South CarolinaS 0831126th General Assembly (2025-2026)SenateWALLET

AN ACT TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 57-1-410, RELATING TO THE SECRETARY OF THE DEPARTMENT OF TRANSPORTATION, SO AS TO PROVIDE THAT THE GOVERNOR SHALL APPOINT THE SECRETARY INSTEAD OF THE COMMISSION OF THE DEPARTMENT OF TRANSPORTATION; TO DEVOLVE THE DUTIES OF THE COMMISSION OF THE DEPARTMENT OF TRANSPORTATION UPON THE SECRETARY OF THE DEPARTMENT OF TRANSPORTATION; BY AMENDING SECTION 1-30-10, RELATING TO THE DEPARTMENTS OF STATE GOVERNMENT AND THEIR GOVERNING BODIES, SO AS TO DELETE THE PROVISION THAT PROVIDES THAT PART OF THE GOVERNING BODY OF THE DEPARTMENT OF TRANSPORTATION IS A SEVEN-MEMBER COMMISSION; BY AMENDING SECTION 1-30-105, RELATING TO THE ESTABLISHMENT OF THE DEPARTMENT OF TRANSPORTATION, SO AS TO PROVIDE THAT THE GOVERNING AUTHORITY OF THE DEPARTMENT OF TRANSPORTATION IS THE SECRETARY OF TRANSPORTATION; BY AMENDING SECTIONS 11-43-140 AND 11-43-150, BOTH RELATING TO THE TRANSPORTATION INFRASTRUCTURE BANK, SO AS TO REMOVE THE CHAIRMAN OF THE DEPARTMENT OF TRANSPORTATION COMMISSION AS A DIRECTOR, TO PROVIDE THAT THE SECRETARY OF TRANSPORTATION IS A MEMBER OF THE BOARD, AND TO MAKE A CONFORMING CHANGE; BY AMENDING SECTIONS 57-1-10, 57-1-40, 57-1-430, 57-1-500, 57-3-50, 57-1-90, 57-3-210, 57-3-700, 57-5-10, 57-5-50, 57-5-90, 57-5-310, 57-5-340, 57-13-10, 57-13-20, 57-13-40, 57-13-50, 57-25-120, 57-25-140, 57-25-150, 57-25-170, 57-25-200, 57-25-210, AND 57-1-370, ALL RELATING TO THE DEPARTMENT OF TRANSPORTATION, AND ITS DUTIES AND RESPONSIBILITIES, SO AS TO MAKE CONFORMING CHANGES REGARDING THE COMMISSION; BY REPEALING SECTIONS 57-1-310, 57-1-320, 57-1-325, 57-1-330, 57-1-340, 57-1-350, AND SECTIONS 6, 7, AND 8 OF ACT 114 OF 2007 ALL RELATING TO THE CREATION AND FUNCTIONS OF THE DEPARTMENT OF TRANSPORTATION AND ITS COMMISSION; BY AMENDING SECTION 57-1-360, RELATING TO AUDITS OF THE DEPARTMENT OF TRANSPORTATION, SO AS TO SET FORTH CERTAIN REQUIREMENTS FOR THE CHIEF INTERNAL AUDITOR AND TO REQUIRE AN INDEPENDENT AUDIT OF THE DEPARTMENT EVERY FOUR YEARS; TO AMEND SECTION 57-3-20, RELATING TO THE DIVISIONS OF THE DEPARTMENT OF TRANSPORTATION, SO AS TO ESTABLISH CERTAIN DEPUTY SECRETARIES; BY ADDING SECTION 57-3-205 SO AS TO AUTHORIZE PUBLIC-PRIVATE PARTNERSHIPS BETWEEN THE DEPARTMENT OF TRANSPORTATION AND OTHER ENTITIES AND TO SET FORTH CERTAIN REQUIREMENTS; BY AMENDING SECTION 57-3-615, RELATING TO CERTAIN TOLLS AND USAGE CHARGES, SO AS TO SPECIFY THE CIRCUMSTANCES UNDER WHICH TOLLS AND USAGE CHARGES MAY BE IMPOSED; BY ADDING SECTION 57-3-790 SO AS TO WAIVE THE STATE'S IMMUNITY UNDER THE 11TH AMENDMENT OF THE UNITED