The SC General Assembly convened on Tuesday, January 13, for the second half of the two-year session, with a new senator and four new House members from special elections conducted since the legislature adjourned in May 2025.
House and Senate members met in session on Tuesday, Wednesday and Thursday picking up where they left off in May with bills on the calendar. The House Ways and Means Committee began work on the state budget, while senators began discussions in subcommittee on property taxes.
SC Department of Transportation reform bill
The SC House DOT Modernization Ad Hoc Committee met twice this week to discuss draft legislation to modernize and streamline the SC Department of Transportation. Committee members expect a bill to be introduced next week and will be referred to the House Ways and Means Committee. The current draft includes the following:
- Restructures the SCDOT Commission and transfers the ability to appoint a secretary of transportation to the governor with advice and consent from the Senate.
- Creates a voluntary road transfer program and provides incentives for local governments that accept roads eligible for transfer.
- Creates a Coordinating Council for Transportation Mobility to oversee long-range planning.
- Requires municipalities to formally refuse SCDOT highway work in writing at least 180 days before right-of-way acquisition, or the project will be automatically approved. Disapprovals are allowed, and will cancel projects unless the CCTM determines it is in the state’s best interest to proceed. Additionally, municipalities that unreasonably delay project schedules as communicated by SCDOT will be required to cover cost increases that occur as a result.
The Municipal Association was successful in adding language in a version of the bill draft to require municipal representation on county transportation committees, but that language was removed during the second meeting. Local elected officials are encouraged to share the importance of municipal representation on county transportation committees with their legislative delegation while this bill is still in subcommittee.
For questions about the SCDOT modernization bill, contact Erica Wright (ewright@masc.sc) at 803.354.4793.
House Ways and Means Constitutional subcommittee
The House Ways and Means Constitutional subcommittee met to hear budget requests and testimony from several state agencies, as well as cities and towns. Daina Riley Phillips, legislative and public policy advocate for the Municipal Association, testified on behalf of cities and towns. Phillips asked that lawmakers follow the current law — Act 84, passed in 2019 — requiring that the Local Government Fund’s appropriation follow the increase or decrease of the state budget. Reps. Micah Caskey (R-Lexington), Richie Yow (R-Chesterfield) and David Hiott (R – Pickens) are the House Ways and Means Constitutional subcommittee members, and Rep. Caskey is the new subcommittee chair. For questions about the budget and the Local Government Fund, contact Daina Riley Phillips (dphillips@masc.sc) at 803.933.1203.
Hometown Legislative Action Day
Join the Municipal Association on Tuesday, January 20, at the Columbia Metropolitan Convention Center for Hometown Legislative Action Day. In addition to speakers on civility, politics and transportation, participants will have the opportunity to visit legislators at the State House to discuss important issues to cities and towns. For more information on HLAD registration, contact Christine Sumter (csumter@masc.sc) at 803.933.1208.
From the Dome to Your Home podcast
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.
Senate Judiciary subcommittee
S192 – Implied consent for driving under the influence – carried over
Summary of the bill as introduced: Allows law enforcement agencies to determine which method of testing for alcohol or drugs shall be administered and removes the requirement that a breath test be administered before other sobriety tests.
Senate Finance Property Tax subcommittee
S508 – monument and memorial protection – favorable report
Summary of the bill as introduced: Withholds disbursements from the Local Government Fund for any county or municipality that removes or relocates monuments or memorials.
S768 – Increase in homestead exemption amount – favorable report
Summary of the bill as introduced: Increases the homestead property tax exemption to $100,000, and reduces the age of eligibility to 60 years old.
Senate Finance Sales and Income Tax subcommittee
H4216 – income tax reduction – favorable report
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. The amended version of the bill establishes two tax rates and provides for an eventual reduction to 0%.
S769 – continuing budget resolution for Fiscal Year 2026-2027 – favorable report
Summary of the bill as introduced: Provides for the continuing authority to pay the expenses of state government if the 2026-2027 fiscal year begins without a general appropriations bill.
House Labor, Commerce and Industry Banking and Insurance subcommittee
H4817 – Enacts the Insurance Rate Reduction and Policyholder Protection Act – carried over
Summary of the bill as introduced: Makes changes to the SC Department of Insurance by creating a Fraud Division separate from the Attorney General's office.