Statehouse Report
335D Blatt Building
SC House District #108
With the legislative session moving through its third week, most bills are still being referred to committee. This review will look at some bills of interest that are being introduced and discussed in committee meetings.
Aid for Working People and Families
There has been discussion on both the federal and state levels about increasing the minimum wage. Currently set at $5.15 per hour, the minimum wage has not been raised since 1996 while living costs (gas, health care, housing) have continued to rise over the past decade. Two bills in the house seek to raise the minimum wage. Bill 3022 proposes a $7.25 minimum wage, while bill 3163 would set the wage at $7.00 per hour. It is estimated that 179,000 South Carolinians would benefit from an increase in the minimum wage.[1] To offset possible financial pressure on businesses, bill 3163 would provide a tax credit to businesses that would be affected by the wage increase.
Over the past decade an increasing number of working families have slipped from the middle class into poverty. Bill 3167 seeks to slow this trend by providing low-income working families with an earned income tax credit. This state tax credit is modeled after the current federal earned income tax credit. The proposed bill would phase the state tax credit in over a five-year period beginning in 2007 until it reached 20% of the federal earned income tax credit.
Consumer Credit Protection
Credit ratings are critical to a person’s ability to make large purchases, obtain loans, or rent property. Currently, there are few safeguards in place to ensure that credit-reporting agencies utilize accurate or relevant information in determining a person’s credit rating. Bill 3281, the South Carolina Fair Credit Reporting Act, would require all credit reporting agencies to use an established, fair and equitable system for determining credit ratings.
Over the past few years a great number of money-lending businesses, officially known as deferred presentment services, have started doing business in South Carolina. While these businesses can provide people much-needed cash in a very short time period, the interest rates charged on these loans often reach 400% which is 50 times the rate on an average bank loan. These high rates can make paying off a loan difficult if not impossible. Bill 3294 would cap the interest rates on loans from deferred presentment services at 36%. This bill, which I have co-sponsored, has received strong support from both Republicans and Democrats.
Fiscal Responsibility
Fiscal responsibility in state government requires attention to the quantity of money allocated as well as how those dollars are spent. Bill 3002 addresses how taxpayer-dollars are spent by preventing what is called “Pass-Through Legislation.” A pass-through occurs when money allocated for a specific state agency is passed through that agency and onto another entity or individual who has a different purpose than the original state agency. The proposed legislation would help see that money is spent on what it was originally intended for unless language in the appropriations bill or resolutions specifically allows a transfer of funds from one agency to another.
Government Reform
In his State of the State address, the Governor again called for restructuring State Government. Currently, there are several bills in both the House and Senate that propose changing some of the nine constitutional offices from elected positions to positions that would be appointed by the Governor. In addition to
Page Two
January 25, 2007
Governor, these constitutional positions are Adjutant General, Attorney General, Commissioner of Agriculture, Comptroller General, Lieutenant Governor, State Superintendent of Education, Secretary of State, and Treasurer.
While a large majority of legislators agree that restructuring is needed, opinions on which positions should be elected or appointed vary from one legislator to the other. Legislators often cite keeping one or more of the positions independent of the Governor’s office as a way of keeping a balance of power in state government. More updates will be provided as this difficult issue is addressed.
If you have a comment or opinion concerning the matters discussed in this report, or if I may be of assistance to you at any time, please feel free to call your legislative office in Columbia (803-734-2957); my home office (843-237-8603); or the Georgetown County Legislative Delegation Office, located in the Courthouse (843-545-3029); or write P.O. Box 1270, Georgetown, SC 29442. If you would like any additional information on these bills, or any other legislation under consideration by the General Assembly, feel free to visit our website at www.scstatehouse.net. Thank you for the opportunity to serve you in the House of Representatives.
SC House District #108
With the legislative session moving through its third week, most bills are still being referred to committee. This review will look at some bills of interest that are being introduced and discussed in committee meetings.
Aid for Working People and Families
There has been discussion on both the federal and state levels about increasing the minimum wage. Currently set at $5.15 per hour, the minimum wage has not been raised since 1996 while living costs (gas, health care, housing) have continued to rise over the past decade. Two bills in the house seek to raise the minimum wage. Bill 3022 proposes a $7.25 minimum wage, while bill 3163 would set the wage at $7.00 per hour. It is estimated that 179,000 South Carolinians would benefit from an increase in the minimum wage.[1] To offset possible financial pressure on businesses, bill 3163 would provide a tax credit to businesses that would be affected by the wage increase.
Over the past decade an increasing number of working families have slipped from the middle class into poverty. Bill 3167 seeks to slow this trend by providing low-income working families with an earned income tax credit. This state tax credit is modeled after the current federal earned income tax credit. The proposed bill would phase the state tax credit in over a five-year period beginning in 2007 until it reached 20% of the federal earned income tax credit.
Consumer Credit Protection
Credit ratings are critical to a person’s ability to make large purchases, obtain loans, or rent property. Currently, there are few safeguards in place to ensure that credit-reporting agencies utilize accurate or relevant information in determining a person’s credit rating. Bill 3281, the South Carolina Fair Credit Reporting Act, would require all credit reporting agencies to use an established, fair and equitable system for determining credit ratings.
Over the past few years a great number of money-lending businesses, officially known as deferred presentment services, have started doing business in South Carolina. While these businesses can provide people much-needed cash in a very short time period, the interest rates charged on these loans often reach 400% which is 50 times the rate on an average bank loan. These high rates can make paying off a loan difficult if not impossible. Bill 3294 would cap the interest rates on loans from deferred presentment services at 36%. This bill, which I have co-sponsored, has received strong support from both Republicans and Democrats.
Fiscal Responsibility
Fiscal responsibility in state government requires attention to the quantity of money allocated as well as how those dollars are spent. Bill 3002 addresses how taxpayer-dollars are spent by preventing what is called “Pass-Through Legislation.” A pass-through occurs when money allocated for a specific state agency is passed through that agency and onto another entity or individual who has a different purpose than the original state agency. The proposed legislation would help see that money is spent on what it was originally intended for unless language in the appropriations bill or resolutions specifically allows a transfer of funds from one agency to another.
Government Reform
In his State of the State address, the Governor again called for restructuring State Government. Currently, there are several bills in both the House and Senate that propose changing some of the nine constitutional offices from elected positions to positions that would be appointed by the Governor. In addition to
Page Two
January 25, 2007
Governor, these constitutional positions are Adjutant General, Attorney General, Commissioner of Agriculture, Comptroller General, Lieutenant Governor, State Superintendent of Education, Secretary of State, and Treasurer.
While a large majority of legislators agree that restructuring is needed, opinions on which positions should be elected or appointed vary from one legislator to the other. Legislators often cite keeping one or more of the positions independent of the Governor’s office as a way of keeping a balance of power in state government. More updates will be provided as this difficult issue is addressed.
If you have a comment or opinion concerning the matters discussed in this report, or if I may be of assistance to you at any time, please feel free to call your legislative office in Columbia (803-734-2957); my home office (843-237-8603); or the Georgetown County Legislative Delegation Office, located in the Courthouse (843-545-3029); or write P.O. Box 1270, Georgetown, SC 29442. If you would like any additional information on these bills, or any other legislation under consideration by the General Assembly, feel free to visit our website at www.scstatehouse.net. Thank you for the opportunity to serve you in the House of Representatives.
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