TUESDAY, MAY 22, 2001

Tuesday, May 22, 2001

(Statewide Session)

Indicates Matter Stricken

Indicates New Matter

The Senate assembled at 12:00 Noon., 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, today is a wonderful time to read St. Paul’s words to the Philippians, Chapter 2:12ff.:

“... work out your own salvation with fear and trembling; for God is at work in you, both to will and to work for His good pleasure... that you may be blameless and innocent, children of God without blemish in the midst of a crooked and perverse generation, among whom you shine as lights in the world.”

Let us pray.

What wonderful prospects, Lord, for Your children who love, trust and obey!

Make us worthy!

Amen.

Point of Quorum

At 12:02 P.M., Senator HUTTO made the point that a quorum was not present. It was ascertained that a quorum was not present.

RECESS

At 12:03 P.M., on motion of Senator HUTTO, the Senate receded from business pending the presence of a quorum.

At 12:10 P.M., a quorum being present, the Senate resumed.

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 James H. Hodges:

Statewide Appointments

Initial Appointment, Central Drought Response Committee, with term to commence March 1, 2000, and to expire March 1, 2004

Agricultural

Victor Eugene Cornette, M.D., Reedy Fork Farms, 110 Griffin Mill Road, Piedmont, S.C. 29673

Referred to the Committee on Agriculture and Natural Resources.

Initial Appointment, Southern Drought Response Committee, with term to commence March 1, 2000, and to expire March 1, 2004

Soil and Water Conservation

Marion L. Rizer, 2778 Confederate Highway, Lodge, S.C. 29082

Referred to the Committee on Agriculture and Natural Resources.

Initial Appointment, South Carolina State Commission on Higher Education, with term to commence July 1, 1998, and to expire July 1, 2002

6th Congressional District

Vermelle Jamison Johnson, Ph.D., 691 Bramble Lane NE, Orangeburg, S.C. 29115 VICE Frank Gilbert

Referred to the Committee on Education.

Reappointment, South Carolina State Commission on Higher Education, with term to commence July 1, 2002, and to expire July 1, 2006

6th Congressional District

Vermelle Jamison Johnson, Ph.D., 691 Bramble Lane NE, Orangeburg, S.C. 29115

Referred to the Committee on Education.

Initial Appointment, John De La Howe School Board of Trustees, with term to commence April 1, 2001, and to expire April 1, 2006

At-Large

Joanne Montague, 600 University Ridge, #41, Greenville, S.C. 29601 VICE James L. Victor

Referred to the Committee on Education.

Initial Appointment, South Carolina Commission on Women, with term to commence October 18, 2001, and to expire October 18, 2005

At-Large

Lilly Stern Filler, M.D., 218 Southlake Road, Columbia, S.C. 29223 VICE Beverly A. Carroll

Referred to the Committee on Judiciary.

Reappointment, South Carolina State Commission for Minority Affairs, with term to commence June 30, 2001, and to expire June 30, 2005

At-Large

Jerry Leo Finney, 1110 Woodrow Street, Columbia, S.C. 29205

Referred to the Committee on Judiciary.

Initial Appointment, South Carolina Board of Juvenile Parole, with term to commence June 30, 2001, and to expire June 30, 2005

At-Large

DeAndrea D. Gist, 943 Betsy Drive, Columbia, S.C. 29210 VICE William J. Capers

Referred to the Committee on Judiciary.

Initial Appointment, South Carolina State Ethics Commission, with term to commence June 30, 2001, and to expire June 30, 2006

At-Large

John Samuel West, 1 Riverwood Drive, Moncks Corner, S.C. 29461 VICE Richard V. Davis

Referred to the Committee on Judiciary.

Initial Appointment, Board of Directors of the Jobs-Economic Development Authority, with term to commence July 27, 1998, and to expire July 27, 2001

6th Congressional District

Jerome Stephens "Steve" Bilton, President & CEO Jim Bilton Ford, 5866 West Jim Bilton Blvd., St. George, S.C. 29477 VICE Chester A. Duke-moved to 1st

Referred to the Committee on Labor, Commerce and Industry.

Reappointment, Board of Directors of the Jobs-Economic Development Authority, with term to commence July 27, 2001, and to expire July 27, 2004

6th Congressional District

Jerome Stephens "Steve" Bilton, President & CEO Jim Bilton Ford, 5866 West Jim Bilton Blvd., St. George, S.C. 29477

Referred to the Committee on Labor, Commerce and Industry.

Initial Appointment, South Carolina State Board of Social Work Examiners, with term to commence November 27, 2000, and to expire November 27, 2004

Master Social Worker

Mary Frances Brown Curlee, 1274 Beechcreek Road, Lexington, S.C. 29072 VICE John R. Kennedy

Referred to the Committee on Labor, Commerce and Industry.

