South Carolina General Assembly
120th Session, 2013-2014
Journal of the Senate


Printed Page 3829 . . . . . Tuesday, May 28, 2013

Tuesday, May 28, 2013
(Statewide Session)

Indicates Matter Stricken
Indicates New Matter

The Senate assembled at 10:00 A.M., the hour to which it stood adjourned, and was called to order by the PRESIDENT.

A quorum being present, the proceedings were opened with a devotion by the Chaplain as follows:

The Psalmist reminds us that:

"The fear of the Lord is the beginning of wisdom; all those who practice it have a good   understanding. His praise endures forever."
(Psalm 111:10)

Bow in prayer with me, if you will:

Holy God, how desperately do we seek Your holy wisdom here in this Senate Chamber. We ask that each Senator clearly senses Your leading as she and he moves us forward, Lord. Now, after days and weeks of budget debate, bring these leaders to that moment in time when their ideas and desires have come together, and grant them great satisfaction in arriving at this point And when the dust has settled, dear God, may South Carolina benefit and flourish as the result of the worthy actions and meaningful decisions brought to pass by the members of this Body. In Your loving name we pray, O Lord.
Amen.

The PRESIDENT called for Petitions, Memorials, Presentments of Grand Juries and such like papers.

Point of Quorum

At 10:06 A.M., Senator COURSON made the point that a quorum was not present. It was ascertained that a quorum was not present.

Call of the Senate

Senator PEELER moved that a Call of the Senate be made. The following Senators answered the Call:

Alexander                 Allen                     Bennett
Bright                    Bryant                    Campbell
Cleary                    Corbin                    Courson
Cromer                    Davis                     Fair
Grooms                    Hembree                   Hutto


Printed Page 3830 . . . . . Tuesday, May 28, 2013

Johnson                   Leatherman                Malloy
Martin, Larry             Martin, Shane             Massey
McElveen                  Nicholson                 O'Dell
Peeler                    Scott                     Setzler
Shealy                    Sheheen                   Turner
Verdin                    Williams                  Young

A quorum being present, the Senate resumed.

Doctor of the Day

Senator LEATHERMAN introduced Dr. Christina Andrew, of Florence, S.C., Doctor of the Day.

Leave of Absence

On motion of Senator CROMER, at 10:05 A.M., Senator CAMPSEN was granted a leave of absence for today.

Leave of Absence

On motion of Senator MALLOY, at 10:05 A.M., Senator THURMOND was granted a leave of absence until 1:30 P.M.

Leave of Absence

At 4:25 P.M., Senator RANKIN requested a leave of absence beginning at 5:00 P.M. and lasting until 10:00 A.M. in the morning.

Leave of Absence

On motion of Senator LOURIE, at 6:30 P.M., Senator JACKSON was granted a leave of absence for the balance of the day.

Leave of Absence

On motion of Senator CROMER, at 7:25 P.M., Senator HAYES was granted a leave of absence for the balance of the day.

CO-SPONSORS ADDED

The following co-sponsors were added to the respective Bills:
S. 160 (Word version)     Sen. Corbin
S. 649 (Word version)     Sens. Grooms, Larry Martin


Printed Page 3831 . . . . . Tuesday, May 28, 2013

Privilege Of The Chamber

On motion of Senator BRYANT, with unanimous consent, the provisions of Rule 35B requiring two weeks notice were waived.

On motion of Senator SCOTT, the Privilege of the Chamber to that area behind the rail, was extended to University of South Carolina Defensive End Jadeveon Clowney. Mr. Clowney was recognized and commended for his outstanding season and congratulated him for being named the 2012 AT&T National Player of the Year and SEC Defensive Player of the Year.

RECALLED

H. 3774 (Word version) -- Reps. Loftis, Hardwick, Clemmons, Hamilton, Huggins, J.R. Smith, Goldfinch, Hixon, Ryhal, Sottile and Spires: A JOINT RESOLUTION TO SUSPEND THE RUNNING OF CERTAIN GOVERNMENT APPROVALS AFFECTING THE DEVELOPMENT OF REAL PROPERTY WITHIN THE STATE FOR THE PERIOD BEGINNING JANUARY 1, 2013 AND ENDING DECEMBER 31, 2017; AND TO PROVIDE GOVERNMENTAL ENTITIES ISSUING SUCH APPROVALS SHALL PUBLISH NOTICE IN THE STATE REGISTER LISTING THE TYPES OF THESE APPROVALS IT ISSUES AND NOTING THE SUSPENSION OF THE RUNNING OF THE PERIOD OF THE APPROVAL AND TO PROVIDE AN EXCEPTION FOR UNITS OF LOCAL GOVERNMENT.

Senator VERDIN asked unanimous consent to make a motion to recall the Joint Resolution from the Committee on Agriculture and Natural Resources.

The Joint Resolution was recalled from the Committee on Agriculture and Natural Resources and ordered placed on the Calendar for consideration tomorrow.

INTRODUCTION OF BILLS AND RESOLUTIONS

The following were introduced:

S. 732 (Word version) -- Labor, Commerce and Industry Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE BOARD OF COSMETOLOGY, RELATING TO REQUIREMENTS OF LICENSURE IN THE FIELD OF COSMETOLOGY (EDUCATIONAL REQUIREMENTS), DESIGNATED AS REGULATION DOCUMENT NUMBER 4336, PURSUANT TO THE


Printed Page 3832 . . . . . Tuesday, May 28, 2013

PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
l:\council\bills\dbs\31148ac13.docx

Read the first time and ordered placed on the Calendar without reference.

S. 733 (Word version) -- Senators Cromer, Courson, Shealy, Setzler and Massey: A CONCURRENT RESOLUTION TO RECOGNIZE AND HONOR THE STUDENTS, ADMINISTRATORS, FACULTY, STAFF, AND PARENTS OF LAKE MURRAY ELEMENTARY SCHOOL OF LEXINGTON COUNTY FOR THEIR OUTSTANDING WORK AND TO CONGRATULATE THEM FOR BEING SELECTED AS A LIGHTHOUSE SCHOOL.
l:\council\bills\gm\29792htc13.docx

The Concurrent Resolution was adopted, ordered sent to the House.

S. 734 (Word version) -- Senators Cromer, Courson, Shealy, Setzler and Massey: A CONCURRENT RESOLUTION TO RECOGNIZE AND HONOR THE STUDENTS, ADMINISTRATORS, FACULTY, STAFF, AND PARENTS OF SAXE GOTHA ELEMENTARY SCHOOL OF LEXINGTON COUNTY FOR THEIR OUTSTANDING WORK AND TO CONGRATULATE THEM FOR BEING SELECTED AS A LIGHTHOUSE SCHOOL.
l:\council\bills\gm\29793htc13.docx

The Concurrent Resolution was adopted, ordered sent to the House.

H. 3024 (Word version) -- Reps. McCoy, Henderson, Long, Weeks, Erickson, Harrell and Stavrinakis: A BILL TO AMEND SECTION 63-7-310, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PERSONS REQUIRED TO REPORT CHILD ABUSE OR NEGLECT, SO AS TO REQUIRE ANY PERSON IN THIS STATE TO REPORT SUSPECTED CHILD ABUSE OR NEGLECT; TO AMEND SECTION 63-7-360, RELATING TO MANDATORY REPORTING TO THE CORONER, SO AS TO MAKE CONFORMING CHANGES; AND TO AMEND SECTION 63-7-450, RELATING TO INFORMATION THE DEPARTMENT OF SOCIAL SERVICES MUST PROVIDE TO PERSONS REQUIRED TO REPORT, SO AS TO MAKE CONFORMING CHANGES.

Read the first time and referred to the Committee on Judiciary.


Printed Page 3833 . . . . . Tuesday, May 28, 2013

H. 3165 (Word version) -- Reps. Tallon, Henderson, G. R. Smith, Long, V. S. Moss, Atwater, Taylor, Toole, Erickson, Thayer and Bedingfield: A BILL TO AMEND SECTION 41-35-120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DISQUALIFICATIONS FROM UNEMPLOYMENT BENEFITS, SO AS TO REVISE THE METHOD OF DETERMINING THE BENEFITS OF A PERSON DISCHARGED FROM EMPLOYMENT FOR ILLEGAL DRUG USE, GROSS MISCONDUCT, AND FAILURE TO ACCEPT WORK, TO DEFINE CERTAIN TERMS, TO SPECIFY CRITERIA FOR A LABORATORY QUALIFIED TO PERFORM A TEST FOR ILLEGAL DRUG USE BY A PERSON SEEKING OR RECEIVING UNEMPLOYMENT BENEFITS, TO LIMIT THE LIABILITY OF AN EMPLOYER FOR ACTS OR OMISSIONS IN THE DISCLOSURE OF A DRUG TEST PERFORMED UNDER THIS SECTION, AND TO PROVIDE THE MISUSE OF BIOLOGICAL MATERIAL OBTAINED IN THE COURSE OF THIS DRUG TESTING IS A MISDEMEANOR SUBJECT TO CERTAIN MONETARY PENALTIES.

Read the first time and referred to the Committee on Labor, Commerce and Industry.

H. 3236 (Word version) -- Reps. Sellers, J. E. Smith, W. J. McLeod, Whipper, R. L. Brown and Gilliard: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 44-29-185 SO AS TO ENACT THE "CERVICAL CANCER PREVENTION ACT", TO PROVIDE THAT BEGINNING WITH THE 2013-2014 SCHOOL YEAR, THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL MAY OFFER THE CERVICAL CANCER VACCINATION SERIES TO ADOLESCENT STUDENTS ENROLLING IN THE SEVENTH GRADE OF ANY PUBLIC OR PRIVATE SCHOOL IN THIS STATE, TO PROVIDE THAT NO STUDENT IS REQUIRED TO HAVE THE VACCINE BEFORE ENROLLING IN OR ATTENDING SCHOOL, TO PROVIDE THAT THE DEPARTMENT MAY DEVELOP AN INFORMATIONAL BROCHURE RELATED TO OFFERING THIS VACCINATION WITH SPECIFIC CONTENT REQUIREMENTS, TO DEFINE "CERVICAL CANCER VACCINATION SERIES", AND TO PROVIDE THAT IMPLEMENTATION OF THIS ACT IS


Printed Page 3834 . . . . . Tuesday, May 28, 2013

CONTINGENT UPON RECEIPT OF FULL FUNDING BY STATE AND FEDERAL FUNDS.

Read the first time and referred to the Committee on Medical Affairs.

H. 3369 (Word version) -- Reps. Sandifer, Limehouse, Sottile, Clemmons, Crosby, Daning, Spires, Toole, Simrill, Putnam, Loftis, Bedingfield, Quinn, Huggins, Finlay, Kennedy, Owens, Gagnon, Gambrell, Whitmire, Herbkersman, G. R. Smith, Barfield, Hardwick, Edge, K. R. Crawford, D. C. Moss, Hiott, Forrester, Long, W. J. McLeod, Funderburk, Southard, Hixon, V. S. Moss, Anthony, Ryhal, Wells, Skelton, Taylor, Norman, Henderson, Atwater, Pitts, Lowe, Horne, Murphy, Wood and Rivers: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 42-1-378 SO AS TO PROVIDE THAT AN EMPLOYEE COVERED BY THE FEDERAL EMPLOYERS' LIABILITY ACT, THE LONGSHORE AND HARBOR WORKERS' COMPENSATION ACT OR ANY OF ITS EXTENSIONS, OR THE JONES ACT IS EXEMPT FROM WORKERS' COMPENSATION LAWS.

Read the first time and referred to the Committee on Judiciary.

H. 3563 (Word version) -- Reps. Delleney, J. E. Smith and Lucas: A BILL TO AMEND CHAPTER 20, TITLE 39, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SELF-SERVICE STORAGE FACILITIES, SO AS TO DEFINE "ELECTRONIC MAIL", TO PROVIDE THAT WHEN RENT OR OTHER CHARGES ARE FIVE OR MORE DAYS PAST DUE THE OWNER MAY DENY THE OCCUPANT ACCESS TO THE PERSONAL PROPERTY AND THE OCCUPANT IS CONSIDERED IN DEFAULT, TO PROVIDE THAT WHEN RENT OR OTHER CHARGES ARE FOURTEEN OR MORE DAYS PAST DUE THE OCCUPANT MUST BE NOTIFIED, AND TO PROVIDE THE PROCESS BY WHICH A DEFAULTING OCCUPANT'S PERSONAL PROPERTY MAY BE DESTROYED OR SOLD.

Read the first time and referred to the Committee on Judiciary.

H. 3592 (Word version) -- Reps. Sandifer and Loftis: A BILL TO AMEND ARTICLE 8, CHAPTER 52, TITLE 48, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE "ENERGY INDEPENDENCE AND SUSTAINABLE CONSTRUCTION ACT OF 2007", SO AS TO DELETE CERTAIN DEFINITIONS, TO


Printed Page 3835 . . . . . Tuesday, May 28, 2013

CHANGE CERTIFICATION STANDARDS WITH WHICH MAJOR FACILITY PROJECTS MUST COMPLY, TO ELIMINATE REFERENCE TO THE LEED AND GREEN GLOBES CERTIFICATION RATING SYSTEMS, AND TO MAKE TECHNICAL CORRECTIONS.

Read the first time and referred to the Committee on Agriculture and Natural Resources.

H. 4149 (Word version) -- Rep. Erickson: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION AND BEAUFORT COUNTY ERECT APPROPRIATE SIGNS OR MARKERS ALONG UNITED STATES HIGHWAY 21 IN BEAUFORT COUNTY AS IT ENTERS ST. HELENA ISLAND FROM BOTH LADY'S ISLAND AND HUNTING ISLAND THAT CONTAIN THE WORDS "ST. HELENA ISLAND-HOME OF THE 2013 AMERICAN IDOL WINNER CANDICE GLOVER".

The Concurrent Resolution was introduced and referred to the Committee on Transportation.

H. 4182 (Word version) -- Reps. Hardwick, H. A. Crawford, Clemmons, Ryhal and Hardee: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION NAME THE PORTION OF UNITED STATES HIGHWAY 701 FROM ITS INTERSECTION WITH THE LIMITS OF THE CITY OF CONWAY TO ITS INTERSECTION WITH SOUTH CAROLINA HIGHWAY 22 "W. D. 'BILLY' WITHERSPOON HIGHWAY" AND ERECT APPROPRIATE MARKERS OR SIGNS ALONG THIS HIGHWAY THAT CONTAIN THE WORDS "W. D. 'BILLY' WITHERSPOON HIGHWAY".

The Concurrent Resolution was introduced and referred to the Committee on Transportation.

H. 4192 (Word version) -- Reps. Merrill, Crosby, Daning, Jefferson, Rivers and Southard: A BILL TO AMEND SECTION 7-7-120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN BERKELEY COUNTY, SO AS TO ADD FOUR PRECINCTS AND TO REDESIGNATE THE MAP NUMBER ON WHICH THE NAMES OF THESE PRECINCTS MAY BE FOUND AND MAINTAINED BY


Printed Page 3836 . . . . . Tuesday, May 28, 2013

THE OFFICE OF RESEARCH AND STATISTICS OF THE STATE BUDGET AND CONTROL BOARD.

Read the first time and referred to the Committee on Judiciary.

H. 4204 (Word version) -- Rep. Delleney: A BILL TO AMEND SECTION 7-7-170, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF PRECINCTS IN CHESTER COUNTY, SO AS TO REDESIGNATE CERTAIN PRECINCTS, TO DESIGNATE A MAP NUMBER ON WHICH THE NAMES OF THESE PRECINCTS MAY BE FOUND AND MAINTAINED BY THE OFFICE OF RESEARCH AND STATISTICS OF THE STATE BUDGET AND CONTROL BOARD, AND TO CORRECT ARCHAIC LANGUAGE.

Read the first time and referred to the Committee on Judiciary.

REPORTS OF STANDING COMMITTEES

Senator O'DELL from the General Committee polled out H. 3746 favorable:

H. 3746 (Word version) -- Reps. D.C. Moss and V.S. Moss: A CONCURRENT RESOLUTION TO RECOGNIZE NOVEMBER AS NATIONAL NATIVE AMERICAN HISTORY MONTH AND TO DECLARE NOVEMBER 18, 2013, AS NATIVE AMERICAN AWARENESS DAY IN SOUTH CAROLINA.

Poll of the General Committee
Polled 16; Ayes 16; Nays 0; Not Voting 1

AYES

O'Dell                    Ford                      Sheheen
Reese                     Lourie                    Bryant
Jackson                   Cromer                    Cleary
Bright                    McGill                    Campbell
Martin, Shane             Allen                     Shealy
Young

Total--16

NAYS

Total--0


Printed Page 3837 . . . . . Tuesday, May 28, 2013

NOT VOTING

Verdin

Total--1

Ordered for consideration tomorrow.

