1 South Carolina General Assembly 2 115th Session, 2003-2004 3 4 H. 5042 5 6 STATUS INFORMATION 7 8 General Bill 9 Sponsors: Reps. Wilkins, Harrison and Jennings 10 Document Path: l:\council\bills\ms\7231dw04.doc 11 12 Introduced in the House on March 30, 2004 13 Introduced in the Senate on April 27, 2004 14 Last Amended on June 2, 2004 15 Currently residing in the House 16 17 Summary: Registering of lobbyist and lobbyist principals 18 19 20 HISTORY OF LEGISLATIVE ACTIONS 21 22 Date Body Action Description with journal page number 23 3/30/2004 House Introduced and read first time HJ-4 24 3/30/2004 House Referred to Committee on Judiciary HJ-4 25 4/21/2004 House Member(s) request name added as sponsor: Jennings 26 4/21/2004 House Committee report: Favorable with amendment Judiciary HJ-34 27 4/22/2004 House Amended HJ-57 28 4/22/2004 House Read second time HJ-59 29 4/22/2004 House Unanimous consent for third reading on next legislative day HJ-59 30 4/23/2004 House Read third time and sent to Senate HJ-3 31 4/27/2004 Senate Introduced and read first time SJ-12 32 4/27/2004 Senate Referred to Committee on Judiciary SJ-12 33 5/26/2004 Senate Committee report: Favorable with amendment Judiciary SJ-18 34 5/27/2004 Senate Amended SJ-268 35 5/27/2004 Senate Read second time SJ-268 36 5/27/2004 Senate Ordered to third reading with notice of amendments SJ-268 37 6/2/2004 Senate Amended SJ-120 38 6/2/2004 Senate Read third time and returned to House with amendments SJ-120 39 6/3/2004 House Non-concurrence in Senate amendment HJ-83 40 41 42 VERSIONS OF THIS BILL 43 44 3/30/2004 45 4/21/2004 46 4/22/2004 47 5/26/2004 48 5/27/2004 49 6/2/2004 50 1 Indicates Matter Stricken 2 Indicates New Matter 3 4 AS PASSED BY THE SENATE 5 June 2, 2004 6 7 8 9 10 11 12 H. 5042 13 14 Introduced by Reps. Wilkins, Harrison and Jennings 15 16 S. Printed 6/2/04--S. 17 Read the first time April 27, 2004. 18 19

1 [5042-1] 1 2 3 4 5 6 7 8 9 A BILL 10 11 TO AMEND SECTIONS 2-17-20 AND 2-17-25, BOTH AS 12 AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, 13 RELATING TO REGISTRATION BY LOBBYISTS AND 14 LOBBYIST’S PRINCIPALS, SO AS TO PROVIDE THAT 15 LOBBYISTS AND LOBBYIST’S PRINCIPALS MAY NOT 16 REGISTER OR REREGISTER UNTIL ALL LATE FILING 17 PENALTIES ARE PAID; TO AMEND SECTION 2-17-50, AS 18 AMENDED, RELATING TO THE REQUIREMENT THAT THE 19 STATE ETHICS COMMISSION ENFORCE FILING 20 REQUIREMENTS OF CHAPTER 17, TITLE 2, SO AS TO 21 CHANGE THE ASSESSMENT OF THE FINE AFTER A 22 REQUIRED STATEMENT HAS BEEN FILED AND THE 23 REQUIRED NOTICE HAS BEEN GIVEN; TO AMEND 24 SECTION 8-13-320, AS AMENDED, RELATING TO THE 25 DUTIES AND POWERS OF THE STATE ETHICS 26 COMMISSION, SO AS TO CLARIFY THAT ALL 27 INVESTIGATIONS, INQUIRIES, HEARINGS, AND 28 ACCOMPANYING DOCUMENTS MUST BE CONFIDENTIAL 29 UNTIL FINAL DISPOSITION OF A MATTER UNLESS THE 30 RESPONDENT WAIVES THIS RIGHT BY WRITTEN 31 AUTHORIZATION TO THE COMMISSION; TO AMEND 32 SECTION 8-13-700, AS AMENDED, RELATING TO THE 33 PROHIBITION OF A PUBLIC OFFICIAL, PUBLIC MEMBER, 34 OR PUBLIC EMPLOYEE USING HIS OFFICIAL POSITION 35 FOR PERSONAL GAIN, SO AS TO EXPAND THE 36 PROHIBITION TO INCLUDE A FAMILY MEMBER INSTEAD 37 OF A MEMBER OF HIS IMMEDIATE FAMILY; TO AMEND 38 SECTION 8-13-1125, AS AMENDED, RELATING TO THE 39 EXCEPTION TO THE REPORTING REQUIREMENT IN 40 SECTION 8-13-1120 (A)(9) FOR EVENTS TO WHICH THE 41 ENTIRE LEGISLATIVE BODY IS INVITED, SO AS TO 42 AUTHORIZE THE EXCEPTION FOR THE ENTIRE

