ASTOUNDING!

Dear Friends:

It was an ASTOUNDING week that ended this year’s SC legislative session. I might also describe it as EXTRAORDINARY and HISTORIC. In past legislative sessions, I often felt a twinge of disappointment because we left worthy legislation behind. Not so this year. And this is only the first year of a two-year session!

Just a week ago, it seemed doubtful that the agreement could be reached on two significant issues: liquor insurance relief for restaurants and a sweeping energy package to ensure that a growing SC has all the energy it needs to prosper. But success was found.

House Speaker Murrell Smith summed up this year’s session, “You measure your success on the substance of bills that pass, and we really concentrated on big-ticket items.”

Landmark Liquor Liability Reform Sent to Governor

One of the big-ticket items we passed this week was legislation to drive down skyrocketing insurance premiums for businesses across South Carolina.

Small businesses across South Carolina, especially bars, restaurants, and VFW posts, have faced unsustainable insurance premiums and the looming threat of massive jury verdicts. Providing relief has been a top priority, and I was proud to support H.3430, a landmark liquor liability bill that will bring real reform and help protect our hospitality industry.

This bill pairs critical liquor liability improvements with updates to our state’s joint and several liability statutes. It ensures that businesses are only held responsible for their share of fault, not punished for the actions of others. It also establishes a responsible alcohol server training program and creates new liability risk mitigation incentives, giving businesses tools to reduce risk and lower premiums.

The critical legislation will be signed into law by the governor. This is the third time in two years that the House has led on this issue, and we have finally reached the finish line.

Securing Our Energy Future

The House and Senate secured SC’s energy future by passing the South Carolina Energy Security Act (H.3309). As with other critical bills, it is now on its way to the Governor to be signed into law. It lays the foundation for a stronger, more reliable energy future.

This major forward-looking legislation was crafted in response to the surging demand caused by our state’s population and economic growth. This bill ensures thoughtful oversight of utilities, encourages investment in nuclear and renewable energy, and expands transmission and storage capacity. It also reflects our “all-of-the-above” strategy to protect ratepayers, promote innovation, and avoid dangerous disruptions like those nearly experienced during the 2022 Christmas freeze. With the Governor’s signature, we’ll take a major step forward in keeping South Carolina’s economy competitive and our power grid secure.

Historic Tax Reform

A decade from now, this session will likely be remembered for its bold initiative to reform the SC income tax. In a marathon Tuesday session, the conservative vision for tax reform passed the House and was sent to the Senate, which will consider it next year.

The latest version (H.4216) provides a path to an eventual 0% state income tax rate and would result in a tax cut for a vast majority of state taxpayers. The plan:

• Cuts state spending and devotes over $400 million to income tax relief
• Lowers the current 6.2% income tax rate to 5.39%
• Commits to additional spending cuts, setting a path of reducing state income tax rates to 1.99% over 5 years.
• Aims to eliminate the state income tax (ZERO PERCENT!) in 10 years
• Lowers SC tax rate, boosting jobs and competitiveness
• Importantly, separates SC tax policy from Washington D.C. mandates

This plan means that nearly 75% of tax filers will see either a reduction or no change in their tax liability in the first year. SC cannot decouple from the federal income tax and flatten the tax rate without some people paying something. The principle of a fair, flat tax is that the rate is low, with everyone paying something. 

This tax reform provides income-adjusted deductions up to $90,000. It also maintains all the current exemptions for military veterans, etc.

In the current model, those with an adjusted gross income of 40k-50k will have an average increase of $84. Those in the 50k-75k range will pay an average of $152 more. At $100K, it will be an additional $230. On the other end of the scale, those making $1M will see their state tax double.

No tax plan is perfect, but this is a starting point for phasing out SC’s income tax over the next decade.

Political Hypocrisy Footnote. The archconservative Freedom Caucus members joined Democrats in the final vote opposing tax reform to reduce taxes. A hypocrisy fact check is needed. While their final vote was against tax reform, they may not want to explain why they voted FOR the amendment that became the bill. It’s just more ‘Political Shenanigans’ from the Freedom Caucus Clowns.

New School Choice Program is Law

On Wednesday, Governor McMaster signed S.62 into law, reestablishing the Education Scholarship Trust Fund program and restoring school choice scholarships to thousands of families. This legislation will allow up to 15,000 K-12 students in SC to receive $7,500 scholarships next year to assist them with their education.

School choice has been a top priority for Republican legislators since the state Supreme Court ruled that private tuition payments were unconstitutional last September. When the state stopped funding the original choice program, private donors stepped up to pay the tuition for about 800 students.

School choice is about giving every child a chance to succeed — no matter their ZIP code or income level. I promised to fight for more options and better outcomes for SC families, and I believe this bill delivers on that promise.

Eyes Up, Phone Down

On Wednesday, the House took its final vote on the Hands-Free Distracted Driving bill by concurring with amendments added by the Senate to strengthen the law. It is now being sent to Governor McMaster.

This legislation increases penalties for repeat offenders, protects privacy rights, and dedicates more resources to public education campaigns. Distracted driving is one of the leading causes of preventable accidents, and this bill helps save lives while respecting individual rights.

Tougher Penalties for Fleeing Police

It will soon be a felony to flee from law enforcement in cases involving high-speed chases or other aggravating circumstances. This week, the House also passed H.3127 and sent it to the Governor for his signature. The bill includes enhanced penalties for actions such as exceeding 100 mph, driving on the wrong side of the road, or endangering others during a pursuit. It sends a clear message – if you put lives at risk to evade the law, you will be held accountable.

Fentanyl-Induced Homicide Bill

The fentanyl crisis is devastating families across our state. The House agreed with the Senate and approved critical legislation (S.156) that creates the offense of fentanyl-induced homicide, making it a felony to provide fentanyl that results in someone’s death unlawfully.  This bill, which ensures justice for victims and holds drug dealers accountable for the lives they destroy, is on its way to the Governor’s desk.

Protecting Victims from Online Exploitation

Also, on the way to the Governor is (H.3058), which cracks down on the non-consensual sharing of private and digitally altered images. This bill criminalizes the unauthorized disclosure of intimate or AI-generated images, protecting South Carolinians from growing digital exploitation. It’s another step forward in our commitment to prioritize public safety and law-and-order policies in a changing world.

Health Agency Consolidation

Among the legislation that Gov. McMaster signed into law is a bill merging three health agencies that provide services for people with mental health issues, disabilities, and drug and alcohol addictions. This is a much-needed consolidation for government efficiency, making it easier for South Carolinians to get needed health care. The passage comes a year after the Freedom Caucus blocked a larger merger attempt involving three additional agencies at the close of the 2024 session.

What’s Ahead

Our work isn’t done. We return to the State House on May 28 to finalize the state budget that takes effect July 1. Differences in the House and Senate versions are always worked out in a conference committee. The House and Senate have agreed on teacher raises and funding for more school police officers. State employees won’t be asked to pay more for health insurance. They must also sort out differences in whether colleges should be allowed to raise tuition incrementally. One substantial change from previous state budgets is that this year’s package won’t include any spending requested by legislators for local projects, or earmarks.

As this is the first year of a two-year session, any legislation that does not pass both chambers can still be considered in the new year.

PHOTO OF THE WEEK

Early Tuesday morning – the best way to kick off a challenging final legislative week is to enjoy our 3-year-old grandson, Heath, at his preschool for “Donuts For Grownups.”