South Carolina General Assembly
117th Session, 2007-2008
Journal of the House of Representatives

Thursday, February 7, 2008
(Statewide Session)

Indicates Matter Stricken
Indicates New Matter

The House assembled at 10:00 a.m.
Deliberations were opened with prayer by Rev. Charles E. Seastrunk, Jr., as follows:

Our thought for today is from Hebrews 13:7: "Remember your leaders, who spoke the word of God to you. Consider the outcome of their way of life and imitate their faith."
Let us pray. We thank You for giving us leaders who are strong, courageous, and filled with the desire to work tirelessly to accomplish what is good, what is helpful for the people whom they serve. Look in favor upon our Nation, President, State, Governor, Speaker, this Honorable Assembly, and all who labor in these Halls of Government. Protect our defenders of freedom at home and abroad as they protect us. Hear our prayer, O Lord. Amen.

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

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

MOTION ADOPTED

Rep. HUGGINS moved that when the House adjourns, it adjourn in memory of Margaret Ann Eckstrom, sister of Comptroller General Richard Eckstrom, which was agreed to.

SILENT PRAYER

The House stood in silent prayer for Leroy Cain, Sr., former Assistant Sergeant at Arms for the House of Representatives.

REPORT RECEIVED

SOUTH CAROLINA
BROADBAND TECHNOLOGY AND
COMMUNICATIONS STUDY COMMITTEE

REPORT TO THE
GENERAL ASSEMBLY

The following was received:

February 6, 2008

Senator Luke A. Rankin, Chairman
Representative Dwight A. Loftis, Vice Chairman

Senate Staff                 House Staff

Nancy Coombs               Jennifer Robinson

Heather Anderson             Ben Homeyer

I. INTRODUCTION

A. Background

In 2003, the Federal Communications Commission (FCC) issued a notice of proposed rulemaking (NOPR) regarding the restructuring of the 2.5 GHz band of the spectrum, the band licensed to educational organizations and institutions. ETV, Trident Technical College (Trident Tech), and Greenville Technical College (Greenville Tech) hold instructional television fixed service (ITFS) licenses in S.C. ETV has 67 licenses and Trident Tech and Greenville Tech each have two licenses. That band is also licensed to commercial providers and used for Multipoint Distribution Service (MDS), a common carrier service for distribution of television programming. The FCC reassigned ITFS licensees to the Educational Broadband Service (EBS) and the commercial providers to the Broadband Radio Service (BRS) and renamed the services EBS and BRS to more accurately describe the kinds of services the FCC anticipated would develop in the 2.5 GHz band.

In 2004, the FCC adopted new rules that require the EBS and BRS licensees to convert their systems to digital systems, thereby creating excess capacity on the spectrum. This excess capacity may be leased to commercial organizations and could be used to provide wireless broadband services. The FCC stated in its rulemaking, "By these actions, we make significant progress towards the goal of providing all Americans with access to ubiquitous wireless broadband connections, regardless of their location." In the Matter of Amendment of Parts 1, 21, 73, 74 and 101 of the Commission's Rules to Facilitate the Provision of Fixed and Mobile Broadband Access, Educational and other Advanced Services in the 2150-2162 and 2500-2690 MHz Bands, 19 F.C.C.R. 14165 (July 29, 2004).

The FCC has divided the country into 493 Basic Trading Areas (BTAs). South Carolina has twelve BTAs, some of which extend into North Carolina and Georgia. The transition of all of the licenses in a BTA will be managed by an EBS or BRS licensee or lessee in the BTA ("the proponent" for the BTA). Clearwire[1] is the proponent in three of the twelve BTAs, the Greenville-Spartanburg BTA, Columbia BTA and the Charlotte-Gastonia BTA, which includes the Rock Hill area, and which means transition initiation plans have been filed in those BTAs. FCC rules require the proponent to pay the costs of transitioning the EBS licensees to their new spectrum blocks. All other BRS and commercial EBS licensees must pay the costs of their transition to the new spectrum and their pro rata share of the costs of transitioning the EBS licensees. Under the FCC rules, transition initiation plans must be filed with the FCC by January 19, 2009, and every EBS and BRS licensee must be able to show they are providing substantial service by May 1, 2011, or they may lose their licenses.

[1] Clearwire is a company that was founded in 2003 by Craig McCaw, who began his career in his family's cable business and was a pioneer in the cellular telecommunications industry. Clearwire has plans to use a technology in the 2.5 GHz spectrum known as WiMAX, which is colloquially referred to as Wi-Fi on steroids, to bring high-speed Internet access to homes and businesses across the nation.

B. Joint Resolution H. 3569

The General Assembly adopted two goals in H. 3569: (1) all South Carolinians should have affordable access to broadband products and services as quickly as possible; and (2) the policies of this State should promote technological neutrality, competition, investment, and innovation so that broadband service providers have sufficient incentive to develop and offer these products and services. H. 3569 created a study committee to study various issues, perform certain duties, and report back to the General Assembly by December 31, 2007.

H. 3569 (Word version) established the following findings:

(1)   access to computers and the Internet, along with the ability to effectively use these technologies, is becoming increasingly important for full participation in America's economic, political, and social life;

(2)   affordable, high-speed Internet access is critical to attracting, growing, and retaining businesses in the highly competitive global marketplace;

(3)   in the digital age, universal connectivity at an affordable price is a necessity for business transactions, education and training, health care, and government services;

(4)   broadband service to access information and resources is pivotal to eliminating the digital divide and promoting the economic and personal self-sufficiency of low-income individuals;

(5)   broadband service is proving valuable to the economic transitioning and growth of distressed urban and rural communities;

(6)   broadband service currently is being provided using a number of different technologies, each of which has unique characteristics and advantages;

(7)   communications service providers in South Carolina, including those in rural areas of the State, have invested and continue to invest significant amounts of capital to deploy and maintain networks to make broadband services available to the vast majority of South Carolina citizens;

(8)   access to computers and broadband access at home and at school enhances the learning environment for school age children; and

(9)   changes to the 2495-2690 MHz band of the spectrum licensed by the Federal Communications Commission for Educational Broadband Service and Broadband Radio Service will enable EBS and BRS providers to use that spectrum in a more technologically and economically efficient manner, encourage licensees to digitize their frequencies thereby creating excess capacity on their spectrum, and allow licensees to lease up to ninety-five percent of their capacity to commercial entities.

The Broadband Technology and Communications Study Committee is composed of 17 members, three of whom are non-voting members. A listing of the members is attached to this report. The General Assembly assigned the following duties and powers to the Study Committee:

(1)   evaluate how best to foster a partnership between the private sector and public sector to accomplish the goals of this section;

(2)   evaluate the state's broadband communications infrastructure to determine whether and where broadband services are available, by whom they are provided, and by what manner of technology;

(3)   assess the need for broadband services in unserved and underserved areas within the State;

(4)   maintain an inventory of locations within the State at which broadband services are not available or are underutilized;

(5)   identify the types and locations of infrastructure and services required to satisfy the need for broadband services in unserved and underserved areas within the State;

(6)   make recommendations to the General Assembly regarding the best method of leasing the excess capacity of EBS licensees in this State. In making its recommendations, the Study Committee must consider whether broadband service expansion should be accomplished in a manner that allows South Carolina-based broadband providers a reasonable opportunity to contribute toward the realization of the goals of this section. Excess capacity must not be leased prior to approval of the recommendations of the Study Committee by the General Assembly. Upon approval of the recommendations by the General Assembly, the EBS licensees are authorized to lease excess capacity in cooperation with the Division of the CIO. The awarding of contracts for the lease of excess capacity must be done by competitive solicitation in accordance with the South Carolina Consolidated Procurement Code. In entering into contracts to allow third parties to lease the EBS licensee's excess capacity, the EBS licensee and the Division of the CIO must not impose any pricing requirements on those third parties. The committee must make recommendations to the General Assembly as to how best to utilize the funds received from the lease of excess capacity. The Study Committee must consider, at a minimum, whether the funds should be used to offset the costs of broadband service for qualified low-income subscribers, whether the licensee or other state entity should receive all or a portion of the funds, or any other use of the funds to the benefit of the State; and

(7)   recommend to the General Assembly necessary legislation, rules, programs, and policies for the State, a state agency, or a political subdivision of the State to advance the goal of providing all South Carolinians with affordable access to broadband products and services; provided, that any policies recommended by the Study Committee should promote technological neutrality, competition, investment, and innovation to ensure that broadband service providers have sufficient incentive to develop and offer these products and services.

In carrying out its duties, H. 3569 requires the Study Committee to act in the public interest, which is defined to include, but is not limited to, a balancing of the following:

(1)   concerns of the using and consuming public with respect to broadband services, regardless of the class of customer;

(2)   economic development and job attraction and retention in South Carolina;

(3)   viability of existing broadband networks and recognition of the investments made therein; and

(4)   encouragement of continued private investment in and maintenance of broadband facilities so as to provide reliable and high quality broadband services.

