SCRLA Statement on FY2026-2027 State Budget Compromise
8 hours ago
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Posted by: Hannah Hopewell
COLUMBIA, S.C. - The South Carolina Restaurant and Lodging Association (SCRLA) issued the following statement regarding the final budget compromise reached by the South Carolina General Assembly’s conference committee for Fiscal Year 2026-2027: While state lawmakers made progress toward resolving South Carolina’s roughly $15 billion spending plan, the final budget agreement removed a Senate proviso that would have temporarily suspended the state’s mandatory $1 million liquor liability insurance requirement through June 30, 2027. The temporary suspension, initially championed by Senate Majority Leader Shane Massey during floor debate, was designed to provide immediate, short-term relief to local restaurants, venues, and bars facing unsustainable, skyrocketing insurance premiums. The removal of the proviso leaves existing liquor liability statutes unchanged as the General Assembly prepares to finalize the overall budget bill. Mark Newman, President and CEO of the South Carolina Restaurant and Lodging Association, released the following statement:
"While we're disappointed that the budget proviso wasn't included in the final conference committee agreement, our focus remains on achieving a permanent solution for South Carolina's hospitality industry. A one-year suspension would have provided some needed relief for small businesses, but it wouldn't have solved the underlying problem. Many operators would still face an unstable insurance market and the very real possibility of closing their doors."
"Our members have done what the law asked them to do by implementing the risk-management measures required under Act 42. Unfortunately, that has not resulted in meaningful new competition in the insurance marketplace. Too many carriers have left South Carolina, too few have entered, and premiums remain unaffordable for many hospitality businesses."
"We're grateful to Senator Massey and the leaders in both chambers who recognize the seriousness of this issue. As lawmakers prepare for the next legislative session, we look forward to working with them on permanent reforms that restore competition to the insurance market and give restaurants and bars a fair opportunity to succeed."
Key Action Steps & Guidance for SCRLA Members With the removal of the proviso, current state regulations governing liquor liability insurance remain active and fully in effect. SCRLA strongly advises all food and beverage operators to maintain compliance with existing state law and continue leveraging available risk mitigation tools: Maximize Act 42 Rate Discounts: Ensure staff complete certified alcohol server training programs, maintain strict digital ID verification logs, and evaluate operational adjustments (such as early closing times or food-to-alcohol sales ratios) that qualify your business for reduced premium tiers.
Engage Local Lawmakers: Share real-world premium increases, policy non-renewals, and operational impacts directly with your local Senate and House representatives to illustrate the urgent need for permanent tort reform when the General Assembly reconvenes.
SCRLA will continue standing alongside our members, local business owners, and community partners across the state to push for meaningful legal reform, clear standards, and a fair insurance market in South Carolina. About the South Carolina Restaurant and Lodging Association The South Carolina Restaurant and Lodging Association (SCRLA) is a statewide trade association representing more than 2,400 member companies across the food service, lodging, and tourism industries. As the unified voice of South Carolina's $32.4 billion hospitality industry, SCRLA works to promote, protect, and educate the businesses that drive the state’s economy and employ hundreds of thousands of South Carolinians. For more information, visit www.scrla.org.
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