SOUTH CAROLINA REVENUE AND FISCAL AFFAIRS OFFICE
S
TATEMENT OF ESTIMATED FISCAL IMPACT
WWW.RFA.SC.GOV • (803)734-3793
This fiscal impact statement is produced in compliance with the South Carolina Code of Laws and House and Senate rules. The focus of
the analysis is on governmental expenditure and revenue impacts and may not provide a comprehensive summary of the legislation.
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S. 0204
Fiscal Impact Summary
This bill establishes that no citizen of a foreign adversary or corporation controlled by a foreign
adversary, as defined by this bill, may acquire any interest in real property within the state. The
bill also clarifies that the limitation does not apply to a citizen of a foreign adversary if this
citizen is also a citizen of the United States or resides in the United States and has been granted
lawful permanent resident status by the United States government and acquires no more than five
acres for residential use. The bill further provides for conditions of a summary judgement in a
civil action initiated or funded by a party controlled by a foreign adversary. Also, the bill allows
the party controlled by a foreign adversary with a summary judgement against them to appeal
directly to the Supreme Court and requires the Supreme Court to hear the appeal on an expedited
schedule.
The Department of Commerce (Commerce) indicates that the bill will have no expenditure
impact on the agency. Commerce has engaged the SC State Law Enforcement Division (SLED)
to perform the due diligence on prospective foreign companies seeking incentives for economic
activity in the state to determine whether they are owned by foreign adversaries at no charge.
Both SLED and Judicial have confirmed that the bill will have no expenditure impact as both
agencies will be able to manage the additional workload with existing staff and appropriations.
Commerce anticipates this bill may impact economic development for the state for both future
projects and existing companies. This bill may limit the potential growth of many existing
companies and influence the decision of several prospective projects considering locating in the
state, which may have an adverse effect on future tax revenues.
The Revenue and Fiscal Affairs Office (RFA) has previously contacted all counties to determine
the potential expenditure impact similar legislation may have on local governments. We received
a response from the counties of Dorchester and Kershaw. Both counties indicated this bill will
have no expenditure impact. Based on these responses, RFA anticipates this bill will have no
expenditure impact on local governments.
Bill Number: S. 0204 Introduced on Januar
y 15, 2025
Subject: Alien Ownership of Real Property
Requestor: Senate Judiciary
RFA Analyst(s): Manic
Impact Date: February 11, 2025
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S. 0204
Explanation of Fiscal Impact
Introduced on January 15, 2025
State Expenditure
This bill establishes that no citizen of a foreign adversary or corporation controlled by a foreign
adversary, as defined by this bill, may acquire any interest in real property within the state. This
bill clarifies that the limitation does not apply to a citizen of a foreign adversary if this citizen is
also a citizen of the United States or resides in the United States and has been granted lawful
permanent resident status by the United States government and acquires no more than five acres
for residential use. The bill also defines foreign adversary as any foreign government or
nongovernment person determined by the United States Secretary of Commerce to have engaged
in a long-term pattern or serious instances of conduct that is significantly to the national
security of the United States or the security and safety of United States citizens.
Further, the bill specifies that these limitations do not apply to businesses and industries
operating within the limits of the state on December 31, 2022, as long as the land or real property
is acquired for purposes of expansion and the expansion is approved by the Secretary of State
and the Governor. Also, the bill’s requirements do not apply to businesses that have received
commitments or proposals from the Department of Commerce related to discretionary state
incentives on or before March 23, 2025. Such businesses are eligible to acquire land or real
property to establish operations or later expand in the state with the approval of the Secretary of
Commerce and the Governor.
The bill also provides for conditions of a summary judgement in a civil action initiated or funded
by a party controlled by a foreign adversary. In addition, the bill allows the party controlled by a
foreign adversary with a summary judgement against them to appeal the summary judgment
directly to the Supreme Court and requires the Supreme Court to hear the appeal on an expedited
schedule.
Department of Commerce. Commerce indicates that the bill will have no expenditure impact as
the agency has engaged SLED free of charge to determine whether foreign companies seeking
incentives for economic activity in SC are owned by foreign adversaries. Also, the agency
indicates that it is not involved in the acquisition of land and that the bill does not specify that
Commerce is required to provide due diligence on foreign companies acquiring an interest in real
property or land. Commerce further specifies that the only affirmative action the bill requires of
Commerce is for the Secretary of Commerce to approve, along with the Governor, land
acquisitions made by foreign adversaries related to expansions where the business was operating
within the limits of the state on December 31, 2022.
State Law Enforcement Division. SLED has confirmed that the bill will have no expenditure
impact on the agency as it will be able to manage the additional workload with existing staff and
appropriations.
__________________________________
Frank A. Rainwater, Executive Director
DISCLAIMER: THIS FISCAL IMPACT STATEMENT REPRESENTS THE OPINION AND INTERPRETATION OF THE
AGENCY OFFICIAL WHO APPROVED AND SIGNED THIS DOCUMENT. IT IS PROVIDED AS INFORMATION TO
THE GENERAL ASSEMBLY AND IS NOT TO BE CONSIDERED AS AN EXPRESSION OF LEGISLATIVE INTENT.
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S. 0204
Judicial. Judicial indicates that the bill will have no expenditure impact as they do not anticipate
the number of appeal cases with the Supreme Court to be significant and expect to manage such
instances with existing staff and resources.
State Revenue
This bill specifies that no citizen of a foreign adversary or corporation controlled by a foreign
adversary, as defined by this bill, may acquire any interest in real property within the state.
Commerce anticipates this bill may impact economic development for the state for both future
projects and existing companies. This bill may limit the potential growth of many existing
companies and influence the decision of several prospective projects considering locating in the
state.
Local Expenditure
RFA has previously contacted all counties to determine the potential expenditure impact similar
legislation may have on local governments. We received a response from the counties of
Dorchester and Kershaw. Both counties indicated this bill will have no expenditure impact.
Based on these responses, RFA anticipates this bill will have no expenditure impact on local
governments.
Local Revenue
N/A