H 3295 Session 109 (1991-1992)
H 3295 General Bill, By Bailey
A Bill to amend the Code of Laws of South Carolina, 1976, by adding Chapter 18
to Title 2 so as to provide for the regulations of lobbyists and lobbying and
to provide penalties for certain violations; to amend Section 8-13-20, as
amended, relating to definitions used regarding ethics, so as to define
"compensation"; to amend the 1976 Code by adding Section 8-13-425 so as to
prohibit a public official from accepting certain types of contributions,
accepting campaign contributions on the State House complex, prohibiting a
candidate for office or public official from using campaign funds for personal
use, and prohibiting a public official or public employee who is acting in an
official capacity from receiving a cash honorarium for speaking before public
or private groups, other than for actual expenses incurred; to amend Section
8-13-420, relating to offering a public official or public employee
compensation, so as to more specifically define unlawful practices regarding
acceptance of compensation or anything of value by public officials or
employees; to amend Section 8-13-620, relating to recording of all funds and
contributions received required to be kept by the candidate for office or a
committee working on his behalf, so as to further define the requirements for
recording of funds and contributions received; and to repeal Chapter 17 of
Title 2 relating to lobbyists and lobbying.
01/23/91 House Introduced and read first time HJ-11
01/23/91 House Referred to Committee on Judiciary HJ-11
A BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976,
BY ADDING CHAPTER 18 TO TITLE 2 SO AS TO PROVIDE FOR
THE REGULATIONS OF LOBBYISTS AND LOBBYING AND TO
PROVIDE PENALTIES FOR CERTAIN VIOLATIONS; TO AMEND
SECTION 8-13-20, AS AMENDED, RELATING TO DEFINITIONS
USED REGARDING ETHICS, SO AS TO DEFINE
"COMPENSATION"; TO AMEND THE 1976 CODE BY
ADDING SECTION 8-13-425 SO AS TO PROHIBIT A PUBLIC
OFFICIAL FROM ACCEPTING CERTAIN TYPES OF
CONTRIBUTIONS, ACCEPTING CAMPAIGN CONTRIBUTIONS
ON THE STATE HOUSE COMPLEX, PROHIBITING A
CANDIDATE FOR OFFICE OR PUBLIC OFFICIAL FROM USING
CAMPAIGN FUNDS FOR PERSONAL USE, AND PROHIBITING A
PUBLIC OFFICIAL OR PUBLIC EMPLOYEE WHO IS ACTING IN
AN OFFICIAL CAPACITY FROM RECEIVING A CASH
HONORARIUM FOR SPEAKING BEFORE PUBLIC OR PRIVATE
GROUPS, OTHER THAN FOR ACTUAL EXPENSES INCURRED;
TO AMEND SECTION 8-13-420, RELATING TO OFFERING A
PUBLIC OFFICIAL OR PUBLIC EMPLOYEE COMPENSATION, SO
AS TO MORE SPECIFICALLY DEFINE UNLAWFUL PRACTICES
REGARDING ACCEPTANCE OF COMPENSATION OR
ANYTHING OF VALUE BY PUBLIC OFFICIALS OR EMPLOYEES;
TO AMEND SECTION 8-13-620, RELATING TO RECORDING OF
ALL FUNDS AND CONTRIBUTIONS RECEIVED REQUIRED TO
BE KEPT BY THE CANDIDATE FOR OFFICE OR A COMMITTEE
WORKING ON HIS BEHALF, SO AS TO FURTHER DEFINE THE
REQUIREMENTS FOR RECORDING OF FUNDS AND
CONTRIBUTIONS RECEIVED; AND TO REPEAL CHAPTER 17 OF
TITLE 2 RELATING TO LOBBYISTS AND LOBBYING.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Title 2 of the 1976 Code is amended by adding:
"CHAPTER 18
Lobbyists and Lobbying
Section 2-18-10. As used in this chapter, unless the context
clearly indicates otherwise:
(1) `Person' means an individual, partnership, committee,
association, corporation, labor organization, and any other organization
or groups of persons.
(2) `Public official' means an elected or appointed official of the
State, including candidates for the office.
