SC developers give over the limit to Horry candidates through LLCs. It’s all legal.

SC developers give over the limit to Horry candidates through LLCs. It’s all legal.

Type: 
Press Mention
Date of Release or Mention: 
Thursday, April 14, 2022

 

BY J. DALE SHOEMAKER

Developers have made contributions to Horry County Council candidates well over the state’s $1,000-per-candidate-per-election-cycle limit, according to newly released campaign finance reports. Some of those developers have given to the same candidates multiple times through limited liability companies, or LLCs, and using a part of the state ethics law that allows businesses to donate to political campaigns as individuals. Some experts call it South Carolina’s “LLC loophole.” Others say the practice should end. 

Ethics experts said that while the practice of donating the maximum-allowed amount multiple times using separate companies is legal and common, it’s an “unfortunate” pattern in South Carolina.

“It’s inverting the sense of the law in the sense that no one entity should have undue influence in a campaign,” said Lynn Teague of the South Carolina League of Women Voters. “It’s pretty common, there’s nothing rare about this.”

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Teague, with the League of Women Voters, and others argued that even if the giving is legal, it goes against the spirit of the law. Teague said even though Gov. Henry McMaster proposed removing that part of the law a decade ago, it’s never happened because state lawmakers won’t go along with it.

“It’s unfortunate but the people who would have to get on board with this are benefiting from corporations’ donations so they’re more than reluctant to stop this,” she said.

She argued that so much giving by individuals indicates that they want their donations to “buy something.”

“No company is handing out money for the fun of it or because they’re nice guys who believe in the political process,” she said. “They’re buying something here.” 

Read the full article at: https://www.myrtlebeachonline.com/news/politics-government/article260325...

 

League to which this content belongs: 
South Carolina