South Carolina General Assembly
113th Session, 1999-2000
Journal of the Senate

Wednesday, March 15, 2000

(Statewide 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 MOORE.

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

Beloved, hear the Psalmist in Psalm 8:11:

"O Lord our Lord, how excellent is Thy Name in all the earth!

Who hast set Thy glory above the heavens!"
Let us pray.

Eternal God our Father, we thank You for the beauty of the coming springtime.

The buds and blossoms, the fresh green leaves coming, the lush meadows, the gentle rains, the songs of birds sounding like they are happy, too, at the miracle of creation!

The sights and sounds of nature's symphony bear witness to the ancient chorus:

"How excellent is Your Name in all the earth."

Give us the spirit of nature's harmony that we may be instruments   in bringing harmony and understanding in our social, economic and political realm.

Empower us to sing Your praises by our words and deeds today.
Amen!

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

Doctor of the Day

Senator FAIR introduced Dr. Rutledge (Rut) Lawson of Greenville, S.C., Doctor of the Day.

Expression of Personal Interest

Senator DRUMMOND rose for an Expression of Personal Interest.

Expression of Personal Interest

Senator J. VERNE SMITH rose for an Expression of Personal Interest.

Expression of Personal Interest

Senator WILSON rose for an Expression of Personal Interest.

Expression of Personal Interest

Senator LEVENTIS rose for an Expression of Personal Interest.

OBJECTION

H. 4747 (Word version) -- Reps. Battle and G. Brown: A CONCURRENT RESOLUTION SALUTING THE LATE D. TRAVIS (DOC) TAYLOR OF BRITTONS NECK, MARION COUNTY, AND ALL OF THE TAYLOR FAMILY AND DESCENDANTS, ON THE OCCASION OF THE NAMING OF STATE ROAD 34-86 IN MARION COUNTY AS THE "D. TRAVIS (DOC) TAYLOR ROAD" IN RECOGNITION OF MR. TAYLOR'S NUMEROUS CONTRIBUTIONS TO HIS COMMUNITY.

Senator LAND asked unanimous consent to recall the Bill from the Committee on Transportation.

Senator McCONNELL objected.

HOUSE AMENDMENTS AMENDED
RETURNED TO THE HOUSE WITH AMENDMENTS

S. 924 (Word version) -- Senators Setzler, Moore, Mescher, Saleeby, Thomas, Giese, Courson, Short, Bauer, O'Dell, Alexander, Land, Washington, Elliott, Holland, Reese, Leatherman, Passailaigue, Hayes, McConnell, Leventis, Rankin and Glover: A JOINT RESOLUTION TO PROVIDE THAT UP TO THREE SCHOOL DAYS MISSED ON EITHER SEPTEMBER 14, 15, 16, OR 17, 1999, BY THE STUDENTS OF ANY SCHOOL OF ANY DISTRICT OF THIS STATE DURING SCHOOL YEAR 1999-2000 WHEN THE SCHOOL WAS CLOSED DUE TO HURRICANE FLOYD 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.

The House returned the Bill with amendments.

The Senate proceeded to a consideration of the Bill. The question being concurrence with the House amendments.

Senator SHORT proposed the following amendment (924R001.LHS), which was adopted:

Amend the joint resolution, as and if amended, page 1, by striking lines 41 and 42, and also page 2, by striking lines 1 and 2, and inserting the following:   /

designate three days in the school calendar that may be used for making up days missed in school year 2000-2001 due to extreme weather or other circumstances and only then may the district seek an exemption for additional   /

Renumber sections to conform.

Amend title to conform.

Senator SHORT explained the amendment.

The amendment was adopted.

There being no further amendments, the Bill was amended, read the third time and ordered returned to the House with amendments.

INTRODUCTION OF BILLS AND RESOLUTIONS

The following were introduced:

S. 1247 (Word version) -- Senator Saleeby: A CONCURRENT RESOLUTION TO FIX 12:00 NOON ON WEDNESDAY, MAY 24, 2000, AS THE TIME FOR ELECTING SUCCESSORS TO THE SOUTH CAROLINA CONSUMER AFFAIRS COMMISSION FOR SEATS 2 AND 4, WHOSE CURRENT TERMS EXPIRE AUGUST 31, 2000.
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The Concurrent Resolution was introduced and referred to the Committee on Invitations.

S. 1248 (Word version) -- Senator Bryan: A BILL TO AMEND SECTION 22-1-15, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PERSONS SERVING AS MAGISTRATES, SO AS TO PROVIDE THAT THE REQUIREMENTS OF A TWO-YEAR ASSOCIATE DEGREE AND FOUR-YEAR BACCALAUREATE DEGREE DO NOT APPLY TO A MAGISTRATE SERVING ON THE EFFECTIVE DATE OF THE REVISED REQUIREMENTS DURING THE MAGISTRATE'S TENURE IN OFFICE.
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Senator HOLLAND spoke on the Bill.

Read the first time and, on motion of Senator HOLLAND, with unanimous consent, ordered placed on the Calendar without reference.

S. 1249 (Word version) -- Senators J. Verne Smith and Russell: A BILL TO AMEND SECTION 4-23-230, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DUTIES AND RESPONSIBILITIES OF THE BOARD OF FIRE CONTROL OF THE PELHAM-BATESVILLE FIRE DISTRICT IN GREENVILLE AND SPARTANBURG COUNTIES, SO AS TO ADD ADDITIONAL POWERS TO THE BOARD.
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Read the first time and, on motion of Senator J. VERNE SMITH, with unanimous consent, ordered placed on the Local and Uncontested Calendar.

REPORT OF STANDING COMMITTEE

Senator MOORE from the Committee on Medical Affairs submitted a favorable report on:

S. 1208 (Word version) -- Senators O'Dell, J. Verne Smith, Land, Bryan, Patterson, Matthews, Waldrep, Anderson, Mescher, McConnell, Leventis, Peeler, Thomas, Drummond, Reese, Giese, Short, Branton, Hutto, Wilson, McGill, Elliott, Passailaigue, Ravenel, Martin, Richardson, Saleeby, Washington, Alexander, Moore, Setzler, Glover, Hayes and Bauer: A BILL TO AMEND TITLE 44, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO HEALTH BY ADDING CHAPTER 130, ENACTING THE SOUTH CAROLINA SENIORS' PRESCRIPTION DRUG PROGRAM ACT, SO AS TO ESTABLISH A PROGRAM ADMINISTERED BY THE OFFICE OF INSURANCE SERVICES OF THE STATE BUDGET AND CONTROL BOARD TO PROVIDE FINANCIAL ASSISTANCE IN PURCHASING PRESCRIPTION DRUGS TO RESIDENTS OF THIS STATE WHO HAVE ATTAINED AGE SIXTY-FIVE YEARS WHO ARE INELIGIBLE FOR MEDICAID OR ANY OTHER PRESCRIPTION DRUG BENEFITS AND WHOSE ANNUAL INCOME DOES NOT EXCEED TWO HUNDRED PERCENT OF THE FEDERAL POVERTY LEVEL, TO DEFINE "PRESCRIPTION DRUG" FOR PURPOSES OF THE PROGRAM, AND TO REQUIRE SEMIANNUAL REPORTS TO THE GOVERNOR AND THE GENERAL ASSEMBLY FOR THE EVALUATION OF THE PROGRAM.

Ordered for consideration tomorrow.

HOUSE CONCURRENCE

S. 1237 (Word version) -- Senators Wilson and Setzler: A CONCURRENT RESOLUTION TO COMMEND AND HONOR TED L. LIGHTLE, DIRECTOR OF THE OFFICE OF INFORMATION RESOURCES OF THE SOUTH CAROLINA BUDGET AND CONTROL BOARD SINCE ITS INCEPTION IN 1983, FOR HIS GUIDANCE, LEADERSHIP, AND HARD WORK IN PREPARING THE SOUTH CAROLINA STATE GOVERNMENT FOR THE NEW MILLENNIUM IN ITS TELECOMMUNICATIONS CAPABILITIES AND TO EXPRESS BEST WISHES AND GODSPEED TO HIM ON HIS RETIREMENT.

Returned with concurrence.

Received as information.

HOUSE CONCURRENCE

S. 1243 (Word version) -- Senator Holland: A CONCURRENT RESOLUTION TO HONOR AND COMMEND CINDI ROSS SCOPPE, ASSOCIATE EDITOR OF THE STATE NEWSPAPER, ON BEING AWARDED THE "2000 AMBROSE E. GONZALES AWARD", AND ON BEING CHOSEN THE "1999 SOUTH CAROLINA JOURNALIST OF THE YEAR" BY THE SOUTH CAROLINA PRESS ASSOCIATION.

Returned with concurrence.

Received as information.

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

THIRD READING BILL

The following Bill was read the third time and ordered sent to the House of Representatives:

S. 1169 (Word version) -- Senator Giese: A BILL TO AMEND CHAPTER 47, TITLE 40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PHYSICIANS, SURGEONS, AND OSTEOPATHS BY ADDING ARTICLE 7 SO AS TO PROVIDE FOR THE LICENSURE AND REGULATION OF PHYSICIAN ASSISTANTS, TO ESTABLISH A PHYSICIAN ASSISTANT ADVISORY COMMITTEE TO THE BOARD OF MEDICAL EXAMINERS, TO PROVIDE FOR THE POWERS AND DUTIES OF BOTH WITH REGARD TO PHYSICIAN ASSISTANTS, TO DEFINE THE ROLE AND RESPONSIBILITIES OF A SUPERVISORY PHYSICIAN FOR A PHYSICIAN ASSISTANT, TO PROVIDE GENERAL PRACTICE PARAMETERS, PROCEDURES FOR ESTABLISHING SCOPE OF PRACTICE GUIDELINES, AND ADDITIONAL LICENSURE REQUIREMENTS, TO FURTHER PROVIDE FOR THE REGULATION OF PHYSICIAN ASSISTANTS, AND TO PROVIDE PENALTIES FOR VIOLATIONS.

