South Carolina General Assembly
108th Session, 1989-1990
Journal of the House of Representatives

Wednesday, May 10, 1989
(Statewide Session)

Indicates Matter Stricken
Indicates New Matter

The House assembled at 10:00 A.M.

Deliberations were opened with prayer by the Chaplain of the House of Representatives, the Rev. Dr. Alton C. Clark as follows:

O God our Heavenly Father, from everlasting to everlasting the same, stamp indelibly upon minds the priceless lessons learned in our yesterdays, that these lessons are to be woven into our todays and our tomorrows. You have made us stewards of many things; make us faithful trustees of our heritage and worthy of the mantle of trust that has fallen upon us. Make of us heralds bearing the bread of unselfish service. Teach us that the world's greatest tranquilizer is the knowledge of work well done. Cover our mistakes with the umbrella of Your forgiving mercy.

We pray in the words of Nehemiah of old: "Now therefore, O God, strengthen my hand".

In our Lord's Name we pray. Amen.

Pursuant to Rule 6.3, the House of Representatives was led in the Pledge of Allegiance to the Flag of the United States of America by the SPEAKER.

After corrections to the Journal of the proceedings of yesterday, the SPEAKER ordered it confirmed.

H. 3388-COMMITTEE OF CONFERENCE APPOINTED

The following was received from the Senate.

MESSAGE FROM THE SENATE

Columbia, S.C., May 4, 1989

Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it refuses to concur in the amendments proposed by the House to H. 3388:
H. 3388 -Ways and Means Committee: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 11-9-135 SO AS TO PROVIDE THAT THE SEPARATELY MAINTAINED HEALTH INSURANCE AND DENTAL INSURANCE ACCOUNTS IN THE STATE TREASURY MAY BE COMMINGLED FOR THE PURPOSES OF PAYING CLAIMS.
Very respectfully,
President

On motion of Rep. McLELLAN, the House insisted upon its amendments.

Whereupon, the Chair appointed Reps. McLELLAN, T. ROGERS, and WINSTEAD to the Committee of Conference on the part of the House and a message was ordered sent to the Senate accordingly.

REPORTS OF STANDING COMMITTEES

Rep. BEASLEY, from the Committee on Education and Public Works, submitted a favorable report, on:

H. 3861 -- Rep. Nesbitt: A BILL TO AMEND SECTION 59-29-120, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO, AMONG OTHER THINGS, THE REQUISITE STUDY OF AND EXAMINATION CONCERNING THE UNITED STATES CONSTITUTION FOR PURPOSES OF GRADUATION FROM HIGH SCHOOL AND COLLEGE, SO AS TO INCLUDE THE DECLARATION OF INDEPENDENCE AND THE FEDERALIST PAPERS.

Ordered for consideration tomorrow.

Rep. BEASLEY, from the Committee on Education and Public Works, submitted a favorable report, on:

S. 445 -- Education Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE BOARD OF EDUCATION, RELATING TO INSTRUCTION AT A PLACE OTHER THAN SCHOOL, DESIGNATED AS REGULATION DOCUMENT NUMBER 1060, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Ordered for consideration tomorrow.

Rep. BEASLEY, from the Committee on Education and Public Works, submitted a favorable report, on:

H. 3329 -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE BOARD OF EDUCATION, RELATING TO INSTRUCTION AT A PLACE OTHER THAN SCHOOL, DESIGNATED AS REGULATION DOCUMENT NUMBER 1060, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Ordered for consideration tomorrow.

Rep. R. BROWN, from the Committee on Labor, Commerce and Industry, submitted a favorable report, with amendments, on:

S. 350 -- Senator Drummond: A BILL TO AMEND TITLE 40, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 29 SO AS TO ENACT THE UNIFORM STANDARDS CODE FOR MANUFACTURED HOUSING; TO AMEND THE 1976 CODE BY ADDING SECTIONS 31-1-40 AND 31-1-50 SO AS TO REQUIRE AN ELECTRICAL PERMIT FOR A CONNECTION TO A MOBILE HOME; AND TO REPEAL ARTICLE 1, CHAPTER 17 OF TITLE 31 RELATING TO MOBILE HOMES AND HOUSE TRAILERS.

Ordered for consideration tomorrow.

Rep. R. BROWN, from the Committee on Labor, Commerce and Industry, submitted a favorable report, on:

H. 3918 -- Reps. Hearn, J.W. Johnson and Lockemy: A BILL TO AMEND SECTION 42-9-400, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MANNER IN WHICH THE EMPLOYER OR INSURANCE CARRIER MUST BE REIMBURSED FROM THE SECOND INJURY FUND WHEN DISABILITY RESULTS FROM PREEXISTING IMPAIRMENT AND SUBSEQUENT INJURY, SO AS TO DELETE THE PROVISION REGARDING UNKNOWN CONDITIONS, AND TO AMEND SECTION 42-9-410, RELATING TO THE MANNER IN WHICH THE EMPLOYER OR CARRIER MAY RECEIVE; ADDITIONAL BENEFITS FROM THE SECOND INJURY FUND, BY DELETING REFERENCES TO UNKNOWN CONDITIONS.

Ordered for consideration tomorrow.

Rep. R. BROWN, from the Committee on Labor, Commerce and Industry, submitted a favorable report, on:

H. 3856 -- Rep. R. Brown: A BILL TO AMEND SECTION 58-5-1030, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CIVIL PENALTIES FOR VIOLATIONS BY GAS UTILITY COMPANIES, SO AS TO INCREASE THEM.

Ordered for consideration tomorrow.

Rep. R. BROWN, from the Committee on Labor, Commerce and Industry, submitted a favorable report, with amendments, on:

H. 3567 - Reps. Boan, McLellan, McElveen, Taylor and Kohn: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 31 TO TITLE 56 SO AS TO PROVIDE FOR THE REGULATION OF THE RENTAL OF PRIVATE PASSENGER AUTOMOBILES BY SETTING FORTH PURPOSES, DEFINITIONS, THE CONTENT OF RENTAL AGREEMENTS, THE LIMITATIONS ON THE ADVERTISING, QUOTING, AND CHARGING OF RENTAL RATES, AND PENALTIES.

Ordered for consideration tomorrow.

Rep. R. BROWN, from the Committee on Labor, Commerce and Industry, submitted a favorable report, with amendments, on:

S. 493 - Senator Leatherman: A BILL TO AMEND SECTION 41-25-20, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS USED IN THE SOUTH CAROLINA PRIVATE PERSONNEL PLACEMENT SERVICES ACT, SO AS TO EXPAND THE DEFINITIONS OF "PRIVATE PERSONNEL PLACEMENT SERVICE" AND "PLACEMENT FEE" TO INCLUDE THE DESCRIPTION OF ACTIVITIES WHICH WOULD BE SUBJECT TO THE PROVISIONS OF CHAPTER 25 OF TITLE 41 (PRIVATE PERSONNEL PLACEMENT SERVICES ACT).

Ordered for consideration tomorrow.

Rep. R. BROWN, from the Committee on Labor, Commerce and Industry, submitted a favorable report, on:

S. 688 -- General Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE ATHLETIC COMMISSION, RELATING TO BOXING, KICK-BOXING, WRESTLING AND CLOSED CIRCUIT TELEVISION, DESIGNATED AS REGULATION DOCUMENT NUMBER 1121, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Ordered for consideration tomorrow.

Rep. R. BROWN, from the Committee on Labor, Commerce and Industry, submitted a favorable report, on:

H. 3443 -- Reps. Derrick, Cork, T.M. Burriss and Taylor: A BILL TO AMEND SECTION 34-3-350, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REPORT OF THE EXAMINATION OF A BANK BY THE STATE BOARD OF FINANCIAL INSTITUTIONS, SO AS TO INCREASE FROM THIRTY TO NINETY DAYS THE TIME A BANK SHALL REVIEW THE REPORT.

Ordered for consideration tomorrow.

Rep. R. BROWN, from the Committee on Labor, Commerce and Industry, submitted a favorable report, on:

S. 642 -- Senator Lindsay: A BILL TO AMEND SECTION 12-19-95, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO FEES OF BANK HOLDING COMPANIES AND SAVINGS AND LOAN HOLDING COMPANIES, SO AS TO PROVIDE THAT CORPORATE LICENSE FEES PAID BY INSURANCE HOLDING COMPANY SYSTEMS MUST BE MEASURED IN THE SAME MANNER THAT CORPORATE LICENSE FEES FOR BANK HOLDING COMPANIES AND SAVINGS AND LOAN HOLDING COMPANIES ARE MEASURED AND TO DEFINE "INSURER", "INSURANCE HOLDING COMPANY SYSTEM", AND "SUBSIDIARY" OF AN INSURANCE HOLDING COMPANY SYSTEM.

Ordered for consideration tomorrow.

Rep. R. BROWN, from the Committee on Labor, Commerce and Industry, submitted a favorable report, with amendments, on:

S. 643 -- Senator Lindsay: A BILL TO AMEND SECTIONS 37-2-416 AND 37-3-408, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CHANGE IN TERMS OF REVOLVING CHARGE AND LOAN ACCOUNTS, SO AS TO DELETE THE REQUIREMENT THAT A CONSUMER INCURS ADDITIONAL DEBT AFTER NOTIFICATION OF A CHANGE IN TERMS, AND REQUIRE THE WRITTEN DISCLOSURE OF A CHANGE IN TERMS TO STATE THAT IF THE CONSUMER DOES NOT WANT TO CONTINUE THE REVOLVING ACCOUNT UNDER THE NEW TERMS THE CREDITOR WILL TERMINATE THE ACCOUNT AND PERMIT THE CONSUMER TO PAY THE EXISTING BALANCE UPON THE TERMS IN EFFECT BEFORE THE CHANGE IN TERMS ON THE WRITTEN REQUEST OF THE CONSUMER.

Ordered for consideration tomorrow.

Rep. R. BROWN, from the Committee on Labor, Commerce and Industry, submitted a favorable report, with amendments, on:

S. 503 -- Senators Land, Moore, Lourie, McLeod, Lindsay, Thomas, Bryan, Mitchell, Patterson, Pope and Hayes: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 28 TO TITLE 56 SO AS TO PROVIDE FOR THE ENFORCEMENT OF MOTOR VEHICLE EXPRESS WARRANTIES.

Ordered for consideration tomorrow.

Rep. R. BROWN, from the Committee on Labor, Commerce and Industry, submitted a favorable report, on:

S. 482 -- Senator Lee: A BILL TO AMEND SECTION 38-43-20, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO WHEN LICENSES OF INSURANCE AGENTS ARE NOT REQUIRED, SO AS TO PROVIDE THAT CERTAIN AGENCY OFFICE EMPLOYEES ARE NOT REQUIRED TO BE LICENSED.

Ordered for consideration tomorrow.

Rep. WILKINS, from the Committee on Judiciary, submitted a favorable report, on:

S. 289 -- Senator Courson: A BILL TO AMEND SECTION 20-7-780, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CONFIDENTIALITY PROVISIONS AND PROCEDURES INVOLVING JUVENILE RECORDS AND INFORMATION, SO AS TO DELETE THE PROHIBITION AGAINST TAKING FINGERPRINTS OF A CHILD WITHOUT AN ORDER FROM THE FAMILY COURT.

Ordered for consideration tomorrow.

Rep. WILKINS, from the Committee on Judiciary, submitted a favorable report, on:

S. 671 -- Senators Lourie, Passailaigue, Wilson, Leatherman, Fielding, McGill, Waddell, Courson, Long and Rose: A BILL TO AMEND SECTION 7-9-100, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO STATE CONVENTIONS OF POLITICAL PARTIES, SO AS TO CHANGE TIMES WHEN THE CONVENTIONS MUST BE HELD.

Ordered for consideration tomorrow.

Rep. WILKINS, from the Committee on Judiciary, submitted a favorable report, on:

S. 373 -- Senators Holland, Wilson, Matthews and Moore: A BILL TO AMEND SECTION 7-13-325, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE NAME OF A CANDIDATE WHICH MAY APPEAR ON AN ELECTION BALLOT, SO AS TO PROVIDE THAT IF A DERIVATIVE NAME OR NICKNAME IS TO BE USED, THE AUTHORITY RESPONSIBLE BY LAW FOR CONDUCTING THE ELECTION MUST BE NOTIFIED IN WRITING.

Ordered for consideration tomorrow.

Rep. WILKINS, from the Committee on Judiciary, submitted a favorable report, on:

H. 3931 - Reps. Cole, Ferguson, Lanford, Littlejohn, Bruce and Wells: A BILL TO AMEND SECTION 29-3-780, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ENTRY OF RELEASE OF MORTGAGE ON LAND SOLD IN A FORECLOSURE SALE, SO AS TO DELETE CERTAIN LANGUAGE AND PROVISIONS AND TO REQUIRE THE OFFICER OF THE COURT MAKING THE SALE TO CAUSE TO BE RECORDED IN THE OFFICE WHERE THE FORECLOSED MORTGAGE IS RECORDED A RELEASE, CANCELLATION, AND SATISFACTION OF THE LIEN IN THE PRESCRIBED FORM; TO AMEND SECTION 29-3-790, RELATING TO MORTGAGES AND DEEDS OF TRUST, FORECLOSURE, AND THE FORM OF RELEASE OF THE LIEN, SO AS TO DELETE CERTAIN LANGUAGE AND PROVISIONS AND TO PROVIDE THAT THE RELEASE, CANCELLATION, AND SATISFACTION OF LIEN REQUIRED UNDER SECTION 29-3-780 MUST BE MADE IN WRITING AND SIGNED BY THE OFFICER AND MUST BE SET FORTH IN A SPECIFIED FORM; AND TO REPEAL SECTION 45-97.1, CODE OF LAWS OF SOUTH CAROLINA, 1962, RELATING TO THE PROVISION OF LAW THAT SECTION 45-97 OF THE 1962 CODE (THE MARKING OF SATISFACTION OF FORECLOSED MORTGAGES) DOES NOT APPLY IN SPARTANBURG COUNTY.

Ordered for consideration tomorrow.

Rep. WILKINS, from the Committee on Judiciary, submitted a favorable report, with amendments, on:

S. 259 -- Judiciary Committee: A BILL TO AMEND SECTIONS 7-15-130, 7-15-320, AS AMENDED, AND 7-15-330, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ABSENTEE VOTING, SO AS TO PROVIDE A PROCEDURE ALLOWING ABSENTEE VOTING BY A PERSON WHO IS ADMITTED TO A HOSPITAL AS AN EMERGENCY PATIENT ON THE DAY OF AN ELECTION OR ON THE DAY BEFORE THE ELECTION AND TO PROVIDE THAT AN APPLICATION MAY BE OBTAINED FROM AN EXTENSION OFFICE OF THE REGISTRATION BOARD.

Ordered for consideration tomorrow.

Rep. WILKINS, from the Committee on Judiciary, submitted a favorable report, with amendments, on:

H. 3619 -- Reps. Wright, Hearn, Quinn, Lanford, Littlejohn, Wofford, Vaughn and Jaskwhich: A BILL TO AMEND SECTIONS 7-13-430 AND 7-13-620, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE NUMBER OF BALLOTS REQUIRED TO BE PROVIDED AT VOTING PRECINCTS IN GENERAL AND PRIMARY ELECTIONS, SO AS TO REQUIRE POLL MANAGERS TO PROVIDE BALLOTS MADE AS NEARLY AS POSSIBLE IN THE FORM OF OFFICIAL BALLOTS IF SUFFICIENT OFFICIAL BALLOTS ARE NOT PROVIDED AND TO MAKE FAILURE TO PROVIDE SUCH BALLOTS WHEN NECESSARY A CRIMINAL OFFENSE PUNISHABLE AS WILFUL NEGLECT OR CORRUPT CONDUCT OF A POLL MANAGER.

Ordered for consideration tomorrow.

Rep. BENNETT, from the Committee on Agriculture and Natural Resources, submitted a favorable report, with amendments, on:

H. 3299 -- Reps. M.O. Alexander, G. Bailey, T.C. Alexander, McLellan, Mattos, R. Brown, Fant and Manly: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 44-53-50 SO AS TO PROHIBIT THE SALE OF CLEANING AGENTS CONTAINING PHOSPHATES, TO PROVIDE EXCEPTIONS, AND TO PROVIDE PENALTIES FOR VIOLATION.

Ordered for consideration tomorrow.

Rep. BENNETT, from the Committee on Agriculture and Natural Resources, submitted a favorable report, and Rep. KOON, for the minority, submitted an unfavorable report, on:

H. 3820 -- Reps. Short, Ferguson, Phillips, Hayes, Littlejohn, Wells, Farr, Nesbitt, McGinnis, Kirsh, Hodges, Lanford and Cole: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 50-11-704 SO AS TO MAKE IT UNLAWFUL TO USE ARTIFICIAL LIGHTS FROM ANY VEHICLE OR WATER CONVEYANCE FOR THE PURPOSE OF OBSERVING OR HARASSING WILDLIFE IN GAME ZONE NO. 4 AND TO PROVIDE A PENALTY FOR VIOLATIONS.

Ordered for consideration tomorrow.

Rep. BENNETT, from the Committee on Agriculture and Natural Resources, submitted a favorable report, with amendments, on:

S. 267 -- Senator McLeod: A BILL TO AMEND TITLE 44, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 95 SO AS TO PROVIDE FOR THE MANAGEMENT OF INFECTIOUS WASTE; TO AMEND SECTION 51, PART II OF ACT 658 OF 1988, RELATING TO THE COMMERCIAL DISPOSAL OF INFECTIOUS WASTE BY INCINERATION, SO AS TO PROVIDE FOR THE TREATMENT OF INFECTIOUS WASTE INSTEAD OF COMMERCIAL DISPOSAL.

Ordered for consideration tomorrow.

CONCURRENT RESOLUTION

The following was introduced:

H. 4009 -- Rep. Corning: A CONCURRENT RESOLUTION CONGRATULATING MS. SUZANNE FIELDS ON BEING SELECTED AS A "TEACHER OF THE YEAR" BY THE RICHLAND DISTRICT TWO SCHOOLS.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

CONCURRENT RESOLUTION

The following was introduced:

H. 4010 -- Rep. Corning: A CONCURRENT RESOLUTION CONGRATULATING MS. BETH ELLIOTT ON BEING SELECTED AS A "TEACHER OF THE YEAR" BY THE RICHLAND DISTRICT TWO SCHOOLS.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

CONCURRENT RESOLUTION

The following was introduced:

H. 4011 -- Rep. Corning: A CONCURRENT RESOLUTION CONGRATULATING MS. CONNIE MILLER ON BEING SELECTED AS A "TEACHER OF THE YEAR" BY THE RICHLAND DISTRICT TWO SCHOOLS.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

CONCURRENT RESOLUTION

The following was introduced:

H. 4012 -- Rep. Corning: A CONCURRENT RESOLUTION CONGRATULATING MS. CLELIA MOORE ON BEING SELECTED AS A "TEACHER OF THE YEAR" BY THE RICHLAND DISTRICT TWO SCHOOLS.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

CONCURRENT RESOLUTION

The following was introduced:

H. 4013 -- Rep. Corning: A CONCURRENT RESOLUTION CONGRATULATING MS. LORRAINE CONRAD ON BEING SELECTED AS A "TEACHER OF THE YEAR" BY THE RICHLAND DISTRICT TWO SCHOOLS.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

CONCURRENT RESOLUTION

The following was introduced:

H. 4014 -- Rep. Corning: A CONCURRENT RESOLUTION CONGRATULATING MS. ANNE MARTIN ON BEING SELECTED AS A "TEACHER OF THE YEAR" BY THE RICHLAND DISTRICT TWO SCHOOLS.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

CONCURRENT RESOLUTION

The following was introduced:

H. 4015 -- Rep. Corning: A CONCURRENT RESOLUTION CONGRATULATING MS. DEBI LEGRAND ON BEING SELECTED AS A "TEACHER OF THE YEAR" BY THE RICHLAND DISTRICT TWO SCHOOLS.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

CONCURRENT RESOLUTION

The following was introduced:

H. 4016 -- Rep. Corning: A CONCURRENT RESOLUTION CONGRATULATING MS. PAULA WILSON ON BEING SELECTED AS A "TEACHER OF THE YEAR" BY THE RICHLAND DISTRICT TWO SCHOOLS.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

CONCURRENT RESOLUTION

The following was introduced:

H. 4017 -- Rep. Corning: A CONCURRENT RESOLUTION CONGRATULATING MS. DELPHIA GILES ON BEING SELECTED AS A "TEACHER OF THE YEAR" BY THE RICHLAND DISTRICT TWO SCHOOLS.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

CONCURRENT RESOLUTION

The following was introduced:

H. 4018 -- Rep. Wofford: A CONCURRENT RESOLUTION TO CREATE A COMMITTEE TO STUDY THE METHOD OF OPERATION OF THE DEPARTMENT OF CORRECTIONS AND TO MAKE RECOMMENDATIONS TO IMPROVE ITS OPERATION.

The Concurrent Resolution was ordered referred to the Committee on Medical, Military, Public and Municipal Affairs.

CONCURRENT RESOLUTION

The following was introduced:

H. 4019 -- Reps. Keesley, G. Bailey and Harwell: A CONCURRENT RESOLUTION TO CONGRATULATE THE SOUTH CAROLINA JAYCEES ON BEING RECOGNIZED AS THE NUMBER ONE STATE JAYCEE ORGANIZATION IN AMERICA FOR THE SECOND CONSECUTIVE YEAR.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

CONCURRENT RESOLUTION

The Senate sent to the House the following:

S. 766 -- Senator Drummond: A CONCURRENT RESOLUTION TO JOIN IN THE CENTENNIAL CELEBRATION OF GREENWOOD MILLS, INC., TO RECOGNIZE ITS MANY CONTRIBUTIONS TO THE ADVANCEMENT AND HAPPINESS OF ITS EMPLOYEES, THE PROSPERITY OF THE COMMUNITIES IN WHICH IT OPERATES, AND THE ECONOMIC WELL-BEING OF SOUTH CAROLINA, AND TO EXPRESS GRATITUDE TO JAMES C. SELF FOR HIS REMARKABLE ACCOMPLISHMENTS, LEADERSHIP, AND HIS GOOD CITIZENSHIP.

Whereas, Greenwood Mills, Inc., is a family-owned company with deep roots in the Piedmont Region of South Carolina; and

Whereas, it was chartered in 1889 and began its operation in Greenwood as a single struggling cotton mill with seventy-five employees; and

Whereas, under the leadership of its owners, the Self family, it has grown to a giant in the textile industry with twenty plants in South Carolina, Georgia, and Tennessee, employing six thousand people; and

Whereas, Greenwood produces a multiplicity of fabric styles from cotton, polyester blends, and synthetic filament yarns. The product line includes denims, poplins, fine-count batistes rainwear fabrics, print cloth, broadcloth, corduroy, chambrays, twills, sheetings, lawns, organdy, and rip stop; and

Whereas, Greenwood's fabrics are sold to world markets from the New York sales organization, Greenwood Marketing Company, whose offices are completely computerized and, linked with branch offices in key U.S.A. locations and one in London, England; and

Whereas, since 1908, when the late James C. Self became president, Greenwood Mills has operated with the business philosophy that in the production of quality fabrics, "people are more important than anything else" and for nearly one hundred years the company has been blessed with employees, who take pride in their work and in their communities; and

Whereas, much of the exceptional success of Greenwood Mills must be attributed to James C. Self, who succeeded his father as president and who has been succeeded by his sons, James C. Self, Jr., and the present President William Mathews "Mat" Self; and

Whereas, James Cuthbert Self, who now serves as Chairman of the Executive Committee of the enterprise, was born in Greenwood, attended Greenwood public schools and graduated from the Citadel with a B.S. degree in Business Administration, 1941, and served in the Coast Artillery from 1941 to 1946, and was honorably discharged as Major; and

Whereas, he married the late Virginia Turner Self in 1941 and they were the parents of two sons previously mentioned, and two daughters, Virginia Self Brennan and Dr. Sally Self (Harley} and eleven grandchildren, and recently he married the former Loutrelle Cawthon Jones; and

Whereas, he is President and trustee of The Self Foundation a Life Trustee of Clemson University; and is also trustee to many other organizations such as The Duke Endowment, the J. E. Sirrine Textile Foundation, the University of South Carolina Business Partnership Foundation, and the ETV Endowment of South Carolina; he is also the Director of the Duke Power Company in Charlotte, North Carolina, and Director of The Citadel Development Foundation he is a member of the American Textile Manufacturers Institute, the South Carolina Textile Manufacturers Association, Greenwood Rotary Club, Greenwood Chamber of Commerce, and Main Street United Methodist Church; and

Whereas, Mr. Self was formerly a member of the State Development Board in Columbia, South Carolina, a trustee of California Institute of Technology in Pasadena, California, and a member of the South Carolina Insurance Commission; and

Whereas, he has received the following honorary doctorates: Doctor of Laws, The Citadel, Charleston, 1961; Doctor of Industry, Lander College, Greenwood, 1964; Doctor of Laws, University of South Carolina, Columbia, 1973; Doctor of Humanities, Erskine College, Due West, 1975; Doctor of Humane Letters, Medical University of South Carolina, Charleston, 1984; and

Whereas, while earning all these well-deserved prominent offices, memberships, and accolades, James C. Self has remained the outstanding citizen and good friend and neighbor which has won him the love and respect of all his associates; and

Whereas, the management of Greenwood Mills is extremely proud of all its people, who are good citizens taking active parts in religious, civic, and volunteer organizations in their respective communities; and

Whereas, Greenwood Mills, Inc., is a superlative corporate citizen in its plant communities and in the State, paying more than $2.5 million each year in property taxes in South Carolina; and

Whereas, on October 5, 1989, Greenwood Mills will celebrate one hundred years in the textile industry where it is recognized as a leader in the industry and has earned the reputation for producing fabrics "with the Character of Quality"; and

Whereas, as Greenwood Mills moves into its centennial year, the General Assembly is assured it will continue to utilize the best people and the most modern technology to manufacture and market fabrics with international appeal and continue to bring pride to its employees, communities, and the State of South Carolina. Now, therefore,

Be it resolved by the Senate, the House of Representatives concurring:

That the General Assembly joins in the centennial celebration of Greenwood Mills, Inc., and recognizes its many contributions to the advancement and happiness of its employees, the prosperity of the communities in which it operates, and the economic well-being of South Carolina, and expresses gratitude to James C. Self for his remarkable accomplishments, his superior leadership, and his good citizenship.

Be it further resolved that copies of this resolution be presented to James C. Self, James C. Self, Jr., William Mathews "Mat" Self, and Bill Whaley.

The Concurrent Resolution was agreed to and ordered returned to the Senate with concurrence.

CONCURRENT RESOLUTION

The Senate sent to the House the following:

S. 767 -- Senators Shealy, Moore and Setzler: A CONCURRENT RESOLUTION TO RECOGNIZE MS. CAROL W. GARVIN OF AIKEN UPON HER INSTALLATION AS PRESIDENT OF THE NATIONAL MENTAL HEALTH ASSOCIATION AT THE ANNUAL MEETING IN HARTFORD, CONNECTICUT, IN NOVEMBER, 1988.

The Concurrent Resolution was agreed to and ordered returned to the Senate with concurrence.

INTRODUCTION OF BILLS

The following Bills and Joint Resolutions were introduced, read the first time, and referred to appropriate committees:

H. 4020 -- Labor, Commerce and Industry Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA, RELATING TO WATER UTILITIES, DESIGNATED AS REGULATION DOCUMENT NUMBER 1107, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Without reference.

H. 4021 -- Labor, Commerce and Industry Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA, RELATING TO SEWERAGE UTILITIES, DESIGNATED AS REGULATION DOCUMENT NUMBER 1106, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Without reference.

H. 4022 -- Labor, Commerce and Industry Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA, RELATING TO TELECOMMUNICATIONS UTILITIES, DESIGNATED AS REGULATION DOCUMENT NUMBER 1085, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Without reference.

H. 4023 -- Labor, Commerce and Industry Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA, RELATING TO PRACTICE AND PROCEDURE, DESIGNATED AS REGULATION DOCUMENT NUMBER 1083, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Without reference.

H. 4024 -- Labor, Commerce and Industry Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF INSURANCE, RELATING TO GROUP HEALTH INSURANCE COORDINATION OF BENEFITS, DESIGNATED AS REGULATION DOCUMENT NUMBER 1072, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Without reference.

H. 4025 -- Rep. Taylor: A BILL TO AUTHORIZE THE SECRETARY OF STATE TO RESTORE THE CHARTER OF VERNA ENTERPRISES, INC., IN RICHLAND COUNTY.

On motion of Rep. TAYLOR, with unanimous consent, the Bill was ordered placed on the Calendar without reference.

H. 4020 -- Reps. Townsend, Kay, Tucker, Cooper, P. Harris and Chamblee: A BILL TO AMEND ACT 510 OF 1982, RELATING TO THE ANDERSON COUNTY BOARD OF EDUCATION, SO AS TO INCREASE THE MEMBERSHIP FROM SEVEN TO NINE PERSONS, TO PROVIDE FOR THE MANNER OF ELECTION OF THE BOARD MEMBERS, TO DELETE THE PROVISION THAT ALL MEMBERS BE ELECTED COUNTYWIDE, TO PROVIDE FOR THE EXPIRATION OF THE TERMS OF THE CURRENT MEMBERS, AND TO PROVIDE FOR THE INITIAL TERMS OF THE NEW BOARD ELECTED IN 1990.

On motion of Rep. TOWNSEND, with unanimous consent, the Bill was ordered placed on the Calendar without reference.

H. 4027 -- Rep. Sheheen: A BILL TO AMEND ACT 930 OF 1970, AS AMENDED, RELATING TO SCHOOL TRUSTEES OF KERSHAW COUNTY, SO AS TO CHANGE THE DEADLINE TIME PERIOD FOR HAVING AN AUDIT PREPARED FROM NOT MORE THAN NINETY DAYS FROM THE END OF EACH FISCAL YEAR TO DECEMBER FIRST, FOLLOWING THE END OF EACH FISCAL YEAR.

On motion of Rep. SHEHEEN, with unanimous consent, the Bill was ordered placed on the Calendar without reference.

ROLL CALL

The roll call of the House of Representatives was taken resulting as follows.

Alexander, T.C.        Altman                 Bailey, J.
Bailey, K.             Baker                  Barber
Barfield               Baxley                 Beasley
Bennett                Blackwell              Blanding
Boan                   Brown, G.              Brown, H.
Brown, R.              Bruce                  Burch
Chamblee               Clyborne               Cole
Cooper                 Corbett                Cork
Corning                Davenport              Derrick
Elliott                Faber                  Fair
Fant                   Farr                   Felder
Ferguson               Foster                 Glover
Gordon                 Hallman                Harris, J.
Harris, P.             Harwell                Haskins
Hayes                  Hendricks              Hodges
Holt                   Huff                   Jaskwhich
Johnson, J.W.          Kay                    Keegan
Keesley                Keyserling             Kirsh
Klapman                Kohn                   Koon
Lanford                Limehouse              Littlejohn
Manly                  Mappus                 Martin, L.
Mattos                 McAbee                 McBride
McCain                 McEachin               McGinnis
McKay                  McLellan               McLeod
Moss                   Neilson                Nesbitt
Nettles                Phillips               Quinn
Rama                   Rhoad                  Rogers, J.
Rogers, T.             Rudnick                Sharpe
Sheheen                Simpson                Smith
Stoddard               Sturkie                Taylor
Townsend               Tucker                 Vaughn
Waites                 Waldrop                Washington
Wells                  Whipper                White
Wilder                 Wilkes                 Wilkins
Williams, D.           Williams, J.           Winstead
Wofford                Wright

STATEMENT OF ATTENDANCE

I came in after the roll call and was present for the Session on May 10, 1989.

M.O. Alexander                    Doug McTeer
John Snow                         Joe E. Brown
Joseph McElveen                   Alex Harvin, III
James C. Johnson                  George Bailey
Jack Gregory
Total Present-116

STATEMENT OF ATTENDANCE

Rep. McELVEEN signed a statement with the Clerk that he came in after the roll call of the House and was present for the Session on Tuesday, May 9, 1989.

DOCTOR OF THE DAY

Announcement was made that Dr. Harrison Peeples of Scotia (Hampton County) is the Doctor of the Day for the General Assembly.

SENT TO THE SENATE

The following Bills and Joint Resolutions were taken up, read the third time, and ordered sent to the Senate.

