South Carolina General Assembly
115th Session, 2003-2004

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Bill 4127

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Indicates New Matter


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Indicates Matter Stricken

Indicates New Matter

COMMITTEE REPORT

April 22, 2004

H. 4127

Introduced by Reps. Wilkins, Harrell, Quinn, Harrison, W.D. Smith, Cotty, Cato, Young, G.R. Smith, Tripp, Leach, Pinson, Koon, Altman, Bingham, Ceips, Chellis, Clark, Davenport, Delleney, Duncan, Edge, Frye, Gilham, Hagood, Hamilton, Haskins, Herbkersman, Hinson, Keegan, Limehouse, Mahaffey, McGee, Merrill, M.A. Pitts, Rice, Sandifer, Scarborough, Skelton, D.C. Smith, G.M. Smith, J.R. Smith and Toole

S. Printed 4/22/04--H.

Read the first time April 30, 2003.

            

THE COMMITTEE ON WAYS AND MEANS

To whom was referred a Bill (H. 4127) to enact the "South Carolina Restructuring Act of 2003" including provisions to amend Section 1-30-10, as amended, Code of Laws of South Carolina, 1976, etc., respectfully

REPORT:

That they have duly and carefully considered the same and recommend that the same do pass with amendment:

Amend the bill, as and if amended, by striking all after the enacting clause and inserting:

/ Part I

Citation

SECTION    1.    This act is known and may be cited as the "South Carolina Restructuring Act of 2004".

Part II

Department of Administration

SECTION    2.    Section 1-30-10(A) of the 1976 Code, as amended by Act 83 of 1995, is further amended by adding at the end:

"20.    Department of Administration"

SECTION    3.    Chapter 30, Title 1 of the 1976 Code is amended by adding:

"Section 1-30-125.    Effective July 1, 2004, the following offices, divisions, or components of the 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):

(1)    Division of General Services Programs of Facilities Management, Business Operations, and Fleet Management;

(2)    Office of Executive Policy and Programs;

(3)    Office of Economic Opportunity;

(4)    Intergovernmental and Community Relations;

(5)    Developmental Disabilities Council;

(6)    Office of Volunteer Services;

(7)    Continuum of Care as established by Section 20-7-5610;

(8)    Children's Foster Care as established by Section 20-7-2379;

(9)    Veterans Affairs as established by Section 25-11-10;

(10)    Commission on Women as established by Section 1-15-10;

(11)    Victims Assistance as established by Article 13, Chapter 3, Title 16;

(12)    Ombudsman as established by Section 16-3-1620; and

(13)    Small and Minority Business as established by Section 11-35-5270."

SECTION    4.    (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, the employees, authorized appropriations, and assets and liabilities of the transferred offices are also transferred to and become part of the Department of Administration. 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, with the same compensation, classification, and grade level, as applicable. The Budget and Control Board shall cause all necessary actions to be taken to accomplish this transfer in accordance with state laws and regulations.

(B)    Regulations promulgated by these transferred offices as they formerly existed under the 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.

(C)    The Code Commissioner is directed to change or correct all references to these offices of the 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. 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. This authority shall not be construed to remove any authority from the Budget and Control Board for approval of statewide policies, procedures, regulations, rates and fees, or specific actions requiring board approval.

Part III

Chief Information Officer

SECTION    5.    Chapter 3, Title 1 of the 1976 Code is amended by adding:

"Article 6

State Chief Information Officer

Section 1-3-300.    It is the intent of the General Assembly to create an instrumentality that provides leadership and direction for the use of information technology within government in South Carolina. The General Assembly recognizes the critical role information technology plays in providing cost-effective and efficient services to the citizens of this State. The General Assembly envisions an enterprise information system that provides an easily accessible, reliable, and accurate information infrastructure to enhance the quality and delivery of services.

Section 1-3-305.    As used in this article:

(1)    'Board' means the Budget and Control Board.

(2)    'Committee' means the Joint Information Technology Review Committee.

(3)    'Division' means the Division of the Office of the State Chief Information Officer.

(4)    'Governmental body' means a state government department, commission, council, board, bureau, committee, institution, agency, government corporation, or other establishment or official of the executive branch. Governmental body excludes the General Assembly or its respective branches or its committees, the Judicial Branch, Legislative Council, the Office of Legislative Printing and Information Technology Resources, the South Carolina Department of Transportation, colleges, universities, technical schools, and all local political subdivisions such as counties, municipalities, school districts, or public service or special purpose districts.

(5)    'Information technology' means electronic data processing goods and services, telecommunications goods and services, information security goods and services, information management, microprocessors, software, information processing, office systems, any services related to the foregoing, and consulting or other services for design or redesign of information technology supporting business processes.

(6)    'Information technology initiative' means an information technology project proposed by a governmental body or governmental bodies that exceeds a total estimated cost established by the Board.

(7)    'Information technology plan' means a document prepared by a governmental body that includes, but is not limited to, the following:

(a)    a statement of the governmental body's mission, goals, and objectives for information technology;

(b)    an explanation of how the governmental body's mission, goals, objectives for information technology support and conform to the statewide strategic plan for information technology and statewide strategic information technology directions, standards, and enterprise architecture;

(c)    a profile of the governmental body's current information technology resources and capabilities, including budget data;

(d)    a description of information technology initiatives underway or proposed by the governmental body;

(e)    a description of new or ongoing information technology projects being, or expected to be, undertaken by the governmental body, including budget data; and

(f)     other information required by law or requested by the division.

(8)    'Business panel' means the Information Technology Business Case Review Panel.

(9)    'Oversight panel' means the Information Technology Architecture Oversight Panel.

Section 1-3-310.    There is created the Division of the Office of the State Chief Information Officer within the Budget and Control Board. The division is under the supervision of the State Chief Information Officer.

Section 1-3-315.    In addition to other responsibilities as the Board may assign, the division shall:

(1)    develop for approval of the Board a coordinated statewide strategic plan for information technology including, but not limited to, statewide strategic information technology directions, standards, and enterprise architecture. The division shall implement, upon Board approval, necessary management processes to ensure that governmental bodies fully comply with the coordinated statewide strategic plan;

(2)    in consultation with the business panel and the oversight panel, develop for the approval of the Board a process for the review and approval of information technology initiatives and plans of governmental bodies. Each governmental body is required to develop an information technology plan and submit the plan to the division for approval. The division may require modification to those plans that do not conform to statewide information technology plans, strategies, and standards;

(3)    develop policies, standards, methodologies, and procedures for the effective management of information technology investments throughout their entire life cycles including, but not limited to, project management, procurement, development, implementation, operation, security, business continuity, performance evaluation, and enhancement or retirement;

(4)    oversee the development of statewide and multiagency information technology projects of governmental bodies as approved by the Board;

(5)    monitor information technology initiatives approved by the Board, the division may modify and suspend any information technology initiative that is not in compliance with statewide strategic plan or has not met the performance measures agreed to by the Board the division, and the sponsoring governmental body. If the division suspends an information technology initiative or project, the governmental body or governmental bodies may seek a review of the suspension by the Board, at its next regularly scheduled meeting. The division and the governmental body or governmental bodies may present information concerning the suspension to the Board. The Board's decision regarding suspension is final. The Board may terminate any information technology initiative upon recommendation of the division;

(6)    plan and forecast future needs for information technology and establish an information clearinghouse that identifies best practices and new developments and contains detailed information regarding the state's previous experiences with the development of information technology initiatives;

(7)    evaluate requests from governmental bodies for exemptions from this chapter and recommend to the Board whether the exemption requests are granted;

(8)    in cooperation with governmental bodies, evaluate the information technology of governmental bodies to determine whether the merger of information technology and related resources is justified by sound business principles including, but not limited to, efficiency, cost effectiveness and cross agency information sharing. If the division determines the merger of the information technology of governmental bodies is appropriate, it shall sponsor an initiative and follow the approval process established under Section 1-3-315(2). The division shall merge any information technology and related resources of governmental bodies only upon approval of the Board;

(9)    provide information technology and telecommunications facilities and services in a manner determined by the Board or as required by law;

(10)    be responsible for compiling a comprehensive inventory of information technology maintained by governmental bodies;

(11)    provide support and subject matter expertise to the Board, the committee, the business panel, and the oversight panel; and

(12)    exercise and perform other powers and duties as granted to it, imposed upon it by law or necessary to carry out the purposes of this article.

