SCAPA Legislative Update - May 2022
Print this Article | Send to Colleague
SCAPA Legislative Update - May 2022
Submitted by Sunnie Harmon and John DeWorken, LobbySC
Sine Die
As of May 12 at 5:00 pm, the 124th Legislative Session ended. With it brought a new Speaker of the House Murrell Smith (R-Sumter), a new Majority Leader Davey Hiott (R-Pickens), and two new committee chairmen; Representative Gary Simrill (R-York) as Ways & Means Chairman and Representative Bill Hixon (R-North Augusta) as the Agriculture & Natural Resources Chairman. Simrill’s post will be short lived because he is retiring this year.
Prior to adjourning, the House and Senate did approve a Sine Die Resolution laying out what issues they would be able to take up after May 12. In the Sine Die Resolution, they agreed to return June 15-17 to take up the budget, conference reports, and any Governor vetoes. They also agreed to return from June 28 to June 30.
Since this marks the end of the second year of a two-year session, any legislation that did not make it to the Governor’s desk is dead and will have to start the legislative process over from scratch in 2023, unless it was in a conference committee.
Workforce Bills
A bill introduced by Murrell Smith (R-Sumter) H.3247 that would eliminate military retirement benefits from being subjected to South Carolina income taxes passed the Senate and is headed to the Governor’s desk for his consideration. The point of the bill is to attract more retired military personnel to South Carolina. Of interest, this bill is the first bill that Murrell Smith ratified in his new position as Speaker of the House.
Another bill that would help fill the skills gap, H.3144, by Representative Brian White (R-Anderson) and called SCWINS, which is the South Carolina Workforce Industry Needs Scholarship, is intended to try to meet workforce needs in certain areas, such as nursing and CDL drivers. This bill sets up the Workforce Industry Needs Scholarship for students in in one of twelve critical workforce needs areas through the SC Technical College System.
Governor McMaster signed both of these bills into law.
Another workforce bill by Representative Joe Daning (R-Charleston) was tacked onto S. 901 would provide a tax credit for employers who hire formerly incarcerated individuals. The credit is worth $6,500 over three years, with $3,000 in the first year, $2,500 in the second, and $1,000 in the third year. No credits are allowed after the third year. S. 901 contains several pieces of legislation and a conference committee was appointed May 12 prior to adjournment for the House and Senate to work out their differences.
Conference Committee Set to Deliberate Budget
The House and Senate have a larger than usual gap in their two spending plans this year. This is because of a $2B tax relief package that the Senate approved earlier this year. The House passed an income tax relief bill this year, too, but it only has a $619M price tag. Both bodies crafted their budgets based on their tax relief plans. The Senate did not have a whole lot of wiggle room to fund special projects with one time monies as they typically would.
Here is a snapshot of just a few differences that will need to be worked out by the conferees. Representing the House are Representatives Murrell Smith (R-Sumter), Gary Simrill (R-York), and Todd Rutherford (D-Richland) and the Senate version will be defended by Senators Thomas Alexander (R-Oconee), Harvey Peeler (R-Cherokee), and Nikki Setzler (D-Lexington).
 |
Tax Relief on the Way in Some Form
The Senate passed S.1087 by Senator Harvey Peeler (R-Cherokee) that includes an income tax rate reduction to 5.7%, a $1B tax rebate, and a reduction to the property tax assessment ratio on manufacturers to 6%. The House also passed an income tax rate reduction to 6.5% and then another reduction over the next five years to 6%. The House amended its language into S.1087 setting up a conference committee to work out differences.
Since this bill has such a great impact on the budget, the Budget conferees will also make up the Conference Committee for S.1087.
___________________________________________________________________________________
Sunnie Harmon & John DeWorken
LobbySC
Sunnie Harmon
864.337.1584
Sunnie@LobbySC.com
John DeWorken
864.905.5529
John@LobbySC.com