H. 3958 -- Agriculture and Natural Resources Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO SHELLFISH, DESIGNATED AS REGULATION DOCUMENT NUMBER 916, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

H. 3960 -- Ways and Means Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE TAX COMMISSION, RELATING TO PROPERTY TAX: GENERAL REQUIREMENTS FOR RATIO STUDY, DESIGNATED AS REGULATION DOCUMENT NUMBER 1002, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

H. 3961 -- Ways and Means Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE TAX COMMISSION, RELATING TO LICENSE TAX - MOTOR FUEL, DESIGNATED AS REGULATION DOCUMENT NUMBER 1003, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

H. 3689 -- Reps. Hearn, Wilder and Baxley: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 21 TO CHAPTER 7, TITLE 44 SO AS TO PROVIDE FOR THE INFANTS AND TODDLERS WITH HANDICAPPING CONDITIONS ACT BY SETTING FORTH DEFINITIONS, MEMBERS AND REQUIREMENTS OF A STATE INTERAGENCY COORDINATING COUNCIL, RESPONSIBILITIES OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL INCLUDING A COMPREHENSIVE INTERAGENCY SYSTEM, REQUIREMENTS OF AN INDIVIDUALIZED FAMILY SERVICE PLAN, CHARGES FOR EARLY INTERVENTION SERVICES, FINANCIAL RESOURCES, AND EVALUATION OF THE COMPREHENSIVE SERVICE SYSTEM.

H. 3641 -- Reps. Wilkins, Huff and McElveen: A BILL TO AMEND SECTION 20-7-650, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DUTIES OF LOCAL CHILD PROTECTIVE AGENCIES, SO AS TO PROVIDE FOR A PETITION TO BE FILED WITH INSTEAD OF NOTICE TO THE FAMILY COURT WHEN AN AGENCY INITIATES PROTECTIVE SERVICES.

H. 3793 -- Reps. Hearn, Wilder and Baxley: A BILL TO AMEND SECTIONS 10-5-230 AND 10-5-240, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA BOARD FOR BARRIER-FREE DESIGN, SO AS TO FURTHER PROVIDE FOR THE MEMBERSHIP AND OFFICERS OF THE BOARD, TO AMEND SECTION 10-5-260, RELATING TO BARRIER-FREE STANDARDS OF PUBLIC BUILDINGS, SO AS TO PROVIDE THAT THE OWNER OF A BUILDING REQUIRED TO HAVE BARRIER-FREE ELEMENTS OR COMPONENTS SHALL MAINTAIN THESE ELEMENTS OR COMPONENTS IN A SAFE AND USABLE CONDITION; TO AMEND SECTION 10-5-270, RELATING TO THE WAIVER OR MODIFICATION OF BARRIER-FREE STANDARDS, SO AS TO FURTHER PROVIDE FOR THE ENFORCEMENT, MODIFICATION, AND WAIVER OF THESE STANDARDS AND SPECIFICATIONS, AND TO REQUIRE LOCAL BUILDING BOARDS OF ADJUSTMENT APPEALS TO HAVE CERTAIN MEMBERS; TO AMEND SECTION 10-5-273, RELATING TO AN EXCEPTION TO THESE STANDARDS FOR BUILDINGS OF A CERTAIN SIZE SO AS TO REVISE THIS EXCEPTION; TO AMEND SECTION 10-5-290, RELATING TO ACTIONS FOR VIOLATION OF REGULATIONS CONCERNING BARRIER-FREE PROVISIONS, SO AS TO FURTHER PROVIDE FOR THE REGULATIONS WHICH GIVE RISE TO THESE ACTIONS; TO AMEND SECTION 10-5-300, RELATING TO THE ENFORCEMENT OF BARRIER-FREE STANDARDS, SO AS TO FURTHER PROVIDE FOR THIS ENFORCEMENT; TO AMEND SECTION 10-5-310, RELATING TO PENALTIES FOR FAILING TO COMPLY WITH BARRIER-FREE STANDARDS, SO AS TO PROVIDE FOR ADDITIONAL ACTS WHICH SUBJECT A PERSON PERFORMING OR FAILING TO PERFORM THEM TO THESE PENALTY PROVISIONS; AND TO AMEND SECTION 10-5-320, RELATING TO SUITS FOR INJUNCTION FOR NONCOMPLIANCE WITH BARRIER-FREE STANDARDS, SO AS TO FURTHER PROVIDE FOR THOSE PERSONS AUTHORIZED TO SEEK THIS INJUNCTIVE RELIEF.

H. 3666--AMENDED AND SENT TO THE SENATE

The following Bill was taken up.

H. 3666 -- Rep. J. Harris: A BILL TO AMEND SECTION 12-7-1220, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO JOBS TAX CREDIT, SO AS TO FURTHER PROVIDE FOR THIS CREDIT AND FOR THE ENTITIES AND AREAS THAT QUALIFY FOR THIS CREDIT, PROVIDE THAT THE CREDIT ALSO APPLIES TO INSURANCE PREMIUM TAXES, AND PROVIDE FOR DEFINITIONS TO BE USED FOR PURPOSES OF THIS CREDIT.

Rep. McABEE, with unanimous consent, proposed the following Amendment No. 2 (Doc. No. 4504U), which was adopted.

Amend the bill, as and if amended, in Section 12-7-1220 of the 1978 Code, as contained in SECTION 1, by striking subsection (G) and inserting:

/(G) Any credit claimed under this section but not used in any taxable year may be carried forward for ten years from the close of the tax year in which the qualified jobs were established credit is earned by the corporation but the credit established by this section taken in any one tax year must be limited to an amount not greater than fifty percent of the taxpayer's state corporate income tax or premium tax liability which is attributable to income or premiums derived from operations in the State for that year./

Amend the bill further, as and if amended, in Section 12-7-1220 of the 1976 Code, as contained in SECTION 1, by striking item (5) of subsection (H) and inserting:

/(5) 'Processing facility' means an establishment engaged in services such as manufacturing-related, computer-related, communications-related, energy-related, or transportation-related services but the term 'processing facility' does not include an establishment where retail merchandise or retail services are sold directly to retail customers./

Amend title to conform.

Rep. McABEE explained the amendment.

The amendment was then adopted.

The Bill, as amended, was read the third time and ordered sent to the Senate.

RETURNED TO THE SENATE WITH AMENDMENT

The following Bills were taken up, read the third time, and ordered returned to the Senate with amendments.

S. 414 -- Senators J. Verne Smith, Bryan, Courson, Drummond, Giese, Helmly, Hinds, Hinson, Holland, Leatherman, Long, Lourie, Macaulay, Moore, O'Dell, Pope, Saleeby, Setzler, Stilwell, Wilson, Rose, Horace C. Smith, Martschink, Mullinex, Leventis, McGill, Nell W. Smith and Hayes: A BILL TO AMEND CHAPTER 7 OF TITLE 32, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PRENEED BURIAL CONTRACTS, SO AS TO CHANGE THE NAME OF THE CONTRACTS AUTHORIZED UNDER THE CHAPTER TO PRENEED FUNERAL CONTRACTS, TO DEFINE THE TERMS "SELLER", "PROVIDER", "PURCHASER", AND "BENEFICIARY", TO PROVIDE AN EXEMPTION FOR MAUSOLEUM CRYPTS FROM THE REQUIREMENT THAT PAYMENTS OF MONEY WHICH HAVE THE PURPOSE OF FURNISHING FUNERAL SERVICES MUST BE HELD IN TRUST FUNDS, TO REQUIRE THAT ALL TAXES ON THE TRUST ACCOUNT MUST BE PAID IN ACCORDANCE WITH THE INTERNAL REVENUE CODE AND APPLICABLE RULES AND REGULATIONS, TO PROVIDE FOR A FUNERAL CONTRACT WHEN THE FULL CONTRACT PRICE AMOUNT IS PAID TO THE PROVIDER, TO REQUIRE THAT THE FUNDS HELD BY A FINANCIAL INSTITUTION IN TRUST FOR A BENEFICIARY MUST NOT BE PAID UNTIL A DEATH CERTIFICATE IS FURNISHED BY THE PROVIDER, TO PROVIDE FOR THE REFUND OF AMOUNTS DEPOSITED WITH THE PROVIDER WHEN THEY DO NOT CONSTITUTE PAYMENT IN FULL, TO PROVIDE THAT ALL CONTRACTS CONTAIN THE NAME AND FUNERAL SERVICE LICENSE NUMBER OF THE PROVIDER AND SELLER, TO PROVIDE FOR A PROCEDURE FOR ESTABLISHING A TRUST FOR THE PURCHASER OF A CONTRACT AND ESTABLISH REQUIREMENTS WITH REGARD TO THE ESTABLISHMENT AND MAINTENANCE OF A TRUST ACCOUNT, TO PROVIDE THAT THE CONTRACT IS VOIDABLE IF THE PURCHASER FAILS TO MAKE PAYMENTS AS PROVIDED IN THE CONTRACT, TO PROVIDE THAT IF THE MERCHANDISE SELECTED IF NOT AVAILABLE AT THE TIME OF NEED THAT THE PROVIDER MUST MAKE AVAILABLE TO THE PURCHASER MERCHANDISE OF EQUAL OR GREATER VALUE WHICH MUST BE APPROVED BY THE PURCHASER OR HIS REPRESENTATIVE, TO PROVIDE UNDER WHAT CONDITIONS CONTRACTS MAY BE MADE IRREVOCABLE, TO PROVIDE FOR A PROCEDURE FOR THE REFUND OF MONIES PAID FOR A CONTRACT, TO PROVIDE A PROCEDURE FOR THE TRANSFER TO ANOTHER PROVIDER OF A CONTRACT, TO DELETE PROVISIONS WITH REGARD TO THE MANNER IN WHICH TRUST FUNDS MUST BE ESTABLISHED AND MAINTAINED, TO PROVIDE FOR THE OCCURRENCE OF A PROVIDER GOING OUT OF BUSINESS, TO AUTHORIZE THE BOARD OF FINANCIAL INSTITUTIONS TO ESTABLISH AN AMOUNT RATHER THAN A TWO DOLLAR SERVICE CHARGE TO BE COLLECTED FROM EACH PURCHASER TO BE USED IN ADMINISTERING THE PROVISIONS OF THIS CHAPTER, TO DELETE PROVISIONS MAKING IT UNLAWFUL FOR ANY PERSON OTHER THAN A FUNERAL DIRECTOR OR HOME TO FURNISH OR PERFORM FUNERAL SERVICES TO ACCEPT OR HOLD PAYMENTS ON A PRENEED BURIAL CONTRACT EXCEPT FINANCIAL INSTITUTIONS, TO DELETE PROVISIONS RELATING TO COMMISSIONS ALLOWED PERSONS ON TRUST FUNDS WHICH ARISE OUT OF A PRENEED BURIAL CONTRACT, TO DELETE PROVISIONS WHICH MAKE IT UNLAWFUL FOR A LICENSEE WHO SELLS PRENEED BURIAL CONTRACTS TO SOLICIT OR PUBLICLY ADVERTISE THE AVAILABILITY OF THEM AND TO ESTABLISH A PROCEDURE FOR THE SOLICITATION AND ADVERTISING OF PRENEED FUNERAL CONTRACTS, AND TO PROVIDE FOR THE PROHIBITION ON THE SOLICITATION OF THESE CONTRACTS.

S. 424 -- Senators McLeod, Waddell and Matthews: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 4-1-170 SO AS TO PROVIDE THAT COUNTIES JOINTLY DEVELOPING AN INDUSTRIAL PARK PURSUANT TO SECTION 13, ARTICLE VIII OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, SHALL INCLUDE EXPENSE SHARING AND PERCENTAGE ALLOCATION AND DISTRIBUTION OF REVENUE IN THEIR WRITTEN AGREEMENT AND THAT ALLOCATIONS FOR PURPOSES OF LIMITATIONS ON BONDED INDEBTEDNESS AND THE INDEX OF TAXPAYING ABILITY MUST BE IDENTICAL TO THE REVENUE PERCENTAGE ALLOCATION.

H. 3098--AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up.

H. 3098 -- Rep. Hayes: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 27-37-170 SO AS TO ESTABLISH PROCEDURES FOR EJECTMENT OF MOBILE HOMES.

The Judiciary Committee proposed the following Amendment No. 1 (Doc. No. 3878U), which was adopted.

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

/SECTION 1. Section 27-37-10 of the 1976 Code is amended to read:

"Section 27-37-10. The tenant may be ejected upon application of the landlord or his agent when (a) such tenant fails or refuses to pay the rent when due or when demanded, (b) the term of tenancy or occupancy has ended or (c) the terms or conditions of the lease have been violated. Where applicable, the provisions of this chapter apply to the removal of mobile homes."

SECTION 2. Section 27-37-30 of the 1976 Code is amended to read:

"Section 27-37-30. The copy of such the rule may be served in the same manner as is provided by law for the service of the summons in actions pending in the court of common pleas of this State or, when no person can be found in possession of the premises and the premises shall have has remained unoccupied for a space of fifteen days or more immediately prior to the date of such the service, the copy of such the rule may be served by leaving it affixed to the most conspicuous part of the premises. In cases of ejectment of a mobile home, at the time a landowner is granted a rule to vacate under the provisions of this section, he shall send, by certified mail, return receipt requested, a lienholder of record a copy of the rule issued by the court."

SECTION 3. Section 27-37-160 of the 1976 Code is amended to read:

"Section 27-37-160. (A) In executing a writ of ejectment, the constable or deputy sheriff shall proceed to the premises, present to the occupants a copy of the writ and give the occupants an opportunity to vacate voluntarily. If the occupants refuse to vacate or the premises appear unoccupied, the constable or deputy sheriff shall announce his identity and purpose. If necessary, the deputy sheriff, but not a constable, may then enter the premises by force, using the least destructive means possible, in order to effectuate the ejectment. Discretion may be exercised by the constable or deputy sheriff in granting a delay in the dispossession of ill or elderly tenants.

(B) In executing a writ of ejectment on a mobile home for nonpayment of lot rent or for other cause, the constable or deputy sheriff shall follow the procedure established in this section. He must proceed to the premises, present to the occupants a copy of the writ and written notification that the mobile home will be removed from the premises at the expense of the owner of the mobile home after the examination of twenty days if the occupants fail to move the mobile home voluntarily. If the occupants cannot be personally presented with the writ and notification, constructive notice may be accomplished by attaching a copy of the writ and notice to the mobile home in a conspicuous place. If the occupant fails to appear and show cause within twenty days from the date he receives service of the writ to vacate the magistrate shall issue a writ of ejectment. After the expiration of ten days after service of a cony of the writ and written notification to the occupants, the deputy or constable shall proceed to the premises with the writ and have the mobile home removed from the premises. The removal must be by a person or company licensed for that purpose by the Department of Highways and Public Transportation or the Public Service Commission. If moving and storage charges are not paid by the owner of the mobile home, the mobile home is considered to be an abandoned motor vehicle and must be disposed of pursuant to Sections 56-5-5630, 56-5-5640, and 56-5-5650. All moving and storage charges are inferior to all prior and existing liens."

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

Amend title to conform.

Rep. HAYES explained the amendment.

The amendment was then adopted.

Reps. HAYES and WILKINS proposed the following Amendment No. 2 (Doc. No. 3879U), which was adopted.

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

/SECTION_____. Section 27-37-20 of the 1976 Code is amended to read:

"Section 27-37-20. Any A tenant may be ejected in the following manner, to wit:

Upon application by the landlord or his agent or attorney any magistrate having jurisdiction shall issue a written rule requiring the tenant forthwith to vacate the premises occupied by him immediately or to show cause why he should not be ejected before the magistrate within ten days after service of a copy of such the rule upon on the tenant. However, in a mobile home ejectment, the time period is twenty days."

SECTION___. Section 27-37-40 of the 1976 Code is amended to read:

"Section 27-37-40. If the tenant fails to appear and show cause within the aforesaid ten days ten day period, or twenty-day period in the case of a mobile home ejectment, then the magistrate shall issue a warrant of ejectment and the tenant shall must be ejected by his regular or special constable or by the sheriff of the county."/

Renumber sections to conform.

Amend title to conform.

Rep. HAYES explained the amendment.

The amendment was then adopted.

Reps. HAYES and WILKINS proposed the following Amendment No. 3 (Doc. No. 4007U), which was adopted.

Amend the Committee on Judiciary Report, as and if amended, in Section 27-37-160(B) of the 1976 Code as contained in SECTION 3, page 3098-2, line 39, by striking /twenty/ and inserting /ten/ and on page 3098-3, line 5, by inserting after /writ/ /of ejectment/.

Amend title to conform.

Rep. HAYES explained the amendment.

The amendment was then adopted.

The Bill, as amended, was read the second time and ordered to third reading.

H. 3791-AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up.

H. 3791 -- Reps. J. Rogers and Huff: A BILL TO AMEND SECTION 40-67-20, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS FOR THE PURPOSE OF THE REGULATION OF SPEECH/LANGUAGE PATHOLOGISTS AND AUDIOLOGISTS, SO AS TO DEFINE THE TERM "SPEECH/LANGUAGE PATHOLOGY" AND TO REVISE THE TERMS "SPEECH/LANGUAGE PATHOLOGIST", "THE PRACTICE OF SPEECH/LANGUAGE PATHOLOGY", AND "THE PRACTICE OF AUDIOLOGY".

The Medical, Military, Public and Municipal Affairs Committee proposed the following Amendment No. 1 (Doc. No. 3905U), which was adopted.

Amend the bill, as and if amended, in item (D) of Section 40-67-20 of the 1976 Code, as contained in SECTION 1, by striking /'communication disorders'/ on line 20 of page 2 and inserting

/'communication disorders'/.

When amended, item (D) of Section 40-67-20 of the 1976 Code shall read:

/(C)(D) 'Speech/Language pathologist' means any a person who evaluates, tests, examines, treats, or counsels persons regarding a speech or, language, or voice disorder. Speech and, language, or voice disorders shall include includes any and all nonmedical conditions, whether of organic or nonorganic origin, which impede the normal process of human communication.

A person represents himself to be a speech/language pathologist when he holds himself out to the public by any title or description of services incorporating the words 'speech pathologist', 'speech pathology', 'speech therapy', 'speech correction', 'speech correctionist', 'speech therapist', 'speech clinic', 'speech clinician', 'language pathology', 'language pathologist', 'logopedics', 'logopedist', 'communicology', 'communicologist', 'communication disorders', 'aphasiologist', 'voice therapy', 'voice therapist', 'voice pathologist', 'voice pathology', 'vexologist', 'language therapist', 'phoniatrist', or any similar title variation of these terms, to describe any function or service he performs./

Amend the bill further, as and if amended, in item (E) of Section 40-67-20 of the 1976 Code, as contained in Section 1, by inserting immediately after /augmentative/ on line 41 of page 2 /speech-producing/.

When amended, item (E) of Section 40-67-20 of the 1976 Code shall read:

/(D)(E) 'The practice of speech/language pathology' means the rendering or offering to render to individuals, groups, organizations, or the public any service in speech/language pathology involving, but not limited to, the application of principles, methods, and procedures for the measurement, testing, identification, appraisal, prediction, consultation, counseling, instruction, and research related to the development and disorders of speech, voice, or language for the purpose of identifying, preventing, treating, and ameliorating such these disorders and conditions. It also means determining the need for augmentative speech-producing communication systems, dispensing these systems, and providing training in utilization of these systems and planning, directing, conducting, or supervising programs that render or offer to render any service in speech/language pathology. The practice of speech/language pathology includes pure-tone air conduction screening, limited to a pass or fail determination, for the purpose of performing a speech and language evaluation or for the initial identification of individuals with other disorders of communication./

Amend title to conform.

Rep. DAVENPORT explained the amendment.

The amendment was then adopted.

The Bill, as amended, was read the second time and ordered to third reading.

H. 3130-AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up.

H. 3130 -- Rep. McEachin: A BILL TO AMEND SECTION 40-15-140, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE LICENSING OR REGISTRATION OF DENTISTS, DENTAL HYGIENISTS, AND DENTAL TECHNICIANS, SO AS TO REVISE AND LIMIT THE AMOUNT OF THE ANNUAL LICENSE OR REGISTRATION FEE WHICH MAY BE CHARGED BY THE STATE BOARD OF DENTISTRY.

The Medical, Military, Public and Municipal Affairs Committee proposed the following Amendment No. 1 (Doc. No. 3901U), which was adopted.

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

/SECTION 1. Section 40-15-170 of the 1976 Code is amended to read:

"Section 40-15-170. The secretary of the board shall on or about the fifteenth day of October, of each year, send a reregistration application to the last address furnished the board of each person licensed or registered by the board. The failure to receive the application does not excuse a failure to reregister, as required by this chapter. An annual registration fee, to be set by the board, shall cover fully all costs and is payable by each licensed dentist and dental hygienist and each registered dental technician not later than the thirty-first of December. In setting the license fees for the Year 1987-88, the board must set the license fees for each classification so that in the aggregate the revenues generated from all license fees for the year will equal one hundred fifteen percent of its total expenditures during the previous year. If reregistration is not completed by the thirty-first of December, the fee must be doubled. If the licensee or dental technician fails to reregister by the thirtieth of June thirty-first of January of the following year, the secretary of the board shall notify the licensee or dental technician by registered mail at his last known address that failure to reregister by the first of October March will result in the license or registration expiring as of the first of October March. After the thirty-first of January, an additional five dollar penalty is added each day until the reregistration fee is paid. Any expired license may be reinstated or any dental technician may be reregistered by taking the licensure or dental technician examination or appearing in person before the board with a satisfactory explanation for the failure to reregister. An orthodontic technician may be reregistered by submitting a completed application or appearing in person before the board with a satisfactory explanation for the failure to reregister. It is the responsibility of each licensee or dental technician to keep the office of the secretary notified of his current mailing address.

If an individual's license to practice dentistry or dental hygiene is revoked by another state for cause this shall, in the discretion of the board, constitute grounds for revocation of his South Carolina license. The license of a dentist or dental hygienist who does not either reside or practice in South Carolina for a period of six successive years is considered inactive. The time spent in active service by any person in the armed forces or public health service of the United States or with the Veterans' Administration is not construed as absence from or failure to practice in the State. Relicensing after an absence of over six years may be made at the discretion of the board upon proof of high professional fitness and moral character."

SECTION 2. The provisions of Section 40-15-170 of the 1976 Code, as amended by Section 1 of this act, relating to the setting of license fees for the year 1987-88 are retroactive to the fees imposed for this license year.

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

Renumber sections to conform.

Amend title to conform.

Rep. McEACHIN explained the amendment.

The amendment was then adopted.

The Bill, as amended, was read the second time and ordered to third reading.

H. 3966--RULE 5.12 WAIVED

Rule 5.12 was waived on the following Bill by a division vote of 89 to 0.

H. 3966 -- Ways and Means Committee: A BILL TO AMEND SECTION 12-35-550, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SALES TAX EXEMPTIONS, SO AS TO EXEMPT THE GROSS PROCEEDS OF SALES OF DEPRECIABLE ASSETS USED IN THE OPERATION OF THE BUSINESS, PURSUANT TO THE SALE OF THE BUSINESS, AND PROVIDE THAT THIS EXEMPTION ONLY APPLIES WHEN THE ENTIRE BUSINESS IS SOLD BY THE OWNER PURSUANT TO A WRITTEN CONTRACT AND THE PURCHASER CONTINUES THE OPERATION OF THE BUSINESS.

H. 3966-ORDERED TO THIRD READING

The following Bill was taken up.

H. 3966 -- Ways and Means Committee: A BILL TO AMEND SECTION 12-35-550, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SALES TAX EXEMPTIONS, SO AS TO EXEMPT THE GROSS PROCEEDS OF SALES OF DEPRECIABLE ASSETS USED IN THE OPERATION OF THE BUSINESS, PURSUANT TO THE SALE OF THE BUSINESS, AND PROVIDE THAT THIS EXEMPTION ONLY APPLIES WHEN THE ENTIRE BUSINESS IS SOLD BY THE OWNER PURSUANT TO A WRITTEN CONTRACT AND THE PURCHASER CONTINUES THE OPERATION OF THE BUSINESS.

Rep. KIRSH explained the Bill.

The Bill was read the second time and ordered to third reading.

ORDERED TO THIRD READING

The following Bills were taken up, read the second time, and ordered to a third reading:

H. 3692 -- Reps. M.O. Alexander, M.D. Burriss, Wilder, Mappus, Rama, Holt, Quinn, Taylor, Faber, Fair, McBride, Hearn, McKay, Klapman, L. Martin, Cork, McLeod, Manly, Blackwell, Phillips, Sturkie, Neilson, Corning, J. Bailey, Baxley, G. Bailey, T.C. Alexander, Baker, Fant, Mattos and Kohn: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-5-15 SO AS TO REQUIRE A LICENSED INSURER WHO DECIDES TO CEASE DOING BUSINESS FOR ANY LINE OR SUBLIME OF INSURANCE TO NOTIFY ALL POLICYHOLDERS OF THIS FACT AT LEAST NINETY DAYS BEFORE THE ANNIVERSARY OF THE POLICY AND PROHIBIT THE CHIEF INSURANCE COMMISSIONER FROM RETURNING SECURITIES DEPOSITED UNLESS THE INSURER COMPLIES WITH THIS SECTION.

H. 3797 -- Reps. Tucker, M.O. Alexander, T.C. Alexander, Altman, G. Bailey, J. Bailey, K. Bailey, Baker, Barber, Barfield, Baxley, Beasley, Blackwell, Boan, G. Brown, H. Brown, J. Brown, R. Brown, Bruce, Burch, M.D. Burriss, Carnell, Chamblee, Clyborne, Cole, Cooper, Corbett, Cork, Corning, Davenport, Derrick, Elliott, Faber, Fair, Fant, Felder, Ferguson, Foster, Gentry, Hallman, J. Harris, P. Harris, Harvin, Haskins, Hayes, Hearn, Hendricks, Holt, Huff, Jaskwhich, J.C. Johnson, J.W. Johnson, Kay, Keegan, Keesley, Keyserling, Kirsh, Klapman, Koon, Lanford, Limehouse, Littlejohn, Manly, Mappus, D. Martin, L. Martin, Mattos, McAbee, McCain, McEachin, McElveen, McGinnis, McKay, McLellan, McLeod, McTeer, Neilson, Nesbitt, Nettles, Phillips, Quinn, Rama, Rhoad, J. Rogers, T. Rogers, - Rudnick, Sharpe, Sheheen, Short, Simpson, Smith, Snow, Stoddard, Sturkie, Taylor, Townsend, Vaughn, Waites, Waldrop, Washington, Wells, Whipper, White, Wilder, Wilkes, D. Williams, J. Williams, Winstead, Wofford, Wright and Wilkins: A BILL TO AMEND SECTION 44-53-480, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ENFORCEMENT OF LAWS PERTAINING TO ILLICIT TRAFFIC IN CONTROLLED AND COUNTERFEIT SUBSTANCES, SO AS TO PROVIDE FOR UNIFORM PROCEDURES FOR FORFEITED SUBSTANCES AND PROPERTY TO BE USED BY LAW ENFORCEMENT OFFICERS OF THE STATE AND ITS POLITICAL SUBDIVISIONS.

H. 3872 -- Reps. Wilkins, Baxley, Barber, Hodges, Corning, Sheheen, Hayes, Cole, Nettles, Beasley, McEachin and Rudnick: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 40-5-380 SO AS TO ALLOW STATE-EMPLOYED ATTORNEYS TO ENGAGE IN PRO BONO REPRESENTATION UNDER A PRO BONO PROGRAM ORGANIZED, SPONSORED, OR ENDORSED BY THE SOUTH CAROLINA BAR AND TO ESTABLISH REQUIREMENTS FOR THE REPRESENTATION.

Rep. WILKINS explained the Bill.

H. 3792 -- Rep. McLellan: A BILL TO AMEND SECTION 2-7-105, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE AUTHORIZATION OF STATE CAPITAL IMPROVEMENT BONDS BY THE GENERAL ASSEMBLY IN EVEN-NUMBERED YEARS, SO AS TO PROVIDE THAT THESE BONDS, BEGINNING IN 1991, MAY BE AUTHORIZED IN ODD-NUMBERED INSTEAD OF EVEN-NUMBERED YEARS.

H. 3491 -- Reps. McAbee, Kirsh, McLellan and Boan: A BILL TO REPEAL SECTION 11-9-350, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REQUIREMENT THAT THE STATE BUDGET AND CONTROL BOARD APPROVE AN INTEREST RATE IN EXCESS OF SEVEN PERCENT A YEAR ON OBLIGATIONS OF PUBLIC BODIES ALLOWED BY LAW TO INCUR DEBT.

H. 3933--AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up.

H. 3933 -- Rep. R. Brown: A BILL TO AMEND SECTIONS 37-2-201 AND 37-3-201, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CREDIT SERVICE AND LOAN FINANCE CHARGES SO AS TO PROVIDE THAT A LENDER WHO HAS FILED RATES BUT HAS NOT POSTED THEM IS ONLY SUBJECT TO A FINE FOR THE FIRST OFFENSE IN ANY THIRTY-SIX MONTH PERIOD.

The Labor, Commerce and Industry Committee proposed the following Amendment No. 1 (Doc. No. 6797k), which was adopted.

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

SECTION 1. Section 37-2-201 of the 1976 Code is amended by adding:

(7) Notwithstanding subsection (2), if a seller can demonstrate with competent evidence that (a) any failure to post rates properly filed under Section 37-2-305 was a result of a bona fide error or excusable neglect, (b) the rates were properly posted when the error or neglect was discovered or brought to the seller's attention, and (c) that no other failure to post rates has been brought to the seller's attention by the Department of Consumer Affairs or by consumers within the previous forty-eight month period, then the maximum rate of credit service charges assessable by the seller is the rate properly filed with the Department of Consumer Affairs, provided, however, the seller that has failed or neglected to post rates is subject to a civil penalty of up to $5,000.00 payable to the Department of Consumer Affairs.

SECTION 2. Section 37-3-201 of the 1976 Code is amended by adding:

(7) Notwithstanding subsection (2), if a lender can demonstrate with competent evidence that (a) any failure to post rates properly filed under Section 37-3-305 was a result of a bona fide error or excusable neglect, (b) the rates were properly posted when the error or neglect was discovered or brought to the lender's attention, and (c) that no other failure to post rates has been brought to the lender's attention by the Department of Consumer Affairs or by consumers within the previous forty-eight month period, then the maximum rate of loan finance charges assessable by the lender is the rate properly filed with the Department of Consumer Affairs, provided, however, the lender that has failed or neglected to post rates is subject to a civil penalty of up to $5,000.00 payable to the Department of Consumer Affairs.

SECTION 3. This act takes effect upon approval by the Governor.

Amend title to conform.

Rep. CORK explained the amendment.

The amendment was then adopted.

The Bill, as amended, was read the second time and ordered to third reading.

H. 3216-INTERRUPTED DEBATE

The following Bill was taken up.

H. 3216 -- Rep. Boan: A BILL TO CREATE A HEALTH INSURANCE POOL TO INCLUDE ALL INSURERS PROVIDING HEALTH INSURANCE AND INSURANCE ARRANGEMENTS FOR HEALTH PLAN BENEFITS, TO EXEMPT THE POOL FROM TAXATION, AND TO ALLOW A TAX CREDIT FOR ANY ASSESSMENT PAID TO THE POOL BY A MEMBER INSURER, AND TO AMEND SECTION 38-71-770, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MANDATORY CONTINUATION AND CONVERSION PRIVILEGES OF GROUP HEALTH POLICIES, SO AS TO REVISE THESE CONTINUATION OR CONVERSION PRIVILEGES AND DELETE PROVISIONS RELATING TO MANDATORY CONVERSION OF GROUP HEALTH POLICIES.

The Ways and Means Committee proposed the following Amendment No. 1 (Doc. No. 3715U).

