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 the writings of the prophet, Ezekiel, we read:

"A new heart I will give you, and a new spirit I will put within you..."     (Ezekiel 36:26a)
  Let us pray:
  Holy God, here on this day when many people reflect upon love and life, we find ourselves struggling here in this Senate to meet the needs of the residents of this State. We pray that You will be with the leaders of this Body as these Senators strive in varying ways to mold a new spirit of hope and promise, as they seek to make whole those things that might be broken, as they struggle to move South Carolina forward. Fill their hearts with a new spirit of determination and resolve, all to Your glory. In Your name we pray, Lord.
Amen.

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

Senator LEATHERMAN introduced Dr. Conyers O' Bryan, Jr. of Florence, S.C., Doctor of the Day.

The following co-sponsors were added to the respective Bills:
S. 732 (Word version)       Sen. Ford
S. 967 (Word version)       Sen. Ford
S. 1018 (Word version)     Sen. Matthews
S. 1072 (Word version)     Sens. Fair, Alexander

The following were introduced:

S. 1103 (Word version) -- Senator Malloy: A SENATE RESOLUTION IN RECOGNITION AND APPRECIATION OF THE TREMENDOUS TALENT AND WORK OF ARTIST JONATHAN GREEN AND THANKING HIM FOR HIS POWERFUL INSPIRATION TO INDIVIDUALS AND COMMUNITIES THROUGHOUT THE STATE OF SOUTH CAROLINA, THE UNITED STATES, AND THE WORLD.
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The Senate Resolution was adopted.

S. 1104 (Word version) -- Senator McConnell: A BILL TO AMEND CHAPTER 71 OF TITLE 38, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-71-242, SO AS TO PROVIDE FOR THE DEFINITION OF THE TERMS "ACTUAL CHARGE" OR "ACTUAL FEE" WHEN USED IN INDIVIDUAL OR GROUP SPECIFIED DISEASE INSURANCE POLICIES AND TO REQUIRE THAT NO INSURER OR ISSUER OF ANY INDIVIDUAL OR GROUP SPECIFIED DISEASE INSURANCE POLICY PAY ANY CLAIM OR BENEFITS UNDER THE APPLICABLE POLICY IN AN AMOUNT IN EXCESS OF ACTUAL CHARGE OR ACTUAL FEE AS DEFINED.
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Read the first time and referred to the Committee on Banking and Insurance.

S. 1105 (Word version) -- Senator McConnell: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 34, ARTICLE III AND SECTION 7, ARTICLE VIII OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE PROHIBITION AGAINST SPECIAL LAWS, SO AS TO PROVIDE THAT THE GENERAL ASSEMBLY MAY ENACT SPECIAL LAWS IF THOSE LAWS ARE NECESSARY TO IMPLEMENT TRADITIONAL STATE FUNCTIONS AS DETERMINED BY THE GENERAL ASSEMBLY, OR CONCERN CERTAIN ACTIONS REGARDING ENTITIES CREATED BY LEGISLATIVE ENACTMENTS PASSED PRIOR TO MARCH 7, 1973, AND PROVIDE FOR A CHANGE IN THE BOUNDARIES OR SERVICE AREA OF THE ENTITY, CHANGE IN THE MEMBERSHIP OR COMPOSITION OF THE BOARD GOVERNING THE ENTITY, DISSOLUTION OF THE ENTITY, OR DEVOLUTION OF ALL POWERS, DUTIES, AND RESPONSIBILITIES THAT AFFECT THE ENTITY UPON THE

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

S. 1106 (Word version) -- Senator McConnell: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 27 TO TITLE 7 SO AS TO CODIFY THE PROVISIONS OF LAW THAT CREATED AND COMBINED VARIOUS COUNTY BOARDS OF REGISTRATION AND ELECTION COMMISSIONS INTO A SINGLE ENTITY, TO PROVIDE THAT THOSE COUNTIES THAT DO NOT HAVE COMBINED BOARDS OF REGISTRATION AND ELECTION COMMISSIONS MUST HAVE THEIR SEPARATE BOARDS AND COMMISSIONS APPOINTED PURSUANT TO THE PROVISIONS OF SECTIONS 7-5-10 AND 7-13-70.
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Read the first time and referred to the Committee on Judiciary.

