H 3854

South Carolina General Assembly
126th Session, 2025-2026
Bill 3854
Indicates Matter Stricken
Indicates New Matter
(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)
A bill
TO AMEND THE SOUTH CAROLINA CODE OF LAWS by ENACTing THE
"EARMARK RESPONSIBILITY, ACCOUNTABILITY, INTEGRITY, AND TRANSPARENCY ACT" BY
ADDING SECTION 11-1-130 SO AS TO REQUIRE ORGANIZATIONS RECEIVING STATE FUNDS TO
PROVIDE ITEMIZED SPENDING UPDATES AND ITEMIZED ACCOUNTINGS OF THE MANNER IN
WHICH SUCH FUNDS WERE EXPENDED, INCLUDING COPIES OF ALL RECEIPTS FOR THE
PURCHASE OF GOODS AND PROCUREMENT OF SERVICES.
Be it enacted by the
General Assembly of the State of South Carolina:
SECTION 1.  This act may be cited as the "Earmark Responsibility, Accountability,
Integrity, and Transparency Act."
SECTION 2.  Chapter 1, Title 11 of the S.C. Code is amended by
adding:
    Section
11-1-130.  (A)(1) Before a state
agency makes a contribution of funds to an organization, the organization must
provide the state agency and the Executive Budget Office with a report which
includes an accounting of the manner in which the funds will be spent and the
public goals to be accomplished.
       (2)(a) After receiving the funds, the
organization must provide quarterly itemized spending updates to the respective
state agency. After all state funds have been expended, the organization must
provide an itemized accounting of how the funds were spent, including an itemized
accounting of funds provided to subgrantees and affiliated nonprofits. The
respective agency must forward such updates and accountings to the Senate
Finance Committee and the House Ways and Means Committee.
  (b)
The quarterly spending updates and accounting required by subitem (a) must
include copies of any receipts where such funds were used for the purchases of
goods or procurement of services.
  (c)
If the provisions of this item are not met, then the recipient organization
must pay back the respective agency the entirety of the amount contributed by
the respective agency plus interest.
    (B)
Beginning with the quarterly itemized spending updates made in the fiscal year
beginning two fiscal years after the contribution was made, the organization
must include an accounting of any unexpended funds, the reason funds still
exist, and the expected timing of the expenditure of the unexpended funds. If
the director of the state agency making the contribution determines that there
is insufficient justification for the funds remaining unexpended, the director
may require the unexpended funds be returned to the agency.
    (C) The
provisions of this section apply to all contributions of funds made by a state
agency to an organization regardless of whether the contribution is made in
accordance with provisions of this code or in accordance with a provision of an
appropriations act.
SECTION 3.  This act takes effect upon approval
by the Governor.
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This web page was last updated on January 30, 2025 at 11:43 AM