Bill 153

                    Current Status

Bill Number:               153
Ratification Number:       210
Act Number                 149
Introducing Body:          Senate
Subject:                   Comptroller General may deduct
                           contributions

(A149, R210, S153)

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 8-11-91, 8-11-92, 8-11-93, 8-11-94, 8-11-95, 8-11-96 AND 8-11-97, SO AS TO PROVIDE THAT THE COMPTROLLER GENERAL SHALL AND THE GOVERNING BODY OF ANY SCHOOL DISTRICT MAY, UPON THE AUTHORIZATION OF ANY OFFICER OR EMPLOYEE THEREOF, DEDUCT FROM SALARY OF SUCH OFFICER OR EMPLOYEE CONTRIBUTIONS FOR QUALIFYING PUBLIC CHARITIES; TO PROVIDE QUALIFYING CRITERIA FOR SUCH CHARITIES AND TO DIRECT THE SECRETARY OF STATE TO DETERMINE THE SPECIFIC CHARITIES WHICH QUALIFY; TO MAKE AS A PREREQUISITE A MINIMUM LEVEL OF EMPLOYEE PARTICIPATION; TO MAKE CONFIDENTIAL THE NAMES OF CONTRIBUTORS AND THE INDIVIDUAL AMOUNTS; TO PROVIDE FOR THE CONTROL OF SOLICITATION DRIVES AND THE MINIMIZING OF ADMINISTRATIVE OVERHEAD; TO REQUIRE QUALIFYING ORGANIZATIONS TO MAKE BUSINESS RECORDS AVAILABLE FOR VERIFICATION OF THEIR STATUS; AND TO AUTHORIZE PROMULGATION OF APPROPRIATE REGULATIONS; TO FURTHER AMEND THE 1976 CODE BY ADDING SECTION 8-11-98, SO AS TO AUTHORIZE DEDUCTIONS FROM THO SALARY OR WAGES OF OFFICERS AND EMPLOYEES OF THE STATE AND ITS POLITICAL SUBDIVISION FOR PAYMENTS TO LAWFULLY CHARTERED CREDIT UNIONS AND TO AUTHORIZE PROMULGATION OF APPROPRIATE REGULATIONS IN CONNECTION THEREWITH, AND TO PROVIDE THAT THE ABOVE PROVISIONS SHALL NOT BE CONSTRUED AS AUTHORIZING PAYROLL DEDUCTIONS FOR ANY ORGANIZATION RECOGNIZED OR CLASSIFIED AS A LABOR ORGANIZATION UNDER SECTION 501(C) (5) OF TITLE 26 OF THE UNITED STATES CODE ANNOTATED, BY THE UNITED STATES DEPARTMENT OF LABOR, OR BY ANY COURT OF COMPETENT JURISDICTION.

Be it enacted by the General Assembly of the State of South Carolina:

Comptroller General may deduct contributions

SECTION 1. The 1976 Code is amended by adding:

"Section 8-11-91. The Comptroller General shall, and the governing body of any school district may, upon written authorization by any officer or employee, deduct from the salary or wages of any such officer or employee contributions to be paid over to eligible nonprofit charitable organizations, or groups of such organizations, in the manner prescribed by Sections 8-11-92 through 8-11-97. Chief finance officers of state agencies and institutions maintaining payroll accounts separate from the office of the Comptroller General likewise shall make deductions from the salaries and wages of their officers and employees for such contributions.

Section 8-11-92. A. Nonprofit charitable organizations for which such payroll deductions may be made shall include any nonprofit, eleemosynary corporation, association or organization which is organized and operated exclusively for charitable, health, or welfare services to the public and meets all of the following qualifications:

(1) Is and continues to be organized and qualified to solicit and operate under the laws of this State, pursuant to Chapter 55 of Title 33;

(2) Provides direct and continuing services to or on behalf of the citizens of the State. For purposes of this section, 'direct and continuing services' means: (a) services other than legal advocacy services which are provided directly to and specifically for one individual or one family; (b) services which are in the nature of medical research; or (c) services which involve the collection and administration of funds by umbrella organizations for other organizations, all of which qualify under this act;

