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With only one week of statewide session remaining, senators addressed several amendments made by the House to S. 62, the “Education Scholarship Trust Fund Act.” The Senate spent time debating H. 3127, failure to stop, and H. 3276, the “South Carolina Hands Free and Distracted Driving Act,” before adopting several amendments and sending these bills back to the House.
Meanwhile, the House spent the week passing numerous bills on their calendar including S. 171, which provides financial relief to counties for the increasing cost of waste tire disposal, an SCAC policy position. Several House committees also met, including the Ways and Means Committee, which advanced H. 4126, relating to income tax reduction, and H. 3858, the boat property tax reduction bill, to the House floor for debate next week. Prior to adjourning for the week, the House made several changes to H. 3309, the comprehensive energy reform bill, including removing all language pertaining to data centers.
Bills of interest to counties are discussed below.
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Revenue, Finance and Economic Development
Boat Property Tax Reduction — H. 3858. This bill gives boat owners a 50% property tax reduction on boats registered and titled in South Carolina, which would ultimately be subsidized by small businesses, car owners, renters, and other taxpayers. The bill also eliminates the titling and taxing of all outboard motors. The House Ways and Means Committee gave H. 3858 a favorable report with two amendments. The first amendment lowers the property tax reduction from 50% to 42.8571% statewide. The second amendment ensures that the reduction does not apply to houseboats. The bill is pending second reading on the House calendar, and SCAC is in continued negotiations with the sponsor of the bill and stakeholders to amend the bill to lessen the fiscal impact on counties.
Collection and Remission of Accommodations Taxes — H. 3876. This bill updates the process of collecting and remitting accommodation taxes, with an emphasis on providing guidance when third-party platforms (“intermediaries”) or other online booking services are involved. Third parties are 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. The House Ways and Means Committee amended the bill by striking Section 8 which included a provision requiring the collection and administration of accommodations taxes by the Department of Revenue (DOR). H. 3876 is pending a second reading on the House calendar.
Catawba Nation Police Officer Retirement System — S. 127. This bill revises the Police Officers Retirement System (PORS) provisions to set forth certain conditions by which the Catawba Nation may become an employer for purposes of the system. The House amended the bill to allow full-time masters-in-equity to participate in PORS. From July 1, 2025, to Jan. 1, 2026, a master-in-equity who elects to transfer from the South Carolina Retirement System (SCRS) to PORS must pay the accumulated employer and employee contributions and interest in the SCRS plus 5% of their annual salary as of June 30, 2025, for each year of service. The amendment also removes the earning limitations for a retiree of PORS or SCRS if the employee returns to work in a “critical needs position” after being separated from employment for at least twelve months. The House gave S. 127 a second and third reading and sent the bill to the Senate for consideration of the House amendments.
Municipalities Without Millage — S. 102. This bill allows a municipality without an operating millage on Jan. 1, 2025, or a municipality that incorporates after Jan. 1, 2025, to impose an operating millage sufficient to generate one-third of the municipality’s general fund expenses in the previous fiscal year. The Senate Finance Committee adopted an amendment to require that the proposed millage or millage increase be approved by a referendum before the millage would be assessed. S. 102 received a favorable report, as amended, and the bill is pending a second reading on the Senate calendar.
Manufacturing Property Tax Reimbursements — S. 439. This bill would increase the reimbursement cap for the 42.8571% manufacturing property tax exemption provided for in Section 12-37-220(B)(52) from $170 million to $300 million. This bill is in response to the Office of Revenue and Fiscal Affairs projecting that the current cap would be exceeded by more than $30 million in FY 2025-26. The reimbursements will continue to come from the Trust Fund for Tax Relief, and the increase in reimbursements will come from the General Fund. The Senate Finance Committee gave S. 439 a favorable report, and the bill is pending a second reading on the Senate calendar.
