Key Points for This Week
● Body adjourns in sine die sorta-kinda
● What passed, what didn’t?
● What now?

The One-Minute Drill
The Big Picture:
As of 5:00 PM on Thursday, the bodies officially adjourned sine die. Kind of. Sort of. Well. Not at all, really.
Both bodies adopted rule change legislation allowing the President of the Senate and the Speaker of the House to reconvene by June 30 to pass the budget and adopt any outstanding conference committees (if they were created before sine die). Nothing out of the ordinary there.

However, following the Senate’s rejection of the proposed sine die resolution that allowed them to return to take up Congressional redistricting, the Governor called the body back into session, which opens the entire calendar and leaves no rules for what gets taken up.

The Wrap Up
What Passed?
DOT: A conference committee adopted language around DOT modernization and reform on Tuesday. 
Unemployment/Business Tax Cuts: A Conference committee adopted the report on a bill to adjust the Unemployment Trust fund look back periods (S. 688). The bill was amended to include language from the Small Business Tax Act (H.5006) that would exempt the first $10,000 of business personal property tax, as well as exempt the first $50 million of paid-in or capital surplus capital for businesses whose corporate headquarters are in South Carolina. The adopted report included language from both bills.
Penny Sales Taxes: A bill allowing municipalities in counties to adopt their own penny sales tax (if their county does not have one) is awaiting ratification. The legislation allows municipalities to enact the same referendum process as a county would, but municipalities must use 20% of the revenue generated to reimburse taxes on residents.
Abandoned Buildings: Legislation clarifying the permitted applications of the abandoned buildings tax credits is awaiting ratification. The language is in response to a Supreme Court ruling and clarifies a property did not have to be income producing property to qualify.
Airline Economic Develpoment: For the next year, commercial service airports will be able to utilize fee-in-lieu-of-tax (FILOT) agreements as part of negotiations with airline carriers who want to make significant economic development investments in South Carolina. The agreements must be approved by the Coordinating Council for Economic Development within the Department of Commerce and meet existing requirements for FILOT agreements.
Drone Regulation: The bodies passed the S.C. Drone Regulation and Public Safety Act (4679), strengthening protections for airports as well as military installations and correctional facilities by establishing a 1,500-foot no-fly zone for drones and creating registration requirements for drone operators. 

What Didn’t?
Curbside Alcohol: The ability for retailers and restaurants to participate in the curbside pickup and delivery of alcohol has died on the senate floor again this year.
Tort Reform: The Senate did not finalize work on three bills that deal with liquor liability reform and tort reform. There was good conversation on the floor this year about the need to continue discussions on tort and lawsuit reform, and that the liquor liability reform passed last year did not go far enough.
Blue Ridge Community: A Greenville County Legislative Delegation bill, sponsored by Senator Corbin (R), that would have required single-family dwelling units in a designated area in the Blue Ridge section of the state to be built on a minimum of five acres. The bill failed on a house floor vote on Thursday.

What needs a Conference Committee?
Small Business Regulations: Small business regulatory relief (H.3021) is headed to a Conference Committee after the Senate voted to non-concur in a tie 22-22 vote. The bill has been heavily amended by both sides of the body but deals with limiting regulations. 

What Next?
Redistricting: The Governor wasted no time in calling the General Assembly back to deal with redistricting, and the House met on Friday and plans to meet on Monday and Tuesday. The Senate is expected to come back in once the House finishes to consider their maps.
Budget: The budget conference committee is expected to begin meeting the week of May 25th, with the body expected to come back to fully adopt the bill following the June 9 primary election.

Primaries for statewide seats and House members are still slated for June 9. Whether or not congressional seats will be on this ballot is still undecided, but the clock is ticking.

The Week Ahead
The House will return Monday and Tuesday. The Senate has no definitive plans, but are expected to return once the House concludes its work.

Key Points for This Week
● Three Legislative Days Remain
● House Tackles the Budget
● Redistricting steals the show

The One-Minute Drill
The Big Picture:
Just three legislative days remain. 

The House spent Wednesday afternoon debating the sine die Resolution. Normally a perfunctory resolution about what the legislature can and cannot return to Columbia to debate (budget, conference reports, vetoes). This year, thanks to a call to the GOP from President Trump on Tuesday, this year’s resolution includes the ability for the body to be called back to take on Congressional redistricting. That has kicked off a firestorm at the Statehouse.

The Senate
Senate Advances Small Business Priorities
The Senate advanced H. 5006, the “Small Business Tax Cut Act of 2026”. The bill would exempt the first $10,000 of a small business’s personal property (BPP) from county taxation, ease compliance burdens, and effectively eliminate the tax altogether for small businesses with less than $10,000. However, proponents worry the bill may be dead upon re-arrival to the House, as leadership is not thrilled with the numerous amendments tacked on by the Senate, including the contested increased homestead exemption property tax cut for Seniors. 

The Senate advanced a version of H. 3021, the “Small Business Regulatory Freedom Act,” which aims to reduce the regulatory burden on businesses in South Carolina. As amended, the bill strengthens the state’s existing regulatory review process by adding independent oversight to ensure regulations remain within statutory authority and are not outdated, while holding agencies accountable for compliance. The bill heads back to the House.

The House
House Takes Final Crack at Budget
On Wednesday, The House took their final stab at the FY2026-2027 budget. Debate was significantly shorter this time around, with the body spending just hours debating the large strike and insert amendment as well as a handful of additions.

