Session Week 3

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.