SUMMER NEWSLETTER
2004 SESSION IN REVIEW
Senator Wes Hayes
District #15
2004-2005 STATE BUDGET HIGHLIGHTS
LOTTERY
THE FISCAL DISCIPLINE PLAN OF 2004
In a budget related initiative the general assembly passed this law to insure that the state does not inadvertently create a deficit as did happen in recent years.
REFERENDUM FOR A CONSTITUTIONAL AMENDMENT FOR REPEAL OF THE MINI-BOTTLE
Senator Hayes sponsored this resolution and advocated changes in these laws for obvious and apparent health and safety reasons. As a result of its size, the mini-bottle creates the strongest alcoholic beverage drink in the nation. The State Constitution presently requires the establishments that pour liquor for consumption on their premises to use mini-bottles. This resolution authorizes a referendum to determine the will of the people in taking this requirement out of the Constitution allowing the method of distribution to be determined by the General Assembly. Ratified by the General Assembly, this issue will be on the ballot in November. The outcome of this referendum will determine how alcoholic beverages will be served in South Carolina nightclubs and restaurants.
FOREIGN CORPORATIONS, MERGERS, AND PARTNERSHIPS
In 2003 Governor Sanford appointed Senator Hayes to a “Blue Ribbon” Task Force charged with the responsibility of reviewing current law related to methods of incorporations in South Carolina. This task force discovered that South Carolina Laws governing these processes were outdated and did not address the current needs for international business marketing. To rectify this, the task force drafted very complicated legislation that would insure South Carolina would benefit by the wide range of corporate relationships presently existing as a part of the state’s economy. Senator Hayes introduced this legislation in the Senate and Representative Harrison introduced it in the House. This law deals with the legal and technical methods of bringing about corporate mergers, validating foreign corporations, mechanisms for partnerships to become corporations, and the methods by which businesses change their corporate status.
UNIFORM ELECTRONIC TRANSACTIONS ACT
Another product of the Governor’s “Blue Ribbon” Task Force that Senator Hayes introduced was legislation to establish rules by which legal records and signatures can be transferred electronically. This bill does that along with instructing the Secretary of State to provide procedures and regulations for secure electronic transactions. It also makes the Computer Crime Act applicable to the Uniform Electronic Transactions Act. Both of these news laws have been received well by business and industry across the state.
TEXTILES COMMUNITY REVITALIZATION ACT
Since 1997 South Carolina has had
65 textile plants close and over 14,000 jobs lost in the textile industry. York
County has felt the impact with the loss of major employers such as the Highland
Park Mill, J. P. Stevens Mill, Lowensteins’ Plant (The Bleachery), the Springs’
“White Plant,” and others. This leaves communities like ours with loss of
jobs, unmarketable properties, and blighted neighborhoods.
This new Act, sponsored by Senators Short and Hayes, creates meaningful
incentives for the renovation, improvement, and redevelopment of abandoned
textile sites in South Carolina. A property owner or group of investors in such
a project would be entitled to choose one of two tax credits. 1) A Real Property
Tax Credit equal to 25% of the rehabilitation of the real property improvements;
provides up to 8 year tax credits carry forward; provides up to 75% of the real
property taxes due per year; requires approval by ordinance and public hearing
by municipality or county and all local taxing entities have opt out provisions
for participation in the tax credit. 2) A Personal or Corporate Income Tax
Credit equal to 25% of the rehabilitation expenses of the real property
improvements: provides up to 10 year tax credits carry forward. This tax credit
is in addition to the South Carolina Historic Tax Credit.
By providing these tax credits, the community will see the restoration and
enhancement of established properties that exist as a part of the community’s
history and identity. In Rock Hill we are already seeing the evidence of this in
the Highland Park development. Plans for the new commercial Textile Corridor
where the vacant Bleachery now stands empty are in place. This new law is vital
in attract ing investors for this project.
HISTORICAL PROPERTIES TAX CREDITS ACT
In conjunction with the Textile Revitalization Act, Senator Hayes also introduced this bill at the request of York County Councilman Rick Lee. It passed in the final days of session. Prior to it becoming law, the State Department of History and Archives controlled the process by which a local property owner becomes eligible for special property tax credits for improvement to unique properties with historical value. This new law gives local counties and municipalities the local option to offer these incentives and manage the criteria by which property owners will be eligible for the tax credits. By special ordinance a local government may now choose to define and coordinate their tax credit programs for local historical sites and supervise how they are improved. In this manner greater attention can be given to the communities blighted areas.
PROPERTY TAX CAP
The General Assembly amended tax laws to limit to 20% any county property tax increases resulting from revaluation of property values attributable to countywide appraisal and equalization programs. The intent of this law is to limit the taxing authority of counties in order to protect taxpayers from increased taxes as a result of property reevaluation. This legislation has caused most school boards and county governments to evaluate closely their taxing procedures. An additional item was added to require the Speaker of the House and the President Pro Tempore of the senate to appoint, by January 14, 2014, a task force to study the effects of these provisions on homeowners and on the real estate industry recommend any changes. This task force must report to the General Assembly by January 13, 2015.
MOTION PICTURE/COMMERCIAL ADVERTISEMENT INCENTIVES
Senators Richie and Hayes worked together to promote legislation that would give financial incentive to the film industry who wishes to use locations in the state to produces movies, advertisements, and media events. Many of our historical sites, such as colleges and universities like Winthrop, are desirable locations of these film producers. However, other southern states provide economic incentives that give them an advantage in the recruitment of such interest. This bill levels the playing field and returns some advantage to South Carolina.
