South Carolina General Assembly
110th Session, 1993-1994
Journal of the Senate

Monday, April 4, 1994

(Local Session)

Indicates Matter Stricken
Indicates New Matter

The Senate assembled at 11:00 A.M., the hour to which it stood adjourned and was called to order by the ACTING PRESIDENT, Senator PATTERSON.

REPORT RECEIVED

REPORT OF

THE JOINT INSURANCE STUDY COMMITTEE

MARCH, 1994

TO THE HONORABLE CARROLL A. CAMPBELL, JR.

GOVERNOR OF SOUTH CAROLINA

THE HONORABLE PRESIDING OFFICERS

AND MEMBERS OF THE GENERAL ASSEMBLY

SENATE MEMBERS
/s/Senator Edward E. Saleeby
/s/Senator John C. Land, III
/s/Senator Glenn F. McConnell
/s/Senator C. Tyrone Courtney
/s/Senator Luke A. Rankin

HOUSE MEMBERS
/s/Representative James J. Bailey
/s/Representative Roland S. Corning
/s/Representative Joseph T. McElveen, Jr.
/s/Representative Richard M. Quinn, Jr.
/s/Representative John L. Scott

GOVERNOR'S APPOINTEES
/s/Mr. Charles M. Potok
/s/Dr. S. Travis Pritchett
/s/Mr. Ronald D. Scheetz
/s/Mr. Frank S. Smith, Jr.
/s/Mr. Roland C. Young

EX-OFFICIO
/s/Commissioner John G. Richards

The Joint Insurance Study Committee was created by Act 37, 1989, which amended Act 612, 1971 and Act 1161, 1974, to make a continuous study and investigation of all facets of the insurance industry and related laws including, but not limited to, the study of revisions to this state's insurance laws, and to the review of medical, automobile and property insurance premium rates so as to recommend appropriate statutory or regulatory controls. This study committee combined the Joint Legislative Automobile Liability Insurance Study Committee and the Insurance Law Study Committee and provides for its members, powers, duties, staff and expenses to be similar to that of the aforementioned study committees.

1993 COMMITTEE LEGISLATION ENACTED

NAIC RECOMMENDATIONS FOR ACCREDITATION:

In 1988, the National Association of Insurance Commissioners began work on developing minimum standards for effective solvency regulation to ensure that all states had the essential statutes, regulations and regulatory resources necessary to police the insurance industry. In 1989, the NAIC formally adopted these financial regulatory standards and in 1990, instituted a certification program where each state's compliance with the standards was evaluated by an independent review team. In 1991, South Carolina became the third state in the nation to become accredited by the NAIC. To further the security of solvency, the NAIC continues to require states to adopt model legislation. These recommendations are brought before the study committee by the South Carolina Insurance Department annually.

MULTIPLE EMPLOYER WELFARE ARRANGEMENT (MEWA), S.420, ACT 50 OF 1993

This bill requires agents, brokers, third party administrators and insurers which transact business for any multiple employer self-insured health plan, to notify the Commissioner that the plan is operating or proposing to operate in this State. The goal of this bill is to identify, early on, the existence of these self-insured multiple employer plans to ensure compliance with South Carolina law and to avoid the problems associated with multiple employer self-insured health plans which become insolvent, leaving South Carolinians with unpaid health claims.

AMENDMENTS TO THE SOUTH CAROLINA HOLDING COMPANY ACT, S.421, ACT 70 OF 1993.

This legislation contains amendments, technical in nature, and corrected statutory references contained in the insurance investment code. It establishes standards to be applied in considering whether to approve the acquisition of a domestic insurer by a foreign controlling producer. These standards would be applied in circumstances in which the party seeking to acquire a South Carolina insurer is a foreign broker which controls or seeks to control a domestic insurer for which it placed gross written premium of 5% or more of the admitted assets of the insurer. The bill amends the act with respect to the reporting and payment of dividends and distributions. It adds one additional consideration in determining the adequacy of an insurer's surplus, and amends the act with respect to notice and approval of extraordinary dividends.

1993 COMMITTEE LEGISLATION WHICH
PASSED THE SENATE AND PENDING IN HOUSE

SMALL EMPLOYER HEALTH INSURANCE AVAILABILITY ACT, S.541

In 1991, the general Assembly enacted a package of reforms designed to improve the small group health insurance marketplace in South Carolina. These reforms included (1) a requirement that, if health insurance coverage is issued to a small group (25 employees or less), all members of the group would be covered; (2) rating restrictions on the amount a small group's premium can increase each year; (3) restrictions on cancellation of renewal of a small group; and (4) portability requirements. At the time these reforms were considered, they were described as the first small step toward overall reform for the small group health insurance market, with the next step requiring that the small groups be guaranteed access to health insurance. The Small Employer Health Insurance Availability Act builds on these earlier reforms and provides that next step, by requiring that small group health insurers guarantee issue two health insurance plans to small employers.

The Senate passed version of the bill provides:

1. That all small group insurers offer a "basic" and "standard" health insurance plan to any small employer that desires to purchase it;

2. That any small employer, that is, an employer with 50 or less employees, is entitled to be issued a "basic" or "standard" plan;

3. That small employer insurers must elect to participate in this guarantee issue environment as either a risk-assuming insurer or as a reinsuring insurer;

4. That those small employer insurers which participate as reinsuring insurers may reinsure individual risks or entire small groups written on either the basic or the standard plan in a program known as the South Carolina Small Employer Insurer Reinsurance Program;

5. That the benefit levels for the basic and standard plans be developed and recommended by the Governor's Committee on Basic Health Services; and

6. That its effectiveness be reviewed and reported to the Commissioner at least every three years.

During the interim, Governor Campbell appointed an Ad Hoc Group, which was composed of representatives from most every interested organization to formulate amendments to S.541 which, in turn, would strengthen the original bill. The Ad Hoc Committee proposed three basic changes:

1. Health insurers in the small group market can no longer refuse to issue a standard policy to any small group. The basic policy will not be offered as the Committee discovered that no one was buying it in other states where two policies were offered. This guarantees availability of health insurance coverage to any small group wanting to purchase it, regardless of their health risk.

