'It's a sad day in SC': MB Chamber doesn't have to show how tax dollars are spent

The Myrtle Beach Area Chamber of Commerce will not be subject to the Freedom of Information Act now that the South Carolina Supreme Court ruled local chambers of commerce are not public bodies.

The decision came after a five-year battle started by Skip Hoagland, owner of DomainsNewMedia.com against the Hilton Head Island-Bluffton Chamber of Commerce. At the time, Hoagland sent a FOIA request to the chamber asking for information on staff membership, policies, minutes and accounts.

The chamber refused to fulfill the request because it said it was not a public body subject to FOIA. Last week the S.C. Supreme Court agreed with the Hilton Head chamber ruling that local chambers of commerce are not subject to FOIA.

"It means a great loss of accountability that they're no longer subject to the FOIA," said Bill Rogers, executive director of the South Carolina Press Association. "Now you have to depend on their reports, which I suspect will be incomplete."

In Myrtle Beach, the chamber receives funds from the accommodations tax, funds that are used for out-of-area marketing and tourism related capital projects. The chamber also receives funds for out-of-area marketing from the tourism development fee, a 1-percent sales tax.

The TDF has sparked controversy among Myrtle Beach residents since its implementation in 2009.

"I've got a big issue with the way the public spends our money," Myrtle Beach resident Ed Carey said.

Reports for the TDF and A-tax are put online, but give broad descriptions of what the money was spent on, as well as limited information on the companies providing services. The reports do list how much money was spent at each company.

In a press release from the Myrtle Beach Area Chamber of Commerce, chairman of the board of directors Carla Schuessler states, "For our chamber this type of reporting is a normal business practice and our reports are available online for review."

Myrtle Beach resident Ann A. Dunham said, "I've printed out a large majority of their reports and it looks to me there are items that are not related to advertising," speaking of descriptions like research and meetings.

In the press release, the Myrtle Beach chamber said they agree with the S.C. Supreme Court's ruling that local chambers not be subject to FOIA, saying the court recognizes a strong oversight for local chambers.

In a dissenting opinion, Justice John Cannon Few found the Supreme Court's conclusion wrong. However, in a four to one decision, justices for the court ruled in favor of the chamber.

In February, 12th Circuit Court Judge Michael Nettles, of Florence, ruled in favor of Skip Hoagland and his business.

However, the opinion recently issued stated officials are "firmly persuaded" the General Assembly did not mean for the chamber to be considered a public body.

In 2016, the MBACC encouraged the court to take a broader look at how a ruling would not only affect chamber's across the state, but also nonprofits.

In October, former chamber president Brad Dean told The Sun News, "We're not opposed at all to the transparency of public funds, but how far does that go?"

Now, Hoagland has the opportunity to request a rehearing. Rogers said he believes the solution is now in the legislature, who would have to change South Carolina law to make local chamber's more transparent.

"It's a sad day in South Carolina," Carey said.

"I think the public needs to take a hard look at their priorities and what we're putting into our chamber," he said.

This story was originally published May 29, 2018 at 5:35 PM with the headline "'It's a sad day in SC': MB Chamber doesn't have to show how tax dollars are spent."