The Study Committee met seven times, September 26, October 4 and 17, November 6 and 20, December 12, and January 9.[2] The Study Committee heard from incumbent broadband providers and potential bidders of the EBS licensees' spectrum capacity. The incumbent providers explained their efforts to get broadband services to the residents and businesses in the State. With regard to the leasing of EBS licensees' excess capacity, the incumbent providers requested that the lease(s) be based upon prevailing market rates for EBS licenses pursuant to a fair and competitive bidding process. The potential bidders explained their interest in leasing the excess capacity. The Study Committee also heard from a number of organizations and persons on the benefits of broadband services.

[2] Agendas, minutes, presentation and comments, a list of issues put out for comment, and a compilation of the responses to those issues that the Study Committee received from various interested parties can be accessed on the General Assembly's website: http://www.scstatehouse.net/citizensinterestpage/BroadbandTechnology&CommunicationStudyComm/broadband.html.

II. RECOMMENDATIONS

A. Broadband Deployment

Several of the Study Committee's duties involve the state's present broadband communications infrastructure. H. 3569 requires the Study Committee to: (1) evaluate the state's infrastructure to determine whether broadband services are available, where they are available, by what type of technology broadband services are provided, and by whom they are provided; and (2) maintain an inventory of locations where broadband services are not available. Because of the competitive nature of broadband, incumbent providers were reluctant to provide detailed information to the Study Committee without protection of proprietary information. Some states have created non-profit entities that obtain and analyze this type of information in an effort to facilitate the deployment of broadband in those states. The Study Committee heard presentations from e-NC Authority and ConnectKentucky, the North Carolina and Kentucky non-profit entities whose goal, among other things, is to promote broadband deployment to all citizens of their states. Those two entities obtain this proprietary information on a non-disclosure basis from the providers and are then able to target unserved or underserved areas of their states. It appeared to the Study Committee that the most efficient and most accurate way to obtain that information would be to engage a consultant to assist with that effort.

Connected Nation (www.connectednation.com) is a national nonprofit organization that has been engaged by a number of states to facilitate comprehensive technology expansion efforts that both enhance the supply of available technology/broadband and create demand by orchestrating a localized approach to technology expansion. Connected Nation agreed to assist the Study Committee, in a limited capacity, by determining where broadband is available in South Carolina. Connected Nation is still in the process of obtaining the information and the Study Committee anticipates supplementing this report with the Connected Nation report in the next few weeks.

The Study Committee finds that to fulfill its duties to assess the need for broadband services in unserved and underserved areas within the State and identify the types and locations of infrastructure and services required to satisfy the need for broadband services in those areas would require more time, expertise, and money than was given to the Study Committee. The Study Committee recommends that the State create a public-private partnership such as ConnectKentucky or e-NC Authority to promote the deployment and adoption of broadband services in South Carolina. The Study Committee further recommends that the State engage the services of a consultant to assist in the creation of such an entity, including the following issues:
(1) how to structure with respect to goals, duties, staffing, and funding;
(2) what actions, if any, should be taken to accelerate deployment of broadband services (grants, tax incentives, or other incentives);
(3) whether the focus of any broadband program be on increasing supply or demand, or both;
(4) whether there are any specific areas that should be targeted for accelerated deployment of broadband services;
(5) whether efforts should focus on accelerating deployment in unserved areas, without regard to demand for services;
(6) whether efforts should focus on accelerating deployment on underserved areas, whether they are in rural or urban areas;
(7) what actions, if any, should be taken to encourage the utilization of broadband services; and
(8) whether access to broadband services by residential or business consumers should be subsidized, who would receive any subsidies, and how those subsidies would be funded.
Because of its experience in assisting a number of other states in setting up such entities and because its familiarity and knowledge of South Carolina-specific data and information brought about by the research and mapping efforts that are currently underway for the Study Committee, the Study Committee recommends that the State consider engaging the services of Connected Nation.

B. FCC Spectrum Licenses

1.   FCC Licenses Held by Greenville Technical College and Trident Technical College

Trident Tech and Greenville Tech were awarded Title III grants from the U.S. Department of Education and built systems using Instructional Television Fixed Service (ITFS) technology to broadcast courses over the 2.5 GHz spectrum to their campuses in their service areas. Trident Tech's service area includes Berkeley, Charleston, and Dorchester Counties, all of which are within the Charleston BTA. Greenville Tech's service area of Greenville County is within the Greenville-Spartanburg BTA.

ETV's licenses cover the entire State, thus, overlay the licenses owned by Trident Tech and Greenville Tech. If it is the desire of the State to create a statewide wireless network over the 2.5 GHz spectrum, it can do so with the licenses owned by ETV. Allowing Trident Tech and Greenville Tech to lease their excess capacity should not in any way hinder the creation of a statewide wireless network. Since federal funds, not state funds, were utilized to build Trident Tech's and Greenville Tech's systems, it would be appropriate to allow both colleges to use the revenues received from leasing their excess capacity to maintain their systems and carry out their missions as educational institutions.

The Study Committee recommends that Greenville Tech and Trident Tech be authorized to proceed with the issuance of requests for proposals to lease excess spectrum capacity in compliance with all state and federal laws and regulations and in cooperation with the State Chief Information Officer. The Study Committee further recommends to the General Assembly that revenues received from the leasing of the excess capacity be retained by Greenville Tech and Trident Tech to be used in accordance with the mission and service area of each college, as defined by South Carolina law.

2.   FCC Licenses Held by ETV

Since the early 1980s, ETV has operated an instructional television fixed service (ITFS) delivery system that has produced and aired thousands of hours of K-12 educational programming. ETV created thirty-five Distance Educational Learning Centers to create and broadcast instructional videos and distance-learning classes that provide programming to all 85 school districts in the State. ETV's instructional television fixed service network is likely the most comprehensive ITFS network in the country and could be used by one or more commercial entities to provide wireless broadband services to all urban and rural areas in the State.

A number of options are available to the State for the leasing of ETV's excess capacity. The State could contract with one commercial entity to construct a statewide broadband network without any mandate to serve any particular areas, except any mandates imposed by the FCC. The State could contract with one commercial entity to construct a statewide broadband network with a mandate to serve all unserved and underserved areas in the State, including those in rural and urban areas. The State could contract with multiple commercial entities to construct a statewide broadband network by leasing licenses on a license-by-license basis or by grouping licenses in geographic areas of the State or by other means. The State could construct a statewide broadband network and allow open access to the network by commercial entities. Other options may be available.

The Study Committee recognizes the educational value and opportunities of the EBS spectrum and recommends that the General Assembly retain the services of an established national telecommunications consultant, such as The Yankee Group, to: (1) assist with the development of a request for proposal for the leasing of ETV's excess capacity that is designed such that the State receives the market rate for the excess capacity; (2) provide an estimate of the value of ETV's licenses to use the spectrum; and (3) provide an analysis of the various business models for leasing excess capacity on ETV's spectrum, including the expected costs and revenues if the State required a statewide build-out of ETV's spectrum, if there were no required build-out, and any other feasible model. The Study Committee recommends that the consultant be required to complete its report within 90 days after being retained.

III. CONCLUSION

The deployment and adoption of high-speed access to the Internet is an important issue for this State and the nation. The potential use of the 2.5 GHz spectrum licensed to ETV, Trident Tech, and Greenville Tech to provide high-speed access to the Internet should facilitate the progress toward the goal of providing all South Carolinians, regardless of their location, affordable access to broadband products and services as quickly as possible.

If you have any questions about this report, please contact any member or the staff of the Study Committee.
Respectfully submitted,

South Carolina Broadband Technology and Communications Study Committee

Members appointed by the President Pro Tempore of the Senate
Senator Luke A. Rankin, Sr.
Senator C. Bradley Hutto
Robert J. Barlow
Neil Mellen

Members appointed by the Speaker of the House
Representative Dwight A. Loftis (Minority Report attached)
Representative Phillip D. "Phil" Owens (Minority Report attached)
Mikell Harper, Esq.
Ted Creech

Members appointed by Governor
Kevin A. Hall, Esq.
Miriam O. Hair, representing the Municipal Association of South Carolina
Janet R. Claggett, representing the South Carolina Association of Counties

Ex-Officio Members
President of Trident Technical College, Designee: Kaye Koonce, Esq.
Secretary of Commerce, Designee: Gary Pennington, Esq.
President of South Carolina Educational Television Maurice "Moss" Bresnahan
State Chief Information Officer Jim Bryant, PhD. (non-voting member)
Executive Director of Office of Regulatory Staff, Designee: Katie Morgan/Nanette Edwards (non-voting member)
Director of the State Library David S. Goble   (non-voting member)

Broadband Study Committee Minority Report

This report is being presented due to the concern that the committee report does little more than hire a consultant to do another study and that the ninety day time allocated for such a study will risk loss of valuable communication licenses held at ETV. Facts and data concerning the viability of providing statewide wireless Internet connectivity are already in hand sufficient to begin a plan to meet the first FCC deadline of January 19, 2009 in have a plan in place and substantial implementation by May 1, 2011.