Senator VERDIN from the Committee on Agriculture and Natural Resources polled out H. 3847 favorable:

H. 3847 (Word version) -- Reps. Hiott and Hardwick: A BILL TO AMEND SECTION 48-60-20, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS FOR TERMS USED IN THE SOUTH CAROLINA MANUFACTURER RESPONSIBILITY AND CONSUMER CONVENIENCE INFORMATION TECHNOLOGY EQUIPMENT COLLECTION AND RECOVERY ACT OF 2010, SO AS TO ADD, AMONG OTHER DEFINITIONS, TERMS RELATED TO COMPUTER MONITORS; TO AMEND SECTION 48-60-30, RELATING TO REQUIREMENTS OF CERTAIN MANUFACTURERS TO PROVIDE LABELS ON DEVICES INDICATING THE BRAND, SO AS TO REQUIRE COMPUTER MONITOR MANUFACTURERS TO DO SO; TO AMEND SECTION 48-60-50, RELATING TO THE REQUIREMENT FOR TELEVISION MANUFACTURERS TO PROVIDE A RECOVERY PROGRAM FOR RECYCLING TELEVISIONS, SO AS TO REQUIRE COMPUTER MONITOR MANUFACTURERS TO DO SO; BY ADDING SECTION 48-60-55 SO AS TO PROVIDE FOR THE CREATION AND OPERATION OF STATEWIDE CONSUMER ELECTRONIC DEVICE STEWARDSHIP PROGRAMS AND THE DEVELOPMENT AND IMPLEMENTATION OF RELATED RECOVERY PLANS, INCLUDING REQUIREMENTS FOR APPROVAL OF PLANS BY THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, AND TO ESTABLISH OTHER RESPONSIBILITIES AND AUTHORITY OF THE DEPARTMENT AND REQUIREMENTS OF REGULATED MANUFACTURERS; TO AMEND SECTION 48-60-60, RELATING TO PROTECTION FROM LIABILITY FOR CERTAIN DAMAGES, SO AS TO APPLY TO COMPUTER MONITOR MANUFACTURERS; TO AMEND SECTION 48-60-70, RELATING TO RETAILER SALE REQUIREMENTS, SO AS TO PROHIBIT RETAILERS FROM SELLING DEVICES MADE BY MANUFACTURERS WHO DO


Printed Page 3838 . . . . . Tuesday, May 28, 2013

NOT COMPLY WITH THE REQUIREMENTS OF SECTION 48-60-55; TO AMEND SECTION 48-60-90, RELATING TO DISCARDING OR PLACING COVERED DEVICES IN A WASTE STREAM, TO PROHIBIT COMPONENTS OF COVERED DEVICES; TO AMEND SECTION 48-60-100, RELATING TO RECOVERY PROCESS FEES, SO AS TO LIMIT THE ABILITY OF LOCAL GOVERNMENTS TO CHARGE CERTAIN FEES; TO AMEND SECTION 48-60-140, RELATING TO REQUIREMENTS THAT RECOVERY PROCESSES COMPLY WITH STATE AND FEDERAL LAW, SO AS TO REQUIRE RECYCLING OR REUSE FACILITIES TO MAINTAIN CERTIFICATION, TO IDENTIFY APPROVED CERTIFICATION PROGRAMS, AND TO REQUIRE MANUFACTURERS AND GOVERNMENTS ONLY TO USE FACILITIES THAT HAVE APPROPRIATE CERTIFICATION; TO AMEND SECTION 48-60-150, RELATING TO THE DEPARTMENT'S PROMULGATION OF REGULATIONS, SO AS TO ELIMINATE THE RIGHT TO CHARGE CERTAIN FEES TO MANUFACTURERS; BY ADDING SECTION 48-60-160 SO AS TO PROVIDE FOR CERTAIN FEES AND PENALTIES; BY ADDING SECTION 48-60-170 SO AS TO SET FORTH THE PURPOSES OF THE CHAPTER AND CERTAIN LIMITATIONS ON LIABILITY; TO PROVIDE EXPIRATION DATES FOR REGULATIONS PROMULGATED PURSUANT TO THIS CHAPTER, AND TO MAKE TECHNICAL CORRECTIONS; AND TO REPEAL SECTION 48-60-50 JUNE 30, 2014, AND CERTAIN OTHER PROVISIONS JUNE 30, 2020.

Poll of the Agriculture and Natural Resources Committee
Polled 16; Ayes 16; Nays 0; Not Voting 1

AYES

Verdin                    Matthews                  McGill
Grooms                    Bryant                    Williams
Campbell                  Sheheen                   Gregory
Massey                    Corbin                    Hembree
Johnson                   McElveen                  Shealy
Young

Total--16


Printed Page 3839 . . . . . Tuesday, May 28, 2013

NAYS

Total--0

NOT VOTING

Total--1

Ordered for consideration tomorrow.

Senator ALEXANDER from the Committee on Labor, Commerce and Industry submitted a favorable report on:

H. 4059 (Word version) -- Reps. Pitts, Clemmons, Loftis, Huggins, Erickson, J.R. Smith, Burns, Riley, Gambrell, Putnam, Merrill, Crosby, Kennedy, H.A. Crawford, Brannon, Hardee, Bedingfield, Quinn, Bingham, Finlay, Vick, G.R. Smith, Allison, Ballentine, Chumley, Daning, Delleney, Edge, Forrester, Gagnon, Goldfinch, Hamilton, Hardwick, Henderson, Hiott, Hixon, Hosey, Lowe, D.C. Moss, Murphy, Nanney, Newton, Norman, Ott, Patrick, Pope, Ridgeway, Simrill, G.M. Smith, Tallon, Taylor, Thayer, White, Willis and Wood: A CONCURRENT RESOLUTION EXPRESSING AN INVITATION FROM THE MEMBERS OF THE GENERAL ASSEMBLY TO OUT-OF-STATE BUSINESSES INVOLVED IN THE MANUFACTURING OF FIREARMS AND AMMUNITION AND ACCESSORIES FOR FIREARMS TO CONSIDER LOCATING OR EXPANDING EXISTING OPERATIONS IN SOUTH CAROLINA AND TO GUARANTEE THAT SOUTH CAROLINA AND SOUTH CAROLINIANS WILL OFFER THEM A WARM WELCOME.

Ordered for consideration tomorrow.

Appointment Reported

Senator COURSON from the Committee on Education submitted a favorable report on:

Initial Appointment, South Carolina Commission on Higher Education, with the term to commence July 1, 2012, and to expire July 1, 2016
At-Large/Chairman:

John L. Finan, 220 Holliday Road, Columbia, SC 29223 VICE Ken Wingate (resigned)

Received as information.


Printed Page 3840 . . . . . Tuesday, May 28, 2013

Message from the House

Columbia, S.C., May 23, 2013

Mr. President and Senators:

The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:

H. 3554 (Word version) -- Reps. Cole, Forrester, G.M. Smith, Stavrinakis, Herbkersman and Merrill: A BILL TO AMEND SECTION 61-4-1515, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SAMPLES AND SALES OF BEER AT BREWERIES, SO AS TO SPECIFY THAT FOURTEEN PERCENT ALCOHOL BY WEIGHT IS THE MAXIMUM THAT MAY BE OFFERED FOR ON-PREMISES CONSUMPTION, TO ALLOW FOR THE SALE OF SIXTY-FOUR OUNCES OF BEER TO A CONSUMER EVERY TWENTY-FOUR HOURS, TO PROVIDE THE BEER MUST BE SOLD AT THE APPROXIMATE RETAIL PRICE, TO PROVIDE THAT APPROPRIATE TAXES MUST BE REMITTED, AND TO CLARIFY THAT A CERTAIN PROVISION APPLIES TO OFF-PREMISES CONSUMPTION.
and has ordered the Bill enrolled for Ratification.
Very respectfully,
Speaker of the House

Received as information.

THE SENATE PROCEEDED TO A CALL OF THE LOCAL AND STATEWIDE CALENDAR.

HOUSE BILL RETURNED

The following House Bill was read the third time and ordered returned to the House with amendments:

H. 3061 (Word version) -- Reps. McCoy, M.S. McLeod, Stavrinakis and Sellers: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-63-95 SO AS TO REQUIRE THE DEPARTMENT OF EDUCATION TO DEVELOP AND DISTRIBUTE MODEL POLICIES CONCERNING THE NATURE AND RISK OF CONCUSSIONS SUSTAINED BY STUDENT ATHLETES, TO REQUIRE EACH LOCAL SCHOOL DISTRICT TO DEVELOP ITS OWN POLICY, TO REQUIRE THE REVIEW OF THE POLICY BY STUDENT ATHLETES AND THEIR PARENTS OR GUARDIANS, TO REQUIRE THE REMOVAL FROM PLAY


Printed Page 3841 . . . . . Tuesday, May 28, 2013

AND MEDICAL EVALUATION OF A STUDENT ATHLETE BELIEVED TO HAVE SUSTAINED A CONCUSSION DURING PLAY, TO ALLOW FOR THE EVALUATION TO BE UNDERTAKEN BY A VOLUNTEER HEALTH CARE PROVIDER, AND TO PROVIDE THAT LOCAL SCHOOL DISTRICTS ARE NOT REQUIRED TO ENFORCE THE PROVISIONS OF THIS SECTION.

THIRD READING BILL

The following Bill was read the third time and ordered sent to the House of Representatives:

S. 707 (Word version) -- Senator Lourie: A BILL TO PROVIDE FOR THE AUTHORITY OF THE CITY OF COLUMBIA TO APPOINT AND COMMISSION FIREFIGHTERS TO SERVE AS CERTIFIED LAW ENFORCEMENT OFFICERS WHO HAVE THE FULL POWERS AS CERTIFIED LAW ENFORCEMENT OFFICERS AND TO REQUIRE FIREFIGHTERS TO MEET CERTAIN QUALIFICATIONS TO BE COMMISSIONED AS A CERTIFIED LAW ENFORCEMENT OFFICER.

READ THE SECOND TIME

H. 3783 (Word version) -- Rep. Lucas: A BILL TO AMEND SECTION 12-21-2425, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ADMISSIONS LICENSE TAX EXEMPTION FOR A MOTORSPORTS ENTERTAINMENT COMPLEX, SO AS TO REQUIRE THE COMPLEX TO BE A NASCAR SANCTIONED SPEEDWAY THAT HOSTS AT LEAST ONE RACE EACH YEAR FEATURING THE PREEMINENT NASCAR CUP SERIES, INSTEAD OF REQUIRING THE SPEEDWAY TO HAVE AT LEAST SIXTY THOUSAND SEATS FOR RACE PATRONS.

The Senate proceeded to a consideration of the Bill, the question being the second reading of the Bill.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 23; Nays 7; Abstain 1

AYES

Alexander                 Bennett                   Campbell
Cleary                    Courson                   Cromer


Printed Page 3842 . . . . . Tuesday, May 28, 2013

Fair                      Hembree                   Hutto
Johnson                   Leatherman                Malloy
Martin, Larry             McElveen                  O'Dell
Peeler                    Scott                     Setzler
Sheheen                   Turner                    Verdin
Williams                  Young

Total--23

NAYS

Bright                    Bryant                    Corbin
Davis                     Grooms                    Massey
Shealy

Total--7

ABSTAIN

Martin, Shane

Total--1

The Bill was read the second time and ordered placed on the Third Reading Calendar.

Statement by Senator SHANE MARTIN

I had to abstain from voting on H. 3783 since my business is indirectly associated with this business.

READ THE SECOND TIME

H. 3907 (Word version) -- Reps. Willis, Owens, Stringer, Daning, Brannon, Rivers, Kennedy, King, Mitchell, Putnam, Wells and Wood: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 6 TO CHAPTER 1, TITLE 56 SO AS TO AUTHORIZE THE DEPARTMENT OF MOTOR VEHICLES TO ACCEPT UNCERTIFIED CHECKS FOR PAYMENT FOR PRODUCTS OR SERVICES ISSUED BY THE DEPARTMENT, TO PROVIDE THAT THE DEPARTMENT MAY REFUSE TO PROVIDE A PERSON ANY PRODUCT OR SERVICE, EXCEPT AN IDENTIFICATION CARD, UNTIL THE PERSON HAS PAID ALL FEES OWED THE DEPARTMENT AS A RESULT OF A RETURNED CHECK, TO PROVIDE THAT THE DEPARTMENT


Printed Page 3843 . . . . . Tuesday, May 28, 2013

MAY CHARGE A FEE SPECIFIED IN SECTION 34-11-70 TO COVER THE COSTS ASSOCIATED WITH THE COLLECTION OF FEES, TO PROVIDE THAT THE DEPARTMENT MAY CHARGE A PROCESSING FEE FOR THE USE OF CREDIT CARDS, AND TO PROVIDE THAT ALL PROCESSING FEES COLLECTED PURSUANT TO THIS ARTICLE MUST BE PLACED IN A SPECIAL RESTRICTED ACCOUNT TO BE USED BY THE DEPARTMENT TO DEFRAY ITS COSTS.

The Senate proceeded to a consideration of the Bill, the question being the second reading of the Bill.

The "ayes" and "nays" were demanded and taken, resulting as follows:

  Ayes 32; Nays 0

AYES

Alexander                 Bennett                   Bright
Bryant                    Campbell                  Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Grooms
Hembree                   Hutto                     Johnson
Leatherman                Malloy                    Martin, Larry
Martin, Shane             Massey                    McElveen
Nicholson                 O'Dell                    Peeler
Scott                     Setzler                   Shealy
Sheheen                   Turner                    Verdin
Williams                  Young

Total--32

NAYS

Total--0

There being no further amendments, the Bill was read the second time, passed and ordered to a third reading.

READ THE SECOND TIME

S. 705 (Word version) -- Senator Leatherman: A JOINT RESOLUTION TO PROVIDE FOR THE CONTINUING AUTHORITY TO PAY THE EXPENSES OF STATE GOVERNMENT IF THE 2013-2014 FISCAL


Printed Page 3844 . . . . . Tuesday, May 28, 2013

YEAR BEGINS WITHOUT A GENERAL APPROPRIATIONS ACT FOR THAT YEAR IN EFFECT, AND TO PROVIDE EXCEPTIONS.

The Senate proceeded to a consideration of the Joint Resolution, the question being the second reading of the Resolution.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 34; Nays 2

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Gregory
Grooms                    Hembree                   Hutto
Johnson                   Leatherman                Lourie
Malloy                    Martin, Larry             Martin, Shane
Massey                    McElveen                  Nicholson
O'Dell                    Peeler                    Scott
Setzler                   Shealy                    Sheheen
Turner                    Verdin                    Williams
Young

Total--34

NAYS

Bright                    Bryant

Total--2

The Resolution was read the second time and ordered placed on the Third Reading Calendar.

READ THE SECOND TIME

H. 3409 (Word version) -- Reps. Sandifer and Bales: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 40-59-25 SO AS TO PROHIBIT CERTAIN ACTS BY RESIDENTIAL BUILDERS OR CONTRACTORS RELATING TO ROOFING SYSTEMS; AND TO AMEND SECTION 40-59-110, RELATING TO REVOCATION, SUSPENSION, OR RESTRICTION


Printed Page 3845 . . . . . Tuesday, May 28, 2013

OF THE LICENSE BY THE RESIDENTIAL HOME BUILDERS COMMISSION, SO AS TO PROVIDE A CONFORMING CHANGE.

The Senate proceeded to a consideration of the Bill, the question being the second reading of the Bill.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 32; Nays 0

AYES

Alexander                 Bennett                   Bright
Bryant                    Campbell                  Cleary
Corbin                    Courson                   Cromer
Davis                     Fair                      Grooms
Hembree                   Hutto                     Johnson
Leatherman                Malloy                    Martin, Larry
Martin, Shane             Massey                    McElveen
Nicholson                 O'Dell                    Peeler
Scott                     Setzler                   Shealy
Sheheen                   Turner                    Verdin
Williams                  Young

Total--32

NAYS

Total--0

The Bill was read the second time and ordered placed on the Third Reading Calendar.

OBJECTION

H. 3945 (Word version) -- Reps. G.M. Smith, Harrell, Lucas, Bannister, Toole, Stringer, Hamilton, Sottile, Barfield, Bingham, Spires, Hardwick, Owens, Hiott, Long, Erickson, Murphy, Horne, Willis, Gagnon, Simrill, Funderburk and Henderson: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 4 TO CHAPTER 13, TITLE 8 SO AS TO ESTABLISH THE SOUTH CAROLINA COMMISSION ON ETHICS ENFORCEMENT AND DISCLOSURE, TO PROVIDE FOR ITS POWERS, DUTIES, PROCEDURES, AND JURISDICTION, AND


Printed Page 3846 . . . . . Tuesday, May 28, 2013

TO PROVIDE PENALTIES FOR CERTAIN VIOLATIONS; TO REPEAL ARTICLE 3, CHAPTER 13, TITLE 8 RELATING TO THE STATE ETHICS COMMISSION; TO REPEAL ARTICLE 5, CHAPTER 13, TITLE 8 RELATING TO THE HOUSE OF REPRESENTATIVES AND SENATE ETHICS COMMITTEES; TO AMEND SECTION 8-13-100, AS AMENDED, RELATING TO DEFINITIONS IN REGARD TO ETHICS, GOVERNMENT ACCOUNTABILITY, AND CAMPAIGN REFORM, SO AS TO REVISE CERTAIN DEFINITIONS; TO AMEND SECTION 8-13-700, AS AMENDED, RELATING TO USE OF AN OFFICIAL POSITION OR OFFICE FOR FINANCIAL GAIN, SO AS TO PROVIDE THAT IF A MEMBER OF THE GENERAL ASSEMBLY DETERMINES THAT HE HAS A CONFLICT OF INTEREST, HE MUST COMPLY WITH CERTAIN REQUIREMENTS BEFORE ABSTAINING FROM ALL VOTES ON THE MATTER, AND TO PROVIDE FOR WHEN A PUBLIC OFFICIAL WHO IS REQUIRED TO RECUSE HIMSELF FROM A MATTER MUST DO SO; TO AMEND SECTION 8-13-740, AS AMENDED, RELATING TO REPRESENTATION OF ANOTHER PERSON BY A PUBLIC OFFICIAL BEFORE A GOVERNMENTAL ENTITY, SO AS TO FURTHER DELINEATE WHAT IS CONSIDERED A CONTESTED CASE WHEN REPRESENTATION BY A MEMBER OF THE GENERAL ASSEMBLY IS PERMITTED; TO AMEND SECTION 8-13-745, RELATING TO PAID REPRESENTATION OF CLIENTS AND CONTRACTING BY A MEMBER OF THE GENERAL ASSEMBLY OR AN ASSOCIATE IN PARTICULAR SITUATIONS, SO AS TO DELETE A PROHIBITION AGAINST CERTAIN CONTRACTS WITH AN ENTITY FUNDED WITH GENERAL FUNDS; TO AMEND SECTION 8-13-1120, AS AMENDED, RELATING TO CONTENTS OF STATEMENTS OF ECONOMIC INTEREST, SO AS TO FURTHER PROVIDE FOR THESE CONTENTS; TO AMEND SECTION 8-13-1300, AS AMENDED, RELATING TO DEFINITIONS IN REGARD TO CAMPAIGN PRACTICES, SO AS TO REVISE CERTAIN DEFINITIONS; TO AMEND SECTION 8-13-1318, RELATING TO ACCEPTANCE OF CONTRIBUTIONS TO RETIRE CAMPAIGN DEBTS, SO AS TO REQUIRE ANY SUCH CONTRIBUTIONS TO BE USED FOR THIS PURPOSE ONLY; TO AMEND SECTION 8-13-1338, RELATING TO PERSONS WHO MAY NOT SOLICIT CONTRIBUTIONS, SO AS TO INCLUDE THE HEAD OF ANY STATE AGENCY WHO IS SELECTED BY THE GOVERNOR, THE GENERAL ASSEMBLY,


Printed Page 3847 . . . . . Tuesday, May 28, 2013

OR AN APPOINTED OR ELECTED BOARD; TO AMEND SECTION 8-13-1340, AS AMENDED, RELATING TO RESTRICTIONS ON CONTRIBUTIONS BY ONE CANDIDATE TO ANOTHER OR THROUGH COMMITTEES CONTROLLED BY A CANDIDATE, SO AS TO DELETE AN EXCEPTION FOR A COMMITTEE CONTROLLED BY A CANDIDATE IF IT IS THE ONLY SUCH COMMITTEE, AND TO MAKE CONFORMING CHANGES; TO AMEND SECTIONS 8-13-1510 AND 8-13-1520, BOTH AS AMENDED, RELATING TO PENALTIES FOR ETHICAL AND OTHER VIOLATIONS, AND BY ADDING SECTION 8-13-1530 SO AS TO FURTHER PROVIDE FOR THE PENALTIES FOR VIOLATIONS AND FOR WHERE CERTAIN WILFUL VIOLATIONS MUST BE TRIED; AND TO REPEAL SECTIONS 8-13-710 AND 8-13-715 RELATING TO REPORTING OF PARTICULAR GIFTS AND AUTHORIZED REIMBURSEMENTS FOR SPEAKING ENGAGEMENTS.

