February 23, 2024

The Senate debated several bills this week and passed S.915, which creates the Executive Office of Health and Policy. A Senate Judiciary subcommittee met Wednesday and continued discussions on numerous bills regarding selection of judges. Although most House of Representatives members observed a prescheduled furlough week, the Ways and Means Committee met Tuesday and Wednesday to finalize provisions on the state budget before sending the FY24-25 appropriations bill to the House floor for debate.

Thank you to all the county officials who attended Counties Connect events Tuesday night and Wednesday. Your presence at the State House and conversations with your delegation members were greatly appreciated!

Highlights of the budget and bills of interest to counties are discussed below.

Budget — H. 5100. The House Ways and Means Committee passed H. 5100 out of committee Wednesday. The House is scheduled to debate the bill on the floor during the week of March 11. The Committee increased funding to the Local Government Fund (LGF) by $13,872,845 statewide. This represents full funding to the LGF under the statutory formula.

Items the Ways and Means Committee continued to fund this year included:

• $12 million for the Rural County Stabilization Fund;
• $750,000 for PTSD treatment for first responders;
• $3 million to Labor Licensing and Regulation for the V-SAFE Fund;
• $11.5 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 promotions (see proviso 49.1);
• $4.7 million in additional funding to the Rural Infrastructure Authority for the Water Quality Revolving Loan Fund;
• $30 million to the Office of Resiliency for the Disaster Relief and Resilience Reserve Fund;
• $13 million in additional money to the Conservation Bank for grant funding;
• $7.9 million in additional money to the State Election Commission for election operations; and
• $10 million in additional money to the Department of Commerce for the Closing Fund.

The Ways and Means Committee also funded the following new items:

• $41.1 million to cover a $1,000 base pay increase for state employees making less than $66,667 and a 1.5% base pay increase for state employees making more than $66,667;
• $107 million to cover the state’s share of a projected 3.7% increase in premiums for the State Health Plan (see proviso 108.6);
• $200 million to the Department of Transportation (SCDOT) for bridge modification on interstate and primary highways;
• $50 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 clean up of uncontrolled hazardous waste sites;
• $1 million to the Department of Administration for first responder 800MHz communication modernization;
• Over $27 million in recurring funds to the Department of Veterans’ Affairs for veteran homes;
• $1 million for the Veterans’ Trust Fund; and
• $3 million to the Attorney General’s (AG) Office for a new Crime Victim Assistance “SAVS” Program.

Please thank the members of the House Ways and Means Committee for keeping their promise to counties and working to return much-needed funding to county governments throughout the state!

In addition to the provisos that remain in the budget from last year, the Ways and Means Committee adopted the following new or amended provisos of interest:

31.lhd. DPH: Local Health Departments. Provides that counties will be relieved of contribution requirements for salary, fringe benefits, and travel reimbursements to local health departments and appropriates $5,430,697 for these expenses. Counties must provide all other local health department operating expenses in an amount at least equal to amounts appropriated in FY 1981. 

49.1. PRT: Tourism and Promotion. Amends the existing proviso to change the Grand Strand Tourism Region’s funding amount from numerical disbursements to percentages.

55.dsef. DES: Dam Safety Emergency Fund. Directs the DES to establish the Dam Safety Emergency Fund. DES must deposit up to $250,000 at the beginning of each fiscal year to be used for emergency actions and protection of life and property. Funds may be carried forward and used for the same purpose in subsequent fiscal years.

55.pfas. DES: PFAS Pilot Program.  Requires DES to establish the Per- and polyfluoroalkyl substances (PFAS) Fund and PFAS Removal Pilot Program to evaluate and facilitate the implementation of emerging technologies to remove PFAS compounds from wastewater.

55.irb. DES: Innovative Reusable Byproduct Pilot Program. Establishes the Innovative Reusable Byproduct Pilot Program from funds appropriated to DES in an effort to determine whether innovations in manufacturing, food production, timber and other similar industries can provide new opportunities to use byproducts that would otherwise require management as solid waste. The Department must submit a program report to the General Assembly by June 30, 2025.

58.os. ALC: Office Space for Hearing Officers. Requires that counties and municipalities must provide a space for administrative hearings for Office of Motor Vehicle hearings within their existing facilities and to include utilities.

