April 26, 2024

The House and Senate met in regular session this week, with the Senate adopting its version of the state budget on Wednesday night. With only six legislative days left in the session, legislators in both chambers are working through bills on their calendars.

General Assembly adjournment
The last day of the regular session is Thursday, May 9. This is the second year of a two-year session, so any bills that do not pass into law will be dead and must be reintroduced for the 2025 – 2026 session.

Both chambers passed S1192, the sine die, or adjournment, resolution. This resolution outlines the legislation that the General Assembly can consider when the president of the Senate and the speaker of the House bring members back to Columbia after the May 9 adjournment to finish the budget.

Senate adopts its version of the budget
The Senate met this week and adopted its version of the state budget on Wednesday. Next, the budget bill goes back to the House for debate on the Senate changes. The Senate version of the budget includes these items that were not changed from the Senate Finance Committee version of the budget: 

$13.8 million added to the Local Government Fund base amount. Committee members fully funded the LGF at 5% for FY 2023-2024 in accordance with Act 84, which passed into law in 2019.  
$1 million in one-time funds to the state’s 10 councils of governments. 
$750,000 for post-traumatic stress disorder treatment services for first responders and law enforcement.  
$3 million in recurring dollars to fund the Volunteer Strategic Assistance and Fire Equipment, or V-SAFE, program.   
$3.78 million in recurring dollars for the Firefighter Cancer Fund. 
$5 million in one-time and $4 million in recurring dollars for destination-specific tourism grants. 
$2.5 million in one-time dollars to the SC Department of Mental Health for alternative transportation programs.
$100 million to the SC Department of Transportation for bridge modification on interstate and primary highways.  
$11.5 million in one-time funds to the SC Election Commission for elections operations. 
$12.5 million in one-time funds to the SC Election Commission for a voting system upgrade.
$1 million to the SC Department of Administration for first responder 800 MHz communication modernization.  
$200 million in one-time funds to the County Transportation Committee Acceleration fund.
$9 million in additional money to the South Carolina Conservation Bank for grant funding.

New provisos approved by the Senate
The Senate approved several new provisos from the Senate Finance Committee’s version of the budget that are of interest to cities and towns.

117.CU – credit unions – This proviso allows a federal or state credit unions headquartered in South Carolina to act as a qualified public depository for deposits held by a municipality.

118.ARP – American Rescue Plan Act Reauthorization – This proviso reallocates unused funds from the American Rescue Plan Act.
108.16 – PORS/SCRS return to work – The original language in the House budget that included an exception to the 12-month break in service for critical need areas was amended in the Senate Finance Committee to remove the critical-need language.
74.mt – WCC: Tax on Self Insurers – This new proviso requested by the SC Workers Compensation Commission suspends a provision requiring the Commission to remit the balance of maintenance tax revenues back to the state General Fund for the current fiscal year.
99.uls – RSIC: Unfunded Liability Study – This new proviso directs the Retirement System Investment Commission to undergo a study to look at alternative methods to reduce the state’s unfunded liability in the pension system and to report any findings to the General Assembly.

For questions about the state budget, contact Joannie Nickel (jnickel@masc.sc) at 803.354.4794.

Abandoned buildings passes full committee
S1021, the abandoned buildings revitalization tax credit bill, which was amended in subcommittee, was given a favorable report by the House Ways and Means Committee. The subcommittee amendment adds language from H3737, the Shortline Railroad Modernization Act. The original language from S1021 is still in the bill. Next, the bill goes to the full House of Representatives for debate.

For questions about this bill, contact Joannie Nickel (jnickel@masc.sc) at 803.354.4794.

