Committee advances creation of state auditor; adopts pregnancy‑care tax credit amendment and paid‑leave eligibility change

The South Carolina Senate Finance Committee took three committee actions late in its meeting: it advanced an amendment to create an independent Office of the State Auditor, and it reported favorably — as amended — on S.32 (a pregnancy care tax credit) and S.11 (changes to state employee paid parental leave eligibility).

Office of State Auditor: Committee members debated and adopted a comprehensive amendment to create a Department of Governmental Auditing and an independent state auditor appointed by the governor with Senate advice and consent. The amendment sets qualifications, a six‑year term, removal procedures, staffing provisions and requires the auditor to oversee the state’s ACFAR and to examine the state treasurer’s accounts as often as deemed appropriate. The amendment also clarifies the auditor’s authority to examine banks and financial institutions that have handled treasurer transactions and requires reporting of irregularities to the governor and attorney general. The committee adopted the amendment and gave the bill a favorable report as amended.

S.32 — Pregnancy care tax credit (as amended): The committee adopted a subcommittee amendment that changes and clarifies the tax credit before recommending it favorably. Key changes adopted by the committee include: limiting the aggregate annual credit in the initial phase to $3.5 million (the earlier draft had increased a later cap to $10 million); adding maternity homes and residential programs for human trafficking survivors to the definition of eligible organizations; requiring annual recertification and financial reporting to the Department of Revenue; setting a 2030 sunset for the credit; and making the credit nonrefundable with a five‑year carryforward. The committee’s action was a favorable report as amended.

S.11 — Paid family leave (as amended): The committee adopted an amendment narrowing the definition of an eligible state employee to those occupying positions eligible to earn annual leave (the amendment arose from concern that earlier language could expand eligibility unintentionally to short‑term or grant‑funded positions). The committee then reported the bill favorably as amended.

Votes and procedure: Committee action on the amendment creating the state auditor and the two bills were taken by voice vote; the transcript records “aye” responses and no recorded opposition in committee. Where roll‑call tallies were not recorded in the transcript, committee staff told members they would proceed according to chamber procedure; the committee advanced the measures for further consideration by the full Senate or relevant committees as applicable.