S. 1107 (Word version) -- Medical Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE BUDGET AND CONTROL BOARD, RELATING TO DATA REPORTING REQUIREMENTS PERTAINING TO SUBMISSION OF AMBULATORY ENCOUNTER DATA, DESIGNATED AS REGULATION DOCUMENT NUMBER 3178, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
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Read the first time and ordered placed on the Calendar without reference.

S. 1108 (Word version) -- Medical Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO SOUTH CAROLINA BIRTH DEFECTS PROGRAM, DESIGNATED AS REGULATION DOCUMENT NUMBER 3151, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
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Read the first time and ordered placed on the Calendar without reference.

S. 1109 (Word version) -- Medical Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE BUDGET AND CONTROL BOARD, RELATING TO DATA REPORTING REQUIREMENTS PERTAINING TO SOUTH CAROLINA HOSPITALS, DESIGNATED AS REGULATION DOCUMENT NUMBER 3179, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
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Read the first time and ordered placed on the Calendar without reference.

S. 1110 (Word version) -- Medical Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO ENVIRONMENTAL ELECTRONIC REPORTING REQUIREMENTS, DESIGNATED AS REGULATION DOCUMENT NUMBER 3149, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
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Read the first time and ordered placed on the Calendar without reference.

S. 1111 (Word version) -- Medical Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO ICE, DESIGNATED AS REGULATION DOCUMENT NUMBER 3139, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
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Read the first time and ordered placed on the Calendar without reference.

S. 1112 (Word version) -- Agriculture and Natural Resources Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO CRITICAL AREAS OF THE COASTAL ZONE, DESIGNATED AS REGULATION DOCUMENT NUMBER 3111, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
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Read the first time and ordered placed on the Calendar without reference.

S. 1113 (Word version) -- Agriculture and Natural Resources Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF AGRICULTURE, RELATING TO WEIGHTS AND MEASURES, DESIGNATED AS REGULATION DOCUMENT NUMBER 3133, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
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Read the first time and ordered placed on the Calendar without reference.

S. 1114 (Word version) -- Medical Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO SOLID WASTE MANAGEMENT, DESIGNATED AS REGULATION DOCUMENT NUMBER 3113, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
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Read the first time and ordered placed on the Calendar without reference.

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

S. 1116 (Word version) -- Senators Leventis, Land, Anderson, Ford, Hutto, Malloy, Matthews, Williams, Peeler, Short, Ceips, Drummond, Jackson and Lourie: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-18-315 SO AS TO

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

S. 1117 (Word version) -- Senator Cromer: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 101 TO CHAPTER 3, TITLE 56 SO AS TO PROVIDE THAT THE DEPARTMENT OF MOTOR VEHICLES MAY ISSUE UNITED STATES ARMED SERVICES VETERANS SPECIAL LICENSE PLATES.
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Read the first time and referred to the Committee on Transportation.

S. 1118 (Word version) -- Senators Leventis and Hutto: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 7-3-70 SO AS TO REQUIRE THE STATE ELECTION COMMISSION TO COLLECT AND PUBLISH INFORMATION, BY COUNTY, ON THE NUMBER OF ELECTORS WHO VOTE A STRAIGHT PARTY TICKET.
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Read the first time and referred to the Committee on Judiciary.

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

S. 950 (Word version) -- Senators Hutto and Matthews: A BILL TO AMEND SECTION 59-53-630, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE POWERS OF THE DENMARK TECHNICAL COLLEGE AREA COMMISSION, SO AS TO ALLOW THE COMMISSION TO ENTER INTO GROUND LEASE AGREEMENTS WITH PRIVATE ENTITIES UPON APPROVAL BY THE STATE BUDGET AND CONTROL BOARD.