STATES CONSTITUTION FOR CERTAIN ACTIONS OF THE DEPARTMENT OF TRANSPORTATION AND TO SPECIFY THE CIRCUMSTANCES FOR WAIVING IMMUNITY; BY ADDING SECTION 57-3-800 SO AS TO AUTHORIZE THE DEPARTMENT OF TRANSPORTATION TO ENTER INTO CERTAIN RECIPROCAL AGREEMENTS WITH OTHER JURISDICTIONS AND TO SPECIFY THE CIRCUMSTANCES UNDER WHICH AGREEMENTS ARE ENFORCEABLE; BY ADDING SECTION 57-5-1345 SO AS TO DIRECT THE DEPARTMENT OF TRANSPORTATION TO COORDINATE WITH THE DEPARTMENT OF MOTOR VEHICLES TO ADMINISTER AND COLLECT TOLLS AND USAGE CHARGES; BY AMENDING SECTIONS 57-5-820 AND 57-5-830, BOTH RELATING TO DEPARTMENT OF TRANSPORTATION PROJECTS AND MUNICIPALITIES, SO AS TO SET FORTH THE PROCESS BY WHICH A MUNICIPALITY MAY OBJECT TO THE PROJECT; BY AMENDING SECTIONS 57-5-1320, 57-5-1330, 57-5-1335, 57-5-1340, 57-5-1350, 57-5-1360, 57-5-1370, 57-5-1380, 57-5-1390, 57-5-1400, 57-5-1410, 57-5-1420, 57-5-1430, 57-5-1440, 57-5-1450, 57-5-1460, 57-5-1470, 57-5-1480, 57-5-1490, AND 57-5-1495, ALL RELATING TO TURNPIKE PROJECTS, SO AS TO CHANGE THE NAME OF SUCH PROJECTS TO CHOICE LANE FACILITIES, TO SPECIFY THE CIRCUMSTANCES UNDER WHICH CHOICE LANE FACILITIES MAY BE CONSTRUCTED, TO SPECIFY THE MANNER IN WHICH BONDS MAY BE ISSUED FOR SUCH CHOICE LANE FACILITIES PROJECTS, AND TO MAKE CONFORMING CHANGES; BY ADDING SECTION 57-5-1710 SO AS TO SET FORTH THE REQUIREMENTS FOR THE DEPARTMENT OF TRANSPORTATION TO SELECT AND AWARD A CONTRACT TO A PHASED DESIGN-BUILD CONTRACTOR; BY ADDING SECTION 57-5-1720 SO AS TO AUTHORIZE THE DEPARTMENT TO AWARD HIGHWAY CONSTRUCTION CONTRACTS USING A CONSTRUCTION MANAGER/GENERAL CONTRACTOR PROCEDURE; BY AMENDING SECTIONS 56-5-4210 AND 56-5-4220, BOTH RELATING TO CERTAIN ROAD RESTRICTIONS ON LOCAL ROADS, SO AS TO SPECIFY THE CIRCUMSTANCES UNDER WHICH RESTRICTIONS MAY BECOME EFFECTIVE; BY AMENDING SECTION 11-35-710, RELATING TO EXEMPTIONS FROM THE CONSOLIDATED PROCUREMENT CODE, SO AS TO SPECIFY THE EXEMPTION FOR THE DEPARTMENT OF TRANSPORTATION AND TO EXEMPT CERTAIN ROAD-RELATED ACQUISITIONS BY THE DEPARTMENT OF PUBLIC SAFETY; BY AMENDING SECTION 12-28-2740, RELATING TO "C" FUNDS, SO AS TO PROVIDE FOR THE POWERS AND RESPONSIBILITIES OF THE COUNTY TRANSPORTATION COMMITTEES AND PROCEDURES FOR USING "C" FUND REVENUES; BY AMENDING SECTION 12-28-2920, RELATING TO THE CONSTRUCTION OF CERTAIN ROADS, SO AS TO SPECIFY THE USE OF USAGE CHARGE REVENUES; BY ADDING SECTION 57-5-1800 SO AS TO ESTABLISH THE POTHOLE MITIGATION PROGRAM FOR THE PUBLIC REPORTING OF POTHOLE LOCATIONS; AND BY ADDING SECTION 57-1-375 SO AS TO SET FORTH A PROCESS BY WHICH COUNTY-FUNDED PROJECTS MAY REPRIORITIZE THE STATEWIDE TRANSPORTATION PLAN WITHIN THE COUNTY.

