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Limited tax
revenues continue to restrict the general Assembly’s ability to fully
fund important governmental programs. In addition to the anticipated
lack of tax revenues, the necessity to pay a revenue deficit from 2003
recently disclosed by the Comptroller General will strain the State
Treasury even further than its present dire condition. The challenge
this year will be to create a balanced budget while satisfying existing
needs for basic government services such as education, public safety,
infrastructure, and social services. The General Assembly is reviewing
many different recommendations as to how to deal with current
conditions. Significant legislation is pending which will affect many
aspects of our lives from changes in public education to the
restructuring of state government. Of major concern to York County is
the renewed effort of the Catawba Indian Nation to expand its gambling
interest. All together this year’s legislative session will be
challenging.
CIGARETTE TAX
South Carolina has one of the lowest cigarette taxes in the country,
making additional taxing of cigarettes a prime target for fresh revenue.
Many legislators see the cigarette tax as a user or excise tax and
support increasing the tax on this product. There are two plans
circulating as to how to use revenues from an increased cigarette tax.
Proponents in the Senate would have the additional revenue used to fully
fund medicaid, whereas the Governor’s plan would use the increased
revenues to offset a proposed reduction in personal income tax. However,
there is also strong opposition to any tax increase including the tax on
cigarettes.
STATE GOVERNMENT RESTRUCTURING
The Governor and many state legislators feel the current conditions in
state government are such as to merit considerable restructuring of the
state’s government bureaucracy. It appears some merging and
consolidating of agencies is inevitable. However the degree to which
this occurs is at issue. Senator Glenn McConnell, chairman of the Senate
Judiciary Committee and President ProTempore of the Senate, has
introduced a 1900 page bill to this end. His plan would change all
Constitutional Offices, with the exception of State Treasurer and
Attorney General, to gubernatorial appointments. Also, he would have the
Lieutenant Governor elected on the same ticket as the Governor, similar
to the method used at the Federal level for President and
Vice-President. He wishes to see the Governor’s Cabinet expanded to
include the Department of Mental Health, and the establishment of a new
Department Administration to house many small agencies such as the
Foster Care Review Board and Guardian Ad Litem Program. He also supports
merging the Department of Alcohol and Other Drug Abuse Services under
the Department of Health and Human Services. There exist enough momentum
to initiate some change. Any change in Constitutional Offices must be
decided by referendum at the time of the next General Election.
THE FUNDING FAIRNESS TRIAL
Education still stands in the forefront of important issues in South
Carolina. The “Funding Fairness Trial” in Manning has captured the
attention of the state. Those who brought suit and proponents, such as
former Governor and Secretary of Education Richard Riley, allege that
inequities in funding between the state’s rural areas and the more
affluent urban areas is a violation of constitutional rights of rural
citizens. Also at issue here is the integrity of “Home Rule” and the
State’s method of distributing funds for education.
PATHWAYS TO PROSPERITY ACT
The “Pathways to Prosperity Bill” or more formally known, as “the
Education and Economic Development Act” would replace the School to
Work Act of 1994. Senator Hayes chairs the subcommittee reviewing this
bill for the Senate Education Committee. This bill calls for the
development of a public school curriculum organized around a career
cluster system “that would provide students with both strong academic
and real world problem skills.” The cluster system will provide “academic
and career oriented choices and greater exposure to career information
and opportunities.” This legislation addresses the significant problem
of school dropouts and truancy in South Carolina and has the support of
both the Department of Education and the State Chamber of Commerce.
S.M.A.R.T FUNDING IN EDUCATION ACT
SMART is an acronym for “Streamlined Management and Accountable
Resources for Teaching.” This bill is proposed by Governor Sanford,
and would consolidate all current sources of state funding for the State’s
School Districts. It is intended to enhance school district flexibility
in Kindergarten through Twelfth Grade. In this bill funding is allocated
to each district in six general categories:
1) Quality Teaching;
2) Instruction;
3) Technical Assistance;
4) Operations;
5) Workforce Education;
6) Special Needs;
This bill would allow individual school districts to transfer up to 100
percent of funds between programs designated within the same general
category. A school district would be able transfer up to twenty percent
of from one general category to other general categories.
