A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS SO AS TO ENACT THE "FAMILY PROTECTION ACT" BY AMENDING SECTION 12-6-3632, RELATING TO THE EARNED INCOME TAX CREDIT, SO AS TO ALLOW AN ADDITIONAL REFUNDABLE CREDIT; BY AMENDING SECTION 12-6-3380, RELATING TO THE TAX CREDIT FOR CHILD AND DEPENDENT CARE EXPENSES, SO AS TO ALLOW FOR AN ALTERNATIVE CREDIT; BY AMENDING SECTION 12-36-2120, RELATING TO SALES TAX EXEMPTIONS, SO AS TO EXEMPT CERTAIN ITEMS RELATED TO CHILD BIRTH; BY ADDING SECTION 12-6-3715 SO AS TO CREATE A TAX CREDIT FOR EMPLOYING CERTAIN NONVIOLENT EX-FELONS; BY ADDING SECTIONS 12-6-3835, 12-6-3840, 12-6-3845, 12-6-3850, 12-6-3855, 12-6-3860, AND 12-6-3865 SO AS TO PROVIDE TAX CREDITS FOR LIVING IN A HOUSEHOLD WHERE ONE ACTIVE DUTY FAMILY MEMBER IS DEPLOYED, FOR VETERAN-OWNED SMALL BUSINESSES, FOR HIRING CERTAIN VETERANS, FOR EMPLOYERS VOLUNTARILY PROVIDING CERTAIN FAMILY AND MEDICAL LEAVE, FOR EMPLOYERS PROVIDING CHILDCARE, FOR LIVING OR EMPLOYING PERSONS IN A COUNTY WITH A COMMUNITY JOBS PRIORITY ZONE, AND FOR UNPAID PRIMARY CAREGIVERS; BY ADDING SECTION 12-4-400 SO AS TO CREATE A SINGLE STATEWIDE WORKING FAMILIES TAX CREDIT PORTAL; BY ADDING SECTION 41-29-320 SO AS TO CREATE THE "WORKPLACE FLEXIBILITY GRANT PROGRAM"; BY ADDING SECTION 27-40-795 SO AS TO PROVIDE FOR CERTAIN WRITTEN NOTICE REQUIREMENTS IN RENTAL INCREASES; BY ADDING SECTION 6-1-200 SO AS TO PROVIDE THAT A MUNICIPALITY OR COUNTY MAY ESTABLISH A VOLUNTARY RENT STABILITY PROGRAM; BY ADDING SECTION 12-6-3830 SO AS TO PROVIDE FOR A STATE TAX CREDIT EQUAL TO THE FEDERAL LOW INCOME HOUSING TAX CREDIT; BY ADDING SECTION 31-13-100 SO AS TO CREATE THE "COMMUNITY HOUSING GROWTH INCENTIVES FUND"; BY ADDING CHAPTER 36 TO TITLE 1 SO AS ESTABLISH THE OFFICE OF FAMILY PROTECTION WITHIN THE DEPARTMENT OF ADMINISTRATION TO SUPPORT AND PROTECT FAMILIES AND CAREGIVERS BY IMPROVING EFFICIENCY, ELIMINATING DUPLICATION, AND MAXIMIZING THE USE OF FEDERAL AND PRIVATE RESOURCES, TO PROVIDE FOR THE OFFICE'S DUTIES AND AUTHORITY, TO CREATE THE FAMILY PROTECTION ADVISORY AND ACCOUNTABILITY BOARD AS AN ADVISORY BOARD FOR THE OFFICE, AND FOR OTHER PURPOSES; BY ADDING ARTICLE 9 TO CHAPTER 15, TITLE 2 SO AS TO CREATE THE "JOINT CITIZENS AND LEGISLATIVE COMMITTEE ON PRESCRIPTION DRUG AFFORDABILITY" TO SERVE AS AN ADVISORY BODY TO STUDY PRESCRIPTION DRUG COSTS AND TO MAKE RELATED RECOMMENDATIONS TO REDUCE STATE EXPENDITURES, TO PROVIDE FOR THE COMMITTEE'S MEMBERSHIP AND DUTIES, TO REQUIRE THE LEGISLATIVE AUDIT COUNCIL AND THE DEPARTMENT OF HEALTH AND HUMAN SERVICES TO STAFF THE COMMITTEE, AND FOR OTHER PURPOSES; BY ADDING SECTION 44-6-42 SO AS TO GIVE THE DEPARTMENT OF HEALTH AND HUMAN SERVICES THE AUTHORITY TO NEGOTIATE SUPPLEMENTAL REBATES AND BULK-PURCHASING AGREEMENTS WITH PHARMACEUTICAL COMPANIES, TO ESTABLISH A PREFERRED DRUG LIST, AND TO DEVELOP A STATE PHARMACY CARD FOR UNINSURED AND UNDERINSURED RESIDENTS; BY ADDING SECTION 44-53-364 SO AS TO REQUIRE THE DEPARTMENT OF PUBLIC HEALTH TO COORDINATE A PUBLIC EDUCATION CAMPAIGN ON PRESCRIPTION DRUG ACCESS AND AFFORDABILITY; BY ADDING ARTICLE 7 TO CHAPTER 35, TITLE 43 SO AS TO ESTABLISH AN UNPAID PRIMARY CAREGIVER REGISTRY AND IDENTIFICATION PROGRAM WITHIN THE DEPARTMENT OF SOCIAL SERVICES, TO ENTITLE ELIGIBLE CAREGIVERS TO CERTAIN FINANCIAL BENEFITS AND SERVICES, TO ESTABLISH A PRIMARY CAREGIVER GRANT FUND AND PROGRAM WITHIN THE DEPARTMENT OF HEALTH AND HUMAN SERVICES TO PROVIDE FINANCIAL ASSISTANCE TO CERTAIN LOW- AND MODERATE-INCOME PRIMARY CAREGIVERS, TO ESTABLISH A CAREGIVER RESPITE SERVICES PROGRAM WITHIN THE DEPARTMENT ON AGING TO OFFER RESPITE CARE FOR CAREGIVERS AND FOR OTHER PURPOSES; AND BY ADDING SECTION 41-1-140 SO AS TO PROHIBIT EMPLOYERS FROM RETALIATING AGAINST EMPLOYEES WHO ARE UNPAID PRIMARY CAREGIVERS AND TO REQUIRE CERTAIN EMPLOYERS TO PROVIDE UNPAID LEAVE FOR CAREGIVING EMERGENCIES.

