South Carolina Legislative Recap: Week of March 24, 2025

This week at the South Carolina State House saw some major legislative action on tort reform, diversity, equity, and inclusion (DEI) policies, and a significant announcement on income tax cuts. Here’s what you need to know:

Tort Reform Clears the Senate

The Senate passed S.244, a wide-ranging tort reform bill aimed at reshaping South Carolina’s civil litigation landscape. This legislation adjusts joint and several liability rules, tightens liability insurance requirements for businesses serving alcohol, and mandates responsible alcohol server training programs.

Supporters argue that these changes will create a more business-friendly legal environment and protect businesses from excessive litigation costs. However, trial lawyers and consumer advocates warn that the bill could make it harder for victims to receive fair compensation. The bill now heads to the House.

The seven votes against the bill came from Democrats, who argue that it benefits insurance companies and not victims or small businesses.

DEI Legislation Delayed, But Not Forgotten

The House postponed debate on H. 3927, the "Ending Illegal Discrimination and Restoring Merit-Based Opportunity Act." This bill targets DEI policies in state agencies, K-12 public schools, colleges, universities, and political subdivisions, prohibiting them from considering race, sex, or other demographic factors in hiring, admissions, and training programs.

While the delay gives lawmakers more time to review and refine the bill, the battle lines are already drawn.  Many House members opposing the legislation wore black to the debate as a symbol of resistance. Proponents argue that the legislation will promote fairness and merit-based decision-making, while opponents contend that it could undermine efforts to foster diverse and inclusive workplaces and campuses.

Governor and Republican Leadership Push for Income Tax Cuts

Governor Henry McMaster, along with leadership from both the House and Senate, took to the podium this week to champion an accelerated income tax reduction plan. Their proposal aims to lower South Carolina’s top marginal tax rate from 6.2% to 3.99% by the end of 2026, with a potential for further reduction to 2.49% if economic conditions allow.

A key aspect of this plan is that it would introduce tax obligations for roughly 44% of South Carolinians who currently pay no state income tax, many of whom are lower-income earners. Conversely, higher earners—who currently contribute the bulk of state tax revenue—would see their tax rates decline. (Truitt, Post and Courier)

 What’s Next?

As these major bills move through the legislative process, expect intensified debates and strategic maneuvering. Key issues, including education funding, infrastructure investment, and healthcare policy, will also demand attention as Sine Die on May 8 approaches. The next few weeks are critical, and these discussions will shape the remaining timeline of South Carolina’s legislative session.

Stay tuned for updates, and feel free to reach out for deeper insights on how these developments may impact your interests.