LEGISLATIVE UPDATE : May 20-24, 2019

The Senate returned this week, pursuant to the Sine Die resolution, to take up “conference committee reports.” Conference Committees are composed of three members from each body, Senate and the House, appointed to resolve differences between the respective bodies on an amended bill. The committee reports the recommendations, compromises, or amendments to the full Senate and full House for further action. If both bodies approve of the final changes to the legislation, the conference committee report is adopted and sent to the governor for signature or veto. The following conference committee reports were adopted and now head to the governor’s desk for further action.

Conference Committee Report Adopted

H.3137 –Local Government Fund: A bill to amend the State Aid to Subdivisions Act, the Local Government Fund, to establish a process of distribution of funds. The bill deletes the provision relating to mid-year cuts. The revenues to the local government will be adjusted proportionally to the same projected percentage change, but not to exceed five percent. The base is re-benchmarked at the current level of funding and then grows as the general fund grows.

 H.3601– Public Disorderly Conduct: A bill to allow procedures for conditional discharge for first time offenders relating to public disorderly conduct. The court without entering a judgment of guilty and with the consent of the accused may defer further proceedings and be placed on probation with terms and conditions. A nonpublic record must be forwarded and retained by SLED solely for the purpose of use by the courts in determining whether a person has committed a subsequent offense. Upon dismissal and discharge, the person may apply to the court for an order of expungement A fee of $150 must be paid before a person may be discharged and proceedings dismissed, in which the funds shall be transmitted to the Prosecution Coordination Commission.

H.3602 – Health Care Decisions: A bill relating to the persons who may make health care decisions for a patient who is unable to consent, to add a person who has an established relationship with the patient, acting in good faith and who can reliably convey the patient’s wishes but is not a paid caregiver or provider of health care services to the patient. The person must sign and date a notarized acknowledgement form provided by the hospital or other facility where the patient is located.

 H.3789 – Driver’s Licenses: A bill to expand options to prove veteran’s status, raises validity period for certain types of licenses and ID cards, allows the Department of Motor Vehicles to charge differing amounts for licenses depending on the validity periods. Members of the Armed Services and their dependents DL validity is extended from 4 years to 8 years. Veteran’s status extends to both national guardsmen and members of the reserve components who qualify. Establishes two options for commercial driver’s license: HAZMAT endorsement valid for 5 years upon individual which passes TSA threat assessment or without HAZMAT endorsement valid for 8 years, and additional conforming changes.

H.3821 – Advanced Practice Registered Nurses: A bill to enact the “Advanced Practice Registered Nurse Act” to provide that APRNs may certify the manner and cause of death pursuant to the provisions of the State Code of Laws. APRNs may have prescriptive authority on Schedule II narcotics for patients in long-term care facilities, all other restrictions of law remain the same.

 H.3986 –Palmetto ABLE Savings: A bill to rename the “South Carolina ABLE Savings Program” the “South Carolina Stable Account Program,” and make conforming changes.

 H.4004 – POST Act: A bill to enact the “Physician’s Orders for Scope of Treatment (POST) Act.” The South Carolina Department of Health and Environmental Control must administer, create access and manage improvements to the POST form, develop process to identify patients utilizing POST and other advance directives, develop educational efforts for public and health care professionals and promulgate necessary regulations. The POST form must be a uniform document based on the standards recommended by the National Physical Order for Life-Sustaining Treatment (POLST) paradigm and must include certain criteria. A POST may be revoked at any time by an oral or written statement by the patient or patient’s legal representative.

 H.4243 –Professional Sports Teams Credits: A bill to define and include ‘professional sports team’ to taxpayers eligible for the new job tax credit. Additionally, increases the amount of initial job credit from eight thousand dollars to twenty-five thousand dollars for Tier IV counties, and from four thousand dollars to twenty thousand dollars for jobs created in Tier III counties. The provisions relating to ‘professional sports team’ shall sunset by July 1, 2022.

H.4000 –State General Appropriations: A bill to enact the general appropriations of the state for Fiscal Year 2019-2020. Highlights of the State Budget may be found online HERE.

H.4001–Capital Reserve Fund: A bill to appropriate monies from the Capital Reserve Fund for FY18-19 and allow unexpended funds appropriated to be carried forward to succeeding fiscal years and expended for the same purposes.

H.4287 – Public Service Authority (Santee Cooper): A joint resolution to provide the Department of Administration shall establish a process to conduct a competitive bidding process for the sale of some or all of the Public Service Authority (“Santee Cooper”) and receive management proposals that do not involve a sale but design to improve efficiency and cost-effectiveness of Santee Cooper’s electric operations. The process shall not be limited to individuals or entities that responded to the ICF Request for Expressions of Interest. Santee Cooper shall also submit a proposal as an alternative to a sale or management proposal, setting plans to reform, restructure and change operation. Nothing precludes the department from negotiation with entities to improve the proposal. The department shall procure professional services necessary; the services must not be an entity with whom the House of Representatives, Senate or Governor has previously engaged relating to Santee Cooper. The department shall designate a third party to administer the procurement and dissemination of information from Santee Cooper to third party bidders in order to ensure consistency, proper characterization and accuracy of information provided. The department shall conduct a thorough evaluation off all bids (Section 2), management proposals (Section 3), reform (Section 4), under strict parameters of evaluation included within. The department shall establish a process in which its professional services experts conduct confidential negotiations between Central Electric Power Cooperative, Inc. and each entity that submitted a bid or proposal after all have been submitted. The department shall require that negotiations operate in good faith, and other like requirements. Information received during the process and ensuing negotiations shall be confidential and handled with sufficient care to prevent disclosure and must not be released without written permission of the entity whose bid or proposal was recommended. The department shall require non-disclosure agreements which must be entered into by each individual or entity involved. At the conclusion, the department shall concurrently present a recommendation by its professional service experts of one bid for sale, one management proposal that consider to be in the best interest of the State, taxpayers and customers of Santee Cooper, as well as the recommendation of Santee Cooper’s proposal. Each must include justifications, contract with full terms, and supporting documents. The proposed contracts must include covenants that the bidder will abide by the terms of its bid for sale or its proposal. The department must enter into a contract with each entity that establishes penalties for failure to proceed with the terms in the event the bid or proposal is selected by the General Assembly. The contract must include, but is not limited to, earnest money to be paid upon a recommendation of that entity is being made to the General Assembly and penalties for failure to finalize the terms of bid or proposal upon selection by the General Assembly. The department shall present to the Chairman of Senate Finance Committee, Chairman of the House of Representatives Ways and Means Committee the documents by January 15, 2020, and may extend an additional 60 days if needed. The President of the Senate and the Speaker of the House shall convene their respective bodies to consider any legislation to effectuate the sale, management proposal, or reform, restructure and changes in operation of Santee Cooper. In the event of an approved sale, the net proceeds shall be deposited in the State Retirement Systems Group Trust. In the event the General Assembly approves a management proposal, the department must execute and documents necessary to effectuate the proposal. If any section, subsection, paragraph, et al. be held unconstitutional or invalid, the remaining portions of the act shall be held if the General Assembly would have approved the remaining portions of the act.  ​

For more questions on the above bills or additional legislation being considered by the Senate, please reach out! WE WANT TO HEAR FROM YOU. 

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 LEGISLATIVE UPDATE : May 6-10, 2019

The Senate adjourned the 2019 regular session, what is called “Sine Die.” Legislation not passed by the Thursday Sine Die deadline will not receive floor debate or a vote of the Senate until regular session resumes in January, 2020. The Senate will continue to meet in the summer and fall on the state budget, and legislation in special committees and gubernatorial vetoes.),  

Third Reading and Sent to the House

H.3659 – Renewable Energy Program: A bill to establish a voluntary renewable energy program. The Public Service Commission would establish each electrical utility’s avoided cost rates, avoided cost methodologies, standard offer power purchase agreements and other terms or conditions which must be in the best interests of all customers and consistent with PURPA and other regulations. The bill would establish standards for power purchase agreements. Electrical utilities shall offer to enter into a fixed price power agreement with small power producers for the purchase of energy and capacity at avoided costs. The PSC could utilize 3rd party consltants to carry out its duties concerning a voluntary renewable energy program. The program must include participation of customers to select a facility and negotiate with supplier; equal duration of contract; reimbursement for the amount paid by the utility; and ability to bundle demand under one agreement. Additionally, provisions include community solar programs, rate options for the PSC, energy storage, net metering, reporting requirements, renewable energy study, interconnection standards, review of standards and consumer protection regulations. The full text of the bill is available here: H.3659. The bill has been signed into law by the governor.

H.4380 – Ridesharing Safety: A bill to update provisions relating to ridesharing applications, safety and inspections of Transportation Network Company (TNC) vehicles. A TNC vehicle must include an illuminated TNC provided sign displaying the company’s proprietary trademark or logo that is patently visible so as to be seen in the darkness. All TNC dress and signage must be returned to the TNC when a driver ceases to be employed by or work for the TNC. A TNC that does not receive back signage shall report the name of the driver to the Office of Regulatory Staff. A person who misrepresents himself as an authorized TNC driver is guilty of a misdemeanor and shall be fined not more than five hundred dollars, imprisoned not more than thirty days or both. Additionally, a person who knowingly engages in the use of a TNC trade dress of application in the furtherance of a criminal activity is guilty of a misdemeanor and shall be fined not more than one thousand dollars, imprisoned not more than three years or both. The bill has been signed into law by the governor.

H.4004 – POST Act: A bill to enact the “Physician’s Orders for Scope of Treatment (POST) Act.” The South Carolina Department of Health and Environmental Control must administer, create access and manage improvements to the POST form, develop process to identify patients utilizing POST and other advance directives, develop educational efforts for public and health care professionals and promulgate necessary regulations. The POST form must be a uniform document based on the standards recommended by the National Physical Order for Life-Sustaining Treatment (POLST) paradigm and must include certain criteria. A POST may be revoked at any time by an oral or written statement by the patient or patient’s legal representative. The bill has been assigned to a conference committee of the Senate and House.

H.4243 –Professional Sports Teams Credits: A bill to define and include ‘professional sports team’ to taxpayers eligible for the new job tax credit. Additionally, increases the amount of initial job credit from eight thousand dollars to twenty-five thousand dollars for Tier IV counties, and from four thousand dollars to twenty thousand dollars for jobs created in Tier III counties. The provisions relating to ‘professional sports team’ shall sunset by July 1, 2022. The bill has been assigned to a conference committee of the Senate and House.

