Legislative Report 2009

June 29, 2009

Included in this report is a final status update of all of the bills reported to you over the course of this legislative session. In addition to that, we have also included some general bill information about the state budget, the legislative process and our top 10 quotes of the year.

Legislative committees and subcommittees will continue to meet during the summer and fall months, and there is considerable regulatory activity during this time. We will be attending Budget Control Board meetings as well as other important meetings at state agencies. We are working to continue to improve our legislative contact system and meeting with legislators.

We look forward to working with you in developing new ideas and strategies for accomplishing your legislative and advocacy goals.

Richard Davis • Ashley Hunter • Heather Smith • Donald Wood

Legislators say the darndest things!

We have really enjoyed putting together the Quote of the Week section of your weekly reports. There have been some very funny moments during the past Legislative Session and we wanted to share with you our votes for the Top 10.

Number 10:
“Senator, there is an old proverb, ‘He who stands in the middle of the road, gets hit by both cars.”
- Senator Glenn McConnell (R-Charleston) told Senator Shane Martin (R-Spartanburg) when he questioned taking the stimulus money during a heated budget debate. Senator Martin responded with, “So you are saying I can’t have it both ways?”

Number 9:
“Jay Lucas is a lucky guy. He probably will have a bridge named after him; however, when I get run off by the people who elected me, I will probably have a trash dump or a sewage treatment plant named after me!”
- Representative Walt McLeod (D-Newberry) stated to his colleagues on the House floor as they debated a bill that would prevent the Department of Transportation from being reimbursed for the naming of a highway for anyone except servicemen or law enforcement killed in the line of duty.

Number 8:
“Like my momma always said, growing old is mandatory. Growing up is optional. Bet you can’t guess which one applies to me.”
- Senator Harvey Peeler (R-Gaffney) teased Senator Nikki Setzler (D-West Columbia) when they were having a discussion on how the current state tax structure affects the aging population.

Number 7:
“I’m sorry Mr. Chairman, I am just not used to a legislator actually asking me about something in the Governor’s budget.”
- During a state agency budget presentation, Chairman Edge asked a state agency employee about an item from the Governor’s budget. This caught the agency staff off guard because House and Senate members historically pay little attention to the Governor’s budget and typically place it in “File 13.”

Number 6:
“I am a Clemson grad. I have to take my shoes off to count and do math.”
Rep. Jeff Duncan (R-Laurens) referring to how difficult it was to comprehend the new weighted poverty formula that was proposed by Rep. Bakari Sellers (D-Bamburg) during the House budget debate.

Number 5:
“No sir! I just put mine out on the back porch with my beer in it.”
- At a meeting of the Senate Judiciary Committee, the members were discussing Senate Bill 8, a bill that that provides financial assistance to low income citizens as an incentive for them to use energy efficient products in their home. This was the response that Dukes Scott, with the State Office on Regulatory Staff, gave to Senator Jake Knotts when he asked him if he had ever tried to take his refrigerator to the dump.

Number 4:
“I’m not saying we are going to wrap our arms around it and make love to it, but we wanted to give the Senator his day to hear his bill.”
- Senator Jake Knotts (R-Lexington) referring to a bill that requires the Governor’s office to have a fraud hotline. This bill, S. 269, was recommitted by a vote of 12- 6 from the members of the full Senate Judiciary Committee.

Number 3:
“Mr. Lieutenant Governor, I am putting you on notice. You can’t come on the House floor and threaten us. I move we take up the next veto so the Lieutenant Governor can get back to handing out blankets to old people.”
- In what could possibly been one of the most bizarre moments at the State house this year, Rep. Thad Viers (R-Myrtle Beach) took the podium during the final week of the session as the Lieutenant Governor, Andre Bauer, visited the House floor to ask that the House members override the Governor’s veto of the funding for Bauer’s security detail. After the comments by Rep. Viers, Rep. Wendell Gilliard (D-Charleston) and Rep. Grady Brown (D-Bishopville) took the podium to tell the House members that the comments from Rep. Viers were “appalling.” The House and Senate overrode the veto and the Lieutenant Governor’s security detail funding remained intact.

