Reference is to Printer's Date 2-16-12--S.
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
SECTION 1. This act may be cited as the "South Carolina Restructuring Act of 2012".
SECTION 2. A. Effective July 1, 2013, the State Budget and Control Board, and its related divisions and offices, is abolished and its duties and functions specified by law, except as otherwise provided, are devolved upon the Department of Administration.
B. After determining how many vacant FTE's at the State Budget and Control Board shall be used to fill needed positions in the Executive Budget Office as provided in subsection (C)(2) of Section 1-30-125, to be done in consultation with the Office of the Governor, the Executive Director of the State Budget and Control Board, upon approval of the board, prior to July 1, 2013, shall eliminate at least one hundred forty-seven vacant FTE's within the board or its divisions, components, or offices prior to the devolvement of specified duties and functions of the board upon the Department of Administration as provided in this act.
C. Section 1-11-10 of the 1976 Code is repealed.
SECTION 3. Section 1-30-10(A) of the 1976 Code, as last amended by Act 146 of 2010, is further amended by adding a new item to be appropriately numbered at the end:
"___. Department of Administration"
SECTION 4. Chapter 30, Title 1 of the 1976 Code is amended by adding:
"Section 1-30-125.
(A) Effective July 1, 2013, the
following offices, divisions, or components of the former State
Budget and Control Board, Office of the Governor, or other
agencies are transferred to, and incorporated into, the
Department of Administration, a department of the executive
branch of state government headed by a director appointed by the
Governor as provided in Section 1-30-10(B)(1)(i) except that
this appointment must be upon the advice and consent of the
Senate:
(1)
Division of General Services including Facilities
Management, Business Services together with Fleet Management,
and Property Services;
(2)
Office of Human Resources;
(3)
Office of Executive Policy and Programs;
(4)
Office of the State Retirement System;
(5)
Office of Economic Opportunity;
(6)
Developmental Disabilities Council;
(7)
Children's Foster Care as established by Article 7,
Chapter 11, Title 63;
(8)
Veterans Affairs as established by Section 25-11-10;
(9)
Commission on Women as established by Section 1-15-10;
(10)
Victims Assistance as established by Article 13, Chapter
3, Title 16;
(11)
Division of State Information Technology of the State
Budget and Control Board;
(12)
Division of Procurement Services of the State Budget and
Control Board;
(13)
Guardian Ad Litem program as established by Section
63-11-500;
(14)
Children's Case Resolution System as provided for in
Section 63-11-1110;
(15)
Small and Minority Business Assistance Office as
established by Section 11-35-5270; and
(16)
Continuum of Care for Emotionally Disturbed Children as
established by Section 63-11-1310.
(B) The Office of the
State Retirement System transferred to the Department of
Administration as provided above shall perform all
administrative and operational functions of the State Retirement
System except for those policy decisions reserved by law to the
newly established State Contracts and Accountability Authority,
but the Department of Administration is not the trustee and
fiduciary of the funds of the State Retirement System.
(C)(1) There is
established, within the Department of Administration, the
Executive Budget Office which shall support the Office of the
Governor by conducting analysis, implementing and monitoring the
annual general appropriations act, and evaluating program
performance.
(2)
The Executive Budget Office shall use the existing
resources of the organizations transferred to the Department of
Administration including, but not limited to, funding,
personnel, equipment, and supplies. Vacant FTE's at the former
State Budget and Control Board also may be used to fill needed
positions for the office."
SECTION 5. (A)
Where the provisions of this act transfer offices,
or portions of offices, of the Budget and Control Board, Office
of the Governor, or other agencies to the new Department of
Administration or other entities, including those newly created
by the provisions of this act, the employees, authorized
appropriations, and assets and liabilities of the transferred
offices are also transferred to and become part of the
Department of Administration or other entities, including those
newly created by the provisions of this act. All classified or
unclassified personnel employed by these offices on the
effective date of this act, either by contract or by employment
at will, shall become employees of the Department of
Administration or other entities, including those newly created
by the provisions of this act, with the same compensation,
classification, and grade level, as applicable.
(B) Regulations
promulgated by these transferred offices as they formerly
existed under the former Budget and Control Board, Office of the
Governor, or other agencies are continued and are considered to
be promulgated by these offices under the newly created
Department of Administration or other entities, including those
newly created by the provisions of this act.
(C)(1) The Code
Commissioner is directed to change or correct all references to
these offices of the former Budget and Control Board in the 1976
Code, Office of the Governor, or other agencies to reflect the
transfer of them to the Department of Administration or other
entities, including those newly created by the provisions of
this act. References to the names of these offices in the 1976
Code or other provisions of law are considered to be and must be
construed to mean appropriate references.
(2)
On or before July 1, 2013, the Code Commissioner also
shall prepare and deliver a report to the President Pro Tempore
of the Senate and the Speaker of the House of Representatives
concerning appropriate and conforming changes to the 1976 Code
of Laws reflecting the provisions of this act.
SECTION 6. Title 2 of the 1976 Code is amended by adding:
Section 2-2-5.
The General Assembly finds and declares the
following to be the public policy of the State of South
Carolina:
(1) Section 1 of
Article XII of the constitution of this State requires the
General Assembly to provide for appropriate agencies to function
in the areas of health, welfare, and safety and to determine the
activities, powers, and duties of these agencies and
departments.
(2) This constitutional
duty is a continuing and ongoing obligation of the General
Assembly that is best addressed by periodic review of the
programs of the agencies and departments and their
responsiveness to the needs of the state's citizens by the
standing committees of the State Senate or House of
Representatives.
Section 2-2-10. As used
in this chapter:
(1) 'Agency' means an
authority, board, branch, commission, committee, department,
division, or other instrumentality of the executive or judicial
departments of state government, including administrative
bodies. 'Agency' includes a body corporate and politic
established as an instrumentality of the State. 'Agency' does
not include:
(a)
the legislative department of state government; or
(b)
a political subdivision.
(2) 'Investigating
committee' means any standing committee or subcommittee of a
standing committee exercising its authority to conduct an
oversight study and investigation of an agency within the
standing committee's subject matter jurisdiction.
(3) 'Program evaluation
report' means a report compiled by an agency at the request of
an investigating committee that may include, but is not limited
to, a review of agency management and organization, program
delivery, agency goals and objectives, compliance with its
statutory mandate, and fiscal accountability.
(4) 'Request for
information' means a list of questions that an investigating
committee serves on a department or agency under investigation.
The questions may relate to any matters concerning the
department or agency's actions that are the subject of the
investigation.
(5) 'Standing
committee' means a permanent committee with a regular meeting
schedule and designated subject matter jurisdiction that is
authorized by the Rules of the Senate or the Rules of the House
of Representatives.
Section 2-2-20. (A)
Beginning January 1, 2015, each standing
committee shall conduct oversight studies and investigations on
all agencies within the standing committee's subject matter
jurisdiction at least once every seven years in accordance with
a schedule adopted as provided in this chapter.
(B) The purpose of
these oversight studies and investigations is to determine if
agency laws and programs within the subject matter jurisdiction
of a standing committee:
(1)
are being implemented and carried out in accordance with
the intent of the General Assembly; and
(2)
should be continued, curtailed, or eliminated.
(C) The oversight
studies and investigations must consider:
(1)
the application, administration, execution, and
effectiveness of laws and programs addressing subjects within
the standing committee's subject matter jurisdiction;
(2)
the organization and operation of state agencies and
entities having responsibilities for the administration and
execution of laws and programs addressing subjects within the
standing committee's subject matter jurisdiction; and
(3)
any conditions or circumstances that may indicate the
necessity or desirability of enacting new or additional
legislation addressing subjects within the standing committee's
subject matter jurisdiction.
Section 2-2-30. (A)
The procedure for conducting the oversight
studies and investigations is provided in this section.
(B)(1) The President
Pro Tempore of the Senate, upon consulting with the chairmen of
the standing committees in the Senate and the Clerk of the
Senate, shall determine the agencies for which each standing
committee shall conduct oversight studies and investigations. A
proposed seven-year review schedule must be published in the
Senate Journal on the first day of session each year.
(2)
In order to accomplish the requirements of this chapter,
the chairman of each standing committee shall schedule oversight
studies and investigations for the agencies for which his
standing committee is the investigating committee and may:
(a)
coordinate schedules for conducting oversight studies and
investigations with the chairmen of other standing committees;
and
(b)
appoint joint investigating committees to conduct the
oversight studies and investigations including, but not limited
to, joint committees of the Senate and House of Representatives
or joint standing committees of concurrent subject matter
jurisdiction within the Senate or within the House of
Representatives.
(3)
Chairmen of standing committees having concurrent subject
matter jurisdiction over an agency or the programs and law
governing an agency by virtue of the Rules of the Senate or
Rules of the House of Representatives, may request that a joint
investigating committee be appointed to conduct the oversight
study and investigation for an agency.
(C)(1) The Speaker of
the House of Representatives, upon consulting with the chairmen
of the standing committees in the House of Representatives and
the Clerk of the House of Representatives, shall determine the
agencies for which each standing committee shall conduct
oversight studies and investigations. A proposed seven-year
review schedule must be published in the House Journal on the
first day of session each year.
(2)
In order to accomplish the requirements of this chapter,
the chairman of each standing committee shall schedule oversight
studies and investigations for the agencies for which his
standing committee is the investigating committee and may:
(a)
coordinate schedules for conducting oversight studies and
investigations with the chairmen of other standing committees;
and
(b)
appoint joint investigating committees to conduct the
oversight studies and investigations including, but not limited
to, joint committees of the Senate and House of Representatives
or joint standing committees of concurrent subject matter
jurisdiction within the Senate or within the House of
Representatives.
(3)
Chairmen of standing committees having concurrent subject
matter jurisdiction over an agency or the programs and law
governing an agency by virtue of the Rules of the Senate or
Rules of the House of Representatives, may request that a joint
investigating committee be appointed to conduct the oversight
study and investigation for the agency.
(D) The chairman of an
investigating committee may vest the standing committee's full
investigative power and authority in a subcommittee. A
subcommittee conducting an oversight study and investigation of
an agency:
(1)
shall make a full report of its findings and
recommendations to the standing committee at the conclusion of
its oversight study and investigation, and
(2)
shall not consist of fewer than three members.
Section 2-2-40. (A)
In addition to the scheduled seven-year
oversight studies and investigations, a standing committee of
the Senate or the House of Representatives may by a
two-thirds vote of the standing committee's membership
initiate an oversight study and investigation of an agency
within its subject matter jurisdiction. The motion calling for
the oversight study and investigation must state the subject
matter and scope of the oversight study and investigation. The
oversight study and investigation must not exceed the scope
stated in the motion or the scope of the information uncovered
by the investigation.
(B) Nothing in the
provisions of this chapter prohibits or restricts the President
Pro Tempore of the Senate, the Speaker of the House of
Representatives, or chairmen of standing committees from
fulfilling their constitutional obligations by authorizing and
conducting legislative investigations into agencies' functions,
duties, and activities.
Section 2-2-50. When an
investigating committee conducts an oversight study and
investigation or a legislative investigation is conducted
pursuant to Section 2-2-40(B), evidence or information related
to the investigation may be acquired by any lawful means,
including, but not limited to:
(A) serving a request
for information on the agency being studied or investigated.
The request for information must be answered separately and
fully in writing under oath and returned to the investigating
committee within forty-five days after being served upon the
department or agency. The time for answering a request for
information may be extended for a period to be agreed upon by
the investigating committee and the agency for good cause shown.
The head of the department or agency shall sign the answers
verifying them as true and correct. If any question contains a
request for records, policies, audio or video recordings, or
other documents, the question is not considered to have been
answered unless a complete set of records, policies, audio or
video recordings or other documents is included with the
answer;
(B) deposing witnesses
upon oral examination. A deposition upon oral examination may
be taken from any person that the investigating committee has
reason to believe has knowledge of the activities under
investigation. The investigating committee shall provide the
person being deposed and the agency under investigation with no
less than ten days notice of the deposition. The notice to the
agency shall state the time and place for taking the deposition
and name and address of each person to be examined. If a
subpoena duces tecum is to be served on the person to be
examined, the designation of the materials to be produced as set
forth in the subpoena must be attached to or included in the
notice. The deposition must be taken under oath administered by
the chairman of the investigating committee or his designee.
The testimony must be taken stenographically or recorded by some
other means and may be videotaped. A person may be compelled to
attend a deposition in the county in which he resides or in
Richland County;
(C) issuing subpoenas
to employees of the agency and subpoenas duces tecum for papers
and documents in the possession of the state agency or its
employees pursuant to Chapter 69 of this title; and
(D) requiring the
agency to prepare and submit to the investigating committee a
program evaluation report by a date specified by the
investigating committee. The investigating committee shall
specify the agency program or programs or agency operations that
it is studying or investigating and the information to be
contained in the program evaluation report.
Section 2-2-60. (A)
An investigating committee's request for a
program evaluation report must contain:
(1)
the agency program or operations that it intends to
investigate;
(2)
the information that must be included in the report;
and
(3)
the date that the report must be submitted to the
committee.
(B) An investigating
committee may request that the program evaluation report contain
any of the following information:
(1)
enabling or authorizing law or other relevant mandate,
including any federal mandates;
(2)
a description of each program administered by the agency
identified by the investigating committee in the request for a
program evaluation report, including the following
information:
(a)
established priorities, including goals and objectives in
meeting each priority;
(b)
performance criteria, timetables, or other benchmarks used
by the agency to measure its progress in achieving its goals and
objectives;
(c)
an assessment by the agency indicating the extent to which
it has met the goals and objectives, using the performance
criteria. When an agency has not met its goals and objectives,
the agency shall identify the reasons for not meeting them and
the corrective measures the agency has taken to meet them in the
future;
(3)
organizational structure, including a position count, job
classification, and organization flow chart indicating lines of
responsibility;
(4)
financial summary, including sources of funding by program
and the amounts allocated or appropriated and expended over the
last ten years;
(5)
identification of areas where the agency has coordinated
efforts with other state and federal agencies in achieving
program objectives and other areas in which an agency could
establish cooperative arrangements including, but not limited
to, cooperative arrangements to coordinate services and
eliminate redundant requirements;
(6)
identification of the constituencies served by the agency
or program, noting any changes or projected changes in the
constituencies;
(7)
a summary of efforts by the agency or program regarding
the use of alternative delivery systems, including
privatization, in meeting its goals and objectives;
(8)
identification of emerging issues for the agency;
(9)
a comparison of any related federal laws and regulations
to the state laws governing the agency or program and the rules
implemented by the agency or program;
(10)
agency policies for collecting, managing, and using
personal information over the Internet and nonelectronically,
information on the agency's implementation of information
technologies;
(11)
a list of reports, applications, and other similar
paperwork required to be filed with the agency by the public.
The list must include:
(a)
the statutory authority for each filing requirement;
(b)
the date each filing requirement was adopted or last
amended by the agency;
(c)
the frequency that filing is required;
(d)
the number of filings received annually for the last five
years and the number of anticipated filings for the next five
years;
(e)
a description of the actions taken or contemplated by the
agency to reduce filing requirements and paperwork
duplication;
(12)
any other relevant information specifically requested by
the investigating committee.
(C) All information
contained in a program evaluation report must be presented in a
concise and complete manner.
(D) The chairman of the
investigating committee may direct the Legislative Audit Council
to perform a study of the program evaluation report and report
its findings to the investigating committee. The chairman also
may direct the Legislative Audit Council to perform its own
audit of the program or operations being studied or investigated
by the investigating committee.
(E) A state agency that
is vested with revenue bonding authority may submit annual
reports and annual external audit reports conducted by a third
party in lieu of a program evaluation report.
Section 2-2-70. All testimony given to the investigating committee must be under oath.
Section 2-2-80. Any witness testifying before or deposed by the investigating committee may have counsel present to advise him. The witness or his counsel may, during the time of testimony or deposition, object to any question detrimental to the witness' interests and is entitled to have a ruling by the chairman on any objection. In making his ruling, the chairman of the investigating committee shall follow as closely as possible the procedures and rules of evidence observed by the circuit courts of this State.
Section 2-2-90. A witness shall be given the benefit of any privilege which he may have claimed in court as a party to a civil action.
Section 2-2-100. Any person who appears before a committee or subcommittee of either house, pursuant to this chapter, and wilfully gives false, materially misleading, or materially incomplete testimony under oath is guilty of contempt of the General Assembly. A person who is convicted of or pleads guilty to contempt of the General Assembly is guilty of a felony and, upon conviction, must be fined within the discretion of the court or imprisoned for not more than five years, or both.
Section 2-2-110. Whenever any person violates Section 2-2-100 it is the duty of the chair of the committee or subcommittee before which the false, misleading, or incomplete testimony was given, to notify the Attorney General of South Carolina who shall cause charges to be filed in the appropriate county.
Section 2-2-120. A
person is guilty of criminal contempt when, having been duly
subpoenaed to attend as a witness before either house of the
legislature or before any committee thereof, he:
(1) fails or refuses to
attend without lawful excuse; or
(2) refuses to be
sworn; or
(3) refuses to answer
any material and proper question; or
(4) refuses, after
reasonable notice, to produce books, papers, or documents in his
possession or under his control which constitute material and
proper evidence.
A person who is convicted of or pleads
guilty to criminal contempt is guilty of a felony and, upon
conviction, must be fined within the discretion of the court or
imprisoned for not more than five years, or both."
SECTION 7. A. Section 1-11-20 of the 1976 Code, as last amended by Act 164 of 2005, is further amended to read:
"Section 1-11-20.
The functions of the State Budget and Control
Board must be performed, exercised, and discharged under the
supervision and direction of the board through three divisions,
the Finance Division (embracing the work of the State Auditor,
the former State Budget Commission, the former State Finance
Committee and the former Board of Claims for the State of South
Carolina), the Purchasing and Property Division (embracing the
work of the former Commissioners of the Sinking Fund, the former
Board of Phosphate Commissioners, the State Electrician and
Engineer, the former Commission on State House and State House
Grounds, the central purchasing functions, the former Surplus
Procurement Division of the State Research, Planning and
Development Board and the Property Custodian) and the Division
of Personnel Administration (embracing the work of the former
retirement board known as the South Carolina Retirement System
and the administration of all laws relating to personnel), each
division to consist of a director and clerical, stenographic and
technical employees necessary, to be employed by the respective
directors with the approval of the board. The directors of the
divisions must be employed by the State Budget and Control Board
for that time and compensation as may be fixed by the board in
its judgment. (A)
Notwithstanding any other provision of law, the
Division of General Services shall not be transferred to the
Department of Administration until the director of the
Department of Administration enters into a memorandum of
understanding with appropriate officials of applicable
legislative and judicial agencies or departments meeting the
requirements of this section. There shall be a single
memorandum of understanding involving the Department of
Administration and the legislative and judicial branches with
appropriate officials of each to be signatories to the
memorandum of understanding.
(B) The
memorandum of understanding at a minimum shall provide for:
(1)
continued use of existing office space;
(2)
a method for the allocation of new, additional,
or different office space;
(3)
adequate parking;
(4)
a method for the allocation of new, additional,
or different parking;
(5)
the provision of appropriate levels of
custodial, maintenance, and other services currently provided by
the General Services Division of the State Budget and Control
Board;
(6)
the ability for each agency or department to
maintain building access control for its allocated office space;
(7)
access control for the Senate and House chambers
and courtrooms as appropriate; and
(8)
procedures and criteria for determining rental
rates and charges for state space as required in subsection
(C).
(C) The
memorandum of understanding shall provide for the method used by
the Department of Administration in determining the calculation
and collection of rental and lease charges for all state
agencies and departments, to include legislative and judicial
agencies and departments. Until agreement on this provision is
reached and included in the memorandum of understanding, with
approval from appropriate officials of the legislative branch
and the Department of Administration, state agencies and
departments shall not pay rent on state-owned space or
facilities, in addition to not transferring the Division of
General Services to the Department of Administration.
Notwithstanding any other provision of law, the provisions of
this subsection supercede any existing rental or lease
agreements to the contrary.
(D) The
parties may modify the memorandum of understanding by mutual
consent at any time."
B. Section 1-11-22 of the 1976 Code is amended to read:
"Section 1-11-22.
Notwithstanding any other provision of law, the
Budget and Control Board may organize its staff as it deems most
appropriate to carry out the various duties, responsibilities
and authorities assigned to it and to its various
divisions each of the offices, entities, or programs
transferred to the Department of Administration shall become
divisions or offices of the department; provided that the
department may organize its staff, divisions, offices, and
programs as it considers most appropriate to carry out the
various duties, responsibilities, and authorities assigned to it
and to its various divisions, offices, and management and
organizational entities."
C. Sections 1-11-55, 1-11-56, and 1-11-58 of the 1976 Code are amended to read:
Section 1-11-55. (1)
'Governmental body' means a state government
department, commission, council, board, bureau, committee,
institution, college, university, technical school,
legislative body, agency, government
corporation, or other establishment or official of the
executive, judicial, or legislative branches
branch of this State. Governmental body excludes the
General Assembly, Legislative Council, the Office of Legislative
Printing, Information and Technology Systems, the judicial
department and all local political subdivisions such as
counties, municipalities, school districts, or public service or
special purpose districts.
(2) The Budget
and Control Board Division of General Services of
the Department of Administration is hereby designated as the
single central broker for the leasing of real property for
governmental bodies. No governmental body shall enter into any
lease agreement or renew any existing lease except in accordance
with the provisions of this section.
(3) When any
governmental body needs to acquire real property for its
operations or any part thereof and state-owned property is not
available, it shall notify the Office
Division of General Services of its requirement on rental
request forms prepared by the office
division. Such forms shall indicate the amount and
location of space desired, the purpose for which it shall be
used, the proposed date of occupancy and such other information
as General Services may require. Upon receipt of any such
request, General Services shall conduct an investigation of
available rental space which would adequately meet the
governmental body's requirements, including specific locations
which may be suggested and preferred by the governmental body
concerned. When suitable space has been located which the
governmental body and the office
division agree meets necessary requirements and standards
for state leasing as prescribed in procedures of the
board department as provided for in
subsection (5) of this section, General Services shall give its
written approval to the governmental body to enter into a lease
agreement. All proposed lease renewals shall be submitted to
General Services by the time specified by General Services.
(4) The
board department shall adopt procedures
to be used for governmental bodies to apply for rental space,
for acquiring leased space, and for leasing state-owned space to
nonstate lessees.
(5) Any participant
in a property transaction proposed to be entered who maintains
that a procedure provided for in this section has not been
properly followed, may request review of the transaction by the
director of the Office Division of
General Services of the Department of Administration or
his designee.
Section 1-11-56.
(A) The State Budget
and Control Board, Division of General Services of
the Department of Administration, in an effort to ensure
that funds authorized and appropriated for rent are used in the
most efficient manner, is directed to develop a program to
manage the leasing of all public and private space of
state agencies a governmental body.
The department must submit regulations for the implementation
of this section to the General Assembly as provided in the
Administrative Procedures Act, Chapter 23 of Title 1. The
board's department's regulations, upon
General Assembly approval, shall include procedures for:
(1)
assessing and evaluating agency needs, including the
authority to require agency justification for any request to
lease public or private space;
(2)
establishing standards for the quality and quantity of
space to be leased by a requesting agency;
(3)
devising and requiring the use of a standard lease form
(approved by the Attorney General) with provisions which assert
and protect the state's prerogatives including, but not limited
to, a right of cancellation in the event of:
(a)
a nonappropriation for the renting agency,
(b)
a dissolution of the agency, and
(c)
the availability of public space in substitution for
private space being leased by the agency;
(4)
rejecting an agency's request for additional space or
space at a specific location, or both;
(5)
directing agencies to be located in public space, when
available, before private space can be leased;
(6)
requiring the agency to submit a multi-year financial plan
for review by the board's budget office
department with copies sent to Ways and Means Committee
and Senate Finance Committee, before any new lease for space is
entered into; and requiring prior review by the Joint
Bond Review Committee and the requirement of Budget and Control
Board approval before the adoption of any new lease that commits
more than one million dollars in a five-year period;
and (7)
requiring prior review by the Joint Bond Review
Committee and the requirement of
Budget and Control
Board State Contracts and Accountability
Authority approval before the adoption of any new or
renewal lease that commits more than two hundred thousand
dollars annually in rental or lease payments or more than
one million dollars in such payments in a five-year
period.
(B) Leases or
rental agreements involving amounts below the thresholds
provided in item (7) of subsection (A) may be executed by the
Department of Administration without this prior review and
approval.
(C) The
threshold requirements requiring review by the Joint Bond Review
Committee and approval by the State Contracts and Accountability
Authority as contained in item (7) of subsection (A) also apply
to leases or rental agreements with nonstate entities whether or
not the state or its agencies or departments is the lessee or
lessor.
Section 1-11-58.
(A)(1) Every state agency, as
defined by Section 1-19-40, shall annually perform an inventory
and prepare a report of all residential and surplus real
property owned by it. The report shall be submitted to the
State Budget and Control Board Department of
Administration, Office Division of
General Services, on or before June thirtieth and shall indicate
current use, current value, and projected use of the property.
Property not currently being utilized for necessary agency
operations shall be made available for sale and funds received
from the sale of the property shall revert to the general
fund.
(2)
The Office Division of General
Services will shall review the annual
reports addressing real property submitted to it and determine
the real property which is surplus to the State. A central
listing of such property will be maintained for reference in
reviewing subsequent property acquisition needs of agencies.
(3)
Upon receipt of a request by an agency to acquire
additional property, the Office Division
of General Services shall review the surplus property list to
determine if the agency's needs can may
be met from existing state-owned property. If such property is
identified, the Office division
of General Services shall act as broker in
transferring the property to the requesting agency under terms
and conditions that are mutually agreeable to the agencies
involved.
(4)
The Budget and Control Board
department may authorize the Office
Division of General Services to sell any unassigned
surplus real property. The Office of General
Services division shall have the discretion to
determine the method of disposal to be used, which possible
methods include: auction, sealed bids, listing the property
with a private broker or any other method determined by the
Office of General Services division to
be commercially reasonable considering the type and location of
property involved.
(B) The
procedures involving surplus real property sales under this
section are also subject to the approvals required in Section
1-11-65 for surplus real property sales above five hundred
thousand dollars."
D. Sections 1-11-65, 1-11-67, 1-11-70, 1-11-80, 1-11-90, 1-11-100, 1-11-110, and 1-11-180 of the 1976 Code are amended to read:
"Section 1-11-65.
(A) All transactions involving real
property, made for or by any governmental bodies, excluding
political subdivisions of the State, must be approved by and
recorded with the State Budget and Control
Board Department of Administration for transactions
of the five hundred thousand dollars or less. For
transactions of more than five hundred thousand dollars,
approval of the State Contracts and Accountability Authority is
required in lieu of the department, although the recording will
be with the department. Upon approval of the transaction
by the Budget and Control Board, there must be
recorded simultaneously with the deed, a certificate of
acceptance, which acknowledges the board's
department's and authority's approval of the transaction
if required. The county recording authority cannot
accept for recording any deed not accompanied by a certificate
of acceptance. The board department and
authority may exempt a governmental body from the provisions
of this subsection.
(B) All state agencies,
departments, and institutions authorized by law to accept gifts
of tangible personal property shall have executed by its
governing body an acknowledgment of acceptance prior to transfer
of the tangible personal property to the agency, department, or
institution.
Section 1-11-67.
The State Budget and Control Board shall assess
and collect a rental charge from all state departments and
agencies that occupy State Budget and Control Board space in
state-controlled office buildings. The amount charged each
department or agency must be calculated on a square foot, or
other equitable basis of measurement, and at rates that will
yield sufficient total annual revenue to cover the annual
principal and interest due or anticipated on the Capital
Improvement Obligations for projects administered or planned by
the Office of General Services, and maintenance and operation
costs of State Budget and Control Board controlled office
buildings under the supervision of the Office of General
Services. The amount collected must be deposited in a special
account and must be expended only for payment on Capital
Improvement Obligations and maintenance and operations costs of
the buildings under the supervision of the Office of General
Services.
All departments and
agencies against which rental charges are assessed and whose
operations are financed in whole or in part by federal or other
non-appropriated funds are both directed to apportion the
payment of these charges equitably among all funds to ensure
that each bears its proportionate share. Reserved.
Section 1-11-70.
All vacant lands and lands purchased by the former land
commissioners of the State shall be are
subject to the directions of the State Budget and
Control Board Department of Administration.
Section 1-11-80. The
State Budget and Control Board Department of
Administration, upon approval of the State Contracts and
Accountability Authority, is authorized to grant easements
and rights of way to any person for construction and maintenance
of power lines, pipe lines, water and sewer lines and railroad
facilities over, on or under such vacant lands or marshland as
are owned by the State, upon payment of the reasonable value
thereof.
Section 1-11-90. The
State Budget and Control Board Department of
Administration, upon approval of the State Contracts and
Accountability Authority, may grant to agencies or political
subdivisions of the State, without compensation, rights of way
through and over such marshlands as are owned by the State for
the construction and maintenance of roads, streets and highways
or power or pipe lines, if, in the judgment of the
Budget and Control Board department, the
interests of the State will not be adversely affected thereby.
Section 1-11-100.
Deeds or other instruments conveying such rights of way or
easements over such marshlands or vacant lands as are owned by
the State shall be executed by the Governor in the name of the
State, when authorized by resolution of the Budget and
Control Board, duly recorded in the minutes and records of such
board authorized by the Department of
Administration, upon approval of the State Contracts and
Accountability Authority, and when duly approved by the
office of the Attorney General; deeds or other instruments
conveying such easements over property in the name of or under
the control of State agencies, institutions, commissions or
other bodies shall be executed by the majority of the governing
body thereof, shall name both the State of South Carolina and
the institution, agency, commission or governing body as
grantors, and shall show the written approval of the
majority of the members of the State Budget and Control
Board Director of the Department of Administration
and the State Contracts and Accountability Authority.
Section 1-11-110. (1)
The State Budget and Control
Board Department of Administration, subject to the
requirements of Section 1-11-65, is authorized to acquire
real property, including any estate or interest therein, for,
and in the name of, the State of South Carolina by gift,
purchase, condemnation or otherwise.
(2) The
State Budget and Control Board Department of
Administration shall make use of the provisions of the
Eminent Domain Procedure Act (Chapter 2 of Title 28) if it is
necessary to acquire real property by condemnation. The actions
must be maintained by and in the name of the
board department. The right of
condemnation is limited to the right to acquire land necessary
for the development of the Capitol Complex mall
grounds in the City of Columbia.
Section 1-11-180. (A)
In addition to the powers granted the
Budget and Control Board Department of
Administration under this chapter or any other provision of
law, the board department may:
(1)
survey, appraise, examine, and inspect the condition of
state property to determine what is necessary to protect state
property against fire or deterioration and to conserve the use
of the property for state purposes;
(2)
approve the destruction or disposal of state
agency records;
(3) require
submission and approval of plans and specifications for
permanent improvements by a state department, agency, or
institution before a contract is awarded for the permanent
improvement;
(4) approve blanket
bonds for a state department, agency, or institution including
bonds for state officials or personnel. However, the form and
execution of blanket bonds must be approved by the Attorney
General; and
(5)(3)
contract to develop an energy utilization management
system for state facilities under its control and to assist
other agencies and departments in establishing similar programs.
However, this does not authorize capital expenditures.
(B) The Budget
and Control Board may South Carolina Department of
Administration shall promulgate regulations necessary to
carry out this section."
E. Chapter 11, Title 1 of the 1976 Code is amended by adding:
"Section 1-11-185.
(A) In addition to the powers granted
the Department of Administration pursuant to this chapter or
another provision of law, the department may require submission
and approval of plans and specifications for a permanent
improvement project of a cost of five hundred thousand dollars
or less by a state department, agency, or institution of the
executive branch before a contract is awarded for the permanent
improvement project. If the cost of the permanent improvement
project is more than five hundred thousand dollars, approval of
the State Contracts and Accountability Authority is required, in
lieu of the department's, before the contract may be awarded and
the authority may require submission of the plans and
specifications for this purpose. The provisions of this
subsection are in addition to any other requirements of law
relating to permanent improvement projects, including the
provisions of Chapter 47, Title 2.
(B) The Department of
Administration may promulgate regulations necessary to carry out
its duties.
(C) The respective
divisions of the Department of Administration are authorized to
provide to and receive from other governmental entities,
including other divisions and state and local agencies and
departments, goods and services as will in its opinion promote
efficient and economical operations. The divisions may charge
and pay the entities for the goods and services, the revenue
from which must be deposited in the state treasury in a special
account and expended only for the costs of providing the goods
and services, and those funds may be retained and expended for
the same purposes."
F. 1. Section 1-11-220 of the 1976 Code, as last amended by Act 203 of 2008, is further amended to read:
"Section 1-11-220.
There is hereby established within the Budget and
Control Board South Carolina Department of
Administration, the Division of
Motor Vehicle Management General Services,
Program of Fleet Management headed by a Director,
hereafter referred to as the 'State Fleet
Manager' appointed by and reporting directly to the
Budget and Control Board
department, hereafter referred to as the
Board. The Board department
shall develop a comprehensive state Fleet Management Program.
The program shall address acquisition, assignment,
identification, replacement, disposal, maintenance, and
operation of motor vehicles.
The Budget and Control
Board department shall, through
their its policies and regulations, seek
to achieve the following objectives:
(a)
to achieve maximum cost-effectiveness
management of state-owned motor vehicles in support of the
established missions and objectives of the agencies, boards, and
commissions.;
(b)
to eliminate unofficial and unauthorized
use of state vehicles.;
(c)
to minimize individual assignment of
state vehicles.;
(d)
to eliminate the reimbursable use of
personal vehicles for accomplishment of official travel when
this use is more costly than use of state
vehicles.;
(e)
to acquire motor vehicles offering
optimum energy efficiency for the tasks to be
performed.;
(f)
to insure motor vehicles are operated in
a safe manner in accordance with a statewide Fleet Safety
Program;
(g)
to improve environmental quality in this
State by decreasing the discharge of pollutants."
2. Section 1-11-225 of the 1976 Code is amended to read:
"Section 1-11-225.
The Division of Operations South
Carolina Department of Administration shall establish a cost
allocation plan to recover the cost of operating the
comprehensive statewide Fleet Management Program. The division
shall collect, retain, and carry forward funds to ensure
continuous administration of the program."
3. Sections 1-11-250, 1-11-260, 1-11-270(A), 1-11-280, 1-11-290; 1-11-300, 1-11-310, as last amended by Act 203 of 2008, 1-11-315, 1-11-320; 1-11-335, and 1-11-340 of the 1976 Code are amended to read:
"Section 1-11-250.
For purposes of Sections 1-11-220 to 1-11-330:
(a) 'State agency'
means all officers, departments, boards, commissions,
institutions, universities, colleges, and all persons and
administrative units of state government that operate motor
vehicles purchased, leased, or otherwise held with the use of
state funds, pursuant to an appropriation, grant or encumbrance
of state funds, or operated pursuant to authority granted by the
State.
(b)
'Board Department' means
State Budget and Control Board the South
Carolina Department of Administration.
Section 1-11-260. (A)
The Fleet Manager shall report annually to
the Budget and Control Board and the General
Assembly concerning the performance of each state agency in
achieving the objectives enumerated in Sections 1-11-220 through
1-11-330 and include in the report a summary of the
division's program's efforts in aiding
and assisting the various state agencies in developing and
maintaining their management practices in accordance with the
comprehensive statewide Motor Vehicle Fleet
Management Program. This report also shall contain
recommended changes in the law and regulations necessary to
achieve these objectives.
(B) The
board department, after consultation
with state agency heads, shall promulgate and enforce state
policies, procedures, and regulations to achieve the goals of
Sections 1-11-220 through 1-11-330 and shall recommend
administrative penalties to be used by the agencies for
violation of prescribed procedures and regulations relating to
the Fleet Management Program.
Section 1-11-270. (A)
The board department
shall establish criteria for individual assignment of motor
vehicles based on the functional requirements of the job, which
shall reduce the assignment to situations clearly beneficial to
the State. Only the Governor, statewide elected officials, and
agency heads are provided a state-owned vehicle based on their
position.
Section 1-11-280. The
Board department shall develop a system
of agency-managed and interagency motor pools which are, to the
maximum extent possible, cost beneficial to the State. All
motor pools shall operate according to regulations promulgated
by the Budget and Control Board
department. Vehicles shall be placed in motor pools
rather than being individually assigned except as specifically
authorized by the Board department in
accordance with criteria established by the
Board department. The motor
pool operated by the Division of General Services shall be
transferred to the Division of Motor Vehicle
Management. Agencies utilizing motor pool vehicles
shall utilize trip log forms approved by the
Board department for each trip,
specifying beginning and ending mileage and the job function
performed.
The provisions of this section shall not
apply to school buses and service vehicles.
Section 1-11-290. The
Board department in consultation with
the agencies operating maintenance facilities shall study the
cost-effectiveness of such facilities versus commercial
alternatives and shall develop a plan for maximally
cost-effective vehicle maintenance. The Budget and
Control Board department shall promulgate rules
and regulations governing vehicle maintenance to effectuate the
plan.
The State Vehicle Maintenance program shall
include:
(a) central purchasing
of supplies and parts;
(b) an effective
inventory control system;
(c) a uniform work
order and record-keeping system assigning actual maintenance
cost to each vehicle; and
(d) preventive
maintenance programs for all types of vehicles.
All motor fuels shall be purchased from
state facilities except in cases where such purchase is
impossible or not cost beneficial to the State.
All fuels, lubricants, parts, and
maintenance costs including those purchased from commercial
vendors shall be charged to a state credit card bearing the
license plate number of the vehicle serviced and the bill shall
include the mileage on the odometer of the vehicle at the time
of service.
Section 1-11-300. In
accordance with criteria established by the
board department, each agency shall
develop and implement a uniform cost accounting and reporting
system to ascertain the cost per mile of each motor vehicle used
by the State under their control. Agencies presently operating
under existing systems may continue to do so provided that
board departmental approval
shall be is required and that the
existing systems shall be are uniform
with the criteria established by the board
department. All expenditures on a vehicle for gasoline
and oil shall be purchased in one of the following ways:
(1) from state-owned
facilities and paid for by the use of Universal State Credit
Cards except where agencies purchase these products in bulk;
(2) from any fuel
outlet where gasoline and oil are sold regardless of whether the
outlet accepts a credit or charge card when the purchase is
necessary or in the best interest of the State; and
(3) from a fuel outlet
where gasoline and oil are sold when that outlet agrees to
accept the Universal State Credit Card.
These provisions regarding purchase of
gasoline and oil and usability of the state credit card also
apply to alternative transportation fuels where available. The
Budget and Control Board Division of Operations
department shall adjust the budgetary
appropriation in Part IA, Section 63B, for
'Operating Expenses--Lease Fleet' to reflect the dollar savings
realized by these provisions and transfer such amount to other
areas of the State Fleet Management Program. The
Board department shall promulgate
regulations regarding the purchase of motor vehicle equipment
and supplies to ensure that agencies within a reasonable
distance are not duplicating maintenance services or purchasing
equipment that is not in the best interest of the State. The
Board department shall develop a uniform
method to be used by the agencies to determine the cost per mile
for each vehicle operated by the State.
Section 1-11-310. (A)
The State Budget and Control
Board Department of Administration shall
purchase, acquire, transfer, replace, and dispose of all motor
vehicles on the basis of maximum cost-effectiveness and lowest
anticipated total life cycle costs.
(B) The standard state
fleet sedan or station wagon must be no larger than a compact
model and the special state fleet sedan or station wagon must be
no larger than an intermediate model. The director of
the Division of Motor Vehicle Management State
Fleet Manager shall determine the types of vehicles which
fit into these classes. Only these classes of sedans and
station wagons may be purchased by the State for nonlaw
enforcement use.
(C) The State shall
purchase police sedans only for the use of law enforcement
officers, as defined by the Internal Revenue Code. Purchase of
a vehicle under this subsection must be concurred in by the
director of the Division of Motor Vehicle
Management State Fleet Manager and must be in
accordance with regulations promulgated or procedures adopted
under Sections 1-11-220 through 1-11-340 which must take into
consideration the agency's mission, the intended use of the
vehicle, and the officer's duties. Law enforcement agency
vehicles used by employees whose job functions do not meet the
Internal Revenue Service definition of 'Law Enforcement Officer'
must be standard or special state fleet sedans.
(D) All state motor
vehicles must be titled to the State and must be received by and
remain in the possession of the Division
Program of Motor Vehicle Fleet
Management pending sale or disposal of the vehicle.
(E) Titles to school
buses and service vehicles operated by the State Department of
Education and vehicles operated by the South Carolina Department
of Transportation must be retained by those agencies.
(F) Exceptions to
requirements in subsections (B) and (C) must be approved by the
director of the Division of Motor Vehicle
Management State Fleet Manager. Requirements in
subsection (B) do not apply to the State Development
Board Department of Commerce.
(G) Preference in
purchasing state motor vehicles must be given to vehicles
assembled in the United States with at least seventy-five
percent domestic content as determined by the appropriate
federal agency.
(H) Preference in
purchasing state motor vehicles must be given to hybrid, plug-in
hybrid, bio-diesel, hydrogen, fuel cell, or flex-fuel vehicles
when the performance, quality, and anticipated life cycle costs
are comparable to other available motor vehicles.