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.  This act may be cited as the "Family Protection Act."

 

SECTION 2.A.  Section 12-6-3632 of the S.C. Code is amended to read:

 

    Section 12-6-3632. (A) There is allowed as a nonrefundable credit against the tax imposed pursuant to Section 12-6-510 on a full-year resident individual taxpayer an amount equal to one hundred twenty-five percent of the federal earned income tax credit (EITC) allowed the taxpayer pursuant to Internal Revenue Code Section 32.

    (B) In addition to the credit allowed pursuant to subsection (A), there is allowed as a refundable credit against the tax imposed pursuant to Section 12-6-510 on a full-year resident individual taxpayer an amount equal to ten percent of the federal earned income tax credit (EITC) allowed the taxpayer pursuant to Internal Revenue Code Section 32, but not to exceed four hundred dollars. To claim the credit allowed by this subsection, the taxpayer must have at least one qualifying dependent and an adjusted gross income of no more than eighty thousand dollars.  Each year, for credits claimed pursuant to this subsection, the department shall issue a report to the General Assembly detailing the total number of credits claimed, the average credit amount, and a geographic distribution of where such taxpayers reside.

 

B. (A) Notwithstanding the four-hundred-dollar-maximum credit allowed pursuant to Section 12-6-3632(B), in tax year 2026 the maximum credit equals fifty dollars, and in tax year 2027 the maximum credit equals two hundred dollars.

    (B) The provisions of Section 12-6-3632(B) are repealed on January 1, 2031, and no such credits may be claimed after tax year 2030.

 

SECTION 3.A.  Section 12-6-3380 of the S.C. Code is amended to read:

 

    Section 12-6-3380. (A) An individual may claim an income tax credit for child and dependent care expenses. The credit is computed as provided in Internal Revenue Code Section 21, except that the term "applicable percentage" means seven percent and is not reduced, and only expenses that are directly attributable to items of South Carolina gross income qualify for the credit.

    If a nonresident taxpayer is a resident of a state which does not allow a resident of this State credit for child and dependent care expenses, the nonresident taxpayer is not allowed credit on the South Carolina income tax return for child and dependent care expenses.

    (B)(1) A taxpayer with earned income, excluding a spouse who is a full-time student or incapable of self-care, may elect to claim an individual income tax credit for child and dependent care expenses pursuant to this subsection, rather than subsection (A). The credit is computed as provided in Internal Revenue Code Section 21, except that the term "applicable percentage" means twenty-five percent if the taxpayer has an adjusted gross income of no more than eighty thousand dollars and fifteen percent if the taxpayer has an adjusted gross income of more than eighty thousand dollars, and is not reduced, and only expenses that are directly attributable to items of South Carolina gross income qualify for the credit. However, the credit may not exceed six hundred dollars for each dependent and may not exceed one thousand two hundred dollars for each return, unless the dependent requires intensive care in which case the credit may not exceed one thousand dollars for each dependent requiring intensive care, and may not exceed two thousand dollars for each dependent regardless of the level of care required.

       (2) The credit allowed by this subsection may be carried forward for the next three tax years.

       (3) Each year, for credits claimed pursuant to this subsection, the department shall issue a report to the General Assembly detailing the total number of credits claimed, the average credit amount, and a geographic distribution of where such taxpayers reside.

 

B. (A) Notwithstanding the applicable percentage amounts pursuant to Section 12-6-3380(B), in tax years 2026 and 2027, the applicable percentage means twenty percent if the taxpayer has an adjusted gross income of no more than eighty thousand dollars and twelve percent if the taxpayer has an adjusted gross income of more than eighty thousand dollars.

    (B) The provisions of Section 12-6-3380(B) are repealed on January 1, 2031, and no such credits may be claimed after tax year 2030.

 

SECTION 4.A.  Section 12-36-2120 of the S.C. Code is amended by adding:

 

    (85) baby formula, baby food, and infant nutritional supplements;

    (86) diapers, baby wipes, and changing pads;

    (87) breastfeeding equipment, nursing pads, breast pumps, and related accessories;

    (88) blood pressure cuffs, and prescription prenatal vitamins.

 

B. This SECTION takes effect January 1, 2026.

 

SECTION 5.A.  Article 25, Chapter 6, Title 12 of the S.C. Code is amended by adding:

 

    Section 12-6-3715. (A) As used in this section:

       (1) "Nonviolent ex-felon" means an individual who has completed his sentence for a nonviolent felony and is legally employable.

       (2) "Qualified employer" means a business that hires a nonviolent ex-felon in a full-time position, at least thirty hours each week, with a minimum duration of six months, and that removes criminal history questions from its initial job applications.

    (B) A qualified employer is entitled to an income tax credit equal to:

       (1) seven hundred fifty dollars for each nonviolent ex-felon that it hires, up to twelve thousand five hundred dollars total in tax year 2026;

       (2) one thousand one hundred twenty-five dollars for each nonviolent ex-felon that it hires, up to eighteen thousand seven hundred fifty dollars total in tax year 2027; and

       (3) one thousand five hundred dollars for each nonviolent ex-felon that it hires, up to twenty-five thousand dollars total in tax years after 2027.

    (C) A qualified employer is entitled to an additional five hundred dollars for each nonviolent ex-felon that is hired within twelve months of his release from incarceration and an additional five hundred dollars for any employee that remains employed for the full tax year.

    (D) The credit is refundable up to fifty percent of the remaining credit for the income tax year.

    (E) A qualified employer shall:

       (1) certify employment and hours worked and employment must be for at least six months to qualify for the credit;

       (2) remove criminal history questions from its initial job applications; and

       (3) submit documentation to the department for verification, including hire date, release date, and employment duration.

    (F) The department shall promulgate any regulations necessary to implement the provisions of this section.

 

B. The provisions of Section 12-6-3715 are repealed on January 1, 2031, and no such credits may be claimed after tax year 2030.

 

SECTION 6.A.  Article 25, Chapter 6, Title 12 of the S.C. Code is amended by adding:

 

    Section 12-6-3835. (A) As used in this section:

       (1) "Active-duty family member" means an individual currently serving on active duty in the United States Armed Forces.

       (2) "Qualified household" means a South Carolina resident household with at least one active-duty family member who is deployed.

