January 23, 2026

The General Assembly’s second week of session featured significant activity in both chambers. The House continued hearing budget requests from state agencies while also holding subcommittee meetings on several election and judicial election reform bills. House leadership has announced earmarks in the form of member-directed projects will return in this year's budget, and SCAC will report more once we learn if the Senate will follow suit. The House Ways and Means Committee will debate the budget the week of Feb. 16, and the House will debate the budget on the floor the week of March 9.

The Senate spent most of the week on the floor debating the DUI reform bill. The Senate Finance Committee held its first meeting of the year, advancing several bills relevant to counties, including an increase in the homestead exemption. Finally, a Senate Transportation subcommittee convened to begin preliminary discussions on a S.C. Department of Transportation (SCDOT) modernization bill. This comprehensive bill would, among numerous other items, allow for the voluntary transfer of certain nonessential roads from SCDOT to local governments. These bills and more are discussed in this week’s Friday Report.

BILLS OF DIRECT INTEREST TO COUNTIES

Revenue, Finance and Economic Development

Homestead Exemption 

S. 768, as introduced, would increase the homestead exemption from $50,000 to $100,000 and lower the age requirement to 60.

Legislative Commentary: During the homestead exemption debate, members of the Senate Finance Committee began a broader discussion of property taxes, with some members saying the days of reimbursements for things like the homestead exemption and manufacturing property exemption need to end soon and that the General Assembly needs to stop “subsidizing” local governments.

Status: SCAC staff testified in support of the bill at subcommittee while asking that the bill be amended to add a residency requirement. The Finance Committee amended the bill to add a five-year South Carolina residency requirement beginning in property tax year 2026-27, while grandfathering in those who currently reside in the state. The amendment also keeps the age requirement at 65 (instead of 60) but increases the exemption to the first $150,000 (instead of $100,000). Lastly, the amendment gives counties the authority to further increase the exemption through ordinance, but any taxes not collected from the extra increase would not be eligible for reimbursement from the Trust Fund for Tax Relief. The bill, an SCAC Policy Position, is pending second reading on the Senate calendar.

Accommodations Tax

H. 3876 would update the process of collecting and remitting accommodations taxes, with an emphasis on providing guidance when third-party platforms (“intermediaries”) or other online booking services are involved. Third parties would be required to collect and remit state and local accommodations taxes if they facilitate a booking unless a professional property company (“merchant of record”) is involved. In 2025, the House amended the bill by striking Section 8, which included a provision that would have required the Department of Revenue to collect and administer the accommodations taxes. The result is that the taxes now would be remitted directly to local governments.

Status: The House gave the bill a third reading, sending it to the Senate.

Continuing Resolution

S. 769 would grant continuing authority to pay the expenses of state government if the 2026-27 fiscal year begins without the General Assembly enacting a budget.

Status: The Senate Finance Committee gave S. 769 a favorable report, and the Senate gave second and third readings to the resolution, sending it to the House.

Public Safety, Judicial and Corrections

Mental Health Transport

S. 299 would extend the time a required certificate is valid for a hospital or mental facility that needs to transport a person likely to cause serious harm to himself or others, because of a natural disaster or some other life-threatening condition. The bill also would permit, when appropriate based on the patient’s condition, a friend or relative to transport the patient.

Status: A Senate Medical Affairs Subcommittee gave S. 299 a favorable report, and the bill will be on the next full committee agenda.

Land Use, Natural Resources and Transportation

University Campus Events Zoning

S. 832 would prevent a county or municipality from interfering with land use approvals for events held on the campus of a state-supported institution of higher learning based on zoning ordinances or land use classifications. However, the bill would not limit a county’s or municipality’s authority to enforce applicable safety laws.

Status: The bill was introduced earlier this week then quickly placed on a Senate Family & Veterans’ Services Subcommittee agenda. It received a favorable report in the subcommittee and will be sent to the Senate Family & Veteran’s Affairs Full Committee. 

Protection of Monuments and Memorials

S. 508 would prohibit a local government from relocating, removing or disturbing certain monuments and memorials. Any county or municipality that violates the prohibition would lose all disbursements from the Local Government Fund until the violation is corrected.

Status: Last week, SCAC testified in opposition to S. 508 as a clear example of taking away local control. After a lengthy discussion by the Senate Finance Committee this week, the committee referred the bill back to subcommittee for more work to address potential unintended consequences. 

County Government and Intergovernmental Relations

Candidate Filing

H. 3557 would shorten the candidate filing period from March 30 to March 25.

Status: A Senate Judiciary subcommittee amended the bill to make the effective date Jan. 1, 2027, and gave the bill a favorable report, as amended. It will be on the next full committee agenda.

Political Parties and Primaries

H. 3556 would authorize the state executive committee to hear protests for partisan county officers, partisan less than county officers (for example, a partisan-elected school board member), and partisan municipal officers. The state executive committee also would be permitted to require a surety bond of no more than $750 for the election protest.

