Weekly Update 5.13.2011

This Week at the Statehouse
May 13th, 2011

This legislative week was shortened to two days, as both the House and Senate were not in session on Tuesday (5/10) in observance of Confederate Memorial Day.

Amazon

In late April by a vote of 47-71, the House defeated legislation that would have given Amazon a special tax exemption so that they would not be required to collect and remit sales taxes in South Carolina. Immediately following this vote, Amazon officials announced that they would no longer continue with plans for a S.C. distribution center.

As early as next week, special legislation may be reintroduced in an effort to keep Amazon from moving its proposed distribution center and 1200+ new jobs from Lexington County. 

Budget Debate Continues

For the 3rd consecutive week, the Senate debated the FY 2011-12 $5.8 billion state budget. The Senate will begin its 4th consecutive week of budget debate next week. They will reconvene beginning at 10:00am on Tuesday, May 17th.     

Labor Issues

This week, U.S. Senators Lindsey Graham, Jim DeMint and Lamar Alexander (Tennessee), introduced the Job Protection Act (S. 964), a bill to preserve federal law’s existing protections of state right-to-work laws.

On April 20, the acting general counsel of the National Labor Relations Board moved to stop Boeing from building airplanes at a nonunion plant in South Carolina, suggesting that unionized American company cannot expand its operations into one of the 22 states with right-to-work laws, which protect a worker’s right to join or not join a union.

This bill would clarify that the NLRB would not be able to order an employer to relocate jobs from one location to another. It would guarantee an employer the right to decide where to do business within the United States. The legislation would also  protect an employer’s free speech regarding the costs associated with having a unionized workforce without fear of such communication being used as evidence in an anti-union discrimination claim.

Redistricting

As this legislative year comes to an end, the issue of redistricting will soon become a main topic of discussion. To take a closer look at the new Census data for South Carolina, please click here. In addition, the SC House and Senate have set up websites to update the public on the redistricting process. For more information visit http://redistricting.schouse.gov/ or http://redistricting.scsenate.gov/.

Sine Die

The last day of the legislative session is Thursday, June 2nd. However, last week the House adopted the Sine Die Resolution, H.4195, that would allow them to return to Columbia Tuesday June 14th, and continue in statewide session and adjourn no later than 5:00 pm, Friday, July 1, 2011. The resolution specifies consideration of gubernatorial vetoes, Sine Die adjournment, appointments, sympathy and congratulatory resolutions, local legislation, concurrence in amendments, conference committee appointments and reports, reapportionment, ratification of acts, and toll regulations. They will also address state and federal reapportionment.

Tort Reform

As the Senate gets closer to a final vote on the budget, the statewide business community continues to urge Senators to move forward with debate on tort reform. 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 in the Senate in March, the Senate has only spent two days debating the legislation.

Unemployment Insurance

This week, the Senate adopted two different measures to provide meaningful unemployment insurance (UI) tax relief for employers across the state. The Senate gave second reading to the state budget, which provides $100 million in state dollars to assist in paying down the $933 million debt South Carolina owes to the federal government. The Senate also gave second reading to H.3762, an unemployment insurance bill that provides other cost-saving measures including a reduction in state benefit weeks from 26 weeks to 20 weeks and restriction of benefits for seasonal workers. These two measures combined will provide approximately 18% relief for companies in tiers 2-20.