SECOND READING BILL
WITH NOTICE OF GENERAL AMENDMENTS

The following Bill, having been read the second time with notice of general amendments, was ordered placed on the third reading Calendar:

H. 3056 (Word version) -- Rep. Kirsh: A BILL TO AMEND SECTION 22-2-130, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PENALTY FOR FAILURE TO APPEAR FOR JURY SERVICE IN MAGISTRATE'S COURT AND THE FREQUENCY OF JURY SERVICE SO AS TO PROVIDE THAT A PERSON SHALL NOT SERVE ON A JURY MORE THAN ONCE EVERY THREE YEARS RATHER THAN ONCE EVERY THREE MONTHS.

Senator BRYAN asked unanimous consent to make a motion to take up the Bill for immediate consideration.

There was no objection.

AMENDED, READ THE SECOND TIME
WITH NOTICE OF GENERAL AMENDMENTS

S. 1242 (Word version) -- Agriculture and Natural Resources Committee: A BILL TO AMEND TITLE 46, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO AGRICULTURE BY ADDING CHAPTER 40 SO AS TO ESTABLISH THE "SOUTH CAROLINA GRAIN DEALERS GUARANTY FUND" INTO WHICH ASSESSMENTS ON FEED GRAINS OR OIL SEEDS MUST BE PAID FOR THE PURPOSE OF REIMBURSING GRAIN DEALERS FOR LOSSES INCURRED AS A RESULT OF THE BANKRUPTCY OF A SPECIFIED DEBTOR AND TO CONTINUE THE FUND THEREAFTER FOR THE BENEFIT OF GRAIN DEALERS WHO SUFFER LOSSES AGAINST OTHER DEBTORS FROM BANKRUPTCY, EMBEZZLEMENT, OR FRAUD, TO PROVIDE FOR THE MANNER IN WHICH AND PROCEDURES UNDER WHICH THESE REIMBURSEMENTS MUST BE PAID INCLUDING A PROVISION THAT THE INSURANCE RESERVE FUND IS AUTHORIZED TO LOAN MONIES TO PROVIDE FUNDING TO PAY CERTAIN CLAIMS; TO CHANGE THE NAME OF SOUTH CAROLINA DEALERS AND HANDLERS GUARANTY FUND TO THE SOUTH CAROLINA GRAIN PRODUCERS GUARANTY FUND; AND TO AMEND SECTION 46-41-200, RELATING TO THE SOUTH CAROLINA DEALERS AND HANDLERS GUARANTY FUND, SO AS TO CHANGE ITS NAME ACCORDINGLY.

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

Senators RICHARDSON, LEVENTIS and LAND proposed the following amendment (GJK\21131SD), which was adopted:

Amend the bill, as and if amended, in Section 46-40-90 of the 1976 Code, as contained in SECTION 1, by inserting after /occurred/ on line 36, page 5 / , and the term 'loss' does not include any monetary losses for grain delivered to the debtor more than one year before the date of loss /

Renumber sections to conform.

Amend title to conform.

Senator LEVENTIS explained the Bill.

Senator RICHARDSON explained the amendment.

The amendment was adopted.

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

COMMITTEE AMENDMENT ADOPTED
READ THE SECOND TIME
WITH NOTICE OF GENERAL AMENDMENTS

S. 571 (Word version) -- Senator Giese: A BILL TO AMEND SECTION 40-2-50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE USE OF TITLES, DESIGNATIONS, AND ABBREVIATIONS RELATIVE TO CERTIFIED PUBLIC ACCOUNTANTS, SO AS TO AUTHORIZE ENROLLED AGENTS OR ACTUARIES PRACTICING BEFORE THE INTERNAL REVENUE SERVICE TO USE THE ABBREVIATION "EA"; AND TO AMEND SECTIONS 40-2-40, 40-2-55, 40-2-190, AND 40-2-560 SO AS TO CONFORM CERTAIN REQUIREMENTS FOR REGISTRATION, CERTIFICATION, LICENSURE, CONTINGENT FEES, COMMISSIONS, AND FORMS OF PRACTICE FOR PUBLIC ACCOUNTANTS AND ACCOUNTING PRACTITIONERS TO THOSE REQUIREMENTS FOR CERTIFIED PUBLIC ACCOUNTANTS.

The Senate proceeded to a consideration of the Bill. The question being the adoption of the amendment proposed by the Committee on Labor, Commerce and Industry.

The Committee on Labor, Commerce and Industry proposed the following amendment (NBD\11790AC00), which was adopted:

Amend the bill, as and if amended, Section 40-2-50(E), page 1, line 33 by deleting /(E)/.

Amend the bill further, by deleting SECTION 3 in its entirety.

Renumber sections to conform.

Amend title to conform.

The amendment was adopted.

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

SECOND READING BILLS

The following Bills and Joint Resolutions, having been read the second time, were ordered placed on the third reading Calendar:

S. 952 (Word version) -- Senator Rankin: A BILL TO AMEND SECTION 40-3-250, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ARCHITECT LICENSE RENEWAL, SO AS TO REQUIRE COMPLETION OF CONTINUING EDUCATION REQUIREMENTS AS A CONDITION OF RENEWAL.

Senator ALEXANDER explained the Bill.

H. 4487 (Word version) -- Labor, Commerce and Industry Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION, OFFICE OF ELEVATOR AND AMUSEMENT RIDE SAFETY, RELATING TO NEW AND EXISTING FACILITIES, PLATFORM AND STAIRWAY CHAIR LIFTS, SUMP PUMPS OR DRAINS IN ELEVATOR PITS, DESIGNATED AS REGULATION DOCUMENT NUMBER 2464, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Senator McCONNELL explained the Joint Resolution.

H. 4614 (Word version) -- Medical, Military, Public and Municipal Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION, BOARD OF FUNERAL SERVICE, RELATING TO LICENSING PROVISIONS FOR EMBALMERS, FEES, CODE OF ETHICS, DESIGNATED AS REGULATION DOCUMENT NUMBER 2489, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Senator McCONNELL explained the Joint Resolution.

S. 1236 (Word version) -- Labor, Commerce and Industry Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION, CONTRACTORS' LICENSING BOARD, RELATING TO EXAMINATION REQUIREMENTS, CLASSIFICATIONS, MECHANICAL CONTRACTORS LICENSURE REQUIREMENTS, OWNER-PREPARED FINANCIAL STATEMENT, GENERAL CONTRACTORS-HIGHWAY CLASSIFICATION, DESIGNATED AS REGULATION DOCUMENT NUMBER 2488, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Senator McCONNELL explained the Joint Resolution.

H. 4017 (Word version) -- Ways and Means Committee: A BILL TO AMEND SECTION 59-123-60, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ORGANIZATION AND POWERS OF THE BOARD OF TRUSTEES OF THE MEDICAL UNIVERSITY OF SOUTH CAROLINA, AND THE BOARD OF TRUSTEES OF THE MEDICAL UNIVERSITY OF SOUTH CAROLINA CONSTITUTING THE MEDICAL UNIVERSITY HOSPITAL AUTHORITY FOR THE MANAGEMENT AND OPERATION OF THE MEDICAL UNIVERSITY HOSPITALS AND CLINICS, SO AS TO FURTHER PROVIDE FOR THE POWERS AND DUTIES OF THE BOARD ACTING AS THE MEDICAL UNIVERSITY HOSPITAL AUTHORITY AND FOR OTHER MATTERS PERTAINING TO THE MEDICAL UNIVERSITY OF SOUTH CAROLINA AND THE AUTHORITY INCLUDING FREEDOM OF INFORMATION ACT PROVISIONS AND THE EXPENDITURE, RECEIPT, AND TRANSFER OF CERTAIN FUNDS AND STATE APPROPRIATIONS; AND TO PROVIDE THAT THE MEDICAL UNIVERSITY HOSPITAL AUTHORITY SHALL BE THE SUCCESSOR TO THE MEDICAL UNIVERSITY OF SOUTH CAROLINA HOSPITAL; TO AMEND SECTION 8-11-260, AS AMENDED, RELATING TO EXEMPTIONS FROM STATE PERSONNEL POLICIES AND REQUIREMENTS, SO AS TO EXEMPT EMPLOYEES OF THE HOSPITALS AND CLINICS FROM BUDGET AND CONTROL BOARD PERSONNEL ADMINISTRATION; TO AMEND SECTION 8-17-370, AS AMENDED, RELATING TO EXEMPTIONS FROM STATE EMPLOYEE GRIEVANCE PROCEDURES, SO AS TO EXEMPT MEDICAL UNIVERSITY HOSPITAL AUTHORITY EMPLOYEES FROM THE STATE EMPLOYEE GRIEVANCE ACT; AND TO AMEND SECTION 11-35-710, AS AMENDED, RELATING TO EXEMPTIONS FROM THE STATE PROCUREMENT CODE, SO AS TO ADD AN EXEMPTION TO THE SOUTH CAROLINA CONSOLIDATED PROCUREMENT CODE FOR THE MEDICAL UNIVERSITY HOSPITAL AUTHORITY.

Senator PASSAILAIGUE explained the Bill.

H. 4017--Ordered to a Third Reading

On motion of Senator PASSAILAIGUE, with unanimous consent, H. 4017 was ordered to receive a third reading on Thursday, March 16, 2000.