Section 1-3-320.    (A)    There is created a joint committee of the General Assembly to be known as the Joint Information Technology Review Committee consisting of ten members. The Chairman of the Senate Finance Committee shall appoint five members, three of whom must be appointed from the Senate Finance Committee and two appointed from the remaining membership of the Senate. The Chairman of the House Ways and Means Committee shall appoint five members, three of whom must be appointed from the House Ways and Means Committee and two appointed from the remaining membership of the House of Representatives. Terms of members of the committee shall correspond to the terms for which they are elected to the General Assembly. The committee shall elect officers of the committee, but individuals elected as officers may succeed themselves if elected to do so.

(B)    The responsibilities of the committee include, but are not limited to, the following:

(1)    review the reports and recommendations from the business panel and the oversight panel on information technology initiatives to determine if the expenditure of funds for the information technology initiatives is justified by sound business and technological principles and standards;

(2)    provide to the Board those information technology initiatives recommended for Board approval;

(3)    recommend to the Board priorities of future information technology initiatives;

(4)    carry out all the above assigned responsibilities in consultation and cooperation with the Board, the division, and the appropriate governmental bodies; and

(5)    report its findings and recommendations to the House Ways and Means Committee and the Senate Finance Committee annually or upon request of these committees.

(C)    The staffs of the General Assembly shall provide assistance as requested by the committee.

Section 1-3-325.    (A)    The State Chief Information Officer shall determine the number and composition of the Information Technology Business Case Review Panel to include representatives from governmental bodies and other entities. In addition to those members appointed by the State Chief Information Officer, the business panel shall include two members from the private sector appointed by the chairman of the Senate Finance Committee and two members from the private sector appointed by the chairman of the House Ways and Means Committee. The panel shall review the information technology initiatives of governmental bodies and advise the State Chief Information Officer on matters relating to the development and implementation of information technology standards, policies, and procedures.

(B)    The responsibilities of the business panel include the following:

(1)    in conjunction with the division, and subject to Board approval, the business panel shall recommend and implement a process to assess if the expenditure of state funds for an information technology initiative is justified by sound business principles. This process must include, but is not limited to, an assessment of the return on investment projection of the information technology initiative and an assessment of if the information technology initiative is redundant with the existing technology of the governmental body proposing the information technology initiative or the existing technology of other governmental bodies; and

(2)    carry out all other responsibilities assigned to it by the Board or the State Chief Information Officer.

(C)    The business panel shall provide a written assessment of the information technology initiative to the committee and the division. In addition to the information contained in subsection (B), this assessment may include the business panel's recommendation as to whether the information technology initiative should be adopted.

(D)    Members serve without compensation, but are allowed the usual per diem and mileage as provided by law for members of boards, commissions, and committees while on official business. Members who are full-time state employees may not receive per diem.

Section http://www.scstatehouse.net/code/t01c003.htm330.    (A)    The State Chief Information Officer shall determine the number and composition of the Information Technology Architecture Oversight Panel to include representatives from governmental bodies and other entities.

(B)    The responsibilities of the oversight panel include:

(1)    in conjunction with the division, and subject to Board approval, to recommend and implement a process to assess if information technology initiative adheres to the coordinated statewide strategic plan for information technology and the information technology plan of the governmental body proposing the information technology initiative, and to assess the technological soundness of the information technology initiative; and

(2)    to advise the State Chief Information Officer on matters relating to the development and implementation of information technology standards, policies, and procedures; and

(3)    to carry out all other responsibilities assigned to it by the Board or the State Chief Information Officer.

(C)    The oversight panel shall provide a written assessment of the information technology initiative to the committee and the division. In addition to the information contained in subsection (B), this assessment may include the oversight panel's recommendation as to whether the information technology initiative should be adopted.

(D)    Members serve without compensation, but are allowed the usual per diem and mileage as provided by law for members of boards, commissions, and committees while on official business. Members who are full-time state employees may not receive per diem.

Section 1-3-335.    There is created an Information Technology Innovation Fund to be administered by the division. The fund must provide incentives to governmental bodies to implement enterprise information technology initiatives and electronic government projects. The fund must encourage governmental bodies to use information technology to improve the delivery of services and reduce costs. The fund must not be used to replace or offset appropriations for recurring technology expenditures and operations. The fund consists of money appropriated through the state budget process, grants, gifts, donations, or other money designated by the division. The division, subject to the approval of the Board, shall develop appropriate procedures for the allocation and distribution of money contained in the fund."

SECTION    6.    Section 11-35-1580(1) of the 1976 Code, as last amended by Act 153 of 1997, is further amended to read:

"(1)    Information Technology Management Office. The Information Technology Management Office shall be is responsible for:

(a)    assessing the need for and use of information technology;

(b)    administering all procurement and contracting activities undertaken for governmental bodies involving information technology in accordance with this chapter; and

(c)(b)    providing for the disposal of all information technology property surplus to the needs of a using agency;.

(d)    evaluating the use and management of information technology;

(e)    operating a comprehensive inventory and accounting reporting system for information technology;

(f)    developing policies and standards for the management of information technology in state government;

(g)    initiating a state plan for the management and use of information technology;

(h)    providing management and technical assistance to state agencies in using information technology; and

(i)        establishing a referral service for state agencies seeking technical assistance or information technology services."

Part IV

Inspector General

SECTION    7.    Title 1 of the 1976 Code is amended by adding:

"CHAPTER 8

State Inspector General

Section 1-8-10.    Effective January 1, 2005, the Office of the State Inspector General is created as a separate division within the South Carolina Department of Administration. The Office of State Inspector General must be headed by a State Inspector General who must be appointed by the Governor, with the advice and consent of the Senate, for a term to be coterminous with that of the Governor. The Inspector General shall serve until his successor is appointed and qualifies. Vacancies must be filled in the manner of original selection. The State Inspector General may be removed from office at the discretion of the Governor by an executive order pursuant to Section 1-3-240(B). The State Inspector General shall supervise the Office of State Inspector General under the direction and control of the Department of Administration and shall exercise other powers and perform other duties as the department requires.

Section 1-8-20.    (A)    For purposes of this chapter, 'executive agency' or 'executive agencies' means any office, agency, or another instrumentality of the executive branch of the state government other than the South Carolina National Guard, and includes state technical schools and state colleges and universities.

