The SC General Assembly met in regular session this week. The Senate worked through bills on the calendar and ended the week on Thursday without an agreement on tort reform/liquor liability legislation. The House of Representatives began debating the budget on Monday afternoon and giving the bill third and final reading on Wednesday just after midnight.   

The House of Representatives will not meet in session next week, but will meet only in subcommittee and committee meetings. The Senate will meet as usual.  

House adopts the budget 
The House adopted its version of the budget. The House version of the budget includes these items:     

• $14.5 million added to the Local Government Fund base amount. The House fully funded the LGF at 5% according to Act 84, which passed into law in 2019.    

• $222.3 million in nonrecurring dollars to SC Emergency Management Division Declared Disaster Relief for Hurricane Helene.  

• $200 million to SC Department of Transportation for bridge modernization.   

• $10.9 million in additional money to the SC State Election Commission for a statewide voting system upgrade.   

• $15 million in nonrecurring dollars to the SC Rural Infrastructure Authority for a statewide Water and Sewer Fund.  

• $1.5 million in recurring dollars and $6 million in one-time money for destination-specific grants.  

• $1.1 million in one-time dollars for SC Association of Tourism Regions.  

• $1.5 million recurring dollars for beach renourishment grants.  

• $38 million in one-time dollars to the SC Office of Resilience to replenish the Disaster Relief and Resilience Reserve Fund.  

• $80 million in one-time dollars to the SC Department of Commerce for airport enhancements. 

• $12.3 million in one-time dollars for Disaster Relief Grant Matching Funds.   

Several provisos were introduced that affect cities and towns.     

• Proviso 108.6 increases the employer premium by 0% and a subscriber premium increase of $36.76 per subscriber per month. This proviso also increases the employer premium for retirees by 4.6%.  

• Proviso 55.10 was adopted to provide that at least 60% of funds sent to the SC Department of Environmental Services for the Pollutants Remediation Fund be made available to private well owners and municipal, county, joint or otherwise small public drinking water systems.  

• Proviso 117.195, the proviso that prohibits the use of state funds for diversity, equity and inclusions programs, was ruled out of order and removed from the House version of the budget. 

• Proviso 55.26 requires the SC Department of Environmental Services to issue a decision on a completed application for a permit no later than 90 days after the date the application was received by the department.   

Next, the budget will go to the Senate Finance Committee. For questions about the budget, contact Daina Phillips (dphillips@masc.sc) at 803.933.1203.   

Liquor liability legislation update 

The House of Representatives debated and passed H3497, its version of the solution to the difficulties that businesses have experienced with liquor liability insurance, last week sending the bill to the Senate. H3497 expands liquor liability insurance options, mandates alcohol server training, strengthens enforcement and ends joint and several liability, among other points of interest. The Senate Judiciary Committee polled this bill out of committee without a hearing and placed the bill on the calendar. This bill is currently on the Senate’s contested calendar with one senator objecting.  

Senators continued to work behind scenes on S244, their version of the tort reform and liquor liability insurance reform. Senate members adjourned on Thursday without taking action on the bill.   

For questions about the liquor liability bill, contact Daina Riley Phillips (dphillips@masc.sc) at 803.933.1203.  

Zero millage testimony heard in subcommittee 

The Senate Finance Property Tax subcommittee heard testimony on S102, the zero millage bill. S102 allows a municipality without an operating millage to impose one with limitations. Erica Wright, the Association’s legislative and public policy advocate, testified in favor of the bill along with former West Pelzer mayor and current Representative Blake Sanders.  

Subcommittee members had several questions about the bill before adopting an amendment that was suggested by the Municipal Association to specify how a newly incorporated city would implement millage. The subcommittee decided not to take further action, and plan to reconvene to continue work on the bill.   

For questions about the bill, contact Erica Wright (ewright@masc.sc) at 803.354.4793.