2. Small groups can join together in large pools to negotiate directly with health insurers. This will allow small groups to form large purchasing pools, and give them the flexibility to gain the competitive advantages of large groups.

3. Claim experience, health status, duration of coverage, and industry are eliminated as rating factors. Limits are placed on the remaining rating factors so that the range of the possible highest and lowest premiums for a given benefit plan in a class of business will be no more than 5.1. These rating reforms will spread losses due to high cost persons across a large number of insured persons, give small employers much more stability in annual premium changes, and encourage insurers to compete based on efficiency and ability to manage costs instead of refusing to insure people in need of health care.

The amended legislation is presently on the House calendar.

WORKERS' COMPENSATION OMNIBUS BILL, S.540

This massive piece of legislation epitomized the efforts of a broad-based coalition including the Workers' Compensation Task Force, representing the State's leading employers, the AFL-CIO, the South Carolina Chamber of Commerce, the Carolina Alliance for Fair Employment, the National Federation of Independent Businesses, the South Carolina Trial Lawyers Association, the South Carolina Self-Insurers Association, the South Carolina Hospital Association, The Governor's Advisory Committee for Improvements of the Workers' Compensation Laws, the South Carolina Homebuilders Association, the Carolinas Branch Associated General Contractors, the South Carolina Merchants Self-Insurance Trust Fund, the South Carolina Automobile Dealers Self-Insurance Trust Fund, and the South Carolina Workers' Compensation Commission.

Through compromise and consensus-building, the proposed legislation intended to bring about needed change and improvement to workers' compensation programs in South Carolina. If enacted, the legislation would assure a greater equity within the system by closing the "opt out" loophole and providing for consistent and comprehensive fraud investigation and prosecution, better cost-effectiveness by reducing overhead costs associated with claims reporting and administration, and a more user-friendly system by establishing standards for prompt payment and responsible action.

The Senate version of the bill encompassed thirteen proposals. These included the computation of average weekly wages. Current law uses the "previous 52 weeks" as the basis, while the bill uses the "previous four quarters" as reported on the Employer Contribution Reports. Its clarifies work-related stress by adding a clarifying provision which states that such stress unaccompanied by physical injury is not compensable if it occurs during ordinarily personnel actions (such as demotions or terminations), unless the action is taken in an extraordinary or unusual manner. It requires all employers engaged in construction to have proof of coverage. It repeals the right to reject workers' compensation coverage. Currently, there are only three states which allow employers to opt-out of the system; Texas, New Jersey (where all employees must agree to opt-out), and South Carolina. Up until 1992 this provision was hardly utilized in this state. Entrepreneurs from Texas who have been marketing the product, entered South Carolina and have attempted to provide coverage for employers at a lower rate, but not comparable to the benefits presently received under the current workers's compensation system. Before 1992, approximately 80 employers had opted-out of the system. In the fiscal 1992-93, 106 employers opted out, and as of December of 1993, a total of 496 employers in South Carolina had dropped out of the workers' compensation system. The legislation also increases the fine for failure to provide coverage, provides for exhaustion of all remedies prior to paying an Uninsured Employer's Fund claim, clarifies payments to be made by check, prohibits dunning letters and provides for timely payment of medical services, stipulates liability for structured settlements, establishes an Insurance Fraud Division of the Attorney General's Office as part of the Omnibus Insurance Fraud Act, amends the reporting requirements for accidents to allow for summary reporting and electronic data interchange, and allows the Commission to review previously award claims at the request of the employer when fraud is suspected.

The House amended eight sections of S.540.

Section 2 - Work-Related Stress: The House version requires that work-related stress be supported by clear and convincing psychiatric evidence that the predominant cause of injury was the extraordinary and unusual conditions of employment, excluding normal personnel actions (for example, disciplinary actions, work evaluations, job transfers, etc.)

Section 3 - "Opt Out": The House version requires that upon notice to the Commission indicating which option it will operate under outside the system, an employer may "opt out" of the system by purchasing insurance coverage meeting certain statutory requirements or by posting $500,000 surety bond or security with the Chief Insurance Commissioner.

Section 8 - Certain Notices Require Conspicuous Posting: The amendment to this section is technical to adjust for maintaining the "opt out" option and its notice requirements.

Section 9 - Prohibits Use of Certain Common Law Defenses: This amendment makes technical changes to the code provision previously amended by the Senate reflecting that the "opt out" option has not been repealed. The addition of comparative negligence to the list of common law defenses such employer cannot utilize is maintained.

Section 17 - "Start Payment" Provision - The House amendment incorporates a "start payment " provision that would only apply to those operating within the Workers' Compensation System and not those who decide to opt out. An employer may start temporary total disability payments immediately when an employee is out of work eight consecutive days and may continue for up to 120 days without waiver of any grounds the employer may have for denying the claim discovered in a good faith investigation, provides when payments may be terminated or suspended immediately by an employer and that an employee can request a hearing to have temporary compensation reinstituted, and provides a penalty for noncompliance of carriers or employers.

