Author: Paul Gable

Goldfinch Weighing Run for Solicitor

Earlier this week I lumped Stephen Goldfinch into a group of state legislators considering a challenge to Tom Rice in the June 2022 primary.
It appears I was wrong.
Goldfinch is apparently considering challenging Jimmy Richardson for the 15th Circuit Solicitor’s job, according to a number of people I have spoken with since I wrote the article.
Richardson is generally considered a good solicitor. He trained as an assistant solicitor under Greg Hembree and was elected to the top job when Hembree moved on to the state senate in 2012.
One attorney I spoke with said, “Other than some convicted felons, I don’t know of anyone who has an issue with Jimmy Richardson.”
Goldfinch, on the other hand, would be virtually a novice in the criminal area of the law. He doesn’t appear to have handled more than a handful of criminal cases, all misdemeanors, in his law practice.
He not only has no experience with serious felony cases but would not even be eligible, according to state guidelines, to defend a death penalty case. Of course, the way things are set up, minimum requirements of years of experience for criminal defense in capital cases are mandated but for prosecution they are not.
As one attorney said to me, “The law requires competent defense not competent prosecution.” But the people demand competent prosecution against serious offenders.
Goldfinch has had one brush with the law as a criminal defendant. In 2013, Goldfinch plead guilty to one misdemeanor charge of interstate transfer of mislabeled drugs. The charge arose when federal prosecutors in Houston alleged upon their information that from April 26, 2006, through Dec. 30, 2008, a Mt. Pleasant-based company then owned and operated by Goldfinch, called Caledonia Consulting Inc., was involved with the “distribution and sale of stem cells” that had not been approved by the U.S. Food and Drug Administration to “treat human diseases.”
At the time of the charge, Goldfinch told media he had no knowledge of illegal activities by those the stem cells were sold to or by the doctor who harvested the stem cells.
One of those doctors has presented a different story as an “official archived legal webpage” on the website of his company. That webpage can be viewed at: https://www.dammaimorganllc.com/archive-stem-cells-case.html

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New Defendant Added to Lawsuit Gallman v Rankin et al. Bringing New Revelations

Earlier this year, John Gallman filed a lawsuit against Luke Rankin and a host of others who supported Rankin’s 2020 reelection for actions that took place during the primary runoff including libel/slander, invasion of privacy and civil conspiracy.
The initial complaint raised questions about what is protected political speech and how far do those protections extend.
The lawsuit is based in part on mailer and television attack advertisements against Gallman paid for by the “South Carolina Industry Project, a project of the American Industry Project, 2020 Pennsylvania Ave. NW, No. 3009, Washington, D.C.”, as stated on the advertisements.
Horry County Council member Tyler Servant was listed on the Form 990 filed by the American Industry Project with the IRS in 2018. Servant was named as president of the American Industry Project in that filing and was included as a defendant in the lawsuit based on his association with the organization.
Servant’s answer to the complaint stated he was not associated with the American Industry Project since 2018 and asked for the complaint against him to be dismissed.
That answer led to further investigation by Gallman’s attorney. The Form 990 filed for tax year 2020 was filed by the American Industry Project after the initial complaint was filed. That Form 990 lists William Taylor, a S. C. House representative from Aiken, a board member of the American Industry Project for 2020. As a result, Taylor was added to the lawsuit as a defendant in an amended complaint.
How did a state representative from Aiken get listed as a board member of an organization based in Washington, D.C., which paid for attack ads against Gallman in an election race in Horry County for a state senate seat?
One clue may be that Taylor’s political website was created by Julie Emerson of Lagniappe Communications Group, according to Taylor. Both Emerson and Lagniappe Communications Group were listed as defendants in the lawsuit in both the original and amended complaints.
Emerson is a member of the Louisiana House of Representatives and founder of Lagniappe Communications Group, according to her biography.
Emerson ordered television time for the television ads attacking Gallman with WMBF and WBTW on behalf of the American Industry Project, according to the NAB PB-18 forms submitted to the television stations and signed electronically by Emerson. Both forms are exhibits filed with the lawsuit.
David Hucks of the news website myrtlebeachsc.com called Taylor to get his comments about his association with the American Industry Project and the lawsuit. Hucks had two recorded phone conversations with Taylor. Both conversations can be heard on his myrtlebeachsc.com website.

