Provided by Copper Dome Strategies, LLC

Two-thirds of the eighteen-week legislative session has been completed, and just six weeks remain before the May 9 adjournment. Both chambers were busy this week working through their calendars to move legislation before the April 10 crossover deadline. The House passed legislation to enhance our state’s energy needs and a bill prohibiting diversity, equity and inclusion programs on college campuses, among many others.

Tax

This week, the House adopted H. 4594 (Reps. Ballentine, Pope, Clyburn and West), known as “Tax Conformity.” The bill updates the reference to the Internal Revenue Code to the year 2023 for South Carolina income tax purposes. The bill is now in the Senate for consideration.

The Senate Finance Committee Sales & Income Tax Subcommittee adopted H. 4087 (Reps. G. M. Smith, West, Kirby, Ballentine and others) on Tuesday, which amends current law relating to corporate income tax credits and recycling facility tax credits. The bill now goes to the full Senate Finance Committee for consideration.

Artificial Intelligence

The House Artificial Intelligence (AI) Ad Hoc Committee met again yesterday. The committee heard from the Chief Information Officer and the head of the Computer Crime Center at the South Carolina Law Enforcement Division (SLED) regarding cyber crimes in our state. The committee, led by Representative Jeff Bradley (R-Beaufort), will continue to study Artificial Intelligence (AI), cybercrime and cybersecurity in recognition of the increasing significance of AI technology and the need to ensure the protection and welfare of South Carolina citizens in an evolving technological landscape. Video archives of the meeting can be found here.

Animal Welfare

The Senate Judiciary Committee adopted S. 849 (Senator Verdin) on Tuesday, which adds Xylazine as a Schedule III controlled substance. The bill provides an exemption for pharmaceutical compounding by a licensed pharmacist or veterinarian for use in a nonhuman species. The House passed similar legislation, H. 4617 (Rep. Hixon), in January. The bill now goes to the full Senate for consideration.

Agribusiness

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he House Agriculture, Natural Resources and Environmental Affairs Committee adopted H. 5169 (Reps. Haddon, G. M. Smith, Hiott and others) on Tuesday, which enacts the “Farmers Protection Act” to prevent discrimination in financing against farmers. The bill received second reading in the House yesterday, and a unanimous consent request allowed the bill to receive third and final reading today. The bill now goes to the Senate for consideration.

The Senate Agriculture and Natural Resources Committee adopted, as amended, S. 1150 (Senator Climer) on Wednesday, which would make it unlawful to label any cultivated food product as beef, poultry, fish or any other meat that a cultivated food product may resemble for the purposes of manufacturing, selling or holding or offering for sale in this state. The bill now goes to the full Senate for consideration.

On Wednesday, the Senate gave third and final reading approval to S. 1017 (Senators M. Johnson, Peeler and Climer), which relates to property tax exemptions and also provides that certain property assessed as agricultural may not be annexed by a municipality. The bill now goes to the House for consideration.

Budget

The Senate Finance budget subcommittees are wrapping up hearing state agency budget requests in preparation for the full committee debate on the FY2024-25 General Appropriations bill H. 5100 and the Capital Reserve Fund bill H. 5101, expected to begin on April 9. The $13.2 billion General Fund Budget also includes an estimated one-time budget surplus of about $1 billion. Agencies appearing this week included the Charter Institute at Erskine, the Office of Resilience, the Department of Commerce, the Department of Insurance and the Department of Labor, Licensing and Regulation. Full floor debate in the Senate is expected to begin on April 23. House and Senate leaders have informed their bodies that the budget will not be completed by the May 9 adjournment date, and they are tentatively planning to return June 18-20 to adopt a Conference Report on the state budget. They would return again June 26-28 to address gubernatorial vetoes.

Video archives of the meetings can be found here.

Individual state agency budget requests can be found here.

Furlough

The House of Representatives will take next week off for their Easter furlough. They will return on April 9. The Senate will be in session next week but will be in perfunctory session the following week while the Senate Finance Committee debates the state budget. Legislative rules require that in order for bills to be considered by the opposite chamber this year, all bills must receive third and final reading by April 10. As this is the second year of a two-year legislative session, any bills that do not become law this year will effectively die and must go through the entire process again next year.

General Business

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n Wednesday, the Senate Banking and Insurance Committee received “An Overview of the Insurance Market in South Carolina” from Michael Wise, Director of the South Carolina Department of Insurance.

The House Labor, Commerce and Committee adopted H. 4189 (Rep. Sandifer) on Wednesday, which updates existing law relating to captive insurance companies. The bill received second reading in the House yesterday, and a unanimous consent request allowed the bill to receive third and final reading today. The bill now goes to the Senate for consideration.