Section 19 - Omnibus Insurance Fraud and Reporting Immunity Act - The House version creates an 'Insurance Fraud Division" within the Attorney General's Office to prosecute insurance fraud, to refer matters for investigation to SLED; and to collect fines. The division and the investigative functions of SLED of alleged violations are funded annually by no less than $200,000 from general revenues derived from insurance premium taxes and other fines assessed pursuant to this fraud act., replaces the definition of "insurance fraud" by the definition for "false statement and misrepresentation", provides both a criminal and civil penalty for any person who makes a false statement or misrepresentation in connection with an insurance transaction, or any person knowingly aiding and abetting such action. The civil fining provision is modeled after that of the New Jersey Insurance Fraud Bureau, which has had great success in this area and such ability is considered one of its strengths. It also requires annual reports by the Insurance Fraud Division Director to the General Assembly regarding the status of allegations or reports received, including actions taken.

Section 21 - Repealed Provisions for Consistency within Bill - The House version amends the original bill to adjust for maintaining the "opt out" option so as to only repeal the section allowing an employer to waive his exemption to the workers' compensation act upon the filing of written notice of his desire to be subject to the provision of Title 42.

Section 22 - Effective Date - The bill continues to take effect upon approval of the Governor; however, the House version adds that employers who have opted out prior to this act have six months to comply to its provisions, including those rejecters who have procured another form of insurance.

The House added sections to S.540.

Section 41-1-80 - The Anti-Retaliation Statute extends existing protection to employees who have filed claims under an alternative insurance plan maintained by the employer, and to employees bringing action against the employer opting out with security filed with the Chief Insurance Commission. It also changes "intoxication" which is an existing retaliatory discharge defense available to an employer, to "under the influence of intoxicating alcohol or drugs".

Section 38-55-170 - Corresponding Penalty Changes in Existing False Claim Statute - The House version amends current law which prohibits the filing of a false insurance claim so that the penalties of that statute are the same as those provided by the act in Section 19.

The House version also adds a section which allows an employer applying to self-insure to submit the sworn statement or affidavit of an independent auditor (CPA) verifying his financial condition according to the financial ratios or guidelines established by the Commissioner regulation in lieu of submitting audited financial statements.

The amended version of S.540 is on the contested House calendar.

1994 PROPOSED COMMITTEE LEGISLATION
RECOVERY OF PREMIUMS OWED, S.969, H.4491

This legislation, requested by the Independent Insurance Agents of South Carolina, amends Section 38-27-520 (Recovery of Premiums Owed) in the company liquidation provisions so that agents would not be responsible for payment of unpaid, unearned, uncollected premium in the case of an insurance company liquidation. There is concern among the agents and their association that the NAIC Rehabilitation and Liquidation model made agents liable to liquidators for unearned, uncollected premium in the event of a company insolvency. The South Carolina General Assembly adopted the basic provisions of the NAIC model. In July of 1989, IIAA and the Independent Insurance Agents of Missouri won a Federal lawsuit on this issue; the Iowa National case. The court order declared that a liquidator cannot demand unearned, uncollected premiums from an agent because it violates the United States Constitution. Several states (Connecticut, Florida, Iowa and South Dakota) have amended the NAIC model as amended in this bill, without adversely impacting the NAIC insolvency certification process, according to IIAA. This was run by the Chief Insurance Commissioner and he found no problems with this amendment to the code.

SOUTH CAROLINA PROPERTY AND CASUALTY GUARANTY ASSOCIATION - PLACE OF VENUE FOR LAWSUITS - S.970, H.4496

This legislation, proposed by the South Carolina Property and Casualty Insurance Guaranty Association, deals with legal expenses caused when suits against the Association are filed in states other than South Carolina. The Association recommended that the code be amended to provide that, with respect to the power to sue or be sued, any action brought directly against the Association must be brought against the Association in South Carolina as a condition precedent to recovery directly against the Association.

UNINCORPORATED MEMBER CREDIT, S.971, H.4495

This legislation was specifically intended to amend Lloyd's of London's provision in South Carolina credit for reinsurance law. It will enable the Lloyd's market to continue to be fully available to South Carolina domestic insurers as the leading international market for reinsurance, including, but not limited to catastrophe reinsurance. It is important to the members of the South Carolina Coastal Insurance Pool as Lloyd's is the world's leading market for catastrophe reinsurance against such perils as windstorm and earthquake.

The legislation also amends the law to enable Lloyd's to admit corporate names. Lloyd's is not an insurance company, but a marketplace where approximately 20,000 natural persons called "Names" trade each for their own account and not one for another. In the past only natural persons have been permitted to become Names. Corporate Names will be admitted and trade alongside natural Names. This amendment will be a benefit to South Carolina preserving Lloyd's status in South Carolina as an accredited reinsurer. If not adopted Lloyd's status in South Carolina could be jeopardized. If Lloyd's loses its trading privileges as an accredited reinsurer, domestic insurers that seek to cede reinsurance to Lloyd's will be inhibited from doing so, and in turn there will likely be an additional cost to the more than thirty South Carolina domestic insurers to obtain reinsurance from the Lloyd's market. Domestics will suffer because most of their major competitors are licensed in South Carolina, but domiciled in other states. This law has been enacted thus far in California, Louisiana, Nevada, New Jersey, Pennsylvania, Texas and Washington, D.C.

DEFINITION OF "AUTOMOBILE INSURANCE" - S.972, H.4497

This amendment to the code codifies the interpretation placed on the current Statute by the South Carolina Department of Insurance. This codification is needed to remove any remaining ambiguity and to give general notice to the public of this Statute's meaning. The practical impact of the Insurance Department's interpretation, which would be codified in this legislation, is that commercial businesses are not legally required to purchase basic limits uninsured motorist coverage fore their "employers nonownership liability" (ENOL) policies or for their "hired car" policies and that the mandatory offer of underinsured motorist coverage and "excess" uninsured coverage is not applicable to ENOL and hired car policies. If this legislation is enact, "named" nonowner policies" will continue to be subject to the requirement to carry basic uninsured motorist coverage and continue to be subject to the required offer of underinsured and "excess uninsured" coverage.

