South Carolina General Assembly
117th Session, 2007-2008

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H. 4198

STATUS INFORMATION

General Bill
Sponsors: Reps. Lucas, Thompson, Simrill, Stavrinakis, Delleney and G.M. Smith
Document Path: l:\council\bills\swb\5329cm07.doc

Introduced in the House on May 31, 2007
Currently residing in the House Committee on Ways and Means

Summary: Department of Transportation

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
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   5/31/2007  House   Introduced and read first time HJ-11
   5/31/2007  House   Referred to Committee on Ways and Means HJ-14

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

5/31/2007

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO AMEND SECTION 1-30-10, RELATING TO THE DEPARTMENTS OF STATE GOVERNMENT AND THEIR GOVERNING BODIES, SO AS TO PROVIDE FOR THE GOVERNING STRUCTURE OF THE DEPARTMENT OF TRANSPORTATION; TO AMEND SECTION 8-13-1110, AS AMENDED, RELATING TO PUBLIC OFFICIALS WHO MUST FILE A STATEMENT OF ECONOMIC INTEREST, SO AS TO PROVIDE THAT THE DEPARTMENT OF TRANSPORTATION DISTRICT ENGINEERS MUST FILE A STATEMENT OF ECONOMIC INTEREST; TO AMEND SECTION 11-11-150, AS AMENDED, RELATING TO CALCULATING ESTIMATED STATE AND CORPORATE INCOME TAX REVENUES, AND THE TRUST FUND FOR TAX RELIEF, SO AS TO PROVIDE THAT FORTY MILLION DOLLARS IN GENERAL FUND REVENUE COLLECTED DURING CERTAIN FISCAL YEARS MUST BE CREDITED TO THE DEPARTMENT OF TRANSPORTATION AND DISTRIBUTED PURSUANT TO SECTION 57-11-410; TO AMEND SECTION 11-35-710, AS AMENDED, RELATING TO GOVERNMENTAL ENTITIES EXEMPTED FROM PURCHASING ITEMS THROUGH THE CHIEF PROCUREMENT OFFICER, SO AS TO REVISE THE LIST OF DEPARTMENT OF TRANSPORTATION PROJECTS THAT ARE SUBJECT TO THIS PROVISION, AND TO GRANT EXEMPTIONS TO COUNTY TRANSPORTATION COMMITTEES, COUNCILS ON GOVERNMENTS, AND THE SOUTH CAROLINA TRANSPORT INFRASTRUCTURE BANK; TO AMEND SECTION 11-35-1230, AS AMENDED, RELATING TO THE AUDITING OF STATE PROCUREMENTS, SO AS TO PROVIDE THAT PROCUREMENT AUDITS SHALL VERIFY THAT PROCUREMENT CODE EXEMPTIONS GRANTED TO THE DEPARTMENT OF TRANSPORTATION ARE VALID; TO AMEND SECTION 57-1-10, RELATING TO DEFINITION OF TERMS THAT RELATE TO THE STATE'S MOTOR VEHICLE LAWS, SO AS TO DELETE THE TERM "DIRECTOR" AND REPLACE IT WITH THE TERM "SECRETARY OF TRANSPORTATION", TO DELETE THE TERM "COMMISSION" AND ITS DEFINITION, AND TO PROVIDE A DEFINITION FOR THE TERM "HIGHWAY ENGINEERING DISTRICT"; TO AMEND SECTION 57-1-20, RELATING TO THE ESTABLISHMENT OF THE DEPARTMENT OF TRANSPORTATION, SO AS TO ESTABLISH A DIVISION OF HUMAN RESOURCES AND AN INTERNAL AUDIT DIVISION WITHIN THE DEPARTMENT; TO AMEND SECTION 57-1-350, RELATING TO THE DEPARTMENT OF TRANSPORTATION COMMISSION'S SEAL, RULES, PROCEDURES, AND REIMBURSEMENT FOR EXPENSES, SO AS TO DELETE THE PROVISIONS THAT RELATE COMPENSATION PAID TO THE COMMISSIONERS AND TO SUBSTITUTE THE TERM "DEPARTMENT" FOR THE TERM "COMMISSION" IN THE PROVISIONS THAT RELATE TO THE USE OF THE DEPARTMENT'S SEAL AND THE ADOPTION OF RULES AND PROCEDURES; TO AMEND SECTION 57-3-20, RELATING TO THE RESPONSIBILITIES