Ordered for consideration tomorrow.

Senator THOMAS from the Committee on Banking and Insurance submitted a favorable report on:

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

Ordered for consideration tomorrow.

S. 1101 (Word version) -- Senators Ryberg and Massey: A CONCURRENT RESOLUTION TO DECLARE WEDNESDAY, FEBRUARY 20, 2008, AS "CITIES MEAN BUSINESS DAY" TO RECOGNIZE AND HONOR THE VALUABLE CONTRIBUTIONS SOUTH CAROLINA CITIES AND TOWNS MAKE TO OUR STATE'S ECONOMIC PROSPERITY THROUGH THEIR RELATIONSHIP WITH LOCAL BUSINESSES.

Returned with concurrence.

Received as information.

S. 1102 (Word version) -- Senators Sheheen and Lourie: A CONCURRENT RESOLUTION TO RECOGNIZE AND COMMEND THE HONORABLE BILL COTTY FOR HIS YEARS OF FAITHFUL SERVICE TO THE CITIZENS OF DISTRICT NUMBER 79 IN KERSHAW AND RICHLAND COUNTIES AND TO WISH HIM MUCH SUCCESS IN ALL HIS FUTURE ENDEAVORS.

Returned with concurrence.

Received as information.

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

The following Joint Resolution was read the third time and, having received three readings in both Houses, it was ordered that the title be changed to that of an Act and enrolled for Ratification:

H. 4630 (Word version) -- Reps. Scott and Hart: A JOINT RESOLUTION TO CREATE A NEW GANG PREVENTION STUDY COMMITTEE TO CONTINUE THE WORK OF THE INITIAL GANG PREVENTION

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

S. 524 (Word version) -- Senators Leatherman and Campsen: A BILL TO AMEND SECTION 6-1-760 OF THE 1976 CODE, RELATING TO REVENUE BONDS, TO PROVIDE THAT THE PROCEEDS OF ACCOMMODATIONS FEES, HOSPITALITY FEES, AND STATE ACCOMMODATIONS FEES MAY BE PLEDGED AS SECURITY.

By prior motion of Senator LAND, with unanimous consent

S. 1075 (Word version) -- Finance Committee: A JOINT RESOLUTION TO SUPPLEMENT THE SCHOOL DISTRICTS NEGATIVELY AFFECTED BY THE LACK OF REVISION OF THE 2007 FINAL INDEX OF TAXPAYING ABILITY, AND TO PROVIDE THAT A SCHOOL DISTRICT POSITIVELY AFFECTED BY THE LACK OF REVISION OF THE 2007 FINAL INDEX OF TAXPAYING ABILITY SHALL DIRECT THE EXCESS FUNDS TOWARD NONRECURRING ALLOWABLE EXPENDITURES.

S. 1092 (Word version) -- Senator Short: A BILL TO AMEND ARTICLE 17, CHAPTER 23, TITLE 57 OF THE 1976 CODE BY ADDING SECTION 57-23-835, TO PROVIDE THAT THE MANAGEMENT OF THE MEDIAN AND ROADSIDE VEGETATION ON INTERSTATE HIGHWAY 77 AT EXIT 65 IN CHESTER COUNTY IS DEVOLVED UPON THE CHESTER COUNTY GOVERNING AUTHORITY.

By prior motion of Senator SHORT, with unanimous consent

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

S. 970 (Word version) -- Senator Hutto: A BILL TO AMEND SECTION 44-29-135, CODE OF LAWS OF SOUTH CAROLINA, 1976,

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

S. 1099 (Word version) -- Senators Martin, Ford, Ritchie, Malloy, Cromer, Ceips and Setzler: A JOINT RESOLUTION TO CREATE A STUDY COMMITTEE TO REVIEW THE CRIMINAL DOMESTIC VIOLENCE LAWS OF THE STATE AND MAKE RECOMMENDATIONS TO THE GENERAL ASSEMBLY CONCERNING ANY PROPOSED CHANGES, AND TO REQUIRE THE STUDY COMMITTEE TO REPORT ITS RECOMMENDATIONS TO THE GENERAL ASSEMBLY NO LATER THAN JANUARY 31, 2009, AT WHICH TIME THE STUDY COMMITTEE MUST BE DISSOLVED.

