Session Week 5

Key Points for This Week
● McMaster Endorses Evette for Governor
● Senate debates Property Tax Reforms
● House Passes SC Small Business Tax Cut of 2026
● House Passes Judicial Reform

The One-Minute Drill
The Big Picture: The General Assembly wrapped Week 5 with 40 legislative days remaining. While the floor was quieter this week, major movements in judicial reform and small business tax relief defined the agenda.

1. The Governor’s Race: McMaster Picks a Side
The News: Governor Henry McMaster officially endorsed Lt. Gov. Pamela Evette to succeed him.
● Why it matters: As the state's longest-serving governor, McMaster’s nod cements Evette as the institutional frontrunner in a crowded GOP field. 
● What’s next: Eyes are on Mar-a-Lago. The Trump endorsement for Cody Simpson could signal the former President intends to influence other state races this June.

2. Judicial Reform: A Historic Shift
The News: The House passed a sweeping overhaul of the Judicial Merit Selection Commission (JMSC) on a party-line vote.
● The Details: The bill expands the JMSC to 12 members – all appointed by the Governor.
● Key Guardrail: It explicitly bans using "diversity, equity, and inclusion (DEI) criteria" (including race, gender, or religion) in judicial nominations.
● The Hook: In a late amendment, the Senate must now send magistrate candidates to the JMSC for review before confirmation. 

3. Small Business Win: $10,000 Tax Exemption
The News: The House passed the SC Small Business Tax Cut of 2026 (H.5006) 103-0.
● What it does: Exempts the first $10,000 of depreciated business personal property (desks, equipment, etc.) for companies with fewer than 100 employees or under $10M in sales.
● Bottom line: It eliminates property tax entirely for thousands of the state's smallest "mom and pop" shops.

Senate: Taxes & Oversight
● Charter School Oversight (S.454): Passed unanimously. It grants the Dept. of Education more teeth to oversee for-profit management companies and authorizers following a critical audit.
● Property Tax (S.748): Debate began on Chairman Peeler's "Homestead Exemption" bill. It seeks to jump the exemption to $150,000 for seniors (65+).
○ The Friction: Senate debate centered on updating the property tax system, and "workforce vs. retirees" – specifically whether this encourages an influx of retirees at the expense of affordable housing for workers. 

In Committees
DOT Reform: S.831 / H.5071
Both chambers are taking testimony; Senate version stalled by the clock this week.
NIL Contracts: H.4902
Advanced to Senate floor. Aimed at keeping SC colleges competitive by reducing NIL disclosure requirements.
Alcohol Sales: H. 3857/ H. 4001 / H. 5017
House subcommittees advanced curbside delivery, Sunday sales referendums, and Sunday liquor tastings.

Other Bills of Note:
House: The "Scarlet E" Housing Reform (H.4270)
● The News: A bipartisan bill to seal old eviction records cleared its first major hurdle on Tuesday with a unanimous 5-0 subcommittee vote.
● What it does: The bill (H.4270) would automatically remove eviction filings from the public searchable index after five years (down from seven in the original draft).
● Why it matters: In South Carolina, an eviction filing currently stays on a record forever—even if the case was dismissed. Business and housing advocates call it the "Scarlet E," which often prevents reliable workers from securing housing due to ancient or erroneous filings. The bill has support from both tenant groups and the SC Apartment Association, who agree that five-year-old data is no longer useful for screening.
● Status: Heads to the full House Judiciary Committee with 18 bipartisan co-sponsors.

Higher Ed Tenure Review (H.4761)
● The News: A House Higher Education subcommittee is advancing a proposal that would mandate a "post-tenure review" for faculty at public colleges and universities. This is a reaction to the public comments from some faculty about the assasination of Charlie Kirk last fall. 
●The Details: The bill (H.4761) requires tenured professors to undergo a comprehensive performance evaluation every six years. If a faculty member receives two "does not meet expectations" ratings within five years, the university must initiate a tenure revocation process within six months.
● Why it matters: Supporters argue this ensures accountability and "weeds out dead wood" in state-funded positions. Critics, including many faculty groups, contend it effectively ends the "lifelong guarantee" of tenure and could hurt the state's ability to recruit top-tier researchers.
● What’s next: The bill is a top priority for the leadership of both chambers.

The Week Ahead
In the Senate:
●Expect a heavy focus on the Income Tax Reduction Bill (H.4216) and continued debate on Homestead Exemptions.
● Tech Watch: A subcommittee will take testimony on S.867, the comprehensive Data Center bill.

In the House:
●Floor Watch: H. 3477 Changes the calculation of how much money beneficiaries can get through unemployment insurance benefits. H. 4757 creates the so-called Parental Rights Act, an outline of a framework so to speak of a parent's role in the education, health care and mental health care of their child. Both are priorities for leadership this session.
● The Budget: The Full Ways & Means Committee takes center stage to begin "section-by-section" work.
● Solicitor Impeachment: A subcommittee will discuss the potential impeachment of the 5th Circuit Solicitor.