Senator LARRY MARTIN objected to the Bill.

Statement by Senator LARRY MARTIN

Opponents of this Bill removed the minority report last week so that it can come up during the Uncontested Call of the Second Reading Calendar. There is no doubt in my mind that the Senate will spend several hours and many amendments debating this Bill. I moved to carry over the Bill today as I have done since the minority report was removed so that we can proceed in an orderly fashion to final consideration of the General Appropriations Bill. We plan to move to set the Ethics Reform Bill for Special Order as soon as Third Reading of the Budget and Capital Reserve Bills are finalized today.

RECOMMITTED

S. 691 (Word version) -- Labor, Commerce and Industry Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION-BUILDING CODES COUNCIL, RELATING TO INTERNATIONAL RESIDENTIAL CODE, DESIGNATED AS REGULATION DOCUMENT NUMBER 4321, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

The Senate proceeded to a consideration of the Resolution, the question being the second reading of the Joint Resolution.


Printed Page 3848 . . . . . Tuesday, May 28, 2013

Senator MASSEY asked unanimous consent to recommit the Joint Resolution to the Committee on Labor, Commerce and Industry.

There was no objection and the Joint Resolution was recommitted.

S. 553 (Word version) -- Judiciary Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE WORKERS' COMPENSATION COMMISSION, RELATING TO MEDIATION, DESIGNATED AS REGULATION DOCUMENT NUMBER 4286, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

The Senate proceeded to a consideration of the Resolution, the question being the second reading of the Joint Resolution.

Senator MASSEY asked unanimous consent to recommit the Joint Resolution to the Committee on Judiciary.

There was no objection and the Joint Resolution was recommitted.

CARRIED OVER

H. 4038 (Word version) -- Reps. Sandifer and Harrell: A BILL TO AMEND SECTION 40-22-280, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EXEMPTIONS FROM THE APPLICATION OF THE CHAPTER CONCERNING ENGINEERS AND SURVEYORS, SO AS TO ADD AN EXEMPTION FOR CERTAIN ENGINEERS.

On motion of Senator MALLOY, the Bill was carried over.

H. 3540 (Word version) -- Reps. Harrell, J.E. Smith, Bales, Hosey, Cobb-Hunter, Bannister, J.R. Smith, Patrick, Brannon, Erickson, Taylor, Huggins, Kennedy, Ballentine, Bernstein, Sellers, Williams, Jefferson, M.S. McLeod, Atwater, Bowers, R.L. Brown, Cole, Douglas, George, Hixon, Long, McCoy, Mitchell, Pitts, Pope, G.R. Smith, Tallon, Wood, Weeks, Knight and Hart: A BILL TO AMEND SECTION 1-3-240, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REMOVAL OF OFFICERS BY THE GOVERNOR, SO AS TO ADD THE ADJUTANT GENERAL TO THE LIST OF OFFICERS OR ENTITIES THE GOVERNING BOARD OF WHICH MAY BE REMOVED BY THE GOVERNOR ONLY FOR CERTAIN REASONS CONSTITUTING CAUSE; TO AMEND SECTION 25-1-320, RELATING TO THE STATE ADJUTANT GENERAL, SO AS TO PROVIDE THAT BEGINNING UPON THE EXPIRATION OF THE TERM OF THE ADJUTANT


Printed Page 3849 . . . . . Tuesday, May 28, 2013

GENERAL SERVING IN OFFICE ON THE DATE OF THE 2014 GENERAL ELECTION, THE ADJUTANT GENERAL MUST BE APPOINTED BY THE GOVERNOR UPON THE ADVICE AND CONSENT OF THE SENATE FOR A FOUR-YEAR TERM COMMENCING ON THE FIRST WEDNESDAY FOLLOWING THE SECOND TUESDAY IN JANUARY THAT FOLLOWS THE GENERAL ELECTION THAT MARKS THE MIDTERM OF THE GOVERNOR, EXCEPT THAT THE INITIAL TERM OF THE FIRST ADJUTANT GENERAL APPOINTED PURSUANT TO THIS ACT MUST BE FOR TWO YEARS SO AS TO ALLOW SUBSEQUENT TERMS TO BE STAGGERED WITH THAT OF THE GOVERNOR, AND TO ESTABLISH CERTAIN QUALIFICATIONS FOR THE OFFICE OF ADJUTANT GENERAL; TO AMEND SECTION 25-1-340, AS AMENDED, RELATING TO VACANCIES IN THE OFFICE OF ADJUTANT GENERAL, SO AS TO DELETE A REFERENCE TO THE ELIGIBILITY REQUIREMENTS OF CONSTITUTIONAL OFFICERS; AND TO PROVIDE THAT THE ABOVE PROVISIONS ARE EFFECTIVE UPON THE RATIFICATION OF AMENDMENTS TO SECTION 7, ARTICLE VI, AND SECTION 4, ARTICLE XIII OF THE CONSTITUTION OF THIS STATE DELETING THE REQUIREMENT THAT THE STATE ADJUTANT GENERAL BE ELECTED BY THE QUALIFIED ELECTORS OF THIS STATE.

On motion of Senator MASSEY, the Bill was carried over.

S. 657 (Word version) -- Senator L. Martin: A BILL TO AMEND SECTION 22-2-190, CODE OF LAWS OF SOUTH CAROLINA, 1976, AS AMENDED, RELATING TO MAGISTRATE JURY AREAS IN EACH COUNTY, SO AS TO REVISE AND UPDATE THE TERRITORIAL DESCRIPTIONS OF THE JURY AREAS AND PROVIDE REFERENCES TO PUBLIC MAPS SHOWING THE JURY AREAS.

On motion of Senator MALLOY, the Bill was carried over.

H. 3451 (Word version) -- Reps. Tallon, Cole, Forrester, Kennedy, Murphy, Pope, Rutherford and Weeks: A BILL TO AMEND SECTION 56-7-10, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE OFFENSES THAT A PERSON MAY BE CHARGED ON A UNIFORM TRAFFIC TICKET, SO AS TO PROVIDE THAT THE OFFENSES OF SHOPLIFTING AND


Printed Page 3850 . . . . . Tuesday, May 28, 2013

CRIMINAL DOMESTIC VIOLENCE MUST BE CHARGED ON A UNIFORM TRAFFIC TICKET.

On motion of Senator MASSEY, the Bill was carried over.

H. 3538 (Word version) -- Reps. Bannister, Tallon, Sandifer, Hamilton, Erickson, Gambrell, Brannon, Allison, Felder and Weeks: A BILL TO AMEND SECTION 16-17-500, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SALE OR PURCHASE OF TOBACCO PRODUCTS FOR MINORS, SO AS TO INCLUDE ALTERNATIVE NICOTINE PRODUCTS IN THE PURVIEW OF THE STATUTE; TO AMEND SECTION 16-17-501, AS AMENDED, RELATING TO DEFINITIONS FOR PURPOSES OF RELEVANT TOBACCO PRODUCT FOR MINORS OFFENSES, SO AS TO DEFINE THE TERMS "ALTERNATIVE NICOTINE PRODUCT" AND "ELECTRONIC CIGARETTE"; AND TO AMEND SECTIONS 16-17-502, 16-17-503, AND 16-17-504, RELATING TO DISTRIBUTION OF TOBACCO PRODUCT SAMPLES, ENFORCEMENT AND REPORTING, AND IMPLEMENTATION, RESPECTIVELY, ALL SO AS TO MAKE CONFORMING CHANGES TO INCLUDE ALTERNATIVE NICOTINE PRODUCTS.

On motion of Senator MALLOY, the Bill was carried over.

H. 3797 (Word version) -- Reps. Sandifer and Erickson: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-90-165 SO AS TO PROVIDE THAT THE DIRECTOR OF THE DEPARTMENT OF INSURANCE MAY DECLARE A CAPTIVE INSURANCE COMPANY INACTIVE IN CERTAIN CIRCUMSTANCES AND THAT THE DIRECTOR MAY MODIFY THE MINIMUM TAX PREMIUM APPLICABLE TO THE COMPANY DURING INACTIVITY; BY ADDING SECTION 38-90-215 SO AS TO PROVIDE A PROTECTED CELL MAY BE EITHER INCORPORATED OR UNINCORPORATED, AND TO PROVIDE REQUIREMENTS FOR EACH; BY ADDING SECTION 38-90-250 SO AS TO PROVIDE THE DEPARTMENT MUST CONSIDER A LICENSED CAPTIVE INSURANCE COMPANY THAT MEETS THE REQUIREMENTS OF AN INSURER FOR ISSUANCE OF A CERTIFICATE OF AUTHORITY TO ACT AS AN INSURER; TO AMEND SECTION 38-90-10, AS AMENDED, RELATING TO DEFINITIONS CONCERNING CAPTIVE INSURANCE COMPANIES, SO AS TO PROVIDE ADDITIONAL


Printed Page 3851 . . . . . Tuesday, May 28, 2013

TERMS AND REVISE DEFINITIONS OF CERTAIN EXISTING TERMS; TO AMEND SECTION 38-90-20, AS AMENDED, RELATING TO THE DOCUMENTATION REQUIRED FOR LICENSING CAPTIVE INSURANCE COMPANIES, SO AS TO REMOVE THE REQUIREMENT OF A CERTIFICATE OF GENERAL GOOD ISSUED BY THE DIRECTOR; TO AMEND SECTION 38-90-35, RELATING TO THE CONFIDENTIALITY OF INFORMATION CONCERNING CAPTIVE INSURANCE COMPANIES SUBMITTED TO THE DEPARTMENT OF INSURANCE, SO AS TO REVISE REQUIREMENTS FOR MAKING THE INFORMATION SUBJECT TO DISCOVERY IN A CIVIL ACTION; TO AMEND SECTION 38-90-40, AS AMENDED, RELATING TO CAPITALIZATION REQUIREMENTS, SECURITY REQUIREMENTS, AND RESTRICTIONS ON DIVIDEND PAYMENTS FOR CAPTIVE INSURANCE COMPANIES, SO AS TO REVISE THE FORM OF CAPITAL REQUIRED FOR A CAPTIVE INSURANCE COMPANY THAT IS NOT A SPONSORED CAPTIVE INSURANCE COMPANY THAT ASSUMES RISK, AND TO REVISE REQUIREMENTS FOR CONTRIBUTIONS TO A CAPTIVE INSURANCE COMPANY INCORPORATED AS A NONPROFIT, AMONG OTHER THINGS; TO AMEND SECTION 38-90-50, AS AMENDED, RELATING TO FREE SURPLUS REQUIREMENTS OF A CAPTIVE INSURANCE COMPANY, SO AS TO REVISE THE FORM OF CAPITAL REQUIRED FOR A CAPTIVE INSURANCE COMPANY THAT IS NOT A SPONSORED CAPTIVE INSURANCE COMPANY THAT ASSUMES RISK; TO AMEND SECTION 38-90-55, AS AMENDED, RELATING TO THE INCORPORATION OF CAPTIVE INSURANCE COMPANIES, SO AS TO DELETE PROVISIONS CONCERNING THE MINIMUM NUMBER AND STATUS OF INCORPORATORS, PREREQUISITES TO TRANSMITTING ARTICLES OF INCORPORATION TO THE SECRETARY OF STATE, AND THE ISSUANCE OF CAPITAL STOCK AT PAR VALUE; TO AMEND SECTION 38-90-60, AS AMENDED, RELATING TO INCORPORATION OPTIONS AND REQUIREMENTS FOR CAPTIVE INSURANCE COMPANIES, SO AS TO REVISE THE AVAILABLE OPTIONS; TO AMEND SECTION 38-90-80, AS AMENDED, RELATING TO INSPECTIONS AND EXAMINATIONS OF CAPTIVE INSURANCE COMPANIES BY THE DEPARTMENT, SO AS TO DELETE REFERENCES TO PURE CAPTIVE INSURANCE COMPANIES


Printed Page 3852 . . . . . Tuesday, May 28, 2013

AND SPECIAL PURPOSE CAPTIVE INSURANCE COMPANIES; TO AMEND SECTION 38-90-90, AS AMENDED, RELATING TO THE SUSPENSION OR REVOCATION OF A CAPTIVE INSURANCE LICENSE, SO AS TO MAKE A GRAMMATICAL CHANGE; TO AMEND SECTION 38-90-100, AS AMENDED, RELATING TO THE LOANS BY CAPTIVE INSURANCE COMPANIES, SO AS TO PROVIDE A SPONSORED CAPTIVE INSURANCE COMPANY MAY MAKE LOANS TO ITS PARENT COMPANY IN CERTAIN CIRCUMSTANCES; TO AMEND SECTION 38-90-130, AS AMENDED, RELATING THE PROHIBITION AGAINST PARTICIPATION IN PLAN, POOL, ASSOCIATION, GUARANTY, OR INSOLVENCY FUNDS BY CAPTIVE INSURANCE COMPANIES, SO AS TO PROVIDE CAPTIVE INSURANCE COMPANIES, INCLUDING PURE CAPTIVE INSURANCE COMPANIES, MAY PARTICIPATE IN A POOL FOR THE PURPOSE OF COMMERCIAL RISK SHARING, AMONG OTHER THINGS; TO AMEND SECTION 38-90-180, AS AMENDED, RELATING TO THE APPLICABILITY OF CERTAIN PROVISIONS RELATING TO INSURANCE, SO AS TO PROVIDE REQUIREMENTS FOR THE NAME OF NEW CAPTIVE INSURANCE COMPANIES, TO PROVIDE CIRCUMSTANCES IN WHICH A SPONSORED CAPTIVE INSURANCE COMPANY MAY ESTABLISH PROTECTED CELLS, INCLUDING REQUIREMENTS FOR A PLAN OF OPERATION, THE ATTRIBUTIONS OF ASSETS AND LIABILITIES BETWEEN A PROTECTED CELL AND THE GENERAL ACCOUNT OF THE SPONSORED CAPTIVE INSURANCE COMPANY, AND ADMINISTRATIVE AND ACCOUNTING PROCEDURES; TO AMEND SECTION 38-90-210, RELATING TO THE SEPARATE ACCOUNTING OF PROTECTED CELLS WHEN ESTABLISHED, SO AS TO REQUIRE THIS ACCOUNTING MUST REFLECT THE PARTICIPANTS OF THE PROTECTED CELL IN ADDITION TO EXISTING REQUIREMENTS; TO AMEND SECTION 38-90-220, AS AMENDED, RELATING TO CERTAIN REQUIREMENTS APPLICABLE TO SPONSORS OF CAPTIVE INSURANCE COMPANIES, SO AS TO REVISE THE REQUIREMENTS; TO AMEND SECTION 38-90-230, AS AMENDED, RELATING TO PARTICIPANTS IN SPONSORED CAPTIVE INSURANCE COMPANIES, SO AS TO PROVIDE THAT PROTECTED CELLS ASSETS ARE ONLY AVAILABLE TO CREDITORS OF THE SPONSORED CAPTIVE INSURANCE COMPANY AND RELATED


Printed Page 3853 . . . . . Tuesday, May 28, 2013

REQUIREMENTS, AND TO PROVIDE REQUIREMENTS CONCERNING OBLIGATIONS OF SPONSORED CAPTIVE INSURANCE COMPANIES WITH RESPECT TO PROTECTED CELLS AND ITS GENERAL ACCOUNT; TO AMEND SECTION 38-90-240, RELATING TO THE ELIGIBILITY OF A LICENSED CAPTIVE INSURANCE COMPANY FOR CERTIFICATE OF AUTHORITY TO ACT AS INSURER, SO AS TO DELETE THE EXISTING LANGUAGE AND TO PROVIDE FOR WHO MAY PARTICIPATE IN A SPONSORED CAPTIVE INSURANCE COMPANY AND OBLIGATIONS OF THESE PARTICIPANTS, AND TO PROVIDE SPONSORED CAPTIVE INSURANCE COMPANIES MAY NOT BE USED TO FACILITATE INSURANCE SECURITIZATION TRANSACTIONS; TO AMEND SECTION 38-90-450, AS AMENDED, RELATING TO ORGANIZATION REQUIREMENTS FOR SPECIAL PURPOSE FINANCIAL CAPTIVES, SO AS TO DELETE PROVISIONS CONCERNING THE MINIMUM NUMBER AND STATUS OF INCORPORATORS, AND PREREQUISITES TO TRANSMITTING ARTICLES OF INCORPORATION TO THE SECRETARY OF STATE; AND TO REPEAL SECTION 38-90-235 RELATING TO TERMS AND CONDITIONS FOR PROTECTED CELL INSURANCE COMPANIES TO APPLY TO SPONSORED CAPTIVE INSURANCE COMPANIES.

On motion of Senator MALLOY, the Bill was carried over.

H. 3960 (Word version) -- Rep. Sandifer: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-41-35 SO AS TO REQUIRE EMPLOYERS PARTICIPATING IN A MULTIPLE EMPLOYER SELF-INSURED HEALTH PLAN TO EXECUTE HOLD HARMLESS AGREEMENTS IN WHICH THE EMPLOYER AGREES TO PAY ALL UNPAID PORTIONS OF INSURED CLAIMS, AND TO REQUIRE THE DEPARTMENT OF INSURANCE TO PROVIDE FORMS THAT MUST BE USED FOR THESE AGREEMENTS, AMONG OTHER THINGS.

On motion of Senator O'DELL, the Bill was carried over.