Amend the bill, as and if amended, By striking Section 2(B) and inserting:

/(B) The Commissioner shall give notice to all insurers of the time and place for the initial organizational meetings. The pool members shall select five members of the Board of Directors. The Governor shall appoint three members of the Board of Directors. One must be appointed to represent consumers and two must be appointed to represent businesses, other than the insurance industry. In the event of a tie vote of the Board of Directors on any matter, the issue must be presented to the Commissioner for his approval or disapproval. The selection of the administering insurer is subject to approval by the Commissioner. The Board shall include, to the extent possible, at least two domestic insurance companies selling health insurance in South Carolina, including the domestic company selling the largest amount of health insurance./

Amend further, by striking Section 2(F)(6) and inserting:

/(6) issue policies of insurance in accordance with the requirements of this act, payment of benefits at the rate of eighty percent of covered medical expenses which are in excess of a five hundred dollar deductible, until twenty percent of the expenses in a benefit period reaches one thousand five hundred dollars, after which benefits must be paid at the rate of one hundred percent during the remainder of the benefit period./

Amend further, in Section 2(F) by adding at the end:

/(9) cause to be audited on an independent basis every two years the finances of the pool and submit the report of audit to the Commissioner who shall submit it to the Chairman of the Senate Finance Committee and the Chairman of the House Ways and Means Committee with recommendations on the operations of the pool./

Amend further, by striking Section 3(A)(3) and inserting:

/(3) a refusal to issue insurance coverage comparable to that provided by the pool except at a rate exceeding one hundred and fifty percent of the pool rate./

Amend further, by striking Section 3(D)(5) and inserting:

/(5) any person on whose behalf the pool has paid out two hundred and fifty thousand dollars in benefits;/

Amend further, by striking Section 6(C)(2) and inserting:

/(2) The Board shall determine the standard risk rate by taking into account the individual standard rate charged by the five largest insurers offering individual coverages in the State comparable to the pool coverage. If five insurers do not offer comparable coverage, the standard risk rate must be established using reasonable actuarial techniques and must reflect anticipated experience and expenses for coverage. Rates initially established for pool coverage are two hundred percent of rates established as applicable for individual standard risks. Rates subsequently established must provide fully for the expected costs of claims and expenses of operation taking into account investment income and any other cost factors, but may not exceed three hundred percent of rates established as applicable for individual standard risks subject to the limitations described in this section. If the total tax credit provided in Section 8 exceeds five million dollars in any one year for all members of the pool, the Board shall establish a rate for all policies which assures that the tax credit does not exceed five million dollars in the following year of operation. All rates and rate schedules must be submitted to the Commissioner for approval./

Amend further, in Section 8, by inserting immediately after /zero./ on line 11 of the section the following:

/Any unused credit may be carried forward three years./

When amended, Section 8 shall read:

/SECTION 8. The pool established pursuant to this act is exempt from all taxes and assessments. Any member subject to tax liability imposed by any state statute may take credit for any assessment paid to the pool in the previous year against its premium or income tax payable. The tax credit is in addition to any other tax credits to which the member may be entitled pursuant to South Carolina law, but the credit may not reduce the member's tax liability below zero. Any unused credit may be carried forward three years. The credits are subject to the provisions of Section 38-7-120(c). The members are responsible for any loss of the operation of the pool, including any lose in excess of assessments paid to the pool. This State is not responsible for any loss of the operation of the pool, and no state funds may be used to defray any loss./

Amend further, by striking Section 10 and inserting:

/SECTION 10. The provisions of Section 38-71-770 of the 1976 Code, as amended by Section 9 of this act, shall become effective upon the first annual renewal date after January 1, 1990, of any policy in existence on the effective date of this act. Until this date, the provisions of Section 38-71-770 prior to its amendment by Section 9 are operative./

Amend further, by adding a new Section 11 to read:

/SECTION 11. This act takes effect upon approval by the Governor./

Renumber sections to conform.

Amend title to conform.

Rep. McLELLAN explained the amendment.

Further proceedings were interrupted by expiration of time on the uncontested Calendar, the pending question being consideration of Amendment No. 1, Rep. McLELLAN having the floor.

SPECIAL ORDERS INSISTED UPON

Rep. T. ROGERS insisted upon the Special Orders of the day.

H. 3609--SENT TO THE SENATE

The following Bill was taken up.

H. 3609 -- Reps. T. Rogers, Felder, J. Bailey, K. Bailey, Barber, G. Brown, J. Brown, R. Brown, Burch, Chamblee, Elliott, Faber, Farr, Ferguson, Foster, Glover, Gordon, J. Harris, Harvin, Harwell, Huff, Keyserling, Lockemy, McAbee, McBride, McGinnis, Moss, Neilson, Nesbitt, Phillips, Rhoad, J. Rogers, Rudnick, Snow, Stoddard, Taylor, Tucker, Waites, Waldrop, Washington, White, Wilder, D. Williams, Winstead, Holt, D. Martin, Lanford, G. Bailey, Boan, McEachin, Littlejohn and Wilkes: A BILL TO AMEND SECTION 9-1-1510, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE AGE AND YEARS OF CREDIT SERVICE REQUIREMENTS FOR RETIREMENT UNDER THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO CHANGE THE YEARS OF SERVICE REQUIREMENT FROM THIRTY TO TWENTY-FIVE YEARS FOR RETIREMENT; TO AMEND SECTION 9-1-1550, AS AMENDED, RELATING TO SERVICE RETIREMENT ALLOWANCES FOR MEMBERS OF THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO INCREASE THE MULTIPLIER FRACTION USED IN CALCULATING SERVICE RETIREMENT BENEFITS IN THE CASE OF CLASS TWO MEMBERS FROM ONE AND SEVEN-TENTHS PERCENT TO TWO PERCENT; TO AMEND SECTION 59-1-400, RELATING TO SICK LEAVE FOR SCHOOL DISTRICT EMPLOYEES, SO AS TO PROVIDE THAT SCHOOL DISTRICT EMPLOYEES MUST BE PAID ON RETIREMENT FOR THEIR UNUSED SICK LEAVE, NOT TO EXCEED FORTY-FIVE DAYS; TO AMEND SECTION 9-1-10, RELATING TO DEFINITIONS FOR PURPOSES OF THE STATE RETIREMENT SYSTEM, SO AS TO ALLOW SCHOOL DISTRICT EMPLOYEES TO ELECT TO INCLUDE IN THEIR "AVERAGE FINAL COMPENSATION" PAYMENTS FOR UP TO FORTY-FIVE DAYS OF UNUSED SICK LEAVE AND ANY INCENTIVE PAY FUNDS AND OTHER COMPENSATION BEYOND CONTRACTED PAY; AND TO AMEND THE 1978 CODE BY ADDING SECTION 9-1-1135 SO AS TO PROVIDE THAT MEMBERS MAY PURCHASE OUT-OF-STATE CREDIT SERVICE WHICH WOULD HAVE BEEN CREDITABLE IF THE SERVICE HAD BEEN PERFORMED IN SOUTH CAROLINA.

The Bill was read the third time, and ordered sent to the Senate.

RECORD FOR VOTING

May 9, 1989
I was in Anderson on Thursday, May 4, 1989 when the vote was taken on H. 3609. Had I been present I would have voted in favor of passage on Second Reading, as I was a co-sponsor of the Bill.

Rep. JOHN W. TUCKER, JR.

H. 3722--AMENDED AND INTERRUPTED DEBATE

The following Bill was taken up.

H. 3722 -- Education and Public Works Committee: A BILL TO AMEND SECTION 56-5-4070, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE AUTHORIZED LENGTH OF VEHICLES AND TO LIMITATIONS ON VEHICLE COMBINATIONS OPERATED ON INTERSTATE HIGHWAYS, FEDERAL AID HIGHWAYS, AND CERTAIN OTHER HIGHWAYS, SO AS TO REVISE THE PERMISSIBLE LENGTH OF CERTAIN VEHICLES OPERATING IN TWO UNIT COMBINATIONS.

Rep. BEASLEY proposed the following Amendment No. 1(Doc. No. 4288U), which was adopted.

Amend the bill, as and if amended, by striking SECTION 1, page 1, beginning on line 24, and inserting:

/SECTION 1. Section 56-5-4070(1)(a) is amended to read:

"(a) a trailer or semitrailer, operating may be operated in a two unit truck tractor-trailer or truck tractor-semitrailer combination, may not exceed in excess of a length of forty-eight feet but no longer than fifty-three feet, inclusive of the load carried thereon on it. A fifty-three foot long trailer must be equipped with a rear under ride guard, and the distance between the kingpin of the vehicle and the center of the rear axle assembly or to the center of the tandem axle assembly if equipped with two axles must be no greater than forty-one feet;"/

Amend title to conform.

Rep. BEASLEY explained the amendment.

Rep. BEASLEY continued speaking.

Rep. KIRSH spoke against the amendment.

The amendment was then adopted.

Rep. RUDNICK proposed the following Amendment No. 2 (Doc. No. 4359U), which was tabled.

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

/SECTION ____. The first paragraph of Section 56-5-4070(1) of the 1976 Code is amended to read:

"Two or three unit vehicle combinations may be operated on the National System of Interstate and Defense Highways, on those qualifying federal-aid highways so designated by the United States Secretary of Transportation, and other highways as designated by the Department in accordance with Section 56-5-4075. The Department may require warning devices which may be necessary to protect public safety. A sign must be displayed on the rear of the vehicle combinations to notify motorists of their length and that care is needed in passing. The size and location of and information on the sign must be determined by the Department by regulation."

Renumber sections to conform.

Amend title to conform.

Rep. RUDNICK explained the amendment.

Rep. BEASLEY spoke against the amendment and moved to table the amendment.

Rep. RUDNICK demanded the yeas and nays, which were not ordered.

So, the amendment was then tabled by a division vote of 69 to 14.

Rep. RUDNICK proposed the following Amendment No. 3 (Doc. No. 4376U), which was tabled.

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

/SECTION ____. Section 56-5-4010 of the 1976 Code is amended to read:

"Section 56-5-4010. It shall be is unlawful for any a person to drive or move or for the owner to cause or knowingly to permit to be driven or moved on any a highway any a vehicle of a size or weight exceeding the limitations stated in this article or otherwise in violation of this article. A vehicle which exceeds the limitations stated in this article or otherwise is in violation of this article may be seized by the department. The maximum size and weight of vehicles herein specified shall be in this article are lawful throughout the State, and local authorities shall have no power or authority to alter such the limitations except as express authority may be granted in this article. Provided However, that municipalities and their franchisees may operate combinations of vehicles of not more than four units and not more than sixty-five feet in length on city streets within their corporate limits, and the operation such the combinations of units shall be is limited to speeds not in excess of twenty miles per an hour, and such. The combination units shall must be equipped with brakes meeting braking requirements of Section 56-5-4860, and the rear vehicle shall must be equipped with at least one stoplight."/

Renumber sections to conform.

Amend title to conform.

Rep. RUDNICK explained the amendment.

POINT OF ORDER

Rep. BEASLEY raised the Point of Order that Amendment No. 3 was out of order as it was not germane to the Bill.

The SPEAKER stated that it dealt with a violation of the Code Section which established the limit and he overruled the Point of Order.

Rep. BEASLEY moved to table the amendment, which was agreed to by a division vote of 74 to 8.

Rep. RUDNICK proposed the following Amendment No. 4 (Doc. No. 4383U), which was tabled.

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

/SECTION ____. The amendments to the sections of the 1976 Code in this act are in effect for three years. After three years the provisions of the sections are as they exist before the effective date of this act. The South Carolina Department of Highways and Public Transportation shall make a detailed study of the potential damage caused by the implementation of the provisions, their effect on motor vehicle accidents in this State, and possible legislation to help defray damage. The study must be submitted to the House of Representatives and Senate in January, 1992./

Renumber sections to conform.

Amend title to conform.

Rep. RUDNICK explained the amendment.

Rep. BEASLEY spoke against the amendment and moved to table the amendment, which was agreed to by a division vote of 75 to 4.

Rep. RUDNICK proposed the following Amendment No. 5 (Doc. No. 4379U), which was tabled.

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

/SECTION____. Before the provisions of this act take effect the South Carolina Department of Highways and Public Transportation shall make a detailed study of the potential damage caused by the implementation of the provisions, their effect on motor vehicle accidents in this State, and possible legislation to help defray damage. The study must be submitted to the House of Representatives and Senate in January, 1990. After consideration of the study the General Assembly may establish this act's effective date./

Renumber sections to conform.

Amend title to conform.

Rep. RUDNICK explained the amendment.

Rep. BEASLEY moved to table the amendment, which was agreed to by a division vote of 58 to 10.

Rep. RUDNICK proposed the following Amendment No. 6 (Doc. No. 4398U), which was tabled.

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

/SECTION ___. Section 56-5-4010 of the 1976 Code is amended to read:

"Section 56-5-4010. It shall be is unlawful for any a person to drive or move or for the owner to cause or knowingly to permit to be driven or moved on any a highway any a vehicle of a size or weight exceeding the limitations stated in this article or otherwise in violation of this article. The maximum size and weight of vehicles herein specified shall be in this article are lawful throughout the State, and local authorities shall have no power or authority to alter such the limitations except as express authority may be granted in this article. Provided However, that municipalities and their franchisees may operate combinations of vehicles of not more than four units and not more than sixty-five feet in length on city streets within their corporate limits, and the operation of such the combinations of units shall be is limited to speeds not in excess of twenty miles per an hour, and such. The combination units shall must be equipped with brakes meeting braking requirements of Section 56-5-4860, and the rear vehicle shall must be equipped with at least one stoplight. A person who drives or moves a vehicle in violation of this article must be assessed points against his driver's record as provided in Section 66-1-720."

SECTION ___. Section 56-1-720 of the 1976 Code, as last amended by Act 532 of 1988, is further amended to read:

"Section 56-1-720. There is established a point system for the evaluation of the operating record of persons to whom a license to operate motor vehicles has been granted and for the determination of the continuing qualifications of these persons for the privileges granted by the license to operate motor vehicles. The basic element of the system shall have as its basic element is a graduated scale of points assigning relative values to the various violations in accordance with the following schedule:

VIOLATION     POINTS

Reckless driving     6

Passing stopped school bus     6

Hit-and-run, property damages only     6

Driving too fast for conditions, or

speeding:

(1) No more than 10 m.p.h. above the posted limits     2

(2) More than 10 m.p.h. but less than 25 m.p.h.

above the posted limits     4

(3) 25 m.p.h. or above the posted limits     6

Disobedience of any official traffic control device     4

Disobedience to officer directing traffic     4

Failing to yield right of way     4

Driving on wrong side of road     4

Passing unlawfully     4

Turning unlawfully     4

Driving through or within safety zone     4

Failing to give signal or giving

improper signal for stopping,

turning, or suddenly decreased speed     4

Shifting lanes without safety precaution     2

Improper dangerous parking     2

Following too closely     4

Failing to dim lights     2

Operating with improper lights     2

Operating with improper brakes     4

Operating a vehicle in unsafe condition     2

Driving in improper lane     2

Improper backing     2

Exceeding vehicle size or weight limitations     2."/

Renumber sections to conform.

Amend title to conform.

Rep. RUDNICK explained the amendment.

Rep. J. ROGERS moved to table the amendment, which was agreed to by a division vote of 76 to 2.

Rep. GENTRY proposed the following Amendment No. 7 (Doc. No. 4520U), which was tabled.

Amend the bill, as and if amended, in Section 56-5-4070(1)(a) of the 1976 Code, as contained in SECTION 1, by inserting immediately after /thereon/ on line 31 of page 1 the following: /, provided that if such a combination between forty-eight feet and fifty-three feet is used, the truck/cab pulling the combination may not exceed eleven and one-half feet in length/.

Amend the bill further, as and if amended, in Section 56-5-4070(4) of the 1976 Code, as contained in SECTION 2, by inserting immediately after /limitations./ on line 42 of page 1 the following: /If such a combination between forty-eight feet and fifty-three feet is used, the truck/cab pulling the combination may not exceed eleven and one-half feet in length./

Amend title to conform.

Rep. GENTRY explained the amendment.

Rep. BEASLEY spoke against the amendment and moved to table the amendment.

Rep. McEACHlN demanded the yeas and nays, which were taken resulting as follows:

Yeas 66; Nays 35

Those who voted in the affirmative are:

Altman                 Bailey, G.             Bailey, J.
Bailey, K.             Baker                  Barfield
Baxley                 Beasley                Bennett
Blanding               Brown, G.              Brown, H.
Brown, J.              Brown, R.              Burriss, M.D.
Clyborne               Cole                   Fair
Fant                   Felder                 Foster
Glover                 Gregory                Hallman
Harvin                 Harwell                Haskins
Hayes                  Hearn                  Huff
Kay                    Keegan                 Klapman
Kohn                   Koon                   Lanford
Littlejohn             Mappus                 Martin, L.
McAbee                 McGinnis               McKay
McLeod                 Moss                   Nesbitt
Nettles                Phillips               Quinn
Rama                   Rhoad                  Rogers, J.
Sharpe                 Smith                  Snow
Sturkie                Tucker                 Waldrop
Wells                  Whipper                White
Wilder                 Wilkes                 Wilkins
Winstead               Wofford                Wright

Total-66

Those who voted in the negative are:

Alexander, M.O.        Alexander, T.C.        Barber
Blackwell              Boan                   Burch
Chamblee               Cooper                 Corbett
Cork                   Corning                Davenport
Derrick                Gentry                 Harris, J.
Hendricks              Hodges                 Holt
Jaskwhich              Johnson, J.W.          Keesley
Kirsh                  Manly                  McEachin
McElveen               McLellan               McTeer
Neilson                Rogers, T.             Rudnick
Sheheen                Simpson                Stoddard
Taylor                 Waites

Total-35

So, the amendment was tabled.

Rep. KEESLEY proposed the (Doc. No. 4524U), which was adopted.

Amend the amendment offered by Representative Beasley, dated May 3, 1989, document number 4288U, and designated as Amendment Number 1, by striking Section 56-5-4070(1)(A), as contained in the amendment and inserting:

/a trailer or semitrailer, operating may be operated in a two unit truck tractor-trailer or truck tractor-semitrailer combination, may not exceed in excess of a length of forty-eight feet but no longer than fifty-three feet, inclusive of the load carried thereon on it. A trailer greater than forty-eight feet long must be equipped with a rear under ride guard, and the distance between the kingpin of the vehicle and the center of the rear axle assembly or to the center of the tandem axle assembly if equipped with two axles must be no greater than forty-one feet;"/

Amend title to conform.

Rep. KEESLEY explained the amendment.

The amendment was then adopted.

Rep. SIMPSON spoke against the Bill.

LEAVE OF ABSENCE

The SPEAKER granted Rep. ALTMAN a temporary leave of absence to attend a meeting with International Paper Company Officials.

Rep. SIMPSON continued speaking.

Rep. BLACKWELL moved that the House recede until 2:00 P.M., which was adopted.

Further proceedings were interrupted by the House receding, the pending question being consideration of the Bill as amended, Rep. SIMPSON having the floor.

THE HOUSE RESUMES

At 2:00 P.M. the House resumed, the SPEAKER in the chair.

POINT OF QUORUM

The question of a quorum was raised.

A quorum was later present.

LEAVE OF ABSENCE

The SPEAKER granted Rep. BENNETT a leave of absence to attend a funeral.

MESSAGE FROM THE SENATE

The following was received.
Columbia, S.C., May 10, 1989

Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it has appointed Senators Waddell, McLeod and McConnell of the Committee of Conference on the part of the Senate on H. 3388:
H. 3388 - Ways and Means Committee: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 11-9-135 SO AS TO PROVIDE THAT THE SEPARATELY MAINTAINED HEALTH INSURANCE AND DENTAL INSURANCE ACCOUNTS IN THE STATE TREASURY MAY BE COMMINGLED FOR THE PURPOSES OF PAYING CLAIMS.
Very respectfully,
President

No. 41

Received as information.

H. 3722-AMENDED AND ORDERED TO THIRD READING

Debate was resumed on the following Bill, the pending question being the consideration of the Bill, Rep. SIMPSON having the floor.

H. 3722 -- Education and Public Works Committee: A BILL TO AMEND SECTION 56-5-4070, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE AUTHORIZED LENGTH OF VEHICLES AND TO LIMITATIONS ON VEHICLE COMBINATIONS OPERATED ON INTERSTATE HIGHWAYS, FEDERAL AID HIGHWAYS, AND CERTAIN OTHER HIGHWAYS, SO AS TO REVISE THE PERMISSIBLE LENGTH OF CERTAIN VEHICLES OPERATING IN TWO UNIT COMBINATIONS.

Rep. SIMPSON continued speaking.

Rep. BEASLEY proposed the following Amendment No. 9 (Doc. No. 4534U), which was adopted.

Amend the bill, as and if amended, by striking SECTION 2, page 1, lines 33 through 45 and page 2, lines 1 through 10.

Renumber sections to conform.

Amend title to conform.

Rep. BEASLEY explained the amendment.

The amendment was then adopted.

Rep. RUDNICK spoke against the Bill.

Rep. RUDNICK moved to table the Bill.

Rep. SIMPSON demanded the yeas and nays, which were not ordered.

So, the House refused to table the Bill by a division vote of 6 to 83

Rep. RUDNICK moved to continue the Bill, which was not agreed to.

The question then recurred to the passage of the Bill, as amended, on second reading.

Pursuant to Rule 7.7 the Yeas and Nays were taken resulting as follows:

Yeas 92; Nays 6

Those who voted in the affirmative are:

Alexander, T.C.        Altman                 Bailey, G.
Bailey, J.             Bailey, K.             Baker
Barfield               Baxley                 Beasley
Blackwell              Blanding               Boan
Brown, G.              Brown, H.              Brown, J.
Brown, R.              Bruce                  Burch
Burriss, M.D.          Chamblee               Clyborne
Cole                   Cooper                 Corbett
Derrick                Elliott                Faber
Fair                   Fant                   Farr
Felder                 Foster                 Gentry
Gregory                Hallman                Harris, J.
Haskins                Hayes                  Hearn
Hendricks              Hodges                 Huff
Jaskwhich              Johnson, J.C.          Johnson, J.W.
Kay                    Keegan                 Keesley
Keyserling             Klapman                Kohn
Moon                   Lanford                Limehouse
Littlejohn             Mappus                 Martin, L.
Mattos                 McAbee                 McBride
McEachin               McElveen               McGinnis
McLellan               McLeod                 McTeer
Moss                   Neilson                Nesbitt
Nettles                Phillips               Quinn
Rama                   Rhoad                  Rogers, J.
Rogers, T.             Sharpe                 Sheheen
Smith                  Snow                   Townsend
Tucker                 Vaughn                 Waites
Waldrop                Wells                  Wilder
Wilkes                 Wilkins                Winstead
Wofford                Wright

Total-92

Those who voted in the negative are:

Barber                 Holt                   Kirsh
Manly                  Rudnick                Simpson

Totals-6

So, the Bill, as amended, was read the second time and ordered to third reading.

RECORD FOR VOTING

H. 3722 - I was out of the Chamber temporarily but would like to be counted as, voting yes, in favor of the passage of the Bill.

Rep. LUCILLE S. WHIPPER.

MOTION TABLED

Rep. J. ROGERS moved that the House recur to the morning hour.

Rep. R. BROWN moved to table the motion, which was agreed to by a division vote of 61 to 31.

H. 3453-OBJECTION WITHDRAWN

Rep. MANLY withdrew her objection to the following Bill.

H. 3453 -- Rep. Kay: A BILL TO AMEND SECTION 47-5-100, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CONFINEMENT, EXAMINATION, OR DESTRUCTION OF BITING OR ATTACKING ANIMALS FOR PURPOSES OF RABIES CONTROL SO AS TO REQUIRE THE COUNTY HEALTH DEPARTMENT TO SERVE NOTICE ON THE OWNER OF A PET OTHER THAN A CAT OR DOG WHICH HAS ATTACKED OR BITTEN A PERSON REQUIRING THE OWNER TO HAVE THE PET EUTHANIZED AND THE BRAIN SUBMITTED FOR RABIES EXAMINATION AND TO REQUIRE THE SOUTH CAROLINA DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL TO REMOVE THE HEAD OF A DEAD ANIMAL DELIVERED TO IT SUSPECTED OF HAVING RABIES AND PERFORM A RABIES EXAMINATION.

H. 3748-OBJECTION WITHDRAWN

Rep. ALTMAN withdrew his objection to the following Bill.

H. 3748 -- Rep. J. Bailey: A BILL TO AMEND SECTION 6-7-740, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO BOARDS OF ZONING APPEALS AND ZONING BOARDS OF ADJUSTMENT, SO AS TO REQUIRE A TWO-THIRDS VOTE OF THE BOARD MEMBERS FOR A USE VARIANCE FROM THE TERMS OF AN ORDINANCE OR A RESOLUTION ADOPTED BY A LOCAL GOVERNING BODY.

H. 3314-OBJECTIONS WITHDRAWN

Reps. J. HARRIS, BAXLEY, TAYLOR, G. BROWN and FABER withdrew their objections to H. 3314 however, other objections remained upon the Bill.

H. 3453-OBJECTION WITHDRAWN

Rep. SHARPE withdrew his objection to the following Bill.

H. 3453 -- Rep. Kay: A BILL TO AMEND SECTION 47-5-100, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CONFINEMENT, EXAMINATION, OR DESTRUCTION OF BITING OR ATTACKING ANIMALS FOR PURPOSES OF RABIES CONTROL, SO AS TO REQUIRE THE COUNTY HEALTH DEPARTMENT TO SERVE NOTICE ON THE OWNER OF A PET OTHER THAN A CAT OR DOG WHICH HAS ATTACKED OR BITTEN A PERSON REQUIRING THE OWNER TO HAVE THE PET EUTHANIZED AND THE BRAIN SUBMITTED FOR RABIES EXAMINATION AND TO REQUIRE THE SOUTH CAROLINA DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL TO REMOVE THE HEAD OF A DEAD ANIMAL DELIVERED TO IT SUSPECTED OF HAVING RABIES AND PERFORM A RABIES EXAMINATION.

H. 3120-OBJECTION WITHDRAWN

Rep. BOAN withdrew his objection to the following Bill.

H. 3120 -- Rep. White: A BILL TO AMEND SECTION 40-43-150, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PHARMACISTS AND PROVISIONS REGARDING DANGEROUS DRUGS, LICENSED PHARMACISTS, AND DRUG OUTLETS, SO AS TO PROHIBIT THE REFILLING OF CERTAIN PRESCRIPTION MORE THAN ONE YEAR BEYOND THE DATE ON WHICH THEY WERE ORIGINALLY FILLED, AND PROVIDE THAT NOTHING IN THIS SECTION ABRIDGES ANY RIGHT OF A PHARMACIST TO REFUSE TO FILL OR REFILL ANY PRESCRIPTION.

H. 3712-OBJECTION WITHDRAWN

Rep. BARFIELD withdrew his objection to the following Bill.

H. 3712 -- Reps. Rhoad, Sheheen, Cork, Carnell, Felder, Whipper, T. Rogers, Smith, M.D. Burriss, Rama, Simpson, Farr, White, Stoddard, Fant, Mattos, Holt, G. Bailey, Manly, Fair, Blackwell, Corbett, Elliott, McKay, McLeod, McCain, K. Bailey, Hendricks, Wilder, McElveen, Foster, Washington, Mappus, Phillips, Littlejohn, Bennett, J.C. Johnson, J. Bailey, Baker, Snow, Bruce, Waldrop, D. Williams, Ferguson, Davenport, McLellan, J. Harris, Baxley, Quinn, Clyborne, Hearn, Jaskwhich, Keegan, Tucker, Barfield, Boan, Cole, Wells, L. Martin, Lanford, Altman, Lockemy, Waites and D. Martin: A BILL TO AMEND SECTION 50-11-310, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE OPEN SEASON FOR ANTLERED DEER, SO AS TO PROVIDE FOR THE STATEWIDE OPEN SEASON FROM SEPTEMBER FIRST TO JANUARY FIRST.

H. 3088-OBJECTION WITHDRAWN

Rep. RUDNICK withdrew her objection to the following Bill.

H. 3088 -- Reps. Taylor, D. Martin, Clyborne, White and Corning: A BILL TO AMEND SECTIONS 7-13-35, AS AMENDED, 7-13-40, AS AMENDED, 7-13-50, AS AMENDED, 7-13-60, 7-13-70, AS AMENDED, 7-13-610, 7-13-830, AS AMENDED, 7-16-450, 7-17-510, 7-17-520, 7-17-530, 7-17-540, 7-17-550, 7-17-560, 7-17-570, AND 7-25-140, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ELECTIONS, SO AS TO PROVIDE THAT PRIMARIES, EXCEPT MUNICIPAL PRIMARIES, MUST BE CONDUCTED BY THE STATE ELECTION COMMISSION AND THE RESPECTIVE COUNTY ELECTION COMMISSIONS, AND PROVIDE FOR HEARING AND DECIDING PROTESTS AND CONTESTS THAT MAY ARISE IN THE CASE OF MEMBERS OF THE STATE HOUSE OF REPRESENTATIVES AT THE STATE LEVEL RATHER THAN AT THE COUNTY LEVEL; TO AMEND ARTICLE 5, CHAPTER 13, TITLE 7, RELATING TO BALLOTS FOR PRIMARY ELECTIONS, BY ADDING SECTION 7-13-611 SO AS TO PROVIDE FOR THE ARRANGEMENT OF EVERY OFFICIAL COUNTY BALLOT AND OF EVERY OFFICIAL STATE BALLOT; TO PROVIDE THAT NOTHING IN THIS ACT OR ANY OTHER PROVISION OF LAW MAY BE CONSTRUED AS PROHIBITING POLITICAL PARTIES FROM CONDUCTING PRESIDENTIAL PREFERENCE PRIMARIES; TO PROVIDE THAT, IN THE CASE OF ANY COUNTY WHICH OPERATES ITS ELECTIONS THROUGH AN ELECTION AND REGISTRATION COMMISSION COMPOSED OF SEVEN MEMBERS, THE STRUCTURE AND COMPOSITION ARE NOT AFFECTED OR CHANGED BY THE PROVISIONS OF THIS ACT; TO REPEAL SECTIONS 7-9-110, RELATING TO PERMITTING COUNTY POLITICAL PARTY COMMITTEES TO ESTABLISH A COUNTY PARTY ELECTION COMMISSION FOR CERTAIN PURPOSES, AND 7-13-90, RELATING TO THE APPOINTMENT OF MANAGERS OF PRIMARIES; AND TO PROVIDE THAT CERTAIN PRIMARIES, EXCEPT MUNICIPAL PRIMARIES, MUST BE CONDUCTED BY THE STATE ELECTION COMMISSION AND THE COUNTY ELECTION COMMISSIONS ON THE SECOND TUESDAY IN JUNE OF EACH GENERAL ELECTION YEAR.

H. 3314-OBJECTIONS WITHDRAWN

Reps. SMITH and BARFIELD withdrew their objections to H. 3314 however, other objections remained upon the Bill.

H. 3895-OBJECTION WITHDRAWN

Rep. KLAPMAN withdrew his objection to H. 3895 however, other objections remained upon the Bill.

H. 3712-OBJECTIONS WITHDRAWN

Reps. BURCH and KOON withdrew their objections to the following Bill.

H. 3712 -- Reps. Rhoad, Sheheen, Cork, Carnell, Felder, Whipper, T. Rogers, Smith, M.D. Burriss, Rama, Simpson, Farr, White, Stoddard, Fant, Mattos, Holt, G. Bailey, Manly, Fair, Blackwell, Corbett, Elliott, McKay, McLeod, McCain, K. Bailey, Hendricks, Wilder, McElveen, Foster, Washington, Mappus, Phillips, Littlejohn, Bennett, J.C. Johnson, J. Bailey, Baker, Snow, Bruce, Waldrop, D. Williams, Ferguson, Davenport, McLellan, J. Harris, Baxley, Quinn, Clyborne, Hearn, Jaskwhich, Keegan, Tucker, Barfield, Boan, Cole, Wells, L. Martin, Lanford, Altman, Lockemy, Waites and D. Martin: A BILL TO AMEND SECTION 50-11-310, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE OPEN SEASON FOR ANTLERED DEER, SO AS TO PROVIDE FOR THE STATEWIDE OPEN SEASON FROM SEPTEMBER FIRST TO JANUARY FIRST.

H. 3088-OBJECTION WITHDRAWN

Rep. McGINNIS withdrew his objection to the following Bill.