Section 1-11-315. The
State Budget and Control Board Department of
Administration, Division of General Services, Program
of Motor Vehicle Fleet
Management, shall determine the extent to which the state
vehicle fleet can be configured to operate on alternative
transportation fuels. This determination must be based on a
thorough evaluation of each alternative fuel and the feasibility
of using such fuels to power state vehicles. The state fleet
must be configured in a manner that will serve as a model for
other corporate and government fleets in the use of alternative
transportation fuel. By March 1, 1993, the
Division Program of Motor
Vehicle Fleet Management must submit a plan to
the General Assembly for the use of alternative transportation
fuels for the state vehicle fleet that will enable the state
vehicle fleet to serve as a model for corporate and other
government fleets in the use of alternative transportation fuel.
This plan must contain a cost/benefit analysis of the proposed
changes.
Section 1-11-320. The
Board department shall ensure that all
state-owned motor vehicles are identified as such through the
use of permanent state-government state
government license plates and either state or agency seal
decals. No vehicles shall be exempt from the requirements for
identification except those exempted by the
Board department.
This section shall not apply to vehicles
supplied to law enforcement officers when, in the opinion of the
Board department after consulting with
the Chief of the State Law Enforcement Division, those officers
are actually involved in undercover law enforcement work to the
extent that the actual investigation of criminal cases or the
investigators' physical well-being would be jeopardized if they
were identified. The Board department
is authorized to exempt vehicles carrying human service agency
clients in those instances in which the privacy of the client
would clearly and necessarily be impaired.
Section 1-11-335. The
respective divisions of the Budget and Control
Board Department of Administration are
authorized to provide to and receive from other governmental
entities, including other divisions and state and local agencies
and departments, goods and services, as will in its opinion
promote efficient and economical operations. The divisions may
charge and pay the entities for the goods and services, the
revenue from which shall be deposited in the state treasury in a
special account and expended only for the costs of providing the
goods and services, and such funds may be retained and expended
for the same purposes.
Section 1-11-340. The
Board department shall develop and
implement a statewide Fleet Safety Program for operators of
state-owned vehicles which shall serve to minimize the amount
paid for rising insurance premiums and reduce the number of
accidents involving state-owned vehicles. The
Board department shall promulgate
rules and regulations requiring the
establishment of an accident review board by each agency and
mandatory driver training in those instances where remedial
training for employees would serve the best interest of the
State."
G. Section 1-11-435 of the 1976 Code is amended to read:
"Section 1-11-435.
To protect the state's critical information technology
infrastructure and associated data systems in the event of a
major disaster, whether natural or otherwise, and to allow the
services to the citizens of this State to continue in such an
event, the Office Division of
the State Chief Information
Officer Technology in the Department of
Administration (CIO) should develop a
Critical Information Technology Infrastructure Protection Plan
devising policies and procedures to provide for the
confidentiality, integrity, and availability of, and to allow
for alternative and immediate online access to critical data and
information systems including, but not limited to, health and
human services, law enforcement, and related agency data
necessary to provide critical information to citizens and ensure
the protection of state employees as they carry out their
disaster-related duties. All state agencies and political
subdivisions of this State are directed to assist the
Office of the State CIO division in the
collection of data required for this plan."
H. Section 1-15-10 of the 1976 Code, as last amended by Act 249 of 2008, is further amended to read:
"Section 1-15-10.
There is hereby created a Commission on Women to be
composed of fifteen members appointed by the Governor with the
advice and consent of the Senate from among persons with a
competency in the area of public affairs and women's activities.
One member must be appointed from each congressional district
and the remaining members from the State at large. The
commission shall be under and a part of the Office of
the Governor Department of Administration for
administrative purposes. Members of the commission shall
serve for terms of four years and until their successors are
appointed and qualify, except of those members first appointed
after the expansion of the commission to fifteen members, two
members shall serve a term of one year, two members shall serve
a term of two years, two members shall serve a term of three
years, and two members shall serve a term of four years.
Members appointed prior to and after the expansion of the
commission to fifteen members shall be designated by the
Governor as being appointed to serve either from a particular
congressional district or at large. Vacancies shall be filled
in the manner of the original appointment for the unexpired
portion of the term only. No member shall be eligible to serve
more than two consecutive terms."
I. Section 1-30-110 of the 1976 Code is repealed.
J. Chapter 9, Title 3 of the 1976 Code is amended to read:
Section 3-9-10. (a)
The Division of General Services of the
State Budget and Control Board Department of
Administration is authorized:
(1)
to acquire from the United States of America under and in
conformance with the provisions of Section 203 (j) of the
Federal Property and Administrative Services Act of 1949, as
amended, hereafter referred to as the 'act,' such property,
including equipment, materials, books, or other supplies under
the control of any department or agency of the United States of
America as may be usable and necessary for purposes of
education, public health or civil defense, including research
for any such purpose, and for such other purposes as may now or
hereafter be authorized by federal law;
(2)
to warehouse such property; and
(3)
to distribute such property within the State to
tax-supported medical institutions, hospitals, clinics, health
centers, school systems, schools, colleges and universities
within the State, to other nonprofit medical institutions,
hospitals, clinics, health centers, schools, colleges and
universities which are exempt from taxation under Section 501
(c)(3) of the United States Internal Revenue Code of 1954, to
civil defense organizations of the State, or political
subdivisions and instrumentalities thereof, which are
established pursuant to State law, and to such other types of
institutions or activities as may now be or hereafter become
eligible under Federal law to acquire such property.
(b) The Division of
General Services of the Department of Administration is
authorized to receive applications from eligible health and
educational institutions for the acquisition of Federal surplus
real property, investigate the applications, obtain expression
of views respecting the applications from the appropriate health
or educational authorities of the State, make recommendations
regarding the need of such applicant for the property, the
merits of its proposed program of utilization, the suitability
of the property for the purposes, and otherwise assist in the
processing of the applications for acquisition of real and
related personal property of the United States under Section 203
(k) of the act.
(c) For the purpose of
executing its authority under this chapter, the Division of
General Services is authorized to adopt, amend or rescind rules
and regulations and prescribe such requirements as may be deemed
necessary; and take such other action as is deemed necessary and
suitable, in the administration of this chapter, to assure
maximum utilization by and benefit to health, educational and
civil defense institutions and organizations within the State
from property distributed under this chapter.
(d) The Budget
and Control Board Department of Administration
is authorized to appoint advisory boards or committees, and to
employ such personnel and prescribe their duties as are deemed
necessary and suitable for the administration of this chapter.
(e) The Director of the
Division of General Services is authorized to make such
certifications, take such action and enter into such contracts,
agreements and undertakings for and in the name of the State
(including cooperative agreements with any Federal agencies
providing for utilization of property and facilities by and
exchange between them of personnel and services without
reimbursement), require such reports and make such
investigations as may be required by law or regulation of the
United States of America in connection with the receipt,
warehousing, and distribution of personal property
received by him from the United States of America.
(f) The Division of
General Services is authorized to act as clearinghouse of
information for the public and private nonprofit institutions,
organizations and agencies referred to in subparagraph (a) of
this section and other institutions eligible to acquire federal
surplus personal property, to locate both real and personal
property available for acquisition from the United States of
America, to ascertain the terms and conditions under which such
property may be obtained, to receive requests from the
above-mentioned institutions, organizations, and agencies
and to transmit to them all available information in reference
to such property, and to aid and assist such institutions,
organizations, and agencies in every way possible in the
consummation of acquisitions or transactions hereunder.
(g) The Division of
General Services, in the administration of this chapter, shall
cooperate to the fullest extent consistent with the provisions
of the act, and with the departments or
agencies of the United States of America, and
shall file a State plan of operation, and
operate in accordance therewith, and take such
action as may be necessary to meet the minimum standards
prescribed in accordance with the act, and make
such reports in such form and containing such information as the
United States of America or any of its departments or agencies
may from time to time require, and it shall
comply with the laws of the United States of America and the
rules and regulations of any of the departments or agencies of
the United States of America governing the allocation, transfer,
use or accounting for, property donable or donated to the State.
Section 3-9-20. The
Director of the Division of General Services may delegate such
power and authority as he deems reasonable and proper for the
effective administration of this chapter. The State
Budget and Control Board South Carolina Department
of Administration may require bond of any person in the
employ of the Division of General Services receiving or
distributing property from the United States under authority of
this chapter.
Section 3-9-30. Any charges made or fees assessed by the Division of General Services for the acquisition, warehousing, distribution, or transfer of any property of the United States of America for educational, public health, or civil defense purposes, including research for any such purpose, or for any purpose which may now be or hereafter become eligible under the act, shall be limited to those reasonably related to the costs of care and handling in respect to its acquisition, receipt, warehousing, distribution, or transfer.
Section 3-9-40. The provisions of this chapter shall not apply to the acquisition of property acquired by agencies of the State under the priorities established by Section 308 (b), Title 23, United States Code, Annotated."
K. Section 10-1-10 of the 1976 Code, as last amended by Act 628 of 1988, is further amended to read:
"Section 10-1-10.
The State Budget and Control Board
Department of Administration shall keep,
landscape, cultivate, and beautify the State House and
State House grounds with authority to expend such amounts as may
be annually appropriated therefor. The board
department shall employ all help and labor in policing,
protecting, and caring for the State House and State
House grounds and shall have full authority over them."
L. Section 10-1-30 of the 1976 Code, as last amended by Act 628 of 1988, is further amended to read:
"Section 10-1-30.
(A) The Director of the
Division of General Services of the State Budget and
Control Board may authorize the use of the
State House lobbies, areas of State House except for
those provided in subsection (B), the State House steps and
grounds, and other public buildings and grounds except for
those provided in subsection (B) in accordance with
regulations promulgated by the board
department and the laws of this State.
(B) The Clerk
of the Senate and the Clerk of the House of Representatives
shall provide joint approval for access to or the use of the
second and third floors of the State House; provided, that use
of the respective chambers of each house shall be the
prerogative of that house. The director shall
obtain the approval of the Clerk of the Senate
before authorizing shall provide prior
authorization for any access to or use of the
Gressette Senate Office Building and
shall obtain the approval of the Clerk of the
House of Representatives before authorizing
shall provide prior authorization for any access to
or use of the Blatt House Office
Building. Management and supervision of the office buildings
of each house of the General Assembly shall be exercised by
their presiding officer acting through the respective
clerks.
(C) The
regulations promulgated pursuant to subsection (A) must
contain provisions to insure ensure that
the public health, safety, and welfare will be
are protected in the use of the areas including
reasonable time, place, and manner restrictions and application
periods before use. If sufficient measures cannot
be are not taken to protect the public health,
safety, and welfare, the director shall deny the requested use.
Other restrictions may be imposed on the use of the areas as are
necessary for the conduct of business in those areas and the
maintenance of the dignity, decorum, and aesthetics of the
areas."
M. Section 10-1-130 of the 1976 Code is amended to read:
"Section 10-1-130.
The trustees or governing bodies of state institutions and
agencies may grant easements and rights of way over any property
under their control, upon the concurrence and
acquiescence of the State Budget and Control Board
recommendation of the Department of Administration and
approval of the State Contracts and Accountability
Authority, whenever it appears that such easements
will do not materially impair the
utility of the property or damage it and, when a consideration
is paid therefor, any such amounts
shall must be placed in the State
Treasury to the credit of the institution or agency having
control of the property involved."
N. Section 10-1-190 of the 1976 Code, as added by Act 145 of 1995, is amended to read:
"Section 10-1-190.
As part of the approval process relating to trades of
state property for nonstate property, the Budget and
Control Board Department of Administration is
authorized to approve the application of any net proceeds
resulting from such a transaction to the improvement of the
property held by the board
department."
O. Chapter 9, Title 10 of the 1976 Code is amended to read:
Section 10-9-10. The
Public Service Authority may, through its board of directors,
make and execute leases of gas, oil, and other minerals
and mineral rights, excluding phosphate and lime and phosphatic
deposits, over and upon the lands and properties owned by said
authority; and the State Budget and Control
Board South Carolina Department of
Administration and the forfeited land commissions of the
several counties of this State may, with the
approval of the Attorney General, make and execute such leases
over and upon the lands and waters of the State and of the
several counties under the ownership,
management, or control of such Board
the department and commissions respectively.
Section 10-9-20. No such lease shall provide for a royalty of less than twelve and one-half per cent of production of oil and gas from the lease.
Section 10-9-30.
Nothing contained in this article shall estop the State
from enacting proper laws for the conservation of the oil, gas
and other mineral resources of the State and all leases and
contracts made under authority of this article shall be subject
to such laws; provided, that the State Budget and
Control Board South Carolina Department of
Administration may negotiate for leases of oil, gas,
and other mineral rights upon all of the lands and waters of the
State, including offshore marginal and submerged lands.
Section 10-9-35. In
the event that the State of South Carolina is the recipient of
revenues derived from offshore oil leases within the
jurisdictional limits of the State such revenues shall be
deposited with the State Treasurer in a special fund and shall
be expended only by authorization of the General Assembly.
Funds so accumulated shall be expended only
for the following purposes:
(1) to retire the
bonded indebtedness incurred by South Carolina;
(2) for capital
improvement expenditures.
Section 10-9-40. The
authority conferred upon the Public Service Authority, the
State Budget and Control Board South
Carolina Department of Administration, and the forfeited
land commissions by this article shall be cumulative and in
addition to the rights and powers heretofore vested by law in
such authority, such State Budget and Control
Board the South Carolina Department of
Administration, and such commissions, respectively.
Section 10-9-110. The
State Budget and Control Board South
Carolina Department of Administration shall be charged with
the exclusive control and protection of the rights and interest
of the State in the phosphate rocks and phosphatic deposits in
the navigable streams and in the marshes thereof.
Section 10-9-120. The
Board department may inquire into and
protect the interests of the State in and to any phosphatic
deposits or mines, whether in the navigable waters of the State
or in land marshes or other territory owned or claimed by other
parties, and in the proceeds of any such mines and may take such
action for, or in behalf of, the State in regard thereto as it
may find necessary or deem proper.
Section 10-9-130. The
Board department may issue to any person
who applies for a lease or license granting a general right to
dig, mine, and remove phosphate rock and phosphatic
deposits from all the navigable streams, waters, and
marshes belonging to the State and also from such of the creeks,
not navigable, lying therein as may contain phosphate rock and
deposits belonging to the State and not previously granted.
Such leases or licenses may be for such terms as may be
determined by the Board department. The
annual report of the Board department to
the General Assembly shall include a list of all effective
leases and licenses. The Board
department may make a firm contract for the royalty to be
paid the State which shall not be increased during the life of
the license. Provided, that prior to the grant or issuance of
any lease or license, the Board
department shall cause to be published a notice of such
application in a newspaper having general circulation in the
county once a week for three successive weeks prior to the grant
or issuance. Provided, further However,
the lessee or licensee may shall not
take possession if there be is an
adverse claim and the burden of proving ownership in the State
shall be placed upon the lessee or licensee.
Section 10-9-140.
In every case in which such
an application shall be is made
to the Board department for a
license, the Board department may
grant or refuse the license as it may deem
considers best for the interest of the State and the
proper management of the interests of the State in
such those deposits.
Section 10-9-150. As a
condition precedent to the right to dig, mine, and remove
the rocks and deposits granted by any such
a license, each licensee shall enter into bond, with
security, in the penal sum of five thousand dollars, conditioned
for the making at the end of every month of true and faithful
returns to the Comptroller General of the number of tons of
phosphate rock and phosphatic deposits so dug or mined and the
punctual payment to the State Treasurer of the royalty provided
at the end of every quarter or three months.
Such The bond and sureties
thereon shall be are subject to the
approval required by law for the bonds of state officers.
Section 10-9-160.
Whenever the Board department
shall have reason to doubt the solvency of any surety whose name
appears upon any bond executed for the purpose of securing the
payment of the phosphate royalty by any person digging, mining
and removing phosphate rock or phosphatic deposits in any of the
territory, the property of the State, under any grant or
license, the Board department shall
forthwith notify the person giving such bond and the sureties
thereon and require that one or more sureties, as the case may
be, shall be added to the bond, such surety or sureties to be
approved by the Board department.
Section 10-9-170. The
Board department, upon petition filed by
any person who is surety on any such bond as aforesaid and who
considers himself in danger of being injured by such suretyship,
shall notify the person giving such bond to give a new bond with
other sureties and upon failure of such person to do so within
thirty days shall cause such person to suspend further
operations until a new bond be given. But in
In no case shall the sureties on the old bond be
discharged from liability thereon until the new bond has been
executed and approved, and such sureties shall not be discharged
from any antecedent liability by reason of such suretyship.
Section 10-9-180. The
Board department is hereby vested with
full and complete power and control over all mining in the
phosphate territory belonging to this State and over all persons
digging or mining phosphate rock or phosphatic deposit in the
navigable streams and waters or in the marshes thereof, with
full power and authority, subject to the provisions of Sections
10-9-130 and 10-9-190 to fix, regulate, raise, or reduce
such royalty per ton as shall from time to time be paid to the
State by such persons for all or any such phosphate rock dug,
mined, removed, and shipped or otherwise sent to the
market therefrom. But six Six months'
notice shall be given all persons at such time digging or mining
phosphate rock in such navigable streams, waters, or
marshes before any increase shall be made in the rate of royalty
theretofore existing.
Section 10-9-190. Each person to whom a license shall be issued must, at the end of every month, make to the Comptroller General a true and lawful return of the phosphate rock and phosphatic deposits he may have dug or mined during such month and shall punctually pay to the State Treasurer, at the end of every quarter or three months, a royalty of five cents per ton upon each and every ton of the crude rock (not of the rock after it has been steamed or dried), the first quarter to commence to run on the first day of January in each year.
Section 10-9-200. The
State Budget and Control Board Department of
Administration shall, within twenty days
after the grant of any license as aforesaid, shall notify
the Comptroller General of the issuing of such license, with the
name of the person to whom issued, the time of the
license, and the location for which it was issued.
Section 10-9-210. Every person who shall dig, mine, or remove any phosphate rock or phosphatic deposit from the beds of the navigable streams, waters, and marshes of the State without license therefor previously granted by the State to such person shall be liable to a penalty of ten dollars for each and every ton of phosphate rock or phosphatic deposits so dug, mined, or removed, to be recovered by action at the suit of the State in any court of competent jurisdiction. One-half of such penalty shall be for the use of the State and the other half for the use of the informer.
Section 10-9-220. It
shall be unlawful for any person to purchase or receive any
phosphate rock or phosphatic deposit dug, mined, or
removed from the navigable streams, waters, or marshes of
the State from any person not duly authorized by act of the
General Assembly of this State or license of the
Board department to dig, mine, or
remove such phosphate rock or phosphatic deposit.
Section 10-9-230. Any person violating Section 10-9-220 shall forfeit to the State the sum of ten dollars for each and every ton of phosphate rock or phosphatic deposit so purchased or received, to be recovered by action in any court of competent jurisdiction. One-half of such forfeiture shall be for the use of the State and the other half for the use of the informer.
Section 10-9-240.
Should any person whosoever interfere with,
obstruct, or molest or attempt to interfere with,
obstruct, or molest the Board
department or anyone by it authorized or licensed
hereunder in the peaceable possession and occupation for mining
purposes of any of the marshes, navigable streams, or
waters of the State, then the Board
department may, in the name and on behalf of the State,
take such measures or proceedings as it may be advised are
proper to enjoin and terminate any such molestation,
interference, or obstruction and place the State, through
its agents, the Board department or
anyone under it authorized, in absolute and practical possession
and occupation of such marshes, navigable streams, or
waters.
Section 10-9-250.
Should any person attempt to mine or remove phosphate rock
and phosphatic deposits from any of the marshes, navigable
waters, or streams, including the Coosaw River phosphate
territory, by and with any boat, vessel, marine dredge,
or other appliances for such mining or removal, without the
leave or license of the Board department
thereto first had and obtained, all such boats, vessels, marine
dredges, and other appliances are hereby declared
forfeited to and property of the State, and the Attorney
General, for and in behalf of the State, shall institute
proceedings in any court of competent jurisdiction for the claim
and delivery thereof, in the ordinary form of action for claim
and delivery, in which action the title of the State shall be
established by the proof of the commission of any such act of
forfeiture by the person owning them, or his agents, in
possession of such boats, vessels, marine dredges, or
other appliances. In any such action the State shall not be
called upon or required to give any bond or obligation such as
is required by parties plaintiff in action for claim and
delivery.
Section 10-9-260. Any
person wilfully interfering with, molesting, or
obstructing or attempting to interfere with, molest, or
obstruct the State or the State Budget and Control
Board Department of Administration or anyone by
it authorized or licensed in the peaceable possession and
occupation of any of the marshes, navigable streams, or
waters of the State, including the Coosaw River phosphate
territory, or who shall dig or mine or attempt to dig or mine
any of the phosphate rock or phosphatic deposits of this State
without a license so to do issued by the Board
department shall be punished for each offense by a fine
of not less than one hundred dollars nor more than five hundred
dollars or imprisonment for not less than one nor more than
twelve months, or both, at the discretion of the court.
Section 10-9-270. The
Board department shall report annually
to the General Assembly its actions and doings under this
article during the year to the time of the meeting of the
assembly, with an itemized account of its expenses for the year
incurred in connection with its duties and powers under this
article.
Section 10-9-310. For
purposes of this article 'geothermal resources'
mean means the natural heat of the earth
at temperatures greater than forty degrees Celsius and
includes:
(1) the energy,
including pressure, in whatever form present in, resulting from,
created by, or that may be extracted from that natural
heat.;
(2) the material
medium, including the brines, water, and steam naturally
present, as well as any substance artificially introduced to
serve as a heat transfer medium.;
(3) all dissolved
or entrained minerals and gases that may be obtained from the
material medium but excluding hydrocarbon substances and helium.
Section 10-9-320. The
State Budget and Control Board (board)
Department of Administration may lease development rights
to geothermal resources underlying surface lands owned by the
State. The board department must
promulgate regulations regarding the method of lease
acquisition, lease terms, and conditions due the State under
lease operations. The South Carolina Department of Natural
Resources is designated as the exclusive agent for the
board department in selecting lands to
be leased, administering the competitive bidding for leases,
administering the leases, receiving and compiling comments from
other state agencies concerning the desirability of leasing the
state lands proposed for leasing and such other activities that
pertain to geothermal resource leases as may be included herein
as responsibilities of the board
department.
Section 10-9-330. Any lease of rights to drill for and use oil, natural gas, or minerals on public or private lands must not allow drilling for or use of geothermal energy by the lessee unless the instrument creating the lease specifically provides for such use."
P. Section 10-11-50 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:
"Section 10-11-50.
It shall be unlawful for anyone to park any vehicle on any
of the property described in Section 10-11-40 and subsection (2)
of Section 10-11-80 except in the spaces and manner now marked
and designated or that may hereafter be marked and designated by
the State Budget and Control Board
Department of Administration, in cooperation with the
Department of Transportation, or to block or impede traffic
through the alleys and driveways."
Q. Section 10-11-90 of the 1976 Code is amended to read:
"Section 10-11-90.
The watchmen and policemen employed by the Budget
and Control Board for the protection of the property
described in Sections 10-11-30 and 10-11-40 and subsection (2)
of Section 10-11-80 are hereby vested with all of the powers,
privileges, and immunities of constables while on this
area or in fresh pursuit of those violating the law in this
area, provided that such watchmen and policemen take and file
the oath required of peace officers, execute and file bond in
the form required of state constables, in the amount of
one thousand dollars, with the Budget and Control
Board, and be duly commissioned by the Governor."
R. Section 10-11-110 of the 1976 Code is amended to read:
"Section 10-11-110.
In connection with traffic and parking violations only,
the watchmen and policemen referred to in Section 10-11-90,
state highway patrolmen and policemen of the City of Columbia
shall have the right to issue and use parking tickets of the
type used by the City of Columbia, with such changes as are
necessitated hereby, to be prepared and furnished by the
Budget and Control Board Department of
Administration, upon the issuance of which the procedures
shall be followed as prevail in connection with the use of
parking tickets by the City of Columbia. Nothing herein shall
restrict the application and use of regular arrest
warrants."
S. Section 10-11-140 of the 1976 Code is amended to read:
"Section 10-11-140.
Nothing contained in this article shall be construed to
abridge the authority of the State Budget and Control
Board Department of Administration to grant
permission to use the State House grounds for educational,
electrical decorations, and similar purposes."
T. Section 10-11-330 of the 1976 Code is amended to read:
"Section 10-11-330.
It shall be unlawful for any person or group of persons
willfully wilfully and knowingly: (a)
to enter or to remain within the capitol building unless such
person is authorized by law or by rules of the House or Senate
or of the State Budget and Control Board or
the Department of Administration, respectively, when such
entry is done for the purpose of uttering loud,
threatening, and abusive language or to engage in any
disorderly or disruptive conduct with the intent to impede,
disrupt, or disturb the orderly conduct of any session of
the legislature or the orderly conduct within the building or of
any hearing before or any deliberation of any committee or
subcommittee of the legislature; (b) to obstruct or to impede
passage within the capitol grounds or building; (c) to engage
in any act of physical violence upon the capitol grounds or
within the capitol building; or (d) to parade,
demonstrate, or picket within the capitol building."
U. Sections 11-9-610, 11-9-620, and 11-9-630 of the 1976 Code are amended to read:
"Section 11-9-610.
The State Budget and Control Board
Department of Administration shall receive and manage the
incomes and revenues set apart and applied to the Sinking Fund
of the State. The department shall report annually on the
financial status of the Sinking Fund to the General Assembly.
Section 11-9-620.
All moneys monies arising from the
redemption of lands, leases, and sales of property or
otherwise coming to the State Budget and Control
Board Department of Administration for the
Sinking Fund, shall must be paid into
the State Treasury and shall be kept on a
separate account by the treasurer as a fund to be drawn upon the
warrants of the Board department for the
exclusive uses and purposes which have been or shall be declared
in relation to the Sinking Fund.
Section 11-9-630. The
State Budget and Control Board Department of
Administration shall sell and convey, for and on behalf of
the State, all such real property, assets, and effects
belonging to the State as are not in actual public use, such
sales to be made from time to time in such manner and upon such
terms as it may deem most advantageous to the State. This shall
not be construed to authorize the sale by the
Board of any property held in trust for a specific
purpose by the State or the property of the State in the
phosphate rocks or phosphatic deposits in the beds of the
navigable streams and waters and marshes of the State."
V. Sections 11-35-3810 and 11-35-3830, both as last amended by Act 153 of 1997, and Sections 11-35-3820, 11-35-3840, and Section 11-35-5270, all as last amended by Act 376 of 2006, of the 1976 Code are further amended to read:
"Section 11-35-3810.
Subject to existing provisions of law, the
board Department of Administration shall
promulgate regulations governing:
(1) the sale, lease, or
disposal of surplus supplies by public auction, competitive
sealed bidding, or other appropriate methods designated by such
regulations;
(2) the transfer of
excess supplies between agencies and departments.
Section 11-35-3820.
Except as provided in Section 11-35-1580 and Section
11-35-3830 and the regulations pursuant to them, the sale of all
state-owned supplies, or personal property not in actual public
use must be conducted and directed by the designated
board office Division of Procurement Services of the
South Carolina Department of Administration. The sales must
be held at such places and in a manner as in the judgment of the
designated board office Division of
Procurement Services is most advantageous to the State.
Unless otherwise determined, sales must be by either public
auction or competitive sealed bid to the highest bidder. Each
governmental body shall inventory and report to the
designated board office division all
surplus personal property not in actual public use held by that
governmental body for sale. The designated board
office division shall deposit the proceeds from
the sales, less expense of the sales, in the state general fund
or as otherwise directed by regulation. This policy and
procedure applies to all governmental bodies unless exempt by
law.
Section 11-35-3830.
(1) Trade-in Value. Unless otherwise
provided by law, governmental bodies may trade-in personal
property, the trade-in value of which may be applied to the
procurement or lease of like items. The trade-in value of such
personal property shall not exceed an amount as specified in
regulations promulgated by the board
Department of Administration.
(2) Approval of
Trade-in Sales. When the trade-in value of personal property of
a governmental body exceeds the specified amount, the
board Department of Administration shall
have the authority to determine whether:
(a)
the subject personal property shall be traded in and the
value applied to the purchase of new like items; or
(b)
the property shall be classified as surplus and sold in
accordance with the provisions of Section 11-35-3820. The
board departmental determination shall
be in writing and be subject to the provisions of this chapter.
(3) Record of Trade-in
Sales. Governmental bodies shall submit quarterly to the
materials management officer a record listing all trade-in sales
made under subsections (1) and (2) of this section.
Section 11-35-3840. The
State Budget and Control Board Department of
Administration may license for public sale publications,
including South Carolina Business Opportunities, materials
pertaining to training programs, and information technology
products that are developed during the normal course of
the board's its activities. The items
must be licensed at reasonable costs established in accordance
with the cost of the items. All proceeds from the sale of the
publications and materials must be placed in a revenue account
and expended for the cost of providing the services.
Section 11-35-5270. A
Small and Minority Business Assistance Office (SMBAO)
shall must be established within the
Department of Administration to assist the
board Department of Administration and
the Department of Revenue in carrying out the intent of this
article. The responsibilities of the office
shall include, but are not
be limited to, the following:
(1)
Assist assisting the chief
procurement officers and governmental bodies in developing
policies and procedures which will facilitate awarding contracts
to small and minority firms;
(2)
Assist assisting the chief
procurement officers in aiding small and minority-owned firms
and community-based business in developing organizations to
provide technical assistance to minority firms;
(3)
Assist assisting with the
procurement and management training for small and minority firm
owners;
(4)
Assist assisting in the
identification of responsive small and minority firms;
(5) Receive and
process receiving and processing applications to
be registered as a minority firm in accordance with Section
11-35-5230(B);
(6) The SMBAO
may revoke revoking the certification of any
firm which that has been found to have
engaged in any of the following:
(a)
fraud or deceit in obtaining the certification;
(b)
furnishing of substantially inaccurate or incomplete
information concerning ownership or financial status;
(c)
failure to report changes which affect the requirements
for certification;
(d)
gross negligence, incompetence, financial
irresponsibility, or misconduct in the practice of his business;
or
(e)
wilful violation of any provision of this article.
(7) After a period of
one year, the SMBAO may reissue a certificate of eligibility
provided acceptable evidence has been presented to the
commission that the conditions which caused the revocation have
been corrected."
W. Section 11-53-20 of the 1976 Code is amended to read:
"Section 11-53-20.
It is mandated by the General Assembly that the SCEIS
shall be implemented for all agencies, with the exception of
lump sum agencies, the General Assembly or its respective
branches or its committees, Legislative Council, and the Office
of Legislative Printing and Information Technology Resources.
The South Carolina Enterprise Information System Oversight
Committee, as appointed by the Comptroller General, shall
provide oversight for the implementation and continued
operations of the system. The Budget and Control
Board Department of Administration is authorized
to use any available existing technology resources to assist
with funding of the initial implementation of the system. It is
further the intent of the General Assembly to fund the central
government costs related to the implementation of the system.
Agencies are required to implement SCEIS at a cost and in
accordance with a schedule developed and approved by the SCEIS
Oversight Committee. Full implementation must be completed
within five years. An agency's implementation cost shall be
borne by that agency through existing appropriations, grants,
and/or the State Treasurer's Master Lease Program and shall be
for the implementation of the 'back office' administrative
functions that are common to all agencies in the areas of
purchasing, finance, human resources, payroll, and budgeting.
Any issues arising with regard to project scope, implementation
schedule, and associated costs shall be directed to the SCEIS
Oversight Committee for resolution. In cooperation with the
Comptroller General and the Budget and Control Board's
Division of the State CIO Department of
Administration, the South Carolina Enterprise Information
System Oversight Committee is required to report by January 31,
of the fiscal year to the Governor, the Chairman of the Senate
Finance Committee, and the Chairman of the House Ways and Means
Committee the status of the system's implementation and ongoing
operations."
X. Section 13-7-810 of the 1976 Code is amended to read:
"Section 13-7-810. There is hereby established a Governor's Nuclear Advisory Council in the Department of Administration, which shall be responsible to the Director of the Department of Administration and report to the Governor."
Y. Section 13-7-830 of the 1976 Code is amended to read:
"Section 13-7-830.
The recommendations described in Section 13-7-620 shall
be made available to the General Assembly,
and the Governor, and the Budget and Control
Board."
Z. Section 13-7-860 of the 1976 Code is amended to read:
"Section 13-7-860.
Staff support for the council shall be provided by the
State Energy Office Department of
Administration."
AA. Section 16-3-1620(A), (B), and (C) of the 1976 Code, as last amended by Act 271 of 2008, is further amended to read:
"(A) The Crime
Victims' Ombudsman of the Office of the
Governor to be administratively a part of the
Department of Administration is created. The Crime Victims'
Ombudsman is appointed by the Governor with the advice and
consent of the Senate and serves at the pleasure of the
Governor.
(B) The Crime Victims' Ombudsman of the
Office of the Governor Department of
Administration shall:
(1) refer crime
victims to the appropriate element of the criminal and juvenile
justice systems or victim assistance programs, or both, when
services are requested by crime victims or are necessary as
determined by the ombudsman;
(2) act as a liaison
between elements of the criminal and juvenile justice systems,
victim assistance programs, and victims when the need for
liaison services is recognized by the ombudsman; and
(3) review and attempt
to resolve complaints against elements of the criminal and
juvenile justice systems or victim assistance programs, or both,
made to the ombudsman by victims of criminal activity within the
state's jurisdiction.
(C) There is created within the Crime
Victims' Ombudsman Office of the Office of the
Governor Department of Administration, the
Office of Victim Services Education and Certification which
shall:
(1) provide oversight
of training, education, and certification of victim assistance
programs;
(2) with approval of
the Victim Services Coordinating Council, promulgate training
standards and requirements;
(3) approve training
curricula for credit hours toward certification;
(4) provide victim
service provider certification; and
(5) maintain records
of certified victim service providers."
BB. Section 16-3-1680 of the 1976 Code as added by Act 271 of 2008 is amended to read:
"Section 16-3-1680.
The Crime Victims' Ombudsman
of the Office of the Governor
through the Department of Administration may promulgate
those regulations necessary to assist it in performing its
required duties as provided by this chapter."
CC. 1. Section 25-11-10 of the 1976 Code amended to read:
"Section 25-11-10.
A Division of Veterans' Affairs in the Office of
the Governor to be administratively a part of the
Department of Administration is hereby created for the
purpose of assisting ex-servicemen in securing the benefits to
which they are entitled under the provisions of federal
legislation and under the terms of insurance policies issued by
the federal government for their benefit. This division shall
be under the direct supervision of a panel consisting of the
Governor as chairman, the Attorney General for the purpose of
giving legal advice, and the Adjutant and Inspector
General."
2. Section 25-11-80(C)(3) of the 1976 Code is amended to read:
"(3) the
Budget and Control Board Department of
Administration."
3. Section 25-11-90(E) of the 1976 Code is amended to read:
"(E) The
preparation and distribution of the roster is subject to the
availability of funds as appropriated by the General Assembly to
the Governor's Office Department of
Administration, Division of Veterans Affairs for this
purpose. These rosters and their distribution must be
maintained and updated based on workloads and availability of
funds."
4. Section 25-11-310(2) of the 1976 Code is amended to read:
"(2) 'Division'
means the Division of Veterans Affairs in the Office of
the Governor Department of Administration."
DD. Section 44-53-530(a) and (b) of the 1976 Code, as last amended by Act 345 of 2006, is further amended to read:
"(a) Forfeiture of
property defined in Section 44-53-520 must be accomplished by
petition of the Attorney General or his designee or the circuit
solicitor or his designee to the court of common pleas for the
jurisdiction where the items were seized. The petition must be
submitted to the court within a reasonable time period following
seizure and shall set forth the facts upon which the seizure was
made. The petition shall describe the property and include the
names of all owners of record and lienholders of record. The
petition shall identify any other persons known to the
petitioner to have interests in the property. Petitions for the
forfeiture of conveyances shall also include: the make, model,
and year of the conveyance, the person in whose name the
conveyance is registered, and the person who holds the title to
the conveyance. The petition shall set forth the type and
quantity of the controlled substance involved. A copy of the
petition must be sent to each law enforcement agency which has
notified the petitioner of its involvement in effecting the
seizure. Notice of hearing or rule to show cause must be
directed to all persons with interests in the property listed in
the petition, including law enforcement agencies which have
notified the petitioner of their involvement in effecting the
seizure. Owners of record and lienholders of record may be
served by certified mail, to the last known address as appears
in the records of the governmental agency which records the
title or lien.
The judge shall determine whether the
property is subject to forfeiture and order the forfeiture
confirmed. If the judge finds a forfeiture, he shall then
determine the lienholder's interest as provided in this article.
The judge shall determine whether any property must be returned
to a law enforcement agency pursuant to Section 44-53-582.
If there is a dispute as to the
division allocation of the proceeds of
forfeited property among participating law enforcement agencies,
this issue must be determined by the judge. The proceeds from a
sale of property, conveyances, and equipment must be disposed of
pursuant to subsection (e) of this section.
All property, conveyances, and equipment
which will not be reduced to
proceeds may be transferred to the law enforcement agency or
agencies or to the prosecution agency. Upon agreement of the
law enforcement agency or agencies and the prosecution agency,
conveyances and equipment may be transferred to any other
appropriate agency. Property transferred must not be used to
supplant operating funds within the current or future budgets.
If the property seized and forfeited is an aircraft or
watercraft and is transferred to a state law enforcement agency
or other state agency pursuant to the provisions of this
subsection, its use and retainage by that agency shall be at the
discretion and approval of the Budget and Control
Board Department of Administration.
If a defendant or his attorney sends
written notice to the petitioner or the seizing agency of his
interest in the subject property, service may be made by mailing
a copy of the petition to the address provided and service may
not be made by publication. In addition, service by publication
may not be used for a person incarcerated in a South Carolina
Department of Corrections facility, a county detention facility,
or other facility where inmates are housed for the county where
the seizing agency is located. The seizing agency shall check
the appropriate institutions after receiving an affidavit of
nonservice before attempting service by publication.
(b) If the property is
seized by a state law enforcement agency and is not transferred
by the court to the seizing agency, the judge shall order it
transferred to the Division of General Services of the
Department of Administration for sale. Proceeds may be used
by the division for payment of all proper expenses of the
proceedings for the forfeiture and sale of the property,
including the expenses of seizure, maintenance, and custody, and
other costs incurred by the implementation of this section. The
net proceeds from any sale must be remitted to the State
Treasurer as provided in subsection (g) of this section. The
Division of General Services of the South Carolina Department
of Administration may authorize payment of like expenses in
cases where monies, negotiable instruments, or securities are
seized and forfeited."
EE. Section 44-96-140 of the 1976 Code is amended to read:
"Section 44-96-140.
(A) Not later than twelve months after
the date on which the department submits the state solid waste
management plan to the Governor and to the General Assembly, the
General Assembly, the Governor's Office of
the Governor, the Judiciary, each state agency, and each
state-supported institution of higher education shall:
(1)
establish a source separation and recycling program in
cooperation with the department and the Division of General
Services of the State Budget and Control Board
Department of Administration for the collection of
selected recyclable materials generated in state offices
throughout the State including, but not limited to, high-grade
office paper, corrugated paper, aluminum, glass, tires,
composting materials, plastics, batteries, and used oil;
(2)
provide procedures for collecting and storing recyclable
materials, containers for storing materials, and contractual or
other arrangements with collectors or buyers of the recyclable
materials, or both;
(3)
evaluate the amount of waste paper material recycled and
make all necessary modifications to the recycling program to
ensure that all waste paper materials are recycled to the
maximum extent feasible; and
(4)
establish and implement, in cooperation with the
department and the Division of General Services of the
Department of Administration, a solid waste reduction
program for materials used in the course of agency operations.
The program shall be designed and implemented to achieve the
maximum feasible reduction of solid waste generated as a result
of agency operations.
(B) Not later than
September fifteen of each year, each state agency and each
state-supported institution of higher learning shall submit to
the department a report detailing its source separation and
recycling program and a review of all goods and products
purchased during the previous fiscal year by those agencies and
institutions containing recycled materials using the content
specifications established by the Office of Materials
Management Division of General Services, Department
of Administration.
(C) By November first
of each year the department shall submit a report to the
Governor and to the General Assembly reviewing all goods and
products purchased by the State and determining what percentage
of state purchases contain recycled materials using content
specifications established by the Office of Materials
Management, Division of General Services, Department
of Administration. The report also must review existing
procurement regulations for the purchase of products and
materials and must identify any portions of such regulations
that discriminate against products and materials with recycled
content and products and materials which are recyclable.
(D) Not later than one
year after this chapter is effective, the Division of General
Services, Department of Administration shall amend the
procurement regulations to eliminate the portions of the
regulations identified in its report as discriminating against
products and materials with recycled content and products and
materials which are recyclable.
(E) Not later than one
year after the effective date of the amendments to the
procurement regulations, the General Assembly, the
Governor's Office of the Governor, the
Judiciary, all state agencies, all political subdivisions using
state funds to procure items, and all persons contracting with
such agency or political subdivision where such persons procure
items with state funds shall procure products and materials with
recycled content and products and materials which are recyclable
where practicable, as determined by the Office of
Materials Management, Division of General Services,
Department of Administration. The list of recycled content
specifications must be updated annually. It is the goal of the
General Assembly for state and local governmental agencies to
reflect a twenty-five percent goal in their procurement
policies. The decision not to procure such items shall be based
on a determination that such procurement items:
(1)
are not available within a reasonable period of time;
(2)
fail to meet the performance standards set forth in the
applicable specifications; or
(3)
are only available at a price that exceeds by more than
seven and one- half percent the price of alternative items.