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Where are State Legislators in District 7 Congressional Race?

One of the most interesting aspects of the challengers to Tom Rice for next year’s Republican primary nomination for the S.C. 7th Congressional District is the lack of state legislators currently in the contest.
Statehouse legislative experience is often used as a stepping stone to the U. S. Congress. For example, John Jenrette, Mark Sanford, Lindsey Graham and Henry Brown all served in the S. C. General Assembly before winning a seat in Congress. Rice served two years as county council chairman before winning election to the newly created 7th Congressional District in 2012.
Rep. William Bailey formed a committee in January 2021 to explore whether he should challenge incumbent Tom Rice in next year’s primary. Last week, Bailey announced he would seek reelection to his S. C. House seat rather than run in the primary for the U. S. House of Representatives, preferring to concentrate on his efforts to improve and widen SC 9 all the way to Interstate 81 to provide access from three interstates to the Grand Strand.
According to several sources in Columbia, three other members of the local legislative delegation are considering entering the race. They are Rep. Russell Fry, Rep. Heather Crawford and Sen. Stephen Goldfinch.
Rice’s vote to impeach then President Donald Trump on January 13, 2021 has encouraged at least 10 challengers to his reelection at this writing. All 10, in one form or another, have criticized Rice’s vote to impeach Trump. To date, not Fry, nor Crawford nor Goldfinch has criticized Rice’s vote to impeach.
A campaign for federal office brings a level of scrutiny much deeper into a candidate’s background, voting record and associations than is normal for local elections. What baggage might be holding back any of these three from entering the primary against Rice?
All three aligned themselves in the past with what can be called the good ole boy Republicans who are now out of favor in Horry County.
The new leadership at the Horry County GOP is currently conducting a forensic audit into the past four years of that organization’s finances, the period before the new leadership took office. In addition, a recent media report disclosed the HCGOP is under scrutiny by the S. C. Ethics Commission for failure to file quarterly disclosure reports since 2017.
The new president of the HCGOP was quoted in the story as saying right now the HCGOP couldn’t file disclosure reports because of a lack of good financial data for that period.

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County Impact Fees Pass Unanimous Second Reading

Horry County Council is one step closer to imposing impact fees on new construction in the unincorporated areas of the county after unanimously passing second reading of an ordinance establishing those fees Tuesday night.
This is at least the fourth time in the past two decades that impact fees have been discussed by council. In the past, the development lobby has been successful in shutting down impact fees discussions before the issue got too far along in the legislative process.
Circumstances are different this time. Construction, especially of single-family homes, is red hot in the county and gives no signs of slowing down in the immediate future. Similar homes in similar type developments that were being advertised at mid-100s to high-100s last year are now being advertised in the mid-200s. That is approximately $250,000 for the average single-family home being constructed presently in a subdivision.
Some of that increase is due to the cost of building materials which have gone up by as much as four times in the case of lumber over the last 12 months. But profits for the developers have also been rising as the demand for new housing in the county continues to outpace the supply.
During past discussions, developers have been successful with the argument that impact fees would significantly increase the cost of a new home, driving down demand thereby causing high unemployment among the construction industry workers.
That argument does not hold water at this time even though it is being tried again and appears to have a sympathetic ear from a few council members.
Council member Dennis DiSabato attempted unsuccessfully to delay second reading of the ordinance by calling for a new committee to study the issue further. Council member Harold Worley, the most vocal supporter of impact fees during the discussion, said a vote to delay was a “kill pill” and the time had come to vote the ordinance up or down.
Council member Cam Crawford was more vocal and animated during the impact fee discussion than he has been in total in all the other council meetings and discussions over his nearly six years on council. Crawford’s voice and facial expressions clearly demonstrated his distaste for impact fees (or at least the distaste of those who have his ear).
In the end, however, neither DiSabato nor Crawford nor any other member of council voted against the ordinance.