Number 2:
“I consider myself an environmentalist and I really don’t want to get too personal by calling them ‘granola crunchers’ and such; but I just don’t see how they expect us to use what little we have to preserve the climate if we can’t even pay for school bus fuel or school books.”
- Rep. Gilda Cobb-Hunter referring to a request by the conservationist groups to fund the state Conservation Bank at $6.5 million during a Ways and Means committee hearing.

And the #1 Quote of the Year is….
“This budget is bringing out the RINOs, Republicans in Name Only; and the LIARS, Libertarians Impersonating A Republican Senator.”
- Senate Finance Chairman, Senator Hugh Leatherman (R-Florence) told his colleagues from the Senate floor that this budget debate had divided the Senate and that the drama of it all was being played out in the media.

And the Winners are…

Smokers: The South Carolina House of Representatives passed a bill that would raise the cigarette tax by $.50 per pack. The Senate; however, never debated the bill. This means smokers get to buy packs of cigarettes at the lowest-in-the-nation state tax for at least another year. Smoke ‘em while you got ‘em guys!

Democrats: While Republicans squabbled amongst themselves, the Democrats in the House and Senate suddenly found themselves with more bargaining power than they had in 8 years. (In January of 2001, Senator J. Verne Smith of Greenville switched from the Democratic Party to the Republican Party. The Republicans have been the majority party ever since.) Senate Democrats helped a handful of Republicans push the budget through the Senate. Republicans are split down the middle in the Senate. The now infamous “Band of 13” that typically votes with the Governor, stuck together and attempted to rewrite the budget and sustain Governor Sanford’s vetoes. In the end, the budget passed the Senate 32 - 14.

Ducks, Turtles and License Plates: While the General Assembly did not act on major reform such as the cigarette tax bill or the point of sale bill, they did get serious about legislation for several new license plates: the “Reduce, Reuse and Recycle” plate, the “Gold Star Family” plates, the “Our Farms, Our Future” plate and the “South Carolina Wildlife” plate. They also passed a bill designating the Summer Duck as the official duck of the state of South Carolina. Not to be left out, the General Assembly took swift action to protect turtles. For certain species of turtles, removing more than ten from the state is strictly prohibited. We here at CapCon love animals and will sleep better at night knowing the turtles are finally safe.

“Humans”: Humans also fared well this session. The word “Human” finally has its own definition in the South Carolina Code of Laws. For those of you wondering how you are defined, you are officially: “members of the species homo sapiens who are born alive at any stage of development.” While originally intended to define “born alive” and to make it a crime to “expel or extract (anyone) born alive;” the bill became known around the state house as the “Human’s Bill.”

Christmas Eve: The General Assembly voted to approve Christmas Eve as a state holiday. The Capitol Consultants legislative team attempted to amend the bill at the final hour to include themselves on the list of people who could have that day off but were unfortunately defeated in their efforts.

The Losers…

Governor Mark Sanford: This one is obvious. This year the Governor managed to accomplish one thing for certain- he has successfully made the members of the South Carolina General Assembly loathe him even more. For the first year in his role as Governor, Sanford’s approval numbers have slipped below 50%. As for the stimulus money, the Governor refused to strike a deal with legislators to pay down debt with the Budget Stabilization Funds and instead filed a lawsuit against Attorney General Henry McMaster on behalf of the General Assembly. In addition to the stimulus issues, Sanford’s two top legislative goals, Restructuring and School Choice failed to get legislative approval.

UPDATE: On June 24, 2009, Governor Mark Sanford admitted to an extramarital affair with a woman in Argentina. The Governor was unreachable for five days and while his staff told the press he was hiking on the Appalachian Trail; his wife of twenty years said she had no idea where her husband was over Father’s Day weekend. Reporter, Gina Smith, was waiting for Governor Sanford at the Atlanta airport when he landed early on the morning of the 24th. He admitted he had actually been in Argentina and later in the day; he held a press conference to reveal that he was there to be with his mistress. The Governor and his wife have been separated for two weeks and have both stated that they will try to reconcile.

