In October 2010, The Nerve reported that although Knotts lives in West Columbia, less than 10 miles from the State House in downtown Columbia, he received subsistence payments of nearly $26,500 for the 2.5-year period between January 2008 and July 2010. The money is supposed to reimburse lawmakers for hotel stays and meals while on legislative business, whether the General Assembly is in or out of session. Knotts' total for the 30-month period - $26,462, to be precise - was the highest among Midlands senators and the sixth-highest among the 55 current or former senators who served during the two-and-a-half-year timeframe, according to The Nerve’s analysis.

Knotts drew attention with comments made when Gov. Mark Sanford disappeared for several days in June 2009, on what was later revealed to be a rendezvous with a woman in South America. Knotts, a longtime Sanford foe, questioned who was leading the state should a disaster occur: "Who is at the helm? The way Iran is acting up, and what about weather catastrophes? Hopefully no decision has to be made." A few days later, Knotts called for a "full-blown" investigation into Sanford's actions.

Knotts called Republican gubernatorial candidate Nikki Haley a “raghead” while apppearing on an Internet political talk show on June 3, 2010. The term is a slur typically used against Arabs or other ethnic groups who wear turbans or headdresses. Haley, a state representative from Lexington, is the child of Indian immigrants who was raised a Sikh but converted to Christianity as an adult. “We already got one raghead in the White House,” Knotts said. “We don’t need another in the Governor’s Mansion.” Knotts told The Free Times that he believed Haley had been set up by a network of Sikhs and was programmed to run for governor of South Carolina by outside influences in foreign countries. He claimed she is hiding her religion and he wanted the voters to know about it.