Weekly Legislative Update

 

North Carolina South Carolina

North Carolina

Betsy Bailey Victor Barbour 
By Betsy Bailey & Victor Barbour
January 7, 2026

Pipeline Approval

The North Carolina Department of Environmental Quality has approved water and air permits for new natural gas pipelines in central North Carolina. The Transco Southeast Supply Enhancement would extend gas transmission lines in Rockingham, Guilford, Forsyth and Davidson counties. The route runs through the Jordan Lake and Randleman Lake watersheds, according to the Sierra Club.

Chris Herndon, director of the Club's North Carolina chapter, said in a written statement that the fight isn’t over. He said the nonprofit would continue pushing back against the pipeline, which he called “unnecessary” and “dangerous” to the environment.

Duke Energy has described this pipeline expansion as “critical” to the company’s resource plan, specifically in building three new natural gas plants. The utility has about half the gas supply required to operate its current fleet at maximum capacity. Duke has secured the rights to 1,000,000 dekatherms per day from the Southeast Supply Enhancement — more than double its current supply.

Renovation Lawsuit

A building company has filed a lawsuit against Gaston County because it wasn't chosen to renovate the Gaston County health department. Swinerton Builders alleges that although it was the lowest bidder, Gaston County awarded the bid to Beam Construction Company after saying that Swinerton's bid didn't meet the requirements of the bidding documents. Swinerton alleges that the county violated public bidding statutes and its own bidding documents. The county is alleged to have violated bidding statutes by changing the bid opening date but not properly advertising that change, according to the lawsuit. The county also is alleged to have allowed other builders to submit requests for information after a mandatory Oct. 9 deadline, according to the lawsuit. As a result of these violations, Swinerton was deprived of a level playing field guaranteed by North Carolina's competitive bidding statutes, according to the lawsuit. The lawsuit asks that a judge prevent the execution of Gaston County's contract with Beam and stop any work that is to be completed on the project. Gaston County issued a statement on Thursday afternoon saying that it denies the allegations in the lawsuit.

Transportation Authority

The new authority that will oversee spending of billions of dollars in Mecklenburg County sales tax revenue elected former N.C. Department of Transportation official David Howard as its chair at its inaugural meeting last week.

The Metropolitan Public Transportation Authority was created as part of the 1% sales tax added in the second’s second-most populous county, after voters in November approved the increase by 52% to 48%. The money, which is estimated to total $19 billion over 30 years, is intended to fund a new commuter rail line from uptown Charlotte through north Mecklenburg, along with various road, rail and bus improvements. The authority is a 27-member board appointed by the city council, mayor, county commission, local town boards, state lawmakers, Charlotte Regional Business Alliance and Foundation for the Carolinas. Gov. Josh Stein also had one selection.

The group will oversee the Charlotte Area Transit Authority, which has been a department of the city of Charlotte and overseen by the Metropolitan Transit Commission. It’s expected to take months for the transition of CATS employees, contracts, vehicles and facilities to shift to the new authority. Veteran city executive Brent Cagle is interim CEO of CATS, which has a 2025 budget of $283 million.

Howard is a former Charlotte city councilor who has been chief deputy secretary of the N.C. DOT and was associate administrator of the Federal Highway Administration. He now has his own consulting firm. “The work ahead will be serious, demanding, and consequential,” Howard said in a LinkedIn post. “The impact of this organization — and this transit investment — will be generational. How we start matters. How we lead matters. And who we serve must always remain at the center of every decision.”

The board also elected Frank Emory as vice chair. He is the chief legal officer of Novant Health, the state’s second-largest hospital system. The board treasurer is Ned Curran, a longtime Charlotte real estate developer, who was selected for the board by N.C. Senate Pro Tem Phil Berger. The secretary is Christy Long, a former Wells Fargo executive.

Board members with business ties include former Alliance board chair David Longo; Charles Bowman, a former N.C. market president for Bank of America; architect-contractor Lucia Zapata-Griffith; real estate developers Peter Pappas, Todd Collins and Wyatt Dixon; and Bob Menzel, the former owner of a Mooresville-based packaging company.

Mecklenburg County officials chose County Manager Michael Bryant as one of its six picks.

The authority also includes representatives of progressive groups including Cameron Pruette, who is executive director of the Freedom Center for Social Justice, and Corine Mack, president of the Charlotte-Mecklenburg NAACP chapter. 

South Carolina

Leslie Clark  Whitney Williams
By Leslie B. Clark & Whitney Williams
January 7, 2026

Donate to CAGC Industry PACs

Special Election Results

Three special elections for the General Assembly were held over the holidays, with the republican candidates sweeping all three seats.  As predicted, a December 23 election date resulted in very low turnout – only 7.42% of the voting population turned out for the contests.  Former, and now Senator-Elect, Lee Bright (R-Spartanburg) fended off a write-in challenge with 67.37% of the vote to recapture his old seat in Spartanburg and Greenville Counties. 

Newcomer Dianne Mitchell (R-Greenville) also fended off a write-in challenge with 70.34% to win House District 21 in Greenville County.  In Lexington County, the only contest of the three to feature a republican and a democrat on the ticket, newcomer John Lastinger (R-Lexington) defeated his challenger with 62.32% of the vote. 

Bright, Mitchell, and Lastinger will be sworn into office and will be seated with the General Assembly and receive their committee assignments when they return to Columbia next week.