Status: A Senate Judiciary subcommittee gave H. 3556 a favorable report as amended, and the bill will be on the next full committee’s agenda.

Commercial Property Assessed Clean Energy

S. 256 would authorize local governments to establish commercial property assessed clean energy and resiliency (C-PACE) programs to ensure that owners of agricultural, commercial, industrial, and multifamily residential properties can obtain low-cost, long-term financing for improvements by freely and willingly agreeing to have an assessment levied on their properties.

Status: Members of the Senate debated the bill Tuesday, but S. 256 ultimately failed to receive the needed votes for a second reading.

DHEC Restructuring

H. 4189 would conform various statutes to Act 60 of 2023 and repeal certain sections, all related to the former Department of Health and Environmental Control (DHEC) into the Department of Public Health and the Department of Environmental Services.

Status: The House gave H. 4189 a third reading and sent the bill to the Senate.

U.S. Produced Iron and Steel

H. 4709 would require a public entity entering a contract for a public works project or for the purchase of materials for a public works project to include a requirement that any iron or steel product permanently incorporated in project be produced in the United States. 

Status: The bill received a favorable report from a House Labor, Commerce and Industry subcommittee and will be on the next full committee’s agenda.

U.S. Space Force

H. 4586 would include members of the Space Force under the definition of “Members of the Armed Forces of the United States” for purposes of absentee voting, the “South Carolina Uniform Military and Overseas Voters Act,” absences in military service, and the “Military Parent Equal Protection Act.”

Status: H. 4586 received a favorable report from a House Medical, Military, Public and Municipal Affairs subcommittee and will be on the next full committee’s agenda.

OTHER STATEWIDE BILLS OF INTEREST

DUI Reform

As passed by the Senate Judiciary Committee, S. 52 would reform the penalties for people convicted of driving under the influence. Those convicted of a second offense or more would be required to carry a surety and have a certificate of financial responsibility (SR-22) filed by their insurance company.  This week, the Senate began debating the bill on the floor, adopting the committee amendment and debating several others. The Senate will return Tuesday, Jan. 27 to continue debating S. 52.

Income Tax Reform

H. 4216, which was passed by the House in 2025, would change South Carolina’s individual income tax structure by reducing the tax rate over time until it reaches 1.99%. The tax rate for 2026-27 would be 1.99% on taxable income up to $30,000 and 5.39% on $30,000 and over. The Senate Finance Committee gave H. 4216 a favorable report, and the bill is pending second reading on the Senate calendar.

Legislative Expenses

S. 779 would give all members of the General Assembly a legislative expense allowance of $1,000 per month. The Senate Finance Committee gave S. 779 a favorable report, and the Senate proceeded to give second and third readings to the resolution before sending it to the House.

Regulations for Electronic Smoking Devices

After adjourning debate last year, the House took up S. 287 this week. This bill would require all electronic nicotine products sold in South Carolina to be registered with the Attorney General and listed in a public directory verifying federal authorization or review status. It would also restrict youth-appealing marketing and packaging, impose new fees and penalties, and ban the sale of any unlisted or noncompliant products. After much debate and adopting amendments, the House gave the bill second and third readings. The bill will now return to the Senate for consideration of the House amendments.

Abortion-Inducing Drugs

H. 4760 would establish crimes and penalties for the use of abortion-inducing drugs, such as mifepristone and misoprostol, with exceptions. The House Judiciary Committee gave H. 4760 a favorable report as amended, and it will be sent to the House.

Judicial Elections

S. 336 would require the General Assembly to meet in joint session on the first Wednesday of March for the election of judges. The Judicial Merit Selection Commission would be required to release its report on the qualifications of its nominees to the General Assembly no fewer than 23 days before the date the General Assembly is to conduct the election. The House Judiciary Constitutional Laws subcommittee gave S. 336 a favorable report.

Judicial Selection Reform

H. 4755 would, among other items, require the members of the Judicial Merit Selection Commission to be appointed by the governor. The Commission also would be staffed by the Governor’s Office. The House Judiciary Constitutional Laws subcommittee gave H. 4755 a favorable report.

See below links for summaries of legislation introduced this week.

House Bills

Senate Bills

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.

Registration is open for 2026 Counties Connect: A Legislative Action Day. Join us Wednesday, Feb. 18, in Columbia! It's a great opportunity for county officials to engage directly with state legislators and advocate for their communities.

The day includes a legislative briefing, a visit to the State House and an evening reception with General Assembly members at the Palmetto Club.

Institute of Government classes and the Council Chairperson's Workshop will be held Thursday, Feb. 19, in conjunction with the event.

The hotel deadline to make sure you get the SCAC rate is Jan. 28. We have two room blocks, at the Hilton Columbia Center and the Hampton Inn Columbia-Downtown Historic District.