(B)    The purpose of the Office of State Inspector General is to:

(1)    deter, detect, prevent, and eradicate fraud, waste, misconduct, and abuse in the programs, operations, and contracting of all government agencies within the executive branch of the state government;

(2)    keep the heads of executive agencies and the Governor fully informed about problems, errors, omissions, misconduct, and deficiencies relating to or arising out of the administration of programs, operations, and contracting in executive agencies;

(3)    provide leadership, coordination, and control over satellite Inspector General offices in designated executive agencies to ensure a coordinated and efficient administration of duties and use of staff.

(C)    Agency or satellite Inspector General offices established in executive agencies must report to and follow the direction of the State Inspector General.

(D)    The state Office of Inspector General and the State Inspector General have no jurisdiction, power, or authority over the South Carolina National Guard, the Inspector General of the South Carolina National Guard, or matters falling under the jurisdiction or cognizance of the Adjutant General or the Inspector General of the South Carolina National Guard or over the legislative and judicial branches of government.

Section 1-8-30.    (A)    It is the duty and responsibility of the State Inspector General to:

(1)    promote integrity and efficiency in executive agencies;

(2)    initiate, supervise, and coordinate investigative activities relating to fraud, waste, misconduct, or abuse in executive agencies;

(3)    recommend policies for and conduct, supervise, and coordinate activities designed to deter, detect, prevent, and eradicate fraud, waste, misconduct, and abuse in executive agencies;

(4)    report expeditiously to and cooperate fully with the Attorney General. Whenever the State Inspector General has reasonable grounds to believe there has been a violation of criminal law or that a civil action should be initiated by the State, the State Inspector General shall immediately refer the matter to the Attorney General and the Budget and Control Board. The Attorney General is responsible for criminal prosecution or civil litigation and may refer matters to the State Grand Jury, a circuit solicitor, or the appropriate agency for criminal prosecution or civil litigation;

(5)    refer matters to the heads of executive agencies whenever the State Inspector General determines that disciplinary or other administrative action is appropriate.

(B)    The Office of Inspector General and the State Inspector General are authorized and directed to take any lawful action that is necessary and proper for the discharge of their duties and responsibilities under this chapter.

Section 1-8-40.    (A)    In addition to the authority otherwise provided in this chapter, the State Inspector General, in carrying out the duties and responsibilities of his office, is authorized to:

(1)    make investigations and reports relating to the administration of the programs and operations of an executive agency as are, in the judgment of the State Inspector General, necessary or desirable. If the State Inspector General determines that a report should be issued, he shall consult with the Attorney General before issuing the report to ensure against an adverse impact on a grand jury proceeding or prosecution being conducted by the Attorney General, a circuit solicitor, or a law enforcement agency;

(2)    request information or assistance necessary for carrying out the duties and responsibilities provided by this chapter from a federal, state, or local government agency or unit thereof;

(3)    require and obtain immediately by written notice from officers and employees of executive agencies and the executive department, to the fullest extent permitted by law, information, documents, reports, answers, records, accounts, papers, and other necessary data and documentary evidence. If deemed necessary and upon approval of the Department of Administration, on a case by case basis, the State Inspector General has subpoena powers;

(4)    have direct and prompt access to the heads of executive agencies when necessary for a purpose pertaining to the performance of functions and responsibilities under this chapter;

(5)    select, appoint, and employ officers and employees necessary for carrying out the functions, powers, and duties of the office. The officers and employees must be employed in accordance with current personnel practices and procedures of the Department of Administration and may be assigned by the State Inspector General to designated executive agencies.

(B)    Upon request of the State Inspector General for information or assistance, executive agencies immediately shall furnish the information and assistance to the State Inspector General or an authorized designee.

(C)    If information or assistance requested is, in the judgment of the State Inspector General, unreasonably refused or not provided, the State Inspector General may report the circumstances to the head of the agency, the Attorney General, and the Department of Administration for appropriate action.

Section 1-8-50.    (A)    The State Inspector General may receive and investigate complaints or information concerning the possible existence of an activity in an executive branch agency constituting a violation of law, rules or regulations, or mismanagement, fraud, waste of funds, abuse of authority, malfeasance, misfeasance, nonfeasance, or a substantial and specific danger to the public health and safety.

(B)    The Office of the State Inspector General is authorized and directed to promulgate regulations to implement the polices and purposes of this chapter including, but not limited to, regulations establishing a hotline for reporting fraud, waste, and abuse and a system of monetary rewards for persons whose reports of fraud, waste, or abuse result in savings to the State, the prevention of loss, or the recovery of money or property owed to or belonging to the State or an executive agency.

(C)    A person may not take or threaten to take action against an employee as a reprisal for making a complaint or disclosing information to the State Inspector General, unless the complaint was made or the information disclosed with the knowledge that it was false or with wilful disregard for its truth or falsity.

(D)    The protections in this chapter for employees who report fraud, waste, misconduct, malfeasance, misfeasance, nonfeasance, or abuse in good faith are in addition and cumulative to protections provided by another law."

PART V

Conforming Amendments

SECTION    8.    A.    Section 1-11-220 of the 1976 Code is 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."

B.     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."

C.     Section 1-11-250 and 1-11-260, both as last amended by Act 311 of 2002; Section 1-11-270(A), as last amended by Act 145 of 1995; Sections 1-11-280 and 1-11-290; Section 1-11-300, as last amended by Act 419 of 1998; Section 1-11-310, as last amended by Act 459 of 1996; Section 1-11-315, as added by Act 449 of 1992; Section 1-11-320; Section 1-11-335, as added by Act 145 of 1995; and Section 1-11-340 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 department 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 South Carolina 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.

(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.

Section 1-11-315.    The State Budget and Control Board South Carolina 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 and the South Carolina 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."

SECTION    9.    A.     Chapter 9, Title 3 of the 1976 Code is amended to read:

"CHAPTER 9

Acquisition And Distribution Of Federal Surplus Property

Section 3-9-10.    (a) The Division of General Services of the State Budget and Control Board South Carolina 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 South Carolina 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."

B.     Sections 10-1-10, 10-1-20, 10-1-30, 10-1-40, and 10-1-50 of the 1976 Code are amended to read:

"Section 10-1-10.    The State Budget and Control Board South Carolina Department of Administration, Division of General Services, 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.

Section 10-1-20.    The State Budget and Control Board department shall report to the General Assembly annually all its acts and doings in the improvement of said grounds, together with an itemized statement of all money expended.

Section 10-1-30.    The Director of the Division of General Services of the State Budget and Control Board South Carolina Department of Administration may authorize the use of the State House lobbies, the State House steps and grounds, and other public buildings and grounds in accordance with regulations promulgated by the board department. The director shall obtain the approval of the Clerk of the Senate before authorizing any use of the Gressette Building and shall obtain the approval of the Clerk of the House of Representatives before authorizing any use of the Blatt Building. The regulations 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 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.

Section 10-1-40.    There is hereby established a committee to be known as the 'State House Committee', consisting of five members of the Senate, appointed by the Lieutenant Governor and five members of the House of Representatives, appointed by the Speaker, whose duties shall be to review all proposals for alterations and/or renovations to the State House. No alterations or renovations shall be undertaken without the approval of this committee.