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One Year Until Republican Congressional Primary, Is Rice Toast?

One year from today, June 14, 2022, voters will go to the polls for primary elections to nominate candidates for the November 2022 general election.
The most closely watched race will be the Republican primary for the S. C. 7th Congressional District. Will five term incumbent Tom Rice survive his vote to impeach former President Donald Trump and win the Republican nomination?
Incumbents have a few advantages over challengers especially name recognition and the ability to raise money from the many PACs around the country looking to gain access to legislators.
However, since Rice’s vote to impeach former President Trump, the 7th Congressional District is being treated like an open seat by challengers. Ten challengers to Rice had filed with the Federal Election Commission as of the March 31, 2021 required filing date. When the June 30, 2021 filing is complete, we may see a couple more challengers have emerged.
The same March 31st filings show Rice raised $404,000 for his campaign chest, nearly all from out of state PACs. Horry County School Board Chairman Ken Richardson raised $154,000 generally from donors within the 7th District. The other nine Republican candidates raised just over $3,000 total among them.
It is estimated a campaign chest of at least $2 million will be needed to fund a serious challenge to Rice. Only Richardson, among the challengers, is on track to raise that kind of money to this point.
But it takes more than money to win elections. A look back at a little history of Horry County and the former S.C. 6th Congressional District, most of which now comprises the 7th Congressional District, may help to put the 2022 primary in perspective.
Former Congressman John Jenrette, the only other person than Rice elected to Congress from Horry County, said when he beat 17 term Congressman John McMillan in the Democratic primary of 1972 (back in the days when nearly everyone in South Carolina was a Democrat), “McMillan had the money but I had the people.”
McMillan was an old style, Jim Crow Southern Democrat who failed to connect with the many new voters brought into the electorate since 1964. Jenrette served four terms in the S. C. House as an at-large representative from Horry County. Jenrette had already connected with those new voters and many of the older ones who also voted for McMillan.

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Horry County Impact Fee Discussion Moves Forward

Horry County Council is expected Tuesday night to have second reading on an ordinance establishing impact fees on new construction.
Council held a workshop on impact fees Thursday with a view to having some parameters for what the new fee would cost.
There has been discussion about impact fees in Horry County for most of the last two decades. Two years ago, an advisory referendum showed three out of four voters supported establishment of impact fees on new construction.
Predictably those in the development industry have fought establishment of impact fees. To date, that industry has been successful in holding the fees off.
However, a number of cities and counties in South Carolina have established impact fees in the nearly twenty-year interim they have been under periodic discussion in Horry County.
One engineer predicted a $6,000 impact fee would stop half the business currently with his firm. This, however, seems a ridiculous statement when the cost of lumber has quadrupled in the last 12 months and construction hasn’t slowed at all in Horry County due to the increase in cost.
Long time county residents have been remarking recently that new home prices have reached ridiculous levels in the county. But new homes are still selling at record levels.
Any cost to the developer and builder winds up on the final purchase price of the home. Impact fees can be thought of as a tax that will be paid by purchasers of new homes to help fund the increased level of government goods and services additional homes and their residents require.
The question for council is who should pay for these increased demands on county government and how much should be paid.
Council member Harold Worley said during the Thursday discussion that $4,500 (impact fee) is not going to slow down development one bit. He noted failure to pass an impact fee ordinance could result in a tax increase of 13.2 mils to residents of the unincorporated areas of the county in the future. Council will vote on third reading of a budget ordinance that increases taxes 7.6 mils in the unincorporated areas of the county next year with additional rises in stormwater and solid waste fees.