61.7. INDEF: Defense of Indigents Civil Application Fee. Amends the existing proviso to change the recipient of the paid assets for those insufficient to employ private counsel from the State Treasurer’s Office to the Commission on Indigent Defense. Requires the Clerk of Court to collect the $40 Civil Application Fee and remit it to the State Treasurer. This proviso states this fee must be separate from the application fee.

73.sbo. ORS: SC Broadband Office and SC Digital Opportunity. Establishes the SC Broadband Office and SC Digital Opportunity department within the Office of Regulatory Staff. Directs the SC Broadband Office to coordinate with various entities to enhance broadband access, prioritize rural areas, publish information on funding programs, and create a stakeholder process to address challenges and propose legislative actions. This proviso directs the SC Digital Opportunity department to serve as the digital equity planning body and allows them to handle confidential information.

73.bis. ORS: SC Broadband Map and Internet Service Provider Data. Creates a county-by-county broadband mapping plan and requires broadband entities to provide deployment data bi-annually to the SC Broadband Office.

100.16. ADJ: Natural Disaster FEMA Match. Deletes the existing proviso that authorized the SC Emergency Management Division (EMD) to use existing fund balances to provide the non-federal cost share to state and local government entities for work associated with Hurricane Irma and Hurricane Florence that is eligible under FEMA Public Assistance Program.

100.saga. ADJ: STORM Act Grant Authorization. Authorizes EMD to accept grant funding provided by the federal “Safeguarding Tomorrow through Ongoing Risk Mitigation Act” and establish and manage the loan fund in accordance with the act. The proviso was requested by the Adjutant General’s Office.

101.vhf. VET: Veterans’ Home Fund. Allows the Department of Veterans’ Affairs to establish an interest-bearing fund to be used for operation of State Veterans Homes and allows expenditures from the fund to include operations, deferred maintenance, capital projects, and ordinary repairs.

102.1. ELECT: County Boards of Voter Registration and Elections Compensation. Amends the existing proviso to update compensation for each County Boards of Voter Registration Elections Commissioners from the rate of $1,500 annually to $2,500 annually and limits each county to $22,500 per year. Funds appropriated for this purpose will also be exempt from budget reductions.

102.2. ELECT: Elections Managers and Clerks Per Diem. Amends the existing proviso to update the per diem for managers and clerks from $75 to $100 for the day of work. The State Election Commission may adjust the per diem of $100 for the managers and clerks of the statewide election to a higher level only to the extent that the appropriation for the statewide election is sufficient to bear the added cost of increasing the per diem and the cost of the statewide election. Each county is also required to provide a per diem of at least $25 for the day of work to managers and clerks of state and county elections.

102.cdv. ELECT: County Director Vacancy. 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.

103.rf. RFAO: Revenue Forecast. Allows the SC Revenue and Fiscal Affairs Office (RFA) to extend the delivery of the November revenue forecast.

105.4. SFAA-AUD: Annual Audit of Court Fees and Fines Reports. Amends the existing proviso to update the amount required to be spent to conduct audits to no more than $300,000.

106.2. SEB: Suspend SCRS & PORS Employer Contribution Rate Increase. Deletes the existing proviso that suspended the increase in the employer contribution rate pursuant to Section 9-1-1085, relating to employer and employee contribution rates, and Section 9-11-225, relating to employer and employee contribution rates, for Fiscal Year 23-24 and directs that the contribution rate for SC Retirement System (SCRS) and the Police Officers Retirement System (PORS) shall increase by 1% from the Fiscal Year 22-23 rates set in Act 239 of 2022.

108.6. PEBA: State Health Plan. Amends the existing proviso relating to employer premium increases to update the plan year reference. SCAC staff anticipates this number to rise prior to the passage of the FY 24-25 budget.

108.10. PEBA: Covered Contraceptives. Deletes the existing proviso that directs that the State Health Plan shall not require co-pays/deductibles for contraceptives as this provision was previously codified in the Code of Laws.

108.12. PEBA: COVID-19 Return to Work Extension. Deletes the existing proviso that stated the earnings limitation does not apply to retired SCRS or PORS members who return to covered employment to participate in the state’s public health preparedness and response to COVID-19.

