The Senate
On the Floor: The Senate finished their work on S. 52, the DUI reform bill, with third reading wrapping up on Thursday. Also of note, the body quickly and unanimously passed an interesting joint resolution
(S. 880). The resolution states that if a member of the General Assembly submits their resignation prior to March 1, 2026, the special election to fill their vacancy will run concurrently with the candidacy filing and election schedule for the 2026 election for the members of the House of Representatives. This led many to ask the obvious question of who is resigning? Senator Wes Climer (R-York) answered that question over the weekend in a long social media post. Climer has already announced that he is running for the Fifth Congressional District seat being vacated by Ralph Norman, who is running for Governor.

Moving ahead, the Senate is expected to turn its focus to income tax reform and charter schools.

Committee Work:
DOT Reform
A Senate Transportation subcommittee met again this week to continue discussions on their version of the SC DOT Modernization bill, S. 831. No action was taken this week, and the subcommittee plans to continue to meet.

Data Centers
Data centers became a topic of contention during the Energy Modernization Debates, and is expected to remain a top priority for the body this year. A Senate Agriculture and Natural Resources Committee subcommittee held the first meeting on (S. 867), a bill that would establish a statewide framework for the siting, permitting, and regulation of data centers, including new infrastructure, energy, and environmental requirements, and tax incentive provisions.

Regulatory Reform
A Senate Judiciary Committee subcommittee took additional testimony on a bill (H. 3021) that seeks to reduce regulatory burdens on job creators by requiring agencies to eliminate two regulations for every new one proposed, ending judicial deference to state agencies in legal disputes, establishing a regulatory “shot clock,” and implementing other reforms.

Pharmacy Reimbursement Mandates
On Thursday, a Senate Banking & Insurance Committee subcommittee held a hearing on a bill (S. 342) that would set minimum reimbursement rates for how pharmacy benefit managers (PBMs) pay pharmacies and pharmacists for dispensing prescription drugs or performing pharmacy services, ultimately leading to increased prices for payers. The bill was carried over.

Confirmation Hearings
A Senate Judiciary Subcommittee, chaired by Sen. Jason Elliott (R-Greenville) gave a 5-0 confirmation to Cindy Crick to be the 13th Circuit Solicitor (Greenville and Pickens counties). The confirmation now goes to the full Judiciary Committee in the next couple of weeks. She has been serving in an acting role as solicitor since Gov. McMaster appointed her last August.

The House
On the Floor: The House spent significant time on the floor this week working through a bill that would limit access to abortion medication, ultimately passing the bill Wednesday afternoon. They also spent most of the afternoon and evening working through legislation that would regulate and ban hemp-derived products. The bill to regulate ultimately failed, resulting in a loss for House Republican Leadership with members of the Freedom Caucus and Democratic Party working together to send the bill back to the House Judiciary Committee. 
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Committee Work:
House Ways & Means Committee:
Budget subcommittees continued to meet in a race to finish the budget. On Tuesday, the full House Ways and Means committee advanced the “State of South Carolina Small Business Tax Cut of 2026” (H. 5006). The bill exempts the first $10,000 of a small business’s personal property taxes and excludes the first $50,000,000 of equity contributions from the corporate license fee taxes. The committee also advanced legislation linking the duration of unemployment benefits to the statewide unemployment rate (H. 3477). The approach is intended to encourage faster re-employment during periods of low unemployment, help address workforce shortages, and reduce unemployment insurance taxes.

House Judiciary Committee:
A House Judiciary committee advanced two pieces of legislation that would impact judicial selection and appointments this week. The first, H. 4755, aims to reduce legislative influence over the Judicial Merit Selection Committee. The second, H. 3530, modifies magistrate selection and qualifications, including the requirement of a juris doctorate and to be in good standing with the South Carolina Bar. This has been a key sticking point for the business community for a long time, since so much business litigation goes through the magistrates.

Additionally, a judiciary subcommittee took testimony on several bills that deal with businesses’ ability to deliver beer, wine and liquor either curbside or to a home. The practice was allowed during the COVID-19 pandemic and retailers and restaurateurs say it will give increased flexibility to their customers. The subcommittee will meet to take additional testimony next week.

