Happy Friday.
And goodbye February. Weather wise, we will not miss you.
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.
To get ahead for your reading purposes, this notebook will be Senate heavy but with a dose of House action toward the end.
Notebook highlights:
- A multi-hour contentious hearing between a Senate panel and Treasurer Curtis Loftis included a threat to remove Loftis's deputy counsel from the room.
- Tort reform gets the special slot in the upper chamber's schedule. And health care agency consolidation heads back to House, where a similar bill died in the last legislative session.
- Thursday's freshman tiny mic spotlight is a House lawmaker who oddly enough shares the exact name of a lawmaker in the other chamber. (Sorry if we gave it away).
Senators vs. Treasurer
State Treasurer Curtis Loftis spent more than two hours Thursday testifying before a state Senate panel trying to get to the bottom of state government’s recent $1.8 billion accounting error.
(If you missed the hearing, you can watch it here.)
We predicted in an earlier Gavel that the hearing was likely going to turn contentious, given previous meetings on the matter. It did not take very long for that reporting to bear out.
Barely an hour into the hearing with the SC treasurer, Chair Grooms repeatedly asked the treasurer’s office deputy general counsel to stop testifying if he wasn’t going to be sworn in or he would be taken out by the Senate sgt. They agreed that the lawyer could speak to Loftis. pic.twitter.com/ATphOOYE7N
— Maayan Schechter (@MaayanSchechter) February 27, 2025
The scheduled hearing occurred less than 24 hours after the state Treasurer's Office (a state agency) released a 58-page report that Loftis says shows the office acted in "good faith."
"This Senate ought to be ashamed," Loftis at one point said to the subcommittee. "This is child-like, and there are real consequences."
For background: About two years ago, it was publicly disclosed that there was a $3.5 billion accounting error in the state's annual financial disclosure. It led to the resignation of then-Comptroller General Richard Eckstrom. Gov. Henry McMaster appointed Brian Gaines to serve as his replacement. Then, news broke publicly that a related accounting issue existed: The State Treasurer's Office had a fund listing a balance of $1.8 billion with no designated agency claim. Lawmakers weren't sure if it was actual cash that belonged to a state agency or was available to appropriate. They spent $3 million to hire an outside audit firm, AlixPartners, which ultimately said that $1.6 billion of that money was not real and the remainder was already spent in prior years. The report stated that offices of the comptroller general, the treasurer, and the auditor all had knowledge of the fund's existence. After the audit came out, former state Auditor George Kennedy resigned. Meanwhile, the whole ordeal is also under federal investigation by the Securities and Exchange Commission.
On Thursday, Loftis said he didn't have any disagreements with the audit and said he accepted the recommendations in the report. But he also at times declined to answer specific questions by the panel, such as whether he shared any responsibility over the error.
There wasn't a lot of *new* news out of the hearing, which included lots of back-and-forth and traded barbs between Loftis and senators.
The panel's chair Sen. Larry Grooms, R-Berkeley, and member Sen. Stephen Goldfinch, R-Georgetown, argued Loftis was at times misleading the committee or obfuscating. In particular, they honed in on whether he knew the $1.8 billion was not in fact all real and when he found out.
Loftis also used the hearing to criticize the Comptroller General's Office, arguing to senators that current leadership is not communicating properly — an assertion some senators and the current comptroller have flatly denied.
In his report's executive summary, the treasurer's office also accused the comptroller of two eyebrow-raising allegations:
- That Gaines provided "inaccurate communications and under-oath testimony" to the Senate finance committee about the fund;
- And that Gaines and/or his office "provided false information to AlixPartners, withheld other important information from AlixPartners, and that the CGO may have provided false information to the Subcommittee."
Those allegations were enough for state Sen. Margie Bright Matthews, D-Colleton, who accused Loftis of lying to the committee.
