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The
most noted characteristic of the 115th Session of the South Carolina
General Assembly was lack of money to fund programs and services.
After having two additional “across the board cuts” within a very
lean 2002-2003 budget, legislators faced the expectation of continued
declining revenues for 2003-2004. The greatest portion of the limited
funds projected to be available for appropriation during the coming year
were applied to the task of fully funding Medicaid and the Education
Finance Act. South Carolina was fortunate to receive federal funds from
the Jobs and Growth Tax Relief Reconciliation Act of 2003. This allowed
the General Assembly to fund education and health care at close to the
same levels as last year.
Even though the issue of money (or lack of it) overshadowed the General
Assembly, a great deal of significant legislation did pass this year.
LOCAL SCHOOL CALENDARS
The General Assembly gave school trustees the authority to establish
their own annual school calendar to include starting dates, ending
dates, holidays, make-up days, in-service days, and professional
development days. Senator Hayes chaired the Conference Committee. Within
the state budget they also gave the school district boards discretion as
to the disbursement of designated funds when teacher salaries are in
jeopardy.
.08 & DUI
A Bill sponsored by Senator Martin of Pickens with Senator Hayes
co-sponsoring was passed reducing the blood alcohol content limits in
“Driving Under the Influence” provisions from 0.10 percent to 0.08
percent. This new law also enhances penalties for a second “DUI”
offense and allows for automobiles of repeat “DUI” offenders to be
made unable to start.
PREDATORY LENDING
A very significant law protecting consumers from practices commonly
referred to as “predatory lending” was passed by the General
Assembly. Prior to this new law predatory lending practices were
particularly difficult for the elderly, low-income individuals, and
borrowers with few lending options or limited knowledge about personal
finance. This law establishes criteria for loans to be considered “high
cost” and requires credit counseling for those seeking to borrow money
at interest rates designated as high. It regulates certain fees and
charges. It prohibits lending practices such as balloon payments and the
pattern of rapid refinancing known as “flipping”. This bill provides
penalties for violations as well as remedies for consumers adversely
affected by unlawful lending practices. Senator Hayes co-sponsored this
bill and chaired the subcommittee that prepared the bill for approval by
the State Senate and the House of Representatives. When the Bill passed
both bodies of the General Assembly with amendments, a “Conference
Committee” was appointed to work out the differences. Senator Hayes
also chaired the Conference which established the final draft that was
passed into law.
CAMPAIGN REFORM
Legislation reflecting one of Senator Hayes’ major efforts was the
Campaign Finance Reform Bill. The first major revision of campaign
finance law since 1992 was signed into law by Governor Sanford in June
2003. The effort to initiate this reform began in 1998 with a bill
co-sponsored by Senator Leatherman and Senator Hayes that passed the
General Assembly but was vetoed by Governor Hodges. Since that time
several campaign reform initiatives were combined to form the bill that
passed this year. The primary reason for this new reform bill is to
cause the disclosure of contributions that fall into the category of “soft
money.” This is money contributed or expended by individuals,
companies, special interest groups, and political parties to affect the
outcome of an election without contributing directly to a candidate.
This legislation provides for a broad range of revisions including
enhanced penalties for campaign finance violations, procedures governing
ballot measure committees, new disclosure requirements for certain
campaign contributions and expenditures, and restrictions imposed on a
lobbyist for the remainder of the calendar year in which he deregisters.
It also expands the authority of the General Assembly’s Ethics
Committees.
HOMELAND SECURITY
Homeland Security Duties were assigned to SLED, the South Carolina Law
Enforcement Division. The General Assembly also passed the Maritime
Security Act which provides for the South Carolina Naval Militia as an
organized, trained, and certified volunteer state maritime force to
augment port and coastal security.
GOVERNMENT REFORM
Government reform also received significant legislative attention this
year. The General Assembly approved the “Department of Motor Vehicles
Reform Act of 2003.” This bill removes the Division of Motor Vehicles
and the Motor Carrier Services unit from the Department of Public Safety
and establishes these divisions as the Department of Motor Vehicles. The
Governor will appoint the agency director, and the agency will be a part
of the Governor’s Cabinet. Legislators also passed a bill requiring
the Department of Commerce and other public bodies to disclose the cost
to the public of economic development incentives that are offered to
attract business investments.