H. 3088 -- Reps. Taylor, D. Martin, Clyborne, White and Corning: A BILL TO AMEND SECTIONS 7-13-35, AS AMENDED, 7-13-40, AS AMENDED, 7-13-50, AS AMENDED, 7-13-60, 7-13-70, AS AMENDED, 7-13-610, 7-13-830, AS AMENDED, 7-15-450, 7-17-510, 7-17-520, 7-17-530, 7-17-540, 7-17-560, 7-17-560, 7-17-570, AND 7-25-140, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ELECTIONS, SO AS TO PROVIDE THAT PRIMARIES, EXCEPT MUNICIPAL PRIMARIES, MUST BE CONDUCTED BY THE STATE ELECTION COMMISSION AND THE RESPECTIVE COUNTY ELECTION COMMISSIONS, AND PROVIDE FOR HEARING AND DECIDING PROTESTS AND CONTESTS THAT MAY ARISE IN THE CASE OF MEMBERS OF THE STATE HOUSE OF REPRESENTATIVES AT THE STATE LEVEL RATHER THAN AT THE COUNTY LEVEL TO AMEND ARTICLE 5, CHAPTER 13, TITLE 7, RELATING TO BALLOTS FOR PRIMARY ELECTIONS, BY ADDING SECTION 7-13-611 SO AS TO PROVIDE FOR THE ARRANGEMENT OF EVERY "OFFICIAL COUNTY BALLOT" AND OF EVERY "OFFICIAL STATE BALLOT"; TO PROVIDE THAT NOTHING IN THIS ACT OR ANY OTHER PROVISION OF LAW MAY BE CONSTRUED AS PROHIBITING POLITICAL PARTIES FROM CONDUCTING PRESIDENTIAL PREFERENCE PRIMARIES; TO PROVIDE THAT, IN THE CASE OF ANY COUNTY WHICH OPERATES ITS ELECTIONS THROUGH AN ELECTION AND REGISTRATION COMMISSION COMPOSED OF SEVEN MEMBERS, THE STRUCTURE AND COMPOSITION ARE NOT AFFECTED OR CHANGED BY THE PROVISIONS OF THIS ACT; TO REPEAL SECTIONS 7-9-110, RELATING TO PERMITTING COUNTY POLITICAL PARTY COMMITTEES TO ESTABLISH A COUNTY PARTY ELECTION COMMISSION FOR CERTAIN PURPOSES, AND 7-13-90, RELATING TO THE APPOINTMENT OF MANAGERS OF PRIMARIES; AND TO PROVIDE THAT CERTAIN PRIMARIES, EXCEPT MUNICIPAL PRIMARIES, MUST BE CONDUCTED BY THE STATE ELECTION COMMISSION AND THE COUNTY ELECTION COMMISSIONS ON THE SECOND TUESDAY IN JUNE OF EACH GENERAL ELECTION YEAR.

AMENDMENT NO. 4-RECONSIDERED AND TABLED

The motion of Rep. SHEHEEN to reconsider the vote whereby Amendment No. 4 on the following Bill was adopted, was taken up and agreed to.

H. 3712 -- Reps. Rhoad, Sheheen, Cork, Carnell, Felder, Whipper, T. Rogers, Smith, M.D. Burriss, Rama, Simpson, Farr, White, Stoddard, Fant, Mattes, Holt, G. Bailey, Manly, Fair, Blackwell, Corbett, Elliott, McKay, McLeod, McCain, K. Bailey, Hendricks, Wilder, McElveen, Foster, Washington, Mappus, Phillips, Littlejohn, Bennett, J.C. Johnson, J. Bailey, Baker, Snow, Bruce, Waldrop, D. Williams, Ferguson, Davenport, McLellan, J. Harris, Baxley, Quinn, Clyborne, Hearn, Jaskwhich, Keegan, Tucker, Barfield, Bean, Cole, Wells, L. Martin, Lanford, Altman, Lockemy, Waites and D. Martin: A BILL TO AMEND SECTION 50-11-310, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE OPEN SEASON FOR ANTLERED DEER, SO AS TO PROVIDE FOR THE STATEWIDE OPEN SEASON FROM SEPTEMBER FIRST TO JANUARY FIRST.

Rep. RHOAD moved to table the amendment, which was agreed to.

OBJECTION TO RECALL

Rep. WILKINS asked unanimous consent to recall H. 3898 from the Committee on Ways and Means.

Rep. FANT objected.

OBJECTION TO RECALL

Rep. FARR asked unanimous consent to recall H. 3254 from the Committee on Labor, Commerce and Industry.

Rep. GENTRY objected.

REPORT OF STANDING COMMITTEE

Rep. MOSS, with unanimous consent, from the Committee on Medical, Military, Public and Municipal Affairs, submitted a favorable report, with amendments, on:

H. 3981 -- Reps. J. Rogers and Hodges: A BILL TO AMEND SECTION 40-47-140, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO STANDARDS FOR EXAMINATION OF PHYSICIANS, SO AS TO SET STANDARDS FOR FLEX AND APEX EXAMINATIONS.

RULE 5.12-WAIVED

Rep. MOSS moved to waive Rule 5.12, which was agreed to by a division vote of 78 to 0.

Ordered for consideration tomorrow.

S. 736-RECALLED FROM THE COMMITTEE ON
EDUCATION AND PUBLIC WORKS

On motion of Rep. J. ROGERS, with unanimous consent, the following Bill was ordered recalled from the Committee on Education and Public Works.

S. 738 -- Senators Mullinex, J. Verne Smith, O'Dell and Stilwell: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 30 TO CHAPTER 3, TITLE 56, SO AS TO PROVIDE FOR TEMPORARY LICENSE PLATES AND CERTIFICATES OF REGISTRATION OF MOTOR VEHICLES USED ONLY FOR CORPORATE RESEARCH AND DEVELOPMENT.

S. 736- RULE 5.12-WAIVED

Rep. J. ROGERS moved to waive Rule 5.12 on the following Bill, which was agreed to by a division vote of 90 to 0.

S. 736 -- Senators Mullinex, J. Verne Smith, O'Dell and Stilwell: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 30 TO CHAPTER 3, TITLE 56, SO AS TO PROVIDE FOR TEMPORARY LICENSE PLATES AND CERTIFICATES OF REGISTRATION OF MOTOR VEHICLES USED ONLY FOR CORPORATE RESEARCH AND DEVELOPMENT.

S. 333-CONFERENCE REPORT ADOPTED

The Conference Report on the following Bill was taken up.

S. 333 -- Banking and Insurance Committee: A BILL TO AMEND SECTION 38-71-310, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO APPROVAL OF ACCIDENT, HEALTH, OR ACCIDENT AND HEALTH INSURANCE POLICIES ISSUED OR DELIVERED IN THIS STATE, SO AS TO REVISE THE MANNER IN WHICH PREMIUM RATES FOR CERTAIN ACCIDENT AND HEALTH INSURANCE POLICIES ARE APPROVED.

Rep. RUDNICK spoke against the Conference Report.

Rep. R. BROWN spoke in favor of the Conference Report.

Rep. RUDNICK moved to recommit the Conference Report to the Conference Committee.

So, the House refused to recommit the Conference Report by a division vote of 26 to 70.

The question then recurred to the adoption of the Conference Report, which was agreed to.

H. 3161-SENATE AMENDMENTS
AMENDED AND SENT TO THE SENATE

The Senate Amendments to the following Bill were taken up for consideration.

H. 3161 - Reps. Gregory, Fair, McLellan, Short, Kirsh, J. Brown and Wilkins: A BILL TO REAUTHORIZE THE EXISTENCE OF THE PUBLIC SERVICE COMMISSION FOR SIX YEARS; TO AMEND SECTIONS 58-3-100, 58-5-240, 58-9-540, 58-21-10, 58-23-20, 58-23-330, AS AMENDED, 58-23-1010, AND 58-27-870, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PUBLIC SERVICE COMMISSION, SO AS TO PROVIDE A PENALTY FOR COUNTIES WHICH DO NOT REMIT ASSESSMENTS TO THE COMMISSION IN A TIMELY MANNER, TO REQUIRE THE COMMISSION TO DOCUMENT REASONS FOR CHANGES IN RATES AND SPECIFY AN ALLOWABLE OPERATING MARGIN IN WATER AND WASTEWATER RATE ORDERS, TO PROVIDE THAT THE COMMISSION MAY NOT FIX OR APPROVE THE RATES, FARES, OR CHARGES FOR INTERURBAN RAILWAYS OR BUSES, TO PROVIDE THAT BUSES OF REGULATED UTILITIES ARE NOT EXEMPT FROM COMMISSION REGULATION BUT THAT MOTOR VEHICLES OF MOTOR CARRIERS USED INCIDENTAL TO THE CARRIER'S BUSINESS ARE NOT SUBJECT TO COMMISSION REGULATION, TO PROVIDE THAT CERTIFICATES OF MOTOR CARRIERS OR AMENDMENTS TO THEM MUST BE APPROVED ACCORDING TO CRITERIA ESTABLISHED BY THE COMMISSION, AND TO PROVIDE THAT REASONS FOR RESTRICTIONS ON CERTIFICATES OR AMENDMENTS MUST BE JUSTIFIED BY THE COMMISSION IN WRITING; AND TO REPEAL SECTIONS 58-11-10 THROUGH 58-11-160, SECTION 58-23-1510, AND ARTICLE 19, CHAPTER 9 OF TITLE 58 RELATING TO RADIO COMMON CARRIERS, BUSES, AND TAXIS IN CITIES OF THIRTY THOUSAND TO FIFTY THOUSAND POPULATION AND TELEGRAPH AND EXPRESS COMPANIES.

Rep. NETTLES proposed the following Amendment No. 3 (Doc. No. 3943U), which was adopted.

Amend the bill, as and if amended, by striking Section 10 in its entirety.

Renumber sections to conform.

Amend title to conform.

Rep. NETTLES explained the amendment.

Rep. GREGORY spoke against the amendment.

Rep. NETTLES spoke in favor of the amendment.

Rep. GREGORY moved to table the amendment.

Rep. NETTLES demanded the yeas and nays, which were taken resulting as follows:

Yeas 23; Nays 68

Those who voted in the affirmative are:

Bailey, J.             Bailey, K.             Barber
Blanding               Brown, G.              Burriss, M.D.
Fair                   Farr                   Gregory
Hallman                Hayes                  Hearn
Kirsh                  Manly                  McAbee
McCain                 McLellan               McLeod
Sharpe                 Smith                  Wilder
Wilkes                 Winstead

Total--23

Those who voted in the negative are:

Alexander, M.O.        Alexander, T.C.        Bailey, G.
Baker                  Barfield               Baxley
Blackwell              Boan                   Brown, J.
Brown, R.              Bruce                  Burch
Clyborne               Cooper                 Corbett
Cork                   Davenport              Derrick
Elliott                Faber                  Fant
Felder                 Ferguson               Foster
Gentry                 Glover                 Harris, J.
Harvin                 Haskins                Hendricks
Hodges                 Holt                   Huff
Jaskwhich              Johnson, J.C.          Johnson, J.W.
Kay                    Keegan                 Keesley
Klapman                Limehouse              Littlejohn
Mappus                 Martin, L.             McEachin
McElveen               McGinnis               Moss
Neilson                Nettles                Phillips
Quinn                  Rama                   Rhoad
Rogers, J.             Rogers, T.             Rudnick
Sheheen                Snow                   Taylor
Tucker                 Vaughn                 Waites
Waldrop                Washington             Wells
Whipper                Wright

Total--68

So, the House refused to table the amendment.

The question then recurred to the adoption of the amendment, which was agreed to.

Rep. T. ROGERS proposed the following Amendment No. 4 (Doc. No. 4401U), which was tabled.

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

/SECTION ___. The 1976 Code is amended by adding:

"Section 58-3-141. Upon petition by the Consumer Advocate and a determination on it, the Public Service Commission is authorized to allow the Consumer Advocate, in connection with carrying out his responsibilities as provided in Chapter 6 of Title 37, to undertake periodic audits of companies regulated by the Public Service Commission, as well as their sister affiliates and parent holding companies."/

Renumber sections to conform.

Amend title to conform.

POINT OF ORDER

Rep. FELDER raised the Point of Order that Amendment No. 4 was out of order as it was not germane under Mason's, Section 402, Subsection 5, which states that an amendment to an amendment must be germane to the subject of the amendment as well as to the main question.

He further stated that Amendment No. 4 did not refer to anything that the Senate amended. He also stated that the Amendment added a new section which was presently not in the Code and the body of the Amendment referred back to Chapter 6, Title 37, which was the Consumer Protection Code, and under Rule 9.3, the question under consideration, the Public Service Commission, not the Consumer Protection Code, the main thrust of the Amendment was to add a new section to the Consumer Protection Code, and not to the section that the main question of the Bill addressed.

The SPEAKER stated that there were two arguments, one being only discussing the items that the Senate amended, and the second being germaneness to the entire Bill. He further stated that the House was allowed to amend any portion of the Bill, which had already been done by adopting a previous amendment. He further stated that he was troubled by the division of the Bill, as it came from the Senate, in Section 2, which dealt with the Commission's determination of a fair rate of return in both Subsection H, under Section 2, and Subsection E, under Section 3, and the Commissions authority under Section 4, all of which dealt with the determination process of determining rates that are allowed and the rate of return.

Rep. FELDER further argued the Point.

The SPEAKER further stated the Amendment dealt with the Public Service Commission's rate-making process, but it granted certain authorities to the Consumer Advocate, subject to approval by the Public Service Commission.

Rep. FELDER further argued the Point in stating that the main thrust of the Amendment was to enhance the power of the Consumer Advocate in rate proceedings, under the Consumer Protection Code, because the body of the Amendment refers directly to Chapter 6, Title 37.

The SPEAKER stated that although Chapter 6, Title 37, was included in the Consumer Protection Code, that it specifically vests the Consumer Advocate with the right to go before the Public Service Commission in rate hearings and it granted him access to agencies and business records in that Title, but the functions in Title 37 were not limited purely to his credit regulatory functions.

Rep. FELDER further stated that the Amendment added a new section of the law, which was not in existence today in the Public Service Commission section of the law, Title 58, and the amendment had nothing to do with Title 58, which is the reorganization of the Public Service Commission, not the Consumer Protection Code.

The SPEAKER further stated that the Consumer Advocate was not granted unrestricted access, but access subject to approval by the Public Service Commission, and that had to be in Title 58 and he overruled the Point of Order on germaneness.

Rep. T. ROGERS explained the amendment.

Rep. GREGORY moved to table the amendment.

Rep. T. ROGERS demanded the yeas and nays, which were not ordered.

So, the amendment was tabled by a division vote of 76 to 12.

Rep. J. ROGERS proposed the following Amendment No. 5 (Doc. No. 4545U), which was adopted.

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

/SECTION_____. When federal law permits, the public service commission may regulate service and rates for cable television./

Renumber sections to conform.

Amend title to conform.

Rep. J. ROGERS explained the amendment.

The amendment was then adopted.

The Senate Amendments, as amended, were then agreed to and the Bill ordered sent to the Senate.

H. 3040- SENATE AMENDMENTS CONCURRED IN
AND BILL ENROLLED

The Senate Amendments to the following Bill were taken up for consideration.

H. 3040 -- Reps. Wilkins, Huff and Nettles: A BILL TO AMEND SECTIONS 17-24-10 AND 17-24-30, BOTH AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEFENSE OF INSANITY, SO AS TO PROVIDE THAT IT IS AN AFFIRMATIVE DEFENSE WHICH THE DEFENDANT HAS THE BURDEN OF PROVING BY A PREPONDERANCE OF THE EVIDENCE; AND TO AMEND SECTION 17-24-20, AS AMENDED, RELATING TO A VERDICT OF GUILTY BUT MENTALLY ILL, SO AS TO FURTHER PROVIDE FOR THE BURDEN OF PROOF IN THESE CASES.

The Senate Amendments were agreed to, and the Bill, having received three readings in both Houses, it was ordered that the title be changed to that of an Act, and that it be enrolled for ratification.

H. 3414-SENATE AMENDMENTS CONCURRED IN
AND BILL ENROLLED

The Senate Amendments to the following Bill were taken up for consideration.

H. 3414 -- Reps. Beasley, Hayes, Fair, P. Harris, J. Harris, Carnell and Mattos: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 23 TO CHAPTER 7, TITLE 20, SO AS TO PROVIDE FOR THE CONTINUUM OF CARE FOR EMOTIONALLY DISTURBED CHILDREN BY SETTING FORTH ITS PURPOSES AND PROVIDING FOR COMMISSION MEMBERS, MEETINGS, AN ADVISORY COUNCIL, THE CHILDREN TO BE SERVED, DUTIES AND FUNCTIONS, DIRECTOR AND STAFF EMPLOYMENT, REPORTS TO THE GOVERNOR AND GENERAL ASSEMBLY, AND ADMINISTRATIVE SUPPORT; TO PROVIDE FOR THE INITIAL TERMS OF THE COMMISSION AND ADVISORY COUNCIL; TO REPEAL CHAPTER 83, TITLE 44, RELATING TO THE CONTINUUM OF CARE FOR EMOTIONALLY DISTURBED CHILDREN.

Rep. MOSS explained the Senate amendment.

The Senate Amendments were agreed to, and the Bill, having received three readings in both Houses, it was ordered that the title be changed to that of an Act, and that it be enrolled for ratification.

H. 3790-SENATE AMENDMENTS CONCURRED IN
AND BILL ENROLLED

The Senate Amendments to the following Bill were taken up for consideration.

H. 3790 -- Reps. McLellan and T.C. Alexander: A BILL TO DESIGNATE A ROAD IN OCONEE COUNTY AS THE "SAMUEL BRUCE ROCHESTER MEMORIAL HIGHWAY".

The Senate Amendments were agreed to, and the Bill, having received three readings in both Houses, it was ordered that the title be changed to that of an Act, and that it be enrolled for ratification.

H. 3336-SENATE AMENDMENTS CONCURRED IN
AND BILL ENROLLED

The Senate Amendments to the following Bill were taken up for consideration.

H. 3336 -- Reps. Holt, Winstead, Washington, J. Bailey, D. Martin, Kohn and Hallman: A BILL TO AMEND SECTION 5-31-210; CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO COMMISSIONERS OF PUBLIC WORKS, SO AS TO PROVIDE THAT MUNICIPALITIES HAVING A POPULATION OF TWENTY THOUSAND OR LESS ACCORDING TO THE 1950 CENSUS MAY ELECT TWO ADDITIONAL COMMISSIONERS AT ANY GENERAL ELECTION AFTER AUTHORIZING THEM BY ORDINANCE.

The Senate Amendments were agreed to, and the Bill, having received three readings in both Houses, it was ordered that the title be changed to that of an Act, and that it be enrolled for ratification.

S. 216--NON-CONCURRENCE IN SENATE AMENDMENTS

The Senate Amendments to the following Joint Resolution were taken up for consideration.

S. 216 -- Finance Committee: A JOINT RESOLUTION TO PROVIDE THAT THE TIME FOR FILING OF APPLICATIONS FOR AD VALOREM PROPERTY TAX EXEMPTION REQUIRED BY SECTION 12-3-145, CODE OF LAWS OF SOUTH CAROLINA, 1976, FOR THE 1987 AND 1988 TAXABLE YEARS IS EXTENDED UNTIL JULY 1, 1989.

The House refused to agree to the Senate Amendments by a division vote of 30 to 51 and a message was ordered sent accordingly.

H. 3051--SENATE AMENDMENTS AMENDED
AND SENT TO THE SENATE

The Senate Amendments to the following Bill were taken up for consideration.

H. 3051 -- Rep. Kirsh: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 7 TO CHAPTER 3 OF TITLE 50 SO AS TO CREATE THE SOUTH CAROLINA WILDLIFE ENDOWMENT FUND TO BE FUNDED FROM THE PROCEEDS OF LIFETIME HUNTING AND FISHING LICENSES; TO AMEND THE 1976 CODE BY ADDING SECTIONS 50-9-11 AND 50-9-16 SO AS TO PROVIDE FOR LIFETIME COMBINATION HUNTING AND FISHING LICENSES AND LIFETIME SPORTSMAN LICENSES.

Reps. BENNETT and CORK proposed the following Amendment No. 2 (Doc. No. 4309U), which was adopted.

Amend the bill, as and if amended, page 5, by striking Section 6 in its entirety.

Amend further, page 5, by striking Section 7 and inserting:

/SECTION 7. This act takes effect July 1, 1990./

Renumber sections to conform.

Amend title to conform.

Rep. CORK explained the amendment.

The amendment was then adopted.

The Senate Amendments, as amended, were then agreed to and the Bill ordered sent to the Senate.

H. 3528-SENATE AMENDMENTS AMENDED
AND SENT TO THE SENATE

The Senate Amendments to the following Bill were taken up for consideration.

H. 3528 - Reps. Sharpe, Hallman, Corbett, G. Brown, Koon, Rhoad, Sturkie, Bennett, Manly, Littlejohn, M.O. Alexander, K. Bailey, Waites, Snow, Bruce and Barfield: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-13-65, SO AS TO MAKE IT UNLAWFUL FOR ANY PERSON TO STEAL FISH IN WHICH ANY OTHER PERSON HAS PROPERTY RIGHTS AND TO PROVIDE PENALTIES FOR VIOLATIONS.

Reps. BENNETT and CORK proposed the following Amendment No. 2 (Doc. No. 0096R}, which was adopted.

Amend the bill, as and if amended, SECTION 4, Page 3 by striking Section 50-17-685 and inserting:

/Section 50-17-685. A turtle excluder device must be used in trawl nets in state waters under the same conditions required by federal regulations.

The Wildlife and Marine Resources Department must follow the federal enforcement guidelines when enforcing any state turtle excluder device regulations.

Amend title to conform.

Rep. CORK explained the amendment.

The amendment was then adopted.

The Senate Amendments, as amended, were then agreed to and the Bill ordered sent to the Senate.

H. 3128-NON-CONCURRENCE IN SENATE AMENDMENTS

The Senate Amendments to the following Bill were taken up for consideration.

H. 3128 -- Rep. McEachin: A BILL TO AMEND CHAPTER 1, TITLE 50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO FISH AND GAME, BY ADDING SECTION 50-1-25 SO AS TO PROVIDE FOR A BIRD DOG TRAINING SEASON FROM OCTOBER FIRST THROUGH THE DAY BEFORE THE OPENING OF QUAIL SEASON EACH YEAR, TO REQUIRE THAT NO GAME MAY BE TAKEN BY TRAINERS DURING THE TRAINING SEASON, AND TO REQUIRE BIRD DOG TRAINERS TO HAVE THE APPROPRIATE HUNTING LICENSES AND PERMITS.

Rep. RHOAD explained the Senate Amendment.

The House refused to agree to the Senate Amendments by a division vote of 0 to 63, and a message was ordered sent accordingly.

H. 3847--SENATE AMENDMENTS CONCURRED
IN AND BILL ENROLLED

The Senate Amendments to the following Bill were taken up for consideration.

H. 3847 -- Medical, Military, Public and Municipal Affairs Committee: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 11 TO TITLE 37 SO AS TO PROVIDE FOR THE LICENSING AND REGULATION OF CONTINUING CARE RETIREMENT COMMUNITIES BY SETTING FORTH RELATED DEFINITIONS, LICENSING AND REGULATING REQUIREMENTS, FINANCIAL DUTIES, DISCLOSURE REQUIREMENTS, THE ESTABLISHMENT OF A COMPLAINT SYSTEM, BILLING REQUIREMENTS, EXAMINATION OF THE COMMUNITIES, EXEMPTIONS, ESTABLISHMENT OF AN ESCROW ACCOUNT, SANCTIONS FOR NONCOMPLIANCE, THE APPEAL PROCESS, PENALTIES FOR VIOLATIONS, A WAIVER OF REQUIREMENTS, AND EFFECTIVE DATE OF CHAPTER REQUIREMENTS FOR CERTAIN COMMUNITIES.

Rep. BLACKWELL explained the Senate Amendment.

The Senate Amendments were agreed to, and the Bill, having received three readings in both Houses, it was ordered that the title be changed to that of an Act, and that it be enrolled for ratification.

H. 3353-SENATE AMENDMENTS CONCURRED
IN AND BILL ENROLLED

The Senate Amendments to the following Bill were taken up for consideration.

H. 3353 -- Reps. R. Brown, J. Rogers, McEachin, Beasley, Lockemy, Harwell, Davenport, M.O. Alexander, Glover, Manly, Farr, Cole, Littlejohn, Jaskwhich, Waldrop, G. Bailey and Keegan: A BILL TO AMEND TITLE 49, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 29 SO AS TO ENACT THE SOUTH CAROLINA SCENIC RIVERS ACT OF 1989; AND TO REPEAL CHAPTER 5, TITLE 51 OF THE 1976 CODE RELATING TO SCENIC RIVERS.

Rep. SNOW explained the Senate Amendment.

The Senate Amendments were agreed to, and the Bill, having received three readings in both Houses, it was ordered that the title be changed to that of an Act, and that it be enrolled for ratification.

H. 3877-SENATE AMENDMENTS CONCURRED
IN AND BILL ENROLLED

The Senate Amendments to the following Bill were taken up for consideration.

H. 3877 -- Rep. McLellan: A BILL TO AMEND TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 122 SO AS TO AUTHORIZE THE BOARD OF VISITORS OF THE CITADEL TO ISSUE STUDENT AND FACULTY HOUSING REVENUE BONDS IN ORDER TO PROVIDE FUNDS FOR THE ACQUISITION, CONSTRUCTION, RENOVATION, OR EQUIPPING OF STUDENT AND FACULTY HOUSING AND RELATED AUXILIARY FACILITIES, TO PROVIDE THAT THE BONDS MUST BE SECURED BY A LIEN ON AND PLEDGE OF REVENUES DERIVED FROM STUDENT AND FACULTY HOUSING AND AUXILIARY FACILITIES AND OPERATIONS, TO PROVIDE PROCEDURES RELATING TO THE AUTHORIZATION OF THE BONDS; AND TO REPEAL ACT 619 OF 1967 AND SECTION 7 OF ACT 194 OF 1979 RELATING TO THE AUTHORIZATION OF THE BOARD OF VISITORS TO ISSUE STUDENT HOUSING RENOVATION BONDS.

Rep. McLELLAN explained the Senate Amendment.

The Senate Amendments were agreed to, and the Bill, having received three readings in both Houses, it was ordered that the title be changed to that of an Act, and that it be enrolled for ratification.

H. 3060-SENATE AMENDMENTS CONCURRED
IN AND BILL ENROLLED

The Senate Amendments to the following Bill were taken up for consideration.

H. 3060 -- Rep. Kirsh: A BILL TO AMEND CHAPTER 11, TITLE 26, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO NOTARIES PUBLIC, BY ADDING SECTION 26-1-95 SO AS TO MAKE IT ILLEGAL FOR A NOTARY PUBLIC IN HIS OFFICIAL CAPACITY TO FALSELY CERTIFY THE AFFIRMING OR SWEARING OF A PERSON TO AN INSTRUMENT, AFFIDAVIT, OR WRITING, TO PROVIDE A PENALTY FOR VIOLATION, AND TO REQUIRE A NOTARY PUBLIC CONVICTED UNDER THE PROVISIONS OF THIS SECTION TO FORFEIT HIS COMMISSION.

The Senate Amendments were agreed to, and the Bill, having received three readings in both Houses, it was ordered that the title be changed to that of an Act, and that it be enrolled for ratification.

H. 3599-NON-CONCURRENCE IN SENATE AMENDMENTS

The Senate Amendments to the following Bill were taken up for consideration.

H. 3599 -- Judiciary Committee: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 19-11-95 SO AS TO PROVIDE THAT CONFIDENCES OR SECRETS OF A PATIENT IN THE COURSE OF DIAGNOSIS OR TREATMENT OF A MENTAL OR EMOTIONAL CONDITION MAY NOT BE REVEALED BY PROVIDERS OR SOCIAL WORKERS, AS DEFINED BY THIS ACT, SUBJECT TO EXCEPTIONS, AND TO ALLOW A CAUSE OF ACTION FOR VIOLATION OF THE SECTION.

The House refused to agree to the Senate Amendments, and a message was ordered sent accordingly.

H. 3062-SENATE AMENDMENTS CONCURRED
IN AND BILL ENROLLED

The Senate Amendments to the following Bill were taken up for consideration.

H. 3062 -- Reps. Kirsh and Mappus: A BILL TO AMEND TITLE 48, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ENVIRONMENTAL PROTECTION AND CONSERVATION, BY ADDING CHAPTER 53 SO AS TO REQUIRE ALL VEHICLES WHICH TRANSPORT LITTER TO PROVIDE A MEANS OF COVERING THE VEHICLE TO PREVENT LITTER FROM DROPPING, SIFTING, LEAKING, OR OTHERWISE ESCAPING FROM THE VEHICLE AND TO PROVIDE A PENALTY FOR VIOLATION.

The Senate Amendments were agreed to, and the Bill, having received three readings in both Houses, it was ordered that the title be changed to that of an Act, and that it be enrolled for ratification.

H. 3693-SENATE AMENDMENTS CONCURRED
IN AND BILL ENROLLED

The Senate Amendments to the following Bill were taken up for consideration.

H. 3693 -- Rep. J. Rogers: A BILL TO AMEND ARTICLE 9, CHAPTER 11, TITLE 16, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO BOOTLEG RECORDS AND TAPES, SO AS TO FURTHER PROVIDE FOR THE UNLAWFUL PIRATING, BOOTLEGGING, AND COUNTERFEITING OF RECORDS, TAPES, AND RECORDINGS, AND TO REVISE THE PENALTIES FOR VIOLATIONS.

Rep. J. ROGERS explained the Senate Amendment.

The Senate Amendments were agreed to, and the Bill, having received three readings in both Houses, it was ordered that the title be changed to that of an Act, and that it be enrolled for ratification.

H. 3695-SENATE AMENDMENTS AMENDED
AND SENT TO SENATE

The Senate Amendments to the following Bill were taken up for consideration.

