South CarolinaH 4247126th General Assembly (2025-2026)House

AN ACT TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 39-73-10, RELATING TO STATE COMMODITY CODE DEFINITIONS, SO AS TO PROVIDE THAT THE ADMINISTRATOR OF THE STATE COMMODITY CODE BE THE SOUTH CAROLINA ATTORNEY GENERAL; BY AMENDING SECTION 39-73-40, RELATING TO TRANSACTIONS WHERE PROHIBITION IS NOT APPLICABLE, SO AS TO ADD AGENTS OR INVESTMENT ADVISOR REPRESENTATIVES AS INDIVIDUALS SUBJECT TO ORDERS TO DENY, SUSPEND, OR REVOKE A PERSON'S LICENSE; BY AMENDING SECTION 39-73-60, RELATING TO PROHIBITED ACTS, SO AS TO REPLACE SECTION 39-73-310 WITH SECTION 39-73-30; BY AMENDING SECTION 39-73-315, RELATING TO ADMINISTRATOR ACTIONS TO PREVENT VIOLATIONS OR IMMINENT VIOLATIONS, SO AS TO PROVIDE THAT THE ADMINISTRATOR CAN ISSUE ORDERS RELATED TO ANY ACTION THAT MAY VIOLATE THIS CHAPTER; BY AMENDING SECTION 39-73-320, RELATING TO LEGAL, EQUITABLE, AND SPECIAL REMEDIES AVAILABLE TO A COURT FOR ENFORCEMENT, SO AS TO PROVIDE THAT THE ADMINISTRATOR MAY MAINTAIN AN ACTION IN THE RICHLAND COUNTY COURT OF COMMON PLEAS; BY AMENDING SECTION 39-73-325, RELATING TO PENALTIES FOR VIOLATIONS, SO AS TO PROVIDE THAT THE ADMINISTRATOR MAY REFER VIOLATIONS TO THE APPROPRIATE DIVISION OF THE OFFICE OF ATTORNEY GENERAL OR OTHER AUTHORITY; BY AMENDING SECTION 39-73-330, RELATING TO THE ADMINISTRATION OF THIS CHAPTER, SO AS TO MAKE CONFORMING CHANGES; BY AMENDING SECTION 39-73-340, RELATING TO THE AUTHORITY TO PROMULGATE REGULATIONS, FORMS, AND ORDERS, SO AS TO MAKE CONFORMING CHANGES; BY AMENDING SECTION 39-73-350, RELATING TO THE APPLICABILITY OF SECTIONS 39-73-20, 39-73-50, AND 39-73-60 TO PERSONS WHO SELL, BUY, OR OFFER TO SELL OR BUY COMMODITIES IN THIS STATE, SO AS TO PROVIDE GUIDELINES FOR APPLICABLE RADIO AND TELEVISION COMMUNICATIONS; BY AMENDING SECTION 39-73-360, RELATING TO JUDICIAL REVIEW, SO AS TO PROVIDE GUIDELINES; BY AMENDING SECTION 39-73-370, RELATING TO DEFENSE IN A CASE BASED ON FAILURE TO MAKE PHYSICAL DELIVERY, SO AS TO MAKE CONFORMING CHANGES; BY ADDING SECTION 39-73-375 SO AS TO PROVIDE THAT THE ATTORNEY GENERAL MAY RETAIN FUNDS FROM FINES AND PENALTIES TO OFFSET RELEVANT EXPENSES; BY REPEALING SECTION 39-73-355 RELATING TO ADMINISTRATIVE PROCEEDINGS; AND BY AMENDING SECTION 4-9-145, RELATING TO LITTER CONTROL OFFICERS, SO AS TO PROVIDE WHAT DATA IS USED TO DETERMINE THE NUMBER OF LITTER CONTROL OFFICERS.

Sponsored By: William G. "Bill" Herbkersman (Republican)

Signed by Governor

Summary

Commodity Code Execution

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 3 benefits, 1 costs, 2 mixed.

Defense for late physical delivery

A seller has a defense if the only issue is late physical delivery and the delay was beyond the seller’s control. The defense also applies when delivery is finished within a reasonable time.

