Weekly Legislative Update

 

North Carolina South Carolina

North Carolina

Betsy Bailey Victor Barbour 
By Betsy Bailey & Victor Barbour
October 22, 2025

Credit Rating 

Moody’s, one of the Big 3 in credit lending, on Thursday reaffirmed “North Carolina is one of the strongest states according to nearly every measure.” It said the economic growth rate “continues to outperform nearly all other states in the region.” First-term Republican state Treasurer Brad Briner said the state’s upcoming 2025 and 2026 general obligation bonds also have been assigned a AAA rating, and the state’s upcoming 2025 refunding limited obligation bonds an Aa1. “Our state has been fiscally prudent in how it spends and saves money,” Treasurer Briner said. “This, once again, highlights what North Carolinians already know – our leaders have put us on a strong financial path and my team at the Department of State Treasurer has made sure to be strong stewards of oversight and management of those funds.” North Carolina is one of only 14 states with a AAA rating from all three major national bond rating agencies – Moody’s Investors Service, Fitch Ratings, and S&P Global Ratings. Others are Delaware, Florida, Georgia, Indiana, Iowa, Maryland, Minnesota, Missouri, Nebraska, Ohio, South Dakota, Tennessee, Utah, Virginia and Texas.  

Appointment Powers 

Decade-long political quarrels over legislative and executive powers in North Carolina advanced Wednesday as a state appeals court permitted the Republican-controlled General Assembly to chip away at the Democratic governor’s appointment authority for several key commissions. The judges also said lawmakers went too far remaking other boards. 

A state Court of Appeals panel upheld the composition of four of the seven boards approved by lawmakers in 2023 but later challenged by then-Democratic Gov. Roy Cooper. The four address policies for the environment, fishing and hunting and residential building codes in the ninth-largest state. But the judges struck down the composition of three that approve transportation policy, public health rules and select economic incentive recipients. 

“The majority’s well-reasoned opinion recognizes the breadth and limitations of the General Assembly’s power to alter the Executive Branch’s own powers,” Court of Appeals Judge Tom Murry wrote in a separate opinion agreeing with the conclusions of the two other judges who also heard the case. 

Wednesday’s decision marks the latest ruling from several lawsuits filed since 2016 by Cooper and successor Democratic Gov. Josh Stein. They’ve opposed laws designed to erode gubernatorial powers in a state where Democrats have been governor in 28 of the last 32 years and Republicans have controlled the legislature since 2011. 

Results on litigation ranging from state elections board control to Cabinet appointee confirmations and choosing the Highway Patrol commander have been mixed. Lawmakers even tussled in the 2010s over appointments with then-GOP Gov. Pat McCrory. 

The ruling provided a slightly more favorable outcome for Stein — now the lawsuit plaintiff — compared to the early 2024 rulings of three trial judges who upheld the composition of five of the seven boards challenged. The Court of Appeals panel disagreed with the lower judges, however, by also striking down the makeup of the Commission for Public Health. 

The North Carolina Constitution says the governor “shall take care that the laws be faithfully executed.” The governors’ lawyers have argued that means he needs enough supervision of executive branch commissions so that he can control them — which they say means appointing a majority of members. 

Republican legislative leaders counter North Carolina has other elected executive branch officials for whom the General Assembly can approve duties — and that’s what they’ve done by giving certain Council of State members appointment powers while the executive branch retains board control. The all-Republican Court of Appeals panel — Murry and Court of Appeals Judges Jeff Carpenter and John Tyson — agreed with the GOP leaders here. 

For three of the four boards whose compositions were upheld, the insurance commissioner or agriculture commissioner were granted appointment duties as the governor lost some. In each — the Environmental Management Commission, Wildlife Resources Commission and Coastal Resources Commission — “the executive branch holds majority-appointment power,” Carpenter wrote in the majority opinion. The appeals judges also upheld the makeup of a newly created Residential Code Council in which the governor would still make a majority of appointments. 

Meanwhile, the appeals judges agreed the lower court was correct striking down laws giving the General Assembly or its leaders the ability to appoint a majority of Board of Transportation and Economic Investment Committee members. The governor has previously chosen majorities in both. The proposed composition of the Commission for Public Health — also thrown out — would give the governor five of 13 appointments. 

Spokespersons for Stein and top GOP legislators didn’t immediately respond to emails Wednesday seeking comment. Registered Republicans hold five of the seven state Supreme Court seats. 

Earlier this year, state appeals courts permitted for now a state law to take effect that shifted the power to appoint State Board of Elections members from the governor to the state auditor, who is a Republican. And while trial judges struck down in June as unconstitutional a law that placed some limits on whom the governor could choose to fill appeals court vacancies, the panel let stand provisions taking away Stein appointments from two commissions.  

Helene Buyouts 

No applications for homeowner buyouts and disaster mitigation funding through the Federal Emergency Management Agency have been approved since Tropical Storm Helene hit Western North Carolina a year ago, Gov. Josh Stein said Oct. 13. 

