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COLUMBIA, SC (February 24, 2010) - The Senate passed ESC reform today! This is a start to make this agency more accountable by making it a cabinet agency.
Senate-passed legislation:
1. Department of Employment and Workforce
a. Combines the functions of Employment Security Commission and Workforce Investment Act program within the executive branch
2. Appellate Panel
a. Existing ESC Commissioners make up the initial Appellate Panel
b. Effective with this act, current commissioners’ terms end and remain in holdover status until successors are elected
c. The current commissioners may run again
d. Panel members receive screening and election by General Assembly
e. Terms are four years
f. Qualifications for panel members are established
g. General Assembly members must sit out 2 years
3. Executive Director
a. Interim appointment made by the Governor upon advice and consent of Senate -- serves until March 31, 2011
b. Going forward must be screened and found qualified by the Department of Employment and Workforce Review Committee
c. Governor selects from qualified applicants a name to be sent back to the Senate for advice and consent
d. Qualifications for director are established
e. Serves coterminous with the Governor
f. May be removed at the discretion of the Governor
4. Review Committee
a. 9-member committee (3 members of the Senate appointed by President Pro Tempore, 3 members of the House appointed by Speaker, 3 appointed by Governor from the public at-large)
b. One member must represent the minority party of the House and one member must represent the minority party of the Senate
c. Is responsible for screening and qualifying applicants for the position of Executive Director
d. Must conduct an annual review of both the director and the department and submit a report to the General Assembly
e. Review and approve proposals of the department
5. Changes to existing operations
a. All ESC employees transferred to new department
b. Executive director, assistant directors, and area directors are exempt from grievance process
c. Department must report monthly progress to House W&M and Senate LCI Chairmen for 2010 and 2011
d. Annual assessment must contain clear analysis of the department and Trust Fund
e. Department must increase investigations into fraud, ineligibility, and other violations and enforce penalties
f. Must develop an integrated computer system to improve system efficiency, data sharing and interagency coordination
g. Establishes minimum standards for appeals process
h. Department of Insurance may examine and audit ESC as it does any other insurance agency in SC
6. Changes to benefits
a. Temporary workers must return to temp agency to seek work and be denied before becoming eligible for benefits
b. Employers may prepay their contributions to the Trust Fund
c. Eliminates state unemployment benefits for anyone fired for gross misconduct (defines “gross misconduct”)
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