LIFE SCIENCES ACT
While this bill is considered an “Economic Development” bill, many
feel it is related to the higher education. This bill will offer
incentives to businesses and research institutions engaged in
pharmaceutical, medicine, and related laboratory instrument
manufacturing and development activities. It is hoped that research
related companies would work in concert with our research institutions.
It amends the “Enterprise Zone Act” to add Life Sciences, with $100
million invested, and the creation of 200 new full-time jobs with an
average compensation of at least one hundred fifty percent of the annual
per capita income in South Carolina. The bill allows for employee
relocation expenses to qualify for reimbursement with job development
credits and provides generous depreciations on “clean rooms,”
machinery, and equipment. It allows Life Science Projects investing $100
million and creating 200 jobs at twice the state per capita to qualify
for funding.
Amendments to the bill, if passed, will establish a “Venture Capital
Investment Fund,” and will increase the state’s general obligation
debt cap to six percent. The additional debt revenue is to be used to
allow the state research institutes, which are University of South
Carolina, Clemson, and Medical University of South Carolina to develop
research infrastructure projects. These projects would help these
universities to contract with “cutting edge” research corporations
who specialize in development of new technology and new product design,
such as pharmaceuticals or automotive products.
Another amendment, introduced by Senator Leventis of Sumter and passed
by the Senate, would establish USC-Sumter as a four-year institute.
Governor Samford has threatened to veto the legislation if the USC-Sumter
provision remains.
The bill has been passed by the Senate with additional amendments, and
is now in Conference Committee.
AT WILL EMPLOYMENT ACT
This bill has a good chance of passing this year. If this happens it
will revise South Carolina’s “At Will Employment Doctrine” in
light of recent court rulings under which employers who use employee
handbooks, even with conspicuous disclaimers and employee
acknowledgements, may inadvertently create a contract of employment that
replaces the intended “at will” employment relationship. The “At
Will Employment Doctrine” basically sets forth an understanding that
if an employee has the right to terminate his or her employment at will
without ramifications, the employer retains that same right of
termination unless a contract agreement sets forth other conditions.
Under this bill, no handbook, policy, procedure, or other document
issued by an employer or its agent may form an expressed or implied
contract of employment, unless: a) the contract is in writing; b) the
contract is signed by the employee and an authorized agent of the
employer; and the contract expressly provides that the parties intend to
alter their “at will” employment relationship. The legislation
applies to both public and private employment.
ALCOHOLIC BEVERAGES AND MINIBOTTLE REFORM
This legislation, sponsored by Senator Hayes, recommending a
Constitutional Amendment to eliminate minibottle requirements should
pass the Senate and House in time to be placed on the ballot as a
referendum in November. This and the enabling legislation have received
stiff opposition from minibottle distributors who hold a monopoly on
liquor distribution in the state. As reported in the last newsletter, a
minibottle holds 1.75 ounces of alcohol. Using a minibottle in South
Carolina to serve alcoholic beverages makes ours the strongest drink in
the nation. This is inconsistent with new laws lowering the legal limit
for “driving under the influence” to a .08 blood alcohol level. By
serving alcohol by using the free pour method, only 1.25 ounces of
alcohol is used. Less alcohol per drink means less opportunity and
incentive for intoxication. With concerted effort, the referendum bill
will pass, but much work is needed to insure the enabling legislation
becomes law in a timely manner.