AND DUTIES OF THE DEPARTMENT OF TRANSPORTATION'S DIVISION DEPUTY DIRECTORS, SO AS TO ESTABLISH THE RESPONSIBILITIES FOR THE DIVISION DEPUTY DIRECTORS FOR HUMAN RESOURCES AND INTERNAL AUDITS; BY ADDING ARTICLE 5 TO CHAPTER 11, TITLE 57 SO AS TO PROVIDE FOR THE DISTRIBUTION OF FUNDS THAT THE DEPARTMENT OF TRANSPORTATION RECEIVES PURSUANT TO SECTION 11-11-150; BY ADDING SECTION 1-30-12 SO AS TO PROVIDE THAT THE DIVISION OF OMBUDSMAN AND CITIZENS' SERVICES SHALL EMPLOY TWO PERSONS TO HANDLE CITIZENS' COMPLAINTS THAT PERTAIN TO THE DEPARTMENT OF TRANSPORTATION; TO AMEND SECTION 1-30-105, RELATING TO THE ESTABLISHMENT OF THE DEPARTMENT OF TRANSPORTATION, SO AS TO PROVIDE THAT AFTER JULY 1, 2007, THE GOVERNING AUTHORITY OF THE DEPARTMENT IS THE SECRETARY OF TRANSPORTATION; TO AMEND SECTION 11-43-140, RELATING TO THE TRANSPORTATION INFRASTRUCTURE BANK, SO AS TO SUBSTITUTE THE TERM "SECRETARY OF TRANSPORTATION" FOR THE TERM "CHAIRMAN OF THE DEPARTMENT OF TRANSPORTATION COMMISSION"; TO AMEND SECTION 57-1-40, RELATING TO ACTS THAT MAY NOT BE COMMITTED BY EMPLOYEES OF THE DEPARTMENT OF TRANSPORTATION, SO AS TO DELETE THE TERM "MEMBER OF THE COMMISSION"; TO AMEND SECTION 57-1-410, RELATING TO THE EMPLOYMENT OF A DIRECTOR BY THE DEPARTMENT OF TRANSPORTATION COMMISSION, SO AS TO PROVIDE THAT THE GOVERNOR SHALL EMPLOY A SECRETARY OF TRANSPORTATION, AND TO DELETE THE PROVISION THAT PROVIDES THAT THE DEPARTMENT'S COMMISSION SHALL EMPLOY A DIRECTOR; TO AMEND SECTION 57-1-430, RELATING TO THE DUTIES AND POWERS OF THE DEPARTMENT OF TRANSPORTATION'S DIRECTOR, SO AS TO SUBSTITUTE THE TERM "SECRETARY OF TRANSPORTATION" FOR THE TERM "DIRECTOR" AND THE TERM "DEPARTMENT" FOR THE TERM "COMMISSION", AND TO DELETE THE PROVISION THAT PROVIDES FOR THE DUTIES OF THE DEPARTMENT OF TRANSPORTATION COMMISSION; TO AMEND SECTIONS 57-1-440 AND 57-1-450, RELATING TO EMPLOYMENT OF CERTAIN PERSONS BY THE DEPARTMENT OF TRANSPORTATION'S DIRECTOR, SO AS TO SUBSTITUTE THE TERM "SECRETARY OF TRANSPORTATION" FOR THE TERM "DIRECTOR"; TO AMEND SECTION 57-1-490, RELATING TO CERTAIN AUDITS THAT MUST BE PERFORMED BY THE DEPARTMENT OF TRANSPORTATION, SO AS TO PROVIDE THAT THE LEGISLATIVE AUDIT COUNCIL SHALL CONDUCT CERTAIN ANNUAL AUDITS OF THE DEPARTMENT; TO AMEND SECTIONS 57-3-10 AND 57-3-50, RELATING TO THE DIVISIONS OF THE DEPARTMENT OF TRANSPORTATION, AND THE ESTABLISHMENT OF HIGHWAY DISTRICTS, SO AS TO SUBSTITUTE THE TERM "DEPARTMENT" FOR THE TERM "COMMISSION"; TO AMEND SECTION 57-11-20, AS AMENDED, RELATING TO STATE AND FEDERAL AID HIGHWAY FUNDS, SO AS TO PROVIDE THAT AFTER JUNE 30, 2008, THE GENERAL ASSEMBLY SHALL APPROPRIATE REVENUES TO BOTH FUNDS; TO REPEAL SECTIONS 57-1-310, 57-1-320, 57-1-325, AND 57-1-330 RELATING TO THE CREATION OF THE DEPARTMENT OF TRANSPORTATION DISTRICTS, ELECTION OF THE DEPARTMENT OF TRANSPORTATION COMMISSIONERS WHEN A COUNTY IS DIVIDED AMONG MORE THAN ONE DEPARTMENT OF TRANSPORTATION DISTRICT, AND TO THE MEETING OF THE VARIOUS LEGISLATIVE DELEGATIONS TO ELECT THE DEPARTMENT OF TRANSPORTATION COMMISSIONERS; AND TO PROVIDE THE CODE COMMISSIONER WITH AUTHORITY TO MAKE CERTAIN TECHNICAL CHANGES.