What's next: Grooms says he plans to hold at least one more hearing on the matter to settle a question over the issuance of bonds, likely next Tuesday, before the subcommittee publishes its final report with recommendations. Grooms has been clear himself that he believes the treasurer must resign, a call the treasurer has repeatedly resisted. But Grooms told reporters after the hearing he believes one of the suggestions will be that Loftis be removed from office, but said he wants his subcommittee to be in agreement.
Up Tuesday, tort reform
The Senate on Thursday put S. 244 — the tort reform bill — on the special order calendar, sliding it to the top of the agenda when the chamber meets back on Tuesday next week.
Senators voted 34-6. All six no's were by Democrats.
Based on conversations with senators — and, frankly, the complexity of the bill — we expect tort reform to take more than a week in March, followed likely by a bill on energy.
The tort reform debate has taken a lift of its own, from social media memes and X posts (RIP tweets) to a heated discussion between Senators and Representatives on the House floor.
Senate Majority Leader Shane Massey, an Edgefield Republican and the author of the bill who has has been targeted on social media by who opponents of his efforts, declined to comment on these outside "discussions."
So, expect a long and, potentially, fiery debate next week.
In other Senate news this week:
- The Senate easily passed its health care agency consolidation bill, S. 2, on Wednesday by a vote of 42-2. The bill combines three health care-related agencies. If approved, the departments of mental health, disability services and alcohol and drug abuse services would be combined into a brand new agency, the Department of Behavioral Healthcare and Developmental Disabilities.
- The Senate also approved a bill to combat fentanyl-induced homicides. If enacted into law, someone who dispenses fentanyl that causes death could face a felony charge punishable by up to 30 years in prison. The bill now goes to the House. In 2023, a law was enacted requires mandatory prison time for anyone convicted of trafficking fentanyl in South Carolina.
Freshman spotlight: Tiny mic spotlight
Thirty-two new lawmakers joined the Legislature this year.
Nineteen of them are in the House. The Senate has 13.
Welcome back to our freshman spotlight: tiny mic edition, where we introduce a new member of their respective chamber. (We edit for length and clarity.)
Next up: State Rep. Luke Rankin, a Republican who represents House District 14, which covers part of Laurens County.
Let's get this out of the way. You share a name with the state Sen. Luke Rankin, a Republican from Horry County: We've actually had quite a bit of confusion over the last five years, ever since I got involved and ran for county council in Laurens County, five years ago. I get emails, phone calls, text messages and even sometimes his mail.
What has been the most surprising thing at the Statehouse: I was pretty well prepared to know what to expect when I got here. I will say, the fact that we as Republicans, Democrats, Democratic Caucus, Freedom Caucus, House Republican Caucus, we can all get together and get along even when we don't always agree. That's always refreshing to see. It's not like that in Washington D.C.
What spot in your district would you recommend to visitors: The Clock in Laurens. If you want some fantastic, just home cooking-style meals. It's the best place in town.
What's the last TV show you watched: My wife and I are wrapping up Monk.
Where are you spending time when you're not at the Statehouse: You can find me on the tennis courts. I've got to get out some energy. I love my recreational activities and playing tennis.
For the late night legislating, what's your go to snack: Oreos
College team you pull for: I always pull for the Tigers. I didn't go there, but I'm a huge fan.
Clips from around the state
- Defiant SC Treasurer Curtis Loftis accuses Senate Republicans of falsehoods over missing $1.8 billion (Post and Courier)
- Any company that supports diversity can’t do business with SC under proposed law (The State)
- 'I don't have a Plan B': SC farmers hit by federal funding freeze in mad rush to make ends meet (Post and Courier)
- Proposed tariff could impact SC automotive industries (WSPA)
- State Senate confirms Gov. Henry McMaster’s picks for state agencies (WIS)
- Without a hands-free driving law, SC could lose upwards of $40M in federal road funding (SC Daily Gazette)
- State, federal governments are eyeing crypto legislation (States Newsroom)
