South Carolina General Assembly
116th Session, 2005-2006
Journal of the Senate

Wednesday, April 6, 2005
(Statewide Session)


Indicates Matter Stricken
Indicates New Matter

The Senate assembled at 2:00 P.M., the hour to which it stood adjourned, and was called to order by the PRESIDENT.

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

Beloved, hear St. Paul's words to the Galatians, 6:10:

"Therefore, as we have opportunity, let us do good to all..."

Let us pray.

Our Father, we are so prone to love those who love us and to do good to those who have helped us!

Help us who make the laws and fashion economic policy to be magnanimous and seek, as opportunity presents itself, to do good to all. As we seek to do the best for South Carolina, we cannot fulfill that mission without first dedicating ourselves to Your Kingdom of Justice and Love.

This we do - and to You be the glory.
Amen!

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

MESSAGE FROM THE GOVERNOR

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

Local Appointment

Initial Appointment, Orangeburg County Probate Judge, with term to commence July 1, 2004, and to expire when a successor is certified after the general election of 2006

Pandora LaShawn Jones, 1316 Sifly Rd., Orangeburg, S.C. 29118 VICE Vivian Ross-Bennett (resigned)

Statewide Appointment

Initial Appointment, Board of Trustees of the Children's Trust Fund of South Carolina, with term to commence June 30, 2004, and to expire June 30, 2008

2nd Congressional District:

Virginia Austin Allen, 108 Driftwood Circle, Aiken, S.C. 29801 VICE Calvin Elam (resigned)

Referred to the Committee on Judiciary.

REGULATION RECEIVED

The following was received and referred to the appropriate committee for consideration:

Document No. 2973
Agency: Department of Labor, Licensing and Regulation
Board of Nursing
SUBJECT: Repeal of Duplicative Regulations - Included in the Nurse Practice Act
Received by Lieutenant Governor April 5, 2005
Referred to Medical Affairs Committee
Legislative Review Expiration August 3, 2005
Subject to Sine Die Revision

Doctor of the Day

Senator DRUMMOND introduced Dr. Gary Goforth of Greenwood, S.C., Doctor of the Day.

S. 504--CO-SPONSOR ADDED

S. 504 (Word version) -- Senator Moore: A BILL TO AMEND SECTION 42-9-360, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ASSIGNMENT OF COMPENSATION CLAIMS UNDER THE SOUTH CAROLINA WORKERS' COMPENSATION LAW, SO AS TO ESTABLISH PENALTIES FOR LATE PAYMENT OF CHARGES FOR HEALTH CARE GOODS OR SERVICES AND TO PROVIDE THAT PAYMENT MUST BE MADE DIRECTLY TO THE PROVIDER RATHER THAN TO THE CLAIMANT.

On motion of Senator FORD, with unanimous consent, the name of Senator FORD was added as a co-sponsor of S. 504.

S. 545--CO-SPONSOR ADDED

S. 545 (Word version) -- Senator Hutto: A BILL TO AMEND SECTION 5-7-30, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE POWERS OF A MUNICIPALITY, SO AS TO AUTHORIZE A MUNICIPALITY TO CONSTRUCT AND OPERATE TELECOMMUNICATION AND CABLE TELEVISION SYSTEMS AND PROVIDE TELECOMMUNICATION AND CABLE SERVICES.

On motion of Senator FORD, with unanimous consent, the name of Senator FORD was added as a co-sponsor of S. 545.

S. 582--CO-SPONSOR REMOVED

S. 582 (Word version) -- Senators Knotts, Reese, Grooms, Setzler, Hutto, Ford, Mescher, Cromer, Richardson, Land, McConnell, Leventis, Hawkins, Thomas, Rankin, Pinckney, Malloy, Scott and Cleary: A BILL TO AMEND SECTION 44-7-180, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE STATE HEALTH PLANNING COMMITTEE INCLUDING THE DEVELOPMENT AND CONTENTS OF THE STATE HEALTH PLAN FOR USE IN THE ADMINISTRATION OF THE CERTIFICATE OF NEED PROGRAM, SO AS TO REQUIRE THE STATE HEALTH PLAN TO INCLUDE A PROVISION THAT THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL SHALL APPROVE A CERTIFICATE OF NEED APPLICATION FOR OPEN HEART SURGERY IF THE APPLICANT MEETS CERTAIN CRITERIA.

On motion of Senator MALLOY, with unanimous consent, the name of Senator MALLOY was removed as a co-sponsor of S. 582.

INTRODUCTION OF BILLS AND RESOLUTIONS

The following were introduced:

S. 706 (Word version) -- Senator Malloy: A CONCURRENT RESOLUTION TO HONOR AND RECOGNIZE THE ACCOMPLISHMENTS OF THEODORE "DOC" HOUGH OF DARLINGTON COUNTY UPON THE OCCASION OF HIS RETIREMENT AND TO WISH HIM GOOD HEALTH AND IMMENSE HAPPINESS IN ALL HIS FUTURE ENDEAVORS.
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The Concurrent Resolution was adopted, ordered sent to the House.

S. 707 (Word version) -- Senator Thomas: A BILL TO AMEND SECTION 37-6-502, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SELECTION OF MEMBERS OF THE COMMISSION ON CONSUMER AFFAIRS, SO AS TO PROVIDE FOR THE ELECTION OF THE COMMISSIONERS ELECTED BY THE GENERAL ASSEMBLY EVERY FOUR YEARS, BEGINNING FEBRUARY 1, 2006.
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Read the first time and referred to the Committee on Banking and Insurance.

S. 708 (Word version) -- Senators McConnell, Leatherman, Land and Thomas: A BILL TO AMEND SECTION 8-13-770, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PROHIBITION ON MEMBERS OF THE GENERAL ASSEMBLY SERVING ON BOARDS AND COMMISSIONS, SO AS TO ADD THE COMMISSION ON INDIGENT DEFENSE TO THE LIST OF EXCEPTIONS; TO AMEND ARTICLE 3, CHAPTER 3, TITLE 17, RELATING TO THE COMMISSION ON INDIGENT DEFENSE, SO AS TO REVISE THE MEMBERSHIP OF THE COMMISSION, TO REVISE THE DUTIES OF THE COMMISSION, THE OFFICE OF INDIGENT DEFENSE, AND THE EXECUTIVE DIRECTOR OF THE OFFICE OF INDIGENT DEFENSE, TO CREATE THE DIVISION OF APPELLATE DEFENSE WITHIN THE OFFICE OF INDIGENT DEFENSE, TO TRANSFER ALL DUTIES, RIGHTS, AND OBLIGATIONS OF THE FORMER COMMISSION AND OFFICE OF APPELLATE DEFENSE TO THE DIVISION OF APPELLATE DEFENSE, TO PROVIDE SPECIFICALLY FOR THE DUTIES AND OPERATION OF THE DIVISION OF APPELLATE DEFENSE, AND TO REPEAL CHAPTER 4, TITLE 17 RELATING TO THE COMMISSION AND OFFICE OF APPELLATE DEFENSE.
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Read the first time and referred to the Committee on Judiciary.

S. 709 (Word version) -- Senators Mescher and Grooms: A BILL TO AMEND TITLE 44, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO HEALTH, BY ADDING CHAPTER 18 SO AS TO ENACT THE "MERCURY SWITCH REMOVAL ACT OF 2005" IN ORDER TO ACHIEVE REDUCTIONS OF MERCURY IN THE ENVIRONMENT THROUGH REMOVAL AND COLLECTION OF MERCURY SWITCHES FROM MOTOR VEHICLES WEIGHING LESS THAN TWELVE THOUSAND POUNDS; TO PROVIDE THAT EVERY MANUFACTURER OF MOTOR VEHICLES SOLD IN THIS STATE TO WHICH THIS CHAPTER APPLIES SHALL DEVELOP A MERCURY MINIMIZATION PLAN TO BE FILED WITH THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL; TO PROVIDE FOR CERTAIN COSTS WITH REGARD TO THE COLLECTION AND RECOVERY OF MERCURY SWITCHES TO BE PAID BY THE VEHICLE MANUFACTURER; TO PROVIDE FOR OTHER RELATED PROVISIONS PERTAINING TO THE RECYCLING, STORAGE, AND DISPOSAL OF MERCURY SWITCHES, INCLUDING DESIGNATING MERCURY SWITCHES AS UNIVERSAL WASTE AND REQUIRING THE DEPARTMENT TO PROMULGATE REGULATIONS FOR THE MANAGEMENT OF THESE SWITCHES; AND TO PROVIDE PENALTIES FOR VIOLATIONS.
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Read the first time and referred to the Committee on Medical Affairs.

S. 710 (Word version) -- Senator Cleary: A JOINT RESOLUTION TO DIRECT THE OFFICE ON AGING, OFFICE OF THE LIEUTENANT GOVERNOR, TO PROVIDE INFORMATION TO MEMBERS OF THE GENERAL ASSEMBLY AND TO PROVIDE FOR THEIR PARTICIPATION IN THE WHITE HOUSE CONFERENCE ON AGING AND THE STATE CONFERENCE BOTH TO BE HELD IN 2005.
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Read the first time and referred to the Committee on Medical Affairs.