COMMITTEE AMENDMENT AMENDED AND ADOPTED
READ THE SECOND TIME

S. 477 (Word version) -- Senator Giese: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 14 TO TITLE 41 SO AS TO ENACT THE PRESSURE EQUIPMENT SAFETY ACT OF 1999, TO PROVIDE THAT ALL BOILER AND PRESSURE VESSELS INSTALLED IN THIS STATE BE DESIGNED AND MANUFACTURED AND SEALED OR STAMPED UNDER A NATIONAL CODE AND REGISTERED WITH THE STATE FIRE MARSHAL ON REGISTRATION FORMS PROVIDED AND APPROVED BY THE DEPARTMENT OF LABOR, LICENSING AND REGULATION, AND PROVIDE A PENALTY FOR FAILURE TO REGISTER A BOILER OR PRESSURE VESSEL OR INSTALL ONE NOT IN COMPLIANCE WITH THIS CHAPTER.

The Senate proceeded to a consideration of the Bill. The question being the adoption of the amendment proposed by the Committee on Labor, Commerce and Industry.

Senator J. VERNE SMITH proposed the following amendment (NBD\11888AC00), which was adopted:

Amend the committee report, as and if amended, by deleting Section 41-14-20(4) and inserting:

/   (4)   'Public assembly location' means a:

(a)   school, day care center, nursing home, hospital, theater, house of worship, or sporting arena;

(b)   building open to the general public for trade or commerce and the boiler is:

(i)   not separated from any area to which the public is invited by construction having a fire resistance rating of no less than two hours;

(ii)   not housed in a separate building; or

(iii)   not in compliance with local building code requirements pertaining to boilers./

Renumber sections to conform.

Amend title to conform.

Senator GIESE explained the amendment.

The amendment was adopted.

The Committee on Labor, Commerce and Industry proposed the following amendment (NBD\11843AC00), which was adopted:

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

/SECTION 1.   Title 41 of the 1976 Code is amended by adding:

  "CHAPTER 14

Boiler Registration Act

Section 41-14-10.   This chapter may be cited as the 'Boiler Registration Act'.

Section 41-14-20.   For the purposes of this chapter:

(1)   'Altered' or 'alteration' means any change in any item described on the original manufacturer's data report which affects the pressure capability of the boiler. Nonphysical changes including, but not limited to, an increase in the maximum allowable working pressure, internal or external, or design temperature of a boiler is an alteration. A reduction of minimum temperature such that additional mechanical tests are required is an alteration.

(2)   'Boiler' means a closed vessel in which water or other liquid is heated, steam or vapor is generated, steam is superheated, or in which any combination of these functions is accomplished under pressure or vacuum, for use external to itself, by the direct application of energy from the combustion of fuels or from electricity, solar, or other energy. 'Boiler' includes the apparatus by which heat is generated and all controls and safety devices associated with the apparatus or the closed vessels. 'Boiler' includes fired units for heating or vaporizing liquids other than water where the units are separate from processing systems and are complete within themselves.

(3)   'Department' means the Department of Labor, Licensing and Regulation.

(4)   'Public assembly location' means a:

(a)   school, day care center, nursing home, hospital, theater, house of worship, or sporting arena;

(b)   building open to the general public for trade or commerce and the boiler is:

(i)   not separated from any area to which the public is invited by construction having a fire resistance rating of no less than two hours; or

(ii)   not housed in a separate building.

(5)   'Recognized national code' means the Boiler and Pressure Vessel Code of the American Society of Mechanical Engineers and other recognized national code determined by the department to provide equivalent protection to the public.

(6)   'Repair' means any work necessary to restore a boiler or pressure vessel to a safe and satisfactory operating condition provided there is no deviation from the original design.

Section 41-14-30.   This chapter does not apply to:

(1)   hot water supply boilers and hot water heaters of less than fifty gallons in volume or fifty thousand BTU's per hour heat input;

(2)   boilers operated entirely full of water or other liquid which is not materially more hazardous than water; however, the temperature of the vessel contents may not exceed one hundred forty degrees Fahrenheit, and the pressure may not exceed two hundred psig.

Section 41-14-40.   (A)   A boiler installed in this State after December 31, 2000, must be designed, manufactured, and sealed or stamped under a recognized national code. A record of this installation, including certificate of compliance with the recognized national code, must be filed with the Department of Labor, Licensing and Regulation on registration forms provided by the department.

(B)   A boiler installed in this State before January 1, 2001, must be registered with the department before July 1, 2001, using registration forms provided by the department.

Section 41-14-50.   (A)   All boilers registered in accordance with Section 41-14-40 must provide a copy of a certification of insurance which must contain evidence that the boiler was inspected and approved.

(B)   An application for registration of a boiler installed in a public assembly location must contain evidence that the boiler was installed by, and if altered or repaired, was altered or repaired by, a properly licensed general contractor with a boiler classification, a properly licensed mechanical contractor with a heating classification, or a person with certification to do such work from the American Society of Mechanical Engineers in the form of an appropriate stamp.

Section 41-14-60.   (A)   An owner or operator of a boiler installed in a public assembly location shall furnish the department with proof that he has insurance coverage from an acceptable insurer in an amount not less than five hundred thousand dollars for each occurrence against liability for injury to persons arising out of the use of the boiler and that the coverage is in effect. The owner or operator of the boiler installed in a public assembly location must maintain proof of complying insurance at all times and must produce evidence of compliance upon demand of the department or any local fire official. If after registration a boiler is or becomes uninsured for any reason, the owner immediately shall notify the department and cease to operate the boiler.

(B)   An acceptable insurer for the purposes of this section must be licensed by the Department of Insurance or approved by the Department of Insurance as a nonadmitted surplus lines carrier for risks located in this State.

(C)   Notwithstanding the provisions of subsection (A), the limitations on recovery established pursuant to the South Carolina Tort Claims Act apply to any recovery in an action or claim made against an owner or operator of a boiler who is covered under the Tort Claims Act.

Section 41-14-70.   A boiler registration must be renewed annually and must include a certification of insurance as required by Section 41-14-50(A). Registration renewal for a boiler installed in a public assembly location must also include a report that all alterations and repairs to the boiler have been conducted by a person qualified in accordance with Section 41-14-50(B) and proof of insurance coverage as required by Section 41-14-60.

Section 41-14-80.   The department may charge and collect an initial boiler registration fee of twenty-five dollars, a twenty-five dollar annual renewal fee for boilers installed in a public assembly location, and a ten dollar annual renewal fee for all other registered boilers.

Section 41-14-90.   An owner of a boiler may apply to the department for a permanent variance from a provision of this chapter or the recognized national code. Affected employees and the public must be given notice of the application and must be provided an opportunity to participate in a hearing before the director of the department or his designee. The department shall issue a variance if it is determined on the record, after inspection, where appropriate, and a hearing, that the proponent of the variance has demonstrated by a preponderance of the evidence that the conditions, practices, means, methods, operations, or materials proposed to be used will provide the public with conditions which are as safe as those which would prevail if the owner fully complied with the provisions of this chapter and the recognized national code. The variance shall prescribe the conditions the owner must maintain and utilize to the extent that they differ from the provision in question. An affected citizen may petition at any time after six months from the issuance of the variance for revocation or modification of the variance and must demonstrate that the public safety has been impaired by the variance. Upon such showing, the department shall revoke or modify the variance.

Section 41-14-100.     An owner, operator, or installing company who fails to register a boiler as required by this chapter may be assessed a civil penalty of not more than five hundred dollars for each unregistered boiler.

An owner or operator of a boiler installed in a public assembly location who fails to maintain insurance as required by Section 41-14-60 may be assessed a civil penalty of not more than one thousand dollars."

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

Renumber sections to conform.

Amend title to conform.

Senator BRANTON spoke on the Bill.

The committee amendment was adopted, as amended.

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

Statement by Senator MOORE

Under the provisions of Section 8-13-700, S. C. Code of Laws, I abstained from consideration of and voting on matters pertaining to S. 477.

COMMITTEE AMENDMENT ADOPTED
READ THE SECOND TIME

S. 560 (Word version) -- Senator Alexander: A BILL TO AMEND TITLE 40, CHAPTER 60, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE LICENSURE AND REGULATION OF REAL ESTATE APPRAISERS, SO AS TO CONFORM THIS CHAPTER TO THE STATUTORY ORGANIZATIONAL FRAMEWORK ESTABLISHED FOR PROFESSIONAL AND OCCUPATIONAL BOARDS UNDER THE ADMINISTRATION OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION AND TO FURTHER PROVIDE FOR THE LICENSURE AND REGULATION OF REAL ESTATE APPRAISERS.

The Senate proceeded to a consideration of the Bill. The question being the adoption of the amendment proposed by the Committee on Labor, Commerce and Industry.

The Committee on Labor, Commerce and Industry proposed the following amendment (NBD\11864AC00), which was adopted:

Amend the bill, as and if amended, on page 30 by striking lines 36 through line 2 of page 46 and inserting:

/Section 40-60-2.     This chapter may be cited as the 'South Carolina Real Estate Appraiser License and Certification Act'.

Section 40-60-5.     Unless otherwise provided for in this chapter, Article 1, Chapter 1 of Title 40 applies to real estate appraisers; however, if there is a conflict between this chapter and Article 1, Chapter 1 of Title 40, the provisions of this chapter control.

Section 40-60-10.   (A)There is created the South Carolina Real Estate Appraisers Board under the administration of the Department of Labor, Licensing and Regulation. The purpose of this board is to regulate the real estate appraisal industry so as to protect the public's interest regarding real estate appraisal transactions.

