Weekly Legislative Update

 

North Carolina South Carolina

North Carolina

Betsy Bailey Victor Barbour 
By Betsy Bailey & Victor Barbour
December 3, 2025

DMV Service

Since he took office in May, Division of Motor Vehicles commissioner Paul Tine has said he wants his agency to be known for its good customer service, rather than as a source of dread and frustration. On Tuesday, he released a plan for how to get there.

The 35-page strategic plan outlines dozens of steps the DMV expects to take by the end of 2030 to better serve customers and reduce the long lines and wait times that have become common at its driver’s license offices. They range from straightforward moves such as opening new offices and expanding office hours to the more technical and long-term, such as offering digital licenses and ID cards and establishing an “NCDMV Innovation Lab” to develop and test “new customer service improvements.”

Tine says the plan will not only guide what DMV does over the next five years, but also show the public and others outside the agency what to expect.

“We want them to understand where we’re headed and that there’s a lot of great stuff coming that will benefit our customers,” he said. “And we want to hold ourselves accountable by being very transparent.”

The DMV will focus on seven priorities:

  • Build a streamlined digital experience. Key goal: Increase the portion of DMV transactions performed online to 50%, up from 31% today.
  • Improve physical offices, staffing and service mix. Key goal: Reduce average wait times at driver’s license offices to 15 minutes, down from 110 minutes now.
  • Simplify the policies and rules that guide the department’s work. Key goal: All state laws and codes that apply to the DMV will be reviewed and recommendations made for improvements.
  • Streamline processes and automate transactions. Key goal: 75% of callers to the DMV’s call center will have their issue resolved on the first call.
  • Modernize and secure technology systems. Key goal: Replace five cumbersome, 30-year-old computer systems with one that brings all of a person’s driver’s license, vehicle and insurance records in one place
  • Empower our entire team to be more customer-focused. Key goal: Achieve a customer satisfaction score of 85%.
  • Create a great place to work: Key goal: Achieve an employee satisfaction score of 75% and reduce turnover by achieving a 95% voluntary retention rate.

That last goal will directly benefit customers, Tine says, by ensuring the person behind the counter or on the phone feels supported and not overworked. “The only way to be a great customer service organization is to have employees who are happy to be there and want to be there,” he said.

In addition to customer and employee surveys, the DMV will soon introduce a public dashboard with data showing the agency’s performance in key areas such as wait times and how long each transaction takes at the counter. The new strategic plan follows an earlier five-year plan the DMV adopted in 2019.

I-77 Lanes

The North Carolina Department of Transportation is planning to widen I-77 from uptown to the South Carolina line. This is the proposed new interchange of I-77 and the Belk Freeway.

The North Carolina Department of Transportation plans to spend $3.2 billion expanding Interstate 77 from uptown to the South Carolina line with two express toll lanes in each direction. But new renderings of the highway through uptown have alarmed residents, who worry the wider highway will decimate their neighborhoods. At a recent meeting of the Charlotte Regional Transportation Planning Organization, some residents asked for help, like Al Austin, a former City Council member who is the president of the Third Ward Neighborhood Association. He said the new plan echoes decades past, when mainly Black communities were split to make way for highways.

“Now after decades and decades, instead of repairing and reconnecting these communities after past harm, we’re asked to accept even more construction, more destruction, more concrete,” Austin said. The widening project will require a complete rebuild of the highway. Most bridges over I-77 will need to be torn down and rebuilt. Some interchanges will also be redesigned, such as the interchange with the Belk Freeway south of uptown.

In an interview with WFAE earlier in the week, DOT engineer Brett Canipe said he wants to work with residents. “We simply don’t want to impact people,” he said. “I mean that’s just part of our job, to minimize impacts.” The DOT plans to hire a private developer to build and manage the toll lanes. That’s what the state did for express toll lanes on I-77 in north Mecklenburg, where the Spanish firm Cintra has a 50-year contract to operate them. 