S. 711 (Word version) -- Senators O'Dell and Bryant: A SENATE RESOLUTION TO CONGRATULATE CHIEF CLARENCE DERRILL MCCONNELL OF ANDERSON UPON THE OCCASION OF HIS RETIREMENT FROM THE CITY OF ANDERSON POLICE DEPARTMENT AFTER FORTY YEARS OF DEDICATED SERVICE AND TO WISH HIM MUCH SUCCESS AND HAPPINESS IN ALL OF HIS FUTURE ENDEAVORS.
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The Senate Resolution was adopted.

H. 3285 (Word version) -- Reps. Wilkins, Clemmons, Harrison and Loftis: A BILL TO AMEND SECTION 1-23-610, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO JUDICIAL REVIEW OF DECISIONS BY AN ADMINISTRATIVE LAW JUDGE, SO AS TO PROVIDE THAT A FINAL DECISION BY AN ADMINISTRATIVE LAW JUDGE INVOLVING THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL MAY BE APPEALED AS A MATTER OF RIGHT TO THE COURT OF APPEALS.

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

H. 3411 (Word version) -- Reps. Harrison and Clemmons: A BILL TO AMEND SECTION 5-15-120, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO VOTE COUNTING IN MUNICIPAL ELECTIONS, SO AS TO DELETE THE REQUIREMENT THAT IN THE CASE OF A CONTESTED ELECTION INCUMBENTS HOLD OVER UNTIL THE CONTEST IS FINALLY DETERMINED; AND TO AMEND SECTION 5-15-140, RELATING TO CONTESTING A MUNICIPAL ELECTION, SO AS TO DELETE THE REQUIREMENT THAT THE NOTICE OF APPEAL OF THE DECISION OF THE MUNICIPAL ELECTION COMMISSION ACTS AS A STAY OF FURTHER PROCEEDINGS PENDING THE APPEAL.

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

H. 3843 (Word version) -- Reps. Scott, Agnew, Allen, Altman, Anderson, Anthony, Bailey, Bales, Ballentine, Barfield, Battle, Bingham, Bowers, Brady, Branham, Breeland, G. Brown, J. Brown, R. Brown, Cato, Ceips, Chalk, Chellis, Clark, Clemmons, Clyburn, Coates, Cobb-Hunter, Coleman, Cooper, Cotty, Dantzler, Davenport, Delleney, Duncan, Edge, Emory, Frye, Funderburk, Govan, Hagood, Haley, Hamilton, Hardwick, Harrell, Harrison, Harvin, Haskins, Hayes, Herbkersman, J. Hines, M. Hines, Hinson, Hiott, Hosey, Howard, Huggins, Jefferson, Jennings, Kennedy, Kirsh, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lucas, Mack, Mahaffey, Martin, McCraw, McGee, McLeod, Merrill, Miller, Moody-Lawrence, J. H. Neal, J. M. Neal, Neilson, Norman, Ott, Owens, Parks, Perry, Phillips, Pinson, E. H. Pitts, M. A. Pitts, Rhoad, Rice, Rivers, Rutherford, Sandifer, Scarborough, Simrill, Sinclair, Skelton, D. C. Smith, F. N. Smith, G. M. Smith, G. R. Smith, J. E. Smith, J. R. Smith, W. D. Smith, Stewart, Talley, Taylor, Thompson, Toole, Townsend, Tripp, Umphlett, Vaughn, Vick, Viers, Walker, Weeks, Whipper, White, Whitmire, Wilkins, Witherspoon and Young: A CONCURRENT RESOLUTION RECOGNIZING AND CONGRATULATING THE STUDENTS, FACULTY, ADMINISTRATION, AND STAFF OF JOSEPH KEELS ELEMENTARY SCHOOL IN RICHLAND COUNTY SCHOOL DISTRICT TWO ON RECEIVING THE 2005 PALMETTO'S FINEST AWARD AND FOR STRIVING TO REACH AND MAXIMIZE THE FULL MEASURE OF THEIR TALENTS AND ABILITIES.

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

H. 3852 (Word version) -- Rep. Merrill: A CONCURRENT RESOLUTION TO RECOGNIZE THE SOUTH CAROLINA STATE PORTS AUTHORITY FOR ITS OUTSTANDING CONTRIBUTIONS TO THE STATE'S ECONOMY, FOR THE SIGNIFICANT ROLE IT HAS PLAYED AND WILL CONTINUE TO PLAY IN ADVANCING SOUTH CAROLINA'S POSITION IN THE GLOBAL ECONOMY, AND TO ACKNOWLEDGE APRIL 6, 2005, AS "STATE PORTS AUTHORITY APPRECIATION DAY".

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

H. 3854 (Word version) -- Reps. Hosey, Rhoad, Agnew, Allen, Altman, Anderson, Anthony, Bailey, Bales, Ballentine, Barfield, Battle, Bingham, Bowers, Brady, Branham, Breeland, G. Brown, J. Brown, R. Brown, Cato, Ceips, Chalk, Chellis, Clark, Clemmons, Clyburn, Coates, Cobb-Hunter, Coleman, Cooper, Cotty, Dantzler, Davenport, Delleney, Duncan, Edge, Emory, Frye, Funderburk, Govan, Hagood, Haley, Hamilton, Hardwick, Harrell, Harrison, Harvin, Haskins, Hayes, Herbkersman, J. Hines, M. Hines, Hinson, Hiott, Howard, Huggins, Jefferson, Jennings, Kennedy, Kirsh, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lucas, Mack, Mahaffey, Martin, McCraw, McGee, McLeod, Merrill, Miller, Moody-Lawrence, J. H. Neal, J. M. Neal, Neilson, Norman, Ott, Owens, Parks, Perry, Phillips, Pinson, E. H. Pitts, M. A. Pitts, Rice, Rivers, Rutherford, Sandifer, Scarborough, Scott, Simrill, Sinclair, Skelton, D. C. Smith, F. N. Smith, G. M. Smith, G. R. Smith, J. E. Smith, J. R. Smith, W. D. Smith, Stewart, Talley, Taylor, Thompson, Toole, Townsend, Tripp, Umphlett, Vaughn, Vick, Viers, Walker, Weeks, Whipper, White, Whitmire, Wilkins, Witherspoon and Young: A CONCURRENT RESOLUTION CONGRATULATING THE JEFFERSON DAVIS ACADEMY "LADY RAIDERS" BASKETBALL TEAM OF BAMBERG COUNTY ON THEIR STATE INDEPENDENT SCHOOL ATHLETIC ASSOCIATION CHAMPIONSHIP, AND HONORING THE PLAYERS AND COACH ROBYNE JOYNER.

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

H. 3855 (Word version) -- Reps. J. E. Smith, Agnew, Allen, Altman, Anderson, Anthony, Bailey, Bales, Ballentine, Barfield, Battle, Bingham, Bowers, Brady, Branham, Breeland, G. Brown, J. Brown, R. Brown, Cato, Ceips, Chalk, Chellis, Clark, Clemmons, Clyburn, Coates, Cobb-Hunter, Coleman, Cooper, Cotty, Dantzler, Davenport, Delleney, Duncan, Edge, Emory, Frye, Funderburk, Govan, Hagood, Haley, Hamilton, Hardwick, Harrell, Harrison, Harvin, Haskins, Hayes, Herbkersman, J. Hines, M. Hines, Hinson, Hiott, Hosey, Howard, Huggins, Jefferson, Jennings, Kennedy, Kirsh, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lucas, Mack, Mahaffey, Martin, McCraw, McGee, McLeod, Merrill, Miller, Moody-Lawrence, J. H. Neal, J. M. Neal, Neilson, Norman, Ott, Owens, Parks, Perry, Phillips, Pinson, E. H. Pitts, M. A. Pitts, Rhoad, Rice, Rivers, Rutherford, Sandifer, Scarborough, Scott, Simrill, Sinclair, Skelton, D. C. Smith, F. N. Smith, G. M. Smith, G. R. Smith, J. R. Smith, W. D. Smith, Stewart, Talley, Taylor, Thompson, Toole, Townsend, Tripp, Umphlett, Vaughn, Vick, Viers, Walker, Weeks, Whipper, White, Whitmire, Wilkins, Witherspoon and Young: A CONCURRENT RESOLUTION TO RECOGNIZE AND COMMEND THE REFOUNDING OF THE HISTORIC COLLEGE OF ARTS AND SCIENCES AT THE UNIVERSITY OF SOUTH CAROLINA AND ITS REDEDICATION TO THE MISSION OF BEING A FAITHFUL INDEX TO THE AMBITIONS AND FORTUNES OF THE STATE.