(F) Not later than six
months after this chapter is effective, and annually thereafter,
the Department of Transportation shall submit a report to the
Governor and to the General Assembly on the use of:
(1)
compost as a substitute for regular soil amendment
products in all highway projects;
(2)
solid waste including, but not limited to, ground rubber
from tires and fly ash or mixtures of them from coal-fired
electrical facilities in road surfacing of subbase materials;
(3)
solid waste including, but not limited to, glass
aggregate, plastic, and fly ash in asphalt or concrete; and
(4)
recycled mixed-plastic materials for guardrail posts,
right-of-way fence posts, and sign supports."
FF. Section 48-46-30(4) and (5) of the 1976 Code are amended to read:
"(4)
'Board' means the South Carolina Budget and
Control Board or its designated official.
(5)
'Decommissioning trust fund' means the trust fund
established pursuant to a Trust Agreement dated March 4, 1981,
among Chem-Nuclear Systems, Inc. (grantor), the South
Carolina Budget and Control Board Department of
Administration (beneficiary), and the South Carolina State
Treasurer (trustee), whose purpose is to assure adequate funding
for decommissioning of the disposal site, or any successor fund
with a similar purpose.
(5)
'Department' means the Office of Regulatory
Staff."
GG. Section 48-46-40 of the 1976 Code is amended to read:
"Section 48-46-40.
(A)(1) The board
department shall approve disposal rates for low-level
radioactive waste disposed at any regional disposal facility
located within the State. The approval of disposal rates
pursuant to this chapter is neither a regulation nor the
promulgation of a regulation as those terms are specially used
in Title 1, Chapter 23.
(2)
The board department shall adopt a
maximum uniform rate schedule for regional generators containing
disposal rates that include the administrative surcharges
specified in Section 48-46-60(B) and surcharges for the extended
custody and maintenance of the facility pursuant to Section
13-7-30(4) and that do not exceed the approximate disposal
rates, excluding any access fees and including a specification
of the methodology for calculating fees for large components,
generally applicable to regional generators on September 7,
1999. Any disposal rates contained in a valid written agreement
that were applicable to a regional generator on September 7,
1999, that differ from rates in the maximum uniform rate
schedule will continue to be honored through the term of such
agreement. The maximum uniform rate schedule approved under
this section becomes effective immediately upon South Carolina's
membership in the Atlantic Compact. The maximum uniform rate
schedule shall be the rate schedule applicable to regional waste
whenever it is not superseded by an adjusted rate approved by
the board department pursuant to
paragraph (3) of this subsection or by special disposal rates
approved pursuant to paragraphs (5) or (6)(e) of this
subsection.
(3)
The board department may at any
time of its own initiative, at the request of a site operator,
or at the request of the compact commission, adjust the disposal
rate or the relative proportions of the individual components
that constitute the overall rate schedule. Except as adjusted
for inflation in subsection (4), rates adjusted in accordance
with this section, that include the administrative surcharges
specified in Section 48-46-60(B) and surcharges for the extended
custody and maintenance of the facility pursuant to Section
13-7-30(4), may not exceed initial disposal rates set by the
board department pursuant to subsection
(2).
(4)
In March of each year the board
department shall adjust the rate schedule based on the
most recent changes in the most nearly applicable Producer Price
Index published by the Bureau of Labor Statistics as chosen by
the board department or a successor
index.
(5)
In consultation with the site operator, the
board department or its designee, on a
case-by-case basis, may approve special disposal rates for
regional waste that differ from the disposal rate schedule for
regional generators set by the board
department pursuant to subsections (2) and (3). Requests
by the site operator for such approval shall be in writing to
the board department. In approving such
special rates, the board department or
its designee, shall consider available disposal capacity, demand
for disposal capacity, the characteristics of the waste, the
potential for generating revenue for the State, or other
relevant factors; provided, however, that the
board department shall not approve any
special rate for an entity owned by or affiliated with the site
operator. Special disposal rates approved by the
board department under this subsection
shall be in writing and shall be kept confidential as
proprietary business information for one year from the date when
the bid or the request for proposal containing the special rate
is accepted by the regional generator; provided, however, that
such special rates when accepted by a regional generator shall
be disclosed to the compact commission and to all other regional
generators, which shall, to the extent permitted by applicable
law, keep them confidential as proprietary business information
for one year from the date when the bid or request for proposal
containing this special rate is accepted by the regional
generator. Within one business day of a special disposal rate's
acceptance, the site operator shall notify the
board department, the compact
commission, and the regional generators of each special rate
that has been accepted by a regional generator, and the
board department, the compact
commission, and regional generators may communicate with each
other about such special rates. If any special rate approved by
the board department for a regional
generator is lower than a disposal rate approved by the
board department for regional generators
pursuant to subsections (2) and (3) for waste that is generally
similar in characteristics and volume, the disposal rate for all
regional generators shall be revised to equal the special rate
for the regional generator. Regional generators may enter into
contracts for waste disposal at such special rates and on
comparable terms for a period of not less than six months. An
officer of the site operator shall certify in writing to the
board department and the compact
commission each month that no regional generator's disposal rate
exceeds any other regional generator's special rate for waste
that is generally similar in characteristics and volume, and
such certification shall be subject to periodic audit by the
board department and the compact
commission.
(6)(a)
To the extent authorized by the compact commission, the
board department on behalf of the State
of South Carolina may enter into agreements with any person in
the United States or its territories or any interstate compact,
state, U.S. territory, or U.S. Department of Defense military
installation abroad for the importation of waste into the region
for purposes of disposal at a regional disposal facility within
South Carolina. No waste from outside the Atlantic Compact
region may be disposed at a regional disposal facility within
South Carolina, except to the extent that the
board department is authorized by the
compact commission to enter into agreements for importation of
waste.
The board
department shall authorize the importation of nonregional
waste into the region for purposes of disposal at the regional
disposal facility in South Carolina so long as nonregional waste
would not result in the facility accepting more than the
following total volumes of all waste:
(i)
160,000 cubic feet in fiscal year
2001;
(ii)
80,000 cubic feet in fiscal year 2002;
(iii)
70,000 cubic feet in fiscal year 2003;
(iv)
60,000 cubic feet in fiscal year 2004;
(v)
50,000 cubic feet in fiscal year 2005;
(vi)
45,000 cubic feet in fiscal year 2006;
(vii)
40,000 cubic feet in fiscal year 2007;
(viii)
35,000 cubic feet in fiscal year 2008.
After fiscal year 2008, the
board department shall not authorize the
importation of nonregional waste for purposes of disposal.
(b)
The board department may approve
disposal rates applicable to nonregional generators. In
approving disposal rates applicable to nonregional generators,
the board department may consider
available disposal capacity, demand for disposal capacity, the
characteristics of the waste, the potential for generating
revenue for the State, and other relevant factors.
(c)
Absent action by the board
department under subsection (b) above to establish
disposal rates for nonregional generators, rates applicable to
these generators must be equal to those contained in the maximum
uniform rate schedule approved by the board
department pursuant to paragraph (2) or (3) of this
subsection for regional generators unless these rates are
superseded by special disposal rates approved by the
board department pursuant to paragraph
(6)(e) of this subsection.
(d)
Regional generators shall not pay disposal rates that are
higher than disposal rates for nonregional generators in any
fiscal quarter.
(e)
In consultation with the site operator, the
board department or its designee, on a
case-by-case basis, may approve special disposal rates for
nonregional waste that differ from the disposal rate schedule
for nonregional generators set by the board
department. Requests by the site operator for such
approval shall be in writing to the board
department. In approving such special rates, the
board department or its designee shall
consider available disposal capacity, demand for disposal
capacity, the characteristics of the waste, the potential for
generating revenue for the State, and other relevant factors;
provided, however, that the board
department shall not approve any special rate for an
entity owned by or affiliated with the site operator. Special
disposal rates approved by the board
department under this subsection shall be in writing and
shall be kept confidential as proprietary business information
for one year from the date when the bid or request for proposal
containing the special rate is accepted by the nonregional
generator; provided, however, that such special rates when
accepted by a nonregional generator shall be disclosed to the
compact commission and to all regional generators, which shall,
to the extent permitted by applicable law, keep them
confidential as proprietary business information for one year
from the date when the bid or request for proposal containing
the special rate is accepted by the nonregional generator.
Within one business day of a special disposal rate's acceptance,
the site operator shall notify the board
department, the compact commission, and the regional
generators in writing of each special rate that has been
accepted by a nonregional generator, and the
board department, the compact
commission, and regional generators may communicate with each
other about such special rates. If any special rate approved by
the board department for a nonregional
generator is lower than a disposal rate approved by the
board department for regional generators
for waste that is generally similar in characteristics and
volume, the disposal rate for all regional generators shall be
revised to equal the special rate for the nonregional generator.
Regional generators may enter into contracts for waste disposal
at such special rate and on comparable terms for a period of not
less than six months. An officer of the site operator shall
certify in writing to the board
department and the compact commission each month that no
regional generator disposal rate exceeds any nonregional
generator's special rate for waste that is generally similar in
characteristics and volume, and such certification shall be
subject to periodic audit by the board
department and the compact commission.
(B)(1) Effective upon
the implementation of initial disposal rates by the
board department under Section
48-46-40(A), the PSC is authorized and directed to identify
allowable costs for operating a regional low-level radioactive
waste disposal facility in South Carolina.
(2) In identifying the
allowable costs for operating a regional disposal facility, the
PSC shall:
(a)
prescribe a system of accounts, using generally accepted
accounting principles, for disposal site operators, using as a
starting point the existing system used by site operators;
(b)
assess penalties against disposal site operators if the
PSC determines that they have failed to comply with regulations
pursuant to this section; and
(c)
require periodic reports from site operators that provide
information and data to the PSC and parties to these
proceedings. The Office of Regulatory Staff shall obtain and
audit the books and records of the site operators associated
with disposal operations as determined applicable by the
PSC.
(3)
Allowable costs include the costs of those activities
necessary for:
(a)
the receipt of waste;
(b)
the construction of disposal trenches, vaults, and
overpacks;
(c)
construction and maintenance of necessary physical
facilities;
(d)
the purchase or amortization of necessary equipment;
(e)
purchase of supplies that are consumed in support of waste
disposal activities;
(f)
accounting and billing for waste disposal;
(g)
creating and maintaining records related to disposed
waste;
(h)
the administrative costs directly associated with disposal
operations including, but not limited to, salaries, wages, and
employee benefits;
(i)
site surveillance and maintenance
required by the State of South Carolina, other than site
surveillance and maintenance costs covered by the balance of
funds in the decommissioning trust fund or the extended care
maintenance fund;
(j)
compliance with the license, lease,
and regulatory requirements of all jurisdictional agencies;
(k)
administrative costs associated with collecting the
surcharges provided for in subsections (B) and (C) of Section
48-46-60;
(l)
taxes other than income taxes;
(m)
licensing and permitting fees; and
(n)
any other costs directly associated with disposal
operations determined by the PSC to be allowable.
Allowable costs do not include the costs of
activities associated with lobbying and public relations,
clean-up and remediation activities caused by errors or
accidents in violation of laws, regulations, or violations of
the facility operating license or permits, activities of the
site operator not directly in support of waste disposal, and
other costs determined by the PSC to be unallowable.
(4)
Within ninety days following the end of a fiscal year, a
site operator may file an application with the PSC to adjust the
level of an allowable cost under subsection (3), or to allow a
cost not previously designated an allowable cost. A copy of the
application must be provided to the Office of Regulatory Staff.
The PSC shall process such application in accordance with its
procedures. If such application is approved by the PSC, the PSC
shall authorize the site operator to adjust allowable costs for
the current fiscal year so as to compensate the site operator
for revenues lost during the previous fiscal year.
(5)
A private operator of a regional disposal facility in
South Carolina is authorized to charge an operating margin of
twenty-nine percent. The operating margin for a given period
must be determined by multiplying twenty-nine percent by the
total amount of allowable costs as determined in this
subsection, excluding allowable costs for taxes and licensing
and permitting fees paid to governmental entities.
(6)
The site operator shall prepare and file with the PSC a
Least Cost Operating Plan. The plan must be filed within
forty-five days of enactment of this chapter and must be revised
annually. The plan shall include information concerning
anticipated operations over the next ten years and shall
evaluate all options for future staffing and operation of the
site to ensure least cost operation, including information
related to the possible interim suspension of operations in
accordance with subsection (B)(7). A copy of the plan must be
provided to the Office of Regulatory Staff.
(7)(a)
If the board department, upon the
advice of the compact commission or the site operator, concludes
based on information provided to the board
department, that the volume of waste to be disposed
during a forthcoming period of time does not appear sufficient
to generate receipts that will be adequate to reimburse the site
operator for its costs of operating the facility and its
operating margin, then the board
department shall direct the site operator to propose to
the compact commission plans including, but not necessarily
limited to, a proposal for discontinuing acceptance of waste
until such time as there is sufficient waste to cover the site
operator's operating costs and operating margin. Any proposal
to suspend operations must detail plans of the site operator to
minimize its costs during the suspension of operations. Any
such proposal to suspend operations must be approved by the
Department of Health and Environmental Control with respect to
safety and environmental protection.
(b)
Allowable costs applicable to any period of suspended
operations must be approved by the PSC according to procedures
similar to those provided herein for allowable operating costs.
During any such suspension of operations, the site operator must
be reimbursed by the board department
from the extended care maintenance fund for its allowable costs
and its operating margin. During the suspension funding to
reimburse the board department, the PSC,
and the State Treasurer under Section 48-46-60(B) and funding of
the compact commission under Section 48-46-60(C) must also be
allocated from the extended care maintenance fund as approved by
the board department based on revised
budgets submitted by the PSC, State Treasurer, and the compact
commission.
(c)
Notwithstanding any disbursements from the extended care
maintenance fund in accordance with any provision of this act,
the board department shall continue to
ensure, in accordance with Section 13-7-30, that the fund
remains adequate to defray the costs for future maintenance
costs or custodial and maintenance obligations of the site and
other obligations imposed on the fund by this chapter.
(d)
The PSC may promulgate regulations and policies necessary
to execute the provisions of this section.
(8)
The PSC may use any standard, formula, method, or theory
of valuation reasonably calculated to arrive at the objective of
identifying allowable costs associated with waste disposal. The
PSC may consider standards, precedents, findings, and decisions
in other jurisdictions that regulate allowable costs for
radioactive waste disposal.
(9)
In all proceedings held pursuant to this section, the
board department shall participate as a
party representing the interests of the State of South Carolina,
and the compact commission may participate as a party
representing the interests of the compact states. The Executive
Director of the Office of Regulatory Staff and the Attorney
General of the State of South Carolina shall be parties to any
such proceeding. Representatives from the Department of Health
and Environmental Control shall participate in proceedings where
necessary to determine or define the activities that a site
operator must conduct in order to comply with the regulations
and license conditions imposed by the department. Other parties
may participate in the PSC's proceedings upon satisfaction of
standing requirements and compliance with the PSC's procedures.
Any site operator submitting records and information to the PSC
may request that the PSC treat such records and information as
confidential and not subject to disclosure in accordance with
the PSC's procedures.
(10)
In all respects in which the PSC has power and authority
under this chapter, it shall conduct its proceedings under the
South Carolina Administrative Procedures Act and the PSC's rules
and regulations. The PSC is authorized to compel attendance and
testimony of a site operator's directors, officers, agents, or
employees.
(11)
At any time the compact commission, the
board department, or any generator
subject to payment of rates set pursuant to this chapter may
file a petition against a site operator alleging that allowable
costs identified pursuant to this chapter are not in conformity
with the directives of this chapter or the directives of the PSC
or that the site operator is otherwise not acting in conformity
with the requirements of this chapter or directives of the PSC.
Upon filing of the petition, the PSC shall cause a copy of the
petition to be served upon the site operator. The petitioning
party has the burden of proving that allowable costs or the
actions of the site operator do not conform. The hearing shall
conform to the rules of practice and procedure of the PSC for
other cases.
(12)
The PSC shall encourage alternate forms of dispute
resolution including, but not limited to, mediation or
arbitration to resolve disputes between a site operator and any
other person regarding matters covered by this chapter.
(C) The operator of a
regional disposal facility shall submit to the South Carolina
Department of Revenue, the PSC, the Office of Regulatory Staff,
and the board department within thirty
days following the end of each quarter a report detailing actual
revenues received in the previous fiscal quarter and allowable
costs incurred for operation of the disposal facility.
(D)(1) Within
30 thirty days following the end of the
fiscal year the operator of a regional disposal facility shall
submit a payment made payable to the South Carolina Department
of Revenue in an amount that is equal to the total revenues
received for waste disposed in that fiscal year (with interest
accrued on cash flows in accordance with instructions from the
State Treasurer) minus allowable costs, operating margin, and
any payments already made from such revenues pursuant to Section
48-46-60(B) and (C) for reimbursement of administrative costs to
state agencies and the compact commission. The Department of
Revenue shall deposit the payment with the State Treasurer.
(2)
If in any fiscal year total revenues do not cover
allowable costs plus the operating margin, the
board department must reimburse the site
operator its allowable costs and operating margin from the
extended care maintenance fund within thirty days after the end
of the fiscal year. The board
department shall as soon as practicable authorize a
surcharge on waste disposed in an amount that will fully
compensate the fund for the reimbursement to the site operator.
In the event that total revenues for a fiscal year do not cover
allowable costs plus the operating margin, or quarterly reports
submitted pursuant to subsection (C) indicate that such annual
revenue may be insufficient, the board
department shall consult with the compact commission and
the site operator as early as practicable on whether the
provisions of Section 48-46-40(B)(7) pertaining to suspension of
operations during periods of insufficient revenues should be
invoked.
(E) Revenues received
pursuant to item (1) of subsection (D) must be allocated as
follows:
(1)
The South Carolina State Treasurer shall distribute the
first two million dollars received for waste disposed during a
fiscal year to the County Treasurer of Barnwell County for
distribution to each of the parties to and beneficiaries of the
order of the United States District Court in C.A. No.
1:90-2912-6 on the same schedule of allocation as is established
within that order for the distribution of 'payments in lieu of
taxes' paid by the United States Department of Energy.
(2)
All revenues in excess of two million dollars received
from waste disposed during the previous fiscal year must be
deposited in a fund called the 'Nuclear Waste Disposal Receipts
Distribution Fund'. Any South Carolina waste generator whose
disposal fees contributed to the fund during the previous fiscal
year may submit a request for a rebate of 33.33 percent of the
funds paid by the generator during the previous fiscal year for
disposal of waste at a regional disposal facility. These
requests along with invoices or other supporting material must
be submitted in writing to the State Treasurer within fifteen
days of the end of the fiscal year. For this purpose disposal
fees paid by the generator must exclude any fees paid pursuant
to Section 48-46-60(C) for compact administration and fees paid
pursuant to Section 48-46-60(B) for reimbursement of the PSC,
the Office of Regulatory Staff, the State Treasurer, and the
board department for administrative
expenses under this chapter. Upon validation of the request and
supporting documentation by the State Treasurer, the State
Treasurer shall issue a rebate of the applicable funds to
qualified waste generators within sixty days of the receipt of
the request. If funds in the Nuclear Waste Disposal Receipts
Distribution Fund are insufficient to provide a rebate of 33.33
percent to each generator, then each generator's rebate must be
reduced in proportion to the amount of funds in the account for
the applicable fiscal year.
(3)
All funds deposited in the Nuclear Waste Disposal Receipts
Distribution Fund for waste disposed for each fiscal year, less
the amount needed to provide generators rebates pursuant to item
(2), shall be deposited by the State Treasurer in the
'Children's Education Endowment Fund'. Thirty percent of these
monies must be allocated to Higher Education Scholarship Grants
and used as provided in Section 59-143-30, and seventy percent
of these monies must be allocated to Public School Facility
Assistance and used as provided in Chapter 144 of Title 59.
(F) Effective beginning
fiscal year 2001-2002, there is appropriated annually from the
general fund of the State to the Higher Education Scholarship
Grants share of the Children's Education Endowment whatever
amount is necessary to credit to the Higher Education
Scholarship Grants share an amount not less than the amount
credited to that portion of the endowment in fiscal year
1999-2000. Revenues credited to the endowment pursuant to this
subsection, for purposes of Section 59-143-10, are deemed to be
received by the endowment pursuant to the former provisions of
Section 48-48-140(C)."
HH. Section 48-46-50 of the 1976 Code is amended to read:
"Section 48-46-50.
(A) The Governor shall appoint two
commissioners to the Atlantic Compact Commission and may appoint
up to two alternate commissioners. These alternate
commissioners may participate in meetings of the compact
commission in lieu of and upon the request of a South Carolina
commissioner. Technical representatives from the Department of
Health and Environmental Control, the board
department, the PSC, and other state agencies may
participate in relevant portions of meetings of the compact
commission upon the request of a commissioner, alternate
commissioner, or staff of the compact commission, or as called
for in the compact commission bylaws.
(B) South Carolina
commissioners or alternate commissioners to the compact
commission may not vote affirmatively on any motion to admit new
member states to the compact unless that state volunteers to
host a regional disposal facility.
(C) Compact
commissioners or alternate commissioners to the Atlantic Compact
Commission may not vote to approve a regional management plan or
any other plan or policy that allows for acceptance at the
Barnwell regional disposal facility of more than a total of
800,000 cubic feet of waste from Connecticut and New Jersey.
(D) South Carolina's
commissioners or alternate commissioners to the compact
commission shall cast any applicable votes on the compact
commission in a manner that authorizes the importation of waste
into the region for purposes of disposal at a regional disposal
facility in South Carolina so long as importation would not
result in the facility accepting more than the following total
volumes of all waste:
(1)
160,000 cubic feet in fiscal year 2001;
(2)
80,000 cubic feet in fiscal year 2002;
(3)
70,000 cubic feet in fiscal year 2003;
(4)
60,000 cubic feet in fiscal year 2004;
(5)
50,000 cubic feet in fiscal year 2005;
(6)
45,000 cubic feet in fiscal year 2006;
(7)
40,000 cubic feet in fiscal year 2007;
(8)
35,000 cubic feet in fiscal year 2008.
South Carolina's commissioners or alternate
commissioners shall not vote to approve the importation of waste
into the region for purposes of disposal in any fiscal year
after 2008."
II. Section 48-46-60 of the 1976 Code is amended to read:
"Section 48-46-60.
(A) The Governor and the
board department are authorized to take
such actions as are necessary to join the Atlantic Compact
including, but not limited to, petitioning the Compact
Commission for membership and participating in any and all
rulemaking processes. South Carolina's membership in the
Atlantic Compact pursuant to this chapter is effective July 1,
2000, if by that date the Governor certifies to the General
Assembly that the Compact Commission has taken each of the
actions specified below. If the Compact Commission by July 1,
2000, has not taken each of the actions specified below, then
South Carolina's membership shall become effective as soon
thereafter as the Governor certifies that the Atlantic Compact
Commission has taken these actions:
(1)
adopted a binding regulation or policy in accordance with
Article VII(e) of the compact establishing conditions for
admission of a party state that are consistent with this act and
ordered that South Carolina be declared eligible to be a party
state consistent with those conditions;
(2)
adopted a binding regulation or policy in accordance with
Article IV(i)(11) of the Atlantic Compact authorizing a host
state to enter into agreements on behalf of the compact and
consistent with criteria established by the compact commission
and consistent with the provisions of Section 48-46-40(A)(6)(a)
and Section 48-46-50(D) with any person for the importation of
waste into the region for purposes of disposal, to the extent
that these agreements do not preclude the disposal facility from
accepting all regional waste that can reasonably be projected to
require disposal at the regional disposal facility consistent
with subitem (5)(b) of this section;
(3)
adopted a binding regulation or policy in accordance with
Article IV(i)(12) of the Atlantic Compact authorizing each
regional generator, at the generator's discretion, to ship waste
to disposal facilities located outside the Atlantic Compact
region;
(4)
authorized South Carolina to proceed with plans to
establish disposal rates for low-level radioactive waste
disposal in a manner consistent with the procedures described in
this chapter;
(5)
adopted a binding regulation, policy, or order officially
designating South Carolina as a volunteer host state for the
region's disposal facility, contingent upon South Carolina's
membership in the compact, in accordance with Article V.b.1. of
the Atlantic Compact, thereby authorizing the following
compensation and incentives to South Carolina:
(a)
agreement, as evidenced in a policy, regulation, or order
that the compact commission will issue a payment of twelve
million dollars to the State of South Carolina. Before issuing
the twelve million-dollar payment, the compact commission will
deduct and retain from this amount seventy thousand dollars,
which will be credited as full payment of South Carolina's
membership dues in the Atlantic Compact. The remainder of the
twelve million-dollar payment must be credited to an account in
the State Treasurer's office, separate and distinct from the
fund, styled 'Barnwell Economic Development Fund'. This fund,
and earnings on this fund which must be credited to the fund,
may only be expended for purposes of economic development in the
Barnwell County area including, but not limited to, projects of
the Barnwell County Economic Development Corporation and
projects of the Tri-County alliance which includes Barnwell,
Bamberg, and Allendale Counties and projects in the Williston
area of Aiken County. Economic development includes, but is not
limited to, industrial recruitment, infrastructure construction,
improvement, and expansion, and public facilities construction,
improvement, and expansion. These funds must be spent according
to guidelines established by the Barnwell County governing body
and upon approval of the board
department. Expenditures must be authorized by the
Barnwell County governing body and with the approval of the
board department. Upon approval of the
Barnwell County governing body and the board
department, the State Treasurer shall submit the approved
funds to the Barnwell County Treasurer for disbursement pursuant
to the authorization;
(b)
adopted a binding regulation, policy, or order consistent
with the regional management plan developed pursuant to Article
V(a) of the Atlantic Compact, limiting Connecticut and New
Jersey to the use of not more than 800,000 cubic feet of
disposal capacity at the regional disposal facility located in
Barnwell County, South Carolina, and also ensuring that up to
800,000 cubic feet of disposal capacity remains available for
use by Connecticut and New Jersey unless this estimate of need
is later revised downward by unanimous consent of the compact
commission;
(c)
agreement, as evidenced in a policy or regulation, that
the compact commission headquarters and office will be relocated
to South Carolina within six months of South Carolina's
membership; and
(d)
agreement, as evidenced in a policy or regulation, that
the compact commission will, to the extent practicable, hold a
majority of its meetings in the host state for the regional
disposal facility.
(B) The
board department, the State Treasurer,
and the PSC shall provide the required staff and may add
additional permanent or temporary staff or contract for
services, as well as provide for operating expenses, if
necessary, to administer new responsibilities assigned under
this chapter. In accordance with Article V.f.2. of the Atlantic
Compact the compensation, costs, and expenses incurred incident
to administering these responsibilities may be paid through a
surcharge on waste disposed at regional disposal facilities
within the State. To cover these costs the
board department shall impose a
surcharge per unit of waste received at any regional disposal
facility located within the State. A site operator shall
collect and remit these fees to the board
department in accordance with the
board's department's directions. All
such surcharges shall be included within the disposal rates set
by the board department pursuant to
Section 48-46-40.
(C) In accordance with
Article V.f.3. of the Atlantic Compact, the compact commission
shall advise the board department at
least annually, but more frequently if the compact commission
deems appropriate, of the compact commission's costs and
expenses. To cover these costs the board
department shall impose a surcharge per unit of waste
received at any regional disposal facility located within the
State as determined in Section 48-46-40. A site operator shall
collect and remit these fees to the board
department in accordance with the board
department's directions, and the board
department shall remit those fees to the compact
commission."
JJ. Section 48-46-90(A) of the 1976 Code is amended to read:
"(A) In
accordance with Section 13-7-30, the board
department, or its designee, is responsible for extended
custody and maintenance of the Barnwell site following closure
and license transfer from the facility operator. The Department
of Health and Environmental Control is responsible for continued
site monitoring."
KK. Section 63-11-500(A) of the 1976 Code is amended to read:
"(A) There is
created the Cass Elias McCarter Guardian ad Litem Program in
South Carolina. The program shall serve as a statewide system
to provide training and supervision to volunteers who serve as
court-appointed special advocates for children in abuse and
neglect proceedings within the family court, pursuant to Section
63-7-1620. This program must be administered by the
Office of the Governor Department of
Administration."
LL. 1. Section 63-11-700 of the 1976 Code are amended to read:
"Section 63-11-700.
(A) There is created, as part
of the Office of the Governor, to be
administratively a part of the Department of Administration,
the Division for Review of the Foster Care of Children. The
division must be supported by a board consisting of
seven eight members, all of whom must be
past or present members of local review boards. There must be
one member from each congressional district and one member from
the State at large, all appointed by the Governor with the
advice and consent of the Senate.
(B) Terms of office for
the members of the board are for four years and until their
successors are appointed and qualify. Appointments must be made
by the Governor for terms of four years to expire on June
thirtieth of the appropriate year.
(C) The board shall
elect from its members a chairman who shall serve for two years.
Four Five members of the board
constitute a quorum for the transaction of business. Members of
the board shall receive per diem, mileage, and subsistence as
provided by law for members of boards, commissions, and
committees while engaged in the work of the board.
(D) The board shall
meet at least quarterly and more frequently upon the call of the
division director to review and coordinate the activities of the
local review boards and make recommendations to the Governor and
the General Assembly with regard to foster care policies,
procedures, and deficiencies of public and private agencies
which arrange for foster care of children as determined by the
review of cases provided for in Section 63-11-720(A)(1) and (2).
These recommendations must be submitted to the Governor and
included in an annual report, filed with the General Assembly,
of the activities of the state office and local review boards.
(E) The board, upon
recommendation of the division director, shall promulgate
regulations to carry out the provisions of this article. These
regulations shall provide for and must be limited to procedures
for: reviewing reports and other necessary information at
state, county, and private agencies and facilities; scheduling
of reviews and notification of interested parties; conducting
local review board and board of directors' meetings;
disseminating local review board recommendations, including
reporting to the appropriate family court judges the status of
judicially approved treatment plans; participating and
intervening in family court proceedings; and developing
policies for summary review of children privately placed in
privately-owned facilities or group homes.
(F) The Governor may
employ a division director to serve at the Governor's pleasure
who may be paid an annual salary to be determined by the
Governor. The director may be removed pursuant to Section
1-3-240. The division director shall employ staff as is
necessary to carry out this article, and the staff must be
compensated in an amount and in a manner as may be determined by
the Governor.
(G) This article may
not be construed to provide for subpoena authority."
2. Section 63-11-730(A) of the 1976 Code is amended to read:
"(A) No person may
be employed by the Division for Review of the Foster Care of
Children, Office of the Governor Department
of Administration, or may serve on the state or a local
foster care review board if the person:
(1)
is the subject of an indicated report or affirmative
determination of abuse or neglect as maintained by the
Department of Social Services in the Central Registry of Child
Abuse and Neglect pursuant to Subarticle 13, Article 3, Chapter
7;
(2)
has been convicted of or pled guilty or nolo contendere
to:
(a)
an 'offense against the person' as provided for in Title
16, Chapter 3;
(b)
an 'offense against morality or decency' as provided for
in Title 16, Chapter 15; or
(c)
contributing to the delinquency of a minor, as provided
for in Section 16-17-490."
MM. 1. Section 63-11-1110 of the 1976 Code is amended to read:
"Section 63-11-1110.
There is created the Children's Case Resolution
System, to be administratively a part of the
Department of Administration and referred to in this article
as the System, which is a process of reviewing cases on behalf
of children for whom the appropriate public agencies
collectively have not provided the necessary services.
The System must be housed in and staffed by the Office
of the Governor."
2. Section 63-11-1140(5), (8), and (9) of the 1976 Code are amended to read:
"(5) when
unanimous consent is not obtained as required in item (4), a
panel must be convened composed of the following persons:
(a)
one public agency board member and one agency head
appointed by the Governor. Recommendations for appointments may
be submitted by the Human Services Coordinating Council. No
member may be appointed who represents any agency involved in
the resolution of the case;
(b)
one legislator appointed by the Governor; and
(c)
two members appointed by the Governor, drawn from a list
of qualified individuals not employed by a child-serving public
agency, established in advance by the System, who have knowledge
of public services for children in South Carolina.
The chairman must be appointed by the
Governor from members appointed as provided in subitem (c) of
this item. A decision is made by a majority of the panel
members present and voting, but in no case may a decision be
rendered by less than three members. The panel shall review a
case at the earliest possible date after sufficient staff review
and evaluation pursuant to items (3) and (4) and shall make a
decision by the next scheduled panel meeting. When private
services are necessary, financial responsibility must be
apportioned among the appropriate public agencies based on the
reasons for the private services. Agencies designated by the
panel shall carry out the decisions of the panel, but the
decisions may not substantially affect the funds appropriated
for the designated agency to such a degree that the intent of
the General Assembly is changed. Substantial impact of the
decisions must be defined by regulations promulgated by the
State Budget and Control Board Department of
Administration. When the panel identifies similar cases
that illustrate a break in the delivery of service to children,
either because of restrictions by law or substantial lack of
funding, the panel shall report the situation to the General
Assembly and subsequently may not accept any similar cases for
decision until the General Assembly takes appropriate action,
however, the System may continue to perform the functions
provided in items (3) and (4).
Each member of the panel is entitled to
subsistence, per diem, and mileage authorized for members of
state boards, committees, and commissions. The respective
agency is responsible for the compensation of the members
appointed in subitems (a) and (b) of this item, and the System
is responsible for the compensation of the members appointed in
subitem (c) of this item;
(8) submit an annual
report on the activities of the System to the Governor,
Director of the Department of Administration, the General
Assembly, and agencies designated by the System as relevant to
the cases; and
(9) compile and
transmit additional reports on the activities of the
System, and recommendations for service
delivery improvements, as necessary, to the Governor and the
Joint Citizens and Legislative Committee on
Children."
NN. 1. Section 44-38-380(A)(1)(h) of the 1976 Code is amended to read:
"(h) Director of
the Continuum of Care for Emotionally Disturbed Children
Division of the Governor's Office;"
2. Section 63-11-1310 of the 1976 Code, as added by Act 361 of 2008, is amended to read:
"Section 63-11-1310.
It is the purpose of this article to develop and enhance
the delivery of services to severely emotionally disturbed
children and youth and to ensure that the special needs of this
population are met appropriately to the extent possible within
this State. To achieve this objective, the Continuum of Care
for Emotionally Disturbed Children Division is established as
a division in the office of the Governor
Department of Administration. This article supplements
and does not supplant existing services provided to this
population."
3. Section 63-11-1340 of the 1976 Code, as added by Act 361 of 2008, is amended to read:
"Section 63-11-1340.
The Governor may employ appoint a
Director of the Continuum of Care to serve at his
pleasure who is subject to removal pursuant to the provisions of
Section 1-3-240. The director shall employ staff necessary to
carry out the provisions of this article. The funds for the
division director, staff, and other purposes of the
Continuum of Care Division must be provided in the annual
general appropriations act. The department, upon the
recommendation of the division director,
shall may promulgate regulations in
accordance with this article and the provisions of the
Administrative Procedures Act and formulate necessary policies
and procedures of administration and operation to carry out
effectively the objectives of this article."
4. Section 63-11-1360 of the 1976 Code as added by Act 361 of 2008, is amended to read:
"Section 63-11-1360.
The Division for Continuum of Care
Division shall submit an annual report to the
Governor Department of Administration
and General Assembly on its activities and recommendations for
changes and improvements in the delivery of services by public
agencies serving children."
5. Section 63-11-1510 of the 1976 Code is amended to read:
"Section 63-11-1510.
There is established the Interagency System for Caring for
Emotionally Disturbed Children, an integrated system of care to
be developed by the Continuum of Care for Emotionally Disturbed
Children of the Governor's Office in the
Department of Administration, the Department of Disabilities
and Special Needs, the State Health and Human Services Finance
Commission, the Department of Mental Health, and the Department
of Social Services to be implemented by November 1, 1994. The
goal of the system is to implement South Carolina's Families
First Policy and to support children in a manner that enables
them to function in a community setting. The system shall
provide assessment and evaluation procedures to insure a proper
service plan and placement for each child. This system must
have as a key component the clear identification of the agency
accountable for monitoring on a regular basis each child's care
plan and procedures to evaluate and certify the programs offered
by providers."
SECTION 8. Article 1, Chapter 11, Title 1 of the 1976 Code is amended by adding:
"Section 1-11-15.
(A) Effective July 1, 2013, the
Division of Local Government of the State Budget and Control
Board is transferred to, and incorporated into, the South
Carolina Rural Infrastructure Authority as established in
Section 11-50-30. All functions, powers, duties,
responsibilities, and authority vested in the Division of Local
Government is devolved upon the South Carolina Rural
Infrastructure Authority.
(B) Effective July 1,
2013, the South Carolina Confederate Relic Room and Military
Museum is transferred from the State Budget and Control Board to
the Department of Administration as one of its divisions.
(C) Effective July 1,
2013, the Board of Economic Advisors of the State Budget and
Control Board is transferred to the Revenue and Fiscal Affairs
Office.
(D) Effective July 1,
2013, the Office of Research and Statistics of the Budget and
Control Board is transferred to, and incorporated into the
Revenue and Fiscal Affairs Office;
(E) Effective July 1,
2013, the State Energy Office is transferred from the State
Budget and Control Board to the Office of Regulatory Staff.
(F) Effective July 1,
2013, portions of the Office of State Budget of the State Budget
and Control Board which are directly related to the development
of the annual general appropriations act are transferred to the
Revenue and Fiscal Affairs Office except for the employees
required to support the Executive Budget Office."
SECTION 9. Chapter 9, Title 11 of the 1976 Code is amended by adding:
Section 11-9-1110. (A)
Effective July 1, 2013, there is established
the Revenue and Fiscal Affairs Office to be governed by the
three appointed members of the Board of Economic Advisors
pursuant to Section 11-9-820. The office is comprised of the
Board of Economic Advisors, Office of Research and Statistics,
and the Office of State Budget. The functions of the office
must be performed, exercised, and discharged under the
supervision and direction of the board. The board may organize
its staff as it considers appropriate to carry out the various
duties, responsibilities, and authorities assigned to it and to
its various divisions. The board may delegate to one or more
officers, agents, or employees the powers and duties it
determines are necessary for the effective, efficient, operation
of the office.
(B) The Department of
Administration shall provide such administrative support to the
Revenue and Fiscal Affairs Office or any of its divisions or
components as they may request and require in the performance of
their duties including, but not limited to, financial
management, human resources management, information technology,
procurement services, and logistical support.
Section 11-9-1120. The Board of Economic Advisors division of the office shall maintain the organizational and procedural framework under which it is operating, and exercise its powers, duties, and responsibilities, as of the effective date of Act ___ of 2012, R. ___, H. 3066.
Section 11-9-1130. (A)
The Office of Research and Statistics must
be comprised of an Economic Research division and an Office of
Precinct Demographics division.
(B) The Economic
Research division shall maintain the organizational and
procedural framework under which it is operating, and exercise
its powers, duties, and responsibilities, as of the effective
date of Act ___ of 2012, R. ___, H. 3066.
(C) The Office of
Precinct Demographics shall:
(1)
review existing precinct boundaries and maps for accuracy
and develop and rewrite descriptions of precincts for submission
to the legislative process;
(2)
consult with members of the General Assembly or their
designees on matters related to precinct construction or
discrepancies that may exist or occur in precinct boundary
development in the counties they represent;
(3)
develop a system for originating and maintaining precinct
maps and related data for the State;
(4)
represent the General Assembly at public meetings,
meetings with members of the General Assembly, and meetings with
other state, county, or local governmental entities on matters
related to precincts;
(5)
assist the appropriate county officials in the drawing of
maps and writing of descriptions or precincts preliminary to
these maps and descriptions being filed in this office for
submission to the United States Department of Justice;
(6)
coordinate with the Census Bureau in the use of precinct
boundaries in constructing census boundaries and the
identification of effective uses of precinct and census
information for planning purposes; and
(7)
serve as a focal point for verifying official precinct
information for the counties of South Carolina.
Section 11-9-1140. The Office of State Budget division of the office shall maintain the organizational and procedural framework under which it is operating, and exercise its powers, duties, and responsibilities, as of the effective date of Act ___ of 2012, R. ___, H. 3066."
SECTION 10. Section 11-9-820(A), (B), and (C) of the 1976 Code are amended to read:
"(A)(1)There is created the
Board of Economic Advisors, a division of the Revenue and
Fiscal Affairs Office, as follows:
(1)(a) one
member, appointed by, and serving at the pleasure
of, the Governor, who shall serve as chairman
and shall receive annual compensation of ten thousand dollars;
(2)(b) one
member appointed by, and serving at the pleasure
of, the Chairman of the Senate Finance
Committee, who shall receive annual compensation of eight
thousand dollars;
(3)(c) one
member appointed by, and serving at the pleasure
of, the Chairman of the Ways and Means
Committee of the House of Representatives, who shall receive
annual compensation of eight thousand dollars;
(4)(d) the
Director of the Department of Revenue, who shall serve ex
officio, with no voting rights.
(2)
The board shall unanimously select an Executive
Director of the Revenue and Fiscal Affairs Office who shall
serve a four-year term. The executive director may only be
removed for malfeasance, misfeasance, incompetency, absenteeism,
conflicts of interest, misconduct, persistent neglect of duty in
office, or incapacity as found by the board. The executive
director shall have the authority and perform the duties
prescribed by law and as may be directed by the board.
(B) The Chairman of
the Board of Economic Advisors shall report directly to the
Budget and Control Board Governor, the
Chairman of the Senate Finance Committee, and the Chairman of
the House Ways and Means Committee to establish policy
governing economic trend analysis. The Board of Economic
Advisors shall provide for its staffing and administrative
support from funds appropriated by the General Assembly.
