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After a highly
competitive General Election, Forty-six State Senators return for the 116
Session of the South Carolina General Assembly with six new members. Three
incumbent senators retired, while challengers defeated three others. The
Senate Republicans now have a twenty-six to twenty majority over the
Senators who are Democrats. The 124 member State House of Representatives
returned with seventy-four members as Republicans and fifty members as
Democrats. As these Legislators take office, they face challenging issues
important to the people of South Carolina.
The State’s Budget always stands in the forefront of issues. Governor
Sanford has several initiatives he has asked the General Assembly to
consider. Among these are his “Put Parents In Charge” plan for
education and “Government Restructuring.” Now that the referendum has
passed to remove from the State Constitution the use of the minibottle as
the method of mixing alcoholic beverages in restaurants, the Legislature
must now determine the method for this process. “Tort Reform”
involving placing some restraints on personal damage awards by juries, is
a major concern this year, as is making the use of seat belts in moving
vehicles completely mandatory. This Newsletter will attempt to summarize
these and other important issues before the General Assembly this year.
SENATE RULES
Last year, the use of the “filibuster” stifled progress, and stalled
important legislation in the Senate. It became apparent to many that the
Senate Rules needed to be changed. In the past a senator could hold the
floor until 28 members voted to end debate. In its first act, the Senate
changed that rule by reducing the number of votes for closure to 24 on 2nd
reading and 3/5 of members present and voting on 3rd reading. This change
is conservative. It will continue to protect the need for appropriate
deliberation while insuring that legislation of major importance can move
forward.
THE BUDGET
The Board of Economic Advisors reports more promising projections for the
state’s economy this year. With this in mind, the General Assembly will
be looking to improve funding for vital areas of state government. The
foremost concern is Education, which is significantly under funded. The
Department of Revenue needs more staff to collect delinquent taxes. Our
secondary highways need attention and the state’s Highway Patrol system
is substantially understaffed. The state is losing large sums of money
from the Federal government because of the lack of matching funds in our
budget dedicated to Medicaid recipients.
Consideration may be given to a cigarette tax increase to provide new
revenue for Medicaid. Also, an increase in the gas tax may also be
considered in order to fund improvements in secondary roads.
RESTRUCTURING GOVERNMENT
Governor Sanford would like to see many of the State’s Constitutional
Offices placed under the Governor’s authority. If this happened, it
would mean that the Governor appoints the Lieutenant Governor, Adjutant
General, Secretary of State, Superintendent of Education, Comptroller
General, and Commissioner of Agriculture. To do this will require a
referendum by the voters to amend the State Constitution. The General
Assembly must call for the referendum. The Governor is lobbying actively
to cause this to happen.
MANDATORY SEATBELTS-PRIMARY OFFENSE
Several years ago the General Assembly passed into law the requirement
that all people riding in a motor vehicle must wear a seatbelt. At that
time, in order to get it beyond a filibuster led by Senator Glenn
McConnell of Charleston, legislators agreed to a compromise. Citizens were
required to wear seatbelts, but could only be charged with a secondary
offense. This means a person would have to be charged with another
offense, such as driving too fast before the officer could note that he or
she was not wearing a seatbelt, and a seatbelt violation is added to the
charge.
This year the Senate was successful in passing an amendment to this law
that establishes failure to wear a seatbelt as a primary offense. This
effort was the first indication that the Senate Rules changes implemented
by the Senate will prove helpful in moving important legislation forward.
This bill is expected to pass quickly in the House.
PUT PARENTS IN CHARGE ACT
The principle component of this bill, recommended by the Governor, is a
tax credit for parents who choose to place their children in private
schools. If passed, the tax credits could be applied to reduce income
taxes or possibly property taxes to offset these parents’ tuition cost.
Presently, this bill is in the House and is receiving some opposition from
Representatives who are concerned that this could reduce funds to public
education, which is already stressed by budget cuts.
CHARTER SCHOOLS
Charter Schools provide a good alternative for parents and communities who
have an interest in specialized education for their children without
negatively impacting funding for traditional public schools. Last year a
law was passed that loosened the restrictions of charter school population
makeup.
This year Bills, introduced in the Senate and House, if passed, will
create a statewide Charter School District that would approve charter
schools. This bill also sets standards that must be met by charter
schools, and it further requires that the charter schools that meet these
standards be continually reviewed for compliance. The legislation includes
provisions that make it easier for charter schools to obtain private and
federal grants.
TORT REFORM
Tort is a legal term referring to damage or injury caused by willful or
negligent acts upon individuals through no fault of their own. There is a
system of complex laws that guides the courts in how juries can award
damages and restitution to those harmed. Many legislators believe that
there are too many tort claims filed and that court awards tend to be
excessive. Some believe that this causes liability insurance premiums,
such as malpractice insurance, to be cost prohibitive.
