Senate members met in regular session, while House members debated and passed their version of the budget and adjourned on Wednesday morning for the week. Senate members met, but didn’t spend much time in the chamber on Tuesday and Wednesday, instead adjourning after a short time each day to continue to meet in small groups and work out a compromise on judicial reform. Senators met in session on Thursday, passed a compromise amendment and gave second reading to a bill that makes changes to the process of selecting judges.
House of Representatives adopts its version of the state budget
The House of Representatives met this week and adopted its version of the state budget. The House version of the budget includes these items:
- $13.8 million added to the Local Government Fund base amount. Committee members fully funded the LGF at 5% for FY 2023-2024 according to Act 84, which passed into law in 2019.
- $1 million in one-time dollars to the state’s ten Councils of Governments.
- $750,000 for post-traumatic stress disorder treatment services for first responders and law enforcement.
- $3 million in recurring dollars to fund the Volunteer Strategic Assistance and Fire Equipment, or V-SAFE, program.
- $3.784 million in recurring dollars for the Firefighter Cancer Fund.
- $11.4 million in one-time dollars for destination-specific tourism grants.
- $200 million to the SC Department of Transportation for bridge modification on interstate and primary highways.
- $30 million to the SC Office of Resilience Disaster Relief and Resilience Reserve Fund.
- $7.9 million in one-time money to the SC Election Commission for elections operations.
- $1 million to the SC Department of Administration for first responder 800 MHz communication modernization.
New provisos adopted by the House
Dam repair funds
An amendment was adopted in the House version of the budget that directs how the money is allocated to a Dam Repair Assistance Fund within the Department of Environmental Services. The interest-bearing fund shall be utilized for cost-sharing grants to correct dam deficiencies identified by the department for high and significant hazard dams regulated under the Dams and Reservoir Safety Act. A grant of up to 75% of the total cost to correct the dam deficiency identified by the department may be paid from the fund. Funds may also be used by the department to administer and manage the grant program. System upgrades appropriations remaining from the FY2023-24 Appropriation Act shall also be deposited into the fund. The department shall draft policies, criteria and guidance for the grant program by October 15, 2024.
Critical-need, return-to-work law enforcement retirees
An additional new amendment was adopted that removes the earnings limitation if compensation received by the retired member from the covered employer is for employment in a critical-need law enforcement position as determined by the SC Law Enforcement Training Council. For this provision to apply, the training council must review and approve, from the documentation provided by the covered employer, that no qualified, nonretired member is available for employment in the position, and that the member selected for employment meets the requirements of this provision. No later than January 1of the current fiscal year, the training council must submit a report to the chairman of the Senate Finance Committee and the chairman of the House Ways and Means Committee of the positions requested for inclusion in the earnings limitation exception under this provision. The earnings limitation exception in this provision only applies to those positions approved by action of the General Assembly for the fiscal year in response to the report submitted by the training council. The training council shall develop guidelines and curriculum for these officers to be recertified.
Provisos continued in the budget from the previous year
98.9 (TREAS: Penalties for Non-reporting) If a municipality fails to submit the audited financial statements required under SC Code Section 14-1-208 to the state treasurer within 13 months of the end of their fiscal year, the state treasurer must withhold all state payments to that municipality until the required audited financial statement is received.
If the state treasurer receives an audit report from either a county or municipality that contains a significant finding related to court fine reports or remittances to the Office of State Treasurer, the requirements of Proviso 117.48 shall be followed if an amount due is specified, otherwise the state treasurer shall withhold 25% of all state payments to the county or municipality until the estimated deficiency has been satisfied. If a county or municipality is more than ninety days delinquent in remitting a monthly court fines report, the state treasurer shall withhold 25% of state funding for that county or municipality until all monthly reports are current. After 90 days, any funds held by the Office of State Treasurer will be made available to the state auditor to conduct an audit of the entity for the purpose of determining an amount due to the Office of State Treasurer, if any.
The penalty provisions in this proviso are suspended during FY 2023-24 for municipalities. The state treasurer is authorized and directed to release all funds withheld from municipalities in the prior two fiscal years due to a municipality not submitting the required audited financial statements or submitting financial information to the SC Revenue and Fiscal Affairs Office as required by SC Code Section 6-1-50.
117.125 (GP: Immigration Compliance Report From the funds appropriated to the South Carolina Law Enforcement Division, the agency shall publish the Immigration Compliance Report. SLED may conduct investigations necessary to ensure the accuracy of information provided by counties and municipal governments within the ICR. Every agency of the state, and political subdivisions thereof, shall provide documentation that SLED considers necessary for the publication of the ICR. The ICR shall contain a list of county and municipal governments that SLED has certified to be compliant with SC Code Sections 17-13-170(E) and 23-3-1100 as well as compliance with any federal laws related to the presence of an unlawful person in the United States in the previous fiscal year. The ICR must be provided to the General Assembly, the governor, and the state treasurer by December 31 of the current fiscal year.
The state treasurer shall withhold any remaining disbursement from the Local Government Fund to any county or municipality that is not certified as "compliant" in the ICR; however, this requirement may not be imposed until the first publication of the ICR.
