The public has a right to know if the public officials representing them receive any personal benefit because of their position with a governmental entity. For this reason, South Carolina law requires officials to report any economic interest they have in real, personal or business property when they file their mandatory Statement of Economic Interests with the State Ethics Commission.
By reporting economic interest in real, personal and business property, officials allow the public to gauge the level of private benefit, if any, they receive from public improvements or property sale. It also identifies significant interests they have in private businesses and governmental contracts.
Proper reporting on the SEI requires understanding what must be reported. When in doubt about the need to disclose an item, the safest course of action is to make the disclosure.
What constitutes an economic interest?
For the purposes of the SEI, “economic interest” is defined in SC Code Section 8-13-100 as “an interest distinct from that of the general public in a purchase, sale, lease, contract, option, or other transaction or arrangement involving property or services in which a public official, public member, or public employee may gain an economic benefit” of at least $50.
Real estate rules
Public officials must disclose any real estate interest that either they have — or their immediate family has — in either of two cases:
- the real estate interest can be reasonably expected to be a conflict of interest with their municipal position; and
- if there has been $200 or more of public improvements made on the property or adjoining properties.
A public improvement is an expenditure of funds by a public entity — state, county, municipality, school district, special purpose district or public service district — that changes or adds to the property. Examples include roads, sidewalks, streetscaping, lighting, water, sewers or stormwater drainage systems.
Public officials must also report any real or personal property that they or an immediate family member has sold, leased or rented to the state or any other public agency. This includes listing the property’s physical address, compensation received and the public agency involved in the transaction.
Business relationship rules
Public officials must also report the name and relationship of every business or entity in which they or an immediate family member have an interest, so long as it meets either of two criteria:
- they have a 5% or greater interest in the value of the business or entity, or
- if the value of the interest exceeds $100,000.
An additional rule exists for entities that do business with the municipality. Officials must disclose their relationships with and compensation received from any business
- where the public officials work,
- have an ownership interest or investment in, or
- have any other association.
The State Ethics Commission maintains a full list of all types of public officials who are subject to the SEI requirement, as well as the circumstances under which they must make a disclosure, on its website, www.ethics.sc.gov. The forms are due by electronic filing by noon on March 30.