S.3728 – Prescription Monitoring Program: A bill to require hospital emergency department physicians and pharmacist to submit certain information to the Department of Health and Environmental Control for inclusion in the prescription monitoring program when a person is administered an opioid antidote for an opioid overdose. The health care facility shall report within 30 days of discharge electronically or by facsimile. DHEC shall cross reference individuals with the prescription monitoring program. First responders additionally shall report within 30 days of administration, the Bureau of EMS shall submit report to the Bureau of Drug Control, cross reference individuals, review by practitioner or authorized delegate and maintain data on antidote administrations. Under the bill, opioid antidotes to controlled substances are added to the monitoring program. The bill has been signed into law by the governor.

H.3137 –Local Government Fund: A bill to amend the State Aid to Subdivisions Act, the Local Government Fund, to establish a process of distribution of funds. The bill deletes the provision relating to mid-year cuts. The revenues to the local government will be adjusted proportionally to the same projected percentage change, but not to exceed five percent. The base is re-benchmarked at the current level of funding and then grows as the general fund grows. The bill has been assigned to a conference committee of the Senate and House.

H.3035 – Election Managers: A bill to provide that all clerks appoint from election managers and chairmen of the board managers must be residents and registered electors of the respective counties in which they are appointed to work or in an adjoining county. The bill has been signed into law by the governor.

H.3036 – Neonatal Testing: A bill to add to the required Neonatal testing to include three diseases: Krabbe Disease, Pompe Disease, Hurler Syndrome. The department shall require additional lysosomal storage disorders to be tested at the recommendation of the Newborn Screening Advisory Committee. Additionally, establishes the Newborn Screening Advisory Committee to review the feasibility and advisability of including additional metabolic, genetic and congenital disorders in the neonatal testing. The bill has been signed into law by the governor.

H.3145 – Office of Regulatory Staff Authority: A bill to provide that the Office of Regulatory Staff is vested with the authority and jurisdiction to conduct audits of electric cooperatives in the same manner, terms and conditions authorized to conduct audits of regulated public utilities, and establish requirements for notice of special meetings and cooperative trustee elections. The bill has been signed into law by the governor.

H.3174 – Electric-Assist Bicycles: A bill to define “electric-assist bicycles’ and ‘bicycles with helper-motors.’ Manufacturers and distributors of e-assist bicycles shall apply a label permanently affixed to each e-assist bicycle indicating its wattage and maximum electrically assisted speed. If the wattage is modified or changed, a new label must be affixed stating the new wattage and maximum electrically assisted speed. For purposes of the section, e-assist bicycles or bicycles with helper motors and not mopeds.

H.3357 – Deaf or Hard of Hearing Registration: A bill to provide that the Department of Motor Vehicles may add a notation to a private passenger motor vehicle registration to indicate that the driver may be deaf or hard of hearing. Application must include a certificate from a licensed physician or licensed audiologist that certifies that the applicant has a permanent, uncorrectable hearing loss of forty decibels or more in one or both ears. The notation would only appear when a law enforcement check is run on the vehicle’s license plate to alert the officer that the driver may be deaf or hard of hearing. The bill has been sent to the House for further consideration.

H.3383 –State Forest Land Revenues: A bill to exclude proceeds from land rentals and wildlife management area payments from the proceeds of state forest land revenues to be shared with counties. The State Treasurer must pay to a county containing state forest lands an amount equal to twenty-five percent of the gross proceeds received by the state, except for the gross proceeds from land rentals. The bill has been signed into law by the governor.

H.3586 – 911 Communications Center: A bill to update terms and definitions regarding the Public Safety Communications Center that pertain to a 911 system. The Revenue and Fiscal Affairs Office shall be responsible for creating, updating and implementing a comprehensive strategic plan to address changing technology, services and operating efficiency and effectiveness. The bill provides standards that must be implement by the legacy 911 or NG9-1-1 systems. The local government must provide the RFA Office a copy of the audited report regarding compliance within sixty days of the completion of the audit. The bill has been signed into law by the governor.

H.3601– Public Disorderly Conduct: A bill to allow procedures for conditional discharge for first time offenders relating to public disorderly conduct. The court without entering a judgment of guilty and with the consent of the accused may defer further proceedings and be placed on probation with terms and conditions. A nonpublic record must be forwarded and retained by SLED solely for the purpose of use by the courts in determining whether a person has committed a subsequent offense. Upon dismissal and discharge, the person may apply to the court for an order of expungement A fee of $150 must be paid before a person may be discharged and proceedings dismissed, in which the funds shall be transmitted to the Prosecution Coordination Commission. The bill has been assigned to a conference committee of the Senate and House.

H.3602 – Health Care Decisions: A bill relating to the persons who may make health care decisions for a patient who is unable to consent, to add a person who has an established relationship with the patient, acting in good faith and who can reliably convey the patient’s wishes but is not a paid caregiver or provider of health care services to the patient. The person must sign and date a notarized acknowledgement form provided by the hospital or other facility where the patient is located. The bill has been assigned to a conference committee of the Senate and House.

H.3621 –Athletic Trainers: A bill to change the definition of “athletic trainer” and to revise the required examination, and impose penalties for violation of the act. In addition to other requirements, an athletic trainer means an allied health professional with specific qualifications. To add industries in which a person is engaged as an athletic trainer if the person is employed on a salary or contractual basis by: a physician’s office, an industry, performing arts group, the military, a governmental agency or a bona fide organization which employs or serves a physically active population. The department is authorized to suspend, deny or revoke an athletic trainer’s certification and impose a civil monetary penalty, against any person for violation of a regulation promulgated to this chapter. The bill has been signed into law by the governor.

H.3662 –Code of Laws: A bill to provide for the preparation and publication of the revised volumes of the Code of Laws.  The bill has been signed into law by the governor.

H.3703 –Board of Physical Therapy Examiners: A bill to increase the amount of times an applicant may take the examination, upon failure, from three times to six times. If the applicant fails the examination for a fifth time, the applicant must take courses the board may require and furnish evidence of completing these courses before taking the examination for the sixth time. The bill has been signed into law by the governor.

H.3754 – Timeshare Instrument A bill to define the term “timeshare instrument” as it relates to vacation time sharing plans and add related provisions. The bill adds an Article ‘Vacation Time-sharing Plan Extension and Termination Act’ to establish requirements in executing a contract related to vacation time shares, including voting interests, use of a timeshare instrument, notice of termination, actions for damage and more. The bill has been signed into law by the governor.

H.3760 – Joint Underwriting Association: A bill to combine the Joint Underwriting Association and the Patients’ Compensation Fund into one single market of last resort. An assessment of 2-6% will be applied on malpractice policies, 1% of which must be passed through directly, and the remainder of which can be recouped through premiums if insurers choose to do so and the Director approves. The Board will set the assessment level annually, and the funds will be split between the debts of the entities. The bill requires two declinations to cover a new policyholder and premium surcharge that will cap out at 10% and will incentive those who can find insurance in the private market. The Board will be reconfigured to balance health care providers and medical malpractice insurers – adding two consumer seats and the Department of Insurance Director will chair. The bill has been signed into law by the governor.

H.3785: Board of Accountancy: A bill to update requirements of the Board of Accountancy to remove obsolete language relating to conditional technology implementation and conform to other elements of the Code. The Board must complete same number of hours of continuing education as licensed certified public accountants: six hours in ethics, two in board-approved South Carolina Accountancy Rules and Regulations. The bill deletes old language that provides investigations, inquires, and proceedings are confidential; new language provides all evidence, including records of hearing panel, must be made part of the record and open to the public unless necessary to protect confidential information and/or necessary to protect confidential information by a client or their representative.  The bill has been signed into law by the governor.

H.3789 – Driver’s Licenses: A bill to expand options to prove veteran’s status, raises validity period for certain types of licenses and ID cards, allows the Department of Motor Vehicles to charge differing amounts for licenses depending on the validity periods. Members of the Armed Services and their dependents DL validity is extended from 4 years to 8 years. Veteran’s status extends to both national guardsmen and members of the reserve components who qualify. Establishes two options for commercial driver’s license: HAZMAT endorsement valid for 5 years upon individual which passes TSA threat assessment or without HAZMAT endorsement valid for 8 years, and additional conforming changes. the bill has been assigned to a conference committee of the Senate and House.

H.3821 – Advanced Practice Registered Nurses: A bill to enact the “Advanced Practice Registered Nurse Act” to provide that APRNs may certify the manner and cause of death pursuant to the provisions of the State Code of Laws. APRNs may have prescriptive authority on Schedule II narcotics for patients in long-term care facilities, all other restrictions of law remain the same. The bill has been assigned to a conference committee of Senate and House.

H.3973– FGMF: A bill to provide it is unlawful for a person to knowingly mutilate, attempt to mutilate, or facilitate the mutilation of a female who is under the age of eighteen years of age or who is unable to consent. A person who violates is guilty of a felony and upon conviction must be fined not more than twenty thousand dollars or imprisoned not more than twenty years or both. The bill has been signed into law by the governor.

H.3916 –Failure to Register Motor Vehicle: A bill to increase the penalties for a person who fails to register a motor vehicle from one hundred dollars to five hundred dollars; or imprisonment for a period not to exceed thirty days or both.  The bill has been signed into law by the governor.

H.3986 –Palmetto ABLE Savings: A bill to rename the “South Carolina ABLE Savings Program” the “South Carolina Stable Account Program,” and make conforming changes. The bill has been assigned to a conference committee of the Senate and House

H.4010 – Heritage Trust Program: A bill to remove the maximum acreage limitation under the Heritage Trust Program, deleting that not more than one hundred fifty thousand acres total of real property shall be acquired in fee under the provisions. The bill has been signed into law by the governor.

H.4011 – Water Resource Planning: A bill relating to the Department of Natural Resources Duties in regards to the water resources planning and coordination to make changes to reflect the duties of the Department. Inclusions added to the responsibilities for the Department to consider: studies on saltwater intrusion into groundwater and surface water, and measures to protect the state’s fisheries and other aquatic resources. The bill has been signed into law by the governor.

H.4012 – Land, Water and Conservation Division: A bill to redefine references in statute of Land Resources and Conversations Districts Division to the “Land, Water, and Conservation Division” to make conforming changes. To additionally delete the requirements of the Department to transmit to the Governor certain requirements and forms.  The bill has been signed into law by the governor.

H.4013 – State Geological Survey Unit: A bill to change certain requirements for the state geologist, powers and duties of the state geologist. The person must be hired by the Director of the Department of Natural Resources and have at least eight years of practical work experience, academic, governmental, or industrial in geology. The unit shall make surface and subsurface data available to governmental agencies, private business, and the public by disseminating published geological information as bulletins, maps, economic reports, and related series and open file reports. When appropriate, the unit shall provide unsolicited advice to the other state and governmental agencies concerning geologic hazards including but not limited to earthquakes, ground liquefaction, sinkhole development and collapse, landslide development, and coastal vulnerability. The bill has been signed into law by the governor.

