The Senate continued debate this week on legislation that would create a
Department of Administration under the Governor’s cabinet and would eliminate
the South Carolina Budget and Control Board. The legislation passed the House
in February of 2011.
DHEC/Port Resolution
This week the Senate voted unanimously to pass a joint resolution to disregard
port-related decisions made by the South Carolina Department of Health and
Environmental Control (DHEC) since 2007. This legislation is an attempt to
reverse DHEC’s controversial decision approving Georgia’s plan to deepen the
Savannah River to 48 feet. The joint resolution, introduced by Senate President
Pro Tempore Glenn McConnell (Charleston), was cosponsored by all 45 other
senators
The S.C. House passed the resolution last week (H.4627). That
bill was introduced by Rep. Jimmy Merrill (Charleston) and passed the House by
a vote of 111-0.
Drug Testing
This week, the House Judiciary Committee debated H.4043, legislation
introduced by Rep. Eddie Tallon (Spartanburg) that would allow prospective
employers to submit failed certified drug tests to the South Carolina
Department of Employment and Workforce (DEW) as a basis for disqualification of
unemployment benefits. The legislation contends that prospective employees
failing drug tests are not able and available to work, a key component to
continue to draw benefits. Rep. Tallon and Rep. Tom Young (Aiken) offered an
amendment to the bill to allow the prospective employer to submit the failed
drug test and an affidavit, so the employer would not have to appear before an
appellate panel in Columbia. Many lawyers on the House Judiciary Committee
argued that the prospective employee’s due process rights would be violated.
With today’s certified drug tests, samples are split so false positive
claims can be avoided and certified labs ask questions related to other
prescription medications a person may be taking at the time. Ultimately, there
were too many unanswered questions related to drug testing, thus the amendment
and the legislation were carried over to the next House Judiciary Committee
meeting.
Economic Development
By a vote of 34-3, the Senate passed H.3506,legislation that includes a number of economic development
incentives. The House passed the legislation in 2011.
Retirement System
This week, South Carolina State Treasurer Curtis Loftis testified before
a Senate panel that the state’s retirement system was not performing as well as
other state retirement systems. Treasurer Loftis told panel members he is
concerned about high fees and transparency within the system. Others, including
Sen. Greg Ryberg (Aiken), disagree with the treasurer’s assessment and believe
that higher fees are a sign that values of state investments are
increasing.
The state retirement system’s unfunded liability
has grown exponentially since 2000. In the early 2000s, the unfunded liability
was several hundred million dollars. In 2011, that amount has ballooned to more
than $17 billion.
Right to Work Act of 2012
This week, S.C. House Labor, Commerce, and Industry Committee advanced
Chairman Bill Sandifer (Oconee) bill, entitled the Right to Work Act of 2012. The bill clarifies language in S.C.’s existing Right to
Work Act that ensures an employee cannot be fired from his or her job for
choosing to join or not to join a union. It also ensures that all South
Carolina workers who are union members have the right to resign membership and
stop paying dues at any time.
The bill would allow South
Carolina employers to display a poster containing five specific provisions of
state law at the heart of South Carolina’s Right to Work Act. It would also
prohibit state and local governments from requiring or prohibiting contractual
union worker quotas when awarding government contracts, incentives, or tax
credits, ensuring a level playing field for all businesses.
All unions, regardless of
membership size, would have the same new reporting requirements under South
Carolina law. Finally, the bill increases penalties for any unions or employers
that violate the Right to Work Act, putting teeth to current South Carolina
statutes.
SCDOT
A House Judiciary subcommittee approved a bill that would do away with
the seven-member SCDOT Commission. The measure, which now moves on to the full
House Judiciary Committee, would consolidate SCDOT Secretary Robert St. Onge's
authority to run the agency.
Smith Land Issue
Senate Majority Leader Harvey Peeler (Cherokee) and Rep. Nelson Hardwick
(Horry) have introduced legislation, S.1126/H.4654, to restore balance to the Pollution Control
Act (PCA). Under the Supreme Court’s Smith Land Company opinion of July 2011,
environmental attorneys interpreted that all discharges or emissions into the
environment now require a permit. The ruling also creates a new private right
of action – allowing any citizen or citizens group to bring suit against those
“violating” the Pollution Control Act.
In the Smith Land Company
case, less than 2/10 of an acre of an isolated wetland was filled after the
landowner contacted the U.S. Army Corps of Engineers and DHEC. Neither agency
had a regulatory program requiring a permit to fill the isolated wetland.
Because no permit existed, the landowner did not acquire any permit from any
agency. The Supreme Court held that a permit from DHEC was required, not
because a regulatory program covered the act of filling the isolated wetland,
but because the PCA contains what the Supreme Court interpreted as an absolute
prohibition of any discharge into the environment without a DHEC permit.
The Supreme Court’s opinion is contrary to legislative intent. The
decision opens the door for a tidal wave of additional environmental litigation
and will create a climate of uncertainty for business and industry.
Unemployment Benefits
Two key unemployment insurance bills passed the Senate Labor, Commerce
and Industry Committee (LCI) this week. Sen. Kevin Bryant’s (Anderson)
legislation to repeal benefits for those seeking only part-time work advanced
to the Senate floor (S.1026). S.1069, also authored by Sen. Bryant, would
change the way seasonal benefits are calculated. This issue passed the General
Assembly last year, but the U.S. Department of Labor did not approve the language,
and the General Assembly must now rewrite the statute before implementation.
Both bills could be debated in the Senate as early as next week.
Upstate Water Summit
Please save the date for Friday, February 24th – we will be
holding an Upstate Water Summit in Anderson. We will be sending out more
information soon.
Upstate Chamber Coalition Luncheon
Save the Date for Thursday, April 5th – we will be hosting Congressmen
Gowdy, Duncan and Mulvaney for a luncheon in Greenville. These three Upstate
Congressmen will represent the I-85 corridor after Congressional redistricting
receives final approval from the U.S. Department of Justice. We will be sending out more information
soon.
