Legislative Update, January 31, 2017

Vol. 34January 31, 2017 No. 04

CONTENTS

HOUSE WEEK IN REVIEW...... 02

HOUSE COMMITTEE ACTION...... 04

BILLS INTRODUCED IN THE HOUSE THIS WEEK...... 10

NOTE: THESE SUMMARIES ARE PREPARED BY THE STAFF OF THE SOUTH CAROLINA HOUSE OF REPRESENTATIVES AND ARE NOT THE EXPRESSION OF THE LEGISLATION'S SPONSOR(S) OR THE HOUSE OF REPRESENTATIVES. THEY ARE STRICTLY FOR THE INTERNAL USE AND BENEFIT OF MEMBERS OF THE HOUSE OF REPRESENTATIVES AND ARE NOT TO BE CONSTRUED BY A COURT OF LAW AS AN EXPRESSION OF LEGISLATIVE INTENT.

HOUSE WEEK IN REVIEW

The House of Representatives amended, approved, and sent the Senate H.3488, a bill that makes provisions for ELECTRONIC INSURANCE DOCUMENTS, including authorization for insurers to deliver, store, or present evidence of insurance coverage by electronic means and provisions that afford consumers the option of receiving and signing notices and documents electronically.

The House amended, approved, and sent the Senate H.3441, a bill authorizing ELECTRONIC PAYMENT OF WORKERS’ COMPENSATION as an alternative to traditional payment by means of a check. The legislation affords the option of receiving workers’ compensation payments by such electronic means as an electronic funds transfer, a direct deposit, or debit card.

The House approved and sent the Senate H.3406, a bill relating to WORKERS’ COMPENSATION COMMISSION FUNDING. By eliminating a five-year sunset provision included in Act 95 of 2013, the legislation provides ongoing authority for the Workers’ Compensation Commission to retain a portion of the annual revenue of the maintenance tax imposed on self-insurers as well as half of the interest charged on delinquent maintenance taxes in order to pay the salaries and expenses of the commission. The Workers’ Compensation Commission must continue to provide a report on each July first to the Chairman of House Ways and Means Committee, the Chairman of Senate Finance, and the Governor of the amount of money the agency has received in the previous fiscal year under these provisions.

The House approved and sent the Senate H.3237, a bill SIMPLIFYING THE APPROVAL PROCESS FOR HIGHWAY ROUTINE MAINTENANCE AND EMERGENCY REPAIRS in keeping with the Department of Transportation restructuring approved through Act Number 275 of 2016 which made the Secretary of Transportation directly accountable to the Department of Transportation Commission. The legislation eliminates requirements for the Secretary of Transportation to evaluate and approve routing operation and maintenance requests or emergency repairs for highway facilities that are not included in the Statewide Transportation Improvement Program, and for the DOT Commission to review the Secretary’s report of routine maintenance and emergency repair requests.

Members also adopted several changes to the rules governing the South Carolina House of Representatives.

House Resolution H.3494 was adopted to approve a HOUSE RULES CHANGE REGARDING THE CROSS OVER DEADLINE for considering legislation from the Senate without a supermajority vote. Under the revised rule, no bill or resolution from the Senate that is received by the House after April 10 during a regular annual session of the General Assembly may be considered unless twothirds of those members present and voting agree to waive the rule and allow for consideration of the legislation. Any bill or joint resolution failing to receive the required vote must be returned to the appropriate committee. The April 10 deadline replaces a May 1 deadline set for the second year of a two-year General Assembly. The earlier deadline accommodates the shortened legislative session approved in Act Number 199 of 2016 and is consistent with the deadline for House-passed legislation that has been adopted by the Senate.

House Resolution H.3497 was adopted to approve a HOUSE RULES CHANGE REVISING AND EXPANDING THE DUTIES OF THE ETHICS COMMITTEE in keeping with theenhancements to the state’s Ethics, Government Accountability, and Campaign Reform Act approved last year to provide for more independent means of investigating alleged misconduct of public officials (Act Number 282 of 2016) and more expansive statements of economic interests for public officials and others who are required to make Ethics Act filings (Act Number 283 of 2016).

House Resolution H.3499 was adopted to approve a HOUSE RULES CHANGE REVISING LIMITATIONS ON AMENDMENTS PROPOSED FOR STATE GOVERNMENT BUDGET LEGISLATION. Under the revised rule, an amendment to the General Appropriations Bill or a Supplemental Appropriations Bill which has the effect of appropriating funds in excess of onemillion dollars must include within the amendment the corresponding appropriation reduction(s) and/or revenue increase(s) that would allow the budget to remain balanced. This rules change lowers the threshold, which was previously set at five million dollars. The rules change also provides that if an amendment identifies unspent projected revenue or balance as the funding source, the Speaker must consult with the Office of Revenue and Fiscal Affairs and confirm the existence of sufficient unspent revenue or balance before the House may consider the amendment.

