Brought to you through your partnership with the Conway Chamber of Commerce…
Jan. 22, 2010
Thumbs Up: To Sens. Phil Leventis (Sumter) and Jake Knotts (Lexington) for removing their objections to S.391, paving the way for much needed reforms to the Employment Security Commission.
Senator Delays ESC Reform While Unemployment Rate
Reaches Highest Levels
On Thursday, the Senate was poised to move forward on S.391, legislation to reform the Employment Security Commission (ESC). However, Sen. Robert Ford (Charleston) objected to consideration of the bill, all while South Carolina continues to borrow millions of dollars from the federal government each week to pay out unemployment benefits.
It is clear that most in the General Assembly agree major reforms are needed at the ESC. In fact, last week the House passed a resolution on the matter by a vote of 112-1. In addition, South Carolina’s Legislative Audit Council (LAC) is set to publicly release their final report on needed changes at the ESC. The current organizational structure and benefit restrictions are expected to be some of the top priorities in the report.
Just today, the ESC announced the December unemployment rate rose sharply to 12.6 percent, the highest rate on record. Since December 2008, the state has borrowed more than $700 million from the federal government to pay out benefits.
Senate Must Prioritize Time
The legislative session is only six days old, but business leaders and others around the state are becoming concerned about the inaction of the Senate on critical business issues. With the highest unemployment rates on record and the legislative session likely to be shortened because of severe budget cuts, the Senate has a limited number of days to improve the business climate in the state.
This year, two issues that are holdovers from last year remain critical: Employment Security Commission Reform (S.391) and Secret Ballot Protection (anti-card check legislation, H.3305). With all the political rancor in Columbia over the last two weeks, the Senate voted down a proposal to debate ESC reform and has not even attempted to debate anti-card check legislation.
The Senate needs to put political differences aside and focus on reforming the ESC, anti-card check legislation, tort and budget reforms. These all are issues that will positively impact the current business climate in South Carolina.
DHEC Restructuring Lingers
This week, the Senate Medical Affairs Committee, chaired by Sen. Harvey Peeler (Cherokee), took up S.384, legislation to restructure the South Carolina Department of Health and Environmental Control (DHEC). The South Carolina Chamber, along with many other business organizations, has continuously and publicly opposed the legislation.
Sen. Danny Verdin (Laurens) chaired the subcommittee that studied the issue. At the subcommittee’s first hearing in the fall, Sen. Verdin stated the legislation would not advance unless there was ”clear consensus” on the need to restructure DHEC. But despite a nearly 50/50 split in public comments, with the business community unanimously opposed to the legislation, the subcommittee moved the bill forward anyway.
The business community continues to advocate for a DHEC structure removed from political influence with permitting decisions based solely on science and the rule of the law. The full Senate Medical Affairs Committee is set to vote on S.384 in the coming weeks.
Governor Gives His Final State of the State
On Wednesday evening, Gov. Mark Sanford stood before members of the House and Senate to deliver the final State of the State address of his administration. In his remarks, the governor encouraged forward movement on reforming the Employment Security Commission, imposing state spending caps and restructuring state government, including putting the governor and lieutenant governor on the same ticket.
In Other News …
Point of Sale compromise efforts between realtors, local governments and schools continue to fall through, and each day that passes without a compromise illustrates the complexity of the problems. The ultimate solution is comprehensively addressing Act 388, the 2006-passed property tax reform legislation.
S.1066, legislation providing a tax credit for contributions to the South Carolina Manufacturers’ Retention and Growth Fund, was introduced by Sen. Billy O’Dell (Abbeville) and sent to the Senate Finance Committee.
S.186, legislation to limit attorneys’ fees in the state, passed the Senate in 2009. This week it was passed by the House and returned to the Senate with amendments by a vote of 95-3.
On the federal front, Erroll Southers, President Barack Obama’s nominee to lead the Transportation Security Administration (TSA), has withdrawn his nomination. His nomination was blocked by U.S. Sen. Jim DeMint because of Sen. DeMint’s concerns regarding Southers’ views on TSA employees’ abilities to unionize.
Legislators to be Honored at Business Speaks
The South Carolina Chamber of Commerce’s Business Speaks at the State House, a gathering of more than 500 of South Carolina business leaders, constitutional officers and members of the General Assembly, is set to take place Jan. 27 at the Marriott Columbia at
4 p.m. During this year’s Business Speaks, the business community will honor six senators and 30 representatives who scored 100 percent in the S.C. Chamber’s 2009 Legislative Scorecard and are true friends to business.
Come and be a part of the S.C. Chamber’s most prestigious legislative event of the year. If you would like to submit a question for either Business Speaks panel, send it to Alexa Stillwell, alexa.stillwell@scchamber.net.