The committee report fails to inform the General Assembly that SC is one of two states in the nation that has this opportunity to continue to enact the mission of ETV to serve public education in SC in an innovative manner.
ETV enriches people's lives through programs and services that educate our children, engage our citizens, celebrate our culture, and share the thrill of discovery and the joy of learning through the combined power of television, radio, Internet and other multimedia assets.
ETV breaks down barriers to educational achievement by matching students' needs with the appropriate technology to meet those needs. A new transformational opportunity exists today through the ETV license with wireless capability for all schools in SC.
ETV provides a safe haven for children where they can develop a love of learning.
ETV contributes to a more efficient state government through cost-effective training and communications. Also, ETV provides the added value of a trusted, credible and highest ethical standards are met in delivering content and programming to the students of SC. A guarantee not provided for by the private sector.

While Senate staff repeatedly insisted that the General Assembly had "plenty of time" to meet the FCC requirements, ETV presenters testified as to the urgency to develop a plan to meet the impending deadlines of the FCC for the use of the 67 licenses. Nowhere in the report do we find these concerns expressed. While the report identifies the deadline dates from the FCC for use of the licenses, the report does not make the General Assembly aware of the fact that failure to meet the deadlines would result in the loss of these licenses.

We agree with the portion of the report that recommends that Trident Tec and Greenville Tec be allowed to lease the licenses held by those institutions, however we object to the discrimination of not allowing ETV in cooperation with the office of the CIO to proceed in the same manner. By withholding this authority the General Assembly holds hostage South Carolina's school children and rural South Carolinians from affordable Internet access. Logic would suggest that the discrimination is unwarranted and irrational and is propagated to protect incumbent vendors. The government of SC should not single out a business sector to grant special favor or protection at the expense of the pursuit of quality education for all children in our State. It also delays the advantage South Carolina could have in moving ahead of other states that are moving rapidly toward multi-layered cutting edge broadband connectivity. Continued delay, as per testimony of ETV's Chairman, could lessen the financial value the State could receive.

The example of Milwaukee, Wisconsin, is one that should be noted as exemplary in the usage of the license in the 2.5 spectrum owned by the University of Wisconsin-Milwaukee, Milwaukee public Schools and Milwaukee Area Technical College. They were used primarily for broadcasting television lessons in classrooms but in recent years they had switched to the Internet. They are converting to wireless broadband with a lease to a private vendor and each institution will receive $4.2 million up front and monthly payments of $55,000 that increase annually. Total payout to each institution is approximately $36 million over 30 years. The school system will use the lease royalties to buy wireless broadband services for all families of Milwaukee Public School students. This means services to schools and homes with no additional cost to the taxpayers of Milwaukee. SC has that same transformational opportunity with the usage of the ETV license. South Carolina, however, has five and one half times more license availability as Milwaukee.

The Committee report suggests that we follow the plan of Kentucky (Connect Kentucky). We agree only to the extent that we should look to a public private partnership, enabling us to relay on a private vendor(s) that is better able to keep pace with evolving technology and the cost of such.

The General Assembly should be made aware that South Carolina technology infrastructure is much superior to that of Kentucky for a more effective "network" of internet. According to a FCC report, South Carolina has approximately three (3) times the optical fiber as Kentucky (needed for backhaul for wireless), more miles of cable, approximately the same amount of DSL lines and in addition wireless Internet capabilities to cover the state from border to border and coast to the mountains. South Carolina should use all its technology assets to fullest advantage.

Connect Kentucky is funded by the state government. The Connect Kentucky Plan is plagued by slow speeds to end users, (SC speed currently higher). We see no indication of wireless interest and the composition of the" Connect Kentucky" board has been mostly incumbent vendors who's self interest keeps the organization from focusing on innovation in the technology arena as well as using the organization's non profit status to lobby with taxpayers dollars for more dollars for themselves.

In a public/private partnership we hope SC will learn from the flaws and mistakes of other states. SC is blessed with technology experts that are not current state vendors. Vendor roles should primarily focus on providing information and bidding on state RFP's not making the decision on limiting the access and multi layered technology spectrums. It's a reminder of the old adage of the "fox in the hen house".

For several years the Business School at the University of South Carolina, the Palmetto Institute and others have been warning that South Carolina cannot compete vigorously in the knowledge-based economy with its existing mix of industries and the quality of its economic foundations.

A knowledge-based economy must have the technology infrastructure on which to travel. Internet connectivity is vital to connect with the worldwide markets, virtual education, tele-working and increasingly important in connecting citizens to information that will enhance their lives.

It is the recommendation of this minority report that the General Assembly act on the urgent need to first provide every public school district and the children within them, affordable internet connectivity assisted by the use of the licenses held at ETV as well as government.

In conclusion, this minority report recommends the General Assembly should act to allow the lease of the ETV licenses and pursue implementation of a wireless Internet cloud over every public school in South Carolina and government entities. This report further recommends that ETV and the CIO move forward immediately with RFP's to meet federally imposed deadlines in order to retain these licenses.

Representative Dwight Loftis
Representative Phillip Owens

Received as information.

R. 185, H. 3379--ORDERED PRINTED IN THE JOURNAL

The SPEAKER PRO TEMPORE ordered the following Veto printed in the Journal:

February 6, 2008
The Honorable Robert W. Harrell, Jr.
Speaker of the House
506 Blatt Building
Columbia, South Carolina 29201

Dear Mr. Speaker and Members of the House:

I am hereby vetoing and returning without my approval H. 3379 (Word version), R. 185.

This bill would relax the qualification standards for the LIFE and Palmetto Fellow Scholarships for South Carolina students who attend an out-of-state high school.

My overriding concern regarding this bill, and for all pieces of legislation that reach my desk this year, will be the impact on spending in the budget. Over the long-term, we are faced with unfunded liabilities in the state's retirement system and the retiree health benefits that now exceed $20 billion.

In the short-term, the budget for the current fiscal year contains $270 million in annualizations, or one-time expenditures for recurring needs. In order to fund just those items alone in the next fiscal year requires revenue growth near four percent. According to the Board of Economic Adviser's most recent assessment for Fiscal Year 2008-2009, we will see revenue growth of only 3.2 percent. In short, that is going to require spending reductions and fiscal restraint in the coming budget. This is only compounded by the ongoing uncertainty of the economic picture nationwide.

Specific to this bill, we have urged the General Assembly to proceed cautiously on expanding the LIFE and Palmetto Fellows Scholarships for the simple reason that we need to maintain a sustainable course on spending. In the last 10 years, the number of LIFE scholarships has nearly doubled from 14,443 in 1998 to 27,916 last year. The Palmetto Fellows Scholarships have grown by 176 percent in the last eight years.

At the same time, the size of the scholarships has increased from $2,000 to $5,000 for the LIFE Scholarships and $2,500 to $6,700 for the Palmetto Fellows program. The net impact of these changes has increased scholarship spending from $38 million to $189 million - or almost 400 percent. To put it simply, these programs are growing faster than we can pay for them.

The implementation of the Lottery was intended to reduce the General Fund commitment to fund these commitments - but General Fund spending has actually increased by 60 percent since FY 2002-2003. The story doesn't get any better when you consider the fact that, just last fiscal year, total Lottery revenues fell by almost $50 million from the previous year, while the demand for LIFE and Palmetto Scholarships increased by almost $24 million during the same period. In addition, we think it's likely that the North Carolina Lottery - which is still less than two years old - will continue to have an increasingly negative effect on South Carolina revenues.

Last August, it was reported that the size of the Lottery scholarship might need to be reduced in the face of increasing competition from the North Carolina Lottery. At that time, Senate Finance Chairman Hugh Leatherman said, "Some day, we will have to cap the cost. The general fund cannot afford to have open-ended accounts like that."

I laid out some of these concerns when I vetoed similar legislation expanding these programs in 2004 and 2005, and I urge the General Assembly to sustain this veto and carefully examine the long-term sustainability of the current commitments to students in South Carolina.
  For all of the reasons outlined above, I am vetoing H. 3379, R. 185, and returning it without my signature.

Sincerely,
Mark Sanford
Governor

H. 4514--SENATE AMENDMENTS CONCURRED IN AND BILL ENROLLED

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

H. 4514 (Word version) -- Reps. Shoopman, Loftis, G. R. Smith, Cato, Bedingfield, Haskins, Hamilton, Rice, Allen, F. N. Smith, Taylor, Bannister and Leach: A BILL TO AMEND ACT 432 OF 1947, AS AMENDED, RELATING TO THE GREENVILLE HOSPITAL SYSTEM, ITS CREATION, BOARD, POWERS, AND DUTIES, SO AS TO INCREASE THE BOARD FROM SEVEN TO ELEVEN MEMBERS, TO REVISE THE DISTRICTS FROM WHICH THE MEMBERS MUST BE APPOINTED, TO REVISE THE NOMINATING PROCEDURES, AND TO PROVIDE TRANSITIONAL PROCEDURES; AND TO REPEAL SECTION 1 OF ACT 432 OF 1947 RELATING TO THE LEGISLATIVE FINDINGS CONCERNING THE NEED FOR GREENVILLE COUNTY TO TAKE OVER THE HOSPITAL OPERATED BY THE CITY OF GREENVILLE IN ORDER TO SERVE ALL THE RESIDENTS OF GREENVILLE COUNTY AND TO PROVIDE FOR THE ASSURANCES NECESSARY TO EFFECT THIS PLAN.