House Resolution H.3501 was adopted to approve a HOUSE RULES CHANGE REVISING NOTIFICATION REQUIREMENTS FOR CONFERENCE AND FREE CONFERENCE COMMITTEE REPORTS ON STATE GOVERNMENT BUDGET LEGISLATION. The rules change eliminates the requirement that a report of a Committee on Conference or Free Conference concerning the General Appropriations Bills, Supplemental Appropriations Bills for the ordinary expenses of State Government, or legislation appropriating the Capital Reserve Fund must be printed in the House Journal before it may be considered by the House. Even though this printing requirement is eliminated, the House Rules continue to require that these reports must be made available online to the public for at least twenty four hours before they may be considered by the House.

HOUSE COMMITTEE ACTION

AGRICULTURE, NATURAL RESOURCES AND

ENVIRONMENTAL AFFAIRS

The Agriculture, Natural Resources and Environment Affairs Committee met on Wednesday, January 25, 2017. The members reviewed and adopted committee rules for the next two years. The committee also discussed and passed the following bills.

The committee gave a favorable with amendment recommendation to H.3531, a bill that addresses the REGISTRATIONofLARGE WILD CATS, NON-NATIVE BEARS AND GREAT APES. The committee noted that South Carolina is home to one of the nation’s preeminent wildlife preserves which is also a top tourist attraction and an interactive educational experience, attracting thousands of visitors annually and playing a significant role supporting the economy, specifically in Myrtle Beach. In an effort to control and monitor these types of wild animals in the state, the legislation requires a person owning a large wild cat, non-native bear or great ape on or before 2018 must register with the local animal control authority unless these animals are USDA regulated.

The definition of large wild cat include all lions, tigers, leopards, jaguars, cougars, cheetahs, snow leopards and clouded leopards. The legislation outlines that nonnative bears are all bears that are not native to South Carolina and not subject to oversight by the South Carolina Department of Natural Resources. All great apes include all species of chimpanzees, gorillas, and orangutans.

The bill empowers the local animal control authority and its staff and agents, local law enforcement agents, state law enforcement agents, and county sheriffs to enforce the legislation. The bill includes penalties of a fine not more than one thousand dollars or imprisoned for not more than thirty days for a first offense, and must be fined not more than five thousand dollars or imprisoned for not more than ninety days for a second offense.

H.3340, a bill dealing with the NOTIFICATION TO DAM PROPERTY OWNERS WHICH HAS PUBLIC ROAD OR HIGHWAY ACROSS THE TOP was given a favorable with amendment recommendation by the full committee. In an effortto identify and address several breached roads and highways that are still closed as a result of the historic rainfall and flooding, the bill states that an owner of a dam that failed or fails or suffered or suffers breach on or after October 1, 2015, that has a public road or highway running across the top of it, mustprovide written notification to the State Department of Transportation and the Department of Health and Environmental Control within one year after the failure or breach, if the failure or beach occurs after the effective date of this legislation, indicating whether the owner intends to repair the dam and the date by which the repairs are anticipated to be completed. However, a dam that failed or suffered a breach between October 1, 2015 and the effective date of this legislation must provide the notification within 60 days after the effective date of this legislation to make a decision whether to repair the dam. The bill also states that the anticipated completion date in the notice cannot extend more than two years from the date the notification was provided. The bill further states that if the owner fails to give notice, this shall constitute and be construed as a negative intention on the part of the dam owner to fix or repair, in which case the Department of Transportation shall proceed as though a negative response was contained in the notice.

The full committee gave a favorable with amendment report to H.3218addressing REVISIONS TO THE “DAMS AND RESERVOIRS SAFETY ACT”. As a result of the unfortunate outcomes of the October 2015 historic rainfall and flooding, the legislationgivesthe Department of Health and Environmental Control regulatory authority over a dam that is currently unregulated if DHEC determines that the dam’s failure will damage homes, public utilities, highways, or railroads.The bill revises the definition of dams to make it further applicable to certain types of dams. The legislation requires dams and reservoir owners annually to provide by July 1 the Department of Health and Environmental Control current contact information regarding the owner, including name, home or business address, phone number, and email address, if any, together with a completed dam owner checklist on a form provided by the department.

The owner of a dam or reservoir whose failure likely would cause loss of life or substantial property damage, a dam or reservoir classified as a high or significant hazard shall provide DHEC by July 1st of each year a current emergency action plan, including updated contact information for emergency management officials, such as police, fire, EMS, or utility departments or personnel, and for downstream residents and business owners located in the inundation zone for that dam or reservoir. The legislation further outlines that there will be no responsibility placed on the owner of the dam or reservoir classed as high or significant hazard to notify any downstream residents or business owners located in the inundation zone for that dam or reservoir owner has reason to believe that it is near failure or has failed. The owner must notify emergency officials and the department of the dam or reservoir’s failure or potential failure. It is the responsibility of the emergency management officials identified in the emergency action plan to inform any downstream residents or business owners located in the inundation zone of this fact and to cause them to be evacuated if it is considered necessary.

