South Carolina H 3296: Farmer Protection Act

Bill Text

2025-2026 Bill 3296 Text of Previous Version (Dec. 06, 2024) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 3296

Indicates Matter Stricken
Indicates New Matter

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

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING article 
3 to chapter 1, title 46 BY ENACTING THE "FARMERS PROTECTION ACT" so as TO 
PREVENT DISCRIMINATION IN FINANCING AGAINST FARMERS.

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

SECTION 1. Chapter 1, Title 46 of the S.C. Code is amended by 
adding:

Article 3

Farmers Protection Act

 Section 
46-1-310. For purposes of this article:

 (1) 
"Agriculture producer" means a person or company authorized to do business in 
South Carolina and engaged in the production of goods derived from plants or 
animals including, but not limited to, the growing of crops, silviculture, 
animal husbandry, or the production of livestock or dairy products.

 (2) 
"Commissioner" means the Commissioner of the Department of Agriculture.

 (3) 
"Company" means a for-profit organization, association, corporation, 
partnership, joint venture, sole proprietorship, limited partnership, limited 
liability partnership, or limited liability company, including a wholly owned 
subsidiary, majority-owned subsidiary, parent company, or affiliate of those 
entities or business associations authorized to do business in South Carolina.

 (4) 
"Denies or restricts" means refusing to provide services, terminating existing 
services, or restricting or burdening the scope or nature of services offered 
or provided.

 (5) 
"Discriminate in the provision of financial services" means to deny or restrict 
services and thereby decline to provide financial services.

 (6) 
"ESG factor" means any factor or consideration that is collateral to or not 
reasonably likely to effect or impact the financial risk and include the 
promotion, furtherance, or achievement of environmental, social, or political 
goals, objectives, or outcomes which may include the agriculture producer's 
greenhouse gas emissions, use of fossil-fuel derived fertilizer, or use of 
fossil-fuel powered machinery.

 (7) 
"Financial institution" means a company authorized to do business in South 
Carolina that has total assets over one hundred billion dollars and offers 
financial services. A financial institution includes any affiliate or 
subsidiary company, even if that affiliate or subsidiary company is also a 
financial institution.

 (8) 
"Financial service" means any product or service that is of a financial nature 
and is offered by a financial institution.

 Section 
46-1-320. (A) A financial 
institution may not discriminate in the provision of financial services to an 
agriculture producer based, in whole or in part, upon an ESG factor.

 (B) If 
a financial institution has made any ESG commitment related to agriculture, 
there is an inference that the institution's denial or restriction of a 
financial service to an agriculture producer violates subsection (A).

 (C) A 
financial institution may overcome the inference in subsection (B) by 
demonstrating that its denial or restriction of a financial service was based 
solely on documented risk analysis, and not on any ESG factor.

 Section 
46-1-330. Section 46-1-320 may be enforced by the South Carolina Attorney 
General. Any violation of Section 46-1-320 constitutes an unfair trade practice 
in violation of Chapter 5, Title 39, and the Attorney General may investigate 
and seek remedies as provided in that law. Actions for damages may be sought by 
an aggrieved party pursuant to Section 39-5-140.

SECTION 2. If any section, subsection, 
paragraph, subparagraph, sentence, clause, phrase, or word of this act is for 
any reason held to be unconstitutional or invalid, such holding shall not 
affect the constitutionality or validity of the remaining portions of this act, 
the General Assembly hereby declaring that it would have passed this act, and 
each and every section, subsection, paragraph, subparagraph, sentence, clause, 
phrase, and word thereof, irrespective of the fact that any one or more other 
sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, 
or words hereof may be declared to be unconstitutional, invalid, or otherwise 
ineffective.

SECTION 3. This act takes effect upon approval 
by the Governor.

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This web page was last updated on December 06, 2024 at 11:17 AM