April 26, 2024

The Senate debated and gave second and third readings to the FY 24-25 Appropriations Act (H. 5100) and Capital Reserve Fund (H. 5101) this week. The House worked on the floor and in committees taking up several Senate bills of interest. With only two weeks left in the legislative session, committees in both chambers will be wrapping up their work next week to get bills on the calendars for debate. 

Budget Bill — H. 5100. The Senate gave second and third readings to its version of the FY 24-25 Appropriations bill this week, which includes increased funding to the Local Government Fund (LGF) by $13,872,845 statewide. This represents full funding to the LGF under the statutory formula. (See updated LGF County Allocation Estimates Chart).

Line items of interest in this year’s version of the Senate budget included:

• $12 million for the Rural County Stabilization Fund (RCSF), which represents the same funding as the current fiscal year. (See updated RCSF Estimates Chart);
• $82.5 million to cover a $1,375 base pay increase for state employees making $50,000 or less and a 2.75% base pay increase for state employees making more than $50,000;
• $107 million to cover the state’s share of a projected 11.8% increase in premiums for the State Health Plan (see proviso 108.6 below);
• $750,000 for PTSD treatment for first responders;
• $3 million to Labor Licensing and Regulation for the V-SAFE Fund;
• $9 million for destination-specific tourism grants;
• $3.784 million for the Firefighter Cancer Benefit Plan;
• $1 million to supplement the Councils of Governments;
• $1.1 million in additional recurring funding for State Aid to County Libraries;
• $1.1 million in additional money for regional tourism;
• $11.4 million in additional funding to the Rural Infrastructure Authority (RIA) for the Water Quality Revolving Loan Fund;
• $4 million to the Office of Resiliency for the Disaster Relief and Resilience Reserve Fund;
• $9 million in additional money to the Conservation Bank for grant funding;
• $11.5 million in additional money to the State Election Commission for election operations;
• $2.5 million to the Department of Mental Health for the Alternative Transportation Program;
• $5 million in additional money to the Department of Commerce for the Closing Fund; 
• $100 million to the Department of Transportation (SCDOT) for bridge modification on interstate and primary highways (see proviso 118.22 below);
• $200 million to the County Transportation Committee Acceleration Fund (see proviso 118.22 below);
• $15 million to the RIA for the Rural Infrastructure Fund and $15 million for the Statewide Water and Sewer Fund (see proviso 118.22 below);
• $10 million to the Department of Commerce’s SC NEXUS Program for Advanced Resilient Energy;
• $2.5 million to the Department of Environmental Services (DES) for the air quality program;
• $1 million to the Department of Administration for first responder 800MHz communication modernization;
• $10 million to the Department of Corrections for cell phone interdiction;
• More than $34 million to the Department of Veterans’ Affairs for veteran homes;
• $1.28 million to the Department of Veterans’ Affairs for the Veterans’ Cemetery;
• $1 million for the Veterans’ Trust Fund;
• $1 million in income tax credits to comply with H. 3121, the Recreational Trail Easement Tax Credit bill that passed earlier this year;
• $12.5 million to the State Election Commission for voting system upgrades; and
• $5 million to the Attorney General (AG)’s Office for a new Crime Victim Assistance “SAVS” Program.

The Senate also adopted amendments during debate on the floor to fund the following new items:

• $750,000 to the State Election Commission for the Poll Worker Training Program; and
• $2 million in recurring dollars and $3 million in nonrecurring funds to the State Law Enforcement Division (SLED) for the Concealed Weapon Permit Training Program that was included in the Constitutional Carry Act of 2024 (H. 3594).

The Senate adopted the following amendments relating to the $600 million Homestead Exemption Fund and Income Tax Reduction:

118.22. SR: Homestead Exemption Fund. This new proviso, adopted by the Senate Finance Committee, directs that $600 million from the Homestead Exemption Fund shall be distributed as a one-time, nonrecurring appropriation, by Sept. 30, 2024, for the following purposes listed in order of priority:

• $99.5 million to the General Fund to accelerate the Income Tax Reduction to 6.2%;
• $200 million to the County Transportation Committee Acceleration Fund;
• $100 million to SCDOT for the Bridge Acceleration Fund;
• $117.4 million to SCDOT for the Rural Road Safety Program;
• $15 million to RIA for the Rural Infrastructure Fund;
• $15 million to the RIA for the Statewide Water/Sewer Fund; and
• $53 million to the University of South Carolina Health Sciences Campus for bond avoidance.

