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H 5571

Public Institutions of Higher Learning disclosures

2025-2026 Regular Session Introduced by Phillip Bowers and 4 co-sponsors

Public universities must implement a secure annual disclosure system requiring all employees to report outside business associations and descriptions.

Referred to Committee on Education and Public Works
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Bill Summary · H 5571

Summary of Bill H 5571 (2025-2026) — South Carolina

Title

Public Institutions of Higher Learning disclosures

Purpose and Intent

This bill adds a new section to South Carolina law requiring public institutions of higher learning to require each employee to annually disclose any outside business in which they are associated. The core aim is to increase transparency and accountability regarding potential outside business interests of university employees, while preserving employees’ general right to engage in outside activities not restricted by law or institutional policy.

Key Provisions

  • Definitions (59-101-700(A))

    • Employee: Any individual employed by a public institution of higher learning, on a full-time, part-time, temporary, or contractual basis.
    • Business with which he is associated: Any business, trade, profession, membership, appointment, elected position, or other compensated activity conducted for pay by the employee outside the employee’s official duties for the institution.

  • Annual Disclosure Requirement (59-101-700(B)-(C))

    • Each public institution must establish and maintain a secure electronic reporting system.
    • By December 31 of each year, every employee must submit an annual disclosure via the system that includes:
    • The name of the business with which the employee is associated.
    • A general description of the type of work or services performed for the business.

  • Confidentiality and Security (59-101-700(D))

    • Institutions must ensure the reporting system protects the confidentiality and security of all submitted information.

  • Policies, Procedures, and Compliance (59-101-700(E))

    • Institutions must adopt policies and procedures to implement and enforce the disclosure requirements, including provisions addressing noncompliance.
    • A copy of these policies and procedures must be provided to:
    • Chairman of the House Education and Public Works Committee
    • Chairman of the Senate Education Committee
    • Upon adoption and any subsequent amendments

  • Range of Activities Clarification (59-101-700(F))

    • The section does not prohibit employees from engaging in outside business activities unless restricted by state law or institutional policy.

  • Effective Date (Section 2)

    • The act takes effect upon approval by the Governor.

Who Is Affected

  • Public institutions of higher learning in South Carolina.
  • All employees of those institutions (full-time, part-time, temporary, and contractual).
  • Institutional administrators responsible for implementing and enforcing the disclosure system and policies.

Procedural and Timeline Aspects

  • Implementation Timeline: Institutions must establish the secure electronic reporting system and begin annual disclosures, with the first deadline by December 31 of the year the act is in effect.
  • Reporting Deadline: Annual disclosures due by December 31 each year.
  • Reporting System Requirements: Must be secure and confidential; must capture business name and general work description.
  • Oversight and Transparency: Institutions must share disclosure policies with leaders of the state education committees (House and Senate) and must provide updates if policies/amendments occur.

Notable Considerations

  • The bill emphasizes transparency without broadly restricting outside work, noting that outside activities remain allowed unless specifically restricted by law or policy.
  • Privacy protections are required for the disclosed information, but the bill does not specify public accessibility of disclosures, focusing on confidentiality.
  • Noncompliance provisions are to be included in the adopted policies and procedures, though specific enforcement mechanisms are not detailed in the bill text provided.

If you’d like, I can draft a plain-language brief for non-expert readers or prepare a side-by-side comparison with existing South Carolina ethics or conflict-of-interest provisions.

Compiled from official sources — confirm details with the bill’s official record.

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