Weekly Update 5.27.2011

This Week at the Statehouse
May 27th, 2011

The Clock is ticking....

With only three legislative days remaining until Sine Die, there remains unfinished business. The House must consider whether to concur with the Senate's version of the budget, to or non-concur and send the budget to conference committee. The Governor's Office has said publicly that she expects the Senate to pass tort reform and a Department of Administration bill before adjourning this session.   

Amazon

On Tuesday, the Senate suspended the rules and voted 31-14 to add S. 36 to the calendar, which allowed them to bypass the committee process. The Senate then spent Wednesday and Thursday of this week debating legislation that would give Amazon a 5-year exemption on collecting state sales tax for online purchases.

Early this morning, by a unanimous voice vote, the Senate sent the amended deal back to the House. They voted 97-20 last week to give Amazon a five-year exemption from collecting sales tax from South Carolina's online customers in exchange for the full-time jobs with health benefits and at least $125 million in capital investment.

The Senate compromise requires Amazon to notify customers that they're responsible for paying sales tax that the company doesn't collect, as state law already requires, though only a fraction of online shoppers ever report their online purchases. The company would begin collecting the tax in January 2016.

Amazon officials have said that the total number of jobs created will be over 2000.  They had already announced plans to put a distribution facility in Lexington. There has also been speculation over the past couple of weeks that an additional 800+ jobs and a similar facility maybe located in Spartanburg County.

Budget

The Senate on Tuesday approved a $6 billion spending plan that locks in spending reductions for Medicaid and welfare programs, while also adding money to public schools and a break for businesses on their unemployment taxes. The 23-16 vote approving the spending plan came as senators agreed to cut off debate as debate entered a fifth week. The bill now heads to the House and could be in a conference committee by early next week. It's unclear if legislators will send the spending bill to the governor before adjournment on June 2.

Education

By a vote of 61-59, the House voted down a school choice bill that would have given state income tax credits to parents who send their students to private school or home school them. State budget advisors have estimated the plan would cost the state $133 million a year in lost revenue when fully enacted in 13 years. Advocates insist the tax credits would save the state money, and the bill was amended to sunset after five years if it did not.

Illegal Immigration

This week, the House approved S.20, an illegal immigration bill, by a vote of 69-43. The bill requires law enforcement officers to check the immigration status of anyone they pull over for traffic violations or stop on suspicion of other violations.

Labor Issues

A new report from U.S. Senator Jim DeMint indicates that Right-to-Work states have discovered a winning economic strategy over years of competition with other states. This research shows that compared to forced unionism states, Right-to-Work states have more new residents, more new businesses, more new jobs and faster income growth.

Currently, 22 states have right-to-work laws that protect the rights of workers not to be forced to join or pay dues to a union as a condition of employment. The Right-to-Work states are Alabama, Arizona, Arkansas, Florida, Georgia, Idaho, Iowa, Kansas, Louisiana, Mississippi, Nebraska, Nevada, North Carolina, North Dakota, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia and Wyoming. 
 
When compared to the overall number of employed Americans, total union membership has fallen more than 40 percent since 1983, with a nearly 60 percent decline among private sector employees. Click here to read the full report.

Redistricting

This week a House Election Laws Subcommittee met to discuss a draft redistricting plan as proposed by the House Judiciary Committee. The full Judiciary Committee will meet the week of June 6th to discuss the plans. The first link below contains the proposed House District maps. The second link contains the proposed Congressional District maps.

House Districts
http://redistricting.schouse.gov/HousePlanDistrictMaps.html

Congressional Districts
http://redistricting.schouse.gov/CongressionalPlanDistrictMaps.html

Sine Die

By law, the Legislature has to adjourn by June 2. The House will return on June 14th. The Senate has yet to approve Sine Die legislation, but it is believed that they will also return during that same week. 

Tort Reform

Tort Reform will be up for debate next week in the Senate. We will be sending out a “call to action” early next week asking for business leaders to contact their senators when they return to the statehouse on Tuesday. 

The House passed, H. 3375, a comprehensive tort reform bill in mid-February by a vote of 100-7. Even though tort reform was set for Special Order by the Senate in March, the Senate has only spent two days debating the legislation.

Unemployment Insurance (UI)

Early this morning, the Senate gave 3rd and final reading to H.3762. The bill now goes back to the House. If passed, this legislation would reduce state unemployment benefits to 20 weeks from 26 weeks and place restrictions on seasonal workers seeking unemployment benefits.

This companion legislation is also necessary for S.C. employers to receive an 18% reduction in their unemployment taxes for 2011. The Senate has $100 million set aside in their version of the budget to give companies some UI relief this year. Next week, the House will decide whether to concur with the Senate version of the budget or convene a conference committee to work out the differences in the House/Senate versions of the budget.