The House version:
● Largely re-set funding levels to the House’s original line items.
● Included over $300 million in member requested funds for district specific projects.
● An increase of legislators' in-district pay to $2,500 per month, starting Dec. 1. (A stand-alone bill to do the same advanced from the House Ways & Means Committee Thursday).
● Reinstated language to offer every public school student free breakfast at no cost.
●Funds to allow the state to hire a third-party firm to help with monitoring compliance with recommendations over the AlixPartners forensic accounting report connected to the investigation into the $1.8 billion accounting error.
● Funds to require the public health department to spend up to $7.5 million to start and administer a statewide firefighter occupational health program for cancer screenings, working with the Office of the State Fire Marshal.

What did not get added to the budget?
● Any direct line item to meet the $150 million additional funds requested by Scout Motors and the Department of Commerce.
● A request by Spartanburg Republican Rep. Josiah Magnuson to suspend the state's gas tax from July 1, the start of the new fiscal year, until Aug. 1, or for 30 days. (House budget Chair Bruce Bannister, R-Greenville, said the tax generates around $80 million a month, and around 30% of the tax is also paid for by out-of-state visitors.)

The Senate did not concur with the House’s amendments, as expected, and the bill is now headed to a conference committee. Should the budget not be agreed upon by June 30, both bodies have agreed to a concurrent resolution, funding the government at FY25-26 levels. 

What Else
This week, the House also advanced:
● S. 863, legislation that would allow Technical Colleges in our state to offer Bachelors Degrees in Culinary Arts. The lack of a four-year degree program is cited as a huge workforce barrier for our state’s hospitality industry.
● S. 439, legislation that would increase the cap for the Manufacturing Property Tax exemption from $170,000 to $300,000. Based on current projections, the state is expected to exceed the cap in FY2026, creating a major recruitment and new investment challenge for South Carolina. Increasing the cap allows businesses and industry to continue to plan and invest.

The Week Ahead
The bodies should be done with committee meetings, and will spend long days debating legislation on the floor. The final week is a chaotic whirlwind, especially in the second year of a two year session, where any uncompleted work dies. 

Key Points for This Week
● Six Legislative Days Remain
● Senate Takes up Tort
● House Passes DOT Reform

The One-Minute Drill
The Big Picture:
Just six legislative days remain for the bodies to finish their work before the General Assembly ends in sine die on May 14. There is still no sine die resolution, meaning any work not completed (conference committees included) cannot be taken up after May 14. While they may pass a resolution to allow for the budget to be taken up, even that is not guaranteed. So the next two weeks will be a mad dash to complete outstanding items. Still on the agenda? Data Centers, Abortion, Redistricting, and any other topics they decide to take up could grind the body to a screeching halt.

The Senate
Senate Talks Tort Reform
The Senate spent time on the floor Wednesday evening debating two tort-related bills but ultimately took no action. Both bills were ultimately contested, ending the debates for the time being.

H.4544 seeks to close loopholes that are causing increased financial exposure to healthcare providers in medical malpractice litigation by clarifying the circumstances where non-economic damage caps do not apply and redefining the definition of “occurrence,” to treat multiple negligent acts as a single occurrence when resulting in similar harm. The bill also increases the caps under the Tort Claims Act, adjusting liability limits for claims against governmental entities in civil actions. Majority Leader Shane Massey (R-Edgefield) proposed an amendment to eliminate the caps increase, arguing that the increase impacts more than just governmental entities in the healthcare arena.

H.4000 expands alcohol licensing to performing arts and convention complexes and municipal amphitheaters and establishes server training and compliance requirements for collegiate sporting venues. Sen. Michael Johnson (R-York) proposed an amendment to reduce the mandatory minimum liquor liability insurance coverage from $1 million to $500,000 and to eliminate the liquor liability risk mitigation program established in 2025 that has not led to lower liquor liability insurance rates.

What Else?
On Tuesday afternoon, the Senate Finance Committee advanced H.5006, the “Small Business Tax Cut Act of 2026”. The bill would exempt the first $10,000 of a small business’s personal property (BPP) from county taxation, ease compliance burdens, and effectively eliminate the tax altogether for small businesses with less than $10,000 in BPP. The bill will likely be taken up on the floor next week.

The Senate Judiciary Committee advanced an amended version of H.3021, the “Small Business Regulatory Freedom Act,” which aims to reduce the regulatory burden on businesses in South Carolina. As amended, the bill strengthens the state’s existing regulatory review process by adding independent oversight to ensure regulations remain within statutory authority and are not outdated, while holding agencies accountable for compliance. The bill is now on the Senate calendar. 

The Senate Agriculture and Natural Resources Committee advanced an unamended version of this bill that would establish a framework for data center development (S.867), including creation of a Data Center Development Office within the Department of Environmental Services, along with permitting requirements, operational standards, utility oversight, noise standards, and decommissioning requirements. The bill is on the Senate floor where it has been contested.

H.4817, the Insurance Rate Reduction and Policy Holder Protection Act, advanced out of the Senate Banking and Insurance Committee. The bill aims to reduce insurance rates, combat fraud, and increase policyholder protections.

The House
DOT Reform Passes House
After dominating conversation throughout the off-session and most of the legislative session, the House passed their version of the DOT Modernization Act. The amended bill:
● Gives DOT greater ability to enter into public-private partnerships.
● Expands DOT’s tolling authority.
● Transfers National Environmental Protection Act (NEPA) authority for permitting to DOT from the Federal Highway Administration.
● Provides greater oversight over county transportation committees.
● Makes the DOT Secretary a cabinet position appointed by the Governor.
● Eliminates the DOT Commission.
The bill is now likely headed to a conference committee.

