The General Assembly adjourned Sine Die yesterday at 5:00 pm, ending the first year of the two-year legislative session. All bills that did not make it through both chambers will retain their place until the legislature returns in January. The only item remaining to be resolved is the adoption of the state budget, likely to occur at the end of the month. Several of the higher-profile issues, including tort reform, energy generation and banning cell phones while driving, were resolved this week. A number of bills are now awaiting action by the governor.
On Tuesday, the House Ways and Means subcommittee and full committee 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 bill was adopted by the full House, and has been enrolled and ratified and is awaiting action by the governor.
That same day, the Senate concurred in the House amendments to S. 176 (Senator Climer), regarding regulations for 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. The bill has been enrolled and ratified and is awaiting action by the governor.
This week, the House adopted H. 4216, which lowers the state’s income tax rate, a top priority of legislative leaders and Governor Henry McMaster. After receiving widespread criticism because the original plan would have raised taxes on most filers, a revised plan was drafted after consultation with state economists. The new plan adopted decouples from the federal tax code and will:
- Cut spending and devote over $400M to income tax relief;
- Lower the 6.2% income tax rate to 5.39%;
- Set a path to 1.99% over five years, and full elimination in ten years; and
- Lower SC’s rate below GA and NC, boosting jobs and competitiveness.
Tax credits and deductions will not be changed. While this plan will not become law this year, both bodies have included funding in the budget to continue lowering the current rate next year from 6.2% to 6%. The bill now goes to the Senate for consideration in January.
This week, the House adopted H. 3858 (Reps. Brewer, Pedalino, Lowe and others), relating to lowering property taxes on boats. Boats and motors will no longer be taxed separately, and the 10% rate, currently the highest in the nation, will be lowered to 6%. The bill now goes to the Senate for consideration next year.
This week, the Senate adopted H. 3800, which provides sales tax exemptions for durable medical equipment. The bill has been enrolled and ratified and is awaiting action by the governor.
This week, the Senate confirmed the governor’s appointment of Anthony Catone as director of the South Carolina Department of Social Services. Catone, who was named the agency’s acting director in January following the departure of former director Michael Leach, has served as part of the agency’s executive management team as General Counsel for the last ten years.
The Senate also confirmed the appointments of:
Thomas Scott Beck, R. Michael Campbell, II, and Henry Gene McCaskill to the South Carolina Workers’ Compensation Commission;
Brian Frerichs, Hugh L. Willcox, Jr., Esquire and Timothy Tilley to the Santee Cooper Board of Directors;
And Dr. John Mayfield to the State Board of Veterinary Medical Examiners.
A special Subcommittee of the Senate Finance Committee met once again on Wednesday and 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 pari-mutuel 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 bill will be discussed again next year.
After a decade of attempts, H. 3276 (Reps. Pope, Robbins, Chapman, W. Newton and others), enacting the “South Carolina Hands-Free and Distracted Driving Act,” finally made it to the governor’s desk. The bill makes it unlawful to hold a cell phone while driving and creates 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 has been enrolled and ratified and is awaiting action by the governor.
This week, the House non-concurred in the Senate amendments on the FY24-25 General Appropriations Act, H. 4025, and re-amended the budget. The Senate non-concurred in those amendments, thereby setting the stage for a Conference Committee, made up of three senators and three House members, to resolve the differences in the two versions.
Normally, that process stretches beyond the session adjournment date and will this year as well. The state Board of Economic Advisors will meet again on May 20, and it is expected that the budget Conference Committee will meet soon afterwards. The Senate budget conferees are Sen. Harvey Peeler (R-Gaffney), Sen. Darrell Jackson (D-Richland) and Sen. Thomas Alexander (R-Oconee). House conferees are Rep. Bruce Bannister (R-Greenville), Rep. Lee Hewitt (R-Georgetown) and Rep. Leon Stavrinakis (D-Charleston). We will let you know when that happens.
The House agreed to the Senate amendments to the Capital Reserve Fund bill H. 4026 for one-time expenditures. That bill has been enrolled and ratified and is awaiting action by the governor.
The Senate budget spreadsheet can be found here.
The House budget spreadsheet can be found here.
Individual state agency budget requests can be found here.
One of the top legislative priorities dealing with the issue of school choice was resolved this week when the House concurred in the Senate amendments on S. 62 (Senators Hembree and Rice). The bill 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 was signed into law by the governor on Wednesday.
Another legislative priority, increasing the state’s energy generation, was also resolved this week when the Senate agreed to the House amendments to H. 3309 (Reps. G. M. Smith, Gatch, Herbkersman, Pope and others), enacting the “South Carolina Energy Security Act”. The bill 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. It reforms the Public Service Commission to increase transparency and oversight of utility companies, encourages long-term investment in energy generation and paves the way for a new gas-fired plant in Colleton County. The bill has been enrolled and ratified and is awaiting action by the governor.