Rep. SHOOPMAN explained the Senate Amendments.

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

INVITATIONS

On motion of Rep. LEACH, with unanimous consent, the following were taken up for immediate consideration and accepted:

May 17, 2007
The Honorable Robert W. Leach, Sr.
Chairman, House Invitations Committee
503-A Blatt Building
Columbia, South Carolina 29201

Dear Chairman Leach:

On behalf of SakiTumi Grill and Sushi Bar, the Members and attaches of the House of Representatives are invited to a reception. This event will be held on Tuesday, February 19, 2008, from 6:00 p.m. until 7:30 p.m. at the SakiTumi Grill and Sushi Bar located at 807 Gervais Street.

Sincerely,
Wayne Klein, Partner

January 28, 2008
The Honorable Robert W. Leach, Sr.
Chairman, House Invitations Committee
503-A Blatt Building
Columbia, South Carolina 29201

Dear Chairman Leach:

On behalf of the Outdoor Advertising Association of South Carolina, the Members of the House of Representatives are invited to a luncheon. This event will be held on Tuesday, March 25, 2008, immediately upon adjournment of the House.

Sincerely,
S. Hunter Howard, Jr.
President and Chief Executive Officer

REPORT OF STANDING COMMITTEE

Rep. COOPER, from the Committee on Ways and Means, submitted a favorable report with amendments on:

H. 4494 (Word version) -- Reps. Harrell, Harrison, Cooper, Walker, Cato, Witherspoon, White and Gambrell: A BILL TO AMEND SECTION 2-75-5, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LEGISLATIVE FINDINGS CONCERNING RESEARCH CENTERS OF ECONOMIC EXCELLENCE, SO AS TO REVISE REFERENCES AS TO SOURCES OF FUNDS FOR ENDOWED PROFESSORSHIPS; TO AMEND SECTION 2-75-30, RELATING TO CENTERS OF EXCELLENCE MATCHING ENDOWMENT, SO AS TO PROVIDE THAT INTEREST EARNINGS OF THE ENDOWMENT MAY BE USED FOR PROGRAMMATIC SUPPORT IN ACCORDANCE WITH BOARD POLICIES AND GUIDELINES; TO AMEND SECTION 2-75-50, RELATING TO APPLICATION REQUIREMENTS, SO AS TO REVISE THE FUNDING DOCUMENTATION AN APPLICATION MUST CONTAIN; TO AMEND SECTION 2-75-90, AS AMENDED, RELATING TO MEETING MATCHING REQUIREMENT WITH PRIVATE OR FEDERAL FUNDS, SO AS TO DELETE OBSOLETE LANGUAGE; BY ADDING SECTION 2-75-100 SO AS TO ALLOW SENIOR RESEARCH UNIVERSITIES TO UTILIZE A PORTION OF NONSTATE MATCHING FUNDS TO PAY FOR INITIAL OPERATING COSTS; AND BY ADDING SECTION 2-75-110 SO AS TO ALLOW THESE UNIVERSITIES TO ACCEPT AND APPLY CASH EQUIVALENT AND IN-KIND DONATIONS FROM NONSTATE SOURCES.
Ordered for consideration tomorrow.

HOUSE RESOLUTION

The following was introduced:

H. 4663 (Word version) -- Reps. Funderburk, Agnew, Alexander, Allen, Anderson, Anthony, Bales, Ballentine, Bannister, Barfield, Battle, Bedingfield, Bingham, Bowen, Bowers, Brady, Branham, Brantley, Breeland, G. Brown, R. Brown, Cato, Chalk, Clemmons, Clyburn, Cobb-Hunter, Coleman, Cooper, Cotty, Crawford, Dantzler, Davenport, Delleney, Duncan, Edge, Erickson, Frye, Gambrell, Govan, Gullick, Hagood, Haley, Hamilton, Hardwick, Harrell, Harrison, Hart, Harvin, Haskins, Hayes, Herbkersman, Hiott, Hodges, Hosey, Howard, Huggins, Hutson, Jefferson, Jennings, Kelly, Kennedy, Kirsh, Knight, Leach, Limehouse, Littlejohn, Loftis, Lowe, Lucas, Mack, Mahaffey, McLeod, Merrill, Miller, Mitchell, Moody-Lawrence, Moss, Mulvaney, J. H. Neal, J. M. Neal, Neilson, Ott, Owens, Parks, Perry, Phillips, Pinson, E. H. Pitts, M. A. Pitts, Rice, Rutherford, Sandifer, Scarborough, Scott, Sellers, Shoopman, Simrill, Skelton, D. C. Smith, F. N. Smith, G. M. Smith, G. R. Smith, J. E. Smith, J. R. Smith, W. D. Smith, Spires, Stavrinakis, Stewart, Talley, Taylor, Thompson, Toole, Umphlett, Vick, Viers, Walker, Weeks, Whipper, White, Whitmire, Williams, Witherspoon and Young: A HOUSE RESOLUTION TO RECOGNIZE AND CONGRATULATE MRS. MARGARET LLOYD OF KERSHAW COUNTY ON BEING NAMED 2007 SOUTH CAROLINA WILDLIFE FEDERATION CONSERVATIONIST OF THE YEAR, AND TO EXPRESS THE APPRECIATION OF THE SOUTH CAROLINA HOUSE OF REPRESENTATIVES FOR HER CONTINUED GENEROSITY AS A BENEFACTOR OF THE PALMETTO STATE.

The Resolution was adopted.

INTRODUCTION OF BILLS

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

H. 4664 (Word version) -- Rep. Harrison: A BILL TO AMEND ARTICLE 17, CHAPTER 7, TITLE 20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ESTABLISHMENT OF THE SOUTH CAROLINA CHILDREN'S TRUST FUND, SO AS TO ELIMINATE DUPLICATIVE DUTIES OF THE ORGANIZATION AND REVISE ITS GOVERNANCE BY RECONSTITUTING THE BOARD OF TRUSTEES AS A BOARD OF DIRECTORS CONSISTING OF SEVENTEEN MEMBERS, INCLUDING ELEVEN AT-LARGE MEMBERS APPOINTED BY THE GOVERNOR FROM NOMINEES MADE BY THE CURRENT BOARD MEMBERS PLUS ONE MEMBER FROM EACH OF THE STATE'S CONGRESSIONAL DISTRICTS, AND TO DELETE VARIOUS QUALIFICATIONS FOR SERVICE ON THE BOARD OF DIRECTORS AND TERM LIMITS ON SERVICE.
Referred to Committee on Ways and Means

H. 4665 (Word version) -- Rep. Ott: A BILL TO AMEND SECTION 11-11-156, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE HOMESTEAD EXEMPTION FUND AND THE USES OF THE REVENUES THEREOF, SO AS TO REQUIRE AN AMOUNT EQUAL TO TWENTY-FIVE PERCENT OF ANY BALANCE REMAINING IN THE HOMESTEAD EXEMPTION FUND TO BE RETAINED IN THE FUND AND CARRIED FORWARD AS A RESERVE THAT MUST BE USED ONLY TO OFFSET SHORTFALLS IN THE FUND OTHERWISE REQUIRING AMOUNTS DUE SCHOOL DISTRICTS TO BE PAID FROM THE GENERAL FUND OF THE STATE, TO PROVIDE THAT THE REMAINING BALANCE MUST BE CREDITED TO THE NON-FEDERAL AID STATE HIGHWAY FUND AND USED FOR ROAD AND BRIDGE MAINTENANCE, AND TO DELETE THE REIMBURSED PROPERTY TAX CREDIT AS A USE OF THESE REVENUES.
Referred to Committee on Ways and Means

S. 741 (Word version) -- Senator Courson: A BILL TO AMEND CHAPTER 18, TITLE 27 OF THE 1976 CODE, RELATING TO THE UNIFORM UNCLAIMED PROPERTY ACT, TO REDUCE THE DORMANCY PERIOD FOR SECURITIES FROM SEVEN YEARS TO THREE YEARS, TO UPDATE A REFERENCE, AND TO ELIMINATE THE REQUIREMENT OF A CIVIL PENALTY FOR A PERSON WHO FAILS TO RENDER A REPORT, PERFORM A DUTY, OR DELIVER PROPERTY AS REQUIRED PURSUANT TO THIS CHAPTER.
Referred to Committee on Judiciary

S. 903 (Word version) -- Senators Campsen, McConnell and McGill: A BILL TO AMEND SECTION 1-15-10 OF THE 1976 CODE, RELATING TO APPOINTING THE MEMBERS OF THE COMMISSION ON WOMEN, TO PROVIDE THAT THE COMMISSION IS COMPOSED OF FIFTEEN MEMBERS APPOINTED BY THE GOVERNOR, WITH ONE MEMBER APPOINTED FROM EACH CONGRESSIONAL DISTRICT AND NINE MEMBERS FROM THE STATE AT-LARGE.
Referred to Committee on Judiciary

