January 16, 2009
The first regular session of the 118th S.C. General Assembly convened Jan. 13. This is the first year of the new two-year session. South Carolina is battling a historic budget crisis, and the state budget will be the dominant issue when the session begins.
Lawmakers' immediate priority is to deal with a statewide budget deficit that continues to grow as the economy worsens and the unemployment rate rises. At the forefront will be budget making and dealing with even more cuts than the $1.6 billion that has already been reduced from the $7 billion plan passed in June 2008. Retaining funds for tourism promotion and securing funds for Interstate 73 may be the best that local legislators can expect to get for their districts.
The House of Representatives has prefiled 116 bills; the Senate, 180 bills. Here's a preview of some of the key proposals and other activities:
Interstate 73
Legislators will try to identify a regular source of income for the highway that would be Horry County's first interstate link. They also want to make sure it is included in any federal infrastructure money coming to the states. Soon, the proposed economic stimulus plan will provide South Carolina billions of dollars for primarily roadway and bridge projects. Department of Transportation leaders are developing a wish list of roadway projects. Yet I-73, which DOT named as a top construction priority, has not been included. If the money does not go to I-73, it will be used for projects in Charleston and Columbia. The roadway would also mean new jobs.
Call to Action
We invite you to let your voice be heard on I-73. Log on to www.CreateJobsNow.com and tell us what you think.
Tourism Promotion
Lawmakers hope to keep the 2-for-1 matching grant fund for destination promotion in place, despite anticipated budget cuts. Currently, $5 million has been set aside in this fiscal year's budget ending June 30, and the Myrtle Beach area is receiving half.
Immigration Reform
Under an anti-illegal immigration measure signed in June 2008, businesses must verify their new hires are in the country legally or face civil fines of up to $1,000 per worker. The state can also temporarily shut down businesses if their owners knowingly employ illegal workers: up to a month for the first violation and at least five years on the fourth. Employers can sign up for E-Verify, the federal online database, which is free for businesses and only requires Internet access. The phased-in requirements started Jan. 1 for businesses that employ more than 500 employees and have public contracts involving manual labor. The requirement applies to businesses with more than 100 workers July 1. All other businesses must comply by July 2010.
Cigarette Tax
The House will first address proposals to raise the state's cigarette tax of 7 cents per pack, the lowest in the nation. The national average is $1.19 a pack. During the last session, the legislature approved an increase of 50 cents per pack, but Gov. Mark Sanford vetoed it. Legislators are proposing that the tax pay for the expansion of state Medicaid programs and smoking cessation programs, while Sanford wants the revenue to fund income tax cuts. The amount to raise the tax and how to spend the proceeds remain topics of discussion for this session.
Smoking Bans
The statewide smoking ban issue continues. Rep. John King, D-Rock Hill, filed a bill calling for a statewide ban on smoking in any place that serves alcohol. Rep. Todd Rutherford, D-Columbia, extended the smoking ban to restaurants and recreation areas.
Payday Lending
Legislators are looking to outlaw or strictly limit payday lending. Rep. Alan Clemmons, R-Myrtle Beach, has introduced H. 3048, which allows payday lending on only one paycheck at a time and caps interest at 36 percent.
Education
The outdated education funding formula is a statewide issue that is expected to be addressed. Clemmons proposes a new funding formula, which would be based primarily on a per-pupil amount, with more money for each special-needs or impoverished student. The current formula is complicated and convoluted and has been criticized for short-changing poor school districts and fast-growing ones.
Health
Rep. Thad Viers, R-Myrtle Beach, is proposing that restaurants and hotels be required to screen employees for contagious diseases.
Recycling
Sen. Raymond Cleary, R-Murrells Inlet, has filed a bill to create mandatory state-run recycling program for bars.
Roll-Call Voting
The General Assembly is now requiring recorded roll-call voting on nearly all legislation. In the House, lawmakers push a button, either yes or no, displaying their vote on an electronic screen in the chamber and into the public record. In the past, all votes were recorded as a "yes" unless members informed the clerk afterward that the vote should be changed to "no." The new voting process will bring more credibility and transparency to the voting process.
Tax Research Commission
Under new legislation, Senate Democrats will push to create a permanent, 11-member Tax Research Commission to study the state's tax structure, local revenue laws and sales tax exemptions. The goal is to make the state more financially sound and less dependent on sales tax income.
Department of Transportation Commission
Sen. Harvey Peeler, R-Gaffney, filed a bill to dissolve the Department of Transportation Commission, assigning its duties to the new state secretary of transportation appointed by the governor.
Department of Health and Environmental Control
Both the House and Senate have introduced bills to make DHEC a Cabinet agency under direct control of the governor, dissolving the seven-member governing board. Supporters say this would bring greater accountability. Currently, DHEC's board hires a commissioner to run the 36-year-old department. The governor appoints board members but has no control once members take office. Fourteen of the state's 82 departments are directly under the governor's control as a result of restructuring in the early 1990s, but DHEC was not one of them.
Other General Assembly Tidbits
The November 2008 General Election yielded only one change, which was in the House. Rep. George Hearn, R-Conway, replaces Billy Witherspoon in District 105. Witherspoon retired after 16 years in the House, six of them as the head of the Agriculture and Natural Resources Committee.
A change in committee assignments gives Horry and Georgetown counties four members on a key House panel and more influence over legislation. The members are serving on the House Judiciary Committee, the panel that reviews about 40 percent of all legislation. The shift occurred when Hearn was assigned to Judiciary and Rep. Vida Miller, D-Pawleys Island, jumped to Judiciary after 12 years on the Education and Public Works Committee. Already on Judiciary are Clemmons and Viers. In related news, Rep. Liston Barfield, R-Aynor, has been moved to the Higher Education Subcommittee of the Ways and Means Committee.
Sources: Information has been compiled from reports in The Sun News and The State.
On the Net
MyrtleBeachAreaChamber.com
SCStateHouse.net
House.gov
Senate.gov
USA.gov
SCChamber.net
USChamber.com
I-73.com