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

H. 3856 (Word version) -- Reps. Govan, Agnew, Allen, Altman, Anderson, Anthony, Bailey, Bales, Ballentine, Barfield, Battle, Bingham, Bowers, Brady, Branham, Breeland, G. Brown, J. Brown, R. Brown, Cato, Ceips, Chalk, Chellis, Clark, Clemmons, Clyburn, Coates, Cobb-Hunter, Coleman, Cooper, Cotty, Dantzler, Davenport, Delleney, Duncan, Edge, Emory, Frye, Funderburk, Hagood, Haley, Hamilton, Hardwick, Harrell, Harrison, Harvin, Haskins, Hayes, Herbkersman, J. Hines, M. Hines, Hinson, Hiott, Hosey, Howard, Huggins, Jefferson, Jennings, Kennedy, Kirsh, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lucas, Mack, Mahaffey, Martin, McCraw, McGee, McLeod, Merrill, Miller, Moody-Lawrence, J. H. Neal, J. M. Neal, Neilson, Norman, Ott, Owens, Parks, Perry, Phillips, Pinson, E. H. Pitts, M. A. Pitts, Rhoad, Rice, Rivers, Rutherford, Sandifer, Scarborough, Scott, Simrill, Sinclair, Skelton, D. C. Smith, F. N. Smith, G. M. Smith, G. R. Smith, J. E. Smith, J. R. Smith, W. D. Smith, Stewart, Talley, Taylor, Thompson, Toole, Townsend, Tripp, Umphlett, Vaughn, Vick, Viers, Walker, Weeks, Whipper, White, Whitmire, Wilkins, Witherspoon and Young: A CONCURRENT RESOLUTION RECOGNIZING AND COMMENDING THE VITAL ROLE SOUTH CAROLINA'S COMMUNITY BANKS PLAY IN EACH LOCAL NEIGHBORHOOD AND PROCLAIMING THE MONTH OF APRIL "COMMUNITY BANKING MONTH" IN SOUTH CAROLINA.

The Concurrent Resolution was introduced and referred to the Committee on Banking and Insurance.

H. 3857 (Word version) -- Reps. Jennings, Townsend, Neilson, Agnew, Allen, Altman, Anderson, Anthony, Bailey, Bales, Ballentine, Barfield, Battle, Bingham, Bowers, Brady, Branham, Breeland, G. Brown, J. Brown, R. Brown, Cato, Ceips, Chalk, Chellis, Clark, Clemmons, Clyburn, Coates, Cobb-Hunter, Coleman, Cooper, Cotty, Dantzler, Davenport, Delleney, Duncan, Edge, Emory, Frye, Funderburk, Govan, Hagood, Haley, Hamilton, Hardwick, Harrell, Harrison, Harvin, Haskins, Hayes, Herbkersman, J. Hines, M. Hines, Hinson, Hiott, Hosey, Howard, Huggins, Jefferson, Kennedy, Kirsh, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lucas, Mack, Mahaffey, Martin, McCraw, McGee, McLeod, Merrill, Miller, Moody-Lawrence, J. H. Neal, J. M. Neal, Norman, Ott, Owens, Parks, Perry, Phillips, Pinson, E. H. Pitts, M. A. Pitts, Rhoad, Rice, Rivers, Rutherford, Sandifer, Scarborough, Scott, Simrill, Sinclair, Skelton, D. C. Smith, F. N. Smith, G. M. Smith, G. R. Smith, J. E. Smith, J. R. Smith, W. D. Smith, Stewart, Talley, Taylor, Thompson, Toole, Tripp, Umphlett, Vaughn, Vick, Viers, Walker, Weeks, Whipper, White, Whitmire, Wilkins, Witherspoon and Young: A CONCURRENT RESOLUTION TO REQUEST THE DEPARTMENT OF PUBLIC SAFETY TO WAIVE FROM MOTOR VEHICLE TITLING, LICENSING, AND REGISTRATION LAWS MOTOR VEHICLES PROVIDED FOR PROMOTIONAL PURPOSES BY AN AUTOMOBILE MANUFACTURER IN CONNECTION WITH NATIONALLY-SPONSORED NASCAR RACING EVENTS HELD IN THIS STATE IN 2005.

The Concurrent Resolution was introduced and referred to the Committee on Transportation.

H. 3858 (Word version) -- Reps. Wilkins, W. D. Smith, Cato, Chellis, Harrell, Harrison, Townsend, Witherspoon and J. Brown: A CONCURRENT RESOLUTION TO INVITE THE HONORABLE GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES OF AMERICA, TO ADDRESS THE SOUTH CAROLINA GENERAL ASSEMBLY IN JOINT ASSEMBLY IN THE CHAMBER OF THE HOUSE OF REPRESENTATIVES AT 11:15 A.M. ON MONDAY, APRIL 18, 2005.

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

H. 3861 (Word version) -- Rep. Huggins: A CONCURRENT RESOLUTION TO DECLARE APRIL 2005 AS "FAIR HOUSING MONTH" IN SOUTH CAROLINA AND TO RECOGNIZE AND SUPPORT "FAIR HOUSING MONTH" IN OUR STATE.

The Concurrent Resolution was introduced and referred to the Committee on Labor, Commerce and Industry.

H. 3864 (Word version) -- Reps. Scott, Agnew, Allen, Altman, Anderson, Anthony, Bailey, Bales, Ballentine, Barfield, Battle, Bingham, Bowers, Brady, Branham, Breeland, G. Brown, J. Brown, R. Brown, Cato, Ceips, Chalk, Chellis, Clark, Clemmons, Clyburn, Coates, Cobb-Hunter, Coleman, Cooper, Cotty, Dantzler, Davenport, Delleney, Duncan, Edge, Emory, Frye, Funderburk, Govan, Hagood, Haley, Hamilton, Hardwick, Harrell, Harrison, Harvin, Haskins, Hayes, Herbkersman, J. Hines, M. Hines, Hinson, Hiott, Hosey, Howard, Huggins, Jefferson, Jennings, Kennedy, Kirsh, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lucas, Mack, Mahaffey, Martin, McCraw, McGee, McLeod, Merrill, Miller, Moody-Lawrence, J. H. Neal, J. M. Neal, Neilson, Norman, Ott, Owens, Parks, Perry, Phillips, Pinson, E. H. Pitts, M. A. Pitts, Rhoad, Rice, Rivers, Rutherford, Sandifer, Scarborough, Simrill, Sinclair, Skelton, D. C. Smith, F. N. Smith, G. M. Smith, G. R. Smith, J. E. Smith, J. R. Smith, W. D. Smith, Stewart, Talley, Taylor, Thompson, Toole, Townsend, Tripp, Umphlett, Vaughn, Vick, Viers, Walker, Weeks, Whipper, White, Whitmire, Wilkins, Witherspoon and Young: A CONCURRENT RESOLUTION TO RECOGNIZE AND CONGRATULATE THE STUDENTS, FACULTY, ADMINISTRATION, AND STAFF OF W. J. KEENAN HIGH SCHOOL IN RICHLAND SCHOOL DISTRICT ONE ON RECEIVING THE 2005 PALMETTO'S FINEST AWARD AND STRIVING TO REACH AND MAXIMIZE THE FULL MEASURE OF THEIR TALENTS AND ABILITIES.

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

H. 3867 (Word version) -- Rep. Perry: A CONCURRENT RESOLUTION TO RECOGNIZE THE FIRST BAPTIST CHURCH OF AIKEN ON THE OCCASION OF ITS HISTORIC TWO HUNDREDTH ANNIVERSARY AND TO COMMEND THE CHURCH FOR TWO HUNDRED YEARS OF SERVICE TO THE COMMUNITY.

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

REPORTS OF STANDING COMMITTEES

Senator MARTIN from the Committee on Judiciary submitted a favorable report on:

H. 3133 (Word version) -- Reps. Delleney, Harrison, Altman, Simrill, Taylor, Vaughn, Davenport, Sandifer, Barfield, Owens, E.H. Pitts, Rice, Clark, Walker, Toole, Viers, M.A. Pitts, Vick, Littlejohn, Coates, Wilkins and Mahaffey: A JOINT RESOLUTION TO PROPOSE AN AMENDMENT TO ARTICLE XVII OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO MISCELLANEOUS MATTERS, BY ADDING SECTION 15, SO AS TO PROVIDE THAT MARRIAGE IS EXCLUSIVELY DEFINED AS THE UNION BETWEEN ONE MAN AND ONE WOMAN.

Ordered for consideration tomorrow.

Senator GREGORY from the Committee on Fish, Game and Forestry submitted a favorable report on:

H. 3602 (Word version) -- Rep. Witherspoon: A CONCURRENT RESOLUTION TO RECOGNIZE THE CONTRIBUTIONS THAT SOUTH CAROLINA MARINAS PROVIDE TO OUR CITIZENS AND VISITORS IN TERMS OF RECREATION, REST, AND RELAXATION AND TO DECLARE AUGUST 13, 2005, AS "NATIONAL MARINA DAY IN SOUTH CAROLINA".

Ordered for consideration tomorrow.