1 [5042] 1 1 MEMBERSHIP OF A STANDING COMMITTEE OR COUNTY 2 LEGISLATIVE DELEGATION IF PROPER RECORDS ARE 3 MAINTAINED AND MADE AVAILABLE TO THE PUBLIC 4 FOR INSPECTION AND COPYING; AND TO AMEND 5 SECTION 8-13-1308, AS AMENDED, RELATING TO FILING 6 OF CERTIFIED CAMPAIGN REPORTS BY CANDIDATES 7 AND COMMITTEES, SO AS TO CLARIFY THAT IF A 8 MUNICIPAL ELECTION IS NOT HELD PURSUANT TO 9 SECTION 7-13-190, THE CANDIDATE SHALL FILE A 10 CAMPAIGN DISCLOSURE REPORT WITHIN FIFTEEN 11 DAYS OF BEING DECLARED A WINNER OR FIFTEEN 12 DAYS BEFORE THE ESTABLISHED ELECTION DATE, 13 WHICHEVER DATE IS SOONER. 14 Amend Title To Conform 15 16 Be it enacted by the General Assembly of the State of South 17 Carolina: 18 19 SECTION 1. Section 2-17-10 of the 1976 Code, as amended by 20 Act 248 of 1991, is further amended by adding an appropriately 21 numbered section as follows: 22 23 “( ) ‘Freshman legislators’ means members of the General 24 Assembly serving their first session following their first election or 25 their first election following any interruption in their continuous 26 terms of service in the General Assembly.” 27 28 SECTION 2. Section 2-17-10(11) of the 1976 Code, as amended 29 by Act 248 of 1991, is further amended to read: 30 31 “(11) ‘Legislative caucus’ means: 32 (a) a committee of either house of the General Assembly 33 controlled by the caucus of a political party or a caucus based upon 34 racial or ethnic affinity, or gender, or a caucus comprised of 35 freshman legislators;. However, each house may establish only 36 one committee for each political-, racial-, ethnic-, gender-, or 37 freshman-based affinity; or 38 (b) a party or group of either house of the General Assembly 39 based upon racial or ethnic affinity, or gender, or status as a 40 freshman legislator. However, each house may establish only one 41 committee for each racial-, ethnic-, or gender- based affinity.” 42 43

1 [5042] 2 1 SECTION 3. Section 2-17-20(C) of the 1976 Code, as last 2 amended by Act 76 of 2003, is further amended to read: 3 4 “(C) Each lobbyist who ceases to engage in lobbying requiring 5 him to register pursuant to the provisions of this section shall file a 6 written statement with the State Ethics Commission 7 acknowledging the termination of lobbying. The written statement 8 of termination is effective immediately, except that the provisions 9 of Sections 2-17-80(A)(5), 2-17-80(B)(5), 2 - 17 - 80(B), 2 - 17 - 80(C) 10 (5), 2-17-110(C), and 2-17-110(F) continue in force and effect for 11 the remainder of the calendar year in which the lobbyist was 12 registered, regardless of the date of the termination statement filed 13 with the State Ethics Commission. Each lobbyist who files a 14 written statement of termination pursuant to the provisions of this 15 section must file reports required by this chapter for any reporting 16 period during which the lobbyist was registered pursuant to the 17 provisions of this section.” 18 19 SECTION 4. Section 2-17-20(H) of the 1976 Code, as last 20 amended by Act 248 of 1991, is further amended to read: 21 22 “(H) The State Ethics Commission shall not allow a lobbyist to 23 register or reregister under this section until the lobbyist complies 24 with the reporting requirements under Section 2-17-30, pays all 25 late filing penalties in accordance with Section 2 - 17 - 50, and pays 26 all fines in accordance with Section 8 - 13 - 320.” 27 28 SECTION 5. Section 2-17-25(C) of the 1976 Code, as last 29 amended by Act 76 of 2003, is further amended to read: 30 31 “(C) Each lobbyist’s principal who ceases to authorize lobbying 32 requiring him to register pursuant to this section must file a written 33 statement with the State Ethics Commission acknowledging the 34 termination of lobbying. The written statement of termination is 35 effective immediately, except that the provisions of Sections 36 2-17-80(A)(5), 2-17-80(B)(5), 2 - 17 - 80(B), 2 - 17 - 80(C)(5), 37 2-17-110(C), and 2-17-110(F) continue in force and effect for the 38 remainder of the calendar year in which the lobbyist’s principal 39 was registered, regardless of the date of the termination statement 40 filed with the State Ethics Commission. Each lobbyist’s principal 41 who files a written statement of termination pursuant to this 42 section shall file reports required by this chapter for any reporting

