Operation Lost Trust facts for kids
Operation Lost Trust was the name of an FBI investigation into the South Carolina General Assembly from 1989 to 1999. By the end of the investigation, seventeen members of the South Carolina General Assembly were arrested for various crimes. Operation Lost Trust is often considered the greatest political scandal in the history of the state of South Carolina. It directly influenced the passing of South Carolina's Ethics Reform Act of 1991 and led to the restructuring of the state government in 1993. In its wake the once dominant South Carolina Democratic Party was weakened as a political party and the Republican Party emerged as a viable political entity in the state.
Aftermath
Ethics Reform Act of 1991
In response to Operation Lost Trust, state lawmakers passed the Ethics Reform Act of 1991. This act made it illegal for lobbyists to give any gift, including a campaign contribution, to any serving member of the government. It also capped donations from lobbying firms (lobbyists themselves had to be uninvolved in the decision) to $1,000 when it was previously unlimited. The act also regulated how businesses and organizations which employ lobbyists could entertain lawmakers, ensuring that the entertainment was conducted only in formal groups.
Strengthening the governorship
On February 23, 1993, a bill was introduced to the South Carolina House of Representatives to restructure the state government. Up to this point, the governor of South Carolina had largely been a ceremonial figurehead with limited power. However, after Operation Lost Trust, the General Assembly voted to give the governor what was essentially a "third" of its power. According to The State, the main newspaper of Columbia, South Carolina, "the legislation condensed 75 agencies into 17, and let the governor hire and fire the directors of 11. The legislature maintained its power over education, road construction, and environmental regulations while giving the governor power over agencies that imprisoned people, managed healthcare, and collected taxes for the state. South Carolina is still considered a "legislative state" with the General Assembly maintaining a large proportion of power over the governor's appointments as well as the ability to appoint judges.
