Session Week 14

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.
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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.