What Else
This week, the House largely worked to remove House bills from the Calendar, and moved several Senate bills through the committee process.
● On the floor, the House passed Admissions Tax Exemptions (H.3371), a bill that exempts local chambers of commerce from the admissions tax. The bill now heads to the Senate.
● The House Ways & Means Committee advanced S.866, the Municipal Tax Relief Act, which allows certain municipalities to hold a ballot referendum to enact their own penny sales tax. The municipalities must be wholly or partially located in a county that does not currently have a penny sales tax for any purpose. The municipality is required to use 20% of their tax earnings to offset millage for residents, and the penny must run through the same referendum process as a county penny. The bill is headed to the House floor.

The Week Ahead
In the Senate:
● We will likely see the last committee meetings (subs and full) in the Senate this week, with a to-be-announced-agenda full Senate Finance Committee meeting occurring Tuesday afternoon.
● On the floor, the body is expected to take up the Small Business Tax Cut Act, as well as work through more of their expansive calendar.

In the House:
● We will likely see the last committee meetings (subs and full) in the House this week.
● The House will continue to work through their calendar, largely focusing on Senate Bills that have made crossover.

Key Points for This Week
● Senate Advances Budget
● Tort Bills Head to Senate Floor
● House delays DOT debate

The One-Minute Drill
The Big Picture: After working well into the evening Thursday, the Senate has officially adopted their version of the FY 2026-2027 budget. Highlights include:
● $309 million to cut the state income tax from 6% to 5.21%. The Income Tax Reform bill (H.4216/Act 110) has been signed into law by Governor Henry McMaster.
● $248 million to fund the Senate-passed Homestead Exemption increase (S.768).
● $200 million to the County Transportation Committees (CTCs) for road work.
● $190 million to the Department of Transportation (DOT) for bridge repairs, with $50 million in recurring funds.
● $150 million to increase teacher pay and raise the minimum starting salary to $50,500. 
● $95 million in technical college scholarships for critical-needs jobs via SCWINS.
● $12.5 million to DOT for a program to transfer state roads to county control.
● $6 million for statewide water and sewer projects.
● $1.5 million to the Department of Environmental Services (DES) to develop an artificial intelligence (AI) pilot program to make environmental permitting more efficient.
● A proviso establishing a Transportation Economic Development Fund that can be used for road improvement, construction, or right-of-way acquisition to recruit or retain high impact economic development projects or expansions.

Much of the Senate’s budget debate centered on proposed provisos, temporary one-year policy provisions tied to state funding. Notable provisos adopted this week include:
● Suspending the mandatory minimum liquor liability insurance coverage requirement for bars and restaurants (more below).
● Requiring the Department of Revenue to report the total amount of the data center sales tax exemption and the number of entities claiming the exemption annually.
● Requiring data centers to report monthly volume of surface, ground or other water used in the previous calendar year and its anticipated water use.
● Transferring $35 million from the Coordinating Council for Economic Development to the Department of Agriculture for agricultural relief.

The bill is now headed back to the House, where budget writers will have their final chance to amend the budget through what is essentially a second House budget – “H2.” When the body will take up the final version of the budget, or work through the conference committee process is still up in the air. A sine die agreement still has not passed the House, but under the proposed bill, the budget process must be concluded by June 30. It’s highly unlikely that the budget will be completed before the primaries on June 9.

The Senate
Tort Bills Head to the Floor
Following the nearly two-hour discussion and adoption of Majority Leader Shane Massey’s (R-Edgefield) proviso suspending the mandatory minimum liquor liability insurance coverage requirement for bars and restaurants (during which lawmakers discussed the continued need to improve South Carolina’s legal climate) the Senate recalled three tort-related bills from the Judiciary Committee to the Senate floor.
● H.4544 seeks to close loopholes that are causing increased financial exposure to healthcare providers in medical malpractice litigation. The bill also increases the caps under the Tort Claims Act, adjusting liability limits for claims against governmental entities in civil actions.
● H.4670 codifies clear guidelines that must be met when making time-limited settlement demands in tort claims and implements a 30-day period by which insurance carriers can tender policy limits and avoid being charged with bad faith.
● H.4000 expands alcohol licensing to performing arts and convention complexes and municipal amphitheaters and establishes server training and compliance requirements for collegiate sporting venues. Political watchers see this bill as a vehicle for broader amendments to South Carolina’s alcohol liability framework.

What Else?
The Senate Medical Affairs Committee advanced another piece of legislation with sweeping abortion restrictions. This bill because this issue has the distinct possibility of shutting down work in the chamber for the next 9 legislative days.

The House
DOT Reform Debate Delayed
The House delayed its debate on the sweeping DOT reform bill, instead taking up Senate amendments to legislation that would regulate the sale and distribution of hemp-derived beverages. After multiple failed attempts to amend the bill or kill it for the year, the House agreed to a proposal by Rep. John McCravy (R-Greenwood) that completely bans the sale or consumption of hemp-derived products tied to definitions tucked into a federal funding bill passed in November to reopen the government. Then, after more rounds of amendments were voted down, the House eventually agreed to add back the core of the original bill, a ban on the products to anyone under age 21. So, the House bill bans the products outright, but also bans the possession and use of the products by anyone under 21. Confused? There's a reason why.

"We weren’t making law today. We were posturing to go to conference," House Judiciary Chairman Weston Newton (R-Beaufort) told reporters after the House adjourned. "Somewhere, perhaps in the middle is where we find that acceptable regulatory structure through the conference committee process."