H. 3826--Adopted

Senator ALEXANDER from the Committee on Invitations polled out H. 3826 favorable:

H. 3826 (Word version) -- Reps. Jennings, Agnew, Allen, Altman, Anderson, Anthony, Bailey, Bales, Ballentine, Barfield, Battle, Bingham, Bowers, Brady, Branham, Breeland, G. Brown, J. Brown, R. Brown, Cato, Ceips, Chalk, Chellis, Clark, Clemmons, Clyburn, Coates, Cobb-Hunter, Coleman, Cooper, Cotty, Dantzler, Davenport, Delleney, Duncan, Edge, Emory, Frye, Funderburk, Govan, Hagood, Haley, Hamilton, Hardwick, Harrell, Harrison, Harvin, Haskins, Hayes, Herbkersman, J. Hines, M. Hines, Hinson, Hiott, Hosey, Howard, Huggins, Jefferson, Kennedy, Kirsh, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lucas, Mack, Mahaffey, Martin, McCraw, McGee, McLeod, Merrill, Miller, Moody-Lawrence, J.H. Neal, J.M. Neal, Neilson, Norman, Ott, Owens, Parks, Perry, Phillips, Pinson, E.H. Pitts, M.A. Pitts, Rhoad, Rice, Rivers, Rutherford, Sandifer, Scarborough, Scott, Simrill, Sinclair, Skelton, D.C. Smith, F.N. Smith, G.M. Smith, G.R. Smith, J.E. Smith, J.R. Smith, W.D. Smith, Stewart, Talley, Taylor, Thompson, Toole, Townsend, Tripp, Umphlett, Vaughn, Vick, Viers, Walker, Weeks, Whipper, White, Whitmire, Wilkins, Witherspoon and Young: A CONCURRENT RESOLUTION TO INVITE THE WINNERS OF THE 2005 JEAN LANEY HARRIS FOLK HERITAGE AWARDS AND THE MEMBERS OF THE 2005 JEAN LANEY HARRIS FOLK HERITAGE AWARDS ADVISORY COMMITTEE TO ATTEND A JOINT SESSION OF THE HOUSE OF REPRESENTATIVES AND THE SENATE IN THE HALL OF THE HOUSE OF REPRESENTATIVES ON WEDNESDAY, APRIL 27, 2005, AT A TIME TO BE DETERMINED BY THE SPEAKER OF THE HOUSE AND THE PRESIDENT PRO TEMPORE OF THE SENATE, AND TO RECOGNIZE AND COMMEND THE 2005 JEAN LANEY HARRIS FOLK HERITAGE AWARD WINNERS FOR THEIR OUTSTANDING CONTRIBUTIONS TO FOLK ART IN SOUTH CAROLINA.

Poll of the Invitations Committee
Polled 11; Ayes 11; Nays 0; Not Voting 0

AYES

Alexander                 Patterson                 McGill
Reese                     Knotts                    O'Dell
Elliott                   Ford                      Grooms
Verdin                    Campsen

Total--11

NAYS

Total--0

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

There was no objection.

Senator McCONNELL asked unanimous consent to adopt the Resolution.

There was no objection.

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

HOUSE CONCURRENCES

S. 692 (Word version) -- Senators Lourie, Jackson, Patterson and Courson: A CONCURRENT RESOLUTION TO CONGRATULATE THE RICHLAND NORTHEAST HIGH SCHOOL MODEL UNITED NATIONS TEAM ON THEIR SIXTEENTH STRAIGHT INTERNATIONAL FIRST PLACE AWARD OF DISTINCTION AT THE NATIONAL HIGH SCHOOL MODEL UNITED NATIONS CONFERENCE RECENTLY HELD IN NEW YORK.

Returned with concurrence.

Received as information.

S. 695 (Word version) -- Senators Hayes, Peeler, Gregory and Short: A CONCURRENT RESOLUTION CONGRATULATING THE WINTHROP UNIVERSITY EAGLES OF YORK COUNTY ON THEIR STELLAR 2005 BASKETBALL SEASON, RIDING AN EIGHTEEN-GAME WIN STREAK ALL THE WAY TO A FOURTEENTH SEED IN THE FIRST ROUND OF THE NCAA CHAMPIONSHIP AND ENDING THEIR YEAR WITH THE BEST EAGLE EFFORT IN SCHOOL HISTORY.

Returned with concurrence.

Received as information.

S. 705 (Word version) -- Senators Sheheen, Ryberg, Alexander, Anderson, Bryant, Campsen, Cleary, Courson, Cromer, Drummond, Elliott, Fair, Ford, Gregory, Grooms, Hawkins, Hayes, Hutto, Jackson, Knotts, Land, Leatherman, Leventis, Lourie, Malloy, Martin, Matthews, McConnell, McGill, Mescher, Moore, O'Dell, Patterson, Peeler, Pinckney, Rankin, Reese, Richardson, Ritchie, Scott, Setzler, Short, J. Verne Smith, Thomas, Verdin and Williams: A CONCURRENT RESOLUTION TO EXPRESS THE PROFOUND SORROW OF THE MEMBERS OF THE SOUTH CAROLINA GENERAL ASSEMBLY UPON THE DEATH OF POPE JOHN PAUL II, TO PRAISE HIS LIFETIME OF LEADERSHIP AND ACCOMPLISHMENTS, AND TO EXTEND THE DEEPEST SYMPATHY TO ALL BELIEVERS WORLDWIDE WHO ARE DEEPLY AFFECTED BY HIS PASSING.

Returned with concurrence.

Received as information.

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

THIRD READING BILL

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

S. 689 (Word version) -- Medical Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO INFECTIOUS WASTE MANAGEMENT REGULATIONS, DESIGNATED AS REGULATION DOCUMENT NUMBER 2944, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Senator PEELER explained the Joint Resolution.

SECOND READING BILL

The following Joint Resolution, having been read the second time, was ordered placed on the Third Reading Calendar:

S. 690 (Word version) -- Medical Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO AIR POLLUTION CONTROL REGULATIONS AND STANDARDS, DESIGNATED AS REGULATION DOCUMENT NUMBER 2943, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

COMMITTEE AMENDMENT ADOPTED
READ THE SECOND TIME

S. 588 (Word version) -- Senators Martin, Thomas, Bryant, McConnell, Alexander, Hayes and Malloy: A BILL TO AMEND CHAPTER 1 OF TITLE 35, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE UNIFORM SECURITIES ACT, SO AS TO ENACT THE SOUTH CAROLINA UNIFORM SECURITIES ACT OF 2005, PROVIDING FOR AN ENHANCED ROLE OF THE STATE IN SECURITIES REGULATION AND INVESTOR PROTECTION INCLUDING REGISTRATION OF INITIAL PUBLIC OFFERINGS BY ISSUERS AND CONTROL PERSONS; REGISTRATION OF BROKER-DEALERS AND THEIR AGENTS AND INVESTMENT ADVISORS AND THEIR REPRESENTATIVES; EXPANDED INVESTIGATORY AND ENFORCEMENT POWERS THROUGH SUBPOENA POWER, CRIMINAL PENALTIES SET BY THE STATE, AND STATE CIVIL AND ADMINISTRATIVE LIABILITY; FACILITATION OF ELECTRONIC FILING; AND INVESTOR EDUCATION; TO AMEND SECTION 31-13-200, RELATING TO HOUSING AND REDEVELOPMENT NOTES AND BONDS; SECTION 35-6-10, AS AMENDED, RELATING TO DEFINITIONS FOR PURPOSES OF THE UNIFORM TRANSFER ON DEATH SECURITY REGISTRATION ACT; SECTION 37-1-202, RELATING TO TRANSACTIONS NOT SUBJECT TO THE CONSUMER PROTECTION CODE; SECTION 38-90-440, AS AMENDED, RELATING TO THE STATE REGISTRATION OF A CAPTIVE INSURANCE COMPANY; AND SECTION 41-44-60, RELATING TO THE PALMETTO SEED CAPITAL FUND, ALL SO AS TO CONFORM CROSS-REFERENCES TO THE UNIFORM SECURITIES ACT OF 2005.

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

The Committee on Judiciary proposed the following amendment (JUD0588.003), which was adopted:

Amend the bill, as and if amended, page 45, by striking line 42 and inserting:

/purchases or sales of securities, or represents an issuer in effecting /

Amend the bill further, as and if amended, page 53, by striking lines 1-5 and inserting:

/   (B)   does not include an insurance or endowment policy or annuity contract under which an insurance company promises to pay a fixed sum of money either in a lump sum or periodically for life or other specified period but does include variable annuities;     /

Amend the bill further, as and if amended, page 54, by striking line 18 and inserting:

/   laws"); Koch v. Koch Indus., Inc. 203 F.3d 1202, 1235 (10th Cir.   /

Amend the bill further, as and if amended, page 55, by striking line 21 and inserting:

/(Conn. 1997) ("agent" only includes natural persons when it uses /

Amend the bill further, as and if amended, page 61, by striking line 27 and inserting:

/   and are within this term.     /

Amend the bill further, as and if amended, page 61, by striking line 34 and inserting:

/   sentence in the 1956 Act Section 401(f) and the counterpart   /

Amend the bill further, as and if amended, page 62, by striking lines 34-35 and inserting:

/   the other hand, that portion of clause [(C)], which refers to 'special compensation', amounts to an equally clear recognition that a   /

Amend the bill further, as and if amended, page 63, by striking lines 14 through 24 and inserting:

/   "Congress did not intend to exclude publications that are distributed by investment advisers as a normal part of the business of servicing their clients. The legislative history plainly demonstrates that Congress was primarily interested in regulating the business of rendering personalized investment advice, including publishing activities that are a normal incident thereto. On the other hand, Congress, plainly sensitive to First Amendment concerns, wanted to make clear that it did not seek to regulate the press through the licensing of nonpersonalized publishing activities."

