Monday, Jun 12, 2006
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Spotlight on interest group after ethics ruling

South Carolinians for Responsible Government might have to state how it spends money

By AARON GOULD SHEININ
asheinin@thestate.com

A group promoting tuition tax credits in the General Assembly could be forced to disclose how it spends its money, under an opinion issued Wednesday by the State Ethics Commission.

While the ruling does not name it specifically, critics of South Carolinians for Responsible Government were quick to claim the group must disclose how it spends its money.

“This ruling indicates SCRG is subject to our state’s laws,” said former Attorney General Charlie Condon, who is acting as lawyer for Rep. Bill Cotty, R-Richland.

But a spokesman for SCRG said the opinion has nothing to do with his organization.

“We really don’t have any reaction,” Denver Merrill said. “All they did was restate the existing law. We have no problem with the existing law.”

South Carolinians for Responsible Government has taken a lead role in pushing school-choice bills Gov. Mark Sanford backs.

Cotty asked the Ethics Commission for the opinion after being the subject of radio advertisements and direct mail criticizing him for his stance against the tuition tax credit bill.

Merrill and SCRG contend the radio ads, which ran within 45 days of the June 13 primary, were not an attempt to influence Cotty’s election.

But Cathy Hazelwood, general counsel to the Ethics Commission, has said previously that because the ad includes Cotty’s name, it is considered to be an attempt to influence the election.

The question before the Ethics Commission was whether any group would have to disclose its spending if it met certain criteria. The commission was not asked specifically about SCRG.

Condon said the commission’s ruling puts several options in play, including a formal complaint with the Ethics Commission or a lawsuit. With a complaint, the board would launch an investigation to determine if the ruling applies to SCRG.

The law, according to the opinion, says any group that spends more than $501 to influence the outcome of a campaign, within 45 days of the election, must disclose details of how it spends its money.

Groups do not need to list their sources of contributions because of a quirk in the law.

The law might be changing. A House-passed bill that would strengthen the law on reporting will be discussed by a Senate panel today. It would require reporting of contributors and spending in such cases.

Reach Sheinin at (803) 771-8658.