Sponsored By: Lawrence K. "Larry" Grooms (Republican)

Signed by Governor

Summary

SCDOT Modernization

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Bill Overview

Analyzed Economic Effects

18 provisions identified: 5 benefits, 0 costs, 13 mixed.

State pothole report-and-repair program

You can report potholes by phone, website, or a free mobile app. DOT must publish the app within one year. DOT must fix reported potholes within seven days, with permanent repairs unless emergencies or weather require a temporary patch. The state sets aside $15 million each year for full‑depth repairs of repeat potholes. This starts January 1, 2027.

Bonds for choice lanes get tax breaks

The state can sell bonds paid only from choice lane tolls, with maturities up to 40 years, and only if revenues are expected to cover payments. Beginning July 1, 2027, interest on these bonds is free from South Carolina taxes, and choice lane facilities are not subject to property taxes. Executors, guardians, and public fund managers may invest in these bonds.

New rules for toll and choice lanes

South Carolina limits new tolls. They are allowed only by the legislature, on choice lanes, or with JBRC/SFAA approval, and only on added lanes. Tolls in place on January 1, 2026 continue. Beginning July 1, 2027, SCDOT must find a project feasible before using usage charges; those funds go to the State Highway Fund and can pay project debt and upkeep under an agreement. Unpaid trips face notices, up to $10 for a first violation and up to $25 later, and up to a $50 civil penalty if a court finds liability; DMV may suspend registration for unpaid judgments, and photo or video is admissible. Not paying may be a misdemeanor (fine up to $200), and DOT may place a lien or take the vehicle. You get protections: privacy for electronic toll accounts, required delinquency notice, defenses for stolen cars and leases, and no owner liability if the driver is convicted. The state may enforce out‑of‑state tolls only through reciprocal deals that give due process and let you submit evidence remotely.

County road funds: new rules for bidders

State highway bonds may be issued for county “C” fund projects; the county committee applies to SCDOT and the State Treasurer for SFAA review. Beginning July 1, 2027, SCDOT withholds C funds from noncompliant counties and, after 24 months, counties forfeit 50% of the next year’s share. Counties that run their own C funds must use competitive sealed bids, advertise work, and publish bid summaries. Bids over $100,000 need certified bid bonds, and winning contractors must provide 100% performance and payment bonds.

How DOT picks and reprioritizes projects

SCDOT now picks and ranks projects in the statewide plan using set factors like safety, congestion, truck traffic, costs, and local plans. Beginning July 1, 2027, if a county fully funds a project that SCDOT certifies from its priority list within 90 days, the next project in that county moves up to take its place. This reprioritization does not apply to closed, load‑posted, or structurally deficient bridges.

Broader public-private deals for roads

DOT can partner with private and public groups to plan, build, finance, and operate roads, bridges, and transit. Contracts may use availability or milestone payments and set clear rules for how project money is used. DOT can seek grants, loans, bond approvals, and help form nonprofits to borrow for projects. DOT may use best value, two-step shortlisting, and confidential meetings to pick partners.

Faster buying for roads and emergencies

DOT can skip parts of the state procurement code for many road, bridge, and right‑of‑way needs and related technology. The Department of Public Safety can also buy emergency vehicle parts and repairs outside normal procurement rules. These changes can speed urgent purchases and affect how vendors compete.

New build methods to speed projects

DOT may use phased design-build or a construction manager/general contractor (CM/GC) for highway work. The team helps with preconstruction and can build if a guaranteed maximum price is set. An independent third party must estimate costs before signing a construction contract. Key procurements get Joint Bond Review Committee review opportunities and post-project reporting.

New rules for county C road funds

At least 33% of each county’s C funds must go to state highway work, with the Secretary’s approval. Counties can use C funds for bonds, project costs, and to match federal funds, but carryforward balances are capped at 300% of the latest apportionment. Donor counties get $17 million each year in proportional transfers, plus up to $3.5 million more statewide. The Department of Revenue must report county gasoline shares by May 1 each year, and counties must report project spending for an annual statewide report.

Stronger oversight of transportation partnerships

Before advertising a public‑private deal, SCDOT must send the solicitation to the Joint Bond Review Committee for review. SCDOT must adopt partnership rules first and may sign interstate agreements only after JBRC review. Proposed contracts must be filed with the Secretary of State; after 20 days, new legal challenges are barred. Deals can run up to 60 years, and private partners must post performance and payment security; DOT may accept less than the full contract amount if protection is adequate. SCDOT must notify JBRC within 30 days after signing a deal, file an annual status report, and may hold project funds in trustee accounts.

20-year statewide transportation plan

DOT must prepare a statewide transportation plan that looks at least 20 years ahead. It must follow federal law and involve planning groups across the state. The plan can be updated as federal rules allow.

Stronger audits and public DOT reports

DOT’s chief internal auditor must be a CPA, certified internal auditor, or certified fraud examiner. The State Auditor manages this role and sets the salary. Internal audits must follow government standards, cover the whole DOT, and be posted online. An independent performance audit is required every four years, with the first report due January 15, 2028.