Id. at 185.   /

Amend the bill further, as and if amended, page 71, by striking line 2 and inserting:

/"Securities Commissioner". This section simply clarifies that any /

Amend the bill further, as and if amended, page 72, by striking line 35 and inserting:

/   savings institutions, trust companies, and credit unions.   /

Amend the bill further, as and if amended, on page 76, by striking lines 27-43, and on page 77, by striking lines 1-41, and inserting:

/   28.   Section 35-1-102(28)   "Securities Commissioner."   This definition follows existing law.

29.   Section 35-1-102(29): "Security." This definition replaces prior law found at Section 35-1-20(15). The new definition uses the broader term "fractional undivided interests in oil, gas or other mineral rights" in lieu of prior law's formulation of "certificate of interest or participation in an oil, gas, or mining title or lease." The new definition includes variable life insurance products that were excluded under prior law. Interests in viatical settlements are considered to be securities, rejecting the holding in SEC v. Life Partners, Inc., 87 F.3d 536 (D.C. Cir. 1996), reh'g denied , 102 F.3d 587 (1996), which held that viatical settlements may not be investment contracts if decisions affecting the value of the settlement predate the sale. South Carolina law had been silent on the viatical issue. South Carolina changed subsection (29)(E) to clarify that limited partnership interests and a limited liability company may be a "security", but that a viatical investment is now considered to be a "security." The definition of a viatical settlement will be resolved by reference to statutes and Department of Insurance rules and regulations governing that industry. South Carolina looks for guidance in defining a "security" to those cases interpreting the federal Securities Act of 1933. McGaha v. Mosley, 283 S.C. 268, 322 S.E.2d 462 (Ct. App. 1984); Garrett v. Snedigar, 293 S.C. 176, 359 S.E.2d 283 (Ct. App. 1987). A federal court decision has stated that the South Carolina decisions perceive no distinction between the state and federal definitions of a "security." Faircloth v. Jackie Fine Arts, Inc., 682 F. Supp. 837 (D.S.C. 1988). South Carolina follows the federal approach of concentrating on economic reality rather than the form of a transaction in determining whether a security is involved. Garrett v. Snedigar, 293 S.C. 176, 359 S.E.2d 283 (Ct. App. 1987) citing Tcherepnin v. Knight, 389 U.S. 332, 336 (1967). Garrett remanded for further findings whether or not what was labeled a "general partnership" interest was in fact a "limited partnership" interest, as the trial court held, given the measures of control retained by the supposedly passive partners. The Fourth Circuit Court of Appeals has held that limited partnership interests are a security where the general partners are active managers and the limited partners are passive. Kosnoski v. Bruce, 699 F.2d 944 (4th Cir. 1982). Stock in a closely held corporation has been held to be a security if it has the usual characteristics of stock. Carver v. Blanford, 288 S.C. 309, 342 S.E.2d 406 (1986). A written assignment of an interest in profits is a certificate of interest or participation in a profit sharing agreement and is therefore a security. McGaha v. Mosley, 283 S.C. 268, 322 S.E.2d 461 (Ct. App. 1984). The same result would be reached under this new chapter. In determining whether a bank loan note was a "security," the federal District Court has employed the "commercial versus investment" test to determine whether the transaction was a commercial loan or an investment by the bank. S.C. Nat'l Bank v. Darmstadter, 622 F. Supp. 226 (D.S.C. 1985).

30.   Section 35-1-102(30): "Self Regulatory organization." This definition is new.

31.   Section 35-1-102(31): "Sign." This definition is new.

32.   Section 35-1-102(32): "State." This definition is substantially similar to prior law found at Section 35-1-20(16).   /

Amend the bill further, as and if amended, page 78, by striking line 39 and inserting:

/   states the final bracketed language in this section should be   /

Amend the bill further, as and if amended, page 93, by striking lines 27 through 32 and inserting:

/   (A)   a registration statement has been filed under this chapter, but is not effective;

(B)   a solicitation of interest is provided in a record to offerees in compliance with a rule adopted by the Securities Commissioner under this chapter; and

(C)   a stop order of which the offeror is aware has not been   /

Amend the bill further, as and if amended, page 102, by striking line 14 and inserting:

/22.   Section 202(21): Employee benefit plans: Prior Provision:/

Amend the bill further, as and if amended, page 104, by striking line 6 and inserting:

/   10.   Section 35-1-202(10):   No substantive change.     /

Amend the bill further, as and if amended, page 128, by striking line 40 and inserting:

/   accordance with the Administrative Procedures Act found at /

Amend the bill further, as and if amended, page 163, by striking line 38 and inserting:

/   2.   A person can violate both Section 501 and Section 502 if the /

Amend the bill further, as and if amended, page 167, by striking line 4 and inserting:

/   35-1-160 except that it adds the definition of "materially".   /

Amend the bill further, as and if amended, page 169, by striking lines 24-33 and inserting:

/   Section 35-1-508.   (a)   A person that wilfully violates this chapter, or a rule adopted or order issued under this chapter, except Section 35-1-504 or the notice filing requirements of Section 35-1-302 or 35-1-405, or that wilfully violates Section 35-1-505 knowing that the statement made is false or misleading in a material respect, is guilty of a:

(1)   felony and, upon conviction, must be fined not more than fifty thousand dollars or imprisoned not more than ten years, or both, if the person's actions result in loss to an investor of twenty thousand dollars or more;

(2)   felony and, upon conviction, must be fined in the discretion of the court or imprisoned not more than five years, or both, if the person's actions result in loss to an investor of more than one thousand dollars but less than twenty thousand dollars;

(3)   misdemeanor and, upon conviction, must be fined not more than thirty thousand dollars or imprisoned not more than three years, or both, if the person's actions result in loss to an investor of one thousand dollars or less, or if no losses are proven.   An individual convicted of violating a rule or order under this chapter may be fined, but may not be imprisoned, if the individual did not have knowledge of the rule or order.     /

Amend the bill further, as and if amended, page 171, by striking lines 24-43 and inserting:

/   1.   Subsection (a) is substantially similar to prior law found at former Section 35-1-1590. The anti-fraud remedies apply to all entities and persons, whether or not they are exempt from state registration and reporting requirements.

2.   Subsection (b) is not significant in this State since the Attorney General is the Securities Commissioner. Because proposed subsection (b) is not significant since the Attorney General is the Securities Commissioner in this State, South Carolina deleted the proposed sentence and substituted language making it clear the Attorney General may refer criminal matters to other authorities.     /

Amend the bill further, as and if amended, page 179, by striking lines 22-27 and inserting:

/   diligence where a requirement exists.

In adopting the aider and abettor liability, South Carolina was concerned that innocent parties might be named as defendants without a factual basis for believing those parties had "actual knowledge" or "actual awareness" of the fraudulent conduct. South Carolina adopted this provision based upon the     /

Amend the bill further, as and if amended, page 199, by striking lines 28-29 and inserting:

/   with the Securities and Exchange Commission are principal objectives of this chapter. Section 608 is intended to encourage /

Amend the bill further, as and if amended, page 201, by striking line 17 and inserting:

/   Section 35-1-609:   This provision sets forth the procedure for /

Renumber sections to conform.

Amend title to conform.

Senator MARTIN explained the committee amendment.

The committee amendment was adopted.

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

COMMITTEE AMENDMENT ADOPTED
CARRIED OVER

H. 3107 (Word version) -- Reps. M.A. Pitts, Viers, Taylor, Mahaffey, Duncan and Umphlett: A BILL TO AMEND SECTION 40-47-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE STATE BOARD OF MEDICAL EXAMINERS, SO AS TO PROVIDE FOR TWO ADDITIONAL LAY MEMBERS OF THE BOARD, ONE TO BE APPOINTED BY THE PRESIDENT PRO TEMPORE OF THE SENATE AND ONE TO BE APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.

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

The Medical Affairs Committee proposed the following amendment (NBD\11624AC05), which was adopted:

Amend the bill, as and if amended, Section 40-47-10, page 2 by deleting lines 26 through 35 and inserting:

/In addition to the above members of the board, the Governor, with the advice and consent of the Senate, shall appoint two lay members, one upon the recommendation of the President Pro Tempore of the Senate and one upon the recommendation of the Speaker of the House of Representatives. Lay members must be residents of this State, must have a baccalaureate degree or higher, must not be employed in, or have a member of their immediate family employed in, a health or medically related field, and must not have been convicted of a felony or a crime of moral turpitude. These lay members shall serve for terms of four years and until their successors are appointed and qualify. Vacancies in these two offices must be filled in the manner of original appointment./

Renumber sections to conform.

Amend title to conform.

Senator HAYES explained the committee amendment.

The committee amendment was adopted.

On motion of Senator HAYES, the Bill, as amended, was carried over.