H.4020 – PRT Duties: A bill to add to the powers and duties of the Department of Parks, Recreation and Tourism to provide the department must promote economic diversity in all areas of the State by extending to them the full benefits of tourism and recreational development; and to coordinate and act as a liaison with regional tourism organizations, local chambers of commerce and development agencies. Additionally, repeals Article 3 of Chapter 1, Title 51 of the 1976 Code, the Division of Community Development. The bill has been signed into law by the governor.

H.4133 –Community Development Tax Credits: A bill to allow a tax credit of fifty percent of any cash donation to a community develop corporation or community development financial institution, delete an aggregate credit provision and set an annual limit. The provision allows financial institutions with tax liabilities to invest in community development corporations for the purpose of receiving a tax credit. The provisions of the South Carolina Community Economic Development Act are extended until June 30, 2030. The bill has been signed into law by the governor.

H.4239 – Trawling Restrictions: A bill to provide that a certain area is closed to trawling from May 1 through September 15, and remove that area is closed to trawling year round. The bill has been signed into law by the governor.

H.4244 – Road Hazards: A bill to redefine. A ‘service contract’ includes a contract or agreement for a separately stated consideration to perform one or more services: repair or replacement of tires and wheels on a motor vehicle damaged as a result of coming into contact with road hazards; removal or dents, dings or creases that can be repaired using paintless dent removal; replacement of a key or key fob in the event that it becomes inoperable, lost or stolen; and other services consist with the chapter approved by the director. A ‘road hazard’ means a hazard that is encountered while driving a motor vehicle including, but not limited to, potholes, rocks, wood debris, metal parts, glass, plastic, curbs, or composite scraps. Additionally, it establishes ‘theft protection program’ and ‘theft protection program warranty.’ The bill has been sent to the House for further consideration.

H.4245 – Misrepresentation of Meat: A bill to provide that it is unlawful for a person to engage in any misleading or deceptive practices, labeling, or misrepresenting a product as “meat” or “clean meat” that is cell-cultured meat/protein, or not derived from harvested production livestock, poultry, fish or crustaceans. A person who violates is guilty of a misdemeanor, and upon conviction, must be imprisoned not more than one year, or fined not more than one thousand dollars or both. The bill has been signed into law by the governor.

Given Second Reading

H.3079 –Trespass Notice: A bill to allow a different method of posting notice of trespassing. An owner may accomplish requirement of posting trespass by marking boundaries with a clearly visible purple-painted marking, with size requirements. These marks must be affixed to immovable, permanent objects including, but not limited to, trees and fence posts. When any owner or tenant shall post a notice in this manner, it shall be deemed conclusive against the person making entry for purpose of trespassing.

H.3576 –SC Wins: A bill to establish an additional SC Workforce Industry scholarship equal to the cost of tuition and mandatory fees after applying all other scholarships or grants not to exceed $2500 per year for no more than 3 years if enrolled in an associate degree program and no more than 2 years if enrolled in a diploma or certificate program. The SCWP would be available to students who are receiving the Lottery Tuition Assistance Program Scholarship (LTAP) and who are majoring in a critical workforce area program or students who are receiving LTAP and meet the USDA income eligibility requirements for meals regardless of major. A student, during their freshman year, must be enrolled in at least six credit hours of instruction each semester, including three hours in one of the critical workforce areas. The financial need based recipient must be enrolled in six credit hours of instruction for the purpose of meeting the required minimum level of instruction in the student’s major courses.

H.3755 – Automobile Coverage: A bill to update definitions, remove certain requirements for renewal of an automobile coverage policy and define the term “reduction in coverage.” The requirement for renewal policy to provide types and limits of coverage at least equal to those contained in the policy or being superseded is deleted. ‘Reduction in coverage’ means a change by the insurer which results in a removal of coverage, diminution in scope of less coverage or the addition of an exclusion. Reduction in coverage does not include any change, reduction or elimination of coverage made at the request of the insured. Notice of Reduction in Coverage does not amend, extend or alter coverage provided in a policy.

 

For more questions on the above bills or additional legislation being considered by the Senate, please reach out! WE WANT TO HEAR FROM YOU. 

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 LEGISLATIVE UPDATE : April 29 – May 3, 2019

This week the Senate set S.678 (H.4287), dealing with the future of the Public Service Authority “Santee Cooper,” for priority special order status. Priority masthead status places the bill first up on the Senate calendar, ahead of all other bills. After two weeks of floor debate, the bill received consensus among the Senate in how to best move forward. The bill, H.4287, will now be returned to the House with the Senate amendments for further consideration. One week remains in the first regular session of the legislative year. The Senate will Sine Die Thursday, May 9, 2019.

On The Floor:

PUBLIC SERVICE AUTHORITY (SANTEE COOPER) —  The Senate passed this week a joint resolution to provide the Department of Administration shall establish a process to conduct a competitive bidding process for the sale of some or all of the Public Service Authority (“Santee Cooper”) and receive management proposals that do not involve a sale but design to improve efficiency and cost-effectiveness of Santee Cooper’s electric operations. The process shall not be limited to individuals or entities that responded to the ICF Request for Expressions of Interest. Santee Cooper shall also submit a proposal as an alternative to a sale or management proposal, setting plans to reform, restructure and change operation. Nothing precludes the department from negotiation with entities to improve the proposal. The department shall procure professional services necessary; the services must not be an entity with whom the House of Representatives, Senate or Governor has previously engaged relating to Santee Cooper. The department shall conduct a thorough evaluation off all bids (Section 2), management proposals (Section 3), reform (Section 4), under strict parameters of evaluation included within. The department shall establish a process in which its professional services experts conduct confidential negotiations between Central Electric Power Cooperative, Inc. and each entity that submitted a bid or proposal after all have been submitted. The department shall require that negotiations operate in good faith, and other like requirements. The Office of Regulatory Staff shall provide commentary as to the impact on the retail customer for each bid and proposal and submit to the department and professional service experts – and must be considered by the General Assembly. Information received during the process and ensuing negotiations shall be confidential and handled with sufficient care to prevent disclosure and must not be released without written permission of the entity whose bid or proposal was recommended. The department shall require non-disclosure agreements which must be entered into by each individual or entity involved. At the conclusion, the department shall concurrently present a recommendation by its professional service experts of one bid for sale, one management proposal that consider to be in the best interest of the State, taxpayers and customers of Santee Cooper, as well as the recommendation of Santee Cooper’s proposal. Each must include justifications, contract with full terms, and supporting documents. The proposed contracts must include covenants that the bidder will abide by the terms of its bid for sale or its proposal. The department must enter into a contract with each entity that establishes penalties for failure to proceed with the terms in the event the bid or proposal is selected by the General Assembly. The contract must include, but is not limited to, earnest money to be paid upon a recommendation of that entity is being made to the General Assembly and penalties for failure to finalize the terms of bid or proposal upon selection by the General Assembly. The department shall present to the Chairman of Senate Finance Committee, Chairman of the House of Representatives Ways and Means Committee the documents. The President of the Senate and the Speaker of the House shall convene their respective bodies to consider any legislation to effectuate the sale, management proposal, or reform, restructure and changes in operation of Santee Cooper. In the event of an approved sale, the net proceeds shall be deposited in the State Retirement Systems Group Trust. In the event the General Assembly approves a management proposal, the department must execute and documents necessary to effectuate the proposal. If any section, subsection, paragraph, et al. be held unconstitutional or invalid, the remaining portions of the act shall be held if the General Assembly would have approved the remaining portions of the act. The bill returns to the House for further consideration.

HOUSING AUTHORITY STATE OF EMERGENCY — Senate Bill 506 provides that a county legislative delegation may adopt a resolution declaring that there exists a state of emergency with regard to a municipal housing authority that if convincing evidence or action or failure to act in which residents are subjected to unreasonably hazardous conditions or being subjected to conditions that led to the death or one or more residents, the commissioners are immediately suspended from office for ninety days. During this period of suspension, the mayor, or the mayor’s designee, shall exercise the powers and duties of the housing authority. Concurrently, the council of the municipality shall conduct an independent investigation into the circumstances under which the state of emergency was declared. Commissioners shall have the right to be heard in person or by counsel during the mayor’s investigation. If the council determines the authority took action or failed to take action meeting the conditions, the commissioners are immediately removed from office and the council shall appoint new commissioners. The bill now heads to the House for further consideration.

ENDOWMENT FUND S.613 — Senate Bill 613 creates a Development Office for the School of Science and Mathematics endowment fund. The fund must adopt an annual operations and capital budget. The fund budget and its fundraising goals must exclusively be based on the operation and capital goals of the school as provided to the foundation by the Executive Director and the head of the school. The fund shall not accept any donations that are restricted in their use unless the proposed restriction is approved by the board prior to its acceptance and unless the funds are being used for a purpose that is needed by the school. The bill now heads to the House for further consideration.

In Committee:

Senate Judiciary Committee:

H.3586 – 911 Communications Center: A bill to update terms and definitions regarding the Public Safety Communications Center that pertain to a 911 system. The Revenue and Fiscal Affairs Office shall be responsible for creating, updating and implementing a comprehensive strategic plan to address changing technology, services and operating efficiency and effectiveness. The bill provides standards that must be implement by the legacy 911 or NG9-1-1 systems. The local government must provide the RFA Office a copy of the audited report regarding compliance within sixty days of the completion of the audit.

H.3754 – Timeshare Instrument A bill to define the term “timeshare instrument” as it relates to vacation time sharing plans and add related provisions. The bill adds an Article ‘Vacation Time-sharing Plan Extension and Termination Act’ to establish requirements in executing a contract related to vacation time shares, including voting interests, use of a timeshare instrument, notice of termination, actions for damage and more

Senate Finance Committee:

H.4413 – Continuing Authority FY ’19-20: A joint resolution to enact continuing authority to pay recurring expenses of state government under the effective date for appropriations made for Fiscal Year 2019-2020.

Senate Labor, Commerce and Industry Committee:

H.3785: Board of Accountancy: A bill to update requirements of the Board of Accountancy to remove obsolete language relating to conditional technology implementation and conform to other elements of the Code. The Board must complete same number of hours of continuing education as licensed certified public accountants: six hours in ethics, two in board-approved South Carolina Accountancy Rules and Regulations. The bill deletes old language that provides investigations, inquires, and proceedings are confidential; new language provides all evidence, including records of hearing panel, must be made part of the record and open to the public unless necessary to protect confidential information and/or necessary to protect confidential information by a client or their representative.