(C) The Executive
Director of the Budget and Control Board
Revenue and Fiscal Affairs Office shall assist the
Governor, Chairman of the Board of Economic Advisors, Chairman
of the Senate Finance Committee, and Chairman of the Ways and
Means Committee of the House of Representatives in providing an
effective system for compiling and maintaining current and
reliable economic data. The Board of Economic Advisors may
establish an advisory board to assist in carrying out its duties
and responsibilities. All state agencies, departments,
institutions, and divisions shall provide the information and
data the advisory board requires. The Board of Economic
Advisors is considered a public body for purposes of the Freedom
of Information Act, pursuant to Section 30-4-20(a)."
SECTION 11. Sections 11-9-825 and 11-9-830 of the 1976 Code are amended to read:
"Section 11-9-825.
The staff of the Board of Economic Advisors must be
supplemented by the following officials who each shall designate
one professional from their individual staffs to assist the BEA
staff on a regular basis: the Governor, the Chairman of the
House Ways and Means Committee, the Chairman of the Senate
Finance Committee, and the State Department of Revenue
Chairman, and the Director of the Budget Division of the
Budget and Control Board. The BEA staff shall meet
monthly with these designees in order to solicit their input.
Section 11-9-830. In
order to provide a more effective system of providing advice to
the Budget and Control Board Governor
and the General Assembly on economic trends, the Board of
Economic Advisors shall:
(1)
compile and maintain in a unified, concise, and orderly
form information about total revenues and expenditures which
involve the funding of state government operations, revenues
received by the State which comprise general revenue sources of
all receipts to include amounts borrowed, federal grants,
earnings, and the various activities accounted for in other
funds;
(2)
continuously review and evaluate total revenues and
expenditures to determine the extent to which they meet fiscal
plan forecasts/projections;
(3)
evaluate federal revenues in terms of impact on state
programs;
(4)
compile economic, social, and demographic data for use in
the publishing of economic scenarios for incorporation into the
development of the state budget;
(5)
bring to the attention of the Governor and the General
Assembly the effectiveness, or lack thereof, of the economic
trends and the impact on statewide policies and priorities;
(6)
establish liaison with the Congressional Budget Office and
the Office of Management and Budget at the national level."
SECTION 12. Section 11-9-880(C) of the 1976 Code is amended to read:
"(C) All
forecasts, adjusted forecasts, and reports of the Board of
Economic Advisors, including the synopsis of the current year's
review as required by subsection (B), must be published and
reported to the Governor, the members of the Budget and
Control Board, the members of the General
Assembly, and made available to the news media."
SECTION 13. Section 11-9-890B. of the 1976 Code is amended to read:
"B. (1)
If at the end of the first, second, or third
quarter of any fiscal year quarterly revenue collections
are two percent or more below the amount projected for that
quarter by the Board of Economic Advisors reduces
the revenue forecast for the fiscal year by three percent or
less below the amount projected for the fiscal year in the
forecast in effect at the time the general appropriations bill
for the fiscal year is ratified, the State Budget
and Control Board, within seven
three days of that determination, shall take
action to avoid a year-end deficit. Notwithstanding Section
1-11-495, if the State Budget and Control Board does not take
unanimous action within seven days, the Director of the
Office of State Executive Budget
Office must reduce general fund appropriations by the
requisite amount in the manner prescribed by law. Upon making
the reduction, the Director of the Office of
State Executive Budget Office immediately
must notify the State Treasurer and the Comptroller General of
the reduction, and upon notification, the appropriations are
considered reduced. No agencies, departments, institutions,
activity, program, item, special appropriation, or allocation
for which the General Assembly has provided funding in any part
of this section may be discontinued, deleted, or deferred by the
Director of the Office of State
Executive Budget Office. A reduction of rate of
expenditure by the Director of the Office of
State Executive Budget Office, under
authority of this section, must be applied as uniformly as shall
be practicable, except that no reduction must be applied to
funds encumbered by a written contract with the agency,
department, or institution not connected with state
government.
(2) If at the
end of the first, second, or third quarter of any fiscal year
the Board of Economic Advisors reduces the revenue forecast for
the fiscal year by more than three percent below the amount
projected for the fiscal year in the forecast in effect at the
time the general appropriations bill for the fiscal year is
ratified, the President Pro Tempore of the Senate and the
Speaker of the House of Representatives may call each respective
house into session to take action to avoid a year-end deficit.
If the General Assembly has not taken action within twenty days
of the determination of the Board of Economic Advisors, the
Director of the Executive Budget Office must reduce general fund
appropriations by the requisite amount in the manner prescribed
by law and in accordance with item (1) of this
subsection."
SECTION 14. A. Title 2 of the 1976 Code is amended by adding:
Section 2-79-10. This chapter may be cited as the 'State Agency Deficit Prevention and Recognition Act'.
Section 2-79-20. It is the responsibility of each state agency, department, and institution to operate within the limits of appropriations set forth in the annual general appropriations act, appropriation acts, or joint resolution supplemental thereto, and any other approved expenditures of monies. A state agency, department, or institution shall not operate in a manner that results in a year-end deficit except as provided in this chapter.
Section 2-79-30. If at the end of each quarterly deficit monitoring review by the Executive Budget Office, it is determined by either the Executive Budget Office or a state agency, department, or institution that the likelihood of a deficit for the current fiscal year exists, the state agency shall notify the General Assembly within fifteen days of this determination and shall further request the Executive Budget Office to work with it to develop a plan to avoid the deficit. Within fifteen days of the deficit avoidance plan being completed, the Executive Budget Office shall either request the General Assembly to recognize the deficit in the manner provided in this chapter if it determines the deficit avoidance plan will not be sufficient to avoid a deficit or notify the General Assembly of how the deficit will be avoided based on the deficit avoidance plan if the Executive Budget Office determines the plan will be sufficient to avoid a deficit.
Section 2-79-40. (A)
Upon notification from the Executive Budget
Office as provided in Section 2-79-30 that an agency will run a
deficit and requesting that it be recognized, the General
Assembly, by joint resolution, may make a finding that the cause
of, or likelihood of, a deficit is unavoidable due to factors
which are outside the control of the state agency, department,
or institution, and recognize the deficit. Any legislation to
recognize a deficit must be in a separate joint resolution
enacted for the sole purpose of recognizing the deficit of a
particular state agency, department, or institution. A deficit
only may be recognized by an affirmative vote of each branch of
the General Assembly.
(B) If the General
Assembly recognizes the deficit, then the actual deficit at the
close of the fiscal year must be reduced as necessary from
surplus revenues or surplus funds available at the close of the
fiscal year in which the deficit occurs and from funds available
in the General Reserve Fund and the Capital Reserve Fund, as
required by the Constitution of this State.
Section 2-79-50. Once a deficit has been recognized by the General Assembly, the state agency, department, or institution shall limit travel and conference attendance to that which is deemed essential by the director of the agency, department, or institution. In addition, the General Assembly, when recognizing a deficit may direct that any pay increases and purchases of equipment and vehicles must be approved by the Executive Budget Office."
B. Section 1-11-495 of the 1976 Code, as last amended by Act 152 of 2010, is repealed.
SECTION 15. Section 2-7-72 of the 1976 Code is amended to read:
"Section 2-7-72.
Whenever a bill or resolution is introduced in the General
Assembly requiring the expenditure of funds, the principal
author shall affix a statement of estimated fiscal impact and
cost of the proposed legislation. Before reporting the bill out
of committee, if the amount is substantially different from the
original estimate, the committee shall attach a statement of
estimated fiscal impact to the bill signed by the
Executive Director of the State Budget Division
of the State Budget and Control Board Revenue and
Fiscal Affairs Office or his designee. As used in this
section, 'statement of estimated fiscal impact' means the
opinion of the person executing the statement as to the dollar
cost to the State for the first year and the annual cost
thereafter."
SECTION 16. Section 2-7-73 of the 1976 Code is amended to read:
"Section 2-7-73.
(A) Any bill or resolution which would
mandate a health coverage or offering of a health coverage by an
insurance carrier, health care service contractor, or health
maintenance organization as a component of individual or group
policies, must have attached to it a statement of the financial
impact of the coverage, according to the guidelines enumerated
in subsection (B). This financial impact analysis must be
conducted by the Division of Research and Statistical
Services Revenue and Fiscal Affairs Office and
signed by an authorized agent of the Department of Insurance, or
his designee. The statement required by this section must be
delivered to the Senate or House committee to which any bill or
resolution is referred, within thirty days of the written
request of the chairman of such committee.
(B) Guidelines for
assessing the financial impact of proposed mandated or
mandatorily offered health coverage to the extent that
information is available, must include, but are not limited to,
the following:
(1)
to what extent does the coverage increase or decrease the
cost of treatment or services;
(2)
to what extent does the coverage increase or decrease the
use of treatment or service;
(3)
to what extent does the mandated treatment or service
substitute for more expensive treatment or service;
(4)
to what extent does the coverage increase or decrease the
administrative expenses of insurance companies and the premium
and administrative expenses of policyholders; and
(5)
what is the impact of this coverage on the total cost of
health care."
SECTION 17. Section 2-7-74 of the 1976 Code is amended to read:
"Section 2-7-74.
(A) As used in this section,
'statement of estimated fiscal impact' means the opinion of the
person executing the statement as to the dollar cost to the
State for the first year and the annual cost thereafter.
(B) The principal
author of legislation that would establish a new criminal
offense or that would amend the sentencing provisions of an
existing criminal offense may affix a statement of estimated
fiscal impact of the proposed legislation. Upon request from
the principal author of the legislation, the Office of
State Budget Revenue and Fiscal Affairs Office
shall assist in preparing the fiscal impact statement.
(C) If a fiscal impact
statement is not affixed to legislation at the time of
introduction, the committee to which the legislation is referred
shall request a fiscal impact statement from the Office
of State Budget Revenue and Fiscal Affairs
Office. The Office of State Budget
Revenue and Fiscal Affairs Office shall have at least
fifteen calendar days from the date of the request to deliver
the fiscal impact statement to the Senate or House of
Representatives committee to which the legislation is referred,
unless the Office of State Budget Revenue
and Fiscal Affairs Office requests an extension of time.
The Office of State Budget Revenue and
Fiscal Affairs Office shall not unreasonably delay the
delivery of a fiscal impact statement.
(D) The committee shall
not take action on the legislation until the committee has
received the fiscal impact statement.
(E) If the legislation
is reported out of the committee, the committee shall attach the
fiscal impact statement to the legislation. If the legislation
has been amended, the committee shall request a revised fiscal
impact statement from the Office of State
Budget Revenue and Fiscal Affairs Office and
shall attach the revised fiscal impact statement to the
legislation.
(F) State agencies and
political subdivisions shall cooperate with the Office
of State Budget Revenue and Fiscal Affairs
Office in preparing fiscal impact statements. Such agencies
and political subdivisions shall submit requested information to
the Office of State Budget Revenue and
Fiscal Affairs Office in a timely fashion.
(G) In preparing fiscal
impact statements, the Office of State Budget
Revenue and Fiscal Affairs Office shall consider and
evaluate information as submitted by state agencies and
political subdivisions. The Office of State
Budget Revenue and Fiscal Affairs Office shall
provide to the requesting Senate or House of Representatives
committee any estimates provided by a state agency or political
subdivision, which are substantially different from the fiscal
impact as issued by the Office of State Budget
Revenue and Fiscal Affairs Office.
(H) The Office
of State Budget Revenue and Fiscal Affairs
Office may request information from nongovernmental agencies
and organizations to assist in preparing the fiscal impact
statement."
SECTION 18. Section 2-7-76 of the 1976 Code is amended to read:
"Section 2-7-76.
(A) The chairman of the legislative
committee to which a bill or resolution was referred shall
direct the Budget Division or the Economic Research
Section of the Budget and Control Board, as
appropriate, Revenue and Fiscal Affairs Office
to prepare and affix to it a statement of the estimated fiscal
or and revenue impact and cost to the
counties and municipalities of the proposed legislation before
the legislation is reported out of that committee if a bill or
resolution:
(1)
requires a county or municipality to expend funds
allocated to the county or municipality pursuant to Chapter 27
of Title 6;
(2)
is introduced in the General Assembly to require the
expenditure of funds by a county or municipality;
(3)
requires the use of county or municipal personnel,
facilities, or equipment to implement a general law or
regulations promulgated pursuant to a general law; or
(4)
relates to taxes imposed by political subdivisions.
(B) A revised estimated
fiscal or and revenue impact and cost
statement must be prepared at the direction of the presiding
officer of the House of Representatives or the Senate by the
Budget Division or Economic Research Section of the
Budget and Control Board Revenue and Fiscal Affairs
Office before third reading of the bill or resolution, if
there is a significant amendment to the bill or resolution.
(C) For purposes of
this section, 'political subdivision' means a
county, municipality, school district, special purpose district,
public service district, or consolidated political
subdivision."
SECTION 19. Section 48-52-410 of the 1976 Code is amended to read:
"Section 48-52-410.
There is established the State Energy Office within the
State Budget and Control Board Office of
Regulatory Staff which shall serve as the principal energy
planning entity for the State. Its primary purpose is to
develop and implement a well-balanced energy strategy and to
increase the efficiency of use of all energy sources throughout
South Carolina through the implementation of the Plan for State
Energy Policy. The State Energy Office must not function as a
regulatory body."
SECTION 20. Section 48-52-440 of the 1976 Code is amended to read:
"Section 48-52-440.
There is established the Energy Advisory
Committee, whose members are appointed by the State Budget and
Control Board, except as provided in item (14) of this section.
Members shall serve at the pleasure of the State Budget and
Control Board except that those appointed pursuant to item (14)
shall serve for a term coterminous with that of their appointing
authority. The committee is composed as follows:
(1)
two representatives of investor-owned electricity
companies;
(2)
two representatives of electric
cooperatives;
(3)
one representative of the South Carolina Public
Service Authority, who shall serve ex officio;
(4)
one representative of municipally-owned electric
utilities;
(5)
one representative of publicly-owned natural gas
companies;
(6)
one representative of investor-owned gas
companies;
(7)
one representative of oil suppliers or
dealers;
(8)
one representative of propane suppliers or
dealers;
(9)
one representative of nonprofit public
transportation providers;
(10)
two representatives of industrial
consumers;
(11)
two representatives of commercial
consumers;
(12)
two representatives of individual consumers; one
must be the Executive Director of the Office of Regulatory Staff
or his designee, who shall serve ex officio;
(13)
two representatives of environmental groups;
and
(14)
one at-large member appointed by the
Governor.
The Budget and Control Board shall
elect one of the committee members to serve as chairman. The
members of the Energy Advisory Committee are not eligible for
per diem payments or for reimbursement for lodging or meals. The
functions of the Energy Advisory Committee are advisory to the
State Energy Office. The committee shall meet at least annually
and at the call of the chair or at the request of at least six
members to receive information on the activities of the State
Energy Office and the formulation and implementation of the
state energy action plan. It may comment and advise on the
activities and the plan as considered appropriate by members of
the committee. The State Energy Office may seek advice and
guidance from the committee as considered appropriate by the
director of the office. Members shall adopt rules governing
meeting attendance and abide by these rules. (A)
All funds allocated or directed to this State by the
federal government relating to energy planning, energy
conservation, and energy efficiency must be allocated or
directed to the State Energy Office in the Office of Regulatory
Staff to be distributed in accordance with the provisions of
this section; provided, however, that no funding from the
following federal programs is subject to the provisions of this
section:
(1)
the Low Income Home Energy Assistance Program
(LIHEAP), created by Title XXVI of the Omnibus Budget
Reconciliation Act of 1981 and codified as Chapter 94, Title 42
of the United States Code, as amended by the Human Services
Reauthorization Act of 1984, the Human Services Reauthorization
Act of 1986, the Augustus F. Hawkins Human Services
Reauthorization Act of 1990, the National Institutes of Health
Revitalization Act of 1993, the Low-Income Home Energy
Amendments of 1994, the Coats Human Services Reauthorization Act
of 1998, and the Energy Policy Act of 2005, which is
administered and funded by the United States Department of
Health and Human Services on the federal level and administered
locally by community action agencies; or
(2)
the Weatherization Assistance Program, created
by Title IV of the Energy Conservation and Production Act of
1976 and codified as Part A, Subchapter III, Chapter 81, Title
42 of the United States Code, amended by the National Energy
Conservation Policy Act, the Energy Security Act, the Human
Services Reauthorization Act of 1984, and the State Energy
Efficiency Programs Improvement Act of 1990 and administered and
funded by the United States Department of Energy on the federal
level and administered locally by community action agencies.
Nothing in this section changes the
exclusive administration of the Low Income Energy Assistance
Program and Weatherization Assistance Program by local community
action agencies through the Department of Administration's
Office of Economic Opportunity pursuant to its authority under
the provisions of Chapter 45, Title 43, the Community Economic
Opportunity Act of 1983.
(B) All
funds described in subsection (A) that are not exempted by items
(1) and (2) of subsection (A) must be distributed by the State
Energy Office in the Office of Regulatory Staff in accordance
with all requirements of federal law associated with these
funds. Persons seeking to obtain funding for energy related
programs must submit to the State Energy Office a plan for the
use of the funds in a manner consistent with the provisions of
this section.
(C) Upon
receipt of the plans required by subsection (B), the State
Energy Office of the Office of Regulatory Staff must prepare an
analysis of the plans and their consistency with the provisions
of this section and submit that analysis to the Department
Advisory Council for its review and recommendations.
(D) There is
hereby created in the Office of Regulatory Staff the Energy
Advisory Council, which will advise the State Energy Office on
all matters for which the State Energy Office is responsible and
specifically with respect to its review of the annual plans
required to be submitted pursuant to this section. The Advisory
Council shall be composed of nine members as follows:
(1)
three appointed by the Governor, one of whom
must have a substantial background in environmental or consumer
protection matters;
(2)
three appointed by the President Pro Tempore of
the Senate, one of whom must have a substantial background in
environmental or consumer protection matters; and
(3)
three appointed by the Speaker of the House of
Representatives, one of whom must have a substantial background
in environmental or consumer protection matters.
All appointees must have backgrounds in
environmental issues; the electricity, transportation, or
natural gas industries; or economic development related to these
sectors.
(E) In
evaluating the plans required by this section, the Advisory
Council shall consider the extent to which the plans allocate
funds in a cost effective manner and promote the following
alternative sources of domestic energy or avoidance of
consumption of energy:
(1)
the development of energy efficiency and
conservation;
(2)
renewable sources of energy, including wind
power, solar power, energy from biomass sources, and energy
storage;
(3)
nuclear energy; and
(4)
alternative fuels or power sources for the
transportation sector.
In considering the cost-effectiveness of
the plans the Advisory Council must consider the cost of the
proposed measures as to the expected useful life of the measures
being proposed and the impact of the proposed measures on
consumers. For each proposed plan, the Advisory Council must
consider the value of the avoided cost of complying with
anticipated state and federal environmental regulations.
(F) Upon
completion of its review of plans submitted in compliance with
this section, the Advisory Council must prepare a report
describing the results of its review and submit copies of that
report to the State Energy Office of the Office of Regulatory
Staff and the Public Utility Review Committee of Article 5 of
Chapter 3 of Title 58.
(G) The
Executive Director of the Office of Regulatory Staff shall make
the final determinations of distributions of funds as required
by this section, taking into account the recommendations of the
Advisory Council. Grant awards shall be made in a manner
consistent with this section."
SECTION 21. Section 48-52-460 of the 1976 Code is amended to read:
"Section 48-52-460.
The establishment of the State Energy Office within the
State Budget and Control Board Office of
Regulatory Staff, as provided for in this part, must be
evaluated if restructuring or reorganizing of state government
takes place so as to identify and provide for the proper
placement of the office upon restructuring or
reorganizing."
SECTION 22. Section 48-52-635 of the 1976 Code is amended to read:
"Section 48-52-635.
Pursuant to Section 48-52-630, an agency's savings
realized in the prior fiscal year from implementing an energy
conservation measure as compared to a baseline energy use as
certified by the State Energy Office, may be retained and
carried forward into the current fiscal year. This savings, as
certified by the State Energy Office, must first be used for
debt retirement of capital expenditures, if any, on the energy
conservation measure, after which time savings may be used for
agency operational purposes and where practical, reinvested into
energy conservation areas. The agency must report all actual
savings in the energy portion of its annual report to the
State Budget and Control Board Office of
Regulatory Staff."
SECTION 23. Section 48-52-680 of the 1976 Code is amended to read:
"Section 48-52-680.
(A) The State Energy Office shall
assist the Materials Management Office as established in Section
11-35-810 and all governmental bodies defined in and subject to
the Consolidated Procurement Code, by identifying goods which
are 'energy efficient' or for which the State can achieve
long-term savings through consideration of life cycle costs.
The State Energy Office must compile a list of these goods.
Before issuing any solicitation for these goods, the procuring
agency shall notify the State Energy Office which shall assist
in drafting or reviewing specifications for the goods being
procured and which shall approve the specifications before
issuing the solicitation. Upon request of a governmental body
the State Energy Office shall provide assistance in evaluating
bids or offers received in response to the solicitation to
ensure that procurements are made in accordance with the
purposes and policies of this article.
(B) The State Energy
Office shall assist the Office of the State Engineer and all
governmental bodies defined in and subject to the Consolidated
Procurement Code by drafting energy conservation standards to be
applied in the design and construction of buildings that are
owned or lease/purchased by these governmental bodies. Before
any construction contracts are bid under Section 11-35-3020, the
State Engineer's Office or the governmental body soliciting the
bids shall review the plans and specifications to ensure that
they are in compliance with the standards drafted by the State
Energy Office. The State Energy Office shall provide assistance
in reviewing these plans and specifications upon the request of
the State Engineer's Office or the affected governmental
body.
(C) The State Energy
Office shall provide the Office of Property Management
of the Budget and Control Board, Division of
General Services of the Department of Administration,
information to be used in evaluating energy costs for buildings
or portions of buildings proposed to be leased by governmental
bodies that are defined in and subject to the Consolidated
Procurement Code. The information provided must be considered
with the other criteria provided by law by a governmental body
before entering into a real property lease."
SECTION 24. A. Section 1-11-25 of the 1976 Code is amended to read:
"Section 1-11-25.
There is hereby established a Local Government Division
within the State Budget and Control Board
Rural Infrastructure Authority to act as a liaison for
financial grants among local governments, the General
Assembly and the Governor's Office from the funds
available to the authority. The division shall be under the
supervision of a director who shall be appointed by and who
shall serve at the pleasure of the Budget and Control
Board Director of the Rural Infrastructure
Authority and whose compensation shall be as
provided for by the General Assembly. He may employ
such staff as may be approved by the board
Director of the Rural Infrastructure Authority. The
division shall be responsible for certifying grants to local
governments from both federal and state funds. The term 'local
government' shall mean any political entity below the state
level. Notwithstanding the fact that the Local Government
Division is now a part of the State Rural Infrastructure
Authority, where certain grants of the division depending upon
their funding source require additional approvals other than the
division and the authority before they may be made, those
additional approvals must also be secured.
The division shall establish guidelines
and procedures which local governments
public entities shall follow in applying for grants
certified by the division. The director shall
make known to local governments these
entities the availability of all grants available through
the division authority and shall make
periodic reports to the Budget and Control
Board, the General Assembly and the Governor's Office.
The reports shall contain information concerning the amount of
funds available from both federal and state sources, requests
for grants and the status of such requests and such other
information as the director may deem appropriate. The director
shall maintain such records as may be necessary for the
efficient operation of the office.
The Division of Administration,
under contractual agreement, shall furnish the Local Government
Division such accounting service support as may be
requested."
B. Section 1-11-26 of the 1976 Code is amended to read:
"Section 1-11-26.
(A) Grant funds received by a
county, municipality, political subdivision, or
other public entity from the Division of
Local Government of the State Budget and Control Board
Rural Infrastructure Authority must be deposited in a
separate fund and may not be commingled with other funds,
including other grant funds. Disbursements may be made from
this fund only on the written authorization of the individual
who signed the grant application filed with the division, or his
successor, and only for the purposes specified in the grant
application. A person violating the provisions of this section
is guilty of a misdemeanor and, upon conviction, must be fined
five thousand dollars or imprisoned for six months, or both.
(B) It is not a defense
to an indictment alleging a violation of this section that grant
funds received from the Division of Local
Government were used by a grantee or subgrantee for
governmental purposes other than those specified in the grant
application or that the purpose for which the grant was made
by the Division of Local Government was
accomplished by funds other than grant funds.
(C) The Division of
Local Government of the State Budget and Control
Board Rural Infrastructure Authority shall
furnish a copy of this section to a grantee when the grant is
awarded."
C. Chapter 50, Title 11 of the 1976 Code is amended by adding:
"Section 11-50-65.
The Department of Administration shall provide such
administrative support to the State Rural Infrastructure
Authority or any of its divisions or components as they may
request and require in the performance of their duties
including, but not limited to, financial management, human
resources management, information technology, procurement
services, and logistical support."
SECTION 25. Section 1-11-1110 of the 1976 Code is amended to read:
"Section 1-11-1110.
The Director of the South Carolina Confederate Relic Room
and Military Museum must be appointed by the
Executive Director of the State Budget
and Control Board Department of Administration
after consultation with the South Carolina Division Commander of
the Sons of the Confederate Veterans and the President of the
South Carolina Chapter of the United Daughters of the
Confederacy. The director shall serve at the pleasure of the
executive Director of the Department of
Administration."
SECTION 26. Section 1-11-1140 of the 1976 Code is amended to read:
"Section 1-11-1140.
It is the intent of the General Assembly that, as soon as
space becomes available, the Confederate Relic Room shall
relocate to the Columbia Mills building where it will be
retained as a separate and distinct facility, to be known as the
South Carolina Confederate Relic Room and Military Museum, under
the State Budget and Control Board
Department of Administration."
SECTION 27. Title 11 of the 1976 Code is amended by adding:
Section 11-55-10. (A)
There is established the State Contracts and
Accountability Authority (SCAA) consisting of seven members as
follows:
(1)
the Governor, who shall serve as ex officio as
chairman;
(2)
the Attorney General, who shall serve ex officio;
(3)
the State Treasurer, who shall serve ex officio;
(4)
the Comptroller General, who shall serve ex officio;
(5)
the Lieutenant Governor, who shall serve ex officio;
(6)
one member of the House of Representatives, ex officio,
appointed by the Speaker of the House of Representatives;
and
(7)
one member of the Senate, ex officio, appointed by the
President Pro Tempore of the Senate;
Members shall serve at the pleasure of
their appointing authority. Vacancies must be filled in the
manner of the original appointment. Members shall serve without
compensation, but shall receive the mileage, subsistence, and
per diem allowed by law for members of state boards, committees,
and commissions.
(B)(1) The SCAA shall
select an executive director who in turn shall employ other
staff under the direction of the SCAA as necessary for the
operations of the SCAA.
(2)
The executive director shall serve a four-year term. The
executive director may only be removed for malfeasance,
misfeasance, incompetency, absenteeism, conflicts of interest,
misconduct, persistent neglect of duty in office, or incapacity
as found by the SCAA. The executive director shall have that
responsibility and perform the duties prescribed by law and as
may be directed by the SCAA.
(3)
The General Assembly, in the annual general appropriations
act, shall appropriate those funds necessary for the operations
of the SCAA except that, to the extent that operational expenses
of the SCAA are attributable to carrying out its functions
provided pursuant to Title 9, as determined by SCAA, those
expenses must be paid from funds of the South Carolina
Retirement System.
(C) The SCAA may
organize its staff as it considers most appropriate to carry out
the various functions, powers, duties, responsibilities, and
authority assigned to it.
(D) The Department of
Administration shall provide such administrative support to the
State Contracts and Accountability Authority or any of its
divisions or components as they may request and require in the
performance of their duties including, but not limited to,
financial management, human resources management, information
technology, procurement services, and logistical support.
Section 11-55-20. (A)
The functions and duties of the State Budget
and Control Board pursuant to Section 1-11-710(A)(2), (3), and
(4), (B) and (C) as those subsections existed as of June 30,
2013, with respect to the operations of the various state
insurance plans and variants of such plans are devolved
effective July 1, 2013, upon SCAA.
(B)(1) Effective July
1, 2013, all functions, powers, duties, responsibilities, and
authority related to the issuance of bonds and bonding
authority, generally found in Title 11, but also contained in
other provisions of state law, are devolved upon SCAA. This
devolution does not extend to those functions, powers, duties,
responsibilities, and authority vested in the Joint Bond Review
Committee.
(2)
Bonded indebtedness issued by the South Carolina Jobs -
Economic Development Authority (JEDA) requires approval by the
SCAA as provided in Chapter 43, Title 41. Bonded indebtedness
issued pursuant to this item does not constitute nor give rise
to a pecuniary liability to the State or a charge against the
credit or taxing powers of the State.
(3)
The SCAA shall establish criteria, upon consultation with
the Joint Bond Review Committee, to apply to the bond review and
approval process as required in Chapter 47, Title 2.
(C)(1) Effective July
1, 2013, all of the functions, powers, and duties of the State
Budget and Control Board, pursuant to Title 9 as that title
existed June 30, 2013, are devolved upon the SCAA in the
following particulars:
(a)
as trustee of the retirement systems established pursuant
to Title 9;
(b)
as the entity charged by law with maintaining the
financial soundness of the retirement systems established by
that title with respect to all actuarial assumptions, and
adjusting contributions to the system so as to ensure that the
amortization periods for meeting the unfunded liabilities of the
retirement systems established by that title do not exceed
thirty years. The annual rate of return for the investments of
the various retirement systems must be established by the
General Assembly by general law.
(2)
The SCAA shall receive and provide to members of the
General Assembly the annual valuation reports for the state
retirement systems established pursuant to Title 9 no later than
January tenth of each year. If those reports are that the
unfunded liabilities of a particular system as currently
constituted cannot be amortized within thirty years, and if the
General Assembly fails to enact system changes to achieve that
amortization schedule by the following March first, then SCAA
shall increase employer and employee contributions, as
applicable, to the affected system, in an amount sufficient to
maintain a thirty year amortization schedule for that system.
After June 30, 2013, and notwithstanding provisions of Chapters
1 and 11, Title 9, relating to the setting of employer and
employee contributions required for the South Carolina
Retirement System (SCRS) and the South Carolina Police Officers
Retirement System (SCPORS), by statute or administratively, the
State Contracts and Accountability Authority, in maintaining the
required amortization schedule as required pursuant to this
item, shall increase SCRS and SCPORS employer and employee
contributions in equal percentages of earnable compensation in
an amount sufficient to maintain the thirty year amortization
schedule. The SCRS and SCPORS employer and employee
contribution rates in effect on June 30, 2013, continue to apply
and constitute the base on which adjustments made pursuant to
this item apply. The SCAA may not decrease contribution rates.
Changes in contribution rates for SCRS and SCPORS other than as
provided pursuant to this item may be made only by the General
Assembly by general law.
(3)
Except as provided in items (1) and (2) of this
subsection, the administration of the retirement systems
established by that Title 9 is devolved on the Department of
Administration effective July 1, 2013.
(D)(1) There is
established within SCAA the Office of Accountability and
Auditing. The State Auditor's Office as provided for in Chapter
7, Title 11 shall also be included in the Office of
Accountability and Auditing. The State Auditor serving in
office as of June 30, 2013, shall continue to serve, but any
successor must be selected by the SCAA. Also included in this
office is the Office of the State Inspector General as
established pursuant to Chapter 6, Title 1.
(2)
The Office of Accountability and Auditing also shall be
the body that shall receive annual accountability reports
pursuant to Article 13, Chapter 1, Title 1.
(3)
The State Auditor and the Office of the State Inspector
General, while maintaining their individual and separate
missions, shall both be located in the Office of Accountability
and Auditing of the SCAA. The State Auditor and Inspector
General shall work together, with advice and consent of the
SCAA, to develop a relationship that ensures timely and complete
auditing and oversight of both fiscal and programmatic affairs
of state agencies and, except for limited administrative
purposes, shall remain independent and not subject to
supervision by the SCAA.
Section 11-55-30. In the course of conducting and managing state affairs where a matter arises which would under prior precedents and practices be referred to the former Budget and Control Board for decision, although the procedure for the decision is not specifically provided for by general law, the matter instead shall be referred to and decided by the SCAA."
SECTION 28. A.
(1) The Office of Insurance
Services, including the Insurance Reserve Fund, is transferred
to the State Contracts and Accountability Authority (SCAA) on
July 1, 2013, as a division of the authority.
(2)
The Employee Insurance Program of the Office of Insurance
Services transferred to the SCAA as provided above shall perform
all administrative and operational functions of the Employee
Insurance Program except for those policy decisions relating to
rates, premiums, plan benefits, and other matters reserved by
law to the SCAA.
(3)
The Office of Insurance Services, including the Insurance
Reserve Fund, transferred to the SCAA shall administer and
perform all administrative and operational functions of the
Office of Insurance Services, including the Insurance Reserve
Fund, except that the Attorney General of this State must
continue to approve the attorneys-at-law retained to represent
the clients of the Insurance Reserve Fund in the manner provided
by law.
B. Section 1-11-140 of the 1976 Code is amended to read:
"Section 1-11-140.
(A) The State Budget and
Control Board State Contracts and Accountability
Authority (authority), through the Office of Insurance
Services which includes the Insurance Reserve Fund, is
authorized to provide insurance for the State, its departments,
agencies, institutions, commissions, boards, and the personnel
employed by the State in its departments, agencies,
institutions, commissions, and boards so as to protect the State
against tort liability and to protect these personnel against
tort liability arising in the course of their employment. The
insurance also may be provided for physicians or dentists
employed by the State, its departments, agencies, institutions,
commissions, or boards against any tort liability arising out of
the rendering of any professional services as a physician or
dentist for which no fee is charged or professional services
rendered of any type whatsoever so long as any fees received are
directly payable to the employer of a covered physician or
dentist, or to any practice plan authorized by the employer
whether or not the practice plan is incorporated and registered
with the Secretary of State; provided, any insurance coverage
provided by the Budget and Control Board
authority may be on the basis of claims made or upon
occurrences. The insurance also may be provided for students of
high schools, South Carolina Technical Schools, or
state-supported colleges and universities while these students
are engaged in work study, distributive education, or apprentice
programs on the premises of private companies. Premiums for the
insurance must be paid from appropriations to or funds collected
by the various entities, except that in the case of the
above-referenced students in which case the premiums must be
paid from fees paid by students participating in these training
programs. The board authority has the
exclusive control over the investigation, settlement, and
defense of claims against the various entities and personnel for
whom it provided insurance coverage and may promulgate
regulations in connection therewith.
(B) Any political
subdivision of the State including, without limitations,
municipalities, counties, and school districts, may procure the
insurance for itself and for its employees in the same manner
provided for the procurement of this insurance for the State,
its entities, and its employees, or in a manner provided by
Section 15-78-140.
(C) The procurement of
tort liability insurance in the manner provided is the exclusive
means for the procurement of this insurance.
(D) The State
Budget and Control Board authority, through the
Office of Insurance Services, also is authorized to offer
insurance to governmental hospitals and any subsidiary of or
other entity affiliated with the hospital currently existing or
as may be established; and chartered, nonprofit, eleemosynary
hospitals and any subsidiary of or other entity affiliated with
the hospital currently existing or as may be established in this
State so as to protect these hospitals against tort liability.
Notwithstanding any other provision of this section, the
procurement of tort liability insurance by a hospital and any
subsidiary of or other entity affiliated with the hospital
currently existing or as may be established supported wholly or
partially by public funds contributed by the State or any of its
political subdivisions in the manner herein provided is not the
exclusive means by which the hospital may procure tort liability
insurance.
(E) The State
Budget and Control Board authority, through the
Office of Insurance Services, is authorized to provide insurance
for duly appointed members of the boards and employees of health
system agencies, and for members of the State Health
Coordinating Council which are created pursuant to Public Law
93-641.
(F) The
board authority, through the Office of
Insurance Services, is further authorized to provide insurance
as prescribed in Sections 10-7-10 through 10-7-40, 59-67-710,
and 59-67-790.
(G) Documentary or
other material prepared by or for the Office of Insurance
Services in providing any insurance coverage authorized by this
section or any other provision of law which is contained in any
claim file is subject to disclosure to the extent required by
the Freedom of Information Act only after the claim is settled
or finally concluded by a court of competent jurisdiction.
(H) The
board authority, through the Office of
Insurance Services, is further authorized to provide insurance
for state constables, including volunteer state constables, to
protect these personnel against tort liability arising in the
course of their employment, whether or not for compensation,
while serving in a law enforcement capacity."
C. Section 15-78-140 of the 1976 Code is amended to read:
"Section 15-78-140.
(a) (Reserved)
(b) The political
subdivisions of this State, in regard to tort and automobile
liability, property, and casualty insurance shall procure
insurance to cover these risks for which immunity has been
waived by (1) the purchase of liability insurance pursuant to
Section 1-11-140; or (2) the purchase of liability insurance
from a private carrier; or (3) self-insurance; or (4)
establishing pooled self-insurance liability funds, by
intergovernmental agreement, which may not be construed as
transacting the business of insurance or otherwise subject to
state laws regulating insurance. A pooled self-insurance
liability pool is authorized to purchase specific and aggregate
excess insurance. A pooled self-insurance liability fund must
provide liability coverage for all employees of a political
subdivision applying for participation in the fund. If the
insurance is obtained other than pursuant to Section 1-11-140,
it must be obtained subject to the following conditions:
(1)
if the political subdivision does not procure tort
liability insurance pursuant to Section 1-11-140, it must also
procure its automobile liability and property and casualty
insurance from other sources and shall not procure these
coverages through the Budget and Control Board
Insurance Reserve Fund;
(2)
if a political subdivision procures its tort liability
insurance, automobile liability insurance, or property and
casualty insurance through the Budget and Control
Board Insurance Reserve Fund, all liability
exposures of the political subdivision as well as its property
and casualty insurance must be insured with the Budget
and Control Board Insurance Reserve Fund;
(3)
if the political subdivision, at any time, procures its
tort liability, automobile liability, property, or casualty
insurance other than through the Budget and Control
Board Insurance Reserve Fund and then
subsequently desires to obtain this coverage with the
Budget and Control Board Insurance Reserve
Fund, notice of its intention to so obtain this subsequent
coverage must be provided the Budget and Control
Board Insurance Reserve Fund at least ninety
days prior to the beginning of the coverage with the
State Budget and Control Board Insurance
Reserve Fund. The other lines of insurance that the
political subdivision is required to procure from the
board fund are not required to commence
until the coverage for that line of insurance expires. Any
political subdivision may cancel all lines of insurance with the
State Budget and Control Board Insurance
Reserve Fund if it gives ninety days' notice to the
board fund. The Budget and
Control Board Insurance Reserve Fund may
negotiate the insurance coverage for any political subdivision
separate from the insurance coverage for other insureds;
(4)
if any political subdivision cancels its insurance with
the Budget and Control Board Insurance
Reserve Fund, it is entitled to an appropriate refund of the
premium, less reasonable administrative cost.
(c) For any claim filed
under this chapter, the remedy provided in Section 15-78-120 is
exclusive. The immunity of the State and its political
subdivisions, with regard to the seizure, execution, or
encumbrance of their properties is reaffirmed."
SECTION 29. Chapter 47, Title 2 of the 1976 Code is amended to read:
Section 2-47-10.
The General Assembly finds that a need
exists for careful planning of permanent improvements and of the
utilization of state general obligation and institutional bond
authority in order to ensure the continued favorable bond credit
rating our State has historically enjoyed. It further finds
that the responsibility for proper management
of these matters is properly placed upon the
General Assembly by our State Constitution
legislative and executive branches of government. It is
the purpose of this resolution act to
further ensure the proper legislative and executive
response in the fulfillment of this responsibility.
Section 2-47-15. Where the amount of a permanent improvement project is five hundred thousand dollars or less and the applicable enabling statute or the general law relating to the project or the issuance of bonds or funding relating to the project requires both the review of the Joint Bond Review Committee and the approval by the former Budget and Control Board, the responsibility of the former Budget and Control Board, in this regard, is devolved upon the Director of the Department of Administration (department). Where the amount of the project or funding exceeds five hundred thousand dollars, the responsibility of the former Budget and Control Board, in this regard, is devolved upon the State Contracts and Accountability Authority with no prior approval required on the part of the department.
Section 2-47-20.
There is hereby created a six member joint
committee of the General Assembly to be known as the Joint Bond
Review Committee to study and monitor policies and procedures
relating to the approval of permanent improvement projects and
to the issuance of state general obligation and institutional
bonds; to evaluate the effect of current and past policies on
the bond credit rating of the State; and provide advisory
assistance in the establishment of future capital management
policies. Three members shall be appointed from the Senate
Finance Committee by the chairman thereof and three from the
Ways and Means Committee of the House of Representatives by the
chairman of that committee correspond
corresponding to the terms for which they are elected to
the General Assembly. The committee shall elect officers of the
committee, but any person so elected may succeed himself if
elected to do so.
The expenses of the committee shall be paid
from approved accounts of both houses. The Legislative Council
and all other legislative staff organizations shall provide such
assistance as the joint committee may request.
Section 2-47-25. In addition to the members provided for by Section 2-47-20, two additional members shall be appointed by the Chairman of the Ways and Means Committee of the House of Representatives from the membership of that body. Two additional members shall be appointed by the Chairman of the Finance Committee of the Senate from the membership of the Senate. Members shall serve the same terms as the members of the committee provided for in Section 2-47-20.
Section 2-47-30.