DEFINITION OF "OCEAN MARINE INSURANCE" - S.973, H.4498

The amendment which defines "Ocean Marine Insurance", proposed by the South Carolina Property and Casualty Guaranty Association, would allow the Association to effectively handle ocean marine claims as they arise with any liquidation.

CUT-OFF DATE FOR FILING OF CLAIMS AGAINST ANY LIQUIDATION AFFECTING THE SOUTH CAROLINA PROPERTY AND CASUALTY GUARANTY ASSOCIATION - S.974, H.4494

The legislation provides a definite cut-off of eighteen months after the declaration of insolvency for filing of all claims against any liquidation that affects the South Carolina Guaranty Fund and thereby will help streamline the claim handling for the Association.

MATERIAL TRANSACTIONS MODEL ACT - S.975, H.4492

This Act, an Insurance Department recommendation, is part of compliance of the latest accreditation standards by the NAIC. The Act strengthens the Commissioner's regulatory authority by requiring domestic insurers to notify the Commissioner of material acquisitions or dispositions of assets or material nonrenewals, cancellations or revisions of ceded reinsurance agreements. It strengthens the control over domestics as they deal with consumers.

CREDIT LIFE INSURANCE - S.976, H.4493

This legislation, another recommendation of the South Carolina Insurance Department in conjunction with the South Carolina Department of Consumer Affairs, increases the minimum charge of $2.00 to $3.00, and decreases the rate charged for individual credit life from $.75 to $.65. South Carolina's current credit life insurance premium of $.75 is fourth highest in the nation. Our sister state, Georgia's premium is $.45, and our other sister state North Carolina lowers theirs $.05 every year. In 1993 their premium was $.65, and this will be lowered in 1994 to $.60.

COMMITTEE AND STAFF ACTIVITIES:

Over the years, South Carolina has played an active part in the National Conference of Insurance Legislators (NCOIL). South Carolina has two legislators who have served as President of NCOIL. Currently, two committee members, Senator Ed Saleeby and Senator Glenn McConnell, serve on the Executive Committee of this organization.

NCOIL is a national organization of state legislators, working toward a better understanding of insurance, state insurance regulation and legislation, and against federal intervention in to the rights of the states to regulate and legislate insurance matters. It provides its members with education and informational services to stay abreast of trends and to anticipate new developments. NCOIL also helps legislators in understanding the insurance industry, its impact on constituents, and consumer pressures. The importance of NCOIL to its members is underscored by the fact that insurance is one of the largest private industries regulated by the states, and in any typical legislative year some 25,000 insurance-related bills will be introduced in state legislatures.

While attending NCOIL's June meeting in Washington, the Chief Insurance Commissioner and the committee's staff met individually with the South Carolina Delegation members to advise them of a bill which would be introduced in the Senate on catastrophic insurance. NCOIL's fear of company pull-out from states experiencing catastrophes, whether they be hurricane, flood, earthquake, etc. would be eliminated as a fund would be established, financed by the insurance industry to take care of these occurrences. It was felt that this was a case where federal intervention would solve this problem faster and more economically than state intervention.

GOVERNOR'S HEALTH INSURANCE REFORM COMMITTEE

Because the national debate on health reform has accelerated so rapidly, the nation's traditional approach of providing health insurance through the workplace is undergoing considerable strain. Health insurance is growing inaccessible and unaffordable, particularly to small businesses where most of the job growth in the economy is. Individuals are having difficulty obtaining and affording health insurance and businesses are finding that to provide heath insurance is extremely costly.

Governor Campbell, committed at both the national and state levels to moving towards universal access to basic health care at an affordable cost, organized the Governor's Health Insurance Reform Committee. The Joint Insurance Study Committee's staff was appointed to this committee.

The committee was asked by the Governor to operate under the following assumptions: reform will occur within a managed care environment, and there will be a role for private insurance. He charged the committee to follow the issues concerning health insurance that will make health insurance more available and affordable, require appropriate risk sharing and fairness, and assure administrative efficiency and cost effectiveness.

This project undertook extensive literature review. The research staff also provided an overview of reform activities in other states. The Governor's Committee issued a report to the Governor in August of 1993 based on the Governor's charges.

OTHER ACTIVITIES:

Besides the activities stated above, the Committee's staff continues to work closely with the Department of Insurance, attending the monthly Insurance Commissions' meetings. The staff also attends the quarterly meetings of the South Carolina Health Insurance Pool, serving as a conduit between the Pool's Board and the Legislature. Staff has made numerous speeches to various organizations and associations on committee and legislative activities. Attendance at the National Association of Insurance Commissioners' meetings has been invaluable because of the opportunity it presents to the staff in order to follow the progress of insurance related legislation on the federal level and in other states, and to pass on to committee members and other legislators, information on the progress of model acts which the NAIC generates, and on which many of South Carolina's insurance laws are based.

Staff is also available and called upon throughout the session and interim to answer any constituent concerns for members of the General Assembly on all insurance related matters.

On motion of Senator SALEEBY, with unanimous consent, ordered printed in the Journal of Monday, April 4, 1994.

