March 15, 2024

The House this week debated and gave second and third readings to the FY 24-25 Appropriations Act (H. 5100) and Capital Reserve Fund (H. 5101).  

The Senate met briefly in chamber and took up several bills of interest in committee and subcommittee meetings. A Senate Medical Affairs subcommittee met on Wednesday to take up S. 763, a bill that would alleviate the financial burdens placed on counties in the disposal of waste tires. The subcommittee carried the bill over due to last minute concerns from manufacturers. Please contact members of the Senate Medical Affairs subcommittee to express your support of passing this legislation and the detriment the failure to do so will continue to have on county finances. 

The budget and several other bills of interest to counties are discussed below. 

Budget — H. 5100. The House passed the FY 24-25 Appropriations bill, 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. SCAC staff appeared in front of a Senate Finance Budget subcommittee Thursday and requested the Senate also fully fund the LGF. 

Items the House of Representatives continued to fund this year include: 

• $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 House of Representatives also funded: 

• $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 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 cleanup 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 Office for a new Crime Victim Assistance “SAVS” Program. 

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

The House added or substantially amended the following provisos of interest this week during debate on the House floor:  

55.24. DES: Dam Repair Assistance Fund. This new proviso provides that a portion of the funds appropriated for System Upgrades beginning with the FY 2024-25 Appropriation Act are used to establish a Dam Repair Assistance Fund within the DES. The interest-bearing fund would be used for cost-sharing grants to correct dam deficiencies identified by DES for high-and-significant-hazard dams regulated under the Dams and Reservoir Safety Act. A grant of up to 75% of the total cost to correct the dam deficiency identified by DES may be paid from the fund. Funds may also be used by DES to administer and manage the grant program. Fund balances shall be carried forward from each prior fiscal year into the current fiscal year and used for the same purpose. System Upgrades appropriations remaining from the FY 23-24 Appropriation Act shall also be deposited into the Fund. DES shall draft policies, criteria, and guidance for the grant program by Oct. 15, 2024. This will be posted on the DES website. 

108.16. PEBA: PORS and SCRS Return to Work. The proviso was amended to state that the earnings limitation does not apply to compensation earnings during the current fiscal year if the compensation received by the retired member from the covered employer is for employment in a critical needs law enforcement position as determined by the Law Enforcement Training Council (LETC). This earnings limitation exception only applies to positions approved by the General Assembly for the fiscal year in response to a report listing positions of critical need that must be submitted by the LETC no later than Jan. 1. The LETC must also develop guidelines and curriculum for officers to be recertified. 

In addition to the provisos that remain in the budget from last year, the following new or amended provisos passed by the House Ways and Means Committee were adopted by the House in this year’s budget: 

117.149. GP: Homestead Exemption Fund. This new 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. As a result, under this proviso, the $500 million in the Fund would be released to counties and must be used as property tax relief. 

31.49. DPH: Local Health Departments. This new proviso 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 statewide. These funds and other state funds appropriated for county health units may, based on need, be used in either salary or travel categories. Counties must provide all other local health department operating expenses in an amount at least equal to that appropriated in FY 1981. 

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

55.21. DES: Dam Safety Emergency Fund. This new proviso 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. 

55.23. DES: PFAS Pilot Program. This new proviso requires DES to establish the per- and polyfluoroalkyl substances (PFAS) Fund and PFAS Removal Pilot Program to evaluate and implement emerging technologies to remove PFAS compounds from wastewater. 

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

58.2. ALC: Office Space for Hearing Officers. This new proviso requires that counties and municipalities 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. The existing proviso was amended 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. It 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. 

73.10. ORS: SC Broadband Office and SC Digital Opportunity. This new proviso establishes the SC Broadband Office and SC Digital Opportunity department within the Office of Regulatory Staff. It 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. 