H. 3360 (Word version) -- Reps. Owens, Daning, Hiott, Skelton, Simrill, Anthony, Bedingfield, Clemmons, Delleney, Hardwick, Henderson, Hixon, Limehouse, Nanney, Ott, Pope, G.R. Smith, J.E. Smith, Sottile, Stringer, Tallon, Taylor and Bales: A BILL TO AMEND SECTIONS 57-5-10, 57-5-70, AND 57-5-80, CODE OF LAWS OF SOUTH


Printed Page 3854 . . . . . Tuesday, May 28, 2013

CAROLINA, 1976, RELATING TO THE COMPOSITION OF THE STATE HIGHWAY SYSTEM, ADDITIONS TO THE STATE HIGHWAY SECONDARY SYSTEM, AND THE DELETION AND REMOVAL OF ROADS FROM THE STATE HIGHWAY SECONDARY SYSTEM, SO AS TO PROVIDE THAT ALL HIGHWAYS WITHIN THE STATE HIGHWAY SYSTEM SHALL BE CONSTRUCTED TO THE DEPARTMENT OF TRANSPORTATION STANDARDS, TO PROVIDE THE FUNDING SOURCES THAT THE DEPARTMENT USES TO CONSTRUCT AND MAINTAIN THESE HIGHWAYS, TO REVISE THE PROCEDURE AND WHEREBY ENTITIES TO WHICH THE DEPARTMENT MAY TRANSFER ROADS WITHIN THE STATE HIGHWAY SECONDARY SYSTEM; AND TO REVISE THE PROCEDURE WHEREBY THE DEPARTMENT MAY ADD A ROAD FROM THE COUNTY OR MUNICIPAL ROAD TO THE STATE HIGHWAY SYSTEM; AND TO REPEAL SECTION 57-5-90 RELATING TO THE ESTABLISHMENT AND MAINTENANCE OF BELT LINES AND SPURS.

On motion of Senator SETZLER, the Bill was carried over.

POINT OF ORDER, CARRIED OVER

S. 234 (Word version) -- Senators Coleman, Johnson and McElveen: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 67 TO TITLE 12 SO AS TO ENACT THE "SOUTH CAROLINA ABANDONED BUILDINGS REVITALIZATION ACT" WHICH PROVIDES THAT A TAXPAYER MAKING INVESTMENTS OF A CERTAIN SIZE IN REHABILITATING AN ABANDONED BUILDING MAY AT HIS OPTION RECEIVE SPECIFIED INCOME TAX CREDITS OR CREDITS AGAINST THE PROPERTY TAX LIABILITY.

The Senate proceeded to a consideration of the Bill, the question being the second reading of the Bill.

Senator O'DELL explained the Bill.

Senator BRYANT proposed the following amendment (234R005.KLB), which was ruled out of order:

Amend the bill, as and if amended, page 8, by striking SECTION 2 and inserting:

/   SECTION   2.   (A)   Article 9, Chapter 6, Title 12 of the 1976 Code is amended by adding:


Printed Page 3855 . . . . . Tuesday, May 28, 2013

"Section 12-6-1145.   (A)   As used in this section:

(1)   'Independent school' means a school, other than a public school, at which the compulsory attendance requirements of Section 59-65-10 may be met and that does not discriminate based on the grounds of race, color, religion, or national origin.

(2)   'Parent' means the natural or adoptive parent or legal guardian of a child.

(3)   'Qualifying student' means a student who is a South Carolina resident and who is eligible to be enrolled in a South Carolina secondary or elementary public school at the kindergarten or later year level for the current school year.

(4)   'Resident public school district' means the public school district in which a student resides.

(5)   'Tuition' means the total amount of money charged for the cost of a qualifying student to attend an independent school including, but not limited to, fees for attending the school and school-related transportation.

(6)   'Eligible school' means an independent school including those religious in nature, other than a public school, at which the compulsory attendance requirements of Section 59-65-10 may be met, that:

(a)   offers a general education to primary or secondary school students;

(b)   does not discriminate on the basis of race, color, or national origin;

(c)   is located in this State;

(d)   has an educational curriculum that includes courses set forth in the state's diploma requirements and where the students attending are administered national achievement or state standardized tests, or both, at progressive grade levels to determine student progress;

(e)   has school facilities that are subject to applicable federal, state, and local laws; and

(f)   is a member in good standing of the Southern Association of Colleges and Schools, the South Carolina Association of Christian Schools or the South Carolina Independent Schools Association.

(7)   'Nonprofit scholarship funding organization' means a charitable organization that:

(a)   is exempt from federal tax under Section 501(a) of the Internal Revenue Code by being listed as an exempt organization in Section 501(c)(3) of the Code;


Printed Page 3856 . . . . . Tuesday, May 28, 2013

(b)   allocates, after its first year of operation, at least ninety-five percent of its annual contributions and revenue received during a particular year to provide grants for tuition, transportation, or textbook expenses (collectively hereinafter referred to as tuition) or any combination thereof to children enrolled in an eligible school meeting the criteria of this section, and incurs administrative expenses annually, after its first year of operation, of not more than five percent of its annual contributions and revenue for a particular year;

(c)   allocates all of its funds used for grants on an annual basis to children who are 'exceptional needs' students as defined herein;

(d)   does not provide grants solely for the benefit of one school, and if the Department of Revenue determines that the nonprofit scholarship funding organization is providing grants to one particular school, the tax credit allowed by this section may be disallowed;

(e)   does not have as a member of its governing board any parent, legal guardian, or member of their immediate family who has a child or ward who is currently receiving or has received a scholarship grant authorized by this section from the organization within one year of the date the parent, legal guardian, or member of their immediate family became a board member; and

(f)   does not have as a member of its governing board any person who has been convicted of a felony, or who has declared bankruptcy within the last seven years.

(8)   'Person' means an individual, partnership, corporation, or other similar entity.

(9)   'Transportation' means transportation to and from school only.

(B)   A person is entitled to a tax credit for the amount of money the person contributes to a nonprofit scholarship funding organization up to the limits of this section if:

(1)   the contribution is used to provide grants for tuition, transportation, or textbook expenses or any combination thereof to exceptional needs children enrolled in eligible schools who qualify for these grants under the provisions of this section; and

(2)   the person does not designate a specific child or school as the beneficiary of the contribution.

(C)   Grants may be awarded by a scholarship funding organization in an amount not exceeding ten thousand dollars or the total cost of tuition, whichever is less, for students with 'exceptional needs' to attend an independent school. An 'exceptional needs' child is defined as a child who has been designated by the South Carolina Department


Printed Page 3857 . . . . . Tuesday, May 28, 2013

of Education to meet the requirements of CFR Part A Section 300.8 and the child's parents or legal guardian believe that the services provided by the school district of legal residence do not sufficiently meet the needs of the child.

(D)(1)   The tax credits authorized by subsection (B) may not exceed cumulatively a total of five million dollars for contributions made on behalf of 'exceptional needs' students. If the Department of Revenue determines that the total of such credits claimed by all taxpayers exceeds this amount, it shall allow credits only up to those amounts on a first come, first serve basis.

(2)   A taxpayer may not claim more than ten thousand dollars in contribution towards the tax credit authorized by subsection (B). Any unused tax credit may be carried forward for a period not exceeding five consecutive years. However, the tax credit is not refundable.

(3)   If a husband and wife file separate returns, they each may only claim one-half of the tax credit that would have been allowed for a joint return for the year.

(4)   The person shall apply for a credit under subsection (B) on or with the tax return for the period for which the credit is claimed.

(5)   The Department of Revenue shall prescribe the form and manner of proof required to obtain the credit authorized by subsection (B). Also, the department shall develop a method of informing taxpayers if either of the credit limits are met at any time during the tax year.

(6)   A person may claim a credit under subsection (B) for contributions made on or after January 1, 2014.

(E)   A corporation or entity entitled to a credit under subsection (B) may not convey, assign, or transfer the deduction or credit authorized by this section to another entity unless all of the assets of the entity are conveyed, assigned, or transferred in the same transaction.

(F)   Except as otherwise provided, neither the Department of Education, the Department of Revenue, nor any other state agency may regulate the educational program of an independent school that accepts students receiving scholarship grants pursuant to this section.

(G)(1)   The Education Oversight Committee, as established in Chapter 6, Title 59, is responsible for determining if an eligible school meets the criteria established by subsection (A)(6), and shall publish an approved list of such schools meeting this criteria below. For this purpose, it also shall promulgate regulations further enumerating the specifics of this criteria. In performing this function, the Education Oversight Committee shall establish an advisory committee made up of


Printed Page 3858 . . . . . Tuesday, May 28, 2013

not more than nine members including parents, and representatives of independent schools and independent school associations. The advisory committee shall provide recommendations to the Education Oversight Committee on the content of these regulations and any other matters requested by the Education Oversight Committee.

(2)(a)   By the first day of August for the current fiscal year, the Education Oversight Committee, on its website available to the general public, shall provide a list with addresses and telephone numbers of nonprofit scholarship funding organizations in good standing which provide grants under this section, and a list of approved independent schools which accept grants for eligible students and which in its determination are in compliance with the requirements of subsection (A)(6).

(b)   Student test scores, by category, on national achievement or state standardized tests, or both, for all grades tested and administered by an eligible school receiving or entitled to receive scholarship grants under this section must be transmitted to the Education Oversight Committee which in turn shall publish this information on its website with the most recent scores by category included.

(3)   Any independent school not determined to be an eligible school under the provisions of this section may seek review by filing a request for a contested case hearing with the Administrative Law Court in accordance with the court's rules of procedure.

(4)   The Education Oversight Committee, after consultation with its nine-member advisory committee, may exempt an independent school having students with exceptional needs who receive scholarship grants pursuant to this section from the curriculum requirements of subsection (A)(6)(d).

(H)(1)   Every nonprofit scholarship funding organization providing grants under subsection (C), shall cause an outside auditing firm to conduct a comprehensive financial audit of its operations in conformity with generally accepted accounting principles and shall furnish the same within thirty days of its completion and acceptance to the Secretary of State and Department of Revenue which must be made available by them on their website for public review.

(2)   Every independent school accepting grants for eligible students shall cause to be conducted a compliance audit by an outside entity or auditing firm examining its compliance with the provisions of this section, and shall furnish the same within thirty days of its completion and acceptance to the Secretary of State and Department of


Printed Page 3859 . . . . . Tuesday, May 28, 2013

Revenue which must be made available by them on their website for public review."

(B)   This SECTION takes effect upon approval of the governor and the tax credit authorized by this SECTION may be taken to the extent authorized beginning with calendar year 2013.

SECTION   3.   Unless otherwise provided, this act takes effect upon approval by the Governor, and applies to the rehabilitation, renovation, and redevelopment of abandoned buildings begun after the effective date of Chapter 67, Title 12 which are undertaken in conformity with the provisions of this act.   /

Renumber sections to conform.

Amend title to conform.

Senator BRYANT explained the amendment.

S. 234--Point of Order

Senator HUTTO raised a Point of Order under Rule 24A that the amendment was out of order inasmuch as it was not germane to the Bill.

The PRESIDENT sustained the Point of Order.

The amendment was ruled out of order.

On motion of Senator BRYANT, the Bill was carried over.

ADOPTED

S. 649 (Word version) -- Senators Bryant, Shealy, Bright, Corbin, Davis, S. Martin, Alexander, Grooms, L. Martin: A SENATE RESOLUTION TO ENCOURAGE BUSINESSES AND FIREARMS MANUFACTURERS FROM OUT-OF-STATE TO LOCATE IN THE PALMETTO STATE.

The Resolution was adopted.

THE SENATE PROCEEDED TO A CONSIDERATION OF H. 3710, THE GENERAL APPROPRIATIONS BILL.


Printed Page 3860 . . . . . Tuesday, May 28, 2013

AMENDED, READ THE THIRD TIME
RETURNED TO THE HOUSE WITH AMENDMENTS

3829.htm--GENERAL APPROPRIATIONS BILL

The Senate proceeded to a consideration of the Bill, the question being the third reading of the Bill.

Senator MALLOY made a motion to waive the provisions of Rule 26B to take up a further amendment.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 12; Nays 23

AYES

Allen                     Coleman                   Hutto
Johnson                   Lourie                    Malloy
McElveen                  Nicholson                 Scott
Setzler                   Sheheen                   Williams

Total--12

NAYS

Alexander                 Bennett                   Bright
Bryant                    Campbell                  Corbin
Courson                   Cromer                    Davis
Fair                      Gregory                   Grooms
Hembree                   Leatherman                Martin, Larry
Martin, Shane             Massey                    O'Dell
Peeler                    Shealy                    Turner
Verdin                    Young

Total--23

Having failed to receive the necessary vote, the motion to waive the provisions of Rule 26B failed.

Senator LARRY MARTIN asked unanimous consent to make a motion that the Senate proceed to an alphabetical call of the Senate to be taken with the affirmative, negative and abstention votes recorded


Printed Page 3861 . . . . . Tuesday, May 28, 2013

on each Section and each Senator would turn in to the Desk a signed sheet affirming those votes.

Senator HUTTO objected.

Senator GROOMS made a motion to waive the provisions of Rule 26B to take up Amendment No. 167.

There was no objection.

Amendment No. 167

Senator HUTTO proposed the following amendment (3710R124.CBH.DOCX), which was adopted:

Amend the bill, as and if amended, Part IB, Section 38, DEPARTMENT OF SOCIAL SERVICES, page 422, paragraph 38.20, by striking subsection (C) and inserting:

/   (C)   The total amount of monies appropriated must be divided equally between contracts awarded pursuant to subsection (E)(1) and contracts awarded pursuant to subsection (E)(2). the contracts and Monies will be paid over a twelve month basis for services rendered. Unexpended funds shall be carried forward for the purpose of fulfilling the department's contractual agreement. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator GROOMS explained the amendment.

The amendment was adopted.

The Senate proceeded to Section 1, 1A, 1B, Part 1A and Part 1B, Department of Education.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 38; Nays 1

AYES

Alexander                 Allen                     Bennett
Bryant                    Campbell                  Cleary
Coleman                   Corbin                    Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Johnson


Printed Page 3862 . . . . . Tuesday, May 28, 2013

Leatherman                Lourie                    Malloy
Martin, Larry             Martin, Shane             Massey
Matthews                  McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Scott                     Setzler                   Shealy
Sheheen                   Turner                    Verdin
Williams                  Young

Total--38

NAYS

Bright

Total--1

Sections 1, 1A, 1B, Part 1A and Part 1B, was adopted.

Statement by Senator COURSON

Had I been present at the time the vote was taken on Section 1, Part 1A, 1B, Part 1A and 1B of H. 3710, the General Appropriations Bill, I would have voted in favor adopting Section 1, 1A, 1B, Part 1A and 1B. I was out of the Chamber meeting with the Speaker of the House regarding Sine Die legislation.

The Senate proceeded to Section 3, Part 1A and 1B, Lottery Expenditure Account.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 34; Nays 6

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Courson                   Cromer                    Davis
Fair                      Ford                      Gregory
Grooms                    Hayes                     Hembree
Hutto                     Johnson                   Leatherman
Lourie                    Martin, Larry             Massey
Matthews                  McElveen                  McGill
Nicholson                 O'Dell                    Peeler


Printed Page 3863 . . . . . Tuesday, May 28, 2013

Scott                     Setzler                   Shealy
Sheheen                   Turner                    Verdin
Williams

Total--34

NAYS

Bright                    Bryant                    Corbin
Malloy                    Martin, Shane             Young

Total--6

Section 3, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 4, Part 1A, Education Oversight Committee.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 35; Nays 5

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Courson                   Cromer                    Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Johnson
Leatherman                Lourie                    Malloy
Martin, Larry             Massey                    Matthews
McElveen                  McGill                    Nicholson
O'Dell                    Peeler                    Reese
Scott                     Setzler                   Shealy
Sheheen                   Turner                    Verdin
Williams                  Young

Total--35


Printed Page 3864 . . . . . Tuesday, May 28, 2013

NAYS

Bright                    Bryant                    Corbin
Davis                     Martin, Shane

Total--5

Section 4, Part 1A, was adopted.

Statement by Senator FAIR

Had I been present at the time the vote was taken on Section 4, Part 1A of H. 3710, the General Appropriations Bill, I would have voted in favor adopting Section 4, Part 1A.

RECESS

At 12:14 P.M., on motion of Senator PEELER, the Senate receded from business until 1:30 P.M.

AFTERNOON SESSION

The Senate reassembled at 1:32 P.M. and was called to order by the PRESIDENT.

Point of Quorum

At 1:33 P.M., Senator COURSON made the point that a quorum was not present. It was ascertained that a quorum was not present.

Call of the Senate

Senator COURSON moved that a Call of the Senate be made. The following Senators answered the Call:

Alexander                 Bennett                   Bright
Campbell                  Cleary                    Courson
Cromer                    Davis                     Fair
Gregory                   Grooms                    Hembree
Johnson                   Leatherman                Malloy
Martin, Larry             Martin, Shane             Massey
Nicholson                 O'Dell                    Peeler
Setzler                   Shealy                    Sheheen
Thurmond                  Turner                    Young

A quorum being present, the Senate resumed.


Printed Page 3865 . . . . . Tuesday, May 28, 2013

The Senate resumed consideration of H. 3710, the General Appropriations Bill.

The Senate proceeded to Section 5, Part 1A and Part 1B, Wil Lou Gray Opportunity School.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 30; Nays 6

AYES

Alexander                 Bennett                   Campbell
Cleary                    Courson                   Cromer
Fair                      Gregory                   Grooms
Hayes                     Hembree                   Hutto
Johnson                   Leatherman                Lourie
Malloy                    Martin, Larry             Massey
McElveen                  Nicholson                 O'Dell
Peeler                    Rankin                    Scott
Setzler                   Shealy                    Sheheen
Turner                    Williams                  Young

Total--30

NAYS

Bright                    Bryant                    Corbin
Davis                     Martin, Shane             Thurmond

Total--6

Section 5, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 6, Part 1A and Part 1B, School for the Deaf and Blind.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 36; Nays 3


Printed Page 3866 . . . . . Tuesday, May 28, 2013

AYES

Alexander                 Bennett                   Campbell
Cleary                    Corbin                    Courson
Cromer                    Davis                     Fair
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Johnson
Leatherman                Lourie                    Malloy
Martin, Larry             Martin, Shane             Massey
Matthews                  McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Rankin                    Reese                     Scott
Setzler                   Shealy                    Sheheen
Turner                    Williams                  Young

Total--36

NAYS

Bright                    Bryant                    Thurmond

Total--3

Section 6, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 7, Part 1A and Part 1B, John de la Howe School.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 33; Nays 7

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Cromer
Fair                      Gregory                   Hayes
Hembree                   Hutto                     Jackson
Johnson                   Leatherman                Malloy
Martin, Larry             Massey                    Matthews
McElveen                  McGill                    Nicholson
O'Dell                    Peeler                    Rankin
Reese                     Scott                     Setzler


Printed Page 3867 . . . . . Tuesday, May 28, 2013

Shealy                    Sheheen                   Turner
Verdin                    Williams                  Young

Total--33

NAYS

Bright                    Bryant                    Corbin
Davis                     Grooms                    Martin, Shane
Thurmond

Total--7

Section 7, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 8, Part 1A and Part 1B, Education Television Commission.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 34; Nays 8

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Courson
Cromer                    Gregory                   Hayes
Hembree                   Hutto                     Jackson
Johnson                   Leatherman                Lourie
Malloy                    Martin, Larry             Martin, Shane
Massey                    Matthews                  McElveen
McGill                    Nicholson                 O'Dell
Peeler                    Rankin                    Reese
Scott                     Setzler                   Shealy
Sheheen                   Turner                    Williams
Young

Total--34


Printed Page 3868 . . . . . Tuesday, May 28, 2013

NAYS

Bright                    Bryant                    Corbin
Davis                     Fair                      Grooms
Thurmond                  Verdin

Total--8

Section 8, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 11, Part 1A and Part 1B, Commission on Higher Education.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 40; Nays 4

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Jackson
Johnson                   Leatherman                Lourie
Malloy                    Martin, Larry             Massey
Matthews                  McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Rankin                    Reese                     Scott
Setzler                   Shealy                    Sheheen
Turner                    Verdin                    Williams
Young

Total--40

NAYS

Bright                    Bryant                    Martin, Shane
Thurmond

Total--4

Section 11, Part 1A and Part 1B, was adopted.


