Senate subcommittee advances Equine Advancement Act after trimming fee language and ordering advertising safeguards

A Senate Finance subcommittee voted to send S.344, the South Carolina Equine Advancement Act, to the full committee after adopting amendments that remove certain fee-raising provisions, make applicants — not the commission — pay fingerprint-based background checks, and direct staff to craft advertising restrictions to protect minors.

Grant Gibson, legislative staff, summarized the bill’s structure and key provisions, saying, "Obviously, no, this is the South Carolina Equine Advancement Act," and listing definitions, the creation of a South Carolina Equine Commission, licensing mechanics for advanced deposit wagering (ADW), and the establishment of an Equine Industry Development Fund.

Why it matters: committee members said they wanted to preserve the bill’s substantive goals while avoiding a procedural ruling in the House that could invalidate the bill if it contained explicit revenue-raising language. "What we've had is, out of an abundance of caution, some good senate bills that have these things in — we have to sort of send it to the house clean of revenue," a committee member said during debate.

Key changes and votes: members approved a package of edits that (1) remove the word "licensed" from the bill’s definition of historical horse racing to read "any racetrack," (2) correct typographical errors, (3) change the statutory text so applicants — rather than the Commission — bear the cost of fingerprint-based background checks, and (4) strike several lines that expressly authorized the Commission to collect fees or set license fee amounts. The committee also agreed to strike broadly worded delegation language that would have given sweeping discretion to the new commission. The subcommittee recorded the favorable report to the full committee by a 3–1 vote.

Fee and funding details: staff flagged specific provisions that would have set an initial ADW application fee ($5,000) and a $1,000 renewal fee; senators debated whether to retain explicit dollar amounts in statute because of House rules that have treated some fees as revenue-raising and subject to origination in the House. The committee’s amendment removes the explicit fee lines from the version it will forward; members said the House could reinsert fee amounts if it chooses.

Advertising and child-protection directives: the subcommittee asked staff to draft advertising restrictions for the Equine Commission and ADW license holders based on existing South Carolina Education Lottery advertising law and examples from other states. Members specifically asked staff to include internet- and social-media-related safeguards and age-gating or other measures to reduce the risk of under-18 access. As one senator put it during discussion, the commission and applicants should ensure advertising content and practices "don't target and export ethnic groups or economic classes of people." Staff said they will prepare a separate advertising amendment to be taken up by the full committee.

Regulatory scope: a senator raised concern the draft gave the Commission broad rulemaking authority; proponents of delegation said regulatory expertise is necessary for technical rulemaking and that proposed regulations will return to the committee for review. The subcommittee voted to narrow an especially broad delegation clause.

Next steps: the subcommittee reported S.344 favorably to the full Finance Committee (vote 3–1). Committee leaders said the bill is expected to be placed on the next available full committee agenda, with the earliest anticipated date the first Tuesday in February.

The subcommittee recorded several directions for staff — drafting the advertising amendment with child-protection and disclosure elements, preparing the global amendment that removes specified fee lines, and ensuring the bill’s amended text is available when it reaches the full committee. No public testimony was recorded at this hearing.