1 [5042] 3 1 period during which the lobbyist’s principal was registered 2 pursuant to this section.” 3 4 SECTION 6. Section 2-17-25(H) of the 1976 Code, as last 5 amended by Act 248 of 1991, is further amended to read: 6 7 “(H) The State Ethics Commission shall not allow a lobbyist’s 8 principal to register or reregister under this section until the 9 lobbyist’s principal complies with the reporting requirements 10 under Section 2-17-35, pays all late filing penalties in accordance 11 with Section 2 - 17 - 50, and pays all fines in accordance with Section 12 8 - 13 - 320.” 13 14 SECTION 7. Section 2-17-50(A)(2)(b) of the 1976 Code, as last 15 amended by Act 248 of 1991, is further amended to read: 16 17 “(b) after notice has been given by certified or registered mail 18 by the State Ethics Commission that a required statement has not 19 been filed, a fine of ten dollars a day for each additional calendar 20 day in which the required statement is not filed, not to exceed a 21 total fine of five hundred dollars for the first ten days after notice 22 has been given, and one hundred dollars for each additional 23 calendar day in which the required statement is not filed.” 24 25 SECTION 8. Section 2-17-80 of the 1976 Code, as last amended 26 by Act 248 of 1991, is further amended to read: 27 28 “Section 2-17-80. (A) A lobbyist or a person acting on behalf 29 of a lobbyist shall not offer, solicit, facilitate, or provide to or on 30 behalf of any member of the General Assembly, the Governor, the 31 Lieutenant Governor, any other statewide constitutional officer, 32 any public official of any state agency who engaged in covered 33 agency actions, or any of their employees any of the following: 34 (1) lodging; 35 (2) transportation; 36 (3) entertainment; or 37 (4) food, meals, beverages, money, or any other thing of 38 value other than; (5) contributions, as defined in Section 39 8-13-1300(7). 40 (B) A lobbyist or a person acting on behalf of a lobbyist shall 41 not offer, solicit, or provide contributions, as defined in Section 42 8 - 13 - 1300(7), to or on behalf of any member of the General 43 Assembly, the Governor, the Lieutenant Governor, any other

1 [5042] 4 1 statewide constitutional officer, any public official of any state 2 agency who engaged in covered agency actions, or any of their 3 employees. 4 (C) A member of the General Assembly, the Governor, the 5 Lieutenant Governor, any other statewide constitutional officer, 6 any public official of any state agency who engaged in covered 7 agency actions, or any of their employees shall not solicit or 8 receive from a lobbyist or a person acting on behalf of a lobbyist 9 any of the following: 10 (1) lodging; 11 (2) transportation; 12 (3) entertainment; 13 (4) food, meals, beverages, money, or any other thing of 14 value; 15 (5) contributions, as defined in Section 8-13-1300(7). 16 (C)(D) Subsections (A)(1) through (A)(4) and subsections (B) 17 (C)(1) through (B)(C)(4) of this section do not apply to the 18 furnishing of lodging, transportation, entertainment, food, meals, 19 beverages, or any other thing of value which also is furnished on 20 the same terms or at the same expense to a member of the general 21 public without regard to status as a public official or public 22 employee. 23 (D)(E) Subsections (A)(1), (A)(2), (B)(C)(1), and (B)(C)(2) of 24 this section do not apply to the rendering of emergency assistance 25 given gratuitously and in good faith by a lobbyist, a lobbyist’s 26 principal, or any person acting on behalf of a lobbyist or a 27 lobbyist’s principal to any member of the General Assembly, the 28 Governor, the Lieutenant Governor, any other statewide 29 constitutional officer, any public official of any state agency who 30 engaged in covered agency actions, or any of their employees. 31 (E)(F) Subsections (A), and (B), and (C) do not apply to 32 anything of value given to a family member for love and 33 affection.” 34 35 SECTION 9. The penultimate paragraph of Section 7-11-15 of 36 the 1976 Code is amended to read: 37 38 “If, after the closing of the time for filing statements of intention 39 of candidacy, but before the date of the primary, there are not more 40 than two candidates for any one office and one or more of the 41 candidates dies, or withdraws, the state or county committee, as 42 the case may be applicable, if the nomination is by political party 43 primary or political party convention only may, in its discretion,