Initial Appointment, South Carolina State Housing, Finance and Development Authority, with term to commence August 15, 2001, and to expire August 15, 2005

At-Large

Clente Flemming, 200 Hastings Point Drive, Columbia, S.C. 29203 VICE James J. Kerr

Referred to the Committee on Labor, Commerce and Industry.

Initial Appointment, South Carolina Board of Real Estate Appraisers, with term to commence May 31, 2001, and to expire May 31, 2004

Appraiser - General

Edward Frank "Buddy" Hucks, MAI, SRA, E. F. Hucks & Associates, Inc., 4710 Oleander Drive, Suite 1, Myrtle Beach, S.C. 29577 VICE Herbert R. Sass

Referred to the Committee on Labor, Commerce and Industry.

Initial Appointment, South Carolina Advisory Council on Aging, with term to commence June 30, 1999, and to expire June 30, 2003

At-Large

Sarah E. Deitsch, Ph.D., Medical University of South Carolina, 99 Jonathan Lucas Street, Charleston, S.C. 29425

Referred to the Committee on Medical Affairs.

Initial Appointment, South Carolina Commission on Disabilities and Special Needs, with term to commence June 30, 2001, and to expire June 30, 2005

4th Congressional District

Issac B. Dickson, Jr., 109 Lakeland Avenue, Moore, S.C. 29369 VICE William E. Walsh

Referred to the Committee on Medical Affairs.

Initial Appointment, South Carolina State Agency of Vocational Rehabilitation, with term to commence March 15, 1996, and to expire March 15, 2003

3rd Congressional District

Timothy W. Evatt, Esquire, 2036 Five Forks Road, Pendleton, S.C. 29670 VICE Harry W. Findley

Referred to the Committee on Medical Affairs.

Initial Appointment, South Carolina Commission on Disabilities and Special Needs, with term to commence June 30, 2001, and to expire June 30, 2005

3rd Congressional District

Ronald Forrest, 112 Sheldon Avenue, Greenwood, S.C. 29649 VICE Emilie A. Towler

Referred to the Committee on Medical Affairs.

Reappointment, South Carolina Mental Health Commission, with term to commence July 31, 1998, and to expire July 31, 2003

5th Congressional District

Douglas F. Gay, 337 Plantation Road, Rock Hill, S.C. 29732

Referred to the Committee on Medical Affairs.

Initial Appointment, South Carolina Advisory Council on Aging, with term to commence June 30, 1999, and to expire June 30, 2003

At-Large

Seneca Brewton Henry, 113 Walters Road, Irmo, S.C. 29063 VICE Dave C. Waldrop

Referred to the Committee on Medical Affairs.

Reappointment, South Carolina Board of Long Term Health Care Administrators, with term to commence June 9, 2001, and to expire June 9, 2004

Nursing Home Administrators - Hospital

Melvin Kenneth Hiatt, Allendale County Hospital, P. O. Box 218, Fairfax, S.C. 29827

Referred to the Committee on Medical Affairs.

Initial Appointment, South Carolina Advisory Council on Aging, with term to commence June 30, 1997, and to expire June 30, 2001

Area 3

James Lee Jewell, M.D., C.M.D., Jewell Family and Elder Medicine, PA, 1236 Ebenezer Road, Rock Hill, S.C. 29732

Referred to the Committee on Medical Affairs.

Reappointment, South Carolina Advisory Council on Aging, with term to commence June 30, 2001, and to expire June 30, 2005

Area 3

James Lee Jewell, M.D., C.M.D., Jewell Family and Elder Medicine, PA, 1236 Ebenezer Road, Rock Hill, S.C. 29732

Referred to the Committee on Medical Affairs.

Reappointment, Board of the South Carolina Department of Health and Environmental Control, with term to commence June 30, 2001, and to expire June 30, 2005

4th Congressional District

Mark B. Kent, 350 Riverside Dr., Greenville, S.C. 29605

Referred to the Committee on Medical Affairs.

Initial Appointment, South Carolina State Agency of Vocational Rehabilitation, with term to commence March 15, 2001, and to expire March 15, 2008

2nd Congressional District

Rhonda Jocelyn Presha, 92 Westridge Road, Elgin, S.C. 29045 VICE Phillip J. Canders

Referred to the Committee on Medical Affairs.

Initial Appointment, Board of Directors of the Gift of Life Trust Fund, with term to commence April 1, 2000, and to expire April 1, 2004

George P. Sawyer, Jr. Ph.D., 425 Law Street, Hartsville, S.C. 29550 VICE Franklin G. Mason

Referred to the Committee on Medical Affairs.

Initial Appointment, Board of Directors of the Gift of Life Trust Fund, with term to commence April 1, 1999, and to expire April 1, 2003

Robert L. Smith, 128 Knightsbridge Drive, Charleston, S.C. 29418-3094

Referred to the Committee on Medical Affairs.