Bridge Funding

The North Carolina Department of Transportation returned to the Wilmington Urban Area Metropolitan Planning Organization this week to present a comparative analysis of tolling options for the planned replacement of the Cape Fear Memorial Bridge. While both have upsides and downfalls, it will ultimately be up to the WMPO to decide between a public-private partnership or facility run by the state if it chooses to implement a toll at all. The NCDOT is required to present a comparative analysis when a structure could potentially become tolled, though officials on Wednesday were clear the WMPO is still considering all alternative means of funding. “I do not want to toll this bridge and we have got to do everything that we can to find other methods, to find money to pay for it,” New Hanover County Commissioner Dane Scalise said. “I don’t know what will ultimately happen, but I’m not giving up.” With repairing the Cape Fear Memorial Bridge becoming financially impractical, NCDOT and the WMPO have been searching for a way to fund its replacement for years. The NCDOT has dedicated $85 million to the project and secured a $242 million federal grant, though this will only put a small dent in the estimated $1.1 billion price tag for a 135-foot bridge replacement.

State auditor urges permanent disaster recovery partnership

A key recommendation from the state auditor’s investigation of the North Carolina Office of Recovery and Resiliency is the formation of a partnership between the Council of State, the General Assembly and the Department of Public Safety.

State leaders would work with legislators as part of a Sustainable Outcomes for Long-Term Impact and Disaster Recovery (SOLID) Partnership.

North Carolina continues to experience billion-dollar, catastrophic storms and worsening ‘1,000-year events.’ NCORR is the beleaguered state agency responsible for coordinating recovery efforts following hurricanes Florence and Matthew.

The phaseout of NCORR coincided with the startup of the Governor’s Recovery Office for Western North Carolina in the aftermath of Hurricane Helene last fall that caused more than $60 billion in damage. The knee-jerk response of starting a new agency in the aftermath of a disaster can lead to errors and a lack of oversight, state auditor Dave Boliek told the Joint Legislative Commission Governmental Operations subcommittee on hurricane response and recovery Thursday.

“We just set up an ad hoc program every time there’s a disaster,” Boliek said. “If we had another disaster, I don’t think anybody in this room really wants a third organization set up on an ad hoc basis.”

The auditor’s office planned to conduct a complete audit of the NCORR agency beginning in early spring of this year. That wasn’t possible due to the inability of NCORR to produce relevant and reliable data regarding financial statements and positions. In a “tactical” decision, according to Boliek, the audit focused only on the Homeowner’s Recovery Program, the flagship homebuilding initiative of the agency.

“The folks that I brought in and took a look at it said it was the worst government program they had ever seen,” Boliek said, adding it would take up to a $2 million allocation from the Legislature to provide a more-in depth investigative audit.

A unified oversight body would bring every relevant stakeholder to the table and form a more permanent structure for overseeing hurricane recovery, Boliek said.

Sen. Julie Mayfield, D-Buncombe, raised the issue of who would be responsible under this proposed entity. She said it potentially could be too easy for state leaders to “pass the buck” if the responsibility for hurricane relief is diffused across various state agencies and leaders.

“We cannot ignore the political world in which we live,” she said. “In having it housed anywhere other than the governor's office, regardless of party, the politics would come into play and make it difficult and challenging.”

Boliek agreed it would be difficult to avoid the political realities in any proposed deliberative body, but he believes that individuals who serve in state offices do so for the right reasons.

While having an already established program could work, Mayfield said, she thought the General Assembly’s quick influx of state dollars for Helene recovery, as opposed to the wait for federal dollars for Matthew and Florence, shows the state's different approach to storm response.

$709 million in federal Community Development Block Grant funds was granted to NCORR’s Homeowner Recovery Program between July 2019 and August 2020. Close to $300 million came from the state, with the first appropriation from the General Assembly of $30 million taking place in October of 2024.

The General Assembly appropriated $273 million in recovery funding weeks after Hurricane Helene’s impact. It has now allocated roughly $2 billion.

“We know it takes time to stand up these programs,” Mayfield said. “The federal dollars are slow. When the next disaster happens again, it is incumbent upon us to put money into particularly the housing program as quickly as we can to get it stood up. We can’t wait on the federal dollars.”