COMMITTEE AMENDMENT AMENDED
CARRIED OVER

H. 3108 (Word version) -- Reps. M.A. Pitts, Barfield, Taylor, Mahaffey, Duncan, Umphlett and Whipper: A BILL TO AMEND SECTION 40-47-211, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MEDICAL DISCIPLINARY COMMISSION OF THE STATE BOARD OF MEDICAL EXAMINERS, SO AS TO ADD TWO LAY MEMBERS FROM EACH CONGRESSIONAL DISTRICT TO BE ELECTED BY THE GENERAL ASSEMBLY, AND TO PROVIDE THAT EACH MEDICAL DISCIPLINARY COMMISSION PANEL FROM A CONGRESSIONAL DISTRICT HEARING AND INVESTIGATING COMPLAINTS AGAINST A PARTICULAR PHYSICIAN OR PHYSICIANS MUST CONTAIN AT LEAST ONE LAY MEMBER OF THE COMMISSION FROM THAT CONGRESSIONAL DISTRICT.

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

Senator HAYES proposed the following amendment (JUD3108.002), which was adopted:

Amend the committee report, by striking it in its entirety and inserting therein the following:

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

//   SECTION   1.   Section 40-47-211 of the 1976 Code, as last amended by an act bearing ratification no. 33, is further amended to read:

"Section 40-47-211.   (A)   There is created the Medical Disciplinary Commission of the State Board of Medical Examiners to be composed of forty-eight members. Of these, thirty-six must be licensed physicians practicing their profession. Five physician commissioners must be elected from each of the six congressional districts, and six physician members of the commission must be elected at large from across the State. The board shall conduct the elections, and the elections for the physician members shall provide for participation by any physician currently licensed and actively practicing medicine in South Carolina and residing in the congressional district in which the election is held. At-large physician members must be currently licensed and actively practicing medicine in South Carolina and must reside within the State at the time of election and throughout their terms. One physician commissioner initially elected from each district shall serve for a term of one year and until his successor is elected and qualifies, one physician commissioner initially elected from each district shall serve for a term of two years and until his successor is elected and qualifies, and one physician commissioner initially elected from each district shall serve for a term of three years and until his successor is elected and qualifies. The successors of the initial physician commissioners shall serve for terms of three years or until their successors are elected and qualify. The members of the commission are limited to three terms. The members appointed to the board may not simultaneously serve as a commissioner. In case of any vacancy by way of death, resignation, or otherwise, the board shall appoint a successor to serve for the unexpired term. Where justice, fairness, or other circumstances so require, the board may appoint past commissioners to hear complaints in individual cases.

(B)   Twelve members of the commission must be lay commissioners who each must have, at a minimum, a baccalaureate degree or the equivalent, and have no ascertainable ties to the health care industry higher, must not be employed in, or have a member of their immediate family employed in, a health care related field, and must not have been convicted of a felony or a crime of moral turpitude. Two lay commissioners must be appointed by the Governor from each of the six congressional districts, with the advice and consent of the Senate. Each lay commissioner must be a registered voter and reside in the congressional district he represents throughout his term. Each lay commissioner initially elected from each district shall serve for a term of three years and until his successor is elected and qualifies. The lay commissioners are limited to three consecutive terms. Vacancies must be filled in the manner of the original appointment for the remainder of the unexpired term. The Governor may appoint a lay commissioner to serve a full term; however, a lay commissioner may not serve more than three terms.

(C)   The commission is empowered to investigate and hear those complaints against physicians (medical and osteopathic) filed with the board pursuant to Section 40-47-200. The hearing must be conducted in accordance with Act 176 of 1977 (Administrative Procedures Act) and with regulations promulgated by the board and must be before a panel composed of at least three commissioners designated by the board, and one of those three commissioners must be a lay member. The panel is empowered to hear the matters complained of and to make findings of fact and recommendations as to disposition of those matters to the board. The panel shall make a certified report of the proceedings before it, including its findings of fact, conclusions, and recommendations, which must be filed together with a transcript of the testimony taken and exhibits as may have been in evidence before it with the administrator of the board, and a copy of the report must be delivered to the office of general counsel and the licensee or his counsel."

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

Renumber sections to conform.

Amend title to conform.

Senator HAYES explained the amendment.

The amendment was adopted.

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

AMENDED, ADOPTED

H. 3620 (Word version) -- Reps. Sandifer and Jennings: A CONCURRENT RESOLUTION TO DESIGNATE APRIL 29th OF EACH YEAR AS "DALE EARNHARDT DAY" IN SOUTH CAROLINA.

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

Senator HUTTO proposed the following amendment (3620R001.CBH), which was adopted:

Amend the concurrent resolution, as and if amended, by striking the resolution in its entirety and inserting:

/   TO DESIGNATE APRIL 29, 2005 AS "DALE EARNHARDT DAY" IN SOUTH CAROLINA.

Whereas, NASCAR racing legend Dale Earnhardt was born on April 29, 1951; and

Whereas, throughout his career, he won 76 victories, including seven Winston Cup Championships, four IROC Championships, ten wins at Talladega, and thirty-four at Daytona. He was an inspiration to fans in South Carolina and throughout the nation; and

Whereas, Dale Earnhardt earned the title "The Intimidator" and was a legend at the South Carolina Darlington Raceway; and

Whereas, he brought the sport of racing to countless Americans, while upholding NASCAR traditions and remaining the top competitor throughout his long career; and

Whereas, Dale Earnhardt was a true sportsman, devoted father and husband, and dedicated member of the NASCAR community. He was respected and admired by all who knew him; and

Whereas, he died on February 18, 2001, while doing what he loved best, racing. The sorrow of his tragic death touched the nation, and the loss of this racing legend, particularly his presence at Darlington, will be missed for generations. Now, therefore,

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

That the General Assembly of the State of South Carolina designate April 29, 2005 as "Dale Earnhardt Day" in South Carolina.     /

Renumber sections to conform.

Amend title to conform.

Senator HUTTO explained the amendment.

The amendment was adopted.

There being no further amendments, the Concurrent Resolution was adopted and ordered returned to the House with amendments.

OBJECTION

S. 401 (Word version) -- Senator Sheheen: A BILL TO AMEND SECTION 59-149-50, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ELIGIBILITY OF A STUDENT TO RECEIVE A LIFE SCHOLARSHIP, SO AS TO INCLUDE A STUDENT WHOSE PARENT OR GUARDIAN IS IN THE MILITARY OR HAS RETIRED FROM THE MILITARY WITHIN FOUR YEARS OF THE DATE THE STUDENT APPLIES FOR THE SCHOLARSHIP IF THE PARENT OR GUARDIAN HAS PAID INCOME TAXES IN THIS STATE FOR A MAJORITY OF THE YEARS OF MILITARY SERVICE AND IS A RESIDENT OF THIS STATE.

Senator RITCHIE spoke on the Bill.

Senator RITCHIE moved to commit the Bill to the Committee on Finance.

Senator SHEHEEN moved to table the motion to commit the Bill to the Committee on Finance.

The motion to commit the Bill to the Committee on Finance was laid on the table.

Senator RITCHIE objected to further consideration of the Bill.

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

MOTION ADOPTED

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

HAVING DISPENSED WITH THE MOTION PERIOD, THE SENATE PROCEEDED TO A CONSIDERATION OF BILLS AND RESOLUTIONS RETURNED FROM THE HOUSE.

NONCONCURRENCE

H. 3152 (Word version) -- Reps. Harrell, Wilkins, Leach, Littlejohn, Young, Bailey, Battle, Rice, Scarborough, Hinson, Simrill, Mahaffey, Sandifer, Hagood and J.E. Smith: A BILL TO AMEND CHAPTER 62 OF TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA MOTION PICTURE INCENTIVE ACT, SO AS TO INCLUDE AN EXEMPTION FROM LOCAL, AS WELL AS STATE, SALES AND USE TAXES, TO DEFINE "EMPLOYEE" FOR PURPOSES OF A FIVE PERCENT REBATE ON ALL TAXABLE WAGES PAID IN CONNECTION WITH AN EMPLOYEE'S WORK ON A MOTION PICTURE AND TO PROVIDE PROCEDURES FOR CLAIMING THE REBATE, TO ALLOW UP TO SEVEN PERCENT OF THE GENERAL FUND PORTION OF ADMISSIONS TAX COLLECTED BY THE STATE AND FUNDED TO THE USE OF THE SOUTH CAROLINA FILM COMMISSION TO BE USED EXCLUSIVELY FOR MARKETING AND SPECIAL EVENTS, AND TO PROVIDE, FURTHER, THAT THE COMMISSION REPORT ANNUALLY TO THE COORDINATING COUNCIL FOR ECONOMIC DEVELOPMENT ON USE OF ALL ITS FUNDS IN A PUBLIC REPORT, ACCESSIBLE ON ITS WEBSITE; TO AMEND SECTION 12-36-920, AS AMENDED, RELATING TO SALES TAX ON GROSS PROCEEDS FROM RENTALS ON LODGINGS, SO AS TO DELETE A REBATE TO A MOTION PICTURE PRODUCTION COMPANY FOR SALES TAX PAID ON ACCOMMODATIONS; TO AMEND SECTION 1-30-25, AS AMENDED, RELATING TO THE DEPARTMENT OF COMMERCE, SO AS TO DELETE A REFERENCE TO THE STATE DEVELOPMENT BOARD; AND TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO EXEMPTIONS FROM THE STATE SALES AND USE TAX, SO AS TO DELETE THE EXEMPTION FOR THE PROCEEDS OF SALES MADE TO A MOTION PICTURE COMPANY.

