bd. of Commissioners for Grievances and Discipline and Judicial Qualifications Committee for S.C. He was a member of the Rotary Club for over 35 years, a member of the Advisory Board of the Salvation Army, the Ethics Committee for the Aiken Regional Medical Centers, the Aiken Businessmen's Club and was a trustee and deacon at the First Presbyterian Church of Aiken. He was a dedicated citizen, caring individual and valued public servant to his community and State.

At 12:54 P.M., on motion of Senator McCONNELL, the Senate adjourned to meet tomorrow at 2:00 P.M.

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