Senate Banking and Insurance Committee:

H.3755 – Automobile Coverage: A bill to update definitions, remove certain requirements for renewal of an automobile coverage policy and define the term “reduction in coverage.” The requirement for renewal policy to provide types and limits of coverage at least equal to those contained in the policy or being superseded is deleted. ‘Reduction in coverage’ means a change by the insurer which results in a removal of coverage, diminution in scope of less coverage or the addition of an exclusion. Reduction in coverage does not include any change, reduction or elimination of coverage made at the request of the insured. Notice of Reduction in Coverage does not amend, extend or alter coverage provided in a policy.

H.3760 – Joint Underwriting Association: A bill to combine the Joint Underwriting Association and the Patients’ Compensation Fund into one single market of last resort. An assessment of 2-6% will be applied on malpractice policies, 1% of which must be passed through directly, and the remainder of which can be recouped through premiums if insurers choose to do so and the Director approves. The Board will set the assessment level annually, and the funds will be split between the debts of the entities. The bill requires two declinations to cover a new policyholder and premium surcharge that will cap out at 10% and will incentivize those who can find insurance in the private market. The Board will be reconfigured to balance health care providers and medical malpractice insurers – adding two consumer seats and the Department of Insurance Director will chair.

H.4244 – Road Hazards: A bill to redefine. A ‘service contract’ includes a contract or agreement for a separately stated consideration to perform one or more services: repair or replacement of tires and wheels on a motor vehicle damaged as a result of coming into contact with road hazards; removal or dents, dings or creases that can be repaired using paintless dent removal; replacement of a key or key fob in the event that it becomes inoperable, lost or stolen; and other services consist with the chapter approved by the director. A ‘road hazard’ means a hazard that is encountered while driving a motor vehicle including, but not limited to, potholes, rocks, wood debris, metal parts, glass, plastic, curbs, or composite scraps. Additionally, it establishes ‘theft protection program’ and ‘theft protection program warranty.’

Senate Fish, Game and Forestry Committee:

S.3383 – Land Rentals: A bill to provide that proceeds from land rentals and Wildlife Management Area payments are excluded from provisions of 48-23-260 which states the State Treasurer shall pay to any count containing state forest lands and amount equal to twenty-five percent of the gross proceeds received by the State in each fiscal year from the sale of timber, pulpwood, poles, gravel and other privileges on state forest lands in any county, and other related provisions.

H.4010 – Heritage Trust Program: A bill to remove the maximum acreage limitation under the Heritage Trust Program, deleting that not more than one hundred fifty thousand acres total of real property shall be acquired in fee under the provisions.

H.4019 – Hunting Island: A bill to remove references to residential areas, pledge revenues, mortgage or deed, and trustee duties for Hunting Island. The bill repeals 51-7-20 which relates to the lease of residential areas and covenants in lease for Hunting Island.

H.4020 – PRT Duties: A bill to add to the powers and duties of the Department of Parks, Recreation and Tourism to provide the department must promote economic diversity in all areas of the State by extending to them the full benefits of tourism and recreational development; and to coordinate and act as a liaison with regional tourism organizations, local chambers of commerce and development agencies. Additionally, repeals Article 3 of Chapter 1, Title 51 of the 1976 Code, the Division of Community Development.

H.4021 – State Parks Activities: A bill to remove the prohibition of swimming and rental or use of park cabins at state parks.

H.4239 – Trawling Restrictions: A bill to provide that a certain area is closed to trawling from May 1 through September 15, and remove that area is closed to trawling year round.

Senate Medical Affairs Committee:

S.3728 – Prescription Monitoring Program: A bill to require hospital emergency department physicians and pharmacist to submit certain information to the Department of Health and Environmental Control for inclusion in the prescription monitoring program when a person is administered an opioid antidote for an opioid overdose. The health care facility shall report within 30 days of discharge electronically or by facsimile. DHEC shall cross reference individuals with the prescription monitoring program. First responders additionally shall report within 30 days of administration, the Bureau of EMS shall submit report to the Bureau of Drug Control, cross reference individuals, review by practitioner or authorized delegate and maintain data on antidote administrations. Under the bill, opioid antidotes to controlled substances are added to the monitoring program.

H.4119 – Heritage Trust Program: A bill to remove the maximum acreage limitation under the Heritage Trust Program, deleting that not more than one hundred fifty thousand acres total of real property shall be acquired in fee under the provisions.

For more questions on the above bills or additional legislation being considered by the Senate, please reach out! WE WANT TO HEAR FROM YOU. 

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 LEGISLATIVE UPDATE : April 15-19, 2019

The South Carolina Senate this week passed, by a 38-6 vote, H.4000 the General Appropriations Bill, the State Budget for FY 19-20. The balanced, focused, responsible $8.9 billion state budget addresses a number of the state’s most critical needs including substantial new investments in state education and educators, providing for state employees, law enforcement, mental health services, capital improvements and giving back to the taxpayer in the form of an income tax rebate, and more. Included herein is nearly a few highlights resulting out of budget deliberations. The full version of H.4000 is available online here.  The Senate’s version of the budget will now go back to the House for further consideration.

FY19-20 Budget Inclusions

Education:

• Increase the starting salary of teachers in South Carolina from $32,000 to $35,000.
• Providing a 4% pay increase to all teachers in South Carolina with no local match required from the districts; starting teachers receive additional increase.
• Added $15 million to the Base Student Cost.
• Allocation of $65 million for school district capital improvements.
• $10 million to provide 120 more School Resource Officers (SROs) to districts that can least afford them.
• Direction to the Law Enforcement Training Council to develop a training plan for SROs that focuses on how to provide frontline defense of school children. The plan shall include, but not be limited to, student vs. student, student vs. teacher conflicts and the evolving active killer risks, as well as the de-escalation and defensive tactics.
• Lottery expenditures of $19.3 million for school bus purchases and #20 million for needed instructional materials.
• $42 million in new recurring dollars for colleges, universities and technical schools to mitigate tuition increases for In-State students, making receiving a college degree more obtainable.
• $119 million of the Capital Reserve Fund for colleges and universities to address much needed deferred maintenance and renovations to existing buildings across college campuses.
• A total $317 million to fully funds our state’s “Merit Scholarship” — Palmetto, LIFE, and HOPE.
• The State Tech Board received $19.2 million for Ready SC to support recruitment and training for industries investing in South Carolina including Boeing, BMW, Mercedes Benz, Samsung and Volvo.
• Directive that no funds appropriated to the public colleges or universities may be used to purchase fetal remains from an option for research or experimentation, or the acceptance of donated fetal remains.
• From the funds appropriated to the State Department of Education, the Department shall develop a one-half credit virtual course in personal finance. The course must be fully developed by June 30, 2020.

Health and Human Services:

• Continued commitment to current level of services for Medicaid Maintenance of Effort
• Funds to cover the decrease in the federal match rate for the Children’s Health Insurance Program; eligibility limit also increased to make South Carolina level with Southeastern average, providing 22,000 more children with access to coverage.
• 2% across-the-board pay increase for state employees; a $41 million raise.
• 100% fund coverage of state funded employees and school district employees’ share of health and dental insurance increases, resulting in no increase in monthly premium costs.
• $32 million in General Funds and $4 million in EIA to fund employer cost of increase of contribution rates for retirement systems that is a multi-year phase-in to reduce unfunded liability.
• Recurring funding to establish 12 respite/triage beds at regional centers for individuals at home who are in need of intense respite intervention.
• Increased funding for school based mental health services with the intent of having mental health professionals in every school by 2020.
• Additional funds for rental assistance in supported apartments and for transitioning parties into independent living.
• Covered the balance of decreased Federal Funds for the Prescription Monitoring Program which provides healthcare providers a decision-making tool for controlled substance prescriptions and use of the Program tied to a reduction in opioid prescriptions.
• Additional staff to further assist small water and sewer systems as handled by the successful Office of Rural Water program.
• Strong investments in children welfare and support by providing funding for implementation of the Child Support Enforcement System, Child Welfare Information Systems to upgrade technology for in-the-field caseworkers, increase in foster care monthly rate payments including kinship care, and fully funding the request for Opioid Response and Addition Efforts for Infrastructure Improvements for the local 301 Provider System.
• Directed the prohibition of state funds, directly or indirectly, from being utilized by Planned Parenthood for abortions, abortion services or procedures, or administrative functions related to abortions.
• Provision allows the Department of Social Services to allow pro bono coverage for DSS volunteer attorneys.

Criminal Justice:

• $7.8 million in recurring funding for pay increases for judges, solicitors and public defenders.
• $814,413 recurring increase to support a law enforcement rank change for Class I and Class II Law Enforcement Personnel eligible for rank change in FY19-20.
• Recurring and nonrecurring investment to implement the SC Critical Infrastructure Cybersecurity Program which creates a task force to help protect infrastructure in the state from cyber events.
• $711,200 in recurring funds for master trooper/officer rank. Creates a reclassification career path for those officers and troopers who have served ten years or more but are not going into supervisory ranks.
• $2.3 million for purchase of new vehicles and support a vehicle rotation system and $1 million for radio rotation.
• $2 million moved from other funds to general funds to reduce agency’s reliance on fines and fees for critical infrastructure needs
• $1.25 million in support of pay raise for mental health and medical positions applicable to nurses, doctors, dentists and other key medical personnel who serve the inmate population.
• $10 million for critical detention services and equipment upgrades needed at institutions such as cell door locks, fire alarm system, and elevated control rooms.
• $1 million for Correctional Officer and Community Specialist pay increases to increase the salaries for front-line institutional correctional officers in an effort to reduce overall shortages due to outside competition and nature of the dangerous work in a correctional setting; additionally $2.3 million in earned overtime pay for officers.

Natural Resources and Economic Development:

• Designated funding for the Forestry Commission for employee recruitment and retention, and the conversion of open-cab dozers for safer enclosed-cab dozers.
• Department of Agriculture funds for the Food and Consumer Safety Program and monies for laboratory equipment upgrades.
• New funding to allow Department of Natural Resources to hire 10 new Law Enforcement Officers, meet Officer Step increases and conduct important activities for State Water Planning.
• $12 million in non-recurring funds for capital improvements and deferred maintenance at state parks.
• $8 million in new money to allow continued economic development efforts with closing funds and locate SC money. Commerce appropriated $50 million to allow them to focus efforts to improve the economy in those areas of the state with poorest school districts.
• $8 million to the Ports Authority for the Jasper Ocean Terminal Port.
• $25 million set-aside for grant program to assist famers who suffered devastating crop loses as a result of the flooding associated with Hurricanes Michael and Florence.
• From the funds appropriated to the Department of Commerce, the Department must conduct a report on the accessibility of broadband and Internet services taking into georgic area of the state.
• Directive that DHEC, local government entities and special purpose districts, may not approve a plan, permit, license application for the constitution of infrastructure or other activities for which the principal purpose is to facilitate the exploration, development or production of oil or gas from the territorial waters or South Carolina or in the Atlantic Ocean.

