South Carolina Statehouse Blog

Core gov’t functions addressed; debt repayment & education funding increased

(Columbia, SC) – Today, the South Carolina House of Representatives amended the Senate’s version of the FY2011-2012 state budget (H. 3700). The amendments adopted by House Members served mainly to return the spending plan back to the original House version passed in March, address newly-added state revenue, fund the increase to the General Reserve Fund five years ahead of schedule and better position the House for the upcoming budget conference committee.

House Speaker Bobby Harrell issued the following statement about the House’s amended spending plan:

“This balanced budget is a conservative spending plan that funds vital core functions of government and responsibly plans for our state’s future. The amended House version addresses the needs of our state’s citizens, directs more money to education, employs a fiscally conservative plan to pay down debt obligations and funds the increase to the General Reserve Fund voters approved five years ahead of schedule.

“Instead of spending this revenue surplus on legislative wish lists, the House wisely chose to dedicate these funds to investments in education and debt repayment. It’s also important to note that this revenue surplus was the result of increased private sector economic activity and not from any kind of tax increase.

“One of the most important things that House Members did today was to direct $146 million in surplus revenue to paying back money our state had to borrow to fund the unemployment insurance trust. This responsible budgeting by the House will prevent South Carolina businesses – both small and large – from solely shouldering this debt repayment through increased taxes. Making this debt payment a priority also removes the threat of hefty federal fines that would only increase the total amount South Carolina taxpayers owe.

“We have worked very hard to make sure South Carolina has a competitive and fair business climate. This has made our state an attractive investment for businesses looking to expand and grow their operations.

“This late surplus in revenue is a positive sign that our state’s economy is beginning to recover. This recovery is due in part to our Legislature’s willingness to make tough decisions and cut government spending instead of raising taxes to balance our budget. Our neighboring states that chose to increase taxes during these difficult times will come to regret that decision as the economy improves and business look to expand in more competitive environments like South Carolina.”

Business community celebrates huge victory

Columbia, SC – May 31, 2011 - After extensive debate and a process held up by trial lawyers for months, common sense and South Carolina businesses prevailed on Tuesday as the Senate passed a comprehensive tort reform bill, 39-0. It marks a success for Senate Republicans and South Carolina’s business community, for whom tort reform has been a top priority in recent years. Gov. Nikki Haley has stated that the passage of tort reform is a goal for her administration, recently appearing at a tea party news conference and rallying supporters to get the Senate to pass the bill.

“No other bill this year will improve our state’s business climate like tort reform. This is great news for South Carolina businesses, and that means it’s great news for South Carolina,” Senate Majority Leader Harvey Peeler (R-Cherokee) said. “We’re on the path to new jobs and more private investment thanks to the passage of this bill.”

After passing the House, the bill has been stalled in the Senate for months by opponents trying to run out the clock. Regardless, Peeler and Sen. Larry Martin (R-Pickens), who sponsored similar bills, were able to rally conservatives in the final week of session to see the legislation through.

“It wasn’t easy, but nothing important ever is,” Martin, who led Senate Republican negotiations, said. “Our state’s businesses have been crying out for relief, and today I’m glad to say that we were able to do that.”

“We appreciate the South Carolina Senate taking this important step towards protecting small businesses from frivolous lawsuits,” said JJ Darby, NFIB SC State Director. “Enacting meaningful caps on punitive damages is critical to allowing businesses in this state to grow and create jobs.”

“Nothing comes easy in the South Carolina Senate, and this has proved it. We will compare this with what other states provide, and hope we will have a more fair, more competitive lawsuit system,” said Rick Todd, President & CEO of the SC Trucking Association.

The agreement caps punitive damages that are greater than $500k or three times the compensatory damages awarded. If it is found that the defendant was motivated primarily by financial gain, or the defendant’s actions rise to the level of felony charges, then the award can be increased to the greater of $2 million or four times compensatory damages. If it is proven that the defendant intended to harm the claimant, was convicted of a felony arising out of the same act, or acted under the influence of drugs or alcohol, then the $2 million cap would not apply.