Redevelopment Authorities: Tax Increment Financing for Affordable Housing — H. 3333. This bill adds certain affordable housing projects to what qualifies as a redevelopment project of a federal military installation, known as a Redevelopment Authority (RDA). It includes an affordable housing project (defined referencing median income percentages according to the U.S. Department of Housing and Urban Development) where all or part of new property tax revenues generated in the tax increment financing (TIF) district are used to provide or support publicly and privately owned affordable housing in the district or are used to provide infrastructure projects to support affordable housing. The bill also extends the bonding period for redevelopment projects from 15 years to 35 years, allowing municipalities to spend TIF dollars outside of the RDA for items such as infrastructure support. H. 3333 received a second and third reading in the Senate and was enrolled for ratification.
State Auditor — H. 3430. As introduced, this bill authorizes the governor to appoint or remove the state auditor, with advice and consent of the Senate. The Senate adopted an amendment to create the Department of Governmental Auditing, headed by the state auditor. Independent annual audits of all county financial records must be filed with the Department of Governmental Auditing instead of the State Treasurer’s Office.
The Senate amendment also establishes a Division of Local Government Services (Division) under the state auditor to be headed by a deputy auditor. The Division will now perform periodic audits of financial records of county treasurers, clerks of court, and magistrates that were previously performed by the state auditor. The Division may use funds appropriated to the Department of Governmental Auditing for innovative auditing, accounting or local government assistance services that improve the quality or increase the range of services offered to local governments to accomplish accurate, efficient, and transparent financial reporting. Any request by a county for an extension to file their annual audit report must be made with the Division.
The House amended H. 3430 further this week to include language from H. 3497, relating to liquor liability, before adjourning debate on the bill.
I-95 Economic and Education Stimulus Act — H. 4176. This bill establishes the South Carolina Gaming Commission, which is authorized to award casino licenses in Dillon, Marlboro, and Orangeburg counties.
The House Ways and Means Committee amended the bill to require that 97% of the privilege tax collected must be transmitted to DOR and placed into the state general fund with a portion of these funds going to the S.C. Department of Behavioral Health and Developmental Disabilities for the prevention and treatment of compulsive gambling disorder. The remaining 3% of the privilege tax must split between the three eligible counties. H. 4176 received a favorable report, as amended. The bill is pending a second reading on the House contested calendar.
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Public Safety, Corrections and Judicial
Failure to Stop — H. 3127. This bill increases the penalties for failure to stop when signaled by law enforcement. The bill also lists several aggravated factors that can affect sentencing:
- the person's recorded speed exceeded 100 mph;
- the person was driving on the wrong side of the road;
- the person threw drugs, drug paraphernalia, or weapons from their vehicle;
- the person drove their vehicle toward another vehicle in a manner to purposely scare another person or intimidate a pursuing officer;
- the person fled from the scene on foot after the pursuit ended;
- the person collided with another person during the pursuit; or
- the person was involved in a collision that resulted in property damage.
The Senate adopted several amendments to the bill this week to increase violations of this offense from a misdemeanor to a felony and to provide for minimum sentencing standards. H. 3127 received second and third readings and was returned to the House with amendments.
Hands-Free Driving — H. 3276. This bill creates the “South Carolina Hands-Free and Distracted Driving Act” to enhance the provisions of the state’s current hands-free statute and to increase penalties. The bill offers several exceptions, including use by a first responder while performing official duties. The bill also shifts 25% of the fine and fee revenue that would otherwise flow to counties to the Department of Public Safety for use to educate the public on the dangers of distracted driving. The bill also provides:
- for a second or subsequent offense, a person must be fined $200 and have two points assessed against their driver’s license;
- a violation of this provision must not be reported to the driver’s vehicle insurance provider;
- a law enforcement officer may not stop a person for a violation of this law unless they have probable cause that a violation has occurred based on the officer's clear and unobstructed view of a person who is using a wireless electronic communication device; and
- for the first 180 days of the enactment of this bill, a law enforcement officer may only issue a warning ticket.
The Senate amended the bill to provide that a law enforcement officer may stop an individual for a violation when the officer has a reasonable suspicion that a violation has occurred and the officer has a clear or unobstructed view of a person who is unlawfully using a wireless electronic communication device while operating a motor vehicle. H. 3276 received a second and third reading and was returned to the House with amendments.