    (B) An individual living in a qualified household is entitled to an income tax credit equal to two thousand dollars. The credit is refundable up to one thousand dollars for each tax year. Each qualified household may only receive one two-thousand-dollar tax credit.

    (C) An individual in the qualified household shall provide documentation of deployment. The individual claiming the income tax credit must be a South Carolina resident.

    (D) The department may promulgate regulations to implement the provisions of this section.

 

    Section 12-6-3840. (A) As used in this section:

       (1) "Veteran-owned small business" means a business certified by the South Carolina Department of Veterans' Affairs or another approved authority as being at least fifty-one percent owned by a veteran and meeting small business size criteria.

       (2) "Qualified business" means a South Carolina small business that is veteran-owned and holds a business license or renewal for the applicable tax year.

    (B) A veteran-owned small business is entitled to an income tax credit equal to fifty percent of the amount of the South Carolina business license fee or renewal fee paid in the income tax year up to two thousand five hundred dollars.

    (C) The department may promulgate regulations to implement the provisions of this section.

 

    Section 12-6-3845. (A) An employer who hires a qualified individual as defined in subsection (B) may claim a credit against income tax due pursuant to this chapter.

    (B) For purposes of this section, a "qualified individual" means:

       (1) a veteran of the Armed Forces of the United States, as evidenced by a DD-214 discharge document; or

       (2) a spouse of an active-duty service member, as evidenced by a valid military spouse identification card.

    (C) The credit is equal to two thousand five hundred dollars for each qualified individual hired and an additional one thousand dollars for an individual who is a disabled veteran, as evidenced by a United States Department of Veterans Affairs disability rating letter or has been unemployed for at least ninety consecutive days prior to the date of hire.

    (D) The credit allowed by this section may be claimed only once per qualified individual and must be taken in the tax year in which the individual is hired.

    (E) Any unused credit may be carried forward for up to five tax years. The credit is nonrefundable and nontransferable.

    (F) Employers must maintain sufficient documentation including, but not limited to, DD-214 forms, military spouse identification, or VA disability rating letters, as verification of eligibility. The Department of Revenue shall prescribe the manner in which claims must be filed.

    (G) The total cumulative amount of credits claimed under this section may not exceed twenty million dollars in any tax year.

 

    Section 12-6-3850. (A) For purposes of this section:

       (1) "Small employer" means any business with fifty or fewer employees on payroll during the taxable year.

       (2) "Family and medical leave" means leave taken by an employee pursuant to the federal Family and Medical Leave Act of 1993.

       (3) "Wages and benefits" include regular salary or hourly wages and the employer portion of health insurance, retirement contributions, and other standard benefits paid during the leave.

    (B) For taxable years beginning after 2025, a taxpayer that is a small employer who voluntarily provides family and medical leave in compliance with the federal Family and Medical Leave Act of 1993 (29 U.S.C. Section 2601, et seq.) is allowed a credit against the tax imposed under this chapter equal to fifty percent of the total wages paid to employees while on approved family and medical leave during the taxable year, including the employer portion of benefits attributable to that leave, up to a maximum of five thousand dollars per employee per taxable year.

    (C) To qualify for the credit, the employer must maintain documentation showing:

       (1) employee eligibility and leave approval in accordance with the federal FMLA; and

       (2) the total wages and benefits paid during the leave period.

    (D) The credit allowed under this section may not exceed the tax liability of the taxpayer for the taxable year and may not be carried forward.

    (E) The Department of Revenue shall prescribe forms and promulgate regulations necessary to implement this section.

 

    Section 12-6-3855. (A) As used in this section:

       (1) "DSS" means the South Carolina Department of Social Services.

       (2) "Applicable taxes" means taxes imposed under Chapter 6, Title 12.

       (3) "Employee" means a resident of this State employed full-time or part-time by an employer, including independent contractors and owners working in the business, provided their wages do not exceed eighty thousand dollars annually.

       (4) "Employer" means a for-profit business lawfully operating in this State.

       (5) "Small business" means an employer with fifty or fewer employees.

       (6) "Child" means an individual five years of age or younger.

       (7) "Childcare facility" has the same meaning as provided in Section 63-13-20 and must be licensed by DSS and participate in the state's ABC Quality rating system.

       (8) "Childcare provider" means a taxpayer or nonprofit entity that owns and operates a licensed childcare facility in this State.

       (9) "Eligible child" means a child enrolled in the State's Childcare Scholarship Program (SC Voucher).

       (10) "Eligible expenses" means expenses incurred by an employer for:

           (a) construction, renovation, or maintenance of a childcare facility;

           (b) payments to childcare facilities or employees for the provision of childcare; and

           (c) payments to reserve slots at childcare facilities for employees' children.

       (11) "ABC Quality rating level" means the quality rating assigned by DSS under the ABC Quality program.

    (B)(1) For tax years after 2025 and before 2029, an employer may apply for a nonrefundable credit against applicable taxes equal to seventy-five percent of eligible expenses. A small business is allowed a credit equal to one hundred percent of eligible expenses.

       (2) The credit may not exceed five hundred thousand dollars per employer per year. Credits are nontransferable and may not be carried forward.

       (3) Total credits allowed under this subsection may not exceed:

           (a) twelve million dollars in 2026;

           (b) fifteen million dollars in 2027; and

           (c) seventeen million five hundred thousand dollars in 2028.

       (4) Documentation and allocation procedures must be set by the department. At least twenty-five percent of the statewide cap must be reserved for small businesses to ensure participation.

    (C)(1) For tax years after 2025 and before 2029, a childcare provider may claim a credit equal to the average monthly number of eligible children multiplied by:

           (a) one thousand seven hundred fifty dollars if the childcare provider has an A+ rating;

           (b) one thousand five hundred dollars if the childcare provider has an A rating;

           (c) one thousand two hundred fifty dollars if the childcare provider has a B+ rating;

           (d) one thousand dollars if the childcare provider has a B rating; and

           (e) seven hundred fifty dollars if the childcare provider has a C rating.

       (2) The total credits awarded may not exceed three million five hundred thousand dollars annually.

       (3) DSS and DOR shall coordinate data sharing to verify eligibility.

    (D)(1) DSS may award grants up to forty thousand dollars per nonprofit provider, subject to a statewide cap of four million dollars annually, for facility improvements or expansions that increase quality or capacity.

