One Voice Newsletter

Legislative Update – Week 14

Week 14 was one of the busiest weeks at the Statehouse this year, with both the House and Senate back in town and working hard to advance their priorities as we near the finish line of this year’s session.

Regulatory Reform Moves in Senate 

After multiple meetings and hours of testimony from a diverse group of industries, a Senate Judiciary subcommittee advanced an amended version of the “Small Business Regulatory Freedom Act” (H.3021), which seeks to reduce the regulatory burden on job creators in our state.

As amended, the bill strengthens the state’s existing regulatory review process by adding independent oversight to ensure regulations remain within statutory authority and are not outdated, while holding agencies accountable for compliance. It also ends judicial deference to state agencies in legal disputes. The changes address earlier concerns that the original bill could have undermined certainty for the business community.

The bill now heads to the full Senate Judiciary Committee.

Senate Holds Hearing on AI Chatbots 

On Wednesday, a special subcommittee of the Senate Labor, Commerce and Industry (LCI) held a hearing on two bills (S.896 and S.1037) that would regulate AI chatbot providers by imposing age verification requirements, data consent restrictions, mandatory disclosures, behavioral safeguards, and significant civil liability — including a private right of action — on any entity that makes a chatbot available to users in South Carolina.

Testimony from different industry stakeholders focused on the broad definitions of chatbot in both bills that will likely sweep up every commercial customer service application used by South Carolina employers and lead to increased compliance costs.

No action was ultimately taken. Another subcommittee meeting is expected.

Ways and Means Committee Talks Headquarters Recruitment 

On Tuesday, the Property Tax Subcommittee of the House Ways and Means Committee took testimony on a bill (H.5471) by Rep. Bruce Bannister (R-Greenville) to create the South Carolina Headquarters Relocation and Growth Fund, a dedicated grant fund to help South Carolina compete for corporate headquarters projects — an area where the state’s existing incentive toolkit, which is heavily focused on capital expenditure and job creation thresholds, has left us at a competitive disadvantage. Funds could be used for employee relocation, office construction, IT infrastructure, workforce training, and public infrastructure improvements directly supporting the project site.

SCMC testified in support of the bill, arguing that it would make South Carolina more competitive for these types of projects, which bring high wages, anchor decision-making, attract professional services, and create ripple effects across local economies. SCMC also argued that the bill is also a brain drain tool — state data shows South Carolina retains only 28% of out-of-state students who attend our colleges, and headquarters jobs are precisely the high-wage professional positions that give those graduates a reason to stay.

The bill was ultimately carried over, with Committee Chairman Bannister noting that it will continue to be worked on in the off-session and be a priority of the committee in 2027.

Other Notable Actions 

• Insurance Rate Reduction and Policy Holder Protection Act (H.4817) – On Tuesday, a Senate Banking and Insurance subcommittee amended a bill that aims at reducing insurance rates, combating fraud, and increasing policyholder protections. Another subcommittee meeting will be held on Tuesday, April 28.

• Foreign Adversary Land Ownership Restrictions (H.3408) – On Tuesday, the House Judiciary Committee advanced a bill that, as amended, would prohibit foreign adversarial nations, as defined by the U.S. Secretary of Commerce, from acquiring any agricultural land in the state on or after July 1, 2026. The bill now heads to the House floor.

• Foreign Influence Operations Out of American Education Act (H.5504) – On Tuesday, the House Education and Public Works (EPW) Committee advanced a bill that prohibits South Carolina public colleges and universities from accepting gifts, entering contracts, or engaging in partnerships with foreign adversary nations and their affiliates, and requires disclosure of gifts and contracts from any foreign country or foreign principal valued at ten thousand dollars or more. The bill now heads to the House floor.

• Workers’ Compensation Fee Schedule Flexibility (H.3874) – On Wednesday, a Senate Judiciary subcommittee advanced a bill that would give the Workers’ Compensation Commission broader authority to establish and adjust medical fee schedules for medical services provided by practitioners. The bill now heads to the full Judiciary Committee.

• Aircraft Property Tax Reduction (S.436) – On Tuesday, the Senate Finance Committee advanced a bill that, as amended, would allow commercial aircraft carriers to enter into fee-in-lieu agreements (FILOTs) approved by the Coordinating Council for Economic Development. The bill now heads to the Senate floor.

• S.C. Drone Regulation and Public Safety Act (H.4679) – This week, the House passed a bill establishing a statewide framework for drone operations, with protections for critical infrastructure, public safety, and private property. The bill requires FAA compliance, restricts unauthorized flights near sensitive sites and large events, and creates penalties for misuse. It also preempts most local ordinances. The bill now heads to the Senate.

• Admissions Tax Exemption (H.3371) – On Wednesday, a House Ways and Means subcommittee advanced a bill that exempts chambers of commerce from the admissions tax. The bill now heads to the full Ways and Means Committee.

• Textiles Communities Revitalization Act Clarification (H.5488) – On Wednesday, a House Ways and Means subcommittee advanced a bill that clarifies the qualifying requirements for rehabilitation expenses under the SC Textiles Communities Revitalization Act, specifying that textile mill buildings included in a Notice of Intent to Rehabilitate must be either renovated or demolished to be eligible for the associated tax credit. The bill now heads to the full Ways and Means Committee.

New Bills Introduced 

• S.C. Headquarters Relocation and Growth Fund (S.1118) – This companion bill to H.5471 by Sen. Ross Turner (R-Greenville) would create the South Carolina Headquarters Relocation and Growth Fund, a dedicated grant fund to help South Carolina compete for corporate headquarters projects. Funds could be used for employee relocation, office construction, IT infrastructure, workforce training, and public infrastructure improvements directly supporting the project site.

• Guarantee Banking Act (H.5538) – This bill, introduced by Rep. Tommy Pope (R-York) and other members of House leadership, would create the “Guarantee Banking Act,” which prohibits financial institutions from discriminating against individuals and promotes fairness and transparency in banking. Specifically, the bill includes definitions related to banking practices and establishes a cause of action for civil remedies in the event of a violation.

Next Week 

Significant attention will be given to the Senate, as it begins debating its version of the state’s FY2026-27 budget on the floor. The House may tackle DOT Modernization (S.831/H.5071) on the floor.