Out-of-state ads rarely count in SC

An offer in a newspaper is not treated as made in South Carolina if over two‑thirds of its circulation is outside the State. Radio, TV, or other electronic offers that start outside South Carolina are also treated as out‑of‑state. The law lists exceptions for network and syndicated content and certain in‑state sources.

Stronger crackdown on commodity fraud

The Attorney General now runs the State Commodities Code. The AG can issue cease‑and‑desist orders, fine up to $10,000 per violation or $100,000 for related violations, and post orders online. Courts in Richland County can freeze assets, appoint a receiver, order restitution or disgorgement, and add civil penalties up to $10,000 per violation, without a bond from the AG. If orders are ignored, courts may add contempt fines of $500 to $5,000 per violation. Willful violations can bring up to $20,000 in fines and up to 10 years in prison. You have 30 days to ask that court to review a final order, and you must post any bond if the court grants a stay. The old administrative proceedings section is repealed.

Tougher rules for commodity sellers

The Administrator can deny, suspend, or revoke a seller’s authority when the public interest and listed grounds are met. Grounds include false filings, crimes within 10 years that show lack of fitness, court injunctions, regulatory bars in the past 5 years, dishonest acts, and failure to supervise. The law also keeps bans on fraud, false statements, and deceptive acts in commodity deals.

Limits and rules for litter officers

A county may appoint litter officers with arrest power up to the greater of its July 1, 2001 total or one per 25,000 residents. Every county may appoint at least one officer. An officer needs current law enforcement certification to make custodial arrests. Except for litter arrests, these officers may not stop or arrest for other offenses.

AG keeps up to $750K in fines

The Attorney General may keep up to $750,000 each fiscal year from Chapter 73 fines and penalties to pay enforcement costs. Any amount above $750,000 goes to the State general fund. The Attorney General must report each year on penalties collected, restitution and disgorgement ordered, the amount kept, and the amount sent to the general fund.

Sponsors & Cosponsors

Sponsor

  • William G. "Bill" Herbkersman

    Republican • House

Cosponsors

  • Rosalyn D. Henderson-Myers, Ph.D.

    Democrat • House

Roll Call Votes

All Roll Calls

Yes: 288 • No: 0

Senate vote • 5/8/2025

(Commodity Code Execution)3rd Reading

Yes: 40 • No: 0 • Other: 2

House vote • 5/8/2025

(Commodity Code Execution)Concur in Senate Amendments

Yes: 97 • No: 0

Senate vote • 5/7/2025

(Commodity Code Execution)2nd Reading

Yes: 41 • No: 0 • Other: 2

House vote • 5/1/2025

(Commodity Code Execution)Passage of Bill

Yes: 110 • No: 0

Actions Timeline

  1. Act No. 67

    5/27/2025legislature
  2. Effective date 05/22/25

    5/27/2025legislature
  3. Signed By Governor

    5/22/2025Governor
  4. Ratified R 95

    5/20/2025legislature
  5. Roll call Yeas-97 Nays-0

    5/8/2025House
  6. Concurred in Senate amendment and enrolled

    5/8/2025House
  7. Roll call Ayes-40 Nays-0

    5/8/2025Senate
  8. Read third time and returned to House with amendments

    5/8/2025Senate
  9. Amended

    5/8/2025Senate
  10. Read second time

    5/7/2025Senate
  11. Recalled from Committee on Labor, Commerce and Industry

    5/6/2025Senate
  12. Referred to Committee on Labor, Commerce and Industry

    5/6/2025Senate
  13. Introduced and read first time

    5/6/2025Senate
  14. Read third time and sent to Senate

    5/2/2025House
  15. Unanimous consent for third reading on next legislative day

    5/1/2025House
  16. Roll call Yeas-110 Nays-0

    5/1/2025House
  17. Read second time

    5/1/2025House
  18. Member(s) request name added as sponsor: Henderson-Myers

    5/1/2025House
  19. Committee report: Favorable Labor, Commerce and Industry

    4/30/2025House
  20. Referred to Committee on Labor, Commerce and Industry

    3/27/2025House
  21. Introduced and read first time

    3/27/2025House

Bill Text

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