109.ptc. DOR: South Carolina Legislative Tax Credit. Directs the Department of Revenue (DOR) to distribute $500 million of the Homestead Exemption Fund balance to counties to be used to provide property tax credit for owner-occupied property in the current fiscal year against county operating taxes. The funds are to be distributed in the proportion that the population of the county is in comparison to the total population of the state. Population data must be as determined in the decennial U.S. Census and the most recent update to that data as determined by RFA. The credit is an amount determined by dividing the total estimated revenues credited to the county by the number of parcels in the county eligible for the credit. Counties are required to reflect this credit as a separate line on the property tax bill with the phrase “South Carolina Legislative Tax Credit” and the amount of the credit. DOR shall provide by July 31, 2024, an estimate of the amount of funds to be disbursed to each county and shall disburse these funds no later than Dec. 1, 2024. By March 31, 2025, counties must notify DOR of the total amount of these credits issued and return any portion of the funds received in excess of the amount necessary to provide this credit. DOR shall have the authority to audit this credit.

113.2. AS-TREAS: Quarterly Distributions. Amends the existing proviso relating to quarterly distributions of the amount appropriated for the LGF to update the fiscal year reference.

117.126. GP: School Resource Officer Critical Needs. Amends the existing proviso to provide that any Class 1 Law Enforcement Officer who retired under PORS on or before Dec. 31, 2023, may return to employment with a public school district as a critical needs school resource officer without affecting the monthly retirement allowance that they are receiving from PORS.

117.142. GP: Employee Compensation. Amends the existing proviso to provide a $1,000 base pay increase for state employees making less than $66,667 and a 1.5% base pay increase for state employees making more than $66,667.

117.145. GP: Mental Health Transportation. Amends the existing proviso relating to the Department of Mental Health’s Alternative Transportation Program to update the reporting deadline regarding the implementation of the program to June 30, 2025.

117.149. GP: Homestead Exemption Fund. For Fiscal Year 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.

117.152. GP: Disinfection and Cleaning. Amends the existing proviso to update references to DHEC to reflect the new Department of Public Health (DPH).

117.pla. GP: Polling Locations and Availability. Directs that if a county library denies a request by the County Elections Board to use available space at the library as a polling location, then the county shall have a portion of its State Library, Aid to County Libraries funds withheld and directs the Executive Director of the State Election Commission to notify the State Library and legislative delegation of any refusal.

Low Income Housing Property Tax Exemption Fix — S. 1017. This bill addresses a potential loophole created by the passage of 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-income 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 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 100% 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 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. A Senate Finance subcommittee gave S. 1017 a favorable report. 

Auditor’s Endorsement on Deeds — H. 3608. This bill removes the requirement that county auditors endorse deeds for conveyance for real property but permits them to do so either before or after recording the deed, an SCAC policy position. All conveyances of real estate that were recorded by a clerk of court or register of deeds of any county that meet the requirements of Section 30-5-20 but are without the endorsement of the county auditor will be valid and binding.

A Senate Finance subcommittee gave H. 3608 a favorable report. 

Income Tax Deductions for Firefighters/Law Enforcement — S. 969. This bill increases the individual income tax subsistence allowance deduction for law enforcement officers, full-time firefighters and emergency medical service 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 RFA annually such that the total revenue loss does not exceed an aggregate limit of $3.1 million per year in total, which remains unchanged. A Senate Finance subcommittee gave the bill a favorable report.

Abandoned Buildings Tax Credit — S. 1021. This bill increases the tax credit for abandoned buildings from $500,000 to $700,000 in a tax year. It also extends the sunset date for the tax credit to Dec. 31, 2035. A Senate Finance subcommittee gave the bill a favorable report.

Perpetual Recreational Trail Easement — H. 3121. This bill provides an income tax credit to a property owner who encumbers their property with a perpetual recreational trail easement held by a municipality or county within the state or by a Land Trust Alliance-accredited land trust. The easement must be recorded with the register of deeds and must include an agreement with the municipality, county, or land trust. Special purpose tax districts are also included in the list of entities that can hold the easement. A Senate Finance subcommittee adopted a technical amendment to the bill this week to update that the legislation applies to tax years beginning after 2023 and sunsets the provisions in 2029. H. 3121 received a favorable report, as amended, and will be on the agenda at the next meeting of the full Senate Finance Committee.

Cell Phones in Prisons — H. 4002 and S. 1095. As passed by the House, H. 4002 provided it is unlawful for an inmate under the jurisdiction of the Department of Corrections to possess a telecommunication device unless authorized by the director. The provisions of the bill also applied to county detention centers and jails, an SCAC policy position. A Senate Judiciary subcommittee amended the bill by removing the language applying the prohibition to county detention centers and jails over concerns regarding uniformity in procedures regulating contraband. The Senate adopted the amended version excluding detention centers and jails and gave the bill second reading. H. 4002 is now pending third reading on the Senate calendar.

