South Carolina Senate Bill S0132

South Carolina 2025-2026 Regular Session

• Introduced: 1/14/25
• Refer: 1/14/25

Caption

Economic Incentive Clawback

Impact

The proposed legislation requires Scout Motors to repay the $200,000 loan immediately, along with any funds expendited from the larger appropriation if it is determined that the company has violated state laws, including specific provisions related to its vehicle deposit program. This provision highlights the accountability expected of corporations receiving public funds and maintains a check on compliance with state regulations. Moreover, the bill necessitates the cessation of all ongoing projects linked to the incentive package if violations are identified, with unspent funds slated to return to the state’s General Fund.

Summary

Bill S0132, titled 'Economic Incentive Clawback', aims to establish criteria for the South Carolina state government to recover funds appropriated for specific purposes related to the Scout Motors economic development project. The bill arises from a significant financial commitment made by the state, amounting to $1,291,082,986, directed towards supporting the establishment of a Scout Motors facility in the Midlands. A prominent aspect of the funding includes provisions for infrastructure improvements necessary for the project, which is partly funded through a loan of $200,000 from the state to Scout Motors, earmarked for stabilization purposes.

Contention

A notable point of contention surrounding S0132 centers on the implications of enforcing strict scrutiny on corporations participating in state-funded projects. Supporters argue that the bill will ensure that taxpayer money is safeguarded and encourages corporations to adhere to local laws and regulations. Conversely, there may be concerns that stringent clauses for fund recovery could deter future economic development initiatives or alienate companies that might view such measures as excessively punitive. Overall, the dialogue surrounding the bill illustrates broader discussions on corporate responsibility and the management of public resources in economic development.