DOT Reform
The House Ways & Means Revenue Policy Subcommittee met this week to take testimony from DOT on H. 5071, their version of the DOT Reform bill. Chairman Bannister indicated that the committee will be continuing to meet to take testimony on the bill before taking time for amendments. The subcommittee is scheduled to meet again on Wednesday.

Notable Bill Introductions
S. 878 (Industrial Retail Choice) – Creates a framework allowing certain large electricity customers to procure power from third-party suppliers, subject to transmission, cost-allocation, and regulatory requirements.
H. 5122 (Broadband Equipment Sales Tax Exemption) – Creates a sales tax exemption for certain equipment, supplies, and machinery sold to internet access service providers and communications service providers for use in producing or distributing internet and communications services.

Looking Ahead
The Senate
The Senate is expected to take up Charter school regulation language and the Income Tax Reduction bill on the floor next week. Senate Finance Subcommittees will begin meeting in preparation for the budget and testimony will also continue on the DOT Reform bill.

The House
The House is expected to take up the Small Business Tax Cut Bill, as well as the Unemployment Benefit Indexing Bill next week. Judicial Merit Selection Reform will also be on the calendar. Budget subcommittees will hold their final meetings in preparation for the budget, which is still slated to be in the full Ways & Means Committee next week. Subcommittees will continue to meet to take testimony on the DOT reform bill and alcohol curbside pick up and delivery bills.

Last week was a slightly less busy week as the General Assembly took a day off because of the winter weather and the Senate and House assembled Wednesday evening to hear Governor McMaster’s final State of the State Address.
 
The Politics
State of the State: Governor McMaster largely took a victory lap in his final State of the State Address Wednesday evening, talking about the economic investments during his term, the policy achievements, and a history lesson as we head into the 250th Anniversary of the United States.
 
Of note from the speech:

• The Governor continued to beat the drum of infrastructure improvements.
• He said if a full income tax cut made it to his desk, he would sign it.
• Called for more funding for universal 4K across the state and more scholarships for college students attending our technical colleges.
• He recommended that the state pay for an outside analysis of growth and what will be needed to keep up. The Census Bureau said this week that South Carolina was the nation’s fastest-growing state.

McMaster, the longest-serving governor in state history, is term-limited, but he got two extra years when he ascended to the governor’s office following President Trump’s appointment of then-Gov. Nikki Haley to be the US Ambassador to the United Nations. Governor McMaster’s term will end in January 2027.
 
The Senate
On the Floor:
The Senate continued their work on S.52, the DUI reform bill, with debate lasting into the day on Thursday. Since the bill was set for special order, the body did not debate any additional significant legislation during this short week.
 
Committee Work:
Committee work in the Senate was lighter than past weeks, given Tuesday’s cancelled session and the State of the State address. Of interest was the Senate Transportation Committee meeting on Thursday, discussing DOT modernization.
 
DOT Reform
A Senate Transportation subcommittee met this week to continue discussions on their version of the SC DOT Modernization bill, S.831. This week’s meeting focused on housing affordability, congestion, and a proposed increase to the electric vehicle fee. Another hearing is set for next Wednesday, with the subcommittee chairman emphasizing this week that the committee would move slowly through the various sections of the bill before taking up any amendments.

The House
On the Floor:
The House spent the majority of their time on the floor this week debating H.4756, the Student Personal Privacy bill. While debate looked like it could go well into the night on Wednesday, the break for the State of the State address gave time for a compromise to be reached, and debate to conclude on Thursday. The bill passed on a party line vote and is headed to the Senate.

The House also spent time clearing remaining bills off of the calendar, recommitting several bills back to their respective committees, including legislation that would pave the way for the first casino in South Carolina.
 
Committee Work:
The House continued to hold numerous Ways & Means budget subcommittee meetings in preparation for the budget.
 
