House Judiciary Chairman Weston Newton, R-Bluffton, shows the bourbon delivered to his law office while advocating for his bill on alcohol deliveries Wednesday, Feb. 7, 2024, in the House chamber. (Screenshot from SCETV livestream)
COLUMBIA — The House passed legislation Thursday focused on aiding South Carolina restaurant owners who’ve been slammed by growing insurance costs and a shrinking number of providers, taking action on what Speaker Murrell Smith said they “know is a problem.”
But leadership balked at broadening the scope to increasing premiums faced by other industries. That sets up a potential battle of wills between GOP leaders in the two chambers.
Legislation that senators opened debate on Tuesday is much broader. While it also tackles restaurants’ liability for serving alcohol, the bill also deals with a host of other business insurance issues, including medical malpractice, liability for manufacturers and truckers, and negligence for construction defects.
However, on Thursday afternoon, that extensive approach appeared on life support. The chamber adjourned for the week after senators refused to kill an amendment that could gut the bill. The 19-25 failed vote on rejecting the amendment indicated there was enough support to massively pare down the bill. Debate resumes Tuesday.
SC Senate bill aims to fix business insurance crisis. Critics say it benefits insurers.
The bill that passed the House unanimously would eliminates the state law that holds a restaurant responsible for 100% of court-awarded damages for an injury, even if it played little role in the accident.
It would add that an employee must “knowingly” serve an intoxicated person to be in violation of law. Other changes designed to lower insurance rates for liquor liability include strengthening penalties for drunken driving and requiring alcohol server training for employees.
“We need to solve this problem (first) and then move on to the next one,” said House Judiciary Chairman Weston Newton, R-Bluffton, the bill’s chief sponsor.
Instead of tackling the other issues in one bill, House leaders say they’ll form a special committee to keep probing the long-debated issue and study how liability law changes have played out in other states.
“South Carolina is at a tipping point,” said Rep. Bill Herbkersman, R-Bluffton. “Policies are being cancelled. We’re hearing that every day.”
In particular, House members say they need to hear from insurance companies directly about rising premiums and what it will take to lower them.
“We’ve got to get to the bottom of rising insurance costs,” said Herbkersman, chairman of the House Labor Commerce and Industry Committee.
In hearings on the Senate legislation, no insurance company came to testify, which Smith called “questionable.”
The House committee will be equipped with subpoena power to force insurance companies to come to the podium for questioning.
“The way to do it is to understand the problem,” said Smith, R-Sumter.
Smith declined to comment on the Senate legislation until something actually passes out of the upper chamber, though he said it’s no secret insurance costs for both business owners and consumers are one the rise across the board.
SC Daily Gazette reporter Shaun Chornobroff contributed to this report.