This year, there have been a number of Tort Reform bills introduced. Some
would limit the amount of money that can be awarded for actual or punitive
damages. Others seek to limit liability by making it more difficult to
pursue cases against multiple defendants. Still others focus on procedural
changes that may make it less likely that marginal claims would be
pursued.
Tort Reform is expected to be passed in the General Assembly this year.
The degree of change still remains to be seen.
ALCOHOLIC BEVERAGES DISTRIBUTION
In this last General Election, the people voted to remove from the State
Constitution the reference to the minibottle as the method used to pour
alcoholic beverages in restaurants. Now, the General Assembly must
determine the method of dispensing alcoholic beverages in restaurants.
This also involves how to get the bottled liquor to market. The challenge
will be to establish law that will closely regulate this process to insure
appropriate tax revenues are collected, and make sure related businesses
are competing with each other in a fair and equitable manner. All
generally agree that the method of dispensing will be left up to the
restaurants to the extent that they may choose the free pour method or the
minibottle. It is also accepted generally that the liquor will be taxed at
the retail level as an additional sales tax.
There is disagreement among wholesale suppliers as to how the product will
be distributed. Under the old system, a “Class A” wholesale license
can be obtained for the purpose of purchasing alcoholic beverages directly
from the manufacturer. Different rules apply to beer and wine sales and
distilled spirits sales. Some “Class A” wholesalers deliver beer and
wine directly to retail facilities other than liquor stores. The “Class
A” wholesalers can sell distilled spirits to liquor stores, but not to
restaurants. All distilled spirits sold to restaurants had to be in
minibottle containers. Only wholesalers who obtained a “Class B”
license could sell to restaurants. These “Class B” wholesalers
purchased their minibottle products from the “Class A” wholesalers.
Now that the minibottle is poised to be eliminated as a mandatory item,
the “Class A” Wholesalers want the ability to sale directly to
restaurants since they already carry a wide array of product choices for
the restaurants. The “Class B” wholesalers fear this will impede their
business, so they want the process to remain the same. This means they
supply liquor (in larger containers) to the restaurants exclusively
causing the “Class A” wholesalers to sell distilled spirits products
intended for restaurants only to “Class B” wholesalers.
The General Assembly is challenged to pass a bill that will establish the
new process while protecting tax revenue and insuring fair competition.
STATE RETIREMENT SYSTEM
For the first time in many people’s memory, the State Retirement System
failed to provide a cost of living increase to state retirees. Many feel
this is due to the drain on retirement funds by the reduction of the
required years of service to 28 year. Others feel that the “TERI”
program caused the shortfall. This program allows state employees to
retire after 28 years of service, but then continue to work for 5 more
years, while their retirement payments accrue in an escrow fund which pays
out in full at the end of the 5 years.
Legislation has been introduced that will effectively eliminate this
program except for those who are already contracted to participate. It
will also reinstate the 30 years requirement for retirement.
MEDICAID MODERNIZATION ACT
The Senate Medical Affairs Committee is working on improvements to the
Medicaid system in South Carolina, which is managed by the Department of
Health and Human Services. This legislation calls for control measures for
“high users” of medicaid through disease management of health
education programs. This also includes using concepts that infuse market
forces into Medicaid. The bill would establish the Pharmacy and
Therapeutics Committee, which provides a preferred drug list, and oversees
prior authorization of drugs for recipients. Under this act, agencies
where recipients overlap with other service agencies would be required to
communicate and share data about clients.
DHHS will be required interface with the Department of Revenue as well as
the Employment Security Commission to determine the recipients level of
eligibility for Medicaid. The bill calls for codifying requirements to
report comprehensive standings in the fiscal and service management of
Medicaid Services. If this bill is passed into law, the Dept. of Insurance
and DHHS will be allowed to work together in qualifying medicaid
applicants who have other insurance coverage.
HISTORICAL PROPERTIES REHABILITATION
Last session, three bills were introduced at the request of York County
and Rock Hill City Councils. Two of these bills passed. They give local
governments better opportunities to improve historical properties vital to
the economy, as well as to the history of their communities.
The third bill has been introduced again this year. If approved, it will
enhance the two already passed by expanding income tax and licensing
credits, already available to developers, to the developers’ partners,
such financial institutions that lend money for these projects.
THIS NEWSLETTER, concerning events occurring in the General Assembly, is
provided to keep you better informed. Due to cost of mailing, Senator
Hayes will not be able to mail a copy to everyone in Senate District #15.
You may find the newsletter placed in public places, or you may view it on
the Senator’s website. ( WWW.WESHAYES.COM
) A public meeting is usually held twice a year at an accessible location.
You are encouraged to come, express your opinions, and ask any questions.
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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