2026 Legislative Session

The 2nd regular session of the 126th South Carolina General Assembly will convene on Tuesday, January 13, 2026 at noon.  With the exception of the newly elected legislators (see above), committee assignments will carry over from the 2025 session and bills will resume the legislative process.  In addition to the bills from last year, legislators pre-filed 258 bills in the House and 69 bills in the Senate during the month of December.  The pre-filed legislation will officially be assigned to committees in January. 

SCDOT – Proposed Regulations

The South Carolina Department of Transportation is considering repealing or amending existing regulations which govern, to the extent authorized by SC Code, Title 57, regulations concerning driveways, erosion control, tandem trailer combinations, disadvantaged business enterprise program, guidelines for selection of set aside projects, and bus shelters permitting.

SCDOT proposes repealing or amending several outdated or superseded regulations in Chapter 63 of the Code of Regulations.  Regulations on private driveway entrances and erosion control are proposed for repeal because their requirements are already covered in state law, engineering manuals, or newer stormwater and sediment control regulations. SCDOT also proposes amending the Tandem Trailer Combination and Other Larger Vehicle Access Control Act regulations by retaining only one provision (Regulation 63-390) and removing the rest, as they are no longer used by enforcement agencies.

Additionally, SCDOT proposes repealing the Disadvantaged Business Enterprises (DBE) Program regulations and bus shelter regulations. The DBE rules are being repealed to align with updated federal requirements under 49 CFR Part 26, which remove minority- and sex-based certification, while still maintaining a federally compliant DBE program. The bus shelter regulations are proposed for repeal as they are no longer necessary for regulating advertising-related shelter placement on state rights-of-way.

The proposed regulations will not require legislative review as they are promulgated to comply with federal law and/or other statutory and regulatory requirements cover the repealed language. 

New Year, New Laws

The beginning of a new year rings in the effective date of several laws that were approved by the General Assembly during the 2025 legislative session.  Here are the newest laws of 2026:

  • Liquor Liability Reform (January 1, 2026) – Venues that serve alcohol are still required to obtain a $1 million liability policy, but the law was amended to allow those locations to lower the minimum to make costs more affordable by participating in risk mitigation steps outlined in the code.

  • Personal Privacy Protection Act (January 1, 2026) – The new law will restrict the public contact and other personal information of law enforcement and judges. Officers and judges will be able to request that information relating to their home address, cell phone number, and property tax map number be removed from websites operated by state or local government agencies. Public officials requesting to remove this information must provide a written request to the agency in question with a notarized affidavit proving they are a current or former law enforcement officer of judge.

  • SC Hands-Free Act (February 28, 2026) – The law bans drivers from operating a cellphone with any part of their body. Drivers can still use smartwatches and earpieces to make calls or send texts through voice-to-text features, and they can also still use Apple CarPlay or similar features to use navigation and control music. Law enforcement may only issue warnings for the first 180 days since passage of the bill, with tickets being issued on February 28, 2026.

  • Failure to Stop a Motor Vehicle (May 12, 2026) – The law provides that when a motor vehicle driver fails to stop after being signaled by a law enforcement vehicle and is found to have led law enforcement upon a high-speed pursuit, the offender is guilty of a felony. Upon conviction, the offender must be imprisoned not more than 10 years and have his driver’s license suspended for 1 year. The bill is effective one year after approval of the Governor, May 12, 2026.

  • Underground Facility Damage Prevention (May 22, 2026) – This law makes changes to the Underground Facility Damage Prevention Act in Chapter 36, Title 58 regarding the process for notifying utilities of excavation projects the responsibilities of utilities operators. The law makes changes to the Operators Association and the penalties for utilities operators that do not comply with the requirements. It also adds additional responsibilities to the Attorney General’s Office regarding complaints arising from violations of the new provisions and increases civil penalties for violations. The bill is effective one year after approval of the Governor, May 22, 2026.

  • Educator Assistance Act (July 1, 2026) – Part of this law went into effect in July of 2025, but another part will not be effective until July 2026. School boards have to notify teachers, in writing through the superintendent, before May 1 if they will be employed in the district for the upcoming school year. The notification must include a projected salary schedule for the next school year. Teachers must also be notified no later than 14 days before students return to school what their potential teaching assignment is and once teachers are assigned a school, they cannot be moved unless there are extenuating circumstances.

South Carolina’s Employment Situation:  September 2025

The SC Department of Employment and Workforce recently released an in-depth look at the state’s employment situation, as of September 2025. 

The report indicated South Carolina’s labor market showed continued resilience with gains in overall employment and labor force participation. The number of employed residents rose to 2,468,922, an increase from both August 2025 and September 2024. The state’s labor force expanded to 2,582,851, reflecting more people either working or actively seeking work, and the labor force participation rate increased to 57.7%, signaling stronger engagement in the job market.

Despite these positive trends, the seasonally adjusted unemployment rate edged up slightly to 4.4%, in line with the national rate, due to a modest rise in the number of unemployed individuals.

Industry data showed that non-farm payroll employment was slightly down month-to-month, though year-over-year increases persisted across several sectors, indicating ongoing employment growth even amid short-term fluctuations.

Overall, South Carolina’s employment situation in September 2025 reflected a growing workforce and strong year-over-year employment gains, while unemployment remained stable within national norms.