With only three legislative days remaining, the General Assembly is heading into the final stretch of this year’s session with a long list of priorities still unresolved. While few bills have officially crossed the finish line, many remain in play as lawmakers race against the clock.
Budget/Tax Reform Update
Last week, the Senate passed its version of the state budget, denying over $600 million in agency funding requests and eliminating all earmarks — or as they’re often called, “community investments.” Senate Finance Chairman Harvey Peeler suggested that local funding requests should go through a competitive grant process instead. The House is expected to restore its original version of the budget early next week before sending it back to the Senate, likely prompting a conference committee. One thing is clear: both chambers agree that earmarks are off the table this year.
The focus on cutting earmarks is largely driven by an effort to prioritize tax reform. The House Ways and Means Committee advanced an amended income tax bill this week. The proposal would create a two-bracket system — 1.99% on the first $30,000 of income and 5.39% on income above that. If the state continues its trend of 5% annual revenue growth, the top rate would drop by 0.2% each year. The revised plan decouples from the federal tax system and eases the tax burden for many, with 42% of residents expected to see lower taxes and about a third seeing no change. While the bill is expected to pass the House next week, the Senate is unlikely to act on it this session.
Tort Reform: Our Top Priority
Progress on tort reform, the Chamber’s top legislative priority, gained momentum this week. In a strategic move, the House Judiciary Committee used a procedural rule to attach the House’s liquor liability bill to multiple Senate bills, including legislation on unrelated issues. This puts pressure on the Senate to either accept the amendment or risk losing their bills altogether.
Chairman Weston Newton acknowledged ongoing House-Senate discussions on a path forward, but noted time constraints made it unlikely the House would take up the comprehensive Senate tort reform bill.
While both chambers have addressed liquor liability in their respective bill, only the Senate bill includes broader tort reform provisions. South Carolina Department of Insurance Director Michael Wise testified that the state’s lawsuit climate is the primary reason insurers decline to offer liquor liability coverage here. Without a comprehensive tort reform bill, our hospitality industry will continue to face serious challenges. Simply passing a liquor liability measure is not a solution—it’s a temporary fix that fails to address the root of the problem.
Just two days later, the full House Judiciary Committee convened a Tort Reform Ad Hoc Committee to begin work on Section 1 of the Senate’s comprehensive bill, which addresses the apportionment of fault in tort cases, the procedures for including nonparties in the verdict form and the rules governing joint and several liability. The goal was to educate the committee on South Carolina’s tort system, the Senate’s proposed changes and a possible compromise. Although only invited attorneys were permitted to testify, the Metro Chamber Coalition submitted a letter of support for Section 1 of the Senate bill.
With time running short and the Senate signaling that liquor liability reform alone is insufficient, lawmakers are now focusing on what “liquor liability plus” measures could realistically pass. The committee plans to continue work into the fall on unresolved issues like the statute of repose, though the chairman hopes to pass Section 1 and liquor liability reforms this session.
Following Thursday’s session, a meeting was held to advance the House’s “liquor liability plus” bill, which passed subcommittee without testimony and heads to full committee on Tuesday. The bill, H. 3497—originally returned by the Senate with broad tort reform language—was amended in subcommittee with a “strike and insert” hybrid combining elements from both chambers. If passed by the full House, the Senate must decide whether to concur with the changes or send it to a conference committee, which must meet before the May 8, 5 p.m. deadline since the bill is not included in the current sine die resolution.
Looking Ahead
With the crossover deadline eliminated for the first time, nearly every bill remains alive, creating a chaotic and unpredictable final week. Expect intense negotiations, procedural tactics and a push to position key bills for quick movement in 2026—the second year of the two-year session.
As always, I’ll be in Columbia monitoring every move and advocating for the interests of the Charleston business community. If you have any questions, please do not hesitate to reach out.