73.11. ORS: SC Broadband Map and Internet Service Provider Data. This new proviso creates a county-by-county broadband mapping plan and requires broadband entities to provide deployment data biannually to the SC Broadband Office. 

100.16. ADJ: Natural Disaster FEMA Match. This update 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. 

100.24. ADJ: STORM Act Grant Authorization. This new proviso 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. 

101.4 VET: Veterans’ Home Fund. This new proviso 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. The existing proviso was amended to update compensation for each county Board of Voter Registration Elections commissioner 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. The existing proviso was amended 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. 

102.13. ELECT: County Director Vacancy. This new proviso 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. 

103.6. RFAO: Revenue Forecast. This new proviso 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. The existing proviso was amended to require that no more than $300,000 can be spent to conduct audits. 

106.2. SEB: Suspend SCRS & PORS Employer Contribution Rate Increase. This update 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 FY 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 FY 22-23 rates set in Act 239 of 2022. 

108.6. PEBA: State Health Plan. Amended to provide for an employer premium increase of 11.8% and a subscriber premium increase of 0% for the standard State Health Plan for Plan Year 2025. 

108.10. PEBA: Covered Contraceptives. This update deletes the existing proviso that prevents the State Health Plan from requiring 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. This update 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. 

109.19. DOR: South Carolina Legislative Tax Credit. This new proviso 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 proportion to the population of the county 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. Counties must notify DOR by March 31, 2025, 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. The existing proviso was amended 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. The existing proviso was amended 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 they are receiving from PORS. 

117.142. GP: Employee Compensation. The existing proviso was amended 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. The existing proviso was amended 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. 

117.152. GP: Disinfection and Cleaning. The existing proviso was amended to update references to the Department of Health and Environmental Control (DHEC) to reflect the new Department of Public Health (DPH). 

117.178. GP: Polling Locations and Availability. This new proviso 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, 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. 

Cell Phones in Prisons — H. 4002. As passed by the House, this bill provided that it is unlawful for an inmate under the jurisdiction of the Department of Corrections and county detention centers and jails to possess a telecommunication device unless authorized by the director. The Senate amended the bill to remove the language applying the prohibition to county detention centers and jails over concerns regarding uniformity in procedures regulating contraband. The Senate concurred in a House amendment naming this the “Captain Robert Johnson Act,” and H. 4002 will be enrolled for ratification. 

Cell Phones in County Detention Centers/Jails — S. 1095. This bill makes it unlawful for an inmate under the Department of Corrections to possess a telecommunications device unless authorized to do so by the director. The prohibition would also apply to county detention centers and jails, an SCAC policy position. A Senate Corrections and Penology subcommittee gave S. 1095 a favorable report, and the bill will be on the next full committee’s agenda. 

Judicial Merit Selection Commission Reform — S. 1046. As passed by the Senate Judiciary Committee, this bill terminates the current membership of the Judicial Merit Selection Commission (JMSC) and establishes new guidelines for the selection and appointment of nine non-legislator members to the JMSC. Under the bill, the General Assembly must hold a joint session to elect judges, and a candidate must receive a majority vote from each chamber. Finally, county legislative delegations must make recommendations for magistrate appointments to the Governor based on a weighted vote of the full legislative delegation of the county in which the magistrate appointee would serve. 

On Thursday the Senate continued debate on S. 1046 and offered several amendments to:  

• Clarify the selection process and establish term limits for the members of the JMSC;  
• Allow judicial candidates to seek more than one judicial vacancy;  
• Require the General Assembly to conduct a subsequent vote if no candidate receives a majority of the vote of members in each chamber; and  
• Prohibit members of the General Assembly from voting or asking for a vote for a candidate or future person, if they are a family member. 

The Senate then gave S. 1046 second reading, as amended, and the bill is pending third reading on the Senate calendar. 