Section 10-1-50.    The State Budget and Control Board South Carolina Department of Administration is hereby directed to require that all State or Federal agencies to be housed in the new State office building shall pay rent therefor at a square foot rate to be determined by the State Budget and Control Board department, such rent to begin on and continue after July 1, 1965. The revenue derived from the rental paid for space in the said building shall be used by the State Budget and Control Board department to apply to the amortization of the cost of the said building, the new office and laboratory building of the Department of Health, and Environmental Control, the purchase of the Standard Oil building on Gervais Street, the equipment for and renovation of the other State office buildings, and for certain other parcels of land previously bought for the account of the State sinking funds in connection with the building program cited above. The total expenditures for which this program is provided shall not exceed the sum of six million five hundred thousand dollars. The amortization of this debt shall be on the basis of three per cent interest for a period of twenty-five years."

C.     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 South Carolina Department of Administration, whenever it appears that such easements will not materially impair the utility of the property or damage it and, when a consideration is paid therefor, any such amounts shall be placed in the State Treasury to the credit of the institution or agency having control of the property involved."

D.     Section 10-1-160 of the 1976 Code, as last amended by Act 292 of 2000, is further amended to read:

"Section 10-1-160.    (A)    The United States flag and the State flag shall be flown daily, except in rainy weather, from a staff upon the State House, and shall be displayed above the rostrum in the chambers of the House of Representatives and the Senate and in the first floor north foyer of the State House. No other flag shall be displayed in these locations or atop the dome or roof, or within the foyers or common or public areas within the capitol building. The State Budget and Control Board South Carolina Department of Administration shall purchase suitable flags for display at the State House locations and cause them to be displayed, the expense to be borne out of the funds appropriated to it.

(B)    The provisions of this section may only be amended or repealed upon passage of an act which has received a two-thirds vote on the third reading of the bill in each branch of the General Assembly.

(C)    The term 'chambers' of the House or Senate for purposes of this section does not include individual members' offices. The provisions of this section do not prohibit a private individual on the capitol complex grounds from wearing as a part of his clothing or carrying or displaying any type of flag including a Confederate Flag."

E.     Sections 10-1-180 and 10-1-190 of the 1976 Code, both as added by Act 145 of 1995, are amended to read:

"Section 10-1-180.    The expenditure of funds by any state agency, except the Department of Transportation for permanent improvements as defined in the state budget, is subject to approval and regulation of the State Budget and Control Board South Carolina Department of Administration. The board department shall have authority to allot to specific projects from funds made available for such purposes, such amounts as are estimated to cover the respective costs of such projects, to declare the completion of any such projects, and to dispose, according to law, of any unexpended balances of allotments, or appropriations, or funds otherwise provided for such projects, upon the completion thereof. The approval of the Budget and Control Board department is not required for minor construction projects, including renovations and alterations, where the cost does not exceed an amount determined by the Joint Bond Review Committee and the Budget and Control Board department.

All construction, improvement, and renovation of state buildings shall comply with the applicable standards and specifications set forth in each of the following codes: The Standard Building Code, The Standard Existing Building Code, The Standard Gas Code, The Standard Mechanical Code, The Standard Plumbing Code and The Standard Fire Prevention Code, all as adopted by the Southern Building Code Congress International, Inc.; and the National Electrical Code NFPA 70, The National Electrical Safety Code-ANSI-C2, The National Fire Protection Association Standard-NFPA 59, all with the code editions, revision years, and deletions as specified in the Manual For Planning and Execution of State Permanent Improvements. The State Engineer shall determine the enforcement and interpretation of the aforementioned codes and referenced standards on state buildings. Any interested local officials shall coordinate their comments related to state buildings through the State Engineer and shall neither delay construction nor delay or deny water, sewer, power, other utilities, or firefighting services. Agencies may appeal to the Director of Office of the Division of General Services of the Department of Administration regarding the application of these codes to state buildings.

Section 10-1-190.    As part of the approval process relating to trades of state property for nonstate property, the Budget and Control Board South Carolina 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."

F.     Section 10-7-10 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:

"Section 10-7-10.    All insurance on public buildings and on the contents thereof of the State and of all institutions supported in whole or in part by the State shall be carried by the State Budget and Control Board South Carolina Department of Administration. Any building or buildings, and the contents thereof, owned by the Department of Transportation may be insured by the State Budget and Control Board Department of Administration, with the consent or approval of such board department the Department of Administration, or the Department of Transportation shall have the alternative of assuming its own risks."

G.     Section 10-11-10 of the 1976 Code is amended to read:

"Section 10-11-10.    It shall be unlawful for any person, without the permission of the State Budget and Control Board or a member of that Board South Carolina Department of Administration, to enter upon or walk upon the roof of the State House. Any person violating the provisions of this section shall be punished by a fine of not more than one hundred dollars or imprisoned for not more than thirty days on the public works of Richland County for each offense."

H.     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 South Carolina Department of Administration, in cooperation with the Department of Transportation, or to block or impede traffic through the alleys and driveways."

I.     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."

J.     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 South Carolina 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."

K.    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 to grant permission to use the State House grounds for educational, electrical decorations and similar purposes."

L.     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 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 South Carolina Department of Administration 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."

M.     Section 1-10-10 of the 1976 Code, as added by Act 292 of 2000, is amended to read:

"Section 1-10-10.    (A)    As of 12:00 noon on the effective date of this act, and permanently thereafter, the only flags authorized to be flown atop the dome of the State House, in the chambers of the Senate and House of Representatives, and on the grounds of the Capitol Complex shall be as authorized in this section.

The flags authorized to be flown atop the dome of the State House and in the chambers of the Senate and House of Representatives are the United States Flag and the South Carolina State Flag. As of 12:00 noon on the effective date of this act, the flag authorized to be flown at a designated location on the grounds of the Capitol Complex is the South Carolina Infantry Battle Flag of the Confederate States of America [the Battle Flag of the Army of Northern Virginia (General Robert E. Lee's Army) the South Carolina, Georgia, Florida Department version]. This flag must be flown on a flagpole located at a point on the south side of the Confederate Soldier Monument, centered on the monument, ten feet from the base of the monument at a height of thirty feet. The flagpole on which the flag is flown and the area adjacent to the monument and flagpole must be illuminated at night and an appropriate decorative iron fence must be erected around the flagpole.

The South Carolina Infantry Battle Flag of the Confederate States of America is square measuring fifty-two inches on each side, inclusive of the white border, with a St. Andrews Cross of blue, edged with white, with thirteen equal five-pointed stars, upon a red field, with the whole banner bordered in white. The blue arms of the cross are 7.5 inches wide and the white border around the flag proper is 1.5 inches wide. The stars are five-pointed, inscribed within a circle six inches in diameter, and are uniform in size.

From any funds appropriated to the Budget and Control Board South Carolina Department of Administration, the Division of General Services of the Budget and Control Board Department of Administration, or its successor in interest, shall ensure that the flags authorized above shall be placed at all times as directed in this section and shall replace the flags at appropriate intervals as may be necessary due to wear.

(B)    The provisions of this section may only be amended or repealed upon passage of an act which has received a two-thirds vote on the third reading of the bill in each branch of the General Assembly.

(C)    The term 'chambers' of the House or Senate for the purposes of this section does not include individual members' offices. The provisions of this section do not prohibit a private individual on the capitol complex grounds from wearing as a part of his clothing or carrying or displaying any type of flag including a Confederate Flag."

N.     Section 11-9-630 of the 1976 Code is amended to read:

Section 11-9-630.    The State Budget and Control Board South Carolina 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 department 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."