By prior motion of Senator MARTIN, with unanimous consent

S. 1005 (Word version) -- Senators Lourie, Scott, Courson, Jackson, Fair, Malloy, Anderson, Campbell, Hutto, Massey, Matthews, Ritchie and Knotts: A BILL TO AMEND SECTION 44-43-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO AGE RESTRICTIONS FOR BLOOD DONORS, SO AS TO PROVIDE A PERSON SIXTEEN YEARS OF AGE MAY DONATE BLOOD WITH THE CONSENT OF HIS PARENT OR GUARDIAN.

Senator HAYES 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.

The Committee on Medical Affairs proposed the following amendment (S-1005 AMENDMENT), which was adopted:

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

/   SECTION   1.   Section 44-43-20 of the 1976 Code, as last amended by Act 334 of 2006, is further amended to read:

"Section 44-43-20.   It is lawful for a person seventeen years old or older to donate his blood without the consent of his parents or guardian. However, it is unlawful for a person under the age of eighteen years to sell his blood without the consent of a parent or guardian. (A)   A person may lawfully donate blood if he is:

(1)   at least seventeen years of age; or

(2)   sixteen years of age and has the written consent of his parent or guardian.

(B)   A person under eighteen years of age may not sell blood."

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

Renumber sections to conform.

Amend title to conform.

Senator HAYES explained the committee amendment.

The committee amendment was adopted.

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

On motion of Senator LOURIE, with unanimous consent, S. 1005 was ordered to receive a third reading on Friday, February 15, 2007.

S. 1005 (Word version) -- Senators Lourie, Scott, Courson, Jackson, Fair, Malloy, Anderson, Campbell, Hutto, Massey, Matthews, Ritchie and Knotts: A BILL TO AMEND SECTION 44-43-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO AGE RESTRICTIONS FOR BLOOD DONORS, SO AS TO PROVIDE A

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

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

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

Senator MARTIN moved to make the Bill a Special Order.

The Bill was made a Special Order.

On motion of Senator McCONNELL, with unanimous consent, the Senate agreed to go into Executive Session prior to adjournment.

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

THE SENATE PROCEEDED TO THE SPECIAL ORDERS.

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

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

Senator HAYES spoke on the Bill.

Senator MARTIN asked unanimous consent to make a motion to take up Amendment No. 2 for immediate consideration.

There was no objection.

Senators RITCHIE, HAYES, LAND, McCONNELL, O'DELL, REESE, FORD, JACKSON, CLEARY, CEIPS, MARTIN, BRYANT, McGILL, FORD, CAMPBELL, SHORT and DRUMMOND proposed the following amendment (398R005.JHR):

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

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

"Section 34-39-175.   (A)   The Consumer Finance Division of the Board of Financial Institutions shall implement a common database with real-time access through an internet connection for deferred presentment providers, as provided in this subsection. The board is authorized to enter into a contract with a single source private vendor to develop and operate the database. The database must be accessible to the board and the deferred presentment providers to verify if deferred presentment transactions are outstanding for a particular person.

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

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

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

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

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

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

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

(C)   The board shall contract with a single third party database provider to establish and operate a deferred presentment transaction database for the purpose of verifying whether a person is eligible to enter into a deferred presentment transaction. The board shall

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

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

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

(G)   The database provider may charge a database verification fee to a licensee for an inquiry as to whether a person is eligible to enter into a deferred presentment transaction, if that transaction is consummated by

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

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

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

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

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

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

'You should use a deferred presentment transaction only for a short-term credit need. If you have a long-term credit need, you should consider a less costly way to borrow money or seek the advice of a nonprofit credit counselor. You may repay this contract through an

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(E)   A check accepted for deferred presentment or deposit pursuant to this chapter may must not be repaid from the proceeds of another

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

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

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

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

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

(2)   engage in the business of:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Renumber sections to conform.