The House returned the Bill with amendments.

On motion of Senator LEATHERMAN, the Senate nonconcurred in the House amendments and a message was sent to the House accordingly.

THE SENATE PROCEEDED TO THE SPECIAL ORDERS.

COMMITTEE AMENDMENT ADOPTED
READ THE SECOND TIME
RETURNED TO THE STATUS OF SPECIAL ORDER

H. 3007 (Word version) -- Reps. Wilkins, W.D. Smith, Harrell, Cato, Chellis, Harrison, Townsend, Witherspoon, G.R. Smith, Vaughn, Sandifer, Coates, Barfield, Young, Kirsh, Leach, E.H. Pitts, Battle, Viers, Clyburn, Littlejohn, Taylor, Rice, Hinson, Clark, Walker, Bales, Simrill, Mahaffey, Toole, Talley, Umphlett, Brady, Bailey, Hagood, Edge, Clemmons, Huggins, Neilson, Vick and Delleney: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-515 SO AS TO REDUCE THE SEVEN PERCENT TOP MARGINAL RATE OF SOUTH CAROLINA INDIVIDUAL INCOME TAX IN EQUAL ANNUAL INCREMENTS OF .225 PERCENT UNTIL A PERMANENT TOP MARGINAL RATE EQUAL TO 4.75 PERCENT IS ACHIEVED AND TO PROVIDE THAT A SCHEDULED REDUCTION IS POSTPONED IF GENERAL FUND REVENUE GROWTH FOR THE APPLICABLE FISCAL YEAR IS LESS THAN TWO PERCENT.

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

Amendment No. P-1

Senator CAMPSEN proposed the following Amendment No. P-1 (GGS\22075HTC05), which was tabled:

Amend the report of the Committee on Finance, as and if amended, in Section 12-6-545, as contained in Section 1, page 3007-2, by adding an appropriately lettered new subsection at the end of the section to read:

/   ( )   The provisions of this section apply to a taxpayer's active trade or business income for a particular taxable year unless the taxpayer affirmatively so elects on the taxpayer's individual state income tax return for that year.   /

Renumber sections to conform.

Amend title to conform.

Senator CAMPSEN explained the amendment.

Senator ALEXANDER moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. P-2

Senator CAMPSEN proposed the following Amendment No. P-2 (GGS\22077HTC05), which was tabled:

Amend the report of the Committee on Finance, as and if amended, in Section 12-6-545, as contained in Section 1, page 3007-2, by inserting a new subsection appropriated lettered, immediately after the last subsection in Section 12-6-545 to read:

/   ( )   Income subject to tax pursuant to Section 12-6-510 must be taxed at the rates and using the income brackets provided pursuant to Section 12-6-510 as those brackets are adjusted for inflation pursuant to Section 12-6-520.   /

Amend the report further, by inserting an appropriately numbered penultimate section to read:

/ SECTION   _.   A.   This section may be cited as the "Taxpayer Inflation Protection Act".

B.   Section 12-6-520 of the 1976 Code is amended to read:

"Section 12-6-520.   Each December 15, the department shall cumulatively adjust the brackets in Section 12-6-510 in the same manner that brackets are adjusted in Internal Revenue Code Section (1)(f). However, the adjustment is limited to one-half of the adjustment determined by Internal Revenue Code Section (1)(f), may not exceed four percent a year, and but the rounding amount provided in (1)(f)(6) is deemed to be ten dollars. The brackets, as adjusted, apply in lieu of those provided in Section 12-6-510 for taxable years beginning in the succeeding calendar year. Inflation adjustments must be made cumulatively to the income tax brackets."

C.   This section takes effect upon approval by the Governor and first applies for income tax brackets applicable for taxable year 2005. /

Renumber sections to conform.

Amend title to conform.

Senator CAMPSEN explained the amendment.

Point of Order

Senator LEATHERMAN raised a Point of Order that the amendment was out of order inasmuch as it was not germane to the Bill.

Senator LEATHERMAN spoke on the Point of Order.

Senator RICHARDSON spoke on the Point of Order.

The PRESIDENT overruled the Point of Order.

Senator CAMPSEN continued speaking on the amendment.

ACTING PRESIDENT PRESIDES

At 3:17 P.M., Senator McCONNELL assumed the Chair.

Senator CAMPSEN continued speaking on the amendment.

Senator ALEXANDER moved to lay the amendment on the table.

The amendment was laid on the table.

The question then was the adoption of the committee amendment.

The Committee on Finance proposed the following amendment (3007R002.HKL), which was adopted:

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

/   SECTION   1.   Article 5, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-545.   (A)   As used in this section:

(1)   'Active trade or business income or loss' means income or loss of an individual, estate, trust, or any other entity except those taxed or exempted from tax pursuant to Sections 12-6-530 through 12-6-550 resulting from the ownership of an interest in a pass-through business. Active trade or business income or loss does not include:

(a)(i)   passive investment income as defined in Internal Revenue Code Section 1362(d) generated by a pass-through business and income of the same type regardless of the type of pass-through business generating it; and

(ii)   expenses related to passive investment;

(b)   capital gains and losses;

(c)   any payments for services referred to Internal Revenue Code Section 707(c);

(d)   amounts reasonably related to personal services. All amounts paid as compensation are deemed to be reasonably related to personal services. In addition, if an owner of a pass-through entity who performs personal services for the entity is not paid a reasonable amount for those personal services as compensation or payments referred to in Internal Revenue Code Section 707(c), all of the owner's income from the entity is presumed to be amounts reasonably related to personal services.

(2)   'Pass-through businesses' mean sole proprietorships, partnerships, and 'S' corporations, including limited liability companies taxed as sole proprietorships, partnerships, or 'S' corporations.

(B)(1)   Notwithstanding Section 12-6-510, an income tax at the rate provided in item (2) of this subsection is imposed annually on active trade or business income received by the owner of a pass-through business. The amount subject to tax pursuant to this section is not subject to tax pursuant to Section 12-6-510.

(2)   The rate of the income tax imposed pursuant to this subsection is:

Taxable Year Beginning in               Rate of Tax

2006                         6.5 percent

2007                           6 percent

2008                         5.5 percent

after 2008                           5 percent

(C)   Notwithstanding any other provision of this chapter, active trade or business loss must first be deducted, dollar for dollar against active trade or business income. Any remaining active trade or business loss is multiplied by a fraction, the numerator of which is the rate of tax imposed pursuant to subsection (B)(2) of this section, and the denominator of which is the highest income tax rate imposed pursuant to Section 12-6-510. The resulting amount is deductible from income taxed under Section 12-6-510 if otherwise allowable."

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

Renumber sections to conform.

Amend title to conform.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 41; Nays 4

AYES

Alexander                 Anderson                  Cleary
Courson                   Cromer                    Elliott
Fair                      Ford                      Gregory
Grooms                    Hawkins                   Hayes
Hutto                     Jackson *                 Knotts
Land                      Leatherman                Leventis
Lourie                    Malloy                    Martin
Matthews                  McGill                    Mescher
Moore                     O'Dell                    Patterson
Peeler                    Pinckney                  Rankin
Reese                     Richardson                Ritchie
Scott                     Setzler                   Sheheen
Short                     Smith, J. Verne           Thomas
Verdin                    Williams

Total--41

NAYS

Bryant                    Campsen                   McConnell
Ryberg *

Total--4

*These Senators were not present in the Chamber at the time the vote was taken and the vote was recorded by leave of the Senate, with unanimous consent.

The committee amendment was adopted.

Amendment No. 1

Senator RYBERG proposed the following Amendment No. 1 (3007R006.WGR), which was tabled:

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

/   SECTION   1.   Article 5, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-515.   (A)   Notwithstanding the rates of taxes imposed pursuant to Section 12-6-510, beginning with taxes due for the 2006 taxable year and continuing each taxable year thereafter, the then applicable top marginal rate of income tax imposed by that section is reduced by .225 until the top marginal rate of income tax attains a permanent rate of 4.75 percent. The department shall make the necessary adjustments to the rates and the brackets otherwise applicable pursuant to Section 12-6-510.

(B)   Notwithstanding the scheduled reductions in the top marginal income tax rate provided in subsection (A) of this section, beginning with the top marginal rate applicable for taxable year 2007, the reduction otherwise scheduled must not be made for that taxable year if estimated general fund revenue growth as established in the February fifteenth revenue forecast of the Board of Economic Advisors is less than two percent of the most recent estimate by the board of general fund revenues for the current fiscal year. No reduction in the top marginal rate made pursuant to this section may exceed .225 for any one taxable year.

In addition, no reductions in the income tax rates provided for in this section for any taxable year may occur unless the Board of Economic Advisors certifies that sufficient general fund revenues for the fiscal year immediately following the reduction will remain available for the General Assembly in the annual general appropriations act for that year to maintain K-12 education funding at the level of the previous year.

In addition, no reductions in the income tax rates provided for in this section for any taxable year may occur unless the Board of Economic Advisors certifies that sufficient general fund revenues for the fiscal year immediately following the reduction will remain available for the General Assembly in the annual general appropriations act for that year to maintain law enforcement funding at the level of the previous year."