Business Personal Property Tax:
On Thursday, a House Ways and Means subcommittee advanced the “State of South Carolina Small Business Tax Cut of 2026” (H.5006). The bill exempts the first $10,000 of a small business’s personal property taxes and excludes the first $50,000,000 of equity contributions from the corporate license fee taxes. The bill is headed to the full Ways & Means Committee on Tuesday.
 
Maximum Unemployment Benefits:
The same House Ways and Means subcommittee advanced legislation linking the duration of unemployment benefits to the statewide unemployment rate (H.3477). The approach is intended to encourage faster re-employment during periods of low unemployment, help address workforce shortages, and reduce unemployment insurance taxes. The bill now heads to the full Ways and Means Committee. Similar legislation has passed the House in prior sessions but has stalled in the Senate.
 
Judicial Reform:
A House Judiciary subcommittee advanced two pieces of legislation that would impact judicial selection and appointments this week. The first, H.4755, aims to reduce legislative influence over the Judicial Merit Selection Committee. The second, H.3530, modifies magistrate selection and qualifications, including the requirement of a juris doctorate and to be in good standing with the South Carolina Bar. Both bills are headed to the full Judiciary Committee next week.
 
Notable Bill Introductions

H.5071 - DOT Modernization - The House’s version of the SCDOT Modernization bill that seeks to streamline the delivery of infrastructure projects across South Carolina by shifting certain federal environmental review duties to the DOT, modernizing its procurement process, giving more authority to the DOT and its Secretary, and establishing a Coordinating Council for Transportation & Mobility, among other provisions. The bill would also increase transportation funding by allowing tolling and increasing the EV fee. This bill does not contain language for congestion fees or concurrency.
 
Looking Ahead
*This week’s schedule is subject to change based on this weekend’s weather forecast*

The Senate will continue to debate the DUI bill on the floor on Tuesday. We expect the income tax reform package to be the next piece of legislation debated by the body.

The House is expected to take up two GOP priority issues next week - regulation of hemp products (H.4758 and H.4759) and the ban of mail-ordered abortion inducing drugs (H.4760). The House Ways & Means Committee will continue to hold budget subcommittee hearings as they prepare for mid-February’s full committee meeting. The full House Ways & Means Committee will meet Tuesday morning  to take up the Small Business Personal Property Tax bill and the Maximum unemployment benefits bill. The full House Judiciary committee will meet Tuesday afternoon on the judicial selection bills. 

The General Assembly was at it again with another busy week! This isn’t uncommon in the second year of a two year session, as the General Assembly fights the clock. Only 48 legislative days remain for the bodies to complete their work, and of those days, both bodies will take at least one week for the budget, likely a furlough week, and perhaps a few days next week because of the weather. Not to mention the inevitable slow down that will begin once election filling for all members of the House opens on March 16. Read on for the highlights of the week.

The S.C. Senate

On the Floor:
The Senate spent most of their time on the floor focused on S.52, legislation that would overhaul South Carolina’s DUI laws. The bill was set for special order, meaning that the Senate will take up the legislation at the top of the calendar, and sets the bill for priority discussion. South Carolina’s DUI statutes and penalties were a topic of deep discussion during the lengthy lawsuit reform debates. This bill enhances the penalties and programs required of drivers convicted of DUI.

The Senate also unanimously passed two bills out of the Senate Finance Committee. The first (S.779), was a bill that would reinstate the $1,000 legislative allowance, previously revoked through a lawsuit. Second (S.769), is a continuing resolution, allowing the government to remain operating using FY 2025 funding levels. Both bills are headed to the House.

Committee Work:
Tax Relief
On Tuesday the Senate advanced two pieces of tax reduction legislation that are on the Senate Calendar for debate. First up is legislation that would modernize South Carolina’s homestead exemption amounts for seniors and retirees in our state (S.768). The bill raises the exemptable amount of property value from $50,000 to $150,000 for property owners over age 65, and who have lived in the state for at least 5 years. The committee also advanced the House’s Income Tax Reduction Bill (H.4216) without amending the bill. We expect the Senate to take these bills up before the end of February.