Non-Handicapped People Using Handicapped Parking Stickers: The General Assembly approved legislation this year that puts in place increased fines and penalties for all “humans” abusing the handicapped parking laws. This bill also now requires you to have a photograph of the handicapped person to be on the placard as well as a certificate signed by your physician stating that you are in fact handicapped.

Irresponsible Fathers: This year, the General Assembly passed legislation that requires the Department of Social Services to keep a list of responsible fathers. This new law states that any biological father who fails to file a claim of paternity with the registry will be notified of any adoption proceeding or any termination of parental rights proceeding concerning the child. And speaking of transparency, measures were added to this bill that also make the registry unavailable for public inspection and is not subject to disclosure under the Freedom of Information Act. The real question here is, if a biological father fails to claim paternity with the registry, is he still considered a “human?”
People Practicing Law Without a License: It is now officially unlawful to actually practice law without a law license. Unless you are enrolled as a member of the South Carolina Bar or otherwise authorized to perform legal activities by action of the Supreme Court of South Carolina, you are officially not a lawyer. Good to know.
Employers and the Unemployed: Legislators also did not take action on a bill that would have given tax breaks to employers who hire people drawing unemployment. The Board of Economic Advisors told legislators that the bill would cost the state $132 million.

Background: The House and Senate passed each of their respective versions of the budget. The House completed work on March 17th and the Senate wrapped up their version May 7th. House and Senate leaders then worked on a compromise version of the budget. The bill was then sent to Governor Sanford and he had 5 days to issue his vetoes. He issued 49 vetoes, including Part IA of the budget in its entirety, Part III allocating stimulus funds in its entirety and 47 individual line items from Part IB. The House quickly overrode those of Part IA and Part III. Of the 47 line item vetoes, 17 were sustained by the House. Of the remaining 30 vetoes overridden by the House, Senators reversed the decision and voted to sustain four.
Lawsuits: Governor Sanford filed a federal lawsuit over the budget requirement to accept the federal stimulus money after the House and Senate overrode the Governor’s budget vetoes forcing him to accept. A high school senior from Chapin High School and a student from the University of South Carolina filed a lawsuit against the Governor as did the South Carolina School Boards Association. The members of the South Carolina Supreme Court heard from attorneys for all interested parties and ultimately voted 5-0 to order Governor Sanford to apply for the disputed $700 million in federal stimulus money. Additionally, Chief Justice Jean Toal also issued a rare writ of mandamus ordering Sanford to apply for the money.

Below are a few of the highlights of the state budget. If you have any questions about any specifics; please let us know!

REVENUE:

• Senate had $64 million less than the House because of the 2% Board of Economic Advisosrs cut in March.
• Senate generated $48 million in additional revenue through increased enforced collections at Department of Revenue.
• Senate transferred funds from excess cash balances at LLR to the General Fund.
• The compromise budget takes $48 million from enforced collections at DOR, $37 million from the Insurance Reserve Fund as taken on the House side, and $15 million from Unclaimed Property in the Treasurer’s Office. The transfers from LLR cash balances also remain in the compromise.

EDUCATION & HIGHER EDUCATION:

• The base student cost with ARRA funds - $2,334. Stimulus funds account for about $300 of the base student cost.
• The school bus transportation program receives $17.5 million.
• National Board Certification – applicants are capped at the first 1,100 and the program is funded at $13.4 million.
• In total, state institutions of higher education receive a net increase of $68,830,561 from ARRA funds.

ECONOMIC DEVELOPMENT:

• Destination Specific Tourism Grants are funded at $10 million. This is $8 million more than in the Senate version.
• The Conservation Bank receives $2 million for land purchases.

LAW ENFORCEMENT:

• Department of Corrections receives a total of $48 million from State funds and ARRA funds to cover the current year's deficit problem.
• Department of Juvenile Justice receives a total of $13 million in State funds and ARRA funds to cover current year's deficit and Medicaid funding needs.