SECTION   2.   Section 12-6-520 of the 1976 Code is amended to read:

"Section 12-6-520.   Each December 15, the department shall cumulatively adjust the brackets in Section 12-6-510 in the same manner that brackets are adjusted in Internal Revenue Code Section (1)(f). However, the adjustment is limited to one-half of the adjustment determined by Internal Revenue Code Section (1)(f), may not exceed four percent a year, and the rounding amount provided in (1)(f)(6) is ten dollars. The brackets, as adjusted, apply in lieu of those provided in Section 12-6-510 for taxable years beginning in the succeeding calendar year. Inflation adjustments must be made cumulatively to the income tax brackets."

SECTION   3.   Section 1 of this act takes effect January 1, 2006. Section 2 of this act takes effect upon approval of this act by the Governor and first applies for bracket adjustments calculated for taxable year 2006.       /

Renumber sections to conform.

Amend title to conform.

Senator RICHARDSON explained the amendment.

Senator ALEXANDER moved to lay the amendment on the table.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 34; Nays 11

AYES

Alexander                 Anderson                  Courson
Cromer                    Drummond                  Elliott
Ford                      Hayes                     Hutto
Jackson *                 Knotts                    Land
Leatherman                Leventis                  Lourie
Malloy                    Martin                    Matthews
McGill                    Moore                     O'Dell
Patterson                 Peeler                    Rankin
Reese                     Richardson                Ritchie
Scott                     Setzler                   Sheheen
Short                     Smith, J. Verne           Thomas
Williams

Total--34

NAYS

Bryant                    Campsen                   Cleary
Fair                      Gregory                   Grooms
Hawkins                   McConnell                 Mescher
Ryberg *                  Verdin

Total--11

*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by leave of the Senate, with unanimous consent.

The amendment was laid on the table.

Amendment No. 2

Senator RICHARDSON proposed the following Amendment No. 2 (3007R005.SHR), which was ruled out of order:

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

/   SECTION   _.   Article 5, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-515.   Notwithstanding the rates of taxes imposed pursuant to Section 12-6-510, beginning with taxes due for the 2006 taxable year and continuing each taxable year thereafter, the then applicable top marginal rate of income tax imposed by that section is reduced by .25 percent until the top marginal rate of income tax attains a permanent rate of six percent. The department shall make the necessary adjustments to the rates and the brackets otherwise applicable pursuant to Section 12-6-510."

SECTION   ____.   Section 12-6-520 of the 1976 Code is amended to read:

"Section 12-6-520.   Each December 15, the department shall cumulatively adjust the brackets in Section 12-6-510 in the same manner that brackets are adjusted in Internal Revenue Code Section (1)(f). However, the adjustment is limited to one-half of the adjustment determined by Internal Revenue Code Section (1)(f), may not exceed four percent a year, and the rounding amount provided in (1)(f)(6) is ten dollars. The brackets, as adjusted, apply in lieu of those provided in Section 12-6-510 for taxable years beginning in the succeeding calendar year. Inflation adjustments must be made cumulatively to the income tax brackets.

SECTION   ___.   Article 5, Chapter 21, Title 12 of the 1976 Code is amended by adding:

"Section 12-21-630.   (A)   In addition to the license tax imposed pursuant to Section 12-21-620(1), there is imposed on all cigarettes made of tobacco or any substitute for tobacco an additional license tax equal to 3.15 cents on each cigarette.

(B)   The additional license tax imposed pursuant to subsection (A) must be reported, paid, collected, and enforced in the same manner as the license tax imposed pursuant to Section 12-21-620(1).

(C)   There is created in the State Treasury the Medicaid Match Fund that is separate and distinct from the general fund of the State and all other funds. Revenue collected pursuant to this section must be credited to the Medicaid Match Fund and used by the Department of Health and Human Services as the state match for federal Medicaid funding. This fund is exempt from reductions imposed by law as a result of general fund shortfalls. Earnings on fund revenues must be credited to the fund and used for the same purposes. Revenues in the fund not expended during a fiscal year are carried forward to the succeeding fiscal year and must be used for the same purposes."   /

Renumber sections to conform.

Amend title to conform.

Senator RICHARDSON explained the amendment.

Point of Order

Senator KNOTTS raised a Point of Order that the amendment was out of order inasmuch as it was not germane to the Bill.

Senator RICHARDSON spoke on the Point of Order.

The ACTING PRESIDENT sustained the Point of Order.

The amendment was ruled out of order.

Amendment No. 3

Senator RICHARDSON proposed the following Amendment No. 3 (3007R004.SHR), which was tabled:

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

/   SECTION   _.   Article 5, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-515.   Notwithstanding the rates of taxes imposed pursuant to Section 12-6-510, beginning with taxes due for the 2006 taxable year and continuing each taxable year thereafter, the then applicable top marginal rate of income tax imposed by that section is reduced by .25 percent until the top marginal rate of income tax attains a permanent rate of six percent. The department shall make the necessary adjustments to the rates and the brackets otherwise applicable pursuant to Section 12-6-510."

SECTION   ____.   Section 12-6-520 of the 1976 Code is amended to read:

"Section 12-6-520.   Each December 15, the department shall cumulatively adjust the brackets in Section 12-6-510 in the same manner that brackets are adjusted in Internal Revenue Code Section (1)(f). However, the adjustment is limited to one-half of the adjustment determined by Internal Revenue Code Section (1)(f), may not exceed four percent a year, and the rounding amount provided in (1)(f)(6) is ten dollars. The brackets, as adjusted, apply in lieu of those provided in Section 12-6-510 for taxable years beginning in the succeeding calendar year. Inflation adjustments must be made cumulatively to the income tax brackets."

Renumber sections to conform.

Amend title to conform.

Senator RICHARDSON explained the amendment.

Senator ALEXANDER moved to lay the amendment on the table.

The amendment was laid on the table.

The question then was the second reading of the Bill.

PRESIDENT PRESIDES

At 4:23 P.M., the PRESIDENT assumed the Chair.

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

The Bill was returned to the status of Special Order.

Statement by Senator RICHARDSON

In considering all aspects of tax reduction in 2005, the most important consideration must be the ability of the State to absorb any reduction in tax income.

The Governor requested an income tax reduction from 7 percent to 4.75 percent which would ultimately create a reduction of over one billion dollars per year. I believe that is too bold a step for the State at this time, which is why I voted against that program.

The Senate passed out of committee approximately $130 million in cuts, which I believe is certainly appropriate. However, I believe that some additional cut to personal income tax may also be appropriate. I introduced a one percent reduction from seven down to six percent which would cost the State another $270 million by 2009, which I believe is possible to absorb. My amendment was tabled on a voice vote.

I hope the House of Representatives will revisit this issue and return it to the Senate for a second vote.

Statement by Senators PEELER, J. VERNE SMITH,
HAYES, MARTIN, ALEXANDER, CROMER, KNOTTS, SCOTT, SETZLER, THOMAS, O'DELL, LEATHERMAN, RICHARDSON, COURSON, RITCHIE and RANKIN

We would like to express our support for the Senate Finance Committee amendment that was passed without objection. This proposal would decrease the marginal income taxes on small businesses from 7 percent to 5 percent. We believe moving in this direction will not only meet our fiduciary responsibility to the people of South Carolina but also stimulate economic activity and job creation. We support legislation that will create jobs for the citizens of the Palmetto State.

However, we wish to explain our vote to table the amendment to House Bill 3007 dealing with a decrease in the marginal rate of the state income tax from 7 percent to 5 percent for all individuals. The total fiscal impact of this initiative, when fully implemented, would have removed over one billion dollars from the general fund. In a letter dated February 15, 2005, from the State Treasurer's Office, two major ratings agencies -- Standard and Poor's and Moody's Investors Service -- communicated to the South Carolina General Assembly grave concern about the proposal's potential impact on revenues at a time when the State has made partial but not full recovery from the most recent downturn in the economic cycle.

Representatives from Standard and Poor's went on to express concern that the income tax reduction when combined with an inevitable economic downturn will exacerbate the state's difficulties in achieving a timely economic recovery. Furthermore, Standard and Poor's representatives described a tax reduction of this magnitude without identifiable offsets in either increased revenue or corresponding reduction in government expenses as being inconsistent with the actions necessary to maintain South Carolina's coveted AAA credit rating.

H. 3007--Ordered to a Third Reading

On motion of Senator LEATHERMAN, with unanimous consent, H. 3007 was ordered to receive a third reading on Thursday, April 7, 2005.

LOCAL APPOINTMENT
Confirmation

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

Initial Appointment, Orangeburg County Probate Judge, with term to commence July 1, 2004, and to expire when a successor is certified after the general election of 2006

Pandora LaShawn Jones, 1316 Sifly Rd., Orangeburg, S.C. 29118 VICE Vivian Ross-Bennett (resigned)

MOTION ADOPTED

On motion of Senator RYBERG, with unanimous consent, the Senate stood adjourned out of respect to the memory of Mr. Leonard Quattlebaum of Aiken, S.C., community leader, businessman and friend.

ADJOURNMENT

At 4:24 P.M., on motion of Senator LEATHERMAN, the Senate adjourned to meet tomorrow at 11:00 A.M.

* * *

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