       (2) Grants must require an application, written agreement, and compliance with DSS rules.

    (E) The department and DSS may promulgate regulations to implement the provisions of this section.

 

    Section 12-6-3860. (A) A county with a community jobs priority zone designation is a county that meets one or more of the following criteria:

       (1) provides documentation of unemployment rates above the state average;

       (2) is within federal opportunity zones or New Market Tax Credit regions; or

       (3) has received designation from the Department of Commerce for workforce development initiatives.

    (B) Taxpayers living in a designated community jobs priority zone may claim a refundable credit equal to seven hundred fifty dollars for individuals or one thousand five hundred dollars for joint filers. Eligibility requires continuous residency and employment within the zone for the entire tax year. The credit may be claimed annually for up to four consecutive years.

    (C) Employers located in community jobs priority zones are eligible for:

       (1) a twenty percent increase in value for any hiring-related state tax credit;

       (2) priority access to state infrastructure matching funds; and

       (3) site preparation and permit assistance through the Department of Commerce.

    (D) Taxpayers must provide proof of residency and employment within the zone.

    (E) The department may promulgate regulations necessary for the implementation of this section.

 

    Section 12-6-3865. (A) As used in this section:

       (1) "Caregiving services" include assistance with activities of daily living, medical care coordination, and supervision necessary to maintain health and safety.

       (2) "Unpaid primary caregiver" means the primary person who consistently assumes the primary role of providing direct care and support for an individual who is: sixty-five years or older, has an intellectual or physical disability, or is a veteran with a service-connected condition, and who receives no compensation for such care.

    (B) A resident taxpayer who is an unpaid primary caregiver who provides caregiving services for at least six consecutive months in the tax year may claim a one-thousand-dollar refundable tax credit in the tax year if the taxpayer's adjusted gross income does not exceed eighty thousand dollars.

    (C) Each year, for credits claimed pursuant to this subsection, the department shall issue a report to the General Assembly detailing the total number of credits claimed, the average credit amount, and a geographic distribution of where such taxpayers reside.

    (D) Notwithstanding the one-thousand-dollar credit amount pursuant to Section 12-6-3830 in tax years 2026 and 2027, the credit shall equal two hundred fifty dollars and five hundred dollars, respectively.

 

B. The provisions of Sections 12-6-3735 through 12-6-3865 are repealed on January 1, 2031, and no such credits may be claimed after tax year 2030.

 

SECTION 7.  Article 3, Chapter 4, Title 12 of the S.C. Code is amended by adding:

 

    Section 12-4-400.  (A) The Department of Revenue shall:

       (1) create a single statewide Working Families Tax Credit portal to allow residents to:

           (a) screen for eligibility;

           (b) apply for credits; and

           (c) upload caregiver documentation or IRS filings; and

       (2) issue guidance in multiple languages and formats.

    (B) The Department of Commerce, in partnership with DEW and SC Works, shall align all tax credit programs with:

       (1) Workforce Innovation and Opportunity Act workforce development boards;

       (2) Apprenticeship Carolina programs; and

       (3) local reentry and caregiver employment support services.

 

SECTION 8.  Chapter 29, Title 41 of the S.C. Code is amended by adding:

 

    Section 41-29-320. (A) There is created within the Department of Employment and Workforce the "Workplace Flexibility Grant Program," subject to the availability of funds annually appropriated by the General Assembly. The program will provide competitive grants to eligible small employers to support the implementation of workplace flexibility practices.

    (B) For purposes of this section, "eligible employer" means a business entity that:

       (1) employs fewer than one hundred employees statewide;

       (2) demonstrates that at least twenty-five percent of its workforce consists of parents, caregivers, or veterans; and

       (3) commits, as a condition of receiving a grant, to maintaining funded workplace practices for no less than twelve months following the receipt of grant funds.

    (C) Eligible uses of grant funds include costs directly related to:

       (1) flexible scheduling programs;

       (2) job-sharing arrangements;

       (3) remote work adaptation; or

       (4) on-site or colocated childcare partnerships.

    (D) Grant awards are subject to the following limitations:

       (1) no grant may exceed ten thousand dollars per employer in any fiscal year;

       (2) the total amount of grant funds awarded under this section may not exceed five million dollars statewide in any fiscal year;

       (3) an employer may not receive more than one grant award in any thirty-six-month period; and

       (4) an employer must provide a dollar-for-dollar private match of the grant award.

    (E) The department shall develop application and verification procedures to ensure compliance with this section.

    (F) This section is repealed on June 30, 2030, unless reauthorized by the General Assembly.

 

SECTION 9.  Article 7, Chapter 40, Title 27 of the S.C. Code is amended by adding:

 

    Section 27-40-795. (A) Except as otherwise provided by a written rental agreement, a landlord may not increase rent in a week-to-week or month-to-month tenancy without first providing written notice to the tenant as follows:

       (1) no less than thirty days before the effective date of any increase of less than ten percent; and

       (2) no less than sixty days before the effective date of any increase of ten percent or more.

    (B) For a fixed-term rental agreement, this section applies only to increases effective at renewal unless the rental agreement expressly permits a midterm adjustment and specifies the timing and method of notice consistent with this section.

    (C) Notice must be delivered in a manner provided pursuant to Section 27-40-240. Electronic delivery, including electronic mail or a secure resident portal, is permitted only if the tenant has consented in writing in the rental agreement or in a subsequent written addendum.

    (D) A rent increase made without the notice required by this section is effective on the earliest date that would comply with the applicable notice period after proper notice is given. The landlord must be provided an opportunity to cure a defect in the notice within fourteen days after receiving written notice of the defect from the tenant. The exclusive remedy for noncompliance with this section is declaratory or injunctive relief adjusting the effective date of the increase. Attorney's fees may be awarded only upon a finding of bad faith.

    (E) To ensure uniform statewide standards, a political subdivision may not enact or enforce an ordinance or rule establishing rent increase notice requirements that differ from the provisions of this section.

    (F) Nothing in this section imposes a limit on rent amounts or the frequency of increases otherwise permitted by law or contract. Entry into the premises for the purpose of showing the property remains governed by Section 27-40-530.

    (G) This section applies to notices issued on or after January 1, 2026.

