Institute for Legislative Analysis

J. Thomas McElveen III

This bill establishes the ACE scholarship program, which allows certain students to receive scholarships which may be used by parents to pay for certain educational expenses for their child, such as tuition and fees to attend a private school. The amount of the scholarship varies based on the category a student is in, which includes general child, disadvantaged child, exceptional needs child, and home school child. The general child category includes current public school students or students eligible to enroll in public prekindergarten, kindergarten, or first grade, and whose household income is up to 400% of the federal poverty guidelines. The disadvantaged child category includes children who qualify for Medicaid or who household income is up to 200% of the federal poverty guidelines. Additionally, students who receive an Education Scholarship Trust Fund (also passed by the legislature this session) are not eligible for this program. The bill also establishes a credit against income and bank taxes equal to the amount of contributions to a nonprofit scholarship funding organization. Support is the Limited Government Position as this bill improves educational outcomes for all students by fostering competition and a market in education, which encourages schools to provide the best education so they can attract parents to enroll their child and receive the associated funding.

Improving Educational Outcomes by Expanding School Choice Through the ACE Scholarship Program.

This bill requires the Department of Education to establish a pilot program allowing certain schools to hire noncertified teachers. To be eligible, a school must have received an overall rating of Excellent, Below Average, or Unsatisfactory for two consecutive years or be "located in a critical geographic area." Under the program, schools may hire noncertified teachers who hold a bachelor's or graduate degree in the position and have five years of relevant work experience. Noncertified teachers must enroll in a certification program within three years and schools are limited to hiring a ratio of noncertified teachers equal to up to 10% of its teachers. Support is the Limited Government Position as this bill helps reduce teacher shortages by providing licensing flexibility for schools to fill vacant teacher positions.

Establishing a Pilot Program which Allows Schools to Hire a Teacher who is Non-Certified if there is a Shortage and the Teacher is Otherwise Well Qualified.

This bill, the "South Carolina Commercial Property Assessed Clean Energy and Resilience Act," authorizes local governments across the state to enact C-PACE programs. Under these programs, localities may finance clean energy projects of commercial property owners, which are then repaid through an additional assessment on their property. The bill requires all financing to come from third-party capital rather than taxpayer funds. Oppose is the Limited Government Position as it is not the proper role of government to compete in the lending industry. Furthermore, the C-PACE program creates additional complications in the mortgage industry concerning lien priority and debt recovery.

Placing Taxpayer Funds at Risk by Authorizing Localities to Establish Commercial Property-Assessed Clean Energy Programs (C-PACE).

This bill reforms the state's certificate of need laws which limit the construction and expansion of healthcare and nursing homes. Under the bill, most healthcare facilities, except for hospitals and nursing homes, are no longer required to obtain a certificate of need before constructing or expanding a facility. The requirement for hospitals expires in 2027. Support is the Limited Government Position as, while the bill does increase licensing requirements on ambulatory surgery centers related to providing indigent/charity care, this measure serves as a step in the right direction to expanding access and competition within the healthcare and nursing home sector. Ultimately, this competition results in lower consumer prices and greater quality.

Expanding Competition by Eliminating Anti-Competitive "Certificate of Need" Regulations for Most Healthcare Facilities.

This motion tables (defeats) the Kimpson amendment #4 to the Omnibus Tobacco Enforcement Act of 2023, which prohibits local governments from imposing additional regulations on tobacco, vaping, and nicotine products. The Kimpson amendment prohibits the sale of any "flavored tobacco product" in the state. Previously introduced Kimpson amendment #3, which was also tabled, defined "flavored tobacco product" to include "any tobacco product that imparts a taste or odor distinguishable by an ordinary consumer, other than the taste or odor of tobacco, either prior to or during the consumption of such tobacco product" or that includes "or a cooling or numbing sensation." Support is the Limited Government Position as tobacco and nicotine usage is an individual liberty which individuals who have reached the age of majority should be able to exercise without unnecessary government restriction.

Blocking an Attempt to Ban the Sale of Flavored Tobacco Products in the State.

This motion overrides the Governor's veto of a bill which reduces financial auditing requirements for municipalities. Under the bill, municipalities with annual revenue under $500,000 are no longer required to submit annual, independent audits, but may instead provide a compilation of financial statements. Municipalities over the revenue threshold are only required to provide an audit of financial statements, as opposed to "all financial records and transactions of the municipality and any agency funded in whole by municipal funds," as was previously required. The bill also eliminates the requirement that the audit or compilation include "a review of the accounting controls over the collection, reporting, and distribution of fines and assessments from the point of collection to the point of distribution." Oppose is the Limited Government Position as this bill weakens government transparency and accountability by reducing the ability to hold local officials accountable.