The Hazard Mitigation Grant Program is a FEMA-funded program that allows property owners to apply for federal buyouts after disasters. It is designed to reduce or eliminate future damages by paying for structural elevations or the buyout of damaged properties. Applications are processed at the county level and then sent to the state and FEMA for approval, where the federal government provides 75% of the funding for applications and the state provides a 25% funding match. 

By Oct. 13, the state had submitted over 300 homeowner applications to FEMA for approval, Stein said. In Buncombe County, at least 350 residents have submitted applications for the program, according to the county's website. Yet, no applications submitted to FEMA have been approved. 

"It's absolutely unacceptable. My team and I are asking FEMA, 'What's the hold up?'" Stein said during the Oct. 13 Governor's Advisory Committee on WNC Recovery meeting. 

Since 2005, FEMA has obligated nearly $327 million to property owners in North Carolina through the Hazard Mitigation Grant Program, according to the committee. State recovery staff are expecting the "lock-in" for payouts from Helene — meaning the maximum amount contributed to lifting and buying out properties — to be capped at around $1.5 billion, the largest North Carolina payout in the state's history. But the lack of approval for the properties has left some "in limbo," said Matt Calabria, director of the Governor's Recover Office for Western North Carolina. 

"(They) can't move on with their lives until they get this funding so that they can re-establish themselves in a new home," Calabria said, calling the lack of approvals for the program a "national trend." 

"We're hoping that these various projects will start to be approved in the near term," Calabria said. FEMA did not respond to the Citizen Times request for comment. 

South Carolina

Leslie Clark  Whitney Williams
By Leslie B. Clark & Whitney Williams
October 22, 2025

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Tort Reform

The House Judiciary Committee met recently to discuss aspects of the pending tort reform bill, S.244.   While this particular meeting was focused solely on medical malpractice, Chairman Weston Newton (R-Beaufort) informed the audience he intends to hold several meetings throughout the fall on various aspects including construction defects/statute of repose and the Tyger River Doctrine.

The South Carolina Hospital Association testified to their $37 billion economic impact in South Carolina and relayed their concerns about federal cuts that may reduce funds to hospitals.  SCHA’s three main requests are that the legislature clarify the definition of “occurrence;” consider raising damage caps; and remove “gross negligence” as an exception from caps.  They emphasized the need for clarity and predictability in liability laws to support hospital operations. 

In response, the South Carolina Association for Justice highlighted the burden and cost of litigating medical malpractice fees, from the expert fees, filings/motions, to depositions, etc. SCAJ argued that raising the burden of proof or removing exceptions would actually harm plaintiffs as there are no guarantees or evidence that tort reform would lower insurance premiums.  They also argued that “gross negligence” findings are extremely rare but tend to get the biggest headlines.

The committee did not take any action at the meeting.  The next meeting will be held on Tuesday, October 28.

State Fiscal Accountability Authority

The State Fiscal Accountability Authority (SFAA) met for the regular October meeting last week, approving multiple requests for permanent improvement projects across the state.  The five members of the Authority include Governor Henry McMaster, Treasurer Curtis Loftis, Comptroller General Brian Gaines, Senate Finance Chairman Harvey Peeler, and House Ways and Means Chairman Bruce Bannister. 

Actions taken by SFAA include approving the construction budget for The Citadel to construct a new engineering building, the construction budgets for Francis Marion University to build a new Medical Education Facility and a new Environmental Sciences Building, and graduate school renovations and site upgrades for Lander University.  The members also approved the acquisition of 2.78 acres from Dominion Energy for Palmetto Railways in Colleton County and multiple easements for electric transmission lines. 

For an in-depth look at each of the projects, please click here.  SFAA will meet again in Columbia on December 9.

Latest Workforce Trends

DEW recently published its latest issue of Trends, their publication with the latest labor market information and a new featured article each month. This month’s feature is a look at the upcoming 2025 Economic Analysis Report. This issue also includes information from the August Employment Situation and some long-term tables on unemployment rates. These tables are also now available for download in XSLX format for ease of use in Microsoft Excel.

As of October 14, the S.C. Unemployment Insurance Trust Fund had a total available balance of $ 1.800 billion. And as of October 17, there were 73,380 job openings posted in SC Works Online Services.

DBE and Reporting Information – SCDOT

The United States Department of Transportation issued an Interim Final Rule (IFR) that amends the Federal Regulations that govern the Disadvantaged Business Enterprise and Airport Concession Disadvantaged Business Enterprise (DBE and ACDBE) Programs. The IFR was published October 3, 2025.

In compliance with the IFR, the certification process for new DBE’s and the certifications of all existing DBE firms have been suspended pending the implementation of the new DBE certification guidelines consistent with the IFR.  Please see the guidance issued by the department here.