Unexpended funds appropriated pursuant to this provision may be carried forward to succeeding fiscal years and expended for the same purposes.

117.149. GP: Homestead Exemption Fund. The Senate Finance Committee adopted the House amendment to the existing proviso that updated fiscal year references. The proviso provides that for FY 24-25, Section 11-11-156(C) of the Code of Laws, relating to remaining balances of the Homestead Exemption Fund at the end of a fiscal year, is suspended.

118.23. SR: Income Tax Reduction. This new proviso provides that for the 2024 income tax year, the top marginal rate imposed on the South Carolina taxable income of individuals, estates, trusts, and any other entity except those taxed or exempted from taxation under Sections 12-6-530 through 12-6-550 of the S.C. Code, equals 6.2%. The bracket to which the 6.2% applies must be the same as the bracket for which the top marginal rate would have otherwise applied.

The following provisos of interest were added or substantially amended by the Senate this week during floor debate on the budget:  

27.1. LIB: Aid to Counties: Libraries Allotment. This proviso was amended to require that prior to receiving any of the funds allotted to them, county libraries must certify to the State Library that their county libraries do not offer any books or materials that appeal to the prurient interest of children younger than 17 in the children’s, youth, or teen book sections of libraries and are only made available with explicit parental consent.

55.26. DES: Beaches. This new Senate proviso provides that, of the funds appropriated to the DES, "beaches" means those lands subject to periodic inundation by tidal and wave action so that no non- coastal vegetation is established; or such other definition that is established by statute. A determination by the agency that an area is considered "beach" pursuant to this provision is subject to immediate appellate review by the Administrative Law Court. The appellant shall issue notice of appeal within 30 days, which shall stay any enforcement action while waiting for a court decision. If the administrative law judge issues an order reversing the decision of the agency, as it relates to the agency's determination of "beaches," then the administrative law judge shall issue attorney's fees and costs to the appellant. The agency may be solely responsible for the attorney's fees and costs; and any third-party litigants relying on such claims may be responsible for a portion of those fees at the discretion of the administrative law judge. 

74.4. WCC: Workers’ Compensation Hearings. This new Senate proviso requires that every county shall provide a space to conduct hearings for the Workers’ Compensation Commission upon request of the Chairman of the Workers’ Compensation Commission. This space shall be in a secure existing facility and include all utilities.

49.24. PRT: Advertising Funds. This new Senate proviso provides that in the current fiscal year, the Department of Parks, Recreation, and Tourism is directed to use a portion of advertising funds appropriated in this Act in Section II. A. Advertising to promote inland lakes for tourism and fishing, hunting opportunities throughout the state, and public and nonprofit-owned-and-administered trail systems in all areas of the state.

102.13. ELECT: County Director Vacancy. This House proviso was ruled “out-of-order” during debate on the Senate floor and therefore was deleted from inclusion in this year’s Senate budget. The language included in the House version of the budget authorizes the Executive Director of the State Election Commission to assume administration of a county board of voter registration and elections if the position of director of a county board of voter registration and elections is vacated within 60 days of an election.

117.82. GP: Civil Conspiracy and Defense Costs. The Senate amended the existing proviso by striking the proviso in its entirety and inserting new language for the current fiscal year. It states that for any claim that has not reached a judgment, if a state or local government employee or former state or local government employee ("government employee") is personally sued for civil conspiracy, the employee must be provided legal counsel by the governmental entity and/or their insurer upon the submission of an affidavit executed by the agency head or his designee that the employee was acting within the scope of employment or in good faith. No insurer that provides insurance for any governmental entity may exclude coverage for civil conspiracy. Prior to trial, the court must make a final determination whether the action or decision giving rise to the suit was made by the government employee within the scope of their official duty or in good faith. If the court finds that the government employee was acting outside the scope of the employee's official duties or not in good faith, the government or their insurer shall not expend any funds to pay or defend the claim including funds for the employee's legal counsel. If the court finds the government employee was acting within the scope of their official duties, the employee is immune from suit, liability, and damages with respect to the civil conspiracy claim. The government may only expend funds to defend the claim if the determination is that the employee was acting within the scope of their official duties or in good faith. Nothing in this proviso prevents an insurance provider from defending and paying, respectively, any claims that the provider has contractually agreed to defend and pay.

