One Voice Newsletter

Legislative Update – Week 11

With both the House and Senate back in session this week, the Statehouse was bustling as lawmakers in both bodies continue to work to advance priorities as the clock on the two-year session is beginning to run out.

Of note, the House and Senate met to ratify acts on Wednesday, officially sending the Income Tax Reform bill (H.4216) to the Governor’s desk for his signature.

SCMC Testifies in Support of Manufacturing Property Tax Bill (S.439)

On Wednesday, SCMC VP of Government Affairs Will Frierson testified in support of one of SCMC’s top priorities, S.439, which unanimously passed out of a House Ways and Means subcommittee.

The bill would raise the manufacturing property tax exemption cap established in the Comprehensive Tax Cut Act of 2022 from $170 million to $300 million. The original cap helped reduce the manufacturing property tax rate from 9% to 6%, provided county revenue losses did not exceed $170 million. Increasing the cap is critical to ensuring small and mid-sized manufacturers are not subjected to property tax increases in the coming years.

The bill now heads to the full House Ways and Means Committee.

House Passes Tort-Related Bills

On Wednesday, the House unanimously passed two bills aimed at improving South Carolina’s legal climate.

H.4544 seeks to close loopholes that are causing increased financial exposure to healthcare providers in medical malpractice litigation by clarifying the circumstances where non-economic damage caps do not apply and redefining the definition of “occurrence,” to treat multiple negligent acts as a single occurrence when resulting in similar harm. The bill also increases the caps under the Tort Claims Act, adjusting liability limits for claims against governmental entities in civil actions.

H.4670 codifies clear guidelines that must be met when making time-limited settlement demands in tort claims and implements a 30-day period by which insurance carriers can tender policy limits and avoid being charged with bad faith.

Both bills now head to the Senate.

DOT Modernization Bills Moving

On Thursday, a House Ways and Means subcommittee advanced two bills (S.831/H.5071) that seek to modernize the Department of Transportation (DOT) and streamline the delivery of infrastructure projects across South Carolina.

Both bills:

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

• Expand DOT’s tolling authority.

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

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

• Provide greater oversight over county transportation committees.

The subcommittee adopted amendments to both bills that:

• Make the DOT Secretary a cabinet position appointed by the Governor

• Transfer development of the statewide transportation plan and budget approval from the DOT commission to department leadership

• Increase the electric vehicle (EV) registration fee from $120 biennially to $400 biennially

Both bills now head to the full House Ways and Means Committee.

Other Notable Actions

• S.C. Drone Regulation and Public Safety Act (H.4679) – This week, a House Judiciary subcommittee advanced 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 full House Judiciary Committee.

• Workers’ Compensation Fee Schedule Flexibility (H.3874) – This week, the House passed 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 Senate.

• Physician Noncompete Agreements (H.4767)  – On Thursday, the House passed a bill prohibiting non-compete agreements for physicians, while allowing hospitals to recoup specified costs if a physician departs within three years. The bill now heads to the Senate.

• Biomass for Energy (H.3967) – This week, the Senate passed a bill that would define biomass to include forest products and establish that bioenergy used from biomass is renewable and carbon neutral. The bill was enrolled for ratification.

• Regulation of Hemp-Derived Products (H.3924) – On Tuesday, the Senate gave third 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 now heads back to the House where they must decide whether to concur or not.

New Bills Introduced

• Gas Tax Suspension – Multiple bills (S.1045, H.5398, H.5419, H.5422, H.5443) were introduced in both bodies this week to suspend the gas tax for periods of anywhere from 30 to 90 days.

• SC Community Choice Aggregation Act (H.5438) – This bill by Rep. Gary Brewer (R-Charleston) would allow counties and municipalities to pool their residents’ and businesses’ electricity demand and procure generation from competitive suppliers — while leaving distribution and reliability functions with incumbent utilities.

• Electric Retail Choice (H.5439) – This bill by Rep. Gary Brewer (R-Charleston) would open South Carolina’s electric generation market to competition for residential and small commercial customers beginning January 1, 2028, allowing them to choose their supplier while incumbent utilities retain distribution and default service responsibilities.

• Product Liability (H.5444) – This bill by Rep. Heath Sessions (R-York) shields distributors and retailers from liability unless directly responsible for manufacturing or modification of sold products.
• Dram Shop Liability (H.5441) – This bill by Rep. Mark Smith (R-Charleston) and others establishes dram shop liability in statute for the first time, allowing third parties injured by a visibly intoxicated person to sue the licensed alcohol seller — but only if the licensee knowingly served someone who was visibly intoxicated.
  

Next Week

The House will be in town all next week while the Senate will be in town through Wednesday before being in perfunctory session on Thursday. Notable committee meetings already scheduled for next week include:

• Tuesday – Senate Agriculture and Natural Resources subcommittee on S.867, the “Data Center Development Act”.

• Tuesday – House Judiciary Committee Domestic Relations, Business & Probate Laws Subcommittee on H.3408, Foreign Land Ownership.