Printed Page 3869 . . . . . Tuesday, May 28, 2013

The Senate proceeded to Section 12, Part 1A, Higher Education Tuition Grants Commission.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 40; Nays 2

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Corbin
Courson                   Cromer                    Davis
Fair                      Ford                      Gregory
Grooms                    Hayes                     Hembree
Hutto                     Jackson                   Johnson
Leatherman                Malloy                    Martin, Larry
Martin, Shane             Massey                    Matthews
McElveen                  McGill                    Nicholson
O'Dell                    Peeler                    Rankin
Reese                     Scott                     Setzler
Shealy                    Sheheen                   Thurmond
Turner                    Verdin                    Williams
Young

Total--40

NAYS

Bright                    Bryant

Total--2

Section 12, Part 1A, was adopted.

The Senate proceeded to Section 13, Part 1A, The Citadel.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 41; Nays 2

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman


Printed Page 3870 . . . . . Tuesday, May 28, 2013

Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Jackson
Johnson                   Leatherman                Lourie
Malloy                    Martin, Larry             Martin, Shane
Massey                    Matthews                  McElveen
McGill                    O'Dell                    Peeler
Rankin                    Reese                     Scott
Setzler                   Shealy                    Sheheen
Thurmond                  Turner                    Verdin
Williams                  Young

Total--41

NAYS

Bright                    Bryant

Total--2

Section 13, Part 1A, was adopted.

The Senate proceeded to Section 14, Part 1A and Part 1B, Clemson University.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 41; Nays 2

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Jackson
Johnson                   Leatherman                Lourie
Malloy                    Martin, Larry             Massey
Matthews                  McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Rankin                    Reese                     Scott


Printed Page 3871 . . . . . Tuesday, May 28, 2013

Setzler                   Shealy                    Sheheen
Thurmond                  Turner                    Verdin
Williams                  Young

Total--41

NAYS

Bright                    Bryant

Total--2

Section 14, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 15, Part 1A, University of Charleston.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 41; Nays 3

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Jackson
Johnson                   Leatherman                Lourie
Malloy                    Martin, Larry             Massey
Matthews                  McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Rankin                    Reese                     Scott
Setzler                   Shealy                    Sheheen
Thurmond                  Turner                    Verdin
Williams                  Young

Total--41


Printed Page 3872 . . . . . Tuesday, May 28, 2013

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

Section 15, Part 1A, was adopted.

The Senate proceeded to Section 16, Part 1A, Coastal Carolina University.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 41; Nays 3

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Jackson
Johnson                   Leatherman                Lourie
Malloy                    Martin, Larry             Massey
Matthews                  McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Rankin                    Reese                     Scott
Setzler                   Shealy                    Sheheen
Thurmond                  Turner                    Verdin
Williams                  Young

Total--41

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

Section 16, Part 1A, was adopted.

The Senate proceeded to Section 17, Part 1A, Francis Marion University.


Printed Page 3873 . . . . . Tuesday, May 28, 2013

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 40; Nays 3

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Johnson
Leatherman                Lourie                    Malloy
Martin, Larry             Massey                    Matthews
McElveen                  McGill                    Nicholson
O'Dell                    Peeler                    Rankin
Reese                     Scott                     Setzler
Shealy                    Sheheen                   Thurmond
Turner                    Verdin                    Williams
Young

Total--40

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

Section 17, Part 1A, was adopted.

The Senate proceeded to Section 18, Part 1A, Lander University.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 40; Nays 3

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes


Printed Page 3874 . . . . . Tuesday, May 28, 2013

Hembree                   Hutto                     Johnson
Leatherman                Lourie                    Malloy
Martin, Larry             Massey                    Matthews
McElveen                  McGill                    Nicholson
O'Dell                    Peeler                    Rankin
Reese                     Scott                     Setzler
Shealy                    Sheheen                   Thurmond
Turner                    Verdin                    Williams
Young

Total--40

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

Section 18, Part 1A, was adopted.

The Senate proceeded to Section 19, Part 1A and Part 1B, South Carolina State University.

Senator MALLOY spoke on the section.

Remarks by Senator MALLOY

Thank you, Mr. PRESIDENT, lady and gentlemen of the Senate.

I would like to have your attention for something that is very critical. As you well know, to me, as it should be to the rest of this State, we are on the third reading of the budget. And we have had an opportunity now to spend a few weeks on the discussion of what we thought were the appropriate appropriations for the State of South Carolina.

This amendment gives us one more chance, in case that there is revised thought. It is the Affordable Health Care Amendment. It gives us a chance to put it in our budget. I know how some people in this body think, and I know how some others are thinking as it relates to the philosophy of this particular provision. I insist to you and would tell you that it is my view that one of the most important things that we will get a chance to do in our history is to follow the Affordable Health Care Act.

There are 300,000 people that will be able to be insured. We have told you before it will be working people without insurance. I stand as


Printed Page 3875 . . . . . Tuesday, May 28, 2013

a witness today to tell you that, one, I do not believe my wife would be alive if I did not have insurance. After she discovered she had an antibody in her blood system, she was placed on medication for the rest of her life. I just remember those situations that we have had in my family, and in all of our families where we know that if we did not have coverage, then we would not be able to exist.

I recall once when I was only 31 years of age, I went in with an Open Sight Cyst. The young man who came in behind me, and who did not have coverage, discovered it was too late. It had been going on for a while. He waited, and came in. Same age as me and he died. I would commit to you that the rest of the State does not enjoy the coverage that we have here in the South Carolina General Assembly. I would suggest that those that have it provided in their jobs have this coverage either, but this would cover people that are working as well. We are now on the third reading of the Bill. You only get a few minutes to explain what the amendment does. We have talked about it, and we will have another chance to talk to you about it -- one more time.

Our country took a step. You know, whether or not we approve of the President, whether we agree with the political philosophy, this is an opportunity for our State, like so many other states -- like Kentucky, like others, that decided to take this health care. I do not quite understand. What sense does it make? When we start talking about health care for the first three years and it does not cost us anything, and to add so much money for our economy. With that, I realize that we have to take a section-by-section vote on this budget. I want to move that we take this amendment up on third reading. It requires a three-fifths vote. I am going to ask for a roll call vote. I think your vote, again, will affirm your belief as to whether or not South Carolina is on the right side of history. I think whenever they start talking years from now about what this General Assembly did and what we had a chance to do, they will ask, "Did we do what was right for our fellow man, fellow woman, fellow child?"

I want this Senate to be the voice, for those folks who do not have folks here, as we pledged to do. These are the eyes that do not see us and cries of voices that we do not hear, because they do not call us. But, we hear from them whenever they have other issues, as it relates to health care in our State -- whenever we have to take care of some responsibility on the back side because we have not done it on the front side. I think this will be a cost to us. I think we will look back years after we are gone and say, "We were in error; that we did not do right by the rest of South Carolina."


Printed Page 3876 . . . . . Tuesday, May 28, 2013

Finally, I would just say that 300,000 people (I do not know the exact number), out of 4.6 million people -- 300,000 here are not insured. These folks would get an opportunity to be insured. We have the first three years. It does not cost us anything to give it an opportunity. I understand the conversation about the wellness and health. You know, how many people here proclaim themselves healthy? How many of you proclaim yourselves healthy? They can go to a doctor whenever they want, but they do not. For those folks that have a choice. We should be able to give them that opportunity and give them coverage. This amendment is the Affordable Health Care. We get a chance to take it up on third reading. It takes a three-fifths vote for consideration. I will ask for roll call vote to take it up on third reading.

Thank you.

On motion of Senator FORD, with unanimous consent, the remarks of Senator MALLOY were ordered printed in the Journal.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 41; Nays 3

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Jackson
Johnson                   Leatherman                Lourie
Malloy                    Martin, Larry             Massey
Matthews                  McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Rankin                    Reese                     Scott
Setzler                   Shealy                    Sheheen
Thurmond                  Turner                    Verdin
Williams                  Young

Total--41


Printed Page 3877 . . . . . Tuesday, May 28, 2013

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

Section 19, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 20A-H, Part 1A and Part 1B, University of South Carolina.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 40; Nays 4

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Jackson
Johnson                   Leatherman                Lourie
Malloy                    Martin, Larry             Massey
Matthews                  McElveen                  McGill
Nicholson                 Peeler                    Rankin
Reese                     Scott                     Setzler
Shealy                    Sheheen                   Thurmond
Turner                    Verdin                    Williams
Young

Total--40

NAYS

Bright                    Bryant                    Martin, Shane
O'Dell

Total--4

Section 20A-H, Part 1A and Part 1B, was adopted.


Printed Page 3878 . . . . . Tuesday, May 28, 2013

Statement by Senator SHANE MARTIN

I wish the Journal to reflect that had the Parts A-H of Section 20 been voted on separately, I would have voted "Nay" on Section 20A and "Aye" on Sections 20B-H.

The Senate proceeded to Section 21, Part 1A, Winthrop University.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 41; Nays 3

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Jackson
Johnson                   Leatherman                Lourie
Malloy                    Martin, Larry             Massey
Matthews                  McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Rankin                    Reese                     Scott
Setzler                   Shealy                    Sheheen
Thurmond                  Turner                    Verdin
Williams                  Young

Total--41

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

Section 21, Part 1A, was adopted.

The Senate proceeded to Section 23, Part 1A and Part 1B, Medical University of South Carolina.


Printed Page 3879 . . . . . Tuesday, May 28, 2013

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 41; Nays 3

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Jackson
Johnson                   Leatherman                Lourie
Malloy                    Martin, Larry             Massey
Matthews                  McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Rankin                    Reese                     Scott
Setzler                   Shealy                    Sheheen
Thurmond                  Turner                    Verdin
Williams                  Young

Total--41

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

Section 23, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 24, Part 1A, Area Health Education Consortium.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 37; Nays 7

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Courson                   Cromer                    Davis
Fair                      Ford                      Gregory


Printed Page 3880 . . . . . Tuesday, May 28, 2013

Grooms                    Hayes                     Hembree
Hutto                     Jackson                   Johnson
Leatherman                Lourie                    Malloy
Martin, Larry             Massey                    Matthews
McElveen                  McGill                    Nicholson
O'Dell                    Peeler                    Rankin
Reese                     Scott                     Setzler
Shealy                    Sheheen                   Verdin
Williams

Total--37

NAYS

Bright                    Bryant                    Corbin
Martin, Shane             Thurmond                  Turner
Young

Total--7

Section 24, Part 1A, was adopted.

The Senate proceeded to Section 25, Part 1A and Part 1B, Technical and Comprehensive Education Board.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 40; Nays 2

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Jackson                   Johnson
Leatherman                Lourie                    Martin, Larry
Martin, Shane             Massey                    Matthews
McElveen                  McGill                    Nicholson
O'Dell                    Peeler                    Rankin
Reese                     Scott                     Setzler
Shealy                    Sheheen                   Thurmond


Printed Page 3881 . . . . . Tuesday, May 28, 2013

Turner                    Verdin                    Williams
Young

Total--40

NAYS

Bright                    Bryant

Total--2

Section 25, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 26, Part 1A and Part 1B, Department of Archives and History.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 39; Nays 4

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Courson                   Cromer                    Davis
Fair                      Ford                      Gregory
Hayes                     Hembree                   Hutto
Jackson                   Johnson                   Leatherman
Lourie                    Malloy                    Martin, Larry
Martin, Shane             Massey                    Matthews
McElveen                  McGill                    Nicholson
O'Dell                    Peeler                    Rankin
Reese                     Scott                     Setzler
Shealy                    Sheheen                   Turner
Verdin                    Williams                  Young

Total--39

NAYS

Bright                    Bryant                    Corbin
Thurmond

Total--4


Printed Page 3882 . . . . . Tuesday, May 28, 2013

Section 26, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 27, Part 1A and Part 1B, State Library.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 39; Nays 4

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Courson
Cromer                    Davis                     Fair
Ford                      Gregory                   Grooms
Hayes                     Hembree                   Hutto
Jackson                   Johnson                   Leatherman
Lourie                    Malloy                    Martin, Larry
Martin, Shane             Massey                    Matthews
McElveen                  McGill                    Nicholson
O'Dell                    Peeler                    Rankin
Reese                     Scott                     Setzler
Shealy                    Sheheen                   Turner
Verdin                    Williams                  Young

Total--39

NAYS

Bright                    Bryant                    Corbin
Thurmond

Total--4

Section 27, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 28, Part 1A and Part 1B, Arts Commission.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 31; Nays 11; Abstain 1


Printed Page 3883 . . . . . Tuesday, May 28, 2013

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Courson
Cromer                    Ford                      Grooms
Hayes                     Hembree                   Hutto
Jackson                   Johnson                   Leatherman
Lourie                    Malloy                    Martin, Larry
Matthews                  McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Rankin                    Reese                     Scott
Setzler                   Sheheen                   Turner
Williams

Total--31

NAYS

Bright                    Bryant                    Corbin
Davis                     Fair                      Gregory
Massey                    Shealy                    Thurmond
Verdin                    Young

Total--11

ABSTAIN

Martin, Shane

Total--1

Section 28, Part 1A and Part 1B, was adopted.

Statement by Senator SHANE MARTIN

I am the Spartanburg Senate Delegation appointee to the Spartanburg Arts Partnership Board. It receives money from the Arts Commission and, therefore, I abstained from voting on Section 28 of the budget.

The Senate proceeded to Section 29, Part 1A and Part 1B, State Museum Commission.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 35; Nays 8


Printed Page 3884 . . . . . Tuesday, May 28, 2013

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Courson
Cromer                    Ford                      Gregory
Grooms                    Hayes                     Hembree
Hutto                     Jackson                   Johnson
Leatherman                Lourie                    Malloy
Martin, Larry             Martin, Shane             Massey
Matthews                  McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Rankin                    Reese                     Scott
Setzler                   Sheheen                   Turner
Verdin                    Williams

Total--35

NAYS

Bright                    Bryant                    Corbin
Davis                     Fair                      Shealy
Thurmond                  Young

Total--8

Section 29, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 32, Part 1A and Part 1B, Department of Vocational Rehabilitation.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 36; Nays 5

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Courson
Cromer                    Fair                      Ford
Gregory                   Grooms                    Hayes
Hutto                     Jackson                   Johnson
Leatherman                Lourie                    Malloy
Martin, Larry             Martin, Shane             Massey
McElveen                  McGill                    Nicholson


Printed Page 3885 . . . . . Tuesday, May 28, 2013

O'Dell                    Peeler                    Rankin
Reese                     Scott                     Setzler
Shealy                    Sheheen                   Turner
Verdin                    Williams                  Young

Total--36

NAYS

Bright                    Bryant                    Corbin
Davis                     Thurmond

Total--5

Section 32, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 33, Part 1A and Part 1B, Department of Health and Human Services.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 23; Nays 18; Abstain 1

AYES

Alexander                 Bennett                   Campbell
Cleary                    Corbin                    Courson
Cromer                    Fair                      Gregory
Grooms                    Hayes                     Hembree
Leatherman                Martin, Larry             McGill
O'Dell                    Peeler                    Rankin
Shealy                    Thurmond                  Turner
Verdin                    Young

Total--23

NAYS

Allen                     Bright                    Bryant
Ford                      Hutto                     Jackson
Johnson                   Lourie                    Malloy
Martin, Shane             Massey                    McElveen


Printed Page 3886 . . . . . Tuesday, May 28, 2013

Nicholson                 Reese                     Scott
Setzler                   Sheheen                   Williams

Total--18

ABSTAIN

Davis

Total--1

Section 33, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 34, Part 1A and Part 1B, Department of Health and Environmental Control.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 28; Nays 8; Abstain 5

AYES

Alexander                 Allen                     Campbell
Cleary                    Courson                   Cromer
Fair                      Ford                      Gregory
Grooms                    Hayes                     Jackson
Johnson                   Leatherman                Martin, Larry
Massey                    Matthews                  McElveen
McGill                    Nicholson                 O'Dell
Rankin                    Reese                     Scott
Shealy                    Sheheen                   Turner
Williams

Total--28

NAYS

Bennett                   Bright                    Bryant
Corbin                    Hembree                   Martin, Shane
Peeler                    Thurmond

Total--8


Printed Page 3887 . . . . . Tuesday, May 28, 2013

ABSTAIN

Davis                     Hutto                     Malloy
Setzler                   Young

Total--5

Section 34, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 35, Part 1A and Part 1B, Department of Mental Health.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 39; Nays 2

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Corbin
Courson                   Cromer                    Davis
Fair                      Ford                      Gregory
Grooms                    Hayes                     Hutto
Jackson                   Johnson                   Leatherman
Malloy                    Martin, Larry             Martin, Shane
Massey                    Matthews                  McElveen
McGill                    Nicholson                 O'Dell
Peeler                    Rankin                    Reese
Scott                     Setzler                   Shealy
Sheheen                   Thurmond                  Turner
Verdin                    Williams                  Young

Total--39

NAYS

Bright                    Bryant

Total--2

Section 35, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 36, Part 1A and Part 1B, Department of Disabilities and Special Needs.


