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The State House Gavel

The State House Gavel shares updates about the South Carolina General Assembly, including legislative actions, debates and discussions. Featuring news and interviews, so you have access to the latest developments in policy and decisions that shape South Carolina’s future.

The State House Gavel: Treasurer's future, House OKs anti-DEI bill and Senate passes energy

South Carolina Public Radio | By Maayan Schechter,

Gavin Jackson, Russ McKinney

Published April 3, 2025 at 6:01 AM EDT

S.C. senators gather in the Senate chamber on Wednesday, April 2, 2025, in Columbia, S.C.

Statehouse reporters Gavin Jackson, Russ McKinney and Maayan Schechter are back at the Capitol reporting what you need to know when lawmakers are in Columbia. They'll post news, important schedules, photos/videos and behind-the-scenes interviews with policymakers.

Happy Thursday.

It's the final legislative day of Week 12, which means the General Assembly has exactly one more month to go (which translates roughly to 15 or so official days, minus days off) until the final day of the session, sine die, on May 8.

You're reading The State House Gavel, a daily reporter notebook by reporters Gavin Jackson, Russ McKinney and Maayan Schechter that previews and captures what goes on at the South Carolina Statehouse this year while lawmakers are in session.

Happening Thursday morning:

Dr. Edward Simmer, Gov. Henry McMaster's pick to run the new Department of Public Health, goes back before the Senate Medical Affairs Committee for his second confirmation hearing.
The House Ways and Means Committee meets with an agenda that includes H. 4216, the Republican-led bill to replace South Carolina’s personal income tax rate structure with a 3.99% flat tax for all filers, what is estimated to raise taxes on nearly 60% of filers.

Notebook highlights:

Republican Treasurer Curtis Loftis walks back his previous statement that he would not run for reelection in 2026 as the Senate scheduled a hearing on his future.
After debate delays, the Republican-controlled House passed a bill opposing diversity, equity and inclusion offices and initiatives on college campuses, in state and local governments and in school districts that violate federal antidiscrimination laws.
The Senate passed a 72-page bill sponsors say seeks to answer South Carolina's energy capacity needs.

Treasurer says he'll run in 2026

Exactly a year ago, Republican Treasurer Curtis Loftis stood in a Senate hearing over the $1.8 billion accounting error.

As he was grilled by members of the Senate Finance Committee about his knowledge of the fund, Loftis announced this would be his final term in office.

This week, Loftis changed his tune as the Senate prepares to hold a hearing that could determine whether he continues to run his office — at least through 2026.

"To paraphrase President Trump- they’re coming for your money, and I am in the way. And just like President Trump, I won’t let them win; I simply won’t stop fighting these entrenched politicians," Loftis, who has denied any wrongdoing, posted to Facebook. That’s why I am running for reelection."

On Wednesday, Berkeley Republican Sen. Larry Grooms, who led the Senate’s inquiry into the $1.8B error, formally introduced a concurrent resolution to remove Loftis for "willful neglect of duty" over the error and lack of reporting to the Legislature.

Loftis's removal was one of a handful of recommendations tucked into a 58-page report that said South Carolina's financial books were not correct for a decade.

An outside audit firm AlixPartners hired to inspect the error found that most of the fund was not in fact real money, and reported that the offices of treasurer, comptroller general and auditor had shared responsibility.

The error has resulted in millions of dollars spent by the Legislature, in part to hire the outside auditor and to hire attorneys amid a federal Securities and Exchange Commission investigation that involves the error and the previously disclosed $3.5 billion error that resulted in the resignation of then-Comptroller Richard Eckstrom.

The former auditor, George Kennedy, resigned early this year.

The resolution sets up a noon April 21 Senate hearing.

Sens. Grooms and Stephen Goldfinch, R-Georgetown, will present the Senate's case against Loftis and respond to Loftis and/or his attorney.
Grooms and Goldfinch will have up to 1.5 hour to present their case. Loftis will be able to make his defense for up to three hours, then the senators will have up to 30 minutes to respond. Loftis will not be able to call any witnesses.
Each senator will be allowed no more than 10 minutes to question Grooms and Goldfinch, Loftis and/or his attorney.

Loftis can only be removed if two-thirds of both the House and Senate vote to oust him.