O.     Section 11-35-3240 of the 1976 Code, as last amended by Act 153 of 1997, is further amended to read:

"Section 11-35-3240.    As relates to this code and the ensuing regulations, a 'Manual for Planning and Execution of State Permanent Improvements' shall be published by the board department South Carolina Department of Administration or its designee for use by governmental bodies and included in the regulations of the board department. The manual may be revised as the board department deems necessary."

P.     Sections 11-35-3810, 11-35-3820, 11-35-3830, and 11-35-3840, all as amended by Act 153 of 1997, are further amended to read:

"Section 11-35-3810.     Subject to existing provisions of law, the board department South Carolina 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 thereto, the sale of all state-owned supplies, property, or personal property not in actual public use shall be conducted and directed by the Office Division of General Services of the South Carolina Department of Administration. Such sales shall be held at such places and in such manner as in the judgment of the Office Division of General Services shall be most advantageous to the State. Unless otherwise determined, sales shall be by either public auction or competitive sealed bid to the highest bidder. Each governmental body shall inventory and report to the Office of General Services division all surplus personal property not in actual public use held by that agency for sale. The Office of General Services division shall deposit the proceeds from such sales, less expense of the sales, in the state general fund or as otherwise directed by regulation. This policy and procedure shall apply 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 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 Office Division of General Services of the State Budget and Control Board South Carolina Department of Administration may license for public sale publications and materials pertaining to training programs and information technology products which are developed during the normal course of the Office's Division's activities. Such items shall be licensed at such reasonable costs as are established in accordance with the cost of the items. All proceeds from the sale of the publications and materials shall be placed in a revenue account and expended for the cost of providing such services."

Q.     Section 11-35-4020 of the 1976 Code, as last amended by Act 153 of 1997, is further amended to read:

"Section 11-35-4020.    Governmental bodies approved by the board South Carolina Department of Administration may sell any supplies owned by it after such supplies have become entirely unserviceable and can properly be classified as 'junk', in accordance with procedures established by the Office Division of General Services. All sales of unserviceable supplies by the governmental body shall be made in public to the highest bidder, after advertising for fifteen days, and the funds from such sales shall be credited to the account of the governmental body owning and disposing of such unserviceable supplies."

R.     Section 44-53-530(a) and (b) is amended to read:

"Section 44-53-530.    (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 South Carolina Department of Administration.

(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."

SECTION    10.    A.     Section 58-9-2540(B)(7) of the 1976 Code is amended to read:

"Section 58-9-2540.    (B)(7)    one representative from the office of the Division of Information Resource Management the Office of the Chief Information Officer, State Budget and Control Board; and"

B.     Section 59-150-60(A)(9) of the 1976 Code, as added by Act 59 of 2001, is amended to read:

"Section 59-150-60.    (A)(9)    acquire or lease real property and make improvements on it and acquire by lease or by purchase personal property including, but not limited to, computers; mechanical, electronic, and on-line equipment and terminals; and intangible property including, but not limited to, computer programs, systems, and software. To achieve cost savings and efficiency, the commission shall use the telecommunications network service of the Budget and Control Board's Division of the Office of the Chief Information Resources Officer pursuant to Sections 1-11-430 and 11-35-1580 provided that the service is secure;"

C.     Section 59-150-390 of the 1976 Code, as added by Act 59 of 2001, is amended to read:

Section 59-150-390.    The State Department of Education, in consultation with the Budget and Control Board's Division of the Office of the Chief Information Resources Officer, the State Library, and the Education Television Commission, shall administer primary and secondary technology funding provided for in Section 59-150-350. These funds are intended to provide technology connectivity, hardware, software, and training for the K-12 public schools throughout the State and, to the maximum extent possible, involve public-private sector collaborative efforts. Funds allocated to the local school districts for technology expenditures must be distributed based on the number of students eligible for the free and reduced lunch program in grades 1-3."

SECTION    11.    A.     Section 1-11-20 of the 1976 Code is amended to read:

"Section 1-11-20.    (A)    The functions of the State Budget and Control Board shall 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 such clerical, stenographic and technical employees as may be necessary, to be employed by the respective directors with the approval of the Board. The State Auditor shall be the director of the Finance Division, ex officio, and the directors of the other divisions shall be employed by the State Budget and Control Board for such time and compensation, not greater than the term and compensation for the State Auditor, as shall be fixed by the Board in its judgment.

(B)    Notwithstanding subsection (A), as of July 1, 2004, the Facilities Management, Business Operations, and Fleet Management Programs of the Division of General Services of the Budget and Control Board are transferred to, and incorporated into, the South Carolina Department of Administration.

(C)    Notwithstanding subsection (A), as of July 1, 2004, the Budget and Control Board contains an additional division, known as the Statehouse, Legislative and Judicial Facilities Operations Division, responsible for the day-to-day maintenance , cleaning, and upkeep of the respective facilities. This responsibility does not include grounds, safety, capital improvements, leasing, and other facilities management duties reserved for the Department of Administration."

B.     Section 1-11-435 of the 1976 Code, as added by Act 339 of 2002, 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 Office of the State Chief Information Officer in the Budget and Control Board (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 on-line 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 in the collection of data required for this plan."

C.     Section 2-13-240(a) of the 1976 Code, as last amended by Act 419 of 1998, is further amended by adding at the end:

"(89)    Department of Administration, six."

D.    Section 2-13-240(A)(58) of the 1976 Code, as last amended by Act 419 of 1998, is further amended to read:

"(58)    Budget and Control Board:

(a)    Auditor, six;

(b)    General Services Division, six;

(c)    Personnel Division, one;

(d)    Research and Statistical Services Division, one;

(e)    Retirement System, one.;

(f)     Statehouse, Legislative, and Judicial Facilities Operation Division, one."

PART VI

Time Effective

SECTION    12.    Except as otherwise provided, this act takes effect upon approval by the Governor. /

Renumber sections to conform.

Amend title to conform.

ROBERT W. HARRELL, JR. for Committee.

            

STATEMENT OF ESTIMATED FISCAL IMPACT

ESTIMATED FISCAL IMPACT ON GENERAL FUND EXPENDITURES:

A Cost to the General Fund (See Below)

ESTIMATED FISCAL IMPACT ON FEDERAL & OTHER FUND EXPENDITURES:

See Below

EXPLANATION OF IMPACT:

Part II - Department of Administration

Section 3 identifies the agencies and entities that would become a part of a new Department of Administration. Section 4 designates that all employees, appropriations, assets and liabilities of these offices shall be transferred and become a part of the new Department of Administration. Since neither section introduces new initiatives, it is estimated there would be little or no impact on the General Fund of the State or on federal and/or other funds. Any potential one-time costs associated with consolidation or systems integration are not currently identifiable. In addition, such consolidation and integration may result in some long-term administrative savings.

Part III - State Chief Information Officer - State Budget and Control Board

A review of this bill indicates there will be a total cost of approximately $1.7 million with twenty positions. Of this amount approximately $457,057 million is currently appropriated to the Division of the Chief Information Officer of the State Budget and Control Board. Therefore the additional cost can be estimated to be approximately $1.3 million on the General Fund of the State. The actual impact on general funds and other funds would depend on any potential adjustments to the existing fee structure and/or changes in the level of reimbursable services provided.

