WEDNESDAY, JANUARY 26, 2000

Wednesday, January 26, 2000

(Statewide Session)

Indicates Matter Stricken

Indicates New Matter

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

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

Beloved, hear more from the Book of Judges, Chapter 17, to paraphrase, “The Living Bible.”

“In the Hill country of Ephraim lived a man named Micah.

One day he said to his mother, ‘That thousand dollars you thought

was stolen from you, and you were cursing about... well, I stole

it!’

‘God bless you for confessing it,’ his mother replied...”

(For in those days Israel had no king, so everyone did whatever he wanted -- whatever seemed right in his own eyes.)

Let us pray.

Our Father, we like to talk to You before we talk to each other about our problems and decisions.

Give to each of us the blessed gifts of Your Holy Spirit.

Enlighten and quicken our consciences and enable our wills to vote according to our spirit-guided consciences... even though it may not be the popular thing to do.

Somehow, we feel we sleep better that way.

Amen.

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

COMMUNICATION RECEIVED

State of South Carolina

Office of the Secretary of State

1205 Pendleton Street, Suite 525

Columbia, SC 29201

January 26, 2000

Mr. Frank Caggiano

Clerk of the Senate

P. O. Box 142

Columbia, SC 29201

Dear Mr. Caggiano:

The State Election Commission has certified to this office that the Honorable Scott Richardson received the greatest number of votes cast for the Senate in a special election held in Beaufort County on January 18, 2000.

Honorable Scott Richardson is hereby certified as the duly and properly elected member of the Senate for Senate District #46.

Sincerely,

/s/ Jim Miles

Secretary of State

MOTION ADOPTED

In the absence of the PRESIDENT Pro Tempore, on motion of Senator J. VERNE SMITH, with unanimous consent, the Senate agreed that the business of filling committee vacancies and changes in members’ desk assignments, as provided under the Rules of the Senate, be postponed until Wednesday, February 2, 2000.

SEATING SELECTION

On motion of Senator J. VERNE SMITH, with unanimous consent, Senator RICHARDSON was seated in vacant Seat #38.

Remarks by Senator RICHARDSON

On motion of Senator HOLLAND, with unanimous consent, Senator RICHARDSON was recognized to address brief remarks to the Senate.

MESSAGE FROM THE GOVERNOR

The following appointments were transmitted by the Honorable James H. Hodges:

Initial Appointment, South Carolina Residential Builders Commission, with term to commence June 30, 1996, and to expire June 30, 2000:

4th Congressional District:

Gale Batson Crawford, Crawford Properties, 3304 White Horse Rd., Greenville, S.C. 29611 VICE Levis L. Gilstrap

Referred to the Committee on Labor, Commerce and Industry.

Reappointment, South Carolina Residential Builders Commission, with term to commence June 30, 2000, and to expire June 30, 2004:

4th Congressional District:

Gale Batson Crawford, Crawford Properties, 3304 White Horse Road, Greenville, S.C. 29611

Referred to the Committee on Labor, Commerce and Industry.

Leave of Absence

On motion of Senator J. Verne Smith, at 11:10 A.M., Senator DRUMMOND was granted a leave of absence for today.

Leave of Absence

On motion of Senator HUTTO, at 11:10 A.M., Senator GREGORY was granted a leave of absence for today.

