Tort Reform (S.133)
- Liquor license must be surrendered after 3rd liability insurance claim in one calendar year.
- Lowers minimum insurance coverage from $1M to $250K.
- If a plaintiff is 50% or greater at fault, the court shall find in favor of the defendant.
- If a plaintiff is less than 50% at fault, defendants are liable in proportion to their percentage of fault.
- Punitive damages are prohibited.
Tort Reform (S.244)
- Allocation of proportion of fault of claimant, defendant, and any non-party will be determined by a jury, now including in alcohol and drug cases.
- Damages cannot be sought if claimant “knowingly rides as a passenger in a vehicle operated by a driver who is visibly intoxicated or whom the individual knew or should have known would become intoxicated.”
- Server and Manager training would be mandatory.
- Person or establishment “may not knowingly provide these beverages to an intoxicated person.”
- Liquor policy or endorsement must have at least $1M per occurrence; if not, is grounds for suspension or revocation of permit.
- Insurer must report if a licensed person has exceeded the policy’s aggregate limit prior to policy expiration.
- Punitive damages must not be required for inclusion in Uninsured Motorist coverage.
The Small Business Regulatory Freedom Act (H.3021)
- Pros
- As regulations come up for re-authorization, they are to be reviewed by the committee as to appropriateness regarding small business, economic development, and the agency itself.
- Goal is to reduce regulatory burden by 25%.
- For every new regulation, must eliminate 2 others.
- Each newly proposed regulation must include a cost-benefit analysis.
- Process must be public, transparent, and data driven.
- Cons
- Small Business Regulatory Review Committee (SBRRC) is not independent but rather is directed by the State Department of Commerce. We believe the Inspector General, or an independent regulator would be a much better choice than the SC Dept. of Commerce.
- Under the proposed plan, one could expect regulations to be favorable to the Commerce Dept.’s goals.
- Likewise, could cost-benefit analyses be trusted?
- Ideally, these analyses should be from the perspective of the regulated, NOT the regulator.
- The SBRRC’s findings are in essence recommendations, but agencies are not legally bound to follow their advice.
- Eliminating 2 old regulations for each new one would simply encourage consolidated, multi-faceted “single” regulations.
South Carolina Job Creation and Competitiveness Act of 2025 (S.131)
- Pros
- Income tax 6.2% -> 3.5%, a savings for wage earners.
- Massively simplifies income tax code from 68,000 words to 13,000 words.
- Retains the “most significant income tax deductions” while eliminating all others.
- Defunds the South Carolina Research Authority
- Cons
- Eliminates numerous previous deductions popular in SC.
- Income tax reduction would be to the detriment of retirees & SS recipients.
- No income tax on corporations, but small business goes from 6.25% or 3.0% (if currently taking the Active Trade Deduction) to 3.5%.
- While the current personal income tax rates are the highest in the Southeast, our corporate tax rate is 3rd best in the nation. This bill would take the corporate tax rate down to 0. We would prefer to see greater parity between the personal/small business tax rates and those for corporations.
- Retiree exemptions are popular, and why many retirees come to SC; these would be abolished.
- 529 plan exemption elimination would likely diminish contributions.
- De-funds the Exceptional Needs Scholarship program.