108.16 (PEBA: PORS and SCRS Return to Work) For compensation earnings during the current fiscal year, the earnings limitation does not apply if members of the Police Officer Retirement System has not been engaged to perform services for a participating employer in the system or any other system provided in Title 9 for compensation in any capacity, whether as an employee, independent contractor, leased employee, joint employee or other classification of worker for a period of at least 12 consecutive months subsequent to retirement. The exemption provided under this provision does not apply unless members first certifies to the system that they satisfy the requirements for the exemption. If members inaccurately certify that they satisfy the requirements for the exemption provided in this provision, they are responsible for reimbursing the system for any benefits wrongly paid to them.
For compensation earnings during the current fiscal year, the earnings limitation does not apply if members of the South Carolina Retirement System has not been engaged to perform services for a participating employer in the system or any other system provided in Title 9 for compensation in any capacity, whether as an employee, independent contractor, leased employee, joint employee or other classification of worker for a period of at least 12 consecutive months subsequent to retirement. The exemption provided under this provision does not apply unless members first certify to the system that they satisfy the requirements for the exemption. If members inaccurately certify that they satisfy the requirements for the exemption provided in this provision, they are responsible for reimbursing the system for any benefits wrongly paid to them.
Next, the budget will go to the Senate Finance Committee for debate. For questions about the budget, contact Joannie Nickel (jnickel@masc.sc) at 803.354.4794.
Senate Finance Constitutional subcommittee hears testimony on Local Government Fund
The Senate Finance Constitutional subcommittee met on Thursday after the Senate adjourned to hear testimony on budget requests from several agencies. Joannie Nickel, legislative and public policy advocate for the Municipal Association, testified on behalf of cities and towns. Nickel asked that lawmakers follow the current law, Act 84, which requires the Local Government Fund’s appropriation to follow the increase or decrease of the state budget. She added that the House version of the budget includes full funding of the LGF.
For questions about the budget, contact Joannie Nickel (jnickel@masc.sc) at 803.354.4794.
Senate subcommittee to hear military TIF bill
H4552, a bill that amends current law to include affordable housing developments as allowable projects in a military tax increment financing district, is on a subcommittee agenda next week. The bill was amended to include language that expands where TIF dollars can be spent and extends the bonding period from 15 years to 30 years. The Senate Labor, Commerce and Industry Labor and Employment subcommittee will meet Wednesday morning to hear testimony on H4552.
For information on this bill, contact Erica Wright (ewright@masc.sc) at 803.354.4793.
Property Tax Exemption bill moved to the Senate’s contested calendar
S1017, the bill makes changes to a bill passed in 2020 that had unintended consequences to property tax revenue for cities, counties and school districts, remains on the Senate’s uncontested calendar. The bill limits the available property tax exemption for nonprofit housing corporations to the percentage that equals the corporation's or nonprofit’s ownership interest in the property. This bill also prohibits annexation of agricultural property by a municipality without express written agreement by the owner. An objection was placed on the bill this week by Sen. Mike Fanning (D – Fairfield) which moves the bill to the Senate’s contested calendar.
For questions about this bill, contact Erica Wright (ewright@masc.sc) at 803.354.4793.
Abandoned Buildings Tax credit bill remains on the Senate calendar
S1021, the bill that extends the SC Abandoned Buildings Revitalization Act tax credit to 2035 and increases the maximum earned tax credit to $700,000, remains on the Senate’s uncontested calendar. Similar to S1017, the property tax exemption bill, S1021 hasn’t been debated because of extended debate on other bills on the calendar.
For questions about this bill, contact Joannie Nickel (jnickel@masc.sc) at 803.354.4794.
New Bill Introductions
Each week, House and Senate members introduce new bills that are referred to a committee to begin the legislative process. Bills that have an effect on municipal government are tracked by the Municipal Association legislative team in the legislative tracking system.
For questions about the new bill introductions, contact Casey Fields (cfields@masc.sc) at 803.933.1203.
Stay in Touch
The Municipal Association legislative team is on Twitter. Follow Joannie Nickel (@JoannieMuniSC) and Erica Wright (@EricaMuniSC) for updates from the State House. Also follow the Association at @MuniAssnSC.
Don’t forget to listen to the From the Dome to Your Home podcast every Friday for a recap of the week’s legislative issues and a look to the week ahead at the State House.
Senate Agriculture and Natural Resources subcommittee
S999 – Requires any person possessing a NPDES permit to post a sign – carried over
Summary of the bill as introduced: Requires any person possessing a NPDES permit to allow the discharge of effluent into state waters to post a sign.
Senate Labor, Commerce and Industry Committee
S728 – Changes the definition of firefighter to include non-residents of South Carolina who work in the state – favorable report as amended by the subcommittee to include employees in the Office of State Fire in the definition of firefighter and makes the bill retroactive to July 2021 when the law was enacted.
Summary of the bill as introduced: Changes the definition of firefighter in the Firefighter Cancer Health Care Benefit Plan to include non-residents of South Carolina who work in the state.