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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:
Senator
Wes Hayes
1486 Cureton Drive
Rock Hill, South Carolina 29732
803-328-8532 (home)
803-324-2400 (work)
803-324-5030 (fax)
or
Senator Wes
Hayes
Post Office Box 142
Columbia, South Carolina 29202
803-212-6410
803-212-6499 (fax)
email:
set@scsenate.org
My Website
www.weshayes.com
Disclosure:
This newsletter utilizes printed information provided by the State’s
Legislative Council and the State House of Representatives, Department of
Research.
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