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

SECTION    1.    Section 1-30-10(B) of the 1976 Code is amended to read:

"(B)    (1)    The governing authority of each department shall be is either:

( i)    a director, and in the case of the Department of Commerce, the secretary, who must be appointed by the Governor with the advice and consent of the Senate, subject to removal from office by the Governor pursuant to provisions of Section 1-3-240; or,

( ii)    a seven member board to be appointed and constituted in a manner provided for by law; or,

(iii)    in the case of the Department of Agriculture and the Department of Education, the State Commissioner of Agriculture and the State Superintendent of Education, respectively, elected to office under the Constitution of this State.;or

(iv)    in the case of the Department of Transportation, the secretary, who must be appointed by and serve at the pleasure of the Governor."

SECTION    2.    Section 8-13-1110(B) of the 1976 Code, as last amended by Act 6 of 1995, is further amended to read:

"(B)    Each of the following public officials, public members, and public employees must file a statement of economic interests with the appropriate supervisory office, unless otherwise provided:

(1)    a person appointed to fill the unexpired term of an elective office;

(2)    a salaried member of a state board, commission, or agency;

(3)    the chief administrative official or employee and the deputy or assistant administrative official or employee or director of a division, institution, or facility of any agency or department of state government;

(4)    the city administrator, city manager, or chief municipal administrative official or employee, by whatever title;

(5)    the county manager, county administrator, county supervisor, or chief county administrative official or employee, by whatever title;

(6)    the chief administrative official or employee of each political subdivision including, but not limited to, school districts, libraries, regional planning councils, airport commissions, hospitals, community action agencies, water and sewer districts, and development commissions;

(7)    a school district and county superintendent of education;

(8)    a school district board member and a county board of education member;

(9)    the chief finance official or employee and the chief purchasing official or employee of each agency, institution, or facility of state government, and of each county, municipality, or other political subdivision including, but not limited to, those named in item (6);

(10)    a public official;

(11)    a public member who serves on a state board, commission, or council. ; and

(12)    Department of Transportation District Engineers."

SECTION    3.    Section 11-11-150 of the 1976 Code, as last amended by Part 1, Section 4A of Act 388 of 2006, is further amended by adding at the end:

"(H)    In calculating estimated state individual and corporate income tax revenues for a fiscal year, the Board of Economic Advisors shall deduct the following amounts that must be credited to the Department of Transportation and distributed pursuant to Section 57-11-410:

Fiscal Year 2007-2008        $40,000,000

Fiscal Year 2008-2009        $80,000,000

Fiscal Year 2009-2010        $120,000,000

Fiscal Year 2010-2011        $160,000,000

Fiscal Year 2011-2012 and thereafter $200,000,000."