ORDERED ENROLLED FOR RATIFICATION

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

H. 4952 -- Reps. R. Smith, Rudnick, Stone, Huff and Sharpe: A JOINT RESOLUTION TO PROVIDE THAT THE FIVE SCHOOL DAYS MISSED BY THE STUDENTS OF L-B-C MIDDLE SCHOOL IN AIKEN COUNTY DURING SCHOOL YEAR 1993-94 WHEN THE SCHOOL WAS CLOSED DUE TO FIRE ARE EXEMPTED FROM THE MAKE-UP REQUIREMENT OF THE DEFINED MINIMUM PLAN THAT FULL SCHOOL DAYS MISSED DUE TO EXTREME WEATHER OR OTHER CIRCUMSTANCES BE MADE UP.

(By prior motion of Senator MOORE)

HOUSE BILL RETURNED

The following House Bill was read the third time and ordered returned to the House with amendments:

H. 4458 -- Reps. Boan, Hodges, Clyborne and Kirsh: A BILL TO AMEND SECTION 1-30-65, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEPARTMENT OF LABOR, LICENSING, AND REGULATION, SO AS TO INCLUDE THE SOUTH CAROLINA REAL ESTATE COMMISSION WITHIN THE LIST OF PROFESSIONAL AND OCCUPATIONAL LICENSING BOARDS INCORPORATED IN AND ADMINISTERED AS PART OF THE DEPARTMENT AND TO CORRECT CERTAIN REFERENCES TO OTHER PROFESSIONAL AND OCCUPATIONAL LICENSING BOARDS UNDER THE DEPARTMENT; TO AMEND SECTIONS 40-57-20, AS AMENDED, 40-57-50, 40-57-80, 40-57-90, AS AMENDED, 40-57-100, AS AMENDED, 40-57-110, AS AMENDED, 40-57-115, 40-57-120, 40-57-140, AS AMENDED, 40-57-155, 40-57-160, AS AMENDED, 40-57-170, AS AMENDED, 40-57-180, 40-57-190, 40-57-200, 40-57-210, AND 40-57-220, AS AMENDED, RELATING TO REAL ESTATE BROKERS, COUNSELLORS, SALESMEN, APPRAISERS, AUCTIONEERS, AND PROPERTY MANAGERS, AND SECTIONS 40-60-20, AS AMENDED, 40-60-50, AS AMENDED, 40-60-60, AS AMENDED, 40-60-100, AS AMENDED, 40-60-120, AS AMENDED, 40-60-160, AS AMENDED, AND 40-60-170, AS AMENDED, RELATING TO THE SOUTH CAROLINA REAL ESTATE APPRAISER REGISTRATION, LICENSE, AND CERTIFICATION ACT, SO AS TO, AMONG OTHER THINGS, ABOLISH THE OFFICE OF REAL ESTATE COMMISSIONER AND DEVOLVE THE POWERS, DUTIES, AND RESPONSIBILITIES OF THAT OFFICE UPON THE REAL ESTATE COMMISSION OR ITS CHAIRMAN OR UPON THE REAL ESTATE APPRAISERS BOARD OR THE BOARD'S CHAIRMAN, DELETE REFERENCES TO THE COMMISSIONER, DELETE CERTAIN OTHER LANGUAGE AND PROVISIONS, PROVIDE THAT THE DIRECTOR OF THE DEPARTMENT OF LABOR, LICENSING, AND REGULATION SHALL APPOINT ANY EMPLOYEES AS MAY BE NECESSARY TO CARRY OUT THE WORK OF THE COMMISSION, CHANGE THE PROVISIONS OF LAW DEALING WITH APPEALS FROM THE DECISION OF THE COMMISSION IN REFUSING, SUSPENDING, OR REVOKING ANY LICENSE OR IN ISSUING REPRIMANDS UNDER CHAPTER 57, TITLE 40, AND DELETE THE REQUIREMENT THAT THE REAL ESTATE COMMISSION SUPPLY STAFF SUPPORT FOR THE REAL ESTATE APPRAISERS BOARD; AND TO AMEND SECTION 40-73-15, RELATING TO PROFESSIONS AND OCCUPATIONS ADMINISTERED BY THE DEPARTMENT OF LABOR, LICENSING, AND REGULATION, SO AS TO CLARIFY REFERENCES TO CERTAIN OF THESE PROFESSIONS AND OCCUPATIONS, INCLUDING REAL ESTATE BROKERS, COUNSELLORS, SALESMEN, APPRAISERS, AUCTIONEERS, AND PROPERTY MANAGERS.

(By prior motion of Senator J. VERNE SMITH, with unanimous consent)

THIRD READING BILLS

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

S. 861 -- Senator Greg Smith: A BILL TO AMEND SECTION 38-75-310(5), CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO WINDSTORM AND HAIL INSURANCE, SO AS TO INCLUDE THE MURRELLS INLET PORTION OF GEORGETOWN COUNTY IN THE DEFINITION OF COASTAL AREA.

(By prior motion of Senator GREG SMITH, with unanimous consent)

S. 967 -- Senators Ryberg and Leventis: A BILL TO AMEND SECTION 12-51-96, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO REDEMPTION OF MOBILE AND MODULAR HOMES AFTER DELINQUENT TAX SALES, SO AS TO PROVIDE FOR A MAXIMUM AMOUNT THAT MAY BE CHARGED AS RENT WHEN AN OWNER REDEEMS A MOBILE OR MODULAR HOME.

