The Senate and House of Representatives met in regular session this week. The Senate approved its version of the state budget, while the House worked through bills on the calendar.
There are six legislative days left in the regular session of the General Assembly until adjournment on May 8.
Senate passes its version of the budget
The Senate approved its version of the budget on Wednesday evening after two days of debate. Senators did not include earmarks in its version of the budget, similar to the Senate Finance Committee version.
Some items in the Senate version of the budget include these:
- $14.5 million added to the Local Government Fund base amount. The Senate Finance Committee fully funded the LGF at 5% according to Act 84, which passed into law in 2019, same as the House version.
- $198.7 million in Capital Reserve one-time dollars to the SC Emergency Management Division Declared Disaster Relief for Hurricane Helene.
- $100 million to the SC Department of Transportation for bridge modernization.
- $5 million in nonrecurring dollars to the SC Rural Infrastructure Authority for a statewide Water and Sewer Fund.
- $2 million in recurring dollars and $4 million in one-time money for destination-specific grants.
- $1.5 million recurring dollars for beach renourishment grants.
- $9 million in one-time dollars to the SC Office of Resilience to replenish the Disaster Relief and Resilience Reserve Fund.
- $30 million in one-time dollars to the SC Department of Commerce for airport enhancements.
- $13.3 million in one-time dollars for Disaster Relief Grant Matching Funds.
- $250,000 in recurring dollars to the SC Department of Parks, Recreation and Tourism for the Undiscovered SC Grant Program, which is a program for which local governments can apply.
- $2.5 million to the SC Department of Mental Health for alternative transportation programs.
The full Senate amended the SC Department of Juvenile Justice proviso adopted by the Senate Finance Committee. The proviso now requires counties and municipalities to pay $125 dollars per day per juvenile — the Senate Finance Committee version would set a requirement of $200 — in addition to the $50 per day already in statute to house juveniles in SC Department of Juvenile Justice detention facilities. There is a 25-day cap included in the proviso.
The budget now goes back to the House for approval of the Senate version or amendments by the House to the Senate version. For questions about the budget, contact Daina Riley Phillips (dphillips@masc.sc) at 803.933.1203.
Short-term rental bill stalled in subcommittee
H3861, the bill that prohibits cities and towns from prohibiting short-term rentals, was adjourned debate by the House Medical, Military, Public and Municipal Affairs Municipal and Public Affairs subcommittee. Todd Glover, executive director of the Municipal Association, and Mayor Will Haynie of the Town of Mount Pleasant, testified against the bill.
For questions about the bill, contact Erica Wright (ewright@masc.sc) at 803.354.4793.
Military Tax Increment Financing bill on the Senate calendar
H3333 remains on the Senate calendar. Sen. Brad Hutto (D-Orangeburg) carried over the bill on Thursday preventing a second reading.
H3333 is the House version of the military TIF bill that was passed by the House. S190, the Senate version of the bill, has already passed the Senate. Both bills would include affordable housing as an allowable project in a TIF district, extend the bonding period for projects in a military TIF, and give local governing bodies greater flexibility when using TIF funds outside of the TIF boundary.
For questions about the bill, contact Erica Wright (ewright@masc.sc) at 803.354.4793.
Stay in Touch
The Municipal Association legislative team is on X. Follow Erica Wright (@EricaMuniSC) for updates from the State House. Also follow the Association at @MuniAssnSC. Don’t forget to listen to the From the Dome to Your Home podcast every Friday for a recap of the week’s legislative issues and a look to the week ahead at the State House.
House Ways and Means Committee
H4216 – income tax reduction – carried over
Summary of the bill as introduced: Reduces the income tax rates for a flat 3.99% and sets standards for further reductions in the tax.
House Medical, Military, Public and Municipal Affairs Municipal and Public Affairs subcommittee
H4050 – local planning and zoning ordinances – adjourned debate
Summary of the bill as introduced: Defines concurrency programs in local planning and zoning as the governing authority that conditions approval of land development activities on public facility and service adequacy.
Senate Labor, Commerce and Industry Ad Hoc subcommittee
S256 – C-PACE programs – favorable report as amended. The amendment only makes technical changes.
Summary of the bill as introduced: Enacts the South Carolina Commercial Property Assessed Clean Energy and Resilience Act to establish a process for assessing and collecting liens.
Senate Judiciary subcommittee
H3571 – Underground facility damage prevention – favorable report
Summary of the bill as introduced: Adds definitions for certain terms in the Underground Facility Damage Prevention Act and preempts local government ordinances that require pre-marking of facilities or permits to identify facilities.
House Ways and Means Property Tax subcommittee
H3847 – regulation of co-owned homes – adjourned debate
Summary of the bill as introduced: Preempts any ordinance enacted by a municipality that regulates the use, disposition, sale or any imposition of any prohibition, restriction, fee imposition or taxation of a co-owned home.
H3876 – Accommodations taxes – favorable report as amended. The amendment strikes Section 8 and allows local governments to maintain local authority to fairly and accurately collect a tax.
Summary of the bill as introduced: Adds the position of accommodations intermediary to facilitate the rental of accommodations.
H3858 – Taxes on boats – favorable report
Summary of the bill as introduced: Exempts the property tax on boats by 50 percent.
House Agriculture, Natural Resources and Environmental Affairs Environmental Affairs subcommittee
H3770 – Beachfront critical areas – adjourned debate
Summary of the bill as introduced: Changes the exemption for normal maintenance or repair of certain structures in critical areas.
H4168 – Extension of water and sewer systems – favorable report as amended. The amendment requires local governments to provide that their systems are at capacity to the property owner in writing with 30 days of the request. The amendment would also allow property owners to repair wells or septic tanks if the owner can show that doing so more economical than hooking up to the public system.
Summary of the bill as introduced: Exempts certain properties from connecting to a municipal water or sewer system.
House Labor, Commerce and Industry Public Utilities subcommittee
S275 – Electric vehicle charging stations – favorable report
Summary of the bill as introduced: Requires an electric utility provider that offers an electric vehicle charging station directly to the public to do so on a non-discriminatory basis under the same fees and conditions offered to private providers of EV charging stations.
H3968 – Electromagnetic pulse protection – adjourned debate
Summary of the bill as introduced: Requires the SC Emergency Management Division to add detailed plans regarding hardening critical infrastructure against electromagnetic pulses or geomagnetic disturbance and distribute those plans to all municipalities no later than January 1, 2026.