SECTION    4.    Section 11-35-710 of the 1976 Code, as last amended by Act 376 of 2006, is further amended to read:

"Section 11-35-710.    The board, upon the recommendation of the designated board office, may exempt governmental bodies from purchasing certain items through the respective chief procurement officer's area of responsibility. The board may exempt specific supplies, services, information technology, or construction from the purchasing procedures required in this chapter and for just cause by unanimous written decision limit or may withdraw exemptions provided for in this section. The following exemptions are granted from this chapter:

(1)    the construction, maintenance, and repair of bridges, highways, and roads; vehicle and road equipment maintenance and repair; and other emergency-type parts or equipment utilized by the Department of Transportation or the Department of Public Safety;

(2)    the purchase of raw materials by the South Carolina Department of Corrections, Division of Prison Industries;

(3)    South Carolina State Ports Authority;

(4)    Division of Public Railways of the Department of Commerce;

(5)    South Carolina Public Service Authority;

(6)    expenditure of funds at state institutions of higher learning derived wholly from athletic or other student contests, from the activities of student organizations, and from the operation of canteens and bookstores, except as the funds are used for the procurement of construction, architect-engineer, construction-management, and land surveying services;

(7)    livestock, feed, and veterinary supplies;

(8)    articles for commercial sale by all governmental bodies;

(9)    fresh fruits, vegetables, meats, fish, milk, and eggs;

(10)    South Carolina Arts Commission and South Carolina Museum Commission for the purchase of one-of-a-kind items such as paintings, antiques, sculpture, and similar objects. Before a governmental body procures the objects, the head of the purchasing agency shall prepare a written determination specifying the need for the objects and the benefits to the State. The South Carolina Arts Commission shall review the determination and forward a recommendation to the board for approval;

(11)    published books, periodicals, and technical pamphlets;

(12)    South Carolina Research Authority;

(13)    the purchase of supplies, services, or information technology by state offices, departments, institutions, agencies, boards, and commissions or the political subdivisions of this State from the South Carolina Department of Corrections, Division of Prison Industries;

(14)    Medical University Hospital Authority, if the Medical University Hospital Authority has promulgated a procurement process in accordance with its enabling provision.;

(15)    the construction, maintenance, and repair of bridges, highways, and roads by the Department of Transportation when these projects receive federal funding and must comply with applicable federal laws and regulations;

(16)    County Transportation Committees;

(17)    Councils of Government; and

(18)    the South Carolina Transport Infrastructure Bank."

SECTION    5.    Section 11-35-1230(1) of the 1976 Code, as last amended by Act 376 of 2006, is further amended to read:

"(1)    The designated board office, through consultation with the chief procurement officers, shall develop written plans for the auditing of state procurements.

In procurement audits of governmental bodies thereafter, the auditors from the designated board office shall review the adequacy of the system's internal controls in order to ensure compliance with the requirement of this code and the ensuing regulations. Additionally, the procurement audits shall verify that exemptions contained in Section 11-35-710(15) are valid. A noncompliance discovered through audit must be transmitted in management letters to the audited governmental body and the Budget and Control Board. The auditors shall provide in writing proposed corrective action to governmental bodies. Based upon audit recommendations of the designated board office, the board may revoke certification as provided in Section 11-35-1210 and require the governmental body to make all procurements through the appropriate chief procurement officer above a dollar limit set by the board, until such time as the board is assured of compliance with this code and its regulations by that governmental body."

SECTION    6.    Section 57-1-10 of the 1976 Code is amended to read:

"Section 57-1-10.    For the purposes of this title, the following words, phrases, and terms are defined as follows:

(1)    'Commission' means the administrative and governing body of the Department of Transportation.

(2)    'Department' means the Department of Transportation (DOT).

(3)(2)    "Director" 'Secretary of Transportation' means the chief administrative officer of the Department of Transportation.

(3)    'Highway Engineering District' means the seven geographical regions created by the Department of Transportation."

SECTION    7.    Section 57-1-20 of the 1976 Code is amended to read:

"Section 57-1-20.    The Department of Transportation is established as an administrative agency of state government which is comprised of a Division of Mass Transit; a Division of Construction Engineering and Planning; a Division of Human Resources; an Internal Audit Division; and a Division of Finance and Administration. Each division of the Department of Transportation shall have such functions and powers as provided for by law."