H. 3696 -- Labor, Commerce and Industry Committee: A BILL TO AMEND SECTIONS 38-77-30, AS AMENDED, 38-77-150, 38-77-160, AS AMENDED, 38-77-110, 38-77-140, 38-73-735, 38-73-10, 38-73-40, 38-73-720, 38-73-730, 38-73-750, 38-73-760, 38-73-770, 38-77-10, AS AMENDED, 38-77-910, 38-77-950, AS AMENDED, 38-77-280, AS AMENDED, 38-77-112, AS AMENDED, 38-77-580, AS AMENDED, 38-77-620, 38-77-920, 38-57-130, 38-55-170, 38-73-1210, 38-73-455, AS AMENDED, 38-77-590, AS AMENDED, 38-73-457, AS AMENDED, AND 38-57-140, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE STATE'S INSURANCE LAWS, 56-9-330, 56-10-240, AS AMENDED, 56-10-40, 56-10-280, 56-1-80, AND 56-3-1350, RELATING TO THE MOTOR VEHICLE LAWS, 37-6-604 AND 37-6-605, RELATING TO THE DIVISION OF CONSUMER ADVOCACY IN THE DEPARTMENT OF CONSUMER AFFAIRS, 16-11-125, RELATING TO THE CRIME OF MAKING FALSE CLAIM OR STATEMENT IN SUPPORT OF A CLAIM TO OBTAIN INSURANCE BENEFITS FOR FIRE OR EXPLOSION LOSS, 16-11-130, RELATING TO THE CRIME OF BURNING PERSONAL PROPERTY TO DEFRAUD AN INSURER, 23-41-30, RELATING TO THE ARSON REPORTING IMMUNITY ACT AND THE RELEASE OF INFORMATION BY AN INSURANCE COMPANY, AND ACT 683 OF 1988, RELATING TO THE WAITING PERIOD REQUIRED BY SECTION 38-73-960 AND ITS EXTENSION BY THE CHIEF INSURANCE COMMISSIONER, AND BY ADDING SECTIONS 38-77-341, 34-3-110, 38-77-114, 38-73-467, 38-77-25, 38-73-545, 38-73-550, 38-73-555, 38-77-111, 38-77-113, 38-73-1370, 38-73-1380, 38-73-1400, 38-73-1410, AND 38-73-1420 AND ARTICLE 48 TO CHAPTER 5, TITLE 56 (SAFETY BELTS AND PENALTY), SO AS TO ENACT THE "AUTOMOBILE INSURANCE REFORM ACT OF 1989"; TO DELETE SUBSECTION (E) OF SECTION 38-77-280, RELATING TO AUTHORIZATION FOR INSURERS OF AUTOMOBILE INSURANCE TO CHARGE A RATE FOR PHYSICAL DAMAGE INSURANCE COVERAGES DIFFERENT FROM THOSE PROVIDED FOR ELSEWHERE IN THE INSURANCE CODE AND TO THE PROVISION THAT NO POLICY OF AUTOMOBILE INSURANCE WHICH INCLUDES PHYSICAL DAMAGE INSURANCE COVERAGES OFFERED TO AN APPLICANT OR EXISTING POLICYHOLDER PURSUANT TO THIS SUBSECTION MAY BE CEDED TO THE REINSURANCE FACILITY: TO REPEAL SECTIONS 38-77-240, 38-77-250, 38-77-260, 38-77-270, 38-77-290, 38-77-300, AND 38-77-310, RELATING TO AUTOMOBILE INSURANCE: TO AMEND SECTION 16-1-10, AS AMENDED, RELATING TO CRIMES CLASSIFIED AS FELONIES, SO AS TO INCLUDE THE CRIME IN SECTION 16-11-125 (IF THE CLAIM IS FIVE HUNDRED DOLLARS OR MORE), THE CRIMES IN SECTION 16-11-130, AND THE CRIMES RELATING TO WILFULLY INCLUDING IN A PRIVATE PASSENGER AUTOMOBILE INSURANCE RATE FILING ANY EXPENSE OR LOSS WHICH WAS GENERATED IN WHOLE OR IN PART BY EITHER ANOTHER LINE OF INSURANCE OR GENERAL EXPENSES OR OVERHEAD APPLICABLE TO ALL LINES (EXCEPT UNDER CERTAIN CIRCUMSTANCES), OR RELATING TO ADOPTING A DIFFERENT METHOD OR USAGE OF ALLOCATING OR TREATING EXPENSES OR LOSSES FOR PURPOSES OF RATE FILINGS IN SOUTH CAROLINA FROM THAT WHICH IT USES IN OTHER STATES FOR SIMILAR LINES OF INSURANCE (EXCEPT UNDER CERTAIN CONDITIONS), OR RELATING TO GIVING A FALSE AFFIDAVIT THAT AN INSURANCE COMPANY'S EXPENSES ARE BEING ALLOCATED AND TREATED PROPERLY AND THAT PRIVATE PASSENGER AUTOMOBILE INSUREDS ARE NOT BEING CHARGED AN INEQUITABLE OR UNFAIR SHARE OF THE INSURER'S EXPENSES, ACQUISITION COSTS, OVERHEAD, OR OTHER EXPENSES; AND, IN ENACTING THE "AUTOMOBILE INSURANCE REFORM ACT OF 1989", TO INCLUDE SEPARATE, ADDITIONAL PROVISIONS DEALING WITH, AMONG OTHER THINGS, PROVISIONS THAT NO UNINSURED ON UNDERINSURED MOTORIST COVERAGE NEED BE PROVIDED IN SOUTH CAROLINA BY ANY EXCESS OR UMBRELLA POLICY OF INSURANCE, PROVIDING THAT WITHIN FORTY-FIVE DAYS AFTER THE EFFECTIVE DATE OF THIS ACT ALL LICENSED INSURERS AND LICENSED RATING ORGANIZATIONS AUTHORIZED TO WRITE AUTOMOBILE INSURANCE PASSENGER AUTOMOBILE BEHALF OF THEIR MEMBERS OR MUST SUBMIT TO THE CHIEF COMMISSIONER REVISED BASE OBJECTIVE STANDARD RATES FOR PRIVATE PASSENGER AUTOMOBILE BODILY INJURY LIABILITY COVERAGE AND UNINSURED MOTORIST COVERAGE AND PROVIDING THAT THESE REVISED RATES MUST REFLECT A DECREASE IN THE APPROVED PREMIUM CHARGE FOR EACH OF THESE COVERAGES OF NOT LESS THAN SIX AND NINE-TENTHS PERCENT, REQUIRING THE CHIEF INSURANCE COMMISSIONER AT LEAST ANNUALLY TO CAUSE TO HAVE PUBLISHED AND MAKE AVAILABLE A REPRESENTATIVE SAMPLE OF THE PRIVATE PASSENGER PREMIUMS BEING CHARGED BY AT LEAST THE TWENTY INSURANCE COMPANIES HAVING THE LARGEST MARKET SHARE IN EACH TERRITORY TO FACILITATE PRICE COMPARISONS BY INSUREDS AND PROSPECTIVE INSUREDS WHO ARE SEEKING NEW COVERAGE, PROVIDING THAT NO RATE FILING FOR PRIVATE PASSENGER AUTOMOBILE INSURANCE MAY INCLUDE OR BE BASED UPON ACTUAL OR PROJECTED LOSS OR EXPENSE DATA WHICH INCLUDES PAYMENTS MADE ON POLICIES WHEREIN THE AMOUNT OF THE SETTLEMENT, JUDGMENT, OR OTHER PAYMENT BY THE INSURER WAS IN EXCESS OF THE POLICY LIMITS EXCLUSIVE OF INTEREST AND COSTS, PROVIDING THAT NO RATE FILING FOR PRIVATE PASSENGER AUTOMOBILE INSURANCE MAY INCLUDE OR BE BASED UPON ACTUAL OR PROJECTED LOSS OR EXPENSE DATA WHICH INCLUDES PAYMENTS MADE AS A RESULT OF THE INSURER'S TORTIOUS BREACH OF ITS DUTY OF GOOD FAITH AND FAIR DEALING, PROVIDING THAT THERE IS NO PERSONAL INJURY PROTECTION COVERAGE MANDATED UNDER THE AUTOMOBILE INSURANCE LAWS OF THIS STATE BUT THAT IF AN INSURER OFFERS THIS COVERAGE, THE BENEFITS PAYABLE UNDER THE COVERAGE MAY BE ASSIGNED TO HOSPITALS, FUNERAL HOMES, PHYSICIANS, OR OTHER MEDICAL PROVIDERS, PROVIDING THAT MEDICAL PAYMENTS COVERAGE MAY BE OFFERED AS AN OPTIONAL COVERAGE UNDER THE AUTOMOBILE INSURANCE LAWS OF THE STATE BUT THAT THERE IS NO REQUIREMENT THAT MEDICAL PAYMENTS COVERAGE BE OFFERED AND THAT IF AN INSURER OFFERS THIS COVERAGE, THE BENEFITS PAYABLE UNDER THE COVERAGE MAY BE ASSIGNED TO HOSPITALS, FUNERAL HOMES, PHYSICIANS, OR OTHER MEDICAL PROVIDERS, REQUIRING THAT, TO INSURE THAT ALL AUTOMOBILE INSURANCE POLICIES ARE RATED TO REFLECT THE DRIVING RECORD OF ALL INSUREDS NAMED IN THE POLICY, ALL INSURERS OR THEIR AGENTS ARE REQUIRED TO OBTAIN A MOTOR VEHICLE REPORT ON EACH NAMED INSURED AT THE POINT OF SALE AND AT LEAST ANNUALLY AFTER THE SALE, AND REQUIRING THE CHIEF INSURANCE COMMISSIONER TO REVIEW ALL FORMS OF INSURANCE COVERED BY ANY SECTION OF THIS ACT AND TO ORDER RATE REDUCTIONS AS REQUIRED BY THIS ACT.

Reps. R. BROWN, J. BAILEY, T. ROGERS and J. ROGERS proposed the following Amendment No. 129 (Doc. No. 4384U and 4388U), which was adopted.

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

SECTION 1. This act is known and may be cited as the "Automobile Insurance Reform Act of 1989".

SECTION 2. Section 56-9-330(1) of the 1978 Code is amended to read:

"(1) The Department, shall upon request, and the payment of a fee of four dollars for individual copies, and a fee not to exceed two dollars for each record when ordered in lots of fifty or more or when obtained electronically, shall furnish any person a certified abstract of the operating record of any person subject to the provisions of this chapter, which abstract shall must also fully designate the motor vehicles, if any, registered in the name of that person, and, if there shall be is no record of any conviction of that person for violating any laws relating to the operation of a motor vehicle or of any injury or damage caused by that person, the Department shall so certify. The Department, upon request and the payment of a reasonable fee, shall furnish a monthly listing by magnetic or other electronic media of all driver's license numbers that had driving violations posted on their records during the previous month. These abstracts shall are not be admissible as evidence in any action for damages or criminal proceedings arising out of motor vehicle accidents."

SECTION 3. Section 38-77-150 of the 1976 Code is amended to read:

"Section 38-77-150. (A) No automobile insurance policy or contract may be issued or delivered unless it contains a provision by endorsement or otherwise, herein referred to as the uninsured motorist provision, undertaking to pay the insured all sums which he is legally entitled to recover as actual damages from the owner or operator of an uninsured motor vehicle, within limits which may be are no less than the requirements of Section 38-77-140. The uninsured motorist provision shall must also provide for no less than five thousand dollars' coverage for injury to or destruction of the property of the insured in any one accident but may provide an exclusion of the first two hundred fifty dollars of the loss or damage.

(B) Automobile insurers shall offer, at the option of insured and in the manner hereinafter described, higher limits of uninsured motorist coverage in accordance with Section 38-77-114. The offer of higher limits must be made n connection with every initial application for an automobile insurance policy by including a written explanation of the coverage and inquiry of the applicant, in a form prescribed by the Chief Insurance Commissioner, as to whether the applicant desires to purchase uninsured motorist coverage with limits greater than the mandatory coverages described in subsection (A). No such explanation or inquiry need be made with respect to any renewal, replacement, reinstatement, substitute, or modification of the policy. An insured may, at any time and subject to the limits of this Section, specifically request in writing uninsured motorist coverage limits greater than that provided on the current or any prior policy.

(C) Insurers may offer on a form prescribed by the Chief Insurance Commissioner 'nonstackable' policies of uninsured motorist coverage containing policy provisions establishing that if the insured accepts this offer:

(1) Regardless of the number of vehicles involved, persons covered, number of premiums paid, or vehicles or premiums shown on the policy under which the insured might otherwise be entitled to benefits, the coverage provided as to two or more motor vehicles under the same may not under any circumstances be added together, combined with or stacked to determine the limit of insurance coverage available to an injured person for any one accident, except as provided in item (3) of this subsection (C).

(2) If at the time of the accident the injured person is occupying a motor vehicle, the uninsured motorist coverage available to him is the coverage available as to that motor vehicle.

Provided, however, that in the event the insured or named insured is injured in a non-owned motor vehicle, he is entitled to coverage on any non-stackable uninsured motorist coverage under which he is an insured.

(3) If the injured person is occupying a motor vehicle which is not owned by him or by a family member residing with him, he is entitled to the highest limits of uninsured motorist coverage afforded for nay one vehicle a to which he is a named insured. Such coverage is excess over the coverage on the vehicle he is occupying.

(4) The uninsured motorist coverage provided by a policy does not apply to the named insured who is injured while occupying any vehicle owned by the named insured for which uninsured motorist coverage was not purchased.

(5) If at the time of the accident the injured person is not occupying a motor vehicle, he is entitled to select any one limit of uninsured motorist coverage for any one vehicle afforded by the policy under which he is insured as a named insured.

(6) In connection with the offer authorized by this subsection, insurers shall inform the named insured, applicant, or lessee, on a form prescribed by the Chief Insurance Commissioner, of the limitations imposed under this subsection and that such coverage is an alternative to coverage without the limitations. If this form is signed by a named insured, applicant, or lessee, it is conclusively presumed that there was an informed, knowing acceptance of the limitations, and neither the insurance company nor the insurance agent has any liability to the insured for the insured's failure to purchase stackable coverage. When the named insured, applicant, or lessee has initially accepted such limitations, the acceptance applies to any policy which renews, extends, changes, supersedes, reinstates or replaces an existing policy unless the named insured requests deletion of the limitations and pays the appropriate premium for the coverage. Any insurer who provides coverage which includes the limitations provided in this subsection shall file revised premium rates with the Department of Insurance for the uninsured motorist coverage to take effect prior to initially providing such coverage. The revised rates must reflect the anticipated reduction in loss costs attributable to such limitations but, in any event, must reflect a reduction in the uninsured motorist coverage premium of at least fifteen percent for policies with such limitations. The filing may not increase the rates for coverage which does not contain the limitations authorized by this subsection, and the rates remain in effect until the insurer demonstrates the need for a change in uninsured motorist rates pursuant to subsection (D).

(D) Premium rates made by insurers for uninsured motorist coverage must be determined and regulated as premium rates for automobile insurance generally are determined and regulated. The Chief Insurance Commissioner may shall prescribe the form to be used in providing uninsured motorist coverage and when prescribed and promulgated no other form may be used.

(E) No action may be brought under the uninsured motorist provision unless copies of the pleadings in the action establishing liability are served in the manner, provided by law upon the insurer writing the uninsured motorist provision. The insurer has the right to appear and defend in the name of the uninsured motorist in any action which may affect its liability and has thirty days after service of process on it in which to appear. The evidence of service upon the insurer may not be made a part of the record.

(F) Benefits paid pursuant to this section are subject to subrogation and assignment."

SECTION 4. Section 38-77-160 of the 1976 Code, formerly known as Section 56-9-831 and amended by Act 166 of 1987, is further amended to read:

"Section 38-77-160. Automobile insurance carriers shall offer, at the option of the insured, uninsured excess uninsured/underinsured motorist coverage up to the limits of the insured is liability coverage in addition to the mandatory coverage prescribed by Section 38-77-150. Such carriers shall also offer, at the option of the insured, underinsured motorist coverage up to the limits of the insured liability coverage to provide coverage in the event that damages are sustained in excess of the motorist. If, however, an insured or named insured is protected by uninsured or underinsured motorist coverage in excess of the basic limits, the policy shall provide that the insured or named insured is protected only to the extent of the coverage he has on the vehicle involved in the accident. If none of the insured's or named insured's vehicles is involved in the accident, coverage is available only to the extent of coverage on any one of the vehicles with the excess or underinsured coverage. Benefits paid pursuant to this section are not subject to subrogation and assignment. The policy shall provide that the insured or named insured is protected only to the extent of the excess uninsured/underinsured motorist coverage on any policy regardless of the number of vehicles covered by that policy. Excess uninsured/underinsured motorist coverage is defined as first party benefits to protect an insured or named insured should the at fault motorist be uninsured or should the at fault motorist have liability limits insufficient to compensate the insured for his cognizable damages. Excess uninsured/underinsured motorist coverage is not subject to subrogation or assignment. Insurers, when filing premium charges for this combined coverage, may include a factor reflecting the number of vehicles insured by the automobile insurance policy, and the commissioner shall consider such factors in the approval of any final premium charges for such coverage:

SECTION 5. Section 38-73-735 of the 1976 Code is amended to read:

"Section 38-73-735. In addition to risk and territorial classification plans promulgated or approved under Section 38-73-730, the Commissioner may promulgate plans to afford credits or discounts to automobile insureds, or he may approve the credit or discount plans filed with him by insurers of automobile insurance. No automobile insurance credit or discount plan may be promulgated or approved by the Commissioner unless: (1) the criteria for determining eligibility for credits or discounts under the plan are objective, clear, and unequivocal; (2) the criteria are based upon factually or statistically supported data; and (3) the credits or discounts provided under the plan will be afforded by the insurer on a nondiscriminatory basis to all insureds who are eligible therefor. If an insurance credit or discount plan is given to an insured pursuant to this section, the policy may not be ceded to the Reinsurance Facility in accordance with the Facility's Plan of operation."

SECTION 6. Section 56-10-240 of the 1976 Code, as last amended by Act 671 of 1988, is further amended to read:

"Section 56-10-240. If, during the period for which it is licensed, a motor vehicle is or becomes an uninsured motor vehicle, then the vehicle owner immediately shall obtain insurance on the vehicle or within five days after the effective date of cancellation or expiration of his liability insurance policy surrender the motor vehicle license plates and registration certificates issued for the motor vehicle. If five working days after the last day to pay an automobile liability insurance premium, whether it is the premium due date or a grace period that is granted customarily or contractually granted, a motor vehicle is an uninsured motor vehicle, the insurer shall give written notice, or notice by magnetic or electronic media in a manner considered satisfactory to the department, within ten days after such the five-day period ends, in addition to that notice previously given in accordance with law, by delivery under United States Post Office Certificate of Mailing bulk certified mail, return receipt requested, to the department of the cancellation or refusal to renew under the following circumstances:

(1) the lapse or termination of such insurance or security occurs within three months of issuance provided that this subsection only applies to new policies, and not renewal or replacement policies; or

(2) the lapse or termination occurs after three months for a resident who fails one or more of the objective standards prescribed in Section 38-73-455.
The department may, in its discretion, authorize insurers to utilize alternative methods of providing notice of cancellation of or refusal to renew to the department. The department may not thereafter reissue registration certificates and license plates for the that vehicle until satisfactory evidence has been filed by the owner or by the insurer who gave the cancellation or refusal to renew notice to the department that the vehicle is insured. Upon receiving information to the effect that a policy is canceled or otherwise terminated on any a motor vehicle registered in South Carolina, then the department shall suspend the license plates and registration certificate and shall initiate action as required within fifteen days of the notice of cancellation to pick up the license plates and registration certificate. Any A person who has had his license plates and registration certificate suspended by the department, but who at the time of suspension does possess possesses liability insurance coverage sufficient to meet the financial responsibility requirements as set forth in this chapter, has the right to immediately appeal the suspension immediately to the Chief Insurance Commissioner. If the Chief Insurance Commissioner commissioner determines that the person has sufficient liability insurance coverage, the Chief Insurance Commissioner he shall notify the department, and the suspension is voided immediately. The department shall give notice by certified first class mail, return receipt requested, of the cancellation or suspension of registration privileges to the vehicle owner at his last known address. However, when license plates are surrendered pursuant to this section, they must be held at the department office in the county where the person who surrenders the plates resides.

If the vehicle owner unlawfully refuses to surrender the suspended items as required in this article, the department through its designated agents or by request to any a county or municipal law enforcement agency may take possession of the suspended license plates and registration certificate and may not thereafter reissue the registration until proper proof of liability insurance coverage is provided and until the owner has paid a reinstatement fee in the amount of one two hundred dollars for the first refusal under this section, and three hundred dollars for each subsequent refusal. A person who voluntarily surrenders his license plates and registration certificate prior to their suspension shall only be charged a reinstatement fee of five dollars.

Any A person wilfully failing to return his motor vehicle license plates and registration certificates as required in this section is guilty of a misdemeanor and, upon conviction, must be fined punished as follows:

(1) for a first offense, fined not less than one hundred dollars nor more than two hundred dollars or imprisoned for thirty days and, upon conviction of;

(2) for a second offense, be fined two hundred dollars or imprisoned for thirty days, or both, and;

(3) for a third and subsequent offenses must be offense, imprisoned for not less than forty-five days nor more than six months.

Only convictions which occurred within five ten years including and immediately preceding the date of the last conviction constitute prior convictions within the meaning of this section."

SECTION 7. The provisions of this act may not be construed to require that a new offer of uninsured or underinsured motorist coverage be made on any insurance policy which renews, extends, changes, supersedes, or replaces an existing policy if written by the same automobile insurer. However, the first renewal notices for existing policies after October 1, 1989, must include written explanation of coverage and an offer form as prescribed by the Chief Insurance Commissioner, as well as the Buyer's Guide provided for in Section 38-77-25. If the insured fails or refuses to return an executed offer form within thirty days to the insurer, the insurer shall add on uninsured motorist, underinsured motorist, and coverages with the same policy limits as the insured's liability limits.

SECTION 8. No uninsured or underinsured motorist coverage need be provided in this State by any excess or umbrella policy of insurance.

SECTION 9. Section 38-73-10(a)(2) of the 1976 Code is amended to read:

"(2) empower the Commissioner to fix, establish, and promulgate any uniform statistical plan or plans necessary or appropriate to obtain all automobile insurance loss and lose adjustment expense experience, other expense experience, and all other appropriate statistical and financial data from insurers, rating organizations, and advisory organizations engaged in an automobile insurance business in this State to the end that the State Rating and Statistical Division Commissioner shall promulgate; not less than annually, the risk classification and territorial classification plan or plans to be used by all insurers of automobile insurance in this State and in order that the Commissioner may test not less than annually, the class risk and territorial differentials previously established against the experience;"

SECTION 10. Section 38-73-40 of the 1976 Code is amended to read:

"Section 38-73-40. The Commissioner shall may promulgate reasonable regulations and statistical plans, reasonably adapted to each of the rating systems on file with him, which may be modified from time to time and which must be used thereafter by each insurer in the recording and reporting of its lose and countrywide expense experience, in order that the experience of all insurers may he made available at least annually in such form and detail as may be necessary to aid him in determining whether rating systems comply with the standards set forth in Sections 38-73-330 and 38-73-430, as the case may be. The regulations and plans may also provide for the recording and reporting of expense experience items which are specially applicable to this State and are not susceptible of determination by a prorating of countrywide expense experience. In promulgating these regulations and plans, the Commissioner shall give due consideration to the rating systems on file with him and, in order that such regulations and may be as uniform as is practicable among the several states, to the regulations and to the form of the plans used for rating systems in other states. The Commissioner may designate one or more rating organizations or other agencies to assist him in gathering the experience and making compilations thereof. These compilations must be made available, subject to reasonable regulations plans promulgated by the Commissioner, to insurers and rating organizations."

SECTION 11. Section 38-73-720 of the 1976 Code is amended to read:

"Section 38-73-720. The Commissioner State Rating and Statistical Division is empowered may, through order, of the Commissioner to fix, establish, and promulgate fair and reasonable risk classifications and territories for automobile insurance risks in accordance with the criteria and standards mentioned in Section 38-73-730 and consistent with the purposes of this chapter and Chapter 77 of this title.

Prior to October 1, 1989, the Commissioner shall promulgate a classification plan for automobile insurance for establishment of rates and premiums. The classification plan when utilized by insurers of automobile insurance must be introduced actuarially on-balance so that no increase in income level is produced by the filed classification plans. Decreases for income levels are encouraged. The classification plan must be consistent with the classification plans approved for use on a countrywide basis by the rating organization having the largest number of members or subscribers in South Carolina. However, classification differentials must be uniform for every insurer. In additions the commissioner shall not permit within the revised risk classification plan a distinction in Bodily Injury Liability premiums charged or Property Damage Liability premiums charged because of the type of private passenger automobile insured. The classification plan becomes effective for all insurers on or after January 1, 1990, for all eligible applicants and upon the renewal date, on or after January 1, 1990, for all existing policyholders.

The Commissioner designate reasonable territories.

Auto insurance risks must be rated in accordance with the criteria and standards mentioned in Section 38-73-730 and consistent with the purposes of this chapter and Chapter 77 of this title. All plans promulgated must comply with the requirements of Article 1, Chapter 23 of Title 1 (the Administrative Procedures Act)."

SECTION 12. Section 38-73-730 of the 1976 Code is amended to read:

"Section 38-73-730. No distinctions are permitted nor may be made between policyholders or applicants for automobile insurance as respects coverages, policy terms, rates, premium payment arrangements, claim services, or other services provided by the insurer directly or through its agents or employees except as the distinctions are relevant to and reflected in insurers' rating classifications under risk and territorial classification plans and premium payment plans promulgated by the Commissioner. No risk classification plan may be promulgated unless the criteria used for classifying risks are objective, clear, and unequivocal and based upon factually or statistically supported data, nor unless the classifications in the rating plan are calculated to render possible the compilation of credible statistical data both for purposes of determining premiums and losses and for comparing the relative relationships between the loss or expense experience or both of the respective classes. The legislative intent is to make it possible for the Commissioner to determine the total profit or loss and expense operating results of the entire line of automobile insurance and each component thereof and of each automobile insurer transacting insurance within the line and each component and to make price comparisons between the rates and premium charges of the various insurers. It is further the policy of this chapter to render possible the evaluation by the Commissioner of the performance of the total insurance market and to enable him thereby to assist automobile insurance consumers in making appropriate consumer decisions."

SECTION 13. Section 38-73-750 of the 1976 Code is amended to read:

"Section 38-73-750. Automobile insurers shall file with the State Rating and Statistical Division their plans or systems for allocating expenses and profit as respects the various kinds or types of automobile insurance risks and the classes of risks thereunder. However, no plan or system may be filed which is inconsistent with the classification of risks promulgated by the State Rating and Statistical Division Commission. No plan or system may be filed or approved if the purpose or effect is to discriminate unfairly or unreasonably in respect to the allocation of expenses or profit between classes of risks or if the purpose or effect is to impose a burden or detriment upon the South Carolina Reinsurance Facility or to secure to the insurer using the plan or system an unfair or unreasonable competitive advantage to the detriment of the South Carolina Reinsurance Facility or other insurers. The Commissioner shall, after due notice and hearing, shall disapprove and disallow the further use of an inconsistent, discriminatory, burdensome, or competitively unfair plan or system for the allocation of expenses and profit."

SECTION 14. Section 38-73-760 of the 1976 Code is amended to read:

"Section 38-73-760. (a) The Commissioner shall, through the State Rating and Statistical Division, fix, establish, and shall promulgate any uniform statistical plan or plans that may be necessary or appropriate for the gathering and compilation of statistical data from insurers, rating organizations, or advisory organizations transacting or otherwise engaged in the automobile insurance business in the State. In promulgating any uniform statistical plan or plans consideration may be given to the extent reasonable or practicable to the rules and forms of the plane used for rating systems in other States. Upon the promulgation of any statistical plan or plans for automobile insurance in this State, the same must be adopted and used by every automobile insurer in this State and every automobile insurer shall constitute the State Rating and Statistical Division its statistical agent for automobile insurance in this State.

(b) The statistical plan or plans may be devised and promulgated so as to provide for any and all statistical and financial data necessary or appropriate to the implementation of the policy of this chapter or Chapter 77 of this title or to yield statistical data reasonably and fairly related to any of the purposes of this article, including, but not limited to, the fixing, establishing, and promulgating of risk and territorial classification plans for automobile insurance; determining the pure lose rate level indications for automobile insurance in South Carolina based upon all South Carolina loss experience and assisting in the translating of this information into usable form for insurance consumers in terms of the final rates or premium charges of each insurer of automobile insurance, determining the reasonability of loss adjustment expenses, other expenses and profit factors applied by insurers to their pure loss components in arriving at their final rates or premium charges for automobile insurance both for purposes of ensuring that the final rates or premium charges are adequate, not excessive, and not unfairly discriminatory and for ensuring that improper and undue burdens are not imposed upon the South Carolina Reinsurance Facility by way of excessive ceding commissions to ceding insurers; determining the amount, validity, and propriety of class and territorial differentials applied to the general pure loss rate levels and testing not less than annually the appropriateness of the existing differentials in the light of the most recent available loss experience data; determining the amount, validity, and propriety of surcharges and discounts referable to any uniform merit rating plan or system which may have been promulgated by the State Rating and Statistical Division Commissioner or which may be under consideration for promulgation, and testing not less than annually, the appropriateness of the surcharges and discounts in the light of the most recent available loss experience data; determining the propriety or validity of any plan for the classification of risks which may be in effect or under consideration based upon the propensities of motor vehicles or classes or types of motor vehicles or their equipment to shield occupants from death or serious injury as a result of crash or based upon the relative invulnerability of the motor vehicles or classes or types of motor vehicles to extensive damage as a result of crash or their repairability at modest expense; or obtaining data relevant to studies being made or to be made by the State Rating and Statistical Division in connection with any of the foregoing or in connection with means and methods for providing appropriate rates for insurance consumers or fostering and encouraging competition among insurers.

(c) The functions and responsibilities of the State Rating and Statistical Division acting as statistical agent for automobile insurers may not be delegated, except that the Commissioner may, as the result of competitive bidding, make an agreement with some suitable person, firm, corporation, or other organization for the gathering, compilation, recordation, or computerization of the statistical data. However, these functions are always subject to the supervision, direction, and control of the Commissioner and the examination and oversight of insurers in respect to their obligations to furnish statistical data to him remain the direct responsibility of the Commissioner and may never be delegated other than to the State Rating and Statistical Division.

(d) Any merit rating plan or system promulgated by the Commissioner pursuant to the authority contained in subsection (b) likewise extends to and includes automobile collision insurance. However, nothing contained in this subsection (d) requires that the same percentage or dollar amounts for discounts or surcharges already assessed in respect to the liability coverages of the policy again be assessed in respect to the collision coverage afforded by the same policy.

(e)The Commissioner shall require all insurers transacting automobile insurance business in this State to assess surcharges and grant safe driver discounts of no less than twenty percent.

(f) (e) All policies of automobile insurance issued in South Carolina shall must show on the initial policy or on an attachment to the initial policy and on all premium invoices or attached to all premium invoices, in a form to be approved by the Commissioner, the amount of any surcharge (including lose of safe driver discount) that may be applicable to the policy as a result of any merit rating plan or system promulgated by the Commissioner. Also to be included, presented in a fashion that is readily understandable, is the reason for the applicable surcharge or the loss of safe driver discount. The amount of the applicable safe driver discount also must be shown."

SECTION 15. Section 38-73-770 of the 1976 Code is amended to read:

"Section 38-73-770. Every classification plan fixed, established, and promulgated by the State Rating and Statistical Division Commissioner must be so structured as to produce rates or premium charges which are adequate, not excessive, and not unfairly discriminatory."

SECTION 16. Section 38-77-10(1) of the 1976 Code, as last amended by Act 399 of 1988, is further amended to read:

"(1) To provide that every automobile insurance risk which is insurable on the basis of the criteria established in this chapter is entitled to automobile insurance from the automobile insurer of the applicant's choice on the basis of the same rates, policy forms, claims service, and other services provided by the insurer to all other applicants or insureds falling within the classification of risk and territory under the applicable risk and territorial classification plan promulgated by the Commissioner so long as all these applicants or insureds have satisfied the same objective standards as established in Sections 38-77-280 and 38-73-455;"

SECTION 17. Section 38-77-910 of the 1978 Code is amended to read:

"Section 38-77-910. It is an act of unlawful discrimination for an automobile insurer to make any distinction between automobile insurance policyholders or applicants for automobile insurance with respect to coverage, rates, claims, or other services except as the distinctions are provided for in the rating plans for the classification of risks and territories and premium payment plans promulgated by the Commissioner."

SECTION 18. Section 38-77-112 of the 1976 Code, as last amended by Act 399 of 1988, is further amended to read:

"Section 38-77-112. Notwithstanding Sections 38-77-110, 38-77-920, and 38-77-280, no automobile insurer is required to write coverage for automobile insurance as defined in Section 38-77-30 for any applicant or existing policyholder who does not at the time of application or renewal possess a valid South Carolina motor vehicle or special restricted driver's license. This section does not apply to an individual who is handicapped and who owns a vehicle in this State but who does not have a valid driver's license. If an automobile is principally garaged and operated in this State, the owner of the vehicle must be offered coverage thereon regardless of whether or not he possesses a valid South Carolina driver's license if he designates to the insurer who the principal operator of the vehicle will be and this person has a valid South Carolina driver's license or otherwise meets the requirements of this section. This requirement does not apply to personnel of the Armed Forces of the United States on active duty and officially stationed in this State who possess a valid motor vehicle drivers license issued by another state or territory of the United States or the District of Columbia. This requirement is waived ninety days for individuals who move into South Carolina with the intent of making South Carolina their place of residence if they possess a valid driver's license issued by another state or territory of the United States or the District of Columbia."

SECTION 19. Section 38-77-580 of the 1976 Code, as last amended by Act 163 of 1987, is further amended to read:

"Section 38-77-580. The operations and affairs of the Facility are under the direction and control of a governing board of seventeen fourteen persons of whom three ten must be residents of South Carolina appointed by the Governor of South Carolina, six to represent consumers, with the remaining four to represent each of the following groups: designated agents, reinsurance facility servicing carriers, voluntary agents, and voluntary insurance carriers. The chairman of the Senate Banking and Insurance Committee, the chairman of the House Labor, Commerce and Industry Committee together with the Chief Insurance Commissioner and the Consumer Advocate, or their designees, with the Chief Insurance Commissioner serving as the chairman. The Commissioner shall appoint eight persons to represent the insurance industry; in appointing these persons, the Commissioner shall select two persons from a list of not less than five persons nominated by the American Insurance Association from the officers or employees of insurers which are licensed in organization; he shall select two persons from a list of not less than five persons nominated by the American Mutual Insurance Alliance from the officers or employees of insurers which are licensed in South Carolina and which are members or subscribers of that organization; he shall select two persons from a list of not less than five persons nominated by the National Association of which are licensed in South Carolina and which are members or subscribers of that organization; he shall select two persons, one of whom must be an officer or employee of a stock insurer licensed in South Carolina and not a member or subscriber of any of the said organizations, and one of whom must be an officer or employee of a nonstock insurer licensed in South Carolina and not a member or subscriber of any of the said organizations; however, of the eight persons appointed to represent the insurance industry, not less than five must be residents of South Carolina and those who are not residents of South Carolina must have job responsibilities that include the supervision over South Carolina operations; not less than two must be officers or employees of insurers licensed to transact automobile insurance in South Carolina and domiciled therein. The Commissioner shall appoint four persons to represent producers, all of whom must be residents of South Carolina; he shall select two such persons from a list of not less than five persons nominated by the stock agents' association and two persons from a list of not less than fiver persons nominated by the mutual agents' association. The Commissioner shall appoint two persons to represent the designated agents, one of whom must be an officer of a premium service finance company and the other of whom must be a designated agent and both of whom must be residents of South Carolina.