HOUSE BILL RETURNED AND COMMITTED

S.199 -- Senators J.Verne Smith, Wilson, Giese and Reese: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 2072915 SO AS TO REQUIRE THE DEPARTMENT OF SOCIAL SERVICES TO ISSUE A REGISTRATION STATEMENT FOR A RELIGIOUS DAY CARE CENTER WHEN REQUIREMENTS ARE MET AND TO REQUIRE THE CENTER OPERATOR TO DISPLAY THE REGISTRATION AND USE ITS REGISTRATION NUMBER IN ADVERTISEMENTS; TO AMEND SECTION 2072700, AS AMENDED, RELATING TO DEFINITIONS UNDER DAY CARE LICENSING, SO AS TO REVISE THE DEFINITIONS OF “CHILD DAY CARE FACILITIES”, “GROUP DAY CARE HOME”, AND “FAMILY DAY CARE HOME”, AND TO ADD DEFINITIONS; TO AMEND SECTION 2072780, RELATING TO LICENSES OF CHILD DAY CARE CENTERS AND GROUP DAY CARE HOMES, SO AS TO REQUIRE STATING THE LICENSE NUMBER IN ADVERTISEMENTS; TO AMEND SECTION 2072860, AS AMENDED, RELATING TO FAMILY DAY CARE HOME REGISTRATIONS, SO AS TO REQUIRE STATING THE REGISTRATION NUMBER IN ADVERTISEMENTS; TO AMEND SECTION 2072900, AS AMENDED, RELATING TO REGISTRATION OF CERTAIN CHURCH OR RELIGIOUS DAY CARE CENTERS, SO AS TO REQUIRE THEM TO COMPLY WITH INSPECTION PROCEDURES AND WITH REQUIREMENTS FOR FLOOR SPACE, CHILDSTAFF RATIOS, AND STAFF TRAINING; TO AMEND SECTION 2072910, RELATING TO REGISTRATION AND INSPECTIONS OF CHURCH OR RELIGIOUS DAY CARE CENTERS, SO AS TO REQUIRE INSPECTIONS TO BE CONDUCTED BEFORE RENEWAL RATHER THAN ANNUALLY; TO AMEND SECTION 2072920, AS AMENDED, RELATING TO INJUNCTIONS AGAINST CHILD DAY CARE CENTERS AND GROUP DAY CARE HOMES, SO AS TO REVISE CONDITIONS FOR SEEKING AN INJUNCTION AGAINST AN OPERATOR; AND TO AMEND SECTION 2073030, RELATING TO DECLARATORY ORDERS OF THE DEPARTMENT OF SOCIAL SERVICES CONCERNING CONSTRUCTION OR RENOVATIONS OF A FACILITY, SO AS TO DELETE THE PROVISION PROHIBITING AN APPEAL OF THESE ORDERS AND REQUIRE THE DEPARTMENT TO PROVIDE CONSULTATION TO ADDRESS ISSUES OF COMPLIANCE.

The House returned the Bill with amendments.

Senator J. VERNE SMITH asked unanimous consent to take the Bill up for immediate consideration.

There was no objection.

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

Senator J. VERNE SMITH asked unanimous consent to commit the Bill to the Committee on Labor, Commerce and Industry.

There was no objection.

The Bill was ordered committed to the Committee on Labor, Commerce and Industry.

INTRODUCTION OF BILLS AND RESOLUTIONS

The following were introduced:

S.1075 -- Senators Setzler, Bryan, Leventis, Thomas, J.VerneSmith, Waldrep, Courtney, Giese, Moore, Elliott, Martin, Saleeby, Courson, Wilson, Grooms, Ravenel, Anderson, Hutto, McGill, Peeler, Hayes, Matthews, Ryberg, Rankin, Short and Holland: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 592565 SO AS TO PROVIDE THAT ALL CERTIFIED TEACHERS WHO ARE EMPLOYED BY A SCHOOL DISTRICT TO TEACH IN THE CLASSROOM SHALL RECEIVE ONE HUNDRED DOLLARS EACH SCHOOL YEAR TO OFFSET EXPENSES INCURRED BY THEM FOR TEACHING SUPPLIES AND MATERIALS DIRECTLY RELATED TO THE EDUCATION OF THE STUDENTS.

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Senator Setzler spoke on the Bill.

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

S.1076 -- Senators Fair, Thomas and J.VerneSmith: A BILL TO AMEND SECTION 1615385, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DISSEMINATING HARMFUL MATERIAL TO MINORS, SO AS TO DELETE PUBLIC LIBRARY FROM THE LIST OF GOVERNMENT AGENCIES CARRYING OUT THEIR LEGITIMATE FUNCTIONS WHO ARE GRANTED AN AFFIRMATIVE DEFENSE FROM PROSECUTION UNDER THIS SECTION.

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

S.1077 -- Senator Giese: A CONCURRENT RESOLUTION TO DESIGNATE WEDNESDAY, APRIL 5, 2000, AS “DISABILITIES DAY”, TO ENDORSE THE “B.A.C.COFFEE DAY FOR PEOPLE WITH DISABILITIES” PROJECT AND OTHER OUTSTANDING PROGRAMS OF EASTER SEALS SOUTH CAROLINA, AND TO PROVIDE FOR A JOINT SESSION OF THE GENERAL ASSEMBLY IN THE HALL OF THE HOUSE OF REPRESENTATIVES AT 11:30 A.M. ON WEDNESDAY, APRIL 5, 2000, AT WHICH TIME THE STATE EASTER SEAL REPRESENTATIVES AND THEIR PARENTS WILL BE PRESENTED TO THE GENERAL ASSEMBLY.

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

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

ORDERED ENROLLED FOR RATIFICATION

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

H.3994 -- Reps. Barfield, Edge, Keegan, Kelley and Witherspoon: A BILL TO AMEND SECTION 77320, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO VOTING PRECINCTS IN HORRY COUNTY, SO AS TO REDESIGNATE THESE PRECINCTS, DESIGNATE A MAP NUMBER ON WHICH LINES OF THESE PRECINCTS ARE DELINEATED, AND PROVIDE THAT POLLING PLACES FOR THESE PRECINCTS MUST BE DETERMINED BY THE HORRY COUNTY BOARD OF REGISTRATION AND ELECTIONS WITH THE APPROVAL OF A MAJORITY OF THE HORRY COUNTY LEGISLATIVE DELEGATION.