(3) `Public employee' means a person employed by the State,
including applicants for the position.
(4) `Income' means the receipt or promise of any consideration,
whether or not legally enforceable.
(5) `Expenditure' means the transfer or promise of any
consideration, whether or not legally enforceable.
(6) `Annual filing period' means a period of time beginning thirty
days after sine die adjournment and ending thirty days after the next sine
die adjournment.
(7) `Voluntary membership organization' means an organization
composed of persons who are members of the organization on a
voluntary basis and who, as a condition of membership, are required to
make regular payments to the organization.
(8) `Lobbying' means promoting or opposing the introduction or
enactment of legislation before the General Assembly or the committees
or members of the General Assembly promoting or opposing executive
approval of legislation and also includes influencing the adoption or
rejection or regulation, standard, or other legislative enactment of a state
agency under the State Administrative Procedures Act.
(9) `Lobbyist' means a person who is employed, appointed, or
retained, with or without compensation, by another person to influence
in any manner the act or vote of a member of the General Assembly, the
Governor, or a state agency concerning a bill, resolution, amendment,
report, claim, act, rule, regulation, standard, rate, or veto pending or to
be introduced. `Lobbyist' also means a nonstate employee who is
employed, appointed, or retained, with or without compensation, by a
state agency, college, university, or other institution of higher learning.
`Lobbyist' does not include:
(a) an individual expressing a personal opinion on legislative or
administrative matters to a public official or public employee, or a
person who receives no compensation to engage in lobbying activities
and does not make expenditures or incur obligations in an aggregate
amount in excess of one thousand dollars to or for the benefit of public
officials or public employees in an annual filing period;
(b) a person who limits his lobbying activities to appearances
before public sessions of committees of the General Assembly, public
hearings of state agencies, public hearings before a public body of a
quasi-judicial nature, or proceedings of a court of this State, provided
that the person makes no expenditures for or on behalf of a public
official or public employee in connection with lobbying;
(c) a duly elected or appointed official or employee of the State,
the United States, a county, municipality, school district, or public
service district, when appearing solely on matters pertaining to his office
and public duties unless lobbying constitutes a regular and substantial
portion of the official's or employee's duties;
(d) a person performing professional services in drafting
legislation or in advising and rendering opinions to clients as to the
construction and effect of proposed or pending legislation where the
professional services are not otherwise connected with influencing
legislative action;
(e) persons who own, publish, or are employed by a radio station,
television station, wire service, or other bona fide news medium which
in the ordinary course of business disseminates news, editorials,
columns, other comments, or other regularly published periodicals, if
these persons engage in no further activities and represent no other
person in connection with a legislative matter. This exception applies
to a publication which is published and distributed by a membership
organization to its subscribers at least twelve times annually and for
which an annual subscription charge of at least one dollar fifty cents a
subscriber is made;
(f) persons who represent established churches solely for the
purpose of protecting the rights of their own members or for protecting
the doctrines of the churches or on matters considered to have an
adverse effect upon the moral welfare of the membership of the church;
(g) persons who are running for office elected by the General
Assembly or persons soliciting votes on their behalf.
(10) `Gift' means an item entertainment, food, beverage, travel, and
lodging given or paid voluntarily to a public official or a member of the
immediate family without the public official or a member of his
immediate family providing full and adequate consideration. However,
this definition does not apply to food or beverage not provided by a
lobbyist or to a memento of an occasion. Further, this definition does
not apply to a gift whose value is less than twenty-five dollars if the
donor is a nonlobbyist.
(11) `Travel' as included in this chapter means transportation of ten
miles or greater distance.
(12) `Legislation' means bills, resolutions, amendments,
nominations, regulations, and other matters which may be the subject of
action by either House.
(13) `Compensation' means any money, thing of value, or
economic benefit conferred on or received by a person.
