New state laws take effect in 2026

By Kaye Collins

The new year will introduce various changes to the laws in South Carolina, with significant legislation coming into effect starting Friday, January 1, 2026, and additional measures scheduled to be implemented later in 2026.

One of the most notable changes affects bars and restaurants that offer alcohol, after years of worries from business owners regarding increasing insurance expenses.

A new law regarding liquor liability and insurance requirements will come into effect on Thursday. According to a statute from 2017, bars and restaurants that serve alcohol after 5 p.m. were mandated to maintain a $1 million liability insurance policy to protect against damages in civil lawsuits. Numerous owners reported that the expense of this coverage became too high, leading some establishments to shut down.

The recent legislation permits companies to maintain reduced insurance limits provided they implement specific risk mitigation strategies, such as ceasing alcohol service by midnight or mandating alcohol server training for their staff. As a result, they may lower their requirement to as little as $300,000.

Despite the modifications, it is still uncertain if the updated requirements will result in a decrease in lawsuits or a reduction in premiums.

A lot of individuals may genuinely think that the savings stem solely from the ability to buy less insurance. However, this should be considered secondary, secondary to our collective hope for a reduction in accidents, injuries, and fatalities caused by intoxicated drivers.

As companies contemplate the adoption of new risk-reduction strategies, it may take some time before any significant alterations in insurance costs are observed, including the willingness of more firms to provide coverage. Additionally, a new law that came into effect on January 1 enhances privacy protections for current and former law enforcement personnel and judges. This modification restricts public access to their personal contact details in government records, especially on government websites that are searchable by the public.

Several laws enacted in the previous legislative session are set to come into force later this year. A component of a teacher reform initiative called the Educator Assistance Act is planned to commence in July 2026, following the implementation of most of the bill in July 2025.

According to that legislation, school districts are mandated to inform teachers ahead of the upcoming school year about their employment status for the following year. Additionally, districts are required to give teachers their assignments no less than 14 days prior to the commencement of the school year and to restrict specific reassignments unless there is prior notification and a clear necessity.

A new law has been enacted that increases penalties for individuals who fail to stop or pull over when directed by a law enforcement vehicle. Additionally, there are stricter penalties for those who engage in pursuits with law enforcement. This law is set to take effect in May 2026, one year following its signing by Governor Henry McMaster.

As of Friday, Jan. 1, South Carolina law enforcement began issuing tickets to drivers who hold their cell phone in their hands while driving on highways. The distracted driver hands-free law took effect in September 2025 where warnings were issued to distracted drivers utilizing their phones while driving. In South Carolina, under the new Hands-Free Act that takes effect on September 1, 2025, a ticket for using a phone while driving incurs a $100 fine for the first offense. For a second or subsequent offense within three years, the fine increases to $200 and adds two points to your driving record, following an initial 180-day warning period during which only warnings were given. The law prohibits the act of holding any mobile device for activities such as texting, browsing, or watching videos while driving; however, hands-free usage (like Bluetooth or mounted GPS) is permitted.