SECTION    8.    Section 57-1-350 of the 1976 Code is amended to read:

"Section 57-1-350.    (A)    The commission department may adopt an official seal for use on its official documents of the department.

(B)    The commission department shall adopt its own rules and procedures and may select such additional officers to serve such terms as the commission it may designate."

(C)    Commissioners must be reimbursed for official expenses as provided by law for members of state boards and commissions as established in the annual general appropriation act .

SECTION    9.    Section 57-3-20 of the 1976 Code is amended to read:

"Section 57-3-20.    The responsibilities and duties of the following division deputy directors must include, but not be limited to, the following:

(1)    division deputy director for finance and administration:

a.    financial planning and management;

b.    accounting systems necessary to comply with all federal and/or state laws and/or regulations as well as all policies established by the Comptroller General; and

c.    administrative functions, including recording proceedings of the commission and developing policy and procedures to ensure compliance with these policies and procedures.

(2)    division deputy director for construction, engineering, and planning:

a.    development of statewide strategic highway plans; and

b.    directs highway engineering activities, including construction, design, construction oversight, and maintenance of state highways.

(3)    division deputy director for mass transit:

a.    development of a statewide mass transit system; and

b.    coordinate the preservation and revitalization of existing rail corridors.

(4)    division deputy director for human resources:

a.    employ an ethics compliance officer to ensure that the department's employees and commission comply fully with all laws that govern their ethical conduct.

b.    conduct two hours of mandatory ethics training seminars for all department employees and commissioners on a biennial basis. However, it must conduct a mandatory two hour ethics seminar for each newly hired employee and newly elected commissioner within one month of their employment or election.

(5)    division deputy director for internal audits shall examine the finances of the department and provide an annual financial report to the commission."

SECTION    10.    Chapter 11, Title 57 of the 1976 Code is amended by adding:

"Article 5

Department of Transportation General Fund Revenue Transfers

Section 57-11-410.    Of the amount set aside pursuant to Section 11-11-150(H), the South Carolina Department of Transportation must:

(1)    make the following annual contributions from non-state tax resources to the State Highway Account of the South Carolina Transportation Infrastructure Bank:

Fiscal Year 2007-2008        $20,000,000

Fiscal Year 2008-2009        $40,000,000

Fiscal Year 2009-2010        $60,000,000

Fiscal Year 2010-2011        $80,000,000

Fiscal Year 2011-2012 and thereafter $100,000,000; and

(2)    make the following annual contributions to the State Non-Federal Aid Highway Fund of the South Carolina Department of Transportation for construction and maintenance:

Fiscal Year 2007-2008        $20,000,000

Fiscal Year 2008-2009        $40,000,000

Fiscal Year 2009-2010        $60,000,000

Fiscal Year 2010-2011        $80,000,000

Fiscal Year 2011-2012 and thereafter $100,000,000."

SECTION    11.    Chapter 30, Title 1 of the 1976 Code is amended by adding:

"Section 1-30-12.    The Division of Ombudsman and Citizens' Services shall employ two persons to handle citizens' complaints that pertain to the Department of Transportation."

SECTION    12.    Section 1-30-105 of the 1976 Code is amended to read:

"Section 1-30-105.    (A)    Effective on July 1, 1993, the following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities as well as the employees, funds, property and all contractual rights and obligations associated with any such agency, except for those subdivisions specifically included under another department, are hereby transferred to and incorporated in and shall be administered as part of the Department of Transportation to be initially divided into divisions for Mass Transit, Construction and Maintenance, Engineering and Planning, Finance and Administration; provided, however, that the State Highway Commission as constituted on June 30, 1993, under the provisions of Title 56, shall be the governing authority for the department until February 15, 1994, or as soon as its successors are elected or appointed and qualified, whichever is later:

Department of Highways and Public Transportation, except Motor Vehicle Division and State Highway Patrol, formerly provided for at Section 56-1-10, et seq.

(B)    Notwithstanding another provision of law, effective July 1, 2007, the governing authority of the Department of Transportation is the Secretary of Transportation as provided in Section 57-1-410."

