South Carolina Act 42, the Tort Reform and Liquor Liability Act, took effect on January 1, 2026. The South Carolina Statehouse legislative record shows House Bill 3430 entered the legislature on December 5, 2024. Governor Henry McMaster signed the bill on May 12, 2025. The General Assembly ratified it as Act No. 42, R61, of the 126th Session. The act applies to causes of action arising on or after January 1, 2026. It also applies to insurance policies issued after that date.

The Statehouse legislative history shows the House passed the bill 105 to 0 on February 19, 2025. The Senate then passed it 45 to 0 on April 1, 2025. Senators concurred in House amendments 41 to 1 on May 7, 2025. South Carolina Act 42 contains two main areas of change: civil liability rules and liquor liability requirements.

What South Carolina Act 42 Changes About Joint and Several Liability

The act amends Section 15-38-15 of the South Carolina Code, which governs the apportionment of fault. Per the bill text, joint and several liability now does not apply to a defendant whose fault falls below fifty percent. The fifty percent threshold compares against the total fault for indivisible damages. Such a defendant is liable only for that proportional percentage.

The act establishes new procedures for placing non-party tortfeasors on the jury verdict form. This includes parties who previously settled with the plaintiff. Per the bill text, a settling party shall appear on the verdict form under specific conditions. The evidence must show the settling party was a proximate cause of the plaintiff’s damages, in whole or in part. That evidence must also be sufficient to survive a Rule 50 directed verdict motion. The bill sets a 180-day disclosure window from the commencement of the action for adding a non-defendant tortfeasor. A later filing requires a showing of good cause.

A separate provision in the act adds Section 61-2-147 to the South Carolina Code. This new section addresses tortfeasors charged with certain driving-under-the-influence offenses. Such a tortfeasor shall appear on the jury verdict form upon motion of the defendant under specified circumstances. The act also addresses cases with verdicts against both a licensee and a DUI defendant. In those cases, the licensee bears joint and several liability. That liability covers fifty percent of the plaintiff’s actual damages.

What South Carolina Act 42 Changes About Liquor Liability Insurance and Server Training

In addition, the act amends statutes governing liquor liability insurance and alcohol server training. Specifically, the South Carolina Department of Revenue addresses these changes in its official guidance. For instance, businesses open after 5 p.m. that sell alcohol for on-premises consumption must maintain a $1 million liquor liability policy. However, certain mitigation factors can reduce that requirement. Furthermore, the Department states that per-occurrence coverage must equal at least fifty percent of the total coverage amount. As a result of the new mitigation framework, a permanent licensee’s coverage cannot drop below $300,000. Similarly, a special event licensee’s coverage cannot drop below $150,000.

In addition to setting coverage floors, the Department of Revenue identifies the available mitigation factors. Beginning January 1, 2026, licensees may apply them to liquor liability insurance policies. Moreover, the Department addresses server training. For example, anyone serving alcohol for on-premises consumption at least 10 hours per week must complete an approved program. Likewise, the same requirement applies to managers who oversee alcohol service. Ultimately, the deadline is May 1, 2026, or 30 days from the date of employment.

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To begin with, Toppe Consulting is a digital marketing agency for law firms. Originally, Jim and Joe Toppe founded the company in Greenville, South Carolina in 2015. According to the firm’s published biographies, Jim Toppe holds a Master of Science in Management from Clemson University. In addition, he teaches Business Law and Marketing at Greenville Technical College. Meanwhile, Joe Toppe holds a Master’s degree in Journalism and Mass Communication from Kent State University.

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Disclaimer

Toppe Consulting LLC publishes this article as a digital marketing agency. We are not a law firm and do not provide legal advice. The information above summarizes publicly available legislative material and government guidance for general informational purposes only. This summary is not a substitute for advice from a licensed South Carolina attorney. Readers with questions about how South Carolina Act 42 applies to a specific case should consult a licensed attorney. This includes questions about a particular business, claim, or insurance policy. The attorney must be admitted to practice in South Carolina. All statutory citations, dates, vote tallies, and dollar figures come from the cited primary sources. Toppe Consulting accessed these sources on the publication date. The items may face subsequent amendment, regulation, or judicial interpretation.

Works Cited

“2025-2026 Bill 3430: Tort Reform and Liquor Liability.” South Carolina Legislature Online, South Carolina General Assembly, www.scstatehouse.gov/sess126_2025-2026/bills/3430.htm. Accessed 6 May 2026.

“ABL Updates – How H.3430 Impacts Your Business.” South Carolina Department of Revenue, dor.sc.gov/alcohol-beverage-licensing-abl/abl-updates-how-h3430-impacts-your-business. Accessed 6 May 2026.