ROLL CALL

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

Agnew                  Alexander              Allen
Anderson               Anthony                Bales
Ballentine             Bannister              Barfield
Battle                 Bedingfield            Bingham
Bowen                  Bowers                 Brady
Branham                Brantley               Breeland
G. Brown               R. Brown               Cato
Chalk                  Clemmons               Clyburn
Cobb-Hunter            Coleman                Cooper
Crawford               Dantzler               Delleney
Erickson               Frye                   Funderburk
Gambrell               Gullick                Hagood
Haley                  Hamilton               Hardwick
Harrison               Hart                   Harvin
Hayes                  Herbkersman            Hiott
Hodges                 Hosey                  Howard
Huggins                Hutson                 Jefferson
Kelly                  Kirsh                  Knight
Leach                  Limehouse              Littlejohn
Loftis                 Lowe                   Lucas
Mack                   Mahaffey               McLeod
Merrill                Miller                 Mitchell
Moss                   Mulvaney               J. M. Neal
Ott                    Owens                  Parks
Perry                  Phillips               E. H. Pitts
M. A. Pitts            Rice                   Scarborough
Scott                  Shoopman               Simrill
Skelton                D. C. Smith            F. N. Smith
G. R. Smith            J. R. Smith            W. D. Smith
Spires                 Stavrinakis            Taylor
Thompson               Toole                  Umphlett
Vick                   Walker                 Weeks
White                  Williams               Witherspoon
Young

STATEMENT OF ATTENDANCE

I came in after the roll call and was present for the Session on Thursday, February 7.

Ralph Davenport                   G. Murrell Smith
William R. "Bill" Whitmire        W. E. "Bill" Sandifer
Douglas Jennings                  Bill Cotty
Jackson "Seth" Whipper            Lewis E. Pinson
Joseph Neal                       Tracy Edge
Thad Viers                        Denny Neilson
Gloria Haskins                    Jerry Govan

Total Present--114

LEAVE OF ABSENCE

The SPEAKER PRO TEMPORE granted Rep. HARRELL a leave of absence for the day.

LEAVE OF ABSENCE

The SPEAKER PRO TEMPORE granted Rep. TALLEY a leave of absence for the day due to family matters.

LEAVE OF ABSENCE

The SPEAKER PRO TEMPORE granted Rep. STEWART a leave of absence for the day.

LEAVE OF ABSENCE

The SPEAKER PRO TEMPORE granted Rep. DUNCAN a leave of absence for the day.

LEAVE OF ABSENCE

The SPEAKER PRO TEMPORE granted Rep. MOODY-LAWRENCE a leave of absence for the day.

LEAVE OF ABSENCE

The SPEAKER PRO TEMPORE granted Rep. GOVAN a temporary leave of absence.

LEAVE OF ABSENCE

The SPEAKER PRO TEMPORE granted Rep. COTTY a leave of absence for the remainder of the day due to a legal case scheduled this morning in the Administrative Court.

DOCTOR OF THE DAY

Announcement was made that Dr. Woodrow W. Long, Jr., of Greenville was the Doctor of the Day for the General Assembly.

SPECIAL PRESENTATION

Rep. VICK presented to the House the Cheraw High School "Braves" Varsity Football Team, the 2007 Class AA Champions, their coaches and other school officials.

SPECIAL PRESENTATION

Rep. KIRSH presented to the House the Clover High School "Blue Eagles" Varisty Football Team, the 2007 Class AAA Division II Champions, their coaches and other school officials.

CO-SPONSORS ADDED AND REMOVED

In accordance with House Rule 5.2 below:
"5.2   Every bill before presentation shall have its title endorsed; every report, its title at length; every petition, memorial, or other paper, its prayer or substance; and, in every instance, the name of the member presenting any paper shall be endorsed and the papers shall be presented by the member to the Speaker at the desk. A member may add his name to a bill or resolution or a co-sponsor of a bill or resolution may remove his name at any time prior to the bill or resolution receiving passage on second reading. The member or co-sponsor shall notify the Clerk of the House in writing of his desire to have his name added or removed from the bill or resolution. The Clerk of the House shall print the member's or co-sponsor's written notification in the House Journal. The removal or addition of a name does not apply to a bill or resolution sponsored by a committee."

CO-SPONSOR ADDED

Bill Number:   H. 3059 (Word version)
Date:   ADD:
02/07/08   WEEKS

CO-SPONSOR ADDED

Bill Number:   H. 4157 (Word version)
Date:   ADD:
02/07/08   TOOLE

CO-SPONSOR ADDED

Bill Number:   H. 4157 (Word version)
Date:   ADD:
02/07/08   HARDWICK

CO-SPONSOR ADDED

Bill Number:   H. 4157 (Word version)
Date:   ADD:
02/07/08   YOUNG

CO-SPONSOR ADDED

Bill Number:   H. 4157 (Word version)
Date:   ADD:
02/07/08   SIMRILL

CO-SPONSOR ADDED

Bill Number:   H. 4157 (Word version)
Date:   ADD:
02/07/08   G. M. SMITH

CO-SPONSOR ADDED

Bill Number:   H. 4157 (Word version)
Date:   ADD:
02/07/08   WEEKS

CO-SPONSOR ADDED

Bill Number:   H. 4157 (Word version)
Date:   ADD:
02/07/08   WILLIAMS

CO-SPONSOR ADDED

Bill Number:   H. 4243 (Word version)
Date:   ADD:
02/07/08   NEILSON

CO-SPONSOR ADDED

Bill Number:   H. 4363 (Word version)
Date:   ADD:
02/07/08   MCLEOD

CO-SPONSOR ADDED

Bill Number:   H. 4363 (Word version)
Date:   ADD:
02/07/08   HART

CO-SPONSOR ADDED

Bill Number:   H. 4363 (Word version)
Date:   ADD:
02/07/08   WEEKS

CO-SPONSOR ADDED

Bill Number:   H. 4442 (Word version)
Date:   ADD:
02/07/08   AGNEW

CO-SPONSOR ADDED

Bill Number:   H. 4474 (Word version)
Date:   ADD:
02/07/08   FRYE

CO-SPONSOR ADDED

Bill Number:   H. 4520 (Word version)
Date:   ADD:
02/07/08   SPIRES

CO-SPONSOR ADDED

Bill Number:   H. 4628 (Word version)
Date:   ADD:
02/07/08   SPIRES

CO-SPONSOR ADDED

Bill Number:   H. 4628 (Word version)
Date:   ADD:
02/07/08   WEEKS

CO-SPONSOR REMOVED

Bill Number:   H. 4662 (Word version)
Date:   REMOVE:
02/07/08   THOMPSON

CO-SPONSOR REMOVED

Bill Number:   H. 4539 (Word version)
Date:   REMOVE:
02/07/08   HOSEY

SENT TO THE SENATE

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

H. 3950 (Word version) -- Rep. Kennedy: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 97 TO TITLE 44 SO AS TO CREATE THE CHRONIC KIDNEY DISEASE INITIATIVE GOVERNING BOARD AND TO PROVIDE FOR ITS MEMBERSHIP, POWERS, AND DUTIES, INCLUDING MANAGING FUNDING AND IMPLEMENTING PROGRAMS TO EDUCATE THE PUBLIC AND HEALTH CARE PROFESSIONALS ABOUT KIDNEY DISEASE.

H. 3957 (Word version) -- Rep. Harvin: A BILL TO AMEND SECTION 44-39-20, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE BOARD OF THE DIABETES INITIATIVE OF SOUTH CAROLINA, SO AS TO DELETE THE REQUIREMENT THAT THE PRESIDENT OF THE SOUTH CAROLINA AFFILIATE OF THE AMERICAN DIABETES ASSOCIATION BE A MEMBER OF THE BOARD, AND TO PROVIDE THAT THE VICE PRESIDENT OF THE SOUTHEASTERN DIVISION OF THE AMERICAN DIABETES ASSOCIATION BE A MEMBER OF THE BOARD.

H. 3723 (Word version) -- Reps. Neilson, Anthony, Bales, Clyburn, Hodges, Hosey, Howard, Jefferson, Mack, Moss and Williams: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-17-155 SO AS TO REQUIRE EACH SCHOOL DISTRICT IN THIS STATE TO DEVELOP AND IMPLEMENT AN EXTERNAL DEFIBRILLATOR PROGRAM FOR EACH HIGH SCHOOL IN THE DISTRICT WHICH REQUIRES THAT SUCH A DEFIBRILLATOR IS PROVIDED ON THE GROUNDS OF EACH HIGH SCHOOL, THAT DISTRICT EMPLOYEES AND VOLUNTEERS REASONABLY EXPECTED TO USE THE DEVICE ARE TRAINED IN ITS USE, AND THAT THESE DEVICES ARE PERIODICALLY INSPECTED AND ANNUALLY MAINTAINED.