The bill now goes back over to the Senate, which is expected to reject the House changes and send the legislation to a committee of three House and three Senate lawmakers to negotiate a compromise between the two versions. 
​
What Else
This week, the House largely worked to remove House bills from the Calendar, and moved several Senate bills through the committee process.

● On the floor, the House passed H.3408, a bill that, as amended, would prohibit foreign adversarial nations, as defined by the U.S. Secretary of Commerce, from acquiring any agricultural land in the state on or after July 1, 2026. The bill was referred to the Senate Judiciary Committee.
● On Thursday, the House Ways & Means Committee Advanced two bills that will be beneficial to workforce and economic development. The Committee advanced legislation that would allow technical colleges to offer a bachelor’s degree in Culinary Arts (S.863) - a program unavailable in our state. The hope is this offering will allow talent to stay in state. The Committee also advanced S.853, a bill that clarifies eligibility rules for the Abandoned Buildings tax credits in response to a S.C. Department of Revenue (DOR) ruling released earlier this year. Both bills are headed to the House floor.

The Week Ahead
In the Senate:
● The Senate is expected to take up the Tort Reform bills mentioned above, and likely begin work on their sweeping data center bills.
● A Senate Banking and Insurance Subcommittee will meet again on the “Insurance Rate Reduction and Policyholder Protection Act” (H.4817), followed by a full committee meeting on Wednesday.

In the House:
● The House is expected to tackle the DOT Reform Debate next week on the floor.
● House committees will continue to work to prepare for the last three weeks of session.

There are three weeks left in the legislative session, giving us just nine days to the end of session. The next three weeks will be a whirlwind of activity as legislators race to complete agenda items for the year.

Key Points for This Week
● Income Tax Bill Signed
● Senate Expands Monument Protections
● House begins DOT debate

The One-Minute Drill
The Big Picture: The Income Tax Reduction Act is officially law. Gov. Henry McMaster joined state leaders on Tax Day to hail the passage of H. 4216, The Income Tax Reduction Act, lowering the top income tax rate down to 5.21%, a cut from 6%.

Starting in the next tax filing year, the law also raises the income tax rate to 1.99% for anyone earning less than $30,000. Eventually, the tax would flatten to 1.99% for everyone, then phase out completely if the state brings in enough revenue year after year.

For years, South Carolina has had one of the highest income tax rates in the Southeast, putting us at a competitive disadvantage when it comes to business recruitment. 

The Senate
Monuments
After several days of debate, The Senate voted to expand protections under a portion of state law commonly called the Heritage Act to all memorials on public property in South Carolina. The legislation also would stop the use of digital codes or informational plaques placed near some monuments in recent years offering broader context on the thorny parts of history. Private groups could sue to enforce the measure, allowing a judge to order restitution.

What Else?
An insurance subcommittee of the Banking and Insurance Committee met to discuss H.4817, The Insurance Rate Reduction Act, which deals with insurance fraud oversight, and penalties for violations of policyholder protections. No action was taken and the bill is scheduled for an additional subcommittee.

The House
DOT Reform Debate Begins
The House began its debate of the sweeping DOT reform working through a few amendments before the bills were placed on the contested calendar. 

Committee Work & Clearing the Calendar
The major priority of the House this week was advancing House bills with the limited time on the calendar. Of note:
● H.3408 Advanced out of the House Judiciary Committee that restricts foreign ownership of agricultural land and property near sensitive military and infrastructure sites.
● The “Truth in Labeling Bill” (H.4248) passed the House unanimously. This bill is a direct response to the news stories last summer of non-local shrimp being marketed as such. The legislation requires clear country-of-origin labeling, preventing imported seafood from being passed off as local.

The Week Ahead
In the Senate:
● The Senate will spend the majority of next week debating the budget, going in to session on Tuesday at “high noon.” Senate Majority Leader also expects the body to work through a “chunk” of confirmation votes on Tuesday as well.
● Additionally, the Senate Medical Affairs Committee will meet on Tuesday at 9AM to continue debate on the newest Abortion Restriction bill. The outcome of this bill will be crucial - if it passes, there’s a good chance the legislation blocks up the calendar for the remaining nine days of Session following the budget.

In the House:
● The House is expected to continue work on the DOT bill next week.
● A House Ways & Means general government subcommittee will meet on Tuesday afternoon to discuss the sine die Agreement, legislation that keeps the legislature from getting called back into the session by the governor and dictates on what terms the legislature can return to Columbia after May 14. Typically, that includes the budget, any conference committee reports and the governor's vetoes. The bill could become the subject of chamber infighting as various factions attempt to add particular legislation of their choice to it.
​
There are four weeks left in the legislative session, giving us 12 days to the end of session. The next two weeks will be a sprint. 

Key Points for This Week
● Senate Rejects Tax Conformity
● House Advances Insurance Reform
● 18 Legislative Days Remain

The One-Minute Drill
The Big Picture: Four of the seven Republican Gubernatorial Candidates participated in the first GOP debate Wednesday. Senator Josh Kimbrell, Congresswoman Nancy Mace, Congressman Ralph Norman and Attorney General Alan Wilson engaged in a surprisingly civil debate. Questions included gambling, government spending, and tax cuts.

