One Voice Newsletter

Legislative Update – Week 16

Week 16 is in the books, and just six legislative days remain before the clock strikes midnight on this year’s legislative session. With no Sine Die Resolution in place yet, lawmakers are racing to get priorities across the finish line before 5:00 p.m. hits on May 14.

House Passes DOT Modernization Bill

This week, the House passed a bill (S.831) to modernize the Department of Transportation (DOT) and streamline the delivery of infrastructure projects across South Carolina.

The amended 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.

• Provides greater oversight over county transportation committees.

• Makes the DOT Secretary a cabinet position appointed by the Governor.

• Eliminates the DOT Commission.

Ahead of the House debate, SCMC led 33 local chambers of commerce and business associations in a letter in support of DOT Modernization. The bill will likely head to a conference committee.

Small Business Tax Relief Heads to Senate Floor

One of SCMC’s top priorities is closer to the finish line after the Senate Finance Committee advanced the “Small Business Tax Cut Act of 2026” (H.5006) on Tuesday afternoon.

The bill would exempt the first $10,000 of a small business’s personal property (BPP) from county taxation, ease compliance burdens, and effectively eliminate the tax altogether for small businesses with less than $10,000 in BPP.

The bill will likely be taken up on the floor next week.

Regulatory Reform Moves in Senate

On Tuesday, the Senate Judiciary Committee 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review process by adding independent oversight to ensure regulations remain within statutory authority and are not outdated, while holding agencies accountable for compliance.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 requires proposed regulations with an estimated financial impact of over $10 million to receive joint approval by the House and Senate. Finally, 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 is now on the Senate calendar.

Senate Talks Tort Reform

The Senate spent time on the floor Wednesday evening debating two tort-related bills but ultimately took no action.

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. Sen. Shane Massey (R-Edgefield) proposed an amendment to eliminate the caps increase, arguing that the increase impacts more than just governmental entities in the healthcare arena. The bill was ultimately contested, which stalled/ended the debate.

H.4000 expands alcohol licensing to performing arts and convention complexes and municipal amphitheaters and establishes server training and compliance requirements for collegiate sporting venues. Sen. Michael Johnson (R-York) proposed an amendment to reduce the mandatory minimum liquor liability insurance coverage from $1 million to $500,000 and to eliminate the liquor liability risk mitigation program established by Act 42 of 2025 that has not led to lower liquor liability insurance rates. The bill was ultimately contested, which stalled/ended debate.

Other Notable Actions

• Data Center Development Act (S.867) – On Tuesday, the Senate Agriculture and Natural Resources Committee advanced an unamended version of this bill that would establish a framework for data center development, including creation of a Data Center Development Office within the Department of Environmental Services (DES), along with permitting requirements, operational standards, utility oversight, noise standards, and decommissioning requirements. The bill now heads to the Senate floor.

• Insurance Rate Reduction and Policy Holder Protection Act (H.4817) – This week, the Senate Banking and Insurance Committee advanced a bill that aims to reduce insurance rates, combat fraud, and increase policyholder protections. The bill now heads to the Senate floor.

• Sales Tax Exemption for Broadband Equipment (H.5122) – On Thursday, the House passed a bill that would exempt equipment and related purchases by broadband and communications service providers, when used in producing or distributing internet access and communications services, from the state sales tax. The bill now heads to the Senate.

• Admissions Tax Exemption (H.3371) – This week, the House passed a bill that exempts local chambers of commerce from the admissions tax. The bill now heads to the Senate.

• Workers’ Compensation Fee Schedule Flexibility (H.3874) – On Tuesday, the Senate Judiciary Committee 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 Senate floor.

• Aircraft Property Tax Reduction (S.436) – This week, the Senate passed 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 House.

• Foreign Influence Operations Out of American Education Act (H.5504) – This week, the House passed 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 Senate.

• S.C. STEM Opportunity Act (H.3863) – On Thursday, the Senate Labor, Commerce and Industry (LCI) Committee advanced a bill that would consolidate the state’s existing STEM education organizations into a unified, Clemson-housed coalition backed by a dedicated state fund, with the goal of aligning K-12 and higher education programming with the workforce needs of South Carolina’s business community. The bill now heads to the Senate floor.

• Alcohol Delivery and Curbside Pickup (S.849) – On Tuesday, the Senate Judiciary Committee advanced a bill that authorizes licensed retailers to offer curbside pickup and third-party delivery of beer, wine, and liquor in South Carolina. The bill now heads to the Senate floor.

Next Week

The Senate is expected to take up the “Small Business Regulatory Freedom Act” (H.3021) on the floor next week. Notable meetings already scheduled for next week include:

• Tuesday – Senate Banking and Insurance (B&I) Subcommittee on the “Guarantee Banking Act” (H.5538) followed by a full committee meeting on Wednesday.

• Tuesday – Senate Transportation Subcommittee on the “Drone Regulation and Public Safety Act (H.4679).