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What Is S.C. House Bill 3931? Why Does The Myrtle Beach Chamber Want It Passed?

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Bill Herbkersman
Bill Herbkersman Introduces S.C. House Bill 3931 Allowing The Myrtle Beach Area Chamber to skirt FOIA even if they lose Supreme Court Case

The S.C. Supreme Court has now heard both sides of the legal arguments from the different S.C. Chambers of Commerce and lawyers from Skip Hoagland concerning the lawsuit on whether S.C. Chambers of Commerce should be required to grant “Freedom Of Information” requests (FOIA) on how they spend our tax dollars.

MBACC
MBACC gets almost $40 million annually in total tax dollars

The Myrtle Beach Area Chamber of Commerce gets over 90% of its initial funding from tax dollars, yet the organization is not subject to any transparency laws that allow FOIA. The Myrtle Beach Area Chamber of Commerce (MBACC) has proven it is very adept at converting these tax dollars into millions of MBACC general revenue funds by charging hotels for the Chamber’s use of those tax dollars. TDF (tourist tax) dollars must be spent on advertising.  General fund dollars can be spent any way MBACC chooses.

South Carolina residents are now waiting on a ruling from the S.C. Supreme Court justices.

Rankin Leatherman Dean Lazarus
Myrtle Beach Chamber C.E.O. Dean with incumbents and former allies

Speculation is that the Supreme Court justices are themselves waiting to see what happens with the Pascoe Probe before they rule.

While S.C. waits,  a sneaky piece of legislation is being submitted by S.C. 118 District Representative Bill Herbkersman.  The Bluffton S.C. Representative, and strong ally of Brad Dean, is presenting a bill that will allow all Chambers of Commerce to skirt FOIA altogether regardless of how the Supreme Court rules.

S.C. HOUSE BILL 3931

Here is what the executive director of the S.C. Press Association,  Bill Rogers, says about House Bill 3931.

There is a wolf in sheep’s clothing working its way through our state legislature.

Compression Socks $12.99

The bill purports to be a transparency bill, but it is anything but… and it will hide how millions of taxpayer dollars are spent.

The wording begins saying any non-profit entity that “received more than one hundred dollars in public funds from a state agency or political subdivision in the previous calendar year or the current calendar year, must submit a quarterly expenditure report to the jurisdiction awarding the funds.”

That sounds great.

But the final section of the bill, H. 3931, drops a bombshell on openness. It says that an entity filing such a form is exempt from disclosure provisions of the Freedom of Information Act.

This means that chambers of commerce, development corporations and publicly supported entities such as museums, charter schools and volunteer fire departments would no longer have to disclose how they spend the millions of public dollars they receive.

Under current law, they must tell the public how money is spent. The FOIA says any entity “supported in whole or in part by public funds” is subject to the provisions of the act. This means their meetings are open to the public and their records must be available to the public.

The Hilton Head Chamber of Commerce challenged this law about their being subject to the FOIA. A Circuit Court ruled they were indeed subject to the law and that ruling was later appealed to the S.C. Supreme Court, which heard arguments in this case in October and is presently considering the case before issuing its ruling.

 We hope the current Supreme Court case will reaffirm openness.

A cynic might say this bill is in response to that suit and is a desperate way to keep secret how chambers spend their public money.

Also note that the proposed law’s required reports would provide the public with far less information than what the FOIA is currently able to provide.

This is a very bad bill and should be defeated when it comes before the House Ways & Means Committee.

The North Myrtle Beach TDF (Tourist Tax) Referendum goes to the ballot on March 6th.  The Myrtle Beach TDF extension is scheduled to be voted on by either a voter referendum or city council in 2018 as well.

Rogers is executive director of the S.C. Press Association, an advocate for open government.

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