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Under the Dome – Legislative Report Fall Update II | December 12, 2017

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Under the Dome – Legislative Report Fall Update II | December 12, 2017 Under the Dome – Legislative Report Fall Update II | December 12, 2017 House Tax Policy Review Committee On Monday, December 4th the House Tax Policy Review Committee convened to discuss numerous issues with the intention of bringing forth legislation and not another report to be filed away. Committee Chairman Tommy Pope (R – York) acknowledged the difficulty of passing tax reform legislation in the second year of a two-year session but said his goal is to craft legislation reforming property taxes which will mesh with education reform. Chairman Pope with several supporting Committee members spoke of “fairer” income taxes which are “broader, flatter and cleaner.” With the additional uncertainty of what the Federal government could ultimately pass with tax reform, many variables are on the table for potential legislation. Bi-Annual Budgeting A majority of the meeting involved discussion on bi-annual budgeting after Representative Katie Arrington (R – Summerville) asked how much it costs the legislature to produce the budget each year and why not move to bi- annual budgeting to save taxpayers the expense and free up time to focus on other legislation instead of a budget each session. Representative Todd Atwater (R – Lexington) offered the suggestion of creating a Joint Appropriations Committee to avoid the annual House and Senate “chess games.” Representative Mike Burns (R – Greenville) said he recently mentioned a bi-annual budget to House Ways and Means Committee Chairman Brian White (R – Anderson), and while Chairman White may be opposed at this time, there were several members of Ways and Means who were for it and that the waters should be tested. Representative Burns made a motion to ask staff to begin drafting legislation around a bi-annual budget. Committee members discussed the issue for more than an hour with some voicing concerns about the need for more budget flexibility now that every year there is a natural disaster or major issue such as roads, pension, nuclear project failure, etc. which must be addressed in an annual budget. Nineteen other states currently utilize bi-annual budgeting according to staff. The Committee agreed to invite House Ways and Means Committee Chairman Brian White to speak regarding the potential pros and cons of bi-annual budgeting. Staff will work with Chairman White and Committee members on a meeting date for possibly the week before session begins in January. December 12, 2017 Page 1 of 17 Copyright 2017 © Riley Pope & Laney, LLC. All rights reserved. Income Tax Reform / Flat Sales Tax The Committee agreed to ask staff to draft a bill for review containing a flat 5% income tax proposal as well as draft legislation noting a flat 3% for goods and services. Chairman Pope said taxing services will be a complicated process to be hammered out in future Committee meetings. Regarding sales tax exemptions, it was noted that the Ways and Means Committee has worked on sunsetting language to begin tackling exemptions. Chairman Pope said it may be all exemptions are sunsetted to push toward the 3% flat sales tax rate. Staff member Don Hottel said the most secure and safe thing is to have a reserve fund, as sales taxes are the most sensitive to consumers, and revising the rate and changing exemptions will take years to fully implement. Hottel will also review how North Carolina and Georgia are currently revising sales and service tax. Senate Finance Health and Human Services Subcommittee – DHHS Presentation On Tuesday, December 5th the Senate Finance Health and Human Services Subcommittee met to consider the Department of Health and Human Services’ FY 2018-19 budget request presented by Interim Director Josh Baker. Click here to review the full presentation, highlights of which include: - Maintain reserves above 3% while funding annualizations - CHIP Funding if program not re-authorized - $52M (DHHS expects Federal reauthorization) - Autism Rate Increase - $3.8M recurring for blended rate and increase for line therapy - Opioid dependence interventions for beneficiaries - $4.3M - Non-Recurring request of $7.741M for the Medicaid Management Information System (MMIS) - Deletion of Proviso 33.25 – SCDHHS: Personal Emergency Response System which was vetoed by Governor McMaster. FY 2017-18 vetoes will be considered by the General Assembly in January, but in the event the veto is overridden, DHHS requests that the proviso be deleted for FY 2018-19 as the “passage of this proviso may limit participant choices of providers by limiting the current providers’ ability to do business if they do not have the nurse triage capability.” House Opioid Abuse Prevention Study Committee – final meeting of 2017 