View a list of additional provisos of interest, passed by the Senate.

Low Income Housing Property Tax Exemption — S. 1017. This bill would address a potential loophole created by Act 145 in 2020 that provides a property tax exemption for “all property of nonprofit housing corporations or instrumentalities of these corporations when the property is devoted to providing housing to low or very low-income residents” as long as the corporation or its instrumentality satisfies the safe harbor provisions of Revenue Procedure 96-32.  

There is nothing in the statute that requires property owners to annually report that they continue to meet the qualifications in subsequent years after they acquire the property, and several counties are concerned that developers and owners of highly valuable property are taking advantage of this by getting a property tax exemption for property that should be taxed.  

S. 1017 provides that the nonprofit housing corporation only gets a complete property tax exemption if it has more than a 50% ownership interest in the property. If their interest is less than 50%, the exemption will be proportionate to the percentage of their interest. Upon initial application for the exemption, the corporation must certify to the Department of Revenue (DOR) the percentage of its owner interest in the property and thereafter must provide an annual certification to DOR of the percentage of its economic interest in the property to show that they continue to meet the qualifications for the exemption. This is an SCAC policy position. DOR must notify the county within 60 calendar days of any property that qualifies for the exemption. This bill would become effective for property tax years beginning after 2024. Projects that had applied for or were approved for an exemption prior to this legislation being enacted are exempted. However, these projects are required to submit to the required annual report certifications.

The House Ways and Means Committee adopted an amendment to require properties in the Charlotte Metropolitan Area to meet a very low average income threshold to receive 100% exemption and gave the bill a favorable report, as amended. S. 1017 is pending second reading on the House calendar.

Abandoned Buildings Tax Credit — S. 1021. This bill would increase the tax credit for abandoned buildings from $500,000 to $700,000 in a tax year and extends the program through 2035. The House Ways and Means Committee gave the bill a favorable report and S. 1021 is pending second reading on the House calendar.

Income Tax Deductions for Firefighters/Law Enforcement — S. 969. This bill increases the individual income tax subsistence allowance deduction for law enforcement officers and full-time firefighters and EMS personnel from $8 to $16 per day beginning in tax year 2024. The bill also increases the maximum deduction for volunteer firefighters, rescue squad members, hazardous materials response team members, reserve police officers, Department of Natural Resources deputy enforcement officers, members of the State Guard, and volunteer state constables who meet the volunteer activity requirements as specified in the statute from $3,000 to $6,000. The allowable deduction per taxpayer must be certified by Revenue and Fiscal Affairs annually such that the total revenue loss does not exceed an aggregate limit of $3.1 million per year in total, which remains unchanged. The deduction will be phased in over four years. The House Ways and Means Committee amended the bill to allow counties with a local transportation sales tax to exempt unprepared food items eligible for purchase with U.S. Department of Agriculture food coupons from the tax through the authorizing ordinance. The Committee then gave S. 969 a favorable report, as amended, and the bill is pending second reading on the House calendar.

Ambulance Assessment Fees — H. 4113. This bill allows the Department of Health and Human Services to charge every ambulance service a uniform ambulance assessment fee. County fire, police, and emergency medical services are exempt from the fee. This fee shall be updated at least annually, and there may be a penalty imposed of up to 5% for failure to pay. The bill also establishes the Ambulance Fee Trust Fund in the State Treasurer’s Office. The Senate gave H. 4113 a second reading, and the bill is pending third reading on the Senate calendar.

Land Use, Natural Resources and Transportation

Blue Crabs/Amendment Expanding Permit Exemptions for Land Disturbing Activities Involving Agriculture Structures — S. 955. As introduced, this bill establishes new licenses, processes, and limits for blue crab fishing. The House Agriculture, Natural Resources and Environmental Affairs Committee adopted several amendments to the bill this week including the addition of the language contained in H. 4834, a bill relating to permit exemptions for certain land disturbing activities under Section 48-14-40(A) of the Stormwater Management and Sediment Reduction Act. This amendment expands the permit exemption on agricultural lands to include agricultural structures that are to be used to house livestock, poultry crops, or other agricultural products, materials or equipment. The amendment also specifies that construction of other types of agricultural structures of one or more acres such as machine sheds, repair shops, and other major buildings that require the issuance of a building permit shall submit a stormwater management and sediment control plan that must be approved prior to the start of any land disturbing activity.