(By prior motion of Senator LEATHERMAN, with unanimous consent)

AMENDED, READ THE SECOND TIME

H. 4967 -- Reps. Carnell, McAbee and Klauber: A BILL TO AMEND ACT 546 OF 1982, RELATING IN PART TO THE MANNER OF ELECTION OF MEMBERS OF THE BOARD OF TRUSTEES OF GREENWOOD SCHOOL DISTRICT 50, SO AS TO FURTHER PROVIDE FOR THE MANNER IN WHICH THESE TRUSTEES SHALL BE ELECTED INCLUDING THE ESTABLISHMENT OF NINE SINGLE-MEMBER ELECTION DISTRICTS FROM WHICH TRUSTEES SHALL BE ELECTED BEGINNING IN 1994, AND TO PROVIDE THAT BEGINNING IN 1994, ELECTIONS FOR THESE TRUSTEES SHALL BE HELD AT THE SAME TIME AS THE GENERAL ELECTION.

The Senate proceeded to a consideration of the Bill. The question being the second reading of the Bill.

Senator DRUMMOND proposed the following amendment (GJK\20716SD.94), which was adopted:

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

/SECTION 1. (A) Notwithstanding any other provision of law, the Board of Trustees of Greenwood School District 50 consists of nine members who must be elected in nonpartisan elections beginning in 1994 to be held on the first Tuesday following the first Monday of November in the year specified or required in the manner hereinafter provided. Based on the implementation schedule provided in subsection (B), one member of the board must be a resident of and elected from each of the nine defined single-member election districts established in Section 2 of this act. Except for initial terms otherwise provided in subsection (B), members of the board shall be elected for four-year terms and until their successors are elected and qualify. In the event of a vacancy on the board occurring for any reason other than expiration of a term, the Greenwood County Election Commission shall call a special election to fill the unexpired term, so long as the vacancy does not occur within ten months of a regular trustee election. In this case, the vacancy must be filled for the unexpired term or for a full term as appropriate at the next regular election.

Each member of the board must be elected by the qualified electors of the respective district from which the candidate seeks election. All persons desiring to qualify as a candidate shall file written notice of candidacy with the county election commission on forms furnished by the commission. This notice of candidacy must be a sworn statement and must include the candidate's name, age, residence address, voting precinct, period of residence in the election district from which election is sought, and other information as the commission requires. The filing period opens on the first Tuesday in September at noon to run for two weeks.

The county election commission shall conduct and supervise the elections for members of the board in the manner governed by the election laws of this State, mutatis mutandis. The county election commission shall prepare the necessary ballots, appoint managers for the voting precincts, and do all things necessary to carry out the elections, including the counting of ballots and declaring the results. The commission shall publish notices of the time, polling places, and purpose of the election in a newspaper of general circulation within the district once a week for at least two successive weeks before the election. The results of the elections must be determined by the nonpartisan plurality method as contained in Section 5-15-61 of the 1976 Code. The costs of the elections shall be borne by the school district.

The members of the board elected in these nonpartisan elections shall take office one week following certification of their election as provided in Section 59-19-315 of the 1976 Code.

(B) (1) In 1994, members from Districts 1, 2, and 4 must be elected and the three current members of the board whose terms are scheduled to expire on June 30, 1994, shall continue to serve until the members elected in 1994 from Districts 1, 2, and 4 qualify and take office, at which time the terms of these three current members shall expire. All other current members of the board shall continue to serve in the manner specified in this subsection. The initial terms of members elected in 1994 from Districts 2 and 4 shall be two years each, and the initial term of the member elected in 1994 from District 1 shall be four years.

(2) In 1995, members from Districts 3, 5, and 6 must be elected and the three current members of the board whose terms are scheduled to expire on June 30, 1996, shall serve until the members elected in 1995 from Districts 3, 5, and 6 qualify and take office, at which time the terms of these three current members shall expire. The initial terms of the members elected in 1995 from Districts 3, 5, and 6 shall be four years each.

(3) In 1996, members from Districts 7, 8, and 9 must be elected and the three current members of the board whose terms expire on June 30, 1997, shall serve until the members elected in 1996 from Districts 7, 8, and 9 qualify and take office, at which time the terms of these three current members shall expire. The initial terms of members elected in 1996 from Districts 8 and 9 shall be two years each, and the initial term of the member elected in 1996 from District 7 shall be four years.

SECTION 2. The nine defined single-member election districts from which members of the board of trustees of Greenwood School District 50 must be elected are as follows:

DISTRICT 1 POPULATION
GREENWOOD NO 1

Tract 9705 Blocks:
410, 411, 412, 516, 517, 601, 602, 603, 604, 605, 612, 613, 614 772

Tract 9706 Blocks:
410A, 411A, 419, 420, 421, 422, 423, 424, 425, 426, 427, 428, 429, 502A, 503, 504, 505, 506, 507, 508, 509, 510, 511, 512, 513, 514, 515, 516A, 517A, 518, 519, 520A 994

Tract 9708 Blocks:

101 12
GREENWOOD NO 2

Tract 9705 Blocks:

211, 219, 220, 221, 222, 223, 301, 302, 303, 304, 305, 306, 307, 308, 401, 402, 403, 404, 405, 406, 407, 408, 409, 501, 502, 503, 504, 505, 506, 507, 508, 509, 510, 511, 512, 513, 514, 515, 520, 521, 522, 523, 524, 525, 526 2,424

Tract 9706 Blocks:

215A, 402, 403A, 404, 405, 406, 407, 408, 409 333
NEW MARKET

Tract 9706 Blocks:

401, 410B, 411B, 412, 502B, 516B, 517B, 520B, 521, 522, 523, 524, 525, 526, 527, 529, 532, 533, 534, 535, 536, 537, 538, 540, 541 956
DISTRICT TOTAL 5,491
PERCENT VARIATION -0.218
DISTRICT 2
EMERALD

Tract 9706 Blocks:

209, 210, 211, 212, 213, 214, 215B, 216, 217, 302, 303, 304, 309 592

Tract 9707 Blocks:

