Senate ethics committee hears bill to extend state lobbying rules to local governments; debate delayed

Senator Bennett, the bill sponsor, told the Senate ethics committee that bill XS 632 would extend state-level lobbying and ethics requirements to local governments so "persons and entities at [the] local level [would] be required to register at the state just like anybody else," file lobbying reports and face the same penalties as state lobbyists.

The measure, Bennett said, is intended to "shed sunlight and make sure that people know who's lobbying their local officials" amid rapid growth and development in parts of the state that have raised public concern about how local decisions are made. Bennett told the committee the ethics panel has endorsed the bill but that some "tweaks" will likely be needed to account for different local government structures.

Committee members pressed Bennett on the bill's scope. A senator from Greenville asked whether sponsors intended to bar a local elected official from serving as a registered state-level lobbyist or to prevent the spouse of a local official from lobbying. Senator Richland asked whether the provision he read (section 2-17-80/section 17) would prohibit lobbyists from making contributions to local elected officials, citing his own experience receiving contributions from local residents who worked in advocacy-related professions. "So in essence, what you're trying to accomplish, is having ... the conduct or behavior of lobbyists at the local level mirror the conduct here or practices at state level as well. Right?" Richland asked.

Bennett said the intent is accountability, not punishment, and that the bill is meant to operate like ethics rules in other professions: "We choose to operate by rules and regulations, just like the legal field does, just like the financial planning field does." He acknowledged local governments may operate differently and welcomed discussion about appropriate adjustments.

Municipal stakeholders testified they are working with sponsors to refine the bill. Webster Hall of the Municipal Association of South Carolina introduced himself to the committee and said the association "initially had some concerns with XS 632" but is "working with [Senator Bennett] and staff on a couple of amendments currently." John Dworkin of the Greenville City Council told the committee, "I think anytime that you shed light on the process, increase transparency in the process of whatever level of government is a good thing." Taft Matney also echoed support for the effort, urging collaboration on changes.

Committee members discussed logistics: a senator noted the City of Columbia already maintains a lobbyist registry available at the city clerk's office and asked whether the bill-prescribed form would be posted on the Ethics Commission website and whether local governments would be required to keep copies so citizens could find who is lobbying. Bennett said the registration and records would be systematized and available through the commission's site.

The chair told the committee Ken Moffat is drafting an amendment to clarify that a registered lobbyist could still serve on a local council or board. Citing time constraints and the bill's length — "a 14-page bill," the chair said — the committee did not vote and chose to carry XS 632 over until a later hearing so members could review proposed amendments. The hearing was adjourned without final action on the bill.

The committee is expected to reconvene on XS 632 once amendments are circulated and members have had time to review the proposed language.