Legislative eNews-MAY 4, 2007
STATE
Cigarette Tax Increase
The House passed a 30-cent per pack tax increase on cigarettes, with the revenue primarily going to reduce the price of groceries. The Senate is contemplating an even higher cigarette tax increase, with many Senators urging that the money from the increase go to pay for providing greater health insurance coverage, wellness programs, and care for children. The Governor has said that any tax increase, including one on cigarettes, must be offset by the reduction of another state tax or he would veto it.
The debate on how revenue from an increase in the cigarette tax is spent will determine how and if the legislature proceeds.
SCDOT Reform Stalled in Senate
The House and Senate have both approved legislation to restructure the state Department of Transportation.
The House plan would create a seven-member commission elected by the Legislature with an executive director appointed by the governor. The bill has been approved by the House and awaits a Senate vote.
The Senate bill creates a seven-member board appointed by the governor. The executive director would be hired by the board. In addition, it would create a legislative oversight committee. The bill has been approved by the Senate. The House changed the bill to its version. The Senate is debating a change to the bill before deciding whether a six-member panel will negotiate a final compromise with the House. The Senate debate this week became bogged down with questions raised by the Highway Commission in a letter to the Senate.
Since two new members were appointed to the six-member State Highway Transportation Commission in the past six weeks, the Commission has begun to resist legislative reform attempts, including the naming of former DOT Chairman Buck Limehouse to fill the vacant executive director position before the House and Senate complete work on the overall restructuring bill.
Workers Compensation Bill Moves Forward in House Committee
The House Business and Commerce Subcommittee reported out a workers' compensation reform bill on Wednesday that includes strong language supported by the business community. The workers' compensation reform legislation is expected to be reported out of the full Labor, Commerce, and Industry Committee next week and then go to the House floor. The Senate passed a workers’ compensation bill that contained several provisions strongly opposed by the business community.
Coastal Property Insurance
The House Labor, Commerce and Industry Committee gave a favorable report this week to H.3820, the Omnibus Coastal Property Insurance Reform Act of 2007. This legislation includes tax credits, notice requirements, premium discounts, and grants emergency powers to the Department of Insurance Director during a declared statement of emergency, among other things. This important legislation is now pending the House calendar for adoption.
