House Amendment 1
H 5169 - Session 125 (2023-2024)
Farmer Protection Act

The Committee on Agriculture, Natural Res. and Environmental Affairs proposes the following amendment (LC-5169.PH0006H):

Amend the bill, by deleting all after the title but before the enacting words.

Amend the bill further, SECTION 1, by striking Section 46-1-310(1) and inserting:

 (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, animal husbandry, or the production of livestock or dairy products.

Amend the bill further, SECTION 1, by striking Section 46-1-310(3), (4), (5), (6), and (7) and inserting:

 (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 commitment" means any purpose for a financial institution's customers, or a financial institution's decision to join any initiative or organization that has a purpose for its signatories' or members' customers to be aligned with any environmental, social, or political goals to deny agriculture producers financial services based on these institutions' policies on greenhouse gas emissions, use of fossil fuel-derived fertilizers, or fossil fuel-powered machinery by these agriculture producers. Evidence of an ESG commitment includes, but is not limited to, any of the following:
  (a) advertising, statements, explanations, reports, or statements of principles; and
  (b) participation in, affiliation with, or status as a signatory to, any coalition, initiative, joint statement of principles, or agreement the purpose of which is to use business activity to further environmental, social, or political goals.
 (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.

Amend the bill further, SECTION 1, by striking Section 46-1-320(B) and (C) and inserting:

 (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 financial considerations, and not on any ESG commitment.

Amend the bill further, SECTION 1, by striking Section 46-1-330 and inserting:

 Section 46-1-330. Section 43-1-320 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.