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Committee Report

March 06, 2024

 

H. 4561

 

Introduced by Reps. Wetmore, Dillard, Collins, Erickson, B. Newton, Schuessler, J. L. Johnson, Pope, Clyburn, Henegan, Pendarvis and Caskey

 

S. Printed 03/06/24--H.

Read the first time January 09, 2024

 

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The committee on House Judiciary

To whom was referred a Bill (H. 4561) to amend the South Carolina Code of Laws by amending Section 8-13-1348, relating to use of campaign funds for personal expenses, so as to allow a candidate or public, etc., respectfully

Report:

That they have duly and carefully considered the same, and recommend that the same do pass with amendment:

 

    Amend the bill, as and if amended, SECTION 1, by striking Section 8-13-1348(A)(1), (2), (3), and (4) and inserting:

    (A)(1) No candidate, committee, public official, or political party may use campaign funds to defray personal expenses which are unrelated to the campaign or the office if the candidate is an officeholder nor may these funds be converted to personal use.  The prohibition of this subsection does not extend to:

       (a) the incidental personal use of campaign materials or equipment; nor to

       (b) an expenditure used to defray any ordinary expenses incurred in connection with an individual's duties as a holder of elective office;

       (c) an expenditure used to defray dependent care expenses incurred in connection with a candidate's campaign for the time in which the candidate is engaging in campaign activity and the expenses would not exist in the absence of the campaign; or

       (d) an expenditure used to defray dependent care expenses incurred in connection with a public official's duties for his or her public office and the expenses would not exist in the absence of the public official carrying out these duties.

    (2)(a) For purposes of subsections (A)(1)(c) and (A)(1)(d), "dependent care" means the direct care, protection, and supervision of an immediate family member that is either a minor or that has a disability or medical condition for whom the candidate or the public official has direct caregiving responsibility. In addition, campaign funds may only be used to defray dependent care expenses if the dependent care is given by a provider that is licensed in this State to provide the type of care needed by the candidate's or public official's immediate family member. However, a non-licensed provider may be used if no licensed provider is available so long as the dependent care is not being provided by a family member, as defined by Section 8-13-1300(14).

           (b) For purposes of subsections (A)(1)(c) and (A)(1)(d), a record of the time, date, and location of the campaign or official duty must be kept for four years and made available to the State Ethics Commission upon request.

 

Renumber sections to conform.

Amend title to conform.

 

W. NEWTON for Committee.

 

 

statement of estimated fiscal impact

Explanation of Fiscal Impact

State Expenditure

This bill allows a candidate or public official to use campaign funds to defray personal expenses for dependent care expenses incurred in connection with their campaign in certain circumstances.  Campaign funds may only be used to defray dependent care expenses if the dependent care is given by a provider that is licensed in South Carolina to provide the type of care needed by the candidate's or public official's immediate family member.

 

The State Ethics Commission anticipates an increase in the number of complaints filed each fiscal year because allowing individuals to pay child care expenses for campaign activities or public official duties may lead to violations of the Ethics Act.  If the increase in complaints filed is minimal, the Commission anticipates being able to manage the provisions of the bill with existing staff and resources.  However, if the increase is significant, the Commission will need an undetermined number of additional staff to process and investigate complaints.  Therefore, the expenditure impact of this bill on the Commission is undetermined and will depend on the number of additional complaints filed as a result of the bill.

 

State Revenue

The State Ethics Commission reports that if a complaint is filed, and the candidate or public official is found to be in violation of the law, the Commission can assess a fine of up to $2,000 per violation.  Since both the number of filed complaints and violations is unknown, the increase in Other Funds revenue to the Commission is undetermined.

 

 

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

 

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A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 8-13-1348, RELATING TO USE OF CAMPAIGN FUNDS FOR PERSONAL EXPENSES, SO AS TO ALLOW A CANDIDATE OR PUBLIC OFFICIAL TO USE CAMPAIGN FUNDS FOR DEPENDENT CARE OF AN IMMEDIATE FAMILY MEMBER IN CERTAIN CIRCUMSTANCES AND TO DEFINE "DEPENDENT CARE".

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.  Section 8-13-1348(A) of the S.C. Code is amended to read:

 

    (A) No candidate, committee, public official, or political party may use campaign funds to defray personal expenses which are unrelated to the campaign or the office if the candidate is an officeholder nor may these funds be converted to personal use.  The prohibition of this subsection does not extend to:

       (1) the incidental personal use of campaign materials or equipment; nor to

       (2) an expenditure used to defray any ordinary expenses incurred in connection with an individual's duties as a holder of elective office;

       (3) an expenditure used to defray dependent care expenses incurred in connection with a candidate's campaign for the time in which the candidate is engaging in campaign activity and the expenses would not exist in the absence of the campaign; or

       (4) an expenditure used to defray dependent care expenses incurred in connection with a public official's duties for his or her public office and the expenses would not exist in the absence of the public official carrying out these duties.

For purposes of this subsection, "dependent care" means the direct care, protection, and supervision of an immediate family member that is either a minor or that has a disability or medical condition for whom the candidate or the public official has direct caregiving responsibility. In addition, campaign funds may only be used to defray dependent care expenses if the dependent care is given by a provider that is licensed in this State to provide the type of care needed by the candidate's or public official's immediate family member.

 

SECTION 2.  This act takes effect upon approval by the Governor.

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