Session Week 2

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.