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Rice’s Failure to Deliver for his 7th Congressional District Constituents

It has been six months since the day Tom Rice’s political career changed.
The January 6th disturbance at the U. S. Capitol building led to Rice’s ‘vote of conscience’ one week later to impeach former President Donald Trump.
Rice’s vote to impeach changed the political landscape in his South Carolina 7th Congressional District as Rice was immediately attacked by a large majority of his former supporters for casting that vote.
At the time, Rice’s campaign consultant Walter Whetsell downplayed the outcry against his five-time candidate as something that would fade in a couple of weeks. However, rather than fading in the six-month interim, the opposition to Rice has only grown.
At least 10 Republican challengers to Rice’s nomination for a sixth term as the Congressman from the South Carolina Seventh have already registered with the Federal Election Commission. In the eyes of most Republicans, the 7th Congressional District is being treated as an open seat rather than one with a five term Congressman in place with all the advantages of incumbency.
But, it is not only Rice’s vote to impeach Trump that will cause him trouble in the June 2022 Republican Primary, should he choose to run. He has no record of producing results for the citizens of the 7th Congressional District despite being in his fifth term as their representative.
When Rice first campaigned for the new 7th Congressional District seat in 2012, his two main issues were “Jobs, Jobs, Jobs” and “Interstate 73”. He has failed on both issues.
Horry County, Rice’s home county and the location of a full 50% of the Republican voters throughout the district, has experienced no job growth attributable to Rice’s efforts in his four plus terms in Congress.
This comes as no real surprise. In his two years as chairman of Horry County Council before being elected to the 7th Congressional District seat, Rice promoted jobs as a major issue. Working with the Myrtle Beach Regional Economic Development Corporation, Rice’s two prime efforts for creating new jobs during those two years were “Avcraft” and “Project Blue”.
Avcraft was an aircraft completion and services company that had relocated to Horry County in 2004 with promises of 400-600 new jobs. After six years of failure to produce any new jobs in Horry County, Avcraft received one more stimulus package from the county with Rice leading and promoting the effort. Not only were no new jobs forthcoming, Avcraft finally bowed to the inevitable and filed for bankruptcy in 2014.
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County Council Must Make Hard Decisions on Budget

Two weeks after voting to defer second reading of the county budget for fiscal year 2021-22, Horry County Council will again consider second reading at its regular meeting Tuesday night.
How to pay for growth and who should pay for it will again be at the center of the council’s considerations.
Council rejected a staff proposal for a 2 mill increase in the county general fund, a 2.5 mill increase in the county fire fund, a 3 mill increase in the county solid waste convenience center fund and a $45 per year increase in the county stormwater fee two weeks ago.
According to several sources, county staff has come up with four possible options for council consideration Tuesday.
At one extreme is the proposal that council rejected. At the opposite extreme, reportedly is a small tax increase to help the convenience center fund.
The answer will probably lie somewhere between the two extremes.
While there is no doubt that the rapid growth currently being experienced and expected to continue in residential construction is straining county resources, the question of raising taxes on every taxpayer in the county to fund increased goods and services is a sticking point.
This is especially true when considering the hospitality fee money that was freed up with the settlement of the lawsuit with Myrtle Beach (approximately $26 million), with the money coming from the federal government American Rescue Plan (approximately $34 million per year for two years) and from impact fees should the council pass an impact fee ordinance after its scheduled June 10, 2021 workshop on impact fees.
It’s difficult to raise taxes when there is a spare $60 million in the bank with another $34 million promised next year and a new potential revenue resource from impact fees.
Here is where the discussion comes down to who is calling the shots in the county. County staff constantly warns against spending what it calls one-time money such as the hospitality fee and federal government money on recurring expenses such as funding increases for police and fire personnel.
There is nothing wrong with that logic in static times. However, staff reportedly has designs on the entire $60 million one-time money available this year for its own ‘wish list,’ another way of saying increase the size of the bureaucracy.

