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Voices. Knowledge. Solutions.

May 5, 2023

The Senate and House of Representatives met in regular session this week and worked through bills on their calendars. Three days remain in the legislative session with the last day of the regular session on Thursday, May 11.  

Short-term rental bill remains in subcommittee 
H3253, the bill that would prohibit a municipality from enacting an ordinance that stops the rental of a residential dwelling to a short-term guest, was heard again this week by the House Medical, Military, Public and Municipal Affairs Municipal and Public Affairs subcommittee. Mayor Tim Goodwin of Folly Beach; Councilmembers Jan Anderson and Scott Pierce of Isle of Palms; former Tega Cay Mayor and now Rep. David O’Neil; and former Folly Beach administrator and now Rep. Spencer Wetmore testified against the bill asking the subcommittee to continue to allow cities and towns to regulate short-term rentals. The subcommittee heard further testimony and did not take action on the bill after hearing testimony.  

The language in this bill would prohibit cities and towns from enacting ordinances that ban short-term rentals and it would prohibit cities from regulating short-term rentals. The bill remains in the subcommittee for work during the 2024 legislative session.  

The Municipal Association included preserving the ability for cities and towns to regulate short term rentals in its 2023 – 2024 Advocacy Initiatives.     

For questions about the short-term rental bill, contact Scott Slatton (sslatton@masc.sc) at 803.933.1203. 

Squat trucks heads to the governor 
The House of Representatives gave third and final reading to S363, the Senate version of the squat truck bill. The bill prohibits motor vehicle modifications that result in a motor vehicle's front fender being raised 4 or more inches above the height of the rear fender. The House adopted the subcommittee amendment that defines fender and adds an additional warning period of 180 days. Later in the day, the Senate concurred on the House amendments sending the bill to the governor’s desk for his signature or veto. 

The Municipal Association included banning squat trucks in its 2023 – 2024 Advocacy Initiatives.     

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

Municipal audits passes House Ways and Means Committee  
S31, the bill that allows cities and towns with less than $500,000 in total revenues the option of providing a compilation of financial statements instead of a full audit, was approved by the House Ways and Means Committee on Thursday. The committee approved the subcommittee amendments that includes language that shifts the responsibility of collecting county audits from the state’s comptroller general to the state treasurer and allows the treasurer to grant a 90-day extension to counties that show probable cause for an extension. Next, the bill goes to the House of Representatives for debate. 

The Municipal Association included the permitting of financial statements for smaller cities in its 2023 – 2024 Advocacy Initiatives.     

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

House Ways and Means Committee passes affordable housing bill 
The House Ways and Means Licenses, Fees, Insurance Tax and Other Charges subcommittee met on Tuesday and amended and passed favorably S284, the bill that allows state and local accommodations and hospitality taxes to be used for the development of workforce housing. On Thursday, the full House Ways and Means Committee approved the subcommittee amendment and gave the bill a favorable report. The amendment deletes references to hospitality taxes, imposes an annual 15% cap on the amount of accommodations taxes used, includes a seven-year sunset, and requires a report to the General Assembly on the effect that the implemented legislation has on tourism and workforce housing. Next, the bill goes to the House of Representatives for debate. 

For questions about the affordable housing bill, contact Scott Slatton (sslatton@masc.sc) at 803.933.1203. 

Bond reform legislation in conference committee  
H3532, the bill that creates sentencing enhancements for persons who commit certain additional crimes while on pretrial release on bond, is in a conference committee to work out the differences between the House and Senate versions of the bill. Conference committee members includes Sens. Malloy, Hembree and Adams and Reps. Jeff Johnson, Robbins and Wetmore. 

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

Senate passes tobacco flavoring bill   
H3681, the bill that prohibits municipalities from enacting laws, ordinances or rules pertaining to ingredients and flavors of cigarettes or e-cigarettes, was given a second reading by the Senate on Wednesday and third reading on Thursday. The bill was amended to include language from S414 regarding tobacco enforcement. The bill now goes back to the House for further amendments or concurrence.   