The committee is specifically charged with,
but not limited to, the following responsibilities:
(1) To review, prior to
approval by the Budget and Control Board
State Contracts and Accountability Authority (SCAA) or the
director of the department, as appropriate, the
establishment of any permanent improvement project and the
source of funds for any such project not previously authorized
specifically by the General Assembly.
(2) To study the amount
and nature of existing general obligation and institutional bond
obligations and the capability of the State to fulfill such
obligations based on current and projected revenues.
(3) To recommend
priorities of future bond issuance based on the social and
economic needs of the State.
(4) To recommend
prudent limitations of bond obligations related to present and
future revenue estimates.
(5) To consult with
independent bond counsel and other nonlegislative authorities on
such matters and with fiscal officials of other states to gain
in-depth knowledge of capital management and assist in the
formulation of short- and long-term recommendations for
the General Assembly.
(6) To carry out all of
the above assigned responsibilities in consultation and
cooperation with the executive branch of government and the
Budget and Control Board SCAA and the
department.
(7) To report its
findings and recommendations to the General Assembly annually or
more frequently if deemed advisable by the committee.
Section 2-47-35.
No project authorized in whole or in part
for capital improvement bond funding under the provisions of Act
1377 of 1968, as amended, may be implemented until funds can be
made available and until the Joint Bond Review Committee, in
consultation with the Budget and Control Board
SCAA or the department, establishes priorities for the
funding of the projects within their area of
responsibility. The Joint Bond Review Committee shall
report its priorities to the members of the General Assembly
within thirty days of the establishment of the funding
priorities.
Section 2-47-40.
(A) To assist the
State Budget and Control Board (the Board)
SCAA, the department, and the Joint Bond Review Committee
(the Committee) in carrying out their
respective responsibilities, any agency or institution
requesting or receiving funds from any source for use in the
financing of any permanent improvement project, as a minimum,
shall provide to the Board authority or
department, whichever is responsible for approving the
project, in such form and at such times as the
Board authority or department, after
review by the committee, may prescribe:
(a)(1) a
complete description of the proposed project;
(b)(2) a
statement of justification for the proposed project;
(c)(3) a
statement of the purposes and intended uses of the proposed
project;
(d)(4) the
estimated total cost of the proposed project;
(e)(5) an
estimate of the additional future annual operating costs
associated with the proposed project;
(f)(6) a
statement of the expected impact of the proposed project on the
five-year operating plan of the agency or institution proposing
the project;
(g)(7) a
proposed plan of financing the project, specifically identifying
funds proposed from sources other than capital improvement bond
authorizations; and
(h)(8) the
specification of the priority of each project among those
proposed.
(B) All
institutions of higher learning shall submit permanent
improvement project proposal and justification statements to the
Board SCAA or department, whichever is
responsible for approving the project, through the
Commission on Higher Education which shall forward all such
statements and all supporting documentation received to the
Board SCAA or department together with
its comments and recommendations. The recommendations of the
Commission on Higher Education, among other things, shall
include all of the permanent improvement projects requested by
the several institutions listed in the order of priority deemed
appropriate by the Commission on Higher Education without regard
to the sources of funds proposed for the financing of the
projects requested.
The Board SCAA or
department shall forward a copy of each project proposal and
justification statement and supporting documentation received
together with the Board's SCAA's or
department director's recommendations on such projects to
the committee for its review and action. The recommendations of
the Commission on Higher Education shall be included in the
materials forwarded to the committee by the
Board SCAA or department.
(C) No provision
in this section or elsewhere in this chapter, shall be construed
to limit in any manner the prerogatives of the committee and the
General Assembly with regard to recommending or authorizing
permanent improvement projects and the funding such projects may
require.
Section 2-47-50.
(A) The
board SCAA or department shall establish
formally each permanent improvement project before actions of
any sort which implement the project in any way may be
undertaken and no expenditure of any funds for any services or
for any other project purpose contracted for, delivered, or
otherwise provided prior to the date of the formal action of the
board SCAA or department to establish
the project shall be approved. State agencies and institutions
may advertise and interview for project architectural and
engineering services for a pending project so long as the
architectural and engineering contract is not awarded until
after a state project number is assigned. After the committee
has reviewed the form to be used to request the establishment of
permanent improvement projects and has reviewed the time
schedule for considering such requests as proposed by the
board SCAA or director of the
department, requests to establish permanent improvement
projects shall be made in such form and at such times as the
board SCAA or department may require.
(B) Any proposal
to finance all or any part of any project using any funds not
previously authorized specifically for the project by the
General Assembly or using any funds not previously approved for
the project by the board SCAA or director of
the department and reviewed by the committee shall be
referred to the committee for review prior to approval by the
board SCAA or director of the
department.
(C) Any proposed
revision of the scope or of the budget of an established
permanent improvement project deemed by the
board SCAA or department to be
substantial shall be referred to the committee for its review
prior to any final action by the board SCAA
or department. In making their determinations regarding
changes in project scope, the board SCAA,
department, and the committee shall utilize the permanent
improvement project proposal and justification statements,
together with any supporting documentation, considered at the
time the project was authorized or established originally. Any
proposal to increase the budget of a previously approved project
using any funds not previously approved for the project by the
board SCAA or director of the department
and reviewed by the committee shall in all cases be deemed to be
a substantial revision of a project budget which shall be
referred to the committee for review. The committee shall be
advised promptly of all actions taken by the
board SCAA or director of the department
which approve revisions in the scope of or the budget of any
previously established permanent improvement project not deemed
substantial by the board SCAA or director of
the department.
(D) For purposes
of this chapter, with regard to all institutions of higher
learning, permanent improvement project is defined as:
(1)
acquisition of land, regardless of cost, with staff level
review of the committee and the Budget and Control
Board, Capital Budget Office Department of
Administration, up to two hundred fifty thousand dollars;
(2)
acquisition, as opposed to the construction, of buildings
or other structures, regardless of cost, with staff level review
of the committee and the Budget and Control Board,
Capital Budget Office Department of
Administration, up to two hundred fifty thousand dollars;
(3)
work on existing facilities for any given project
including their renovation, repair, maintenance, alteration, or
demolition in those instances in which the total cost of all
work involved is one million five hundred
thousand dollars or more;
(4)
architectural and engineering and other types of planning
and design work, regardless of cost, which is intended to result
in a permanent improvement project. Master plans and
feasibility studies are not permanent improvement projects and
are not to be included;
(5)
capital lease purchase of a facility acquisition or
construction in which the total cost is one
million five hundred thousand dollars or more;
(6)
equipment that either becomes a permanent fixture of a
facility or does not become permanent but is included in the
construction contract shall be included as a part of a project
in which the total cost is one million five
hundred thousand dollars or more; and
(7)
new construction of a facility that exceeds a total cost
of five hundred thousand dollars.
(E) Any
permanent improvement project that meets the above definition
must become a project, regardless of the source of funds.
However, an institution of higher learning that has been
authorized or appropriated capital improvement bond funds,
capital reserve funds or state appropriated funds, or state
infrastructure bond funds by the General Assembly for capital
improvements shall process a permanent improvement project,
regardless of the amount.
(F) For purposes
of establishing permanent improvement projects, Clemson
University Public Service Activities (Clemson-PSA) and South
Carolina State University Public Service Activities (SC
State-PSA) are subject to the provisions of this chapter.
Section 2-47-55. (A)
All state agencies responsible for providing
and maintaining physical facilities are required to submit a
Comprehensive Permanent Improvement Plan (CPIP) to the Joint
Bond Review Committee, and the
Budget and Control Board SCAA, and the
department. The CPIP must include all of the agency's
permanent improvement projects anticipated and proposed over the
next five years beginning with the fiscal year starting July 1
after submission. The purpose of the CPIP process is to provide
the board SCAA, department, and the
committee with an outline of each agency's permanent improvement
activities for the next five years. Agencies must submit a CPIP
to the committee, and the
board SCAA, and the department on or
before a date to be determined by the committee,
and the board SCAA, and the
department. The CPIP for each higher education agency,
including the technical colleges, must be submitted through the
Commission on Higher Education which must review the CPIP and
provide its recommendations to the board
SCAA, the department, and the committee. The
board SCAA, director of the department,
and the committee must approve the CPIP after submission and may
develop policies and procedures to implement and accomplish the
purposes of this section.
(B) The State shall
define a permanent improvement only in terms of capital
improvements, as defined by generally accepted accounting
principles, for reporting purposes to the State.
Section 2-47-56. Each
state agency and institution may accept gifts-in-kind for
architectural and engineering services and construction of a
value less than two hundred fifty thousand dollars with the
approval of the Commission of Higher Education or its designated
staff, the director of the Division of General
Services department, and the Joint Bond Review
Committee or its designated staff. No other approvals or
procedural requirements, including the provisions of Section
11-35-10, may be imposed on the acceptance of such gifts.
Section 2-47-60. The Joint Bond Review Committee is hereby authorized and directed to regulate the starting date of the various projects approved for funding through the issuance of state highway bonds so as to ensure that the sources of revenue for debt service on such bonds shall be sufficient during the current fiscal year."
SECTION 30. A. Section 1-11-440 of the 1976 Code is amended to read:
"Section 1-11-440.
(A) The State must
defend the members of the State Budget and Control
Board State Contracts and Accountability Authority,
and the Director of the Department of Administration against
a claim or suit that arises out of or by virtue of their
performance of official duties on behalf of the
board authority or the department and
must indemnify these members them for a
loss or judgment incurred by them as a result of the claim or
suit, without regard to whether the claim or suit is brought
against them in their individual or official capacities, or
both. The State must defend officers and management employees
of the board authority,
and legislative employees performing duties for
board the authority's members, and
management employees of the department against a claim or
suit that arises out of or by virtue of the performance
of official duties unless the officer, management employee, or
legislative employee was acting in bad faith and must indemnify
these officers, management employees, and legislative employees
for a loss or judgment incurred by them as a result of such
claim or suit, without regard to whether the claim or suit is
brought against them in their individual or official capacities,
or both. This commitment to defend and indemnify extends to
members, officers, the director and management employees
of the department, and legislative employees after they
have left their employment with the board
authority, or the General
Assembly, as applicable, or the department,
as applicable, if the claim or suit arises out of or by
virtue of their performance of official duties on behalf of the
board authority or the department.
(B) The State must
defend the members of the Retirement Systems Investment Panel
established pursuant to Section 16, Article X of the
Constitution of this State and Section 9-16-310 against a claim
or suit that arises out of or by virtue of their performance of
official duties on behalf of the panel and must indemnify these
members for a loss or judgment incurred by them as a result of
the claim or suit, without regard to whether the claim or suit
is brought against them in their individual or official
capacities, or both. This commitment to defend and indemnify
extends to members of the panel after they have left their
service with the panel if the claim or suit arises out of or by
virtue of their performance of official duties on behalf of the
panel."
B. 1. Section 11-18-20 of the 1976 Code, as added by Act 290 of 2010, is amended to read:
"Section 11-18-20.
(a) 'ARRA Bonds' mean:
(1)
recovery zone bonds authorized under Section 1401 of ARRA;
and
(2)
Qualified Energy Conservation Bonds authorized under
Section 301(a) of Tax Extenders and Alternative Minimum Tax
Relief Act of 2008, Pub. L. 110-343, 122 Stat. 1365 (2008) as
amended by Section 112 of ARRA.
(b) 'Board' means the
South Carolina Budget and Control Board
State Contracts and Accountability Authority.
(c) 'Code' means the
Internal Revenue Code of 1986, as amended.
(d) 'Local Government'
means each county and municipality that received an allocation
of Volume Cap pursuant to the Code and IRS Notice 2009-50.
(e) 'Other federal
bonds' mean any such bond, whether tax--exempt, taxable or tax
credit, created after the date hereof whereby a volume cap
limitation is proscribed under the Code.
(f) 'Qualified energy
conservation bond' means the term as defined in Section 54D(a)
of the Code.
(g) 'Recovery zone'
means the term as defined in Section 1400U-1(b) of the Code.
(h) 'Recovery zone
economic development bond' means the term as defined in Section
1400U-2 of the Code.
(i) 'Recovery zone
facility bond' means the term as defined in Section 1400U-3 of
the Code.
(j) 'State' means the
State of South Carolina.
(k) 'Volume Cap' means
the amount or other limitation of ARRA Bonds allocated to each
state and to counties and large municipalities within each state
in accordance with Section 1400U-1(a)(4) of the Code, with
respect to Recovery Zone Economic Development Bonds and Recovery
Zone Facility Bonds, Section 54D(e)(1) of the Code, with respect
to Qualified Energy Conservation Bonds, and any other section of
the Code which imposes a volume cap limitation on any other
Federal Bonds."
2. The Code Commissioner is directed to change references in Chapter 18 of Title 11 of the 1976 Code from "State Budget and Control Board" or any similar derivation of this term to "State Contracts and Accountability Authority".
C. 1. Section 11-37-30 of the 1976 Code is amended to read:
"Section 11-37-30.
There is created a body politic and corporate known as the
South Carolina Resources Authority. The authority is declared
to be a public instrumentality of the State and the exercise by
it of any power conferred in this chapter is the performance of
an essential public function. The authority consists of the
members of the State Budget and Control Board
Contracts and Accountability Authority to serve ex officio in
the same capacity they serve as members of the SCAA."
2. Section 11-37-200(A) of the 1976 Code is amended to read:
(A) There is
established by this section the Water Resources Coordinating
Council which shall establish the priorities for all sewer,
wastewater treatment, and water supply facility projects
addressed in this chapter, except as otherwise established by
Section 48-6-40. The council shall consist of a representative
of the Governor, the Director of the Department of Health and
Environmental Control, the Director of the South Carolina
Department of Natural Resources, the Director of the
Division of Local Government of the Budget and Control
Board Rural Infrastructure Authority, the
Secretary of Commerce, the Chairman of the Jobs Economic
Development Authority, and the Chairman of the Joint Bond Review
Committee. These representatives may designate a person to
serve in their place on the council, and the Governor shall
appoint the chairman from among the membership of the council
for a one-year term. The council shall establish criteria for
the review of applications for projects. Not less often than
annually, the council shall determine its priorities for
projects. The council after evaluating applications shall
notify the authority of the priority projects. The South
Carolina Jobs Economic Development Authority shall provide the
staff to receive, research, investigate, and process
applications for projects made to the coordinating council and
assist in the formulating of priorities. Upon notification by
the council, the authority shall proceed under the provisions of
this chapter. The authority may consider applications for
projects based upon the existence of a documented emergency
consistent with regulations that may be promulgated by the
authority. In determining which local governments are to
receive grants, the local governments shall provide not less
than a fifty percent match for any project. The authority may
provide financing for the local matching funds on terms and
conditions determined by the authority."
D. 1. Section 11-40-20(A) of the 1976 Code is amended to read:
"(A) There is
created a body corporate and politic and an instrumentality of
the State to be known as the South Carolina Infrastructure
Facilities Authority. The members of the South Carolina
State Budget and Control Board State Contracts and
Accountability Authority comprise the authority to serve
ex officio in the same capacity they serve as members of the
SCAA."
2. Section 11-40-250 of the 1976 Code is amended to read:
"Section 11-40-250.
The Division of Local Government of the State
Budget and Control Board Rural
Infrastructure Authority shall provide staff and otherwise
assist the authority in the administration of the fund and the
performance of its functions under this chapter. The funds to
be used for purposes of the Infrastructure Facilities Authority
must come from funds appropriated to or made available to the
Infrastructure Facilities Authority and not those funds of the
Rural Infrastructure Authority, the administration of which also
is a part of the responsibilities of the Division as provided by
law. In providing such assistance the Division of Local
Government shall:
(1) assist in the
formulation, establishment, and structuring of programs
undertaken by the authority pursuant to this chapter;
(2) provide local
governments information as to the programs of the authority and
the procedures for obtaining the assistance intended by the
chapter;
(3) assist local
governments in making application to such state and federal
agencies, including the authority, as may be necessary or
helpful in order to avail themselves of such programs;
(4) assist the
authority in analyzing and evaluating local government requests
for assistance pursuant to this chapter;
(5) assist in the
structuring and negotiation of local government loan agreements
and loan obligations and authority bonds;
(6) administer the
fund, including any accounts therein;
(7) administer the
authority's programs and loans, including monitoring compliance
by local governments with any rules, regulations, or other
requirements of the authority with respect to such programs and
compliance with covenants and agreements made by local
governments with respect to any loan agreement or loan
obligation; and
(8) provide
such other assistance and perform
such other duties as may be requested or
directed by the authority."
E. Section 11-49-40(A) of the 1976 Code is amended to read:
"(A) The authority
is governed by a board, which that shall
consist of five members as follows: the Governor or his
designee, the State Treasurer, the Comptroller General, the
Chairman of the Senate Finance Committee, and the Chairman of
the House Ways and Means Committee. The Governor shall serve
as chairman; and in the absence of the Governor, meetings must
be chaired by the State Treasurer the members of the
State Contracts and Accountability Authority. All members
serve ex officio in the same capacity they serve as members
of the SCAA.
(B) Members of the
board serve without pay but are allowed the usual mileage, per
diem, and subsistence as provided by law for members of state
boards, committees, and commissions.
(C) Members of the
board and its employees, if any, are subject to the provisions
of Chapter 13, Title 8, the Ethics, Government Accountability,
and Campaign Reform Act, and Chapter 17,
of Title 2, relating to lobbying.
(D) To the extent that
administrative assistance is needed for the functions and
operations of the authority, the board may obtain this
assistance from the Office of the State Treasurer and the State
Budget and Control Board Contracts and
Accountability Authority, and any successor agency,
office, or division, each of which must provide the
assistance requested by the board at no cost to the board or to
the authority other than for expenses incurred and paid to
entities that are not agencies or departments of the State. The
board must retain ultimate responsibility and provide proper
oversight for the implementation of this chapter.
(E) The board shall
exercise the powers of the authority. A majority of the members
of the board constitutes a quorum for the purpose of conducting
all business. The board shall determine the number of personnel
it requires, their compensation, and duties."
F. 1. Section 41-43-100 of the 1976 Code is amended to read:
"Section 41-43-100.
In addition to other powers vested in the authority by
existing laws, the authority has all powers granted the counties
and municipalities of this State pursuant to the provisions of
Chapter 29, of Title 4, including the
issuance of bonds by the authority and the refunding of bonds
issued under that chapter. The authority may issue bonds upon
receipt of a certified resolution by the county or municipality
in which the project, as defined in Chapter 29,
of Title 4, is or will be located, containing
the findings set forth in Section 4-29-60 and evidence of a
public hearing held not less than fifteen days after publication
of notice in a newspaper of general circulation in the county in
which the project is or will be located. The authority may
combine for the purposes of a single offering bonds to finance
more than one project. The interest rate of bonds issued
pursuant to this section is not subject to
approval by the State Budget and Control Board
Contracts and Accountability Authority."
2. Section 41-43-110(A) of the 1976 Code is amended to read:
"(A) The authority
may issue bonds to provide funds for any program authorized by
this chapter. The bonds authorized by this chapter are limited
obligations of the authority. The principal and interest are
payable solely out of the revenues derived by the authority.
The bonds issued do not constitute an indebtedness of the State
or the authority within the meaning of any state constitutional
provision or statutory limitation. They are an indebtedness
payable solely from a revenue producing source or from a special
source which that does not include
revenues from any tax or license. The bonds do not constitute
nor give rise to a pecuniary liability of the State or the
authority or a charge against the general credit of the
authority or the State or taxing powers of the State and this
fact must be plainly stated on the face of each bond. The bonds
may be executed and delivered at any time as a single issue or
from time to time as several issues, may be in such form and
denominations, may be of such tenor, may be in coupon or
registered form, may be payable in such installments and at such
time, may be subject to terms of redemption, may be payable at
such place, may bear interest at such rate payable at such place
and evidenced in such manner, and may contain such provisions
not inconsistent herewith, all of which are provided in the
resolution of the authority authorizing the bonds. Subject to
Budget and Control Board approval by the
State Contracts and Accountability Authority as to their
issuance and sale, any bonds issued under this section may
be sold at public or private sale as may be determined to be
most advantageous. The bonds may be sold at public or private
sale and, if by private sale, the authority shall designate the
syndicate manager or managers. The authority may pay all
expenses, premiums, insurance premiums, and commissions which it
considers necessary from proceeds of the bonds or program funds
in connection with the sale of bonds. The interest rate of
bonds issued pursuant to this section is not
subject to approval by the State Budget and Control
Board Contracts and Accountability
Authority."
G. Section 54-3-119 of the 1976 Code, as added by Act 73 of 2009, is amended to read:
"Section 54-3-119.
(A) Except as provided in subsection
(B), the State Ports Authority Board is directed to sell under
those terms and conditions it considers most advantageous to the
authority and the State of South Carolina all real property it
owns on Daniel Island and Thomas (St. Thomas) Island except for
the dredge disposal cells that are needed in connection with the
construction of the North Charleston terminal on the Charleston
Naval Complex and for harbor deepening and for channel and berth
maintenance. The sale shall be timed and concluded on a
schedule that prudently considers all market conditions
affecting the sale but in any event must be under contract for
sale by December 31, 2012, and the sale completed by December
31, 2013. The property must be transferred to the State
Budget and Control Board Department of
Administration for sale if authority is unable to complete
the sale by December 31, 2013. To assist in the sale of the
property, the board shall have the property appraised by at
least two independent qualified commercial appraisers not
affiliated with the authority. The real property appraisers
must be a State Certified General Real Estate Appraiser, a
member of the Appraisal Institute (MAI), and must be
knowledgeable in appraisal and in appraising marine terminal
facilities. The appraisal of the real property should include
its future development opportunities and those of the
surrounding properties. The sale price must be equal to or
greater than at least one of the independent appraisals. The
approval of the State Budget and Control Board is required to
effectuate the sale if completed on or before December
31 July 1, 2013, and after July 1, 2013, the
State Contracts and Accountability Authority (SCAA) must approve
the sale.
(B) The board shall
give the right of first refusal to those former landowners on
Thomas (St. Thomas) Island who sold their land located within
the transportation corridor to the authority in anticipation of
the authority's exercise of eminent domain. The right of first
refusal must provide that the landowner may repurchase his land
at the same price for which the authority purchased it from him.
Each contract for the sale of a parcel located in the
transportation corridor on Thomas Island must contain a covenant
creating an easement over the parcel. The easement must permit
the authority, and any successor in interest to the authority,
reasonable ingress and egress to the real property on Daniel
Island owned by the authority as of the effective date of this
section. The easement must contain express language that the
easement runs with the land.
(C)(1) With regard to
the sale of real property pursuant to subsection (A), the State
Budget and Control Board or the Department of Administration,
as appropriate, is vested with all of the board's fiduciary
duties to the authority and the authority's bondholders if the
property is transferred to the State Budget and Control Board
or the Department of Administration for sale. The
acceptance of any sales price by either the board,
or the State Budget and Control Board, or
the Department of Administration must be exercised with due
regard to the fiduciary duty owed to the authority and for the
protection of the interests of the authority's bondholders as
set forth in its bond covenants, and otherwise according to law,
including the conversion of a nonperforming asset into revenues
in the most expeditious manner.
(2)
The State Budget and Control Board or the Department of
Administration may deduct from the proceeds of the sale an
amount equal to the actual costs incurred in conjunction with
the sale of the property. The balance of the proceeds must be
transmitted to the authority."
H. Section 48-5-30 of the 1976 Code is amended to read:
"Section 48-5-30.
There is created the South Carolina Water Quality
Revolving Fund Authority. The authority is a public
instrumentality of this State and the exercise by it of a power
conferred in this chapter is the performance of an essential
public function. The members of the State Budget and
Control Board Contracts and Accountability
Authority comprise the authority to serve ex officio in
the same capacity they serve as members of the SCAA."
I. 1. Section 59-109-30(1) of the 1976 Code is amended to read:
"(1) 'Authority'
means the State Budget and Control Board
Contracts and Accountability Authority, acting as the
Educational Facilities Authority for Private Nonprofit
Institutions of Higher Learning and serving ex officio in the
same capacity they serve as members of the SCAA."
2. Section 59-109-40 of the 1976 Code is amended to read:
"Section 59-109-40.
There is hereby created a body politic and corporate to be
known as the 'Educational Facilities Authority for Private
Nonprofit Institutions of Higher Learning,' hereinafter in this
chapter called the Authority. The Authority is constituted a
public instrumentality and the exercise by the Authority of the
powers conferred by this chapter shall
must be deemed and held to be the performance of an
essential public function. The Authority shall consist of the
members from time to time of the State Budget and
Control Board Contracts and Accountability
Authority, ex officio serving in the same capacity as
they serve as members of the SCAA; and all the functions and
powers of the Authority are hereby granted to the State
Budget and Control Board Contracts and
Accountability Authority, as an incident of its functions in
connection with the public finances of the State."
J. Section 59-115-20(1) of the 1976 Code is amended to read:
"(1) 'Authority'
shall mean means the State
Budget and Control Board of South Carolina
Contracts and Accountability Authority, acting as the
State Education Assistance Authority."
SECTION 31. Article 5, Chapter 11, Title 1 of the 1976 Code, as last amended by Act 31 of 2011, is further amended to read:
Section 1-11-703. As
used in this article:
(1) 'Actuarial accrued
liability' means that portion, as determined by a particular
actuarial cost method, of the actuarial present value of fund
obligations and administrative expenses which is not provided
for by future normal costs.
(2) 'Actuarial
assumptions' means assumptions regarding the occurrence of
future events affecting costs of the SCRHI Trust Fund or LTDI
Trust Fund such as mortality, withdrawal, disability, and
retirement; changes in compensation; aging effects and cost
trends for post-employment benefits; benefit election rates;
rates of investment earnings and asset appreciation or
depreciation; procedures used to determine the actuarial value
of assets; and other such relevant items.
(3) 'Actuarial cost
method' means a method for determining the actuarial present
value of the obligations and administrative expenses of the
SCRHI Trust Fund or LTDI Trust Fund and for developing an
actuarially equivalent allocation of such value to time periods,
usually in the form of a normal cost and an actuarial-accrued
liability. Acceptable actuarial methods are the aggregate,
attained age, individual entry age, frozen attained age, frozen
entry age, and projected unit credit methods.
(4) 'Actuarial present
value of total projected benefits' means the present value, at
the valuation date, of the cost to finance benefits payable in
the future, discounted to reflect the expected effects of the
time value of money and the probability of payment.
(5) 'Actuarial
valuation' means the determination, as of a valuation date, of
the normal cost, actuarial accrued liability, actuarial value of
assets, and related actuarial present values for the SCRHI Trust
Fund or LTDI Trust Fund.
(6) 'Actuarially sound'
means that calculated contributions to the SCRHI Trust Fund or
LTDI Trust Fund are sufficient to pay the full actuarial cost of
these trust funds. The full actuarial cost includes both the
normal cost of providing for fund obligations as they accrue in
the future and the cost of amortizing the unfunded actuarial
accrued liability over a period of no more than thirty years.
(7) 'Administrative
expenses' means all expenses incurred in the operation of the
SCRHI Trust Fund and LTDI Trust Fund, including all investment
expenses.
(8) 'LTDI Trust Fund'
means the Long Term Disability Insurance Trust Fund established
pursuant to Section 1-11-707 to fund benefits under the state's
Basic Long Term Disability (BLTD) Income Benefit Plan.
(9) 'Board'
means the State Budget and Control Board 'Authority'
means the State Contracts and Accountability Authority
established pursuant to Chapter 55, Title 11, acting through its
Insurance Services Division.
(10) 'Employee
insurance program' or 'EIP' means the office of the board
designated by the board to operate insurance programs pursuant
to this article.
(11) 'IBNR' means
unpaid health claims incurred but not reported. The liability
for IBNR claims is actuarially estimated based on the most
current historical claims experience of previous payments,
inflation, award trends, and estimates of health care trend
changes.
(12) 'Operating
account' means the health insurance program's business operating
activities account maintained by the State Treasurer in which
are deposited all premiums for enrollees in self-funded health
plans authorized in this article, along with employer
contributions for active employees covered by such self-funded
health plans, and from which claims and administrative expenses
of the self-funded health and dental plans administered by the
employee insurance program are paid.
(13) 'State-covered
entity' means state agencies and institutions, however
described, and school districts. It also includes political
subdivisions of the State that participate in the state health
and dental plans.
(14) 'State health and
dental plans' means any insurance program administered by the
employee insurance program pursuant to this article.
(15) 'SCRHI Trust Fund'
means the South Carolina Retiree Health Insurance Trust Fund
established pursuant to Section 1-11-705 to fund the employer
cost for health benefits for retired state employees and retired
public school district employees.
(16) 'State Retirement
System' or 'State Retirement Systems' means all retirement
systems established pursuant to Title 9 except for the National
Guard Retirement System.
(17) 'Unfunded
actuarial accrued liability' means for any actuarial valuation
the excess of the actuarial accrued liability over the actuarial
value of the assets of the fund under an actuarial cost method
utilized by the fund for funding purposes.
(18) 'Trust fund paid
premiums' means the employer premium for state health and dental
plans coverage paid by the SCRHI Trust Fund on behalf of a
retiree. When it is expressed as a percentage of trust fund
paid premiums, it means that the SCRHI Trust Fund shall pay the
stated percentage of the employer premiums, with the retiree
paying the balance of the employer premiums and the entire
employee premium.
Section 1-11-705. (A)
There is established in the State Treasury
separate and distinct from the general fund of the State and all
other funds the South Carolina Retiree Health Insurance Trust
Fund (SCRHI Trust Fund) to provide for the employer costs of
retiree post-employment health insurance benefits for retired
state employees and retired employees of public school
districts. Earnings on the SCRHI Trust Fund must be credited to
it and unexpended funds carried forward in it to succeeding
fiscal years.
(B) The
board authority is the trustee of the
SCRHI Trust Fund and the State Treasurer is the custodian of the
funds of the SCRHI Trust Fund.
(C) The employee
insurance program shall administer the SCRHI Trust Fund.
(D) The employee
insurance program shall engage actuarial and other services as
required to transact the business of the SCRHI Trust Fund. The
actuary engaged by the employee insurance program shall provide
technical advice to the board authority
regarding operation of the SCRHI Trust Fund.
(E) Upon
recommendations of the actuary, the board
authority shall adopt generally accepted and reasonable
actuarial assumptions and methods for the operation and funding
of the SCRHI Trust Fund as it considers necessary and prudent.
The actuarial assumptions and methods adopted by the
board authority must be appropriate for
the purposes at hand and must be reasonable, individually and in
the aggregate, taking into account the experience of the plan
and reasonable expectations. Utilizing the actuarial
assumptions most recently adopted by the board
authority, the actuary engaged by the employee insurance
program shall set the annual actuarial valuations of normal
cost, actuarial liability, actuarial value of assets, and
related actuarial present values for the SCRHI Trust Fund.
(F) The
board authority may adopt policies and
procedures and promulgate regulations as necessary for the
proper administration of the SCRHI Trust Fund.
(G)(1) The funds of the
SCRHI Trust Fund must be invested and reinvested by the State
Treasurer in the manner allowed by law. The State Treasurer
shall consult with the employee insurance program and the
employee insurance program's actuary to develop an annual
investment plan for the SCRHI Trust Fund taking into account the
cash flow needs of the employee insurance program with regard to
payment of the employer share of premiums and claims for covered
retirees.
(2)
Effective beginning with the first fiscal year after the
ratification of an amendment to Section 16, Article X of the
Constitution of this State allowing funds in post-employment
benefits trust funds to be invested in equity securities, the
Retirement System Investment Commission (RSIC) established
pursuant to Chapter 16 of Title 9, shall invest and reinvest the
funds of the SCRHI Trust Fund as assets of a retirement system
are invested. The chief investment officer shall consult with
the employee insurance program and the employee insurance
program's actuary to develop an annual investment plan for the
SCRHI Trust Fund taking into account the cash flow needs of the
employee insurance program with regard to payment of the
employer share of premiums and claims for covered retirees.
After the initial fiscal year the RSIC assumes this investing
function, the annual investment plan for the SCRHI Trust Fund
must be approved by the commission no later than June first of
each year for the fiscal year beginning July first of the same
calendar year.
(H) The
board authority annually shall determine
the minimum annual required contributions to the SCRHI Trust
Fund on an actuarially sound basis in accordance with
Governmental Accounting Standards Board Statement No. 45, or any
other Governmental Accounting Standards Board statements that
may be applicable to the SCRHI Trust Fund.
(I) The
board authority shall fund the SCRHI
Trust Fund:
(1)
through the employer contributions for the South Carolina
Retirement Systems as provided in Section 1-11-710(A)(2). The
total employer contributions collected from the State and school
districts for post-employment benefits must be transferred
immediately to the SCRHI Trust Fund for investment,
reinvestment, and the payment of post-employment benefits;
(2)
by transfer of the Employee Insurance Program as of
January thirty-first of each calendar year to the trust fund
from the employee insurance program's operating account, the
cash balance in the operating account in excess of one hundred
forty percent of the actuarially-determined IBNR reserves of the
state's health plans as of December thirty-first of the
preceding year. On May 1, 2008, an initial transfer must take
place applicable to the cash balance as of December 31, 2007;
and
(3)
with funding as authorized by the General Assembly
pursuant to Section 1-11-710(D).
(J) Each month, the
employee insurance program shall determine the monthly amount of
the state-funded employer premium with respect to retired state
employees and retired public school district employees who are
eligible for state-paid employer premiums pursuant to Section
1-11-730, and shall transfer this amount to the operating
account from the SCRHI Trust Fund. In addition, the employee
insurance program shall transfer the total cost of
post-employment benefits for retirees and their dependents, net
of premium contributions made on behalf of retirees and other
sources of revenue attributable to retirees, in accordance with
Governmental Accounting Standards Board Statements Nos. 43 and
45 and the Implementation Guide.
(K) The funds of the
SCRHI Trust Fund may only be used for the payment of
employer-provided other post-employment benefits under the terms
of the state health and dental plans. The administrative costs
related to the administration of the SCRHI Trust Fund, and the
investment and reinvestment of its funds, may be funded from the
earnings of the SCRHI Trust Fund.
(L) As a trust, the
funds of the SCRHI Trust Fund are not assets of the State or the
school districts or their respective agencies. The
contributions to the SCRHI Trust Fund are irrevocable and may
not revert to the employer except upon complete satisfaction of
all liabilities and administrative expenses of the state health
and dental plans of other post-employment benefits provided
pursuant to the state health and dental plans.
Section 1-11-707. (A)
There is established in the State Treasury
separate and distinct from the general fund of the State and all
other funds the South Carolina Long Term Disability Insurance
Trust Fund (LTDI Trust Fund) to provide for the payment of
benefits under the state's Basic Long Term Disability Income
Benefit Plan. Earnings on the LTDI Trust Fund must be credited
to it and unexpended funds carry forward in it to succeeding
fiscal years.
(B) The
board authority is the trustee of the
LTDI Trust Fund and the State Treasurer is the custodian of the
funds of the LTDI Trust Fund.
(C) The employee
insurance program shall administer the LTDI Trust Fund.
(D) The employee
insurance program shall engage actuarial and other services as
required to transact the business of the LTDI Trust Fund. The
actuary engaged by the employee insurance program shall provide
technical advice to the board authority
regarding operation of the LTDI Trust Fund.
(E) Upon
recommendations of the actuary, the board
authority shall adopt generally accepted and reasonable
actuarial assumptions and methods for the operation and funding
of the LTDI Trust Fund as it considers necessary and prudent.
The actuarial assumptions and methods adopted by the
board authority must be appropriate for
the purposes at hand and must be reasonable, individually and in
the aggregate, taking into account the experience of the plan
and reasonable expectations. Utilizing the actuarial
assumptions most recently adopted by the board
authority, the actuary engaged by the employee insurance
program shall set the annual actuarial valuations of normal
cost, actuarial liability, actuarial value of assets, and
related actuarial present values for the LTDI Trust Fund.
(F) The
board authority may adopt policies and
procedures and promulgate regulations as necessary for the
proper administration of the LTDI Trust Fund.
(G)(1) The funds of the
LTDI Trust Fund must be invested and reinvested by the State
Treasurer in the manner allowed by law. The State Treasurer
shall consult with the employee insurance program and the
employee insurance program's actuary to develop an annual
investment plan for the LTDI Trust Fund taking into account the
cash flow needs of the employee insurance program with regard to
payment of the employer share of premiums and claims for covered
retirees.
(2)
Effective beginning with the first fiscal year after the
ratification of an amendment to Section 16, Article X of the
Constitution of this State allowing funds in post-employment
benefits trust funds to be invested in equity securities, the
Retirement System Investment Commission (RSIC) established
pursuant to Chapter 16 of Title 9, shall invest and reinvest the
funds of the LTDI Trust Fund as assets of a retirement system
are invested. The chief investment officer shall consult with
the employee insurance program and the employee insurance
program's actuary to develop an annual investment plan for the
LTDI Trust Fund taking into account the cash flow needs of the
employee insurance program with regard to payment of the
employer share of premiums and claims for covered retirees.
After the initial fiscal year the RSIC assumes this investing
function, the annual investment plan for the LTDI Trust Fund
must be approved by the commission no later than June first of
each year for the fiscal year beginning July first of the same
calendar year.
(H) The
board authority annually shall determine
the minimum annual required contributions to the LTDI Trust Fund
on an actuarially sound basis in accordance with Governmental
Accounting Standards Board Statement No. 45, or any other
Governmental Accounting Standards Board statements that may be
applicable to the LTDI Trust Fund.
(I) The
board authority shall increase the
employer contributions used to fund the BLTD Plan by an amount
equal to or greater than the minimum annual required
contribution for the LTDI Trust Fund as determined in subsection
(H) of this section. The increased employer contributions
remitted to the employee insurance program under this subsection
must be deposited in the LTDI Trust Fund.
(J) Each month, the
employee insurance program shall transfer to the operating
account from the LTDI Trust Fund the amount invoiced by the
third-party administrator for the BLTD Plan for payment of LTDI
claims, including reasonable expenses associated with claims
administration of the BLTD Plan.
(K) The assets of the
LTDI Trust Fund may only be used for the payment of the state's
claims under the BLTD Plan along with reasonable expenses
associated with the operation of the BLTD Plan, and the assets
of the LTDI Trust Fund may not be used for any other purpose.
The administrative costs related to the administration of the
LTDI Trust Fund, and the investment and reinvestment of its
funds, must be funded from the earnings of the LTDI Trust Fund.
(L) As a trust, the
funds of the LTDI Trust Fund are not assets of the State or the
school districts or their respective agencies. The
contributions to the LTDI Trust Fund are irrevocable and may not
revert to the employer except upon complete satisfaction of all
liabilities and administrative expenses of the State Basic Long
Term Disability Income Benefit Plan of other post-employment
benefits provided pursuant to the State Basic Long Term
Disability Income Benefit Plan.
Section 1-11-710.
(A)(1) The State Budget
and Control Board shall:
(1) The authority,
acting through its Insurance Services Division, shall make
available to active and retired employees of this State and its
public school districts and their eligible dependents group
health, dental, life, accidental death and dismemberment, and
disability insurance plans and benefits in an equitable manner
and of maximum benefit to those covered within the available
resources;
(2)
The authority shall:
(a)
approve by August fifteenth of each year a plan of
benefits, eligibility, and employer, employee, retiree, and
dependent contributions for the next calendar year. The
board authority shall devise a plan for
the method and schedule of payment for the employer and employee
share of contributions and by July first of the current fiscal
year, develop and implement a plan increasing the employer
contribution rates of the State Retirement Systems to a level
adequate to cover the employer's share for the current fiscal
year's cost of providing health and dental insurance to retired
state and school district employees. The state health and
dental plans must include a method for the distribution of the
funds appropriated as provided by law which are designated for
retiree insurance and also must include a method for allocating
to school districts, excluding EIA funding, sufficient general
fund monies to offset the additional cost incurred by these
entities in their federal and other fund activities as a result
of this employer contribution charge. The funds collected
through increasing the employer contribution rates for the State
Retirement Systems under this section must be deposited in the
SCRHI Trust Fund established pursuant to Section 1-11-705. The
amounts appropriated in this section shall constitute the
State's pro rata contributions to these programs except the
State shall pay its pro rata share of health and dental
insurance premiums for retired state and public school employees
for the current fiscal year;
(3)(b) adjust
the plan, benefits, or contributions, at any time to insure the
fiscal stability of the system;
(4)(c) set
aside in separate continuing accounts in the State Treasury,
appropriately identified, all funds, state-appropriated and
other, received for actual health and dental insurance premiums
due. Funds credited to these accounts may be used to pay the
costs of administering the state health and dental plans and may
not be used for purposes of other than providing insurance
benefits for employees and retirees. A reserve equal to not
less than one and one-half months' claims must be maintained in
the accounts.
(B) The
board authority may authorize the
Insurance Reserve Fund to provide reinsurance, in an approved
format with actuarially developed rates, for the operation of
the group health insurance or cafeteria plan program, as
authorized by Section 9-1-60, for active and retired employees
of the State, and its public school districts and their eligible
dependents. Premiums for reinsurance provided pursuant to this
subsection must be paid out of state appropriated and other
funds received for actual health insurance or cafeteria plan
premiums due.
(C) Notwithstanding
Sections 1-23-310 and 1-23-320 or any other provision of law,
claims for benefits under any self-insured plan of insurance
offered by the State to state and public school district
employees and other eligible individuals must be resolved by
procedures established by the board
authority, which shall constitute the exclusive remedy
for these claims, subject only to appellate judicial review
consistent with the standards provided in Section 1-23-380.
