View from the Dome February 21, 2025

The House Ways and Means Committee adopted its version of the state budget. School choice, energy generation, government restructuring and tort reform were also debated this week in committee. As this was the sixth week of the session, we have now completed one-third of the 18-week legislative session.

This week, the House 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 Senate for consideration.

The Senate Finance Committee adopted S. 264 (Senators Peeler, Climer, Ott, Johnson and Kimbrell) on Tuesday, 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 Senate for consideration.

On Tuesday, a Subcommittee of the House Agriculture Committee adopted H. 3279 (Reps. Moss, Pope and Taylor), which creates the South Carolina Equine Promotion Act”. The bill imposes an assessment on all commercial feed for equine use to promote the equine industry. The bill now goes to the full committee for consideration

Yesterday, the Senate Medical Affairs Committee approved the governor’s appointment of Eunice Medina as director of the Department of Health and Human Services (DHHS). Medina was previously the chief of staff and deputy director of programs for DHHS and will succeed former Director Robert Kerr, who retired late last year. Medina brings more than 20 years of experience in Medicaid policy and operations. Before joining DHHS, she served as a bureau chief with the Florida Agency for Health Care Administration, where she managed a team of over 60, overseeing Florida’s 18 Medicaid-managed care plans, and worked with the state’s home and community-based services waiver programs. The appointment now goes to the full Senate. For more information, click here.

This week, Governor Henry McMaster announced his appointment of Brigadier General Robin B. Stilwell as South Carolina’s next Adjutant General. Stilwell, who currently serves as Director of the Joint Staff for the South Carolina National Guard, will succeed the current Adjutant General, Major General Van McCarty, who plans to retire after serving in the position since 2019. The appointment is subject to Senate confirmation. Major General McCarty will continue serving as Adjutant General until the confirmation process is complete

On Wednesday, the Senate Transportation Committee 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 Senate for consideration.

On Wednesday, the House Ways and Means Committee adopted its version of the FY24-25 General Appropriations Act. Committee Chairman Bruce Bannister (R-Greenville) noted that this budget is fiscally responsible, provides smart investments and provides meaningful tax cuts. The $14 billion general fund budget includes $666 million in “new” recurring revenue and an estimated one-time budget surplus of about $1.25 billion. Specific items of interest include:

  • $200 million to continue cutting the state’s personal income tax, dropping the rate from 6.2% to 6%;
  • $112 million to raise starting teacher minimum salaries by $1,500 to $48,500;
  • $200 million to the South Carolina Department of Transportation (SCDOT) for bridge maintenance and repair;
  • $60.4 million to maintain health services for South Carolinians covered by Medicaid;
  • $66 million for a 2% state employee pay increase;
  • $90 million for SC WINS workforce scholarships; and
  • $100 million to the General Reserve Fund.

In response to Hurricane Helene:

  • $50 million to the Department of Transportation for unreimbursed costs related to Hurricane Helene;
  • $38 million to the Office of Resilience to replenish the Disaster Relief and Resilience Reserve Fund; and
  • $222 million to match federal FEMA funds.

House rules require the budget to be printed and placed on member’s desks for one week before full floor debate. That debate will begin on Monday, March 10. Ways and Means Committee meeting handouts and spreadsheets can be found here.

Meanwhile, state agencies continued appearing before the Senate Finance subcommittees this week with their budget requests, including the State Treasurer’s Office, the Judicial Department, the Department of Social Services and the Department of Children’s Advocacy. State Supreme Court Chief Justice John Kittredge testified that the state needs a new trial court case management system, noting that too much court information is now siloed. He estimates such a system will cost $100 million and urged the subcommittee to begin the funding to move the multi-year project forward.

On Tuesday, the Senate Finance Committee 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 Senate for consideration.

To view the governor’s executive budget, click here

Individual state agency budget requests can be found here.

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.

After over four hours of debate and testimony, the House Education Committee, by a vote of 13-4, adopted one of the top legislative priorities dealing with the issue of school choice. S. 62 (Senators Hembree and Rice), which passed the Senate last month, would provide $6,000 scholarships to low-income families so that parents can select an education option that best fits their child’s needs, public or private. The bill differs from the Senate version as it puts the funds in the hands of a “trustee” instead of a trust fund. The bill now goes to the full House for consideration.

Yesterday, a Senate Judiciary subcommittee took no action but began debate on H. 3309 (Reps. G. M. Smith, Gatch, Herbkersman, Pope and others), enacting the “South Carolina Energy Security Act.” A top priority of state leaders, the bill, which passed the House last week, 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 to address growing energy demand and to bolster economic growth in an affordable, reliable, safe and sustainable manner. The subcommittee is expected to meet again next week

On Tuesday, the Senate Finance Committee adopted S. 318 (Senators Goldfinch, Alexander, Johnson and others), a Joint Resolution that creates the “Delivery of Government Efficiency (DOGE) Commission. The nine-member 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.

That same day, the subcommittee of the House Labor, Commerce and Industry Committee adopted H. 3021 (Reps. Bradley, G. M. Smith, Herbkersman, Lawson and others), which enacts the “Small Business Regulatory Freedom Act”. The bill would establish a Small Business Regulatory Review committee that will review regulations pending authorization and make recommendations to the General Assembly for removing and reducing the overall regulatory burden and require cost-benefit analysis for new regulations. The bill’s primary sponsor Rep. Jeff Bradley (R-Beaufort) told the committee that South Carolina has over 81,000 “do’s and don’ts” in our state regulations. The goal is to reduce state regulations by 25%. The bill now goes to the full committee for consideration

Yesterday, the Senate Medical Affairs Committee adopted S. 2 (Senators Peeler, Alexander and Davis), which would restructure the state’s behavioral health agencies. The bill creates the Department of Behavioral Health and Developmental Disabilities, merging the Department of Mental Health, the Department of Disabilities and Special Needs and the Department of Alcohol and other Drug Abuse Services into one agency. The bill now goes to the full Senate for consideratio

On Wednesday, the Senate Transportation Committee adopted S. 307 (Senator Climer), providing insurance and liability procedures and guidelines for peer-to-peer car-sharing programs. The bill now goes to the full Senate 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 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. That same day, a subcommittee of the House Labor, Commerce and Industry Committee adopted H. 3756 (Reps. Herbkersman, Gatch and Hager), a companion to the Senate bill. It now goes to the full committee for consideration.

The House Economic Development and Utility Modernization Ad Hoc Committee met yesterday for a presentation from the Department of Commerce and discussed small business and existing industry energy needs. Video of the meeting can be found here.

The Senate Finance Committee adopted S. 125 (Senator Johnson) on Tuesday, providing property tax exemptions for certain nonprofit housing. The bill now goes to the full Senate for consideration.

After considerable debate, the House on Wednesday gave second reading approval to 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 received third and final reading yesterday and now goes to the Senate for consideration.

All bills introduced this week can be found here:

Senate https://www.scstatehouse.gov/sessphp/sintros.php

House https://www.scstatehouse.gov/sessphp/sintros.php

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