The Senate and the House of Representatives met on Wednesday to vote on several conference reports including the budget and bond reform. Legislators could return to Columbia next week to vote on the governor’s budget vetoes.  

Budget conference report adopted by the House and Senate 
The House and Senate met on Wednesday in session to adopt the budget conference report presented by the budget conference committee for the upcoming fiscal year’s $41 billion state budget. The Senate voted 36 – 0 to approve the budget conference report. The House voted 92 – 14 to approve the conference report. Next, the budget bill will go to Gov. Henry McMaster for his line-item vetoes. The governor has five days, excluding Sundays, to return his vetoes.  

Included in the budget conference report are the following items: 

• $13.2 million added to the Local Government Fund base amount.  The legislature fully funded the LGF at 5% for FY 2023-2024 in accordance with Act 84, which passed in 2019;  

• $20 million in onetime nonrecurring funds to county transportation committees, also known as CTCs, for secondary and low volume primary roads;  

• $40.1 million to cover 1% of the increase in public employers’ retirement system contributions;    

• $750,000 for post-traumatic stress disorder treatment services for first responders, which includes the additional $250,000 from last year;  

• $121.5 million for the state’s share of the State Health Plan, including expanded well visits, prescribed contraceptives for dependents, and annual gynecological visits for women;   

• $3 million in recurring dollars to fund the Volunteer Strategic Assistance and Fire Equipment program, or V-SAFE program;  

• $95,000 in new nonrecurring dollars towards the SC State Association of Fire Chiefs;  

• $12 million to the Rural County Stabilization Fund;   

• $36 million for the SC Dam Safety Emergency Fund;  

• $4 million to the SC Department of Mental Health – Statewide 988 Call Center and Suicide Prevention; 

• $2.5 million for tourism promotions; 

• $13.5 million for destination-specific grants;  

• $200 million to the SC Office of Resilience for disaster relief; 

• $1.5 million in recurring funds to supplement the state’s 10 Councils of Governments;    

• $3 million in recurring funds to fund the Aid to Counties – Magistrates;  

• $3.9 million in recurring funds for Aid to Fire Districts 

• $3.8 million in recurring dollars for the Firefighter Cancer Fund;    

• $25 million to the SC Conservation Bank; 

• $400,000 to the SC Department of Public Safety for prison mental health pilot program; and  

• $7.5 million to the SC Rural Infrastructure Authority for the Rural Infrastructure Fund.  

The following provisos were included in the budget conference report. The short-term rental proviso that prohibits cities and towns from banning short term rentals was removed from the budget.  

108.16 (PEBA: PORS and SCRS Return to Work) For compensation earnings during the current fiscal year, the earnings limitation does not apply if members of the Police Officer Retirement System have not been engaged to perform services for a participating employer in the system or any other system provided in Title 9 for compensation in any capacity, whether as an employee, independent contractor, leased employee, joint employee, or other classification of worker, for a period of at least 12 consecutive months subsequent to retirement. The exemption provided under this provision does not apply unless members first certify to the system that they satisfy the requirements for the exemption. If members inaccurately certify that they satisfy the requirements for the exemption provided in this provision, they are responsible for reimbursing the system for any benefits wrongly paid to them. 

For compensation earnings during the current fiscal year, the earnings limitation does not apply if members of the South Carolina Retirement System have not been engaged to perform services for a participating employer in the system or any other system provided in Title 9 for compensation in any capacity, whether as an employee, independent contractor, leased employee, joint employee or other classification of worker, for a period of at least 12 consecutive months subsequent to retirement. The exemption provided under this provision does not apply unless members first certify to the system that they satisfy the requirements for the exemption. If members inaccurately certify that they satisfy the requirements for the exemption provided in this provision, they are responsible for reimbursing the system for any benefits wrongly paid to them. 

108.17 (PEBA: PORS Return to Work) If members of the Police Officer Retirement System choose to engage in the Return to Work program, their 12-month period spent not engaging in officer duties shall not cause them to lose their license or be unable to perform the duties of a police officer. Officers participating in the Return to Work program shall be required to meet continuous training and education requirements of the South Carolina Law Enforcement Academy. 

108.6 (PEBA: State Health Plan) Of the funds authorized for the State Health Plan pursuant to SC Code  Section 1-11-710(A)(2), an employer premium increase of 3.7%  and a subscriber premium increase of 0% will result for the standard State Health Plan for Plan Year 2024. 

113.9 (AS-TREAS: Rural County Stabilization Fund) There is created in Aid to Subdivisions – State Treasurer the Rural County Stabilization Fund. Any county that has population growth, as determined by the 2020 Census, of less than 5.35% since the 2010 census shall be eligible to receive monies from the fund as follows: 

1. a baseline of $300,000 to each eligible county; 

2. an additional $100,000 to eligible counties with a population between 50,000 and 99,999; and 

3. an additional $200,000 to eligible counties with a population of more than 100,000.       

After disbursal of funds, any monies remaining shall be distributed to each eligible county on a pro rata basis. In the event the amount of funds in the Rural County Stabilization Fund is not sufficient to provide monies to counties according to the above formula, the amounts distributed to counties shall be reduced on a pro rata basis. 

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

Several conference committee reports adopted 
The House and Senate adopted several conference committee reports on Wednesday.  

The conference committee report for H3532, the bond reform bill, was adopted by the House and Senate and sent to the governor for his signature or veto. The conference report includes additional language regarding the criteria for a person who commits a crime while out on bond; clarifies that the SC Law Enforcement Division will govern the electronic monitoring system; and gives bondsman additional time to get mandated property and casualty insurance. For questions about bond reform, contact Erica Wright (ewright@mac.sc) at 803.354.4793. 

The conference committee report for S108, the first responder death benefit bill, was adopted by the House and Senate and sent to the governor for his signature or veto. The conference report changed the effective date to May 11. For questions about the death benefit bill, contact Joannie Nickel (jnickel@masc.sc) at 803.354.4794. 

The conference committee report for S330, the damage to an electric utility system bill, was adopted by the House and Senate and sent to the governor for his signature or veto. The conference report removes treble damages from the civil penalty and strikes the fentanyl section entirely. For questions about the utility system bill, contact Scott Slatton (sslatton@masc.sc) at 803.933.1203. 

Stay in Touch 
The Municipal Association legislative team is on Twitter. Follow Scott Slatton (@ScottMuniSC), Joannie Nickel (@JoannieMuniSC) and Erica Wright (@EricaMuniSC) for updates from the State House. Also follow the Association at @MuniAssnSC.  

From the Dome to Your Home podcast 
The Municipal Association has launched another podcast, dedicated only to legislative information. The From the Dome to Your Home podcast offers more guests, more insight and more legislative information all year round. Enjoy both City Quick Connect for municipal information and project highlights and From the Dome to Your Home for everything legislative. 

From the Dome to Your Home Podcast