(D) The General
Assembly intends to authorize funding for the SCRHI Trust Fund
in order to make progress toward reaching or maintaining the
minimum annual required contribution under Governmental
Accounting Standards Board Statement No. 45. The
board authority shall determine the
minimum annual required contribution pursuant to Section
1-11-705(H).
Section 1-11-715. The
Employee Insurance Program of the Budget and Control
Board authority is directed to develop and
implement, for employees and their spouses who participate in
the health plans offered by the Employee Insurance Program, an
incentive plan to encourage participation in programs offered by
the Employee Insurance Program that promote health and the
prevention of disease. The Employee Insurance Program is
further directed to implement a premium reduction or other
financial incentive, beginning on January 1, 2012, for those
employees and their spouses who participate in these programs.
Section 1-11-720. (A)
In addition to the employees and retirees
and their eligible dependents covered under the state health and
dental insurance plans pursuant to Section 1-11-710, employees
and retirees and their eligible dependents of the following
entities are eligible for coverage under the state health and
dental insurance plans pursuant to the requirements of
subsection (B):
(1)
counties;
(2)
regional tourism promotion commissions funded by the
Department of Parks, Recreation and Tourism;
(3)
county intellectual disability boards funded by the State
Mental Retardation Department;
(4)
regional councils of government established pursuant to
Article 1, Chapter 7 of Title 6;
(5)
regional transportation authorities established pursuant
to Chapter 25 of Title 58;
(6)
alcohol and drug abuse planning agencies designated
pursuant to Section 61-12-20;
(7)
special purpose districts created by act of the General
Assembly that provide gas, water, fire, sewer, recreation,
hospital, or sanitation service, or any combination of these
services;
(8)
municipalities;
(9)
local councils on aging or other governmental agencies
providing aging services funded by the Office on Aging, Office
of the Lieutenant Governor;
(10)
community action agencies that receive funding from the
Community Services Block Grant Program administered by the
Governor's Office, Division of Economic Opportunity;
(11)
a residential group care facility providing on-site
teaching for residents if the facility's staff are currently
members of the South Carolina Retirement System established
pursuant to Chapter 1, Title 9 and if it provides at no cost
educational facilities on its grounds to the school district in
which it is located.
(12)
the South Carolina State Employees' Association;
(13)
the Palmetto State Teachers' Association;
(14)
the South Carolina Education Association;
(15)
the South Carolina Association of School Administrators;
(16)
the South Carolina School Boards Association;
(17)
the South Carolina Student Loan Corporation.
(18)
legislative caucus committees as defined in Section
8-13-1300(21).
(19)
soil and water conservation districts established pursuant
to Title 48, Chapter 9.
(20)
housing authorities as provided for in Chapter 3, Title
31;
(21)
the Greenville-Spartanburg Airport District;
(22)
cooperative educational service center employees.
(23)
the South Carolina Sheriff's Association.
(24)
the Pee Dee Regional Airport District.
(25)
the Children's Trust Fund as established pursuant to
Section 63-11-910.
(26)
a residential group facility which provides on-site
teaching for residents if the facility's employees are currently
members of the South Carolina Retirement System or if it
provides, at no cost, educational facilities on its grounds to
the school district in which it is located.
(27)
a federally qualified health center.
(28)
County First Steps Partnership established pursuant to
Section 59-152-60.
(29)
Palmetto Pride as established pursuant to paragraph 26.7,
Part 1B, Act 115 of 2005.
(30)
joint agencies established pursuant to Chapter 23, Title
6.
(B) To be eligible to
participate in the state health and dental insurance plans, the
entities listed in subsection (A) shall comply with the
requirements established by the State Budget and Control
Board division, and the benefits provided must
be the same benefits provided to state and school district
employees. These entities must agree to participate for a
minimum of four years and the board may adjust the premiums
during the coverage period based on experience. An entity which
withdraws from participation may not subsequently rejoin during
the first four years after the withdrawal date.
(C) If an entity
participating in the plans pursuant to subsection (A) is
delinquent in remitting proper payments to cover its
obligations, the board's Office of
authority's Insurance Services Division shall
certify the delinquency to the department or agency of the State
holding funds payable to the delinquent entity, and that
department or agency shall withhold from those funds an amount
sufficient to satisfy the unpaid obligation and shall remit that
amount to the Office of authority's
Insurance Services Division in satisfaction of the
delinquency.
Section 1-11-725. The
State Budget and Control Board's
authority's experience rating of all local disabilities
and special needs providers pursuant to Section 1-11-720(A)(3)
must be rated as a single group when rating all optional groups
participating in the state employee health insurance program.
Section 1-11-730. (A)
If a person began employment eligible for
coverage under the state health and dental plans on or before
May 1, 2008, the following eligibility provisions govern that
person's participation in state health and dental plans as a
retiree:
(1)
A person covered by the state health and dental plans who
terminates employment with at least twenty years' retirement
service credit by a state-covered entity before eligibility for
retirement under a state retirement system is eligible for state
health and dental plans coverage, effective on the date of
retirement under a state retirement system, if the last five
years are consecutive and in a full-time permanent position with
a state-covered entity. With respect to a retiree eligible for
coverage pursuant to this subsection, the retiree is eligible
for trust fund paid premiums and the retiree is responsible for
the entire employee premium.
(2)
A member of the General Assembly who leaves office or
retires with at least eight years' credited service in the
General Assembly Retirement System is eligible to participate in
the state health and dental plans by paying the full premium as
determined by the State Budget and Control
Board authority.
(3)
With respect to an active employee: (a) employed by the
State or a public school district, (b) retiring with ten or more
years of state-covered entity service credited under a state
retirement system, and (c) with the last five years of earned
service credit consecutive and in a full-time permanent position
with the State or a public school district, the retiree is
eligible for trust fund paid premiums and the retiree is
responsible for the entire employee premium.
(4)
A person covered by the state health and dental plans who
retires with at least five years' state-covered entity service
credited under a state retirement system is eligible to
participate in the state health and dental plans by paying the
full premium as determined by the board
authority, if the last five years are consecutive and in
a full-time permanent position with a state-covered entity.
(5)
A spouse or dependent of a person covered by the plans who
is killed in the line of duty after December 31, 2001, shall
receive equivalent coverage under the state health and dental
plans for a period of twelve months and the State is responsible
for paying the full premium. After the twelve-month period, a
spouse or dependent is eligible for trust fund paid premiums. A
spouse is eligible for trust fund paid premiums under this
subsection until the spouse remarries. A dependent is eligible
for trust fund paid premiums under this subsection until the
dependent's eligibility for coverage under the plans would
ordinarily terminate.
(6)
A former municipal or county council member of a county or
municipality which participates in the state health and dental
plans who served on the council for at least twelve years and
who was covered under the plans at the time of termination is
eligible to maintain coverage under the plans if the former
member pays the full employer and employee contributions and if
the county or municipal council elects to allow this coverage
for former members.
(7)
A person covered by the state health and dental plans who
terminated employment with at least eighteen years' retirement
service credit by a state-covered entity before eligibility for
retirement under a state retirement system before 1990 is
eligible for the plans effective on the date of retirement, if
this person returns to a state-covered entity and is covered by
the state health and dental plans and completes at least two
consecutive years in a full-time permanent position before the
date of retirement.
(B) If a person began
employment eligible for coverage under the state health and
dental plans after May 1, 2008, the following eligibility
provisions govern that person's participation in state health
and dental plans as a retiree:
(1)
An active employee covered by the state health and dental
plans who retires with at least five years of earned retirement
service credit under a state retirement system with a
state-covered entity is eligible to participate as a retiree in
the state health and dental plans if the last five years of the
person's covered employment were consecutive and in a full-time
permanent position.
(2)
A person covered by the state health and dental plans who
terminates employment before the person's date of retirement
with at least twenty years of earned retirement service credit
under a state retirement system with a state-covered entity is
eligible to participate as a retiree in the state health and
dental plans on the person's date of retirement under a state
retirement system, if the last five years of the person's
covered employment before termination were consecutive and in a
full-time permanent position.
(3)
A retired state employee or a retired employee of a public
school district who retires under a state retirement system and
who is eligible for state health and dental plan coverage under
the provisions of item (1) or (2) of this subsection, is
eligible for trust fund paid premiums as follows:
(a)
If the retiree's earned service credit in a state
retirement system is five or more years but fewer than fifteen
years with a state-covered entity, then the retiree shall pay
the full premium for health and dental plans.
(b)
If the retiree's earned service credit in a state
retirement system is more than fifteen years, but fewer than
twenty-five years with a state-covered entity, then the retiree
is eligible for fifty percent trust fund paid premiums and the
retiree shall pay the remainder of the premium cost.
(c)
If the retiree's earned service credit in a state
retirement system is twenty-five or more years with a
state-covered entity, then the retiree is eligible for trust
fund paid premiums and the retiree is responsible for the entire
employee premium.
(4)
If a retiree under a state retirement system
was employed by an entity that participates in the state health
and dental plans pursuant to the provisions of Section 1-11-720
and is eligible to participate in state health and dental plans
as a retiree pursuant to the provisions of item (1) or (2) of
this subsection, then the retiree's employer, at its discretion,
may elect to pay all or a portion of the premium for the
retiree's state health and dental plans.
(5)
A spouse or dependent of a person covered by the plans who
is killed in the line of duty on or after May 1, 2008, shall
continue to maintain coverage under state health and dental
plans for a period of twelve months after the covered person's
death and the State is responsible for paying the full premium.
After the twelve-month period, a spouse or dependent is eligible
for trust fund paid premiums and the spouse or dependent is
responsible for the entire employee premium. A spouse is
eligible for trust fund paid premiums under this subsection
until the spouse remarries. A dependent is eligible for trust
fund paid premiums pursuant to this subsection until the
dependent's eligibility for coverage under the plans would
ordinarily terminate.
(C) For employees who
participate in the state health and dental plans pursuant to the
provisions of Section 1-11-720 but who are not members of the
State Retirement Systems, one year of full-time employment or
its equivalent under their employment relation equates to one
year of earned retirement service credit under a state
retirement system for purposes of the requirements of subsection
(B)(1) and (2) of this section. The EIP shall implement the
provisions of this subsection and make determinations pursuant
to it. A person aggrieved by a determination of the EIP
pursuant to this subsection may appeal that determination as a
contested case as provided in Chapter 23 of Title 1, the
Administrative Procedures Act.
Section 1-11-740. The
Division of Insurance Services of the
State Budget and Control Board Division of the
Authority may develop an optional long-term care insurance
program for active and retired members of the various state
retirement systems depending on the availability of a qualified
vendor. A program must require members to pay the full
insurance premium.
Section 1-11-750. The Budget and
Control Board authority through its Insurance
Services Division shall devise a method of withholding
long-term care insurance premiums offered under Section 1-11-740
for retirees if sufficient enrollment is obtained to make the
deductions feasible.
Section 1-11-770. (A)
Subject to appropriations, the General Assembly authorizes
the state Budget and Control Board
authority to plan, develop, and implement a statewide
South Carolina 211 Network, which must serve as the single point
of coordination for information and referral for health and
human services. The objectives for establishing the South
Carolina 211 Network are to:
(1)
provide comprehensive and cost-effective access to health
and human services information;
(2)
improve access to accurate information by simplifying and
enhancing state and local health and human services information
and referral systems and by fostering collaboration among
information and referral systems;
(3)
electronically connect local information and referral
systems to each other, to service providers, and to consumers of
information and referral services;
(4)
establish and promote standards for data collection and
for distributing information among state and local
organizations;
(5)
promote the use of a common dialing access code and the
visibility and public awareness of the availability of
information and referral services;
(6)
provide a management and administrative structure to
support the South Carolina 211 Network and establish technical
assistance, training, and support programs for information and
referral-service programs;
(7)
test methods for integrating information and referral
services with local and state health and human services programs
and for consolidating and streamlining eligibility and
case-management processes;
(8)
provide access to standardized, comprehensive data to
assist in identifying gaps and needs in health and human
services programs; and
(9)
provide a unified systems plan with a developed platform,
taxonomy, and standards for data management and access.
(B) In order to
participate in the South Carolina 211 Network, a 211 provider
must be certified by the board division.
The board division must develop
criteria for certification and must adopt the criteria as
regulations.
(1)
If any provider of information and referral services or
other entity leases a 211 number from a local exchange company
and is not certified by the agency, the agency shall, after
consultation with the local exchange company and the Public
Service Commission, request that the Federal Communications
Commission direct the local exchange company to revoke the use
of the 211 number.
(2)
The agency shall seek the assistance and guidance of the
Public Service Commission and the Federal Communications
Commission in resolving any disputes arising over jurisdiction
related to 211 numbers.
Section 1-11-780. The State Employee Insurance Program shall continue to provide mental health parity in the same manner and with the same management practices as included in the plan beginning in 2002, and is not under the jurisdiction of the Department of Insurance. The continuation by the State Employee Insurance Program of providing mental health parity in accordance with the plan set forth in 2002 constitutes compliance with this act."
SECTION 32. A.1. Section 8-23-20 of the 1976 Code, as last amended by Act 305 of 2008; and Section 8-23-110 of the 1976 Code, as added by Act 387 of 2000, are amended to read:
"Section 8-23-20.
A Deferred Compensation Commission is established
consisting of eight members including the director of the South
Carolina Retirement System, chief investment officer of the
State Retirement System Investment Commission, and the executive
director of the State Employees' Association, each of whom serve
ex officio, and five other public employees to be appointed by
the State Budget and Control Board Contracts
and Accountability Authority, at least two of whom must be
state employees and one must be a retired public employee. The
appointed members shall serve for terms of three years and until
their successors are appointed and qualify. The State
Budget and Control Board Contracts and
Accountability Authority shall designate the chairman.
The commission shall establish such rules
and regulations as it deems necessary to implement and
administer the Deferred Compensation Program. The commission
shall make such administrative appointments and contracts as are
necessary to carry out the purpose and intent of this chapter
and in the administration of account assets. For purposes of
administering this program, an individual account shall
be maintained in the name of each employee.
The commission shall select, through
competitive bidding and contracts, plans for purchase of fixed
and variable annuities, savings, mutual funds, insurance and
such other investments as the commission may approve which are
not in conflict with the State Constitution and with the advice
and approval of the State Treasurer.
Costs of administration may be paid from
the interest earnings of the funds accrued as a result of
deposits or as an assessment against each account.
Section 8-23-110. (A)
The commission shall ensure that plan
documents governing deferred compensation plans administered by
the commission permit employer contributions to the extent
allowed under the Internal Revenue Code.
(B) Political
subdivisions of the State, including school districts,
participating in deferred compensation plans administered by the
commission or such plans offered by other providers may make
matching or other contributions on behalf of their participating
employees.
(C) As an additional
benefit for state employees, and to the extent funds are
appropriated for this purpose, the State shall make matching or
other contributions on behalf of state employees participating
in the deferred compensation plans offered by the commission or
such plans offered by other providers in an amount and under the
terms and conditions prescribed for such contributions by the
State Budget and Control Board Contracts and
Accountability Authority."
2. Section 9-1-10 of the 1976 Code, as last amended by Act 353 of 2008, and Section 9-1-20 of the 1976 Code is further amended to read:
"Section 9-1-10.
As used in this chapter, unless a different meaning is
plainly required by the context:
(1) 'Accumulated
contribution' means the sum of all the amounts deducted from the
compensation of a member and credited to the members individual
account in the employee annuity savings fund, together with
regular interest on the account, as provided in Article 9 of
this chapter.
(2) 'Active member'
means an employee who is compensated by an employer
participating in the system and who is making regular retirement
contributions to the system.
(3) 'Actuarial
equivalent' means a benefit of equal value when computed upon
the basis of mortality tables adopted by the
board authority and regular interest.
(4) 'Average final
compensation' with respect to those members retiring on or after
July 1, 1986, means the average annual earnable compensation of
a member during the twelve consecutive quarters of his
creditable service on which regular contributions as a member
were made to the system producing the highest such average; a
quarter means a period January through March, April through
June, July through September, or October through December. An
amount up to and including forty-five days' termination pay for
unused annual leave at retirement may be added to the average
final compensation. Average final compensation for an elected
official may be calculated as the average annual earnable
compensation for the thirty-six consecutive months before the
expiration of the elected official's term of office.
(5) 'Beneficiary' means
a person in receipt of a pension, an annuity, a retirement
allowance or other benefit provided under the system.
(6)
'Board' 'Department' means the
State Budget and Control Board Department of
Administration which shall act under the provisions of this
chapter through its Division of Retirement
Systems Division (division).
(6A)
'Authority' means the State Contracts and
Accountability Authority.
(7) 'Creditable
service' means a member's earned service, prior service, and
purchased service.
(8) 'Earnable
compensation' means the full rate of the compensation that would
be payable to a member if the member worked the member's full
normal working time; when compensation includes maintenance,
fees, and other things of value the board
division shall fix the value of that part of the
compensation not paid in money directly by the employer.
(9) 'Earned service'
means:
(a)
paid employment as a teacher or employee of an employer
participating in the system where the teacher or employee makes
regular retirement contributions to the system; or
(b)
service rendered while participating in the State Optional
Retirement Program, the Optional Retirement Program for Teachers
and School Administrators, or the Optional Retirement Program
for Publicly Supported Four Year and Postgraduate Institutions
of Higher Education that has been purchased pursuant to Section
9-1-1140(F); or
(c)
service earned as a participant in the system, the South
Carolina Police Officers Retirement System, the Retirement
System for Members of the General Assembly, or the Retirement
System for Judges and Solicitors that is transferred to or
purchased in the system.
(10) 'Educational
service' means paid service as a classroom teacher in a public,
private, or sectarian school providing elementary or secondary
education, kindergarten through grade twelve.
(11) 'Employee' means:
(a)
to the extent compensated by this State, an employee,
agent, or officer of the State or any of its departments,
bureaus, and institutions, other than the public schools,
whether the employee is elected, appointed, or employed;
(b)
the president, dean, professor, or teacher or any other
person employed in any college, university, or educational
institution of higher learning supported by and under the
control of the State;
(c)
an employee, agent, or officer of a county, municipality,
or school district, or an agency or department of any of these,
which has been admitted to the system under the provisions of
Section 9-1-470, to the extent the employee, agent, or officer
is compensated for services from public funds;
(d)
an employee of the extension service and any other
employee a part of whose salary or wage is paid by the federal
government if the federal funds from which the salary or wage is
paid before disbursement become state funds;
(e)
an employee of a service organization, the membership of
which is composed solely of persons eligible to be teachers or
employees as defined by this section, if the compensation
received by the employees of the service organization is
provided from monies paid by the members as dues or otherwise,
or from funds derived from public sources and if the employee
contributions prescribed by this title are paid from the funds
of the service organization;
(f)
an employee of an alcohol and drug abuse planning agency
authorized to receive funds pursuant to Section 61-12-20;
(g)
an employee of a local council on aging or other
governmental agency providing aging services funded by the
Office on Aging, Office of the Lieutenant Governor.
'Employee' does not include supreme and
circuit court judges, any person whose services are remunerated
solely by per diem payments, or any person employed by a school,
college, or university at which the person is enrolled as a
student or otherwise regularly attending classes for academic
credit unless the person is employed as a school bus driver and
is paid by the same school district in which the person is
enrolled in school. In determining student status, the system
may consider the guidelines of the Social Security
Administration regarding student services and other criteria the
system uniformly prescribes.
(12) 'Employee annuity'
means annual payments for life derived from the accumulated
contributions of a member.
(13) 'Employee annuity
reserve' means the present value of all payments to be made on
account of an employee annuity or benefit in lieu of the
employee annuity, computed on the basis of mortality tables
adopted by the board authority and
regular interest.
(14) 'Employer' means
this State, a county board of education, a district board of
trustees, the board of trustees or other managing board of a
state-supported college or educational institution, or any other
agency of this State by which a teacher or employee is paid;
the term 'employer' also includes a county, municipality, or
other political subdivision of the State, or an agency or
department of any of these, which has been admitted to the
system under the provisions of Section 9-1-470, a service
organization referred to in item (11)(e) of this section, an
alcohol and drug abuse planning agency authorized to receive
funds pursuant to Section 61-12-20, and a local council on aging
or other governmental agency providing aging services funded by
the Office on Aging, Office of the Lieutenant Governor.
(15) 'Employer annuity'
means annual payments for life derived from money provided by
the employer.
(16) 'Employer annuity
reserve' means the present value of all payments to be made on
account of an employer annuity or benefit in lieu of the
employee annuity, computed on the basis of mortality tables
adopted by the board authority and
regular interest.
(17) [Reserved]
(18) 'Member' means a
teacher or employee included in the membership of the system as
provided in Article 5 of this chapter.
(19) 'Military service'
means:
(a)
service in the United States Army, United States Navy,
United States Marine Corps, United States Air Force, or United
States Coast Guard;
(b)
service in the select reserve of the Army Reserve, Naval
Reserve, Marine Corps Reserve, Air Force Reserve, or the Coast
Guard Reserve, and
(c)
service as a member of the Army National Guard or Air
National Guard of this or any other state.
(20) 'Nonqualified
service' means purchased service other than public service,
educational service, military service, leave of absence, and
reestablishment of withdrawals.
(21) 'Prior service'
means service rendered as a teacher or employee before July 1,
1945, for which credit is allowable under Article 7 of this
chapter.
(22) 'Public school'
means a school conducted within this State under the authority
and supervision of a duly elected or appointed school district
board of trustees.
(23) 'Public service'
means service as an employee of the government of the United
States, a state or political subdivision of the United States,
or an agency or instrumentality of any of these. 'Public
service' does not include 'educational service' or 'military
service' as defined in this section. 'Public service' does
include paid service rendered as an employee of a postsecondary
public technical college or public junior college, or a public
four-year or postgraduate institution of higher education, while
the member was a student at that institution.
(24) 'Purchased
service' means service credit purchased by an active member
while an employee of an employer participating in the system.
(25) 'Regular interest'
means interest compounded annually at a rate determined by the
board authority in accordance with
Section 9-1-280.
(26) 'Retirement' means
the withdrawal from active service with a retirement allowance
granted under the system.
(27) 'Retirement
allowance' means the sum of the employer annuity and the
employee annuity or any optional benefit payable in lieu of the
annuity.
(28) 'Retirement
system' or 'system' means the South Carolina Retirement System
established under Section 9-1-20.
(29) 'State' or 'this
State' means the State of South Carolina;
(30) 'Teacher' means a
classroom teacher employed in the public schools supported by
this State as determined by the board
division.
Section 9-1-20.
(A) A retirement system
is hereby established and placed under the management of the
State Budget and Control Board Retirement
Systems Division of the Department of Administration; except as
otherwise provided by law in regard to State Contracts and
Accountability Authority, for the purpose of providing
retirement allowances and other benefits for teachers and
employees of the State and political subdivisions or agencies or
departments thereof. The system so created shall have the power
and privileges of a corporation and shall be known as the 'South
Carolina Retirement System', and by such name all of its
business shall be transacted, all of its funds invested and all
of its cash, securities, and other property held.
(B) To the
extent provisions of law impose a duty in regard to the
administration of the State Retirement System upon the State
Contracts and Accountability Authority that do not specifically
involve policy or other decisions reserved to the Authority
under Section 11-55-20 or by law, the Authority may delegate
these administrative duties to the Department of Administrative,
Retirement Systems Division."
3. Section 9-1-230 of the 1976 Code is amended to read:
"Section 9-1-230.
The board authority shall engage
such actuarial and other services as shall be required to
transact the business of the system."
4. Section 9-1-240 of the 1976 Code is amended to read:
"Section 9-1-240.
The board authority shall
designate an actuary who shall be the technical adviser of the
board authority on matters regarding the
operation of the system and shall perform such other duties as
are required in connection therewith."
5. Section 9-1-250 of the 1976 Code is amended to read:
"Section 9-1-250.
At least once in each five-year period, the first of which
began in 1947, the actuary shall make an actuarial investigation
into the mortality, service and compensation experience of the
members and beneficiaries of the system and shall make a
valuation of the contingent assets and liabilities of the system
and the Board authority, after taking
into account the results of such investigations and valuations,
shall adopt for the system such mortality, service and other
tables as shall be deemed necessary."
6. Section 9-1-260 of the 1976 Code is amended to read:
"Section 9-1-260.
On the basis of regular interest and tables last adopted
by the board authority the actuary shall
make an annual valuation of the contingent assets and
liabilities of the system."
7. Section 9-1-270 of the 1976 Code is amended to read:
"Section 9-1-270.
The board authority shall keep in
convenient form such data as shall be necessary for actuarial
valuation of the contingent assets and liabilities of the system
for checking the experience of the system."
8. Section 9-1-280 of the 1976 Code is amended to read:
"Section 9-1-280.
The board authority shall
determine from time to time the rate of regular interest for use
in all calculations, with the rate of four per
cent percent per annum applicable unless
heretofore or hereafter changed by the board
authority."
9. Section 9-1-300 of the 1976 Code is amended to read:
"Section 9-1-300.
The board authority shall keep a
record of all its proceedings under this chapter, which shall be
open to public inspection. It shall publish annually a report
showing the fiscal transactions of the system for the preceding
year, the amount of the accumulated cash and securities of the
system and the last balance sheet showing the financial
condition of the system by means of an
actuarial valuation of the contingent assets and liabilities of
the system."
10. Section 9-1-310 of the 1976 Code, as last amended by Act 155 of 2005, is further amended to read:
"Section 9-1-310.
The administrative cost of the South Carolina Retirement
System, the South Carolina Police Officers Retirement System,
the Retirement System for Members of the General Assembly of the
State of South Carolina, the Retirement System for Judges and
Solicitors of the State of South Carolina, and the National
Guard Retirement System must be funded from the interest
earnings of the above systems. The allocation of the
administrative costs of the systems must be made by the
State Budget and Control Board department
and authority jointly and must be based upon a proration of
the cost in proportion to the assets that each system bears to
the total assets of all of the systems for the most recently
completed fiscal year and further prorated to reflect the
authority's and department's time on task with respect to their
Title 9 functions."
11. Section 9-1-1020 of the 1976 Code, as last amended by Act 311 of 2008, is further amended to read:
"Section 9-1-1020.
The employee annuity savings fund shall be the account in
which shall be recorded the contributions deducted from the
earnable compensation of members to provide for their employee
annuities. Each employer shall cause to be deducted from the
compensation of each member on each and every payroll of such
employer for each and every payroll period four percent of his
earnable compensation. With respect to each member who is
eligible for coverage under the Social Security Act in
accordance with the agreement entered into during 1955 in
accordance with the provisions of Chapter 7 of this Title;
however, such deduction shall, commencing with the first day of
the period of service with respect to which such agreement is
effective, be at the rate of three percent of the part of his
earnable compensation not in excess of four thousand eight
hundred dollars, plus five percent of the part of his earnable
compensation in excess of four thousand eight hundred dollars.
In the case of any member so eligible and receiving compensation
from two or more employers, such deductions may be adjusted
under such rules as the Board department
may establish so as to be as nearly equivalent as practicable to
the deductions which would have been made had the member
received all of such compensation from one employer. In
determining the amount earnable by a member in a payroll period,
the Board department may consider the
rate of annual earnable compensation of such member on the first
day of the payroll period as continuing throughout such payroll
period and it may omit deduction from earnable compensation for
any period less than a full payroll period if a teacher or
employee was not a member on the first day of the payroll
period.
Each employer shall certify to the
Board department on each and every
payroll or in such other manner as the Board
department may prescribe the amounts to be deducted and
such amounts shall be deducted and, when deducted, shall be
credited to said employee annuity savings fund, to the
individual accounts of the members from whose compensation the
deductions were made.
The rates of the deductions, without regard
to a member's coverage under the Social Security Act, must be
the percentage of earnable compensation as provided in
the following schedule:
Class
One
Class Two
Before July 1,
2005
5
6
July 1, 2005 through June
30, 2006
5.25
6.25
After June 30,
2006
5.50
6.50' in effect June 30, 2013, and as
those percentages may be adjusted as provided in Section
11-55-20(C)(2).
Each department
agency and political subdivision shall pick up the
employee contributions required by this section for all
compensation paid on or after July 1, 1982, and the
contributions so picked up shall be treated as employer
contributions in determining federal tax treatment under the
United States Internal Revenue Code. For this purpose, each
department agency and political
subdivision is deemed to have taken formal action on or before
January 1, 2009, to provide that the contributions on behalf of
its employees, although designated as employer contributions,
shall be paid by the employer in lieu of employee contributions.
The department agency and political
subdivision shall pay these employee contributions from the same
source of funds which is used in paying earnings to the
employee. The department agency and
political subdivision may pick up these contributions by a
reduction in the cash salary of the employee.
The employee, however, must not be given
the option of choosing to receive the contributed amount of the
pick ups directly instead of having them paid by the employer to
the retirement system. Employee contributions picked up shall
be treated for all purposes of this section in the same manner
and to the extent as employee contributions made prior to the
date picked up.
Payments for unused sick leave, single
special payments at retirement, bonus and incentive-type
payments, or any other payments not considered a part of the
regular salary base are not compensation for which contributions
are deductible. Contributions are deductible on up to and
including forty-five days' termination pay for unused annual
leave. If a member has received termination pay for unused
annual leave on more than one occasion, contributions are
deductible on up to and including forty-five days' termination
pay for unused annual leave for each termination payment for
unused annual leave received by the member. However, only an
amount up to and including forty-five days' pay for unused
annual leave from the member's last termination payment shall be
included in a member's average final compensation
calculation."
12. Section 9-1-1050 of the 1976 Code is amended to read:
"Section 9-1-1050.
The employer annuity accumulation
fund shall be the account:
(1)
In which shall be recorded the reserves on all employee
annuities in force and against which shall be charged all
employee annuities and all benefits in lieu of employee
annuities;
(2)
In which must be recorded all reserves for the payment of
all employer annuities and other benefits payable from
contributions made by employers and against which is charged all
employer annuities and other benefits on account of members with
prior service credit; and
(3)
In which shall be recorded the reserves on all employer
annuities granted to members not entitled to prior service
credit and against which such employer annuities and benefits in
lieu thereof shall be charged.
There shall be paid to the system and
credited to the employer annuity accumulation fund contributions
by the employers in an amount equal to a certain percentage of
the earnable compensation of each member employed by each
employer to be known as the 'normal contribution' and an
additional amount equal to a percentage of such earnable
compensation to be known as the 'accrued liability
contribution'. The rate percent of such contributions
shall be fixed must be not less than those
set as provided in Section 11-55-20(C)(2) on the basis of
the liabilities of the system as shown by actuarial
valuation."
13. Section 9-1-1060 of the 1976 Code is amended to read:
"Section 9-1-1060.
On the basis of regular interest and of such mortality and
other tables as shall be adopted by the board
authority, the actuary engaged by the
board authority to make each annual
valuation during the period over which the accrued liability
contribution is payable, immediately after making such
valuation, shall determine the uniform and constant percentage
of the earnable compensation of the average new entrant
throughout his entire period of active service which would be
sufficient to provide for the payment of any employer annuity
payable on his account. The rate per cent
percent so determined shall be known as the 'normal
contribution rate'. After the accrued liability contribution
has ceased to be payable, the normal contribution rate shall be
the rate per cent percent of the
earnable compensation of all members obtained by deducting from
the total liabilities of the employer annuity accumulation fund
the amount of the funds in hand to the credit of that account
and dividing the remainder by one per cent
percent of the present value of the prospective future
earnable compensation of all members as computed on the basis of
the mortality and service tables adopted by the
board authority and regular interest.
The normal rate of contribution shall be determined by the
actuary after each valuation."
14. Section 9-1-1070 of the 1976 Code is amended to read:
"Section 9-1-1070.
The rate per cent percent
determined immediately after the first valuation by the actuary
engaged by the board authority as the
rate per cent percent of the total
annual earnable compensation of all members which is equivalent
to four per cent percent of the amount
of the total employer annuity liability on account of all
members and beneficiaries which is not dischargeable by the
aforesaid normal contribution made on account of such members
during the remainder of their active service shall be known as
the 'accrued liability contribution rate'. Such rate shall be
increased on the basis of subsequent valuations if benefits are
increased over those included in the valuation on the basis of
which the original accrued liability contribution rate was
determined. Upon certification by the actuary engaged by the
board authority that the accrued
liability contribution rate may be reduced without impairing the
system, the board authority may cause
the accrued liability contribution rate to be reduced."
15. Section 9-1-1090 of the 1976 Code is amended to read:
"Section 9-1-1090.
The accrued liability contribution shall be discontinued
as soon as the accumulated reserve in the employer annuity
accumulation fund shall equal the present value, as actuarially
computed and approved by the board
authority, of the total liability of such fund less the
present value, computed on the basis of the normal contribution
rate then in force, of the prospective normal contributions to
be received on account of all persons who are at the time
members."
16. Section 9-1-1140 of the 1976 Code, as last amended by Act 311 of 2008, is further amended to read:
"Section 9-1-1140.
(A) An active member may establish
service credit for any period of paid public service by making a
payment to the system to be determined by the
board authority, but not less than
sixteen percent of the member's current salary or career highest
fiscal year salary, whichever is greater, for each year of
credit purchased. A member's career highest fiscal year salary
shall include the member's salary while participating in the
State Optional Retirement Program, the Optional Retirement
Program for Teachers and School Administrators, or the Optional
Retirement Program for Publicly Supported Four-Year and
Postgraduate Institutions of Higher Education if the member has
purchased service rendered under any of these programs pursuant
to subsection (F) of this section. Periods of less than a year
must be prorated. A member may not establish credit for a
period of public service for which the member also may receive a
retirement benefit from another defined benefit retirement plan.
A member may not establish service credit for public service to
the extent such service purchase would violate Section 415 or
any other provision of the Internal Revenue Code.
(B) An active member
may establish service credit for any period of paid educational
service by making a payment to the system determined by the
board authority, but not less than
sixteen percent of the member's current salary or career highest
fiscal year salary, whichever is greater, for each year of
credit purchased. A member's career highest fiscal year salary
shall include the member's salary while participating in the
State Optional Retirement Program, the Optional Retirement
Program for Teachers and School Administrators, or the Optional
Retirement Program for Publicly Supported Four-Year and
Postgraduate Institutions of Higher Education if the member has
purchased service rendered under any of these programs pursuant
to subsection (F) of this section. Periods of less than a year
must be prorated. A member may not establish credit for a
period of educational service for which the member also may
receive a retirement benefit from another defined benefit
retirement plan. A member may not establish service credit for
educational service to the extent such service purchase would
violate Section 415 or any other provision of the Internal
Revenue Code.
(C) An active member
may establish up to six years of service credit for any period
of military service, if the member was discharged or separated
from military service under conditions other than dishonorable,
by making a payment to the system to be determined by the
board authority, but not less than
sixteen percent of the member's current salary or career highest
fiscal year salary, whichever is greater, for each year of
credit purchased. A member's career highest fiscal year salary
shall include the member's salary while participating in the
State Optional Retirement Program, the Optional Retirement
Program for Teachers and School Administrators, or the Optional
Retirement Program for Publicly Supported Four-Year and
Postgraduate Institutions of Higher Education if the member has
purchased service rendered under any of these programs pursuant
to subsection (F) of this section. Periods of less than a year
must be prorated.
(D) An active member on
an approved leave of absence from an employer that participates
in the system who returns to covered employment within four
years may purchase service credit for the period of the approved
leave, but may not purchase more than two years of service
credit for each separate leave period, by making a payment to
the system to be determined by the board
authority, but not less than sixteen percent of the
member's current salary or career highest fiscal year salary,
whichever is greater, for each year of credit purchased. A
member's career highest fiscal year salary shall include the
member's salary while participating in the State Optional
Retirement Program, the Optional Retirement Program for Teachers
and School Administrators, or the Optional Retirement Program
for Publicly Supported Four-Year and Postgraduate Institutions
of Higher Education if the member has purchased service rendered
under any of these programs pursuant to subsection (F) of this
section. Periods of less than a year must be prorated.
(E) An active member
who has five or more years of earned service credit may
establish up to five years of nonqualified service by making a
payment to the system to be determined by the
board authority, but not less than
thirty-five percent of the member's current salary or career
highest fiscal year salary, whichever is greater, for each year
of credit purchased. A member's career highest fiscal year
salary shall include the member's salary while participating in
the State Optional Retirement Program, the Optional Retirement
Program for Teachers and School Administrators, or the Optional
Retirement Program for Publicly Supported Four-Year and
Postgraduate Institutions of Higher Education if the member has
purchased service rendered under any of these programs pursuant
to subsection (F) of this section. Periods of less than a year
must be prorated.
(F) An active member
may establish service credit for any period of service in which
the member participated in the State Optional Retirement
Program, the Optional Retirement Program for Teachers and School
Administrators, or the Optional Retirement Program for Publicly
Supported Four-Year and Postgraduate Institutions of Higher
Education, by making a payment to the system to be determined by
the board authority, but not less than
sixteen percent of the member's current salary or career highest
fiscal year salary, whichever is greater, for each year of
credit purchased. A member's career highest fiscal year salary
shall include the member's salary while participating in the
system or in the State Optional Retirement Program, the Optional
Retirement Program for Teachers and School Administrators, or
the Optional Retirement Program for Publicly Supported Four-Year
and Postgraduate Institutions of Higher Education. Periods of
less than a year must be prorated. A member may not establish
credit for a period of service for which the member also may
receive a retirement benefit from another defined benefit
retirement plan. A member may not establish service credit
under this subsection to the extent such service purchase would
violate Section 415 or any other provision of the Internal
Revenue Code. Service purchased under this subsection is
'earned service' and counts toward the required five or more
years of earned service necessary for benefit eligibility.
Compensation earned for periods purchased under this subsection
while participating in the State Optional Retirement Program,
the Optional Retirement Program for Teachers and School
Administrators, or the Optional Retirement Program for Publicly
Supported Four-Year and Postgraduate Institutions of Higher
Education shall be treated as earnable compensation and shall be
used in calculating a member's average final compensation. A
member purchasing service under this subsection who has funds
invested in a TIAA Traditional account under a TIAA-CREF
Retirement Annuity contract shall be eligible to make a plan to
plan transfer in accordance with the terms of that contract.
(G) An active member
who previously withdrew contributions from the system may
reestablish the service credited to the member at the time of
the withdrawal of contributions by repaying the amount of the
contributions previously withdrawn, plus regular interest from
the date of the withdrawal to the date of repayment to the
system.
(H) An active member
establishing retirement credit pursuant to this chapter may
establish that credit by means of payroll deducted installment
payments. Interest must be paid on the unpaid balance of the
amount due at the rate of the prime rate plus two percent a
year.
(I) An employer, at its
discretion, may pay to the system all or a portion of the cost
for an employee's purchase of service credit under this chapter.
Any amounts paid by the employer under this subsection for all
purposes must be treated as employer contributions.
(J) Service credit
purchased under this section is not 'earned service' and does
not count toward the required five or more years of earned
service necessary for benefit eligibility except:
(1)
earned service previously withdrawn and reestablished;
(2)
service rendered while participating in the State Optional
Retirement Program, the Optional Retirement Program for Teachers
and School Administrators, or the Optional Retirement Program
for Publicly Supported Four-Year and Postgraduate Institutions
of Higher Education that has been purchased pursuant to
subsection (F); or
(3)
service earned as a participant in the system, the South
Carolina Police Officers Retirement System, the Retirement
System for Members of the General Assembly, or the Retirement
System for Judges and Solicitors that is transferred to or
purchased in the system.
(K) A member may
purchase each type of service under this section once each
fiscal year.
(L) The
board authority or division, as
appropriate, shall promulgate regulations and prescribe
rules and policies, as necessary, to implement the service
purchase provisions of this chapter.
(M) At retirement,
after March 31, 1991, a member shall receive credit for not more
than ninety days of his unused sick leave from the member's last
employer at no cost to the member. The leave must be credited
at a rate where twenty days of unused sick leave equals one
month of service. This additional service credit may not be
used to qualify for retirement.
(N) An employee drawing
workers' compensation who is on a leave of absence for a limited
period may voluntarily contribute on his contractual salary, to
be matched by the employer."
17. Section 9-1-1175 of the 1976 Code, as last amended by Act 153 of 2005, is further amended to read:
"Section 9-1-1175.
Effective July 1, 2006, the board shall increase
the employer contribution rate for the system by one-half
percent of the earnable compensation of all members employed by
an employer participating in the system. The board shall
further increase the employer contribution rate by one-half
percent effective July 1, 2007. The employer rate
provided in this section also pursuant to
Section 11-55-20(C)(2) applies to payments for unused annual
leave under the circumstances provided in Section 9-1-1020. The
employer rate provided in this section
pursuant to Section 11-55-20(C)(2) includes the system's
normal contribution rate and accrued liability contribution
rate, but does not include contributions for group life
insurance or other benefits that are remitted to the retirement
systems. Contributions for group life insurance or other
benefits are in addition to the applicable employer contribution
rate. After June 30, 2007, the board , in its
discretion, may increase or decrease the employer contribution
rate set by this section based on the actuarial valuation
provided to the board by the system's actuaries and considering
the normal contribution rate determined pursuant to Section
9-1-1060 and the accrued liability contribution rate determined
pursuant to Section 9-1-1070."
18. Section 9-1-1310(A) of the 1976 Code, as last amended by Act 153 of 2005, is further amended to read:
"(A) The
board authority is the trustee of the
retirement system as 'retirement system' is defined in Section
9-16-10(8). The Retirement System Investment Commission shall
invest and reinvest the funds of the retirement system as
'retirement system' is defined in Section 9-16-10(8), subject to
all the terms, conditions, limitations, and restrictions imposed
by Section 16, Article X of the South Carolina Constitution,
subsection (B) of this section, and Chapter 16 of this
title."
