Weekly Legislative Update

 

North Carolina South Carolina

North Carolina

Betsy Bailey Victor Barbour 
By Betsy Bailey & Victor Barbour
March 4, 2026

N.C. unionization rate second-lowest in U.S.

Labor union membership in North Carolina was 2.5% of wage and salary workers, the second-lowest rate in the U.S., according to data last week  (https://businessnc.us12.list-manage.com/track/click?u=3a9823939a00705b46bd19ed9&id=aaa308c33c&e=b0c93853c1)from the U.S. Bureau of Labor Statistics.

About 113,000 of the 4.55 million people employed in North Carolina belong to unions, the BLS said. South Dakota had the lowest unionization rate at 2.3%, while South Carolina’s was 2.7%. The rate in Tennessee was 4.8%, while Virginia’s is 5.4%.

Hawaii had the highest union membership rate at 24.8%, followed by New York at 21.3%.
The national rate is 10%, little changed from 2024, the BLS said. Twenty percent of U.S. workers were unionized in 1983, the first year of comparable data.

I-77 Delay

The North Carolina Department of Transportation is delaying its Interstate 77 toll lanes project by several months to make time for additional community engagement, the agency announced in a news release Monday. The announcement follows mounting pressure from residents and local leaders who said the NCDOT’s process lacked proper transparency and input. Local officials have debated their power to slow the project ever since the transportation department revealed maps late last year showing the interstate expansion caused by adding toll lanes could encroach on historically Black neighborhoods.

Charlotte City Council planned to vote Monday evening — with uncertain authority — to direct NCDOT to take a 60-day pause. The NCDOT beat them to the punch.

“I think they have listened to council members over the last week and a half. These are small steps,” said District 2 Councilman Malcolm Graham. “There’s certainly a lot more work to be done.”

NCDOT planned to issue its first requests for proposals to finalist companies this month, which would have been a key step in advancing the project. Those requests are now delayed until June, and NCDOT will instead send “preliminary project information” to shortlisted companies on March 13. Project design is only about 10 to 15% complete, so it’s not too late to incorporate more community feedback, according to the news release.

N.C. Secretary of Transportation Daniel Johnson will host small group meetings with impacted residents and establish a community engagement center where residents can drop in and ask questions, though details on when and where that center will operate have yet to be announced. Four finalist companies also will use the extra time to meet with residents along the I-77 corridor, Graham said.

Earlier Monday, the Black Political Caucus of Charlotte-Mecklenburg and several residents of McCrorey Heights filed a temporary restraining order against NCDOT requesting a halt to the project. The goal of the restraining order is to have NCDOT look for alternatives to the project that ensure nearby neighborhoods aren’t negatively impacted. NCDOT officials said they were aware of the filing and would continue to engage with the community on the design process. After the caucus’ news conference, NCDOT released a statement noting that homes north of the John Belk Freeway would be preserved.

Besides the caucus, Sean Langley, president of the McCrorey Heights Neighborhood Association, said residents are working with the Southern Environmental Law Center to request a nine-month pause to the project. And State Senators DeAndrea Salvador and Caleb Theodros, whose districts contain the project, have reached out to Gov. Josh Stein to request a pause. 

Tax Revaluations

The top Republican in the North Carolina Senate — who is facing a tough Republican primary challenge in his home district — is proposing a 12-month freeze on property tax revaluation changes by counties, an announcement that comes days before the election. Senate leader Phil Berger, from Rockingham County, said the break would allow lawmakers to adopt needed property tax reforms, an issue for many homeowners across the state. He plans to propose the legislation in April.

Berger, who has led the chamber since 2011, faces a stiff primary challenge from Rockingham County Sheriff Sam Page, a race that has drawn national attention.

“North Carolinians are shouldering the burden of massive increases in local budgets,” Berger said in a statement. “It doesn’t matter to our citizens if a tax is paid to the state or local government; it’s their money coming out of their pockets.”

Berger previously created a 10-member committee of Republicans to examine the issue. House Speaker Destin Hall has formed a bipartisan committee to look at property taxes. The House committee met in December, January and again this month. The Senate committee has yet to meet.

Property taxes are collected by cities and states, which are in charge of setting the rates. Even if city and county leaders don’t raise rates, increasing property values can lead to higher bills for homeowners — at a time when affordability is a key issue in federal, state and local elections.

Kevin Leonard, the head of the North Carolina Association of County Commissioners, told lawmakers in January that home prices have gone up in all 71 counties that have done property revaluations in the last three years. Each of those counties lowered their property tax rates, he said. But not every county went revenue-neutral, meaning that some people still ended up paying more even though the rates went down.

Page told WRAL that he supports proposed legislation from Rep. John Blust, R-Guilford, that would require counties to keep property taxes revenue neutral after revaluations. The proposal didn’t get a vote in the House or the Senate in 2025. He said Berger could have supported that measure previously.

“If you don’t lower the tax rate to revenue neutral, it’s a tax increase,” Page said. “I don’t want to see our senior citizens who have invested in their home get taxed out of their homes.”

According to the state Department of Revenue, Wake County did its latest revaluation in 2024 and isn’t set for another one until 2027. Durham County conducted its latest revelation in 2025 and its next is set for 2029. Orange County’s next revaluation is set for 2029 and Cumberland County’s is planned for 2033.

At least a dozen counties are set for revaluations in 2026 and a quarter of North Carolina’s 100 counties are planning a revaluation in 2027.

Guilford County, which is part of Berger’s district, is in the process of a revaluation with some homeowners saying their property values have gone up 40% to 60%, according to news reports.