The House Agriculture, Natural Resources and Environmental Affairs Committee gave S. 955 a favorable report, as amended, and the bill will be placed on the House calendar.

Prosecutors Privacy — S. 841. This bill would create the “Prosecutors Personal Privacy Protection Act” and would apply to active or former solicitors, deputy or assistant solicitors, attorneys general along with their deputies and assistants, and U.S. Attorneys and their assistants for the District of South Carolina. It would ensure to these individuals that their personal identifying information held or maintained by any state or local governing entity would be confidential and must not be disclosed to the public if they have filed a formal request with the entity. The South Carolina Commission on Prosecution Coordination is required to create the necessary request form within 30 days after this bill becomes law. Any government entity that redacts or withholds information under this article would be required to provide the request or a description of the redacted or withheld information.

The Senate adopted the Committee amendment to include the provisions of S. 1034, a cleanup bill to Act 56 of 2023, that created the personal privacy act for current and former law enforcement officers and members of the judiciary. This amendment would limit the redaction request to county databases and online documents containing their personal identifying information, an SCAC policy position. The South Carolina Commission on Prosecution must coordinate with the South Carolina Criminal Justice Academy and Court Administration to create the request form to ensure consistency.

The House Judiciary Constitutional Laws subcommittee further amended the bill, at the request of SCAC, to clarify that the provisions of this bill do not prohibit governmental entities from disclosing this protected information to other governmental entities as a part of their duties and functions. The amendment also provided an exemption for the personal contact information of people serving as registered agents for service of process. The amendment also adds property tax map numbers to the definition of “personal contact information” if it is posted on a publicly available state or local government agency website, and removes the “name” of the requestor from the definition of personal contact information. Finally, the amendment changes the effective date of both this bill and Act 56 of 2023 from July 1, 2024, until July 1, 2025.

SCAC attempted, but was unsuccessful, in getting the bill amended to require the requestor to specify which documents contain their personal contact information. S. 841, as amended, was given a favorable report, and will be on the next full committee’s agenda.

Pending Gun Charges — S. 1166. This bill was filed in response to the passage of the Constitutional Carry/Second Amendment Preservation Act of 2024. It would require the state to dismiss all charges pending against a person for unlawful possession of a handgun that were nullified by the enactment of the Constitutional Carry Act. The mandate does not apply if the unlawful possession charge was used as probable cause for another offense arising from the same incident. A House Judiciary subcommittee gave the bill a favorable report, and S. 1166 should be on the next full committee’s agenda.

Camp Lejeune Water Contamination Litigation — S. 845. This bill combined three bills that would amend Section 62-3-108 to allow a probate action to be brought specifically for death-related claims due to exposure to the contaminated water at Camp Lejeune, regardless of when the decedent died, an SCAC policy position. The House gave S. 845 second and third readings, and the bill will be enrolled for ratification.

Coroner Qualifications — H. 3865. This bill would extend the qualifications for a coroner to include a licensed paramedic who has at least three years of experience. A Senate Judiciary subcommittee adopted an amendment to remove the option where a candidate enrolled in a certification program to be completed within one year of being elected to the office of coroner could meet the qualification requirements, an SCAC policy position. As a result, candidates must have completed a recognized forensic science degree or certification program to qualify. The Senate adopted the amendment and carried the bill over. H. 3865 remains on the Senate calendar pending second reading.

Fentanyl Homicide — S. 1. This bill creates the felony offense of fentanyl-induced homicide. A person who unlawfully delivers, dispenses, or otherwise provides fentanyl to a person who dies after injection, inhalation, absorption, or ingestion of any amount of the substance has committed the felony offense of fentanyl-induced homicide. This felony carries a penalty of not more than 30 years. A House Judiciary subcommittee amendment would differentiate between a dealer in fentanyl versus a person sharing fentanyl with another person that results in death. The House Judiciary Committee adjourned debate on the bill until its meeting next Tuesday to work on additional amendments.