South Carolina

Leslie Clark  Whitney Williams
By Leslie B. Clark & Whitney Williams
December 3, 2025

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SC Department of Employment and Workforce

The South Carolina Restructuring Act of 2014 authorized the General Assembly to conduct seven-year oversights of state agencies and to report their findings to their respective chambers.  This year, the SC Department of Employment and Workforce is up for their oversight hearing, and the subcommittee meetings are underway. 

Chaired by Representative Travis Moore (R-Spartanburg), the subcommittee recently heard from Paul Famolari, Assistant Executive Director for Unemployment Insurance, Department of Employment and Workforce.  Famolari testified that the South Carolina Unemployment Insurance (UI) program provides temporary financial support to individuals who are unemployed through no fault of their own and meet statutory eligibility requirements. Claimants must have sufficient recent work history, actively seek work, certify weekly, and accept suitable job offers. Roughly 40% of applicants voluntarily quit their jobs, and about 10% appeal initial determinations.

South Carolina’s UI program consistently outperforms national benchmarks:

  • 94.5% of new employer status determinations completed within required timelines (national: 88%).
  • 91.8% first payment timeliness (national: 74.1%).
  • 87.3% separation determination quality (national: 68.9%).
  • 94.4% of appeals completed within 30 days (national: 25.7%).
  • Higher Authority appeals resolved in 22 days on average (national: 149.5 days).

The UI call center handles 7,500 calls weekly with approximately 90% resolved on first contact and about a 5-minute wait time. Filing and weekly certifications are primarily online.

The Reemployment Services and Eligibility Assessment (RESEA) program identifies claimants most likely to exhaust benefits and provides targeted support:

  • 21,000 selected in 2024; nearly 20,000 participated.
  • 75% achieved employment within six months.
  • DEW delivered 41,000 RESEA appointments through SC Works centers, virtual teams, and new mobile pilots.

DEW maintains strong controls to protect the UI Trust Fund:

  • South Carolina’s fraud rate: 0.36% (national: 5.39%).
  • Approximately 20,000 wage audits conducted annually.
  • Employer misclassification remains concentrated in construction, janitorial, and home health.
  • Approximately 200 fictitious employers identified since 2021, involving over 1,000 fake workers and preventing more than $6M in fraud.
  • Claimant overpayment debt stands at $38.3M, trending downward due to improved collections.

Employer noncompliance is significant: 10,000 employers fail to submit quarterly wage reports each year. Employer debt totals approx. $280M, though most is estimated.

DEW administers multiple federally funded UI programs, including benefits for federal employees, ex-military personnel, and Disaster Unemployment Assistance (DUA). Following Hurricane Helene, DEW processed 675 DUA claims and disbursed $530,000.

DEW recommends several legislative changes for the department, including:

  • Modernizing Tax Class I to reduce burdens on small businesses.
  • Updating penalty structures and removing the outdated $1,000 cap.
  • Creating penalties for failing to report SOC codes.
  • Allowing broader electronic correspondence to reduce mailing costs.
  • Aligning misconduct penalties for illegal drug use and gross misconduct with other disqualification standards.
  • Eliminating duplicative military-relocation UI provisions.

South Carolina Announces Largest UI Tax Reduction in Over a Decade

Continuing with the Department of Employment and Workforce theme…

Governor Henry McMaster and SC Department of Employment and Workforce Executive Director William Floyd have announced that unemployment insurance (UI) tax rates for South Carolina employers will either decrease or remain the same in 2026—amounting to $40 million in overall savings compared to 2025.

This marks the 12th consecutive year of stable or reduced UI taxes, totaling $355 million in employer savings since the trend began. The 2026 reduction is the largest percentage decrease since 2011, supported by the state’s strong $1.8 billion UI Trust Fund.

Key highlights for 2026:

  • Businesses with no UI benefit charges from July 2022–June 2025 will pay the minimum 0.06% tax rate (tax class 1).
  • New businesses with less than 12 months of liability will pay 1.0%.
  • Tax classes 2–19 will see an average 34.7% rate reduction.
  • Actual rates will range from 0.06% to 5.46%, depending on employer experience.