HEALTH:

• Medicaid Maintenance of Effort is funded at $98,897,191.
• The IMD transition is funded at $26 million and is now fully funded, completing all three phases of the transition.
• Many items were restored under DHHS which were required for the FMAP draw-down. These items include but are not limited to the GAPS program, Hospice services, and Transitional Medicaid services. 
• Other optional services were restored including Community Long Term Care, Federally Qualified Health Centers, AIDS Drug Assistance Program, Rural Hospital Grants, and the Breast and Colorectal Cancer Screenings.

House Bill 3014
Sponsor: Rep. M. A. Pitts
Introduced in the House December 9, 2008
Summary: This bill relates to the license tax on Tobacco products. It would increase the tax to 1.85 cents, as well as define cigarettes. Funds generated would go to the healthcare initiative, the commission on higher education for the critical needs nursing initiative fund and to the nursing education scholarship fund.
Referred to the Committee on Ways and Means

House Bill 3119
Sponsor: Rep. Hosey
Introduced in the House December 9, 2008
Summary: This bill imposes an additional Tax of 1.5 cents per cigarette. It would establish the smoking cessation and health care fund, which must be administered by the Department of Health and Human Services for reimbursement of an individual's personal expenses related to smoking cessation and smoking related health care devices, equipment, and programs. Provide that the remaining revenue generated by this tax must be credited to the general fund and appropriated annually by the general assembly to address health needs of South Carolinians, including using such funds for medicaid matching funds. Referred to the Committee on Ways and Means

Senate Bill 167
Sponsor: Senator Cleary
Introduced in the Senate December 10, 2008
Summary: This bill relates to the regulation of Dentists and Dental Hygienists. It would specify the scope of activities of interns and residents who are exempt from licensure. This bill also relates to the authorization of pharmacists to fill prescriptions for dental interns and residents.
Referred to the Committee on Medical Affairs

Senate Bill 168
Sponsor: Senator Cleary
Introduced in the Senate December 10, 2008
Summary: This bell relates to medical malpractice insurance. It would provide that a
licensed health care provider who renders medical services voluntarily and without compensation, and seeks no reimbursement from charitable and governmental sources, and provides notice to the patient or patient's provider in a non-emergency, is not liable for any civil damages for any act or omission unless the act or omission was the result of the health care provider's gross negligence or willful misconduct.
Referred to the Committee on Banking and Insurance
Passed the Senate May 12, 2009
House referred to the Committee on Labor, Commerce and Industry

House Bill 3170
Sponsor: Rep. Gunn
Introduced in the House December 16, 2008
Summary: This Joint Resolution creates the Joint Electronic Health Information Study Committee. The committee will examine the feasibility of increasing the use of health information technology and electronic personal health records. The study committee shall report its findings and recommendations to the General Assembly before January 1, 2010.
Referred to the Committee on Medical, Military, Public and Municipal Affairs
Passed the House February 27, 2009
Senate referred to the Committee on Medical Affairs

House Bill 3185
Sponsor: Rep. Viers
Introduced in the House December 16, 2008
Summary: This bill relates to the reporting of certain contagious and infectious diseases. It requires the department of health and environmental control to include the parasite cysticercosis among the diseases it considers contagious and infectious, and designates for mandatory reporting by physicians, and otherwise reports in the official list of reportable conditions issued by the bureau of disease control.
Referred to the Committee on Medical, Military, Public and Municipal Affairs

House Bill 3204
Sponsor: Rep. Whipper
Introduced in the House December 16, 2008
Summary: This bill enacts the "Healthy Communities Capacity Act". This would establish the small business health insurance premium assistance program within the department of health and human services to provide health insurance premium assistance to small businesses for employees who are at or under two hundred percent of the federal poverty level.
Referred to Committee on Labor, Commerce and Industry

House Bill 3206
Sponsor: Rep. White
Introduced in the House December 16, 2008
Summary: This bill imposes an additional tax on cigarettes equal to 1.25 cents on each cigarette. This bill would create the medicaid reserve account of the South Carolina Department of Health And Human Services and provide its sources of revenue including the revenues of the tax imposed for the uses of fund revenues.
Referred to the Committee on Ways And Means

