SC State House Sine Die Recap: Week of May 5, 2025

The 2025 regular legislative session officially gaveled out this week with Sine Die, the ceremonial end of session. But it’s not over just yet — lawmakers will return on May 28 to finalize the state budget.

Let’s break down what made it across the finish line, what stalled, and what’s still in play.

Energy Bill Passes Without Consumer Protections

The South Carolina Energy Security Act, H.3309, was passed by the General Assembly and is awaiting Governor McMaster's signature. Critics have noted that the final version lacks certain consumer protection provisions, potentially allowing utilities to raise customer rates annually with minimal oversight. Notably, the bill excludes specific language related to data centers, which was reportedly one of the final sticking points during negotiations.

Tax Reform Advances but Awaits Senate Action

The House passed H.4216, which would restructure personal income tax into two brackets:

• 1.99% on taxable income up to $30,000

• 5.39% on income above $30,000

The long-term goal is to simplify the tax structure, potentially moving toward a flat or zero-rate system. Approximately 24% of taxpayers might initially experience a tax increase under this plan.

The Senate did not take up the bill before adjournment — expect tax reform discussions to return in 2026.

Hands-Free Driving Is Coming to SC Roads

The "South Carolina Hands-Free and Distracted Driving Act," H.3276, prohibits holding a phone while driving. Permitted hands-free options include earpieces, dashboard mounts, wrist devices, and voice-activated technology. Penalties are:

• First offense: $100 fine

• Second and subsequent offenses: $200 fine and two points on the driver's license

The bill is expected to be signed into law, with implementation later this year.

School Choice Expansion Approved

Governor McMaster signed S.62, establishing the Education Scholarship Trust Fund Program. This program provides eligible students with scholarships to pay for education-related expenses, including private school tuition. Supporters argue it expands access and parental choice, while critics are concerned about potential impacts on public education funding

Liquor Liability Reform Finalized

To address rising insurance costs for establishments serving alcohol, lawmakers passed H.3497. The bill maintains the $1 million liability insurance requirement but allows reductions if businesses implement approved safety and training measures. It also preserves joint and several liability. The Senate passed the bill 41–1; it awaits the Governor’s signature.

Government Efficiency Committee

In a surprise end-of-session move, Senators passed the "Delivery of Government Efficiency Commission Act," S.318, creating a new committee focused on streamlining state government. The commission would:

• Survey government structure and spending

• Recommend modernization strategies

• Identify specific spending reductions

  
  

The commission would comprise nine members appointed by the Governor, Speaker of the House, and President of the Senate, with the Director of the SC Department of Administration serving as chair.

Recommendations would be submitted to legislative leaders and potentially presented to relevant budget subcommittees.

Budget Bill Still In Progress

The General Assembly will return May 28 to finalize the state’s $14 billion budget, H.4025, which currently excludes earmarks — or what lawmakers call "community investment items."

Bills Headed to the Governor to Become Law

·  S.156 – Fentanyl-Related Homicide: Establishes a new felony offense for individuals who unlawfully distribute fentanyl or related substances resulting in another person’s death.

·  H.3127 – Failure to Stop for Blue Lights: Increases penalties for high-speed pursuits, repeat violations, and incidents involving injury or death; removes mandatory minimums for first offenses.

·  S.2 – Health Agency Restructuring: Consolidates the Department of Mental Health (DMH), Department of Disabilities and Special Needs (DDSN), and Department of Alcohol and Other Drug Abuse Services (DAODAS) into the new Department of Behavioral Health and Developmental Disabilities to streamline services and improve coordination.

What Didn’t Cross the Finish Line

·  S.534- Impeachment of Treasurer Curtis Loftis: The Senate voted 33–8 to approve a resolution recommending Treasurer Loftis’s removal after an investigation into a $1.8 billion accounting anomaly. However, the House did not act on the resolution before the session ended. Speaker Murrell Smith indicated that the matter is now in the hands of voters for the 2026 election.

·  H.3927- DEI Restrictions: The House passed a bill targeting Diversity, Equity, and Inclusion (DEI) programs, prohibiting such initiatives in state agencies, universities, and contractors that allegedly violate federal discrimination laws. The bill stalled in the Senate and may be revisited in a future session.

Thank you

At Alpha Strategies, we’re proud to be your trusted partner for navigating South Carolina’s policymaking process. Whether you’re a business leader, nonprofit advocate, or engaged citizen, we understand how these decisions shape daily life and long-term strategy.

We’ll be closely watching as the budget process wraps up — and already preparing for what’s shaping up to be a pivotal 2026 session.

Thanks for trusting Alpha Strategies to keep you informed and ahead of the curve.