DOMESTIC VIOLENCE PREVENTION
Passed by the General Assembly, the Domestic Violence Prevention Act
enhances penalties for various domestic violence offenses and directs
participation by offenders in programs designed to treat batterers.
Criminal domestic violence of a high and aggravated nature is now
considered a violent crime. Now law enforcement must complete an
investigation of an alleged violation even if the law enforcement was
not notified at the time the violation occurred. The Department of
Social Services must set up Domestic Violence Coordinating Councils in
each county. Every state agency must now have a workplace domestic
violence policy that must include a zero tolerance policy statement
regarding acts or threats of domestic violence in their safety and
security procedures. This legislation also provides for training on
domestic and family violence to teachers and operators of childcare
facilities.
Senator Hayes successfully sponsored legislation that had direct,
positive influence on York County and on the State as a whole.
The Joint Agency Act introduced by Senator Hayes provided the York
County Gas Authority and other like non-profit agencies a mechanism for
the joint exercise of their functions and the sharing of related costs
to ensure the residents, businesses, and industries located in their
service areas natural gas services as efficiently and inexpensively as
possible.
Sponsored by Senator Hayes, an Aviation Aircraft Property Tax Reduction
Bill was passed into law giving York County the local option to reduce
property taxes on aircraft when it will encourage economic development
for the county. In South Carolina property tax on aircraft is set at 12%
of market value. In surrounding states such as North Carolina, these
taxes are set as low as 3%. This new law allows counties the local
option to reduce these taxes to as low as 4% making the rates more
competitive.
A local bill changing the date when York County School District #1 Board
Members take office was introduced by Senator Hayes at the request of
the School District. Formerly, Board Members had to wait until January
following election to take office, but now they may take office
immediately after election.
Under a bill sponsored by Senator Hayes, the Tourism Expenditure Review
Committee Membership was expanded to include a representative from the
State Arts Commission. This committee reviews programs utilizing
Accommodations Tax Funds. Having representation from the Arts Commission
on this committee will better ensure local Arts Councils will not be
left out of the equation when these funds are distributed.
The Technologies Grant Program Bill would ensure that 35% of Lottery
Funds designated for Information Technology Programs would be
distributed equally to smaller colleges in the state like Winthrop
University. While the Bill has not yet passed, the significant aspects
stated above were passed in the budget as a temporary proviso.
Many important bills are pending consideration for the second part of
the 115th session of the General Assembly next year. A sampling of these
is as follows.
MINIBOTTLE REFORM
The use of “Minibottles” filled with 1.7 ounces of liquor has been
for many years the designated legal method for serving alcoholic
beverages in restaurants and bars in South Carolina. If given the option
to pour freely from a larger bottle, these businesses would use only
1.25 ounces of liquor. Senator Hayes sponsored this legislation for
health and safety reasons. Less alcohol per drink means less opportunity
and incentive for intoxication. With the legal limit dropping to .08
blood level, it is logical to reduce the content of alcohol in each
drink giving the consumer less capacity to “drive under the influence.”
The South Carolina Hospitality Association has joined Senator Hayes in
this effort for the same reasons of health and safety which create less
liability for the businesses. Also, the free pour method is less costly,
and allows for greater profit without greater volume which increases the
industry’s tax contribution.
This legislation is in two parts. In that the use of minibottles is
prescribed by the State Constitution, the first bill calls for a
statewide referendum to amend the Constitution. The second bill is the
enabling legislation that provides the mechanism by which the state will
implement this change upon approval of the people. Those who distribute
the minibottle oppose this legislation, but there is strong momentum in
both houses of the General Assembly for passage. There is optimism that
the bills will pass next year.
ENVIRONMENT AND CONSERVATION
Legislation introduced by Senator Hayes would establish The Catawba-Wateree
River Basin Commission to study and review the growing use of the
Catawba River as it flows from North Carolina through Mecklenburg County
and York County traveling further into South Carolina. In so many ways,
York County is dependent upon this primary source of water. This
commission will be charged with the responsibility to study the impact
of use by both states of this natural resource and make recommendations
to ensure its quality is sustained.
Large, mass production hog farms that produce quantities of waste is an
issue being debated. Approved by the House, legislation prohibiting a
county from imposing livestock or poultry standards that are more
stringent than those established by the General Assembly has been
amended by the Senate and is pending further consideration next year.
