Legislative eNews-April 27, 2007
STATE
State Senate Passes Budget
The State Senate voted this week 32-9 to pass a $7 billion budget. The Senate budget provides funding for education needs associated with the Education and Economic Development Act (EEDA) and the Department of Commerce has been slated to receive dollars for a closing fund and regional economic development organizations. The budget also includes increased tourism advertising and product development funding for the South Carolina Department of Parks, Recreation, and Tourism (SCPRT).
The budget will be sent back to the House to hash out differences in the spending plans which diverge on tax cuts and other issues. Under the Senate plan, grocery taxes would be cut to 1 percent starting November 1 and eliminated in future years through half-cent cuts. The House plan passed last month cut state income taxes by $81 million.
Cigarette Tax Reduction Passed in by House – Funds Not Dedicated to Health Care
The House voted 78-37 on a tax plan (H. 3567) that raises cigarette taxes by 7 cents to 37 cents per pack and cuts the sales tax on groceries to 1.4 cents on the dollar. In addition, $1 million in new cigarette tax revenues will to go to the Department of Agriculture to promote healthy eating.
Opponents of the bill, including the SC Chamber, argued that proceeds from a cigarette tax increase should go to health care and should be used to assist small businesses in providing health care for their employees. It is also important that proceeds from any cigarette tax increase be used to match federal Medicaid dollars for citizens living at or below the poverty level
Statewide Smoking Ban Defeated for the Year
In related news, a bill to implement a statewide-smoking ban appears to be defeated after several key legislators placed holds on the bill.
The original legislation allowed local governments to ban smoking to clear up any ambiguity by judges. An amended bill passed last week varies in that approach and instead banned smoking in restaurants statewide but allowing it at other locations, such as bars if they apply for a special permit.
House Moves Forward on Wireless Broadband Legislation
The state House on Tuesday approved a bill that paves the way for a wireless broadband network that would provide wireless Internet access to all parts of South Carolina.
The bill creates a Wireless Technology and Communications Commission that would study the economic, financial and technological feasibility, and look into the possibility of a public-private partnership to implement and operate the network. The bill now moves to the Senate.
Coastal Property Insurance Update
A key House subcommittee gave a favorable report on Thursday to H. 3820, the Omnibus Coastal Property Insurance Reform Act of 2007. The bill contains provisions that would: create catastrophe savings accounts, force insurers to give mitigation credits, establish incentives for insurance companies to write additional policies in the wind and hail pool zone, clarify the practices and procedures of the Wind and Hail Underwriting Association, establish a mitigation grant program, expand the cancellation notice period to 60 days, and force insurers to reveal catastrophe models used by the Department of Insurance. The bill will now move to the full Labor, Commerce, and Industry Committee.