Section 2-18-20. (A) A person who acts as a lobbyist, within
thirty days of this employment, shall register with the State Ethics
Commission as provided in this chapter. If a corporate entity registers,
then it shall identify each individual who will act as a lobbyist on its
behalf during the covered period. Each individual registering shall pay
a fee of two hundred dollars and present to the State Ethics Commission
a communication reflecting the authority of the registrant to represent
the person by whom he is employed. However, a lobbyist who files an
affidavit that he does not expend any funds nor does he receive any
revenue may pay a fifty dollar registration fee. There is no registration
fee for lobbyists who are fulltime employees of a state agency and
lobbying on behalf of that state agency.
(B) The State Ethics Commission annually shall furnish to
each member of the General Assembly and upon request to a state
agency a list of all lobbyists registered with that office. The committee
shall furnish monthly updates to the same persons. The registration must
be in that form and contain that information as the committee prescribes,
including the following:
(1) the full name and address, telephone number, occupation,
name of employer, principal place of business, and position held in that
business by the lobbyist;
(2) an identification, as far as possible, of each person on
whose behalf the lobbyist expects to perform services as a lobbyist;
(3) each aspect of the legislative or administrative process as
it applies in the House of Representatives.
(C) Each lobbyist who ceases to engage in activities requiring him
to register under these rules shall file a written statement with the State
Ethics Commission acknowledging the termination of activities. The
notice is effective immediately. Each lobbyist who files a notice of
termination under this chapter shall file reports required by this article
for any reporting period during which he was registered under these
rules.
(D) A lobbyist shall file a supplemental registration indicating a
substantial change in the information contained in the prior registration
within ten days after the date of the change.
(E) Each lobbyist shall maintain for not less than three years
records which must be available to the State Ethics Commission for
inspection and which contain the following information:
(1) the total income received by the lobbyist attributable to
lobbying;
(2) the identification of each person from whom income is
received and the amount received, but in the case of a voluntary
membership organization a contribution during an annual filing period
from a member need be recorded only if the contributions to the
organization from the member are more than five hundred dollars and
more than twenty percent of the total contributions to the organization
during that annual filing period;
(3) the total expenditures of the lobbyist for lobbying.
Section 2-18-30. (A) Each lobbyist, not later than thirty days
after the last day of an annual filing period, shall file a report with the
State Ethics Commission covering that lobbyist's activities during that
annual filing period. Each report must be in that form and contain
information as the committee prescribes, including, but not limited to:
(1) the full name, address, and telephone number of the
reporting lobbyist;
(2) an identification of each person on whose behalf the
reporting lobbyist performed services as a lobbyist during the covered
period;
(3) an identification of each person who acted as a lobbyist on
behalf of the reporting lobbyist during the covered period;
(4) each legislative, executive, or state agency action the
reporting lobbyist sought to influence during the covered period,
including bill numbers or other numbers where relevant;
(5) the identification of each person from whom income is
received and the amount received, but in the case of a voluntary
membership organization a contribution during an annual filing period
from a member need be recorded only if the contributions to the
organization from the member are more than five hundred dollars and
more than twenty percent of the total contributions to the organization
during that annual filing period;
(6) (a) The totals of all expenditures made or incurred by a
lobbyist or on behalf of a lobbyist by each of the lobbyist's employers
during the preceding year. The totals must be segregated according to
financial category, including: food and refreshments, entertainment,
living accommodations, advertising, printing, postage, travel, telephone,
contributions, office expenses, or that portion of total office expenses
attributable to activities covered under the provisions of these rules,
including rent and the wages paid for staff assistance, and other
expenses or services, and the total number of individual public officials
or employees on whom more than fifty dollars was spent in a
twenty-four hour period.
(b) In the case of special events for public officials or
employees, including parties, dinners, athletic events, entertainment, and
other functions, the date, location, name of the public body or bodies
invited, and total expense incurred by the person filing must be stated.
(c) Any expenditure directly or indirectly related to lobbying
if expended while engaged in the general course of lobbying activities
and the expenditure is reimbursed by the lobbyist's employer. However,
contributions of political action committees which already are disclosed
on other public statements are excluded from disclosure.
(7) a statement of any money promised or loaned to a public
official or public employee;
(8) a statement detailing a direct business association with a
public official or public employee.
(B) When total amounts are required to be reported, totals must be
reported both for the period covered and for the entire calendar year to
date.