Initial Appointment, Board of Directors of the South Carolina Public Service Authority, with term to commence May 15, 2001, and to expire May 15, 2008

2nd Congressional District

John R. Jordan, Cherokee, Inc., 6928 Cheval Street, Columbia, S.C. 29209 VICE Leon Goodall

Referred to the Committee on Judiciary.

REGULATION WITHDRAWN AND RESUBMITTED

The following was received:

Document No. 2564

Agency: Department of Education

Subject: Accreditation Criteria

Received by Lieutenant Governor January 23, 2001

Referred to Education Committee

Legislative Review Expiration May 23, 2001

Revised June 11, 2001

HEPW Requested Withdrawal May 3, 2001

120 Day Period Tolled

Withdrawn and Resubmitted May 22, 2001

Doctor of the Day

Senator RAVENEL introduced Dr. H. Del Schutte of Charleston, S.C., Doctor of the Day.

Expression of Personal Interest

Senator FORD rose for an Expression of Personal Interest.

Expression of Personal Interest

Senator RAVENEL rose for an Expression of Personal Interest.

Privilege of the Chamber

On motion of Senator J. VERNE SMITH, with unanimous consent, the Privilege of the Chamber, to that area of the Chamber behind the rail, was extended to Mr. J. Todd White, Principal of Mitchell Road Elementary School, and his party. Mr. White was commended by the Senate for being named the 2001 National Distinguished Principal and awarded the 2001 Milken National Outstanding Educator Award.

CARRIED OVER

H. 3687--GENERAL APPROPRIATION BILL

Having voted on the prevailing side, Senator MOORE moved to reconsider the vote whereby H. 3687, the General Appropriation Bill, was given a third reading on Friday, May 18, 2001.

On motion of Senator LEATHERMAN, with unanimous consent, the motion to reconsider was carried over.

HOUSE AMENDMENTS

AMENDED, CARRIED OVER

S.559 -- Finance Committee: A BILL TO AMEND SECTION 123690, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEFINITION OF “GROSS PROCEEDS OF SALES” FOR PURPOSES OF THE SOUTH CAROLINA SALES TAX ACT, SO AS TO PROVIDE THAT GROSS PROCEEDS OF SALES DO NOT INCLUDE INTEREST, FEES, OR CHARGES IMPOSED ON A CUSTOMER FOR LATE PAYMENT OF A BILL FOR ELECTRICITY OR NATURAL GAS, OR BOTH, WHETHER OR NOT SALES TAX IS REQUIRED TO BE PAID ON THE UNDERLYING BILL.

The House returned the Bill with amendments.

Amendment No. 1

Senator PASSAILAIGUE proposed the following Amendment No. 1 (RESMIN559-01.ELP), which was adopted:

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

/SECTION1.A.Section 123690(2) of the 1976 Code is amended by adding an appropriately lettered sub item at the end to read:

“( )interest, fees, or charges however described, imposed on a customer for late payment of a bill for electricity or natural gas, or both, whether or not sales tax is required to be paid on the underlying electricity or natural gas bill.”

B.Notwithstanding the general effective date of this act, this section takes effect upon approval by this act by the Governor and applies with respect to retail sales occurring on or after that date and sales before that date for all periods remaining open for the assessment of taxes by agreement or by operation of law. However, a refund is not due a taxpayer of sales and use tax paid on interest, fees, or charges, however described, imposed on a customer for late payment of a bill for electricity or natural gas, or both, before the effective date of this section.

SECTION2.Section 12362120(28)(a) of the 1976 Code, as last amended by Act 399 of 2000, is further amended to read:

“(a)medicine and prosthetic devices sold by prescription, prescription medicines used in the treatment of renal disease, prescription medicines and therapeutic radiopharmaceuticals used in the treatment of cancer, lymphoma, leukemia, or related diseases, including prescription medicines used to relieve the effects of any such treatment, and free samples of prescription medicine distributed by its manufacturer and any use of these free samples.”

SECTION3.Section 12362120(32) of the 1976 Code is amended to read:

“(32) natural,propane, and liquefied petroleum gas and electricity used exclusively in the production of poultry, livestock, swine, and milk and to produce agricultural plants in greenhouses that subsequently will be replanted;”

SECTION4.Section 12362120 of the 1976 Code is amended by adding two appropriately numbered items at the end to read:

“( )wheelchairs;

( )prosthetic devices and replacement parts for such devices not exempted pursuant to item (28) of this section.”

