South Carolina House Bill H3354

South Carolina 2025-2026 Regular Session

• Introduced: 1/14/25
• Refer: 1/14/25

Caption

A BILL TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 2-1-260 SO AS TO REQUIRE A NONPROFIT CORPORATION THAT HAS AN ANNUAL GROSS REVENUE EXCEEDING ONE BILLION DOLLARS THAT IMPOSES A REDUCTION IN FORCE OF MORE THAN ONE HUNDRED EMPLOYEES TO PREPARE AND PRESENT A REPORT TO CERTAIN COMMITTEES AND ENTITIES DETAILING ALL ECONOMIC AND PROCEDURAL BENEFITS MADE AVAILABLE TO IT AND WHY IT WAS NECESSARY TO IMPOSE THE REDUCTION IN FORCE.

Impact

The implications of H3354 hinge on increasing transparency and accountability among large nonprofit organizations operating within South Carolina. By obligating these entities to document and explain their access to economic advantages—as well as the rationale behind significant workforce reductions—the bill aims to enhance legislative oversight over nonprofits that significantly influence the local economy. Such a requirement could lead to greater scrutiny and potentially impact how these organizations operate and make decisions regarding staff employment.

Summary

House Bill 3354 seeks to amend the South Carolina Code of Laws by introducing a requirement for certain nonprofit corporations. Specifically, it targets nonprofits that have an annual gross revenue exceeding one billion dollars and that implement a reduction in force affecting more than one hundred employees. The bill mandates these nonprofit organizations to prepare and present a detailed report outlining the economic and procedural benefits they access due to their nonprofit status, as well as justifications for the layoffs. This report is to be submitted to key legislative committees and local authorities within a specified timeframe following the reduction in force.

Contention

While the legislation is primarily viewed as a means to ensure accountability, there may be points of contention regarding the definition of a 'reduction in force' and what constitutes significant economic benefits. Supporters argue that such measures will protect employees and foster responsible corporate behavior among major nonprofits, while opponents may contend that the bill could infringe on the operational autonomy of these organizations. Additionally, concerns may arise regarding the administrative burden imposed by the reporting requirements and whether it could deter smaller nonprofits from seeking similar economic benefits or engaging in workforce restructurings.