Regulatory Relief
On Thursday morning, a Senate Judiciary subcommittee took testimony on H.3021 and its companion bill, S.254, bills that aim to offer regulatory relief for South Carolina’s business community. The bill would require that for every new regulation proposed, an agency must remove two regulations. The bill also urges agencies to reduce their total number of regulations by 25%. The committee did not take action on the bills this week, but this issue is a priority for Senate leadership moving forward.

DOT Reform
On Thursday, the Senate began taking testimony on S.831, their version of the DOT Modernization bill (and the only bill that’s technically been filed, as the House continues to work through their drafts). The bill looks very similar to the plan outlined by the House DOT Modernization Ad Hoc Committee. Like the House version, the bill would create a coordinating council instead of DOT Commission, change internal structure and procurement processes, turn roads back to cities and counties, allow for toll roads, increases the EV fee, and creates impact fees for new developments. The Senate Transportation subcommittee will continue to meet and work through the bill section by section and take testimony from interested parties.

The S.C. House
On the Floor:
The House spent more time on the floor this week than expected by members and political watchers, spending several hours on Wednesday debating legislation that limits sales and marketing around electronic nicotine delivery systems (a.k.a. vaping). With more than 25 amendments on desk, debate was lengthy but ultimately resulted in the amended bill returning to the Senate.

Thursday’s debate was dominated by a House rules change, with two changes to the way the body operates. First was a change to the Sine Die resolution process - the resolution that determines what the legislature is allowed to (and not allowed to) return to Columbia to address after May 14. Prior to today’s debate, changes to the resolution were taken up immediately on the floor, a procedure that resulted in political antics and tied up the body in the final days in last year’s legislative session. New rules state that the resolution, and any changes made to it, must go to the House Rules Committee for approval before heading to the full body. Second up, a change to procedures that must be taken by a member when speaking on legislation at the well. If a member decides that he or she is going to accept questions from the body during their time, they must take all questions presented to them, and do not have the ability to “pick and choose” members who they believe will only ask favorable questions. The change to the rules process was passed by a vote of 104-4.

Committee Work:
Insurance Reform
A House Labor, Commerce & Industry subcommittee continued to hold hearings about the Insurance Rate Reduction and Policyholder Protection Act (H.4817) that overhauls South Carolina’s property insurance system. The bill expands duties for the SC Director of Insurance, regulates roofing and contractor practices, creates an insurance fraud division within the Department of Insurance, reforms wind, hail and coastal insurance practices, updates the South Carolina Safe Home Program for mitigation grants, updates tax practices including catastrophe savings account rules, increasing tax credit amounts for hurricane-resistant efforts, and establishes “disaster preparedness sales tax holiday.” The bill will continue to have hearings next week, and is expected to be taken up by the House in Mid-March.

Elections
A House Judiciary Subcommittee held hearings legislation that would close primaries, and require voters to register with a political party on Wednesday, but ultimately declined to take a vote on the legislation, after significant turmoil surrounding the bills.

Other Updates
The Economic Mobility and Utility Modernization Ad Hoc committee outlined the framework for the business personal property tax reform bill (H.5006) which exempts the first $10,000 of business personal property tax on property owned by a small business. The bill also includes language around franchise license fee taxes, exempting the first $50 million of certain capital stock and paid-in or capital surplus. Both pieces of this bill will help small businesses and start ups across the state. Chairman Newton said he expects the bill to have subcommittee meetings next week.

A House Judiciary Subcommittee advanced legislation (H.4755) that gives the Governor the sole authority to appoint all 12 members of the Judicial Merit Selection Commission (JMSC). The bill prohibits members of the General Assembly from serving on the committee while in office, and for two years following their departure. Eight members must also be members of the SC Bar in good standing, and no more than four members can be law enforcement professionals.

Notable Bill Introductions
● S.831 - DOT Modernization - Senate’s version of DOT reform bill
● H.5006 - State of South Carolina Small Business Tax Cut of 2026 - Exempts the first $10,000 of business personal property tax on property owned by a small business. The bill also includes language around franchise license fee taxes, exempting the first $50 million of certain capital stock and paid-in or capital surplus.