H. 4630 (Word version) -- Reps. Scott and Hart: A JOINT RESOLUTION TO CREATE A NEW GANG PREVENTION STUDY COMMITTEE TO CONTINUE THE WORK OF THE INITIAL GANG PREVENTION STUDY COMMITTEE TO ASSESS AND COMBAT THE STATE'S ONGOING GANG PROBLEM BY BRINGING TOGETHER STATE AGENCIES TO COORDINATE GANG REDUCTION PLANS AND MAKE FURTHER RECOMMENDATIONS ADDRESSING GANG-RELATED ACTIVITY IN THE STATE.

ORDERED ENROLLED FOR RATIFICATION

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

S. 775 (Word version) -- Senators Scott and Lourie: A JOINT RESOLUTION TO ESTABLISH THE MULTIPLE SCLEROSIS HEALTHCARE ACCESS STUDY COMMITTEE, TO PROVIDE FOR ITS MEMBERS, POWERS, AND DUTIES, AND TO DIRECT THE COMMITTEE TO STUDY THE AVAILABILITY OF HEALTH CARE SERVICES TO MULTIPLE SCLEROSIS PATIENTS IN THIS STATE AND REPORT ITS FINDINGS AND RECOMMENDATIONS TO THE GENERAL ASSEMBLY BY JANUARY 1, 2009, AT WHICH TIME THE STUDY COMMITTEE IS ABOLISHED.

S. 453--AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up:

S. 453 (Word version) -- Banking and Insurance Committee: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, SO AS TO ENACT THE "FINANCIAL IDENTITY FRAUD AND IDENTITY THEFT PROTECTION ACT", BY ADDING CHAPTER 20 TO TITLE 37 PROVIDING FOR PROTECTIONS IN CONNECTION WITH CONSUMER CREDIT-REPORTING AGENCIES AND WITH THE USE AND COMMUNICATION OF A CONSUMER'S SOCIAL SECURITY NUMBER, IMPOSITION OF A SECURITY FREEZE ON A CONSUMER'S CREDIT REPORT, PRESCRIPTION OF MEASURES FOR DISPOSAL OF PERSONAL IDENTIFYING INFORMATION AND DISCLOSURE OF UNAUTHORIZED ACCESS TO PERSONAL IDENTIFYING INFORMATION, AND CIVIL DAMAGES, INCLUDING ATTORNEY'S FEES AND COSTS AND INJUNCTIVE RELIEF; BY REDESIGNATING THE FAMILY PRIVACY PROTECTION ACT OF CHAPTER 2, TITLE 30, AS ARTICLE 1 AND BY ADDING ARTICLE 3 PROVIDING FOR PROTECTION OF PERSONAL IDENTIFYING INFORMATION PRIVACY IN CONNECTION WITH A PUBLIC BODY AND ITS USE AND COMMUNICATION OF A RESIDENT'S SOCIAL SECURITY NUMBER, PRESCRIPTION FOR DISCLOSURE OF SOCIAL SECURITY INFORMATION AND IDENTIFYING INFORMATION BY AND TO CERTAIN PUBLIC BODIES, PROHIBITION OF REQUIRING THE USE OF PERSONAL IDENTIFYING INFORMATION ON A MORTGAGE AND IN PREPARATION OF DOCUMENTS FOR PUBLIC FILING, AND PROCEDURE FOR REDACTING CERTAIN PERSONAL IDENTIFYING INFORMATION FROM PUBLIC RECORDS; BY ADDING SECTION 1-11-490 SO AS TO PROVIDE FOR DISCLOSURE BY AN AGENCY OF THIS STATE OF UNAUTHORIZED ACCESS TO OR ACQUISITION OF THE PERSONAL IDENTIFYING INFORMATION OF A RESIDENT WHOSE INFORMATION THE AGENCY OWNS OR LICENSES AND TO PROVIDE FOR CIVIL DAMAGES, ATTORNEY'S FEES, AND INJUNCTIVE RELIEF; BY ADDING SECTION 16-11-725 SO AS TO MAKE IT UNLAWFUL TO USE ANOTHER PERSON'S HOUSEHOLD GARBAGE FOR THE PURPOSE OF COMMITTING FINANCIAL OR IDENTITY FRAUD; BY ADDING SECTION 16-13-512 SO AS TO REGULATE THE USE OF A CARDHOLDER'S SOCIAL SECURITY NUMBER ON A CREDIT OR DEBIT CARD RECEIPT; BY ADDING SECTION 39-1-90 SO AS TO PROVIDE FOR DISCLOSURE BY A PERSON CONDUCTING BUSINESS IN THIS STATE OF UNAUTHORIZED ACCESS TO OR ACQUISITION OF THE PERSONAL IDENTIFYING INFORMATION OF A RESIDENT WHOSE INFORMATION THE PERSON OWNS OF LICENSES AND TO PROVIDE FOR CIVIL DAMAGES, ATTORNEY'S FEES, AND INJUNCTIVE RELIEF; BY AMENDING SECTION 16-13-510, AS AMENDED, RELATING TO THE OFFENSE OF FINANCIAL IDENTITY FRAUD, SO AS TO ADD THE ELEMENTS OF WILFULNESS AND KNOWLEDGE AND TO INCLUDE THE OFFENSE OF IDENTITY FRAUD AS THE USE OF ANOTHER'S INFORMATION TO AVOID LEGAL CONSEQUENCES OR TO OBTAIN EMPLOYMENT AND TO FURTHER DEFINE "IDENTIFYING INFORMATION"; AND TO REPEAL SECTION 16-13-515, RELATING TO IDENTITY FRAUD; AND TO PROVIDE VARIOUS EFFECTIVE DATES.

Rep. CLEMMONS proposed the following Amendment No. 2 (Doc Name COUNCIL\AGM\19073MM08), which was tabled:
Amend the bill, as and if amended, Section 37-20-160(J) as found in SECTION 2, page 453-7, lines 33-35, by deleting subsection (J) in its entirety and inserting:
/   (J)   A consumer reporting agency may not charge a consumer who has reason to believe that he is the victim of financial identity fraud, as evidenced by a copy of a valid police report, investigative report, or complaint made pursuant to Section 16-13-510, a fee for a request pursuant to subsections (A) and (G). A consumer reporting agency may charge a consumer who is not the victim of financial identity fraud a fee of no more than three dollars for a freeze or a removal of a freeze. /
Renumber sections to conform.
Amend title to conform.

Rep. CLEMMONS explained the amendment.
Rep. CRAWFORD spoke against the amendment.

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

Reps. TALLEY and CRAWFORD proposed the following Amendment No. 4 (Doc Name COUNCIL\AGM\19092MM08), which was adopted:
Amend the bill, as and if amended, Section 37-20-170 as found in SECTION 2, page 11, by deleting Section 37-20-170 in its entirety and inserting:
/   Section 37-20-170.   (A)   If a consumer disputes the accuracy of an item in the consumer's records with a consumer reporting agency, the consumer may give notice in writing to the consumer reporting agency specifying in what manner the report is inaccurate and the consumer reporting agency shall reinvestigate the inaccuracy at no charge to the consumer, provide the consumer with sufficient evidence that the information is true and accurate information as it relates to that consumer, and record the current status of the disputed information. The consumer reporting agency shall provide forms for that notice and shall assist a consumer in preparing the notice when requested.

(B)   Within thirty days after receiving a notice of inaccuracy, a consumer reporting agency shall deny or admit the inaccuracy to the consumer in writing. If the consumer reporting agency denies the inaccuracy, the consumer reporting agency shall include the following information with the written results of the reinvestigation:

(1)   the basis for the denial;

(2)   a copy of the consumer's file that is based on the consumer's file as revised as a result of the reinvestigation, including the business name and address of any furnisher of information who was contacted in connection with that information and, if reasonably available, the telephone number of the furnisher;

(3)   a notice that, if requested by the consumer, the consumer reporting agency shall provide the consumer with a description of the procedure used by the consumer reporting agency to determine the accuracy and completeness of the information; and

(4)   sufficient evidence that the information is true and accurate information as it relates to that consumer.

(C)   If the consumer reporting agency admits that the item is inaccurate, it shall correct the item in its records and, on request by the consumer, it shall inform any person who within the last six months has previously received a report containing that inaccurate information.

(D)   In addition to all other penalties that may be imposed, a consumer credit-reporting agency or other person that violates a provision of this chapter is liable for three times the amount of actual damages or five thousand dollars for each incident, whichever is greater, as well as reasonable attorney's fees and costs.

(E)   In addition to all other penalties that may be imposed, a consumer credit-reporting agency or other person that negligently violates this chapter is liable for the greater of actual damages or three thousand dollars for each incident, as well as reasonable attorney's fees and costs.

(F)   In addition to the damages assessed pursuant to subsections (D) and (E), if the injury is to the consumer's creditworthiness, credit standing, credit capacity, character, general reputation, employment options, or eligibility for insurance, and results from the failure to take inaccurate information off of a credit report and the failure is not corrected by the consumer credit-reporting agency within ten days after the entry of a judgment for damages, the assessed damages must be increased to one thousand dollars each day until the security freeze is imposed.

(G)   A consumer seeking damages pursuant to this section also may institute a civil action to enjoin and restrain future acts constituting a violation of this chapter.