Waste Tire Disposal — S. 763. This bill would remove the $150 per ton cap on tipping fees that a county may charge for recycling and disposal of waste tires, an SCAC policy position. The bill also would establish a stakeholder working group to explore opportunities for the end-of-life use of waste tires. A Senate Medical Affairs subcommittee on Wednesday carried the bill over due to last-minute concerns from manufacturers even though this bill represents language that all the stakeholders, including SCAC, agreed to after several meetings. Please contact members of the Senate Medical Affairs subcommittee to express your support of passing this legislation and the detriment the failure to do so will continue to have on county finances.  

Septic Tank Pilot Program — H. 4486. As passed by the House, this bill would allow DHEC to create a pilot program in designated areas of the state that would allow septic tank installers to conduct septic tank field evaluation tests for the department. Septic tank installers interested in participating in the pilot program would be required to register with DHEC, to hold a valid license that is deemed to be in good standing, and to receive written approval by the department. A Senate Medical Affairs subcommittee amended the bill to remove certain references to septic tank installers and to require those conducting evaluation tests to be DHEC-certified professional engineers. The subcommittee gave H. 4486 received a favorable report, as amended, and the bill will be on the next full committee’s agenda. 

Solid Waste Management Regulation (Solar Panels) — Doc. 5191. Pursuant to Act No. 119 of 2022, DHEC was directed to develop rules to guide all South Carolinians investing in, selling, installing, and using photovoltaic (PV) modules and energy storage system batteries in the management of end-of-life PV modules and energy storage system batteries on solar projects, and the decommissioning of solar projects exceeding 13 acres.  

This new regulation (R.61107.20: Solar Energy Systems) establishes registration requirements and provides that all large solar energy systems must have a decommissioning plan. This plan must address the removal of PV modules and accompanying equipment, procedures for the remediation of the land, and a requirement that solar companies provide financial assurances to address the cost of decommissioning before establishing such facilities in a county. This is an SCAC policy position.  

Regarding the statewide minimum amount required to satisfy financial assurances, an applicant who wishes to operate a large solar project exceeding 13 acres would need to provide a final decommissioning cost estimate (prepared by a third party) that details the cost of properly disposing of all components of a solar project and performing any required post-closure care. This should account for tipping fees, material loading costs, hauling costs, and labor to complete closure and restore the site to acceptable conditions. Local governments may also establish or retain financial assurance ordinances that are more stringent than the statewide minimum standards. A Senate Medical Affairs subcommittee gave the regulation a favorable report, and the regulation will be on the agenda at the next meeting of the full committee. 

Novel Vaccine Mandate — S. 975. This bill, the Medical Freedom Act, prohibits businesses, non-profit organizations, colleges, schools, and employers from mandating novel vaccines or gene therapy as a precondition for employment, entry into buildings and grounds, attendance, participation, or purchase or receipt of any products and services offered. Additionally, employers are prohibited from taking any adverse pre-employment or employment action against an individual who declines to receive a novel vaccine or gene therapy. An aggrieved employee has the right to apply for and receive unemployment benefits, as well as back pay, front pay, lost wages, consequential damages, emotional damages, court and litigation costs, and attorney fees. An employer who violates these provisions is guilty of a misdemeanor crime. 

Under the bill, county sheriffs and constables and city and town police officers and health officers may, instead of being required to, aid and assist the Department of Public Health to enforce and carry out any restrictive measures and quarantine regulations that may be prescribed during a state of public health emergency. The bill also identifies which products are indemnified as a covered countermeasure, for which the manufacturers and distributors are shielded from direct civil or criminal liability to consumers for personal injuries and damages resulting from the use of the product as determined by state or federal law. 

A Senate Medical Affairs subcommittee met this week to take further testimony and adopted several more amendments. One amendment adds employers of the state and political subdivisions to the list of groups that are prohibited from mandating novel vaccines or gene therapy. The subcommittee then gave the bill a favorable report, as amended, and S. 975 will be on the next full committee agenda. 