Constitutional:

• Support for the Office of the Adjutant General including funding for the SC Post Challenge and SC Youth Challenge.
• Additional funding for our state armories.
• $1.5 million for Adjutant General for improved facilities and one time funding of $4 million as state match.
• $1.5 million for the Office of the Attorney General to continue its work; also provided resources for Crime Victim Services and State Grand Jury.
• Commitment to safe and secure elections with a $40 million allocation to a statewide voting system to be ready for implementation in the 2020 election cycle.
• $5 million recurring and $23 million nonrecurring to the Department of Administration for capital improvements of the buildings in our state with desperate need.
• $50 give back to every South Carolinian with an income tax liability.

Transportation Regulatory:

• $8 million for rest areas of the state to begin the process of improving what visitors and residents of the state alike see when they travel South Carolina highways.
• Crucial funding for our smaller airports in the state. $1 million for federal grants for infrastructure and improvements of the smaller airports.
• New funding for a bilingual position at the Human Affairs Commission. This investigator will allow them to continue to assist businesses and individuals in the state and keep the federal government out of our affairs.
• $3 million increase for the operating budget of the Department of Motor Vehicles to provide efficient and excellent customer service in the state and continued implementation of REAL ID.

Given Second Reading:

H.4001 – Capital Reserve Fund: To appropriate monies from the Capital Reserve Fund for Fiscal Year 2018-2019 and allow unexpended funds appropriated to be carried forward to succeeding fiscal years and expended for the same purposes. Ordered for third reading on the next legislative day.

Enrolled For Ratification:

H.3398 – Tucker Hipps Transparency Act: A bill to remove the sunset provision of the Tucker Hipps Transparency Act as established by Act 265 of 2016 to required public institutions of higher learning to maintain a report of factual findings of violations of the institution’s Conduct of Student Organizations by fraternity and sorority organizations formally affiliated with the institution.

For more questions on the General Appropriations Bill and additional legislation being considered by the Senate, please drop us a line! WE WANT TO HEAR FROM YOU. 

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 LEGISLATIVE UPDATE : April 8-12, 2019

Wednesday of this week, April 10, marked the General Assembly “crossover” deadline. Crossover is the last day for a bill to pass out of the chamber in which it was introduced, with a simple majority vote, for it to be considered in the opposite chamber. The crossover deadline is a critical deadline for Senate bills to be sent to the House for consideration in this legislative session. The Senate bills listed below received a third reading prior to the crossover deadline.

On The Floor:

TORT CLAIMS — Referred to as a ‘tort,’ a civil wrong that may cause a claimant to suffer loss, injury or harm may occur specifically at the hands of a government entity or political subdivision. Senate Bill 7 increases increase the limits from a loss, under the Tort Claims Act, from a single occurrence for persons to five hundred thousand dollars and total sum arising out of a single occurrence to one million dollars. Additionally, a party who files an offer of judgement shall be allowed to recover administrative, filing or other court costs, and eight percent interest on the amount of the verdict from the date of the offer. The bill now heads to the House for further consideration.

CHILD TORTURE — Children are among the most vulnerable, and must be ensured protection. Senate Bill 189 cements that it is unlawful to commit torture or allow torture to be committed against a child and further define terms. ‘Torture’ includes, but is not limited to, inflicting or participating in or assisting in inflicting intense physical or emotional pain upon a child repeatedly over a period of time for the purpose of terrorizing the child or for the purpose of satisfying the sadistic, craven, cruel or prurient desires of the perpetrator or another person. A person is guilty of homicide by child abuse if the person causes the death of a child while committing torture or knowingly aids and abets another person to commit torture that results in the death of a child. Homicide by child abuse is a felony and a person who is convicted must be imprisoned for life or must be imprisoned for a term of not less than twenty years. The bill now heads to the House for further consideration.

CHILDCARE FACILITY REGISTRY — A bill to prohibit a childcare facility from employing a caregiver or other staff that is registered or required to register on the National Sex Offender Registry, State Sex Offender Registry, or Central Registry, and State Child Abuse and Neglect Registry. The bill now heads to the House for further consideration.

CHILDCARE FACILITY BACKGROUND CHECKS — Senate Bill 601 seeks to provide additional protections for those who care for children in childcare facilities. The bill provides restrictions on foster care or adoption placements to add background check requirements from each employee of a residential facility where children in foster care may be placed. No child in custody of the Department of Social Services may be placed in a foster home, adoptive home or residential facility if the person has a substantiated history of child abuse or neglect or has pled guilty or nolo contendere or has been convicted to offenses outlined in the section. The bill now heads to the House for further consideration.

EDUCATION OPPORTUNITY — Consolidation of school districts in certain instances have shown to provide an improved educational opportunities to children and cost savings to the district. Senate Bill 203 provides criteria for school district consolidation under certain circumstances. On or before August 1, 2022, any local school district that meets characteristics shall be eligible to receive appropriated funds for the purpose of consolidating with other districts within its county. Among the standards is a school in which if the daily membership is less than one thousand five hundred, and located within Tier IV county in the 2018 tax year. Eligible districts must submit a preliminary consolidation plan and timeline to the Department of Education for review and use of funds. The eligible district may not incur new bond indebtedness, spend existing district reserves, dispose of district assets or increase the salary of any district employee without prior approval by the Department, unless otherwise directed by the General Assembly. The bill now heads to the House for further consideration.

THREATENING WITH DANGEROUS WEAPON —  Senate Bill 276 provides that it is unlawful for a person to threaten, solicit another to threaten, or conspire to threaten to cause damage, serious bodily injury, or death. This bill also provides it unlawful to cause damage to or destroy a building or other real or personal property by use of a dangerous weapon on any premises or property owned, operated, or controlled by any post-secondary institution, in a church, in any publicly owned building or recreational park areas or in a public gathering place. A person charged may, as a condition of his bond hearing and any subsequent bond hearing, undergo a mental health evaluation. If the evaluation reveals the person needs mental health treatment, then the court shall require him to undergo mental health treatment or counseling. The Department of Mental Health shall study the scope of applications and financial impact of this act and shall annually make a report to the General Assembly containing its finding by January 1 beginning in 2020. The bill now heads to the House for further consideration.

MISREPRESENTING SERVICE ANIMALS — Animals trained to provide service can provide great care and support to individuals with a disability or need. Unfortunately, some fraudulently claim the use of animals for service which undermines lawful use of service animals. Senate Bill 281 provides the needed clarity for service animals by making it unlawful for a person to intentionally misrepresent an animal as a service animal or service animal in-training for the purpose of obtaining any right provided to a disabled person, and provide penalties. Inquires made in order to investigate are limited to those inquires allowed by the Department of Justice. A uniform traffic ticket may be used for the arrest. Landlords may request documentation to verify tenant’s lawful use of a service animal, which shall be deemed sufficient if it establishes an individual has a disability and the animal will provide disability-related assistance or support. The bill now heads to the House for further consideration.

CERTIFYING CORONER AND SHERIFF CANDIDATES — Senate Bill 17 provides that the duties of the county boards of voter registration and elections are responsible for certifying that county’s candidates for country coroner and country sheriff. The bill now heads to the House for further consideration.

TRANSPORT OF PERSONS OF MENTAL ILLNESS —  Transportation individuals believed to to have a mental illness is a need and must done with care. Senate Bill 303 provides that a state or local law enforcement officer responsible for transporting a patient believed to have a mental illness must be part of the therapeutic transport unit and have undergone mental health and crisis intervention training to provide that a physician is responsible for the patient’s care and must notify a friend or relative that they may transport the patient to the facility, and that the friend or relative freely chooses to assume the responsibility and liability for the transport. The bill now heads to the House for further consideration.

ALCOHOL SERVER TRAINING — Senate Bill 342 enacts provisions to provide training and responsibility for those who serve alcohol. The “Responsible Alcohol Server Training Act” implements and enforces mandatory alcohol server training and education programs to businesses to obtain alcohol server certificates. This requires servers of all alcoholic beverages for on-premises consumption in licensed or permitted businesses to obtain alcohol server certificates, and to require fees from providers of training programs and from applicants for alcohol server certificates. Training programs must only be either online or in the classroom. Topics covered in this bill include, but are not limited to, state laws regulation alcohol purchasing, liquor liability issues, impaired driving or driving under the influence, information on blood alcohol concentration and factors that change this, the effect alcohol has on the human body and human behavior, methods of refusing to serve or sell alcoholic beverage to individuals under twenty-one years of age and intoxicated individuals, methods for properly and effectively checking the identification of an individual, for identifying illegal identification, and life consequences, like losing education scholarships, relating to minors use. The bill now heads to the House for further consideration.

NAVAL CRIMINAL INVESTIGATION AUTHORITY — Senate Bill 413 adds Naval Criminal Investigative Service Agents to the list of authorized federal law enforcement officers to enforce the state’s criminal laws. The bill now heads to the House for further consideration.

PORT CARGO TAX CREDIT — A bill, S.439, increases the maximum amount of tax credits allowed to all qualifying taxpayers from eight million to fifteen million dollars for each calendar years, as it relates to cargo volume, port transportation, transportation of freight, good and materials. The bill now heads to the House for further consideration.

FINGERPRINT BACKGROUND CHECKS —  Senate Bill 480 relates to South Carolina Law Enforcement Division to provide that an agency authorized to conduct fingerprint background checks in this state may conduct a federal fingerprint review to provide that SLED, upon request, may submit the fingerprints collected by agencies to the Federal Bureau of Enforcement Division. SLED and the FBI may retain collected fingerprints and search any retained fingerprints later pursuant to an appropriate inquiry. The bill now heads to the House for further consideration.

REAL ESTATE BACKGROUND CHECKS — Senate Bill 649 provides that certain real estate professionals must undergo criminal background checks for initial applications for licensure and for licensure renewals, as well as property managers and property managers-in-charge. Each of the provisions is effective for initial license applications or renewals due on or after July 1, 2020. The bill now heads to the House for further consideration.

GOLF CART ALLOWANCES —  Senate Bill 666 allows a municipality with a land area of approximate 3.87 square miles and a population estimated as of July 1, 2017, to be between ten and eleven thousand persons by the United States Census Bureau’s Population Estimate Program that is located within a county that had a population of two hundred twenty-six thousand seventy-three persons according to the 2010 United States Census may enact an ordinance allowing the operation of a permitted golf cart for up to sixty minutes after sunset on locally owned roads for which the posted speed limit is twenty-five miles an hour or less if the golf cart has operable headlights and brake lights. The bill now heads to the House for further consideration.