DEW attributes the reductions to strong statewide economic performance, including record employment, GDP growth, and a steadily increasing Trust Fund. Employers can review their 2026 tax rates now through their SUITS accounts, with official notices arriving by mail this week.

Click here to view the 2026 tax rate chart. 

Be Pro Be Proud – 5 Years in the Books

Be Pro Be Proud South Carolina celebrates five years of service in 2025.  The non-profit recently released the latest newsletter, celebrating the accomplishments and history of the program.   

From the newsletter: 

“Starting a new non-profit venture is an uphill battle in the best of times, but launching in September of 2020 -- during the confusion of what would turn out to be several years of the Covid era -- added a layer of difficulty not anticipated by the motivated Be Pro Be Proud SC organizers.

Momentum, however, was on our side, and schools embraced the project. In the first two years of the Mobile Workshop's journey around South Carolina, over 19,000 visitors at nearly 250 events experienced the hands-on fun of simulators and VR tech that demonstrated life in the trades. Covid couldn't stop kids from dreaming of the future, and Be Pro accomplished its goal of showing students the benefits of taking control of their careers while still in high school.

Today, after five full years of being on the road, the Be Pro SC Mobile Workshop has driven over 70,000 miles of South Carolina roads, welcoming over 55,500 visitors at almost 600 events. As the word has spread, so has the list of tour stop requests from schools and community partners; there are currently more than four semesters' worth of purely new applicants. This means that, while Be Pro SC has visited hundreds of middle and high schools around the state, there are still many who have yet to see the Workshop even once.

Never fear -- everyone will get the chance to enjoy the Workshop! And because the scheduling is logistically based on location and not on "place on the list," submitting a request now could result in a visit just as soon as one placed a year ago -- it's all about distance and not about being first in line.”

To request a tour or learn more about Be Pro Be Proud, visit their website at https://sc.beprobeproud.org/. 

House Regulatory Review Committee

The House LCI Subcommittee convened to gather input from regulated industries on which regulations are essential, which are burdensome, and where reforms or better enforcement may be needed. Chaired by Representative Chris Wooten (R-Lexington), the focus of the hearing was on the building industry and the cosmetologists and barbers. 

Focusing on the building industry, there was widespread concern about delays due to permitting timelines, slow inspections, and inconsistent enforcement, which significantly increased costs and impeded projects.  Staffing shortages in regulatory agencies are a major barrier and the enforcement inconsistency and unclear requirements drive frustration. 

Potential policy recommendations by the subcommittee included establishing consistent review timelines, or shot clocks, for permit-granting agencies; increasing staffing and resources; clarifying statutory authority of agencies issuing informal advisories that delay projects; and modernizing zoning and street-design policies to support redevelopment.

The subcommittee will continue to meet when the legislature returns to session in January 2026.

Tort Reform Ad Hoc Committee

The House Judiciary Ad Hoc Committee on Tort Reform held another meeting in Columbia prior to the Thanksgiving holidays, this time focusing on the role and future of what’s called the "Tyger River Doctrine."  The 1933 South Carolina Supreme Court doctrine imposes a duty on insurers to handle and settle claims in good faith, not just pay valid claims.

Proponents argued that this doctrine remains the only effective mechanism to hold insurers accountable and ensure timely, fair settlements; especially critical when policyholders face catastrophic losses or even “small everyday claims” that could threaten financial stability.

A defense lawyer for insurance companies noted he still supports Tyger River but suggested a 30-day response window is reasonable and could “level the playing field.”  Others noted that some demand-letters from claimants/attorneys are overly aggressive, “gotcha”-style demands with unreasonable time frames and little information that make adherence difficult. A few urged “guardrails” around time-limits: if deadlines are imposed, insurer responses should include accurate documentation; a “safe harbor” for good-faith efforts; clarity on what constitutes a proper settlement offer; and flexibility for payment timing to avoid unfair forfeiture. Some contended that imposing rigid deadlines might not reduce insurance premiums: insurers could simply change practices and still make profit.

The Ad Hoc Committee is not expected to meet again until the legislature returns to session in January 2026.