It hasn't been since the late 1800s that such a hearing was held. Loftis's removal would be unprecedented in South Carolina.

Over in the House, meanwhile, Loftis's chances are unclear.

And Gov. Henry McMaster has told reporters that he thinks removal by the Legislature is too far a step.

South Carolina Treasurer Curtis Loftis turns to his staff during a state Senate hearing into how $1.8 billion ended up in an account without anyone knowing where it came from or where it went on Tuesday, April 2, 2024, in Columbia, S.C. (AP Photo/Jeffrey Collins)

House passes anti-DEI bill

After delaying debate a week, the House on Wednesday passed an amended proposal that targets diversity, equity and inclusion programs, offices and initiatives on college campuses, in school districts and state and local governments.

Republicans celebrated the 82-32 vote passage of H. 3927, originally filed so expansive that initial fiscal impact estimates said it would cost millions of dollars to implement.

What does the bill now do in part?

Defines DEI as "any preferences, mandates, policies, programs, activities, guidance, regulations, enforcement actions, consent orders, or requirements implemented by a public entity that constitutes illegal discrimination on the basis of race, color, religion, sex, or national origin."
With the exception of federal law requirements, public entities cannot use DEI in hiring or college admissions, in preferential treatment, offices or require that someone participate in DEI programs or training.
Private businesses that do business with public entities cannot "operate any unlawful programs or hiring practices" that violate federal antidiscrimination laws.

House Education and Public Works Committee Chairwoman Shannon Erickson, R-Beaufort, called the bill a step toward "removing political agendas from the classroom," referring to some of the sentiments expressed by colleagues as "fear mongering."

Democrats argued that while the bill may prohibit what is already illegal in law, it sends — and has already sent — a chilling message.

Already, universities have altered DEI offices, and, in one case, a STEM event for young women was canceled.

"Illegal discrimination," Richland Democratic Rep. Jermaine Johnson, who is Black, said, will be interpreted differently.

"We have not taken our marching orders from the people of South Carolina," said Johnson, who added his colleagues have instead resorted to political talking points.

Capping the debate was freshman Rep. Harriet Holman, a Dorchester Republican, a retired U.S. Army lieutenant colonel and the sole Black Republican in the chamber.

You can listen to Holman on the bill below:

S.C. Rep. Harriet Holman, R-Dorchester, speaks on anti-DEI bill 4.2.25

The session ends May 8, leaving the bill’s future in the Senate this year in question.

The South Carolina House of Representatives inside the Statehouse in Columbia, S.C.

Senate chips at House energy bill

Just before midnight, the Senate Wednesday voted 41-3 to pass H. 3309 that backers say will help ensure South Carolina meets its energy needs.

Republican Sens. Tom Corbin of Greenville, Shane Martin of Spartanburg and Senate GOP Leader Shane Massey of Edgefield voted no.

The bill will get one more perfunctory vote Thursday before it heads back over to the House.

The so-called "Energy Security Act" would:

Streamline the regulatory process for utilities seeking to build and operate new power plants.
Require that regulatory agencies, like the Office of Regulatory Staff and the Public Service Commission, to act on applications to build new facilities within six months.
Provide for appeals of state regulatory decisions to go directly to the state Supreme Court and be considered as soon as possible.
Give state-owned utility Santee Cooper permission to partner with Dominion Energy to build and operate a new 2,200 megawatt gas plant at Canadys in Colleton County.

Among the changes adopted by the Senate, the bill would:

Incentivize Independent Power Producers (IPP), primarily solar operators, which are allowed to sell power to utilities when they can prove to regulators that they produce certain amounts of power cheaper than a major utility can.
Allow utilities, with Public Service Commission approval, to slightly adjust electric rates on an annual basis if needed in an effort to avoid customer “sticker shock” that can come with traditional rate increases every five years or so. A similar practice is already allowed for natural gas suppliers.
Bar the incentivization on the state level of more data centers.

The bill will not include one of the most closely-watched amendments over “retail choice,” which would have allowed very large power users, such as industrial plants and data centers, to be able to buy their power on the open market and not be required to be serviced by the utility that provides electricity to their specific area of the state.

Senators tabled that amendment proposed by Massey in a 32-11 vote, following arguments by some senators that the amendment should have been vetted as standalone legislation rather than attached to the bill.