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County Council Will Ask Voters’ Permission to Raise Taxes

A strong majority of Horry County Council was unwilling Tuesday night to vote for a significant increase in taxes and fees without hearing from county voters.
Council voted to defer second reading of the county’s budget ordinance until June 1. In the interim, county staff will be putting together two ballot questions, one for a countywide 2 mill tax increase and the other for an additional 2.5 mill tax increase and an addition of $45 in stormwater fees for the unincorporated areas of the county.
The questions will be put to voters throughout the county in an advisory referendum special election scheduled for August 17, 2021. Voters in the cities will only be voting on the countywide tax increase while voters in the unincorporated areas of the county will vote on both questions.
The basics of the budget now being held in abeyance calls for a 3 mill tax increase in the unincorporated areas of the county to add revenue for the operation of the county’s solid waste convenience centers.
County staff proposed budget enhancements (additions) Tuesday night that call for a further 2 mill tax increase countywide to pay for police, E911, EMS and court security additions of personnel as well as a pay increase for all county employees. In addition, staff proposed an additional 2.5 mill increase in the unincorporated areas of the county to fund increases in fire services and a doubling of stormwater fees in the unincorporated areas from the current $44.40 per year per household to $89.40 per year per household (a $45 per year increase).
If both questions are approved by voters, taxpayers in the unincorporated areas of the county will see a 7.5 mill tax increase plus a $45 fee increase on their fall tax bills. Taxpayers residing in the cities will see an additional 2 mills of county tax added to their tax bills.
Staff was also directed by council to determine if the increases could be offset somewhat with the hospitality fee money that was freed up with the settlement of the lawsuit with Myrtle Beach (approximately $26 million), with the money coming from the federal government American Rescue Plan (approximately $34 million per year for two years) and from impact fees should the council pass an impact fee ordinance after its scheduled June 10, 2021 workshop on impact fees.
Growth and its impacts on infrastructure and services has caught up with Horry County, some may say surpassed. Numerous studies conducted throughout the United States over the years conclude that a growth rate of over 1.5-2 percent per year cannot be paid for by the new tax revenue generated by that growth. Staff said growth was estimated to be 5 percent this year with an average of 3.25 percent estimated over the next five years.

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DiSabato Proposes Ordinance that Could Violate State Law and the U.S. Constitution

Included in the various email exchanges following last week’s Horry County Council brouhaha was one from council member Dennis Disabato to council Chairman Johnny Gardner in which DiSabato notified Gardner he had instructed staff to prepare a new ordinance that appears to be pointed at one fellow council member and may violate both the US Constitution and South Carolina law.
DiSabato and council member Al Allen were on opposite sides of the issue to discuss county legal fees on last week’s agenda. Allen requested the discussion be placed on the council agenda, DiSabato moved to adjourn the meeting to prevent the discussion from taking place.
In an email to council Chairman Johnny Gardner, DiSabato said that since Gardner had a desire to discuss the use of public funds so transparently, he wanted to place an item on the agenda for the next meeting.
“I would like to discuss the use of public funds and awarding contracts to organizations owned by council members and/or their immediate family. I believe it is important for the public to understand exactly how much of our tax revenue is being spent with Allen Aviation, in particular, for mosquito spraying contracts, as well as how those contracts are awarded,” DiSabato wrote to Gardner in the email.
Had DiSabato stopped there, he would have been fine.
However, DiSabato’s email took it further, “Furthermore, I’d like to take this opportunity to let you know that I have instructed staff to prepare an ordinance to prevent the county from further contracts with companies owned by council members and/or their immediate family. The intent here, Mr. Chairman, is to protect and prevent individuals on council from undue public scrutiny of perceived improprieties stemming from such activities.”
An ordinance such as DiSabato proposes may violate both state law and the Equal Protection Clause of the Fourteenth Amendment to the U.S. Constitution.
The Fourteenth Amendment provides that no state may deny any person within its jurisdiction the equal protection of the laws. It mandates that individuals in similar situations (classes) be treated equally by the law.
South Carolina has no law prohibiting public officials from conducting business with the agency they represent. It does have laws prohibiting members from voting on or influencing a governmental decision in which the public official has an economic interest and laws on disclosing the income (economic interest) from such business.

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