The bill also provides that insurers must disclose limits of individual automobile coverage when a claimant requests the information. This will prevent claimants from having to bring suit in order to receive disclosure of limits.

The bill now returns to the House for concurrence.

House Speaker Bobby Harrell issued the following statement on the passing of Representative David Umphlett:

“David was a dear friend to me and to all the Members of the General Assembly with which he served. He was a South Carolinian who was dedicated to our state and the people he represented. David will truly be missed.”

Senate Majority Leader Harvey Peeler today introduced a bill that will specify standards for permits regarding miniature trains, like the one that derailed in Spartanburg County. Named, “Benji’s Law,” it’s in honor of Benji Easler, a Cherokee County six-year-old who was killed when the train left the tracks in March. He was at Cleveland Park with his church group, led by his father, Reverend Dwight Easler.

“To lose a life like Benji’s is a tragedy. We must do what we can to make sure this never happens again,” Peeler said. “Sometimes the state has to step in and ensure safety standards. This is one of those times.”

A recent report said that the reason the train derailed was because of operator error — mainly, it was going too fast and wasn’t undergoing proper maintenance and inspections. An investigation by local television station WSPA in March found that a maintenance report hadn’t been filed since October, and the Department of Labor, Licensing and Regulation inspector was fired after filing falsified reports. There were also “persistent brake and wheel failures” that were supposedly fixed but continued to occur each year. In regard to the conductor, the investigation discovered, “his duties included ‘inspect train and check tracks.’ And ‘knowledge of engine mechanics helpful’ but not required.”

The bill would ensure:

• The ride must have a properly operating speedometer.
• The ride must have a device that allows the speed of the train to be regulated and the speed of the train must be set so as to only operate at or below the maximum speed recommended by the manufacturer.
• All drivers operating the ride must be trained to operate the ride in accordance with the manufacturer’s operation recommendations; a training record for each driver must be maintained by the owner or operator of the ride as long as the driver is employed by or operates the train on behalf of the owner or operator; and each driver must be tested by the department before the driver is authorized to operate the train; a driver employed to operate the train, or who will operate the train on behalf of the owner or operator, subsequent to the department issuing the permit or renewal permit does not affect the validity of the permit, so long as the driver does not operate the train until the driver has been tested by the department.
• The ride must be inspected mechanically, including, but not limited to, a speed test of the train to ensure that the train is operating in accordance with the speed governor, and in accordance with this chapter or regulations promulgated pursuant to this chapter, but in no case less than an annual inspection.

Bill gives officers another tool to enforce our immigration laws

(Columbia, SC) – By a 69 to 43 vote today, the SC House of Representatives passed a bill (S. 20) that will greatly strengthen our state’s existing illegal immigration policy by focusing on illegal aliens detained for breaking our laws.

House Speaker Bobby Harrell said, “It has become abundantly clear that if we want something done about illegal immigration, we’re going to have to do it ourselves. This bill gives our state’s law enforcement officers another valuable tool to use in the day-to-day fight they wage to enforce our immigration laws.”

After years of federal inaction on the issue, the SC General Assembly pushed for a comprehensive statewide illegal immigration policy in 2008, successfully passing “The South Carolina Plan” into law. At the time, it was the toughest state immigration law in the nation.

While many states are following South Carolina’s lead by passing strong immigration laws, they are limited in the overall actions they can take on the issue. The true power of change lies at the federal level, but despite the best efforts of South Carolina’s Congressional Delegation, neither Congress nor our nation’s Executive Branch have enacted the policies needed to fully address these concerns or properly secure our nation’s borders.

Harrell concluded, “Our citizens have voiced their support for this issue, and South Carolinians clearly want our nation’s standing federal immigration laws enforced. If the federal government refuses to enforce these laws, the South Carolina General Assembly will support state laws that do – and over the past several years, that is exactly what your state lawmakers have done.”

After a procedural third reading tomorrow, the bill (S. 20) will be returned to the Senate with plenty of time to get this new immigration measure to the Governor’s desk this year.

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****For the final roll call vote on S. 20 click here