Year End Session Report

June 11, 2014

By Chip Huggins, SC House District 85 and Nathan Ballentine, SC House District 71

 

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Last week the General Assembly concluded work on the regular legislative session, but lawmakers are scheduled to return later in the month under the terms of an adjournment resolution (H.5282) that allows the House of Representatives and Senate to convene, beginning on Tuesday, June 17, 2014, to take up a limited list of matters, including the Governor’s vetoes and the reports of conference committees that have been formed to address the differences between the House and Senate on particular pieces of legislation.

The General Assembly approved the most significant government restructuring that the state has seen in twenty years.  Legislators approved and the Governor signed into law the “South Carolina Restructuring Act of 2014” (S.22) which abolishes the State Budget and Control Board and reassigns its functions and duties as part of comprehensive changes to the organization and oversight of state government that are geared towards enhancing accountability and efficiency.  Under this restructuring initiative, the Governor assumes greater responsibility over most of the day-to-day running of state government operations through a newly-created Department of Administration cabinet agency while certain major financial responsibilities, such as decisions about the state’s bonded indebtedness and the sale of valuable property, continue to be shared among key public officials in the executive and legislative branches of government that make up the State Fiscal Accountability Authority.  The legislation also includes new provisions for the legislative oversight of executive departments that empower legislative committees to conduct periodic reviews and launch special investigations for the purpose of determining which state government programs continue to serve worthwhile purposes and which should be scaled back or eliminated altogether.

The General Assembly approved new legislation (S.137) to combat drunk driving designated as “Emma’s Law” in memory of Emma Longstreet, the six-year-old Lexington County girl who was killed in a collision with a repeat DUI offender as her family was traveling to church on New Year’s Day 2012.  The new law provides for a more expansive use of ignition interlock devices installed on the vehicles of driving under the influence offenders that are designed to prevent a vehicle from being started and operated by someone who has consumed alcohol.  The legislation revises current requirements for ignition interlock devices to be installed on the vehicles of repeat DUI offenders and establishes a new requirement for installing an ignition interlock device on the vehicle of someone convicted of a first offense DUI violation with a breath test registering an alcohol concentration of 0.15 or higher.  Those who refuse a breath test and are subsequently convicted of a first offense DUI violation are also subject to requirements for enrolling in the Ignition Interlock Device Program in order to be eligible to drive.  New ignition interlock requirements are imposed upon those convicted of a DUI offense involving death or great bodily injury and those found guilty of drunk driving that has endangered at least one passenger under the age of sixteen.  Emma’s Law also enhances penalties for those who fail to comply with ignition interlock device requirements.

Legislators approved a prohibition on texting while driving (S.459) which makes it unlawful for a person to use a handheld wireless electronic communication device to compose, send, or read a text‑based communication while operating a motor vehicle on the public streets and highways of this state.  Exceptions are included to cover such circumstances as summoning emergency assistance and using a navigation system.  A violation, which is not a criminal offense, is subject to a fine of up to twenty-five dollars.  During the first one hundred eighty days after the law goes into effect, law enforcement officers must only issue warnings for violations.  Law enforcement officers are prohibited from seizing wireless devices or performing searches in enforcing a violation of this prohibition on texting while driving, and a violation must not be included in the offender’s motor vehicle records or criminal records and must not be reported to an insurer.  The legislation preempts all local government ordinances, regulations, and resolutions relating to the use of wireless electronic communication devices while driving on the public roads of this state.

The “South Carolina Read to Succeed Act” (S.516) was approved to establish a comprehensive K-12 initiative for promoting reading proficiency in the state’s public schools with an emphasis on early intervention to assist students who are not demonstrating an ability to read at grade level.  Early grade students who are not demonstrating proficiency in reading must be provided intensive in-class and supplemental reading intervention, and, beginning with the 2017-2018 school year, students are subject to new requirements for being retained in the third grade if they fail substantially to demonstrate grade-level reading proficiency.  Prior to retention, students who score the lowest in reading assessments are afforded the opportunity to enroll in a summer reading camp.  Each elementary school must employ a reading coach to serve as the school’s resource for professional development in order to generate improvement in reading and literacy instruction and student achievement.  Teacher certification and professional development requirements are revised to incorporate a new emphasis on literacy instruction.

Legislation was approved to provide for the reauthorization of the South Carolina First Steps To School Readiness Initiative and to make revisions to this program for providing enhanced early childhood development, education, and family support services to enable children to reach school ready to achieve academic success.  New accountability provisions are established to assess student progress and evaluate the performance of programs.

The “Back to Basics in Education Act of 2014” (H.3905) was approved to add cursive writing and memorization of multiplication tables to the required subjects of instruction in public schools and to require students to demonstrate competence in each subject before completion of the fifth grade. 

