One Voice Newsletter

Legislative Update – Week 10

With the House on furlough this week, all eyes were on the Senate as they spent hours working through legislation to regulate hemp-derived THC products (H.3924).

Senate Passes DOT Modernization Bill (S.831)

On Thursday, the Senate passed a bill that seeks to modernize the Department of Transportation (DOT) and streamline the delivery of infrastructure projects across South Carolina. The bill:

• Gives DOT greater ability to enter into public-private partnerships.

• Expands DOT’s tolling authority.

• Transfers National Environmental Protection Act (NEPA) authority for permitting to DOT from the Federal Highway Administration.

• Includes provisions to allow counties and cities to take ownership of roads from the state.

• Provides greater oversight over county transportation committees.

The bill now heads to the House Ways and Means Committee which has been reviewing a similar proposal.

Tax Conformity Continues to Advance

On Tuesday, the Senate Finance Committee advanced a bill (H.3368) that would conform South Carolina to the Internal Revenue Code (IRC) for tax year 2025, thereby capturing all of the personal and business tax provisions of the One Big Beautiful Bill Act (OBBBA).

The bill, which carries a roughly $290 million price tag, now heads to the floor of the Senate.

Another Data Center Hearing Held in Senate

A Senate Judiciary subcommittee held an additional meeting this week to discuss the “Data Center Siting Act” (S.902). Most of the discussion focused on the existing contractual arrangements utility providers already have in place with data center customers that cover infrastructure costs, including upfront deposits, and defined minimum terms, to ensure other customers are not shouldering additional costs.

Environmental groups expressed support for a bill (S.724) that would require certain commercial data centers to report annual water usage to the Department of Environmental Services (DES), so that the state would have additional data to use for long-term water planning. Of note – it was reiterated during the meeting by Senators that the newly updated State Water Plan shows that South Carolina’s surface water supply is abundant through 2070.

No action on either bill was ultimately taken, but another meeting is expected to be held in the coming weeks.

Other Notable Actions

• Small Business Regulatory Freedom Act (H.3021) – On Thursday, a Senate Judiciary subcommittee held another hearing to receive testimony on a bill that seeks to reduce regulatory burdens on job creators. Individuals that testified expressed concern about the potential uncertainty that the bill could cause due to automatic sunsetting of existing regulations. Another hearing on the bill is expected.

• Biomass for Energy (H.3967) – On Thursday, the Senate Medical Affairs Committee advanced a bill that would define biomass to include forest products and establish that bioenergy used from biomass is renewable and carbon neutral. The bill now heads to the Senate floor.

• Regulation of Hemp-Derived Products (H.3924) – This week, the Senate gave second reading to a bill that would establish a regulatory framework for hemp-derived THC products by prohibiting sales to those under 21 and allowing only regulated hemp-derived THC beverages, and gummies, with potency limits to be sold in liquor stores and in, some instances, convenience stores behind the counter. The bill still needs to receive a third reading before heading to the House.

Next Week

The House will return to Columbia next week and significant subcommittee action is expected. The Senate will continue to work through its legislative priorities as well.