H.3517, a bill relating toSPECIAL AUTHORIZATION FOR HUNTING AND FISHING LICENSES, was given a favorable report by the full committee. The bill outlines that the director of the Department of Natural Resources may issue special authorization for hunting and fishing license without charge to any person not more than twenty-one years of age who has been diagnosed with a terminal or life threatening illness or injury. The person seeking special authorization must be sponsored by a nonprofit charitable organization that has within its mission to provide opportunities and experiences to persons with life threatening illnesses or injuries.

EDUCATION AND PUBLIC WORKS

The Education and Public Works Committee met on Wednesday, January 25, 2017, and reported out seven bills.

The full committee gave a favorable, with amendment, recommendation to H.3427, the"SOUTH CAROLINA COMPUTER SCIENCE EDUCATION INITIATIVE". This bill enacts the "South Carolina Computer Science Education Initiative" and provides that beginning with the 2018-2019 school year public high schools and public charter high schools shall adopt grade appropriate standards for computer science and computational thinking and computer coding for grades 9-12 and by the 2019-2020 School Year, each public high school and public charter high school must offer at least one computer science course. In school year 2018-19, the Department must employ one full-time employee to coordinate and lead the computer science education initiative, support teachers in designing instruction and assignments, design career pathways that connect students to postsecondary programs, and offer teacher endorsements and professional development to new computer science teachers in a two to four week summer institute. Also, the Department of Education is to develop guidelines for outlining the educational and degree requirements for appropriate computer science teachers. The Commission on Higher Education shall determine what, if any, financial incentives are needed by institutions of higher education to design programs to prepare and credential computer science teachers. In addition, the Office of the Governor, beginning in fiscal year 2018-2019, shall establish criteria and a process for designating a STEM community or STEM region. Consistent with federal law, STEM includes computer science.

The Committee reported out H.3220, theSOUTH CAROLINA EDUCATION AND ECONOMIC DEVELOPMENT COORDINATING COUNCIL. This bill adds a section to create the South Carolina Education and Economic Development Coordinating Council. The council is comprised of twenty-nine members serving four year terms representing the geographic regions of the State and are to be representative of the ethnic, gender, rural, and urban diversity of the state. Members span education and business leadership, school district professionals, and college and university and technical college educators. Initial appointments must be made by October 1, 2017 and appointments made by the Superintendent of Education and the Governor are to ensure that the demographics and diversity of this State are represented. The council's responsibilities include advising the Department of Education and the Department of Commerce, reviewing accountability and performance measures, and reporting annually to specifically include progress toward career pathways and the ability to provide a better prepared workforce. The council shall also make recommendations on a communication and marketing plan to the Department of Education and Department of Commerce and provide input on the promulgation of regulations to carry out these provisions. Personnel from the Department of Education and the Department of Commerce shall staff the council.

The Committee passed H.3221,SCHOOL DISTRICT FISCAL AND BUDGETARY INTEGRITY, whichrequires the State Department of Education to develop and adopt a statewide program for identifying fiscal practices and budgetary conditions that, if uncorrected, could compromise the fiscal integrity of a school district and for advising the district on how to take appropriate corrective actions. This bill requires the Department of Education to work with and advise (including providing technical assistance) district superintendents and finance officers to develop a statewide program establishing three escalating levels of fiscal and budgetary concern: “fiscal watch” (lowest level), “fiscal caution” (intermediate level), and “fiscal emergency” (highest level, most severe level).

Each of these levels has specific triggers that determine the declaration of the fiscal status (e.g., accounting/audit problems, ongoing investigations and governance issues, risk of default). Each of these three levels have escalating requirements for the Department to address (e.g., review (with the authority to accept or reject) school district recovery plans, monitor required district responses (up to a year in duration), visit and inspect the district, provide technical assistance which may include ordering a performance audit, and possibly take over financial operations of the district for the fiscal year in which a fiscal emergency is declared as part of the technical assistance offered to the district (including if a district is at risk of defaulting on any type of debt, to include, but not be limited to, tax anticipation notes, general obligation bonds, or lease-purchase installment agreements). Upon approval of the recommendation by the State Board of Education, the department may maintain financial operations until the district is released from a fiscal emergency.

The State Auditor must replicate the requirements of the statewide program created by the Department of Education for state agencies that are also local education agencies. These seven agencies include the Governor's School for Math and Science, the Governor's School for Arts and Humanities, the School for the Deaf and Blind, the Department of Juvenile Justice, the Wil Lou Gray Opportunity School, the John De La Howe School, and the Palmetto Unified School District under the Department of Corrections.