Friday Report - February 11, 2022

This week the Senate finished debating the medical cannabis bill (S.150) while the House continued to move through its calendar. Several bills of interest will be discussed below in this week’s Friday Report.

SCAC will host its Mid-Year Conference on Wednesday, Feb. 23 at the Embassy Suites Hotel in Columbia. NACo will provide an update on ARPA and US Treasury’s Final Rule. County officials will also receive an economic update and information regarding broadband opportunities. Members are encouraged to meet with their delegation members at the State House. A legislative reception will be held at The Palmetto Club that evening from 5-7 p.m. More details are available at the end of this week’s Friday Report.

Also, as a reminder, Statements of Economic Interest (SEI) must be filed with the State Ethics Commission by noon, March 30th.

Revenue, Finance and Economic Development

American Rescue Plan Act (ARPA) – State Authorizations – H.4408. The House Ways and Means Committee met this week on several bills including H. 4408, dealing with the state’s share of ARPA funds. This legislation would provide over $453 million in funding to SCDOT, $400 million to the State Broadband Office to expand access to high-speed broadband internet, $100 million to the Office of Resilience, and $800 million to the South Carolina Rural Infrastructure Authority (RIA) for three separate grant programs regarding water, wastewater, and stormwater projects. The RIA grants would provide local governments with opportunities to build and update aging infrastructure across the state. Additionally, the RIA would be required to transfer $500,000 to each of the 10 Council of Governments for planning assistance, development of grant proposals, and compliance assistance related to improvements in water, wastewater, and storm water infrastructure for smaller systems. H.4408 received a favorable report as amended and is now pending a second reading on the House calendar.

Savannah River Site Settlement Funds – S. 956. This legislation would appropriate the $525 million that the state received from the Savannah River Settlement (SRS) to the “SRS Settlement Account” that will be housed under the Department of Administration. Under the Senate’s proposal, 65 percent ($341 million) would be sent to the “primary” counties affected by the lawsuit which include Aiken, Barnwell, and Allendale. Ten percent ($52 million) would go to “perimeter” counties also affected including Bamberg, Colleton, Edgefield, Hampton, Lexington, Orangeburg, and Saluda. The remaining 25 percent ($131 million) would be sent to the County Transportation Committees (CTCs) in all counties except the three counties that were deemed “primary.” These funds would be distributed under the existing CTC funding formula.

Counties deemed either “primary” or “perimeter” under the legislation would be required to submit a written request for the funds to the Department of Administration’s Executive Budget Office (EBO). The appropriations may then be released to the county to fund an eligible project at the direction of the EBO following the receipt of the written request and subject to approval by the Joint Bond Review Committee. S. 956 received a favorable report as amended and is pending a second reading on the Senate calendar.

View a complete list of the eligible projects.

Motor Vehicle Registration – H. 4151. This bill would change the current biennial registration of motor vehicles to annual registration with all counties eventually issuing revalidation decals and license plates, an SCAC policy position. SCAC staff testified in favor of H. 4151, but a House Education and Public Works subcommittee adjourned debate on the bill due to its fiscal impact on the State Infrastructure Bank (SIB). SCAC staff plans to work with the bill’s sponsor to find a way to lessen the financial burden on the SIB.

Assistant Director of Governmental Affairs Owen McBride testified before a House Education and Public Works subcommittee.		SCAC Staff members met with members of South Carolina Auditors, Treasurers and Tax Collectors (SCATT) who were at the statehouse to discuss legislation.

Public Safety, Corrections and Judicial

Medical Cannabis – S. 150. As initially drafted, this bill would enact the “SC Compassionate Care Act” which would create a regulated medical cannabis program to allow individuals with serious illnesses to access and use medical cannabis when recommended by a physician. SCAC’s policy position is to oppose the legalization of medicinal cannabis due to the lack of FDA approval.

After several weeks of contentious debate, the Senate adopted several amendments which impose the following conditions:

• Provides that an employer is not required to make accommodations to allow an employee to use medical cannabis. An employer may also discipline or terminate an employee for being under the influence of medical cannabis while at work;
• Provides that localities may regulate the locations, hours, and number of medical cannabis businesses or prohibit medical cannabis establishments from operating in the jurisdiction;
• Establishes a system where cannabis establishment applicants must meet certain conditions, and in cases in which more applicants apply than are allowed by the local government, the local government shall follow the preference analysis procedure established by the Department of Health and Environmental Control (DHEC);
• Imposes a 6 percent sales tax at the point of sale that will also be subject to any applicable local option sales tax enacted pursuant to Chapter 10 of Title 4;
• Provides that, in order to be licensed as a medical cannabis establishment, the establishment principal applicant shall submit to DHEC a completed electronic application signed by each principal and a copy of any local registration, license, or permit required by local government for the proposed medical cannabis establishment;
• Provides that the provisions of this legislation will sunset on December 31, 2028.

S. 150 was given third reading as amended and has been sent to the House.

County Government and Intergovernmental

State Election Commission – H. 3444. This legislation would require all counties to follow the uniform election practices created by the State Election Commission (SEC). To accomplish this, H. 3444 would provide the SEC with the authority to supervise and standardize the practices of local county election offices. It would also give the SEC and its executive director the power to supervise and standardize the performance, conduct, and practices of the county board of elections and voter registration and to promulgate regulations to effectuate this new authority. After the Senate amended the bill and sent it back to the House, the House adopted several significant additional amendments. As amended by the House, H. 3444 would:

• Eliminate the use of absentee ballot boxes. Completed absentee ballots must be mailed or delivered personally to the county board of voter registration and elections.
• Abolish municipal election commissions and devolve those responsibilities and functions to the appropriate county boards of voter registration and elections. The amendment did not discuss how these additional responsibilities on county boards of voter registration and elections would be funded.
• Establish methods of auditing election results that must be reported on the State Election Commission’s website.

The House then sent H. 3444 as amended back to the Senate and the Senate recommitted the bill to the Senate Judiciary Committee.

SCAC's Mid-Year Conference and Institute of Government Classes

SCAC's 2022 Mid-Year Conference will be held Wednesday, February 23, 2022, at the Embassy Suites Hotel in Columbia. You can access a copy of the registration brochure and conference agenda on the Association’s website. A legislative reception will be held from 5:00-7:00 p.m. at the Palmetto Club. You are encouraged to invite your legislators to dinner while you are in Columbia.

The Institute of Government will be held in conjunction with the Mid-Year Conference on Thursday, February 24, and Friday, February 25. The specific schedule of course offerings is available on the association’s website. The Council Chairperson’s Workshop will be held on Thursday, February 24, from 1:00-4:00 p.m. and is open only to council chairs and vice chairs. It is offered free-of-charge, but registration is required. Should you or your council members need assistance determining which classes to take, please contact Ryan Tooley at (800) 922-6081 or at rtooley@scac.sc.

The conference and Institute registration deadline is February 17.