Weakening Government Transparency and Accountability by Reducing the Financial Audit Requirements Municipalities Must Meet.

This bill, the "Omnibus Tobacco Enforcement Act of 2023," prohibits local governments from imposing additional regulations on tobacco, vaping, and nicotine products. This includes regulations of ingredients, flavors, or licensing related to cigarettes, vaping devices, and nicotine products. Support is the Limited Government Position as tobacco usage is an individual liberty. While some may argue this bill undermines "local control", our founding fathers only recognized three entities within the U.S. Constitution - federal government, state government, and the individual. It is not the role for any level of government to unduly infringe the rights of individuals, therefore making preemption measures, such as this bill, necessary.

Strengthening Individual Liberties by Prohibiting any Additional Local Regulations on Tobacco, Vaping, and Nicotine Products.

This bill contains several provisions related to the release of individuals charged with violent crimes and felonies involving a firearm. Most notably, the bill provides that if a person charged with a violent crime or felony involving a firearm is already out on bond for another such offense, the original bond must be revoked and a hearing held. If a new bond is granted, the full amount of the bond must be posted, rather than 10%, as is normally required. If the person is already out on bond for two such offenses, the full amount of the bond must be posted and a bond company may not be used. Additionally, the bill makes it a felony to commit a violent crime while on pretrial release for another violent crime, with judges able to impose a sentence of up to 5 years in prison either concurrently or consecutively. The bill also requires that when determining whether to grant pretrial release or conditions for release, courts must consider whether the person is already out on bond for another offense. Finally, courts are also allowed to order electronic monitoring rather than, or in addition to, bond. Support is the Limited Government Position as protecting property rights and ensuring public safety serve as essential components of government. Unfortunately, this bill is especially necessary due to many so-called criminal justice "reforms" which have led to skyrocketing crime rates and are being advanced in state legislatures by George Soros and other radical-left billionaires through their funding of advocacy organizations on both sides of the political aisle.

Strengthening Law and Order Through Changes to Pre-Trial Bail Laws for Repeat Violent Offenders and Felonies Involving Firearms.

This bill allows the sale and consumption of alcohol inside airport terminals. Businesses must hold a license for on-premises consumption in order to sell alcohol. Support is the Limited Government Position as this bill expands consumer choice and individual liberties while also generating additional sales tax revenue for taxpayers.

Expanding Individual Liberties and Tax Revenue by Allowing the Sale and Consumption of Alcohol in Airports.

This bill allows localities to use up to 15% of local accommodations tax revenue for "workforce housing, which must include programs to promote home ownership." Under the bill, this includes housing for individuals with income up to 120% of the local median income. Oppose is the Limited Government Position as this bill fuels cronyism by enriching select developers through government central planning. Instead of growing government and central planning, lawmakers should empower the free market to make housing truly "affordable" by reducing stringent zoning regulations.

Growing Cronyism and Government Central Planning by Allowing Localities to Now Utilize Tax Revenue for Workforce Housing.

This resolution authorizes up to $29.8 million in unused low income tax credits and $25 million from the South Carolina Housing Trust Fund "to provide supplemental financial support to projects" that have seen cost increases. Oppose is the Limited Government Position as this bill fuels cronyism by enriching select developers through government central planning. Instead of growing government and central planning, lawmakers should empower the free market to make housing truly "affordable" by reducing stringent zoning regulations.

Fueling Wealth Redistribution and Cronyism by Channeling Tens of Millions in Additional Taxpayer Funds to Affordable Housing Initiatives.

This section of the annual appropriations bill includes over $10.4 million in funding for the Arts Commission. Oppose is the Limited Government Position as providing funding for the arts is not a core nor necessary function of the government, rather a role of the private sector through foundations and philanthropy. The state must pursue every available avenue to rein in its out-of-control spending, which, when coupled with the over $185 trillion in federal liabilities, represents the greatest existential threat facing this country.

Fueling Out-of-Control Spending Through a $10.4 Million Appropriation to the Arts Commission.

This section of the annual appropriations bill includes over $9.2 billion in funding for the Department of Health and Human Services. Included in this amount are multiple wasteful provisions and programs including rural healthcare and health intervention programs. Oppose is the Limited Government Position as the state must pursue every available avenue to rein in its out-of-control spending, which, when coupled with the over $185 trillion in federal liabilities, represents the greatest existential threat facing this country.