19. Section 9-1-1320 of the 1976 Code is amended to read:
"Section 9-1-1320.
The State Treasurer shall be the custodian of the funds of
the system. All payments from such funds shall be made by him
only upon vouchers signed by two persons designated by the
board authority."
20. Section 9-1-1340 of the 1976 Code, as last amended by Act 264 of 2006, is further amended to read:
"Section 9-1-1340.
Except as otherwise provided in this chapter or in
Chapters 8, 9, 10, and 11 of this title, no member of or person
employed by the Retirement System Investment Commission shall
have any direct interest in the gains or profits of any
investment made by the commission. No commission member or
employee of the commission shall, directly or
indirectly, for himself or as an agent in any manner
shall use the funds of the commission except to make such
current and necessary payments as are authorized by the
board division, authority, or commission
as appropriate. Nor shall any member or employee of the
commission become an endorser or surety or in any manner an
obligor for monies loaned or borrowed from the commission."
21. Section 9-1-1515(D)(2) of the 1976 Code is amended to read:
"(2)
A member taking early retirement may maintain
coverage under the State Insurance Benefits Plan until the date
his coverage is reinstated pursuant to item (1) of this
subsection by paying the total premium cost, including the
employer's contribution, in the manner provided by the Division
of Insurance Services of the State Budget and Control
Board."
22. Section 9-1-1750 of the 1976 Code is amended to read:
"Section 9-1-1750.
Effective July 1, 1968, the monthly benefits, inclusive of
the supplemental allowances payable under the provisions of
Sections 9-1-1910, 9-1-1920 and 9-1-1930, for persons who
commenced receiving benefits from the system prior to July 1,
1967 and subsequent to June 30, 1966 shall be increased by five
percent, and such monthly benefits to persons who commence
receiving benefits in each fiscal year thereafter through the
fiscal year ending June 30, 1970, shall be increased by five
percent provided that there is sufficient investment income in
excess of the valuation interest assumption to fund such
increases or a proportionate part thereof on a lifetime basis,
as determined by the actuary.
The minimum increase pursuant to this
section, inclusive of the increase in the supplemental
allowances, shall be five dollars per month. However, if an
optional benefit has been elected, the minimum shall be reduced
actuarially as determined by the board
authority, and shall be applicable to the retired member
or his designated beneficiary under the option elected."
23. Section 9-1-1775 of the 1976 Code, as last amended by Act 176 of 2010, is further amended to read:
"Section 9-1-1775.
(A) The Death Benefit Plan for members
of the South Carolina Retirement System, hereinafter referred to
as the 'plan, is established for the purpose of providing for
the payment of the benefits provided by Section 9-1-1770.
(B) A separate fund, to
be known as the Death Benefit Plan Reserve Fund, is established
within the South Carolina Retirement System, hereinafter
referred to as the 'retirement system', to be held in trust by
the board authority. The fund shall
consist of all contributions paid by the employers and other
monies received and paid into the fund for death benefit
purposes, and of the investment earnings on these monies, and
must be used only to pay the death benefits prescribed by
subsection (C). Concurrent with the determination of the initial
liability of the plan for the balance of the fiscal year on and
after the effective date of the benefit, for the death benefit
provided and to be paid for pursuant to this plan, there must be
segregated and transferred from the Employer Annuity
Accumulation Fund of the retirement system to the reserve fund
created by this section the amounts determined by the actuary to
be necessary to pay anticipated death benefit claims.
Subsequent segregations and transfers must be made as required
to pay the death benefit prescribed by subsection (C) from the
reserve fund provided by this section.
(C) At the death of a
member who has met the eligibility requirements set forth in
Section 9-1-1770, a benefit equal to the death benefit provided
by Section 9-1-1770 must be paid to the person nominated by the
member in accordance with the provisions of Section 9-1-1770 or
to the member's estate.
(D) The actuary shall
investigate the claim experience of the plan as provided by
Section 9-1-250. On the basis of these investigations and upon
the recommendation of the actuary, as provided in Section
9-1-1210, the board authority shall
certify the contribution rates necessary to fund the death
benefit authorized to be paid by the plan. As soon as
practicable after the close of each fiscal year, the
board authority shall determine the
contribution which the employers participating in the plan are
required to pay into the reserve fund to discharge the
obligations of the plan for the past fiscal year.
(E) Each qualified
member of the retirement system is to be covered as provided in
this section effective commencing as of June 19, 1973."
24. Section 9-1-1810 of the 1976 Code, as last amended by Act 311 of 2008, is further amended to read:
"Section 9-1-1810.
(A) As of the end
of each calendar year, the increase in the ratio of the Consumer
Price Index to the index as of the prior December thirty-first
must be determined.
(B)(1) If the Consumer
Price Index as determined pursuant to subsection (A) of this
section increases by no more than one percent, the retirement
allowance, inclusive of the supplemental allowances payable
under the provisions of Sections 9-1-1910, 9-1-1920, and
9-1-1930, of each beneficiary in receipt of an allowance must be
increased by a percentage equal to the increase in the index.
(2)
If the Consumer Price Index as determined pursuant to
subsection (A) of this section increases by more than one
percent, then: (a)
the retirement allowance of each beneficiary in
receipt of an allowance, inclusive of the supplement allowances
payable under the provisions of Section 9-1-1910, 9-1-1920, and
9-1-1930, must be increased by one percent; and
(b) the retirement
allowance may be further increased beyond one percent up to the
lesser of the total percentage increase in the Consumer Price
Index or four percent, to the extent that the additional
liabilities because of the increase in allowances would not
extend the amortization period to liquidate the unfunded
actuarial accrued liability of the South Carolina Retirement
System beyond thirty years. In considering this additional
increase, the board authority shall
consider unrealized investment gains and losses.
(C) The increase in
retirement allowances commences the July first immediately
following the December thirty-first that the increase in ratio
was determined, and all increases in retirement allowances must
be granted to these beneficiaries in receipt of a retirement
allowance on July first immediately preceding the effective date
of the increase. Any increase in allowance granted pursuant to
this section must be included in the determination of any
subsequent increases, irrespective of any subsequent decrease in
the Consumer Price Index.
(D) The allowance of a
surviving annuitant of a beneficiary whose allowance is
increased under this section must, when and if
payable, must be increased by the same percent.
(E) For purposes of
this section, 'Consumer Price Index' means the Consumer Price
Index for Wage Earners and Clerical Workers, as published by the
United States Department of Labor, Bureau of Labor
Statist."
25. Section 9-1-1830 of the 9176 Code is amended to read:
"Section 9-1-1830.
Starting July 1, 1981, there must be paid to the system,
and credited to the post-retirement increase special fund,
contributions by the employers in an amount equal to two-tenths
of one percent of the earnable compensation of each member
employed by each employer. In addition, the State
Budget and Control Board shall Contracts and
Accountability Authority, on the recommendation of the
actuary, shall transfer a portion of the monies as are
received pursuant to Section 9-1-1050 that are available due to
actuarial gains in the system if the transfers do not adversely
affect the funding status of the system. Starting July 1, 1986,
all contributions previously credited to the post-retirement
increase special fund must be diverted and credited to the
employer annuity accumulation fund."
B. Chapter 2, Title 9 of the 1976 Code, as last amended by Act 170 of 1991, is further amended to read:
Section 9-2-10. There
is hereby created the South Carolina Retirement
and Pre-Retirement Advisory Board Panel
for the purpose of advising the director of the South Carolina
Retirement System and the director of the State Personnel
Division on matters relating to retirement and pre-retirement
programs and policies.
Section 9-2-20. (a)
The board panel
shall consist of eight members appointed by the State
Budget and Control Board Contracts and
Accountability Authority and must be constituted as follows:
(1)
one member representing municipal employees;
(2)
one member representing county employees;
(3)
three members representing state employees, one of whom
must be retired and one of whom must be an active or retired law
enforcement officer who is contributing to or receiving benefits
from the Police Officers Retirement System. If this law
enforcement member is retired, the other two members
representing state employees do not have to be retired;
(4)
two members representing public school teachers, one of
whom must be retired;
(5)
one member representing the higher education teachers.
The Budget and Control Board authority
shall invite the appropriate associations, groups, and
individuals to recommend persons to serve on the
board panel.
(b) The terms of the
members shall be for four years and until their successors have
been appointed and qualify. No member shall serve more than two
consecutive terms. After serving two consecutive terms a member
shall be eligible to serve again, four years after the
expiration of his second term. Provided that of those first
appointed, four of the members shall serve for a term of two
years. In the event of a vacancy, a successor shall be
appointed in the same manner as the original appointment to
serve the unexpired term.
(c) A chairman, vice
chairman, and secretary shall be elected from among the
membership to serve for terms of two years.
Section 9-2-30. The
board panel shall meet once a year with
the Director of the South Carolina Retirement System; once a
year with the State Personnel Director; and once a year with the
State Budget and Control Board
authority. The chairman may call additional meetings of
the board panel at such other times as
deemed considered necessary and shall
give timely notice of such meetings.
Section 9-2-40. The
board panel shall review retirement and
pre-retirement programs and policies, propose recommendations,
and identify major issues for consideration.
Section 9-2-50. The
board panel is authorized to seek
reasonable staff assistance from the South Carolina Retirement
System, the State Personnel Division, and other state
agencies which may be concerned with a particular area of study.
The board panel is also encouraged to
use such resources as faculty and students at public
universities, colleges, and technical education schools
in South Carolina."
C.1. Section 9-8-10 of the 1976 Code, as last amended by Act 108 of 2007, is further amended to read:
"Section 9-8-10.
The following as used in this chapter, unless a different
meaning is plainly required by the context, shall have the
following meanings:
(1) 'System' means the
Retirement System for Judges and Solicitors of the State of
South Carolina.
(2) 'State' means the
State of South Carolina.
(3)
'Board' 'Department' means the
State Budget and Control Board Department of
Administration acting through its Retirement Systems
Division.
(3A)
'Authority' means the State Contracts and
Accountability Authority.
(4) 'Member of the
system' means any person included in the membership of the
system, as set forth in Section 9-8-40.
(5) 'Credited service'
means service for which credit is allowable as provided in
Section 9-8-50.
(6) 'Retirement
allowance' means monthly payments for life under the system
payable as provided in Section 9-8-80.
(7) 'Beneficiary' means
any person in receipt of a retirement allowance or other benefit
as provided by the system.
(8) 'Aggregate
contributions' means the sum of all the amounts deducted from
the compensation of a member of the system, or directly remitted
by him to the system, and credited to his individual account in
the system.
(9) 'Regular interest'
means interest compounded annually at such rates as shall be
determined by the board authority for a
particular purpose in accordance with Section 9-8-30.
(10) 'Accumulated
contributions' means the member's aggregate contributions,
together with regular interest thereon.
(11) 'Actuarial
equivalent' means a benefit of equal value when computed on the
basis of the tables and regular interest rate last adopted for
the particular purpose by the board
authority, as provided in Section 9-8-30.
(12) 'Date of
establishment' means July 1, 1979.
(13) 'Compensation'
means the total salary paid to a judge, solicitor, or circuit
public defender for service rendered to the State.
(14) 'Employee annuity'
means annual payments for life derived from the accumulated
contributions of a member.
(15) 'Employer annuity'
means annual payments for life derived from money provided by
the State.
(16) 'Judge' means a
justice of the Supreme Court or a judge of the court of appeals,
circuit or family court of the State of South Carolina.
(17) 'Solicitor' means
the person holding office as described under Section 1-7-310 of
the 1976 Code.
(18) 'Earned service'
means paid employment as a judge, solicitor, or circuit public
defender where the judge, solicitor, or circuit public defender
makes regular contributions to the system.
(19) 'Circuit public
defender' means a person holding the office defined in Section
17-3-5(4)."
2. Section 9-8-30 of the 1976 Code is amended to read:
"Section 9-8-30.
(1) The administration
and responsibility for the operation of the system and for
making effective the provisions of this chapter are vested in
the State Budget and Control Board
department and authority.
(2) The
board authority is the trustee of the system
and shall engage such actuarial and other services
as shall be required for it to transact
the business of the system and the department similarly shall
engage the services it requires for the administration of the
system.
(3) The
board authority shall designate an
actuary who shall be the technical advisor of the
board authority on matters regarding the
operation of the system and who shall perform such other duties
as are required in connection therewith.
(4) At least once in
each five-year period following the date of establishment, the
actuary shall make an actuarial investigation into the
mortality, service and compensation experience of the members
and beneficiaries of the system and shall make a valuation of
the contingent assets and liabilities of the system. The
board authority, after taking into
account the results of the investigations and valuations, shall
adopt for the system such mortality, service and other tables as
shall be deemed necessary.
(5) On the basis of
regular interest and tables last adopted by the
board authority, for purposes of
actuarial valuations, the actuary shall make a valuation of the
contingent assets and liabilities of the system at least every
other year.
(6) The
board authority shall keep in convenient
form such data as shall be necessary for the actuarial valuation
of the contingent assets and liabilities of the system and for
checking the experience of the system.
(7) The
board authority shall determine from
time to time the rates of regular interest for use in
calculations, with the rate of four percent per annum applicable
for all purposes other than for actuarial valuations unless
changed by the board authority.
(8) Subject to the
limitations hereof, the board shall
department or authority, as appropriate, from time to
time, shall establish regulations for the administration
of the system and for the transaction of business.
(9) The
board authority shall keep a record of
all its proceedings under this chapter which shall be open to
public inspection. Notwithstanding any other provisions of law
governing the system, all persons employed by the
board department and authority and the
expenses of the Board department and
authority to carry out the provisions of this chapter
shall must be paid from the interest
earnings of the system as provided in Section
9-1-310."
3. The last undesignated paragraph of Section 9-8-60(1) of the 1976 Code, as added by Act 164 of 1993, is amended to read:
"A person receiving retirement
allowances under this system who is elected to the General
Assembly continues to receive the retirement allowances while
serving in the General Assembly, and must also
must be a member of the General Assembly Retirement
System unless the person files a statement with the
State Budget and Control Board Retirement
Systems Division on a form prescribed by the
board division electing not to
participate in the General Assembly Retirement System while a
member of the General Assembly. A person making this election
shall not make contributions to the General Assembly Retirement
System nor shall the State make contributions on the member's
behalf and the person is not entitled to benefits from the
General Assembly Retirement System after ceasing to be a member
of the General Assembly."
4. Section 9-8-140 of
the 1976 Code is amended to read:
"Section 9-8-140.
The contributions of the State to the system shall be
determined by the board authority each
year on the basis of annual actuarial valuations of the system.
Each year the board authority shall
certify to the State the amount of its contribution due the
system. The State's contributions shall be appropriated
annually from the general fund to the system and shall include
such sums as are found necessary in order to create reserves in
the system sufficient to cover the cost of the allowances
currently accruing under this chapter, to include a contribution
each year toward the cost of prior service credits and to cover
any administrative expenses which the board
authority may incur in the operation of the system.
The employer contribution shall be remitted
to the system within thirty days after the beginning of each
fiscal year."
D.1. Section 9-9-10 of the 1976 Code, as last amended by Act 153 of 2001, is further amended to read:
"Section 9-9-10.
The following words and phrases as used in
this chapter, unless a different meaning is plainly required by
the context, shall have the following meanings:
(1)
'System' shall mean means the
Retirement System for members of the General Assembly of the
State of South Carolina.
(2)
'State' shall mean means the State
of South Carolina.
(3)
'Board' shall mean the State Budget and Control
Board 'Authority' means the State Contracts and
Accountability Authority.
(3A)
'Department' means the Department of
Administration acting through its Retirement Systems
Division.
(4)
'Member of the system' shall mean any person included in
the membership of the system, as set forth in Section 9-9-40.
(5)
'Credited service' shall mean
means service for which credit is allowable as provided
in Section 9-9-50.
(6)
'Retirement allowance' shall mean
means monthly payments for life under the system payable
as provided in Section 9-9-80.
(7)
'Beneficiary' shall mean means any
person in receipt of a retirement allowance or other benefit as
provided by the system.
(8)
'Aggregate contributions' shall mean
means the sum of all the amounts deducted from the
compensation of a member of the system, or directly remitted by
him to the system, and credited to his individual account in the
system.
(9)
'Regular interest' shall mean
means interest compounded annually at such rate as shall
be determined by the board authority in
accordance with Section 9-9-30.
(10)
Accumulated contributions' shall mean
means the member's aggregate contributions, together with
regular interest thereon.
(11)
'Actuarial equivalent' shall mean
means a benefit of equal value when computed on the basis
of the tables and regular interest rate last adopted by the
board authority, as provided in Section
9-9-30.
(12)
'Date of establishment' shall mean
means January 1, 1966.
(13)
'Earnable compensation' means forty times the daily rate
of renumeration remuneration, plus
twelve thousand dollars, of a member of the General Assembly, as
from time to time in effect.
(14)
'Employee annuity' shall mean
means annual payments for life derived from the
accumulated contributions of a member.
(15)
'Employer annuity' shall mean
means annual payments for life derived from money
provided by the State."
2. Section 9-9-30 of the 1976 Code is amended to read:
"Section 9-9-30.
(1) The general
administration and responsibility for the proper operation of
the system and for making effective the provisions hereof are
hereby vested in the State Budget and Control
Board department and authority.
(2) The
board authority is the trustee of the system
and shall engage such actuarial and other services
as shall be required for it to transact
its Title 9 functions the business of the
system. Similarly, the department shall engage such
services as necessary for the administration of the system.
(3) The
board authority shall designate an
actuary who shall be the technical advisor of the
board authority on matters regarding the
operation of the system and shall perform such other duties as
are required in connection therewith.
(4) At least once in
each five-year period following the date of establishment, the
actuary shall make an actuarial investigation into the
mortality, service and compensation experience of the members
and beneficiaries of the system and shall make a valuation of
the contingent assets and liabilities of the system. The
board authority, after taking into
account the results of such investigations and valuations, shall
adopt for the system such mortality, service and other tables as
shall be deemed necessary.
(5) On the basis of
regular interest and tables last adopted by the
board authority, the actuary shall make
a valuation of the contingent assets and liabilities of the
system at least every other year.
(6) The
board authority shall keep in convenient
form such data as shall be necessary for the actuarial valuation
of the contingent assets and liabilities of the system and for
checking the experience of the system.
(7) The
board authority shall determine from
time to time the rate of regular interest for use in all
calculations, with the rate of four percent per annum applicable
unless changed by the board authority.
(8) Subject to the
limitations hereof, the board shall
department and division, from time to time, shall
establish rules and regulations for the administration of the
system and for the transaction of business.
(9) The
board authority shall keep a record of
all its proceedings under this chapter which shall be open to
public inspection. Notwithstanding any other provisions of law
governing the system, all persons employed by the
board department and division and the
expenses of the board department and
division to carry out the provisions of this chapter shall
be paid from the interest earnings of the system as provided
in Section 9-1-30."
3. Section 9-9-130 of the 1976 Code is amended to read:
"Section 9-9-130.
The contributions of the State to the system shall be
determined by the board authority each
year on the basis of annual actuarial valuations of the system.
Each year the board
authority shall certify to the State the amount of its
contribution due the system. The State's contributions shall be
appropriated annually from the general fund to the system, and
shall include such sums as are found necessary in order to
create reserves in the system sufficient (i) to cover the cost
of the allowances currently accruing under this chapter, (ii) to
include a contribution, each year, toward the cost of prior
service credits, and (iii) to cover any administrative expenses
which the board authority and department
may incur in the operation of the system."
4. Section 9-9-160 of the 1976 Code is amended to read:
"Section 9-9-160.
(1) The State Treasurer shall be the
custodian of the funds of the system. All payments from such
funds shall be made by him only upon vouchers signed by two
persons designated by the board
authority. No voucher shall be drawn unless it has
previously been authorized by resolution of the
board authority.
(2) For the purpose of
meeting disbursements for retirement allowances and other
payments, there may be kept available cash, not exceeding ten
percent of the total funds of the system, on deposit with the
State Treasurer."
E.1. Section 9-10-10 of the 1976 Code, as added by Act 155 of 2005, is amended to read:
"Section 9-10-10.
As used in this chapter, unless a different meaning is
plainly required by the context:
(1) 'Board' or
'board' Department means the State
Budget and Control Board Department of
Administration, acting pursuant to the provisions of this
chapter through its Division of Retirement
Systems Division.
(1A)
'Authority' means the State Contracts and
Accountability Authority.
(2) 'Director' means the Director of
the National Guard Retirement System.
(3) 'System' or
'system' means the National Guard Retirement System established
pursuant to this chapter."
2. Section 9-10-20 of the 1976 Code, as added by Act 155 of 2005, is amended to read:
"Section 9-10-20.
(A) A retirement system is established
to provide pension benefits for members of the National Guard of
South Carolina who became members of the National Guard of South
Carolina before July 1, 1993. This retirement system has the
powers and privileges of a corporation and must be known as the
National Guard Retirement System. By this name all of its
business must be transacted, all of its funds invested, and all
of its cash, securities, and other property held. The
authority is the trustee of the system.
(B) The general
administration and responsibility for the proper operation of
the system and for making effective the provisions of this
chapter are vested in the board
department.
(C) There is created an
office of Director of the National Guard Retirement System. The
Director of the South Carolina Retirement System shall serve as
director.
(D) The
board authority shall engage the
actuarial and other services as required to transact the
business of the system.
(E) The
board authority shall designate an
actuary to be the technical advisor of the
board authority on matters regarding the
operation of the system and who shall perform other duties as
are required in connection with the system.
(F) At least once in
each five year period following July 1, 2006, the actuary shall
make an actuarial investigation into the mortality, service, and
compensation experience of the participants of the system and
make a valuation of the contingent assets and liabilities of the
system. The board authority, after
taking into account the results of these investigations and
valuations, shall adopt for the system the mortality, service,
and other tables as are necessary.
(G) On the basis of
regular interest and tables last adopted by the
board authority, the actuary shall make
a valuation of the contingent assets and liabilities of the
system at least every other year.
(H) The
board authority shall keep in convenient
form the data as necessary for the actuarial valuation of the
contingent assets and liabilities of the system and for checking
the experience of the system.
(I) Subject to the
limitations of this chapter, the board
department and authority shall establish regulations for
the administration of the system and for the transaction of
business.
(J) The
board authority shall keep a record of
all its proceedings under this chapter, which must be open to
public inspection. Notwithstanding any other provisions of law
governing the system, all persons employed by the
board department and authority and the
expenses of the board department and
authority to carry out the provisions of this chapter must
be paid from the interest earnings of the system as provided
in Section 9-1-310."
3. Section 9-10-60 of the 1976 Code, as added by Act 155 of 2005, is amended to read:
"Section 9-10-60.
(A) Notwithstanding any other
provision of this chapter, a person who becomes a member of the
National Guard of South Carolina after June 30, 1993, is
ineligible to receive the pension authorized by this chapter.
(B) Persons with a
break in service remain eligible for pension benefits under this
chapter if the person was a member of the National Guard of
South Carolina before July 1, 1993.
(C) Reserved
(D) The General
Assembly annually shall appropriate sums sufficient to establish
and maintain the National Guard Retirement System on a sound
actuarial basis as determined by the State Budget and
Control Board authority.
(E) Assets and funds of
the National Guard Retirement System must be used to pay
obligations to persons entitled to receive benefits under this
chapter and may not be diverted or used for any other
purpose."
4. Section 9-10-80 of the 1976 Code, as added by Act 155 of 2005, is amended to read:
"Section 9-10-80.
(A) The State Treasurer is the
custodian of the funds of the National Guard Retirement System.
All payments from the funds must be made by him only upon
vouchers signed by two persons designated by the
board authority. No voucher may be
drawn unless it has previously been authorized by resolution of
the board authority.
(B) For the purpose of
meeting disbursements for retirement allowances and other
payments, there may be kept available cash, not exceeding ten
percent of the total funds of the National Guard Retirement
System, on deposit with the State Treasurer."
F.1. Section 9-11-10 of the 1976 Code, as last amended by Act 153 of 2005, is further amended to read:
"Section 9-11-10.
As used in this chapter, unless a different meaning is
plainly required by the context:
(1) 'Accumulated
additional contributions' means a member's aggregate additional
contributions, together with regular interest on the
contributions.
(2) 'Accumulated
contributions' means the sum of all the amounts deducted from
the compensation of a member and credited to the member' s
individual account in the employee annuity savings fund,
together with regular interest on the account, as provided in
this chapter.
(3) Active member'
means a member who is compensated by an employer participating
in the system and who is making regular retirement contributions
to the system.
(4) 'Actuarial
equivalent' means a benefit of equal value when computed on the
basis of the tables and regular interest rate last adopted by
the board authority, as provided in
Section 9-11-30.
(5) 'Aggregate
additional contributions' means the sum of all the contributions
made by a member pursuant to Section 9-11-210 in effect before
July 1, 1974, and any amounts transferred from another fund
which are treated as additional contributions pursuant to
Section 9-11-210 in effect before July 1, 1974, or Section
9-11-210(6) as amended as of that date.
(6) 'Aggregate
contributions' means the sum of all the amounts deducted from
the compensation of a member and credited to the member's
individual account in the system, including any amounts
transferred from another fund to the system as provided in
Section 9-11-210(6).
(7) 'Average final
compensation after July 1, 1986' means the average annual
compensation of a member during the twelve consecutive quarters
of the member's creditable service on which regular
contributions as a member were made to the system producing the
highest average; a quarter means a period January through March,
April through June, July through September, or October through
December. An amount up to and including forty-five days'
termination pay for unused annual leave at retirement may be
added to the average final compensation. Average final
compensation for an elected official may be calculated as the
average annual earnable compensation for the thirty-six
consecutive months prior to the expiration of his term of
office.
(8) 'Beneficiary' means
a person in receipt of a retirement allowance or other benefit
provided by the system.
(9)
'Board' 'Department' means the
State Budget and Control Board Department of
Administration acting through its Division
of Retirement Systems Division.
(9A)
'Authority' means the State Contracts and
Accountability Authority.
(10) 'Class one
service' means credited service which is not class two service.
(11) 'Class two
service' means credited service after June 30, 1974, as a class
two member, as defined in subsection (7) of Section 9-11-40, and
credited service before July 1, 1974, or date of membership, if
later, with respect to which contributions have been made by a
member, or on the member's behalf, under the supplemental
allowance program or pursuant to subsection (2), (3), or (10) of
Section 9-11-210.
(12) 'Compensation'
means the total remuneration paid to a police officer for
service rendered to an employer for his full normal working
time; when compensation includes maintenance, fees and other
things of value, the board authority
shall fix the value of that part of the compensation not paid in
money directly by the employer.
(13) 'Credited service'
means a member's earned service and purchased service.
(14) 'Date of
establishment' means July 1, 1962.
(15) 'Earned service'
means:
(a)
the paid employment of a member of the system with an
employer participating in the system where the member makes
regular retirement contributions to the system;
(b)
service rendered while participating in the State Optional
Retirement Program, the Optional Retirement Program for Teachers
and School Administrators, or the Optional Retirement Program
for Publicly Supported Four-Year and Postgraduate Institutions
of Higher Education that has been purchased pursuant to Section
9-11-50(F); or
(c)
service with a participating employer in the system, the
South Carolina Retirement System, the Retirement System for
Members of the General Assembly, or the Retirement System for
Judges and Solicitors that is transferred to or purchased in the
system.
(16) 'Educational
service' means paid service as a classroom teacher in a public,
private, or sectarian school providing elementary or secondary
education, kindergarten through grade twelve.
(17) 'Employer' means:
(a)
the State;
(b)
a political subdivision, agency, or department of the
State which employs police officers and which has been admitted
to the system as provided in Section 9-11-40; and
(c)
a service organization, the membership of which is
composed solely of persons eligible to be members as defined by
this section, if the compensation received by the employees of
the service organization is provided from monies paid by the
members as dues, or otherwise, or from funds derived from public
sources and if the contributions prescribed by this chapter are
to be paid from the funds of the service organization.
(18) [Reserved]
(19) 'Member' means a
person included in the membership of the system, as provided in
this chapter.
(20) 'Military service'
means:
(a)
service in the United States Army, United States Navy,
United States Marine Corps, United States Air Force, or United
States Coast Guard;
(b)
service in the select reserve of the Army Reserve, Naval
Reserve, Marine Corps Reserve, Air Force Reserve, or the Coast
Guard Reserve; and
(c)
service as a member of the Army National Guard or Air
National Guard of this or any other state.
(21) 'Nonqualified
service' means purchased service other than public service,
educational service, military service, leave of absence, and
reestablishment of withdrawals.
(22) 'Other fund'
means:
(a)
the South Carolina Retirement System; or
(b)
the Police Insurance and Annuity Fund of the State of
South Carolina.
(23) 'Police officer'
means a person who receives his salary from an employer and who
is:
(a)
required by the terms of his employment, either by
election or appointment, to give his time to the preservation of
public order, the protection of life and property, and the
detection of crimes in this State; or
(b)
an employee after January 1, 2000, of the South Carolina
Department of Corrections, the South Carolina Department of
Juvenile Justice, or the South Carolina Department of Mental
Health who, by the terms of his employment, is a peace officer
as defined by Section 24-1-280.
Notwithstanding prior duties performed by a
person who is a police officer as defined in this item, the
provisions of Section 9-11-40(9) apply to a person who is or who
becomes a member of the Police Officers Retirement System.
(24) 'Public service'
means service as an employee of the government of the United
States, any state or political subdivision of the United States,
or any agency or instrumentality of any of these. The term
'public service' does not include 'educational service' or
'military service' as defined in this section. 'Public service'
does include paid service rendered as an employee of a
postsecondary public technical college or public junior college,
or a public four-year or postgraduate institution of higher
education, while the member was a student at that institution.
(25) 'Purchased
service' means service credit purchased by an active member
while an employee of an employer participating in the system.
(26) 'Regular interest'
means interest compounded annually at the rate or rates
determined for a particular purpose by the
board authority in accordance with
Section 9-11-30.
(27) 'Retirement
allowance' means monthly payments for life under the system
payable as provided in Section 9-11-160.
(28) 'State' means the
State of South Carolina.
(29) 'Supplemental
allowance program' means the supplemental allowance program
established under the system as of July 1, 1966, and as in
effect on June 30, 1974.
(30) 'System' means the
South Carolina Police Officers Retirement System."
2. Section 9-11-20 of the 1976 Code is amended to read:
"Section 9-11-20.
(1) A retirement system is hereby
created and placed under the administration of the
board department and authority to
provide retirement allowances and other benefits for police
officers. The system shall begin operation as of July 1, 1962.
It shall have the power and privileges of a corporation and
shall be known as the South Carolina Police Officers Retirement
System, and by such name all of its business shall be
transacted, all of its funds invested, and all of its cash,
securities and other property held. The authority is the
trustee of the system.
(2) There is hereby
created an office to be known as Director of the South Carolina
Police Officers Retirement System. The Director of the South
Carolina Retirement System shall serve as Director of this
system."
3. Section 9-11-30 of the 1976 Code, as last amended by Act 153 of 2005, is further amended to read:
"Section 9-11-30.
(1) The general administration and
responsibility for the proper operation of the system and for
making effective the provisions hereof are hereby vested in the
State Budget and Control Board department
and authority.
(2) [Reserved]
(3) The
board authority shall engage such
actuarial and other services as shall be
required for it to transact the
business of the system its Title 9
functions. Similarly, the department may engage the services
required for the administration of the system.
(4) The
board authority shall designate an
actuary who shall be the technical adviser of the
board authority on matters regarding the
operation of the system and shall perform such other duties as
are required in connection therewith and shall be a member of
the American Academy of Actuaries.
(5) At least once in
each five-year period following the date of establishment, the
actuary shall make an actuarial investigation into the
mortality, service and compensation experience of the members
and beneficiaries of the system and shall make a valuation of
the contingent assets and liabilities of the system and the
board authority, after taking into
account the results of such investigations and valuations, shall
adopt for the system such mortality, service and other tables as
shall be deemed necessary.
(6) On the basis of
regular interest and tables last adopted by the
board authority the actuary shall make
an annual valuation of the contingent assets and liabilities of
the system.
(7) The
board authority shall keep in convenient
form such data as shall be necessary for the actuarial valuation
of the contingent assets and liabilities of the system and for
checking the experience of the system.
(8) The
board authority shall determine from
time to time the rate or rates of regular interest for use in
all calculations.
(9) Subject to the
limitations hereof, the board department and
authority shall, from time to time, establish rules and
regulations for the administration of the system and for the
transaction of business.
(10) The
board department and authority shall
keep a record of all its their
proceedings under this article which shall be open to public
inspection. It The authority shall
publish an annual report showing the fiscal transactions of the
system for the preceding year, the amount of the accumulated
cash and securities of the system and the last balance sheet
showing the financial condition of the system by means of an
actuarial valuation of the contingent assets and liabilities of
the system. Notwithstanding any other provisions of law
governing the system, all persons employed by the
board department and authority and the
expenses of the board department and
authority to carry out the provisions of this chapter shall
be paid from the interest earnings of the system as provided
pursuant to Section 9-1-310."
4. Section 9-11-45 of the 1976 Code is amended to read:
"Section 9-11-45.
Notwithstanding the provisions of Section 9-11-40, an
employer who maintains a local retirement system for police
officers prior to the date of admission may require all active
members of that system to become members of this system on the
date of admission. If this option is exercised, all assets of
the local retirement system including accumulated member
contributions, if any, not needed to meet the local retirement
system's retiree liability, if any, must be transferred to this
system as of the date of admission. Any actuarial accrued
liabilities realized by the system on account of the transfer,
as determined by the board's authority's
actuary and not met by transferred assets, must be paid by the
employer in a lump sum or in installments over a period not to
exceed ten years, as the board authority
under uniform rules may determine. The asset transfer and
employer payment, if required by this subsection, is in lieu of
any other payments that would otherwise be required by this
section.
The board's
authority's actuary shall determine, for the protection
of the current retirees of the local system, the amount of
retainage necessary by the employer to meet this retiree
liability and to have adequate revenue therefor; and the same
must be retained and escrowed by the employer which will have
the continuing responsibility to see that all retirement
payments continue at present levels for current retirees until
the death of the last survivor, including any costs of living
increases in future years provided for in the local system
plan."
5. Section 9-11-48 of the 1976 Code, as last amended by Act 506 of 1990, is further amended to read:
"Section 9-11-48.
Notwithstanding the provisions of Section 9-11-40, an
employer who maintains a local retirement system for
firefighters before the date of admission to the Police
Officers' Retirement System may transfer the local system to the
Police Officers' Retirement System by meeting the requirements
of one of the following items:
(1)(a) The employer may
require all active members and retirees or their beneficiaries
of that local system to become members or beneficiaries of the
South Carolina Police Officers' Retirement System on the date of
admission. The date of admission is April 1, 1989, or at the
beginning of any quarter thereafter. If this option is
exercised, all assets of the local retirement system must be
transferred to this system as of the date of admission. Any
actuarial accrued liabilities realized by the system on account
of the transfer, including retiree liability, as determined by
the board's authority's actuary and not
met by transferred assets, must be paid by the employer in a
lump sum or in installments over a period not to exceed ten
years, as the board authority under
uniform regulations may determine. The asset transfer and
employer payment, if required by this subitem, is in lieu of any
other payments that would otherwise be required by this subitem.
(b)
Retirees or their beneficiaries transferred to this system
shall receive benefits equal to those they received under the
former local retirement system plus increases provided by law
for beneficiaries of this system on or after the date of
admission.
(c)
If a retiree on the date of transfer is employed in
employment covered by the system, the earnings limitation of
Section 9-11-150(4) does not apply while the retiree remains in
the same covered employment.
(2)(a) The employer may
require all active members of the local retirement system for
firefighters to become members of the South Carolina Police
Officers' Retirement System on the date of admission. The date
of admission is April 1, 1990, or at the beginning of any
quarter thereafter. If this option is exercised, all assets of
the local retirement system including accumulated member
contributions, if any, not needed to meet the local retirement
system's retiree liability, if any, must be transferred to this
system as of the date of admission. Any actuarial accrued
liabilities realized by the system on account of the transfer,
as determined by the board's authority's
actuary and not met by transferred assets, must be paid by the
employer in a lump sum or in installments over a period not to
exceed ten years, as the board authority
under uniform rules may determine. The asset transfer and
employer payment, if required by this subitem, is in lieu of any
other payments that would otherwise be required by this subitem.
(b)
The board's authority's actuary
shall determine the amount of assets necessary to be retained to
provide the funds to meet retiree liability. The amount
determined must be retained and escrowed by the employer. The
employer has the continuing responsibility to insure that
retirement benefits of current retirees continue at current
levels, including cost-of-living increases in future years as
provided in the local retirement system, until the death of the
last survivor."
6. Section 9-11-125 of the 1976 Code, as last amended by Act 176 of 2010, is further amended to read:
"Section 9-11-125.
(A) The Death Benefit Plan for members
of the South Carolina Police Officers Retirement System,
hereinafter referred to as the 'plan', is established for the
purpose of providing for the payment of the benefits provided by
Section 9-11-120.
(B) A separate fund, to
be known as the Death Benefit Plan Reserve Fund, is established
within the South Carolina Police Officers Retirement System,
hereinafter referred to as the 'retirement system', to be held
in trust by the board authority. The
fund shall consist of all contributions paid by the employers
and other monies received and paid into the fund for death
benefit purposes, and of the investment earnings on these
monies, and must be used only to pay the death benefits
prescribed by subsection (C). Concurrent with the determination
of the initial liability of the plan for the balance of the
fiscal year on and after the effective date of the benefit, for
the death benefit provided and to be paid for pursuant to this
plan, there must be segregated and transferred from the Employer
Annuity Accumulation Fund of the retirement system to the
reserve fund created by this section the amounts determined by
the actuary to be necessary to pay anticipated death benefit
claims. Subsequent segregations and transfers must be made as
required to pay the benefit prescribed by subsection (C) from
the reserve fund provided by this section.
(C) At the death of a
member who has met the eligibility requirements set forth in
Section 9-11-120 a benefit equal to the death benefit provided
by Section 9-11-120 must be paid to the person nominated by the
member in accordance with the provisions of Section 9-11-120 or
to the member's estate.
(D) The actuary shall
investigate the experience of the plan as provided by Section
9-11-30. On the basis of the investigations and upon the
recommendation of the actuary, as provided in Section 9-11-120,
the board authority shall certify the
contribution rates computed to be necessary to fund the death
benefits authorized to be paid by the plan. As soon as
practicable after the close of each fiscal year, the
board authority shall determine the
contribution rates which the employers participating in the plan
are required to pay into the reserve fund to discharge the
obligations of the plan for the past fiscal year.
(E) Each qualified
member of the retirement system is to be covered as provided in
this section effective commencing as of June 19, 1973."
7. Section 9-11-210 of the 1976 Code, as last amended by Act 311 of 2008, is further amended to read:
"Section 9-11-210.
(1) Each
Class One member shall contribute to the System twenty-one
dollars a month during his service after becoming a member.
Each Class Two member shall contribute to the System six and
one-half percent of his compensation Each member
shall contribute to the system as provided pursuant to Section
11-55-20(C)(2).
(2) Any police officer
who is a participant in the Supplemental Allowance Program on
June 30, 1974 and has not made contributions under said Program
with respect to his credited service prior to his date of
participation therein may elect, by written notice filed with
the Board department within ninety days
after July 1, 1974, to establish credit for such service as
Class Two service by making a special contribution equal to the
amount which would have resulted had he, during each month of
such service, made contributions to the system equal to two
percent of the portion of his monthly compensation in excess of
four hundred dollars during the month immediately preceding his
participation in the Supplemental Allowance Program and had such
contributions been accumulated with interest at the rate of four
percent per annum to July 1, 1974 and at regular interest as
determined by the Board department
thereafter to the date of payment. Such contribution shall be
paid within twelve months following the filing of the aforesaid
notice.
(3) Any Class
Two member, other than a member who makes the election provided
in subsection (2) of this section, who has credited service
which does not qualify as Class Two service may elect by written
notice filed with the Board department
at any time prior to retirement to establish credit for such
service as Class Two service by making a special contribution
prior to retirement equal to the excess of (a) five percent of
his monthly rate of compensation at the time such contribution
is made, over (b) sixteen dollars, multiplied by (c) the number
of months of such credited service.
(4) Reserved.
(5) The
Board department shall prescribe by
appropriate rules and regulations the manner in which the
contributions provided in subsections (2), (3) and (4) of this
section shall be made.
(6) Each member who
was, immediately prior to his becoming a member, a participant
in another fund shall, and is hereby authorized and required to,
cause the amount of his full contributions made under such other
fund to be transferred to the system within two months of the
date of his membership, provided that the service credited to
him under such other fund is includable in his credited service
under the system. If the amount so transferred exceeds the
amount which would have been transferable from the Police
Insurance and Annuity Fund had the member made all required
contributions thereto in connection with service prior to July
1, 1962 before becoming a member, plus the amount which the
member would have been required to contribute to the system on
account of service after said date and prior to his actual date
of membership, the Board department
shall under uniform rules and regulations determine the amount
of such excess and treat it as an additional contribution which
upon his retirement shall be used to provide an additional
retirement allowance. If, however, a deficiency exists, the
Board department shall require that such
deficiency be made up by the member within such period of time
as the Board department may deem
reasonable. This subsection shall not apply to a member
transferred from a correlated system to whom the provisions of
Section 9-11-40(9) are applicable.
