The Senate worked through its calendar and held numerous committee meetings, while the House of Representatives took the week off for its annual Easter furlough. Just nine legislative days remain before adjournment for the year.
On Tuesday, the Senate Agriculture and Natural Resources Committee once again took testimony and questioned Ms. Myra Reece, Interim Director of the Department of Environmental Services (DES), and confirmed her nomination. The nomination now goes to the full Senate for confirmation.
On Tuesday, a Senate Judiciary Subcommittee adopted S. 427 (Senator Adams), which expands the conduct and increases the penalty for taunting, tormenting, injuring or killing police dogs and horses. The full Judiciary Committee adopted the bill later that same day. The bill now goes to the full Senate for consideration.
On Wednesday, the Senate Transportation Committee adopted H. 3276 (Reps. Pope, Robbins, Chapman, W. Newton and others), enacting the “South Carolina Hands-Free and Distracted Driving Act”. The bill, which has been introduced annually for a number of years, would make it unlawful to hold a cell phone while driving and create the offense of distracted driving. Under the proposal, drivers caught holding a cellphone, either in their hand or in their lap, would be fined $100 on the first offense. Each additional violation in a three-year span would cost $200 and add two points to a driver’s license. Hands-free phone calls and voice-to-text messaging would still be legal.
South Carolina risks losing $50 million of its designated federal highway funds if it fails to enact such a law this year. The bill now goes to the full Senate for consideration.
Full Senate floor debate on the FY24-25 General Appropriations Act H. 4025 and the Capital Reserve Fund H. 4026 will begin next week. Following the adoption of the bill by the Senate Finance Committee last week, Senate Finance Committee Chairman Harvey Peeler (R-Cherokee) and House Ways and Means Chairman Bruce Bannister (R-Greenville) released a rare joint-statement announcing there would be no earmarks in this year’s budget in order to focus on member’s top priority – tax reform.
Earmarks are one-time payments given to non-profits or local governments, which can include a number of services as well as road repairs, first responder equipment upgrades or capital improvements to local facilities. Last year’s budget allocated more than $430 million in earmarks, with the biggest portion dedicated to tourism, recreation and sports.
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. After the budget is adopted by the Senate, it will return to the House for concurrence in the Senate amendments. Typically, the House non-concurs, and the differences between the two versions will be worked out by a Conference Committee. Normally, that process stretches beyond the session adjournment date.
The Senate Finance Committee version, which passed last week, can be found here.
This week, the Senate gave third and final reading 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 now goes to the House for consideration.
On Wednesday, the Senate concurred in the House amendments to S. 2 (Senators Peeler, Alexander and Davis), which would restructure the state’s behavioral health agencies. If signed into law, 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 bill is now enrolled for ratification. Ratification of acts is the final step in the legislative process when the presiding officers of the Senate and the House sign the enrolled bills. Those bills are then sent to the governor, where he can sign them into law, veto a bill or allow a bill to become law without his signature.
On Wednesday, the Senate Banking and Insurance Committee adopted S. 196 (Senator Cromer), an extensive update establishing licensure requirements for insurance adjusters. The bill now goes to the full Senate for consideration.
This week, the Senate adopted H. 3497 (Reps. W. Newton, Wooten, Pope and others), a bill relating to liquor liability. 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 Senate amended the bill to also include S. 244 (Senators Massey, Alexander, Rice, Turner and others), its major tort reform bill that passed the Senate last month. That bill addresses other forms of insurance and puts restrictions on the legal liability of some parties in lawsuits. It requires all damages to be doled out proportionally unless the business is more than 50% responsible, in which case it can be held fully liable for damages. With the adoption of the more comprehensive measures added by the Senate, the bill’s future is uncertain. The bill received third and final reading on Wednesday and was returned to the House with amendments.
On Tuesday, a Senate Finance Subcommittee adopted S. 507 (Senators Peeler, Alexander and Turner), known as “tax conformity.” The bill updates the references to the Internal Revenue Code to the year 2024 and extends adopted sections for South Carolina income tax purposes.
The subcommittee also adopted S. 266 (Senator Cromer), dealing with sales tax exemptions for durable medical equipment.
That same day, another Senate Finance Subcommittee adopted S.439 (Peeler, Davis, Bennett and others), which increases the maximum reimbursement amount for manufacturing property tax exemption to $300 million. All of these bills will now go to the full Senate Finance Committee.
This week, the full Senate gave final reading approval to S. 32 (Senators Grooms, Leber and Rice), enacting the “Pregnancy Resource Act”. The bill provides for a tax credit for voluntary contributions made to a pregnancy resource center or a crisis pregnancy center. The bill now goes to the House for consideration.
All bills introduced this week can be found here:
The House Ways and Means Committee will meet next Tuesday morning to receive expert testimony on H. 4216, which lowers the state’s income tax rate. Just three weeks remain in the legislative session.