 

SECTION 10. Article 1, Chapter 1, Title 6 of the S.C. Code is amended by adding:

 

    Section 6-1-200. (A) A municipality or county may establish a voluntary rent stability program under which a residential landlord may enter into a written agreement with the political subdivision to limit annual rent increases in exchange for a local tax credit, fee reduction, or other incentive authorized by law.

    (B) Any voluntary rent stability agreement must:

       (1) limit annual rent increases to a percentage no less than the lesser of ten percent or the annual percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) for the South Region, published by the Bureau of Labor Statistics;

       (2) have a term not exceeding three years, after which it may be renewed by mutual consent;

       (3) apply only to multifamily properties with more than ten dwelling units; and

       (4) not apply to any rental unit that is newly constructed or substantially rehabilitated within the previous five years.

    (C) Participation in a voluntary rent stability program by a landlord or property owner is not a condition for the issuance or renewal of any business license, permit, or other regulatory approval.

    (D) This section does not authorize a political subdivision to impose mandatory rent control or rent stabilization measures on residential property.

 

SECTION 11. Article 25, Chapter 6, Title 12 of the S.C. Code is amended by adding:

 

    Section 12-6-3830. (A) A taxpayer who is eligible for the federal Low-Income Housing Tax Credit (LIHTC) under Section 42 of the Internal Revenue Code and places in service a qualifying project in South Carolina may claim a state tax credit equal to one hundred percent of the federal credit over a ten-year period.

    (B) The income tax credit received pursuant to this section may be claimed against income tax, bank tax, or insurance premium tax.

    (C) Qualifying projects must:

       (1) set aside at least twenty-five percent of units for households earning less than sixty percent of the Area Median Income (AMI);

       (2) be located in designated workforce housing zones or areas experiencing job growth;

       (3) include units set aside for veterans, seniors, or individuals with disabilities; and

       (4) remain affordable for a period of no less than thirty years.

    (D) The South Carolina Housing Finance and Development Authority shall establish rules to prioritize mixed-income projects and developments that colocate childcare, transit access, or health clinics.

 

SECTION 12. Article 1, Chapter 13, Title 31 of the S.C. Code is amended by adding:

 

    Section 31-13-100. (A)(1) There is created within the South Carolina Housing Finance and Development Authority the "Community Housing Growth Incentives Fund," to provide grants and technical assistance for the development, preservation, and accessibility of workforce and mixed-income housing, and to expand homeownership opportunities for targeted workforce populations.

       (2) The fund may receive appropriations from the General Assembly and may accept gifts, grants, and other funds from public or private sources.

       (3) Awards made pursuant to this section are subject to the availability of funds appropriated by the General Assembly, and total awards in a fiscal year may not exceed the aggregate amount authorized in the annual general appropriations act.

    (B) The authority may award grants to:

       (1) municipalities or counties implementing zoning, land use, or permitting reforms to encourage affordable housing;

       (2) nonprofit or for-profit developers undertaking workforce or mixed-income housing; and

       (3) projects located within a "Community Revitalization Zone" as defined by the authority in regulation.

    (C) Grant funds may be used for:

       (1) predevelopment and infrastructure costs;

       (2) land acquisition and site control;

       (3) site rehabilitation, including brownfield redevelopment;

       (4) construction or preservation of mixed-income rental or for-sale housing; and

       (5) technical assistance, including planning support, permitting guidance, and architectural or engineering design for affordable housing.

    (D)(1) Awards for infrastructure, land acquisition, or site preparation may not exceed two million five hundred thousand dollars for each project.

       (2) Awards for construction or preservation soft funding may not exceed one million dollars for each project.

       (3) Down payment assistance awards may not exceed twenty-five thousand dollars for each eligible homebuyer.

       (4) Except for awards granted pursuant to subsection (E), grant recipients must provide a funding match from nonstate sources of no less than one dollar for each one dollar of grant funds awarded.

    (E)(1) The authority shall establish a grant track within the fund for income-qualified individuals with at least two consecutive years of verified work experience in one or more of the following categories:

           (a) family caregivers providing care for children, the elderly, or individuals with disabilities;

           (b) public school teachers, paraprofessionals, or early childhood educators;

           (c) honorably discharged veterans of the United States Armed Forces; or

           (d) formerly incarcerated individuals who have maintained continuous employment since release and complied with all conditions of supervision.

       (2) Eligible individuals under this subsection may receive:

           (a) priority access to down payment and closing cost assistance;

           (b) a one-time homeownership counseling stipend not exceeding one thousand dollars; and

           (c) eligibility for first-time homebuyer incentives regardless of prior rental history or credit limitations, subject to completion of financial counseling and income verification.

       (3) The authority shall publish an application process and timeline ensuring that eligible applicants are notified of application status within sixty days of submission and that funds are disbursed within one hundred twenty days of approval, subject to available funds.

    (F) No less than twenty-five percent of total funds appropriated or available pursuant to this section each fiscal year must be allocated to the grant track established in subsection (E), provided that such allocation does not conflict with federal low-income housing tax credit compliance or bond requirements.

    (G) In awarding grants pursuant to subsections (B) and (E), the authority shall give priority to proposals that:

       (1) align with regional workforce development plans or local economic growth strategies;

       (2) are colocated with or proximate to licensed childcare facilities, public transit service, broadband service, or community health services; and

       (3) reduce housing instability among caregivers, public school employees, healthcare workers, veterans, and individuals reentering the workforce following incarceration.

    (H)(1) Administrative expenses of the authority related to the fund may not exceed five percent of the total funds appropriated or available in a fiscal year.

       (2) The authority shall submit an annual report to the General Assembly and the Governor by January fifteenth of each year summarizing:

           (a) total awards made;

           (b) number and type of units supported;

           (c) number of homebuyers assisted;

           (d) geographic distribution of awards; and

           (e) average and median per-unit and per-homebuyer public investment.

    (I) The provisions of this section are repealed five years after the effective date of this act unless reauthorized by the General Assembly.

 

    Section 31-13-110. (A) The South Carolina Housing Finance and Development Authority shall prepare and submit an annual "South Carolina Housing Affordability Report" to the Governor, the President of the Senate, and the Speaker of the House of Representatives no later than January fifteenth of each year.