In Committee:

Senate Finance Committee:

S.678 – Local Government Fund: A bill relating to the Local Government Fund to provide that in any fiscal year in which general fund revenues are projected to increase or decrease, the appropriation to the LGF must be adjusted by the same projected percentage change, but not exceeding five percent. The adjustment must be determined by the Revenue and Fiscal Affairs Office with the Board of Economic Advisors’ most recent projection of recurring general revenue.

Senate Labor, Commerce and Industry Committee:

S.394 – Auxiliary Containers: A bill to provide that any regulation regarding the use, disposition, sale or imposition of any prohibition, fee, imposition or taxation of auxiliary containers must be done only by the General Assembly. The article supersedes and preempts any ordinance enacted by a political subdivision that purports to regulate at the retail, manufacturer or distributor level. The provision does not limit any recycling program, or ordinance pertaining to the use of auxiliary containers on exempted properties such as state, county, or municipal park or properties including coastal tidelands, wetlands, public beach, river or other body of water.

S.506 – Housing Authority Commissioners: A bill to provide that a county legislative delegation may adopt a resolution declaring that there exists a state of emergency with regard to a municipal housing authority that if convincing evidence or action or failure to act in which residents are subjected to unreasonably hazardous conditions or being subjected to conditions that led to the death or one or more residents, the commissioners are immediately suspended from office for ninety days. During this period of suspension, the mayor, or the mayor’s designee, shall exercise the powers and duties of the housing authority. Concurrently, the council of the municipality shall conduct an independent investigation into the circumstances under which the state of emergency was declared. Commissioners shall have the right to be heard in person or by counsel during the mayor’s investigation. If the council determines the authority took action or failed to take action meeting the conditions, the commissioners are immediately removed from office and the council shall appoint new commissioners.

For more questions on the above bills or additional legislation being considered by the Senate, please reach out! WE WANT TO HEAR FROM YOU. 

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 LEGISLATIVE UPDATE : March 25-29, 2019

On The Floor:

CRUELTY TO ANIMALS — Cruel treatment of animals should be admonished and prevented. Senate Bill 105 sets clear standards and the education for how South Carolina views the ill treatment of animals. The bill provides that every four years magistrates and municipal court judges must receive at least two hours of instruction on issues concerning animal cruelty. The legal education must be determined by the South Carolina Court Administration at the direction of the Chief Justice of the South Carolina Supreme Court. To provide that it is unlawful to tether a dog in a manner in which the dog is unattended for more than sixty minutes without continuous access to sustenance and shelter; by means of choke collar, prong collar, logging chain or tow chain; if the dog is young than six months of age; and in a manner that limits reasonable access to usable space; and provides exceptions for use a tether in certain circumstances. To provide additional changes to the grants relating to spaying and neutering programs, veterinarian technician duties in an emergency or natural disaster, and shelter standards. The bill now heads to the House for further consideration.

BUSINESS SAFETY — Senate Bill 109 defines “electric fence” and sets the allowances for use of electric fences to protect businesses and industry. An “electric fence” means an electrified fence with a height not to exceed ten feet or two feet higher than the perimeter fence equipped with an energizer that does not exceed twelve volts DC. The charge produced must meet and not exceed the International Electrotechnical Commission Standard. No electric fence may be used without a surrounding non-electrical fence or wall not less than five feet high. Electric fences shall be permitted on property not zoned exclusively for residential use and must post ‘Warning — Electric Fence’ signs within intervals not more than sixty feet. Electric fence does not mean an electrified fence erected for agricultural or wildlife habitat management purposes. The bill now heads to the House for further consideration.

EFFICIENCIES IN LICENSING — Senate Bill 573 provides that the Board of Financial Institutions may participate in the Nationwide Multistate Licensing System, requiring check cashing business and deferred presentment lenders to fulfill their licensing paperwork requirements using the NMLS. The process shifts toward a fully electronic process resulting in faster turn-around times for licenses and greater efficiencies at the Board. All fees will be handled directly by the System for processing background and credit checks as well as collecting applications and providing documents to the Board. The bill now heads to the House for further consideration.

INSURANCE RATE INCREASE LIMITS — Senate Bill 579 passed this week clarifies that for automobile insurance, an insurer must wait six months before it can request an additional rate increase. Provisions align the number of increases with the average auto policy length of six months. The bill provides more flexibility to respond to market conditions. Nothing in the bill restricts the Director’s prerogative to review all filings and rates to see if rates are excessive, too low or unfairly discriminatory. The bill now heads to the House for further consideration.

LIFE AND HEALTH GUARANTY — Senate Bill 580 provides updates to the Life and Accident and Health Insurance Guaranty Association. Among the changes: add Health Maintenance Organizations to the association, to establish that assessments related to long-term care contracts will be split 50/50 between health insurers and life insurers, and to add language that spells out how reinsurance is handled during an insolvency or impairment. The bill also clarifies who can receive benefits from the association and the limits on those benefits. The bill now heads to the House for further consideration.

ADVERTISING ON COMMERCIAL BENCHES — A bill, S. 593, deletes the expiration date of permits to a regional transit authority or public transit operator to install and maintain benches upon which commercial advertisements are placed provided that each bench will be located on of the applicant’s bus stops, within the right-of-way of a public road a, and the applicant otherwise meets all relevant federal statutory and regulatory requirements. The bill heads to the House for further consideration.

INDUSTRIAL DEVELOPMENT BONDS — S.621 is a bill to amend the code relating to the issuance and refunding of bonds by the Jobs-Economic Development Authority to conform to recent finalized regulations promulgated by the U.S. Department of the Treasury that modify the requirements for public notice, public hearings, and approval of private activity bonds. These regulations are required as part of the Tax Equity and Fiscal Responsibility Act of 1982. A public hearing is held required to federal law to enable interest on such bonds to be excluded from gross income for federal tax purposes. Notice of a public hearing must be provided to the public and clerk of county council or municipal council. The bill heads to the House for further consideration.

FOOD DONATION CREDITS — Senate Bill 647 adds wild hogs to the eligibility for a nonrefundable tax credit for processing donated for charitable distribution and ensures that no portion of the wild hog may be used by a commercial enterprise. The amount of the credit is seventy-give dollars for each carcass processed and donated. The credit must be claimed in the year earned and may not be carried to any other taxable year. The bill now heads to the House for further consideration.

In Committee:

Senate Judiciary Committee:

S.17 – Certifying Coroner and Sheriff Candidates: A bill relating to the duties of the county boards of voter registration and elections are responsible for certifying that county’s candidates for country coroner and country sheriff.

S.180 – Drones Over Military Installations: A bill relating to trespasses and the unlawful use of the property of others. This states that it is unlawful to operate an unmanned aerial vehicle within a horizontal distance of five hundred feet or a vertical distance of two hundred fifty feet from the flight path of a federal military installation with restricted public access without written consent. Violation and conviction of not abiding will result in either a less than $500 fine, less than 30 days imprisonment, or both.

S.276 – Threatening with Dangerous Weapon: A bill to provide that it is unlawful for a person to threaten, solicit another to threaten, or conspire to threaten to cause damage, serious bodily injury, or death. This bill also provides it unlawful to cause damage to or destroy a building or other real or personal property by use of a dangerous weapon on any premises or property owned, operated, or controlled by any post-secondary institution, in a church, in any publicly owned building or recreational park areas or in a public gathering place. If this is violated, the person charged must undergo a mental health evaluation and, if necessary, mental health treatment or counselling.

S.342 – Alcohol Server Training: A bill to enact the “Responsible Alcohol Server Training Act” by implementing and enforcing mandatory alcohol server training and education programs to businesses to obtain alcohol server certificates. This requires servers of all alcoholic beverages for on-premises consumption in licensed or permitted businesses to obtain alcohol server certificates, and to require fees from providers of training programs and from applicants for alcohol server certificates. Training programs must only be either online or in the classroom. Topics covered in this bill include, but are not limited to, state laws regulation alcohol purchasing, liquor liability issues, impaired driving or driving under the influence, information on blood alcohol concentration and factors that change this, the effect alcohol has on the human body and human behavior, methods of refusing to serve or sell alcoholic beverage to individuals under twenty-one years of age and intoxicated individuals, methods for properly and effectively checking the identification of an individual, for identifying illegal identification, and life consequences, like losing education scholarships, relating to minors use.

S.480 – Fingerprint Background Checks: A bill relating to South Carolina Law Enforcement Division to provide that an agency authorized to conduct fingerprint background checks in this state may conduct a federal fingerprint review to provide that SLED, upon request, may submit the fingerprints collected by agencies to the Federal Bureau of Enforcement Division. SLED and the FBI may retain collected fingerprints and search any retained fingerprints later pursuant to an appropriate inquiry.

S.534 – Sheriff Qualifications: A bill to provide qualifications that a sheriffs and sheriff candidates must possess to serve as sheriff including, but not limited to, five years’ experience as Class 1 law enforcement officer, and have not been convicted of, pled guilty to, or pardoned for a felony or crime of moral turpitude in the State. Removes section relating to serving as summary court judge for at least ten years.

S.640 – Clerks of Court Reporting: A bill to provide that Magistrates shall report the disposition of each criminal case to the State law Enforcement Division within ten days, weekends and holidays excluded. Magistrates shall also report to SLED within 48 hours the issuance of any restraining orders, court orders of protection from domestic abuse act orders, any orders of state firearms prohibition and any orders that may prohibit a person from legally purchasing or possessing a firearm. Similar provisions are applicable to reporting by municipal judges and clerks of family court.

H.3483 – Coal Residuals: A bill to repeal Section 3 of Act 138 of 2016 relating to the automatic repeal of provisions requiring certain coal combustion residuals to be placed in a Class 3 landfill.

Senate Family and Veterans’ Services Committee:

S.595 – Childcare Facility Registry: A bill to prohibit a childcare facility from employing a caregiver or other staff that is registered or required to register on the National Sex Offender Registry, State Sex Offender Registry, or Central Registry, and State Child Abuse and Neglect Registry.

S.601 – Childcare Facility Background Checks: A bill to provide restrictions on foster care or adoption placements to add background check requirements from each employee of a residential facility where children in foster care may be placed. No child in custody of the Department of Social Services may be placed in a foster home, adoptive home or residential facility if the person has a substantiated history of child abuse or neglect or has pled guilty or nolo contendere or has been convicted to offenses outlined in the section.

Senate Education Committee:

S.15 – Financial Literacy: A bill to provide that beginning with the 2020-2021 School Year, each high school shall offer a one-half credit course in personal finance as an elective that students may use to complete graduation requirements. The curriculum shall incorporate competencies pursuant to Financial Literacy Instruction, and the Department of Education shall develop the curriculum for coursework before July 1, 2020.

H.3929 – Make Up Days: A joint resolution to provide that during the 2018-2019 school year, the State Board of Education may waive requirements for making up days beyond the three days that may be forgiven because of snow, extreme weather conditions or other disruptions requiring schools to close. The waivers may only be considered and granted upon requires of the local school board of trustees through a majority of the vote of that board.