(B)   The South Carolina Real Estate Appraisers Board consists of seven members who must be residents of this State and appointed by the Governor with the advice and consent of the Senate with consideration given to appropriate geographic representation and to areas of appraisal expertise as follows:

(1)   One member must be a public member who may not be connected in any way with the practice of real estate appraisal, real estate brokerage, or mortgage lending.

(2)   One member must be a licensed real estate broker who is not a real estate appraiser.

(3)   One member must be actively engaged in mortgage lending, representing supervised financial institutions, who is not a real estate licensee or a real estate appraiser and who also must not be connected in any way with the brokerage of real estate, the appraisal of real estate, or the review of real estate appraisals.

(4)   Four members must be licensed or certified appraisers, actively engaged in real estate appraisal for at least three years, at least two of whom must be certified general appraisers.

In appointing real estate appraisers to the board, while not automatically excluding other appraisers, the Governor shall give preference to real estate appraisers whose primary source of income is derived from appraising real estate and not real estate brokerage.

(C)   Board members from the general public may be nominated by an individual, group, or association and must be appointed by the Governor in accordance with Section 40-1-45.

(D)   Members shall serve terms of three years and until their successors are appointed and qualified. In the event of a vacancy, the Governor shall appoint a person to fill the vacancy for the unexpired portion of the term.

(E)   The board annually shall elect from its total membership a chairman, vice-chairman, and other officers the board determines necessary. The board may adopt an official seal and shall adopt rules and procedures reasonably necessary for the performance of its duties and the governance of its operations and proceedings.

(F)   The board shall meet at least once each calendar quarter, or as often as is necessary, and remain in session as long as the chairman considers it necessary to give full consideration to the business before the board.

(G)   Members of the board are entitled to per diem, subsistence, and mileage as is provided by law for state boards, committees, and commissions.

Section 40-60-20.   As used in this chapter, unless the context requires otherwise:

(1)   'Analysis' means a study of real estate or real property other than one estimating value.

(2)   'Appraisal' or 'real estate appraisal' means an analysis, opinion, or conclusion prepared by an appraiser as to the nature, quality, value, or utility of, or specified interests in, identified real estate as of a specified date, for or in expectation of compensation, fee, or other consideration.

(3)   'Appraisal assignment' or 'valuation assignment' means an engagement for which an appraiser is employed or retained to act, or would be perceived by third parties or the public as acting, as a disinterested third party in rendering an unbiased analysis, opinion, or conclusion that estimates the value of real estate.

(4)   'Appraisal Foundation' means the Appraisal Foundation established on November 30, 1987, as a not-for-profit corporation under the laws of Illinois, containing the Appraisal Standards Board, Appraiser Qualifications Board, a board of trustees, and other advisory bodies.

(5)   'Appraisal report' means any communication, written or oral, of an appraisal. The testimony of an appraiser dealing with the appraiser's analyses, conclusions, or opinions concerning identified real estate or real property is considered to be an oral appraisal report.

(6)   'Appraisal subcommittee' means the designees of the heads of the federal financial institutions regulatory agencies established by the Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. Section 3301, et seq.), as amended, as well as the secretary of the Department of Housing and Urban Development, or his designee, under the Department of Housing and Urban Development Reform Act of 1989 (12 U.S.C. Section 1708(e)).

(7)   'Appraiser' means a person who holds a permit, license, or certification issued by the board that allows the person to appraise real property.

(8)   'Appraiser apprentice' means an individual authorized by permit to assist a licensed or certified appraiser in the performance of an appraisal if the apprentice is actively and personally supervised by the licensed or certified appraiser.

(9)   'Board' means the South Carolina Real Estate Appraisers Board established pursuant to the provisions of this chapter.

(10)   'Complex residential property appraisal' means one in which the property to be appraised, the form of ownership, or market conditions are atypical.

(11)   'Evaluation' means an analysis, opinion, or conclusion that relates to the nature, quality, or utility of identified real estate and does not estimate value.

(12)   'Federally-related transaction' means any real estate-related financial transaction which a federal financial institution regulatory agency engages in, contracts for, or regulates.

(13)   'Market analysis' means a study of real estate market conditions for a specific type of property.

(14)   'Mass appraisal' means the process of valuing a universe of properties as of a given date using standard methodology, employing common data, and allowing for statistical testing.

(15)   'Mass appraiser' means any appraiser who is employed in the office of a tax assessor to appraise real property for ad valorem tax purposes and who is licensed or certified as a mass appraiser.

(16)   'Non-complex residential property appraisal' means one in which the property to be appraised, the form of ownership, and market conditions are those which are typically found in the subject market.

(17)   'Person' means an individual, corporation, partnership, or association, foreign and domestic.

(18)   'Real estate' or 'real property' means an identified parcel of land, including improvements, as well as interests, benefits, and rights inherent in ownership of the parcel.

(19)   'Real estate appraisal activity' means the act or process of valuing real estate or real property and preparing an appraisal report.

(20)   'Residential appraisal' is an appraisal of a vacant or improved parcel of land that is devoted to or available for use as a one-to-four family abode, including, but not limited to, a single family home, apartment, or rooming house.

(21)   'Specialized services' means services other than independent appraisal assignments which are performed by an appraiser. Specialized services may include marketing studies, financing studies, and feasibility studies, valuations, analyses, opinions, and conclusions given in connection with activities, including, but not limited to, real estate brokerage, mortgage banking, real estate counseling, and real estate tax counseling.

(22)   'Standards of professional appraisal practice' or 'USPAP' means the Uniform Standards of Professional Appraisal Practice as adopted by the Appraisal Standards Board of the Appraisal Foundation and adopted by the board.

(23)   'State certified general appraiser' means an appraiser authorized to engage in the appraisal of all types of real property.

(24)   'State certified general mass appraiser' means an appraiser authorized to engage in all types of real estate mass appraisal activity for ad valorem purposes.

(25)   'State certified residential appraiser' means an appraiser authorized to engage in the appraisal of one to four residential units without regard to transaction value or complexity.

(26)   'State certified residential mass appraiser' means an appraiser authorized to engage in the mass appraisal of any one to four residential units without regard to value or complexity.

(27)   'State licensed appraiser' means an appraiser authorized to engage in the appraisal of non-complex one to four residential units having a transaction value less than one million dollars and complex one to four residential units having a transaction value less than two hundred fifty thousand dollars.

(28)   'State licensed mass appraiser' means an appraiser authorized to engage in the mass appraisal of non-complex one to four residential units having a value less than one million dollars and complex one to four residential units having a value less than two hundred fifty thousand dollars.

(29)   'Timberland' means forest land that is producing, or is capable of producing, timber as a crop.

(30)   'Valuation' means an estimate of the value of real estate or real property.

Section 40-60-30.   It is unlawful for an individual to assume or use a title, designation, or abbreviation likely to create the impression that the person is a real estate appraiser or to engage in appraisal activity or advertise as an appraiser without a valid license issued by the department.

Section 40-60-50.   The Department of Labor, Licensing and Regulation shall provide all administrative, fiscal, investigative, inspection, clerical, secretarial, and license renewal operations and activities of the board in accordance with Section 40-1-50.

Section 40-60-60.   (A)   The board shall set general policy with regard to administering and enforcing this chapter and regulations promulgated under this chapter. Powers and duties include, but are not limited to:

(1)   determining the standards and qualifications for issuance of permits, licenses, and certifications;

(2)   conducting disciplinary hearings on alleged violations of this chapter and regulations promulgated under this chapter and deciding disciplinary actions as provided in this chapter for those found to be in violation;

(3)   recommending changes in legislation and promulgating regulations pursuant to this chapter;

(4)   approving and regulating educational courses, providers, and instructors;

(5)   establishing standards for real estate appraisals consistent with the standards recognized by the Appraisal Standards Board.

Section 40-60-70.   (A)   Fees relevant to the licensure and regulation of real estate appraisers must be established in regulation and in accordance with the department's procedures for establishing initial fees, for assessing, collecting, and adjusting fees, and for the development and analysis of fee structures as provided for in Section 40-1-50(D).

(B)   Application and license fees are payable to the department in advance and must accompany an examination application or a license application. Initial fees for exam, permit, license, or certificate must be paid by certified funds. Fees are nonrefundable.

(C)   The board must periodically transmit to the appraisal subcommittee as defined in Section 40-60-20(6), a roster of individuals who have become state licensed real estate appraisers and state certified real estate appraisers and must collect and transmit any information or fees established under Public Law 101-73, Title XI, Real Estate Appraisal Reform Amendments. The board may collect a processing fee necessary to carry out its function under this subsection.

Section 40-60-80.   To qualify as an appraiser, an applicant must:

(1)   have attained the age of eighteen years;

(2)   have graduated from high school or hold a certificate of equivalency;

(3)   submit proof of completion of qualifying education and, if applicable, experience requirements as specified in this chapter;

(4)   submit certificates of licensure from all jurisdictions where presently or previously certified;

(5)   pass an examination, if applicable. An applicant who does not become licensed or certified within five years after passing the examination must retake the examination in order to qualify for the license or certification sought.

Section 40-60-90.   An application for examination, permit, licensure, or certification must be made in writing on a form prescribed by the department.

Section 40-60-100.     In addition to the requirements of Section 40-60-80, an applicant for a permit, license, or certification must provide proof of having met the following educational and applicable experience requirements:

(1)   To qualify as an appraiser apprentice, an applicant must:

(a)   furnish evidence that the applicant will be supervised by an appraiser who is licensed or certified by the board;

(b)   furnish evidence that the applicant has successfully completed within the past five years at least seventy-five classroom hours of courses approved by the board.