The Department of Transportation (DOT) indicates that over the last three years it spent $22 million in federal funds on technology acquisitions and anticipates spending another $8 million in FY 2004-05. DOT states that if those assets or future funds were diverted or transferred to another entity, the Federal Highway Administration may require a refund of its contribution to the assets and could withhold future funding. In addition, DOT states that depreciation on IT equipment represents a portion of administrative costs used as match to obtain federal highway funds. Transferring IT equipment to another entity could result in DOT losing its ability to use these depreciation costs as a portion of its match for the receipt of federal funds. These IT equipment depreciation costs used as match total $1,000,000 annually.

Part IV - Office of State Inspector General - State Budget and Control Board

In order to provide an estimate of the cost involved with an Office of Inspector General, the Office of State Budget (OSB) reviewed those states having such an office including Georgia, Louisiana, and Ohio. In addition, OSB took into consideration the funding and staffing level of the Legislative Audit Council, which may be considered the most comparable existing state entity. The three states reviewed had budgets ranging from between $855,000 and $1.1 million. Staffing levels were as low as five and as high as fourteen. The Legislative Audit Council currently has a budget of $970,000 and sixteen filled positions. The Governor's version of the Appropriation Bill for FY 2004-05 reflects an appropriation of $400,000 with six new positions for an Inspector General's Office. Therefore, although the funding and staffing level for the Office of Inspector General is at the General Assembly's discretion, funding for such an office can be estimated at between $400,000 and $1.1 million. Staffing could be estimated at between five and sixteen employees. However, it should be noted none of the three states reviewed had responsibility for all state schools including K-12, Colleges and Universities.

Recapitulation

Based on the information above creation of a State Chief Information Officer and an Office of State Inspector General would result in an impact on the General Fund of the State of between $1,700,000 and $2,400,000. Some of these additional costs may be offset to the extent there are administrative, support, and/or management savings associated with agency consolidation.

LOCAL GOVERNMENT IMPACT:

Any potential impact on local governments would depend on future actions of the State Chief Information Officer and the Joint Information Technology Review Committee.

SPECIAL NOTES:

Some states have Inspector General Offices within specific functional groups (such as among health and social services agencies) including Kentucky and West Virginia. These states have considerably larger Inspector General staff within these units. Kentucky has a staff of 296 employees with a budget of $19 million within its Health and Social Services functional group. West Virginia has a staff of 100 with a budget of $4.5 million within its Medicaid, TANF and Food Stamps program functional group.

Approved By:

Don Addy

Office of State Budget

A BILL

TO ENACT THE "SOUTH CAROLINA RESTRUCTURING ACT OF 2003" INCLUDING PROVISIONS TO AMEND SECTION 1-30-10, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE AGENCIES OF THE EXECUTIVE BRANCH OF STATE GOVERNMENT BY ADDING THE DEPARTMENT OF ADMINISTRATION; BY ADDING SECTION 1-30-125 SO AS TO ESTABLISH THE DEPARTMENT OF ADMINISTRATION AS AN AGENCY OF THE EXECUTIVE BRANCH OF STATE GOVERNMENT TO BE HEADED BY A DIRECTOR APPOINTED BY THE GOVERNOR UPON THE ADVICE AND CONSENT OF THE SENATE, AND TO TRANSFER TO THIS NEWLY CREATED DEPARTMENT CERTAIN OFFICES AND DIVISIONS OF THE STATE BUDGET AND CONTROL BOARD, OFFICE OF THE GOVERNOR, AND OTHER AGENCIES, AND TO PROVIDE FOR TRANSITIONAL AND OTHER PROVISIONS NECESSARY TO ACCOMPLISH THE ABOVE; BY ADDING ARTICLE 6 TO CHAPTER 3 OF TITLE 1 SO AS TO ESTABLISH THE DIVISION OF THE STATE CHIEF INFORMATION OFFICER TO BE HEADED BY THE STATE CHIEF INFORMATION OFFICER WHO IS APPOINTED BY THE BUDGET AND CONTROL BOARD UPON RECOMMENDATION OF THE GOVERNOR AND TO PROVIDE FOR THE POWERS, DUTIES, AND FUNCTIONS OF THE DEPARTMENT; TO CREATE A JOINT INFORMATION FINANCE COMMITTEE AND THE INFORMATION TECHNOLOGY ARCHITECTURE REVIEW PANEL AND TO PROVIDE FOR THE FUNCTIONS, POWERS, AND RESPONSIBILITIES OF THE COMMITTEE AND PANEL, AND TO AMEND SECTION 11-35-1580, AS AMENDED, RELATING TO INFORMATION TECHNOLOGY PROCUREMENTS, SO AS TO DELETE CERTAIN RESPONSIBILITIES OF THE INFORMATION TECHNOLOGY MANAGEMENT OFFICE; AND BY ADDING CHAPTER 8 TO TITLE 1 SO AS TO CREATE THE OFFICE OF STATE INSPECTOR GENERAL AS A SEPARATE DIVISION WITHIN THE BUDGET AND CONTROL BOARD, TO PROVIDE THAT THE STATE INSPECTOR GENERAL MUST BE NOMINATED BY THE GOVERNOR AND ELECTED UNANIMOUSLY BY THE BUDGET AND CONTROL BOARD FOR A TERM COTERMINOUS WITH THAT OF THE GOVERNOR, TO PROVIDE FOR THE PURPOSE, DUTIES, RESPONSIBILITIES, AND AUTHORITY OF THE STATE INSPECTOR GENERAL, TO PROVIDE A DEFINITION OF "EXECUTIVE AGENCIES" FOR PURPOSES OF THIS CHAPTER, AND TO PROVIDE FOR THE RECEIPT AND INVESTIGATION OF COMPLAINTS RELATING TO IMPROPER OR UNLAWFUL ACTIVITY WITHIN EXECUTIVE AGENCIES OF THE STATE GOVERNMENT.

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

Part I

Citation

SECTION    1.    This act is known and may be cited as the "South Carolina Restructuring Act of 2003".

Part II

Department of Administration

SECTION    2.    Section 1-30-10(A)    of the 1976 Code, as amended by Act 83 of 1995, is further amended by adding at the end:

"20.    Department of Administration"

SECTION    3.    Chapter 30, Title 1 of the 1976 Code is amended by adding:

"Section 1-30-125.    (A)    Effective July 1, 2003, the following offices, divisions, or components of the State Budget and Control Board, Office of the Governor, or other agencies are transferred to, and incorporated in the Department of Administration, which shall be 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):

(1)    Office of General Services,` excluding the Capital Improvements and Planning Division of the Office of State Building and Property Services;

(2)    One-half of the Office of Executive Director;

(3)    One-half of the Office of Internal Operations;

(4)    Office of Executive Policy and Programs;

(5)    Office of Economic Opportunity;

(6)    Intergovernmental and Community Relations;

(7)    Developmental Disabilities Council;

(8)    Office of Volunteer Services;

(9)    Continuum of Care as established by Section 20-7-5610;

(10)    Children's Foster Care as established by Section 20-7-2379;

(11)    Guardian Ad Litem as established by Section 20-7-121;

(12)    Veterans Affairs as established by Section 25-11-10;

(13)    Commission on Women as established by Section 1-15-10;

(14)    Victims Assistance as established by Article 13, Chapter 3, Title 16;

(15)    Ombudsman as established by Section 16-3-1620;

(16)    Small and Minority Business as established by Section 11-35-5270;

(17)    Second Injury Fund as established by Section 42-7-310;

(18)    Workers' Compensation Fund as established by Section 42-3-10;

(19)    Patients Compensation Fund as established by Section 38-79-420; and

(20)    Joint Underwriting Association as established by Chapter 83 of Title 38.