Fraudulent Check Expungement — S. 428. This bill provides that if a person has had multiple convictions in magistrates court of passing fraudulent checks within a three-year period, after 10 years they can apply to have their charges expunged if they have no other convictions. A person can only get an expungement for fraudulent check charges once. Law enforcement and prosecution agencies shall retain the arrest and booking record, associated bench warrants, mug shots, and fingerprints of the person under seal for three years and 120 days. The House Judiciary Committee made some technical amendments and gave the bill a favorable report as amended. S. 428 is pending second reading on the Senate calendar.
Emergency Scene Management — H. 4249. This bill requires the driver of a vehicle to maintain control when approaching or passing another vehicle displaying flashing hazard lights stopped on or near the right of way of a street or highway. The driver must also yield right of way by making a lane change, if possible, and must maintain a safe speed for road conditions. The bill specifies that a driver violating the previous conditions must be fined $300 to $500. H. 4249 received second and third readings in the House this week and was sent to the Senate.
SC Public Expression Act (Anti-SLAPP) — H. 3305. This bill requires specific court actions be followed during a civil case brought against a person exercising their right to free speech. The Senate Judiciary Committee exempted governmental units or an agent of a governmental unit acting in an official capacity to enforce a law to protect against an imminent threat to public health or safety. H. 3305 received second reading and is now pending a third reading on the Senate calendar.
Small Estates in Probate — H. 3472. This bill increases the limit of a small personal estate from $25,000 to $45,000 to allow more estates to go through summary administration in probate. The Senate gave the bill a third reading, and H. 3472 was enrolled for ratification.
Firefighter Registration Requirements — S. 101. This bill revises and clarifies requirements related to the registration of firefighters by the Office of the State Fire Marshal, which is under the administration of the Department of Labor, Licensing and Regulation. The House gave S. 101 second and third readings, as amended, and returned the bill to the Senate.
Retirement System for Judges — H. 4300. This bill changes the vesting period for judges in the retirement system from 10 to eight years of service. It also raises the mandatory retirement age under the system from 72 to 74. H. 4300 received second and third readings in the House and was sent to the Senate.
Magistrates Court Representation — H. 3335. This bill authorizes a housing authority to designate a non-attorney to represent them in magistrate court. H. 3335 received second and third readings in the House and was sent to the Senate.
Telecommunications Location — S. 114. This bill requires a wireless telecommunications carrier to provide call location information concerning the telecommunications device of a user to a law enforcement agency upon its request to respond to a call for emergency services or in an emergency that involves the risk of death or serious physical harm. The Senate amended the bill to conform with federal law by changing “risk of death or serious physical harm” to “immediate death or serious bodily injury.” S. 114 received second and third readings in the Senate and was referred to the House Judiciary Committee.
Safe Havens — S. 331. This bill relates to safe havens for abandoned babies and allows for the use of newborn safety devices or “baby boxes.” A Senate Family and Veterans Services subcommittee passed the bill out favorably, and it will be on the next full committee agenda.
Pending Gun Charges — S. 136. This bill requires the dismissal of certain unlawful handgun possession charges from before the enactment of the “South Carolina Constitutional Carry/Second Amendment Preservation Act of 2024.” It also states that a dismissal does not necessitate dismissing related charges or serve as a basis for civil actions from the arrest. The House amended the bill this week to include the provisions of H. 3497, relating to liquor liability. The House gave S. 136 second and third readings and returned the bill to the Senate.
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Waste Tires — S. 171. This bill represents the efforts of SCAC, the South Carolina Manufacturers Alliance, and several other entities to address the financial challenges that counties across the state are facing regarding the management and processing of waste tires. One of the most important aspects of the bill includes an increase of the $150-per-ton cap on tipping fees that a county may charge for recycling and disposal of undocumented waste tires to $400 per ton. This is an SCAC policy position.
