Friday Report - June 9, 2023

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The House met on Wednesday and took up vetoes by the Governor, as well as a few other bills on the calendar. The Senate did not meet this week. The budget conference committee met on Wednesday and Thursday and finally reached an agreement on the budget bill (H. 4300) Thursday afternoon. Both chambers will now meet in statewide session in the coming weeks to adopt the conference committee report.

The budget and other bills of interest are discussed below:

Revenue, Finance and Economic Development

Budget – H. 4300. After several weeks of disagreement, the budget conference committee met this week and agreed on a budget bill. As adopted by the conference committee, the state budget increases funding to the Local Government Fund (LGF) by $13,212,234 statewide. This represents full funding to the LGF under the statutory formula. The budget also provides for $20 million in new money to County Transportation Committees. The committee also funded the Rural Stabilization Fund at $12 million, the same as in FY 22-23.

Other funding of note in the budget includes:

  • $155 million to cover a $2,500 base pay increase for state employees making under $50,000 and a 5 percent base pay increase for state employees making over $50,000;
  • $121.5 million for the state’s share of the 3.7 percent increase in premiums under the State Health Plan, including expanded well visits, prescribed contraceptives for dependents, and annual gynecological visits for women;
  • $40.1 million to cover the state’s share of the 1 percent retirement contribution increase;
  • $12 million to the Rural County Stabilization Fund;
  • $1.5 million to the Councils of Governments (COGs);
  • $200 million to the Office of Resiliency for disaster relief and resiliency reserve fund;
  • $311,925 to registers of deeds (This represents increased funding for FY23-24);
  • $690,000 to coroners (This represents increased funding for FY23-24);
  • $690,000 to clerks of court (This represents the same funding as FY 22-23);
  • $690,000 to sheriffs (This represents the same funding as FY 22-23);
  • $690,000 to probate judges (This represents the same funding as FY 22-23);
  • $1,063,214 to county auditors (This represents the same funding as FY 22-23);
  • $1,063,213 to county treasurers (This represents the same funding as FY 22-23);
  • $3 million in salary supplements to magistrates (This represents increased funding for FY 23-24);
  • $1.6 million to coroners to fund the local Child Fatality Review Team program;
  • $750,000 for post-traumatic stress disorder treatment for first responders;
  • $3 million to Labor, Licensing and Regulation for the V-SAFE Fund;
  • $3.894 million in recurring funds for Aid to Fire Districts – Statutory Funding Requirement for insurance premiums under Section 23-9-410;
  • $13.5 million in additional money for destination specific tourism grants;
  • $2.5 million in additional money for regional tourism promotions;
  • $25 million in additional money to the Conservation Bank for grant funding;
  • $3.784 million for the Firefighter Cancer Benefit Plan;
  • $400,000 to the Department of Public Safety for a mental health for incarcerated individuals pilot program; and
  • $4 million to the Department of Mental Health for an alternative transportation program.

In addition to adopting the provisos that remain in the budget from last year, the budget conference committee removed proviso 113.11, which would prohibit political subdivisions from enacting or enforcing an ordinance that prohibits short-term rentals unless the political subdivision also provides financial incentives for the purchase and rental of affordable housing and zoning allowances in exchange for an affordable covenant of at least 20 years. If a political subdivision violates this provision or enacts any such ordinance, the State Treasurer shall withhold their portion of the LGF. The proviso defines “short-term rental” as an individually or collectively owned residential house or dwelling unit or group of units that is rented wholly or partially for residential use for any period of time greater than three consecutive days.

This year’s budget includes the following new or amended provisos of note:

  • 1.100. Incentive Prohibition. Prohibits school districts, or any of their schools, from using state funds to offer students any monetary incentive or inducement to receive a COVID-19 vaccination.

     

  • 34.64. DHEC: Grant Authority. Authorizes the Department of Health and Environmental Control (DHEC) to make grants to nonprofit organizations and governmental entities for public health and environmental programs. Directs the department to develop policies and procedures and promulgate regulations.

     

  • 34.65. Dam Safety Emergency Fund. Of the funds appropriated for dam safety beginning with the General Appropriations Act for Fiscal Year 2023-24, there is established within DHEC the Dam Safety Emergency Fund. The fund shall be utilized for emergency actions to protect life or property under Section 49-11-190(D). The department shall deposit up to $250,000 of appropriated funds into the fund at the beginning of each fiscal year. Fund balances shall be carried forward from each prior fiscal year into the current fiscal year and used for the same purpose. Expenses recovered from dam owners under Section 49-11-190(D) shall be deposited into the fund.

     

  • 43.6. Firefighting Equipment and Response Carry Forward. Authorizes the Forestry Commission to carry forward any unspent funds appropriated for firefighting equipment into the current fiscal year and to spend these funds for the same purpose.

     

  • 49.16. Destination Specific Tourism. Amended to state that non-recurring funds appropriated to the Destination Specific Tourism Marketing grant program shall not be subject to a match requirement during the current fiscal year.

     

  • 60.5. PCC: Solicitor’s Office – County Funding Level. This proviso was amended by the Senate Finance Committee to provide that if the county reduces the amount of support provided to solicitor’s offices below the level provided in the prior fiscal year, the State Treasurer shall withhold the county’s State Aid to Subdivision funding by a corresponding amount. The conference committee removed the penalty provision from this proviso.

