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H. 3164
STATUS INFORMATION
General Bill
Sponsors: Rep. Kirsh
Document Path: l:\council\bills\swb\5011zcw03.doc
Introduced in the House on January 14, 2003
Currently residing in the House Committee on Ways and Means
Summary: Public official or employee convicted of fraudulent use of state funds and fraudulent service credit calculation, Budget and Control Board to investigate, provisions
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 12/4/2002 House Prefiled 12/4/2002 House Referred to Committee on Ways and Means 1/14/2003 House Introduced and read first time HJ-68 1/14/2003 House Referred to Committee on Ways and Means HJ-68
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND ARTICLE 3, CHAPTER 1, TITLE 9, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ADMINISTRATION OF THE SOUTH CAROLINA RETIREMENT SYSTEM, BY ADDING SECTION 9-1-295 SO AS TO PROVIDE THAT THE BUDGET AND CONTROL BOARD MAY INVESTIGATE AND DETERMINE IF A CURRENT OR PREVIOUSLY EMPLOYED PUBLIC OFFICIAL OR EMPLOYEE WHO HAS BEEN CONVICTED OF AN OFFENSE INVOLVING EMBEZZLEMENT OR THE FRAUDULENT APPROPRIATION OF PUBLIC FUNDS HAS USED ANY OF THE FUNDS TO ESTABLISH SERVICE CREDIT IN THE RETIREMENT SYSTEM, TO PROVIDE FOR A HEARING, FINAL DETERMINATION, THE REFUND OF THE MONIES TO THE PUBLIC AGENCY FROM WHICH THEY WERE EMBEZZLED OR FRAUDULENTLY APPROPRIATED, AND THE RECALCULATION OF SERVICE CREDIT AND RETIREMENT BENEFITS WITHOUT THE CONTRIBUTION OF EMBEZZLED FUNDS IF THE BOARD SO ORDERS, AND TO PROVIDE THAT SUCH A DETERMINATION MAY BE CONSIDERED A CONTESTED CASE UNDER THE ADMINISTRATIVE PROCEDURES ACT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 3, Chapter 1, Title 9 of the 1976 Code is amended by adding:
"Section 9-1-295. (A) Notwithstanding any other provision of law, the Budget and Control Board may investigate and determine if a current or previously employed public official or public employee who has been convicted of an offense involving embezzlement or the fraudulent appropriation of public funds or public property has used any of the embezzled monies to establish service credit in the retirement system to which the employee belongs.
(B) If the board finds credible evidence that embezzled monies have been used to establish service credit, it shall hold a hearing and make a final determination concerning whether the monies must be refunded to the public agency from which they were embezzled or fraudulently appropriated, and whether the service credit and retirement benefits, if applicable, of the defendant must be recalculated without the contribution of embezzled funds. If the contribution of the embezzled funds allowed the defendant to retire and begin receiving retirement benefits, then the defendant's retirement benefit is canceled, and his service credit must be adjusted to reflect the loss of the credited service. The board may offset benefits paid the defendant from the defendant's contributions and accumulated interest on deposit with the retirement system.
(C) A person aggrieved by the board's decision under this section may request a contested case hearing. The contested case must proceed in accordance with Articles 3 and 5, Chapter 23 of Title 1."
SECTION 2. This act is intended to create remedies to more efficiently recover restitution due to state and local governmental entities in cases involving embezzlement or the appropriation of public funds or public property to the private use of a public officer or employee. As such, it is remedial legislation and intended to be retroactive as well as prospective in its application.
SECTION 3. 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 4. This act takes effect upon approval by the Governor.
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