THIRD READING BILL

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

S.1034 -- Senators Leatherman, Glover, Elliott, Land, McGill and Saleeby: A BILL TO AMEND SECTION 77260, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO VOTING PRECINCTS IN FLORENCE COUNTY, SO AS TO COMBINE THE BACK SWAMP AND QUINBY PRECINCTS AND REDESIGNATE A MAP NUMBER ON WHICH THE LINES OF THESE PRECINCTS ARE DELINEATED.

SECOND READING BILLS

WITH NOTICE OF GENERAL AMENDMENTS

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

S.437 -- Senators McConnell, Matthews, Courtney, Patterson, Reese, Hayes, Jackson and Passailaigue: A BILL TO AMEND SECTION 3843106, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CONTINUING EDUCATION REQUIREMENTS FOR INSURANCE AGENTS, SO AS TO PERMIT, RATHER THAN REQUIRE, THE DEPARTMENT OF INSURANCE TO PROMULGATE REGULATIONS PRESCRIBING THE PARAMETERS OF THE CONTINUING EDUCATION REQUIREMENTS AND CHANGE THE COMPOSITION OF THE ADVISORY COMMITTEE; TO AMEND SECTION 3877580, AS AMENDED, RELATING TO THE SOUTH CAROLINA REINSURANCE FACILITY, SO AS TO CHANGE THE COMPOSITION OF THE FACILITY’S GOVERNING BOARD; TO PROVIDE THAT NOTHING INVOLVED IN THE AMENDMENT OF SECTION 3877580 IN THIS ACT SHALL BE CONSTRUED TO AFFECT OR CHANGE THE REPEAL OF THIS SECTION AS SCHEDULED FOR JANUARY 1, 2006; TO AMEND SECTION 3891130, RELATING TO THE ADVISORY BOARD FOR THE JOINT UNDERWRITING ASSOCIATION FOR PRIVATE PASSENGER AND COMMERCIAL AUTOMOBILE INSURANCE, SO AS TO CHANGE THE METHOD OF CHOOSING BOARD MEMBERS AND PROVIDE FOR RELATED MATTERS; TO PROVIDE THAT NOTHING INVOLVED IN THE AMENDMENT OF SECTION 3891130 IN THIS ACT SHALL BE CONSTRUED TO AFFECT OR CHANGE (1) THE PROVISION IN SECTION 20(B) OF ACT 154 OF 1997 THAT STATES THAT CHAPTER 91 OF TITLE 38 SHALL CEASE TO BE OF ANY FORCE OR EFFECT AFTER FEBRUARY 28, 2003, OR (2) ANY OTHER PROVISION CONTAINED IN SECTION 20(B) OF ACT 154 OF 1997; AND TO REPEAL SECTION 3877585, RELATING TO ADDITIONAL GOVERNING BOARD MEMBERS OF THE REINSURANCE FACILITY, UPON THE EFFECTIVE DATE OF THIS ACT NOTWITHSTANDING THE PROVISIONS OF SECTION 30 OF ACT 154 OF 1997 REGARDING THE REPEAL OF ARTICLE 5, CHAPTER 77 OF TITLE 38 ON JANUARY 1, 2006.

S.934 -- Senators McConnell, Matthews, Courtney, Patterson, Reese, Hayes, Jackson, Passailaigue, Rankin and Glover: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 3877144 SO AS TO PROVIDE THAT THERE IS NO PERSONAL INJURY PROTECTION (PIP) COVERAGE MANDATED UNDER THE AUTOMOBILE INSURANCE LAWS OF SOUTH CAROLINA, AND PROVIDE THAT, IF AN INSURER SELLS NOFAULT INSURANCE COVERAGE WHICH INCLUDES PERSONAL INJURY PROTECTION, MEDICAL PAYMENT COVERAGE, OR ECONOMIC LOSS COVERAGE, SUCH COVERAGE SHALL NOT BE ASSIGNED OR SUBROGATED AND IS NOT SUBJECT TO A SETOFF.

Senator McCONNELL explained the Bill.