Legislation (H.3102) designated as “Jaidon’s Law” was approved to revise the manner in which the Department of Social Services and the courts address the removal of children from the custody of their parents or guardians to in order to provide enhanced authority for removing children from abusive and dangerous homes.  The legislation also requires the Legislative Audit Council to conduct a management performance audit of a program of the South Carolina Department of Social Services every three years.

Legislators approved a bill (H.3959) enhancing state laws that target child pornography.  The legislation revises state criminal offenses relating to the sexual exploitation of a minor through live performances or visual representations, so that these offenses apply not only to the display of a minor engaged in sexual activity but also to the appearance of a minor in a state of sexually explicit nudity when a reasonable person would infer that the purpose is sexual stimulation.

Legislators approved a bill (S.308) that replaces South Carolina’s current prohibition on carrying a pistol or firearm into a business that sells alcoholic liquor, beer, or wine for on-premises consumption with new provisions, commonly referred to as restaurant carry provisions, that afford concealed weapon permit holders new legal authority to carry their firearms into bars, restaurants, and other establishments that serve alcohol.  A concealed weapon permit holder making use of these restaurant carry provisions is not allowed to consume alcohol on the premises and proprietors may restrict or prohibit the carrying of concealed weapons into the business by posting the proper signs.  A CWP holder who violates these restrictions is subject to a misdemeanor criminal offense and must have his concealed weapon permit revoked for five years.

Lawmakers created (S.1173) a South Carolina Prisoner of War ‘POW’ Medal that the Governor may present on behalf of the people of South Carolina to current and former residents of the state who have been held as a prisoner of war in the course of their military service.

Lawmakers approved legislation (H.4527) designating the Friday after Thanksgiving as “A Day of Recognition for Veterans’ Spouses and Families” to acknowledge the invaluable support and sacrifice of veteran’s family members.

Legislation (H.4922) was enacted to authorize hiring preferences for veterans by specifying that it is not an unlawful employment practice for a private employer to give preference in employment to a veteran.  This preference is also extended to the veteran’s spouse if the veteran has a service‑connected permanent and total disability. 

The General Assembly approved legislation (H.3027) extending certain property tax breaks to military personnel who are deployed or reassigned.  The legislation allows active duty members of the U.S. Armed Forces to keep their special owner‑occupied residential property tax assessment even if they are deployed or transferred away from home.  They also remain eligible for this favorable 4% assessment ratio even if they rent out their home while they are deployed.  The new legislation allows military members who receive a permanent or long term change of station to claim the owner-occupied assessment ratio on two residences in the state for up to two years so long as they are attempting to sell the first of these homes.  Service members’ spouses who are joint owners of the property are also included in these favorable tax provisions.  Lawmakers also approved (S.999) a ninety day extension on the expiration of a driver’s license for a member of the U.S. Armed Forces who is deployed or reassigned outside the state.  The extension is also allowed for civilian employees of the Department of Defense whose duties in support of the military take them out of state.

The “Veterans Treatment Court Program Act” (H.3014) was approved to address the criminal justice system’s encounters with veterans who have returned from their military service having sustained traumatic brain injuries or suffering from service-related mental health impairments, such as post-traumatic stress disorder, depression, anxiety or acute stress.  This legislation provides authority for each circuit solicitor to establish a veterans treatment court program to divert qualifying nonviolent military veteran offenders away from the criminal justice system and into appropriate mental health and substance abuse treatment programs, thereby reserving prison space for violent criminals and others for whom incarceration is the only reasonable alternative.

The General Assembly approved (H.3541) a proposed constitutional amendment for the Adjutant General to be appointed by the Governor rather than elected.  This proposal must be submitted to the state’s voters at the next general election as a ballot question to decide whether the South Carolina Constitution should be amended by removing the Adjutant General from the list of statewide elected officials and providing instead for this head of the state’s National Guard and other military resources to be appointed by the Governor, upon the advice and consent of the Senate.  If the constitution is amended, the new appointment process (H.3540) would begin with the expiration of the term of the Adjutant General who is serving in office when the amendment is ratified.

The General Assembly approved legislation (S.1189) which makes revisions relating to the generation, distribution, and sale of electrical power that are geared towards reshaping South Carolina’s electrical power grid so that it is devoted not only to a few, major, centrally-located power plants run by traditional investor-owned utilities but can also better accommodate electrical generation resources that are distributed throughout the grid, such as rooftop solar arrays, as well as other distributed energy resources such as energy storage and managed loads, including electric vehicle charging.  The legislation makes provisions for a South Carolina Distributed Energy Resource Program to promote the establishment of a reliable, efficient, and diversified portfolio of distributed energy resources for the state.  The initiative includes changes in the way that investor-owned utilities purchase power from other, smaller, providers of electricity to encourage investment in renewable energy in the form of both relatively large facilities, such as wind farms, and smaller resources such as the solar power collectors installed by residential and commercial net-metering customers.  The legislation also includes provisions to accommodate customers in leasing renewable electric generation resources rather than undertaking the significant costs involved in purchasing them outright.