House Bill 3210
Sponsor: Rep. Gunn
Introduced in the House December 16, 2008
Summary: This bill allows for a state income tax credit for premiums paid by a small employer to provide eligible employees coverage under a qualifying health plan.
Referred to Committee on Ways And Means

Senate Bill 201
Sponsor: Senator Thomas
Introduced in the Senate December 17, 2008
Summary: This bill would enact the "South Carolina Healthnet Program". The Healthnet program would be a five-year pilot program to promote the availability of health insurance coverage to employees regardless of health status or claims experience, prevent abusive rating practices and require disclosure of rating practices to purchasers. The program would also establish rules regarding renewal of coverage, limitations on the use of preexisting conditions exclusions, assure fair access to health plans and improve overall fairness and efficiency of the group health insurance market; to provide for definitions.
Referred to the Committee on Banking and Insurance

Senate Bill 244
Sponsor: Senator McConnell
Introduced in the Senate January 13, 2009
Read the first time and referred to the Committee on Judiciary.
Summary: This bill requires that each state board and commission take a recorded vote of an action it takes when awarding compensation or a methodology for computing compensation or bonuses.

Senate Bill 253
Sponsor: Senator Fair
Introduced in the Senate January 13, 2009
Read the first time and referred to the committee on medical affairs.
Summary: This bill relates to the definition of "prescription" with regard to dental technological work, so as to delete the requirement that the certificate number of the individual or organization to perform work must be included on the prescription. The bill further repeals a section relating to requirements that must be met by a dental laboratory in order to perform dental technological work in this state.

Senate Bill 286
Sponsor: Senator Cleary
Introduced in the Senate January 15, 2009
Summary: This bill requires that department of Health and Environmental Control to implement a targeted community health program in three to five counties of need for dental health education, screening, and treatment referrals in public schools for children in kindergarten, third, seventh, and tenth grades or upon entry into public schools. This bill requires an acknowledgment of dental screening to be issued upon completion of the screening and to require this acknowledgment to be presented to the child's school.
Referred to the Committee on Medical Affairs
Passed the Senate April 21, 2009
House referred to the Committee on Education and Public Works

Senate Bill 287
Sponsor: Senators Cleary, Cromer and Bryant
Introduced in the Senate January 15, 2009
Summary: This bill relates to dentists and dental hygienists and persons exempt from such licensure, including residents. This bill provides that residents are authorized to treat conditions encountered during their residency program, including prescribing drugs. The bill also relates to the authorization of pharmacists to fill prescriptions for dentists, so as to extend this authorization to residents under certain conditions.
Referred to the Committee on Medical Affairs

Senate Bill 290
Sponsor: Senator Massey
Introduced in the Senate January 15, 2009
Summary: This concurrent resolution declares February 2009 as "National Children's Dental Health Month" in South Carolina and Friday, February 6, 2009, as "Give Kids a Smile Day" to promote oral health and to join in the efforts throughout the nation to advocate for oral health awareness and optimal oral health in children.
The Concurrent Resolution was adopted, ordered sent to the House

House Bill 3292 – CONCURRENT
Sponsor: Reps. T. R. Young, Allison and Parker
Introduced in the Senate January 15, 2009
Summary: This concurrent resolution declares February 2009 as "National Children's Dental Health Month" in South Carolina and Friday, February 6, 2009, as "Give Kids a Smile Day" to promote oral health and to join in the efforts throughout the nation to advocate for oral health awareness and optimal oral health in children.
Referred to the Committee on Invitations

House Bill 3292
Sponsor: Reps. T. R. Young, Allison and Parker:
Introduced in the House January 15, 2009
Summary: This concurrent resolution declares February 2009 as "National Children's Dental Health Month" in South Carolina and Friday, February 6, 2009, as "Give Kids a Smile Day" to promote oral health and to join in the efforts throughout the nation to advocate for oral health awareness and optimal oral health in children.
Introduced, Adopted, Sent To Senate