S.1026 -- Senators McConnell, Matthews, Courtney, Patterson, Reese, Hayes, Jackson and Passailaigue: A BILL TO AMEND SECTION 38120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS USED IN TITLE 40 PERTAINING TO INSURANCE, SO AS TO ADD THE DEFINITIONS FOR “EXEMPT COMMERCIAL POLICIES”; TO AMEND SECTION 3831100, AS AMENDED, RELATING TO THE ORDER IN WHICH CLAIMANTS MUST EXHAUST THEIR RIGHTS UNDER INSURANCE POLICIES WHEN A CLAIMANT HAS COVERAGE UNDER MORE THAN ONE POLICY, SO AS TO ESTABLISH LIMITS ON THE AMOUNT A CLAIMANT MAY COLLECT FROM THE SOUTH CAROLINA PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION IF THE CLAIM IS AGAINST AN INSOLVENT INSURER; TO AMEND SECTION 386120, AS AMENDED, RELATING TO REQUIRING AN INSURER TO HAVE ALL POLICIES, CONTRACTS, AND CERTIFICATES APPROVED BY THE DIRECTOR OF THE DEPARTMENT OF INSURANCE, SO AS TO PROVIDE THAT THIS PARTICULAR REQUIREMENT DOES NOT APPLY TO EXEMPT COMMERCIAL POLICIES; BY ADDING SECTION 386125 SO AS TO PROVIDE CERTAIN FILING REQUIREMENTS FOR EXEMPT COMMERCIAL POLICIES, CONTRACTS, AND CERTIFICATES; TO AMEND SECTION 387310, AS AMENDED, RELATING TO THE PURPOSE OF THE CHAPTER REGULATING PROPERTY, CASUALTY, INLAND MARINE, AND SURETY RATES AND RATEMAKING ORGANIZATIONS, SO AS TO INCLUDE IN THESE PURPOSES PROVIDING FOR REASONABLE COMPETITION AMONG COMMERCIAL PROPERTY AND CASUALTY INSURERS OF INSUREDS MAKING LARGE INSURANCE PURCHASES; TO AMEND SECTIONS 3873340 AND 3873520, BOTH AS AMENDED, AND BOTH RELATING TO REQUIRING INSURERS TO FILE RATES AND RATING SCHEDULES AND PLANS, SO AS TO EXEMPT LARGE COMMERCIAL POLICIES FROM THIS REQUIREMENT; TO AMEND SECTION 3873910, AS AMENDED, RELATING TO PROCEDURES FOR OBTAINING A RATE INCREASE, SO AS TO EXEMPT COMMERCIAL POLICIES FROM THESE PROCEDURES.

Senator McCONNELL explained the Bill.

S.1027 -- Senators McConnell, Matthews, Courtney, Patterson, Reese, Hayes, Jackson and Passailaigue: A BILL TO ENACT THE “PROTECTED CELL INSURANCE COMPANY ACT” INCLUDING PROVISIONS TO AMEND TITLE 38, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INSURANCE, BY ADDING CHAPTER 10, SO AS TO, AMONG OTHER THINGS, AUTHORIZE AN INSURANCE COMPANY TO CREATE AND SEGREGATE AN IDENTIFIED POOL OF ASSETS AND LIABILITIES FROM THE REMAINDER OF THE COMPANY’S ASSETS AND LIABILITIES FOR THE PURPOSE OF ACCESSING ALTERNATIVE SOURCES OF CAPITAL AND ACHIEVING BENEFITS OF INSURANCE SECURITIZATIONS; TO PROVIDE PROCEDURES FOR ESTABLISHING PROTECTED CELL COMPANIES; TO PROVIDE FOR THE USE AND OPERATION OF PROTECTED CELLS; AND TO PROVIDE FOR THE AVAILABILITY OF PROTECTED CELL ASSETS TO CREDITORS AND OTHER CLAIMANTS.

Senator McCONNELL explained the Bill.

S.1040 -- Senators McConnell, Matthews, Courtney, Patterson, Reese, Hayes, Jackson and Passailaigue: A BILL TO AMEND TITLE 38, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INSURANCE, BY ADDING CHAPTER 90, SO AS TO PROVIDE FOR THE REGULATION AND OPERATION OF CAPTIVE INSURANCE COMPANIES, INCLUDING AMONG OTHER THINGS THE SCOPE OF BUSINESS THAT MAY BE CONDUCTED; REQUIREMENTS FOR INCORPORATION, LICENSURE, FINANCIAL RESPONSIBILITY, AND ANNUAL REPORTS; PROVIDING FOR PERIODIC INSPECTIONS AND EXAMINATIONS OF THE COMPANY’S AFFAIRS; ESTABLISHING GROUNDS FOR LICENSE SUSPENSION AND REVOCATION, SETTING FORTH INVESTMENT REQUIREMENTS; ESTABLISHING PREMIUM TAXES; AND PROVIDING THE PROCEDURES FOR CONVERSIONS AND MERGERS OF CERTAIN CAPTIVE INSURANCE COMPANIES WITH RECIPROCAL INSURERS.