A BILL TO AMEND THE SOUTH CAROLINA CODE OF LAWS SO AS TO ENACT THE "CHARITY PROTECTION ACT" BY ADDING SECTION 33-56-65 SO AS TO PROHIBIT A STATE AGENCY OR STATE OFFICIAL FROM IMPOSING ANNUAL FILING OR REPORTING REQUIREMENTS THAT ARE MORE BURDENSOME THAN THE REQUIREMENTS ESTABLISHED IN CHAPTER 56, TITLE 33 AND TO PROVIDE SOME EXCEPTIONS.
Summary
H5251, the “Charity Protection Act,” would add a new section to South Carolina law limiting how much annual filing or reporting a state agency or state official may require from charitable organizations. In general, the bill says state-level requirements cannot be more burdensome than the filing and reporting standards already established in Chapter 56, Title 33, unless a federal law specifically requires or authorizes something more. The measure is aimed at reducing duplicative or expanded reporting obligations for charities.
The bill also creates explicit exceptions. It does not apply to state grants and contracts, fraud investigations, or enforcement actions against a charitable organization. It further states that any conflicting statute or regulation would be superseded by this new provision. If enacted, the law would take effect upon approval by the Governor.
Impact
The bill would amend Title 33 of the South Carolina Code by adding Section 33-56-65, creating a statewide ceiling on annual filing and reporting requirements for charitable organizations. It would constrain state agencies and officials from imposing reporting obligations beyond those already set out in Chapter 56, except where federal law requires otherwise, while preserving state authority over grants, contracts, fraud investigations, and enforcement. The practical effect would be to standardize and potentially reduce administrative compliance burdens on charities operating in South Carolina.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the overall sentiment appears to be supportive of charitable organizations and regulatory relief. The bill’s framing as the “Charity Protection Act” suggests a pro-charity, anti-bureaucracy purpose, with no documented opposition or amendments in the available record. Because no committee transcripts or vote history were provided, there is no evidence here of formal controversy or divided sentiment.
Contention
The main point of potential contention is the balance between reducing burdens on charities and preserving state oversight. Supporters would likely favor limiting duplicative reporting and protecting charitable organizations from excessive regulation, while critics might worry that the bill could restrict agencies’ ability to collect information needed for oversight, accountability, or program administration. The bill addresses some of those concerns by carving out exceptions for grants, contracts, fraud investigations, and enforcement actions, but the scope of those exceptions could still be a subject of interpretation if disputes arise.