(H)   The remedial provisions of this chapter are cumulative of and in addition to any other action at law and any action taken by the Department of Consumer Affairs pursuant to Chapter 6 of this title.

(I)   This section is not intended, and must not be construed, to confer liability on a person who acts reasonably and who does not act wilfully or negligent. /
Renumber sections to conform.
Amend title to conform.

Rep. CRAWFORD explained the amendment.
The amendment was then adopted.

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

S. 453--ORDERED TO BE READ THIRD TIME TOMORROW

On motion of Rep. CRAWFORD, with unanimous consent, it was ordered that S. 453 (Word version) be read the third time tomorrow.

H. 4520--DEBATE ADJOURNED

Rep. COOPER moved to adjourn debate upon the following Bill until Tuesday, February 12, which was adopted:

H. 4520 (Word version) -- Reps. Cooper, Harrell, Cobb-Hunter, Walker, Perry, Battle, Skelton, Thompson, Alexander, Ballentine, Edge, Harrison, Hayes, Limehouse, J. H. Neal, Ott, Owens, Williams and Spires: A BILL TO AMEND SECTION 59-147-30, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ISSUANCE OF REVENUE BONDS BY COLLEGES AND UNIVERSITIES, SO AS TO CLARIFY AND FURTHER SPECIFY WHAT FACILITIES ARE ELIGIBLE TO BE FINANCED UNDER THE HIGHER EDUCATION REVENUE BOND ACT; AND TO REPEAL SECTION 59-147-120 RELATING TO CERTAIN LIMITATIONS ON THE ISSUANCE OF REVENUE BONDS.

S. 598--POINT OF ORDER

The following Bill was taken up:

S. 598 (Word version) -- Senators Campsen, McConnell, Moore, Fair, Grooms, Ritchie, Verdin, Malloy, Bryant and Knotts: A BILL TO AMEND CHAPTER 12, TITLE 58, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CABLE TELEVISION, BY ADDING ARTICLE 4 SO AS TO ENACT THE "TELEVISION PROGRAMMING PROTECTION ACT" TO REQUIRE A CABLE OR VIDEO SERVICE PROVIDER TO BLOCK ALL VIDEO AND
AUDIO ON ANY CHANNEL THAT A SUBSCRIBER HAS NOT PURCHASED.

Rep. SANDIFER explained the Bill.

POINT OF ORDER

Rep. MULVANEY made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.

ORDERED TO THIRD READING

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

S. 964 (Word version) -- Senator Thomas: A BILL TO AMEND SECTION 34-3-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROHIBITION OF THE USE OF THE WORD "BANK" IN CONNECTION WITH A PURSUIT OTHER THAN BANKING, SO AS TO PROHIBIT THE USE OF A BANKING ENTITY'S LOGO OR NAME IN CONNECTION WITH A FINANCIAL TRANSACTION WITHOUT ITS WRITTEN CONSENT.

Rep. HALEY explained the Bill.

S. 1034 (Word version) -- Senator Courson: A JOINT RESOLUTION TO EXTEND THE DATE BY WHICH THE HIGHER EDUCATION TASK FORCE MUST SUBMIT RECOMMENDATIONS FOR THE HIGHER EDUCATION STATEWIDE STRATEGIC PLAN TO THE GENERAL ASSEMBLY UNTIL SEPTEMBER 15, 2008.

Rep. WALKER explained the Joint Resolution.

S. 964--ORDERED TO BE READ THIRD TIME TOMORROW

On motion of Rep. HALEY, with unanimous consent, it was ordered that S. 964 (Word version) be read the third time tomorrow.

S. 1034--ORDERED TO BE READ THIRD TIME TOMORROW

On motion of Rep. WALKER, with unanimous consent, it was ordered that S. 1034 (Word version) be read the third time tomorrow.

H. 3059--POINT OF ORDER

The following Bill was taken up:

H. 3059 (Word version) -- Reps. M. A. Pitts, Haskins, Umphlett, Mahaffey, Sandifer, Haley, Viers and Weeks: A BILL TO AMEND SECTION 16-17-725, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO GIVING FALSE INFORMATION TO A LAW ENFORCEMENT OFFICER OR A MEMBER OF THE FIRE DEPARTMENT OR RESCUE SQUAD, SO AS TO ADD THAT IT IS UNLAWFUL TO GIVE FALSE INFORMATION OR IDENTIFICATION TO A LAW ENFORCEMENT OFFICER FOR THE PURPOSE OF AVOIDING ARREST OR CRIMINAL CHARGES.

POINT OF ORDER

Rep. G. M. SMITH made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.

H. 3816--AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up:

H. 3816 (Word version) -- Reps. G. M. Smith, Weeks and G. Brown: A BILL TO AMEND SECTION 15-41-30, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROPERTY EXEMPT FROM ATTACHMENT, LEVY, AND SALE, SO AS TO INCREASE THE AMOUNT OF DEBTOR'S INTEREST IN CERTAIN DELINEATED PROPERTIES THAT ARE EXEMPT FROM ATTACHMENT, LEVY, AND SALE UNDER ORDER OF A COURT OR AS A RESULT OF A BANKRUPTCY PROCEEDING.

The Judiciary Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\MS\7520AHB08), which was adopted:
Amend the bill, as and if amended, by deleting Section 15-41-30(A)(2), as contained in SECTION 1, page 2, lines 11 and 12, and inserting:
/     (2)   The debtor's interest, not to exceed one five thousand two hundred dollars in value, in one motor vehicle. /
Amend the bill further, deleting Section 15-41-30(A)(7), as contained in Section 1, page 2, lines 34 through 37, and inserting:
/     (7)   The debtor's aggregate interest in any property, not to exceed five thousand dollars in value of an unused exemption amount to which the debtor is entitled pursuant to subsection (A), items (1) through (6). /
Amend the bill further, by deleting Section 15-41-30(B), as contained in SECTION 1, page 4, lines 7 through 18, and inserting:
/   (B)   Beginning on July 1, 2008, and each even-numbered year thereafter, each dollar amount in subsection (A), items (1) through (14), immediately before July first, must be adjusted to reflect the change in the Southeastern Consumer Price Index, All Urban Consumers, as published by the Department of Labor, Bureau of Labor Statistics, for the most recent year ending immediately before January first preceding July first, and to round to the nearest twenty-five dollars, the dollar amount that represents this change. No later than March first of each even-numbered year, the Economic Research Section of the Office of Research and Statistics of the Budget and Control Board shall publish in the State Register the dollar amounts that will become effective on July first of each even-numbered year." /
Renumber sections to conform.
Amend title to conform.

Rep. HAGOOD explained the amendment.
The amendment was then adopted.

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

H. 3816--ORDERED TO BE READ THIRD TIME TOMORROW

On motion of Rep. HAGOOD, with unanimous consent, it was ordered that H. 3816 (Word version) be read the third time tomorrow.

H. 4363--POINT OF ORDER

The following Bill was taken up:

