Session Week 16

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.