(7) The collection of
members' contributions is as follows:
Each employer must
cause to be deducted on each and every payroll of a member the
contributions payable by the member. In determining the amount
to be deducted in a payroll period, the employer may consider
the rate of compensation of the member on the first day of the
payroll period as continuing throughout the payroll period and
it may omit deduction from compensation for any period less than
a full payroll period if a police officer was not a member on
the first day of the payroll period. The chief fiscal officer
of each employer shall transmit the amounts deducted to the
system together with a schedule of the contributions, on forms
prescribed by the Board department, to
reach the Retirement System on or before the last day of each
month for the preceding month. If any employer fails to do so,
or if arrears should at any time exist in making monthly payroll
reports and remittances as required hereunder and by the rules
and regulations of the Board department,
the compensation of any person or officer of any employer
charged with the responsibility of making monthly payroll
reports and remittances to the system must be withheld by the
employer in each instance of failure to make the reports and
remittances until all reports and remittances required hereunder
and by the rules and regulations of the Board
department have been made. The system shall furnish
monthly to the disbursing officers of each employer a statement
of any failure to make payroll reports and remittances and the
names of the persons or officers failing to make the reports and
remittances.
Any person failing to
transmit, in the manner and within the period herein required,
the contributions deducted is guilty of a misdemeanor and must
be punished by fine or imprisonment, or both, in the discretion
of the court.
(8) Every member shall
be deemed to consent and agree to the deductions made and
provided for herein, and shall receipt for his full salary or
compensation, and payment of salary or compensation less such
deduction shall be a full and complete discharge and acquittance
of all claims and demands whatsoever for the services rendered
by such person during the period covered by such payment, except
as to the benefits provided under the system.
(9) Each of the amounts
so deducted shall be credited to the individual account of the
member from whose compensation the deduction was made.
(10) Any employer may
pay to the system on behalf of the members in its employ the
amounts which such members would otherwise be required to
contribute pursuant to subsection (2) or (3) of this section in
order to establish credit as Class Two service for any period of
credited service prior to the date on which such members became
eligible for Class Two membership or for participation in the
Supplemental Allowance Program or any amounts which such members
would otherwise be required to contribute pursuant to subsection
(4) of this section in order to establish credit for any period
of service prior to the date on which such members became
eligible for membership. Such amounts contributed by an
employer shall not be credited to the members' accumulated
contributions, but in the event that a member's accumulated
contributions are returned to him upon termination of his
membership or are paid to the person designated by him upon his
death prior to retirement, any amount contributed by the
employer on behalf of the member pursuant to this subsection
(10) shall be returned to said employer.
(11) Each
department agency and political
subdivision shall pick up the employee contributions required by
this section for all compensation paid on or after July 1, 1982,
and the contributions so picked up shall be treated as employer
contributions in determining federal tax treatment under the
United States Internal Revenue Code. For this purpose, each
department and political subdivision is deemed to have taken
formal action on or before January 1, 2009, to provide that the
contributions on behalf of its employees, although designated as
employer contributions, shall be paid by the employer in lieu of
employee contributions. The department
agency and political subdivision shall pay these employee
contributions from the same source of funds which is used in
paying earnings to the employee. The
department agency and political
subdivision may pick up these contributions by a reduction in
the cash salary of the employee. The employee, however, must
not be given the option of choosing to receive the contributed
amount of the pickups directly instead of having them paid by
the employer to the retirement system. Employee contributions
picked up shall be treated for all purposes of this section in
the same manner and to the extent as employee contributions made
prior to the date picked up.
(12) Payments for
unused sick leave, single special payments at retirement, bonus
and incentive-type payments, or any other payments not
considered a part of the regular salary base are not
compensation for which contributions are deductible. This item
does not apply to bonus payments paid to certain categories of
employees annually during their work careers. Bonus or special
payments applied only during the 'Average Final Compensation'
period are excluded as compensation. Contributions are
deductible on up to and including forty-five days' termination
pay for unused annual leave. If a member has received
termination pay for unused annual leave on more than one
occasion, contributions are deductible on up to and including
forty-five days' termination pay for unused annual leave for
each termination payment for unused annual leave received by the
member. However, only an amount up to and including forty-five
days' pay for unused annual leave from the member's last
termination payment shall be included in a member's average
final compensation calculation."
8. Section 9-11-220(1) of the 1976 Code, as last amended by Act 387 of 2000, is further amended to read:
"(1) Commencing as
of July 1, 1974, each employer shall contribute to the system
seven and one-half percent of the compensation of Class One
members in its employ and ten percent of a
percentage of compensation of Class Two
all other members in its employ. Such rates of
contribution shall be subject to adjustment from time to time on
the basis of the annual actuarial valuations of the
System as provided pursuant to Section
11-55-20(C)(2)."
9. Section 9-11-75 of the 1976 Code is repealed.
G. Chapter 12, Title 9 of the 1976 Code, as added by Act 311 of 2008, is amended to read:
Section 9-12-10. As
used in this chapter, unless a different meaning is plainly
required by the context:
(1)
'Board' 'Authority' means the
State Budget and Control Board Contract and
Accountability Authority acting as trustee of the retirement
systems and acting through its Division of
the Retirement Systems Division of the Department of
Administration.
(2) 'Internal Revenue
Code' means the Internal Revenue Code of 1986, as amended from
time to time.
(3) 'QEBA' means a
Qualified Excess Benefit Arrangements under Section 415(m) of
the Internal Revenue Code.
(4) 'Retirement system'
means the South Carolina Retirement System, Retirement System
for Judges and Solicitors, Retirement System for Members of the
General Assembly, and Police Officers Retirement System
established pursuant to Chapters 1, 8, 9, and 11 of this title.
Section 9-12-20. Each retirement system may establish and maintain a QEBA. The amount of any annual benefit that would be payable pursuant to this chapter but for the limitation imposed by Section 415 of the Internal Revenue Code shall be paid from a QEBA established and maintained pursuant to this chapter. A QEBA established under this chapter shall be maintained through a separate unfunded QEBA. This arrangement is established for the sole purpose of enabling the retirement systems to continue to apply the same formulas for determining benefits payable to all employees covered by the retirement systems created under Chapters 1, 8, 9, and 11 of this title, including those whose benefits are limited by Section 415 of the Internal Revenue Code.
Section 9-12-30. The
board authority shall administer the
QEBAs. The board authority has full
discretionary authority to determine all questions arising in
connection with the QEBAs, including its interpretation and any
factual questions arising under the QEBAs. Further, the
board authority has full authority to
make modifications to the benefits payable under the QEBAs as
may be necessary to maintain the QEBAs' qualification under
Section 415(m) of the Internal Revenue Code.
Section 9-12-40. All members, retired members, and beneficiaries of the retirement systems are eligible to participate in a QEBA if their benefits would exceed the limitation imposed by Section 415 of the Internal Revenue Code. Participation is determined for each calendar year, and participation shall cease for any calendar year in which the benefit of a member, retired member, or beneficiary is not limited by Section 415 of the Internal Revenue Code.
Section 9-12-50. On and
after the effective date of the QEBA, the board
authority shall pay to each eligible retiree and
beneficiary a supplemental retirement allowance equal to the
difference between the retiree's or beneficiary's monthly
benefit otherwise payable from the applicable retirement system
prior to any reduction or limitation because of Section 415 of
the Internal Revenue Code and the actual monthly benefit payable
from the retirement system as limited by Section 415. The
board authority shall compute and pay
the supplemental retirement allowance in the same form, at the
same time, and to the same persons as such benefits would have
otherwise been paid as a monthly pension under the retirement
system except for the Internal Revenue Code Section 415
limitations.
Section 9-12-60. The
board authority shall determine the
amount of benefits that cannot be provided under the retirement
systems because of the limitations of Section 415 of the
Internal Revenue Code, and the amount of contributions that must
be made to the QEBAs as separate funds within the retirement
systems. The board authority shall
engage such actuarial services as shall be required to make
these determinations. If applicable, fees for the actuary's
service shall be paid by the applicable employers.
Section 9-12-70.
Contributions shall not be accumulated under a QEBA to pay
future supplemental retirement allowances. Instead, each
payment of contributions by the applicable employer that would
otherwise be made to a retirement system shall be reduced by the
amount necessary to pay the required supplemental retirement
allowances, and these contributions will be deposited in a
separate fund that is a portion of the retirement system. This
separate fund is intended to be exempt from federal income tax
under Sections 115 and 415(m) of the Internal Revenue Code. The
board authority shall
pay direct payment of the required
supplemental retirement allowances to the member, retired
member, or beneficiary out of the employer contributions so
transferred. The employer contributions otherwise required
under the terms of a retirement system shall be divided into
those contributions required to pay supplemental retirement
allowances hereunder, and those contributions paid into and
accumulated in the retirement system funds created under Chapter
16 of this title to pay the maximum benefits permitted.
Employer contributions made to a separate fund to provide
supplemental retirement allowances shall not be commingled with
the contributions paid into and accumulated in the retirement
system funds created under Chapter 16. The supplemental
retirement allowance benefit liability shall be funded on a
calendar year to calendar year basis. Any assets of a separate
QEBA fund not used for paying benefits for a current calendar
year shall be used, as determined by the board
authority, for the payment of administrative expenses of
the QEBA for the calendar year.
Section 9-12-80. A member, retired member, or beneficiary cannot elect to defer the receipt of all or any part of the payments due under a QEBA.
Section 9-12-90. Payments under a QEBA are exempt from garnishment, assignment, alienation, judgments, and other legal processes to the same extent as a retirement allowance under a retirement system.
Section 9-12-100. Nothing in this chapter shall be construed as providing for assets to be held in trust or escrow or any form of asset segregation for members, retired members, or beneficiaries. To the extent any person acquires the right to receive benefits under a QEBA, the right shall be no greater than the right of any unsecured general creditor of the State of South Carolina.
Section 9-12-110. A QEBA is a portion of a governmental plan as defined in Section 414(d) of the Internal Revenue Code, and is intended to meet the requirements of Internal Revenue Code Sections 115 and 415(m), and shall be so interpreted and administered.
Section 9-12-120. Amounts deducted from employer contributions and deposited in a separate QEBA fund shall not increase the amount of employer contributions required under Chapters 1, 8, 9, and 11 of this title."
H.1. Section 9-16-10 of the 1976 Code, as last amended by Act 155 of 2005, is further amended to read:
"Section 9-16-10.
As used in this chapter, unless a different meaning is
plainly required by the context:
(1) 'Assets' means all
funds, investments, and similar property of the retirement
system.
(2) 'Beneficiary' means
a person, other than the participant, who is designated by a
participant or by a retirement program to receive a benefit
under the program.
(3)
'Board' 'Authority' means the
State Budget and Control Board Contract and
Accountability Authority acting as trustee of the retirement
system.
(3.5) 'Commission'
means the Retirement System Investment Commission.
(4) 'Fiduciary' means a
person who:
(a)
exercises any authority to invest or manage assets of a
system;
(b)
provides investment advice for a fee or other direct or
indirect compensation with respect to assets of a system or has
any authority or responsibility to do so;
(c)
is a member of the commission; or
(d)
is the commission's chief investment officer.
(5) 'Participant' means
an individual who is or has been an employee enrolled in a
retirement program and who is or may become eligible to receive
or is currently receiving a benefit under the program. The
term does not include an individual who is no longer an employee
of an employer as defined by laws governing the retirement
system and who has withdrawn his contributions from the
retirement system.
(6) [Reserved]
(7) 'Retirement
program' means a program of rights and obligations which a
retirement system establishes or maintains and which, by its
express terms or as a result of surrounding circumstances:
(a)
provides retirement benefits to qualifying employees and
beneficiaries; or
(b)
results in a deferral of income by employees for periods
extending to the termination of covered employment or beyond.
(8) 'Retirement system'
means the South Carolina Retirement System, Retirement System
for Judges and Solicitors, Retirement System for Members of the
General Assembly, National Guard Retirement System, and Police
Officers Retirement System established pursuant to Chapters 1,
8, 9, 10 and 11 of this title.
(9) 'Trustee' means the
State Budget and Control Board
authority."
2. Section 9-16-20 of the 1976 Code, as last amended by Act 311 of 2008, is further amended to read:
"Section 9-16-20.
(A) All assets of a retirement system
are held in trust. The commission has the exclusive authority,
subject to this chapter and Section 9-1-1310, to invest and
manage those assets.
(B) If the retirement
system invests in a security issued by an investment company
registered under the Investment Company Act of 1940 (15 U.S.C.
Section 80a-1, et seq.), the assets of the system include the
security, but not assets of the investment company.
(C) The
board authority shall hold the assets of
the retirement systems in a group trust under Section 401(a)(24)
of the Internal Revenue Code that meets the requirements of
Revenue Ruling 81-100, 1981-1 C.B. 326, as amended by Revenue
Ruling 2004-67. Any group trust shall be operated or maintained
exclusively for the commingling and collective investment of
funds from other trusts that it holds. The
board authority shall be permitted to
hold in this group trust funds that consist exclusively of trust
assets held under plans qualified under Internal Revenue Code
Section 401(a), individual retirement accounts that are exempt
under Internal Revenue Code Section 408(e), and eligible
governmental plans that meet the requirements of Internal
Revenue Code Section 457(b). For this purpose, a trust includes
a custodial account under Internal Revenue Code Section 401(f)
or under Internal Revenue Code Section 457(g)(3)."
3. Section 9-16-55(F) of the 1976 Code, as added by Act 248 of 2008, is amended to read:
"(F)
Present, future, and Former
board members, officers, and employees,
however described, of the State Budget and Control Board,
and present, future, and former members, officers, and
employees of the State Contracts and Accountability Authority,
and the Retirement System Investment Commission, however
described, and contract investment managers retained by the
commission must be indemnified from the general fund of the
State and held harmless by the State from all claims, demands,
suits, actions, damages, judgments, costs, charges, and
expenses, including court costs and attorney's fees, and against
all liability, losses, and damages of any nature whatsoever that
these present, future, or former board members,
officers, employees, or contract investment managers shall or
may at any time sustain by reason of any decision to restrict,
reduce, or eliminate investments pursuant to this section."
4. Section 9-16-80 of the 1976 Code, as last amended by Act 153 of 2005, is further amended to read:
"Section 9-16-80.
(A) Meetings by the
board authority while acting as trustee
of the retirement system, or meetings of the commission, or by
its fiduciary agents to deliberate about, or make tentative or
final decisions on, investments or other financial matters may
be in executive session if disclosure of the deliberations or
decisions would jeopardize the ability to implement a decision
or to achieve investment objectives.
(B) A record of the
board authority, or commission, or of
its fiduciary agents that discloses deliberations about, or a
tentative or final decision on, investments or other financial
matters is exempt from the disclosure requirements of Chapter 4
of Title 30, the Freedom of Information Act, to the extent and
so long as its disclosure would jeopardize the ability to
implement an investment decision or program or to achieve
investment objectives."
5. Section 9-16-90 of the 1976 Code, as last amended by Act 153 of 2005, is further amended to read:
"Section 9-16-90.
(A) The commission shall provide
investment reports at least quarterly during the fiscal year to
the State Budget and Control Board
authority, the Speaker of the House of Representatives,
the President Pro Tempore of the Senate, and other appropriate
officials and entities.
(B) In addition to the
quarterly reports provided in subsection (A), the commission
shall provide an annual report to the State Budget and
Control Board authority, the Speaker of the
House of Representatives, members of the House of
Representatives or Senate, but only upon their request, the
President Pro Tempore of the Senate, and other appropriate
officials and entities of the investment status of the
retirement systems. The report must contain:
(1)
a description of a material interest held by a trustee,
fiduciary, or an employee who is a fiduciary with respect to the
investment and management of assets of the system, or by a
related person, in a material transaction with the system within
the last three years or proposed to be effected;
(2)
a schedule of the rates of return, net of total investment
expense, on assets of the system overall and on assets
aggregated by category over the most recent one-year,
three-year, five-year, and ten-year periods, to the extent
available, and the rates of return on appropriate benchmarks for
assets of the system overall and for each category over each
period;
(3)
a schedule of the sum of total investment expense and
total general administrative expense for the fiscal year
expressed as a percentage of the fair value of assets of the
system on the last day of the fiscal year, and an equivalent
percentage for the preceding five fiscal years; and
(4)
a schedule of all assets held for investment purposes on
the last day of the fiscal year aggregated and identified by
issuer, borrower, lessor, or similar party to the transaction
stating, if relevant, the asset's maturity date, rate of
interest, par or maturity value, number of shares, costs, and
fair value and identifying an asset that is in default or
classified as uncollectible.
These disclosure requirements are
cumulative to and do not replace other reporting requirements
provided by law."
6. Section 9-16-320(B) of the 1976 Code, as last amended by Act 105 of 2005, is further amended to read:
"(B) The
commission shall meet at least once during each fiscal-year
quarter for the purposes of reviewing the performance of
investments, assessing compliance with the annual investment
plan, and determining whether to amend the plan. The commission
shall meet at such other times as are set by the commission or
the chairman or requested by the board
authority."
7. Section 9-16-330(A) of the 1976 Code, as last amended by Act 153 of 2005, is further amended to read:
"(A) The
commission shall provide the chief investment officer with a
statement of general investment objectives. The commission
shall also provide the chief investment officer with a statement
of actuarial assumptions developed by the system's actuary and
approved by the board authority. The
commission shall review the statement of general investment
objectives annually for the purpose of affirming or changing it
and advise the chief investment officer of its actions. The
retirement system shall provide the commission and its chief
investment officer that data or other information needed to
prepare the annual investment plan."
I. Section 9-18-10(3) of the 1976 Code, as added by Act 38 of 1995, is amended to read:
"(3) 'Board' means
the State Budget and Control Board Contracts
and Accountability Authority."
J. Section 9-21-20(2) of the 1976 Code, as added by Act 12 of 2003, is amended to read:
"(2) 'Board' means
the State Budget and Control Board Contract
and Accountability Authority."
SECTION 33. A . Section 1-1-810 of the 1976 Code is amended to read:
"Section 1-1-810. Each agency and department of state government shall submit an annual accountability report to the Governor, State Contracts and Accountability Authority's Office of Accountability and Auditing, and the General Assembly covering a period from July first to June thirtieth, unless otherwise directed by the specific statute governing the department or institution. The submission of the annual accountability report by state agencies and departments must be sent to the Office of Accountability and Auditing which in turn shall provide copies to the Governor's Office and the General Assembly."
B. Section 1-6-20(A) of the 1976 Code, as added by Act 105 of 2012, is amended to read:
"(A)(1)
There is hereby established the Office of
the State Inspector General that consists of the State Inspector
General, who is the director of the office, and a staff of
deputy inspectors general, investigators, auditors, and clerical
employees employed by the State Inspector General as necessary
to carry out the duties of the State Inspector General and as
are authorized by law. The State Inspector General shall fix
the salaries of all staff subject to the funds authorized in the
annual general appropriation act.
(2)
As provided in subsection (D)(3) of Section
11-55-20, the Office of the State Inspector General is located
within the Office of Accountability and Auditing of the SCAA,
together with the State Auditor's Office. The Office of the
State Inspector General is an independent agency, except where
joint responsibilities are imposed upon it and the State
Auditor's Office in the manner provided by law."
C. Section 11-7-10 of the 1976 Code is amended to read:
"Section 11-7-10.
(A) The State Budget
and Control Board shall State Auditor serving in
office on June 30, 2013, shall continue to serve in this
position. However, his successor in this office shall be
selected by the State Contracts and Accountability Authority.
The State Auditor shall select necessary assistants in
conformity with the appropriations for the office.
(B) The State
Auditor's office is located within the Office of Accountability
and Auditing of the SCAA as provided in Section
11-55-20(D)(3)."
D. Section 11-7-30 of the 1976 Code is amended to read:
"Section 11-7-30.
Reports of audit findings must be available to the
Governor, Budget and Control Board, General
Assembly, and the general public. The State Auditor shall
notify the Governor, the General Assembly, and
the Budget and Control Board Department of
Administration, and the State Contracts and Accountability
Authority immediately upon the issuance of an audit
report."
SECTION 34. A.
Whereas the context is appropriate and based on the
devolutions provided in Section 11-55-20 of the 1976 Code, as
added by this act, in those provisions of the 1976 Code where
references to "board" or "State Budget and
Control Board" appear, those references must be construed
to mean:
(1)
the Department of Administration or a specific division of
that department; or
(2)
the State Contracts and Accountability Authority or
specific office or other component of that authority.
B. Where appropriate, the Code Commissioner, in the annual cumulative supplement to the 1976 Code, shall update these references to reflect the devolutions provided in Section 11-55-20 of the 1976 Code added by this act.
SECTION 35. A. Chapter 11, Title 1 of the 1976 Code is amended by adding:
"Section 1-11-45.
(A) There is established the
Department of Administration, Division of Procurement
Services.
(B)
Effective July 1, 2013, the Division of Procurement
Services shall exercise all functions, powers, duties,
responsibilities, and authority pursuant to the provisions of
Chapter 35, Title 11, the South Carolina Consolidated
Procurement Code, previously delegated by law to the State
Budget and Control Board except for the functions, powers,
duties, responsibilities, and authority specifically provided by
law to the State Contracts and Accountability Authority."
B. Section 11-35-310 of the 1976 Code is amended to read:
"Section 11-35-310.
Unless the context clearly indicates otherwise:
(1) 'Information
Technology (IT)' means data processing, telecommunications, and
office systems technologies and services:
(a)
'Data processing' means the automated collection, storage,
manipulation, and retrieval of data including: central
processing units for micro, mini, and mainframe computers;
related peripheral equipment such as terminals, document
scanners, word processors, intelligent copiers, off-line memory
storage, printing systems, and data transmission equipment; and
related software such as operating systems, library and
maintenance routines, and applications programs.
(b)
'Telecommunications' means voice, data, message, and video
transmissions, and includes the transmission and switching
facilities of public telecommunications systems, as well as
operating and network software.
(c)
'Office systems technology' means office equipment such as
typewriters, duplicating and photocopy machines, paper forms,
and records; microfilm and microfiche equipment and printing
equipment and services.
(d)
'Services' means the providing of consultant assistance
for any aspect of information technology, systems, and networks.
(2)
'Board' 'Authority' means
the State Budget and Control Board
Contracts and Accountability Authority.
(3) 'Business' means
any corporation, partnership, individual, sole proprietorship,
joint stock company, joint venture, or any other legal entity.
(4) 'Change order'
means any written alteration in specifications, delivery point,
rate of delivery, period of performance, price, quantity, or
other provisions of any contract accomplished by mutual
agreement of the parties to the contract.
(5) 'Chief procurement
officer' means (a) the management officer for information
technology, (b) the state engineer for areas of construction,
architectural and engineering, construction management, and land
surveying services, and (c) the materials management officer for
all other procurements.
(6) 'Information
Technology Management Officer' means the person holding the
position as the head of the Information Technology Office of the
State.
(7) 'Construction'
means the process of building, altering, repairing, remodeling,
improving, or demolishing a public infrastructure facility,
including any public structure, public building, or other public
improvements of any kind to real property. It does not include
the routine operation, routine repair, or routine maintenance of
an existing public infrastructure facility, including
structures, buildings, or real property.
(8) 'Contract' means
all types of state agreements, regardless of what they may be
called, for the procurement or disposal of supplies, services,
information technology, or construction.
(9) 'Contract
modification' means a written order signed by the procurement
officer, directing the contractor to make changes which the
changes clause of the contract authorizes the procurement
officer to order without the consent of the contractor.
(10) 'Contractor' means
any person having a contract with a governmental body.
(11) 'Cost
effectiveness' means the ability of a particular product or
service to efficiently provide goods or services to the State.
In determining the cost effectiveness of a particular product or
service, the appropriate chief procurement officer shall list
the relevant factors in the bid notice or solicitation and use
only those listed relevant factors in determining the award.
(12) 'Data' means
recorded information, regardless of form or characteristics.
(13) 'Days' means
calendar days. In computing any period of time prescribed by
this code or the ensuing regulations, or by any order of the
Procurement Review Panel, the day of the event from which the
designated period of time begins to run is not included. If the
final day of the designated period falls on a Saturday, Sunday,
or a legal holiday for the state or federal government, then the
period shall run to the end of the next business day.
(14) 'Debarment' means
the disqualification of a person to receive invitations for
bids, or requests for proposals, or the award of a contract by
the State, for a specified period of time commensurate with the
seriousness of the offense or the failure or inadequacy of
performance.
(15) 'Designee' means a
duly authorized representative of a person with formal
responsibilities under the code.
(16) 'Employee'
means an individual drawing a salary from a governmental body,
whether elected or not, and any nonsalaried individual
performing personal services for any governmental body
'Division' means the Department of Administration, Division
of Procurement Services.
(17)
(Reserved) 'Employee' means an
individual drawing a salary from a governmental body, whether
elected or not, and any nonsalaried individual performing
personal services for any governmental body.
(18) 'Governmental
Body' means a state government department, commission, council,
board, bureau, committee, institution, college, university,
technical school, agency, government corporation, or other
establishment or official of the executive or judicial branch.
Governmental body excludes the General Assembly or its
respective branches or its committees, Legislative Council, the
Office of Legislative Printing, Information and Technology
Systems, and all local political subdivisions such as counties,
municipalities, school districts, or public service or special
purpose districts or any entity created by act of the General
Assembly for the purpose of erecting monuments or memorials or
commissioning art that is being procured exclusively by private
funds.
(19) 'Grant' means the
furnishing by the State or the United States government of
assistance, whether financial or otherwise, to a person to
support a program authorized by law. It does not include an
award, the primary purpose of which is to procure specified end
products, whether in the form of supplies, services, information
technology, or construction. A contract resulting from such an
award must not be considered a grant but a procurement contract.
(20) 'Invitation for
bids' means a written or published solicitation issued by an
authorized procurement officer for bids to contract for the
procurement or disposal of stated supplies, services,
information technology, or construction, which will ordinarily
result in the award of the contract to the responsible bidder
making the lowest responsive bid.
(21) 'Materials
Management Officer' means the person holding the position as the
head of the materials management office of the State.
(22) Reserved.
(23) 'Political
subdivision' means all counties, municipalities, school
districts, public service or special purpose districts.
(24) 'Procurement'
means buying, purchasing, renting, leasing, or otherwise
acquiring any supplies, services, information technology, or
construction. It also includes all functions that pertain to
the obtaining of any supply, service, or construction, including
description of requirements, selection, and solicitation of
sources, preparation and award of contracts, and all phases of
contract administration.
(25) 'Procurement
officer' means any person duly authorized by the governmental
body, in accordance with procedures prescribed by regulation, to
enter into and administer contracts and make written
determinations and findings with respect thereto. The term also
includes an authorized representative of the governmental body
within the scope of his authority.
(26) 'Purchasing
agency' means any governmental body other than the chief
procurement officers authorized by this code or by way of
delegation from the chief procurement officers to enter into
contracts.
(27) 'Real property'
means any land, all things growing on or attached thereto, and
all improvements made thereto including buildings and structures
located thereon.
(28) 'Request for
proposals (RFP)' means a written or published solicitation
issued by an authorized procurement officer for proposals to
provide supplies, services, information technology, or
construction which ordinarily result in the award of the
contract to the responsible bidder making the proposal
determined to be most advantageous to the State. The award of
the contract must be made on the basis of evaluation factors
that must be stated in the RFP.
(29) 'Services' means
the furnishing of labor, time, or effort by a contractor not
required to deliver a specific end product, other than reports
which are merely incidental to required performance. This term
includes consultant services other than architectural,
engineering, land surveying, construction management, and
related services. This term does not include employment
agreements or services as defined in Section 11-35-310(1)(d).
(30) 'Subcontractor'
means any person having a contract to perform work or render
service to a prime contractor as a part of the prime
contractor's agreement with a governmental body.
(31) 'Supplies' means
all personal property including, but not limited to, equipment,
materials, printing, and insurance.
(32) 'State' means
state government.
(33) 'State Engineer'
means the person holding the position as head of the state
engineer's office.
(34) 'Suspension' means
the disqualification of a person to receive invitations for
bids, requests for proposals, or the award of a contract by the
State, for a temporary period pending the completion of an
investigation and any legal proceedings that may ensue because a
person is suspected upon probable cause of engaging in criminal,
fraudulent, or seriously improper conduct or failure or
inadequacy of performance which may lead to debarment.
(35) 'Term contract'
means contracts established by the chief procurement officer for
specific supplies, services, or information technology for a
specified time and for which it is mandatory that all
governmental bodies procure their requirements during its term.
As provided in the solicitation, if a public procurement unit is
offered the same supplies, services, or information technology
at a price that is at least ten percent less than the term
contract price, it may purchase from the vendor offering the
lower price after first offering the vendor holding the term
contract the option to meet the lower price. The solicitation
used to establish the term contract must specify contract terms
applicable to a purchase from the vendor offering the lower
price. If the vendor holding the term contract meets the lower
price, then the governmental body shall purchase from the
contract vendor. All decisions to purchase from the vendor
offering the lower price must be documented by the procurement
officer in sufficient detail to satisfy the requirements of an
external audit. A term contract may be a multi-term contract as
provided in Section 11-35-2030.
(36) 'Using agency'
means any governmental body of the State which utilizes any
supplies, services, information technology, or construction
purchased under this code.
(37) 'Designated
board division office' and 'designated
board division officer' means the office
or officer designated in accordance with Section
11-35-540(5)."
C. Section 11-35-540 of the 1976 Code is amended to read:
"Section 11-35-540.
(1) Authority to Promulgate
Regulations. Except as otherwise provided in this code, the
board division acting through the Department
of Administration may promulgate regulations, consistent
with this code, governing the procurement, management, control,
and disposal of all supplies, services, information technology,
and construction to be procured by the State. These regulations
are binding in all procurements made by the State.
(2) Nondelegation. The
board division acting through the Department
of Administration may not delegate its power to promulgate
regulations.
(3) Approval of
Operational Procedures. Governmental bodies shall develop
internal operational procedures consistent with this code;
except, that the operational procedures must be approved in
writing by the appropriate chief procurement officer. The
operational procedures must be consistent with this chapter.
Operational procedures adopted pursuant to this chapter are
exempt from the requirements of Section 1-23-140.
(4) The
board division shall consider and decide
matters of policy within the provisions of this code including
those referred to it by the chief procurement officers. The
board has the power to audit and monitor the implementation of
its regulations and the requirements of this code.
(5) For every reference
in this code to a 'designated board
division office', the chief executive officer of the
board division shall designate the
office or other subdivision of the board
division that is responsible for the referenced statutory
role. For every reference in this code to a 'designated
board division officer', the chief
executive officer of the board division
shall designate the board division
officer or other board division position
that is responsible for the referenced statutory role. More
than one office or officer may be designated for any referenced
statutory role. All designations pursuant to this subparagraph
must be submitted in writing to the chief procurement
officers."
D. Section 11-35-1210 of the 1976 Code is amended to read:
"Section 11-35-1210.
(1) Authority. The
board State Contracts and Accountability
Authority may assign differential dollar limits below which
individual governmental bodies may make direct procurements not
under term contracts. The designated board
division office shall review the respective governmental
body's internal procurement operation, shall certify in writing
that it is consistent with the provisions of this code and the
ensuing regulations, and recommend to the board
authority those dollar limits for the respective
governmental body's procurement not under term contract.
(2) Policy.
Authorizations granted by the board
authority to a governmental body are subject to the
following:
(a)
adherence to the provisions of this code and the ensuing
regulations, particularly concerning competitive procurement
methods;
(b)
responsiveness to user needs;
(c)
obtaining of the best prices for value received.
(3) Adherence to
Provisions of the Code. All procurements shall be subject to
all the appropriate provisions of this code, especially
regarding competitive procurement methods and nonrestrictive
specifications.
(4) Subject to
subsection (1), the State Board for Technical and Comprehensive
Education, in coordination with the appropriate Chief
Procurement Officer, may approve a cumulative total of up to
fifty thousand dollars in additional procurement authority for
technical colleges, provided that the designated
board division office makes no material
audit findings concerning procurement. As provided by
regulation, any authority granted pursuant to this paragraph is
effective when certified in writing by the designated
board division office."
E. Section 11-35-1560(C) of the 1976 Code is amended to read:
"(C) A violation
of these regulations by a purchasing agency, upon recommendation
of the designated board office with approval of the majority of
the Budget and Control Board State Contracts
and Accountability Authority (authority), must result in the
temporary suspension, not to exceed one year, of the violating
governmental body's ability to procure supplies, services,
information technology, or construction items pursuant to this
section."
F. Section 11-35-3010(3) of the 1976 Code is amended to read:
"(3) Approval or
Disagreement by State Engineer's Office. The State Engineer's
Office has ten days to review the data submitted by the
governmental body to determine its position with respect to the
particular project delivery method recommended for approval by
the governmental body, and to notify the governmental body of
its decision in writing. If the State Engineer's Office
disagrees with the project delivery method selected, it may
contest it by submitting the matter to the
board Procurement Review Panel for
decision. Written notification by the State Engineer's Office
to the governmental body of its intention to contest the project
delivery method selected must include its reasons. The
board Procurement Review Panel shall
hear the contest at its next regularly scheduled meeting after
notification of the governmental body. If the
board Procurement Review Panel rules in
support of the State Engineer's Office position, the
governmental body shall receive written notification of the
decision. If the board Procurement Review
Panel rules in support of the governmental body, the
governmental body must be notified in writing and by that
writing be authorized to use that project delivery method as
previously recommended by the governmental body on the
particular construction project."
G. Section 11-35-3220(9) of the 1976 Code is amended to read:
"(9) Approval or
Disagreement by State Engineer's Office. The State Engineer's
Office has ten days to review the data submitted by the agency
selection committee, and to determine its position with respect
to the particular person or firm recommended for approval by the
agency. If the State Engineer's Office disagrees with the
proposal, it may contest the proposal by submitting the matter
to the board Procurement Review Panel
for decision. In the event of approval, the State Engineer's
Office shall notify immediately in writing the governmental body
and the person or firm selected of the award and authorize the
governmental body to execute a contract with the selected person
or firm. In the event of disagreement, the State Engineer's
Office immediately shall notify the governmental body in writing
of its intention to contest the ranking and the reasons for it.
All contract negotiations by the governing body must be
suspended pending a decision by the board
Procurement Review Panel concerning a contested ranking.
The board Procurement Review Panel shall
hear contests at its next regularly scheduled meeting after
notification of the governmental body. If the
board Procurement Review Panel rules in
support of the State Engineer's Office position, the
governmental body shall submit the name of another person or
firm to the State Engineer's Office for consideration, selected
in accordance with the procedures prescribed in this section.
If the board Procurement Review Panel
rules in support of the governmental body, the governmental body
must be notified in writing and authorized to execute a contract
with the selected person or firm."
H. Subarticle 3, Article 17, Chapter 35, Title 11 of the 1976 Code is amended to read:
Section 11-35-4410.
(1) There is created the South
Carolina Procurement Review Panel which is charged with the
responsibility to review and determine de novo:
(a)
requests for review of written determinations of the chief
procurement officers pursuant to Sections 11-35-4210(6),
11-35-4220(5), and 11-35-4230(6); and
(b)
requests for review of other written determinations,
decisions, policies, and procedures arising from or concerning
the procurement of supplies, services, information technology,
or construction procured in accordance with the provisions of
this code and the ensuing regulations; except that a matter
which could have been brought before the chief procurement
officers in a timely and appropriate manner pursuant to Sections
11-35-4210, 11-35-4220, or 11-35-4230, but was not, must not be
the subject of review under this paragraph. Requests for review
pursuant to this paragraph must be submitted to the Procurement
Review Panel in writing, setting forth the grounds, within
fifteen days of the date of the written determinations,
decisions, policies, and procedures.
(2) The panel must be
composed of:
(a)
[Reserved]
(b)
[Reserved]
(c)
[Reserved]
(d)
[Reserved]
(e) five members
appointed by the Governor each member of the
State Contracts and Accountability Authority, except for the
Attorney General and the Comptroller General, from the State
at large who must be representative of the professions governed
by this title including, but not limited to:
(i)
goods and services;
(ii)
information technology procurements;
(iii)
construction;
(iv)
architects and engineers;
(v)
construction management; and
(vi)
land surveying services;
(f)(b) two
state employees appointed by the Governor
Attorney General and Comptroller General in their capacity as
members of the State Contracts and Accountability Authority;
and
(c)
in making the appointments pursuant to the
provisions of item (a), the appointing officials shall
coordinate their appointments so that no more than one
appointment shall be representative of a particular profession
listed in item (a).
(3) The panel shall
elect a chairman from the members at large and shall meet as
often as necessary to afford a swift resolution of the
controversies submitted to it. Four members present and voting
shall constitute a quorum. In the case of a tie vote, the
decision of the chief procurement officer is final. At-large
members of the panel must be paid per diem, mileage, and
subsistence as provided by law for members of boards,
commissions, and committees. State employee members must be
reimbursed for meals, lodging, and travel in accordance with
current state allowances.
(4)(a) Notwithstanding
the provisions of Chapter 23, Title 1 or another provision of
law, the Administrative Procedures Act does not apply to
administrative reviews conducted by either a chief procurement
officer or the Procurement Review Panel. The Procurement Review
Panel is vested with the authority to:
(i)
establish its own rules and procedures for the conduct of
its business and the holding of its hearings;
(ii)
issue subpoenas;
(iii)
interview any person it considers necessary; and
(iv)
record all determinations.
(b)
A party aggrieved by a subpoena issued pursuant to this
provision shall apply to the panel for relief.
(5) Within fifteen days
of receiving a grievance filed pursuant to Section
11-35-4210(6), 11-35-4220(5), 11-35-4230(6), or
11-35-4410(1)(b), the chairman shall either convene the review
panel to conduct an administrative review or schedule a hearing
to facilitate its administrative review. Except for grievances
filed pursuant to Section 11-35-4230(6), the review panel shall
record its determination within ten working days and communicate
its decision to those involved in the determination. In matters
designated by the review panel as complex, the review panel
shall record its determination within thirty days.
(6) Notwithstanding
another provision of law, including the Administrative
Procedures Act, the decision of the Procurement Review Panel is
final as to administrative review and may be appealed only to
the circuit court. The standard of review is as provided by the
provisions of the South Carolina Administrative Procedures Act.
The filing of an appeal does not automatically stay a decision
of the panel.
Section 11-35-4420. The appropriate chief procurement officer and an affected governmental body shall have the opportunity to participate fully as a party in a matter pending before the Procurement Review Panel and in an appeal of a decision of the Procurement Review Panel, whether administrative or judicial."
I. The Code Commissioner is directed to change all references in Chapter 35, Title 11 of the 1976 Code, the South Carolina Consolidated Procurement Code, from the "Budget and Control Board", the "State Budget and Control Board" or the "Board" to the "State Contracts and Accountability Authority", the "Department of Administration", or the "Division of Procurement Services" of the "Department of Administration", as appropriate.
SECTION 36. (A)
Notwithstanding any other provision of law, in
addition to the present members of the Charleston Naval Complex
Redevelopment Authority, as created by gubernatorial executive
order pursuant to Section 31-12-40 of the 1976 Code, there shall
be four additional members, two appointed by the Speaker of the
House of Representatives and two appointed by the President Pro
Tempore of the Senate. These four additional members shall each
serve for terms of four years and until their successors are
appointed and qualify. Vacancies shall be filled for the
remainder of the unexpired term by appointment in the same
manner of original appointment.
(B) These four
additional members shall serve as members of the Charleston
Naval Complex Redevelopment Authority with the same powers,
duties, and responsibilities of other such members as provided
by law. In addition, these four members, together with the
gubernatorial appointees to the Charleston Naval Complex
Redevelopment Authority, shall also constitute the Charleston
Navy Base Museum Authority as a division of the Charleston Naval
Redevelopment Authority. Service as a member of the Navy Base
Museum Authority is considered an additional and supplemental
function and duty of those specified members of the Naval
Complex Redevelopment Authority and is not considered another
office of honor or profit of this State. The Navy Base Museum
Authority shall select from among its members a chairman and
such other officers as they consider necessary.
(C) The Naval Base
Museum Authority shall become operative upon the signing of a
Memorandum of Understanding between the RDA and the Hunley
Commission. With respect to the Hunley project, the MOU must
provide for the Naval Base Museum Authority division of the RDA
to undertake and comply with the duties, responsibilities,
powers, and functions of the Hunley Commission as specified in
Sections 54-7-100 and 54-7-110 of the 1976 Code, and as
otherwise provided by law. The Navy Base Museum Authority shall
possess and may exercise all powers and authority granted to the
Hunley Commission by specific statutory reference in Sections
54-7-100 and 54-7-110.
(D) Notwithstanding the
provisions of SECTION 39, the provisions of this section take
effect upon approval by the Governor.
SECTION 37. During the year 2018, the Legislative Audit Council shall conduct a performance review of the provisions of this act to determine its effectiveness and achievements with regard to the more efficient performance of the functions and duties of the various agencies provided for herein and the cost savings and benefits to the State.
SECTION 38. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
SECTION 39. Unless otherwise provided, this act takes effect July 1, 2013. However, beginning on January 1, 2013, the appropriate officials of the executive, legislative and judicial branches involved with the implementation of the provisions of this act including the transfer of divisions, offices and personnel to other agencies, the implementation of new offices or divisions within agencies, and the negotiation and execution of necessary agreements relating to this act such as memorandums of understanding may begin undertaking and executing these responsibilities so that the provisions of this act may be fully implemented on July 1, 2013, with the appropriations contained in the 2013-2014 general appropriations act to the fullest extent possible being reflective of the transfers, realignments and restructuring provided by this act. /
Renumber sections to conform.
Amend title to conform.