For more questions on the above bills or additional legislation being considered by the Senate, please reach out! WE WANT TO HEAR FROM YOU. 

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 LEGISLATIVE UPDATE : March 18-22, 2019

On The Floor:

DAYLIGHT SAVING TIME — Raise your hand if you always seem to forget to reset your clocks to daylight saving time.  The Senate passed a resolution this week, S.11, to provide that if the United States Congress authorizes states to observe daylight saving times year round, it is the intent of the South Carolina General Assembly that daylight saving time be the year-round standard of the entire state and all of its political subdivisions. The bill now heads to the House for further consideration.

PHYSICIAN ASSISTANCE ACT —  A physician assistant or PA can be of great benefit to providing collaboration with licensed physicians and providing limited medical care to patients Senate Bill 132, passed this week by the Senate, defines “physician assistant” or “PA” and further defines the scope of practice between a PA and physician. The bill creates a Physician Assistant Committee as an advisory committee to the board to evaluate qualifications for licensure and make recommendations to the board. The committee will consist of nine members appointed by the Board of Medical Examiners — three licensed PAs with minimum of three years of patient care, two who must be consumers, and three physicians licensed to practice in the state. PAs may perform certain tasks within the written scope of practice — health histories and exams, medical treatments, diagnosing studies, educating patients, consultations, issuing medical orders and obtaining consent, pronounce and certify cause of death, sign death certificates.  A scope of practice agreement must be signed by PA and physician done at least annually, made available to the board and if failed to do so deemed misconduct by the PA. Other conditions apply within this section. The bill now heads to the House for further consideration.

ELECTRONIC PRESCRIPTIONS — Electronic prescribing or e-prescribing can be beneficial in increasing dispensing times, improving security, and reducing fraudulent prescriptions, but there can be challenges to change in technology. Senate Bill 136 addresses the benefits and challenges of electronic prescriptions. The bill adds “electronic” to references to written prescriptions. A practitioner may not dispense controlled substance in Schedule II without the written or electronic prescription. The provision provides exceptions if a documented technological or electronic failure occurs, if dispensed by a Federal pharmacy, for the practice of veterinary medicine, elements of the prescription are not supported by technology or for a patient discharged from hospital, emergency room or urgent care. If approved by the General Assembly and signed by the Governor, the act takes place beginning January 1, 2021 to provide time to for technological and system updates. The bill now heads to the House for further consideration.

PRESCRIBER SUPPLY — Senate Bill 463 provides that a pharmacist dispensing medications may, absent of a prescriber’s orders to the contrary, dispense medications in a 90-day supply. The provision does not ably to scheduled medications, psychotherapeutic drugs and medications subject to reporting under the prescription monitoring program. The bill does not supersede or invalidate any third party payor agreement. The bill now heads to the House for further consideration.

ELECTRONIC NOTARY — Senate Bill 486 allows notaries to notarize documents using an electronic/digital signature for an electronic document. The signor my physically appear in front of the notary. Additionally, remote online notarization will allow the notary and signor to be in two different locations if the signor appears in front using audio-visual technology, may be sent via email or other electronic means and provides additional security, and other items. The bill now heads to the House for further consideration.

CHILDREN’S TRUST FUND — Ensuring that children in South Carolina are protected is of paramount importance. Senate Bill 498 provides that the South Carolina Children’s Trust Fund shall have access at any reasonable time to electronic information systems, records, reports and materials maintained by the Department of Social Services or the Department of Children’s Advocacy for the purposes of bona fide research on child abuse or neglect, quantitative or qualitative evaluation of prevention programs to reduce child abuse or neglect, or the assessment of service needs and gaps for the prevention of child abuse or neglect. The Trust Fund shall adhere to all information security policies, standards, guidelines and procedures promulgated by the Division of Technology of the Department of Administration with respect to all records, reports and materials.

NUCLEAR ADVISORY COUNCIL  — Established in Act 357 of 2000, the Nuclear Advisory Council is charged with advising the Governor on numerous issues pertaining to the nuclear industry in South Carolina, including the Atlantic Compact, the Barnwell commercial low-level radioactive waste disposal facility, the Savannah River Site, and others. Senate Bill 206 renames the Nuclear Advisory Council to the “Governor’s Nuclear Advisory Council,” and provides that the Council shall be responsible to the Director of the Department of Administration and report to the Governor. The bill now heads to the House for further consideration.

TEXTILE COMMUNITIES REVITALIZATION — A bill, S.440, was passed by the Senate to amend the South Carolina Textiles Communities Revitalization Act to provide that the purpose of the credit related to new or rehabilitated buildings on contiguous parcels, do not include expenses that increase the square footage of the buildings that existed immediately preceding the time at which the textile mill became abandoned by more than two hundred percent. The bill now heads to the House for further consideration.

FISH CATCH LIMITS — The Senate passed two bills this week to adjust catch limits for Spadefish (S.474) and Tripletail (S.475). Senate Bill 474 provides that it is unlawful for a person to take or have in possession more than ten spadefish in any one day, not to exceed thirty spadefish in one day on any boat. Senate Bill 475 provides that it is unlawful for a person to take or have in possession more than three tripletail in any one day, not to exceed nine tripletail in one day on any boat. The bills now head to the House for further consideration.

In Committee:

Agriculture and Natural Resources:

S.107 — Dams: A bill relating to dams to define regulated dam as a reservoir where failure of such dam would cause damage to human life or property of others, exempts low hazard (Class III) dams whose failure would only cause minimal property damage. The bill would require dam owners to provide DHEC with contact information and a completed dam owner safety checklist on a prescribed schedule and report changes within 30 days. Owners may request a waiver if the department determines they impose a significant hardship on the owner. Provisions maintain that owners must have an emergency plan in place to notify emergency officials and DHEC if the dam has failed or is near failure. The bill also includes other language relating to repairs of dams, inspection by DHEC, exemptions for agricultural, fishing and recreational dams that pose no significant danger to human life or property and establishes a refundable tax credit for dam repairs required by DHEC.

Banking and Insurance Committee:

S.133 — Flood Damage Mitigation: A bill to expand the South Carolina Hurricane Damage Mitigation Program, established within the Department of Insurance, to include flood damage. Adding to the use of grants will be raising the dwelling above the minimum required elevation standards, the adding of vents to enclosures, installing breakaway walls, and relocating the dwelling further from the flood source. On July 1, 2019 and July 1, 2020 the amount of remitted premium tax the department may use to implement the program is increased by one percent so that when fully phased in on July 1, 2020 the department may use three percent of the remitted premium taxes to implement the program.

S.580 — Life and Health Guaranty Association: A bill to update the Life and Accident and Health Insurance Guaranty Association. Among the changes: add Health Maintenance Organizations to the association, to establish that assessments related to long-term care contracts will be split 50/50 between health insurers and life insurers, and to add language that spells out how reinsurance is handled during an insolvency or impairment. The bill also clarifies who can receive benefits from the association and the limits on those benefits.

Senate Finance Committee:

S.185 — Angel Investor Act: A bill to extend the sunset of the High Growth Small Business Job Creation Act of 2013, commonly referred to as the Angel Investor Act, to repeal on December 1, 2025.

S.530 — Consolidated Procurement Code: A bill to update the Consolidated Procurement Code. The update clarifies that the notification shall occur to the Director of the Division of Procurement Services; further define terms such as “information technology,” “information resources,” “database,” “software,” and more; provide that a business day does not mean Saturday, Sunday nor state or federal holiday; provide use of ‘public funds;’ and other related awards and items.

S.621 — Industrial Development Bonds: A bill to amend the code relating to the issuance and refunding of bonds by the Jobs-Economic Development Authority to conform to recent finalized regulations promulgated by the U.S. Department of the Treasury that modify the requirements for public notice, public hearings, and approval of private activity bonds. These regulations are required as part of the Tax Equity and Fiscal Responsibility Act of 1982. A public hearing is held required to federal law to enable interest on such bonds to be excluded from gross income for federal tax purposes. Notice of a public hearing must be provided to the public and clerk of county council or municipal council.

S.647 — Tax Credits for Donation of Wild Hogs: A bill to add wild hogs to the eligibility for a nonrefundable tax credit for processing donated for charitable distribution. No portion of the wild hog may be used by a commercial enterprise. The amount of the credit is seventy-give dollars for each carcass processed and donated. The credit must be claimed in the year earned and may not be carried to any other taxable year.

S.655 — Job Tax Credits for Professional Sports Teams: A bill to add ‘professional sports teams’ to qualifying entities eligible to receive job tax credits. ‘Professional sports team’ means a team or club included in a professional league such as the National Football League, National Association for Stock Car Racing or the National Basketball Association, primarily engaged in live sporting events before a paying audience with an annual payroll for federal tax purposes of not less than one hundred ninety million dollars and not less than one hundred fifty employees.

H.4157 — Statewide Voting System Solution: A joint resolution to extend the deadline to submit offers for a solicitation for a statewide voting system solution for the South Carolina Elections Commission to April 4, 2019 and create a special evaluation panel to evaluate and score the offers.

Fish, Game and Forestry Committee:

S.575 — Wild Turkey Tags: A bill to revise the seasons for hunting wild turkey in the four Game Zones; provides for a one turkey limit during the first ten days of a season. The bill establishes a $10 fee for set of turkey tags for residents and $50 fee for set of tags for nonresidents. Persons under the age of 16, lifetime licensees and gratis licensees have no cost. Additionally, ‘Youth Turkey Day’ for persons under the age of 18 is established the Saturday preceding the start of a game zone turkey season. The bag limit is one male wild turkey.

H.3750 — Deer Hunting Tags: A bill to provide that a resident who purchases a South Carolina Hunting License and a Big Game Permit must receive at least two antlerless deer tags.

Senate Medical Affairs Committee:

S.303 — Transport of Persons of Mental Illness: A bill to provide that a state or local law enforcement officer responsible for transporting a patient believed to have a mental illness must be part of the therapeutic transport unit and have undergone mental health and crisis intervention training to provide that a physician is responsible for the patient’s care and must notify a friend or relative that they may transport the patient to the facility, and that the friend or relative freely chooses to assume the responsibility and liability for the transport. Officers in a therapeutic transport unit should dress in civilian clothes and use an unmarked sedan to the extent possible when transporting a patient.

H.3274 — Political Subdivisions Cigarette Ordinances: A bill to provide that political subdivisions of the state may not enact any laws, ordinances or rules pertaining to the ingredients, flavors or licensing of cigarettes, electronic cigarettes, tobacco products or alternative nicotine products. Laws, ordinances or rules enacted prior to January 1, 2019 are exempt from the preemption imposed.