(2)   To qualify as a state licensed real estate appraiser, an applicant must:

(a)   furnish evidence that he has successfully completed within the past five years at least ninety hours of courses approved by the board;

(b)   demonstrate two thousand hours of appraisal experience since January 1, 1992, but in not less than twenty-four months including, but not limited to, fee and staff appraisal, ad valorem tax appraisal not to exceed forty percent of the total hours claimed, review appraisal, appraisal analysis, highest and best use analysis, and feasibility analysis/study. The verification for experience credit claimed by an applicant must be by affidavit on forms prescribed by the board;

(c)   pass an examination approved by the board. The only prerequisite to sit for the examination is completion of the educational requirements.

(3)   To qualify as a state certified residential real estate appraiser, an applicant must:

(a)   furnish evidence that the applicant has successfully completed within the past five years at least one hundred twenty classroom hours of courses approved by the board;

(b)   demonstrate two thousand five hundred hours of appraisal experience since January 1, 1992, but in not less than twenty-four months. Experience may include, but is not limited to, fee and staff appraisal, ad valorem tax appraisal not to exceed forty percent of the total hours claimed, review appraisal, appraisal analysis, highest and best use analysis, and feasibility analysis/study. The verification for experience credit claimed by an applicant must be by affidavit on forms prescribed by the board;

(c)   pass an examination approved by the board. The only prerequisite to sit for the examination is completion of the educational requirements.

(4)   To qualify as a state certified general real estate appraiser an applicant must:

(a)   furnish evidence that the applicant has successfully completed within the past five years at least one hundred eighty hours of courses approved by the board;

(b)   demonstrate three thousand hours of appraisal experience since January 1, 1992, but in not less than thirty months and of which at least fifty percent must be in non-residential appraisal work. Experience may include, but is not limited to, fee and staff appraisal, ad valorem tax appraisal not to exceed forty percent of the total hours claimed, review appraisal, appraisal analysis, highest and best use analysis, and feasibility analysis/study. The verification for experience credit claimed by an applicant must be by affidavit on forms prescribed by the board;

(c)   pass an examination approved by the board. The only prerequisite to sit for the examination is completion of the educational requirements;

(d)   the qualifications for licensed mass appraiser, certified mass appraiser, or certified general mass appraiser are identical to those enumerated in this chapter for the comparable levels of licensed appraiser, certified residential appraiser, and certified general appraiser with the exception that one hundred percent of the required experience hours for the mass appraiser designations may be in the area of mass appraisals.

Section 40-60-110.     (A)   The board shall prescribe the form of a permit, license, and certificate containing an identification number that the appraiser shall use when signing appraisal reports. When an appraiser advertises or executes contracts or other instruments, the appraiser's name, appraiser classification, and number assigned by the board must be printed or typed adjacent to the appraiser's signature.

(B)   The appraiser apprentice performing fee appraisal work or seeking to establish experience for a state licensed or state certified designation must:

(1)   perform appraisal assignments only under the direct supervision of a state licensed or certified appraiser;

(2)   maintain a log containing the following for each assignment:

(a)   date of appraisal;

(b)   address of appraised property;

(c)   description of work performed;

(d)   number of points claimed for the assignment;

(e)   name and address of the client; and

(f)   name and license or certification number of supervising appraiser;

(3)   sign all appraisal reports for which the appraiser acts as primary appraiser;

(4)   maintain complete copies of all appraisals.

(C)   The appraiser apprentice performing mass appraisal work seeking to establish credit for a licensed or certified mass appraiser designation must:

(1)   perform appraisal assignments only under the direct supervision of a state licensed or certified appraiser, mass or otherwise;

(2)   maintain a log on a form provided by the board.

(D)   The appraiser supervising an apprentice fee appraiser must:

(1)   personally review appraisal reports prepared by the apprentice and sign and certify the report as being independently and impartially prepared in compliance with the USPAP and applicable statutory requirements;

(2)   provide a copy of final appraisal documents to any participating apprentice.

(E)   the appraiser supervising an appraiser apprentice performing mass appraisal work must personally review and approve all work performed by the apprentice to ensure that the work is prepared in compliance with the USPAP and applicable statutory requirements.

(F)   The board may issue to an appraiser who is licensed or certified in another state a temporary permit, which is only effective for one specific appraisal assignment. If the appraisal is not completed within six months from the date of the permit, the board must grant an extension upon request from the appraiser. The appraiser shall place the following notation on all statements of qualification, contracts, or other instruments: 'Practicing in the State of South Carolina under Temporary Permit No...'.

(G)   Licenses, certifications, and apprentice permits expire annually on June 30. As a condition of renewal, an appraiser shall provide evidence satisfactory to the board of having met the continuing education requirements established by this chapter. An appraiser apprentice may only renew the annual apprentice permit five times.

(H)   Permits, licenses, or certifications not renewed by date of expiration are no longer valid but may be reinstated within twelve months after expiration upon proper application, payment of renewal fee, a late penalty, as established in the fee schedule, and proof of having met continuing education requirements as prescribed.

(I)   A permit, license, or certification which has expired and has not been reinstated by the last day of the 12th month following expiration must be canceled.

(J)   A license or certification may be placed on inactive status by informing the board in writing and must be renewed in the same manner as provided for active renewal.

(K)   A fee appraiser must retain for five years the original or exact copy of each appraisal report prepared or signed by the appraiser and all supporting data assembled and formulated by the appraiser in preparing each appraisal report. The five-year period for retention of records is applicable to each engagement of the services of the appraiser and commences on the date of delivery of each appraisal report to the client.

(L)   An appraiser who has had a permit, license, or certification revoked by the board must not be issued a new permit, license, or certification within two years after the date of the revocation or at any time thereafter except upon an affirmative vote of a majority of the board. A person seeking a permit, license, or certification after revocation shall:

(1)   present evidence of completion of the continuing education required by this chapter;

(2)   pass the applicable examination; and

(3)   meet any other qualifications and conditions which apply to individuals applying for a license who have not been previously licensed.

Section 40-60-120.     (A)   The board may enter into reciprocal agreements with appraiser regulatory authorities of other jurisdictions which provide for waivers of education, examination, and experience requirements if the board considers the education and examination requirements of another jurisdiction to be substantially equivalent to the requirements of this chapter.

(B)   A non-resident applicant shall file an irrevocable consent that suits and actions may be commenced against the applicant in the proper court in a judicial circuit of the state in which a cause of action may arise or in which the plaintiff may reside by the service of process or pleading, authorized by the laws of the state, on the Director of the Department of Labor, Licensing and Regulation. The consent shall stipulate that the service of process or pleading must be taken and held in all courts to be as valid and binding as if service had been made upon the applicant in South Carolina. If the process or pleadings mentioned in this chapter are served upon the Director of the Department of Labor, Licensing and Regulation, it must be by duplicate copies, one of which must be filed in the office of the board and the other immediately forwarded by the board by registered or certified mail to the applicant against whom the process or pleadings are directed, at the last known address of the applicant as shown by the records of the board.

Section 40-60-130.     (A)   For renewal of an active permit, license, or certification, an appraiser shall present evidence of satisfactory completion by the applicant of fourteen classroom hours of instruction in courses or seminars which have been approved by the board for each year of the renewal period.

(B)   A permit, license, or certification of an appraiser that has been suspended may not be reissued until the applicant presents evidence of completion of the continuing education required by this section.

(C)   An appraiser who fails to complete the continuing education requirements by the date of license renewal may renew by submitting applicable fees but must immediately be placed on inactive status and may not engage in appraising while on inactive status. The appraiser seeking to activate shall pay the applicable fee and meet the continuing education required by this section.

(D)   Appraisers may request to receive credit for continuing education for a course that has not been pre-approved by the board or the Appraisers Qualifications Board. However, credit may be granted only if the appraiser provides satisfactory proof of course qualification and the board finds that the course meets the criteria set for continuing education courses with regard to subject matter, course length, instructor qualification, and student attendance.

(E)   The following are exempt from the continuing education requirement:

(1)   instructors of approved courses if they request in writing continuing education credit for time spent teaching or developing approved continuing education courses;

(2)   non-resident appraisers who have successfully satisfied the continuing education requirements of the jurisdiction of residence.