This bill allows cities and towns to continue to control zoning for shops that sell these products, and grandfathers in cities and towns that have ordinances adopted before 2021 relating to ingredients and flavors of tobacco.   

For more information on this bill, contact Scott Slatton (sslatton@masc.sc) or 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 

Committee Report

House Labor, Commerce and Industry Public Utilities subcommittee 
H3989 – Enacts the Solar, Agricultural, Farmland and Environmental Act - favorable report as amended. The amendment adds taxable as agricultural land to the first section and strikes the additional 10% fund. Later in the day, the full House, Labor, Commerce and Industry Committee gave the bill a favorable report as amended by the subcommittee. 
Summary of the bill as introduced: Establishes certificate requirements for construction of photovoltaic energy facilities.
  

House Judiciary Committee 
S566 – Enacts the South Carolina Craft Beer Economic Development Act – favorable report 
Summary of the bill as introduced: Allows a brewery to sell up to 2,000 barrels of beer each year brewed on one or more of the brewery's permitted premises at retail or wholesale. 
S330 – Adds tiered penalties for damage to an electric utility system – favorable report as amended. The amendment adds language from the House version of the fentanyl bill. 
Summary of the bill as introduced: Adds tiered penalties for damage to an electric utility system. 
S252 – Enacts the Law Enforcement Personal Information Privacy Protection Act – favorable report 
Summary of the bill as introduced: Allows a law enforcement officers to formally request that his personal identifying information held by the state or a local government be held confidential.
  

House Labor, Commerce and Industry Committee 
S500 – Establishes grant criteria and matching grant funds available to local governments from the SC Hurricane Damage Mitigation Program – favorable report 
Summary of the bill as introduced: Establishes grant criteria and matching grant funds available to local governments from the SC Hurricane Damage Mitigation Program.  
H4086 – Requires that certain licensees of the Residential Builders Commission be deemed to satisfy certain implied warranties – favorable report as amended by the subcommittee. 
Summary of the bill as introduced: Requires that certain licensees of the Residential Builders Commission be deemed to satisfy certain implied warranties.
 

Senate Banking and Insurance Committee 
S544 – Allows insurers to post an insurance policy or endorsement on their website – favorable report 
Summary of the bill as introduced: Allows insurers to post an insurance policy or endorsement on their website if certain conditions are met. 
H3977 – Allows insurers to post an insurance policy or endorsement on their website – the committee did not take action on the bill although it was on the agenda. 
Summary of the bill as introduced: Allows insurers to post an insurance policy or endorsement on their website if certain conditions are met.
 

Senate Judiciary subcommittee 
H3782 – Amends the definition of video service in relation to franchise authority – favorable report as amended. The amendment adds clarifying language to the definition of video service. 
Summary of the bill as introduced: Amends the definition of video service in relation to franchise authority to include direct to satellite and streaming services. 
H3503 – Creates an offense for trafficking in fentanyl – favorable report as amended. The amendment strikes the House language in the bill and replaces it with Senate language. An additional amendment adds language that includes penalties for felony gun possession charges. 
Summary of the bill as introduced: Creates an offense for trafficking in fentanyl.
 

House Ways and Means Committee 
H3824 – Adds electricity to the definition of alternative fuel – favorable report 
Summary of the bill as introduced: Adds electricity to the definition of alternative fuel for the purposes of an income tax credit equal to 25 percent of the cost of purchasing, constructing and installing the eligible property. 
H3948 – Creates a property tax exemption for certain renewable energy resource properties – favorable report as amended by the subcommittee. 
Summary of the bill as introduced: Creates a property tax exemption for certain renewable energy resource properties. 
H3425 – Removes the SC Police Officers Retirement System and SC Retirement System earnings limitation upon returning to work in certain circumstances – favorable report as amended by the subcommittee. 
Summary of the bill as introduced: Removes the SC Police Officers Retirement System and SC Retirement System earnings limitation upon returning to work after 12 consecutive months away from work. 
S108 – Provides a death benefit for law enforcement officers killed in the line of duty – favorable report as amended. The amendment clarifies existing language in the bill. 
Summary of the bill as introduced: Provides a death benefit for law enforcement officers killed in the line of duty.