SECTION    13.    Section 11-43-140 of the 1976 Code, as added by Act 148 of 1997, is amended to read:

"Section 11-43-140.    The board of directors is the governing board of the bank. The board consists of seven voting directors as follows: the Chairman of the Department of Transportation Commission Secretary of Transportation, ex officio; one director appointed by the Governor who shall serve as chairman; one director appointed by the Governor; one director appointed by the Speaker of the House of Representatives; one member of the House of Representatives appointed by the Speaker, ex officio; one director appointed by the President Pro Tempore of the Senate; and one member of the Senate appointed by the President Pro Tempore of the Senate, ex officio. Directors appointed by the Governor, the Speaker, and the President Pro Tempore shall serve terms coterminous with those of their appointing authority. The terms for the legislative members are coterminous with their terms of office. The vice chairman must be elected by the board. Any person appointed to fill a vacancy must be appointed in the same manner as the original appointee for the remainder of the unexpired term."

SECTION    14.    Section 57-1-40 of the 1976 Code is amended to read:

"Section 57-1-40.    (A)    It is unlawful for a member of the commission or an engineer, agent, or other employee, acting for or in behalf of the department or commission, to accept or agree to accept, receive or agree to receive, or ask or solicit, either directly or indirectly, with the intent to have his decision or action on any question, matter, cause, or proceeding which at the time may be pending or which by law may be brought before him in his official capacity or in his place of trust or profit influenced, any:

(1)    money;

(2)    contract, promise, undertaking, obligation, gratuity, or security for the payment of money or for the delivery or conveyance of anything of value;

(3)    political appointment or influence, present, or reward;

(4)    employment; or

(5)    other thing of value.

A person violating the provisions of subsection (A) is guilty of a felony and, upon conviction, must be imprisoned not more than five years and is disqualified forever from holding any office of trust or profit under the Constitution or laws of this State.

(B)    It is unlawful for a person to give or offer to give, promise, or cause or procure to be promised, offered, or given, either directly or indirectly, to a member of the commission or an engineer, agent, or other employee acting for or on behalf of the commission or department with the intent to have his decision or action on any question, matter, cause, or proceeding which at the time may be pending or which by law may be brought before him in his official capacity or in his place of trust or profit influenced, any:

(1)    money;

(2)    contract, promise, undertaking, obligation, gratuity, or security for the payment of money or for the delivery or conveyance of anything of value;

(3)    political appointment or influence, present, or reward;

(4)    employment; or

(5)    other thing of value.

A person violating the provisions of subsection (B) is guilty of a felony and, upon conviction, must be imprisoned not more than five years and is disqualified forever from holding any office of trust or profit under the Constitution or laws of this State."

SECTION    15.    Section 57-1-410 of the 1976 Code is amended to read:

Section 57-1-410.    The commission Governor shall employ a director Secretary of Transportation who shall serve at the his pleasure of the commission. A person appointed to this position shall be a citizen of practical and successful business and executive ability who has a knowledge in the field of transportation. The director secretary shall receive such compensation as may be established under the provisions of Section 8-11-160 and for which funds have been authorized in the general appropriation act."

SECTION    16.    Section 57-1-430 of the 1976 Code is amended to read:

"Section 57-1-430.    (A)    The director Secretary of Transportation must carry out the policies of the commission department and administer the affairs of the department and may exercise all powers belonging to the commission within the guidelines and policies established by the commission, when the commission is not in session. He must represent the department in its dealings with other state agencies, local governments, special districts, and the federal government.

(B)    For each division, the director secretary may employ such personnel and prescribe their duties, powers, and functions as he considers necessary and as may be authorized by statute and for which funds have been authorized in the annual general appropriation act."

SECTION    17.    Section 57-1-440 of the 1976 Code is amended to read:

"Section 57-1-440.    The director Secretary of Transportation shall have the exclusive authority to employ a chief counsel and such staff attorneys and support staff as are necessary to represent the department in legal matters, condemnation procedures, and other such litigation. Any extra legal services that may be required shall be performed by attorneys selected by the director. The department is authorized to retain independent adjusters for purposes of investigating and adjusting claims and suits resulting from motor vehicle damage and personal injury damage programs involving department liability exposure and recovery potential. Expenses for the administration and implementation of this section shall be paid for from the state highway fund."