The Commissioner is chairman of the board, ex officio, but has no vote except in the case of a tie. The Commissioner, or his designated representative, shall preside over all meetings which must be held not less than quarterly in South Carolina at the times and places the Commissioner designates. However, upon the filing with the Commissioner of a request for a meeting signed by not fewer than five members of the board and specifying the subjects to be discussed at the proposed meeting, the Commissioner shall call a special meeting of the board to be held not less than fifteen or more than thirty days after receipt of the request. Notice, in writing, of the special meeting must be provided members of the board.

Members of the board shall serve one year or until their successors are appointed and have qualified.

Amendment of the plan of operation may be made only at the annual meeting of the board or at a special meeting called by the Commissioner for that purpose and so specified in the notice of meeting. Amendments of the plan require the affirmative vote of two-thirds of all the board members and are subject to the Commissioner's approval. The Commissioner may approve amendments only if they are consistent with the purposes of this chapter. If the consumer representative members of the board unanimously dissent from a proposed amendment and specify their reasons for dissent in writing, the Commissioner may not approve the amendment until after a public hearing addressed to the reasons for the dissent.

The Commissioner may propose to the board any amendment to or modification of the plan that the Commissioner considers to be necessary to render the plan reasonable or consistent with the purposes of this chapter, specifying in writing the reasons for any proposed amendment or modification. In the event that the board fails to adopt his proposed amendment or modification, the Commissioner may, after notice and public hearing addressed to the reasons for the proposed amendment or modification, promulgate the amendment or modification considered necessary to render the plan reasonable or consistent with the purposes of this chapter."

SECTION 20. Section 38-77-910 of the 1976 Code is amended to read:

"Section 38-77-910. It is an act of unlawful discrimination for an automobile insurer to make any distinction between automobile insurance policyholders or applicants for automobile insurance with respect to coverage, rates, claims, or other services except as the distinctions are provided for in the rating plans for the classification of risks and territories promulgated or approved by the Commissioner."

SECTION 21. Section 38-77-920 of the 1976 Code is amended to read:

"Section 38-77-920. Except as is specifically provided for otherwise by law, No no automobile insurer may refuse acceptance of automobile insurance for an insurable risk from any applicant nor require that certain classes or types of risks be placed through some particular agent or employee. However, this This section is not intended to preclude any insurer from recognizing and giving effect to the property rights of agents in expirations or renewals.

No agent who represents more than one insurer of automobile insurance may refuse to accept in behalf of an insurer represented by him automobile insurance for an insurable risk where the applicant for insurance designates by name or description the insurer of his choice. However, if If the applicant relies upon the skill and judgment of the agent to place the risk in any insurer represented by the agent, the agent may place the risk in the insurer which he considers appropriate. No insurer may agree, collude, or conspire with an agent or give, offer, or promise an agent anything of value to place any risk or any class or type of risk under such circumstances in another insurer. Every such agreement is utterly void and every act of collusion or conspiracy constitutes an act of unfair competition by both the insurer and agent which, if proved, shall must result in the suspension or revocation of the license of each for not less than one year, in addition to any other penalties or liabilities applicable.

No automobile insurer authorized to transact automobile insurance in this State which offers automobile insurance through the mails or uses the mails in transacting automobile insurance on insurable risks situate in this State may restrict its mailings or offerings to certain counties, areas, or zip-code territories of this State. The Commissioner is authorized and directed to examine an insurer's records at any time the Commissioner considers it necessary to determine that the insurer is not so restricting or limiting its offerings."

SECTION 22. Section 38-57-130 of the 1976 Code is amended to read:

"Section 38-57-130. (1) No person may make, issue, circulate, or cause to be made, issued, or circulated any estimate, illustration, circular statement misrepresenting the terms of any policy issued or to be issued, the benefits or advantages promised thereby, or the dividends or share of the surplus to be received thereon.

(2) No person may make any false or misleading statement as to the dividends or share of surplus previously paid on similar policies.

(3) No person may pay, allow, or give or offer to pay, allow, or give, directly or indirectly, as inducement to the purchase or the renewal of an insurance contract, any rebate of premiums payable on the contract, any special favor or advantage in any benefits payable thereon, or any valuable consideration or inducement that is not specified in the contract provided that the provisions of this subsection do not apply to the sale of automobile insurance.

(4) Section 38-39-40 (a) (5) is deleted."

SECTION 23. Section 37-6-604 of the 1976 Code is amended to read:

"Section 37-6-604. The functions and duties of the Division of Consumer Advocacy shall be are as follows:

(1) To provide legal representation of the consumer interest before the state and federal regulatory agencies as hereinafter provided when such those agencies undertake to fix rates or prices for consumer products or services or to enact regulations or establish policies related thereto.

(2) To monitor existing regulations, rate structures and policies of that agency of special interest to consumers and report to the public through the news media proposed changes therein under consideration and the effect of such those changes on the lives of the citizens of the State.

(3) The annual report required of the Commission on Consumer Affairs shall must include a report on the activities of the Division of Consumer Advocacy.

(4) To evaluate and act upon requests from consumers concerning the matters set forth in (1) and (2) above, except that any proceedings initiated by the advocate shall must be brought on behalf of the public at large and not for individuals; initiation or continuation of any proceedings shall must be at the sole discretion of the consumer advocate."

SECTION 24. Section 37-6-605 of the 1976 Code is amended to read:

"Section 37-6-605. In the performance of his assigned functions the advocate shall have reasonable access to records of all state agencies which are not classified by law as confidential and all state agencies shall cooperate with the advocate in the performance of his duties. In addition, the Advocate shall have reasonable access to confidential records and information. Provided he enters a proprietary agreement to insure their confidentiality. The South Carolina Department of Insurance and Advocate also have access to records, information, and data of the insurance companies and other regulated entities, as well as all of their sister affiliates, subsidiaries, and parent companies. During the course of a rate-making or other proceeding before the South Carolina Department of Insurance or the Public Service Commission, the Consumer Advocate, as a party of record, may request in writing, in addition to all other methods of discovery as provided by law for proceedings before the South Carolina Department of Insurance or the Public Service Commission, the issuance by the Chief Insurance Commissioner or the Executive Director of the Public Service Commission of an order compelling a witness or company to either produce or allow inspection of documentary evidence relevant to the matter before the South Carolina Department of Insurance or the Public Service Commission. If the Chief Insurance Commissioner or the executive director issues or refuses to issue the order, the aggrieved party may appeal to the full Commission. The written request, in addition to showing a general relevance and reasonable scope of the evidence sought, must also specify with particularity the books, accounts, papers, records, or other materials of the business desired and the facts expected to be proved thereby. Provided, however, that for For good cause shown, in lieu of a written request, the request for such an order may be made orally upon the record to the presiding officer at the hearing. Any objections to the issuance of the order must be filed with the Department or Commission within three days of being notified of the written request for such order. Any objections so filed must list the specific grounds for objection. The Department or Commission shall rule on the objections within ten days or the objection will be considered to be denied..

SECTION 24A. Part 6 of Chapter 6, Title 37 of the 1976 Code is amended by adding:

"Section 37-6-610. The Advocate is authorized to undertake periodic audits of insurance companies licensed to do business in South Carolina and regulated by the Insurance Department, as well as their sister affiliates, subsidiaries, and parent companies and the Reinsurance Facility."

SECTION 25. Section 38-77-110 of the 1976 Code is amended by adding:

"With regard to any coverage not required to be written by an insurer under the mandate to write, no insurer may refuse to write such policy, coverage, or endorsement of automobile insurance because of the age, marital status, race, color, creed, national origin, or ancestry of anyone who seeks to become insured or because another insurer has refused to write a policy, coverage, or endorsement or has cancelled or refused to renew a policy in which the person was the named insured."

SECTION 26. Article 3, Chapter 77, Title 38 of the 1976 Code is amended by adding:

"Section 38-77-341. It is an unfair trade practice as defined in Section 39-5-20 to:

(1) knowingly and wilfully make or cause to be made any false statement or representation of a material fact for use in an application for payment or for use in determining the right to payment under this chapter;

(2) submit or cause to be submitted bills or requests for payment containing charges for services rendered which are substantially in excess of the person's customary charges or in applicable cases substantially in excess of the person's costs for such services, unless there is good cause for the bills or requests containing the charges or costs;

(3) submit bills or requests for payment for work covered by insurance which are in excess of those submitted for similar work not covered by insurance; or

(4) submit bills or requests for payment which are inflated for the purpose of relieving the insured of the obligation for making a payment for such goods and services as a result of a deductible or co-payment clause; or

(5) charge for copies of medical records or other records provided more than fifty cents per page, except that a minimum charge of ten dollars for furnishing copies of these records is authorized to be charged by insurers or health care providers."

SECTION 27. Section 56-10-40 of the 1976 Code is amended to read:

"Section 56-10-40. Every insurer writing automobile liability insurance in this State and every provider of other security approved and accepted by the Chief Commissioner Executive Director of the Department of Highways and Public Transportation in lieu of such insurance shall immediately notify the Chief Commissioner Executive Director of the Department of Highways and Public Transportation of the lapse or termination of any such insurance or security issued to or provided for a resident of this State in the following circumstances:

(1) the lapse or termination of such insurance or security occurs within three months of issuance provided that this subsection only applies to new policies, and not renewal or replacement policies: or

(2) the lapse or termination occurs after three months for a resident who fails one or more of the objective standards prescribed in Section 38-73-455.
This notification must be in writing or magnetic media in a manner considered satisfactory to the Department. Upon receipt of any such notice the Chief Commissioner Executive Director of the Department of Highways and Public Transportation shall make a reasonable effort to notify the person that his certificate of registration has been suspended and shall recover the certificate from such person and the motor vehicle registration plates from the vehicles concerned."

SECTION 28. Section 56-10-280 of the 1976 Code is amended to read:

"Section 56-10-280. All contracts or policies of insurance issued to meet the financial responsibility requirements prescribed in this chapter must be issued for a period of not less than six months. A certificate of insurance remains in full force and effect at least ninety days notwithstanding any power of attorney which may purport to give the attorney-in-fact the right to effect cancellation on behalf of the insured; however, a contract or policy may be cancelled within the first ninety days only under the following circumstances:

(1) a check or bank draft tendered by the insured for payment of premium is returned unpaid for insufficient funds or other reason by the insured's financial institution; or

(2) the insured produces satisfactory proof from the Department of Highways and Public Transportation that he has sold or otherwise disposed of the insured vehicle or surrendered its tags and registration.
The provisions of this section do not prohibit refunds to the insured for cancellations after ninety days resulting from causes other than nonpayment of premium. Where an insurance company cancels a contract or policy pursuant to this section for nonpayment of premium under the circumstances described above which occurs within the first ninety days, the insurance company or agent is entitled to charge and collect a fifteen dollar penalty in addition to that otherwise provided by law, and the penalty charge is not a premium charge."

SECTION 29. Section 38-77-160 of the 1976 Code, formerly known as Section 56-9-831 and amended by Act 166 of 1987, is further amended by adding:

"No action may be brought under the underinsured motorist provision unless copies of the pleadings in the action establishing liability are served in the manner provided by law upon the insurer writing the underinsured motorist provision. The insurer has the right to appear and defend in the name of the underinsured motorist in any action which may affect its liability and has thirty days after service of process on it in which to appear. The evidence of service upon the insurer may not be made a part of the record. In the event the automobile insurance insurer for the putative at fault insured chooses to settle in part the claims against its insured by payment of its applicable liability limits on behalf of its insured, the underinsured motorist insurer may assume control of the defense of action for its own benefit. No underinsured motorist policy may contain a clause requiring the insurer's consent to settlement with the at-fault party."

SECTION 30. Article 3, Chapter 77, Title 38 of the 1978 Code is amended by adding:

"Section 38-77-114. (A) The offer of stackable or nonstackable uninsured motorist and underinsured motorist benefits must be on a form prescribed not later than August 1, 1989, by the Chief Insurance Commissioner. This form must be used by insurers for all new applicants after October 1, 1989. The form must concisely advise the applicant of the nature of these coverages, provide a list of available limits and premiums for such limits, that the insured may reject the optional coverages, and that all coverages are equal to the bodily injury liability limits unless different limits are requested or optional coverages are rejected.

(B) If this form is properly completed and executed by the named insured it is conclusively presumed that there was an informed, knowing selection of coverage and neither the insurance company nor any insurance agent has any liability to the named insured or any other insured under the policy for the insured's failure to purchase any optional coverage or higher limits.

(C) After the initial signed selection is completed, the insurer shall notify the named insured at least annually on a form prescribed by the Chief Insurance Commissioner of his option to purchase higher limits or optional coverage, and the insured's responsibility to affirmatively notify his insurer or agent if he desires different coverage than that contained in the initial selection form.

(D) After the insured has made such selection, that selection applies to any policy or endorsement which renews, extends, changes, supersedes, reinstates, or replaces an existing policy or endorsement unless the named insured affirmatively requests a different coverage or limit and pays the premium for it.

(E) Compliance with this section satisfies the insurer and agent's duty to explain and offer optional coverages and higher limits and no person, including, but not limited to, an insurer and insurance agent is liable in an action for damages on account of the selection or rejection made by the named insured."

SECTION 31. Section 38-55-170 of the 1976 Code is amended to read:

Section 38-55-170. Any person who knowingly causes to be presented to an insurer transacting business in this State a false claim for payment in an amount less than five hundred dollars, or who knowingly assists, solicits, or conspires with another to present a false claim for payment in an amount less than five hundred dollars, is guilty of a misdemeanor and, upon conviction, must be imprisoned for not more than five years or fined not more than five thousand dollars, or both. If the false claim for payment is in an amount of five hundred dollars or more, such person is guilty of a felony and, upon conviction, must be imprisoned for not more than ten years or fined not more than ten thousand dollars, or both."

SECTION 32. Section 16-11-125 of the 1976 Code is amended to read:

"Section 16-11-125. Any person who shall wilfully and knowingly present presents or cause causes to be presented a false or fraudulent claim, or any proof in support of such claim, for the payment of a fire loss or loss caused by an explosion, upon any contract of insurance or certificate of insurance which includes benefits for such a loss, or prepares, makes or subscribes to a false or fraudulent account, certificate, affidavit or proof of loss, or other documents or writing, with intent that such documents may be presented or used in support of such claim, shall be is guilty of a misdemeanor if the claim is less than five hundred dollars, or a felony if the claim is five hundred dollars or more and, upon conviction, shall must be fined not more than ten thousand dollars or imprisoned for not more than five years or both in the discretion of the court.

The provisions of this section are supplemental to and not in lieu of existing law relating to falsification of documents and penalties therefor."

SECTION 33. Section 16-11-130 of the 1976 Code is amended to read:

"Section 16-11-130. Any person who (a) wilfully and with intent to injure or defraud an insurer sets fire to or burns or causes to be burned or (b) aids, counsels or procures the burning of any goods, wares, merchandise, or other chattels or personal property of any kind, whether the property of himself or of another, which shall is at the time be insured by any person against loss or damage by fire is guilty of a felony and shall, upon conviction thereof, must be fined not more than ten thousand dollars or imprisoned be sentenced to the Penitentiary for not less than one nor more than five years, or both."

SECTION 34. Section 23-41-30 of the 1976 Code is amended to read:

"Section 23-41-30. (a) Any authorized agency may require, in writing, the insurance company at interest to release to the requesting agency any or all relevant information or evidence deemed important to the authorized agency which the company may have in its possession relating to the fire loss in question. Relevant information includes:

(1) Pertinent insurance policy information relevant to a fire loss under investigation and any application for such a policy;

(2) Policy premium payment records which are available;

(3) History of previous claims made by the insured;

(4) Material relating to the investigation of the loss, including statements of any person, proof of loss, and any other evidence relevant to the investigation.

(b) When an insurance company has reason to believe that a fire loss in which it has an interest may be of other than accidental cause, the company may notify, in writing, an authorized agency and provide it with any or all material developed from the company's inquiry into the fire loss; however, when such information includes possible evidence of arson or other unlawful burning involving specifically named persons, the information in all cases may be furnished to the solicitor in the circuit where the fire occurred and he shall furnish the information to other proper properly authorized agencies if he deems considers such action to be appropriate. When an insurance company provides any one of the authorized agencies with notice of a fire loss, it is sufficient notice for the purpose of this chapter.

(c) When an insurance company denies payment of a claim to an insured on grounds of arson, false swearing, material misrepresentation, fraud, or similar claim or defense such insurer shall in all cases notify in writing the Chief Insurance Commissioner. The Commissioner may, after the investigation, notify an authorized agency if he considers the action to be appropriate.

(c) (d) The authorized agency provided with information pursuant to this chapter may release or provide such information to any agency asked to participate in the investigation.

(d)(e) Any insurance company providing information to an authorized agency pursuant to this chapter has the right to be informed, upon written request, as to the status of the case by such agency within a reasonable time, as determined by the authorized agency.

(e)(f) Any insurance company or authorized agency which notifies the Chief Insurance Commissioner or provides or releases information, whether oral or written, and any person acting in their behalf, pursuant to this chapter is immune from any liability arising out of such notification or release."

SECTION 35. Section 56-1-80 of the 1976 Code is amended to read:

"Section 56-1-80. Every application for a driver's license or permit shall must:

(1) Be made upon the form furnished by the Department;

(2) Be accompanied by the proper fee, and acceptable proof of date and place of birth;

(3) Contain the full name, date of birth, sex, race, and residence address of the applicant and briefly describe the applicant;

(4) State whether the applicant has theretofore been licensed as an operator or chauffeur and, if so, when and by what state or country; and

(5) State whether any such license has ever been suspended or revoked or whether an application has ever been refused and, if so, the date of and reason for such suspension, revocation, or refusal.

Whenever application is received from a person previously licensed in another state, the Department shall request copy of the applicant's record from such the other state. When received, the record shall become becomes a part of the driver's record in this State with the same force and effect as though entered on the operator's record in this State in the original instance. Every person who obtains a driver's license for the fires time in South Carolina, and every person who renews his driver's license in South Carolina must be furnished a written request form for completion and verification of liability insurance coverage.

The completed and verified form or an affidavit prepared by the department that neither he, nor any resident relative, owns a motor vehicle subject to the provisions of this chapter, must be returned to the department within thirty days from the date the license is issued or renewed. Failure to return the form or affidavit must result in the suspension of the newly issued or renewed driver's license until a properly executed form or affidavit is returned to the department."

SECTION 36. The Chief Insurance Commissioner shall no less than annually cause to have published and make available a representative sample of the private passenger premiums being charged by at least the twenty insurance companies having the largest market share in each territory to facilitate price comparisons by insureds and prospective insureds who are seeking new coverage.

SECTION 37. Article 5, Chapter 73, Title 38 of the 1976 Code is amended by adding:

"Section 38-73-467. The Chief Insurance Commissioner is empowered to order an insurer or rating organization, for purposes of private passenger automobile insurance only, to refile its rates, or decrease or increase its rates for policies sold or renewed after the effective date of his order, when, in the opinion of the Chief Insurance Commissioner, legislation enacted by the South Carolina General Assembly or the United States Congress, or a published opinion by the South Carolina Supreme Court or Court of Appeals, has a significant impact on the insurer's or rating organization's prospective loss experience, prospective expenses, or other relevant factors which impact upon the frequency or severity of claims or upon expenses or profits. The Chief Insurance Commissioner may order refiling, or upward or downward revision, of either the insurer or rating organization's entire private passenger filing, or only with regard to a single coverage, depending upon the impact of the legislation or court decision."

SECTION 38. Article 1, Chapter 77, Title 38 of the 1976 Code is amended by adding:

"Section 38-77-25. Every insurer, at least annually in conjunction with a renewal notice or bill, or other notice of payment due issued to a policyholder in conjunction with private passenger automobile insurance, shall send to each policyholder a copy of an automobile insurance buyer's guide promulgated by the Chief Insurance Commissioner. The guide must explain in clear and concise language the mandatory and optional coverages and all available options to reduce the cost of automobile insurance. The guide must notify the insured that he may receive a copy of the price shopper's comparison of premiums by requesting it in writing from the Insurance Commissioner. The guide also must advise the insured of his right to obtain documentation from the insurer regarding the determination of his rate, to request an informal conference with the insurer or agent regarding his rate, and to file a complaint with the Chief Insurance Commissioner as an aggrieved person. The guide must also inform the insured, in clear, concise, and prominent language, that a price shopper's guide is available from the Department of Insurance and how it may be obtained."

SECTION 39. No rate filing for private passenger automobile insurance may include or be based upon actual or projected loss or expense data which includes payments made on policies, wherein the amount of the settlement, judgment, or other payment by the insurer was in excess of the policy limits, exclusive of interest and costs. No rate filing for private passenger automobile insurance may include or be based upon actual or projected loss or expense data which includes payments made as a result of the insurer's tortious breach of it's duty of good faith and fair dealing.

SECTION 40. (A) No automobile insurer or representative of any automobile insurer may wilfully include in a private passenger automobile insurance rate filing any expense or loss which was generated in whole or part by either another line of insurance or general expenses or overhead applicable to all lines, unless the insurer has allocated properly the expense or loss among all its lines of insurance. The insurer's compliance with generally accepted accounting and actuarial principles constitutes a complete defense to an action brought under this section. No insurer may adopt a different method or usage of allocating or treating expenses or losses for purposes of rate filings in South Carolina from that which it uses in other states for similar lines of insurance, unless different treatment is required by statute or regulation.

(B) The Chief Insurance Commissioner, at least once every four years, shall make or cause to be made, for each insurer which writes more than one percent of the private passenger market in South Carolina, an examination of each insurer's books, records, and accounts to ensure that the expenses are being allocated or treated properly. In lieu of an independent examination, the Commissioner may request a sworn affidavit from the insurer's controller, accountant, or actuary that the companies' expenses are being allocated and treated properly and that private passenger automobile insureds are not being charged an inequitable or unfair share of the insurer's expenses, acquisition costs, overhead, or other expenses. The Chief Insurance Commissioner shall survey for the companies at appropriate intervals a comparison of the acquisition cost of private passenger business in South Carolina versus other similar states in which the companies do business.

(C) An insurer violating the provisions of this section is subject to a civil penalty of not less than twenty-five thousand dollars. A person who violates the provisions of this section is guilty of a felony and, upon conviction, must be imprisoned for not more than ten years or fined not less than ten thousand dollars, or both.

SECTION 41. Section 38-77-920 of the 1976 Code is amended to read:

"Section 38-77-920. No automobile insurer may refuse acceptance of automobile insurance for an insurable risk from any applicant nor require that certain classes or types of risks be placed through some particular agent or employee, except as provided for in Section 38-77-110. However, this This section is not intended to preclude any insurer from recognizing and giving effect to the property rights of agents in expirations or renewals.

No agent who represents more than one insurer of automobile insurance may refuse to accept in behalf of an insurer represented by him automobile insurance for an insurable risk where the applicant for insurance designates by name or description the insurer of his choice. However, if If the applicant relies upon the skill and judgment of the agent to place the risk in any insurer represented by the agent, the agent may place the risk in the insurer which he considers appropriate. No insurer may agree, collude, or conspire with an agent or give, offer, or promise an agent anything of value to place any risk or any class or type of risk under such circumstances in another insurer. Every such agreement is utterly void and every act of collusion or conspiracy constitutes an act of unfair competition by both the insurer and agent which, if proved, shall result results in the suspension or revocation of the license of each for not less than one year, in addition to any other penalties or liabilities applicable.

No automobile insurer authorized to transact automobile insurance in this State which offers automobile insurance through the mails or uses the mails in transacting automobile insurance on insurable risks situate in this State may restrict its mailings or offerings to certain counties, areas, or zip-code territories of this State. The Commissioner is authorized and directed to examine an insurer's records at any time the Commissioner considers it necessary to determine that the insurer is not so restricting or limiting its offerings."

SECTION 42. There is no personal injury protection (PIP) coverage mandated under the automobile insurance laws of this State. Any reference to personal injury protection in Titles 38 or 56 of the 1976 Code of Laws or elsewhere is deleted. If an insurer offers such coverage, the benefits payable under the coverage may be assigned to hospitals, funeral homes, physicians, or other medical providers.

SECTION 43. Medical payments coverage may be offered as an optional coverage under the automobile insurance laws of this State, but there is no requirement that medical payments coverage be offered. If an insurer offers such coverage, the benefits payable under the coverage may be assigned to hospitals, funeral homes, physicians, or other medical providers.

SECTION 44. To insure that all automobile insurance policies are rated to reflect the driving record of all insureds named in the policy, all insurers or their agents are required to obtain a motor vehicle report (MVR) on each named insured at the point of sale and at least annually after the sale. The cost of these motor vehicle reports obtained pursuant to this section must be paid by the insurers and not their agents or the named insureds.

SECTION 45. The first paragraph of Section 38-73-455 of the 1976 Code, as last amended by Act 166 of 1987, is further amended to read:

"An automobile insurer shall offer two different rates for automobile insurance, a base rate as defined in Section 38-73-457 and an objective standards rate which is twenty-five percent above the base rate designed by the Chief Insurance Commissioner and reflects one hundred twenty-five percent of the rate established in Section 38-73-1420. Both of these rates are subject to all surcharges or discounts, if any, applicable under any approved merit rating plan; credit or discount plan promulgated prescribed or approved by the Commissioner."

SECTION 46. The first paragraph of Section 38-73-457 of the 1976 Code, as last amended by Act 399 of 1988, is further amended to read:

"Notwithstanding Sections 38-73-920 and 38-73-1210, every automobile insurer and rating organization shall, prior to before October 1, 1987, shall file with the Commissioner a base rate, which is defined as a rate by coverage calculated solely upon the experience generated by the risk for each class and territory retained by the insurer in its voluntary book of business and which must not include experience generated by risks ceded or assumed from the Reinsurance Facility established under Section 38-73-1030. An objective standards rate by coverage also must also be filed which is twenty-five percent above the base rate previously described for each class and territory utilized as designated by the Chief Insurance Commissioner pursuant to Section 38-73-455. The base rate must be calculated by removing from the rate or premium charge, then in effect for the automobile insurer, that portion of the rate or premium charge attributable to the net gain or loss of the insurer as a result of participation in the operating results of the Facility as required by Section 38-77-760. In determining the base rate and objective standards rate, by coverage, the Commissioner, in order that no extra premium revenue is generated by this section, shall require that the insurer's average rate, by coverage, on October 1, 1987 (computed as a weighted average of the base rate and objective standards rate, by coverage, as determined by the Commissioner), not exceed the insurer's average rate, by coverage, prior to before October 1, 1987, as determined by the Commissioner. The provisions of the Administrative Procedures Act apply to any court appeal of a base rate or objective standards rate brought thereunder. The base rate or objective standards rate approved by the Commissioner may be put into effect under bond in a similar manner that a public utility may put a proposed rate increase into effect under bond as provided by law. No insurer may file a base rate for any class or territory which is higher than the rate or premium charge, exclusive of that portion required by Section 38-73-460, approved by the Commissioner for use on October 1, 1987. As a result of this section, no insured may receive an increase in rates for other than an increase in coverage or due to the provisions of Sections 38-77-280, 38-77-610, or 38-73-455, unless the insurer files additional rates in accordance with this title."

SECTION 47. Section 38-57-140 of the 1976 Code is amended by adding:

"(5) Automobile insurance policies and contracts."

SECTION 48. Section 1 of Act 683 of 1988 is amended to read:

"Section 1. Notwithstanding the provisions of Section 38-73-960 of the 1976 Code, for a period of two years after the effective date of this act, the waiting period required by Section 38-73-960 may be extended by the Commissioner for an additional period of six months rather than sixty days in the manner permitted by the section."

SECTION 49. Section 38-73-465(B) of the 1976 Code, as reenacted by this act, is amended by adding an appropriately numbered item to read:

" _______(a) In making a determination that an insurance rate is unfairly discriminatory, excessive, or unreasonable, the Insurance Department shall, in accordance with generally accepted and reasonable actuarial techniques, include consideration of expenses. Effective after June 30, 1989, expenses must be given effect in all private passenger automobile insurance rates by inclusion in rates of a level of expenses approximating an efficient company for the appropriate category in which each insurer qualifies. Insurers must be categorized by the marketing mechanism utilized, either as a nonagency insurer, captive agency insurer, or independent agency insurer. Nonagency insurers are those who market the automobile insurance policy primarily through the mail. Captive agency insurers are those who market the automobile insurance policy primarily through agents, compensated by salary or commission or both, but who are restricted by contract with the insurer from contracting with other insurers for marketing of automobile insurance. Independent agency insurers are those who market the automobile insurance policy primarily through agents who are not restricted by contract from marketing automobile insurance with other insurers.

(b) For purposes of this item, the maximum allowable expense level for each respective category is the weighted average for the past three years for which data is reported of the average expenses by insurer category for the top ten most efficient insurers in that category writing automobile insurance in this State. If there are not ten insurers in any given category, then the expense level is the weighted average for all the insurers in that category. The Chief Insurance Commissioner may reward an insurer actually achieving less than the maximum expense level allowable by allowing a higher underwriting profit than would otherwise result. However, this reward may not exceed the difference between the insurer's actual expense level achieved and the maximum level allowable in rates in a given year.

(c) The commissioner may extend the provisions of this item to other lines of property and casualty insurance, by order, after public hearing, when the determination is made that to do as is in the public interest."

SECTION 50. Whenever a person furnishes proof of liability insurance, or surrenders or has his registration or license tags confiscated for failure to produce proof of insurance, after the Department of Highways and Public Transportation receives notice of the lapse or termination of the required liability insurance, the department shall compare the effective date of the lapse or termination with the date of the proof of insurance or the date of the confiscation or surrender. If the department determines there was a lapse in the required coverage the department shall assess, in addition to other fines or penalties imposed by the law, a per diem fine in the amount of five dollars. The department shall collect and keep this fine to defer the costs of the financial responsibility program. The fine provided for in this section must not be assessed if the person furnishes proof, as documented by his sworn statement, that the motor vehicle upon which the coverage has lapsed or been terminated has not been operated upon the roads, streets, or highways of this State during the lapse or termination, and the lapse or termination is due to military service or illness as documented by a signed physician's statement. The total amount of the fine provided for in this section may not exceed two hundred dollars for a first offense.

SECTION 51. Section 56-3-1350 of the 1976 Code is amended to read:

"Section 56-3-1350. Whenever the Department, as authorized under this chapter, cancels, suspends, or revokes the registration and license of a vehicle or the registration card, license plate, revalidation sticker, or other document issued by it pursuant to this chapter, the owner or person in possession of such the document shall immediately return it to the Department. The Department shall in all cases furnish the person returning the document with a receipt indicating the date of surrender."

SECTION 52. The operator or owner of a motor vehicle, when a traffic ticket citing a moving violation is issued by any law enforcement officer, must be furnished a written request form for completion and verification of liability insurance coverage. The officer may only present the form to the motor vehicle operator and the operator or owner of the motor vehicle is only required to complete the form if the license plate check and verification show that the vehicle is uninsured. The form is to be in a manner prescribed by the Department of Highways and Public Transportation.

The completed and verified form must be returned by the operator or owner to the department within fifteen days from the date the form is delivered by the officer. Failure to return the form, verified in the proper manner, is prima facie, evidence that the vehicle was uninsured.

The provisions of Section 56-10-270 are only applicable if the owner does not comply with the requirements of this section.

SECTION 53. (A) The crimes in Section 40 of this act relating to wilfully including in a private passenger automobile insurance rate filing any expense or loss which was generated in whole or in part by either another line of insurance or general expenses or overhead applicable to all lines, unless the insurer has allocated properly the expense or loss among all its lines of insurance, or relating to adopting a different method or usage of allocating or treating expenses or losses for purposes of rate filings in South Carolina from that which it uses in other states for similar lines of insurance, unless different treatment is required by statute or regulation, or relating to giving a false affidavit that an insurance company's expenses are being allocated and treated properly and that private passenger automobile insureds are not being charged an inequitable or unfair share of the insurer's expenses, acquisition costs, overhead, or other expenses are added to the list of crimes classified as felonies in Section 16-1-10 of the 1976 Code of Laws.

