A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 13-1-1790 SO AS TO CREATE THE "SOUTH CAROLINA HEADQUARTERS RELOCATION AND GROWTH FUND" TO PROVIDE GRANTS TO QUALIFYING BUSINESSES THAT ESTABLISH OR EXPAND CERTAIN HEADQUARTERS IN THIS STATE.

 

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

 

SECTION 1.  Article 11, Chapter 1, Title 13 of the S.C. Code is amended by adding:

 

    Section 13-1-1790. (A) There is created the "South Carolina Headquarters Relocation and Growth Fund." This fund is separate and distinct from the general fund of the State and all other funds, consisting of monies appropriated to the Coordinating Council for Economic Development to provide grants to qualified businesses. Earnings on this fund must be credited to it and any balance in this fund at the end of a fiscal year carries forward in the fund in the succeeding fiscal year. The funds and assets of the South Carolina Headquarters Relocation and Growth Fund are not funds of the State but are instead held in trust. The monies placed into and accumulated in the fund constitute the trust corpus, to be used only for the purposes outlined in this section. The fund must receive and hold all monies allocated for it as well as all earnings until disbursed as provided in this section. Monies deposited in the South Carolina Headquarters Relocation and Growth Fund may not revert to the general fund or be appropriated by the General Assembly for any other purpose. If the South Carolina Headquarters Relocation and Growth Fund program ceases for any reason, then the trustee shall deposit all remaining amounts in the trust fund to a specific account separate from the general fund designated by the General Assembly. The fund also may receive donations and grants from public and private sources.

    (B)(1) The fund must be administered by the Coordinating Council for Economic Development in coordination with the Department of Commerce. Revenues credited to this fund must be used only by the coordinating council to provide grants to a qualified business that establishes or expands a corporate headquarters, a regional or divisional headquarters, or a shared service or administrative center supporting multistate or global operations.

       (2) To qualify to receive a grant from the fund, a project must:

           (a) create a minimum of fifty new full-time jobs within five years of project initiation;

           (b) pay an average wage equal to or greater than two hundred percent of the average annual wage for the county in which the project is located;

           (c) commit a minimum capital investment of ten million dollars in real property, leasehold improvements, equipment, or relocation-related expenditures; and

           (d) enter into a performance agreement with the coordinating council specifying job creation milestones, wage requirements, and clawback provisions.

       (3) Grants awarded from the fund may be used for:

           (a) employee relocation and recruitment expenses;

           (b) office construction, buildout, or tenant improvements;

           (c) information technology, communications, or security infrastructure;

           (d) customized workforce training programs including, but not limited to, supplemental ReadySC activities;

           (e) public infrastructure improvements directly supporting the project site, such as roads, utilities, and broadband; and

           (f) other purposes determined by the coordinating council to be directly related to the establishment or expansion of a qualifying headquarters facility.

    (C)(1) Each grant recipient shall execute a performance agreement with the coordinating council prior to disbursement of funds setting forth:

           (a) job creation targets and schedules;

           (b) minimum wage levels;

           (c) investment commitments; and

           (d) reporting obligations.

       (2) All grants must include clawback provisions requiring proportional repayment of funds if the company fails to meet agreed-upon performance metrics within the specified time period.

    (D)(1) Nothing in this section precludes a qualifying business from applying for or receiving benefits under existing programs including, but not limited to, the Job Development Credit, Job Tax Credit, Fee-in-Lieu of Tax (FILOT) agreements, or infrastructure grants administered by the coordinating council.

       (2) Awards from the fund may be combined with other incentives, provided that the total package meets the coordinating council's cost-benefit and return-on-investment criteria.

 

SECTION 2.  This act takes effect on July 1, 2026.

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