This week, the House adjourned debate until January on H. 4165 (Reps. Davis, M. M. Smith, B. L. Cox and others), the “Non-Opioid Treatments for Pain Management” bill. 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 exempts palliative and end-of-life care and medical emergencies. The bill will remain on the House calendar for debate again in January.
Yesterday, the House concurred in the Senate amendments to H. 3752 (Rep. Gilliam), enacting the “Social Work Interstate Compact Act.” The bill aims to facilitate the interstate practice of regulated social workers with the goal of improving public access to competent social work services. The compact seeks to preserve the regulatory authority of states to protect public health and safety through the current system of state licensure. The bill has been enrolled and ratified and is awaiting action by the governor.
This week, the Senate adopted H. 3632 (Reps. Erickson and Spann-Wilder), clarifying that LIFE and Palmetto Fellows Scholarship stipends apply to accounting majors who completed coursework in economics and business statistics as freshmen in the 2024-2025 school year. The bill has been enrolled and ratified and is awaiting action by the governor.
Yesterday, the House Insurance Rate Review Ad Hoc Committee held its first meeting to organize. No testimony was taken. The committee was created to study insurance rates, primarily property and casualty, in South Carolina and seek ways to lower rates for consumers. The committee plans to meet over the coming months and will seek testimony from the Department of Insurance, insurance companies and law enforcement relating to insurance fraud.
S.210 (Turner), a bill relating to requirements of captive insurance companies, was adopted this week. The bill has been enrolled and ratified and is awaiting action by the governor.
A compromise agreement, weeks in the works, was adopted this week on one of the major issues for state leaders and the business community this session – tort reform, including joint and several liability. The goal is aimed at lowering insurance premiums, particularly in the hospitality industry. The compromise reached on H. 3430 (Reps. B. Newton, Murphy, Caskey and others) gives bars and restaurants options and requirements to assist in reducing their minimum insurance coverage for serving alcohol.
The bill also reforms state rules for personal injury lawsuits, known as joint and several liability, which allows businesses to be held 100% financially responsible in a lawsuit even if they bear little fault. Under the compromise, businesses can be held fully responsible if they are more than 50% at fault. If no single business or person meets that threshold, fault will be divided proportionately between all those involved. The compromise plan includes an agreement that the General Assembly will continue working on tort reform next year, including medical malpractice, which was not addressed in this plan. The bill has been enrolled and ratified and is awaiting action by the governor.
After a bill receives the necessary three readings in both the House and Senate, the bill is enrolled for ratification. The presiding officers of each body then agree to meet for ratification at a mutually convenient time, where they then formally declare such through the process of ratification of acts. The bills, now ratified acts, then go to the governor, who has five days to sign them into law, veto them, or allow them to become law without his signature. Here are just some of the bills that were ratified this week:
H. 3430 – tort reform;
S. 103 – cell-cultivated food labeling;
S. 176 – CPA Practice Act;
S.210 – captive insurance companies;
S.220 – Insurance Holding Company Regulatory Act;
S. 307 – peer-to-peer car-sharing programs insurance;
S. 51 – Santee Cooper, utilizing V.C. Summer assets;
H. 3800 – sales tax exemptions for durable medical equipment;
H. 4160 – judicial seats;
S. 507 – tax conformity;
H. 3632 – scholarship stipends for accounting majors;
H. 3571 – 811 system notification of excavations;
S. 156 – fentanyl-induced homicide;
H. 3752 – Social Work Interstate Compact Act.
To see the full list of ratified acts, click here.
Adjournment sine die means “without assigning a day for a further meeting or hearing.” This Latin term is used to signify the end of our legislative session. However, as in most recent years, the General Assembly adopted S. 292 (Senators Alexander, Peeler, Martin, Massey and Rankin), a Sine Die Resolution, allowing them to continue past the mandatory May 8 Sine Die deadline to complete unfinished business, but only on the state budget. The resolution states that the General Assembly shall stand in recess, subject to the call of the President of the Senate and the Speaker of the House of Representatives at times they consider appropriate for their respective bodies to meet. When they return, they are only allowed to take up the state budget, which is expected to occur at the end of May or June 1.
Yesterday, the House concurred in the Senate amendments to H. 3571 (Rep. Hiott), which concerns notification of excavations and the 811 system. The bill has been enrolled and ratified and is awaiting action by the governor.
All bills introduced this week can be found here:
The General Assembly has adjourned Sine Die, ending the first year of the two-year legislative session. We will keep you apprised of any activity on the state budget.