CATAWBA-WATEREE RIVER BASIN BI-STATE COMMISSION
This Senate Bill, sponsored by Senator Hayes, was also introduced in
North Carolina with corresponding legislation. Mecklenburg County
Senator Clodfelter sponsored the North Carolina Bill. Both bills have
passed their respective Senates, and now reside in committees of the
North and South Carolina Houses of Representatives. The purpose of this
Bi-State Commission will be to continually assess the use and water
quality of the Catawba River as it flows through Lake Wylie crossing
stateliness to Lake Wateree. It will work to insure that the two states’
regulatory agencies cooperate to provide the purest water possible for
the Piedmont area. Passage of the bill looks promising in that other
elected representatives that represent districts receiving water from
North Carolina and Georgia are interested in establishing similar
commissions.
HISTORICAL PROPERTIES TAX CREDITS ACT
Senator Hayes introduced this bill last year at the request of York
County Councilman Rick Lee. Currently the State Department of History
and Archives controls the process by which a local property owner is
eligible for special property tax credits for improvement to unique
properties with historical value. This bill will transfer that authority
to local governments who offer these incentives. It also gives local
governments the latitude to define and coordinate these programs.
Last year the Department of History and Archives offered major changes
to this legislation creating questions by the Association of Counties
and the Municipal Association. Over the summer these questions were
answered and consensus established between the interested parties. The
bill has now passed favorably out of subcommittee with appropriate
amendments. It is hoped this bill, which is important to the inner
cities of York County, will pass without difficulty.
THE CATAWBA INDIAN’S GAMBLING ISSUE
The Catawba Indian Tribe is attempting to change its current agreement
with the State of South Carolina in regard to their rights to promote
gambling. The Tribe wishes to expand its current bingo operations to
include electronic bingo. This method of gambling engages the use of “video
poker” type bingo machines. This is a very fast form of bingo that
pits the player against the machine or is electronically linked to other
machines interacting with bingo players nationwide. The tribe wants to
establish a new bingo facility of this type on I-26 in Orangeburg
County. The gambling industry refers to these facilities as “Bingosinos.”
This type of facility is not allowed by the current agreement, and will
require approval by the General Assembly. Senators Hutto and Matthews,
representing Orangeburg County, are submitting legislation to amend the
current agreement with the Catawba Indians. Senator Hayes is opposed to
any change in the current settlement agreement.
The Tribe is also involved in other actions to expand their gaming
interest in South Carolina. On the local level they are asserting the
opinion that the current settlement allows them the ability to provide
video poker devices on their reservation. Solicitor Pope, Sheriff
Bryant, and other York County leaders have made it clear that any
attempt to install Video Poker machines will be considered a criminal
act and appropriate action will be taken.
The Catawba Indian Tribe is attempting to secure Federal legislation
that would place the tribe under the Federal Indian Gaming Regulatory
Act. If the Tribe becomes fully governed by the IGRA, its ability to
conduct organized gambling activities in the State would be greatly
expanded without regulatory authority by the State of South Carolina.
Also, recent reports state the intent of The Catawba Indian Tribe to
file both State and Federal Suits asserting that South Carolina broke
its agreement with The Tribe when it amended its Constitution and
established the “Lottery for Education.” The Tribe further alleges
the Lottery has caused undue competitions with its present Bingo
business resulting in a reduction of revenue because of the State’s
Education Lottery.
A large contingency of local and state representatives under the
leadership of Senator Hayes are resisting any expansion of gambling
activities of the The Catawba Indian Tribe beyond the 1993 agreement.
GRANDPARENTS RIGHTS IN CHILD CUSTODY
Senator Hayes receives numerous inquiries and concerns from grandparents
who have been denied access to grandchildren caught in custody battles
between divorcing parents. In response, he introduced legislation that
will allow anyone, including grandparents, who have been de facto
custodians to receive consideration during custody hearing. An example
of this would be a grandparent caring for a child regularly while the
parents work. This bill would require consideration be given to this de
facto custodian as well as the parents.
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. This
District #15 Newsletter, concerning events occurring in the General
Assembly, is provided as a means to keep you better informed. 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 usually held twice a
year 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, the State House of Representatives, Department of
Research, and the Senate Judiciary Committee.
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