Printed Page 3888 . . . . . Tuesday, May 28, 2013

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 41; Nays 2

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Corbin
Courson                   Cromer                    Davis
Fair                      Ford                      Gregory
Grooms                    Hayes                     Hembree
Hutto                     Jackson                   Johnson
Leatherman                Lourie                    Malloy
Martin, Larry             Martin, Shane             Massey
Matthews                  McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Rankin                    Reese                     Scott
Setzler                   Shealy                    Sheheen
Thurmond                  Turner                    Verdin
Williams                  Young

Total--41

NAYS

Bright                    Bryant

Total--2

Section 36, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 37, Part 1A and Part 1B, Department of Alcohol and Other Drug Abuse Services.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 35; Nays 6

AYES

Alexander                 Bennett                   Campbell
Cleary                    Courson                   Cromer
Fair                      Ford                      Gregory
Grooms                    Hayes                     Hembree


Printed Page 3889 . . . . . Tuesday, May 28, 2013

Hutto                     Johnson                   Leatherman
Lourie                    Malloy                    Martin, Larry
Massey                    Matthews                  McElveen
McGill                    Nicholson                 O'Dell
Peeler                    Rankin                    Reese
Scott                     Setzler                   Shealy
Sheheen                   Turner                    Verdin
Williams                  Young

Total--35

NAYS

Bright                    Bryant                    Corbin
Davis                     Martin, Shane             Thurmond

Total--6

Section 37, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 38, Part 1A and Part 1B, Department of Social Services.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 31; Nays 10

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Courson
Cromer                    Ford                      Grooms
Hayes                     Hembree                   Hutto
Jackson                   Johnson                   Leatherman
Lourie                    Malloy                    Martin, Larry
Massey                    McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Rankin                    Reese                     Scott
Setzler                   Turner                    Williams
Young

Total--31


Printed Page 3890 . . . . . Tuesday, May 28, 2013

NAYS

Bright                    Bryant                    Corbin
Davis                     Fair                      Martin, Shane
Shealy                    Sheheen                   Thurmond
Verdin

Total--10

Section 38, Part 1A and Part 1B, was adopted.

Objection

Senator FORD asked unanimous consent to make a motion that the prior roll call be applied to the remaining sections.

Senator MALLOY objected.

The Senate proceeded to Section 39, Part 1A and Part 1B, Commission for the Blind.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 38; Nays 2

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Corbin
Courson                   Cromer                    Davis
Fair                      Ford                      Gregory
Grooms                    Hayes                     Hembree
Hutto                     Johnson                   Leatherman
Lourie                    Malloy                    Martin, Larry
Martin, Shane             Massey                    McElveen
McGill                    Nicholson                 O'Dell
Peeler                    Rankin                    Reese
Scott                     Setzler                   Shealy
Thurmond                  Turner                    Verdin
Williams                  Young

Total--38


Printed Page 3891 . . . . . Tuesday, May 28, 2013

NAYS

Bright                    Bryant

Total--2

Section 39, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 42, Part 1A and Part 1B, Housing Finance and Development.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 29; Nays 11

AYES

Alexander                 Allen                     Bennett
Cleary                    Courson                   Fair
Ford                      Gregory                   Grooms
Hayes                     Hembree                   Hutto
Johnson                   Leatherman                Lourie
Malloy                    Martin, Larry             Massey
McElveen                  McGill                    Nicholson
O'Dell                    Peeler                    Rankin
Reese                     Scott                     Setzler
Sheheen                   Williams

Total--29

NAYS

Bright                    Bryant                    Corbin
Cromer                    Davis                     Martin, Shane
Shealy                    Thurmond                  Turner
Verdin                    Young

Total--11

Section 42, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 43, Part 1A and Part 1B, Forestry Commission.


Printed Page 3892 . . . . . Tuesday, May 28, 2013

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 39; Nays 2

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Corbin
Courson                   Cromer                    Davis
Fair                      Ford                      Gregory
Grooms                    Hayes                     Hembree
Hutto                     Johnson                   Leatherman
Lourie                    Malloy                    Martin, Larry
Martin, Shane             Massey                    McElveen
McGill                    Nicholson                 O'Dell
Peeler                    Rankin                    Reese
Scott                     Setzler                   Shealy
Sheheen                   Thurmond                  Turner
Verdin                    Williams                  Young

Total--39

NAYS

Bright                    Bryant

Total--2

Section 43, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 44, Part 1A and Part 1B, Department of Agriculture.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 38; Nays 5

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes


Printed Page 3893 . . . . . Tuesday, May 28, 2013

Hembree                   Hutto                     Johnson
Leatherman                Lourie                    Malloy
Martin, Larry             Matthews                  McElveen
McGill                    Nicholson                 O'Dell
Peeler                    Rankin                    Reese
Scott                     Setzler                   Shealy
Sheheen                   Turner                    Verdin
Williams                  Young

Total--38

NAYS

Bright                    Bryant                    Martin, Shane
Massey                    Thurmond

Total--5

Section 44, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 45, Part 1A and Part 1B, Clemson University - PSA.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 36; Nays 5

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Courson
Cromer                    Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Johnson
Leatherman                Lourie                    Malloy
Martin, Larry             Massey                    Matthews
McElveen                  McGill                    Nicholson
O'Dell                    Peeler                    Rankin
Reese                     Scott                     Setzler
Sheheen                   Thurmond                  Turner
Verdin                    Williams                  Young

Total--36


Printed Page 3894 . . . . . Tuesday, May 28, 2013

NAYS

Bright                    Bryant                    Davis
Martin, Shane             Shealy

Total--5

Section 45, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 46, Part 1A, South Carolina State University - PSA.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 35; Nays 6

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Courson
Cromer                    Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Johnson
Leatherman                Lourie                    Malloy
Martin, Larry             Matthews                  McElveen
McGill                    Nicholson                 O'Dell
Peeler                    Rankin                    Reese
Scott                     Setzler                   Sheheen
Thurmond                  Turner                    Verdin
Williams                  Young

Total--35

NAYS

Bright                    Bryant                    Davis
Martin, Shane             Massey                    Shealy

Total--6

Section 46, Part 1A, was adopted.


Printed Page 3895 . . . . . Tuesday, May 28, 2013

The Senate proceeded to Section 47, Part 1A and Part 1B, Department of Natural Resources.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 39; Nays 3

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Johnson
Leatherman                Lourie                    Malloy
Martin, Larry             Martin, Shane             Matthews
McElveen                  McGill                    Nicholson
O'Dell                    Peeler                    Rankin
Reese                     Scott                     Setzler
Shealy                    Sheheen                   Turner
Verdin                    Williams                  Young

Total--39

NAYS

Bright                    Bryant                    Thurmond

Total--3

Section 47, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 48, Part 1A and Part 1B, Sea Grant Consortium.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 39; Nays 4

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman


Printed Page 3896 . . . . . Tuesday, May 28, 2013

Courson                   Cromer                    Davis
Fair                      Ford                      Gregory
Grooms                    Hayes                     Hembree
Hutto                     Johnson                   Leatherman
Lourie                    Malloy                    Martin, Larry
Massey                    Matthews                  McElveen
McGill                    Nicholson                 O'Dell
Peeler                    Rankin                    Reese
Scott                     Setzler                   Shealy
Sheheen                   Thurmond                  Turner
Verdin                    Williams                  Young

Total--39

NAYS

Bright                    Bryant                    Corbin
Martin, Shane

Total--4

Section 48, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 49, Part 1A and Part 1B, Department of Parks, Recreation and Tourism.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 39; Nays 4

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Johnson
Leatherman                Lourie                    Malloy
Martin, Larry             Massey                    Matthews
McElveen                  McGill                    Nicholson
O'Dell                    Peeler                    Rankin
Reese                     Scott                     Setzler


Printed Page 3897 . . . . . Tuesday, May 28, 2013

Shealy                    Sheheen                   Turner
Verdin                    Williams                  Young

Total--39

NAYS

Bright                    Bryant                    Martin, Shane
Thurmond

Total--4

Section 49, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 50, Part 1A and Part 1B, Department of Commerce.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 39; Nays 3

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Johnson
Leatherman                Lourie                    Malloy
Martin, Larry             Massey                    Matthews
McElveen                  McGill                    Nicholson
Peeler                    Rankin                    Reese
Scott                     Setzler                   Shealy
Sheheen                   Thurmond                  Turner
Verdin                    Williams                  Young

Total--39

NAYS

Bright                    Bryant                    Martin, Shane

Total--3


Printed Page 3898 . . . . . Tuesday, May 28, 2013

Section 50, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 51, Part 1A, Jobs-Economic Development Authority.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 38; Nays 4

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Cromer                    Davis                     Fair
Ford                      Gregory                   Grooms
Hayes                     Hembree                   Hutto
Johnson                   Leatherman                Lourie
Malloy                    Martin, Larry             Massey
Matthews                  McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Rankin                    Reese                     Scott
Setzler                   Shealy                    Sheheen
Thurmond                  Turner                    Verdin
Williams                  Young

Total--38

NAYS

Bright                    Bryant                    Corbin
Martin, Shane

Total--4

Section 51, Part 1A, was adopted.

The Senate proceeded to Section 52, Part 1A, Patriots Point Development Authority.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 32; Nays 10


Printed Page 3899 . . . . . Tuesday, May 28, 2013

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Courson
Cromer                    Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Johnson
Leatherman                Lourie                    Malloy
Martin, Larry             Matthews                  McElveen
McGill                    Nicholson                 O'Dell
Rankin                    Reese                     Scott
Setzler                   Sheheen                   Thurmond
Verdin                    Williams

Total--32

NAYS

Bright                    Bryant                    Corbin
Davis                     Martin, Shane             Massey
Peeler                    Shealy                    Turner
Young

Total--10

Section 52, Part 1A, was adopted.

The Senate proceeded to Section 53, Part 1A and Part 1B, South Carolina Conservation Bank.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 37; Nays 6

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Courson                   Cromer                    Davis
Ford                      Gregory                   Grooms
Hayes                     Hembree                   Hutto
Johnson                   Leatherman                Lourie
Malloy                    Martin, Larry             Massey
Matthews                  McElveen                  McGill


Printed Page 3900 . . . . . Tuesday, May 28, 2013

Nicholson                 O'Dell                    Rankin
Reese                     Scott                     Setzler
Shealy                    Sheheen                   Thurmond
Turner                    Verdin                    Williams
Young

Total--37

NAYS

Bright                    Bryant                    Corbin
Fair                      Martin, Shane             Peeler

Total--6

Section 53, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 54, Part 1A and Part 1B, Rural Infrastructure Authority.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 37; Nays 5

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Courson                   Cromer                    Davis
Fair                      Ford                      Gregory
Grooms                    Hayes                     Hembree
Hutto                     Johnson                   Leatherman
Lourie                    Malloy                    Martin, Larry
Massey                    Matthews                  McElveen
McGill                    Nicholson                 O'Dell
Peeler                    Rankin                    Reese
Scott                     Setzler                   Shealy
Sheheen                   Turner                    Williams
Young

Total--37


Printed Page 3901 . . . . . Tuesday, May 28, 2013

NAYS

Bright                    Bryant                    Corbin
Martin, Shane             Thurmond

Total--5

Section 54, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 57, Part 1A and Part 1B, Judicial Department.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 39; Nays 3; Abstain 1

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Corbin
Courson                   Cromer                    Davis
Fair                      Ford                      Gregory
Grooms                    Hayes                     Hembree
Hutto                     Johnson                   Leatherman
Lourie                    Malloy                    Martin, Larry
Massey                    Matthews                  McElveen
McGill                    Nicholson                 O'Dell
Peeler                    Rankin                    Reese
Scott                     Setzler                   Shealy
Sheheen                   Thurmond                  Turner
Verdin                    Williams                  Young

Total--39

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

ABSTAIN

Coleman

Total--1


Printed Page 3902 . . . . . Tuesday, May 28, 2013

Section 57, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 58, Part 1A and Part 1B, Administrative Law Court.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 28; Nays 3; Abstain 12

AYES

Alexander                 Bennett                   Campbell
Cleary                    Corbin                    Courson
Cromer                    Fair                      Ford
Gregory                   Grooms                    Hembree
Johnson                   Leatherman                Lourie
Martin, Larry             Massey                    Matthews
McGill                    Nicholson                 O'Dell
Peeler                    Reese                     Scott
Shealy                    Turner                    Verdin
Williams

Total--28

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

ABSTAIN

Allen                     Coleman                   Davis
Hayes                     Hutto                     Malloy
McElveen                  Rankin                    Setzler
Sheheen                   Thurmond                  Young

Total--12

Section 58, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 59, Part 1A and Part 1B, Attorney General's Office.


Printed Page 3903 . . . . . Tuesday, May 28, 2013

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 40; Nays 3

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Johnson
Leatherman                Lourie                    Malloy
Martin, Larry             Massey                    Matthews
McElveen                  McGill                    Nicholson
O'Dell                    Peeler                    Rankin
Reese                     Scott                     Setzler
Shealy                    Sheheen                   Thurmond
Turner                    Verdin                    Williams
Young

Total--40

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

Section 59, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 60, Part 1A and Part 1B, Prosecution Coordination Commission.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 37; Nays 3; Abstain 2

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford


Printed Page 3904 . . . . . Tuesday, May 28, 2013

Gregory                   Grooms                    Hayes
Hutto                     Johnson                   Leatherman
Lourie                    Malloy                    Martin, Larry
Massey                    Matthews                  McGill
Nicholson                 O'Dell                    Peeler
Rankin                    Reese                     Scott
Setzler                   Shealy                    Sheheen
Turner                    Verdin                    Williams
Young

Total--37

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

ABSTAIN

McElveen                  Thurmond

Total--2

Section 60, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 61, Part 1A and Part 1B, Commission on Indigent Defense.

Senator MALLOY spoke on the section.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 34; Nays 4; Abstain 5

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Courson                   Cromer                    Davis
Fair                      Ford                      Gregory
Grooms                    Hembree                   Hutto
Johnson                   Leatherman                Lourie
Malloy                    Martin, Larry             Matthews


Printed Page 3905 . . . . . Tuesday, May 28, 2013

McGill                    Nicholson                 O'Dell
Peeler                    Rankin                    Reese
Scott                     Setzler                   Shealy
Thurmond                  Turner                    Verdin
Williams

Total--34

NAYS

Bright                    Bryant                    Corbin
Martin, Shane

Total--4

ABSTAIN

Hayes                     Massey                    McElveen
Sheheen                   Young

Total--5

Section 61, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 62, Part 1A and Part 1B, State Law Enforcement Division.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 40; Nays 2; Abstain 1

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Johnson
Leatherman                Lourie                    Malloy
Martin, Larry             Martin, Shane             Massey
Matthews                  McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Rankin                    Reese                     Scott


Printed Page 3906 . . . . . Tuesday, May 28, 2013

Shealy                    Sheheen                   Thurmond
Turner                    Verdin                    Williams
Young

Total--40

NAYS

Bright                    Bryant

Total--2

ABSTAIN

Setzler

Total--1

Section 62, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 63, Part 1A and Part 1B, Department of Public Safety.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 36; Nays 2; Abstain 3

AYES

Alexander                 Bennett                   Campbell
Cleary                    Corbin                    Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Johnson
Leatherman                Malloy                    Martin, Larry
Martin, Shane             Massey                    Matthews
McElveen                  McGill                    Nicholson
O'Dell                    Peeler                    Rankin
Reese                     Scott                     Setzler
Shealy                    Sheheen                   Thurmond
Turner                    Verdin                    Williams

Total--36


Printed Page 3907 . . . . . Tuesday, May 28, 2013

NAYS

Bright                    Bryant

Total--2

ABSTAIN

Allen                     Coleman                   Young

Total--3

Section 63, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 64, Part 1A and Part 1B, Law Enforcement Training Council.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 38; Nays 3; Abstain 1

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Johnson                   Lourie
Malloy                    Martin, Larry             Massey
Matthews                  McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Rankin                    Reese                     Scott
Setzler                   Shealy                    Sheheen
Thurmond                  Turner                    Verdin
Williams                  Young

Total--38

NAYS

Bright                    Bryant                    Martin, Shane

Total--3


Printed Page 3908 . . . . . Tuesday, May 28, 2013

ABSTAIN

Hutto

Total--1

Section 64, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 65, Part 1A and Part 1B, Department of Corrections.

Senator MALLOY spoke on the section.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 37; Nays 3

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Courson                   Cromer                    Davis
Fair                      Ford                      Gregory
Grooms                    Hayes                     Hembree
Hutto                     Jackson                   Johnson
Leatherman                Lourie                    Malloy
Martin, Larry             Martin, Shane             Massey
McGill                    Nicholson                 O'Dell
Peeler                    Rankin                    Scott
Setzler                   Shealy                    Sheheen
Thurmond                  Turner                    Verdin
Young

Total--37

NAYS

Bright                    Bryant                    Corbin

Total--3

Section 65, Part 1A and Part 1B, was adopted.


Printed Page 3909 . . . . . Tuesday, May 28, 2013

The Senate proceeded to Section 66, Part 1A and Part 1B, Department of Probation, Parole and Pardon Services.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 30; Nays 3; Abstain 9

AYES

Alexander                 Bennett                   Campbell
Cleary                    Corbin                    Courson
Cromer                    Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Jackson                   Johnson
Leatherman                Martin, Larry             Massey
McGill                    Nicholson                 O'Dell
Peeler                    Reese                     Scott
Setzler                   Shealy                    Turner
Verdin                    Williams                  Young

Total--30

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

ABSTAIN

Allen                     Coleman                   Davis
Hutto                     Malloy                    McElveen
Rankin                    Sheheen                   Thurmond

Total--9

Section 66, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 67, Part 1A and Part 1B, Department of Juvenile Justice.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 35; Nays 3; Abstain 5


Printed Page 3910 . . . . . Tuesday, May 28, 2013

AYES

Alexander                 Bennett                   Campbell
Cleary                    Corbin                    Courson
Cromer                    Davis                     Fair
Ford                      Gregory                   Grooms
Hayes                     Hembree                   Jackson
Johnson                   Leatherman                Lourie
Martin, Larry             Massey                    McGill
Nicholson                 O'Dell                    Peeler
Rankin                    Reese                     Scott
Setzler                   Shealy                    Sheheen
Thurmond                  Turner                    Verdin
Williams                  Young

Total--35

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

ABSTAIN

Allen                     Coleman                   Hutto
Malloy                    McElveen

Total--5

Section 67, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 70, Part 1A and Part 1B, Human Affairs Commission.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 33; Nays 8; Abstain 1

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Courson                   Cromer                    Fair
Ford                      Gregory                   Grooms


Printed Page 3911 . . . . . Tuesday, May 28, 2013

Hayes                     Hembree                   Jackson
Johnson                   Leatherman                Lourie
Malloy                    Martin, Larry             McElveen
McGill                    Nicholson                 O'Dell
Peeler                    Rankin                    Reese
Scott                     Setzler                   Turner
Verdin                    Williams                  Young

Total--33

NAYS

Bright                    Bryant                    Corbin
Davis                     Martin, Shane             Massey
Shealy                    Thurmond

Total--8

ABSTAIN

Sheheen

Total--1

Section 70, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 71, Part 1A and Part 1B, Minority Affairs Commission.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 35; Nays 8

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Courson                   Cromer                    Fair
Ford                      Gregory                   Grooms
Hayes                     Hembree                   Hutto
Jackson                   Johnson                   Leatherman
Lourie                    Malloy                    Martin, Larry
Massey                    McElveen                  McGill
Nicholson                 O'Dell                    Peeler


Printed Page 3912 . . . . . Tuesday, May 28, 2013

Rankin                    Reese                     Scott
Setzler                   Sheheen                   Turner
Verdin                    Williams

Total--35

NAYS

Bright                    Bryant                    Corbin
Davis                     Martin, Shane             Shealy
Thurmond                  Young

Total--8

Section 71, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 72, Part 1A, Public Service Commission.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 35; Nays 3; Abstain 3

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Courson                   Cromer                    Davis
Fair                      Ford                      Gregory
Grooms                    Hayes                     Hembree
Jackson                   Johnson                   Leatherman
Lourie                    Martin, Larry             Massey
McElveen                  McGill                    Nicholson
O'Dell                    Peeler                    Reese
Scott                     Shealy                    Sheheen
Thurmond                  Turner                    Verdin
Williams                  Young

Total--35


Printed Page 3913 . . . . . Tuesday, May 28, 2013

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

ABSTAIN

Hutto                     Malloy                    Rankin

Total--3

Section 72, Part 1A, was adopted.

