With just five weeks left in the legislative session, both the Senate and House worked well into the evening on Wednesday. The Senate passed energy generation legislation, while the House passed legislation banning DEI programs. The much-touted income tax reduction plan was placed on hold for the time being. Legislation restructuring the state’s behavioral health agencies advanced in the House.
On Wednesday, a Senate Finance subcommittee heard testimony but did not take action on S. 344 (Senators Johnson, Ott and others), enacting the “South Carolina Equine Advancement Act”. The bill provides guidelines for para-mutual wagering on horse racing and allows for advanced deposit wagering with a percentage of the fees collected paid to the state. It establishes an equine commission to oversee a grant program that assists the growth and development of the equine industry in South Carolina. The subcommittee expects to hear testimony on the bill again soon
Dr. Edward Simmer, the Interim Director of the Department of Public Health (DPH), testified for the second time for his confirmation hearing before the Senate Medical Affairs Committee. Simmer has come under fire for decisions he made during the pandemic, and many oppose his confirmation. After several hours of questioning by the committee the confirmation failed by a vote of 5-12.
Subcommittees of the Senate Finance Committee wrapped up their work this week in preparation for the full committee debate next week on the FY24-25 General Appropriations Act H. 4025 and the Capital Reserve Fund H. 4026. Full floor debate in the Senate is planned to begin on April 22.
Individual state agency budget requests can be found here.
After several tense hours of debate on Wednesday, the House adopted H. 3927 (Reps. Gilliam, Hiott, G. M. Smith and many others), enacting the “Ending Illegal Discrimination and Restoring Merit-Based Opportunity Act” banning Diversity, Equity and Inclusion (DEI) programs by a vote of 82-32. The bill was amended in subcommittee after receiving testimony that there were numerous issues with the original bill due to the potential for legal jeopardy and the fiscal impact on the state. One major change was removing the ban on contracting with private companies that have DEI programs.
However, an amendment adopted on the floor reinstates language that private businesses that contract with public entities cannot “operate any unlawful programs or hiring practices” that violate federal anti-discrimination laws.
The amended bill would prohibit state agencies, local governments and universities from supporting or promoting DEI and prevent preferential treatment in hiring or employment practices based on race, gender, sex or nationality. The bill requires entities to comply with the equal protection clauses of the state and the United States Constitution. The bill received third reading yesterday and now goes to the Senate for consideration
After working well into the evening on Wednesday, the Senate adopted 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 month, 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 seeks to address growing energy demand and to bolster economic growth in an affordable, reliable, safe and sustainable manner. The bill streamlines the regulatory process and paves the way for a new gas-fired plant at Canadys in Colleton County. The bill now goes back to the House for concurrence in the Senate amendments.
Yesterday, the Senate gave second reading approval to S. 12 (Senators Rankin and Grooms), authorizing the Public Service Authority (aka Santee Cooper) to jointly own a gas-fired generation facility with Dominion Energy. The bill remains on the Senate calendar awaiting third and final reading.
Yesterday, the House Medical, Military, Public and Municipal Affairs Committee adopted S. 2 (Senators Peeler, Alexander and Davis), which would restructure the state’s behavioral health agencies. If enacted, the bill would establish 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 within the executive branch.
The bill is a continuation of a long-term effort, which began with the Restructuring Act of 1993, to move away from legislative oversight of state agencies and move them into the executive branch. The new agency would consist of the following component offices: the Office of Intellectual and Developmental Disabilities, the Office of Mental Health and the Office of Substance Use Services. The bill now goes to the full House for consideration.
The committee also adopted H. 4165 (Reps. Davis, M. M. Smith, B. L. Cox and others), the “Non-Opioid Treatments for Pain Management” bill, which was adopted by a subcommittee on Tuesday. The bill requires the Department of Public Health to develop and publish educational materials regarding the use of non-opioid treatments for pain. It also requires healthcare practitioners to inform patients of available non-opioid alternatives. The bill now goes to the full House for consideration.
This week, the Senate approved S.210 (Turner) relating to requirements of captive insurance companies. The bill now goes to the House for consideration
On Tuesday, the Senate gave third and final reading approval to S. 307 (Senator Climer), which provides guidelines for peer-to-peer car-sharing programs and outlines insurance and liability procedures. The bill now goes to the House for consideration
On Wednesday, a Subcommittee of the House Judiciary Committee adopted H. 4160 (Reps. W. Newton, G. M. Smith, Jordan and others) relating to judicial seats. The bill would turn ten of the sixteen at-large seats into resident seats based on population, caseload fair representation and location. The bill now goes to the full committee for consideration
On Thursday, a Senate Legislative Oversight Subcommittee met on the South Carolina Office of Resilience (SCOR). The agency gave an overview of its current programs and status and discussed its budget request for FY25-26. Committee Chairman Chip Campsen (R-Charleston) commended the agency for leveraging funds, particularly with land conservation. Video of the meeting can be found here.
On Wednesday, Senator Larry Grooms (R-Berkeley), who led the Senate’s inquiry into the $1.8 billion accounting error in the state’s financial system, formally introduced a concurrent resolution S. 534 (Senators Grooms and Goldfinch) to remove State Treasurer Curtis Loftis from office for “willful neglect of duty” over the error and his lack of reporting it to the Legislature. The resolution sets noon on April 21 for a formal Senate hearing. On that date, Grooms will present the case against Loftis, and Loftis will be able to respond to make his defense. This hearing is unprecedented in that the last such hearing occurred in the late 1800’s. Loftis can only be removed from office if two-thirds of both the House and Senate vote to remove him. It is unclear if the House has plans to schedule a vote. Governor Henry McMaster has said he thinks the hearing is a step too far.
After an initial rollout with much fanfare, the House Ways and Means Committee adjourned debate yesterday on H. 4216 (Reps. Bannister, Pope, G. M. Smith and others) relating to income tax rates. The plan, which would collapse all state income tax brackets to a single, flat 3.99% rate, came under fire when state economists predicted more than half of all state taxpayers would actually pay more in state income taxes under the plan. Although the state’s current income tax rate is 6.2%, the effective tax rate of most middle-income filers is 3%. Although the bill passed out of subcommittee unanimously on Tuesday, House Ways and Means Committee Chairman Bruce Bannister (R-Greenville) said that the committee needs more time to consider a number of amendments that have been drafted.
Yesterday, the House Ways and Means Committee adopted two bills dealing with sales tax exemptions for durable medical equipment: H. 3800 (Reps. W. Newton, Bannister and Herbkersman) and for food manufacturing equipment, H. 3869 (Rep. Bannister). These bills now go to the full House for consideration.
On Wednesday, a Subcommittee of the Senate Labor, Commerce and Industry 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 committee for consideration
All bills introduced this week can be found here:
Just fifteen legislative days remain in the session.
