May 21, 2013

At least 2 SC Tea Party groups say they were singled out by IRS

The news that Internal Revenue Service employees singled out conservative Tea Party groups for intense— and sometimes inappropriate— scrutiny has gotten lots of national attention.

Various Tea Party groups gather in a 2011 rally

Various Tea Party groups gather in a 2011 rally

But it hardly surprised leaders of two such organizations in South Carolina who say they were among those receiving the extra scrutiny.

Both Laurens County Tea Party chair Diane Belsom and Myrtle Beach Tea Party chairman Joe Dugan say their groups still have not been approved or rejected for special nonprofit status, even though they submitted their filing paperwork in 2010. Both say the IRS followed up with intrusive questions, including lists of members, donors, volunteers, and positions on political issues.

The problems stemmed from the organizations filing for special 501(c) 4 status as “social welfare” groups. That designates them as nonprofits which are granted special tax privileges. In exchange, the groups are not allowed to do significant amounts of electioneering on behalf of political candidates. But IRS officials at some point began to question whether some of those C4 groups were improperly getting involved in campaigns.

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NRC: Small tritium leak identified at Catawba nuclear plant

A leak in a discharge pipe caused some contaminated water to seep into the ground at a nuclear plant in York County, according to an event report from the Nuclear Regulatory Commission.

Catawba Nuclear Station (Courtesy: NRC)

Catawba Nuclear Station (Courtesy: NRC)

The NRC says Duke Energy notified the agency that more than 100 gallons of water with traces of tritium leaked out of an underground pipe at the Catawba Nuclear Station. Tritium is a mildly-radioactive isotope of hydrogen that is not dangerous unless ingested in large amounts via food or water.

The leak has been classified as a “non-emergency event” by the NRC for now. Spokesman Roger Hannah said Duke found the contamination in the spill was 9,000 picocuries per liter (pCi/L), while the EPA drinking water standard is 20,000 pCi/L.

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Legislative Update: May 15

— As the budget debate heated up in the Senate, the state’s probation agency met resistance against its request for an extra $1.4 million, The State newspaper reports. Some legislators accuse the Department of Probation, Pardon, and Parole (PPP) of misleading them about available money on hand. PPP officials say they need the additional money to keep up with their increasing workload.

SC Treasurer Curtis Loftis speaks to reporters Tuesday

SC Treasurer Curtis Loftis speaks to reporters Tuesday

— A prominent Democratic senator joined with the State Treasurer to request that the General Assembly set aside $200,000 for victims of the Department of Revenue hack last fall. The fund would be meant for those South Carolinians who can show the theft of their personal information led to fraudulent activity in their names. Sen. Vincent Sheheen (D-Camden), who is running for governor, is asking that the fund be created by the state budget. Treasurer Curtis Loftis volunteered his office to oversee the fund.

— Meanwhile, a state senator is criticizing the Department of Revenue for how it paid its clean-up bills after last year’s hack. The Associated Press reports Sen. Shane Massey (R-Edgefield) said the Budget & Control Board was wrong to approve a $20 million loan from the state’s insurance reserves. The money was used to pay consultants, upgrade equipment, and for victims’ credit monitoring services. Massey said such spending decisions should be made by the Legislature.

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“I smell manure”: SC Senate rejects extra road funding, wants permanent plan

In a 22-21 vote, state senators on Tuesday narrowly rejected an effort to set aside an extra $70 million for repairs on South Carolina’s aging roads and bridges  instead deciding to try to create a permanent, long-term solution.

Grooms-in-Senate

Grooms wanted more money to come from existing funds.

This specific budget proposal would have taken the money out of higher-than-expected tax revenue— but the debate quickly shifted to a Senate plan that would try to raise more than that through increases in vehicle fees and tying the state’s gas tax to inflation. State Sen. Larry Grooms (R-Berkeley) wanted road money to come from existing funds.

“We’re locked in to this mentality that the only way we’re going to fund the Department of Transportation (SCDOT) is with gasoline and a diesel fuel tax and I don’t subscribe to that,” Grooms said in the Senate.

In addition to SCDOT’s normal budget request, the Senate budget includes an extra $51 million to address bridge repair and road improvements. Grooms proposed taking an additional $70 million out of higher-than-expected general fund revenues.

However, Sen. Ray Cleary (R-Georgetown) says $70 million is still nowhere close to what the Department of Transportation needs. “It might fix six miles, seven miles of highway. It’s really, as you say, a raindrop in Lake Murray,” he argued, saying that fee increases and $1.3 billion in bonds would be a more stable source of funding.

But Sen. Lee Bright (R-Spartanburg) took the podium to say lawmakers could easily fund millions of dollars in repairs by making cuts elsewhere in the budget.

He accused fellow senators of trying to make the public believe that fee increases were the only option. “My sinuses are bad and I can’t really smell the manure, but I can see it stacking up and just had to come up and confront a little bit of it. It can be put to a lot better use, but we just kind of spread it around in here and nothing really grows from it other than government,” Bright jabbed.

Sen. Joel Lourie (D-Columbia) opposed the Grooms proposal. He became upset when some Republicans accused him of wanting to raise taxes. “You really believe that, senator, that every day I wake up thinking, ‘Gosh, how can I raise taxes?’ That’s the most ridiculous thing I’ve ever heard.”

The vote came during the ongoing debate over next year’s budget. Senate leaders hope to debate increased road funding next week.

Senators consider $200k for hacking compensation fund

A prominent Democratic state senator and the South Carolina State Treasurer are calling on lawmakers to set aside $200,000 in next year’s budget into a new fund for victims of the massive hacking at the South Carolina Department of Revenue (SCDOR).

Sen. Vincent Sheheen (D-Camden) during Tuesday's news conference

Sen. Vincent Sheheen (D-Camden) during Tuesday’s news conference

Sen. Vincent Sheheen (D-Camden) and Treasurer Curtis Loftis proposed the new fund in a press briefing Tuesday. Sheheen said it’s meant to help repay any financial losses due to identity theft.

“When we have over 3 million South Carolinians who have had the most personal and private of their information stolen, they deserve to have a place to go to try and be compensated for the losses that government has caused them,” said Sheheen, who plans to run for governor next year.

South Carolina is currently spending $12 million with Experian to offer free credit monitoring for affected citizens. However, critics of the service frequently complain that it does little more than alert citizens of potential fraud. It offers little in the way of compensation.

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