Last week, the SC Senate and House were back to work and spent most of their time in committees and subcommittees helping build a calendar for each body so that votes on the respective floors can begin to take place. Below are the highlights of the week:
Subcommittee Adjourns Debate on Mining Bill
The Environmental Affairs Subcommittee of the House Agriculture, Natural Resources, and Environmental Affairs Committee met last week to take testimony on H. 3503. As filed, this bill would prohibit the Department of Environmental Services from issuing any permit for the construction of a solid waste management facility or for mining activities, respectively, if located within two miles of a public park or other public natural area. CAGC along with our aggregate partners opposed the legislation and the subcommittee adjourned debate on the bill taking no action.
SCDOT Budget Hearing
Last week, the Transportation and Regulatory Budget Subcommittee of the House Ways and Means Committee heard budget requests from SCDOT. Secretary Justin Powell shared a quick SCDOT update on the state of the department including EV impacts, the number of bridges, over 2400, that need to be replaced, and the massive growth the Department has seen in the constriction program that has reached $6.5 billion. Powell requested the subcommittee continue to fund the $120 million in general funds so that the SCDOT can match federal dollars they draw down, $200 million for bridges, $50 million for hurricane Helene damages, and $5 million for litter pickup. The subcommittee took no action, only received the budget requests that will be considered when the House Ways and Means Committee finalizes their version of the state budget.
Insurance Study Committee Finalizes Report
The Insurance Study Committee that was created out of a budget proviso last session met last week, issuing their final report. After holding a series of meetings during the off session, the study committee concluded and issued their report, which was, at best, the minutes of three study committee meetings. The committee adopted the report but made no recommendations.
Hands-Free Bill Discussed
Last week, Judiciary General Laws Subcommittee met and took testimony on H.3276, The South Carolina Hands-Free And Distracted Driving Act. The bill relates to the unlawful use of a wireless electronic communication device while operating a motor vehicle and creates the offense of distracted driving and provide penalties for doing so. The subcommittee unanimously approved the bill which will next be taken up by the full House Judiciary Committee.
Tort Reform Legislative Hearing Gets Shaft, Yet Again
A Judiciary Subcommittee was scheduled early last week to discuss S.184, Dram Shop Legislation, and S.244, our tort reform bill. This hearing was supposed to take place 30 minutes after the Senate adjourned on Thursday. But Subcommittee Chair Michael Johnson ended up canceling the meeting at the last minute with no promise to take the bill up next week. Feeling a little like Groundhog Day.
Meanwhile, shout out to Rep. Mark Smith and the 34 other members of the House for sponsoring our tort reform bill in the House. H. 3849 was filed last week.
House Rules Changed During Contentious Debate
Last week, following a contentious debate in the House, members adopted, 63-38, changes to the House rules. The changes, in H.3815, will impact parliamentary procedures, daily business, committees, and staff. Democrats and Freedom Caucus members opposed the changes, citing concerns with limiting debate.
The following is a summary of the changes:
- Deletes the motion period (the time when a legislator can formally propose a motion to take specific action on a bill) from the daily order of business.
- Changes the name of the Legislative Oversight Committee to the "Government Efficiency and Legislative Oversight Committee"
- Requires that Resolutions to memorialize Congress, the President, or any state or federal department or agency must go through the Committee process.
- Abolishes the Crossover deadline (bills were required to pass in one chamber and be referred to the other by April 10 to be considered during the last month of the session) which the Senate has already adopted.
- Establishes procedures for Committee meetings, including requiring public streaming of meetings.
- The Reading Clerk, Chaplain, and Sergeant at Arms staff cannot openly reflect their personal political beliefs or opinions on issues/campaigns.
- Delete rules related to the Committee of the Whole (an archaic and rarely used rule to create a special committee consisting of the entire body to consider unique or special matters, with the Speaker appointing a Chairman to preside).
Governor Delivers State of the State
Last week, Gov. Henry McMaster delivered his annual state of the state to the members of the SC General Assembly. McMaster highlighted the state’s economic success and encouraged legislators to support his legislative priorities, many of which will directly impact the construction industry. The full speech can be found here, with several pro construction initiatives pulled from McMasters speech highlighted below:
Income Tax Rate
“Until a few years ago, South Carolina had the highest personal income tax rate in the Southeast, the 12th highest in the nation. No more. Three years ago, I signed into law the largest income tax cut in state history, to drop the personal income tax rate from 7% to 6% over a period of five years. Our booming economy has created annual budget surpluses that have allowed us to accelerate these tax cuts faster than anticipated.