Section 40-60-140.     (A)   In addition to Section 40-1-110, the board may deny licensure to an applicant or may take disciplinary action against an appraiser who:

(1)   fails to meet the minimum qualifications for a permit, license, or certification established by or pursuant to this chapter;

(2)   procures or attempts to procure a permit, license, or certification by knowingly making a false statement, submitting false information, or making a material misrepresentation in an application filed with the board, or procures or attempts to procure a permit, license, or certification through fraud or misrepresentation;

(3)   performs an act in the practice of real estate appraising which constitutes dishonest, fraudulent, or improper conduct;

(4)   engages in the business of real estate appraising under an assumed or fictitious name;

(5)   pays a finder's fee or a referral fee in connection with an appraisal of real estate or real property in this State;

(6)   makes a false or misleading statement in that portion of a written appraisal report that deals with professional qualifications or in any testimony concerning professional qualifications;

(7)   violates the confidential nature of governmental records to which an appraiser gained access through employment or engagement as an appraiser by a governmental agency;

(8)   violates any of the standards for the development or communication of real estate appraisals as promulgated by the board in regulation;

(9)   fails or refuses without good cause to exercise reasonable diligence in developing an appraisal, preparing an appraisal report, or communicating an appraisal;

(10)   exhibits negligence or incompetence in developing an appraisal, in preparing an appraisal report, or in communicating an appraisal;

(11)   accepts an independent appraisal assignment or valuation assignment when the employment itself or fee to be paid was contingent upon the appraiser's reporting a predetermined estimate, analysis, valuation, opinion, or conclusion or upon the award, recovery, or consequences resulting from the appraisal assignment;

(12)   fails to retain records in accordance with Section 40-60-110;

(13)   fails upon reasonable request of an investigator of the board to make all records required to be maintained under this chapter available to the board for inspection and copying by the board or fails to appear upon reasonable request for an interview with an investigator of the board;

(14)   demonstrates bad faith, dishonesty, untrustworthiness, or incompetency to act as an appraiser in a manner to endanger the interests of the public;

(15)   performs or attempts to perform any real estate appraisal activity on property located in another state without first having complied with that state's laws regarding real estate appraisal activity;

(16)   performs or attempts to perform, if licensed or certified as a mass appraiser, any appraisal other than those for ad valorem tax purposes and directly related to the assessor office employment duties of the mass appraiser;

(17)   has been convicted of a felony or a crime involving moral turpitude or pleaded guilty or nolo contendere to any such offense;

(18)   fails to report to the department in writing by certified mail, within ten days, notice of conviction of a crime provided for in item (17);

(19)   has had a license to practice a regulated profession or occupation in this State, another state or jurisdiction canceled, revoked, suspended, or otherwise disciplined;

(20)   issues a check to the board which is returned for insufficient funds or closed account;

(21)   fails to comply with or obey a final order of the board;

(22)   violates any provision of this chapter or any regulation promulgated under this chapter.

Section 40-60-150.     (A)   Investigations must be conducted in accordance with Section 40-1-80.

(B)   A restraining order must be obtained in accordance with Section 40-1-100.

(C)(1)   If the department has reason to believe that a violation of this chapter has occurred, an investigation must be initiated within thirty days.

(2)   A hearing on the charges must be at the time and place designated by the board and must be conducted in accordance with the Administrative Procedures Act.

(3)   The board shall render a decision and shall serve notice, in writing, of the board's decision to the applicant or appraiser charged. The board also shall state in the notice the date the ruling or decision becomes effective.

(4)   The department shall maintain a public docket or other permanent record in which all orders, consent orders, or stipulated settlements must be recorded.

(D)   An appraiser's license may voluntarily be surrendered in accordance with Section 40-1-150.

(E)(1)   The board may impose disciplinary action in accordance with Section 40-1-120.

(2)   Upon determination by the board that one or more of the grounds for discipline exists, as provided for in Section 40-1-110 or Section 40-60-140, the board may also impose a fine of not less than one hundred dollars or more than one thousand dollars for each violation.

(3)   Nothing in this section prevents a licensee from voluntarily entering into a consent order with the board wherein violations are not contested and sanctions are accepted.

(F)   If a complaint filed with the board involves an appraisal report which varies from a sales, lease, or exchange price, the board may decline to conduct an investigation.

(G)   The board is prohibited from conduction an investigation based solely on a dispute over the value of property for ad valorem tax purposes.

(H)   No stay or supersedeas may be granted for more than six months pending appeal from a decision by the board to revoke, suspend, or otherwise restrict a permit, license, or certification.

(I)   A person aggrieved by a final action of the board may seek review of the decision in accordance with Section 40-1-160.

Section 40-60-160.     In addition to other remedies provided for in this chapter or Chapter 1, Title 40, the board in accordance with Section 40-1-100 may issue a cease and desist order or may petition an administrative law judge for a temporary restraining order or other equitable relief to enjoin a violation of this chapter.

Section 40-60-170.     (A)   The board shall establish and publish standards relevant to the approval and conduct of education required by this chapter.

(B)   The department shall review, approve, and regulate educational courses required by this chapter and providers and instructors of these courses including, but not limited to, accredited colleges, universities, private business entities, organizations, schools, associations, individuals, and institutions.

(C)   The department may deny, reprimand, fine, suspend, or revoke the approval of an educational provider or instructor if the department finds that the education provider or instructor has violated or failed to satisfy the provisions of this chapter or the regulations and standards promulgated pursuant to this chapter.

(D)   Application by providers seeking approval to offer and conduct educational instruction or application by instructors must be made on a form prescribed by the department and accompanied by applicable fees not less than sixty days before a course offering and must be approved by the department before the commencement of any instruction. Approval of providers, courses, or instructors by the Appraisal Qualifications Board must be recognized by the board without submitting further application or fee to the department.

(E)   If an application for provider, instructor, or course is not approved, the reason must be detailed and the applicant must be given thirty days to respond.

(F)   Upon approval, certificates must be issued to providers, courses, and instructors to be renewed biennially.

(G)   Approved courses must be taught by approved instructors who are qualified and have demonstrated knowledge of the subject matter to be taught as well as the ability to teach.

(H)   Approved instructors shall attend annual instructor development workshops sponsored by the department whenever possible or provide evidence of equivalent hours of continuing education which increases their knowledge of either the subject content in their area of expertise or their teaching techniques.

Section 40-60-180.     A person found in violation of this chapter or regulations promulgated under this chapter may be required to pay costs associated with the investigation and prosecution of the case in accordance with Section 40-1-170.

Section 40-60-190.     Costs and fines imposed pursuant to this chapter must be paid in accordance with and are subject to the collection and enforcement provisions of Section 40-1-180.

Section 40-60-200.     Investigations and proceedings conducted under this chapter are confidential, and all communications are privileged as provided for in Section 40-1-190.

Section 40-60-210.     (A)   It is unlawful for a person, directly or indirectly, to engage in or conduct the business of, or to advertise or hold himself out as engaging in or conducting the business of, or to act in the capacity of, an appraiser within this State without first obtaining a permit, license, or certification as provided in this chapter.

(B)   A person acting as an appraiser within the meaning of this chapter without a permit, license, or certification is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars or imprisoned not more than six months, or both.

(C)   An appraiser who fails to renew a license or certification and who continues to engage in appraisal activities or business is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars or imprisoned not more than six months, or both.

Section 40-60-220.     A civil action may be brought for violations of this chapter as provided for violations of Title 40, Chapter 1, Article 1 in accordance with Section 40-1-210.

Section 40-60-230.     This chapter does not apply to:

(1)   a real estate licensee licensed in accordance with Chapter 57 may only perform a market analysis or give an opinion as to the price of real estate on the condition that the market analysis or opinion is not referred to as an appraisal. Before performing a market analysis, the real estate licensee must disclose to the requesting party: 'This market analysis may not be used for the purposes of obtaining financing in a federally-related transaction';

(2)   a forester registered pursuant to Chapter 27 of Title 48 who appraises or evaluates standing or growing timber or timberland located in this State and issues an appraisal or evaluation on the timber or timberland; however, when an appraisal or evaluation is to be used in a federally-related transaction, the registered forester must be licensed or certified under this chapter if required by federal law;

(3)   a real estate appraisal or evaluation for real estate related financial transactions exempt from the appraisal requirements under the regulations of federal banking agencies.

Section 40-60-240.     The board shall adopt the standards, and amendments to these standards, of professional appraisal practice, as promulgated by the Appraisal Standards Board of the Appraisal Foundation. All appraiser apprentices and state licensed and certified appraisers shall conform their professional conduct to these standards of professional appraisal practice.

Section 40-60-250.     (A)   The board is authorized to waive or to modify any experience, examination, or education requirements established for appraisers in this chapter in order to bring those requirements into conformity with any requirements established by federal statutes and regulations relating to state licensure of appraisers as established by federal financial institutions regulatory agencies, as defined in Title XI of the U. S. Code, or the Department of Housing and Urban Development, or other such similar agencies.

(B)   Effective July 1, 2000, a person classified as a registered appraiser will automatically be classified as an apprentice appraiser.

Section 40-60-260.     If a provision of this chapter or the application of a provision to a person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable."

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

Renumber sections to conform.

Amend title to conform.

Senator ALEXANDER explained the committee amendment.

The committee amendment was adopted.