Fueling Out-of-Control Spending Through a $9.2 Billion Appropriation to the Department of Health and Human Services.

This section of the annual appropriations bill includes over $259 million in funding for the Housing Finance and Development Authority. Included in this amount is over $17 million for rental assistance, over $1.2 million for housing credits, and over $5.8 million for homeownership programs including mortgage production and servicing. Oppose is the Limited Government Position as the state must pursue every available avenue to rein in its out-of-control spending, which, when coupled with the over $185 trillion in federal liabilities, represents the greatest existential threat facing this country.

Fueling Out-of-Control Spending Through a $259 Million Appropriation to the Housing Finance and Development Authority.

This section of the annual appropriations bill provides over $138.5 million to the Department of Parks, Recreation and Tourism for purposes such as tourism sales and marketing and the state film office. Oppose is the Limited Government Position as promoting tourism is not a core nor necessary function of government. The free-market and private industry - not central planning by government bureaucrats - is many times more effective in attracting visitors to the state and growing the economy. Additionally, the state must pursue every available avenue to rein in its out-of-control spending, which, when coupled with the over $185 trillion in federal liabilities, represents the greatest existential threat facing this country.

Fueling Tens of Millions in Wasteful Spending Through $138 Million in the Appropriations Bill for the Department of Parks, Recreation and Tourism.

This section of the annual appropriations bill provides over $131.2 million to the Department of Commerce for purposes such as various economic development programs. Oppose is the Limited Government Position as the free market - not central planning tax schemes by bureaucrats - is the best mechanism to direct investment to the most promising initiatives and regions of the state. Additionally, the state must pursue every available avenue to rein in its out-of-control spending, which, when coupled with the over $185 trillion in federal liabilities, represents the greatest existential threat facing this country.

Fueling Tens of Millions in Wasteful Spending Through $131.2 Million in the Appropriations Bill for the Department of Commerce.

This section of the annual appropriations bill provides over $1 million to the Jobs-Economic Development Authority, a "quasi-public instrument" with a purpose of "assisting in the  financing of public and private projects." Oppose is the Limited Government Position as it is not the role of government to engage in financial lending for private business endeavors. Additionally, the state must pursue every available avenue to rein in its out-of-control spending, which, when coupled with the over $185 trillion in federal liabilities, represents the greatest existential threat facing this country.

Fueling Out-of-Control Spending Through an Unnecessary $1 Million Appropriation to the Jobs-Economic Development Authority.

This section of the annual appropriations bill provides over $3 million to the Commission on Minority Affairs, which "identifies and examines emerging issues and trends by providing constructive solutions and approaches to support the policy and socio-economic development of ethnic minority communities." Oppose is the Limited Government Position as this entity serves as an unnecessary bureaucracy. It is the role and duty of government to treat individuals of every background equally, and taxpayers should not be forced to fund commissions for select interests. Additionally, the state must pursue every available avenue to rein in its out-of-control spending, which, when coupled with the over $185 trillion in federal liabilities, represents the greatest existential threat facing this country.

Fueling Out-of-Control Spending Through an Unnecessary $3 Million Appropriation to the Commission on Minority Affairs.

This bill, the Fiscal Year 2024 Operating Budget, represents a 12.6% increase over the prior year's budget. Some of the major spending initiatives within the bill include over $74 million in higher education scholarships, assistance, and tuition grants, $75 million for a veterinary school at Clemson University, over $35 million for tourism sales and marketing, and over $24 million for the state film office. Oppose is the Limited Government Position as the budget is chock-full of wasteful and unnecessary spending initiatives (as mentioned above) which directly violate limited government principles and far exceed the basic and necessary functions of government. For example, instead of forcing taxpayers to further subsidize things like the career paths of select individuals and woke college campuses, lawmakers could have made the state much more economically competitive by lowering the corporate tax rate. The state must pursue every available avenue to rein in its out-of-control spending, which, when coupled with the over $185 trillion in federal liabilities, represents the greatest existential threat facing this country.

Fueling Out-of-Control Spending Through a $38.8 Billion Budget (12.6% Increase) with Countless Provisions that Further Grow the Size and Scope of Government.

This bill requires anyone who provides genetic counseling services in the state to become licensed, pay a fee, hold a master's degree, and obtain a national certification. Oppose is the Limited Government Position as this bill increases unnecessary employment barriers. Ultimately, the private sector, via certifications, rating systems, and the free market, is much better equipped to provide consumer protection while also ensuring competition and low consumer costs. Most government licensing entities are overly restrictive and are largely advocated by special interests seeking to restrict competition in the marketplace.