SECTION5.A.Section 12362120 of the 1976 Code is amended by adding an appropriately numbered item at the end to read:

( )food items eligible for purchase with United States Department of Agriculture food coupons, provided that this exemption takes effect July 1, 2001. The exemption allowed by this item does not apply to a local sales and use tax imposed pursuant to a referendum held before July 1, 2001, except where a local sales and use tax specifically exempts these items. The exemption allowed by this item applies to a local sales and use tax imposed pursuant to a referendum held after June 30, 2001. Beginning in fiscal year 20012002 and each fiscal year thereafter a portion of all general fund revenues equal to one hundred and twenty percent of the amount of general fund revenue collected from the imposition of sales and use tax on food items eligible for purchase with United States Department of Agriculture food coupons during the last complete fiscal year the full five percent tax was imposed is deemed state sales and use tax revenue and must be used as provided in Section 59211010(A) and (B), including the appropriate amount required to be credited to the Education Act Improvement Fund;

B.Notwithstanding the general effective date of this act, this section takes effect July 1, 2001.

SECTION6.This act takes effect upon approval by the Governor./

Amend title to conform

Senator PASSAILAIGUE explained the amendment.

Senator PASSAILAIGUE moved that the amendment be adopted.

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

Ayes 27; Nays 14

AYES

AlexanderAndersonBranton

CoursonElliott*Fair

FordGroomsHawkins

HollandHuttoLeventis

McConnellO'DellPassailaigue

PeelerPinckneyRankin*

RavenelReese*Richardson

RitchieRybergSaleeby

SetzlerThomasWilson

Total--27

NAYS

BauerDrummondGregory

HayesLandMartin

MatthewsMcGillMescher

MoorePattersonSmith, J. Verne

VerdinWaldrep

Total--14

Amendment No. 1 was adopted.

Statement by Senator HAYES

I support eliminating the tax on food in South Carolina, but S. 559 is not the appropriate vehicle to do this, since the tax reduction in this Bill would cost the State approximately $300 million without directing which state programs are to be cut. Thus, in my opinion, voting for the PASSAILAIGUE amendment would not be the responsible way to eliminate this tax and, accordingly, I voted against the amendment.

Statement by Senator MARTIN

I voted against the Senate amendment by Senator PASSAILAIGUE. We gave third reading to the General Appropriation Bill last Friday afternoon, and it did not provide for even the one-cent reduction in sales tax on food. It would be irresponsible to enact an immediate elimination of the sales tax on food as the resulting loss of nearly $300 million in revenue coupled with the cuts already made to state government would be extreme. Also, I honestly don’t know how our three budget conferees could represent a consistent position of the Senate during the budget debate when the budget and S. 559 reflect opposite positions on the sales tax issue.

Statement by Senator LEATHERMAN

I did not support Senator PASSAILAIGUE’s amendment to S. 559 concerning sales tax relief on food because this is not a responsible action to take this year. I have always supported tax relief for our citizens. However, we are facing a $500 million shortfall in our budget and the passage of this amendment would add an additional $267 million to this shortfall. I am in favor of eliminating the sales tax on food in a responsible manner and will revisit this issue next year when we expect the economy to improve.

Statement by Senator McCONNELL

I voted for the five cents food tax cut amendment because I support the cut. However, I subsequently found out that if the tax cut were five cents, the Bill would go back to the Finance Committee for review and thus, we might not even have a vehicle with which to adopt the 1% food tax cut as sought by the House in the budget without a two-thirds vote. Let me explain. If our conferees agreed to the House version of the Appropriation Bill with the one cent cut, it would take a two-thirds vote to comply with Rule 24 to insert a permanent law change in the Bill. Under our Rules, no matter which amends or suspends, permanent law may be inserted in the Appropriation Bill in conference without a two-thirds vote of the Senate. Thus, to insert the one-cent tax cut from the House Bill, one must get a two-thirds vote in the Senate or amend a Bill before the Senate like the one we are considering. If this Bill is amended to a five cent cut, then the Appropriation Bill, which we have just approved, is out of balance $250 million dollars. Either we go without an Appropriation Bill or we have the conference committee cut this much out or get a free conference vote of two-thirds of the Senate to include permanent law changes of one percent. Those are our alternatives. To get free conference will require a two-thirds vote which will be impossible to get on a $50 million cut with only eight days remaining. To try and cut sales tax exemptions to raise the money will require debate and action with about eight days left and beyond the car exemption $300 limit, most are for carefully considered purposes, which will provoke prolonged debate. This means certain gridlock. Doing this at this late date thus greatly insures that the Calendar can be blocked and days wasted. There are those who do not wish there to be a “Sine Die” and apparently want reapportionment in the courts or a special session without limitations on the agenda. For some, it all appears to be a stall and not a real vote on tax relief. For others, their intentions are genuine, but they are inadvertently being used to make relief less possible. The timing in the last days signals that clearly; otherwise, this fight would have been launched in the budget debate or earlier this year on this Bill or another.

Statement by Senator Moore