(B)    The Budget and Control Board shall develop and adopt a plan to specify which components and personnel of the Office of Executive Director and Office of Internal Operations shall be transferred to and become part of the Department of Administration. This authority is ministerial in nature and shall not be construed as giving to the board the right to disapprove the transfer of one-half of such offices to the newly created Department of Administration."

SECTION    4.    (A)    Where the provisions of this act transfer offices, or portions thereof, of the Budget and Control Board, Office of the Governor, or other agencies to the new Department of Administration, the employees, authorized appropriations, and assets and liabilities of the transferred offices are also transferred to and become part of the Department of Administration. 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, with the same compensation, classification, and grade level, as applicable. The Budget and Control Board, upon concurrence of the Office of the Governor, shall cause all necessary actions to be taken to accomplish this transfer in accordance with state laws and regulations.

(B)    Regulations promulgated by these transferred offices as they formerly existed under the 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.

(C)    The Code Commissioner is directed to change or correct all references to these offices of the 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. 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. This authority shall not be construed to remove any authority from the Budget and Control Board for approval of statewide policies, procedures, regulations, rates and fees, or specific actions requiring board approval.

Part III

Chief Information Officer

SECTION    5.    Chapter 3, Title 1 of the 1976 Code is amended by adding:

"Article 6

State Chief Information Officer

Section 1-3-300.    It is the intent of the General Assembly to create an instrumentality that provides leadership and direction for the use of information technology within government in South Carolina. The General Assembly recognizes the critical role information technology plays in providing cost-effective and efficient services to the citizens of this State. The General Assembly envisions an enterprise information system that provides an easily accessible, reliable, and accurate information infrastructure to enhance the quality and delivery of services.

Section 1-3-305    As used in this article:

(1)    'Board' means the State Budget and Control Board.

(2)    'Committee' means the Joint Information Technology Review Committee.

(3)    'Division' means the Division of the State Chief Information Officer.

(4)    '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 branch. Governmental body excludes the General Assembly or its respective branches or its committees, the Judicial Branch, Legislative Council, the Office of Legislative Printing and Information Technology Resources, and all local political subdivisions such as counties, municipalities, school districts, or public service or special purpose districts.

(5)    'Information technology' means electronic data processing goods and services, telecommunications goods and services, information security goods and services, information management, microprocessors, software, information processing, office systems, any services related to the foregoing, and consulting or other services for design or redesign of information technology supporting business processes.

(6)    'Information technology initiative' means an information technology project proposed by a governmental body or governmental bodies that exceeds a total estimated cost established by the board.

(7)    'Panel' means the Information Technology Architecture Review Panel.

Section 1-3-310.    There is created the Division of the State Chief Information Officer within the State Budget and Control Board. The division is under the supervision of the State Chief Information Officer who must be appointed by the Budget and Control Board upon recommendation of the Governor. The State Chief Information Officer serves at the pleasure of the State Budget and Control Board.

Section 1-3-315.    (A)    There is created a joint committee of the General Assembly to be known as the Joint Information Technology Review Committee consisting of ten members. The chairman of the Senate Finance Committee shall appoint five members, three of whom must be appointed from the Senate Finance Committee and two appointed from the remaining membership of the Senate. The chairman of the House Ways and Means Committee shall appoint five members, three of whom must be appointed from the House Ways and Means Committee and two appointed from the remaining membership of the House of Representatives. Terms of members of the committee shall correspond to the terms for which they are elected to the General Assembly. The committee shall elect officers of the committee, but individuals elected as officers may succeed themselves if elected to do so.

(B)    The responsibilities of the committee include, but are not limited to, the following:

(1)    review information technology initiatives to determine whether the expenditure of funds for the information technology initiatives is justified by sound business and technological principles and standards;

(2)    recommend to the board which information technology initiatives should be approved by the board;

(3)    recommend to the board priorities of future information technology initiatives;

(4)    carry out all the above assigned responsibilities in consultation and cooperation with the board, the division, and the appropriate governmental bodies; and

(5)    report its findings and recommendations to the House Ways and Means Committee and the Senate Finance Committee annually or upon request of these committees.

Section 1-3-320.    (A)    The State Chief Information Officer shall determine the number and composition of the Information Technology Architecture Review Panel to include representatives from governmental bodies and other entities. The panel shall review the information technology initiatives of governmental bodies and advise the State Chief Information Officer on matters relating to the development and implementation of information technology standards, policies, and procedures.

(B)    Members serve without compensation, but are allowed the usual per diem and mileage as provided by law for members of boards, commissions, and committees while on official business. Members who are full-time state employees may not receive per diem.

(C)    The responsibilities of the panel include the following:

(1)    assess each information technology initiative to determine whether it adheres to the coordinated statewide strategic plan for information technology, statewide strategic information technology directions, standards, and enterprise architecture and the information technology plan of the governmental body proposing the information technology initiative;

(2)    assess the technological soundness of the information technology initiative;

(3)    assess whether the information technology initiative is redundant with the existing technology of the governmental body proposing the information technology initiative or the existing technology of other governmental bodies; and

(4)    carry out responsibilities assigned to it by the board or the State Chief Information Officer.

(D)    The panel shall provide a written assessment of each information technology initiative to the committee and the division. In addition to the information contained in subsection (C), this assessment may include the panel's recommendation as to whether the information technology initiative must be adopted.

Section 1-3-325.    In addition to other responsibilities as the board may assign, the division shall:

(1)    develop for approval of the board a coordinated statewide strategic plan for information technology and statewide strategic information technology directions, standards, and enterprise architecture. The division shall implement necessary management processes to ensure that governmental bodies fully comply with the coordinated statewide strategic plan for information technology and statewide strategic information technology directions, standards, and enterprise architecture;

(2)    develop for the approval of the board an approval process for the information technology plans of governmental bodies. Each governmental body is required to develop an information technology plan and submit the plan to the division for approval. The division may require modification to those plans that do not conform to statewide information technology plans, strategies, and standards;

(3)    develop policies, standards, methodologies, and procedures for the effective management of information technology investments throughout their entire life cycles including, but not limited to, project definition, procurement, development, implementation, operation, performance evaluation, and enhancement or retirement;

(4)    review information technology initiatives to determine whether the initiatives are justified by sound business principles. This review must be done in consultation with the governmental body sponsoring the information technology initiative and may include an evaluation of the return on investment projection of the information technology initiative and any other information the division considers appropriate;

(5)    monitor information technology initiatives approved by the board. The division may modify and suspend any information technology initiative that is not in compliance with statewide information technology plans, strategies, and standards or has not met the performance measures agreed to by the board, the division, and the sponsoring governmental body. The board may terminate any information technology initiative upon recommendation of the division;

(6)    evaluate requests from governmental bodies for exemptions from this chapter and recommend to the board whether the exemption requests are granted;

(7)    evaluate the information technology of governmental bodies and combine, upon board approval, such information technology and related resources when the division determines it is advisable from the standpoint of efficiency and cost effectiveness;

(8)    plan and forecast future needs for information technology and establish an information clearinghouse that identifies best practices and new developments and contains detailed information regarding the state's previous experiences with the development of information technology initiatives;

(9)    provide support and subject matter expertise to the board, the committee, and the panel; and

(10)    provide information technology and telecommunications facilities and services in a manner determined by the board or as required by law.