Increasing Employment Barriers and Reducing Competition by Forcing Genetic Counselors to Obtain a License.

This bill, the "Earn and Learn Act of 2023," contains several provisions related to occupational licensing for individuals with prior criminal convictions. Most notably, the bill specifies that a person may not be denied an occupational license solely based on a prior criminal conviction "unless the criminal conviction directly relates to the duties, responsibilities, or fitness of the occupation or profession," rather than "directly relates to the profession or occupation." Licensing boards also may not use "vague or generic terms", such as "moral turpitude" or "good character" or consider charges that were dismissed, not prosecuted, or for which the person was found not guilty "as a justification for denying an applicant a license". Additionally, a licensing board may not deny a license based on a person's prior criminal conviction unless the person has the opportunity to appear for a hearing. Finally, the bill requires licensing boards to issue an initial license to individuals who complete an apprenticeship program with a "similar scope of practice" and completes the same requirements as other applicants, including any required examinations. Support is the Limited Government Position as this bill serves as a step in the right direction to reducing unnecessary employment barriers. Ultimately, the private sector, via certifications, rating systems, and the free market, is much better equipped to provide consumer protection while also ensuring competition and low consumer costs. Most government licensing entities are overly restrictive and are largely advocated by special interests seeking to restrict competition in the marketplace.

Combatting the Practices of Overzealous Government Licensing Boards by Ensuring Individuals are Not Denied a Solely for a Criminal Conviction that is Unrelated to their Profession.

This bill contains several provisions relating to contractor licensing. Under the bill, the threshold for a project requiring a licensed contractor is increased from $5,000 to $10,000. Additionally, the bill doubles the maximum project value limits for each class of contractor and mechanical contractor, allowing contractors to be able to complete larger projects. Support is the Limited Government Position as this bill expands competition and lowers consumer costs by reducing regulatory barriers.

Expanding Competition and Cutting Consumer Costs by Increasing the Threshold from $5k to $10k for a Project Needing a Contractor License.

This bill appropriates over $1.29 billion to the Department of Commerce for incentives to lure Scout Motors, an electric vehicle subsidiary of Volkswagen, to build a factory in the state. This includes over $1 billion for land acquisition, site improvements, and other uses, as well as $200 million to loan for soil stabilization. The funds for the bill will come from the state's 2021-2022 Contingency Reserve Fund and projected 2022-2023 general fund surplus. Oppose is the Limited Government Position as this cronyism benefits a single government-favored company while shifting tax burdens onto other businesses and industries not favored by government. Instead of this cronyism, lawmakers should lower tax rates for all businesses and empower the free market to expand economic growth.

Expanding Cronyism by Channeling Over $1.29 Billion in Taxpayer Funds to Enrich Electric Vehicle Manufacturer Scout Motors.

This bill, the "South Carolina Transparency and Integrity in Education Act," places restrictions on the instruction of divisive topics in public school classrooms, such as Critical Race Theory (CRT). For example, the bill prohibits instruction or usage of materials which convey that one ethnicity is inherently superior to another, or that a person is responsible for past actions of others due to their sex or race. The bill also includes specific rights for parents, such as access to curriculum, instructional, and library materials, and allows parents to contest instructional and library materials. Additionally, the bill prohibits schools from using or making available any materials or technology that includes pornography. Finally, the bill prohibits school employees or volunteers from being requiring to attend gender or sexual diversity training or counseling. Support is the Limited Government Position as the public education system should be solely utilized to promote excellence in core subject fields, such as reading, mathematics, and the sciences, as well as to prepare children for their careers. Schools should be held accountable to parents, and measures such as this bill are crucial to ensure classrooms are not weaponized to advance any political or social agendas onto children. Strong parental rights in their child's education are a critical element of a free society.

Strengthening the Integrity of the Public Education System by Prohibiting Instruction on Divisive Concepts Such as Critical Race Theory (CRT).

This bill enacts an Education Scholarship Trust Fund program, which allows up to 5,000 current public school students or students entering public kindergarten (increased to 10,000 in 2025 and 15,000 in 2026) with a household income up to 200% of the federal poverty guidelines (increased to 300% in 2025 and 400% in 2026) to receive funding for educational expenses such as tuition at a private school, textbooks, and tutoring. Support is the Limited Government Position as this bill improves educational outcomes for all students by fostering competition and a market in education, which encourages schools to provide the best education so they can attract parents to enroll their child and receive the associated funding.

J. Thomas McElveen III

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