Ways and Means adopts package of non‑funding proviso amendments; dollar changes deferred

The House Ways and Means committee adopted a set of non‑funding proviso amendments Tuesday and agreed to take up dollar amendments after the committee completes spreadsheet work tomorrow.

The package included provisions on fraud mitigation for benefit checks, limits on mandatory student health insurance, a cut to vacant full‑time equivalent (FTE) positions, adjustments to university fee‑waiver limits, and several program‑specific clarifications affecting broadband, water systems and interscholastic athletics.

Why it matters: The provisos set policy boundaries and reporting requirements that guide agency implementation and oversight. The committee’s approvals change how agencies must document practices (fraud mitigation), alter institutional discretion (fee waivers), and require agencies to report staffing reductions by a specified date.

Key approvals and summaries

• Fraud mitigation proviso (author/explainer: Chair Bannister): The proviso requires state agencies that issue benefit checks to develop and report measures to detect and stop fraud. The language excludes payments for services rendered or procurement disbursements and asks agencies to describe verification, issuance/distribution security and monitoring procedures. Chair Bannister asked members to adopt the proviso; the committee approved it by voice vote. Ms. Scott Minor told the committee she did not believe the measure would require agencies to hire additional staff.

• Student health insurance (Representative Ballantine): Prohibits institutions from automatically enrolling and charging students for campus health insurance; institutions must provide an opt‑in mechanism. Ballantine said the change responds to students and families who had been automatically charged when they overlooked the insurance line on enrollment forms. The amendment passed by voice vote.

• Vacancy reductions (Department of Administration analysis; explained by Chair Bannister): Using a 2021 vacancy baseline adjusted for post‑2023 authorizations, the proviso directs the State Division of Human Resources and the Executive Budget Office (EBO) to reduce each agency’s vacant FTEs by 25 positions, with a December 1 report required listing eliminations. Examples cited in committee remarks: the House of Representatives (4 FTEs) and the University of South Carolina (131 FTEs); a figure for the Department of Corrections was discussed in the hearing record (reported in the meeting transcript as "5 79 FTEs"). The amendment passed by voice vote.

• University fee waivers (Representative Taylor): Raises the statutory limit on institutional fee waivers tied to undergraduate tuition revenue; the 4% cap (based on the prior year) has not been updated in about two decades and the proviso would increase the limit by an additional 4 percentage points. Taylor emphasized the waivers are institutional funds, not appropriations from the general fund. The amendment passed by voice vote.

• Bus liability language (Representative Murphy): Clarifies that school districts may include liability insurance requirements as a condition for outside groups using school buses; the change makes such coverage optional for districts rather than mandatory. Passed by voice vote.

• Water systems distribution (Representative Murphy): The amendment makes clear that at least 60% of certain funds should go to small municipalities and rural water authorities, with up to 40% available to larger systems serving more than 30,000 customers. The change was described as providing flexibility and passed by voice vote.

• Broadband / cable certificate timing (Representative Moss): Clarifies the application and franchise process for cable/video service certificates, aiming to reduce delays that can impede rural broadband deployment; Passed by voice vote.

• Interscholastic athletics (Representative Lowe): Removes a 200‑student limitation so students from small private schools can participate in public school teams when appropriate; Passed by voice vote.

• Bridge program (Representative Whitmire): The committee struck an existing bridge‑program proviso at the Education Oversight Committee’s recommendation; Passed by voice vote.

• Palmetto Excel language (Representative Whitmire): Reinstates deleted language related to Palmetto Excel; Passed by voice vote.

Process and next steps: Committee members agreed to defer dollar amendments until the spreadsheet reviews are completed tomorrow; the committee recessed to the call of the chair and will notify members of the reconvening time.

Votes at a glance (committee action)

• Proviso — Fraud mitigation: Passed (voice vote; ayes have it). Author/explainer: Chair Bannister. Note: agencies must report measures and incidents.

• Proviso — Student health insurance (opt‑in): Passed (voice vote; ayes have it). Mover: Representative Ballantine.

• Proviso — Vacancy reductions (25 FTE reduction per agency from adjusted 2021 baseline): Passed (voice vote; ayes have it). Explainer: Chair Bannister. Report due Dec. 1.

• Proviso — Department of Commerce loan satisfaction (amend. 4): Passed (voice vote; ayes have it). Mover: Representative Stefanakis. Committee discussion indicated the amendment would satisfy the entirety of a prior loan under the Department of Commerce.

• Proviso — University fee waivers (raise cap): Passed (voice vote; ayes have it). Mover: Representative Taylor. Current statutory cap referenced as 4% of prior year undergraduate tuition revenue; amendment raises that cap by 4 percentage points.

• Proviso — Bus liability optionality: Passed (voice vote; ayes have it). Mover: Representative Murphy. Allows districts to require liability coverage as a condition for bus use.

• Proviso — Water systems funding flexibility: Passed (voice vote; ayes have it). Mover: Representative Murphy. At least 60% directed to smaller systems; up to 40% to systems >30,000 customers.

• Proviso — Funding prohibition for abortion providers: Passed (voice vote; ayes have it). Mover: Representative Long. (Debated; see separate article.)

• Proviso — DEI restrictions across state entities: Passed (voice vote; ayes have it). Mover: Representative Ballantine. (Extensive debate; see separate article.)

• Proviso — Bridge program language strike: Passed (voice vote; ayes have it). Mover: Representative Whitmire.

• Proviso — Broadband/cable certificate timing (rural focus): Passed (voice vote; ayes have it). Mover: Representative Moss.

• Proviso — Interscholastic athletics (remove 200‑student limit): Passed (voice vote; ayes have it). Mover: Representative Lowe.

• Proviso — Palmetto Excel language reinstatement: Passed (voice vote; ayes have it). Mover: Representative Whitmire.

Speakers who contributed to the package discussion included Chair Bannister; Representative Ballantine; Representative Stefanakis; Representative Taylor; Representative Murphy; Representative Long; Representative Whitmire; Representative Moss; Representative Lowe; Representative Cobb Hunter; Ms. Scott Minor; and others who asked clarifying questions during debate.

Ending: With the non‑funding provisos adopted, the committee paused and will return to consider dollar amendments after completing morning spreadsheet work.