Senate Transportation Committee:

S.401 — Construction of the State Highway System: A bill to provide that an entity undertaking a highway improvement project bears the cost of relocating water and sewer lines. Eligibility for payment of relocation costs to be placed under control of a general contractor, unless the utility ops out pursuant to certain parameters. Nothing prohibits or limits payment for relocation when a public utility has prior right to situate lines in present location. The Act applies to transportation improvement projects for which no more than 25% of preliminary engineering funds have been spent as of the effective date.

S.593 — Commercial Advertisement Benches: A bill to delete the expiration date of permits to a regional transit authority or public transit operator to install and maintain benches upon which commercial advertisements are placed provided that each bench will be located on of the applicant’s bus stops, within the right-of-way of a public road a, and the applicant otherwise meets all relevant federal statutory and regulatory requirements.

H.3310 — Surrender of Certificates of Title: A bill to provide that if an insurance company or its agent is unable to obtain the certificate of title from the claimant within thirty days after acceptance by the claimant an offer in a settlement of total loss, the insurance company may submit an application to the department for a salvage certificate of title. The application shall include evidence that the insurance company or its agent has fulfilled its settlement with and made two or more written attempts to obtain the certificate of title from the claimant.

For more questions on the above bills or additional legislation being considered by the Senate, please reach out! WE WANT TO HEAR FROM YOU. 

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 LEGISLATIVE UPDATE : March 11-15, 2019

On The Floor:

CLOSING THE SALES AND USE GAP — We are living in a tech-based world and a growing tech-based economy. Our brick and mortar shops invest in our state and serve a vital function for goods and services. Our online retailers ought to play by the same rules. Senate Bill 214 clarifies that any person that engages in the business of facilitating a retail sale of tangible personal property — including but not limited to any space, store, catalog, website, television, radio broadcast, or similar place — is responsible for remitting the sales and use tax to the State. The term “marketplace facilitator” is used for these online business and would require each seller to collect and remit the tax and obtain a retail license if the seller maintains a place of business; qualifies to do business; solicits purchases by an agent, independent contractor, or internet website; and meets constitutional standards for economic nexus with South Carolina. The bill now heads to the House for further consideration.

SUPERB ACCOUNT FINANCIAL RESPONSIBILITY —  Senate Bill 525 repeals the 2026 sunset of the environmental impact fee for the Superb Account and Superb Financial Responsibility Fund, Section 44-2-90. The accrued interest will continue to be applied to a respective account. The bill was given a third reading and was sent to the House.

In Committee:

Senate Transportation Committee:

S.509 — Nonfranchise Automobile Dealer License: A bill to provide that an initial nonfranchise automobile dealer license entitles a licensee to carry on and conduct business of a nonfranchise automobile dealer. The license of a nonfranchise automobile dealer expires annually the last day of the month of the year following its issuance. Renewal must not be granted unless the licensee submits satisfactory proof of at least four hours of attendance at DMV-approved continuing education prior to the renewal. The provision does not apply to a franchised automobile dealer or a nonfranchised automobile dealer owned and operated by a franchised automobile dealer, nor does it apply to a nonfranchised automobile dealer whose primary business is salvage motor vehicles.

Senate Family and Veterans’ Services Committee:

S.189 — Child Torture: A bill to provide that it is unlawful to commit torture or allow torture to be committed against a child and further define terms. ‘Torture’ includes, but is not limited to, inflicting or participating in or assisting in inflicting intense physical or emotional pain upon a child repeatedly over a period of time for the purpose of terrorizing the child or for the purpose of satisfying the sadistic, craven, cruel or prurient desires of the perpetrator or another person. A person is guilty of homicide by child abuse if the person causes the death of a child while committing torture or knowingly aids and abets another person to commit torture that results in the death of a child. Homicide by child abuse is a felony and a person who is convicted must be imprisoned for life or must be imprisoned for a term of not less than twenty years.

S.486 — Electronic and Remote Notaries: A bill to allow notaries to notarize documents using an electronic/digital signature for an electronic document. The signor my physically appear in front of the notary. Additionally, remote online notarization will allow the notary and signor to be in two different locations if the signor appears in front using audio-visual technology, may be sent via email or other electronic means and provides additional security, and other items.

S.498 — Children’s Trust Fund: A bill to provide that the South Carolina Children’s Trust Fund shall have access at any reasonable time to electronic information systems, records, reports and materials maintained by the Department of Social Services or the Department of Children’s Advocacy for the purposes of bona fide research on child abuse or neglect, quantitative or qualitative evaluation of prevention programs to reduce child abuse or neglect, or the assessment of service needs and gaps for the prevention of child abuse or neglect. The Trust Fund shall adhere to all information security policies, standards, guidelines and procedures promulgated by the Division of Technology of the Department of Administration with respect to all records, reports and materials.

H.3180 — Servicemembers Civil Relief Act: A bill to conform to federal law and expand protections for members of the Armed Forces and their families. Servicemembers who receive orders for a permanent change of station may cancel service contracts with providers who do not provide the same service in the area where the Servicemember is being re-stationed. The provision applies to telecommunication services, internet services, television services, athletic or gym membership and satellite radio services. Additionally, Servicemembers or their families may file a civil action against companies that violate this section.

H.3438 — Division of Veterans Affairs: A bill to re-establish the Division of Veterans Affairs, currently residing in the Department of Administration, as a cabinet-level agency under direct supervision of the Governor to be known as the Department of Veterans Affairs. The Agency head will be established as “Secretary,” and must be appointed by the governor and confirmed with Advice and Consent of the Senate, provide clarifying and conforming provision for the authorities of the Secretary and no longer required County Veterans Affairs Officers to be veterans or be a member of the SC Association of County Veterans Affairs Officers.

Senate Judiciary Committee:

S.11 — Daylight Saving Time: A bill to provide that if the United States Congress authorizes states to observe daylight saving times year round, it is the intent of the South Carolina General Assembly that daylight saving time be the year-round standard of the entire state and all of its political subdivisions.

S.206 — Nuclear Advisory Council: A bill to rename the Nuclear Advisory Council to the “Governor’s Nuclear Advisory Council,” and provide that the Council shall be responsible to the Director of the Department of Administration and report to the Governor.

S.413 — Naval Criminal Investigation Authority: A bill to provide that Naval Criminal Investigative Service Agents are authorized to enforce the state’s criminal laws by federal law enforcement officers.

H.3420 — Youth Access to Tobacco Prevention: bill to prohibit minors from entering retail establishments that primarily sell tobacco produces and/or alternative nicotine products, including use of mail, shipping or delivery that requires a signature over the age of eighteen released to the purchaser unless the Internet employ protections to ensure age verification. A retail establishment must conspicuously post on all entrances to the establishment that a person under eighteen years of age must not enter unless actively supervised and accompanied by an adult, age will be verified prior to purchase. if the United States Congress authorizes states to observe daylight saving times year

For more questions on the above bills or additional legislation being considered by the Senate, please reach out! WE WANT TO HEAR FROM YOU. 

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A Letter by Senator Sean Bennett

Spring, Summer, Fall, Winter…and Tax. The five seasons of the year. Or the fifth horseman of the apocalypse. Whichever you prefer.

Either way, the angst of taxes are felt across the board but can no longer be ignored. Our tax policy is an invisible weight around our economic neck.

At the end of last year, I wrote about our broken and antiquated tax system during the debate in the state legislature of whether or not to conform to changes made in the federal tax code.

I said then: “neither blanket conformity nor non-conformity is the answer as both result in negative impacts to South Carolina income tax payers…let’s not let this moment pass us by. Let’s do right by the taxpayers and finally pass a broad-based, pro-growth tax policy that is the best fit for all of South Carolina.”

I am pleased to say that the Senate, House and Governor worked together on a conformity bill that was forward-looking, fair and protected our most vulnerable in the state. Perfect? Far from it, but it did avoid the negative impacts from carte blanche conformity.

But our work is far from over. I have been fighting for years to reform the old, outdated state tax code to a new plan that provides real opportunity for middle-class earners, lifts up our working poor, allows our local companies to be more competitive in our global economy, and provides for real educational opportunities for our students.

I was selected to co-chair a special Senate committee tasked with conducting a comprehensive assessment of our state’s tax policy. Over the last few months, we have held hearings and received testimony from some of the nation’s foremost experts in economics and taxation. The findings are clear — our tax base is narrow and eroding further every day. It is unfair in that it creates disparities among taxpayers. It does not promote growth. And it is unsustainable.

That said, we are closer than we have been in decades to improving our tax system. The House of Representatives has joined the Senate in a call for sweeping tax reform, and the governor too has made it a priority.

In fact, Governor McMaster made reference to it thirteen times in his State of the State Address.

But what does this tax reform look like?

It must be fair, equitable, and predictable. It must enhance economic growth for all and align with the modern economy. It must be broad based with a low burden.

It starts with the income tax where 41 percent of taxpayers pay the state’s highest tax rate of 7 percent, while 42 percent pay nothing at all.

To compound this problem, the rate “kicks-in” at individuals making just $14,861 a year, harming those who can least afford it most. Let me be clear, SC has the highest marginal tax rate in the southeast and 12th highest in the nation.

But income tax reform alone will not produce the necessary results. We must also change the way we apply sales taxes and the grossly unequal, and often punitive, property tax system. A system where a single property can be subject to three different levels of taxation.

We can do better for working families.

Often forgot in the discussion of tax reform is the vital impact it has on the state’s education policy. Tax reform and education funding go hand-in-hand. We are missing the mark if we try to tackle one without the other.

Education funding — particularly for fast-growing districts — is most harmed not by inadequate funding but by improper distribution of resources. Current tax and education funding formulas make it nearly impossible to correct those inequities. Therefore, a commitment to real educational change can only be accomplished with accompanying bold fiscal improvements.

I will continue to advocate for a tax system that is transparent and easily understood, reform that controls the growth and expansion of government while insuring reliable funding of core government functions, security for the basic needs of the state and lifts up the working families who are harmed most from our current structure, and a system that limits new revenue to be used as a baseline for future spending — a shell game that governments often use to camouflage unnecessary spending increases.

Partnership is priority. Providing a high-quality education creates a vibrant, high-skilled workforce for our businesses and industries; a strong workforce means more jobs, better quality of life and opportunities for all; and a targeted, fair tax system creates a climate that foster new jobs, better opportunities and a South Carolina for which we can be proud.

Elected in 2013, Sean Bennett represents portions of Dorchester, Berkeley and Charleston counties in the South Carolina State Senate. In addition to serving as co-chairman of the Senate Finance Taxation System Review and Reform Subcommittee, he chairs the Senate Ethics Committee.

This letter was featured in an edition of the Berkeley Independent on March 13, 2019. 

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