The Senate
Tax Conformity
In a bi-partisan vote, the Senate on Wednesday voted 27-16 to kill legislation that would change the state’s tax code to match federal tax law under President Trump’s “One Big Beautiful Bill.” The Senate’s decision defied both the House of Representatives unanimous vote and the urging of Governor McMaster. Opponents, including Senate Majority Leader Shane Massey (R-Edgefield), said the vote reflects letting South Carolina decide its own tax policy, He also said conformity undercuts tax cutting efforts, including those in the large scale income tax reduction bill, which would decouple our state tax code from the feds.

The Senate can still take up parliamentary procedures to reconsider the vote, and the House can continue to try to tack conformity language onto Senate bills residing in the House chamber. 

What Else?
By a vote of 32-9, the Municipal Tax Relief Bill received second reading in the Senate on Wednesday. The bill was amended and allows municipalities located in a county that has not enacted a sales and use tax to hold a referendum vote on a municipality-specific penny sales tax. The money is to be used for property tax relief (20%) and then other municipal infrastructure such as roads, bridges, other city facilities, civic centers, or police and fire stations. The referendum process is just like the county referendums and be held during a general election after 2026.

In a unanimous vote on Wednesday, the Senate approved legislation that will allow our technical colleges to offer four-year bachelors degrees in Culinary Arts Management. Across the state, the hospitality and tourism community has growing concerns for their workforce - this legislation will allow students to achieve four-year degrees and be better prepared to enter the culinary industry.

The House
House Passes Property & Casualty Insurance Reform
In a 96-7 vote, the House passed an expansive Property & Casualty Insurance Reform bill, the product of the Insurance Rate Reform ad hoc committee chaired this offsession by Representative Gary Brewer (R-Charleston). The bill increases oversight over insurance fraud, creates penalties for violations of policyholder protection.

What Else?
The House spent a significant amount of time Wednesday debating H.4764, legislation that requires all law enforcement agencies in the state that operate jails or detention centers to enter into cooperation agreements with federal Immigration and Customs Enforcement (ICE) operations. The bill quickly turned contentious and sparked hours of party-line debate over cost, safety and fears that national stories about the agency could come to fruition in South Carolina. The bill is headed to the Senate.

On Wednesday, the House also passed legislation that would increase penalties for people who hurt or harass police dogs and horses. The bill ultimately passed by a 106-2 vote, and is headed to the Senate.

In Committees
Foreign Ownership of Real Estate - H.3408
A House Judiciary Subcommittee amended and advanced a bill that would prohibit federally-defined foreign adversaries from owning, leasing, possessing or exercise any control over farm land in South Carolina.

DOT Reform - S.831/H.5071
The House Ways & Means Committee advanced the sweeping DOT Reform legislation Thursday morning. The House and Senate bill now include the same language that was originally in the Senate bill with their working language. 
​
The Week Ahead
In the Senate:
● The Senate will meet in perfunctory session next week, with no floor time, and limited committee meetings. The Senate Finance Committee will meet to outline their version of the 2026-2027 budget.

In the House:
● The House will be on Spring Break Round Two next week. They’ll return on April 14.

While there is no crossover deadline in the General Assembly, both bodies are nearing the point of the year in which they will unofficially only begin to consider legislation that has only passed one body, and many committees are expected to only have one to two more full committee meetings for the year. It will be a sprint after next week to get bills out of committees in what we expect to be about a two-week window.

Key Points for This Week
● Income Tax Reform Heads to Governor’s Desk
● Senate Amends, Passes School Bathroom Bill
● House Passes Limited Lawsuit Reform Measures

The One-Minute Drill
The Big Picture: On Wednesday, Senate President Thomas Alexander (R-Oconee) and House Speaker Murrell Smith (R-Sumter), ratified acts – a formal proceeding after a bill has passed both chambers. This week, that included H.4216, the income tax reduction bill, which is a major change in tax policy in this state. The bill now officially heads to Gov. Henry McMaster’s desk.

The Senate
School Bathroom Use Bill Passes
In a sweeping bipartisan vote of 33-2, the Senate advanced H.4756, legislation that would restrict bathroom, locker, and changing room use at public K-12 schools, colleges and universities to that which corresponds to a person’s biological sex at birth. The bill codifies language that already exists in state law under a budget proviso, but expands the application to colleges and universities and adds a private cause of action for violations. The bill was slightly amended by the Senate, so it will head back to the House to see if the body concurs in their amendments.

What Else?
The Senate advanced H.4763, the HALO bill, by a unanimous vote on Thursday. The bill prevents individuals from “approaching, impeding, causing harm to, or harassing” a first responder or emergency medical care provider. The Senate slightly amended the House version of the bill by removing the 25 foot perimeter. The bill was a Republican Caucus Agenda item in both bodies.

The House
House Passes Limited Lawsuit Reform Measures
While the House was expected to take up the Insurance Rate Reduction Act, the body instead tackled two pieces debated by the Judiciary Committee that limit lawsuit abilities in South Carolina. H.4760 deals with time-limited demands for settlements, setting a minimum amount of time of thirty days for an insured to respond. Representative Jay Jordan (R-Florence) who chaired the bill’s subcommittee said it’s to ensure bad actors can’t create artificial deadlines without guidelines and drag parties into bad faith claims. H.4544, medical malpractice legislation, modifies situations in medical malpractice cases where noneconomic damage caps do not apply, and adds a limit of 8x the current limitations on noneconomic damages to those situations. The bill also tweaks the definition of “occurrence.” Rep. Jay Jordan (R-Florence) said the bill aims to protect payments to ensure fair and timely compensation while preventing"excessive and unpredictable” lawsuits that can drive up healthcare costs.