Section 2-18-40. (A) Each state agency or department, no later
than thirty days after the last day of an annual filing period, shall file a
report with the State Ethics Commission covering the agency's lobbying
activities during that annual filing period. Each report must be in that
form and contain information as the State Ethics Commission prescribes
including, but not limited to:
(1) an identification of each agency official, employee, or
other person who engaged in lobbying during the covered period;
(2) legislative, executive, or state agency action the persons
identified in item (1) sought to influence during the covered period,
including bill numbers or other numbers where relevant;
(3) the totals of all expenditures made or incurred by these
persons identified in item (1) of this subsection in lobbying during the
covered period. The totals must be segregated according to financial
category, including: food and refreshments, entertainment, living
accommodations, advertising, printing, postage, travel, telephone,
contributions, office expenses, including rent and the wages paid for
staff assistance, and other expenses or services, and the total number of
individual public officials or employees on whose behalf the
expenditures were made, and a list of the names of public officials or
employees on whom more than fifty dollars was spent in a twenty-four
hour period.
(B) In the case of special events for public officials or employees,
including parties, dinners, athletic events, entertainment, and other
functions, the date, location, name of public body or bodies invited, and
total expenses incurred by the person filing must be stated.
(C) When total amounts are required to be reported, totals must be
reported for the entire year to date.
(D) The reports required by this section are not required from an
agency whose only activity is appearing before a committee of the
General Assembly at the request of that committee or members of that
committee.
Section 2-18-50. The State Ethics Commission has the power:
(1) to require a person to submit in writing reports and answers
to questions as the commission may prescribe. The submission must be
made within a reasonable period and under oath or otherwise as the
committee may determine;
(2) to administer oaths;
(3) to require by subpoena the attendance and testimony of
witnesses and the production of all documentary evidence relating to the
execution of its duties;
(4) to order testimony to be taken in any proceeding or
investigation by deposition before a person who is designated by the
committee and has the power to administer oaths and, in these instances,
to compel testimony and the production of evidence in the same manner
as authorized under item (3) of this section;
(5) to request the Attorney General to initiate through civil
proceedings for injunctive relief and through presentation to grand
juries, prosecute, defend, or appear in a civil or criminal action in the
name of the commission for the purpose of enforcing the provisions of
this chapter;
(6) to promulgate regulations to carry out provisions of this
subsection. However, regulations promulgated by the commission under
the provisions of this chapter must be limited to and include only the
forms necessary to accomplish the purpose of this chapter;
(7) in addition to any other penalty in this chapter, to require a
person who files a late statement or fails to file a required statement to
be assessed a civil penalty as follows:
(a) a fine of one hundred dollars if not filed within five days after
the established deadline provided in this chapter;
(b) after notice has been given by certified or registered mail
that a required statement has not been filed, a fine of ten dollars a day
for each additional calendar day in which the required statement is not
filed, not to exceed a total fine of five hundred dollars.
Section 2-18-60. The State Ethics Commission has the following
duties:
(1) to develop forms for the filing of notices of registration,
representation, and reports required by this chapter and to furnish the
forms to lobbyists upon request;
(2) to issue identification cards to each lobbyist before the
lobbyist can engage in lobbying and before January tenth of each
succeeding year;
(3) to prepare a manual setting forth recommended uniform
methods of bookkeeping and reporting and to furnish a manual to
lobbyists upon request;
(4) to develop a filing, coding, and cross-indexing system
consistent with the purpose of this article;
(5) to make the notices of registration and reports filed with it
available for public inspection and copying as soon as may be
practicable after receipt of them and to permit copying of a report or
statement by hand or by duplicating machine, as requested by a person,
at the expense of the person;
(6) to preserve the originals or copies of notices and reports for
a period of three years from date of receipt;
(7) to ascertain whether a lobbyist has failed to comply fully and
accurately with the disclosure requirements of this chapter and promptly
notify the person to file the necessary notices and reports to satisfy the
requirements of this chapter or regulations promulgated by the
commission under this chapter;
(8) to have information, so compiled and summarized, made
available for public inspection and copying within thirty days after the
close of each filing period;
(9) to receive complaints and make investigations with respect to
the notices and reports filed under the provisions of this chapter, and
with respect to alleged failure to file a statement or reports required
under the provisions of this chapter, and, upon complaint by an
individual, with respect to alleged violations of any part of this chapter;
(10) to prepare a special study or report upon request of any
member of the House of Representatives or the Senate from information
in the records of the State Ethics Commission;
(11) to prepare and publish those other reports as considered
appropriate;
(12) to recommend to the General Assembly legislation considered
necessary to carry out the purposes of this chapter.
