Senate members met in regular session on Tuesday, Wednesday and Thursday, debating the SC Department of Transportation modernization bill as well as regulating hemp-derived products. House members met Monday, Tuesday and Wednesday to adopt their version of the budget and income tax cuts. 

The House of Representatives adjourned on Wednesday, and will not meet in statewide session again until noon on March 24. There are nine weeks left in the second year of the 2025 – 2026 legislative session. Election filing for the SC House of Representatives and all state constitutional offices will open on March 16 at noon. 

House of Representatives approves its version of the budget   

The House of Representatives met Monday, Tuesday and Wednesday to debate and adopt its version of the budget. The House version of the budget includes these items:    

• $15.2 million added to the Local Government Fund base amount. Committee members fully funded the LGF at 5% according to Act 84, which passed into law in 2019.    

• $25 million in nonrecurring funding to the SC Department of Transportation for a road buyback program. 

• $49.25 million in recurring funding, $60.44 million in nonrecurring funding and $139 million from the capital reserve fund to the SC Department of Transportation for bridge modernization. 

• $10.5 million in nonrecurring dollars to the SC State Election Commission for voting system upgrades. 

• $17.2 million in nonrecurring funding and $72.8 million from the Capital Reserve Fund to the SC Emergency Management Division for a Federal Emergency Management Agency match. 

• $443,747 in additional recurring funding to councils of governments for financial supportive staff. 

• $750,000 in recurring funding to the SC Department of Natural Resources for abandoned boat removal. 

• $1.5 million in recurring funding to the SC Department of Juvenile Justice for teen after-school and juvenile arbitration. 

• $100 million in nonrecurring funding to county transportation committees in addition to the gas tax distribution. 

• $350,000 to the SC Department of Parks, Recreation and Tourism for Sports Tourism Advertising and Recruitment grants. 

• $7.5 million in nonrecurring funding to the SC Department of Parks, Recreation and Tourism for beach renourishment grants. Municipalities are eligible to apply. 

• $1 million in recurring funding and $7.2 million in nonrecurring funds to the SC Rural Infrastructure Authority rural infrastructure fund. 

• $1 million in recurring dollars and $7.2 million in nonrecurring funds to the SC Rural Infrastructure Authority for a statewide Water and Sewer Fund.  

• $1 million in recurring dollars to the SC Department of Behavioral Health and Developmental Disabilities for mental health alternative transport. 

• $287,029 in recurring dollars to the SC Department of Labor, Licensing and Regulation for the Firefighter Assistance Support Team. 

Provisos were also adopted that affect cities and towns: 

67.16 (DJJ: Capital Expenditure Charge) Local governments, except for municipalities with populations of three thousand or less, utilizing the juvenile detention services provided by the Department of Juvenile Justice shall pay a capital expenditure charge of $125 per day per child not to exceed 25 days to the department for new admissions after July 1, 2025, to cover capital expenditures and investments in the facilities that house such juveniles. Municipalities with populations of three thousand or less utilizing the juvenile detention services provided by the Department of Juvenile Justice shall pay a capital expenditure charge of $50 per day per child not to exceed 25 days to the department for new admissions after July 1, 2026, to cover capital expenditures and investments in the facilities that house such juveniles. This capital expenditure is in addition to the per diem charge of $50 that offsets operating expenses. If full funding is not received from the local governments, then the remainder of the funds due shall be transferred to the department from the local government fund on behalf of such local governments. The transfer to the department of behalf of the local government shall be deemed to have been distributed to the local government. 

84.18. (DOT: Road Buyback Program) From the funds appropriated to the Department of Transportation for the Road Buyback Program, the department shall be directed to identify and compile a list of roads on the state highway system that may be eligible for transfer in accordance with Section 57-5-80. The department shall evaluate roads that may no longer serve a statewide purpose and determine whether such roads are more properly maintained by a county, municipality, or other appropriate political subdivision. In making this determination, the department shall consider functional classification, traffic volume, connectivity, and consistency with the statewide transportation plan. In accordance with Section 57-5-80, roads deemed eligible for transfer shall be those which, in the opinion of the department, are no longer needed to serve the purpose of the state highway system. The department may negotiate with the governing bodies of the appropriate political subdivisions for the transfer of maintenance responsibilities for such roads. Road Buyback Program funds shall be used to assist with costs related to the transfer of roads from the state highway system including, but not limited to, resurfacing, design improvements, documentation, and transition-related expenses agreed upon by the department and political subdivision. The department shall submit the list of identified roads, along with criteria used for selection and any recommendations regarding the transfer process, to the Chairman of the Senate Finance Committee, the Chairman of the House Ways and Means Committee, and the Governor by February 28, 2027. 