Property tax exemption bill passes subcommittee and full committee
The House Ways and Means Property Tax subcommittee amended and approved S1017, the affordable housing property tax exemption bill. The amendment changes the language of the bill so that in order to qualify for the property tax exemption all of the units within an eligible project in certain ZIP codes must be rented to very low-income residents as designated by the U.S. Department of Housing and Urban Development’s Fair Market Rent guidelines. Later in the week, the full House Ways and Means Committee removed the amendment adopted by the subcommittee and adopted an amendment that qualifies projects that set lower income thresholds for residents in cities located within a North Carolina metropolitan statistical area whose population exceeds 500,000 residents. Next the bill goes to the House of Representatives for debate.

This bill still prohibits annexation of agricultural property by a municipality without express written agreement by the owner.

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

New Bill Introductions
Each week, House and Senate members introduce new bills that are referred to a committee to begin the legislative process. Bills that have an effect on municipal government are tracked by the Municipal Association legislative team in the legislative tracking system.

For questions about the new bill introductions, contact Casey Fields (cfields@masc.sc) at 803.933.1203.

Stay in Touch
The Municipal Association legislative team is on X. Follow Scott Slatton (@ScottMuniSC), Joannie Nickel (@JoannieMuniSC) and 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.

From the Dome to Your Home Podcast

Committee Report

House Judiciary Committee
S915 – Creates the Executive Office of Health and Policy – favorable report as amended. The amendments insert the House language from H4927; clarifies that a quarantine can't be forced on the residents of the state without the governor's approval; and adds only that the governor can activate sheriffs and constables in a public health emergency.
Summary of the bill as introduced: Creates the Executive Office of Health and Policy to include departments on public health, aging and intellectual disabilities.
S1 – Creates the offense of fentanyl-induced homicide – adjourned debate
Summary of the bill as introduced: Creates the offense of fentanyl-induced homicide for a person who illegally delivers, dispenses or provides fentanyl to another person and the cause of death for that person is fentanyl-related.

House Medical Cannabis Ad Hoc Committee
S423 – Enacts the SC Compassionate Care Act – carried over
Summary of the bill as introduced: Allows the sale of medical cannabis products and the conditions under which a sale can occur.

House Labor, Commerce and Industry Committee
S728 – Changes the definition of firefighter to include non-residents of South Carolina who work in the state – favorable report as amended. The amendment adds language from H5118 to the bill.
Summary of the bill as introduced: Changes the definition of firefighter in the Firefighter Cancer Health Care Benefit Plan to include non-residents of South Carolina who work in the state.

Senate Labor, Commerce and Industry Professions and Occupations subcommittee
H4086 – Requires that certain licensees of the Residential Builders Commission be deemed to satisfy certain implied warranties – no action although it was on the agenda. Later in the week the subcommittee met again and gave the bill a favorable report as amended. The amendment strikes all of the language in the original bill and replaces it with only technical changes. An additional amendment continues to prohibit residential builders from working on structures over three floors high with more than 16 units in a single building.
Summary of the bill as introduced: Requires that certain licensees of the Residential Builders Commission be deemed to satisfy certain implied warranties.

House Medical, Military, Public and Municipal Affairs Committee
S445 – Requires the SC DAODAS to approve a credentialing entity to develop a voluntary certification program for recovery housing – favorable report
Summary of the bill as introduced: Requires the SC DAODAS to approve a credentialing entity to develop a voluntary certification program for recovery housing.

House Ways and Means Committee
S969 – Increases the subsistence deduction amount from the individual taxable income of law enforcement officers and firefighters – favorable report as amended. The amendment removes the previously adopted subcommittee amendment; adds language from H5225; and gives counties the option to exempt groceries from local transportation sales taxes.
Summary of the bill as introduced: Increases the subsistence deduction amount from the individual taxable income of law enforcement officers and firefighters.

Senate Judiciary subcommittee
H4867 – Requires all 911 telecommunicators that provide dispatch for medical emergencies be trained in T-CPR – favorable report as amended. The amendment adds gross negligence and recklessness to current language in the bill regarding liability.
Summary of the bill as introduced: Requires all 911 telecommunicators that provide dispatch for medical emergencies be trained in T-CPR.