Charleston Business Journal > May 1, 2006 > News
Proposed PAC bill puts spotlight on political fundraising

By Shelia Watson
Contributing Writer

Legislation was introduced last month in the state House of Representatives that opponents of leadership political action committees hope will end the influence of big-money contributions on politics.

But some argue the PAC money is generated legitimately and is being put to good use.

Rep. Dan Tripp, R-Greenville, submitted the bill on April 13. Thirteen members of the House are sponsoring the legislation, which is designed to eliminate leadership PACs altogether.

“Leadership PACs are violating the spirit of the ethics law,” said Tripp, who has announced he will not seek re-election in November.

The proposed legislation would ban leadership PACs from contributing to campaigns and would prohibit specific expenditures, such as campaign mailings.

The bill was sent to the House Judiciary Committee. A hearing has not yet been scheduled.

According to the State Ethics Commission, there were 630 political action committees registered in South Carolina as of March.

Leadership PACs are different from regular PACs in that they are formed by legislators in leadership positions to raise money separate from their campaigns. The money is often donated to other candidates or used to pay for personal expenses.

Under state law, the maximum contribution lawmakers are able to receive is $1,000. In practice, the committees allow contributors to donate to a lawmaker twice, once to the personal campaign and once to the lawmaker’s PAC. The cap on PAC contributions is $3,500.

The proposed legislation is supported by Common Cause, a nationwide government watchdog group with state offices in Columbia.

John Crangle, executive director of Common Cause of South Carolina, said the leadership PACs are legal only because of a loophole in the state Ethics Act, which was passed after Operation Lost Trust, an FBI sting operation from the early 1990s that netted several lawmakers and lobbyists in a vote-buying scheme.

Three of the six leadership PACs were shut down, including those created by Judiciary Chairman Jim Harrison, R-Columbia; Speaker Pro Tempore Doug Smith, R-Spartanburg; and Doug Jennings, D-Marlboro, a member of the Judiciary Committee.

In addition, former House Speaker David Wilkins gave up his leadership PAC last July upon his appointment as U.S. ambassador to Canada.

Each of those leadership PACs was abolished voluntarily and without incident.

The three leadership PACs still functioning were formed by Speaker of the House Bobby Harrell, R-Charleston; Harry Cato, R-Greenville, chairman of the House Labor, Commerce and Industry Committee; and Dan Cooper, R-Anderson, chairman of the House Ways and Means Committee.

Harrell, who formed the Palmetto Leadership Council, said his leadership PAC is not just about raising money, but rather is about strengthening the connection between businesspeople in the state and legislators who are willing to make tough votes in South Carolina’s long-term best interest.

“The Palmetto Leadership Council does a lot more than just make contributions to other legislators who share the same vision,” he said. “We have three meetings and two receptions a year, and there is a purpose to them.”

The meetings and receptions offer venues for getting business leaders and legislators together. One such meeting featured Bill Harris, the man credited with turning Ireland into a world leader in biotech research.

“The organization I’m a part of is focused on growing South Carolina and improving the economy,” Harrell said. “I think it’s entirely proper if you want to grow South Carolina’s economy and raise the stature of the state to have an organization like this.”


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