Amend title to conform.

Senator HAYES explained the amendment.

Senator RITCHIE explained the amendment.

At 12:13 P.M., on motion of Senator RITCHIE, the Senate receded from business not to exceed ten minutes.

At 12:25 P.M., the Senate resumed.

Senator RITCHIE explained the amendment.

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

Senator MARTIN moved that the Senate revert to the Motion Period.

There was no objection.

THE SENATE REVERTED TO THE MOTION PERIOD

H. 3567 (Word version) -- Reps. Rice, Gullick, Cotty and Agnew: A BILL TO AMEND SECTION 12-21-620, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TAXATION ON CIGARETTES, SO AS TO INCREASE THE AMOUNT OF TAX ON EACH CIGARETTE FROM THREE AND ONE-HALF MILLS TO TWO CENTS; TO ADD SECTION 44-6-157 SO AS TO PROVIDE THAT THE REVENUE GENERATED FROM THE TAXATION ON CIGARETTES MUST BE USED TO EXPAND MEDICAID COVERAGE TO CHILDREN EIGHTEEN YEARS OF AGE AND YOUNGER WHOSE FAMILY INCOME DOES NOT EXCEED TWO HUNDRED PERCENT OF THE FEDERAL POVERTY LEVEL; AND TO CREATE THE HEALTH CARE TRUST FUND TO PROVIDE MEDICAID BENEFITS TO INDIVIDUALS WHOSE FAMILY INCOME DOES NOT EXCEED ONE HUNDRED PERCENT OF THE FEDERAL POVERTY LEVEL AND WHO ARE UNINSURED AND TO PROVIDE THAT REVENUE IN EXCESS OF THE CHILDREN'S MEDICAID COVERAGE FROM THE CIGARETTE TAX MUST BE CREDITED TO THE HEALTH CARE TRUST FUND; AND TO AMEND SECTION 12-36-910, AS AMENDED, RELATING TO SALES TAXES GENERALLY, SO AS TO PROVIDE THAT AS OF JULY 1, 2009, THE THREE PERCENT SALES TAX IS ELIMINATED ON UNPREPARED FOOD WHICH

Senator LEATHERMAN moved that the deadline to return the Bill to the Senate Calendar for consideration be extended until Wednesday, March 5, 2008.

There was no objection and the deadline to return the Bill to the Senate Calendar for consideration was extended until Wednesday, March 5, 2008.

On motion of Senator McCONNELL, the seal of secrecy was removed, so far as the same relates to appointments made by the Governor and the following names were reported to the Senate in open session:

Having received a favorable report from the Agriculture and Natural Resources Committee, the following appointments were confirmed in open session:

Initial Appointment, Southern Drought Response Committee, with the term to commence March 1, 2006, and to expire March 1, 2010
Public Service Districts:
Oscar P. Black, Sr., 10558 Dorchester Road, Summerville, SC 29484 VICE Steve W. Kinard

Initial Appointment, Northeast Drought Response Committee, with the term to commence March 1, 2004, and to expire March 1, 2008
Agricultural:
Joseph C. Johnson, 900 East Wilson Street, Dillion, SC 29536 VICE James L. McColl

Initial Appointment, South Carolina Mining Council, with the term to commence June 30, 2006, and to expire June 30, 2010
DHEC:
Susan G. Turner, SCDHEC Region 2 EQC 301 University Ridge, Suite 5800, Greenville, SC 29601 VICE Harold S. Snyder

Initial Appointment, Southern Drought Response Committee, with the term to commence March 1, 2008, and to expire March 1, 2012
Commission on Public Works:
Andrew W. Fairey, 821 Robert E. Lee Boulevard, Charleston, SC 29412 VICE John B. Cook