Additionally, the bill addresses the sale of unsafe used tires and includes updated manifest and registration requirements for waste tire haulers that will require the placement of a new decal, provided by the DES, on certain vehicles involved in the hauling of waste tires. Other notable aspects of the bill include:
- increasing economic development efforts to provide alternative uses of waste tires;
- exempting the South Carolina Department of Transportation from the waste tire hauler registration requirements;
- updating the current tire rebate program to encourage retailers to use waste tire haulers;
- adding tire manufacturers and the Department of Commerce as members of the Solid Waste Advisory Council Grants Committee; and
- encouraging the development of a statewide market infrastructure for tire-derived products.
The House adopted an amendment to the bill removing a reference to new car sales and clarifying that the $2 advanced recycling fee would apply to all “unmounted” tires sold. S. 171 received second and third readings in the House and was returned to the Senate as amended.
Energy Bill — H. 3309. This bill enacts the “South Carolina Energy Security Act” to address the state’s energy needs over the next decade. The House took up H. 3309 this week to delete any references or requirements pertaining to data centers throughout the bill. H.3309 will go back to the Senate for consideration of the House amendment.
Litter Officers — H. 3222. This bill updates the number of litter control officers that a county may have based on the most recent census data. The Senate Judiciary Committee gave H. 3222 a favorable report, and the bill is pending second reading on the House calendar.
SC811 — H. 3571. This bill updates definitions, including what constitutes a large project, requires operators to become members of the Operators Association Notification Center, and outlines penalties for failure to notify about an excavation or demolition or for failure to join the association. The bill requires notification to the Operators Association Notification Center no less than three full working days prior to the commencement date and no less than 10 days prior to the commencement date for a subaqueous facility. The bill also requires quarterly reports of damage caused by excavation or demolition, creates exemptions for notice requirements in cases of emergency, and provides for a complaint process through the Attorney General’s office as well as penalties. The bill also allows the Attorney General’s Office to authorize prima facie cases to go to court and to increase the penalty for certain violations from $1,000 up to $25,000. The Senate amended the bill to change the effective date, expand the definition of large projects to include transportation projects over 1 mile, and outline notification requirements. H. 3571 received a second reading, and the bill is now pending a third reading on the Senate calendar.
Abandoned and Derelict Vessels — S. 367. This bill establishes protocols for the Department of Natural Resources (DNR) and local law enforcement agencies to handle abandoned, derelict, and sunken vessels. Any person may remove and dispose of derelict, abandoned, and sunken vessels and may bring a civil action in magistrate court against a responsible party to recover the costs of removal and disposal, attorney’s fees, and court costs within three years. The Department of Environmental Services, in cooperation with DNR, must also develop and maintain a website for law enforcement and the public to report sunken, wrecked, or junked vessels. S. 367 received second and third readings in the House and will be enrolled for ratification.
EV Charging Stations — S. 275. This bill amends definitions for electric vehicles (EVs) and direct-current fast-charging stations. The bill also provides that electrical utilities and other local governments must provide and appropriately charge for infrastructure that is required to serve the electrical load for EV charging needs or to meet the requirements of any state and federal grant funding. Additionally, electrical utilities or local governments that provide, own, or maintain direct-current fast-charging stations for public use must offer fair, reasonable, and nondiscriminatory rates and service to all entities providing a similar service to avoid providing an unreasonable advantage for its direct-current charging stations. The bill also limits the revenue received from services other than those provided by the charging stations from being used for subsidizing investments in these types of EV-charging stations that are owned and operated by utilities or local governments going forward. Local governments with existing “Level 2” charging stations may continue offering free charging for public use. The House gave S. 275 second and third readings, and the bill will be enrolled for ratification.
Soil Classifiers — H. 3950. This bill exempts licensed professional engineers from being licensed as professional soil classifiers when performing soil evaluations in connection with conventional onsite wastewater systems and provides these engineers must have certain training, bonding, and insurance. H. 3950 received second and third readings in the House and was sent to the Senate.
Beachfront Critical Area — H. 3770. This bill relates to the permits required in critical areas and changes the exemption for normal maintenance or repair of certain structures, like docks. The House Agriculture, Natural Resource, and Environmental Affairs Committee adopted an amendment to make clarifications to the definition of maintenance and repair and gave H. 3770 a favorable report as amended. The bill will be placed on the House calendar.