(B) The crime in Section 16-11-125 of the 1976 Code relating to wilfully and knowingly presenting or causing to be presented a false or fraudulent claim, or any proof in support of such claim, for the payment of a fire loss or loss caused by an explosion, upon any contract of insurance or certificate of insurance which includes benefits for such a loss, or prepares, makes, or subscribes to a false or fraudulent account, certificate, affidavit, or proof of loss, or other documents or writing, with intent that such documents may be presented or used in support of the claim, if the claim is five hundred dollars or more, is added to the list of crimes classified as felonies in Section 16-1-10.

(C) The crimes in Section 16-11-190 relating to (1) wilfully and with intent to injure or defraud an insurer setting fire to or burning or causing to be burned or (2) aiding, counseling, or procuring the burning of any goods, wares, merchandise, or other chattels or personal property of any kind, whether the property of the perpetrator or of another person, which is at the time insured by any person against loss or damage by fire is added to the list of crimes classified as felonies in Section 16-1-10.

SECTION 54. Section 38-73-465 of the 1976 Code is reenacted to read:

"Section 38-73-465. (A) In considering any rate filing or in reviewing any rate in effect for automobile insurance, or upon complaint or petition by the Consumer Advocate, or any other interested party, the Chief Insurance Commissioner if the petition for review is granted shall review the rate the previous three years experience with the rate being reviewed, or as much of the period as is available. If the insurer has realized an unfairly discriminatory, excessive, or unreasonable profit, in the opinion of the commissioner, the commissioner shall order the same removed and require that the individual rate maker, bureau or insurer to promulgate a rate which is not unfairly discriminatory, excessive, or unreasonable profit, in the opinion of the commissioner, the commissioner shall order the same removed and require that the individual rate maker, bureau, or insurer to promulgate a rate which is not unfairly discriminatory, excessive, or unreasonable and order a pro rata rebate of any unfairly discriminatory, excessive, or unreasonable amount charged together with interest at the rate of twelve percent per annum either in the form of a cash refund or as a credit toward the future premiums. The commissioner shall rescind the order of rebate only upon a showing that compliance would cause an insolvency.

(B) In making the determination that a rate is unfairly discriminatory, excessive, or unreasonable, the Insurance Department shall, in accordance with generally accepted and reasonable actuarial techniques, include consideration of the following factors:

1. past and prospective loss experience within and without this State;

2. past and prospective expenses;

3. the degree of competition among insurers for the risk insured;

4. investment income. reasonably expected by the insurer, consistent with the insurer's investment practices, from investable premiums anticipated in the filing, plus any other expected on unearned premium reserves and loss reserves. The department may promulgate rules utilizing reasonable techniques of actuarial science and economics to specify the manner in which insurers shall calculate investment income attributable to such classes of insurance written in this State and the manner in which such investment income shall be used in the calculation of insurance rates.

Such manner shall contemplate allowances for an underwriting profit factor and full consideration of investment income which produce a reasonable rate of return; however, investment income from invested surplus shall be considered; In addition to being given consideration, after June 30, 1989, it must be seven effect in automobile insurance rates by use of the instructions and exhibits set forth in this item. Investment income also must be given effect in all other property or casualty insurance rates and the commissioner may order the use of similar instructions and exhibits by replacement of that company's insurance data for other lines instead of the private passenger data referenced in this subitem. Companies shall supply the information requested in this item regardless of whether or not the references to the Annual Statements change.

Exhibit 1. Expected Underwriting Results with Unchanged Premium: This exhibit must display the following data and calculations:

i. total limits premium at current level;

ii. forecasted losses;

iii. forecasted loss adjustment expenses;

iv. other underwriting expense;

v. underwriting result (profit or loss);
which must be calculated as total limits premium at current level by coverage, less losses, less loss adjustment expenses, less other underwriting expenses; and

vi. underwriting result (profit or loss) as a percent of premium, which must be calculated as the ratio of underwriting result to earned premium at current levels.

Exhibit 2. Analysis of Earnings Requirements: This exhibit must display the following information:

i. the amount of surplus allocated to each coverage for South Carolina private-passenger automobile insurance as calculated in investment income Exhibit 4. Line 4;

ii. the target rate of return on surplus which the filer believes is appropriate for the coverage in question. Testimony and evidence in support of this target rate of return must accompany the filing;

iii. the required dollar return on surplus to produce the target rate of return;

iv. the ratio of investment income to premium earned as calculated on Investment Income Exhibit 4, Line 11;

v. forecasted South Carolina premium earned by coverage;

vi. the expected dollar return from investment calculated by multiplying the ratio of investment income to premium earned by forecasted premium earned:

vii. required underwriting return calculated as the required return on surplus less the dollar return from investment; and

viii. the ratio of the required underwriting return to forecasted premium earned.

EXHIBIT 1.     EXPECTED UNDERWRITING

BODILY     PROPERTY

INJURY     DAMAGE

1.     Earned Premium

Current Level     $___________     $___________

2.     Forecasted     $___________     $___________

3.     Forecasted Loss

Adjustment     $___________     $___________

4.     Other Underwriting

Expenses     $___________     $___________

5.     Underwriting Result     $___________     $___________

6.     Underwriting Result

as a Percent of

Premium     ___________%     $___________%

RESULTS WITH UNCHANGED PREMIUM

COMPREHENSIVE     COLLISION
1.     Earned Premium    

Current Level     $___________     $___________

2.     Forecasted     $___________     $___________

3.     Forecasted Loss

Adjustment     $___________     $___________

4.     Other Underwriting

Expenses     $___________     $___________

5.     Underwriting Result     $___________     $___________

6.     Underwriting Result

as a Percent of

Premium     ___________%     ___________%

EXHIBIT 2. ANALYSIS OF EARNINGS REQUIREMENTS

BODILY     PROPERTY

INJURY     DAMAGE

1.     Surplus by Line,

Inv. Inc.

Exhibit 4, Line 4     $__________     $__________

2.     Target Rate of Return

on Surplus     __________%     __________%

3.     Required on Surplus

(1) x (2)     $__________     $__________

4.     Ratio of Investment

Income to Premium

Earned Inv. Inc.

Exhibit 4, Line 11     __________     __________

5.     Forecasted Premium

Earned     $__________     $__________

6.     Return from Investment

(4) x (5)     $__________     $__________

7.     Required Underwriting

Return (3) - (6)     $__________     $__________

8.     Ratio, Required Under-

writing to Premium

Earned (7) / (5)     __________%     __________%

EXHIBIT 2. ANALYSIS OF EARNINGS REQUIREMENTS

COMPREHENSIVE     PROPERTY

1.     Surplus by Line,

Inv. Inc.

Exhibit 4, Line 4     $__________     $__________

2.     Target Rate of Return

on Surplus     __________%     __________%

3.     Required on Surplus

(1) x (2)     $__________     $__________

4.     Ratio of Investment

Income to Premium

Earned Inv. Inc.

Exhibit 4, Line 11     __________     __________

5.     Forecasted Premium

Earned     $__________     $__________

6.     Return from Investment

(4) x (5)     $__________     $__________

7.     Required Underwriting

Return (3) - (6)     $__________     $__________

8.     Ratio, Required Under-

writing to Premium

Earned (7) / (5)     __________%     __________%

Instructions for Completing Investment
Income Exhibits

(A) Each filer shall provide the following exhibits pertaining to investment income associated with private passenger automobile insurance in the formats specified by Investment Income Exhibits 1. 2, 3. and 4.

1. Investment Income Exhibit 1: The filer shall provide the following information according to the format specified in Investment Income Exhibit 1. Investment Income from Loss and Loss Expense Reserves:

i. Net investment gain, from the filer's most recent annual statement, page 4, line 9a;

ii. cash and invested assets, from the filer's most recent annual statement, page 2, line 8A, for the two most recent years and mean cash and invested assets calculated for those two years;

iii. rate of return on investments calculated as the ratio of net investment gain to mean cash and invested assets;

iv. South Carolina loss reserves (Incl. IBNR) by coverage as of December thirty-first of the two most recent calendar years;

v. South Carolina loss adjustment expense Reserves (Incl. IBNR) as of December thirty-first of the two most recent calendar years;

vi. mean loss and loss adjustment expense reserves for the period;

vii. premium earned by coverage;

viii. the ratio of loss and loss expense reserves to premium earned; and

ix. investment income from reserves as a percent of premium earned.

2. Investment Income Exhibit 2: The filer shall provide the following information according to the format specified in Investment Income Exhibit 2. Investment Income from Unearned Premium Reserves:

i. South Carolina unearned premium reserves by coverage as of December thirty-first of the two most recent calendar years and the mean unearned premium reserve calculated for that period;

ii. premium earned by coverage;

iii. the ratio of unearned premium reserve to earned premium, by coverage;

iv. rate of return on investments; and

v. investment income as a percent of premium earned, by coverage;

3. Investment Income Exhibit 3: Each filer shall provide the following information according to the format specified in Investment Income Exhibit 3. Companywide Reserves, Surplus, and Invested Assets. The references on the exhibit pertain to the filer's most recent annual statement:

i. loss reserves for the most recent calendar year;

ii. loss adjustment expenses reserves for the most recent calendar year and the ratio of unsaid loss adjustment expenses to unsaid losses;

iii. unearned premium reserves for the most recent calendar year;

iv. total reserves;

v. cash and invested assets as of December thirty-first of the most recent calendar year;

vi. surplus as of December thirty-first of the most recent calendar year;

vii. the percent of surplus invested, calculated as cash and invested assets less reserves divided by surplus; and

viii. the ratio of surplus to reserves.

4. Investment Income Exhibit 4: The filer shall provide the following information according to the format specified in Investment Income Exhibit 4. Investment Income as a percent of premium:

i. items 1 through 3 on the exhibit mean South Carolina premium, loss, and loss adjustment reserves, and the sum of these three components of reserves, by coverage;

ii. item 4 of the exhibit means the dollar amount of South Carolina surplus by coverage, calculated by multiplying total South Carolina reserves by coverage times the ratio of surplus to reserves:

iii. items 5 and 6 of the exhibit mean the dollar amount of invested South Carolina surplus by coverage, calculated as the product of South Carolina surplus times the percent of surplus invested;

iv. items 7 through 9 of the exhibit mean the sum of South Carolina reserves and surplus and the dollar amount of investment income earned on these reserves and surplus;

v. items 10 and 11 of the exhibit mean investment income as a percent of premium earned by coverage.

INVESTMENT INCOME EXHIBIT 1.
INVESTMENT INCOME FROM LOSS AND
LOSS EXPENSE RESERVES, SOUTH CAROLINA

1.     Net Investment Gain,

Annual Statement

P-4, Line 9a         $________________

2.     Cash Invested Assets,

Annual Statement

P-2, Line 9a

a. As of *         $________________

b. As of **         $________________

Mean Cash & Invested Assets     $________________
3.     Rate of Return on Investments (1./2c) %

BODILY     PROPERTY

INJURY     DAMAGE
4.     S.C. Loss Reserves

a. As of *     $__________     $__________

b. As of **     $__________     $__________

5.     S.C. Loss Adjustment

Expense Reserves

a. As of *     $__________     $__________

b. As of **     $__________     $__________

6.     Mean Loss & LAX Reserves

((4a. + 4b.)/2) +

((5a. + 5b.)/2)     $__________     $__________

7.     Premium Earned *     $__________     $__________

8.     Ratio Loss & LAX Reserves

to Earned Premium

(6./7.)     __________%     %

9.     Investment Income as a

Percent of Premium

(3. x 8.)     __________%     __________%

* Current Calendar Year Available

** Previous Calendar Year Available

INVESTMENT INCOME EXHIBIT 1.
INVESTMENT INCOME FROM LOSS AND
LOSS EXPENSE RESERVES, SOUTH CAROLINA

COMPREHENSIVE     COLLISION

4.     S.C. Loss Reserves

a. As of *     $__________     $__________

b. As of **     $__________     $__________

5.     S.C. Loss Adjustment

Expense Reserves

a. As of *     $__________     $__________

b. As of **     $__________     $__________

6.     Mean Loss & LAX Reserves

((4a. + 4b.)/2) +

((5a. + 5b.)/2)     $__________     $__________

7.     Premium Earned *     $__________     $__________

8.     Ratio Loss & LAX Reserves

to Earned Premium

(6./7.)     __________%     %

9.     Investment Income as a

Percent of Premium

(3. x 8.)     __________%     __________%

* Current Calendar Year Available

** Previous Calendar Year Available

INVESTMENT INCOME EXHIBIT 2.
INVESTMENT INCOME FROM UNEARNED
PREMIUM RESERVE, SOUTH CAROLINA

BODILY     PROPERTY

INJURY     DAMAGE
1.     S.C. Unearned Premium

Reserves

a. As of *     $__________     $__________

b. As of **     $__________     $__________

c. Mean premium

Reserves

(1a. + 1b.)/2     $__________     $__________

2.     Premium Earned *     $__________     $__________

3.     Ratio, Unearned Premium

Reserves to Earned

Premium (1c./2.)     __________%     __________%

4.     Rate of Return on

Investments

Exhibit 1, Line 3     __________%     __________%

5.     Investment Income as a

Percent of Premium

(3) x (4)     __________%     __________%

* Current Calendar Year Available

** Previous Calendar Year Available

INVESTMENT INCOME EXHIBIT 2.
INVESTMENT INCOME FROM UNEARNED
PREMIUM RESERVE, SOUTH CAROLINA

COMPREHENSIVE     COLLISION
1.     S.C. Unearned Premium

Reserves

a. As of *     $__________     $__________

b. As of **     $__________     $__________

c. Mean premium

Reserves

(1a. + 1b.)/2     $__________     $__________

2.     Premium Earned *     $__________     $__________

3.     Ratio, Unearned Premium

Reserves to Earned

Premium (1c./2.)     __________%     __________%

4.     Rate of Return on

Investments

Exhibit 1, Line 3     __________%     __________%

5.     Investment Income as a

Percent of Premium

(3) x (4)     __________%     __________%

* Current Calendar Year Available

** Previous Calendar Year Available

INVESTMENT INCOME EXHIBIT 3.
COMPANYWIDE RESERVES, SURPLUS
AND INVESTED ASSETS

ITEM     AMOUNT     ANNUAL STATEMENT

REFERENCE
1.     Loss Reserve*         Page 10, Part 3A,

$__________     Line 32, Col. 5

2.     Loss Adjustment         Page 10, Part 3A,

Reserve*     $__________     Line 32, Col. 6

3.     Unearned Premium*         Page 7, Part 2,

$__________     Line 31, Col. 3

4.     Total Reserves

(1 + 2 + 3)     $__________

5.     Cash and Invested         Page 2, Line 8A

Assets*     $__________     Col. 1

6.     Surplus *         Page 4, Line 32,

$__________     Col. 1

7.     Percent of

Surplus Invested

((5-4)/6)     __________%

8.     Rate of Surplus

to Reserves     __________%

(6/4)

* Current Calendar Year Available

INVESTMENT INCOME EXHIBIT 4.
INVESTMENT INCOME AS A PERCENT
OF PREMIUM, SOUTH CAROLINA

BODILY     PROPERTY

INJURY     DAMAGE

1.     Mean S.C. Premium
Reserve Investment Income
Exhibit 2, Line 1c.     $__________     $__________

2.     Mean S.C. Loss &
Loss Adj. Reserve Investment
Income Exhibit 1, Line 6     $__________     $__________

3.     Total S.C. Reserves     $__________     $__________

4.     S.C. Surplus,
(3) x Inv. Inc. Exhibit
3, Line 8     $__________     $__________

5.     Percent of Surplus
Invested Investment Income
Exhibit 3, Line 7     __________%     __________%

6.     Invested Surplus,
(4)x(5)     $__________     $__________

7.     Sum, Reserves and
Invested Surplus (3)+(6)     $__________     $__________

8.     Rate of Return on
Investments Investment
Income Exhibit 1, Line 3     __________%     __________%

9.     Investment Income
Earned on Reserves and
Invested Surplus (7)x(8)     $__________     $__________

10. Premium Earned,
Investment Income
Exhibit 1, Line 7     $__________     $__________

11. Investment Income as
a % of Premium
Earned (9)/(10)     __________%     __________%

INVESTMENT INCOME EXHIBIT 4.
INVESTMENT INCOME AS A PERCENT
OF PREMIUM, SOUTH CAROLINA

COMPREHENSIVE     COLLISION

1.     Mean S.C. Premium
Reserve Investment Income
Exhibit 2, Line 1c.     $__________     $__________

2.     Mean S.C. Loss &
Loss Adj. Reserve Investment
Income Exhibit 1, Line 6     $__________     $__________

3.     Total S.C. Reserves     $__________     $__________

4.     S.C. Surplus,
(3) x Inv. Inc. Exhibit
3, Line 8     $__________     $__________

5.     Percent of Surplus
Invested Investment Income
Exhibit 3, Line 7     __________%     __________%

6.     Invested Surplus,
(4)x(5)     $__________     $__________

7.     Sum, Reserves and
Invested Surplus (3)+(6)     $__________     $__________

8.     Rate of Return on
Investments Investment
Income Exhibit 1, Line 3     __________%     __________%

9.     Investment Income
Earned on Reserves and
Invested Surplus (7)x(8)     $__________     $__________

10. Premium Earned,
Investment Income
Exhibit 1, Line 7     $__________     $__________

11. Investment Income as
a % of Premium
Earned (9)/(10)     __________%     __________%

The Chief Insurance Commissioner may reward an insurer actually achieving less than the maximum expense level allowable in rates after the initial three-year period by following a higher underwriting profit than would otherwise result from use of the instructions and exhibits set forth in this item. However, this reward shall not excess the difference between the insurer's actual expense level achieved and the maximum level allowable in rates in a given year."

5. the reasonableness of the judgment reflected in the filing;

6. dividends, savings, or unabsorbed premium deposits allowed or returned to South Carolina policyholders, members, or subscribers;

7. the adequacy of loss reserves;

8. the cost of reinsurance;

9. trend factors, including trends in actual losses per insured unit for the insurer making the filing;

10. a reasonable margin for underwriting profit and contingencies which may be a negative margin;

11. other relevant factors which impact upon the frequency or severity of claims or upon expenses.

(C) After consideration of the rate factors provided in paragraph (B) a rate may be found by the department to be excessive, unreasonable, or unfairly discriminatory based upon the following standards: 1. Rates shall be deemed are considered excessive if they are likely to produce a profit from South Carolina business that is unreasonably high in relation to the risk involved in the class of business or if expenses are unreasonably high in relation to services rendered. 2. Rates shall be deemed are considered excessive if, among other things, the rate structure established by a stock insurance company provides for replenishment of surpluses from premiums, when the replenishment is attributable to investment losses. 3. Rates shall be deemed are considered inadequate if they are clearly insufficient, together with the investment income attributable to them, to sustain projected losses and expenses in the class of business to which they apply. 4. A rate shall be deemed is considered inadequate as to the premium charged to a risk or group of risks if discounts or credits are allowed which exceed a reasonable reflection of expense savings and reasonably expected loss experience from the risk or group of risks. 5. A rate shall be deemed is considered unfairly discriminatory as a risk or group of risks if the application of premium discounts, credits, or surcharges among such risks does not bear a reasonable relationship to the expected loss and expense experience among the various risks.

(D) In reviewing a rate filing, the department may require the insurer to provide at the insurer's expense all information necessary to evaluate the condition of the company and the reasonableness of the filing according to the criteria enumerated in this section."

SECTION 55. Section 38-77-110 of the 1976 Code is amended by adding at the end:

"(1) An insurance company doing business in this State, or its agent, who avoids the requirement to write auto insurance as provided in this section is guilty of a misdemeanor and, upon conviction, must be fined separately ten thousand dollars for each violation.

(2) An insurance company doing business in this State who uses undue coercion or other unfair employment practices against an agent is guilty of a misdemeanor and, upon conviction, must be fined twenty-five thousand dollars for each violation."

SECTION 56. The 1976 Code is amended by adding:

"Section 38-77-350. (A) A person who is guilty of a violation, for a first offense, of Section 56-5-5310 for not having a taillight in good working order may not have his automobile insurance premiums increased as a result of that violation.

(B) A person violating Section 56-5-5310, for a first offense, has ten days to repair the taillight. If this person is found in violation of Section 56-5-5310 as stated in subsection (A), after the ten-day period, he must be punished as provided by law."

SECTION 57. The 1976 Code is amended by adding:

"Section 38-77-245. When an unlawfully uninsured motor vehicle is involved in a motor vehicle accident where the driver of the other vehicle who is insured is at fault, the uninsured driver, if any, is entitled to damages resulting from the accident, but no property damages to the uninsured motor vehicle are allowed."

SECTION 58. The 1976 Code is amended by adding:

"Section 38-77-625. If an insured is involved in a motor vehicle accident where he is not the at fault driver and the at fault driver is uninsured, his facility recoupment charge may not be increased by his insurer because of this occurrence."

SECTION 59. All automobile insurance policies affected by the provisions of this act must be prepared, to the extent possible, in a clear and coherent manner using words with common and every day meanings. These policies must be in a layout and form and printed in a manner as will maximize communication. Companies writing automobile liability insurance policies must draft all policies which would eliminate all nonessential and restate essential provisions in words and form customarily used and understood by people in the conduct of personal affairs. These policies also must be printed in a type size and color which can be readily read by a person with normal vision.

SECTION 60. (A) The commissioner shall review annually the rules, rates, and rating plans filed and in effect for each insurer providing five percent or more of the automobile liability insurance coverage in this State in the preceding calendar year to determine whether the filings continue to meet the requirements of this title and whether the filings are unfair or inappropriate given the loss experience in this State in the preceding year.

(B) Within one hundred eighty days of the effective date of this section, the commissioner shall promulgate regulations establishing procedures whereby each insurer providing five percent or more of the automobile liability insurance coverage in this State annually shall submit to the commissioner the following information:

( 1) the number of claims filed for each category;

( 2) the number of civil actions filed;

( 3) the number of civil actions compromised or settled;

( 4) the number of verdicts in civil actions;

( 5) the number of civil actions appealed;

( 6) the number of civil actions dismissed;

( 7) the total dollar amount paid in claims compromised or settled;

( 8) the total dollar amount paid pursuant to verdicts in civil actions;

( 9) the number of claims closed without payment and the amount held in reserve for all such claims;

(10) the total dollar amount expended for loss adjustment expenses, commissions, and brokerage expenses;

(11) the total dollar amount expended in defense and litigation of claims;

(12) the total dollar amount held in reserve for anticipated claims;

(13) net profit or loss;

(14) investment and other income on net realized capital gains and loss reserves and unearned premiums; and

(15) the number of automobile insurance policies canceled for reasons other than nonpayment of premiums.

(C) Beginning in the year 1990, the commissioner shall report annually during the month of November to the General Assembly the following information pertaining to each insurer providing f ve percent or more of the automobile liability insurance coverage in this State:

(1) the loss experience within the state during the preceding calendar year;

(2) the rules, rates, and rating plans in effect on the date of the report;

(3) the investment portfolio, including reserves, and the annual rate of return on it; and

(4) the information submitted to the commissioner pursuant to the regulations promulgated by authority of this section.

SECTION 61. A.     Section 38-73-1350 of the 1976 Code is amended to read:

"Section 38-73-1350. Notwithstanding the provisions of Sections 38-73-1370, 38-73-1380, 38-73-1400, 38-73-1410, 38-73-1420, and 38-73-1430, after public hearing the Chief Insurance Commissioner may prohibit Cooperation cooperation among or within property/casualty rating or advisory organizations by insurers or among or within these rating or advisory organizations and insurers in rate making or in other matters within the scope of this chapter, is authorized, so long as the filings resulting from the cooperation are subject to all the provisions of this chapter which are applicable to filings generally. The Commissioner may review such cooperative activities and practices, and, if, after a hearing, he finds that nay activity or practice is unfair or unreasonable or otherwise inconsistent with the provisions of this chapter, he may issue a written order specifying in what respects the activity or practice is unfair or unreasonable or otherwise inconsistent with the provisions of this chapter and requiring the discontinuance of the activity or practice, except to the extent that these organizations may compile and disseminate only historic loss data with no mathematical trending or analytical methodologies, upon a finding by the commissioner that the anti-competitive effects of this cooperation outweigh practical constraints of prohibitions. All property/casualty filings are subject to prior approval by the Chief Insurance Commissioner. The provisions of Title 1, Chapter 23 (Administrative Procedures Act) apply to all property/casualty rate filings."

B. Article 11, Chapter 73, Title 38 of the 1976 Code is amended by adding:

"Section 38-73-1370. After June 30, 1989, no rating organization may file a rate increase with the Commissioner for any previously approved final rate or premium charge for any private passenger automobile insurance coverage. A rating organization may file the pure loss component of the rate or premium charge for any private passenger automobile insurance coverage, by class and territory, for the approval of the Commissioner. After a public hearing, the Commissioner may approve the pure loss component of the rate or premium charge for use by the members or subscribers of the rating organization. No member or subscriber may use the approved pure loss component of the rate or premium charge unless and until the expense component of the rate or premium charge has also been filed with and approved by the Commissioner pursuant to Section 38-73-1380.

Section 38-73-1380. After June 30, 1989, no member or subscriber of a rating organization may utilize a rate or premium charge for any private passenger automobile insurance coverage unless and until the final rate or premium charge has been filed and approved by the Commissioner. After the effective date of this section, the final rate or premium charge is the pure loss component filed and approved by a rating organization on behalf of its members or subscribers added to the expense component of the rate or premium charge, filed with and approved by the Commissioner, by each member or subscriber of a rating organization independently.

No expense component filed by a member or subscriber of a rating organization may be approved by the Commissioner unless it has been the subject of a public hearing, if that member's or subscriber's total written private passenger automobile insurance premium during the previous calendar year equaled or exceeded one percent of the total written private passenger automobile insurance premium in this State during the previous calendar year.

Section 38-73-1400. (1) After June 30, 1989, the 'pure loss component' of the final rate or premium charge for private passenger automobile insurance is that portion of the final rate or premium charge applicable to calendar/accident year incurred losses (the sum of paid losses plus loss reserves including incurred but not reported loss reserves) and loss adjustment expense (those expenses directly related to the payment of claims) in this State, trended to include both the past and prospective loss experience; provided, however, if the insurer writes one percent or more of the written premium for automobile insurance during the previous calendar year, that insurer must file its own trending methodology as independently derived.

(2) The 'expense component' of the final rate or premium charge for private passenger automobile insurance is that portion of the final rate or premium charge applicable to production costs (including commissions and other acquisition expenses), underwriting costs, administrative costs (including the actual costs of taxes, licenses and fees) and profit margin in this State.

(3) The 'final rate or premium charge' is the approved pure loss component added to the approved expense component. In the determination of whether the pure loss component should be approved and in the determination of whether the expense component should be approved, neither may be inadequate, excessive, nor unfairly discriminatory and the Commissioner shall take into account investment income from unearned premium and loss reserves, surplus and realized capital gains.

Section 38-73-1410. After June 30, 1989, upon the effective date of this section, nothing herein should be construed to require a rating organization or its members or subscribers to immediately refile final rates or premium charges previously approved by the Commissioner for private passenger automobile insurance coverages. Members or subscribers of a rating organization are authorized to continue to use automobile insurance rates or premium charges, approved before the effective date of this section, or decreases from those rates or premium charges filed by the rating organization and, subsequently, approved after the effective date of this section.

Section 38-73-1420. After June 30, 1989, the Board of Governors of the South Carolina Reinsurance Facility shall file an expense component for private passenger automobile insurance rate or premium charges after the rating organization with the largest number of members or subscribers has filed a pure lose component for private passenger automobile insurance with the Commissioner. Upon the approval of such component, those automobile insurers designated pursuant to Section 38-77-690(A), for risks written by them through producers designated pursuant to that same section, shall utilize these final rate or premium charges. Automobile insurers designated pursuant to Section 38-77-590(A) are not required to see those same final rates or premium charges for risks written through their agents not appointed pursuant to Section 38-77-590.

Section 38-73-1430. After June 30, 1989, the commissioner may extend the provisions of Sections 38-73-1370, 38-73-1380, 38-73-1400, and 38-73-1410 to other lines of property and casualty insurance, by order, after public hearing, when the determination is made that to do so is in the public interest."

SECTION 62. Section 38-77-690 of the 1976 Code is amended by adding:

"(h} A designated carrier who fails a claims audit shall have no new designated producer assignments until such time as it passes a re-audit within a reasonable time period prescribed by the governing board. If this carrier fails two claims audits, including a re-audit, within any three year period that carrier is disqualified for renewal of its contract with the Facility upon expiration of its existing contract."

SECTION 63. If any provision of this act or the application of it to any person or circumstance is held invalid, the remainder of the act and the application of that provision to other persons or circumstances is not affected.

Section 64. Section 38-77-960 of the 1976 Code is amended by adding at the end:

"Upon the written request of the policyholder, all insurance companies doing business in this State shall give written notice to the policyholder informing him whether or not he and any driver under the policy is in the Facility. The Commissioner may fine companies ten thousand dollars for each violation for failure to give such notice upon the written request of the policyholder."

SECTION 65. A. Section 38-77-600 of the 1976 Code is amended to read:

"Section 38-77-600. The rate or premium charged by insurers of private passenger automobile insurance must include a Facility recoupment charge, which must be added to the appropriate base rate or objective standards rate prescribed in Sections 38-73-455 and 38-73-457. The operating losses of the Facility for a twelve-month period must be recouped in the subsequent twelve-month period.

(1) Prior to December first of each year, the governing board of the Facility shall calculate the recoupment amount, by coverage, by dividing the net Facility operating loss, adjusted to reflect industry average prudently incurred expenses, consistent with the provisions of Section 38-73-465, and the time value of money, by mandated coverage for the preceding Facility accounting year, by the total number of earned car years in the Facility, in South Carolina, by coverage, for the same period of time. .386 multiplied by the recoupment is to be borne by risks having zero surcharge points under the Uniform Merit Plan promulgated by the commissioner. This dollar The amount remainder of the recoupment (.614 multiplied by the recoupment) represents R in the formula, P0 1X + 2P1 2X + 3P2 3X + 4P3 4X + 5P4 5X + 6P 6 X + 7P 7 X + 8P 8 X + 9P 9 X + 10P 10 X = R. In this formula to be utilized in determining the Facility recoupment charge:

(a) P01 is the percentage of risks which have zero one surcharge points point under the Uniform Merit Rating Plan promulgated by the commissioner;

(b) P12 is the percentage of risks which have one two surcharge point points under the Uniform Merit Rating Plan;

(c) P23 is the percentage of risks which are subject to a surcharge of two three points under the Uniform Merit Rating Plan;

(d) P34 is the percentage of risks which are subject to a surcharge of three to eight four points under the Uniform Merit Rating Plan;

(e) P45 is the percentage of risks subject to a surcharge of nine or more five points under the Uniform Merit Rating Plan;

(f) P 6 is the percentage of risks subject to a surcharge of six points under the Uniform Merit Rating Plan;

(g) P 7 is the percentage of risks subject to a surcharge of seven points under the Uniform Merit Rating Plan;

(h) P 8 is the percentage of risks subject to a surcharge of eight points under the Uniform Merit Rating plan;

(i) P 9 is the percentage of risks subject to a surcharge of nine points under the Uniform Merit Rating Plan;

(j) P 10 or more is the percentage of risks subject to a surcharge of ten or more points under the Uniform Merit Rating Plan;

(f)(k) X is the dollar amount by coverage, to be charged all risks having zero one surcharge points point under the Uniform Merit Rating Plan promulgated by the Commissioner. This dollar amount, by coverage, is the Facility recoupment charge to be added to the base rate or objective standards rate prescribed in Sections 38-73-455 and 38-73-457 for all risks which have zero one surcharge points point.

(2) The Facility recoupment charge by coverage to be added to the base rate or objective standards rate for all risks which have one surcharge point under the Uniform Merit Rating Plan is calculated by multiplying X by a factor of one.

(2)(3) The Facility recoupment charge by coverage to be added to the base rate or objective standards rate for all risks which have one two surcharge point points under the Uniform Merit Rating Plan is calculated by multiplying X by a factor of two.