Judicial Merit Selection Commission Reform — S. 1046 and H. 5170. The House Judiciary Constitutional Laws subcommittee met on Wednesday and took up S. 1046. The subcommittee struck the language in S. 1046, inserted the language from H. 5170, and gave the bill a favorable report, as amended.

As adopted by the subcommittee, the bill would amend the Judicial Merit Selection Commission (JMSC) to be composed of 13 members and require the JMSC to employ an executive director to perform the day-to-day operations of the Commission. Four members would be appointed by the Speaker of the House, two by the President of the Senate, two by the Chairman of the Senate Judiciary Committee, and five by the Governor. The bill would also specify that a magistrate may serve in a holdover capacity for no more than 14 days from the expiration of their term, and the Governor may make a temporary appointment if the Senate has not given advice and consent for a new appointment within 14 days. Finally, the bill would expand concurrent jurisdiction for magistrates’ court to certain actions with claims not exceeding $25,000. The current limit is $7,500. The bill would take effect July 1, 2025. S. 1046 should be on the agenda for the next meeting of the House Judiciary Committee.

Antisemitism — H. 4042. This bill would codify antisemitism as a listed discriminatory act by incorporating definitions and examples from the International Holocaust Remembrance Alliance and prohibiting discriminatory acts relating to antisemitism. The House concurred with the Senate amendments, and H. 4042 was enrolled for ratification.

Law Enforcement Access to Electronic Records — S. 954. This bill would allow law enforcement officers, a Circuit Solicitor, or the AG to require the disclosure of stored communications, as well as related transaction records and subscriber information, to the extent provided by federal law. The AG, a Circuit Solicitor, or SLED is authorized to issue subpoenas to compel disclosure of these communications upon showing that the requested material is relevant to an ongoing criminal investigation. A House Judiciary subcommittee gave S. 954 a favorable report, and the bill should be on the next full committee’s agenda.

Firefighter Cancer Health Care — S. 728. This bill would revise the definition of the term “firefighter,” relating to the Firefighter Cancer Health Care Benefit Plan, to include certain non-residents of the state. A Senate amendment added South Carolina State Fire for the purpose of fire protection, added a retroactivity provision to apply as of July 1, 2021, and added that the diagnosis must occur within 10 years of employment separation. The House Labor, Commerce, and Industry Committee amended the bill by adding the provisions of the Ten-Year Energy Transformation Act Bill (H. 5118) and gave the bill a favorable report. S. 728 is pending second reading on the House calendar.

Veterans’ Cemeteries — H. 4953. This bill amends Section 25-11-80 to remove residency requirements for a veteran to qualify for a plot in a state veterans’ cemetery. The Department of Veterans Affairs will no longer be able to waive the residency requirement as it has been eliminated. This means that veterans or their immediate family members only need to qualify for burial at a state veterans’ cemetery with a veterans’ honorable discharge. The Senate Family and Veterans’ Services Committee gave the bill a favorable report, and H. 4953 is pending second reading on the Senate calendar.

Executive Office of Health and Policy — S. 915. A House Judiciary subcommittee struck all language in S. 915 and inserted the language from H. 4927, which has already passed the House. This language would create the Executive Office of Health and Policy and require a Secretary to lead the office in developing a comprehensive State Health Plan, among other things, for public health services provided by the component departments housed within the office which include: the Department of Health Financing; the Department of Public Health; the Department of Aging; the Department of Intellectual and Related Disabilities; and the Department of Behavioral Health and Substance Abuse Services. The component departments would be headed by a department director appointed by the Secretary with the advice and consent of the Senate. The Secretary must also develop a budget in coordination with each component department constituting a separate program area. 

The bill would also strike the Departments of Aging, Alcohol and Other Drug Abuse Services, Disabilities and Special Needs, Health and Human Services, Mental Health, and Public Health from the list of departments in the executive branch of state government and add the “State Office of the Secretary of Public Health and Policy.” Additionally, H. 4927 outlines what is to occur to in specific agencies upon the effective date of the act, including who is to serve as interim department directors of their respective departments within the Executive Office of Health and Policy, among other items of business. The South Carolina National Guard may be activated or deployed by an order of the Governor to help enforce any restrictive measures or quarantines ordered under the provisions of the bill. The requirement that sheriffs and constables assist the department during a state of emergency may only be authorized by the Governor. The House Judiciary Committee adopted the subcommittee amendment and further amended the bill to provide that only the Governor can order a quarantine before giving S. 915 a favorable report, as amended. S. 915 is pending second reading on the House calendar.