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. The Senate Labor, Commerce and Industry Committee adopted the subcommittee report to remove the residency requirement, add South Carolina State Fire for the purpose of fire protection, add a retroactivity provision to apply as of July 1, 2021, and add that the diagnosis must occur within 10 years of employment separation. The subcommittee gave S. 728 a favorable report, as amended, and the bill is pending second reading on the Senate calendar. 

Vaccination Discrimination Prevention Act — S. 965. This bill declares that neither the state nor any political subdivision, including school districts, may require a COVID-19 vaccine mandate for any employee or student and provides procedures to follow if a federal requirement will result in the forfeiture of federal funds for not requiring vaccination. The Department of Public Health and the Medical University of South Carolina will partner with state and local government employers to provide COVID-19 testing in lieu of vaccination to meet a federal requirement when allowed. The bill also extends unemployment benefits to employees who are fired for failure to comply with a vaccine mandate when an employer has no alternatives but to terminate the employee or forfeit federal funds. An employer may submit an affidavit to the Department of Employment and Workforce stating the employer is subject to a federal vaccine mandate if an employee is terminated for failure to be vaccinated. The Senate Medical Affairs Committee gave the bill a favorable report, and the bill is pending second reading on the Senate calendar. 

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.

House Bills

H. 5262 (Reps. Bailey, Hardee, Brittain, McGinnis, Guest and Schuessler) — Amends Section 12-6-3670, relating to the credit for excess premium paid for property and casualty insurance, to raise the maximum amount of the credit allowed for a tax year from $1,250 to $1,900. 

H. 5263 (Reps. Rose and Mitchell) — Adds Chapter 8 to Title 47 entitled "Public Contact with Dangerous Wild Animals" to define terms, to prohibit direct contact with dangerous wild animals, to provide exceptions, to allow for enforcement by animal control authorities, local law enforcement agents, state law enforcement agents, and county sheriffs, and to provide penalties. 

H. 5264 (Reps. Reps. Burns and W. Jones — Amends Section 12-37-250, relating to the homestead property tax exemption allowed for people who are over age 65, disabled, or legally blind, to set the exemption amount as the greater of the $50,000 or the first 33% of the fair market value of the homestead and by repealing Section 12-37-245 relating to an obsolete reference to the homestead exemption. 

H. 5267 (Rep. Forrest) — Amends Act 307 of 2012, relating to the election districts from which certain members of the Saluda County School District must be elected, to reapportion these districts, to provide demographic information in regard to these districts, and to update the map number on which these districts are delineated.  

Senate Bills

S. 1148 (Sen. Grooms) — Amends Section 11-7-10, relating to the selection of a State Auditor, to establish the State Auditing Department headed by a State Auditor, provides that the State Auditor is appointed by the Governor upon the advice and consent of the Senate for a six-year term, and provide that the State Auditor may be removed from office by the Governor for cause. 

S. 1149 (Sens. Garrett, Loftis, Rice, Verdin, Alexander, Gambrell, Corbin, Climer, Reichenbach, Kimbrell, Gustafson, M. Johnson, Talley, Turner, Bennett and Massey) — A joint resolution to direct the State Law Enforcement Division (SLED) to enter into a 287(g) agreement with U.S. Immigration and Customs Enforcement so that SLED can exercise specified federal immigration officer functions. Further, the resolution encourages the sheriffs in certain counties to consider entering into a 287(g) agreement and directs the sheriffs in certain counties who are already signatories to a 287(g) agreement to exercise their powers and duties under the agreement to the fullest extent possible. 

S. 1166 (Sens. Tedder and Stephens) — Provides that the state must dismiss all charges pending against a person for unlawful possession of a handgun pursuant to Section 16-23-20 that were nullified by the enactment of the S.C. Constitutional Carry/Second Amendment Preservation Act of 2024. 

S. 1168 (Sen. Gambrell) — Provides that a municipal council may allow a municipal court judge to participate in the Police Officers Retirement System.