H. 4363 (Word version) -- Reps. Harrison, G. M. Smith, Delleney, Bales, McLeod, Hart and Weeks: A BILL TO AMEND SECTION 1-23-660, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ESTABLISHMENT OF THE DIVISION OF MOTOR VEHICLE HEARINGS WITHIN THE ADMINISTRATIVE LAW COURT, SO AS TO MAKE TECHNICAL CHANGES, DELETE THE PROVISION THAT REQUIRES THE ADMINISTRATIVE LAW COURT TO HIRE AND SUPERVISE A LAW CLERK TO ASSIST THE JUDGES WHO HEAR DEPARTMENT OF MOTOR VEHICLE HEARING APPEALS WITH THE ADMINISTRATION OF THOSE APPEALS, TO PROVIDE THAT IF THE DEPARTMENT OF MOTOR VEHICLES ELECTS TO NOT APPEAR AT CERTAIN HEARINGS, IT WAIVES ITS RIGHT TO APPEAL A FINAL DECISION OF A HEARING OFFICER, TO DELETE THE PROVISION THAT REQUIRES THE DEPARTMENT OF MOTOR VEHICLES TO PROVIDE FACILITIES FOR CERTAIN ADMINISTRATIVE HEARINGS, TO PROVIDE THAT THE STATE ETHICS COMMISSION IS RESPONSIBLE FOR THE ENFORCEMENT AND ADMINISTRATION OF CERTAIN APPELLATE COURT RULES AND FOR THE ISSUANCE OF CERTAIN ADVISORY OPINIONS, TO PROVIDE THAT CERTAIN PERSONS MAY ATTEND CERTAIN JUDICIAL-RELATED OR BAR-RELATED FUNCTIONS, AND TO DELETE THE PROVISION THAT ALLOWS THE CHIEF ADMINISTRATIVE LAW JUDGE TO ADJUDICATE CASES UNDER SECTION 1-23-600; TO AMEND SECTION 56-1-10, AS AMENDED, RELATING TO THE DEFINITION OF TERMS RELATING TO MOTOR VEHICLES, SO AS TO MAKE TECHNICAL CHANGES; TO AMEND SECTION 56-1-170, RELATING TO THE ISSUANCE OF RESTRICTED DRIVER'S LICENSE, SO AS TO DELETE THE PROVISION THAT PROVIDES THAT A HOLDER OF A RESTRICTED DRIVER'S LICENSE IS ENTITLED TO A HEARING UPON A SUSPENSION OR REVOCATION OF HIS LICENSE, AND TO PROVIDE THAT A HOLDER OF THE LICENSE MAY REQUEST A HEARING BEFORE THE OFFICE OF MOTOR VEHICLE HEARINGS UNDER CERTAIN CIRCUMSTANCES; TO AMEND SECTION 56-1-820, RELATING TO A DRIVER'S LICENSE HOLDER'S REQUEST FOR A HEARING AFTER HAVING RECEIVED A NOTICE OF SUSPENSION, SO AS TO MAKE TECHNICAL CHANGES; TO AMEND SECTION 56-1-1030, AS AMENDED, RELATING TO THE REVOCATION OF THE LICENSE OF A HABITUAL OFFENDER, SO AS TO MAKE TECHNICAL CHANGES, AND TO PROVIDE THAT THE OFFICE OF MOTOR VEHICLE HEARINGS HAS EXCLUSIVE JURISDICTION TO CONDUCT A HABITUAL OFFENDER DRIVER'S LICENSE REVOCATION HEARING; TO AMEND SECTION 56-1-1090, AS AMENDED, RELATING TO THE ISSUANCE OF A DRIVER'S LICENSE TO A HABITUAL OFFENDER, SO AS TO MAKE TECHNICAL CHANGES; TO AMEND SECTION 56-5-2942, RELATING TO THE IMMOBILIZATION OF A VEHICLE OWNED BY A PERSON WHO HAS BEEN CONVICTED OF CERTAIN DRIVING OFFENSES, SO AS TO REVISE THE PROCEDURE WHEREBY THE DEPARTMENT OF MOTOR VEHICLES PERMITS OR DENIES THE RELEASE OF AN IMMOBILIZED VEHICLE, AND WHEREBY AN OWNER OF A VEHICLE MAY SEEK RELIEF FROM A DECISION TO HAVE A VEHICLE IMMOBILIZED; TO AMEND SECTION 56-5-2951, AS AMENDED, RELATING TO THE SUSPENSION OF THE DRIVER'S LICENSE OF A PERSON WHO REFUSES TO SUBMIT TO TESTING TO DETERMINE HIS LEVEL OF ALCOHOL CONCENTRATION, SO AS TO MAKE TECHNICAL CHANGES; TO AMEND SECTION 56-5-2952, AS AMENDED, RELATING TO THE FILING FEE TO REQUEST AN ADMINISTRATIVE HEARING, SO AS TO MAKE TECHNICAL CHANGES; TO AMEND SECTION 56-9-60, AS AMENDED, RELATING TO SELF-INSURER'S FOR MOTOR VEHICLES, SO AS TO MAKE TECHNICAL CHANGES RELATING TO THE CANCELLATION OF A SELF-INSURER'S STATUS; TO AMEND SECTION 56-9-363, AS AMENDED, RELATING TO CERTAIN FORMS PRESCRIBED BY THE DEPARTMENT OF MOTOR VEHICLES, SO AS TO MAKE TECHNICAL CHANGES; TO AMEND SECTION 56-10-510, RELATING TO THE REGISTRATION OF AN UNINSURED MOTOR VEHICLE, SO AS TO MAKE TECHNICAL CHANGES; TO AMEND SECTION 56-10-530, RELATING TO AN UNINSURED VEHICLE INVOLVED IN CERTAIN ACCIDENTS, SO AS TO MAKE TECHNICAL CHANGES; TO AMEND SECTION 56-15-350 AND SECTION 56-16-180, BOTH AS AMENDED, RELATING TO THE DENIAL OF, THE ISSUANCE OF, SUSPENSION, AND REVOCATION OF A DRIVER'S LICENSE, SO AS TO MAKE TECHNICAL CHANGES.

POINT OF ORDER

Rep. WEEKS made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.

OBJECTION TO RECALL

Rep. GULLICK asked unanimous consent to recall H. 4368 (Word version) from the Committee on Judiciary.
Rep. CRAWFORD objected.

S. 588--SENATE AMENDMENTS CONCURRED IN AND BILL ENROLLED

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

S. 588 (Word version) -- Senators McConnell, Lourie, Rankin, Land, Ritchie, Cromer and Ford: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 38-71-1345, 38-71-1355, 38-71-1365, AND 38-71-1445 SO AS TO PROVIDE REQUIREMENTS, POWERS, DUTIES, AND RESTRICTIONS OF A SMALL EMPLOYER HEALTH GROUP COOPERATIVE, AND PROVIDE THAT THE SOUTH CAROLINA DEPARTMENT OF INSURANCE AND OFFICE OF RESEARCH AND STATISTICS OF THE BUDGET AND CONTROL BOARD SHALL SUBMIT A REPORT TO THE OFFICE OF THE GOVERNOR AND THE GENERAL ASSEMBLY BY JANUARY 1, 2010, ON THE EFFECTIVENESS OF THE HEALTH GROUP COOPERATIVE IN EXPANDING THE AVAILABILITY OF HEALTH INSURANCE COVERAGE FOR SMALL EMPLOYERS; AND BY AMENDING SECTIONS 38-71-1320, 38-71-1330, 38-71-1340, AND 38-71-1350, RELATING TO SMALL EMPLOYER HEALTH INSURANCE AVAILABILITY, SO AS TO PROVIDE THAT SMALL EMPLOYERS MAY FORM A COOPERATIVE FOR THE PURPOSE OF PROVIDING HEALTH INSURANCE TO THEIR EMPLOYEES, PROVIDE FOR THE DEFINITION OF "HEALTH GROUP COOPERATIVE", AND PROVIDE FOR THE GROUP SIZE FOR A HEALTH GROUP COOPERATIVE.

Rep. CATO explained the Senate Amendments.

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

RETURNED TO THE SENATE WITH AMENDMENTS

The following Bill was taken up, read the third time, and ordered returned to the Senate with amendments:

S. 360 (Word version) -- Senator Grooms: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 48-52-215 TO DEFINE "RENEWABLE ENERGY RESOURCES" FOR PURPOSES OF THE SOUTH CAROLINA ENERGY EFFICIENCY ACT.

H. 4641--ADOPTED AND SENT TO SENATE

The following Concurrent Resolution was taken up:

H. 4641 (Word version) -- Rep. Jennings: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION NAME THE MARLBORO COUNTY DEPARTMENT OF TRANSPORTATION MAINTENANCE AND ENGINEERING OFFICE BUILDING LOCATED ON SOUTH CAROLINA HIGHWAY 38, IN THE CITY OF BENNETTSVILLE, THE "WADE R. CROW MAINTENANCE AND ENGINEERING OFFICE BUILDING", AND PLACE APPROPRIATE MARKERS OR SIGNS AT THIS BUILDING THAT CONTAIN THE WORDS "WADE R. CROW MAINTENANCE AND ENGINEERING OFFICE BUILDING".

Whereas, Mr. Wade R. Crow has served as Chairman of the Marlboro County Transportation Committee since its inception in 1995, was a Department of Transportation Commissioner, a former Mayor of the City of Bennettsville, a former member of the Marlboro County Council, and a former member of the South Carolina House of Representatives; and

Whereas, as a tribute to his many years of service to the citizens of Marlboro County and the State of South Carolina, it would be fitting and proper for the members of the General Assembly to name the Marlboro County Department of Transportation Maintenance and Engineering Office Building located in the City of Bennettsville in his honor. Now, therefore,

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

That the members of the General Assembly request that the Department of Transportation name the Marlboro County Department of Transportation Maintenance and Engineering Office Building located on South Carolina Highway 38, in the City of Bennettsville, the "Wade R. Crow Maintenance and Engineering Office Building", and place appropriate markers or signs at this building that contain the words "Wade R. Crow Maintenance and Engineering Office Building".

Be it further resolved that a copy of this resolution be forwarded to the Department of Transportation.

The Concurrent Resolution was adopted and sent to the Senate.

Rep. SIMRILL moved that the House do now adjourn, which was agreed to.

RETURNED WITH CONCURRENCE

The Senate returned to the House with concurrence the following:

H. 4652 (Word version) -- Reps. Williams, Ballentine, Haley, Breeland, Jefferson, Jennings, Knight, Neilson, Phillips, J. R. Smith and Weeks: A CONCURRENT RESOLUTION TO RECOGNIZE THE SOUTH CAROLINA SCHOOL IMPROVEMENT COUNCILS FOR THIRTY YEARS OF FOSTERING DIRECT CIVIC ENGAGEMENT IN PUBLIC EDUCATION.

ADJOURNMENT

At 11:08 a.m. the House, in accordance with the motion of Rep. HUGGINS, adjourned in memory of Margaret Ann Eckstrom, sister of Comptroller General Richard Eckstrom, to meet at 10:00 a.m. tomorrow.

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