Voter Qualifications — S. 1126. This joint resolution would amend the South Carolina Constitution to clarify that only a citizen of the United States and of South Carolina who is at least 18 and properly registered is entitled to vote. The House Judiciary Committee gave S. 1126 a favorable report, and the bill is pending second reading on the House calendar.

Telecommunicator CPR Training Law — H. 4867. This bill would require all 911 telecommunicators who provide dispatch for emergency medical conditions to be trained in high-quality telecommunicator CPR. The bill also protects local governments from potential liability under 23-23-45(D). A Senate Judiciary subcommittee amended H. 4867 to include recklessness and intentional misconduct to the list of exclusions from liability protection for the state, political subdivisions, and telecommunicators that provide dispatch for emergency medical conditions and have completed the training. The subcommittee then gave the bill a favorable report, as amended, and H. 4867 will be on the next full committee’s agenda.

Veterans’ Trust Fund Board of Trustees — S. 1276. This Joint Resolution suspends the provisions of Act 58 of 2023, relating to the Board of Trustees for the Veterans’ Trust Fund of South Carolina, until June 1, 2026, to allow the members to fulfill their unexpired terms. The Senate gave S. 1276 second reading and third readings and sent the resolution to the House.

View/Download Full Text for Newly-Introduced Legislation

You can also go to www.scstatehouse.gov and click on "Legislation," then "Introduced Legislation."

Note: If you would like to offer comments to the SCAC staff, please call us toll-free at 1-800-922-6081, fax to (803) 252-0379, or send an email.

Senate Bills

S. 1282 (Sen. Verdin) — Resolves for the continued examination and implementation of best practices toward recovery from the opioid crisis through strengthening the patient and health care provider relationship and making new potential treatments available upon Food and Drug Administration approval to South Carolinians.

House Bills

H. 5458 (Regulations and Administrative Procedures Committee) — Approves regulations of the Department of Health and Environmental Control (DHEC), relating to standards for licensing ambulatory surgical facilities, designated as Regulation Document Number 5264, pursuant to the provisions of Article 1, Chapter 23, Title 1., pursuant to the provisions of Article 1, Chapter 23, Title 1.

H. 5459 (Regulations and Administrative Procedures Committee) — Approves regulations of DHEC, relating to minimum standards for licensing hospitals and institutional general infirmaries, designated as Regulation Document Number 5265, pursuant to the provisions of Article 1, Chapter 23, Title 1.

H. 5466 (Reps. Bailey, Hardee, Schuessler, Brewer and Lowe) — Requests that the Department of Environmental Services' Division of Coastal Management take certain actions to improve the timeliness of coastal zone permitting and certification processes.

H. 5468 (Reps. Hardee, Schuessler and J.E. Johnson) — Adds Section 27-1-80 to provide that a property owner may request the immediate removal of a person unlawfully occupying a residential dwelling and provides for a complaint form.

H. 5469 (Reps. Hardee, J. E. Johnson and Schuessler) — Adds Article 4 to Chapter 67, Title 15 to abolish the doctrine of adverse possession, repeals Sections 15-67-210 through 15-67-260 relating to adverse possession, and repeals Article 3 of Chapter 3, title 15 relating to actions for recovery of real property.

H. 5470 (Reps. Pope, Guffey, Lawson, M.M. Smith, T. Moore, B.L. Cox, Forrest, Sessions, Gilliam, Mitchell, B. Newton, B.J. Cox and Moss) — Amends Section 44-53-370, relating to controlled substance prohibitions, to create criminal penalties associated with the intentional or unintentional exposure of first responders to fentanyl or fentanyl-related substances in the course of performing official duties, with exceptions.

H. 5471 (Rep. Beach) — Adds Article 18 to Chapter 3, Title 23 to allow local law enforcement agencies to enter into memorandums of understanding with federal agencies to enforce immigration laws.