(3)(4) The Facility recoupment charge by coverage to be added to the base rate or objective standards rate for all risks which are subject to a surcharge of two three points under the Uniform Merit Rating Plan is calculated by multiplying X by a factor of three.

(4)(5) The Facility recoupment charge by coverage to be added to the base rate or objective standards rate for all risks which are subject to a surcharge of three to eight four points under the Uniform Merit Rating Plan is calculated by multiplying X by a factor of four.

(5)(6) The Facility recoupment charge by coverage to be added to the base rate or objective standards rate for all risks which are subject to a surcharge of nine or more five points under the Uniform Merit Rating Plan is calculated by multiplying X by a factor of five.

(7) The Facility recoupment charge by coverage to be added to the base rate or objective standards rate for all risks which are subject to a surcharge of six points under the Uniform Merit Rating Plan is calculated by multiplying X by a factor of six.

(8) The Facility recoupment charge by coverage to be added to the base rate or objective standards rate for all risks which are subject to a surcharge of seven points under the Uniform Merit Rating Plan is calculated by multiplying X by a factor of seven.

(9) The Facility recoupment charge by coverage to be added to the base rate or objective standards rate for all risks which are subject to a surcharge of eight points under the Uniform Merit Rating Plan is calculated by multiplying X by a factor of eight.

(10) The Facility recoupment charge by coverage to be added to the base rate or objective standards rate for all risks which are subject to a surcharge of nine points under the Uniform Merit Rating Plan is calculated by multiplying X by a factor of nine.

(11) The Facility recoupment charge by coverage to be added to the base rate or objective standards rate for all risks which are subject to a surcharge of ten or more points under the Uniform Merit Rating Plan is calculated by multiplying X by a factor of ten.

(6)(12) In determining the number of surcharge points a risk has for the purposes of this section, no surcharge points assigned under the Uniform Merit Rating Plan because the principal operator of the automobile has not been licensed in any state for at least one year immediately preceding the writing of the risk or as a result of a failure of any motor vehicle equipment requirement may be considered.

This section applies to all private passenger automobile insurance policies issued or renewed after June 30, 1989. However, insurers unable to comply with the provisions of this section and renewal provisions required by law may comply with this section at any time after June 30, 1989, but in no event later than September 1, 1989."

B. Section 38-77-620 of the 1976 Code is amended to read:

"Section 38-77-620. The Facility recoupment charges approved or established pursuant to Section 38-77-610 must be added to the approved base rate and objective standards rate in effect for each automobile insurer. The combined rate or premium charge is effective on July first of each year send the recoupment charges must remain constant until July first of the following year. The base rate and objective standards rate may change in accordance with Section 38-73-457 and the other applicable requirements of this title pertaining to the approval of rates or premium charges. Facility recoupment charges must be considered in accordance with the following:

(1) Any recoupment charge paid by policyholders must be considered premium for the purpose of calculating premium taxes and commissions and is subject to normal policy cancellation procedures.

(2} Any net operating gains resulting from the operation of the Facility must be retained by the Facility, and the gains and any investment income derived from the gains must be used to offset future operating losses.

(3) The total funds recouped by all insurers less commission and premium tax expenses and time value of money considerations must be paid to the Reinsurance Facility in accordance with the plan of operation. The governing board shall redistribute the funds to the insurers based upon each insurer's share of the Reinsurance Facility losses. Recoupment must be used solely for the purpose of recovering past Facility operating deficits. The plan of operation must provide that the amount ultimately received by an individual company is not more than the company's share of the Reinsurance Facility losses, plus the time value of money.

(4) In the making and approval of rates for small commercial automobile risks, as defined in Section 38-77-30, consideration must be given to the net gains or losses incurred by insurers as a result of participation in the operating results and actual, prudently incurred expenses, respectively, of the Facility."

SECTION 66. Each insurer providing automobile liability insurance coverage in this State shall submit to the General Assembly annually:

(1) the amount of premiums received in each year;

(2) the amount of claims paid out in each year;

(3) the balance of the cash reserve at the beginning of the year and the balance at the end of the year.

SECTION 67. Section 38-77-605 of the 1976 Code is amended to read:

"Section 38-77-605. Every premium notice or bill for private passenger automobile insurance must display prominently in bold type the facility recoupment charge, by coverage, and the total facility recoupment charge for that policy or binder. In addition, effective on June 30, 1989, every premium notice or bill for every qualifying policyholder of private passenger automobile insurance must display in the same fashion as previously stated in this section a dollar line item designated as a 'mandated safe driver recoupment charges savings'."

SECTION 68. Section 38-73-465 of the 1976 Code as reenacted by this act is amended by adding:

E. As a result of the enactment of the Automobile Insurance Reform Act of 1989, automobile insurance rates must be decreased on the policy anniversary date of each insured after September 30, 1989, for those drivers qualifying for the safe driver discount by five percent after elimination of the appropriate amount of the recoupment charge. However, after the first year following the reductions, an insurer may apply to the Chief Insurance Commissioner for a rate adjustment, based on its actual experience, and include consideration of the time value of money. In every filing following the effective date of this section for an increase in automobile insurance rates, every insurer shall include in that filing a rate report under this methodology. Every rate filing must be, after that time, effective only after prior approval of the Chief Insurance Commissioner, consistent with provisions of Chapter 23 of Title 1 (Administrative Procedures Act)."

SECTION 69. Notwithstanding the provisions of Section 38-77-140 of the 1976 Code of Laws, all private passenger automobile insurers shall offer, at the insured's option, a one hundred dollar deductible on the bodily injury and property damage liability portion of the coverage and the insured or qualified applicant at his option may select an additional deductible in the following amounts: one hundred dollars; two hundred fifty dollars; five hundred dollars; or one thousand dollars. In the event that the insurer makes a liability payment under the policy the insurer shall pay the full amount without any subtraction or withholding of the deductible amount. The insurer is entitled to recover the deductible amount from the named insured. If the named insured fails to pay the deductible to the insurer within thirty days after the insurer makes payment and notifies the insured by certified mail as a result of an accident chargeable to any insured, upon the filing of an affidavit to that effect, the Department of Highways and Public Transportation shall immediately suspend the named insured's license to operate a motor vehicle in this State. The suspension shall continue until the named insured produces proof acceptable to the department of payment of the deductible to the third-party claimant.

All insurers offering bodily injury liability coverage shall file with the Chief Insurance Commissioner and the Consumer Advocate, not later than sixty days after the effective date of this section, revised premium rates for liability coverage for policies which carry such deductibles. The revised rates must be approved by the Chief Insurance Commissioner and shall reflect a reduction in the currently approved premium rate for this coverage of at least three percent. In the first year following these reductions, an insurer may apply to the Chief Insurance Commissioner for a rate adjustment, based on its actual experience, and include consideration of the time value of money.

SECTION 70. Whenever a motor vehicle which does not have liability insurance as required by the laws of this State is involved in an accident, the municipality in which the accident occurred, or the county if the accident did not occur within the corporate limits of a municipality, shall tow the vehicle to a holding area. The owner of the vehicle shall pay the towing and storage fees, and the owner shall fully demonstrate financial responsibility with respect to the vehicle before it may be returned to him by the municipality or the county which towed it.

SECTION 71. Chapter 5, Title 56 of the 1976 Code is amended by adding:

"Article 48
Safety Belts

Section 56-5-6510. As used in this article:

(1) 'Motor vehicle' means a passenger car, truck, van, or recreational vehicle required to be equipped with safety belts by Federal Motor Vehicle Safety Standard No. 208 449 CFR 571.208), manufactured after July, 1966.

(2) 'Driver' means a person who drives or is in actual physical control of a motor vehicle.

Section 56-5-6520. Every front seat occupant of a motor vehicle who is under fifteen years of age but over six years of age, when the motor vehicle is being operated on the public streets and highways of this State, shall wear a fastened safety belt which complies with all provisions of federal law for the use of safety belts. The driver is charged with the responsibility of requiring each such occupant to wear a safety belt.

Section 56-5-6530. The provisions of this article do not apply to:

(1) a driver or occupant who possesses a written verification from a physician that he is unable to wear a safety belt for physical or medical reasons;

(2) medical or rescue personnel attending to injured or sick individuals in an emergency vehicle when operating in an emergency situation as well as the injured or sick individual;

(3) school, church, or day care buses;

(4) public transportation vehicles except taxis;

(5) sanitation and fire trucks;

(6) occupants of vehicles in parades;

(7) rural mail carriers;

(8) an occupant for which no safety belt is available because all belts are being used by other occupants;

(9) a driver or occupant frequently stopping and leaving a motor vehicle for delivery purposes;

(10) children under six years of age who must be restrained properly as provided by Article 47, Chapter 5 of Title 56.

Section 56-5-6540. (A) A person violating the provisions of this article, upon conviction, must be fined not more than ten dollars. All fines collected must go to the Department of Highways and Public Transportation and be used for highway safety and enforcement. No custodial arrest for a violation of this article may be made, except upon a warrant issued for failure to appear in court when summoned or for failure to pay an imposed fine.

(B) A violation of this article does not constitute contributory negligence, negligence per se, or assumption of the risk, nor is it admissible as evidence in the trial of any civil action on the issue of mitigation of damages."

SECTION 72. For three months after the effective date of this act, only warnings may be issued for violations of Article 48, Chapter 5, Title 56 of the 1976 Code.

SECTION 73. For the purpose of recovering motor vehicle registration plates as required by Section 56-10-40 of the 1976 Code, the department may contract with or make working arrangements with local law enforcement agencies including sheriffs and municipal law enforcement departments for them to also confiscate these plates, upon a contract or working arrangement being agreed to, these local law enforcement agencies are authorized to confiscate these plates. The local law enforcement agencies must be paid for this service in the manner agreed upon between them and the executive director from funds of the department which are to be used for this purpose.

SECTION 74. A. Chapter 77 of Title 38 of the 1976 Code is amended by adding:

"Article 2
Sticker or Emblem Evidencing Insurance
Coverage to be Affixed to Motor Vehicles

Section 38-77-80. (A) The owner of a motor vehicle registered in this State who is required by Section 56-10-10 to provide the security required for the maintenance or use of the vehicle and who has owned the motor vehicle for thirty days or more shall, as prima facie evidence that the security is currently in full force and effect, affix on the front windshield an identifying sticker or emblem which indicates the month, day, and year for which the policy has been paid plus any grace period allowed by the company. However, if requested by the insured to issue the sticker or emblem for a period less than the paid-up period, the sticker or emblem must be issued for periods of three months. If the payment for the insurance policy is made on a monthly basis the sticker or emblem must be issued for a three month period.

(B) The form and content of the sticker or emblem required by subsection (A) must be prescribed by regulation of the Chief Insurance Commissioner. All stickers or emblems must be supplied by or under the authority of the Department of Highways and Public Transportation and must be serially numbered and must be an easily removable void sticker. Insurance companies must purchase the stickers or emblems from the department at a cost not to exceed five cents each. The department shall require monthly reports be made to the department by persons to whom stickers or emblems have been supplied which must include, at least, the number of the sticker or emblem, the serial number of the motor vehicle for which it was issued, the name of its owner, and the date issued.

(C) All stickers or emblems issued pursuant to this section are the property of the State and must be permanently affixed by the owner to the vehicle covered by the required security only during the time for which the security which it represents remains in full force and effect. Every vehicle owner shall immediately remove from the vehicle any sticker or emblem purporting to represent security which he knows has been terminated, cancelled, impaired, expired, or is otherwise ineffective.

(D) When a vehicle owner meets the security requirements of this section through the purchase of a contract of insurance, the authorized insurance company or its authorized agent with which he has contracted for the security shall provide within fifteen days from receipt and deposit of the premium payment, a sticker or emblem as described in subsection (A). The commissioner shall furnish or authorize for each insurer sufficient quantities of the stickers or emblems as they may require for each vehicle which the insurer reasonably expects to insure during each annual period for which its policies of insurance are expected to be in force.

(E) To receive a refund from an insurance company for policies cancelled before the date on the sticker or emblem, a copy of the bill of sale, if applicable, must be sent to the insurer along with the current sticker or emblem. The request for refunds must be postmarked within thirty days of the date of the sale of the motor vehicle.

(F) Every insurance company shall provide notice of a cancellation of a policy to the Department of Highways and Public Transportation within thirty days following the cancellation of the policy.

(G) The vehicle being operated in this State which does not have the requisite sticker or emblem affixed to the vehicle as required by this article or which has affixed a sticker or emblem which is invalid must have the license plates removed from the motor vehicle by the law enforcement officer at the time of the violation. In addition, the owner of the vehicle is guilty of a misdemeanor and, upon conviction, must be fined twenty-five dollars. If, within ten days of the confiscation of the license plates, proof is provided by the owner of the vehicle that security required by this article was in effect at the time the license plates were removed, the vehicle's license plates must be returned to the owner. If no proof is provided that security existed at the time the license plates were removed, the owner is guilty of a misdemeanor and, upon conviction, must have the license plates on this motor vehicle suspended until he can demonstrate to the Department of Highways and Public Transportation that he has a paid-up policy for one year in effect on the motor vehicle and pays a two hundred dollar fine, one-half of which must be returned to the law enforcement agency making the arrest.

(H) (1) No person may:

(a) alter a sticker or emblem issued under the provisions of this article;

(b) manufacture, possess, or display an imitation or counterfeit sticker or emblem;

(c) remove a sticker or emblem from a motor vehicle unless he is the owner of the motor vehicle or removes the sticker or emblem at the request or direction of the owner.

(2) Any person violating the provisions of this subsection is guilty of a misdemeanor and, upon conviction, for each violation must be fined in an amount not to exceed two hundred dollars or imprisoned for a period not to exceed thirty days."

B. This Section is effective January 1, 1990.

SECTION 75. The provisions of this act are effective for policies of insurance entered into or renewed or delivered or issued for delivery in this State after September 30, 1989.

SECTION 76. Sections 38-77-240, 38-77-250, 38-77-260, 38-77-270, 38-77-290, 38-77-300, and 38-77-310 of the 1976 Code are repealed.

SECTION 77. Except as otherwise specifically provided herein, this act takes effect upon approval by the Governor./

Amend title to conform.

Rep. R. BROWN explained the Senate Amendments.

Rep. FELDER spoke in favor of the amendment.

The amendment was then adopted.

The Senate Amendments, as amended, were then agreed to and the Bill ordered returned to the Senate.

Rep. DAVENPORT moved that the House do now adjourn.

Rep JASKWHICH demanded yeas and nays, which were taken resulting as follows:

Yeas 6; Nays 82

Those who voted in the affirmative are:

Davenport              Farr                   Koon
McLellan               Phillips               Taylor

Total - 6

Those who voted in the negative are:

Alexander, T.C.        Altman                 Baker
Barber                 Barfield               Beasley
Blackwell              Blanding               Boan
Brown, G.              Brown, H.              Brown, R.
Bruce                  Burch                  Burriss, M.D.
Chamblee               Clyborne               Cole
Cooper                 Corbett                Cork
Derrick                Elliott                Faber
Fair                   Fant                   Felder
Glover                 Gregory                Hallman
Harris, J.             Harvin                 Harwell
Haskins                Hayes                  Hearn
Hendricks              Huff                   Jaskwhich
Johnson, J.C.          Johnson, J.W.          Keegan
Keesley                Keyserling             Kirsh
Klapman                Kohn                   Lanford
Limehouse              Littlejohn             Manly
Mappus                 Martin, L.             McBride
McCain                 McEachin               McElveen
McGinnis               McLeod                 McTeer
Moss                   Neilson                Nesbitt
Nettles                Quinn                  Rama
Rhoad                  Rogers, J.             Rogers, T.
Rudnick                Sharpe                 Sheheen
Smith                  Snow                   Tucker
Vaughn                 Waites                 Wilder
Wilkes                 Wilkins                Winstead
Wright

Total-82

So, the House refused to adjourn.

MOTION ADOPTED

Rep. BURCH moved that when the House adjourns it adjourn in memory of Mr. Wade Funderburke, outstanding citizen of Pageland, which was agreed to.

MOTION TABLED

Rep. T. ROGERS moved that the House recur to the morning hour.

Rep. KIRSH moved to table the motion, which was agreed to by a division vote of 47 to 45.

H. 3053-AMENDED AND SENT TO THE SENATE

The following Bill was taken up.

H. 3053 -- Reps. Kirsh and Mappus: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 56-5-3885 SO AS TO MAKE IT UNLAWFUL FOR A PERSON TO OPERATE A MOTOR VEHICLE IN THIS STATE WHICH HAS AFFIXED TO IT AN OBSCENE BUMPER STICKER AND TO PROVIDE PENALTIES FOR VIOLATION.

Reps. WILKES, KIRSH, KEESLEY, STURKIE and WAITES, with unanimous consent, proposed the following Amendment No. 2 (Doc. No. 4515U), which was adopted.

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

/SECTION 1. The 1976 Code is amended by adding:

"Section 56-5-3885. (A) No person may operate a motor vehicle in this State which has affixed or attached to any part of the motor vehicle which is visible to members of the public not occupying the vehicle any sticker, decal, emblem, or other device containing obscene or indecent words, photographs, or depictions.

(B) Obscene words, photographs, or depictions must be defined and interpreted as provided in Section 16-15-305(B), (C), (D}, and (E).

(C) A sticker, decal, emblem, or device is indecent when:

(1) taken as a whole, it describes, in a patently offensive way, as determined by contemporary community standards, sexual acts, excretory functions, or parts of the human body; and

(2) taken as a whole, it lacks serious literary, artistic, political, or scientific value.

(D) A person who violates the provisions of subsection (A) is guilty of a misdemeanor and, upon conviction, must be punished by a fine not exceeding two hundred dollars."

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

Amend title to conform.

Rep. KIRSH explained the amendment.

Rep. WILKES explained the amendment.

The amendment was then adopted.

The Bill, as amended, was read the third time and ordered sent to the Senate.

H. 3167-SENT TO THE SENATE

The following Bill was taken up.

H. 3167 -- Reps. Gregory, Fair, McLellan, Short, Kirsh, J. Brown and Wilkins: A BILL TO REAUTHORIZE THE EXISTENCE OF THE SOUTH CAROLINA ENVIRONMENTAL CERTIFICATION BOARD FOR SIX YEARS AND TO AMEND SECTION 40-23-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MEMBERSHIP OF THE ENVIRONMENTAL CERTIFICATION BOARD, SO AS TO DECREASE THE NUMBER OF MEMBERS FROM FOURTEEN TO SEVEN AND PROVIDE FOR THEIR APPOINTMENT.

Rep. TOWNSEND asked unanimous consent to amend the Bill on third reading.

Rep. GREGORY objected.

Rep. TOWNSEND moved to table the Bill.

Rep. GREGORY demanded the yeas and nays, which were taken resulting as follows:

Yeas 24; Nays 64

Those who voted in the affirmative are:

Baker                  Baxley                 Beasley
Burriss, M.D.          Chamblee               Clyborne
Cooper                 Davenport              Haskins
Hendricks              Huff                   Kay
Keesley                Littlejohn             McCain
Neilson                Nesbitt                Quinn
Simpson                Townsend               Tucker
Wilkes                 Wofford                Wright

Total-24

Those who voted in the negative are:

Alexander, M.O.        Alexander, T.C.        Altman
Bailey, K.             Barber                 Barfield
Blackwell              Blanding               Brown, G.
Brown, J.              Brown, R.              Bruce
Burch                  Cole                   Corbett
Cork                   Derrick                Elliott
Faber                  Fair                   Farr
Ferguson               Gentry                 Glover
Gregory                Hallman                Harvin
Harwell                Hayes                  Hearn
Holt                   Johnson, J.W.          Keegan
Keyserling             Kirsh                  Klapman
Koon                   Limehouse              Manly
Mappus                 Martin, L.             Mattos
McAbee                 McBride                McElveen
McGinnis               McKay                  McLeod
McTeer                 Rhoad                  Rudnick
Sharpe                 Sheheen                Snow
Taylor                 Vaughn                 Waites
Washington             Wells                  Whipper
White                  Wilder                 Wilkins
Winstead

Total-64

So, the House refused to table the Bill.

Rep. TOWNSEND spoke against the Bill.

Rep. MAPPUS moved to divide the question.

POINT OF ORDER

Rep. GREGORY raised the Point of Order that the motion to divide the question on the Bill on third reading was out of order.

The SPEAKER, citing Rule 8.10, stated that any member, without debate, may call for the division of the question and he overruled the Point of Order.

Rep. GREGORY moved to table the motion to divide the question, which was not agreed to by a division vote of 37 to 48.

The question then recurred to the motion to divide the question, which was agreed to.

QUESTION 1-SECTION 1-ADOPTED

Rep. BAKER spoke in favor of Section 1.

Rep. GREGORY spoke in favor of Section 1.

Section 1 was adopted.

QUESTION 2-SECTION 2-TABLED

Rep. McCAIN moved to table Section 2.

Rep. GREGORY demanded the yeas and nays, which were taken resulting as follows:

Yeas 47; Nays 32

Those who voted in the affirmative are:

Altman                 Baker                  Barber
Barfield               Baxley                 Beasley
Boan                   Brown, H.              Brown, R.
Bruce                  Burriss, M.D.          Chamblee
Clyborne               Cooper                 Davenport
Faber                  Ferguson               Gentry
Harvin                 Haskins                Hearn
Hendricks              Holt                   Huff
Jaskwhich              Johnson, J.C.          Kay
Keesley                Littlejohn             Mappus
Mattos                 McAbee                 McBride
McCain                 McGinnis               Neilson
Nesbitt                Quinn                  Simpson
Smith                  Snow                   Townsend
Tucker                 Vaughn                 Wells
Whipper                Wright

Total--47

Those who voted in the negative are:

Alexander, M.O.        Alexander, T.C.        Bailey, K.
Blanding               Brown, G.              Burch
Corbett                Cork                   Derrick
Felder                 Gregory                Hallman
Harris, J.             Harwell                Johnson, J.W.
Keegan                 Keyserling             Kirsh
Koon                   Manly                  Martin, L.
McLeod                 McTeer                 Rama
Rhoad                  Rogers, T.             Rudnick
Sharpe                 Sheheen                Sturkie
Waites                 White

Total-32

So, Section 2 was tabled.

QUESTION 3-SECTION 3-ADOPTED

Section 3 was adopted.

The Bill was read the third time and ordered sent to the Senate.

Rep. T. ROGERS moved that the House recur to the morning hour.

Rep. HOLT moved that the House do now adjourn.

Rep. JASKWHICH demanded the yeas and nays.

POINT OF ORDER

Rep. GREGORY raised the Point of Order that the motion was out of order as the member was not in his seat when he made the motion.

The SPEAKER sustained the Point of Order.

Rep. BEASLEY demanded the yeas and nays, which were taken resulting as follows:

Yeas 47; Nays 48

Those who voted in the affirmative are:

Altman                 Bailey, G.             Bailey, J.
Bailey, K.             Baxley                 Blackwell
Blanding               Brown, R.              Burch
Burriss, M.D.          Chamblee               Cork
Davenport              Elliott                Fair
Fant                   Felder                 Ferguson
Gentry                 Hallman                Hearn
Hendricks              Hodges                 Holt
Kay                    Kirsh                  Limehouse
Mappus                 Martin, L.             Mattos
McCain                 McGinnis               McLeod
Neilson                Nesbitt                Nettles
Rhoad                  Sheheen                Simpson
Snow                   Taylor                 Townsend
Vaughn                 Waldrop                Washington
Wells                  Whipper

Total-47

Those who voted in voted in the negative are:

Alexander, M.O.        Baker                  Barber
Barfield               Beasley                Boan
Brown, H.              Brown, J.              Bruce
Clyborne               Cole                   Cooper
Corbett                Faber                  Farr
Harris, J.             Harvin                 Harwell
Haskins                Huff                   Jaskwhich
Johnson, J.C.          Johnson, J.W.          Keegan
Keesley                Keyserling             Koon
Lanford                Littlejohn             Manly
McAbee                 McBride                McEachin
McTeer                 Quinn                  Rama
Rogers, J.             Rogers, T.             Rudnick
Sharpe                 Smith                  Sturkie
Tucker                 Waites                 White
Wilkes                 Wilkins                Wright

Total-48

So, the House refused to adjourn.

The question then recurred to the motion to recur to the morning hour.

Rep. WILKINS moved to table the motion, which was not agreed to by a division vote of 36 to 46.

RECURRENCE TO THE MORNING HOUR

The question then recurred to the motion to recur to the morning hour, which was agreed to.

R. 126, H. 3964-GOVERNOR'S VETO SUSTAINED

The following was received.

STATE OF SOUTH CAROLINA
OFFICE OF THE GOVERNOR

May 10, 1989

Mr. Speaker and Members of the House:

I am hereby returning without my approval H. 3964, R-126, an Act:
TO PROVIDE FOR THE TAX MILLAGE TO BE LEVIED IN CHARLESTON COUNTY FOR FISCAL YEAR 1989-90 FOR CERTAIN LOCAL SUBDIVISIONS, AGENCIES, AND COMMISSIONS OF THE COUNTY, AND TO PROVIDE FOR THE TOTAL OPERATING BUDGETS OF THESE SUBDIVISIONS, AGENCIES, AND COMMISSIONS FOR FISCAL YEAR 1989-90.

This veto is based upon an opinion of the Attorney General's Office dated May 8, 1989 which states in concluding:

"It has been, and continues to be, the opinion of this office that sections one through five and seven through nine of the above-cited act are most probably unconstitutional."

Yours sincerely,
Carroll A. Campbell, Jr.
Governor

STATE OF SOUTH CAROLINA
OFFICE OF THE ATTORNEY GENERAL

May 8, 1989
Mark R. Elam, Esquire
Senior Counsel to the Governor
Office of the Governor
Post Office Box 11369
Columbia, South Carolina 29211

Dear Mr. Elam:

You have asked for the opinion of this Office as to the constitutionality of H. 3964, R-126, which act sets the millage for several agencies, special purpose districts, and commissions located within Charleston County. It has been, and continues to be, the opinion of this Office that sections one through five and seven through nine of the above-cited act are most probably unconstitutional. For further discussions of the matter, I refer you to opinions of this Office dated June 3, 1988; May 22, 1987; June 4, 1985: June 21, 1986; June 18, 1984; June 7, 1983; January 6, 1983; June 2, 1983; June 14, 1982; and June 6, 1980. Section six would probably pass constitutional muster, as concluded in the opinions dated June 21,1986; June 4, 1986; May 22, 1987; and June 3, 1988.

With kindest regards, I am

Sincerely,
Patricia D. Petway
Assistant Attorney General

REVIEWED AND APPROVED BY:
Robert D. Cook
Executive Assistant for Opinions

The question was put, shall the Act become a part of the law, the veto of his Excellency, the Governor to the contrary notwithstanding, the yeas and nays were taken resulting as follows:

Yeas 6; Nays 4

Those who voted in the affirmative are:

Bailey, J.             Barber                 Holt
Mappus                 Washington             Whipper

Total-6

Those who voted in the negative are:

Hallman                Kohn                   Rama
Wofford

Total-4

So, the veto of the Governor was sustained.

MOTION NOTED

Rep. WOFFORD moved to reconsider the vote whereby the veto was sustained and the motion was noted.

Rep. CHAMBLEE moved that the House do now adjourn.

POINT OF ORDER

Rep. HARWELL raised the Point of Order that fifteen minutes had not elapsed since a similar motion was made, which point was sustained by the chair.

CONCURRENT RESOLUTION

The following was introduced:

H. 4028 -- Reps. Harvin, J. Brown, Littlejohn, Davenport, Taylor, Faber, Waites, Whipper and Neilson: A CONCURRENT RESOLUTION REQUESTING THE PUBLIC SCHOOL DISTRICTS IN THE STATE WHO DO NOT ALREADY OFFER FREE BREAKFAST PROGRAMS TO ALL QUALIFYING STUDENTS TO DO SO.

The Concurrent Resolution was ordered referred to the Committee on Invitations and Memorial Resolutions.

CONCURRENT RESOLUTION

The following was introduced:

H. 4029 -- Reps. Rudnick, P. Harris, Blackwell, Waldrop, Smith, Sharpe, Huff, Keesley and Gentry: A CONCURRENT RESOLUTION TO CONGRATULATE MR. ARTHUR DEXTER OF AIKEN COUNTY UPON RECEIVING THE "OUTSTANDING OLDER SOUTH CAROLINIAN" AWARD BY THE SOUTH CAROLINA COMMISSION ON AGING.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

Rep. BLACKWELL moved that the House do now adjourn.

POINT OF ORDER

Rep. McEACHIN raised the Point of Order that fifteen minutes had not elapsed since a similar motion was made, which point was not sustained by the chair.

The question then recurred to the motion that the House do now adjourn, which was agreed to.

RETURNED WITH CONCURRENCE

The Senate returned to the House with concurrence the following:

H. 4002 -- Reps. Stoddard, McAbee, Clyborne and D. Martin: A CONCURRENT RESOLUTION TO FIX WEDNESDAY, MAY 31, 1989, AT 12:00 NOON AS THE TIME FOR ELECTING A SUCCESSOR TO THE MEMBER OF THE CITADEL BOARD OF VISITORS WHOSE TERM EXPIRES ON JUNE 30, 1989, AND FOR ELECTING SUCCESSORS TO THE FOUR MEMBERS OF THE BOARD OF TRUSTEES OF THE WIL LOU GRAY OPPORTUNITY SCHOOL WHOSE TERMS EXPIRE ON JUNE 30, 1989.

H. 4009 -- Rep. Corning: A CONCURRENT RESOLUTION CONGRATULATING MS. SUZANNE FIELDS ON BEING SELECTED AS A "TEACHER OF THE YEAR" BY THE RICHLAND DISTRICT TWO SCHOOLS.

H. 4010 -- Rep. Corning: A CONCURRENT RESOLUTION CONGRATULATING MS. BETH ELLIOTT ON BEING SELECTED AS A "TEACHER OF THE YEAR" BY THE RICHLAND DISTRICT TWO SCHOOLS.

H. 4011 -- Rep. Corning: A CONCURRENT RESOLUTION CONGRATULATING MS. CONNIE MILLER ON BEING SELECTED AS A "TEACHER OF THE YEAR" BY THE RICHLAND DISTRICT TWO SCHOOLS.

H. 4012 -- Rep. Corning: A CONCURRENT RESOLUTION CONGRATULATING MS. CLELIA MOORE ON BEING SELECTED AS A "TEACHER OF THE YEAR" BY THE RICHLAND DISTRICT TWO SCHOOLS.

H. 4013 -- Rep. Corning: A CONCURRENT RESOLUTION CONGRATULATING MS. LORRAINE CONRAD ON BEING SELECTED AS A "TEACHER OF THE YEAR" BY THE RICHLAND DISTRICT TWO SCHOOLS.

H. 4014 -- Rep. Corning: A CONCURRENT RESOLUTION CONGRATULATING MS. ANNE MARTIN ON BEING SELECTED AS A "TEACHER OF THE YEAR" BY THE RICHLAND DISTRICT TWO SCHOOLS.

H. 4015 -- Rep. Corning: A CONCURRENT RESOLUTION CONGRATULATING MS. DEBI LEGRAND ON BEING SELECTED AS A "TEACHER OF THE YEAR" BY THE RICHLAND DISTRICT TWO SCHOOLS.

H. 4016 -- Rep. Corning: A CONCURRENT RESOLUTION CONGRATULATING MS. PAULA WILSON ON BEING SELECTED AS A "TEACHER OF THE YEAR" BY THE RICHLAND DISTRICT TWO SCHOOLS.

H. 4017 -- Rep. Corning: A CONCURRENT RESOLUTION CONGRATULATING MS. DELPHIA GILES ON BEING SELECTED AS A "TEACHER OF THE YEAR" BY THE RICHLAND DISTRICT TWO SCHOOLS.

H. 4019 -- Reps. Keesley, G. Bailey and Harwell: A CONCURRENT RESOLUTION TO CONGRATULATE THE SOUTH CAROLINA JAYCEES ON BEING RECOGNIZED AS THE NUMBER ONE STATE JAYCEE ORGANIZATION IN AMERICA FOR THE SECOND CONSECUTIVE YEAR.

ADJOURNMENT

At 5:00 P.M. the House in accordance with the motion of Rep. BURCH adjourned in memory of Mr. Wade Funderburke, outstanding citizen of Pageland to meet at 10:00 A.M. tomorrow.


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