Both bills passed the House unanimously and are headed to the Senate.

What Else?
The House voted unanimously to concur in Senate amendments to H.3858, a boat tax reduction bill, that would cut the property taxes paid on boats registered in SC by nearly half. The reduction would phased in over three years, and eliminate the requirement for owners to title an outboard motor. An updated fiscal impact study indicates that the cut will cut property tax revenue by nearly $40 million at the end of implementation.

The House voted to override Governor McMaster’s veto of H.4902, the name, image and likeness bill that would shield NIL contracts between colleges/universities and student athletes. The Senate is expected to take up the override next week.

In Committees
Bachelor’s Degree in Culinary Arts - H.5177/S.863
A House Ways & Means Subcommittee and a Senate Education Committee advanced pieces of legislation that would allow technical colleges to expand their culinary programs to bachelor’s degree programs. The House limits that ability to Trident Technical College only, while the Senate opens it up to all Technical Colleges.

DOT Reform - S.831/H.5071
A House Ways & Means Subcommittee advanced the sweeping DOT Reform legislation Thursday morning. The House replaced the language in the Senate bill with their working language.

Abandoned Buildings Tax Credit - S.853
A House Ways & Means Subcommittee advanced language that would clarify language on property types eligible for the Abandoned Buildings Tax Credit. The bill is headed to the full committee.

The Week Ahead
In the Senate:
● Floor Watch: The Senate is working on clearing their calendar before the budget, so we expect them to continue clearing smaller bills. Senators are hoping to get to the Municipal Penny Sales Tax legislation.
● Committees: Senate Finance subcommittees will wrap up their work on the state budget. Senate subcommittees will continue their work on data center regulation.

In the House:
● Floor Watch: The House did not take up H.4817, the Insurance Rate Reduction Act, this week as was expected. We assume the body will take up this legislation next week before furlough.
● Committees: The House will continue to work through committees to prep for floor debate following their second furlough week (the week of April 6). A Senate Judiciary Subcommittee will take up H.3408, legislation that would prohibit a business whos’ principal place of business is located in a U.S. declared foreign adversary (the People’s Republic of China, the Chinese Communist Party, the Russian Federation, Iran or North Korea), from owning, leasing, possessing or exercising control over any real estate in South Carolina.

Candidate Filing
Candidate filing remains open until Monday, March 30 at noon. 

Key Points for This Week
● DOT Reform Advances
● Hemp Consumables Legislation Advances
● Candidate Filing Opens

The One-Minute Drill
The Big Picture: The Senate passed its version of the sweeping DOT reform bill on Thursday, sandwiched between hours of lengthy debates over the Hemp Consumables Regulations bill.

1. Senate Advances Sweeping DOT Reform
The News: On Thursday, the Senate gave third reading to their sweeping DOT Reform Bill (S. 831), without adopting any of the previously carried over amendments.

● The Details:
○ Gives DOT greater ability to enter into public-private partnerships.
○ Expands DOT’s tolling authority.
○ Transfers National Environmental Protection Act (NEPA) authority for permitting to DOT from the Federal Highway Administration.
○ Allows counties and cities to take ownership of roads from the state.
○ Provides greater oversight over county transportation committees.

What’s Not Included: The Senate did not include language to make the DOT a cabinet agency under the governor. Several funding components of the bill were also removed, including an electric vehicle registration fee increase, electric car charging fee increases and mitigation fees for new housing developments.

What’s Next: The bill is headed to the House. If it follows the pattern the House established with their version of the DOT Reform bill, it will be referred to the Ways & Means Committee when the body gavels back in on Tuesday. From there, leadership will decide whether to add their language to this existing bill, or continue working through their iteration of the bill and hope for passage before the clock runs out.

The Senate Hemp Regulations Dominate Debate
The Senate spent the week debating H. 3924, legislation regulating hemp-derived THC products. For the first time in recent memory, the Senate went into the early morning hours Wednesday night (well Thursday morning), finally adjourning debate for the day at 12:15AM.

What happened?
The bill was amended throughout the week to permit entities to sell gummies and other hemp consumables, but restricted all sales to liquor stores only (as opposed to functioning much like beer/wine versus liquor with a milligram split. When time came to take a final vote on the bill, the legislation failed by a vote of 15-25, with Majority Leader Shane Massey saying the body expected to deal with the topic again on Thursday. 

And on Thursday? Thursday led to more behind-the-scenes negotiations with the Senate recessing for hour long periods of time to try to work out compromise language.

The bill finally passed late Thursday afternoon, restoring much of the language in the original version of the bill for convenience and grocery stores to sell hemp products at the 5% range, but behind a counter only. Gummies and other consumables can be sold, but only behind the counter. An additional amendment failed that would allow for and train servers to serve hemp based beverages at bars and restaurants.

Why It Matters: The debate exposed cracks within the Republican party and leadership. Additionally, these new restrictions will impact retailers and many bars and restaurants that are currently serving these products.
The House The House was on Spring Break this week… the first of two planned furlough weeks they’ll take before the end of the session.

In Committees
Municipal Tax Relief - S.866
The Senate Finance Committee advanced legislation that would allow a municipality to hold a referendum to enact a penny sales tax within municipal boundaries if their county does not currently have a penny sales tax.

Childcare Programs - S.770
A Senate Family & Veterans Services Committee took testimony on a bill that would expand access to certain childcare programs for individuals with certain income caps and employment. The bill was ultimately carried over. 

Regulatory Reform - S.254/H.3021
A Senate Judiciary Subcommittee continued to take testimony on bills that would lessen regulatory burdens on small businesses. No action was taken.

