As the legislative session comes to a close, we've put together a list of Upstate Chamber Coalition agenda items that we believe are headed for the finish line. Our legislative team will be making a push for these items over the coming weeks, and as always, we appreciate your engagement. Please feel free to reach out to any of us with questions or for more information - we're always happy to help! 

LEGISLATIVE WINS 
S.1087 / H.4480 – Income Tax Reform
Last: S.1087 Passed Senate / H.4480 Passed House
Position: Support
Summary: The Senate bill reduces the state income tax from 7%-5.7% for FY2023 and provides all South Carolina residents with a tax rebate (on a tiered scale). The bill also includes a property tax reduction for industrial property, essentially bringing the manufacturing property tax from 10.5% to 6%. The House bill is more modest, sponsored by House leadership and championed by Governor McMaster. It reduces the state income tax from 7%-6.5% for Fiscal Year 2023, and then reduces the personal income tax rate by about .1% over the next four years, bringing the income tax rate to 6% in Fiscal Year 2027. The plan includes the ability to pause the reduction if state revenue does not meet the projected goal.
 
H.3126 – Anti-Vaccine Mandates
Last: Passed House. Amended in Senate. Returned to House.
Position: Oppose
Summary: Initial drafts of this legislation prohibited businesses from enforcing a vaccine mandate if they choose to enact one. We scored a victory by severely weakening this assault on at-will employment. The full Senate removed a hefty surcharge on unemployment insurance taxes, equal to ten times the state’s highest rate (roughly $7,500 per employee per year), as well as a nine-month look-back period for applying unemployment benefits if an employee is terminated. However, an employer’s unemployment tax rate will still be impacted by terminating an employee for violating a business policy and sets a bad precedent for state government interference in business operations and for the future applicability of at-will employment. The Upstate Chamber Coalition opposes any legislation on a federal or state level that interferes with a business owner’s ability to manage their operations and personnel. 
 
H. 4408 / S. 952 – ARPA Funding Recommendations
Last: Passed Each Body. Referred to Ways and Means and Senate Finance committees.
Position: Support
Summary: These bills outline the allocation of nearly $1 billion in funds from the federal government as part of the American Rescue Plan Funding. Both proposals allocate the funding towards transformative infrastructure projects, including water and sewer projects, broadband projects, and DOT project acceleration.
 
H. 3590 – Teacher Recruitment
Last: In Conference Committee
Position: Support
Summary: This bill allows principals to fill a small percentage of teacher vacancies with non-certified teachers if a school has vacant positions five days before the school year. The bill requires those non-certified teachers to enroll in a certification program. The original House bill allowed up to 25% of vacancies to be filled by non-certified teachers. The Senate amendment reduced that allowance to 10% of vacancies. The bill provides an opportunity for non-traditional teachers to enter the teaching pool as second careers and helps to fill a critical workforce need.
 
H.3348 – Returning Citizens Tax Credit
Last: Passed the House. In Senate Finance Committee.
Position: Support
Support: This bill mirrors a federal tax credit and would provide a tax incentive for a business to hire a veteran or a formerly incarcerated individual into a registered apprenticeship program. The tax credit is tiered, with a $3,000 credit in year one, $2,500 credit in year two, and $1,000 in year three, as long as the employee remains employed by the company.
 
S.1120 / H.5075 – Affordable Housing Tax Credits
Last: H. 5075 passed the House. S. 1120 passed the Senate.
Position: Support
Summary: This bill revisits the 2020 Workforce and Senior Affordable Housing Act that created a state tax credit to be used in conjunction with a federal tax credit. Unexpected demand caused more than $50 million on tax credits to be claimed in 2021 (the original estimate was $16 million over 10 years). While the need is high, the approval of these credits has been paused while the state evaluates the best way to balance need with fiscal sustainability. The House Bill creates a cap of $25 million annually, while the Senate Bill has a cap of $15 million.  
 
S.295 – Occupational Licensing / Removing Workforce Barriers
Last: Passed Senate 44-0. Sent to House.
Position: Support
Summary: This legislation would change existing policy by prohibiting a candidate from being disqualified for a license or an apprenticeship simply because of a prior felony conviction if they meet the other qualifications for the license or apprenticeship. The felony conviction must not be directly related to the license that an individual is applying for – i.e. an individual with a theft conviction cannot apply for a license to be a locksmith.
 
H.3243 – Immigrant Licensure
Last: Passed House. Blocked on Senate Floor by Senator Martin (R-Spartanburg)
Position: Support
Summary: This legislation extends access to professional licenses for Dreamers and other “undocumented” immigrants who came to the United States as a minor and have already been granted legal working status in the United States. There are at least 8,000 dreamers in our state. These individuals cannot apply for certain professional licenses and are banned from being a part of the workforce pool in critical need areas, including nursing.
 
H.3620 – Penalty Enhancements for Hate Crimes
Last: Passed House. Blocked on Senate Floor (multiple Senators)
Position: Support
Summary: This legislation creates additional penalties for hate crimes in South Carolina. Protections are extended to people in six federally protected classes, plus LGBTQ protections. Additional hate crime penalties for stalking, harassment and property crimes were removed from the bill last year. South Carolina remains just one of two states without hate crimes legislation.
 
H.3623 – Reforming Drug Weights
Last: Passed House. In Senate Judiciary.
Position: Support
Summary: This bill would adjust the statute in South Carolina relating to felony and misdemeanor categories for drug weight presumptions, bringing us closer in line with our neighboring states. The change in weight categorization would change the number of felony convictions and help alleviate the number of individuals incarcerated and re-entering the workforce with a felony conviction. This ultimately helps to grow our workforce pool and address the ongoing shortages.
 
S.984 – County Service Fees
Last: Passed Senate.
Position: Support
Support: This bill would revert legislative intent of a statute regarding county-imposed user fees and service fees to an earlier statute. The legislation would allow counties to impose fees for users to be used towards road maintenance projects etc. correcting action as a result of a state supreme court ruling against fees imposed by Greenville County.

Add the state budget to the mix, and you have your 12 issues for the final 12 days!

View a full report of the UCC’s tracked legislation and where it stands here.