Stronger ethics and local committee rules

County transportation committees must post members and a county plan online, update the plan every four years, and meet at least twice a year. Officials and employees are under the State Ethics Act, and bribery is a felony with up to five years in prison and a lifetime bar from public office. Members get legal immunity for acts within official duties. Starting July 1, 2027, delegations can shift appointments to county councils or rename committees. Counties can appeal proposed C‑fund withholdings on a 60/90/30‑day timeline.

Tolls on choice lanes; school buses exempt

DOT and private partners can set and collect usage charges on choice lanes, including dynamic prices. Bills can use photo monitoring and cashless billing by mail or license plate. School buses carrying children for school events do not pay these tolls.

DOT must okay new local road limits

For roads moved to local control after July 2026, DOT must approve any new local load, weight, speed, or vehicle‑class limits before they take effect. This rule does not apply to older transfers.

Faster environmental reviews with public checks

The state consents to certain federal-court suits tied to DOT’s NEPA duties, but only after specific agreements and approvals. If South Carolina applies to take on NEPA reviews, DOT must publish a NEPA Manual after a 30-day public comment period. DOT must post a yearly report on time savings, money impacts, and lawsuits. Agency heads must coordinate with DOT to speed permits and decisions.

Governor-appointed Secretary now runs DOT

The Governor now appoints the Secretary of Transportation, with Senate approval. The sitting Secretary stays until a successor is confirmed. On January 1, 2027, the DOT Commission is abolished and the Secretary becomes the department’s governing authority. The Secretary sets policy, runs daily operations, and takes over the commission’s duties. Prior laws creating the commission are repealed.

Infrastructure Bank board and rules change

The Secretary of Transportation sits on the Infrastructure Bank board. The Governor and legislative leaders appoint other members, and terms match their appointing officials. A subsection of the bank statute is deleted as a conforming change.

Sponsors & Cosponsors

Sponsor

  • Lawrence K. "Larry" Grooms

    Republican • Senate

Cosponsors

  • Sean M. Bennett

    Republican • Senate

  • Darrell Jackson

    Democrat • Senate

  • Josh Kimbrell

    Republican • Senate

  • Ed Sutton

    Democrat • Senate

Roll Call Votes

All Roll Calls

Yes: 636 • No: 3

Senate vote • 5/12/2026

(SCDOT Modernization)to adopt the conference report

Yes: 43 • No: 0

House vote • 5/12/2026

(SCDOT Modernization)Adopt Conference Report

Yes: 112 • No: 2

House vote • 4/30/2026

(SCDOT Modernization)Passage of Bill

Yes: 108 • No: 0

House vote • 4/30/2026

(SCDOT Modernization)Passage of Bill

Yes: 108 • No: 0

House vote • 4/29/2026

(SCDOT Modernization)Passage of Bill

Yes: 114 • No: 0

House vote • 4/29/2026

(SCDOT Modernization)Passage of Bill

Yes: 114 • No: 0

Senate vote • 3/19/2026

(SCDOT Modernization)3rd Reading

Yes: 37 • No: 1

Actions Timeline

  1. Effective date See Act for Effective Date

    6/5/2026legislature
  2. Act No. 177

    6/2/2026legislature
  3. Signed By Governor

    5/18/2026Governor
  4. Ratified R 156

    5/14/2026legislature
  5. Enrolled for Ratification

    5/12/2026Senate
  6. Roll call Ayes-43 Nays-0

    5/12/2026Senate
  7. Conference report received and adopted

    5/12/2026Senate
  8. Roll call Yeas-112 Nays-2

    5/12/2026House
  9. Conference report received and adopted

    5/12/2026House
  10. House insists upon amendment and conference committee appointed Reps. Bannister, Erickson, Brewer

    5/6/2026House
  11. Senate insists upon amendment and conference committee appointed Grooms, Bennett, Walker

    4/30/2026Senate
  12. Roll call Yeas-108 Nays-0

    4/30/2026House
  13. Read third time and returned to Senate with amendments

    4/30/2026House
  14. Amended

    4/30/2026House
  15. Roll call Yeas-114 Nays-0

    4/29/2026House
  16. Read second time

    4/29/2026House
  17. Amended

    4/29/2026House
  18. Debate adjourned

    4/23/2026House
  19. Requests for debate-Rep

    4/15/2026House
  20. Scrivener's error corrected

    4/13/2026legislature
  21. Committee report: Favorable with amendment Ways and Means

    4/2/2026House
  22. Referred to Committee on Ways and Means

    3/24/2026House
  23. Introduced and read first time

    3/24/2026House
  24. Roll call Ayes-37 Nays-1

    3/19/2026Senate
  25. Read third time and sent to House

    3/19/2026Senate

Bill Text

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