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

COMMITTEE AMENDMENT ADOPTED
READ THE SECOND TIME

S. 1035 (Word version) -- Senator Reese: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 6-9-67 SO AS TO PROHIBIT THE INSTALLATION OR REPAIR OF EXTERIOR LATH AND PLASTER, EXTERIOR INSULATION FINISH SYSTEMS, OR OTHER EXTERIOR CLADDING UNLESS PERFORMED BY A CERTIFIED CONTRACTOR OR RESIDENTIAL SPECIALTY CONTRACTOR AND TO REQUIRE BUILDING INSPECTORS TO CONDUCT CERTAIN FLASHING INSPECTIONS BEFORE SUCH EXTERIOR CLADDING IS INSTALLED OR REPAIRED; TO AMEND SECTION 40-11-20, AS AMENDED, RELATING TO DEFINITIONS USED IN CONNECTION WITH THE LICENSURE AND REGULATION OF CONTRACTORS, SO AS TO DEFINE "EXTERIOR INSULATION FINISHING SYSTEMS"; TO AMEND SECTION 40-11-110, AS AMENDED, RELATING TO GROUNDS FOR DISCIPLINARY ACTION AGAINST GENERAL CONTRACTORS, SO AS TO INCLUDE AS AN ADDITIONAL GROUND THE INTERMIXING OF COMPONENTS OR MATERIALS FROM DIFFERENT MANUFACTURERS OF EXTERIOR INSULATION FINISH SYSTEMS; TO AMEND SECTION 40-11-410, AS AMENDED, RELATING TO GENERAL CONTRACTOR LICENSE CLASSIFICATIONS AND SUBCLASSIFICATIONS AND SECTION 40-59-15, AS AMENDED, RELATING TO RESIDENTIAL SPECIALTY CONTRACTORS, BOTH SO AS TO INCLUDE EXTERIOR LATH AND PLASTER AND EXTERIOR INSULATION FINISH SYSTEMS INSTALLERS AND REPAIRERS AS A SUBCLASSIFICATION AND SPECIALTY, RESPECTIVELY; BY ADDING SECTION 40-59-18 SO AS TO DEFINE EXTERIOR INSULATION FINISHING SYSTEMS FOR PURPOSES OF THE CHAPTER LICENSING AND REGULATING RESIDENTIAL HOME BUILDERS; TO AMEND SECTION 40-59-77, AS AMENDED, RELATING TO CLASSIFICATION OF RESIDENTIAL SPECIALTY CONTRACTORS SO AS TO PROVIDE QUALIFICATIONS FOR SUCH CONTRACTORS IN EXTERIOR LATH AND PLASTER AND EXTERIOR INSULATION FINISH SYSTEMS, TO PROHIBIT INTERMIXING OF COMPONENTS OR MATERIALS FROM DIFFERENT MANUFACTURERS OF EXTERIOR INSULATION FINISH SYSTEMS, AND TO REQUIRE AN INSPECTION OF CERTAIN EXTERIOR FLASHINGS BEFORE INSTALLATION OR REPAIR OF EXTERIOR INSULATION FINISH SYSTEMS AND OTHER EXTERIOR CLADDING; TO AMEND SECTIONS 40-59-90 AND 40-59-95, BOTH AS AMENDED, RELATING, RESPECTIVELY, TO SANCTIONS THAT MAY BE TAKEN AGAINST RESIDENTIAL HOME BUILDERS BY THE RESIDENTIAL BUILDERS COMMISSION AND THE DIRECTOR OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION, SO AS TO EXTEND THE APPLICATION OF SANCTIONS FROM SECTION 40-1-120 TO BOTH THE COMMISSION AND THE DIRECTOR; AND TO AMEND SECTION 40-59-200 RELATING TO HOME INSPECTIONS CONDUCTED BY LICENSED HOME INSPECTORS, SO AS TO INCLUDE IN THE DEFINITION OF "HOME INSPECTION" REPORTING ON THE CONDITION OF CERTAIN FLASHING INSTALLATIONS WHEN EXTERIOR CLADDING, INCLUDING AN EXTERIOR INSULATION FINISH SYSTEM, HAS BEEN INSTALLED ON THE RESIDENCE.

The Senate proceeded to a consideration of the Bill. The question being the adoption of the amendment proposed by the Committee on Labor, Commerce and Industry.

The Committee on Labor, Commerce and Industry proposed the following amendment (S-1035 AMENDMENT1), which was adopted:

Amend the bill, as and if amended, Section 40-11-419(4), page 4, by deleting lines 2-4 and inserting:

/licensure under this subclassification, a person must provide to the board proof that the person has passed the Association of the Wall and Ceiling Industries International's technical examination. When a contract/

Amend further, Section 40-59-77(C), page 5, by deleting lines 9-13 and inserting:

/systems installation and repair, a person must provide to the commission proof that the person has passed the Association of the Wall and Ceiling Industries International's technical examination. When a contract requires the installation or repair of an exterior insulation finish system, the registrant must possess a current contractor certificate/

Renumber sections to conform.

Amend title to conform.

Senator McCONNELL explained the committee amendment.

The committee amendment was adopted.

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

CARRIED OVER

S. 1226 (Word version) -- Senators Patterson, Giese, Jackson and Courson: A JOINT RESOLUTION TO PROVIDE THAT THE SCHOOL DAY OF JANUARY 20, 2000, MISSED BY THE STUDENTS OF A. C. FLORA HIGH SCHOOL OF RICHLAND COUNTY SCHOOL DISTRICT ONE FOR SCHOOL YEAR 1999-2000 WHEN THE SCHOOL WAS CLOSED DUE TO A MALFUNCTION IN THE HEATING SYSTEM IS 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.

On motion of Senator PEELER, with unanimous consent, the Joint Resolution was carried over.

S. 1130 (Word version) -- Senator Leventis: A BILL TO AMEND ARTICLE 1, CHAPTER 3 OF TITLE 47, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO REGULATION BY COUNTIES OF DOGS AND OTHER DOMESTIC PETS, SO AS TO, AMONG OTHER THINGS, MAKE THE ARTICLE SPECIFICALLY APPLICABLE TO CATS, PROVIDE FOR IMPOUNDING AND ADOPTION OF ANIMALS, INCREASE THE MAXIMUM PENALTY FOR VIOLATING SECTION 47-3-50, PROVIDE FOR THE PROMULGATION OF CERTAIN REGULATIONS BY THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, PROVIDE THAT WHENEVER AN ANIMAL SHELTER ACCEPTS OR COMES INTO POSSESSION OF A DOG OR CAT, THE SHELTER IMMEDIATELY AND THOROUGHLY MUST SCAN THE ANIMAL FOR ANY IMPLANTED MICROCHIP, OR SIMILAR DEVICE, WHICH PROVIDES EVIDENCE OF OWNERSHIP AND, UPON FINDING THIS DEVICE, IMMEDIATELY MAKE A GOOD FAITH EFFORT TO CONTACT THE IDENTIFIED OWNER, AND PROVIDE FOR RELATED MATTERS; AND TO AMEND ARTICLE 7, CHAPTER 3 OF TITLE 47, RELATING TO ANIMAL EUTHANASIA, SO AS TO AMONG OTHER THINGS, REVISE THE PROVISIONS OF LAW REGARDING THE ALLOWABLE METHODS OF EUTHANASIA AND AUTHORIZE A CERTIFIED EMPLOYEE OF THE DEPARTMENT OF NATURAL RESOURCES TO ADMINISTER EUTHANASIA, INCREASE THE MAXIMUM PENALTIES FOR VIOLATIONS OF THIS ARTICLE, AND AUTHORIZE THE ATTORNEY GENERAL TO BRING AN ACTION TO ENJOIN A VIOLATION OF THIS ARTICLE.

On motion of Senator LEVENTIS, with unanimous consent, the Bill was carried over.

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

MOTION ADOPTED

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

THE SENATE PROCEEDED TO THE ADJOURNED DEBATES.

AMENDED, READ THE THIRD TIME
SENT TO THE HOUSE

S. 12 (Word version) -- Senators Leventis, Hutto, Glover, Washington, Short and Thomas: A BILL TO AMEND TITLE 46, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO AGRICULTURE, BY ADDING CHAPTER 53 SO AS TO ENACT THE "FARM AND FOREST LANDS PROTECTION ACT" WHICH ESTABLISHES STATE AND COUNTY PRIORITY AGRICULTURAL LAND BOARDS, WHICH PROVIDES FOR THEIR POWERS AND DUTIES, WHICH ESTABLISHES CRITERIA AND PROCEDURES FOR CREATING PRIORITY AGRICULTURAL LAND AREAS AND FOR THE PURCHASE OF AGRICULTURAL CONSERVATION EASEMENTS FOR LAND WITHIN THE PRIORITY AREA, WHICH CREATES THE PRIORITY AGRICULTURAL LAND TRUST FUND TO DISBURSE FUNDS FOR THE PURCHASE OF CONSERVATION EASEMENTS, WHICH REQUIRES THE PERIODIC REVIEW OF ALL PRIORITY AGRICULTURAL LAND AREAS, AND WHICH RESTRICTS SOME LOCAL GOVERNMENT ACTIONS WITH REGARD TO PRIORITY AREAS.

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

Amendment No. 2E

Senator LEVENTIS proposed the following Amendment No. 2E (NBD\11884AC00), which was adopted:

Amend the bill, as and if amended, Section 46-53-30, page 4, line 34 before /brother/ by inserting / spouse, /.

Amend the bill further, Section 46-53-40(B) by deleting the first paragraph of item (3) on page 6, lines 20-32 and inserting:

/ (3)   six members appointed by the Governor, with the advice and consent of the Senate. The Governor in making these appointments shall consider recommendations made by the South Carolina Agriculture Commission and a general farm organization. These members must be active farmers, each representing a different congressional district, each residing within the State, and at least one of whom must be a forest farmer and one of whom must be a confined animal feeding operation owner. Of the initial appointees, two members must be appointed for a term of four years, two members must be appointed for a term of three years, and the other members must be appointed for a term of two years. Thereafter, the terms of all appointees are for four years. An appointment made to fill an unexpired term is only for the duration of the unexpired term. Members may be reappointed to successive terms./

Amend the bill further, Section 46-53-40(B) by deleting item (1) beginning on page 5 line 43 and inserting:

/ (1)   five voting ex-officio members or their designees: the Director of the Department of Natural Resources who shall serve as the board chairman; the Commissioner of Agriculture; the Secretary of Commerce; the Vice President for Public Service and Agriculture at Clemson University; and the State Forester. /

Amend the bill further, Section 46-53-60, page 10 by deleting (A)(1) beginning on line 27 and inserting:

/ (A)(1)   A landowner whose property is within the proposed priority agricultural land area or a county board may submit a request to its county council for the creation of a priority agricultural land area or areas within the county. A request must be in the format and manner prescribed by the county. /

Amend the bill further, Section 46-53-100(B), page 15 by deleting item (3) and inserting:

/ (3)   Unless authorized in accordance with item (5), if the land subject to an agricultural conservation easement is no longer viable agricultural land, the current landowner may petition the county, subject to the approval of its county board and its county council, to sell, convey, extinguish, lease, encumber, or restrict an agricultural conservation easement to the current owner of record of the farmland subject to the easement after the expiration of thirty years from the date of purchase of the easement for a price equal to the value at the time of resale determined pursuant to subsection (D) at the time of conveyance. If state funds were used to purchase an agricultural conservation easement, the state board must also give its approval that the land under easement is no longer viable prior to the county's selling, conveying, extinguishing, leasing, encumbering, or restricting an agricultural conservation easement to the current owner of record of the farmland subject to the easement after the expiration of thirty years from the date of purchase of the easement for a price equal to the value at the time of resale determined pursuant to subsection (D) at the time of conveyance. The purchase price must be payable to the county. Any payment received by a county pursuant to this item must be paid into a county account that may be used only for the purpose of purchasing agricultural conservation easements. /

Amend the bill further, page 22, by deleting Section 46-53-190 and inserting:

/ Section 46-53-190.   (A)   In a county where there is a priority agricultural land area, a landowner within that area who seeks to site or expand a permitted animal feeding operation as defined in Title 47 within the priority agricultural land area must satisfy the Department of Health and Environmental Control (DHEC) siting and management regulations for the permitted operation.

