COVID-19 | SC Legislative Update May 13

COVID-19 | SC Legislative Update

May 13, 2020

The South Carolina General Assembly adjourned yesterday evening (effectively sine die) and will meet in perfunctory session until May 14, 2020. Below are highlights from yesterday’s legislative activity:

H. 3411 (Continuing Resolution) was approved yesterday by the General Assembly and is awaiting Gov. McMaster’s approval. The CR funds various COVID-19 activities and funds government at the current levels until an appropriation bill is adopted. The continuing resolution provides:

Section 1 – Funding State Government
- FY 19-20 appropriations act to continue for FY 20-21 beginning July 1, 2020.
Section 2 – Dictates Receipt, Utilization and Management of Federal Relief Funds
Section 3 – COVID-19 Response Reserve Account and Statewide Testing Plan
- Appropriates the following:
  - Contingency Reserve Fund $20 million to the Disaster Trust Fund for a federally declared disaster or a state of emergency;
  - $155 million to a COVID-19 Response Reserve Account;
  - $25 million to MUSC for statewide COVID-19 testing; and
  - $1.5 million to Department of Administration for oversight and compliance of state spending of federal COVID-19 relief funds.
- Governor may direct reimbursements to local governments and hospitals and to direct up to $15 million for the protection of voters and election workers.
- MUSC, DHEC, and SCHA must develop a statewide COVID-19 testing plan within ten days of the effective date of the CR.
Section 4 – Department of Education and School Districts
- Superintendent of Education may waive statutory requirements concerning testing, assessments and reporting. In addition, maintains the state teacher minimum salary schedule at the FY 2019-2020 level and suspends step increases until the annual appropriations act is adopted.
Section 5 – Furlough Flexibility
- Allows state agencies the flexibility to authorize furloughs subject to State HRO approval.
Section 6 – Use of Revenue and Transfer Flexibility
- State agencies may spend earmarked or restricted revenue to maintain critical programs.
Section 7 – Federal and Other Fund Authorization – Interim adjustments must be approved by the EBO.
Section 8 – Accrual of Tax Payments
- Comptroller General must accrue revenue by July 15 into the FY 19-20 General Fund.
Section 9 – Suspends the 1% employer contribution rate increase for SCRS and PORS for FY 2020-21
Section 10 – South Carolina DEW
- Voluntary Furlough Payments During COVID-19 – Classified as severance pay and not as wages
Section 11 – Santee Cooper
- Santee Cooper may not take any action which would impair, hinder, or otherwise undermine from an economic, operational, feasibility, or any other perspective the ability of the General Assembly to complete its consideration regarding Santee Cooper’s status. Provides for specific exemptions and clarification process.
Section 12 – Proviso Deletions
- Deletes the following FY 19-20 provisos:
  - 112.1 (DS: Excess Debt Service)
  - 117.112 (GP: Employee Compensation)
  - 118.16 (SR: Nonrecurring Revenue)
  - 117.155 (GP: Higher Education Tuition Mitigation)

The General Assembly adopted S. 1194 (Sine Die Resolution), which prescribes the activities of the General Assembly from May 15 – November 8, 2020, and authorizes the following:

May 15 – September 15: President of the Senate and Speaker of the House may call their respective chambers back in session at their discretion. The House or Senate may consider the following during this time:
- General Appropriations Bill, the Capital Reserve Fund Resolution, any Supplemental Appropriations Bill, any rescission bill, and any Continuing Resolution to fund the ordinary expenses of state government, if necessary, until the passage of the General Appropriations Bill;
- gubernatorial vetoes;
- resolutions affecting Sine Die adjournment;
- legislation necessary to address any shortfall in revenue meeting the conditions of Section 11-9-1140;
- appointments;
- resolutions expressing sympathy or congratulations;
- local legislation that has the unanimous consent of the affected delegation;
- disposition of conference and free conference reports for which a committee of conference has been appointed prior to 5:00 p.m. on Thursday, May 14, 2020;
- joint assembly to conduct elections for offices or vacancies in any offices filled by election of the General Assembly;
- legislation concerning COVID-19 and related matters; and
- legislation passed by one house prior to May 14, 2020.
September 15 – September 24, 2020: General Assembly shall convene and may consider the matters enumerated above.
September 24 – November 8, 2020: President of the Senate and Speaker of the House may call their respective chambers back in session at their discretion. The House or Senate may consider the following at this time:
- General Appropriations Bill, the Capital Reserve Fund Resolution, any Supplemental Appropriations Bill, any rescission bill, and any Continuing Resolution to fund the ordinary expenses of state government, if necessary, until the passage of the General Appropriations Bill;
- gubernatorial vetoes;
- resolutions affecting Sine Die adjournment;
- legislation necessary to address any shortfall in revenue meeting the conditions of Section 11-9-1140;
- appointments; and
- legislation concerning COVID-19 and related matters.

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