The Week Ahead
In the Senate:
● Floor Watch: The Senate will likely take up the tax conformity bill and the transgender bathroom bill.
● Committees: Senate Finance subcommittees will wrap up their work on the state budget. 

In the House:
● The House will begin heavy committee work again as they work to fill the calendar for the second half of session. 

Candidate Filing Opened
Candidate filing opened on Monday at noon for all partisan offices (non-partisan offices such as school board will open in August). Filing closes on March 30 at noon.

Key Points for This Week
● House passes $15.4B state budget
● Income tax reform heads to Gov. McMaster
● DOT reform advances in the Senate

The One-Minute Drill
The Big Picture: The General Assembly has reached the midpoint of the legislative session, with nine weeks remaining before the May 14 Sine Die deadline. Expect longer days and faster legislative movement as lawmakers work to finish major priorities before adjournment.

1. House Passes $15.4 billion Budget
The News: After about 16 hours of debate, the House approved its first version of the $15.4 billion state budget. Despite the lengthy debate, the process moved faster than in recent years, with lawmakers finishing before midnight both nights. The Senate now begins its review.

What’s in the budget
State Workers
● $66.9M for a 2% pay raise for state employees
● $36.7M for the State Health Plan, avoiding premium increases
Education
● $150M to raise starting teacher pay to $50,500
● $95M for K-12 public and charter school facility and safety upgrades
● $8.7M to fully fund school breakfast statewide
Infrastructure
● $500M for roads and transportation
○ $249.2M for bridge modernization
○ $125M for interstate acceleration
○ $100M for county transportation funding
○ $25M for the road buyback program
Economic Development and Tourism
● $70M for airport enhancements to strengthen freight capacity and tourism
● $40M for tourism marketing
Tax Relief and Reserves
● $125M to reduce the top income tax rate from 6% to 5.39%
● $130M for property tax relief
● $179M added to the state’s reserve funds

What’s not included: The House version does not include earmarks or the $150M requested by the Department of Commerce for the Scout Motors project. 

What’s next: The Senate Finance Committee is expected to begin work on the budget in early April, where changes are common.

Why it matters
● Continued tax relief remains a legislative priority.
● Infrastructure funding signals ongoing focus on freight mobility and economic growth.
● The Senate budget process still provides opportunities for major revisions.

2. Income Tax Reform Heads to McMaster’s Desk
The news: After finishing the budget debate Wednesday night, the House approved the Senate’s income tax reform proposal, sending it to Gov. Henry McMaster.

Immediate changes
● Cuts the top income tax rate from 6% to 5.21%
● $308M in immediate income tax relief
● Taxes the first $30,000 of taxable income at 1.99%
● Existing exemptions remain unchanged

Impact: More than 77% of taxpayers are expected to see either a tax cut or no change in their tax liability.

​Long-term goal: The legislation commits to future incremental reductions, moving toward a 1.99% flat tax rate and potential elimination of the state income tax.

Why it matters
● Lower income tax rates can improve South Carolina’s competitiveness for investment and talent.
● Updated withholding tables mean workers may see higher take-home pay sooner, which can influence consumer spending.
● Future tax reductions will likely remain a major policy focus in upcoming sessions.

The Senate
DOT Reform
● The Senate gave S.831, the comprehensive Department of Transportation reform bill, second reading this week.
● Debate on amendments was carried over to third reading, which leadership expects to take up after completing debate on hemp beverage regulations.
● DOT governance changes could affect transportation planning, project prioritization, and infrastructure investment statewide.

Hemp Beverage Regulation
The Senate spent the week debating H.3924, legislation regulating hemp-derived THC products.
Key provisions
● Prohibits sales to individuals under 21, but keeps CBD products legal
● Places hemp beverages within the state’s three-tier alcohol distribution system
Product Limits / Restrictions
● 5mg THC drinks could be sold wherever beer and wine are sold
● 10mg drinks would be regulated similarly to liquor
● No on-premise consumption at bars or restaurants
● Gummies and other hemp consumables banned

Why it matters: The bill could significantly affect retailers, distributors, restaurants, and beverage manufacturers, particularly around where hemp beverages can be sold and how they are distributed.

The House
Tax Conformity
● After the budget and the income tax bill, the House passed tax conformity – aligning the state tax code with the federal tax code for 2025. One year only.
● This will include no tax on tips, no tax on overtime, and other provisions from the Big Beautiful Bill (2025). It will cost the state hundreds of millions in one-time money.
● This will also include full expensing of domestic research and experimental costs.
● The bill now goes to the Senate Finance Committee. 

In Committees
Municipal Tax Relief: S.866
A Senate Finance Subcommittee advanced legislation that would allow a municipality to hold a referendum to enact a penny sales tax within municipal boundaries if their county does not currently have a penny sales tax.

Pharmacy Benefit Managers: S.342
The Senate Banking and Insurance Committee advanced legislation that would further regulate pharmacy benefit manager programs and set a minimum drug reimbursement price and a $10.50 minimum dispensing fee for all prescriptions filled. This legislation will cost residents $300 million per year and increase health insurance premiums by 3%.

The Week Ahead
In the Senate:
● Floor Watch: The Senate is expected to continue their work on Hemp regulation and DOT reform.
● Committees: Senate Finance subcommittees will work on the state budget.
​
In the House:
● The House will take their first of two furlough weeks next week.