The Senate proceeded to Section 73, Part 1A and Part 1B, Office of Regulatory Staff.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 36; Nays 3; Abstain 2

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Courson                   Cromer                    Davis
Fair                      Gregory                   Grooms
Hayes                     Hembree                   Jackson
Johnson                   Leatherman                Lourie
Malloy                    Martin, Larry             Massey
McElveen                  McGill                    Nicholson
O'Dell                    Peeler                    Reese
Scott                     Setzler                   Shealy
Sheheen                   Thurmond                  Turner
Verdin                    Williams                  Young

Total--36

NAYS

Bright                    Bryant                    Martin, Shane

Total--3


Printed Page 3914 . . . . . Tuesday, May 28, 2013

ABSTAIN

Hutto                     Rankin

Total--2

Section 73, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 74, Part 1A and Part 1B, Workers' Compensation Commission.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 26; Nays 3; Abstain 12

AYES

Alexander                 Bennett                   Campbell
Cleary                    Courson                   Cromer
Fair                      Gregory                   Grooms
Hembree                   Jackson                   Johnson
Leatherman                Lourie                    Martin, Larry
McGill                    Nicholson                 O'Dell
Peeler                    Reese                     Scott
Shealy                    Thurmond                  Turner
Verdin                    Williams

Total--26

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

ABSTAIN

Allen                     Coleman                   Davis
Hayes                     Hutto                     Malloy
Massey                    McElveen                  Rankin
Setzler                   Sheheen                   Young

Total--12

Section 74, Part 1A and Part 1B was adopted.


Printed Page 3915 . . . . . Tuesday, May 28, 2013

The Senate proceeded to Section 75, Part 1A and Part 1B, State Accident Fund.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 34; Nays 3; Abstain 3

AYES

Alexander                 Bennett                   Campbell
Cleary                    Courson                   Cromer
Davis                     Fair                      Gregory
Grooms                    Hembree                   Hutto
Jackson                   Johnson                   Leatherman
Lourie                    Malloy                    Martin, Larry
Massey                    McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Rankin                    Reese                     Scott
Setzler                   Shealy                    Sheheen
Thurmond                  Turner                    Verdin
Williams

Total--34

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

ABSTAIN

Allen                     Hayes                     Young

Total--3

Section 75, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 76, Part 1A, Patients' Compensation Fund.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 38; Nays 3


Printed Page 3916 . . . . . Tuesday, May 28, 2013

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Courson
Cromer                    Davis                     Fair
Ford                      Gregory                   Grooms
Hayes                     Hembree                   Hutto
Jackson                   Johnson                   Leatherman
Lourie                    Malloy                    Martin, Larry
Massey                    McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Rankin                    Reese                     Scott
Setzler                   Shealy                    Sheheen
Thurmond                  Turner                    Verdin
Williams                  Young

Total--38

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

Section 76, Part 1A, was adopted.

The Senate proceeded to Section 77, Part 1A, Second Injury Fund.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 33; Nays 4; Abstain 4

AYES

Alexander                 Bennett                   Campbell
Cleary                    Courson                   Cromer
Fair                      Ford                      Gregory
Grooms                    Hembree                   Hutto
Jackson                   Johnson                   Leatherman
Lourie                    Malloy                    Martin, Larry
Massey                    McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Rankin                    Reese                     Scott


Printed Page 3917 . . . . . Tuesday, May 28, 2013

Shealy                    Sheheen                   Thurmond
Turner                    Verdin                    Williams

Total--33

NAYS

Bright                    Bryant                    Davis
Martin, Shane

Total--4

ABSTAIN

Allen                     Coleman                   Hayes
Young

Total--4

Section 77, Part 1A, was adopted.

The Senate proceeded to Section 78, Part 1A and Part 1B, Department of Insurance.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 33; Nays 3; Abstain 5

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Courson
Cromer                    Davis                     Fair
Ford                      Gregory                   Grooms
Hembree                   Jackson                   Johnson
Leatherman                Lourie                    Martin, Larry
Massey                    McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Reese                     Scott                     Shealy
Sheheen                   Thurmond                  Turner
Verdin                    Williams                  Young

Total--33


Printed Page 3918 . . . . . Tuesday, May 28, 2013

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

ABSTAIN

Coleman                   Hayes                     Hutto
Malloy                    Setzler

Total--5

Section 78, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 79, Part 1A and Part 1B, Board of Financial Institutions.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 36; Nays 5

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Courson                   Cromer                    Fair
Ford                      Gregory                   Grooms
Hayes                     Hembree                   Hutto
Jackson                   Johnson                   Leatherman
Lourie                    Malloy                    Martin, Larry
Massey                    McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Reese                     Scott                     Setzler
Sheheen                   Thurmond                  Turner
Verdin                    Williams                  Young

Total--36

NAYS

Bright                    Bryant                    Davis
Martin, Shane             Shealy

Total--5


Printed Page 3919 . . . . . Tuesday, May 28, 2013

Section 79, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 80, Part 1A and Part 1B, Department of Consumer Affairs.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 35; Nays 4; Abstain 1

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Courson                   Cromer                    Fair
Ford                      Gregory                   Grooms
Hayes                     Hembree                   Hutto
Jackson                   Johnson                   Leatherman
Lourie                    Malloy                    Martin, Larry
Massey                    McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Reese                     Scott                     Setzler
Shealy                    Sheheen                   Turner
Verdin                    Williams

Total--35

NAYS

Bright                    Bryant                    Davis
Martin, Shane

Total--4

ABSTAIN

Young

Total--1

Section 80, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 81, Part 1A and Part 1B, Department of Labor, Licensing and Regulation.


Printed Page 3920 . . . . . Tuesday, May 28, 2013

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 28; Nays 4; Abstain 8

AYES

Alexander                 Bennett                   Campbell
Cleary                    Courson                   Cromer
Fair                      Ford                      Gregory
Grooms                    Hembree                   Jackson
Johnson                   Leatherman                Lourie
Martin, Larry             Massey                    McGill
Nicholson                 O'Dell                    Peeler
Reese                     Scott                     Shealy
Turner                    Verdin                    Williams
Young

Total--28

NAYS

Bright                    Bryant                    Martin, Shane
Thurmond

Total--4

ABSTAIN

Allen                     Davis                     Hayes
Hutto                     Malloy                    McElveen
Setzler                   Sheheen

Total--8

Section 81, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 82, Part 1A and Part 1B, Department of Motor Vehicles.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 29; Nays 2; Abstain 10


Printed Page 3921 . . . . . Tuesday, May 28, 2013

AYES

Alexander                 Bennett                   Campbell
Cleary                    Courson                   Cromer
Fair                      Ford                      Gregory
Grooms                    Hayes                     Hembree
Jackson                   Johnson                   Leatherman
Lourie                    Martin, Larry             Martin, Shane
Massey                    McGill                    Nicholson
O'Dell                    Peeler                    Reese
Scott                     Shealy                    Turner
Verdin                    Williams

Total--29

NAYS

Bright                    Bryant

Total--2

ABSTAIN

Allen                     Coleman                   Davis
Hutto                     Malloy                    McElveen
Setzler                   Sheheen                   Thurmond
Young

Total--10

Section 82, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 83, Part 1A and Part 1B, Department of Employment and Workforce.

Senator SCOTT moved to waive the provisions of Rule 26B to take up a further amendment.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 16; Nays 25


Printed Page 3922 . . . . . Tuesday, May 28, 2013

AYES

Allen                     Coleman                   Ford
Hutto                     Jackson                   Johnson
Lourie                    Malloy                    McElveen
McGill                    Nicholson                 Reese
Scott                     Setzler                   Sheheen
Williams

Total--16

NAYS

Alexander                 Bennett                   Bright
Bryant                    Campbell                  Cleary
Corbin                    Courson                   Cromer
Davis                     Fair                      Gregory
Grooms                    Hayes                     Hembree
Leatherman                Martin, Larry             Martin, Shane
Massey                    Peeler                    Shealy
Thurmond                  Turner                    Verdin
Young

Total--25

Having failed to receive the necessary vote, the motion failed. The question then was the adoption of Section 83.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 27; Nays 6; Abstain 7

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Corbin
Courson                   Fair                      Ford
Gregory                   Grooms                    Hembree
Jackson                   Johnson                   Lourie
Martin, Larry             Massey                    McGill
Nicholson                 O'Dell                    Peeler


Printed Page 3923 . . . . . Tuesday, May 28, 2013

Reese                     Scott                     Setzler
Shealy                    Turner                    Williams

Total--27

NAYS

Bright                    Bryant                    Davis
Leatherman                Martin, Shane             Thurmond

Total--6

ABSTAIN

Coleman                   Hayes                     Hutto
Malloy                    McElveen                  Sheheen
Young

Total--7

Section 83, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 84, Part 1A and Part 1B, Department of Transportation.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 35; Nays 4; Abstain 3

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Corbin
Courson                   Cromer                    Fair
Ford                      Gregory                   Grooms
Hayes                     Hembree                   Jackson
Johnson                   Leatherman                Lourie
Malloy                    Martin, Larry             Martin, Shane
Massey                    McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Reese                     Scott                     Setzler


Printed Page 3924 . . . . . Tuesday, May 28, 2013

Shealy                    Sheheen                   Thurmond
Verdin                    Williams

Total--35

NAYS

Bright                    Bryant                    Turner
Young

Total--4

ABSTAIN

Coleman                   Davis                     Hutto

Total--3

Section 84, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 85, Part 1A, Infrastructure Bank Board.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 35; Nays 6

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Jackson
Johnson                   Leatherman                Malloy
Martin, Larry             Massey                    McGill
Nicholson                 O'Dell                    Reese
Scott                     Setzler                   Shealy
Thurmond                  Turner                    Verdin
Williams                  Young

Total--35


Printed Page 3925 . . . . . Tuesday, May 28, 2013

NAYS

Bright                    Bryant                    Martin, Shane
McElveen                  Peeler                    Sheheen

Total--6

Section 85, Part 1A, was adopted.

The Senate proceeded to Section 86, Part 1A, County Transportation Funds.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 39; Nays 3

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Jackson
Johnson                   Leatherman                Lourie
Malloy                    Martin, Larry             Massey
McElveen                  McGill                    Nicholson
O'Dell                    Peeler                    Reese
Scott                     Setzler                   Shealy
Sheheen                   Thurmond                  Turner
Verdin                    Williams                  Young

Total--39

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

Section 86, Part 1A, was adopted.

The Senate proceeded to Section 87, Part 1A and Part 1B, Division of Aeronautics.


Printed Page 3926 . . . . . Tuesday, May 28, 2013

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 29; Nays 13

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Cromer
Fair                      Ford                      Gregory
Grooms                    Hayes                     Hembree
Jackson                   Johnson                   Leatherman
Lourie                    Malloy                    McElveen
McGill                    Nicholson                 O'Dell
Reese                     Scott                     Setzler
Thurmond                  Turner                    Verdin
Williams                  Young

Total--29

NAYS

Bright                    Bryant                    Coleman
Corbin                    Courson                   Davis
Hutto                     Martin, Larry             Martin, Shane
Massey                    Peeler                    Shealy
Sheheen

Total--13

Section 87, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 88, Part 1A and Part 1B, State Ports Authority.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 37; Nays 3; Abstain 1

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford


Printed Page 3927 . . . . . Tuesday, May 28, 2013

Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Johnson
Leatherman                Lourie                    Malloy
Martin, Larry             Massey                    McElveen
McGill                    Nicholson                 O'Dell
Peeler                    Reese                     Scott
Setzler                   Shealy                    Sheheen
Thurmond                  Turner                    Verdin
Williams

Total--37

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

ABSTAIN

Young

Total--1

Section 88, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 91A-E, Part 1A and Part 1B, Legislative Department.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 39; Nays 3

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Jackson
Johnson                   Leatherman                Lourie
Malloy                    Martin, Larry             Massey
McElveen                  McGill                    Nicholson


Printed Page 3928 . . . . . Tuesday, May 28, 2013

O'Dell                    Peeler                    Reese
Scott                     Setzler                   Shealy
Sheheen                   Thurmond                  Turner
Verdin                    Williams                  Young

Total--39

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

Section 91A-E, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 92A-C, Part 1A and Part 1B, Governor's Office.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 39; Nays 3

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Jackson
Johnson                   Leatherman                Lourie
Malloy                    Martin, Larry             Massey
McElveen                  McGill                    Nicholson
O'Dell                    Peeler                    Reese
Scott                     Setzler                   Shealy
Sheheen                   Thurmond                  Turner
Verdin                    Williams                  Young

Total--39


Printed Page 3929 . . . . . Tuesday, May 28, 2013

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

Section 92A-C, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 93, Part 1A and Part 1B, Office of Inspector General.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 40; Nays 2

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Jackson
Johnson                   Leatherman                Lourie
Malloy                    Martin, Larry             Martin, Shane
Massey                    McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Reese                     Scott                     Setzler
Shealy                    Sheheen                   Thurmond
Turner                    Verdin                    Williams
Young

Total--40

NAYS

Bright                    Bryant

Total--2

Section 93, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 94, Part 1A and Part 1B, Lieutenant Governor's Office.


Printed Page 3930 . . . . . Tuesday, May 28, 2013

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 39; Nays 2

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Gregory
Grooms                    Hayes                     Hembree
Hutto                     Jackson                   Johnson
Leatherman                Lourie                    Malloy
Martin, Larry             Martin, Shane             Massey
McElveen                  McGill                    Nicholson
O'Dell                    Peeler                    Reese
Scott                     Setzler                   Shealy
Sheheen                   Thurmond                  Turner
Verdin                    Williams                  Young

Total--39

NAYS

Bright                    Bryant

Total--2

Section 94, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 95, Part 1A and Part 1B, Secretary of State's Office.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 37; Nays 3

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Fair                      Gregory                   Grooms
Hayes                     Hembree                   Hutto


Printed Page 3931 . . . . . Tuesday, May 28, 2013

Jackson                   Johnson                   Leatherman
Lourie                    Malloy                    Martin, Larry
Martin, Shane             Massey                    McElveen
McGill                    Nicholson                 O'Dell
Peeler                    Reese                     Scott
Setzler                   Shealy                    Thurmond
Turner                    Verdin                    Williams
Young

Total--37

NAYS

Bright                    Bryant                    Sheheen

Total--3

Section 95, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 96, Part 1A and Part 1B, Comptroller General's Office.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 36; Nays 4

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Gregory
Grooms                    Hayes                     Hembree
Hutto                     Johnson                   Leatherman
Lourie                    Malloy                    Martin, Larry
Massey                    McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Reese                     Scott                     Setzler
Shealy                    Thurmond                  Turner
Verdin                    Williams                  Young

Total--36


Printed Page 3932 . . . . . Tuesday, May 28, 2013

NAYS

Bright                    Bryant                    Martin, Shane
Sheheen

Total--4

Section 96, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 97, Part 1A and Part 1B, State Treasurer's Office.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 35; Nays 3; Abstain 2

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Gregory
Grooms                    Hayes                     Hembree
Jackson                   Johnson                   Leatherman
Lourie                    Martin, Larry             Massey
McElveen                  McGill                    Nicholson
O'Dell                    Peeler                    Reese
Setzler                   Shealy                    Sheheen
Thurmond                  Turner                    Verdin
Williams                  Young

Total--35

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

ABSTAIN

Hutto                     Malloy

Total--2


Printed Page 3933 . . . . . Tuesday, May 28, 2013

Section 97, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 98, Part 1A, Retirement System Investment Commission.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 35; Nays 3; Abstain 1

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Gregory
Grooms                    Hayes                     Hembree
Hutto                     Johnson                   Leatherman
Lourie                    Martin, Larry             Massey
McElveen                  McGill                    Nicholson
O'Dell                    Peeler                    Reese
Setzler                   Shealy                    Sheheen
Thurmond                  Turner                    Verdin
Williams                  Young

Total--35

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

ABSTAIN

Malloy

Total--1

Section 98, Part 1A, was adopted.

The Senate proceeded to Section 99, Part 1A and Part 1B, Adjutant General's Office.