CIGARETTE TAX
A major source of debate this past session was whether or not to
increase the tax on cigarettes and use the revenue to fund Medicaid and
to reduce State Income Taxes. None of the proposed measures to impose
such a tax were approved by the General Assembly, but the issue is
likely to be considered again next year. Many senators and
representatives are committed to no tax increase of any kind, but a
growing number of them feel this tax increase is justified because
tobacco use is harmful to the health of our society. Therefore, many
legislators, including Senator Hayes, feel an increased tax on
cigarettes to help pay for Medicaid coverage is acceptable.
GOVERNMENT REFORM CONTINUED
The Governor will continue to push for government restructuring with
legislation such as the “South Carolina Health and Human Services
Reorganization and Accountability Act.” Having passed the House, this
bill now resides in the Senate Medical Affairs Committee. The intent of
this legislation is to reform the State’s Medicaid system and
reorganize state health and human services agencies.
The Public Service Commission regulates the State’s public utilities,
and its members are elected by the General Assembly. This year the House
and Senate approved different versions of legislation which generally
establishes new qualifications for Public Service Commission candidates.
Both versions would expand the restrictions on certain activities and
relations of Commissioners and PSC officials. Also, revisions in the way
public interests are represented in matters before the Commission are
included. A conference committee has been appointed to address the
differences. A conference report with compromise legislation is expected
to be presented next year.
AT WILL EMPLOYMENT DOCTRINE
Legislation revising South Carolina’s At-Will Employment Doctrine
passed the House and awaits approval in the Senate. In light of recent
court rulings, employers who use employee handbooks, even with
disclaimers and employee acknowledgment, have been determined to create
a contract of employment that replaces the intended at-will employment
relationship. This led to the introduction of the “At-Will” bill,
which states no handbook, policy, procedure, or other document issued by
an employer may form a contract of employment, unless it is specified as
such. If passed, the legislation will apply to both private and public
employment. After much debate, the Senate amended the legislation and
gave it second reading approval prior to adjournment.
ECONOMIC DEVELOPMENT INITIATIVES
Several bills designed to aid in developing the State’s economy are
pending. The Research Universities Restructuring and Infrastructure Act
revises current provisions by setting apart the University of South
Carolina, Clemson University, and the Medical University of South
Carolina as semi-autonomous institutions as they focus on research and
development in a “knowledge-based economy.” It is important that
this action does not trap funding that would be otherwise intended for
institution of higher education like Winthrop University.
The Venture Capital Investment Act, which directs the Department of
Commerce to establish a fund to promote investment in knowledge-based
technology companies, is pending approval by the Senate.
The House and Senate approved differing versions of the South Carolina
Life Sciences Act, which is a bill offering incentives for businesses
engaged in pharmaceutical, medicine, and related laboratory instrument
manufacturing and development activities.
Additional legislation to be considered is the Prohibition of Human
Cloning, Tort Reform, and Primary enforcement of Seat Belt Laws. All of
this and another difficult year for the State Budget provides the
General Assembly with many interesting challenges to face.
YOUR INPUT IS NEEDED
Senator Hayes needs your input when there is an issue pending that you
have knowledge of or which will have an impact on you. As your State
Senator, he presently serves you as Chairman of the York County
Legislative Delegation, Chairman of the Senate Ethics Committee, and as
a member of the Senate Finance, Education, Banking & Insurance,
Medical Affairs, and General Committees. Without your input, the General
Assembly may make decisions based on inadequate information.
As your State Senator, his ongoing goal is to give the citizens of York
County the best possible representation in State Government. As a means
to keep you better informed, this District 15 Report is a quarterly
newsletter concerning events occurring in the General Assembly. Due to
the cost of mailing, he will not be able to mail a copy to everyone in
the District; however, you may find copies of this report placed in
various public locations.
Also, this report along with all others may be viewed on the senator’s
website, (www.weshayes.com). A public meeting is held every quarter when
possible at an accessible location, and you are encouraged to come,
express your opinion, and ask any questions which you might have.
Any ideas you may have as to how this newsletter could be improved are
most welcome.
If you need assistance or information or want to discuss an issue, you
can contact me at:
Disclosure:
This newsletter utilizes printed information provided by the State’s
Legislative Council and the State House of Representatives, Department
of Research. |
