The Senate Labor, Commerce and Industry subcommittee approved a big structural change for the Employment Security Commission on Thursday, voting to move the agency to a proposed Department of Workforce.
The restructuring bill would also move the functions of Workforce Investment Act from the Commerce Department to the proposed new department, which would be under the governor's management.
Also under the legislation, the agency's three commissioners would be reduced to hearing officers only, deciding on appeals from the department's various divisions.
The restructuring proposal has arisen in light of the state's burgeoning unemployment rates, and a trust fund normally used to cover benefits to workers, that now is broke and millions of dollars in the red.
The non-Cabinet agency currently is run by three commissioners, who hire an executive director and assistant director to operate the employment agency day to day.
But the proposed restructuring would have the governor appoint the three commissioners, with advice and
consent from the Senate, and they could be removed at the will of the governor.
Lawmakers distressed over the agency's predicament, have held weeks of public hearings, takuing sworn testimony from the commissioners in an effort to uncover functional problems at the agency and decide how to reshape the agency.
Among the changes proposed in the legislation, S.C. Businesses would be able to prepay their unemployment benefits accounts, and when an employee is separated from a job with severance pay, their unemployment benefits would be deducted from their severance pay packages.
The proposal now moves to full committee, which is expected to take it up in debate next week.