South Carolina budget committee rejects proposal to relax bar insurance mandate

South Carolina bar owners won't get a reprieve from needing to carry at least $1 million in liability insurance.

A plan to suspend that law if and when the state's new spending plan goes into effect was kicked out of the spending plan when the six-member budget conference committee agreed on a budget for the 2026-27 fiscal year.

The proposed proviso violated House rules.

"That would be changing permanent law, which we don't do," House Ways and Means Chairman Bruce Bannister said. "That was a rule violation, kind of from the beginning. I think that was recognized."

The final version of the state budget is expected to be voted on by both chambers when lawmakers are scheduled to return to Columbia on Aug. 11.

South Carolina state government has been operating under a continuing resolution since July 1 because a new state budget was not enacted before the start of the new fiscal year.

When the state Senate passed its version of the 2026-27 state budget, it included a one-year provision to suspend the liquor liability law, which was updated in 2025.

In an effort to bring down liability insurance costs to help bars and restaurants stay open, businesses that serve alcohol can take steps to bring down how much liability insurance they're required to carry. Those steps included closing earlier than midnight, having employees go through alcohol serving training courses, and using a digital identification scanner to make sure a person is at least 21 years old.

Taking enough precautions could lower that liability requirement to $300,000.

But the liquor liability law has not worked as planned as bars and restaurants are struggling to stay open, Senate Majority Leader Shane Massey said in April. Massey was one of seven state senators to propose the proviso suspending the state's liquor liability insurance coverage law.