(3) Is recognized as tax exempt under Section 501(c)(3) of Title 26, United States Code (the Internal Revenue Code of 1954, as amended);

(4) Is not an organization contemplated by Section 501 (c) (4), 501(c)(5), or 501(c)(6) of Title 26, United States Code (the Internal Revenue Code of 1954, as amended) and is not an organization primarily engaged in the propagation of a religious faith or belief; this prohibition shall include, but not ,be limited to, organizations primarily engaged in lobbying or political activity;

(5) Is operated without discrimination in regard to all persons served, and complies with all requirements of law, including administrative regulations, respecting nondiscrimination and equal opportunity regarding its officers, staff, employees and volunteers;

(6) Has neither a parent organization nor a subsidiary organization which fails to meet qualifications herein contained in items (1) through (5).

B. The Secretary of State shall determine on an annual basis, based upon the applications of nonprofit, charitable organizations and groups of such organizations, those which are eligible to participate in payroll deductions for state employee contributions. His decision shall be final unless determined by a court of competent jurisdiction to be arbitrary, capricious or unsupported by any credible evidence.

Section 8-11-93. Because of the high cost to be borne by the State in providing administrative services regarding payroll deductions for contributions to charitable organizations, even though an organization may be eligible under Section 8-11-92 no such deductions shall be authorized by the Comptroller General, or by the chief finance officer of a state agency or institution maintaining separate payroll accounts, unless at least ten percent of the employees or two hundred employees, whichever shall be the lesser, who are paid from such payroll account, have made a written authorization to deduct contributions to an eligible charitable organization or group of such organizations.

Section 8-11-94. The names of state employees authorizing deductions of charitable contributions and the amount of the individual contributions shall be confidential and shall not be made public. This prohibition against disclosure shall not bar the Secretary of State, State Auditor or state or federal tax authorities from access to all information necessary to verify or establish the eligibility, the tax exempt status or the tax liability of such organizations or groups of such organizations. The tax returns and books and records of such organizations or groups of such organizations shall be made available at all times necessary to determine the status and eligibility of any such charitable organization or groups of such organizations.

Section 8-11-95. The Comptroller General, and the chief finance officers of state agencies and institutions maintaining separate payroll accounts, shall permit two time periods during any calendar year for general charitable-solicitation drives within state offices, agencies and institutions.

Section 8-11-96. Authorization for payroll deductions for charitable contributions may be made or terminated at any payroll period by the officer or employee concerned; provided that either the Comptroller General or the chief finance officer concerned may require that deductions be made pro rata from each payroll check or in such other manner as will reduce to a minimum both the cost of handling such deductions and any interference with regular payroll procedures.

Section 8-11-97. The Comptroller General, and the chief finance officers concerned, shall promulgate regulations necessary and expedient to accomplishing the purposes of Section 8-11-91 through 8-11-96.

Section 8-11-98. The Comptroller General or any official of a political subdivision of the State which is authorized to disburse funds in payment of salaries or wages of public officers or employees shall, upon written authorization, deduct from the salary or wages of such officer or employee the amounts authorized for payment to any lawfully chartered credit union. The monies deducted shall be paid promptly to the designated organization. Subject to any regulations prescribed by the Budget and Control Board, the Comptroller General may prescribe any procedures necessary to carry out the provisions of this section."

Severability clause

SECTION 2. If any portion of this act is held unconstitutional or otherwise unenforceable, such portion shall be deemed severable and the remainder shall continue in full force and effect.

Provisions not to include labor organizations

SECTION 3. Notwithstanding any other provision of this act including definitions of organizations eligible for payroll deductions, such provisions shall not be construed to include any organization recognized or classified as a labor organization under Section 501 (c)(5) of Title 26 of the United States Code Annotated, by the United States Department of Labor, or by any court of competent jurisdiction nor shall any such deduction be made if any of the proceeds of the deduction would be for the benefit of any such organization.

Time effective

SECTION 4. This act shall take effect upon approval by the Governor.