    (B) The report must include, at a minimum:

       (1) the average monthly rents and the percentage of renter households paying more than thirty percent of income for housing, by county and by region, using the most recent available data;

       (2) the number and location of housing units created or preserved in the preceding year under:

           (a) the state low-income housing tax credit program; and

           (b) any local rent stabilization, rent notice, or similar affordability programs administered or monitored by the authority;

       (3) aggregated, nonidentifiable demographic information for households served, including income bands, household size, veteran status, age, disability status, and employment sector where available; and

       (4) to the extent data is reasonably available to the authority:

           (a) changes in school attendance rates among households receiving assistance;

           (b) measures of workforce retention or turnover in sectors served by targeted housing programs; and

           (c) changes in homelessness counts or rates in communities served.

    (C) The authority shall identify the data sources used, the methodology for calculating each measure, and any material limitations in the data.

    (D) The report must be posted in a machine-readable format on the authority's publicly accessible website and must remain available for at least five years.

    (E) The Office of Working Families shall coordinate housing data sharing between the Housing Authority, Department of Social Services, the Department of Commerce, and municipal planning departments.

 

SECTION 13. Title 1 of the S.C. Code is amended by adding:

 

CHAPTER 36

 

Office of Family Protection

 

    Section 1-36-5.  The General Assembly finds that:

    (1) strong and stable families are vital to the social and economic health of this State, but many families face challenges in balancing caregiving, workforce participation, and access to essential services; and

    (2) support for families should be delivered in a manner that maximizes efficiency, avoids duplication, leverages federal and private resources, and protects taxpayers from unnecessary growth in state government.

 

    Section 1-36-10. The purpose of this chapter is to establish a limited, coordinated framework within the Department of Administration to support and protect families and caregivers by improving efficiency, eliminating duplication, and maximizing the use of federal and private resources.

 

    Section 1-36-20. (A) There is created within the Department of Administration a division to be known as the Office of Family Protection (OFP). The division shall operate under the supervision of the Executive Director of the Department of Administration.

    (B) The mission of the OFP is to:

       (1) coordinate state-level initiatives designed to support families, caregivers, and underserved workers;

       (2) oversee the implementation and interagency compliance of all provisions of the chapter;

       (3) serve as a central hub for data collection, evaluation, technical assistance, and community engagement; and

       (4) support local governments, employers, and nonprofit organizations in leveraging state resources for family-focused policies.

 

    Section 1-36-30. (A) The Executive Director of the Department of Administration shall appoint a Director of the Office of Family Protection. The Director of the OFP shall serve at the pleasure of the executive director.

    (B) The director may hire professional staff, including policy analysts, program evaluators, community liaisons, data scientists, and communications and outreach specialists, subject to appropriations and Section 1-36-70.

    (C) The OFP shall operate in coordination with:

       (1) the Department of Health and Human Services;

       (2) the Department of Social Services;

       (3) the Office of Mental Health of the Department of Behavioral Health and Developmental Disabilities;

       (4) the State Department of Education;

       (5) the Department of Employment and Workforce;

       (6) the Department on Aging;

       (7) the Department of Revenue; and

       (8) the Department of Commerce.

 

    Section 1-36-40. (A) The OFP shall submit an annual report to the Executive Director of the Department of Administration, the Governor, the President of the Senate, and the Speaker of the House of Representatives by December first of each year. The report must include:

       (1) programmatic updates and implementation progress across all sections of the act;

       (2) disaggregated demographic data on participation in tax credits, caregiver programs, housing and rental assistance, school meal and afterschool care programs, and mental health and maternal health services;

       (3) fiscal impact analysis and return-on-investment assessments; and

       (4) recommendations for administrative, regulatory, or legislative changes.

    (B) Reports must be made public and shall include plain-language summaries and Spanish translations.

 

    Section 1-36-50. (A) There is created the Family Protection Advisory and Accountability Board. The board shall:

       (1) provide public input on the implementation of this chapter;

       (2) review and advise on the OFP annual report and evaluation metrics; and

       (3) recommend reforms, funding strategies, or local partnerships.

    (B) The board shall be comprised of at least fifteen members, appointed by the Governor with advice from the Senate and House leadership, including:

       (1) at least four low-income or working-class residents;

       (2) two nonprofit leaders serving caregivers or working families;

       (3) one military or veteran advocate;

       (4) two local government officials;

       (5) two employers;

       (6) one mental health professional;

       (7) one rural community representative;

       (8) one educator; and

       (9) one individual with lived experience as a caregiver or returning citizen.

    (C) Board members shall serve two-year terms and shall meet at least quarterly.

    (D) Advisory councils or task forces established under this section shall automatically sunset after four years unless reauthorized by the General Assembly.

 

    Section 1-36-60. (A) Within twelve months of enactment, the OFP shall develop and launch a family protection integrated data dashboard, accessible to the public and updated regularly.

    (B) The dashboard must include:

       (1) real-time indicators on tax credit claims, program uptake, and service backlogs;

       (2) heat maps showing county-level disparities;

       (3) user-friendly filters by age group, income level, race or ethnicity, and rural versus urban status; and

       (4) tools for local governments and nonprofits to benchmark progress and apply for grant funding.

 

    Section 1-36-70. (A) The General Assembly shall appropriate no more than ten million dollars annually to the Department of Administration for the operation of the Office of Family Protection, including administrative costs and innovation grants. No more than ten percent of the appropriation may be expended on administrative costs.

    (B) All expenditures of the OFP are subject to line-item appropriations by the General Assembly. The OFP may not obligate or expend funds in excess of appropriations, nor create continuing obligations beyond the fiscal year without express statutory authorization.

    (C) Any funds appropriated to the OFP but not expended by the end of the fiscal year shall revert to the general fund.

    (D) The OFP shall, to the greatest extent practicable, coordinate and consolidate existing state staff, infrastructure, and programs before initiating new hires or expenditures.

    (E) The OFP may not establish permanent programs or continuing obligations without specific authorization by the General Assembly.

 

    Section 1-36-80. (A) The Legislative Audit Council shall conduct a comprehensive review of the effectiveness and efficiency of all provisions of this chapter no later than December 31, 2030.

    (B) Based on the findings, the General Assembly shall determine whether to extend or modify the OFP and associated programs, or to consolidate, sunset, or redirect specific credits or pilot projects.

 

SECTION 14.A. Chapter 15, Title 2 of the S.C. Code is amended by adding:

 

Article 9

 

Joint Citizens and Legislative Committee on Prescription Drug Affordability

 

    Section 2-15-910.  There is created a committee to be known as the "Joint Citizens and Legislative Committee on Prescription Drug Affordability." The committee is established as an advisory body to study prescription drug costs and to make recommendations to reduce expenditures for the State of South Carolina, its employees, and residents.