Key Points for This Week
● House preps for marathon week
● Training for alcohol service heads to McMaster’s desk
● DOT reform heads to senate floor

The One-Minute Drill
The Big Picture: We’ve hit the point in the two-year legislative session when the two chambers are starting to get really ticked off at the actions of the other. This happens every session, but the stakes are pretty high this year. Tax cuts, conformity, and the budget are serious challenges for the House in a gubernatorial election year.

1. House Preps for Marathon Week
The News: On Thursday, the House set four bills for Special Order next week - meaning no other legislation can be taken up before the completion of these bills. Members are prepping for a long week of debate, with the House gaveling in at 1:00 p.m. on Monday and possibly staying in session for the entire week.
● The Details: First on the agenda is the budget (H.5126). They’ll take up the “non-controversial” sections and then move into sections with amendments and lengthy debates. In past years, this process has stretched well into the night for several days. Following the budget, the House will take up the state’s rainy-day funds. Unlike past years, this isn’t where debate will end. The House will then take up the amended income tax reduction bill (H.4216), and the notorious “tax conformity” bill to extend Trump’s tax cuts for the 2025 tax year (H.3368).
● The Rub: The Senate’s version of the Income Tax bill increases the fiscal impact, leaving the House with even fewer funds to allocate in this year’s budget process. The House will need to decide whether to concur with the Senate’s amended version – both options being problematic in an election year. Meanwhile, tax conformity isn’t something the Senate wants to take up since the newly passed income tax bill decouples SC Income Tax from Federal taxes, but that would keep state taxes on tips and overtime, which is not popular. 
● What’s Next: These spats during the budget process aren’t unusual. Political watchers are placing bets on whether we see a budget done before June’s primary elections, especially given that the Senate has already passed a Continuing Resolution.

2. DOT Reform Heads to Senate Floor
The News: The Senate Advanced DOT Reform to the floor, and is expected to be taken up after the Senate finishes their work on Hemp Legislation.
● The Details: The Bill was amended in full committee and:
○ Gives DOT greater ability to enter into public-private partnerships.
○ Expands DOT’s tolling authority.
○ Transfers National Environmental Protection Act (NEPA) authority for permitting to DOT from the Federal Highway Administration.
○ Allows counties and cities to take ownership of roads from the state.
○ Provides greater oversight over county transportation committees.
● What’s Not Included: The Senate did not include language to make the DOT a Cabinet department under the governor. Several funding components of the bill were also removed, including an electric vehicle registration fee increase, electric car charging fee increases and mitigation fees for new housing developments.

On The Floor
Judiciary Race
● Justice Few Withdraws: In a surprise announcement on Tuesday, Supreme Court Justice John Few withdrew from the race for his seat on the bench. As the incumbent, his withdrawal forced a cancellation of the race and reset the process. Few’s term is set to expire on July 31, but law says he can stay on the bench until his replacement is selected - likely in 2027.

House
● “HALO” Act: The House passed legislation (H.4763) that would require the public stand 25-feet away from first responders and law enforcement if given a verbal warning. Knowingly ignoring that warning either from medical or law enforcement personnel would result in a misdemeanor charge, punishable by a fine of up to $500 and up to 30 days in jail. 

Senate
● Alcohol Server Training Extension: This week, the Senate unanimously passed H.5261, a joint resolution to extend the deadline for restaurants and bars to comply with the new alcohol server training requirements (as outlined in last year’s alcohol regulation overhaul) to May 1st. The Resolution is headed to the Governor’s Desk.
● Boat Taxes: On Thursday, the Senate passed a bill that aims to restructure boat taxes and registrations. The Senate-amended bill, which would eliminate the requirement to register outboard motors and reduce boat taxes by roughly $50 million, now heads back to the House.

In Committees
Data Centers: S.867/S.902
A Senate Agriculture and Natural Resources subcommittee and a Senate Judiciary subcommittee met this week to discuss the “Data Center Development Act” (S.867) and the “Data Center Siting Act” (S.902). Testimony during these hearings focused on water and energy usage and on which entities should have governing and regulatory authority. Additional hearings are expected.

Regulatory Relief: H.3021/S.254
A Senate Judiciary subcommittee held another hearing on a bill 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. Additional hearings are expected.

Insurance Reform: H.4817
The House Labor, Commerce and Industry (LCI) Committee advanced a bill that aims at reducing insurance rates, combating fraud, and increasing policyholder protections. The bill now heads to the House floor. 

Chinese Land Ownership: H.4974
A House Medical, Military, Public and Municipal Affairs (3M) subcommittee advanced a bill that would restrict companies owned or controlled by the People’s Republic of China or the Chinese Communist Party or whose principal place of business is located within China from acquiring land within 25 miles of military installations for the purpose of installing telecommunications or broadcast towers. The bill sent to the full House 3M Committee.

The Week Ahead
In the Senate:
● Floor Watch: The Senate is expected to take up legislation that would regulate hemp based consumables. The bill (H.3924) passed the House in April 2025, but has been heavily amended since then by the Senate. 
● Committees: Senate Finance subcommittees continue to meet in the Senate as they begin their work on the state budget, and an Agriculture and Natural Resources subcommittee will continue taking testimony on S.867, the data center overhaul bill. The full Senate Banking and Insurance Committee will meet on Wednesday to discuss S.342 the Pharmacy Benefit Manager Bill that will add a minimum dispensing fee to all prescriptions dispensed in SC.

In the House:
● Floor Watch: The House will spend the week on the budget, capital reserve funds, income tax reform and tax conformity.
● Committees: No House committees will meet this week.