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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