On Wednesday, December 6th the House Opioid Abuse Prevention Study Committee met to hear testimony on what college campuses are doing to help students overcome addiction and what policy initiatives are being implemented in other states. Committee Chairman Eric Bedingfield (R – Greenville) opened the meeting by thanking staff and all who have supported him and the Committee through hearings and countless hours of testimony in an effort to reduce the burden of opioid addiction in South Carolina. Many know Chairman Bedingfield tragically lost his son Josh to an overdose in 2016, and he said Wednesday would have been his son’s birthday. Several months ago, Chairman Bedingfield announced he will resign from the House of December 12, 2017 Page 2 of 17 Copyright 2017 © Riley Pope & Laney, LLC. All rights reserved. Representatives to take a job in the private sector but wanted to serve until January to finish the work of the Study Committee. The Committee heard a presentation from Kennesaw State University in Georgia regarding its student recovery program and from a young man now working for the program who said his life was saved, and he was able to complete college only because of the support and guidance he received. Bruce Loveless, a gentleman who lost his son to an overdose while he was a senior at the University of South Carolina, testified along with a friend whose college-aged son is currently in recovery about their efforts to start a nonprofit recovery program for colleges across South Carolina. Mr. Loveless also said their nonprofit is working with middle and high schools on prevention to educate students on the dangers of opioids before they become young adults. Their emotional testimony prompted discussion about what recovery programs may currently exist at South Carolina colleges and universities and how those programs along with efforts such as the nonprofit Mr. Loveless spoke about could be expanded to ensure college-aged students have access to services. Representatives from the National Conference of State Legislatures presented on policies throughout the nation currently being vetted and their effectiveness. The Study Committee closed with discussion on numerous proposals such as funding for recovery programs, counselor licensing and avenues of reducing the stigma of addiction and helping those who need treatment find their way. New House Committee Assignments Speaker of the House Jay Lucas (R – Darlington) has reassigned numerous members to the following Committees: Agriculture, Natural Resources and Environmental Affairs Committee Representative Bart Blackwell (R – Aiken) Representative Josiah Magnuson (R – Spartanburg) Representative Richie Yow (R – Chesterfield) Education and Public Works Committee Representative Steven Wayne Long (R – Spartanburg) Representative Brandon Michael Newton (R – Lancaster) Judiciary Committee Representative Cezar McKnight (D – Williamsburg) Representative Will Wheeler (D – Lee) ***Last week we reported Representative Sylleste Davis (R – Berkeley) was appointed to Judiciary. Labor, Commerce and Industry Committee Representative Joseph Daning (R – Berkeley) Representative Kevin Hardee (R – Horry) Representative Mark Willis (R – Greenville) December 12, 2017 Page 3 of 17 Copyright 2017 © Riley Pope & Laney, LLC. All rights reserved. Legislative Oversight Committee Representative Jeff Johnson (R – Horry) Medical, Military, Public and Municipal Affairs Committee (3M) Representative Bruce Bryant (R – York) Representative Rick Quinn (R – Lexington, removed from the Judiciary Committee due to current suspension from office) Rules Committee Representative Russell Fry (R – Horry) Representative Jay West (R – Anderson) Ways and Means Committee Last week we reported Representatives Heather Ammons Crawford (R – Myrtle Beach) and Todd Rutherford (D – Richland) were appointed to the Ways and Means Committee. New Budget Subcommittee assignments were made by Chairman White on December 7th. Representative Crawford will serve on the Transportation and Regulatory Subcommittee, and Representative Rutherford will serve on the Legislative, Executive and Local Government Subcommittee. Two additional revisions of note include Representative Derham Cole (R – Spartanburg) now serving as Chairman of the Higher Education and Technical Colleges Subcommittee and Representative Chip Huggins (R – Lexington) now serving as Chairman of the Proviso Subcommittee. 2017 – Meetings and Events Latest Senate meeting posts Latest House meeting posts Wednesday, December 13th Senate Finance Natural Resources & Economic Development Subcommittee – 10:00 a.m. S.219, SC Conservation Bank Reauthorization 308 Gressette S.753, Joint Resolution directing the Public Service Commission to place Toshiba settlement dollars into an escrow account (V.C. Summer Nuclear Project failure) Friday, December 15th House Ways and
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