CATAWBA/WATEREE RIVER BASIN BI-STATE COMMISSION
Senator Hayes sponsored this
legislation in South Carolina, while Mecklenburg County Senator Clodfelter
introduced it in North Carolina. The purpose of this Bi-State Commission is to
continually assess the use and water quality of the Catawba River as it flows
through Lake Wylie crossing stateliness to Lake Wateree. It will work to insure
that the two states’ regulatory agencies cooperate to provide the purest water
possible for the Piedmont area.
Both commissions will be entirely separate and autonomous. With an amendment
from the House to establish an additional commission for the Yatkin/Pee Dee
River Basin, the bill was passed in the last week of the Legislative Session.
North Carolina agreed to this language and now has passed their version of the
legislation.
LIFE SCIENCES, VENTURE CAPITAL, RESEARCH UNIVERSITY INFRASTRUCTURE ACTS
These Acts are major education and
economic development initiatives that the House and Senate approved under one
comprehensive bill. Because of certain controversial amendments attached to the
legislation, Governor Sanford vetoed the bill, but the General Assembly
over-road the Governor’s veto. Examples of bill aspects that Governor Sanford
found disagreeable are the authority given to USC-Sumter to offer four-year
degrees, a feasibility study to determine the need for a school of law at S.C.
State University, and a provision for financing an international convention
center and tourism-training project in Myrtle Beach under the State General
Obligation Economic Development Bond Act.
The Life Sciences Act provides economic development incentives for businesses to
establish in the state certain life sciences facilities engaged in
pharmaceutical, medicine, and related laboratory instrument manufacturing,
processing, or research and development similar to that found within the “Research
Triangle” in North Carolina.
The Venture Capital Investment Act establishes within the Department of Commerce
a fund to promote investment in knowledge-based technology companies.
The Research University Infrastructure Act increases the limitation on general
obligation debt to 6% with the additional debt service capacity used to advance
economic development, create a knowledge based economy, and to facilitate and
increase research within the State at the research universities (USC, Clemson,
and MUSC). The amount of the general obligation debt issued under the act that
may be outstanding at any one time may not exceed $250 million.
TEACHER PROTECTION ACT
This bill addresses each criminal level of assault against school employees. It provides that a student who commits “simple assault” against a person affiliated with a school in an official capacity when the offense occurs on school grounds or at a school-sponsored event, is guilty of a misdemeanor punishable by a fine of up to $500, or imprisonment of up to thirty days, or both. The bill provides that a student who commits “assault and battery” other than one that is aggravated, against such a person is guilty of a misdemeanor punishable by a fine up to five thousand dollars, imprisonment of up to one year, or both. This bill goes further to provide that a student who commits “assault and battery of a high and aggravated nature” against a person affiliated with a school in an official capacity is guilty of a felony punishable by a fine up to five thousand dollars, imprisonment of up to ten years, or both.
CHILDREN’S ADVOCACY CENTERS
This bill establishes criteria for
the operation of Children Advocacy Centers and provides specific guidelines for
these centers. It describes appropriate methods centers need to employ to
support children at risk of being abused. Centers must provide therapeutic
counseling services, support services for the child and non-offending family
members, and court advocacy. Centers also should provide consultation and
training for professionals who work in the area of child abuse and neglect. This
legislation determines that the mutual goal of these centers should be to reduce
the negative impact to children in this setting and to break the cycle of abuse.
The Sexual Assault Research Center of York County has recently announced the
opening of just such a facility in Rock Hill.
At the request of the Children’s Law Project of the University of South
Carolina, Senator Hayes first introduced this legislation two years ago. It
passed the Senate, but did not pass the House. Last year Senator McConnell and
Senator Ford joined him in reintroducing the legislation. With their help the
bill passed the General Assembly, and was signed into law by the Governor as Act
177.
PUBLIC SERVICE COMMISSION REFORM
In response to negative public opinion about how members of the public service
commission are selected, the General Assembly passed and the Governor signed
into law a comprehensive reform of the Public Service Commission. This Bill
establishes new provisions as to the qualifications, screening, and terms of
membership for the Commission.
The Office of Regulatory Staff is established. This Office which will be a
separate state agency. It is charged with representing the public interest in
all proceedings before the commission. The legislation also establishes the
State Regulation of Public Utilities Review committee. Its duties include
nominating candidates for the commission, nominating a candidate to serve as
executive director of the Office of Regulatory Staff, and conducting annual
performance reviews of the commission and the Office of Regulatory Staff.
THE CATAWBA INDIAN’S GAMBLING ISSUE
With the support of local officials, state representatives, and religious leaders, Senator Hayes has resisted attempts by the Orangeburg Delegation and their supporters to expand gambling activities of the Catawba Indian Tribe beyond the 1993 agreement. The Catawba Indians have filed a lawsuit to prohibit York County Officials from interfering with any attempts to expand their gambling interest on the reservation. That lawsuit is pending. Those who want casino type gambling in South Carolina will return next year with renewed attempts to introduce legislation for this purpose.
SIGNIFICANT BILLS THAT DID NOT PASS THIS PAST SESSION
South Carolina Health and Human Services Reorganization and Accountability Act; South Carolina Restructuring Act of 2004; State Income Tax Reduction Bill; Tort Reform; Penny Sales Tax Option for Schools; Nurse Licensure Compact Act
CONTACT INFORMATION
This District #15 Newsletter,
concerning events occurring in the General Assembly, is provided as a means to
keep you better informed. Due to the cost of mailing, he will not be able to
mail a copy to everyone in the District; however, you may find copies of this
report placed in various public locations.
This report, along with all of Senator Hayes’ past newsletters, may be viewed
on the Senator’s website, (www.weshayes.com). A public meeting is usually held
twice a year at an accessible location, and you are encouraged to come, express
your opinion, and ask any questions which you might have.