A landowner seeking to site an animal feeding operation shall notify homeowners residing on adjoining property within one thousand feet of the facility through certified mail. The applicant must use a notice of intent form provided by DHEC. This notice of intent must advise adjoining homeowners residing on adjoining property of the producer's intent to build an animal facility and that they can send comments on the proposed animal facility directly to DHEC. DHEC shall review all comments received. If DHEC determines significant comment exists, a meeting must be held to discuss and seek resolution to the concerns prior to a permit decision being made. All persons who have submitted written comments must be invited in writing to the meeting. Certified mail to the address of a person to be notified must be used by DHEC for the meeting invitation. Agreement of the parties is not required for DHEC to make a permit decision.

A landowner who seeks to expand a permitted animal feeding operation is not required to provided further notification for expansion.

(B)   A county ordinance pertaining to the siting or management of animal feeding operations may not exceed the requirements of DHEC regulations for an operation located within a priority agricultural land area.

Section 46-53-200.   If the property, or any portion of the property, has been designated as a priority agricultural land area, the landowner, within six months of the land being included within the priority agricultural land area, shall submit an affidavit to the register of deeds which includes the property description and tax map number and states that the property, or a portion of the property, has been designated as a priority agricultural land area.

Section 46-53-210.   The department shall promulgate regulations necessary to promote the efficient, uniform, and statewide administration of this chapter. /

Amend the bill further, as and if amended, by striking SECTION 2, as contained on page 22 and inserting:

/ SECTION 2.   This act takes effect July 1, 2000. /

Renumber sections to conform.

Amend title to conform.

Senator LEVENTIS explained the amendment.

The amendment was adopted.

There being no further amendments, the Bill was read the third time, passed and ordered sent to the House of Representatives.

CARRIED OVER

S. 415 (Word version) -- Senators Land, Hutto, O'Dell, Hayes, Giese and Holland: A BILL TO AMEND SECTION 56-5-6520, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MANDATORY USE OF SEAT BELTS, SO AS TO CONFORM THIS PROVISION WITH THE CHILD RESTRAINT PROVISIONS OF ARTICLE 47; TO AMEND SECTION 56-5-6530, RELATING TO EXEMPTIONS FROM SEAT BELT USE, SO AS TO DELETE AN UNNECESSARY PROVISION; AND TO AMEND SECTION 56-5-6540, RELATING TO SEAT BELT USE, SO AS TO AUTHORIZE PRIMARY ENFORCEMENT OF THE REQUIREMENT TO WEAR SEAT BELTS AND TO INCREASE THE FINE FOR FAILURE TO WEAR A SEAT BELT AND TO IMPOSE A FINE ON THE DRIVER OF A MOTOR VEHICLE IF AN OCCUPANT OF THE VEHICLE UNDER THE AGE OF EIGHTEEN IS NOT WEARING A SEAT BELT.

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

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

THE SENATE PROCEEDED TO SPECIAL ORDERS.

CARRIED OVER

S. 691 (Word version) -- Senators Land, Drummond, Elliott, Hutto, Leatherman, Peeler, Holland, Gregory, Bryan, McGill, McConnell, Branton and Grooms: A BILL TO AMEND TITLE 50 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO FORESTRY, BY ADDING CHAPTER 2, SO AS TO ENACT THE "SOUTH CAROLINA FOREST MANAGEMENT PROTECTION ACT" AND TO PROVIDE LEGISLATIVE FINDINGS AND DEFINITIONS AND APPROPRIATE GUIDELINES FOR FOREST MANAGEMENT.

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

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

AMENDED, READ THE THIRD TIME
SENT TO THE HOUSE

S. 1041 (Word version) -- Senators McConnell, Matthews, Courtney, Patterson, Reese, Hayes, Jackson, Passailaigue, Bryan, Hutto, Courson, Richardson, Ravenel, Washington, Giese and Short: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 1-11-760 AND 38-71-280 SO AS TO REQUIRE THE STATE HEALTH INSURANCE PLAN AND GROUP HEALTH INSURANCE TO PROVIDE COVERAGE FOR TREATMENT OF MENTAL HEALTH CONDITIONS AND ALCOHOL OR SUBSTANCE ABUSE; TO PROHIBIT ANY TERM OR CONDITION OF THE COVERAGE FROM PLACING ANY GREATER BURDEN ON ACCESS TO TREATMENT FOR A MENTAL HEALTH CONDITION OR FOR ALCOHOL OR SUBSTANCE ABUSE THAN ON ACCESS TO TREATMENT FOR A PHYSICAL HEALTH CONDITION; TO AUTHORIZE MANAGEMENT OF CARE FOR TREATMENT OF MENTAL HEALTH CONDITIONS AND FOR ALCOHOL OR SUBSTANCE ABUSE; AND TO REQUIRE THE DIVISION OF INSURANCE SERVICES OF THE STATE BUDGET AND CONTROL BOARD TO REPORT TO THE GENERAL ASSEMBLY ON THE IMPACT OF THIS COVERAGE ON HEALTH INSURANCE COSTS UNDER THE STATE HEALTH INSURANCE PLAN DURING A THREE-YEAR PERIOD; TO PROVIDE THAT, IF THERE IS A GREATER THAN ONE PERCENT INCREASE IN HEALTH INSURANCE COSTS UNDER THE STATE HEALTH PLAN AT THE END OF THE THREE-YEAR PERIOD OR A 3.4 PERCENT INCREASE AT ANY TIME DURING THAT PERIOD AS A RESULT OF PROVIDING THE COVERAGE REQUIRED BY THIS ACT, THE STATE HEALTH PLAN MAY OPT OUT AND THE REQUIREMENTS APPLICABLE TO GROUP HEALTH INSURANCE PLANS UNDER THIS ACT DO NOT TAKE EFFECT; AND TO PROVIDE THAT, IF THE ACT TAKES EFFECT FOR GROUP HEALTH INSURANCE PLANS, A PLAN MAY OPT OUT IF AT ANY TIME THEREAFTER THE PLAN'S INSURANCE COSTS INCREASE BY MORE THAN THREE PERCENT AS A RESULT OF PROVIDING THIS COVERAGE.

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

Amendment No. 6

Senator RANKIN proposed the following Amendment No. 6 (1041R003.LAR), which was tabled:

Amend the bill, as and if amended, page 2, by striking lines 21-32, and inserting the following:

/   (3)   'Mental health condition' means any mental or nervous condition that falls under any of the categories listed in the Diagnostic and Statistical Manual IV, or subsequent editions, minus the 'V' codes./

Amend the bill further, as and if amended, page 4, by striking lines 6-17, and inserting the following:

/   (3)   'Mental health condition' means any mental or nervous condition that falls under any of the categories listed in the Diagnostic and Statistical Manual IV, or subsequent editions, minus the 'V' codes./

Renumber sections to conform.

Amend title to conform.

Senator RANKIN explained the amendment.

Senator SHORT argued contra to the adoption of the amendment.

Senator SHORT moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 7

Senators SALEEBY, McCONNELL, MARTIN, BRYAN and MOORE proposed the following Amendment No. 7 (1041R004.EES), which was adopted:

Amend the bill, as and if amended, page 5, by striking lines 15 and 16 and inserting the following:

/     If the increases provided for in this section do not occur, this section takes effect on the next policy anniversary for plan years after December 31, 2005.   /

Renumber sections to conform.

Amend title to conform.

Senator McCONNELL explained the amendment.

The amendment was adopted.

There being no further amendments, the Bill was read the third time, passed and ordered sent to the House of Representatives.

Statement by Senator FAIR

I voted "no" on S. 1041 because the Bill is a mandate to the private sector to provide mental health coverage to their employees. Employers should retain the ability to pick and choose their benefits. The State has the power to mandate businesses into oblivion, causing a loss not only of benefits but also a loss of a paycheck.

Statement by Senators RYBERG, MARTIN and GREGORY

We do not oppose the state group health plan including mental health parity for state employees. However, we are quite concerned about the current low reserves of the state group health plan. With health care costs escalating at twice the rate of inflation, we believe it is unwise to expand the coverage of the state health plan if we have not met the current statutory reserve requirements. Further, we do not support the mandate on South Carolina businesses included in this Bill. South Carolina businesses should be able to choose the health care coverage that best meets the needs of its employees.

MOTION ADOPTED

On motion of Senator PASSAILALIGUE, with unanimous consent, the Senate stood adjourned out of respect to the memory of Mrs. Katherine Ilderton Stokes of Charleston, S.C.

ADJOURNMENT

At 12:33 P.M., on motion of Senator DRUMMOND, the Senate adjourned to meet tomorrow at 11:00 A.M.

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