State economists met and increased the budget estimate for next year due to our growing economy. The House passed its first major legislative priority dealing with energy generation. Numerous subcommittees met in both bodies, advancing legislation..
On Tuesday, the House Agriculture, Natural Resources and Environmental Affairs Committee adopted H. 3814 (Rep. Hixon), a Joint Resolution relating to the Surface Water Study Committee. The resolution expands its scope to include a study of the current state of groundwater and other topics, and changes the date that the study committee reports to the General Assembly from March 1, 2025, to March 2, 2026. The resolution now goes to the full House for consideration.
Yesterday, a Senate Finance subcommittee adopted S. 264 (Senators Peeler, Climer, Ott, Johnson and Kimbrell), providing certain agricultural property may not be annexed by a municipality without express written agreement by the owner. The bill now goes to the full committee for consideration.
On Wednesday, a subcommittee of the House Labor, Commerce and Industry Committee adjourned debate on H. 3777 (Reps. M. M. Smith, Gagnon, Brewer and Garvin), the “Consumer Freedom Act” also known as the “Scout” bill. The bill would allow an automobile manufacturer that owns a manufacturing plant to sell directly to consumers without a dealer franchise. Automobile dealers are in strong opposition to the bill. It is unclear if or when the subcommittee will take up the bill again.
On Tuesday, a Senate Transportation Subcommittee adopted S. 275 (Senator Grooms), which concerns fees charged by electric utilities for electric vehicles and charging stations. The bill now goes to the full committee for consideration.
The Board of Economic Advisors (BEA) met yesterday and raised the budget estimate based on income and employment growth. Revenue growth is better than expected: 11.1% actual vs. 5.9% expected, and total General Fund revenue is $396.9 million above expectations. The revised recommendations result in a net General Fund increase of $131
million for FY 25 and $132 million for FY 26.
Estimated “New” General Fund Revenue available for appropriation (less Reserve Fund Contributions) has increased by $132.5 million to $666 million. The projected budget surplus has increased to $1.25 billion.
The growth in the FY 26 revenue estimate over the base budget is sufficient to enact the next reduction in the top marginal individual income tax rate for tax year 2025.
The BEA is statutorily charged to provide the General Assembly with the official revenue estimate for lawmakers to draft the annual state budget. They will meet again on March 20. The forecast can be viewed here
The House Ways and Means Subcommittees are finishing up their work on the budget as the Senate Finance budget subcommittees are ramping up state agency budget requests. Agencies appearing before the Senate this week included the Department of Commerce, the Department of Labor, Licensing & Regulation, the State Fiscal Accountability Authority and the Department of Administration.
On Tuesday, a Senate Finance Subcommittee adopted S. 291 (Senators Peeler, Alexander and Bennett), a Joint Resolution to continue to pay the expenses of state government if the FY2025-26 fiscal year begins without the budget being enacted. The resolution now goes to the full Finance Committee for consideration.
The House Ways and Means Committee will take up the budget in full committee next week. Full floor debate is expected in the House beginning March 11, and then the budget goes to the Senate for its consideration.
To view the governor’s executive budget, click here.
Individual state agency budget requests can be found here.
A Senate Judiciary Subcommittee met on Tuesday and began debate on S. 184 (Senators Johnson, Young and Adams), known as Dram Shop liability. The bill would hold businesses and individuals responsible if alcohol is served to someone who is intoxicated and that person harms another person. The bill, along with other tort reform measures being considered, is aimed at lowering insurance premiums for businesses and individuals. The subcommittee took no action and will meet again on the bill soon.
The House of Representatives passed its first major legislative priority this week to address the state’s growing energy needs. H. 3309 (Reps. G. M. Smith, Gatch, Herbkersman, Pope and others) enacts the “South Carolina Energy Security Act,” which aims to ensure that electric generation and transmission providers are able to plan, site, and construct new and replacement generation and transmission resources in a timely and cost-effective manner. The bill includes an all-of-the-above energy strategy and would speed up the approval process for new power projects while increasing transparency and protecting ratepayers. The bill now goes to the Senate for consideration.