Section 2-18-70. No person may be employed as a lobbyist for
compensation dependent upon the passage or defeat of any proposed
legislation or administration matter or upon any other contingency
connected with the action of the Governor, the General Assembly, or
any committee of it, or any state agency.
Section 2-18-80. A lobbyist who violates the provisions of this
chapter where the lobbyist either knew or should have known that the
action was in violation of this chapter, a person who falsifies all or part
of a notice of representation or report which he files with the State
Ethics Commission under this chapter, or a person who falsifies or
forges all or part of a communication to influence legislative or
executive action is guilty of a misdemeanor and, upon conviction, must
be punished by a fine of not more than five hundred dollars or
imprisoned for not more than one year, or both. In addition, a lobbyist
convicted of a violation under the provisions of this section is barred
from acting as a lobbyist for a period of three years from the date of the
conviction.
Section 2-18-90. The wilful filing of a complaint by a person with
the State Ethics Commission without just cause or with malice is a
misdemeanor, and the person filing a complaint, upon conviction, must
be fined not more than five hundred dollars or imprisoned for not more
than one year, or both. In lieu of the criminal penalty provided by this
section, a civil penalty of no more than one thousand dollars may be
assessed against the complainant upon proof, by a preponderance of the
evidence, that the filing of the complaint was wilful and without just
cause or with malice.
Section 2-18-100. (A) No lobbyist or employer of a lobbyist
may extend an invitation for a function paid for by a lobbyist to a
member unless the entire membership of the House of Representatives,
the Senate, or the General Assembly is invited, or one of its standing
committees or standing subcommittees or caucuses is invited, or an
entire county legislative delegation, or the House of Representatives,
Senate, or General Assembly is invited.
(B) No member may attend a function paid for by a lobbyist or
employer of a lobbyist, unless the entire membership of the House of
Representatives, the Senate, or the General Assembly is invited, or one
of the standing committees or subcommittees or caucuses is invited, or
an entire county of the House of Representatives, Senate, or General
Assembly delegation is invited."
SECTION 2. Section 8-13-20 of the 1976 Code, as last amended by
Act 606 of 1988, is further amended by adding at the end:
"(m) `Compensation' means any money, thing of value, or
economic benefit conferred on or received by a person."
SECTION 3. The 1976 Code is amended by adding:
"Section 8-13-425. (A) A public official holding an
elective position, a candidate for the office, any committee working on
behalf of a candidate for office, or a duly organized group or political
party receiving or soliciting funds for the support of a political candidate
or candidates for the office may not accept a contribution:
(1) of currency of the United States or currency of a foreign
country from a contributor which, in the aggregate from that contributor,
exceeds fifty dollars for a given campaign;
(2) from a registered lobbyist or lobbyist's employer in an
amount to exceed two hundred fifty dollars for a given campaign;
(3) from a corporation, bank, or labor organization.
(B) No public official may accept campaign contributions on the
State House complex, including the Gressette Building, the Blatt
Building, the State House and other state-owned property.
(C) A candidate for office, or a public official, may not use
campaign funds for personal use.
(D) No public official or public employee acting in an official
capacity may receive a cash honorarium for speaking before public or
private groups, other than for actual expenses incurred."