Tuesday, the Senate unanimously adopted H. 3992 (Reps. Blackwell and McGinnis) relating to delinquent unemployment tax rates. The bill permits employers with installment payment agreements to pay the tax at a reduced rate and provides for the automatic reversion of this rate upon failure to timely comply with the payment agreement. The bill now goes to the House for consideration.

Healthcare

On Tuesday, the House Medical, Military and Municipal Affairs Committee adopted H. 5183 (Reps. M. M. Smith, West, Hewitt and others), which would allow for the delegation of certain nursing tasks to unlicensed assistive personnel by Certified Medical Assistants. The bill received second reading in the House yesterday, and a unanimous consent request allowed the bill to receive third and final reading today. The bill now goes to the Senate for consideration.

The House Ways and Means General Government Subcommittee approved H. 5236 (Reps. Bannister and Herbkersman) on Tuesday, which will authorize the Department of Health and Human Services (DHHS), or any successor agency, to award contracts and procure Medicaid systems and services using competitively solicited NASPO ValuePoint Master Cooperative Purchasing Agreements. The bill was approved by the full Ways and Means Committee on Wednesday and now goes to the full House for consideration.

The Senate gave third and final reading approval to S. 1074 (Senator Davis), which changes the requirements of a Certified Medical Assistant (CMA) and allows for the delegation of certain nursing tasks pursuant to the physician assistant’s scope of service. The bill would also define what medical services an Unlicensed Assistant Personnel (UAP) can perform. The bill now goes to the House for consideration.

Higher Education

On Tuesday, the House Education Committee adopted H. 4703 (Reps. Davis and Pope), which establishes the “South Carolina STEM Opportunity Act.” The bill creates the South Carolina Science, Technology, Engineering and Mathematics (STEM) Coalition and the SC STEM Advisory Council. The purpose is to provide a coordination point for STEM education programs in K-12 and higher education throughout South Carolina and, in coordination with business and industry, support the long-term economic prosperity of our state. The committee also adopted H. 4702 (Reps. Davis and Pope), which enacts the “South Carolina Computer Science Initiative Act.”

Wednesday, after considerable debate, the House voted 84-30 along party lines and adopted H. 4289 (Reps. McGinnis, Erickson and Ballentine) dealing with diversity, equity and inclusion (DEI) initiatives. Proponents argued that the bill aims to ensure that our colleges and workplaces emphasize merit and individual achievement over mandatory diversity pledges and training. It would prohibit a public institution of higher learning from promising admissions or benefits to certain applicants for support or disagreements with statements regarding diversity, equity, inclusion (DEI) or associated issues. The bill prohibits preferential treatment based on identity, prohibits mandatory training on DEI and also codifies free speech to ensure people aren’t discriminated against “on the basis of viewpoint discrimination.” Opponents say the bill is micro-managing and call it a “far-right” effort to make colleges less diverse. The bill now goes to the Senate for consideration.

This week, the House adopted H. 4349 (Rep. Bannister), which revises the requirements of the Greenville Technical College Area Commission. The bill now goes to the Senate for consideration.

Legal/Judicial

The Senate Judiciary Committee approved S. 533 (Senators Alexander, Peeler, Cromer, Davis and others) on Tuesday, known as Joint and Several Liability, as well as other Tort related bills (S. 1048S.1175S.543 and S.87). On Wednesday, S. 533 was set for Special Order, giving it masthead status on the Senate calendar. Since the Senate was in perfunctory session yesterday, the debate on that bill will begin on Tuesday.

House Speaker Murrell Smith (R-Sumter) told the body on Thursday that after speaking with Senate President Thomas Alexander (R-Oconee), the General Assembly will likely hold a Joint Session on June 5, 2024, to elect a successor to fill the vacant seat on the Supreme Court. The vacancy was created when Justice John Kittredge was recently elected to replace Chief Justice Don W. Beatty, who will reach the mandatory retirement age for justices this summer.

Utilities

By a vote of 88-21, the House adopted H. 5118 (Reps. G. M. Smith, West, Davis and others) this week, which enacts the “South Carolina Ten-Year Energy Transformation Act.” Rep. Jay West (R-Anderson) said this bill is in response to the “crisis point” we face with energy supply, aiming to fortify our infrastructure to meet the surging demand. The bill will streamline regulatory processes to facilitate the swift development of new energy projects, ensuring our infrastructure can support South Carolina’s continued growth. Among other things, the bill would help pave the way for a new gas-fired power plant in Colleton County and reshape the state’s energy framework by providing reforms to the Public Service Commission (PSC), which regulates utilities in South Carolina. Proponents of the legislation note the need for additional electricity generation to meet the needs of our growing state. Environmental groups oppose the plan. The bill now goes to the Senate for consideration.