Microsoft Megasite:

After more than a year of speculation, Microsoft has confirmed it plans to build a new data center on 1,350 acres of land it owns in Person County. The company expects to begin the facility’s permitting process this year, according to information Microsoft provided county spokesperson Kim Strickland. “Datacenter projects are highly complex and typically span several years,” Strickland wrote in a Feb. 24 statement. Microsoft purchased the Person County Mega Park for around $27 million in October 2024. Though Microsoft didn’t share its reason for buying the campus at the time, many speculated the company intended to eventually build a mammoth “hyperscale” data center. Microsoft previously committed to invest at least $1 billion to open four data centers northwest of Charlotte in Catawba County. That project stalled last year, however, as the company scaled back its global data center investments. Microsoft confirmed its Person County data center plans after local officials encouraged they do so in order to resolve residents’ lingering questions about the campus. According to Strickland, Microsoft promised a future data center won’t spike electricity prices or reduce water sources. The company vowed to replenish more water than it consumes in developing its Person County site, she wrote.

South Carolina

Leslie Clark  Whitney Williams
By Leslie B. Clark & Whitney Williams
March 4, 2026

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Hands-Free Law

Reminder!  The South Carolina Hands‑Free and Distracted Driving Act is now in full effect.  After a six month “warning and education period,” law enforcement can now issue tickets for violations.  The new law prohibits drivers from holding or supporting a mobile electronic device or using it to read, compose, or view digital content while operating a motor vehicle on public roads. The law creates a new offense of distracted driving with fines for first and subsequent violations and point assessments on driving records.

The latest from the Department of Employment and Workforce

As of February 17, South Carolina’s Unemployment Insurance Trust Fund held a balance of $1.807 billion. For the week ended February 14, 2,128 initial unemployment claims were filed, reflecting newly separated workers seeking eligibility, while 15,625 continued claims were reported for the week ended February 7, indicating the number of individuals still receiving benefits. Meanwhile, 78,238 job openings were listed in SC Works Online Services, and the Department of Employment and Workforce is actively hiring for several positions statewide.

Two WARN notices were recently received: International Paper Company announced a permanent closure of its Georgetown facility between May 1 and December 31, 2026, affecting approximately 126 employees, and Koppers, Inc. reported a permanent layoff of 66 employees at its Florence facility between April 21 and November 2026 due to reduced product demand expected to persist for several years.

JBRC Fiscal Oversight Subcommittee

Last week, the Joint Bond Review Committee Fiscal Oversight Subcommittee met to receive a report from the SC State Ports Authority.  Ports Authority leaders gave a closed-door update to state legislators on the progress of the taxpayer-funded Navy Base Intermodal Facility, a 118-acre rail yard project in North Charleston estimated to cost at least $550 million.

CEO Micah Mallace briefed the Committee for about an hour on confidential negotiations with Norfolk Southern and CSX, discussions that couldn’t be shared publicly because of their sensitive nature. Railroads have been reluctant to commit to using the facility, with Norfolk Southern seeking $27 million in unrelated rail improvements as a condition. Cost overruns and delays have pushed back the facility’s original July 2025 opening, and while SC Ports says it won’t ask for more taxpayer money, its update hints that may depend on future considerations. Officials expect negotiations to finish by June 2026 before final construction bids are sought, and some infrastructure work, like cranes and road connections, continues.

SC Commissioner of Agriculture

Forget the gubernatorial race, the hottest race in town (for the moment) is the Commissioner of Agriculture.  Long-serving Commissioner Hugh Weathers is retiring after 21 years in office.  Since Weathers’ retirement announcement in early 2025 the only announced candidate was his deputy Fred West. 

The sleepy race has come alive in the last few weeks, with three additional candidates joining the race and one already having the endorsement of Governor Henry McMaster and President Donald Trump.   Cody Simpson, a fourth generation farmer and the State Executive Director of the USDA Farm Service Agency in South Carolina, was publicly encouraged to enter the race by Trump and McMaster.  Also a Clarendon County farmer, Jeremy Cannon launched his campaign for the position a few weeks ago.  The latest entry to the race is Danny Ford II, son of Clemson’s first national championship football coach.  The official filing period will open March 16 and the primary election will be held Tuesday, June 9.

South Carolina Underground Facility Damage Prevention Act

Effective through May 21, 2026

The South Carolina STATE LAW requires that excavators give a 3 full working days notice (not including the day of the call) excluding weekends and holidays, for the locators to get out to mark the area. After a notice has been processed, you will know when you are legally free to proceed with the digging work and which utilities in the area SC811 will be notifying for you.  View State Law

New Law Effective May 22, 2026

Updates to the South Carolina Underground Facility Damage Prevention Act will go into effect on May 22, 2026. These updates impact all stakeholders, including excavators, facility operators, locators, and other involved parties. Be sure to familiarize yourself with these changes ahead of the effective date to ensure continued compliance and safe digging practices.  View Updated State Law

2025 Law Updates: What You Need to Know

A summary of recent changes to South Carolina’s Damage Prevention Law and how they affect excavation regarding utility safety:

  • Positive Response System Updates: Operators must give timely status updates so excavators can confirm markings before work begins.
  • Large Project Tickets: Defines large projects and requires customized coordination agreements for safe, long-term excavation.
  • Updated/New Definitions: Adds and clarifies key terms like aerial-to-underground transitions, soft digging, and project initiator.
  • New excavation practices in the Tolerance Zone: Only approved soft digging is allowed in the tolerance zone, and clearance must be visually confirmed.
  • Emergency Tickets: Now limited to situations involving existing essential services like gas, water, or electricity.
  • Fines & Penalties: Updated penalties reinforce the need for compliance to protect utilities and public safety.

Who Needs to Know?  This law affects:

  • Excavators & Contractors
  • Locators
  • Utility Operators
  • Homeowners & DIYers

What Does This Mean For Me?