South Carolina S 132: Economic Incentive Clawback

Bill Text

2025-2026 Bill 132 Text of Previous Version (Dec. 11, 2024) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 132

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A joint Resolution

TO ESTABLISH CRITERIA FOR THE STATE TO RECOVER FUNDS 
APPROPRIATED FOR certain purposes RELATED TO THE SCOUT MOTORS ECONOMIC 
DEVELOPMENT PROJECT.

Whereas, 
on March 20, 2023 the Governor signed into law a joint resolution appropriating 
$1,291,082,986 to the Department of Commerce to support an economic development 
project that ultimately brought Scout Motors to the midlands; and

Whereas, 
$1,091,082,986 of the appropriation to the Department of Commerce was to 
provide funding for a bridge to support rail spur construction, land 
acquisition, required site improvements and mitigation, road access and 
improvements, soil stabilization, a training center, water and wastewater 
infrastructure, and any other use related to Scout Motors determined to be 
necessary and recommended by the Department of Commerce; and

Whereas, 
$200,000 of the appropriated funds originated from a loan by the Department of 
Commerce to Scout Motors for additional stabilization that must be paid back 
with interest; and

Whereas, 
the economic incentive package signed by the Governor to entice Scout Motors to 
locate a plant in the Midlands carried with it an implicit promise by Scout 
Motors to be a good corporate citizen that abides by the laws of this State in 
its actions and operations; and

Whereas, 
Scout Motors has undertaken a vehicle deposit program to spark interest in 
their electric vehicles among the residents in this State. However, that 
program implicates the prohibition against a manufacturer selling or leasing 
directly or indirectly the manufacturer's vehicle to a consumer in this State. 
Now, therefore,

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. If 
Scout Motors has violated Section 56-15-45(D) with its vehicle deposit program, 
or if Scout Motors has otherwise violated the laws of this State, then Scout 
Motors must (1) immediately repay the $200,000 loan from the State with the 
agreed upon interest rate and (2) repay the State for any of its expenditures 
from the $1,091,082,986 appropriated to the Department of Commerce that benefitted 
Scout Motors, whether directly or indirectly. Any repayment of funds from the $1,091,082,986 
appropriation must be repaid within twenty-four months from the date that Scout 
Motors was notified of the violation. Repayments required pursuant to this 
provision must be made to the General Fund.

SECTION 2. If 
Scout Motors has violated Section 56-15-45(D) with its vehicle deposit program, 
or if Scout Motors has otherwise violated the laws of this State, then the 
Department of Commerce shall end all projects that have commenced and shall not 
initiate any new projects related to the incentive package. All unspent funds 
shall be returned to the General Fund. 

SECTION 3. This joint resolution takes effect 
upon approval by the Governor.

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This web page was last updated on December 11, 2024 at 04:31 PM