Legislative Update

While the Legislature is in session, the Greenville Chamber sends out a Legislative Update each week to those members interested. Not receiving the updates, but interested? Contact Sunnie Harmon or John DeWorken at 864-242-1050 or by e-mail (sharmon@greenvillechamber.org or jdeworken@greenvillechamber.org).

Below is this week's update from Columbia:

Chambers, Upstate Republicans, and House Dems Push Through Tax Reform
Many say that politics make strange bedfellows. This couldn’t be truer than in the last two weeks fighting for tax reform in the SC House of Representatives. With the advocacy fight being led by the Upstate Chamber Coalition, the SC Chamber of Commerce, the NFIB, and the Farm Bureau, Upstate Republicans, known for being more conservative than many other Republicans around the state, got into bed with House Democrats to pass a bill that was largely opposed to by many members in House leadership positions. The House passed a bill that will establish a comprehensive tax reform study committee. The bill will go to the Senate for its concurrence vote (Senate bill 12 was originally passed by the Senate before going to the House).

The bill sets up a study committee to look at the entire tax code and to come up with recommendations to the General Assembly by March 2010. One hiccup in the bill is a provision that says the commission may not repeal Act 388. Fortunately for the business community and proponents of tax reform, that provision will not inhibit the tax commission from looking at the entire tax code.

It should be underscored that without the Upstate Republicans uniting with House Democrats, this bill would not have passed the House. Though the bill was opposed to by Democrats on second reading, the real key vote was a tabling motion last week that sent a clear message from Upstate Republicans and House Democrats to House leadership that the business community is demanding its General Assembly to look at the state’s tax system.

Because there are differences with the House and Senate versions, the bill is expected to go to conference committee. There is less than a month left in the session to get this bill to the Governor’s desk.

Employment Security Commission Reform Killed
A bill that would put the Employment Security Commission under the Governor’s control has died for the year. Currently, a Commission, appointed by the Governor, oversees the Employment Security Commission fund and its operations. Under this new bill sponsored by Rep. Kenny Bingham (R-Lexington), the Commission members would not oversee the fund and would only be responsible for the operations of the Employment Security Commission. Furthermore, the Governor would appoint a cabinet head to run the fund.

The House voted narrowly to send the bill back to committee. With less than a month left, the bill has no chance of passing this session and will have to wait until January to be considered again.

The Commissioners have largely been criticized by many members of the General Assembly and many leaders in the business community for running up a multi million dollar deficit – a deficit that will be made up by the businesses.

House Furloughs Next Week, Adjourns May 21st
The House is running out of money – literally. State agencies are not the only entities going through budget cuts. The House is close to running out of money to operate its staff and pay House members. Because of the budget crunch, the House will furlough next week and will adjourn for the year on May 21. The Senate is expected to stay in session until June 4th. The House is expected to return the week of June 16th to take up Governor vetoes.

Port Restructuring Debate Continues
Though a bill that tweaks the Ports Board makeup was considered this week, the House adjourned debate on it until it returns in a week. The bill would essentially take away the Governor’s right to remove any Port board member for any reason. With this new bill, the Governor, who appoints all of the board members, would only be able to remove board members for mal or misfeasance. Other changes in the bill would extend the board to seven year terms and would charge the board to look for opportunities in public private partnerships. Already passed through the Senate, the House will take this bill up when it returns.