Yesterday, a Senate Finance subcommittee adopted S. 318 (Senators Goldfinch, Alexander, Johnson and others), a Joint Resolution that creates the “Commission on Fiscal Restraint and Government Efficiency”. The commission will conduct a survey of the structure and funding of state government to determine how to modernize it so that state government is less costly and more efficient. It will also focus on spending reductions and reducing the regulatory burden on businesses and citizens. The resolution now goes to the full committee for consideration.
A Senate Transportation Subcommittee adopted S. 307 (Senator Climer) on Tuesday, providing insurance and liability procedures and guidelines for peer-to-peer car-sharing programs. The bill now goes to the full committee for consideration.
Yesterday, a subcommittee of the House Labor, Commerce and Industry Committee debated but took no action on H. 3771 (Reps. Hartnett, Erickson, M. M. Smith, Wetmore and others), which would require owners of certain boats anchored in state waters to maintain marine recovery insurance on their boats. The committee plans to meet again to possibly work on an omnibus bill.
This week, the House adopted H. 3529 (Reps. W. Newton, Bannister, Caskey and others), which increases the number of Family Court judges in the ninth, eleventh and fourteenth circuits. The bill now goes to the Senate for consideration.
On Wednesday, a Senate Judiciary subcommittee adopted S. 156 (Senators Alexander and Rankin), which creates the offense of fentanyl-induced homicide. The bill now goes to the full committee for consideration.
Yesterday, a Senate Judiciary Subcommittee met yet again to continue public testimony on S. 244 (Senators Massey, Alexander, Rice, Turner and others), major tort reform legislation that proponents say will create a more fair system and make South Carolina more competitive. Most of the testimony yesterday focused on the statute of repose that limits the amount of time a person has to file a lawsuit in construction cases. They are expected to meet again next week.
A subcommittee of the House Judiciary Committee debated but took no action on H. 3497 (Reps. W. Newton, Wooten, Pope and others), a bill relating to liquor liability insurance. The bill will be back in subcommittee next week.
On Wednesday, the SC Office of Resilience (SCOR) appeared before a Senate Legislative Oversight Subcommittee. SCOR Director Ben Duncan gave a presentation on the history of the agency, which was created in 2020 to address disaster recovery and resilience. Duncan told the subcommittee that the state will be receiving $150 million in federal funds as a result of damage from Hurricane Helene. The agency will need to hire 134 temporary grant employees to administer the funds.
Yesterday, the Department of Children’s Advocacy presented to the subcommittee. Director Amanda Whittle gave an overview of the agency, created in 2019, to examine, on a system-wide basis, the care and services that other state agencies provide children. The agency administers the Foster Care Review Program, Guardian Ad Litem and Continuum of Care.
On Wednesday, a Senate Judiciary Subcommittee adopted S. 157 (Senators Alexander and Rankin), which would allow an electric utility to include storm recovery costs for Hurricane Helene through the issuance of storm recovery bonds. The bill now goes to the full committee for consideration.
The Senate Finance Committee Property Tax Subcommittee adopted S. 125 (Senator Johnson) on Tuesday, providing property tax exemptions for certain nonprofit housing. The subcommittee also adopted S. 317 (Senators Goldfinch, Fernandez and others), providing property tax exemptions of fifty percent of the fair market value of watercraft. Both bills now go to the full committee for consideration.
On Wednesday, a Senate Labor, Commerce and Industry Subcommittee adopted S. 176 (Senator Climer) regarding regulations of Certified Public Accountants (CPA) and Public Accountants. The bill modernizes the CPA Practice Act, removes barriers to mobility and extends the time to pass the exam to 36 months. Yesterday, the bill was adopted by the full committee. It now goes on the Senate calendar for floor debate.
On Tuesday, the House Judiciary Committee adopted H. 3431 (Reps. W. Newton, Wooten, Pope, Pedalino and McCravy), providing that social media companies may not permit certain minors to be account holders and must restrict social media access to minors during certain hours. The bill now goes to the full House for consideration.
All bills introduced this week can be found here:
The House Ways and Means Committee will take up the state budget in committee beginning on Tuesday.