Initial Appointment, South Carolina Mining Council, with the term to commence June 30, 2005, and to expire June 30, 2009
DHEC:
Curtis M. Joyner, 4022 Laurelwood Drive, Charleston, SC 29414 VICE Patrick Walker

Reappointment, Southern Drought Response Committee, with the term to commence March 1, 2008, and to expire March 1, 2012
Soil and Water Conservation Districts:
Marion L. Rizer, 2778 Confederate Highway, Lodge, SC 29082

Having received a favorable report from the Education Committee, the following appointments were confirmed in open session:

Reappointment, South Carolina State Commission on Higher Education, with the term to commence July 1, 2008, and to expire July 1, 2012
At-Large:
Kenneth B. Wingate, 4936 Hillside Road, Columbia, SC 29206

Reappointment, South Carolina Arts Commission, with the term to commence June 30, 2008, and to expire June 30, 2011
At-Large:
Henry Horowitz, 1 Collins Crest Court, Greenville, SC 29601

Reappointment, South Carolina Arts Commission, with the term to commence June 30, 2008, and to expire June 30, 2011
At-Large:
Barbara R. Nwokike, Naval Facilities Engineering Command, South East 4130 Faber Place Drive, Suite 202, North Charleston, SC 29405

Having received a favorable report from the Fish, Game and Forestry Committee, the following appointments were confirmed in open session:

Reappointment, Governing Board of Department of Natural Resources, with the term to commence July 1, 2008, and to expire July 1, 2012
6th Congressional District:
John P. Evans, 8257 Old State Road, Cameron, SC 29030

Reappointment, Governing Board of Department of Natural Resources, with the term to commence July 1, 2008, and to expire July 1, 2012
4th Congressional District:
Norman F. Pulliam, 812 East Main Street, Spartanburg, SC 29302

Having received a favorable report from the Judiciary Committee, the following appointments were confirmed in open session:

Initial Appointment, Chief of the South Carolina Law Enforcement Division, with the term to commence January 31, 2006, and to expire January 31, 2012
Reginald I. Lloyd, 39 Ole Still Lane, Elgin, SC 29045 VICE Robert M. Stewart, Sr.

Having received a favorable report from the Labor, Commerce and Industry Committee, the following appointments were confirmed in open session:

Initial Appointment, Disciplinary Panel for Massage/Bodywork Therapy, with the term to commence June 30, 2007, and to expire June 30, 2009
Therapist:
Lou F. Hastings, 133 Clearview Circle, Travelers Rest, SC 29690

Initial Appointment, Advisory Panel for Massage/Bodywork Therapy, with the term to commence June 30, 2005, and to expire June 30, 2009
Therapist:
Janet W. Shaw, 802 Pinedale Road, West Columbia, SC 29170 VICE Kim Brewer

Initial Appointment, Jobs Economic Development Authority, with the term to commence July 27, 2006, and to expire July 27, 2009
2nd Congressional District:
Roger B. Whaley, 133 Gregg Parkway, Columbia, SC 29206 VICE Peter Brown

Reappointment, South Carolina State Board of Social Work Examiners, with the term to commence November 27, 2006, and to expire November 27, 2010
LISW:
Jane A. Anker, 155 Jefferson Place, Columbia, SC 29212

Initial Appointment, South Carolina Residential Builders Commission, with the term to commence June 30, 2006, and to expire June 30, 2010
6th Congressional District:
Bryan H. Dowd, BHD Builders, Inc., 1931 Osprey Drive, Florence, SC 29501 VICE John C. Curl

Initial Appointment, South Carolina State Housing, Finance and Development Authority, with the term to commence August 15, 2006, and to expire August 15, 2010
At-Large:
Mary L. Thomas, 321 Merrival Lane, Spartanburg, SC 29301 VICE Charles Small