S. 1095 was introduced to prohibit cell phones in county detention centers and jails and to provide for penalties. The bill was referred to the Senate Corrections and Penology Committee.

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 Senate Judiciary Committee gave the consolidated S. 845 a favorable report, as amended. S. 845 is pending second reading on the Senate calendar.

Transfer on Death Deeds — S. 755. This bill provides that any owner of a vehicle, mobile home, watercraft, outboard motor, or any similar personal property for which legal titles are issued and administered by the Department of Motor Vehicles or Department of Natural Resources may establish a Transfer on Death (TOD) designation upon any such title or registration. The TOD designation on any titled personal property shall pass, upon the death of all owners, to the TOD beneficiary or beneficiaries pursuant to the provision and is effective by reason of this statute, and such transfer is not subject to estate administration under Title 62 of the SC Probate Code. The Senate Judiciary Committee gave the bill a favorable report, and it is pending second reading on the Senate calendar.

Firefighter Cancer Healthcare — S. 728. As initially drafted, the bill (companion bill H. 4680) revises the definition of the term “firefighter,” relating to the Firefighter Cancer Health Care Benefit Plan, to provide the term includes certain non-residents of the state. A Senate Labor, Commerce and Industry, Property & Occupation subcommittee amended the bill by removing the residency requirement, adding South Carolina State Fire for the purpose of fire protection, and adding a retroactivity provision that takes effect on July 1, 2021. The subcommittee gave S. 728 a favorable report, as amended, and the bill will move forward to the full committee for consideration.

Wireless Provider/Law Enforcement Location Information — S. 235. This bill would require that, upon request of a law enforcement agency, a wireless telecommunications carrier shall provide call location information concerning the telecommunications device of a user to the law enforcement agency to respond to a call for emergency services or in an emergency situation that involves the risk of death or serious physical harm. Further, the bill would provide that a civil or criminal action may not be brought against a wireless service provider under this section under certain circumstances and would require the South Carolina Law Enforcement Division (SLED) to obtain contact information from wireless service providers to facilitate a request from a law enforcement agency. The Senate Judiciary Committee adopted a technical amendment and gave the bill a favorable report, as amended. S. 235 is pending second reading on the Senate calendar.

Law Enforcement Access to Electronic Records — S. 954. This bill allows 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 are authorized to issue subpoenas to compel disclosure of these communications upon showing that the requested material is relevant to an ongoing criminal investigation. The Senate Judiciary Committee amended the bill by providing that nothing in the bill expands the obligations of electronic communications service providers. The Committee gave the bill a favorable report, as amended, and it is pending second reading on the Senate calendar.

First Responder Post Traumatic Stress Disorder (PTSD) — S. 251. This bill would exempt first responders seeking compensation from workers’ compensation insurance (“mental-mental”) from having to establish by a preponderance of the evidence that the conditions leading to stress, mental injury, or mental illness stemmed from extraordinary or unusual conditions and not the normal conditions of employment. The bill would also define the terms “first responder,” “significant traumatic experience or situation,” “witnessing,” and “grievous bodily harm.” Further, the bill would provide that a first responder who sustains stress, or mental injury, unaccompanied by a physical injury arising out of and in the course of employment, shall be concluded to have sustained injury by accident under the following conditions:

1. The injured is employed as a first responder, and the impairment causing the stress, mental injury, or mental illness, is medically diagnosed as PTSD, without regard to whether the experience or situation was “extraordinary or unusual” in comparison to the normal working conditions of the first responder’s employment;
2. The first responder participates in and receives clinical care through the South Carolina Law Enforcement Assistance Program, the South Carolina First Responders Assistance and Support Team, or their successor programs;
3. There is an incapacity to work as determined by the treating physician;
4. When the capacity for work resulting from an injury is “total,” the employer shall pay, or cause to be paid, a weekly compensation equal to 66.66% of the average weekly wages, but not less than $75 per week so long as the amount does not exceed the average weekly wages; if this amount does exceed the average weekly wages, the injured first responder may not be paid, each week, less than his average weekly wages;
5. The injured first responder may not be paid more each week than the average weekly wage in this state for the preceding fiscal year;
6. In no case may the period covered by the compensation exceed 500 weeks, except as provided in section 42-9-10 (C);
7. The injured first responder is not entitled to indemnity under Section 42-9-10, or Section 42-9-30, unless the incapacity for work resulting from any injury under this section is a total incapacity to work.
8. Stress or mental injuries unaccompanied by physical injury are not considered compensable if they result from any event, or a series of events, which are incidental to normal employer-employee relations; and
9. Stress, mental injury, and mental illness alleged to have been aggravated by a work-related physical injury may not be found compensable unless certain elements are met.