Section 1-3-330.    There is created an Information Technology Innovation Fund to be administered by the division. The fund must provide incentives to governmental bodies to implement enterprise information technology initiatives and electronic government projects. The fund must encourage governmental bodies to use information technology to improve the delivery of services and reduce costs. The fund must not be used to replace or offset appropriations for on-going technology expenditures and operations. The fund consists of money appropriated through the state budget process, grants, gifts, donations, or other money designated by the division. The division, subject to the approval of the board, shall develop appropriate procedures for the allocation and distribution of money contained in the fund."

SECTION    6.    Section 11-35-1580(1) of the 1976 Code, as last amended by Act 153 of 1997, is further amended to read:

"(1)    Information Technology Management Office. The Information Technology Management Office shall be is responsible for:

(a)    assessing the need for and use of information technology;

(b)    administering all procurement and contracting activities undertaken for governmental bodies involving information technology in accordance with this chapter; and

(c)(b)    providing for the disposal of all information technology property surplus to the needs of a using agency;.

(d)    evaluating the use and management of information technology;

(e)    operating a comprehensive inventory and accounting reporting system for information technology;

(f)    developing policies and standards for the management of information technology in state government;

(g)    initiating a state plan for the management and use of information technology;

(h)    providing management and technical assistance to state agencies in using information technology; and

(i)        establishing a referral service for state agencies seeking technical assistance or information technology services."

Part IV

Inspector General

SECTION    7.    Title 1 of the 1976 Code is amended by adding:

"CHAPTER 8

State Inspector General

Section 1-8-10.    The Office of the State Inspector General is created as a separate division within the Budget and Control Board. The Office of State Inspector General must be headed by a State Inspector General who must be nominated by the Governor and elected unanimously by the Budget and Control Board for a term to be coterminous with that of the Governor. The Inspector General shall serve until his successor is appointed and qualifies. Vacancies must be filled in the manner of original selection. The State Inspector General must be removed from office only for incapacity, misconduct, or neglect of duty, in the manner provided by law for the removal of officers when no mode of trial or removal is provided in the Constitution. The State Inspector General shall supervise the Office of State Inspector General under the direction and control of the Budget and Control Board and shall exercise other powers and perform other duties as the board requires.

Section 1-8-20.    (A)    For purposes of this chapter, 'executive agency' or 'executive agencies' means any office, agency, or another instrumentality of the executive branch of the state government other than the South Carolina National Guard, and includes state technical schools and state colleges and universities.

(B)    The purpose of the Office of State Inspector General is to:

(1)    deter, detect, prevent, and eradicate fraud, waste, misconduct, and abuse in the programs, operations, and contracting of all government agencies within the executive branch of the state government;

(2)    keep the heads of executive agencies and the Governor fully informed about problems, errors, omissions, misconduct, and deficiencies relating to or arising out of the administration of programs, operations, and contracting in executive agencies;

(3)    provide leadership, coordination, and control over satellite Inspector General offices in designated executive agencies to ensure a coordinated and efficient administration of duties and use of staff.

(C)    Agency or satellite Inspector General offices established in executive agencies must report to and follow the direction of the State Inspector General.

(D)    The state Office of Inspector General and the State Inspector General have no jurisdiction, power, or authority over the South Carolina National Guard, the Inspector General of the South Carolina National Guard, or matters falling under the jurisdiction or cognizance of the Adjutant General or the Inspector General of the South Carolina National Guard.

Section 1-8-30.    (A)    It is the duty and responsibility of the State Inspector General to:

(1)    initiate, supervise, and coordinate investigative activities relating to fraud, waste, misconduct, or abuse in executive agencies;

(2)    recommend policies for and conduct, supervise, and coordinate activities designed to deter, detect, prevent, and eradicate fraud, waste, misconduct, and abuse in executive agencies;

(3)    report expeditiously to and cooperate fully with the Attorney General. Whenever the State Inspector General has reasonable grounds to believe there has been a violation of criminal law or that a civil action should be initiated by the State, the State Inspector General shall immediately refer the matter to the Attorney General and the Budget and Control Board. The Attorney General is responsible for criminal prosecution or civil litigation and may refer matters to the State Grand Jury, a circuit solicitor, or the appropriate agency for criminal prosecution or civil litigation;

(4)    refer matters to the heads of executive agencies whenever the State Inspector General determines that disciplinary or other administrative action is appropriate.

(B)    The Office of Inspector General and the State Inspector General are authorized and directed to take any lawful action that is necessary and proper for the discharge of their duties and responsibilities under this chapter.

Section 1-8-40.    (A)    In addition to the authority otherwise provided in this chapter, the State Inspector General, in carrying out the duties and responsibilities of his office, is authorized to:

(1)    make investigations and reports relating to the administration of the programs and operations of an executive agency as are, in the judgment of the State Inspector General, necessary or desirable. If the State Inspector General determines that a report should be issued, he shall consult with the Attorney General before issuing the report to ensure against an adverse impact on a grand jury proceeding or prosecution being conducted by the Attorney General, a circuit solicitor, or a law enforcement agency;

(2)    request information or assistance necessary for carrying out the duties and responsibilities provided by this chapter from a federal, state, or local government agency or unit thereof;

(3)    require and obtain immediately by written notice from officers and employees of executive agencies and the executive department, to the fullest extent permitted by law, information, documents, reports, answers, records, accounts, papers, and other necessary data and documentary evidence. If deemed necessary and upon approval of the Budget and Control Board, the State Inspector General shall have subpoena powers;

(4)    have direct and prompt access to the heads of executive agencies when necessary for a purpose pertaining to the performance of functions and responsibilities under this chapter;

(5)    select, appoint, and employ officers and employees necessary for carrying out the functions, powers, and duties of the office. The officers and employees must be employed in accordance with current personnel practices and procedures of the Budget and Control Board and may be assigned by the State Inspector General to designated executive agencies.

(B)    Upon request of the State Inspector General for information or assistance, executive agencies shall immediately furnish the information and assistance to the State Inspector General or an authorized designee.

(C)    If information or assistance requested is, in the judgment of the State Inspector General, unreasonably refused or not provided, the State Inspector General may report the circumstances to the head of the agency, the Attorney General, and the Budget and Control Board for appropriate action.

Section 1-8-50.    (A)    The State Inspector General may receive and investigate complaints or information concerning the possible existence of an activity in an executive branch agency constituting a violation of law, rules or regulations, or mismanagement, fraud, waste of funds, abuse of authority, malfeasance, misfeasance, nonfeasance, or a substantial and specific danger to the public health and safety.

(B)    The Office of the State Inspector General is authorized and directed to promulgate regulations to implement the polices and purposes of this chapter including, but not limited to, regulations establishing a hotline for reporting fraud, waste, and abuse and a system of monetary rewards for persons whose reports of fraud, waste, or abuse result in savings to the State, the prevention of loss, or the recovery of money or property owed to or belonging to the State or an executive agency.

(C)    No person may take or threaten to take action against an employee as a reprisal for making a complaint or disclosing information to the State Inspector General, unless the complaint was made or the information disclosed with the knowledge that it was false or with wilful disregard for its truth or falsity.

(D)    The protections in this chapter for employees who report fraud, waste, misconduct, malfeasance, misfeasance, nonfeasance, or abuse in good faith are in addition and cumulative to protections provided by another law."

Part V

Time Effective

SECTION    8.    Except as otherwise provided, this act takes effect upon approval by the Governor.

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