112, 117, 118, 119, 120, 121 440

FAIRGROUND

Tract 9702 Blocks:

237B, 239, 615B 3

Tract 9705 Blocks:

101, 102B, 103, 104, 105B, 106, 107, 108, 109B, 109C, 110B, 124, 128B, 129B 311

Tract 9706 Blocks:

137, 138, 139, 140, 141, 142, 143, 144, 145, 146, 147, 148, 201, 202, 203, 204, 205, 206, 207, 208 944

Tract 9707 Blocks:

113 1
GREENWOOD NO 2

Tract 9705 Blocks:

201, 202, 203, 204, 205, 206, 207, 208, 209, 210, 212, 213, 214, 215, 216, 217, 218 704

Tract 9706 Blocks:

218 0
GREENWOOD NO 3

Tract 9703 Blocks:

619, 620, 621, 622, 701, 702, 703, 704, 705, 706, 707, 708, 709, 710, 711, 712, 713, 714, 715, 716, 717, 718, 719, 720 920

Tract 9705 Blocks:

114, 116, 117, 118, 119, 120, 121, 123 202
GREENWOOD NO 4

Tract 9702 Blocks:

237A, 605, 606, 607, 614, 615A 545

Tract 9705 Blocks:

102A, 105A, 109A, 110A, 111, 112, 113, 122, 125, 126, 127, 128A, 129A, 130, 131, 132, 133, 134 887
DISTRICT TOTAL 5,549
PERCENT VARIATION 0.836
DISTRICT 3
COKESBURY 1,442
HARRIS

Tract 9703 Blocks:

201, 202, 203, 204, 205, 206, 207, 208, 209, 210, 211, 212, 213, 214, 215, 216, 217, 218, 219, 220, 221, 222, 223, 224, 225, 226, 227, 228, 229, 230, 231, 232, 233, 234, 237, 241, 242, 243, 244, 245, 246, 249, 250, 251, 401, 402, 403, 404, 405, 406, 407, 408, 409, 410, 411, 412, 413, 414, 415, 416, 519 1,744
HODGES 1,695
SHOALS JUNCTION 48
STONEY POINT 600
DISTRICT TOTAL 5,529
PERCENT VARIATION 0.472
DISTRICT 4
GLENDALE

Tract 9704 Blocks:

460D, 460E, 461A, 461B, 536C, 539A, 539B, 714, 715, 716, 717, 718, 719 162
GREENWOOD NO 1

Tract 9704 Blocks:

201, 301 0

Tract 9705 Blocks:

413, 518, 519, 527, 528, 529, 530, 531, 532, 533, 534, 535, 536, 537, 538, 539, 540, 541, 606, 607, 608, 609, 610, 611, 615, 616, 617 967

Tract 9708 Blocks:

102, 103, 104, 105, 106, 107, 108, 109, 110, 111, 112, 113, 114, 115, 201, 202, 205, 206, 207, 208, 209, 210, 211, 301 1,137
GREENWOOD NO 5

Tract 9704 Blocks:

124, 131, 132, 133, 202, 203, 204, 205, 206, 207, 208, 209, 210, 211, 212, 213, 214, 215, 216, 217, 218, 219, 220, 221, 222, 223, 224, 225, 302, 303, 304, 305, 306, 307, 308, 309A, 309B, 310, 311, 312, 315, 316, 321, 322, 323, 324, 325, 326, 327, 328, 329, 330, 331, 332, 427, 428, 429, 430, 432, 433, 437, 438, 439, 440, 441, 442, 443, 444, 445, 446, 447, 448, 449, 450, 451, 452, 453, 454, 455, 456A, 457, 458, 459, 460A, 460B, 460C, 462, 465A, 466, 467, 468, 469, 470, 512A, 513, 533A, 533B, 535A, 536A, 538 1,735
GREENWOOD NO 6

Tract 9708 Blocks:

213, 214, 215, 216A, 316, 317, 501, 502, 505 251
LACO

Tract 9708 Blocks:

531A, 531B, 532, 533, 535, 619, 620, 621 348
VERDERY

Tract 9708 Blocks:

622, 623, 624, 625, 626, 627, 628, 629, 630, 631, 632, 633, 634, 635, 636, 637, 638, 639, 640, 641, 642, 643, 644, 645, 646, 647, 648, 649, 650, 651, 652, 653, 654, 655, 656, 657, 658, 659, 660, 661, 662, 663, 664, 665, 666, 667, 668, 669, 670, 671 671

Tract 9709 Blocks:

101, 102, 103, 104, 107, 108, 109, 110, 111 240
DISTRICT TOTAL 5,511
PERCENT VARIATION 0.145
DISTRICT 5
BRADLEY 238
CALLISON 328
CAMBRIDGE 11
EPWORTH 171
GREENWOOD NO 5

Tract 9704 Blocks:

313, 314, 317, 318, 319, 320 105
GREENWOOD NO 6

Tract 9708 Blocks:

116, 203, 204, 212, 216B, 217, 218, 219, 220, 221, 222, 223, 224, 225, 226A, 226B, 227A, 227B, 228, 302, 303, 304, 305, 306, 307, 308, 309, 310, 311, 312, 313A, 313B, 314A, 314B, 315, 318A, 318B, 318C, 319A, 319B, 319C, 320, 321, 322, 323, 324A, 324B, 325, 326, 327, 328, 329, 330, 401, 402, 403, 404, 405, 406, 407, 408, 409, 410, 411, 412, 413, 414, 503A, 503B, 503C, 504A, 504B, 504C, 506A, 506B, 506C, 507A, 507B, 508, 509, 510A, 510B, 510C, 510D, 511, 512, 513, 514, 515, 516, 517, 518, 519, 520A, 522A, 523, 524, 525, 527A, 527B, 528A 2,725
KIRKSEY'S 393
LACO