SECTION    18.    Section 57-1-450 of the 1976 Code is amended to read:

"Section 57-1-450.    The director Secretary of Transportation shall appoint a deputy director for each division of the department who shall serve at the pleasure of the director and shall recommend the salary for each deputy director as allowed by statute or applicable law."

SECTION    19.    Section 57-1-490 of the 1976 Code is amended to read:

"Section 57-1-490.    (A)    The department shall must be audited by a certified public accountant or firm of certified public accountants once each year to be designated by the State Auditor. The designated accountant or firm of accountants shall issue audited financial statements in accordance with generally accepted accounting principles, and such financial statements shall be made available annually by October fifteenth to the General Assembly. The costs and expenses of the audit must be paid by the department out of its funds.

(B)    The Legislative Audit Council shall conduct a performance and compliance audits of the department. These audits must be completed by January first of each year. The costs of these audits, including related administrative and management expenses of the Legislative Audit Council, are an operating expense of the department. The department shall pay directly to the Legislative Audit Council the cost of these audits. Copies of these audits must be made available to the Governor, the chairmen of the Senate Finance and Transportation Committees, and the House of Representatives Ways and Means and Education and Public Works Committees."

SECTION    20.    Section 57-3-10 of the 1976 Code is amended to read:

"Section 57-3-10.    The Department of Transportation must be divided into such divisions as the commission department may prescribe but must consist of the following principal divisions: finance and administration; construction, engineering, and planning; and mass transit. The commission department may establish other divisions, or ancillary or service divisions as may be necessary for the efficient and economic operation of the division and to carry out the functions and purposes of the division."

SECTION    21.    Section 57-3-50 of the 1976 Code is amended to read:

"Section 57-3-50.    The commission department may establish such highway districts as in its opinion shall be are necessary for the proper and efficient performance of its duties. The commission department, every ten years, must review the number of highway districts and the territory embraced within the districts and make such changes as that may be necessary for the proper and efficient operation of the districts."

SECTION    22.    Section 57-11-20 of the 1976 Code, as last amended by Act 176 of 2005, is further amended by adding an appropriately lettered subsection at the end to read:

"( )(1)    For fiscal years beginning after June 30, 2008, the General Assembly affirmatively shall appropriate revenues of the State Highway Fund and the State Non-Federal Aid Highway Fund to the Department of Transportation in the annual general appropriations act and acts and joint resolutions supplemental to it in the same manner that it appropriates general fund revenues for the operation of cabinet agencies. Appropriations of the revenues of the funds must be solely for those purposes comprising the mission and operations of the Department of Transportation. These appropriations must maximize federal matching and other funds available to the department and provide that debt service on state highway bonds must be paid as scheduled before any other appropriations to the department may be paid.

(2)    At the time and in the manner that the Board of Economic Advisors estimates and adjusts its estimates of state general fund revenues, it shall similarly estimate and adjust its estimates of the State Highway Fund and State Non-Federal Aid Highway Fund revenues for use in the budget-making and appropriations process. If actual revenues to these funds are less than these estimates, then the amounts appropriated to the department are reduced by an amount sufficient to offset the shortfall, and the department shall manage these reductions so as to ensure that the priorities for appropriations of these revenues as provided in item (1) of this subsection are unaffected by the reduction."

SECTION    23.    Sections 57-1-310, 57-1-320, 57-1-325, and 57-1-330 are repealed.

SECTION    24.    Wherever the term director appears in the 1976 Code and means the chief administrative officer of the Department of Transportation, it shall mean the Secretary of Transportation. Wherever the term Department of Transportation Commission and commissioner appear in the 1976 Code and mean the governing body of the Department of Transportation, they shall mean the Department of Transportation. The Code Commissioner is directed to change these references at a time and in a manner that is timely and cost effective.

SECTION    25.    The repeal or amendment by this act of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this act, all laws repealed or amended by this act must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this act, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.

SECTION    26.    If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

SECTION    27.    This act takes effect upon approval by the Governor.

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