1 [5042] 5 1 may afford opportunity for the entry of other candidates for the 2 office involved; however, for the office of State House of 3 Representatives or State Senator, the discretion must be exercised 4 by the state committee. If a state or county committee decides to 5 re-open filing for any office pursuant to this paragraph, the filing 6 period shall not exceed two weeks from the date of the death or 7 withdrawal, but in no case shall extend beyond the date of the 8 primary.” 9 10 SECTION 10. Section 8-13-320(10)(g) of the 1976 Code, as last 11 amended by Act 184 of 1993, is further amended to read: 12 13 “(g) All investigations, inquiries, hearings, and accompanying 14 documents must remain confidential until final disposition of a 15 matter unless the respondent waives the right to confidentiality by 16 written authorization to the State Ethics Commission. The wilful 17 release of confidential information is a misdemeanor, and any 18 person releasing such confidential information, upon conviction, 19 must be fined not more than one thousand dollars or imprisoned 20 not more than one year.” 21 22 SECTION 11. Section 8-13-1125 of the 1976 Code, as last 23 amended by Act 6 of 1995, is further amended to read: 24 25 “Section 8-13-1125. Notwithstanding Sections 2-17-90(C) and 26 8-13-710, the reporting requirement of Section 8-13-1120(A)(9) 27 does not apply to an event to which a member of the General 28 Assembly is invited by a lobbyist’s principal, regardless of 29 whether or not the member attended the event, if the invitation was 30 extended to: 31 (1) the entire membership of the House, Senate, or General 32 Assembly, and the invitation was accepted by the House or Senate 33 Invitations Committee pursuant to House or Senate rules; or 34 (2) the entire membership of a standing committee, joint 35 committee, or county legislative delegation.” 36 37 SECTION 12. Section 8-13-1300(7) of the 1976 Code, as last 38 amended by Act 76 of 2003, is further amended to read: 39 40 [From and after November 3, 2004, this paragraph reads as 41 follows:] 42 “(7)(A) ‘Contribution’ means a gift, subscription, loan, 43 guarantee upon which collection is made, forgiveness of a loan, an

1 [5042] 6 1 advance, in-kind contribution or expenditure, a deposit of money, 2 or anything of value made to a candidate or committee to influence 3 an election; or payment or compensation for the personal service 4 of another person which is rendered for any purpose to a candidate 5 or committee without charge, whether any of the above are made 6 or offered directly or indirectly. Contributions expended to 7 influence the outcome of an elective office, as defined by Section 8 8 - 13 - 1300(31)(c), and which do not expressly advocate a vote for 9 or against a candidate, or, when taken in context, have no 10 reasonable meaning other than to urge the election or defeat of a 11 clearly identified candidate, must be disclosed in the same manner 12 as contributions disclosed pursuant to Section 8 - 13 - 1308(F), but 13 are not subject to the contribution limits of Section 8 - 13 - 1322. 14 (B) ‘Contribution’ does not include: (a) volunteer personal 15 services on behalf of a candidate or committee for which the 16 volunteer or any person acting on behalf of or instead of the 17 volunteer receives no compensation either in cash or in-kind, 18 directly or indirectly, from any source; or (b) a gift, subscription, 19 loan, guarantee upon which collection is made, forgiveness of a 20 loan, an advance, in-kind contribution or expenditure, a deposit of 21 money, or anything of value made to a committee, other than a 22 candidate committee, and which is used to pay for communications 23 made not more than forty-five days before the election to influence 24 the outcome of an elective office as defined in Section 25 8-13-1300(31)(c) and which does not promote or support or attack 26 or oppose a candidate. 27 These funds Funds, which do not constitute contributions 28 pursuant to this subsection, must be deposited in an account 29 separate from a campaign account as required in Section 30 8-13-1312.” 31 32 SECTION 13. Section 8-13-1300 of the 1976 Code, as last 33 amended by Act 76 of 2003, is amended by adding an 34 appropriately numbered item to read: 35 36 “( ) ‘Freshman legislators’ means members of the General 37 Assembly serving their first session following their first election or 38 their first election following any interruption in their continuous 39 terms of service in the General Assembly.” 40 41 SECTION 14. Section 8-13-1300(21) of the 1976 Code, as last 42 amended by Act 76 of 2003 is amended to read: 43