108.5. (PEBA: State Health Plan) Of the funds authorized for the State Health Plan pursuant to Section 1-11-710(A)(2),an employer premium increase of 4.6 zero percent and a subscriber premium increase of zero percent will result for the standard State Health Plan for Plan Year 2026 2027. Notwithstanding the foregoing, pursuant to Section 1-11-710(A)(3), the Public Employee Benefit Authority may adjust the plan, benefits, or contributions of the State Health Plan during Plan Year 2026 2027 to ensure the fiscal stability of the Plan. 

Next, the budget will go to the Senate Finance Committee for debate. For questions about the budget, contact Daina Phillips (dphillips@masc.sc) at 803.933.1203.   

Bond bill carried over by a Senate subcommittee  

S891, a bill that would require Installment Purchase Revenue Bonds to count towards the constitutional debt limit for cities and counties, was carried over by the Senate Finance Constitutional subcommittee on Wednesday. Todd Glover, executive director of the Municipal Association, testified against the bill on behalf of cities and towns. Special thanks goes to the cities and towns of Goose Creek, Forest Acres, Greenwood, Walterboro, Greenville, Rock Hill and Columbia for reaching out to subcommittee members and other senators to express concern about the bill. 

S891 would restrict the ability of cities to use IPRBs for projects that benefit residents and businesses. If cities and towns have current projects in place, are planning to use an IPRB for future projects, or have used an IPRB for a past project since 2006, this bill would affect the project and the financing.  

The subcommittee did not indicate a plan for an additional meeting. For questions about this bill, contact Daina Phillips (dphillips@masc.sc) at 803.933.1203. 

Concurrency bill approved by Senate committee 
Right before moving to the State House’s underground garage because of a tornado warning, the Senate Labor, Commerce and Industry Committee gave a favorable report, as amended by the subcommittee, to S227, a concurrency bill. The bill seeks to give local governments the statutory authority to condition land development approval on the availability and adequacy of public facilities.  

The subcommittee amendment approved by the full committee, which was sponsored by the full committee chairman, would  

• limit concurrency programs to transportation, water, wastewater, stormwater, law enforcement, fire and EMS;  

• prohibit applying concurrency to schools, parks, libraries or other unlisted facilities; 

• require objective, uniformly applied level-of-service standards reviewed at least every five years;  

• prohibit local governments from denying developments if the applicant provides proportionate-share mitigation, while requiring that developers receive credit for prior contributions and not be required to fix preexisting deficiencies beyond their share;  

• gives local governments 36 consecutive months to mitigate deficiencies, if this is not possible, the local government must implement correctve actions; 

• set procedural requirements and allow binding agreements and phased improvements, as well as required action, if standards are not met for 36 months;  

• exempt affordable housing developments meeting specified income or financing thresholds; and  

• prohibit a county from exercising concurrency within a municipality.  

Next, the bill will go to the full Senate for debate. Sen. Tom Davis (R-Beaufort) told committee members that he plans to block the bill until all stakeholders have had a chance to voice concerns and work together on an amendment. For questions about the concurrency bill, contact Erica Wright (ewright@masc.sc) at 803.354.4793.  

Property tax cut bills update 

S768, an increase in the property tax homestead exemption to $150,000 for South Carolina resident homeowners 65 years old and older, was passed by the Senate and sent to the House for debate. This bill includes a local government reimbursement with the increase in the exemption for local governments. The bill is currently in the House Ways and Means Committee. 

H3858, a bill that decreases the tax on boats by 50% in the state and deletes the requirement that outboard motors be titled separately from hulls, was passed by the Senate. Next, the bill goes back to the House to concur on the Senate amendments or make further amendments to the bill. 

H5006, a bill that exempts $10,000 from business personal property taxes for small businesses, unanimously passed the House of Representatives and is now in the Senate Finance Committee for consideration.  

For questions about these tax bills, contact Webster Hall (whall@masc.sc) at 803.933.1232.