Columbia, SC – March, 10, 2011 – After midnight last night, the Senate passed S. 20, the illegal immigration bill sponsored by Sen. Larry Grooms and co-sponsored by a number of colleagues, including Sen. Ronnie Cromer who is the author of another immigration bill, S. 111. The first part of Grooms’ bill states that if a law enforcement officer has a reasonable suspicion that a person stopped, detained or in custody is an illegal immigrant, that officer or his agency must verify the person’s residency status. The second part makes it illegal to ask for work or attempt to ask for work.

“Illegal immigration is a serious problem for our state,” Grooms said. “People who break the law to come here must be held accountable. We can’t allow them to continue to disregard our laws, weaken our culture, and threaten our liberty.”

Co-sponsored by 20 other senators, the bill was reported favorably out of committee on Feb. 9, but was blocked by Democrats for two weeks. Getting the legislation to the floor and a vote was a priority for Senate President Pro Tem Glenn McConnell and Sens. Cromer and Larry Martin.

“We need to protect the people of our state and not encourage illegals to come to South Carolina,” McConnell said. “We made a good effort three years ago, but we still need to go a little further.”

Grooms credits a 2008 bill on illegal immigration for a lot of the 20 percent drop in illegal immigrants in South Carolina between 2007 and 2010. That bill required employers to confirm an employee’s residency status through the federal E-Verify program. After receiving third reading, S. 20 will head to the House.

“The incentive for illegal immigrants to come to South Carolina needs to be eliminated,” Cromer said. “This bill does that.”

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Another first time for Kevin Bryant. It was a historical moment in the Senate near midnight on Wednesday March 9th, 2011. I cosponsored and supported a new fee! Sen. Luke Ranking (R-Horry) offered and amendment to charge a processing fee on money wires originating in  South Carolina going outside of the United States. This amendment was on the illegal immigration bill.

The fee exempts legitimate wiring through banks, as these types of wiring are already regulated, however, if a South Carolina citizen uses a wiring service, they qualify for a credit on their income tax return.

Hundreds of millions of dollars are wired out of South Carolina by drug lords and illegals yearly. So here’s another way for the Palmetto State to roll out the unwelcome mat for illegal aliens.

Senate Continues Exploring UI Scenarios, House Begins Work
Senate Labor, Commerce and Industry (LCI) subcommittee meetings were held again this week as the Senate continued discussions on the new unemployment insurance (UI) tax rate structure. Senator Kevin Bryant (Anderson) chairs the LCI subcommittee.

Several new scenarios were examined this week, but a new “Scenario 15,” which was proposed by the South Carolina Association of Personnel and Staffing, received the most discussion and was ultimately adopted by the subcommittee. The South Carolina Chamber of Commerce met with the National Federation of Independent Business (NFIB), South Carolina Manufacturers Alliance (SCMA) and the South Carolina Farm Bureau to discuss possible support of the staffing industry’s “Scenario 15.”

“Scenario 15” extends repayment of the more than $900 million debt to the federal government to 2016, one year later than the plan the General Assembly passed last year. This extension would result in higher interest costs and leave the UI Trust Fund balance at zero in 2016 rather than with a $200 million surplus under the current rate structure. Therefore, the UI Trust Fund will essentially be in the same state the General Assembly found it in at the beginning of the last recession.

“Scenario 15” would provide savings of roughly $146 million immediately to Rate Classes 13-20, those who used the system the most, in the form of reduced rates for 2011 and 2012, nearly a 20 percent reduction. A surcharge would be placed on Classes 13-20 to cover the increased FUTA costs for all rate classes, including holding Rate Classes 1-12 harmless.

The South Carolina Department of Employment and Workforce (DEW) did express two main concerns to “Scenario 15.” The primary concern is that recessions typically occur every seven years on average. If “Scenario 15” is adopted, the UI Trust Fund would have no surplus heading into the next likely recession. The other concern expressed by the DEW is the difficulty of accurately counting employees in each rate class, making it tough to calculate the surcharges on Classes 13-20 in order to hold Classes 1-12 harmless.

The staffing industry is now pushing for “Scenario 12,” which would reduce their rates by as much as 40 percent, but force the state to borrow nearly $250 million more from the federal government. Rates would then spike for all rate classes in 2016, right around the time the next recession is anticipated.

The Senate LCI subcommittee continues to examine reforms that reduce benefit payouts, including a provision disqualifying anyone who fails a drug test or does not show up for a DEW coordinated interview matching his or her skill sets. The South Carolina Chamber supports both of these reform efforts.

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First time for everything:
Thumbs Up: To Senators Greg Ryberg (Aiken) and Kevin Bryant (Anderson), who are holding multiple hearings each week and showing great patience and willingness to work with employers impacted by high unemployment insurance tax bills.

Thumbs Up: To the 12 senators who want to see tort reform advance this year: Senators Thomas Alexander (Oconee), Kevin Bryant (Anderson), Ronnie Cromer (Newberry), Mike Fair (Greenville), Larry Grooms (Berkeley), Wes Hayes (York), Larry Martin (Pickens), Shane Martin (Spartanburg), Shane Massey (Edgefield), Harvey Peeler (Cherokee), Mike Rose (Dorchester) and Greg Ryberg (Aiken).

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As you know, the Labor Commerce & Industry Committee has been looking at adjustments to the unemployment rates for a few weeks. After six subcommittee meetings and 18 proposals, we finally found a plan that may, and I stress may, garner enough support.

On Thursday, March 3, The LCI subcommittee adopted a plan, commonly referred to as plan 15, that was authored by representatives from the staffing industry to cut the top rates by 18% and extend the loan repayments. I hope that we will be able to move forward and produce relief as soon as possible.

There is one negative aspect in plan 15, however, that gives me concern as to if the General Assembly will support it. Plan 15 extends the debt repayment a full year. This extension leaves us in a very vulnerable situation in 2016. History tells us that the economy usually sees a downturn every 7 years. Many of my colleagues are hesitant to support plan 15 because of this vulnerability, so its adoption is questionable.