Senate Bill 290
Sponsor: Senator Massey
Introduced in the House January 27, 2009
Summary: This concurrent resolution to declare February 2009 as "national children's dental health month" in South Carolina and Friday, February 6, 2009.
Introduced, adopted, returned with concurrence

Senate Bill 317
Sponsor: Senator Fair
Introduced in the Senate January 27, 2009
Summary: This joint resolution suspends the provisions contained in Act 295 of 2008, relating to dental technological work, until January 1, 2010.
Referred to the Committee on Medical Affairs
Passed the Senate February 26, 2009
House referred to the Committee on Medical Affairs

House Bill 3371
Sponsor: Reps. Harvin, Kennedy, Alexander, Funderburk, Gunn, Hart, McEachern, McLeod, Ott, J. E. Smith, Spires and Weeks
Introduced in the House January 28, 2009
Summary: This bill regulates a provider of health care and the issuer of individual health insurance when an issuer negotiates rates with a provider for covered health care services and then terminates or otherwise non-renews the provider's contract.
Referred to Committee on Labor, Commerce and Industry
Passed the House April 23, 2009
Senate referred to the Committee on Banking and Insurance

House Bill 3376
Sponsor: Rep. Herbkersman
Introduced in the House January 29, 2009
Summary: This bill provides that an insurer that makes a reimbursement under a health insurance policy for a service covered by the policy must make the reimbursement at the same rate applied to a licensed health care provider in this state, to provide a group health insurance policy may not limit or condition a diagnosis, service, or treatment rendered by a health care provider or reimbursement to the provider for the diagnosis, service, or treatment rendered unless the policy also applies that limitation or condition to a licensed health care provider in this state, to provide where a discrepancy exists between this section and a reimbursement rate or condition on a diagnosis, service, or treatment, the discrepancy must be corrected in favor of the lower to higher reimbursement rate or a reduction of the limits or restrictions on the affected health care provider, and to provide a deductible only may be dictated by the plan obtained by the insured and may not vary based on the health care provider rendering the service.
Referred to Committee on Labor, Commerce and Industry

Senate Bill 417
Sponsor: Senators Knotts, Land, Campbell, Coleman, Cromer, Setzler, Courson And Thomas
Introduced in the Senate February 12, 2009
Summary: This bill relates to the entities whose employees retirees, and their dependents are eligible to participate in the state health and dental insurance plans, so as to extend this eligibility to the South Carolina athletic coaches association.
Read the First Time and Referred To The Committee On Finance.
Finance Committee reported out favorable on May 12, 2009
Currently residing on the Senate Calendar

Senate Bill 582
Sponsor: Senator Anderson
Introduced in the Senate March 12, 2009
Summary: This bill enacts the "Physician Transparency Act". It requires physicians seeking licensure to submit information pertaining to, among other things, prior licenses held, disciplinary action taken against the physician, any agreement to temporarily cease or restrict the physician's practice of medicine, actions affecting clinical privileges, criminal convictions, and final judgments or settlements resulting from a malpractice action.
Read the first time and referred to the Committee on Medical Affairs.

Senate Bill 661
Sponsor: Senator McConnell
Introduced in the Senate April 1, 2009
Summary: This Joint Resolution provides that the department of Health and Human Services maintain its medically fragile children's program and shall pursue options to obtain authority to maintain the existing program with its current eligibility criteria.
Referred to the Committee on Medical Affairs

House Bill 3875
Sponsor: Reps. Rice and Cato
Introduced in the House April 2, 2009
Summary: This bill enacts the "South Carolina Healthnet Program". It provides for the creation of a five-year pilot program to promote the availability of health insurance coverage to employees of small employer groups and health group cooperatives regardless of health status or claims experience, establish rules regarding renewal of coverage, limitations on the use of preexisting conditions exclusions, assure fair access to health plans and improve overall fairness and efficiency of the small group health insurance market; to provide for definitions.
Referred to Committee on Labor, Commerce and Industry