Lawmakers approved a bill (H.3512) revising alcohol sales provisions including changes relating to breweries that are offered as a means of fostering the craft brewing industry in the state.  The legislation includes authorization for breweries to operate on-site dining facilities where their beer can be served and allows breweries to apply for retail on-premises consumption permits for the sale of beer and wine produced by others.  The legislation provides that retail liquor sales are allowed on statewide election days but are prohibited on Christmas Day.

The General Assembly approved legislation (S.1035) addressing access to cannabidiol, a substance derived from marijuana, for treatment of severe forms of epilepsy“Julian’s Law” is enacted to provide authorization for the state’s academic medical centers to conduct expanded access clinical trials approved by the federal Food and Drug Administration (FDA) to investigate the value of cannabidiol as a treatment for patients suffering from severe forms of epilepsy that are not adequately treated by traditional medical therapies.  The legislation establishes certain exemptions for cannabidiol under state laws governing narcotics and controlled substances and provides an exemption that allows a South Carolina-licensed physician to issue a written certification for the medical use of cannabidiol to a patient who has been diagnosed with severe forms of epilepsy.  The legislation also creates a temporary study committee whose purpose is to develop a plan for the sale and use of medical marijuana in South Carolina should the federal Drug Enforcement Administration declassify or reclassify marijuana as a controlled substance. 

The General Assembly approved legislation (S.148) that establishes identity theft safeguards for protected consumers, a special class of consumers composed of children as well as adults who are incapacitated or otherwise under another’s guardianship.  To help prevent the identities of these protected consumers from being stolen and used for such purposes as opening fraudulent credit accounts, the legislation establishes requirements for consumer reporting agencies to place security freezes on the records of those under the age of sixteen, as well as incapacitated individuals and protected individuals for whom a guardian or conservator has been appointed, upon the request of parents or other representatives who can produce sufficient proof of their authority to act on behalf of the protected consumers.  A consumer reporting agency may not charge any fees for implementing security freezes for protected consumers or for creating any consumer credit files needed to implement such security freezes.

Legislators approved a bill (S.815) to provide for State Election Commission oversight of county boards of voter registration and elections to ensure that those boards and all who are involved in the elections process comply with state voting law requirements, applicable federal law, and Commission policies and procedures regarding the conduct of elections or the voter registration process.  In order ensure compliance, the State Election Commission is directed to conduct reviews, audits, or other postelection analysis and is empowered to intervene when it finds that local election authorities have failed to comply with election or voter registration requirements or when local election authorities fails to certify the results of an election or referendum in a timely manner.  The legislation provides a statewide protocol establishing consolidated county boards of voter registration and elections.  The State Election Commission must provide public notice on its website of all new state and local changes to voting procedures, including changes to precincts.

The General Assembly approved legislation (H.3231) prohibiting discrimination against motorcycles in public transportation policies.  Under the legislation, the state Department of Transportation and Transportation Commission are prohibited from adopting plans or policies that would discriminate against motorcycles or restrict their access to any highway, bridge, tunnel, or other transportation facility.  Local governments are required to make reasonable accommodations for motorcycle parking in their parking garages and other transportation facilities.