 

    Section 2-15-920.  (A) The committee is composed of:

       (1) three members of the Senate, appointed by the President of the Senate, at least one of whom must be from the minority party;

       (2) three members of the House of Representatives, appointed by the Speaker of the House, at least one of whom must be from the minority party; and

       (3) no fewer than six and no more than nine citizen members appointed by the Governor with the advice of the President of the Senate and the Speaker of the House.

    (B) Citizen members must include at least:

       (1) three patients or caregivers;

       (2) two licensed healthcare professionals;

       (3) one academic expert in health economics or public health; and

       (4) one representative of employees or small businesses.

    (C) The citizen members shall serve terms of four years and until their successors are appointed and qualify. The terms of the members must be staggered, and initial appointments must be designated to provide for staggered expiration dates. Vacancies must be filled in the same manner as the original appointment for the remainder of the unexpired term.

    (D) The committee shall elect a chairman and vice chairman from among its legislative members. The chairmanship must alternate every two years between a member of the Senate and a member of the House of Representatives.

 

    Section 2-15-930.  (A) The committee shall meet at least quarterly and at the call of the chairman or a majority of its members.

    (B) The committee shall hold at least one public hearing annually in each of the following regions of the State: the Upstate, the Midlands, and the Coastal region.

 

    Section 2-15-940.  The committee shall:

    (1) review annual trends in prescription drug costs in South Carolina;

    (2) evaluate the impact of prescription drug spending on the State Health Plan, Medicaid, and other state-funded programs;

    (3) examine the role of pharmacy benefits managers and other entities in the prescription drug supply chain;

    (4) receive and consider citizen testimony on prescription drug affordability; and

    (5) develop annual recommendations to the General Assembly to achieve measurable savings for the State and for employees and families.

 

    Section 2-15-950.  (A) The committee shall submit a written report to the General Assembly no later than December first of each year.

    (B) The report must include, at a minimum:

       (1) a list of the top twenty prescription drugs by total annual state expenditure;

       (2) a list of the top twenty prescription drugs by average out-of-pocket cost to beneficiaries;

       (3) identification of prescription drugs with annual price increases exceeding ten percent or that impose extraordinary costs on the State or patients;

       (4) estimated fiscal savings to the State and out-of-pocket savings to employees and beneficiaries if recommendations are adopted;

       (5) estimated costs to the State and to beneficiaries if no action is taken;

       (6) a comparison of South Carolina prescription drug expenditures with at least three neighboring states and national averages;

       (7) data on skipped doses, delayed care, or financial hardship due to drug costs, and the availability and utilization of generic and biosimilar alternatives;

       (8) analysis of rebate pass-through, spread pricing, administrative fees, and contracting practices that contribute to higher costs;

       (9) a statement of whether each recommendation requires legislation, regulation, or administrative action and a proposed implementation timeline; and

       (10) a summary of testimony and citizen feedback from the required regional public hearings.

    (C) The report must be published on the General Assembly's website within thirty days of submission.

 

    Section 2-15-960.  The committee must be staffed by existing personnel from the Legislative Audit Council and the Department of Health and Human Services, as assigned. No additional permanent staff positions may be created for the operation of this committee.

 

    Section 2-15-970.  This article is repealed five years from the effective date of this act unless reauthorized by the General Assembly.

 

B. The existing sections of Chapter 15, Title 2 are redesignated as Article 1, entitled "General Provisions."

 

SECTION 15. Article 1, Chapter 6, Title 44 of the S.C. Code is amended by adding:

 

    Section 44-6-42. The Department of Health and Human Services is authorized to:

    (1) negotiate supplemental rebates and bulk-purchasing agreements with pharmaceutical companies for:

       (a) asthma inhalers;

       (b) antivirals;

       (c) blood pressure medications, including hypertensives and hypotension drugs;

       (d) epinephrine auto-injectors;

       (e) insulin;

       (f) oral contraceptives;

       (g) psychotropic medications;

       (h) long-acting reversible contraception (LARC);

       (i) remote blood pressure cuffs and monitors; and

       (j) contraceptive implants and IUDs;

    (2) enter multistate consortiums or purchasing pools to reduce per-unit costs;

    (3) establish a preferred drug list (PDL) that reflects affordability and efficacy priorities, in coordination with the Prescription Drug Advisory Committee; and

    (4) develop a state pharmacy card to extend negotiated discounts to uninsured or underinsured residents of South Carolina, modeled on Maine's and New Mexico's discount card programs.

 

SECTION 16. Article 3, Chapter 53, Title 44 of the S.C. Code is amended by adding:

 

    Section 44-53-364. The Department of Public Health, in consultation with the Department of Health and Human Services and the Prescription Drug Advisory Committee, shall:

    (1) conduct annual public education campaigns on:

       (a) copay caps;

       (b) emergency prescription access;

       (c) the prescription discount card program; and

       (d) rights under public and private health plans;

    (2) promote safe home use of blood pressure monitors, with training materials provided to Medicaid and uninsured patients;

    (3) ensure teens and working-age adults understand protections under the federal birth control mandate and state affordability law; and

    (4) provide guidance to:

       (a) pharmacists regarding legal protections under emergency dispensing laws; and

       (b) physicians regarding affordable prescribing options and biosimilar alternatives.

 

SECTION 17. Funding for implementation of Article 9, Chapter 15, Title 2, Section 44-6-42, and Section 44-53-364 shall come from federal matching funds to which the State is eligible under Medicaid, manufacturer transparency fines, upper payment limit (UPL) violations, and appropriations from the General Assembly as needed for operation of the Prescription Drug Affordability Committee and for outreach.

 

SECTION 18. Chapter 35, Title 43 of the S.C. Code is amended by adding:

 

Article 7

 

Caregiver Support

 

    Section 43-35-710. (A) There is established an unpaid primary caregiver registry and identification card program within the Department of Social Services (DSS), in partnership with the Department on Aging (DOA). For purposes of this article, "unpaid primary caregiver" means the primary person who consistently assumes the primary role of providing direct care and support for an individual who is sixty-five years or older, has an intellectual or physical disability, or is a veteran with a service-connected condition, helping the individual to live successfully in the community and providing the care and support without receiving compensation.