     

  • 60.11. PCC: Caseload Equalization Funding. Increases the amount appropriated and authorized for Caseload Equalization. The proviso will have the first $10,350,000 distributed at an amount of $225,000 per county. The remaining $12,006,872 shall be distributed based upon the average incoming caseload for each county as reported by the Judicial Department for the prior three fiscal years.

     

  • 61.1. INDEF: Defense of Indigents Formula. This proviso was amended by the Senate Finance Committee to provide that if the county reduces the amount of support provided to a public defender’s office below the level provided in the prior fiscal year, the State Treasurer shall withhold the county’s State Aid to Subdivision funding by a corresponding amount. The conference committee removed the penalty provision from this proviso.

     

  • 65.19. Corr: Quota Elimination. This proviso provides that counties shall be required to provide to the Department of Corrections all available medical history and screening records, booking reports, and other documents required to assist the department in its intake processing at least one day prior to the date for transfer of an inmate. Counties are not required to perform additional medical screening at the time of transfer. However, counties shall not be allowed to have an inmate admitted to the department until after the above-mentioned records are transferred to the department.

     

  • 108.6. PEBA: State Health Plan. Provides for an employer premium increase of 3.7 percent and a subscriber premium increase of 0 percent for the standard State Health Plan for Plan Year 2024.

     

  • 113.3. AS-TREAS: Salary Supplements. Directs that salary supplements for county clerks of courts, probate judges, coroners, sheriffs, and registers of deeds be distributed to each county treasurer quarterly and directs that the amounts for county auditors and county treasurers be equally distributed to each county auditor and treasurer as a salary supplement in addition to the salary and other benefits presently provided by the county. The proviso also:

     

    • States the intent of the General Assembly that county appropriations for these salaries not be reduced as a result of the appropriation;

    • Exempts these funds from any across the board cut; and

    • Authorizes a county governing body to reduce expenditures in the operation of these offices without any required corresponding reduction in the county’s State Aid to Subdivision distribution and directs that any reduction in the officials’ budgets must be made in consultation with the affected official.

 

The proviso also provides for salary increases for magistrates. Full-time magistrates will receive a $10,000 increase in their base salary. Part-time magistrates will receive a $2,500 increase in their base salary. These salaries will remain decoupled from the circuit court judge salaries. The salary supplement shall not disqualify each magistrate for salary increases that they might otherwise receive from county funds in the future.

  • 117.147. Mental Health Transport. Allows the Department of Mental Health to amend the contract to add additional counties to the program.

Municipal Audits – S. 31. This bill would allow municipalities with less than $500,000 in total revenues to provide a compilation of financial statements in place of an annual audit report. SCAC worked with the stakeholders and members of the Ways and Means Committee to include a provision giving counties flexibility in providing their annual audit report to the state before their allotment of the Local Government Fund could be withheld. Under the amendment, the annual audit report would have to be provided to the State Treasurer by January 1 of each year. Upon showing proper cause, as determined by the State Treasurer, the county will receive an automatic 90-day extension. To be considered, a request for an extension must be signed by the chair of the council prior to the deadline for filing. The Governor’s veto was overridden by the Senate and the House and S. 31 has now become an Act.

Public Safety, Corrections and Judicial

Trafficking in Fentanyl – H. 3503. As introduced, H. 3503 would create the criminal offense of trafficking in fentanyl and would provide substantial penalties for such offenses. The Senate amended the bill to the version of the bill (S. 153) it passed earlier this year. As a result, H. 3503 would add fentanyl-related substances to the list of Schedule I controlled substances and would create the felony offense of trafficking in fentanyl. The bill would also increase penalties for trafficking in fentanyl compared to other drugs and would establish a mandatory minimum sentence. The amendment adopted by the Senate would also prohibit a person convicted of trafficking fentanyl from possessing a firearm.

The bill contains the following guidelines:

  • For a first offense, a term of imprisonment of not less than seven years nor more than 25 years, no part of which may be suspended or probation granted, and a fine of $50,000;
  • Possession of more than two grains of fentanyl or fentanyl-related substance is guilty of a felony and, upon conviction must be imprisoned not more than five years or fined not more than $5,000 or both;
  • For a second offense, the offender is guilty of a felony and, upon conviction, must be imprisoned not more than 10 years or fined not more than $7,500, or both; 
  • For a third or subsequent offense, the offender is guilty of a felony and, upon conviction, must be imprisoned not more than 15 years or fined not more than $10,000, or both; and
  • Notwithstanding any other provision of law, a person convicted and sentenced pursuant to this item for a first or second offense may have the sentence suspended, and probation granted and is eligible for parole, supervised furlough, community supervision, work release, work credits, education credits, and good conduct credit.

The House adopted the Senate amendments and H. 3503 has been enrolled for ratification.

Youth Offenders Expungement – H. 3890. This bill amends Section 22-5-920, relating to youthful offender eligibility for expungement of certain offenses, to allow expungement for convictions involving a driving under suspension offense or a disturbing schools offense. The Governor’s veto was overridden by the House. H. 3890 will be taken up when the Senate decides to meet to take up vetoes by the Governor. 

Land Use, Natural Resources and Transportation

Septic Tank Pilot Program – H. 4486. This bill would allow DHEC to create a pilot program in designated areas of the state that would allow septic tank installers to conduct septic tank field evaluation tests for the department. Septic tank installers that are interested in participating in the pilot program would be required to register with DHEC, hold a valid license that is deemed to be in good standing, and must receive written approval by the department. H. 4486 was given third reading in the House this week and sent to the Senate.

Legislative Session: 
2023-2024