Golf Cart Ordinances — H. 3292. This bill allows all municipalities to enact an ordinance to allow golf carts to operate in designated areas within their jurisdiction at night. If the designated area is not within the jurisdiction of a municipality, the county in which the designated area is located may enact such an ordinance. Currently, only municipalities located in counties with a population between 150,000 and 250,000 residents and jurisdiction over a barrier island are authorized to enact such ordinances. The Senate Transportation Committee adopted an amendment to strike language relating to golf carts on secondary roads and reported H. 3292 out favorably as amended. The bill is pending second reading on the Senate calendar.
Georgetown County Building Codes — S. 623. This local legislation exempts Georgetown County from certain building requirements and allows the county to instead enforce Flood Zone AE standards in Georgetown County’s Flood Damage Prevention Ordinance. S. 623, which was introduced this week, received second and third readings in the Senate and was sent to the House.
V.C. Summer — S. 51. This joint resolution encourages Santee Cooper to issue a request for proposal to solicit proposals on using assets associated with V.C. Summer Units 2 and 3, and for considerations related to a request for proposal. The House gave S. 51 second and third readings, and the resolution is enrolled for ratification.
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Military Advisory Council — S. 89. This bill renames the South Carolina Military Base Task Force to the South Carolina Military Affairs Advisory Council. Additionally, the bill revises the council's mission and increases its membership by adding the chief executive officer of the Aiken Chamber of Commerce, the chairperson of Aiken County Council, and the mayor of North Augusta. The bill also requires the Advisory Council to meet at least once each calendar year. The House amended the bill to add the chairperson of Edgefield County Council to the Advisory Council and to require that the members of the executive committee be recommended by the county legislative delegation before being submitted to the governor for consideration on the appointment. S. 89 received second and third readings and was returned to the Senate as amended.
Veterans’ Homes — H. 4385. This bill requires the Department of Veterans Affairs (DVA) to adopt and implement criteria, policies, and procedures for admissions to and discharges from veterans’ homes. Additionally, within 60 days of adopting or amending any admissions or discharge criteria, policies, or procedures, DVA must submit, for informational purposes only, the full text of such criteria, policies, or procedures to the House Government Efficiency and Legislative Oversight Committee and Senate Legislative Oversight Committee. The House Medical, Military, Public, and Municipal Affairs Committee gave H. 4385 a favorable report, and the bill is pending second reading on the House calendar.
Commercial Property Assessed Clean Energy and Resiliency (C-PACE) — S. 256. This bill authorizes the establishment of commercial property assessed clean energy and resiliency (C-PACE) programs that local governments may voluntarily implement. The programs would ensure that owners of agricultural, commercial, industrial, and multifamily residential properties can obtain low-cost, long-term financing for qualifying improvements by freely and willingly agreeing to have an assessment levied on their properties. The Senate Labor, Commerce, and Industry Committee made some technical amendments, and the bill received a favorable report as amended. S. 256 is currently pending second reading on the Senate calendar.
Alcohol Licensing — H. 4000. This bill authorizes DOR to issue a biennial permit or license for the sale of on-premises consumption of alcohol by the drink to a nonprofit corporation that manages a performing arts and convention complex, regardless of whether or not the county has passed a referendum for a temporary permit to sell alcohol by the drink. The House Judiciary Committee amended the bill this week to add amphitheaters that are owned or managed by a municipality with seating of at least 400 people to the list of eligible entities. The House gave H. 4000 second and third readings and sent the bill to the Senate.
Flags Made in the USA — H. 3514. This bill requires any United States or South Carolina flag purchased with public funds by state agencies, departments, or political subdivisions, to be manufactured in the United States. The articles, materials, or supplies used in the manufacturing of the flags must have been grown or otherwise produced in the United States. The House adopted an amendment allowing public entities that have already purchased flags in bulk to continue using them until replacements are needed. H. 3514 received second and third readings and was sent to the Senate.
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