South Carolina General Assembly
109th Session, 1991-1992

Bill 3295


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Introducing Body:               House
Bill Number:                    3295
Primary Sponsor:                G. Bailey
Committee Number:               25
Type of Legislation:            GB
Subject:                        Lobbyists and lobbying
Residing Body:                  House
Current Committee:              Judiciary
Computer Document Number:       JIC/5236.HC
Introduced Date:                Jan 23, 1991
Last History Body:              House
Last History Date:              Jan 23, 1991
Last History Type:              Introduced, read first time,
                                referred to Committee
Scope of Legislation:           Statewide
All Sponsors:                   G. Bailey
Type of Legislation:            General Bill



History


 Bill  Body    Date          Action Description              CMN
 ----  ------  ------------  ------------------------------  ---
 3295  House   Jan 23, 1991  Introduced, read first time,    25
                             referred to Committee

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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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