Although SCAC opposes reducing the standard for mental-mental claims currently in statute, this bill represents the compromise reached by stakeholders, including SCAC. The Senate Judiciary Committee amended S. 251 to update the effective date to Jan. 1, 2025, and gave the bill a favorable report, as amended. S. 251 is pending second reading on the Senate calendar.

Executive Office of Health and Policy — S. 915. This bill 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 who is 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, S.915 outlines what is to occur 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.

There were four amendments taken up on the floor and each passed. Amendments included:

• Adding technical and clean-up language throughout the code;
• Defining the State Health Services Plan and distinguishing it from the State Health Plan under the Public Employees Benefit Authority (PEBA);
• Directing 11% of the revenue generated by an excise tax on alcohol by the drink for on-premises consumption at licensed establishments to be credited to a fund separate from the general fund of the state and requiring the State Treasurer to allocate this revenue to the Department of Health Financing on a quarterly basis for reimbursement to counties for services related to the rehabilitation of people with substance or alcohol use disorders; and
• Requiring the Department of Public Health to evaluate at least twice a year third-party transportation-related contracts.

The Senate took up S. 915 on special order and passed it with the amendments. The bill was sent to the House.

Unclaimed Veteran’s Remains — H. 4376. This bill would require coroners to release human remains that have been identified and determined to be those of an unclaimed veteran to a funeral home, funeral establishment, or mortuary for disposition. A Senate Family and Veterans’ Services subcommittee gave H. 4376 a favorable report, and the bill will be on the next full committee’s agenda.

Veterans’ Trust Fund Board Authority — H. 4928. This bill would allow the Veterans’ Trust Fund of South Carolina Board of Trustees to fundraise and make disbursements from the trust fund in support of fundraising activities. A Senate Family and Veterans’ Services subcommittee gave H. 4928 a favorable report, and the bill will be on the next full committee’s agenda.

SCAC would like to thank our legislators for such a warm welcome at the State House on Wednesday. We appreciate all our county officials who demonstrated the statewide strength of local leaders at Counties Connect 2024. See more photos in the gallery online.

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. 1078 (Sens. Malloy and Talley) — Amends Section 44-61-100, relating to exemptions for emergency medical services, to allow firefighters to transport patients in vehicles other than ambulances when firefighters arrive before emergency medical service providers and there is a patient suffering from a condition requiring an emergency response.

S. 1083 (Sen. Talley) — Amends Section 31-17-320, relating to license requirements for mobile homes, to provide separate requirements for the issuing of a license for a mobile home to a licensed dealer.

S. 1084 (Sen. Allen) — Adds Section 43-21-210 to establish the senior call-check service and notification program within the Department on Aging.

S. 1085 (Sens. Jackson and Adams) — Amends Section 15-41-30, relating to property exempt from attachment, levy, and sale, to provide that a debtor's interest in real property used as a primary residence may not be sold if the action was instituted by a homeowners' association attempting to collect unpaid dues, fees, or fines.

S. 1088 (Sens. Young, Hutto and Massey) — Amends Section 2 of Act 205 of 2016, relating to the exemption of private, for-profit pipeline companies from certain rights, powers, and privileges of telegraph and telephone companies that otherwise are extended to pipeline companies, to extend the sunset provision to June 30, 2026.

S. 1089 (Sens. Kimbrell, M. Johnson, Loftis, Talley, Adams and Fanning) — Amends Section 55-1-1, relating to the Division of Aeronautics, to transfer the Division from the State Fiscal Accountability Authority to the Department of Transportation to be governed by the Commission of the Department of Transportation.

S. 1095 (Sen. M. Johnson) — Adds Section 24-3-980 to provide that it is unlawful for an inmate under the jurisdiction of the Department of Corrections to possess telecommunications devices unless authorized by the director, to define the term "telecommunications device" and to provide penalties. The legislation would also apply to county detention centers and jails.