SCAPA Legislative Update - February 2022

SCAPA Legislative Update - February 2022

Submitted by Sunnie Harmon and John DeWorken, LobbySC

LobbySC Week 6 Highlights

Restrictive Mining Bills Introduced

Senator Mike Fanning (D-Fairfield) and Rep. Ritchie Yow (D-Chesterfield) introduced separate bills (S.1051 and H.3892) that would provide that DHEC is prohibited from issuing a permit for construction of a landfill on land located within two miles of any park, preserve, green space, or other protected natural area owned or managed by the United States, the State, a county, a municipality, or another political subdivision.
SCAPA lobbyists, along with other coalition lobbyists, such as the AGC and the ACEC-SC, engaged with bill sponsors and respective committee chairman and leadership to discuss concerns with the bills.  As of this point, the bills have not moved.

House, Senate Pass American Rescue Plan Spending Proposal

The House and Senate have each passed their funding plans for a large portion of the American Rescue Plan Act dollars.  Below you will see how the two plans compare:

• $453M to SC DOT to speed up priority project – SAME
• $400M to the Office of Regulatory Staff (ORS) for broadband infrastructure – SAME
• $800M to Rural Infrastructure Authority (RIA) for water, wastewater, and storm water infrastructure in the House plan v. $900M in the Senate plan
• $100M to the Office of Resilience for flood mitigation in the House plan v. $0 in Senate Plan
• $8M to the Department of Administration in the House plan v. $0 in the Senate plan

Both bodies have approximately $700M in ARPA funds that will be allocated at a later date.

Senate Passes $525M in Savannah River Site Monies

The Senate sent its plan (S.956) to spend $525M of SRS settlement funds to the House for its consideration.  Highlights of the spending plan include:

• $341M for primary counties (Allendale, Barnwell, Aiken)

• $52M for perimeter counties (seven total)

• $131M for remaining counties’ County Transportation Committees

House, Senate Introduce Income Tax Cut Plans

With the news that the Board of Economic Advisors (BEA) increased projected revenue for the 2023 budget, increasing it by $621M, Governor McMaster and House leadership joined together in a press conference on Tuesday to put forth a $1B plan to reduce the State’s income tax to 6% from 7%, pushing the effective income tax rate below 3%.  The first one-half percent will be immediate, using the announced $621M in new revenue, while the second one-half percent will be phased in over the next five years to 6%.

Over in the Senate, Finance Chairman Harvey Peeler (R-Cherokee) introduced a bill that would provide over $2B in tax relief this year and $11B over the next decade.  It does the following:

• Reduces the top income tax rate to 5.7% from 7%
• Reduces manufacturing property taxes by 33%
• Provides a one-time $1B tax rebate to taxpayers this year

Both plans eliminate military retirement income tax on retirement income with the intent of attracting more military retirees to the State in hopes that more qualified and skilled workers could help with the State’s worker shortage.

Employer Vaccine Mandate Bill Headed to Senate Floor

After a very contentious debate, the Senate Finance Committee chaired by Senator Harvey Peeler (R-Cherokee) passed out a bill (H.3612) that would prohibit political subdivisions and private employers from implementing vaccination mandates.  The bill does the following:

• Prohibits local, state government, and political subdivisions, including school districts from requiring a COVID vaccine for:
  • Employees, non-employee vendors, contractors, students
• If faced with a Federal mandate, the employer must use testing as an alternative.  If no other alternative is available, the employee can collect unemployment
• Local governments cannot fire, suspend, or reduce compensation of a first responder if he does not receive a COVID vaccine
• If a private employer terminates, suspends, or reduces compensation of an employee due to COVID vaccination status:
  • The employee is eligible for unemployment benefits (retroactive 9 months),
  • The employer must pay a surcharge equal to 10 times the unemployment charge of State Unemployment Tax Rate Class 20 – current Tier 20 rate is $764.40 per employee per year
  • This surcharge will be in effect for four years
• If the private employer has a Federal contract that requires a vaccination mandate, then the employer must submit an affidavit in order to be exempt
• Nothing in the bill prevents an employer from incentivizing an employee to get a vaccine • Amends current statutory scheme that deals with public accommodations – can’t deny people access, segregate, etc. due to COVID vaccination status
• This section applies to restaurants, hotels, hospitals
  • Cannot deny people equal enjoyment of accommodations simply because they do not have a COVID vaccine
  • Under this provision, hospitals would not be able to remove a patient from a transplant list due to COVID vaccination status
  • Reauthorizes the COVID 19 Liability Immunity Act until end of 2023

Legalization of Medical Cannabis Clears Major Hurdle

The Senate passed out Senator Tom Davis’ (R-Beaufort) bill to legalize medical cannabis in South Carolina.  A person would need to receive written authorization from a physician with whom he had a bonafide relationship for medical cannabis and it would only be allowed if someone had one of thirteen conditions.  The bill establishes therapeutic cannabis pharmacies that would have to be managed by a pharmacist in charge where medical cannabis could be dispensed.  The bill has been referred to the House 3M committee for consideration.

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Sunnie Harmon & John DeWorken

LobbySC

Sunnie Harmon

864.337.1584

Sunnie@LobbySC.com

John DeWorken

864.905.5529

John@LobbySC.com

www.LobbySC.com