Weekly Update 6.3.2011

This Week at the Statehouse
June 3rd, 2011

Amazon

On Wednesday, the House voted 99-14 to concur with the Senate amendment to S.36. The bill was sent to Governor Haley’s desk for signature; however, Governor Haley has said publicly that she will allow the bill to become law without her signature.

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

House changes to the budget on Thursday mean a conference committee will work out differences between the House and Senate versions of the budget. The House announced their conferees yesterday and the Upstate is well represented – outgoing House Ways and Means Chairman Dan Cooper (Anderson) and incoming Chairman Brian White (Anderson) will both sit on the conference committee.

Medical School Expansion

The expansion of the USC School of Medicine to the Upstate and Greenville Hospital System continues to move forward. This week, USC officials held information sessions for interested House and Senate members.  

Redistricting

The House Judiciary Committee is scheduled to meet on Monday, June 6th at 10:00am in Columbia to discuss the House proposals. 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

The Senate released their proposed plans on Thursday of this week. To view the submitted plans, please click here. The Senate Judiciary Committee has scheduled a public hearing on Tuesday, June 7th at 5:00pm in Columbia.

Sine Die

By law, the Legislature had to adjourn the regular legislative session by 5:00pm yesterday (June 2nd). Immediately upon adjournment, Governor Haley held a 5:15pm press conference to tell lawmakers, specifically the Senate, to return to Columbia next Tuesday (6/10) to finish work on a government restructuring bill.

June 14th
The House and Senate had both signed separate “Sine Die Resolutions” to return to Columbia on June 14th. During this “Sine Die” session, the House and Senate planned to work primarily on the budget, redistricting and any remaining conference reports. 

Tort Reform

H. 3375 passed the House in February by a bipartisan vote of 100-7. That bill was amended by the Senate Judiciary Committee and then spent months on the Senate calendar without action.

Over the last week, Senators Larry Martin (Pickens) and Brad Hutto (Orangeburg) worked closely to forge a compromise between the business community and plaintiff lawyers. This week, the Senate passed the compromise legislation by a vote of 39-0. The House concurred by a vote of 99-16.

The legislation now heads to Governor Nikki Haley’s desk for her signature. As part of her legislative agenda, Governor Haley was instrumental in getting this legislation passed.

The bill includes a cap on punitive damages modeled after the state of Florida's cap. The legislation caps punitive damages that are greater than $500k or three times the compensatory damages awarded. If it is found that the defendant is motivated primarily by financial gain, or the defendant's actions rise to the level of felony charges, then the award can be increased to the greater of $2 million or four times compensatory damages. If it is proven the defendant intended to harm the claimant, was convicted of a felony arising out of the same act or acted under the influence of drugs or alcohol, there is no cap for punitive damages.

In addition, the legislation includes an appeals bond cap, revisions to the statute of repose for construction cases and requires the attorney general to approve civil actions by circuit court solicitors.

Unemployment Insurance (UI)

This week, both the House and Senate voted to support H.3762, which will provide significant unemployment insurance (UI) tax relief for employers across the state. The legislation, which now heads to Governor Nikki Haley’s desk for her signature, reduces state benefit weeks from 26 to 20 weeks and allows employers the option of restricting seasonal benefits.

With the passage of this bill, the Senate allocated $100 million of surplus revenue in the budget to assist in paying down the $933 million debt South Carolina owes the federal government. This week, the House provided $146 million for federal loan repayments in its version of the state budget. The budget now heads to a conference committee where conferees will negotiate how much state revenue will be used to pay down the federal debt.

If the entire $146 million makes it through the budget conference committee process, that money combined with reforms in H. 3762 would provide up to 25 percent in unemployment insurance tax relief for all employers in tiers 2-20 this year.