This year, I am proposing that we cut the state’s personal income tax rate again, from 6.2% to 6% – allowing taxpayers to keep an additional $193.5 million of their hard-earned money instead of sending it to state government.
However, we should not stop at 6%. We should keep cutting as much and as fast as we can until we can eliminate the personal income tax altogether.”
Eliminate Backlog of Permit Decisions
“Our state’s booming economy has dramatically increased the demand for permits: permits required to expand a business, construct a new facility, or deliver additional power and infrastructure - like water and sewer.
One of my first goals for the newly created cabinet agency, the Department of Environmental Services, was to eliminate any backlog of permit decisions and to establish a hard 90-day deadline for the decisions to be made.
I am recommending an appropriation of $13.7 million so the department can hire and train the employees they need to get this done. I believe you should be able to mark your calendar – to circle that date with a bright red marker – and know when a decision will be made.”
Reduce Professional License Burdens
“Over the years, the General Assembly has created over 42 different professional and occupational licensing boards, run by 350 appointed board members, who license and regulate over 500,000 South Carolinians in the workplace. They oversee accountants, architects, barbers, builders, cosmetologists, chiropractors, contractors, doctors, dentists, engineers, morticians, nurses, optometrists, pharmacists, realtors, and social workers, just to name a few.
Each year, the licensing of these professions seems to become more complicated and burdensome. I agree with my colleagues that it is time we pause, review the laws that created these boards along with their statutory requirements and determine whether they are necessary, effective, and balanced.”
Quick Passage of Tort Reform
“Future economic prosperity requires that our state’s civil justice system allows fair and prompt enforcement of our laws and proper redress of injury. This should not stifle job creation and economic growth. Yet the application of our current legal framework and rules are increasingly making South Carolina less competitive. The rules on joint and several liability have introduced an element of uncertainty. And uncertainty is the enemy of prosperity.
Individuals and businesses, both large and small, are becoming unduly penalized for the actions of others – too often through crippling financial judgments and skyrocketing insurance premiums. I ask the General Assembly to find a commonsense solution. One that will provide accountability, certainty, and just compensation - without damaging our economy. And one that I can sign into law the minute it reaches my desk.”
Solid SCDOT Program and Funding for Bridges
“Again, our state’s roads, bridges, highways, and interstates are the arteries of our prosperity. They need continued investment. The Department of Transportation has made tremendous progress in repairing and improving our transportation system. They have delivered a valuable return on our investments – with the strong help of the executive and legislative branches. For instance, in 2017, there were just $2.7 billion in road construction projects underway across the state. Today, we have $6.5 billion in projects happening in all 46 counties, with more to be done.
Our bridges are aging. The Department of Transportation reports that around 2,400 of the state’s 8,400 bridges are at the point of replacement or major repair. Without continued acceleration of investment, that number will swell to 3,900 in ten years. To that end, I am recommending an additional $100 million be appropriated to the Department of Transportation to continue accelerating bridge construction across the state.”
Helene Reimbursement
“The Department of Transportation needs an additional $50 million in this year’s state budget to cover costs related to debris removal and repairs to roads and bridges – costs that were not reimbursed by the federal government. The Office of Resilience needs an additional $40 million to replenish the two Disaster Relief and Resilience Reserve funds. Both the grant fund and revolving loan fund were utilized to provide immediate relief and resources on the ground to people impacted by Helene. I am also recommending that $150 million be appropriated to create the South Carolina Public Assistance program to be administered by the South Carolina Emergency Management Division.”
Continued Funding of the SCWINS
“I request $95 million in lottery funds for Workforce Industry Needs Scholarships through the South Carolina Technical College System. In the last five years, this very successful program has paid the full tuition and fees for over 40,000 South Carolinians at our technical colleges – where they earned post-secondary or industry credentials in high-demand careers like manufacturing, nursing, computer science, information technology, transportation, logistics, or construction.
Because of our state’s high demand for workforce skills, training, and knowledge, I renew my call for the General Assembly to fund and authorize a systemic review of our state’s 33 public institutions of higher education. This review will be conducted by the Department of Employment and Workforce. The goal: to make sure we are preparing to meet our state’s future workforce needs in two respects: 1) sustainability, accessibility, and affordability and 2) the alignment of our programs, certificates, and degrees with the jobs, skills, and innovations likely coming our way.”