1 [5042] 7 1 [From and after November 3, 2004, this paragraph reads as 2 follows:] 3 “(21) ‘Legislative caucus committee’ means: 4 (a) a committee of either house of the General Assembly 5 controlled by the caucus of a political party or a caucus based upon 6 racial or ethnic affinity, or gender, or a caucus comprised of 7 freshman legislators;. however However, each house may 8 establish only one committee for each political-, racial-, ethnic-, or 9 gender-, or freshman-based affinity; or 10 (b) a party or group of either house of the General Assembly 11 based upon racial or ethnic affinity, or gender, or status as a 12 freshman legislator.” 13 14 SECTION 15. Section 8-13-1308(D) of the 1976 Code, as last 15 amended by Act 76 of 2003, is further amended to read: 16 17 [From and after November 3, 2004, this subsection reads as 18 follows:] 19 “(D)(1) At least fifteen days before an election, a certified 20 campaign report must be filed showing contributions of more than 21 one hundred dollars and expenditures to or by the candidate or 22 committee for the period ending twenty days before the election. 23 The candidate or committee must maintain a current list during the 24 period before the election commencing at the beginning of the 25 calendar quarter of the election of all contributions of more than 26 one hundred dollars and expenditures. The list must be open to 27 public inspection upon request. 28 (2) A committee immediately shall file a campaign report 29 listing expenditures if it makes an independent expenditure or an 30 incurred expenditure within the calendar quarter in which the 31 election is conducted or twenty days before the election, whichever 32 period of time is greater, in excess of: 33 (a) ten thousand dollars in the case of a candidate for 34 statewide office; or 35 (b) two thousand dollars in the case of a candidate for any 36 other office. 37 (3) In the event of a runoff election, candidates or 38 committees are not required to file another campaign report in 39 addition to the reports already required under this section. 40 However, records must remain open to public inspection upon 41 request between the election and the runoff. 42 (4) If a municipal election is not held pursuant to Section 43 7 - 13 - 190(E), the candidate shall file a campaign disclosure report

1 [5042] 8 1 within fifteen days of being declared a winner or fifteen days 2 before the established election date, whichever is earlier.” 3 4 SECTION 16. Section 8-13-1312 of the 1976 Code, as last 5 amended by Act 76 of 2003, is further amended to read: 6 7 [From and after November 3, 2004, this section reads as 8 follows:] 9 10 “Section 8-13-1312. Except as is required for the separation of 11 funds and expenditures under the provisions of Section 12 8-13-1300(7), a candidate shall not establish more than one 13 campaign checking account and one campaign savings account for 14 each office sought, and a committee shall not establish more than 15 one checking account and one savings account unless federal or 16 state law requires additional accounts. For purposes of this article, 17 certificates of deposit or other interest bearing instruments are not 18 considered separate accounts. A candidate’s accounts must be 19 established, upon receipt of an aggregate sum of five hundred 20 dollars, in a financial institution that conducts business within the 21 State and in an office located within the State that conducts 22 business with the general public. The candidate or a duly 23 authorized officer of a committee must maintain the accounts in 24 the name of the candidate or committee. An acronym must not be 25 used in the case of a candidate’s accounts. An acronym or 26 abbreviation may be used in the case of a committee’s accounts if 27 the acronym or abbreviation commonly is known or clearly 28 recognized by the general public. Except as otherwise provided 29 under Section 8-13-1348(C), expenses paid on behalf of a 30 candidate or committee must be drawn from the campaign account 31 and issued on a check signed by the candidate or a duly authorized 32 officer of a committee. All contributions received by the candidate 33 or committee, directly or indirectly, must be deposited in the 34 campaign account by the candidate or committee within ten days 35 after receipt. All contributions received by an agent of a candidate 36 or committee must be forwarded to the candidate or committee not 37 later than five days after receipt. A contribution must not be 38 deposited until the candidate or committee receives information 39 regarding the name and address of the contributor. If the name and 40 address cannot be determined within seven days after receipt, the 41 contribution must be remitted to the Children’s Trust Fund.” 42

1 [5042] 9 1 SECTION 17. This act takes effect upon approval by the 2 Governor except that: Section 8-13-1125 as contained in 3 SECTION 11 takes effect January 1, 2005; Section 2-17-10 as 4 contained in SECTION 1, Section 2-17-10(11) as contained in 5 SECTION 2, Section 7-11-15 as contained in SECTION 9, Section 6 8-13-1300(7) as contained in SECTION 12, Section 8-13-1300 as 7 contained in SECTION 13, Section 8-13-1300(21) as contained in 8 SECTION 14, Section 8-13-1308(D) as contained in SECTION 9 15, and Section 8-13-1312 as contained in SECTION 16 take 10 effect November 3, 2004. 11 ----XX---- 12

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