Tract 9708 Blocks:

526, 527C, 528B, 529, 530A, 530B, 534, 536, 537, 538, 539, 540, 602, 614, 615, 616, 617, 618, 672, 673, 674, 675, 676, 679, 680, 681, 682, 683, 684 366

Tract 9709 Blocks:

112, 113 14
OAK GROVE 165
PHOENIX 675
TROY 262
VERDERY

Tract 9709 Blocks:

105, 106 57
DISTRICT TOTAL 5,510
PERCENT VARIATION 0.127
DISTRICT 6
CORONACA 1,171
EMERALD

Tract 9706 Blocks:

301, 305, 306, 307, 308, 310, 311, 403B 658

Tract 9707 Blocks:

111, 114, 115, 116, 122, 123, 124, 125 310
FAIRGROUND

Tract 9702 Blocks:

130, 131, 139, 140, 141, 142, 143, 144, 145, 146, 206, 208, 209, 210, 211, 212, 213, 214, 215, 216, 217, 218B, 218C, 219, 220, 221, 222, 223, 224B, 225, 233, 234, 235, 236, 238 714

Tract 9706 Blocks:

135, 136, 149 11
LACO

Tract 9706 Blocks:

601, 602, 603, 604, 605, 606, 607, 608, 611, 612, 613, 614, 615, 616, 618 562

Tract 9707 Blocks:

669 11

Tract 9708 Blocks:

229, 231, 232, 233, 520B, 521, 522B, 522C, 530C, 541, 542, 601, 603, 604, 605, 606, 607, 608, 609, 610, 611, 612, 613, 677, 685, 686, 687, 688 1,076

Tract 9709 Blocks:

114 0

Tract 9710 Blocks:

109, 110, 111, 112, 113, 114A, 122, 123, 124, 125 271
NEW MARKET

Tract 9706 Blocks:

413, 414, 415, 416, 417, 418, 501, 528, 530, 531, 539 427

Tract 9707 Blocks:

126, 127 276

Tract 9708 Blocks:

230 0
NINETY SIX 8
DISTRICT TOTAL 5,495
PERCENT VARIATION -0.145
DISTRICT 7
GLENDALE

Tract 9703 Blocks:

247, 248, 252, 253, 254, 255, 256 400

Tract 9704 Blocks:

405B, 456B, 463, 464, 465B, 501B, 502, 503, 504, 505B, 507, 508, 509, 510, 511, 512B, 514, 515, 516, 517, 518, 519, 520, 521, 522, 523, 524, 525, 526, 527, 528, 529, 530, 531, 532, 533C, 534, 535B, 536B, 537, 601, 602, 603, 604, 605, 606,607, 608, 609, 610, 611, 701, 702, 703, 704, 705, 706, 707, 708, 709, 710, 711, 712, 713 3,075
GREENWOOD MILL 1,213
HARRIS

Tract 9703 Blocks:

235, 236, 238, 239, 240, 417, 418, 419, 420, 421, 422, 423, 424, 425, 426, 505B, 516B, 518B, 520B, 522, 536B 951

Tract 9704 Blocks:

401B, 402, 403B, 404 3
DISTRICT TOTAL 5,642
PERCENT VARIATION 2.526
DISTRICT 8
BLAKEDALE 3,091
GREENWOOD NO 3

Tract 9703 Blocks:

319A, 501A, 503, 504, 505A, 506A, 506B, 507, 508, 509, 510, 511, 512, 513, 514, 515, 516A, 517, 518A, 520A, 521, 523, 524, 525, 526, 527, 528, 529, 530, 531, 532, 533, 534, 535, 536A, 537, 538, 539, 601A, 602, 603, 604, 605, 606, 607, 608, 609, 610, 611, 612, 613, 614, 615, 616, 617, 618, 623, 624, 625, 626 2,190
DISTRICT TOTAL 5,281
PERCENT VARIATION -4.034
DISTRICT 9
FAIRGROUND

Tract 9702 Blocks:

205, 207, 226, 227, 228, 229, 230, 231, 232, 301, 302, 303, 304, 305, 306, 307, 308, 309B, 310, 311, 312, 401, 402, 403B, 403C, 404, 405, 406, 407, 408, 409, 410, 411, 412, 416C, 501B, 502B, 504B 2,589
GREENWOOD NO 4

Tract 9702 Blocks:

218A, 224A, 309A, 403A, 413, 414, 415, 416A, 416B, 417, 418, 419, 420, 501A, 502A, 503, 504A, 505, 506, 507, 508, 509, 510, 511, 512, 513, 514, 515, 516, 517, 518, 519, 520, 521, 522, 523, 524, 601, 602, 603, 604, 608, 609, 610, 611, 612, 613, 616, 617, 618, 619, 620, 621, 622 2,890

Tract 9705 Blocks:

115 37
DISTRICT TOTAL 5,516
PERCENT VARIATION 0.236

SECTION 3. The provisions of Act 546 of 1982 and Act 272 of 1987 no longer apply to elections of members of the board of trustees of Greenwood School District 50. The chairman and other officers of the board shall continue to be selected in the manner provided by law.

SECTION 4. This act takes effect upon approval by the Governor./

Renumber sections to conform.

Amend totals and title to conform.

There being no further amendments, the Bill was read the second time and ordered placed on the third reading Calendar.

ADJOURNMENT

At 11:46 A.M., on motion of Senator RYBERG, the Senate adjourned to meet tomorrow, April 5, 1994, at 12:00 Noon.

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