SECTION 4. Section 8-13-420 of the 1976 Code is amended to read:
"Section 8-13-420. Whoever gives or offers to any public
official or public employee any compensation including a promise of
future employment to influence his action, vote, opinion or judgment as
a public official or public employee or such public official solicits or
accepts such compensation to influence his action, vote, opinion or
judgment shall be subject to the punishment as provided by Sections
16-9-210 and 16-9-220. The provisions of this section shall not apply to
political contributions unless such contributions are conditioned upon
the performance of specific actions of the person accepting such
contributions nor shall they prohibit a parent, grandparent or relative
from making a gift to a child, grandchild, or other close relative for love
and affection except as hereinafter provided. (A) No
public official or public employee may receive, accept, take, seek, or
solicit, directly or indirectly, anything of value, including employment
or the promise of future employment, as a gift, gratuity, or favor
from:
(1) a person if there is reason to believe the donor
would not give the gift, gratuity, or favor but for the official's or
employee's office or position;
(2) a person, or from an officer or director of the
person, if the public official or public employee has reason to believe the
person:
(a) has or is seeking to obtain contractual or
other business or financial relationships with the official's or employee's
agency if the purpose of the gift, gratuity, or favor is related to the
official's or employee's office or position; or
(b) conducts operations or activities which are
regulated by the official's or employee's agency if the purpose of the gift,
gratuity, or favor is related to the official's or employee's office or
position.
(B) Whoever gives or offers to a public official or public
employee, or a public official or public employee who receives, accepts,
takes, seeks, or solicits any compensation or anything of value as
provided in subsection (A) is subject to the punishment as provided by
Sections 16-9-210 and 16-9-220.
(C) Except for campaign contributions, or as provided by
regulations of the State Ethics Commission, no public official or public
employee shall solicit or receive a gift, compensation, money, or
anything of value from a person registered as a lobbyist or working for
a lobbyist entity, or an employer of a lobbyist, except for food and
beverage consumed at a function, meeting or social event, to which the
entire membership of the House of Representatives, the Senate, or the
General Assembly is invited, one of its standing committees or
subcommittees is invited, or an entire county delegation, of the House,
the Senate, or the General Assembly is invited. A public official or
public employee is not prohibited from receiving a memento of the
occasion or award in the form of a plaque, certificate, or other award
having value only to the recipient.
(D) Every public official who receives compensation in excess of
one thousand dollars during one calendar year from any person which
employs, either directly or indirectly, a lobbyist shall report this
compensation to the State Ethics Commission."
SECTION 5. Section 8-13-620 of the 1976 Code is amended to
read:
"Section 8-13-620. Any candidate for office or any
committee working on behalf of a candidate for office, or any duly
organized group or political party receiving or soliciting funds for the
support of a political candidate or candidates shall maintain a record of
all funds and contributions received, with the name and amount of each
individual or group contributing more than one hundred dollars and to
what candidate such contribution was made. Duplicate, certified
originals of such list showing the names of all contributors of more than
one hundred dollars shall be filed with the appropriate supervisory office
within thirty days after each election in which such contributions are
sought or received. Any such candidate, or committee, or group or party
shall maintain a current list of all contributors in the amount of more
than one hundred dollars during the two-week period prior to the
election, which shall be open to public inspection upon request. When
a final list is filed with the supervisory office such candidate or group
receiving such funds shall file a certified report stating the amounts
expended and for what purposes, how much is retained and what its
ultimate distribution shall be.
A candidate for office or a committee working on behalf of a
candidate for office, or duly organized group or political party receiving
or soliciting funds for the support of a political candidate or candidates
shall maintain a record of all funds and contributions received, with the
name and amount of each individual or group contributing and to what
candidate the contribution was made. Duplicate certified originals of the
list showing the names of all contributors must be filed with the State
Ethics Commission within ten days after the end of each calendar
quarter in which funds are received or expended preceding an election
and within thirty days after each election in which such contributions are
sought or received. The candidate, committee, group, or party shall
maintain a current list of all contributors during the two-week period
before the election, which must be open to public inspection upon
request. When a final list is filed with the State Ethics Commission, the
candidate or group receiving the funds shall file a certified report stating
the amounts expended and for what purposes, how much is retained, and
what is its ultimate distribution."
SECTION 6. Chapter 17, Title 2, of the 1976 Code is repealed.
SECTION 7. This act takes effect upon approval by the Governor.
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