Reappointment, South Carolina Residential Builders Commission, with the term to commence June 30, 2007, and to expire June 30, 2011
3rd Congressional District:
Tim W. Roberts, 2907 Rambling Path, Anderson, SC 29621

Initial Appointment, South Carolina State Housing, Finance and Development Authority, with the term to commence August 15, 2004, and to expire August 15, 2008
At-Large:
John S. Hill, 140 Aspen Trail, Columbia, SC 29206 VICE Samuel W. Howell

Initial Appointment, Advisory Panel for Massage/Bodywork Therapy, with the term to commence June 30, 2005, and to expire June 30, 2009
Therapist:
Charles V. Strickland, 330 Cabrill Drive, Charleston, SC 29414 VICE April D. O'Shields

Reappointment, Jobs Economic Development Authority, with the term to commence July 27, 2006, and to expire July 27, 2009
5th Congressional District:
C. Hampton Atkins, 1502 Jack White Drive, Rock Hill, SC 29732

Initial Appointment, South Carolina Board of Real Estate Appraisers, with the term to commence May 31, 2007, and to expire May 31, 2010
Real Estate Broker:
Ann R. King, 3901 South Breckridge Circle, Florence, SC 29505 VICE Nancy Johnson

Having received a favorable report from the Medical Affairs Committee, the following appointments were confirmed in open session:

Reappointment, South Carolina Advisory Council on Aging, with the term to commence June 30, 2007, and to expire June 30, 2011
At-Large:
Jean R. Bridges, 1101 Saluda Chase, West Columbia, SC 29169

Initial Appointment, Donate Life South Carolina, with the term to commence April 1, 2008, and to expire April 1, 2012
Interested Party:
Pamela J. Farley, 359 Royal Assembly Drive, Charleston, SC 29492 VICE New Seat

Initial Appointment, South Carolina Commission on Disabilities and Special Needs, with the term to commence June 30, 2008, and to expire June 30, 2012
2nd Congressional District:
William F. Bishop, 2501 Fairview Road, Leesville, SC 29070 VICE Mary Katherine Bagnal

Initial Appointment, South Carolina State Board of Examiners in Speech Pathology and Audiology, with the term to commence June 1, 2006, and to expire June 1, 2010
Speech-Language Pathologist:
Sarah E. Hamrick, 20 West Tallulah Drive, Greenville, SC 29605 VICE Elizabeth Dove

Initial Appointment, State Board of Examiners in Speech-Language Pathology and Audiology, with the term to commence June 30, 2008, and to expire June 30, 2012
Audiologist:
Gwendolyn D. Wilson, Ed.D., 2215 Hoffman Dr. Northwest, Orangeburg, SC 29118

Reappointment, South Carolina Mental Health Commission, with the term to commence March 21, 2007, and to expire March 21, 2012
4th Congressional District:
H. Lloyd Howard, Howard Law Firm, P. O. Box 578, Landrum, SC 29356

Initial Appointment, South Carolina Commission on Disabilities and Special Needs, with the term to commence June 30, 2005, and to expire June 30, 2009
3rd Congressional District:
John Michael Powell, 2164 Pickens Highway, West Union, SC 29696 VICE Ronald Forest

On motion of Senators SHEHEEN, SETZLER, LAND, HUTTO, RANKIN, DRUMMOND, SHORT, ANDERSON, ELLIOTT, FORD, JACKSON, LEVENTIS, LOURIE, MALLOY, MATTHEWS, McGILL, PATTERSON, PINCKNEY, REESE and WILLIAMS with unanimous consent, the Senate stood adjourned out of respect to the memory of Mrs. Mary Atkinson Fields, affectionately known as "Miss Mary", 84, of McBee, S.C., loving widow of Mr. James Payton Fields, beloved mother of Mr. James P. Fields, Jr., former Clerk of the Senate and Attorney to the Judiciary Committee, and devoted grandmother.

At 1:35 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 1:53 P.M.