Lawmakers approved the general appropriation bill (H.4701) and the joint resolution making appropriations from the Capital Reserve Fund (H.4702) which together comprise the $7.2 billion fiscal year 2014-2015 state government budget.  The budget legislation is now subject to line item vetoes from the Governor.  The budget includes a total of $180 million in new funding for K-12 education.  A total of $137.5 million is directed to the Education Finance Act, $54.3 million of which is new EFA money.  $35 million is used to maintain the current base student cost of $2,097 and an additional $19 million is used to increase the base student cost to an estimated $2,120 per pupil.  $83.2 million of these EFA funds represent a swap from the Education Improvement Act that is directed towards high-achieving students and students at risk of academic failure.  The budget includes a revised rationale for allocating funds to the public schools that includes new weightings in the EFA distribution formula that are specifically geared towards such populations as students with limited English proficiency and pupils in poverty and places new emphasis on funding for personalized instruction in such areas as precareer and career technology, young adults pursuing adult education programs, gifted and talented education, and academic assistance for those failing to meet state standards for mathematics and English language arts.  $5 million is included for hold-harmless transitional payments to ensure that no district receives less state funding under the new funding formula than it did under the current formula.  $18.6 million in recurring funds is used to expand the state’s four-year-old kindergarten program for students who are eligible for free or reduced lunch so that it includes all school districts with a poverty index of 70% or greater.  The expansion includes seven additional districts to bring the total number of districts in the 4K program to 58.  $29.5 million is included to provide for reading coaches in the state’s elementary schools.  $4.5 million is devoted to expanding summer reading camps.  $29.3 million is included for a K-12 technology initiative.  $12 million is provided for digital instructional materials and $4 million is included to train teachers on how to use the new technology in the classroom.  In addition, $8.56 million is devoted to instructional materials in the schools.  $742,500 is provided for a virtual instruction program at the State Department of Education, including 11 full-time employee positions. $18 million is provided for purchasing or leasing new school buses.  Full funding is provided for the LIFE, HOPE, and Palmetto Fellows higher education scholarship programs.  The budget includes increases in recurring funds to the state’s colleges and universities that amount to $5.4 million.  The budget provides $2.6 million for a consultant to conduct a Higher Education Efficiency and Accountability Review on improvements in operations at the campus level and statewide.  $2.5 million is included for STEM (science, technology, engineering, mathematics) Education to address workforce demands.  A total of $15.2 million is provided for various worker training initiatives at the state’s technical colleges.  $37.4 million is provided for the Deal Closing Fund that the Department of Commerce uses to recruit new business to the state.  The Department of Commerce is afforded appropriations of $6.5 million for the Locate SC Site Inventory, $4 million for research initiatives, $400,000 for the Existing Business Program, $250,000 for the SC Manufacturers Extension Program, and $350,000 for the Community Development Corporation Initiative.  Funding for rural infrastructure grants is increased with $3 million in recurring funds.  A $15 million increase in C-Funds is included for County Transportation Committees.  The budget provides for a 2% state employee pay increase, with an appropriation of $30.6 million.  $57 million is included to cover the increased costs of operating the state’s employee health insurance plan with no increases in the premiums paid by employees, no reductions in coverage, and relatively minor increases in coinsurance payments of no more than 9%.  $447.3 million fully funds the reserve accounts that the state uses to cope with revenue shortfalls.  The Local Government Fund is maintained at its current level of $212 million through the appropriation of $30 million, $5 million of which is recurring revenue.  $10.4 million is provided for implementing statewide information technology security upgrades recommended by the state’s cyber security consultant.  The budget includes $130 million for Medicaid Maintenance of Effort.  The budget legislation does not include an expansion in eligibility for the state’s Medicaid Program as allowed by the federal “Patient Protection and Affordable Care Act” of 2010.  Funding is continued for such programs as the Healthy Outcomes Initiative for meeting the needs of chronically ill uninsured patients through home visits and care in other settings outside the emergency room and 100% cost reimbursement for rural hospitals.  The Attorney General’s office is provided $74,750 for a full-time information technology data security specialist, $78,000 for a full-time appellate attorney, $78,000 for a full-time Habeas Corpus attorney, $45,500 for an Anti-Gang Coordinator, and $167,700 for Criminal Domestic Violence Unit of three full-time employees.  The Commission on Indigent Defense receives $136,578 for two new full-time appellate attorneys.  The Prosecution Coordination Commission is allocated $1.6 million for violent crime prosecution and $400,00 for the SC Center for Fathers and Families.  The State Law Enforcement Division receives $475,136 for 4 full-time personnel to staff a new child fatality unit, $697,316 for 10 full-time forensics personnel, $2 million for 17 full-time alcohol enforcement personnel, and $500,00 to enhance the Meth Lab Clean-Up Program.  The Department of Public Safety is provided $447,300 for 10 new highway troopers, $1.3 million for mobile data equipment and support for highway troopers, and $2 million for law enforcement vehicle replacement.  $1.1 million is used to establish a local law enforcement grant program.  The Department of Natural Resource is provided $1.2 million to increase enforcement officers by 8 for a total of 15 new enforcement officers and equipment, $108,074 for a new information technology security officer, and $450,000 for law enforcement vehicle replacement.  The Forestry Commission receives $200,000 for 4 additional full-time firefighters and $2 million from the Capital Reserve Fund for new firefighting equipment.  $3.9 million is included for capital projects at State Parks.  The Department of Parks, Recreation and Tourism receives $1 million for the Undiscovered SC program to showcase the state’s rural areas, $2 million for the Sports Development Fund, $750,000 for marketing, and $400,000 for international marketing.  $5 million is provided for the African-American History Museum.  $1 million is provided for the Patriots Point Authority Medal of Honor Museum.  The Lieutenant Governor’s Office on Aging receives $2 million for respite caregivers, and $3 million for its meal delivery and other home and community based services for the elderly.  $1 million from the Capital Reserve Fund is provided to the Election Commission for a new voting system.

Conference committees have been appointed to address the differences between the House and Senate on several key pieces of legislation including a bill (H.3945) enhancing Ethics Act requirements, the “Military Family Quality of Life Enhancement Act of 2014” (S.825), and a bill (H.4665) relating to the regulation of childcare facilities.