    (B) DSS shall issue a state-recognized caregiver identification card entitling the holder to:

       (1) state caregiver tax credits as contained in Section 12-6-3865;

       (2) access to respite services as contained in Section 43-35-730;

       (3) emergency designation for school or hospital contacts; and

       (4) eligibility for job protections and employer-side tax incentives as contained in Section 12-6-3715.

    (C) DSS shall verify annually the primary caregiver's status. Caregiver verification may include:

       (1) healthcare provider documentation;

       (2) Medicaid, disability, or veteran status of the care recipient; or

       (3) sworn affidavit attestation.

 

    Section 43-35-720. (A)(1) There is established a primary caregiver grant fund and program within the Department of Health and Human Services (DHHS) to provide direct payments or subsidies of up to five hundred dollars per month to eligible low- and moderate-income primary caregivers who:

           (a) provide at least twenty hours of unpaid care per week to a qualifying individual;

           (b) are not otherwise compensated by Medicaid or a private employer;

           (c) have annual household income under three hundred percent of the federal poverty level; and

           (d) are a registered unpaid primary caregiver.

       (2) If funding is insufficient for the number of eligible caregivers, grant funding priority must be given to the following primary caregivers:

           (a) kinship caregivers raising children of relatives;

           (b) grandparents raising grandchildren; and

           (c) caregivers of veterans or disabled children.

    (B)(1) The General Assembly shall appropriate for the primary caregiver grant fund the following:

           (a) beginning with the calendar year ending December 31, 2027, five million dollars;

            (b) for the calendar year ending December 31, 2028, up to seven million dollars;

            (c) for the calendar year ending December 31, 2029, up to nine million dollars; and

            (d) for the calendar year ending December 31, 2030, up to ten million dollars.

    All increases must be based on participation numbers.

       (2) In addition to state funding received, DHHS shall seek federal matching funds.

    (C) The provisions of this section are effective for tax years beginning on or after January 1, 2027, and ending December 31, 2030, unless extended by an act of the General Assembly.

    (D) DHHS must submit an annual report to the General Assembly outlining, among other relevant data, utilization demographics.

 

    Section 43-35-730. (A)(1) There is established a caregiver respite services program within The Department on Aging (DOA). DOA shall collaborate with its area agencies on aging, designated pursuant to Section 43-21-45, in establishing the program.

       (2) The caregiver respite services program shall include in-home respite, adult day programs, and short-term stays in care facilities to include assisted living or skilled nursing facilities, emergency drop-in care, and mobile respite units.

       (3) For purposes of this section, "respite" means a temporary break for caregivers, ranging from a few hours to a few days, depending on what the caregiver needs.

       (4) An eligible caregiver includes a person who is eighteen years or older who is caring for any of the following individuals:

           (a) an individual who is sixty years or older and who is in need of assistance with daily living activities;

           (b) an individual of any age with Alzheimer's disease or another form of dementia;

           (c) a child under the age of eighteen years who is cared for by one or more relatives fifty-five years or older; or

           (d) an adult with disabilities between the ages of eighteen and fifty-nine years of age who is cared for by one or more relatives fifty-five years or older.

    (B) In addition to receiving state funding, the Department on Aging shall seek grants, vouchers, community partners, and available federal funds.

    (C) DOA may exercise its discretion to ensure priority is given to individuals residing in underserved or rural areas.

    (D)(1) DOA shall provide an annual report on the demographics of utilization to include, but not be limited to, the following:

           (a) the location and service rendered by type and hours;

           (b) the number of requests received; and

           (c) the number of unfulfilled requests, providing for each unfulfilled request the following information: whether the request was unfulfilled due to lack of resources or funding, the service area in question, and any caregiver feedback.

       (2) A joint legislative committee annually shall review the report and recommend whether additional funding or resources are needed.

 

    Section 43-35-740. (A)(1) The Office of Family Protection established pursuant to Chapter 36, Title 1, shall launch a community caregiver navigation program, providing trained caregiver navigators embedded at:

           (a) county DSS offices;

           (b) SC Works employment centers; and

           (c) local hospitals and clinics.

       (2) Navigators shall assist with:

           (a) access to respite care, subsidies, and identification cards;

           (b) Medicaid waiver programs;

           (c) veteran caregiver services; and

           (d) employment, tax credits, and education.

    (B) The program will prioritize:

       (1) caregivers who are under thirty years of age or over fifty-five years of age;

       (2) rural residents; and

       (3) first-generation or language-isolated households.

 

    Section 43-35-750. (A) The Department of Administration shall oversee a statewide multimedia campaign titled "South Carolina Cares" to:

       (1) destigmatize and validate caregiving as essential labor;

       (2) inform employers, health providers, and schools about caregiver rights and programs; and

       (3) promote participation in the primary caregiver identification program, respite offerings, and tax relief.

    (B) Campaign materials must be:

       (1) available in multiple languages;

       (2) shared through local news, public health offices, and libraries; and

       (3) adapted for use by employers and healthcare systems.

 

SECTION 19. Chapter 1, Title 41 of the S.C. Code is amended by adding:

 

    Section 41-1-140.  (A)(1) An employer may not:

           (a) discriminate or retaliate against an employee based on their status as an unpaid primary caregiver; or

           (b) deny reasonable requests for flexible scheduling, job-sharing, or temporary part-time status due to verified caregiving obligations.

       (2) Employers with fifteen or more employees must provide up to five days of unpaid job-protected leave annually for caregiving emergencies, in addition to federal protections under FMLA (if applicable).

       (3) Caregivers must provide reasonable notice and verification through the state unpaid primary caregiver identification program.

    (B) The Department of Labor, Licensing and Regulation shall enforce this provision and may assess fines or issue compliance orders for violations.

 

SECTION 20. The General Assembly finds that the sections presented in this act constitute one subject as required by Section 17, Article III of the South Carolina Constitution, in particular finding that each change and each topic relates directly to or in conjunction with other sections to the subject of supporting families, communities, and taxpayers as clearly enumerated in the title.  The General Assembly further finds that a common purpose or relationship exists among the sections, representing a potential plurality but not disunity of topics, notwithstanding that reasonable minds might differ in identifying more than one topic contained in the act.

 

SECTION 21. Except as otherwise provided, this act takes effect upon approval by the Governor.

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