Printed Page 3934 . . . . . Tuesday, May 28, 2013

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 38; Nays 3

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Gregory
Grooms                    Hayes                     Hembree
Hutto                     Jackson                   Johnson
Leatherman                Lourie                    Malloy
Martin, Larry             Massey                    McElveen
McGill                    Nicholson                 O'Dell
Peeler                    Reese                     Scott
Setzler                   Shealy                    Sheheen
Thurmond                  Turner                    Verdin
Williams                  Young

Total--38

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

Section 99, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 100, Part 1A and Part 1B, Election Commission.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 33; Nays 3; Abstain 4

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Gregory
Grooms                    Hayes                     Hembree


Printed Page 3935 . . . . . Tuesday, May 28, 2013

Jackson                   Johnson                   Leatherman
Lourie                    Martin, Larry             Martin, Shane
Massey                    McGill                    Nicholson
O'Dell                    Peeler                    Scott
Shealy                    Sheheen                   Turner
Verdin                    Williams                  Young

Total--33

NAYS

Bright                    Bryant                    Thurmond

Total--3

ABSTAIN

Hutto                     Malloy                    McElveen
Setzler

Total--4

Section 100, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 101, Part 1A and Part 1B, Budget and Control Board.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 29; Nays 10

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Courson                   Cromer                    Fair
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Johnson
Leatherman                Lourie                    Malloy
Martin, Larry             McElveen                  McGill
Nicholson                 O'Dell                    Peeler


Printed Page 3936 . . . . . Tuesday, May 28, 2013

Reese                     Scott                     Turner
Verdin                    Williams

Total--29

NAYS

Bright                    Bryant                    Corbin
Davis                     Martin, Shane             Massey
Shealy                    Sheheen                   Thurmond
Young

Total--10

Section 101, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 102, Part 1A and Part 1B, Budget and Control Board - State Auditor's Office.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 35; Nays 5

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Courson                   Cromer                    Davis
Fair                      Gregory                   Grooms
Hayes                     Hembree                   Hutto
Johnson                   Leatherman                Lourie
Malloy                    Martin, Larry             Massey
McElveen                  McGill                    Nicholson
O'Dell                    Peeler                    Reese
Scott                     Setzler                   Sheheen
Thurmond                  Turner                    Verdin
Williams                  Young

Total--35


Printed Page 3937 . . . . . Tuesday, May 28, 2013

NAYS

Bright                    Bryant                    Corbin
Martin, Shane             Shealy

Total--5

Section 102, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 103, Part 1A and Part 1B, Budget and Control Board - Employee Benefits.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 39; Nays 3

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Courson                   Cromer                    Davis
Fair                      Ford                      Gregory
Grooms                    Hayes                     Hembree
Hutto                     Jackson                   Johnson
Leatherman                Lourie                    Malloy
Martin, Larry             Martin, Shane             Massey
McElveen                  McGill                    Nicholson
O'Dell                    Peeler                    Reese
Scott                     Setzler                   Shealy
Sheheen                   Thurmond                  Turner
Verdin                    Williams                  Young

Total--39

NAYS

Bright                    Bryant                    Corbin

Total--3

Section 103, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 104, Part 1A, Capital Reserve Fund.


Printed Page 3938 . . . . . Tuesday, May 28, 2013

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 36; Nays 4

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Johnson
Leatherman                Lourie                    Martin, Larry
Massey                    McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Reese                     Scott                     Setzler
Shealy                    Sheheen                   Turner
Verdin                    Williams                  Young

Total--36

NAYS

Bright                    Malloy                    Martin, Shane
Thurmond

Total--4

Section 104, Part 1A, was adopted.

The Senate proceeded to Section 105, Part 1A and Part 1B, Public Employee Benefit Authority.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 36; Nays 4; Abstain 1

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Courson                   Cromer                    Davis
Fair                      Ford                      Gregory
Grooms                    Hayes                     Hembree


Printed Page 3939 . . . . . Tuesday, May 28, 2013

Hutto                     Johnson                   Leatherman
Lourie                    Martin, Larry             Massey
McElveen                  McGill                    Nicholson
O'Dell                    Peeler                    Reese
Scott                     Setzler                   Shealy
Sheheen                   Thurmond                  Turner
Verdin                    Williams                  Young

Total--36

NAYS

Bright                    Bryant                    Corbin
Martin, Shane

Total--4

ABSTAIN

Malloy

Total--1

Section 105, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 106, Part 1A and Part 1B, Department of Revenue.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 35; Nays 3; Abstain 1

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Courson                   Cromer                    Davis
Fair                      Ford                      Gregory
Grooms                    Hayes                     Hembree
Hutto                     Johnson                   Leatherman
Lourie                    Malloy                    Martin, Larry
Massey                    McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Reese                     Scott                     Shealy


Printed Page 3940 . . . . . Tuesday, May 28, 2013

Sheheen                   Thurmond                  Turner
Verdin                    Williams

Total--35

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

ABSTAIN

Young

Total--1

Section 106, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 107, Part 1A and Part 1B, State Ethics Commission.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 35; Nays 2; Abstain 4

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Johnson                   Leatherman
Lourie                    Martin, Larry             Martin, Shane
Massey                    McGill                    Nicholson
O'Dell                    Peeler                    Reese
Scott                     Setzler                   Shealy
Sheheen                   Turner                    Verdin
Williams                  Young

Total--35


Printed Page 3941 . . . . . Tuesday, May 28, 2013

NAYS

Bright                    Bryant

Total--2

ABSTAIN

Hutto                     Malloy                    McElveen
Thurmond

Total--4

Section 107, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 108, Part 1A and Part 1B, Procurement Review Panel.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 37; Nays 3

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Johnson
Leatherman                Lourie                    Malloy
Martin, Larry             Massey                    McElveen
McGill                    Nicholson                 O'Dell
Peeler                    Reese                     Scott
Shealy                    Sheheen                   Thurmond
Turner                    Verdin                    Williams
Young

Total--37

NAYS

Bright                    Bryant                    Martin, Shane

Total--3


Printed Page 3942 . . . . . Tuesday, May 28, 2013

Section 108, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 109, Part 1A and Part 1B, Debt Service.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 40; Nays 0

AYES

Alexander                 Allen                     Bennett
Bright                    Bryant                    Campbell
Cleary                    Coleman                   Corbin
Courson                   Cromer                    Davis
Fair                      Gregory                   Grooms
Hayes                     Hembree                   Hutto
Johnson                   Leatherman                Lourie
Malloy                    Martin, Larry             Martin, Shane
Massey                    McElveen                  McGill
Nicholson                 O'Dell                    Peeler
Reese                     Scott                     Setzler
Shealy                    Sheheen                   Thurmond
Turner                    Verdin                    Williams
Young

Total--40

NAYS

Total--0

Section 109, Part 1A and Part 1B, was adopted.

The Senate proceeded to Section 110, Part 1A and Part 1B, Aid to Subdivisions - State Treasurer.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 38; Nays 3


Printed Page 3943 . . . . . Tuesday, May 28, 2013

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes
Hembree                   Hutto                     Johnson
Leatherman                Lourie                    Malloy
Martin, Larry             Massey                    McElveen
McGill                    Nicholson                 O'Dell
Peeler                    Reese                     Scott
Setzler                   Shealy                    Sheheen
Thurmond                  Turner                    Verdin
Williams                  Young

Total--38

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

Section 110, Part 1A and Part 1B, was adopted.

Statement by Senator SHANE MARTIN

I voted against Sections 110 and 111, Aid to Subdivisions, because they are not fully funded as the statute requires.

The Senate proceeded to Section 111, Part 1A, Aid to Subdivisions - Department of Revenue.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 38; Nays 3

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Corbin                    Courson                   Cromer
Davis                     Fair                      Ford
Gregory                   Grooms                    Hayes


Printed Page 3944 . . . . . Tuesday, May 28, 2013

Hembree                   Hutto                     Johnson
Leatherman                Lourie                    Malloy
Martin, Larry             Massey                    McElveen
McGill                    Nicholson                 O'Dell
Peeler                    Reese                     Scott
Setzler                   Shealy                    Sheheen
Thurmond                  Turner                    Verdin
Williams                  Young

Total--38

NAYS

Bright                    Bryant                    Martin, Shane

Total--3

Section 111, Part 1A, was adopted.

Statement by Senator SHANE MARTIN

I voted against Sections 110 and 111, Aid to Subdivisions, because they are not fully funded as the statute requires.

The Senate proceeded to Section 117, Part 1B, General Provisions.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 34; Nays 7

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Courson                   Cromer                    Fair
Ford                      Gregory                   Hayes
Hembree                   Hutto                     Jackson
Johnson                   Leatherman                Lourie
Malloy                    Martin, Larry             Massey
McElveen                  McGill                    Nicholson
O'Dell                    Peeler                    Reese
Scott                     Setzler                   Shealy


Printed Page 3945 . . . . . Tuesday, May 28, 2013

Sheheen                   Turner                    Verdin
Williams

Total--34

NAYS

Bright                    Bryant                    Davis
Grooms                    Martin, Shane             Thurmond
Young

Total--7

Section 117, Part 1B, was adopted.

The Senate proceeded to Section 118, Part 1B, Statewide Revenue.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 33; Nays 8

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Courson                   Cromer                    Fair
Ford                      Gregory                   Grooms
Hayes                     Hembree                   Hutto
Jackson                   Johnson                   Leatherman
Lourie                    Malloy                    Martin, Larry
McElveen                  McGill                    Nicholson
O'Dell                    Peeler                    Reese
Scott                     Setzler                   Sheheen
Turner                    Verdin                    Williams

Total--33

NAYS

Bright                    Bryant                    Davis
Martin, Shane             Massey                    Shealy
Thurmond                  Young

Total--8


Printed Page 3946 . . . . . Tuesday, May 28, 2013

Section 118, Part 1B, was adopted.

Statement by Senator YOUNG

In accordance with Section 8-13-740(C), I abstained from voting on the below referenced Parts and/or Sections because of a potential conflict of interest and I wish to have my recusal noted in the Senate Journal of this date.
34   -   DHEC
61   -   Commission on Indigent Defense
63   -   Dept. of Public Safety
58   -   Admin. Law Court
74   -   Workers Comp. Commission
75   -   State Accident Fund
77   -   Second Injury Fund
80   -   Consumer Affairs
82   -   DMV
83   -   Dept. of Employment & Workforce
88   -   Ports
106   -   Dept. of Revenue

The question then was third reading of the Bill.

Senator MALLOY spoke on the Bill.

Remarks by Senator MALLOY

Earlier this year, I called the body's attention to the 50th anniversary of the "Letter from Birmingham Jail" written by civil rights legend, Dr. Martin Luther King, Jr. In his famous letter, King writes: "Human progress never rolls in on wheels of inevitability; it comes through the tireless efforts of men willing to be co-workers with God, and without this hard work, time itself becomes an ally of the forces of social stagnation. We must use time creatively, in the knowledge that the time is always ripe to do right."

A half century after those words were penned, they still ring true today. This year in the General Assembly, we had the opportunity to do right. This year, we in Columbia were afforded the rare opportunity to do not only what is morally right, but also what is fiscally right. This year, in the State House, we, as lawmakers, had the opportunity to make an investment in our citizens and see that commitment pay immediate dividends - not in the distant future.


Printed Page 3947 . . . . . Tuesday, May 28, 2013

We had the opportunity to extend health care to more than 300,000 of our poorest residents at little to no cost to taxpayers. And, we said, "No." We had the opportunity to bring, over a seven-year period, more than $11.2 billion in federal dollars to the State along with nearly 44,000 jobs, which would generate new tax dollars for South Carolina. And, we said, "No."

We had the opportunity to provide low-cost tax relief to our businesses by saving them potentially tens of millions of dollars in federal fines because they did not provide affordable health insurance to their workers. And, we said, "No." We had the opportunity to stem spiraling medical costs and prevent hospitals from passing along their costs for indigent care to those of us with health insurance. And, we said, "No."

All of these outcomes were possible had the majority of state lawmakers agreed to expand South Carolina's Medicaid program next fiscal year. When presented with the opportunity to do right in the state budget, unfortunately, the majority of the lawmakers said, "No."

In his "Letter from Birmingham Jail," King was responding to a published statement from eight religious leaders who were critical of his involvement in the Civil Rights movement. Those clergymen were not only defenders of their faiths, but also defenders of a status quo that left many dejected and disenfranchised. Time has shown they were on the wrong side of history.

I do not believe it will take 50 years to reveal that the majority of this Senate came down on the wrong side of history. We had the opportunity to invest in the dignity and worth of the least of our residents and to do so in a fiscally responsible way, and the majority of this Senate said, "No."

For the reasons outlined above, I will be voting "No" on H. 3710, the General Appropriations Bill for next fiscal year, because it does not extend health coverage to our state's poorest residents. I not only want to be on the right side of history, but also I want to do right.

Thank you.

On motion of Senator COLEMAN, with unanimous consent, the remarks of Senator MALLOY were ordered printed in the Journal.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 34; Nays 7


Printed Page 3948 . . . . . Tuesday, May 28, 2013

AYES

Alexander                 Allen                     Bennett
Campbell                  Cleary                    Coleman
Courson                   Cromer                    Fair
Ford                      Gregory                   Grooms
Hayes                     Hembree                   Hutto
Johnson                   Leatherman                Lourie
Martin, Larry             Massey                    McElveen
McGill                    Nicholson                 O'Dell
Peeler                    Reese                     Scott
Setzler                   Shealy                    Sheheen
Turner                    Verdin                    Williams
Young

Total--34

NAYS

Bright                    Bryant                    Corbin
Davis                     Malloy                    Martin, Shane
Thurmond

Total--7

The Bill was read the third time, passed and ordered returned to the House of Representatives with amendments.

THE SENATE PROCEEDED TO THE MOTION PERIOD.

MOTION ADOPTED

On motion of Senator PEELER, the Senate agreed to dispense with the Motion Period.

HAVING DISPENSED WITH THE MOTION PERIOD, THE SENATE PROCEEDED TO A CONSIDERATION OF BILLS AND RESOLUTIONS RETURNED FROM THE HOUSE.

NONCONCURRENCE IN HOUSE AMENDMENTS

S. 22 (Word version) -- Senators Sheheen, Massey, L. Martin, Hayes, Campsen, Nicholson, Young and Alexander: A BILL TO ENACT THE "SOUTH CAROLINA RESTRUCTURING ACT OF 2013" BY ESTABLISHING THE DEPARTMENT OF ADMINISTRATION; TO


Printed Page 3949 . . . . . Tuesday, May 28, 2013

PROVIDE FOR ITS COMPOSITION, POWERS, AND DUTIES; AND TO MAKE CONFORMING AMENDMENTS.
(Abbreviated title)

The House returned the Bill with amendments.

The Senate proceded to a consideration of the Bill, the question being concurrence with the House amendments.

Senator HUTTO proposed the following amendment (JUD0022.005), which was tabled:

Amend the bill, as and if amended, by striking all after the enacting words and inserting therein the following:

  /   Part I

Citation

SECTION   1.   This act may be cited as the "South Carolina Restructuring Act of 2013".

  Part II

Budget and Control Board Abolished

SECTION   2.   Effective July 1, 2015, the State Budget and Control Board, and its related divisions and offices, is abolished and its functions, powers, duties, responsibilities, and authority, except as otherwise provided by law:

(1)   related to the issuance of bonds and bonding authority, generally found in Title 11 of the 1976 Code but also contained in certain other provisions of South Carolina law are devolved upon the State Fiscal Accountability Authority;

(2)   related to grants, loans, and other forms of financial assistance to other entities, generally found in Title 11 of the 1976 Code but also contained in certain other provisions of South Carolina law, exercised by the former Budget and Control Board are devolved upon the State Fiscal Accountability Authority; and

(3)   related to executive functions within the former Budget and Control Board not identified in items (1) or (2) are devolved upon the Department of Administration.

  Part III

Establishing the Department of Administration

SECTION   3.   Section 1-30-10(A) of the 1976 Code, as last amended by Act 146 of 2010, is further amended to read:

"(A)   There are hereby created, within the executive branch of the state government, the following departments:


Printed Page 3950 . . . . . Tuesday, May 28, 2013

1.   Department of Administration

2.   Department of Agriculture

2.3.   Department of Alcohol and Other Drug Abuse Services

3.4.   Department of Commerce

4.5.   Department of Corrections

5.6.   Department of Disabilities and Special Needs

6.7.   Department of Education

7.8.   Department of Health and Environmental Control

8.9.   Department of Health and Human Services

9.10.   Department of Insurance

10.11.   Department of Juvenile Justice

11.12.   Department of Labor, Licensing and Regulation

12.13.   Department of Mental Health

14.   Department of Motor Vehicles

13.15.   Department of Natural Resources

14.16.   Department of Parks, Recreation and Tourism

15.17.   Department of Probation, Parole and Pardon Services

16.18.   Department of Public Safety

17.19.   Department of Revenue

18.20.   Department of Social Services

19.21.   Department of Transportation

20.22.   Department of Employment and Workforce."

SECTION   4.   A.   Section 1-11-10 of the 1976 Code is amended to read:

"Section 1-11-10.   (A)   The State Budget and Control Board shall be comprised of the Governor, ex officio, who shall be chairman, the State Treasurer, ex officio, the Comptroller General, ex officio, and the chairman of the Senate Finance Committee, ex officio, and the chairman of the Ways and Means Committee of the House of Representatives, ex officio. There is hereby created, within the executive branch of the state government, the Department of Administration, headed by a director appointed by the Governor upon the advice and consent of the Senate who may only be removed pursuant to Section 1-3-240(B). Effective July 1, 2015, the following offices, divisions, or components of the former State Budget and Control Board, Office of the Governor, or other agencies are transferred to, and incorporated into, the Department of Administration:

(1)   the Division of General Services, including Business Operations, Facilities Management, State Building and Property Services, and Agency Services, including surplus property, intrastate mail, parking, state fleet management, except that the Division of


Printed Page 3951 . . . . . Tuesday, May 28, 2013

General Services shall not be transferred to the Department of Administration until the Director of the Department of Administration enters into a memorandum of understanding with appropriate officials of applicable legislative and judicial agencies or departments meeting the requirements of this subsection. There shall be a single memorandum of understanding involving the Department of Administration and the legislative and judicial branches with appropriate officials of each to be signatories to the memorandum of understanding.

(a)   The memorandum of understanding shall provide for:

(i)     continued use of existing office space;

(ii)   a method for the allocation of new, additional, or different office space;

(iii)   adequate parking;

(iv)   a method for the allocation of new, additional, or different parking;

(v)   the provision of appropriate levels of electrical, mechanical, maintenance, energy management, fire protection, custodial, project management, safety and building renovation, and other services currently provided by the General Services Division of the State Budget and Control Board;

(vi)   the provision of water, electricity, steam, and chilled water to the offices, areas, and facilities occupied by the applicable agencies;

(vii)   the ability for each agency or department to maintain building access control for its allocated office space; and

(viii)   access control for the Senate and House chambers and courtrooms as appropriate.

(b)   The parties may modify the memorandum of understanding by mutual consent at any time.

(c)   The General Services Division must provide the services described in subsection (a) and any other maintenance and support, at a level that is greater than or equal to what is provided prior to the effective date of this act, to each building on the Capitol Complex, including the Supreme Court, without charge. The General Services Division must coordinate with the appropriate officials of applicable legislative and judicial agencies or departments when providing these services to the buildings and areas controlled by those agencies;

(2)   the State Office of Human Resources;

(3)   the Executive Budget and Strategic Planning Office as established in Article 2, Title 1;


Printed Page 3952 . . . . . Tuesday, May 28, 2013

(4)   the Guardian Ad Litem Program as established in Article 5, Chapter 11, Title 63;

(5)   the Office of Economic Opportunity, the office designated by the Governor to be the state administering agency that is responsible for the receipt and distribution of the federal funds as allocated to South Carolina for the implementation of Title VI, Public Law 97-35;

(6)   the Developmental Disabilities Council as established by Executive Order in 1971 and reauthorized in 2010;

(7)   the Continuum of Care for Emotionally Disturbed Children as established in Article 13, Chapter 11, Title 63;

(8)   the Division for Review of the Foster Care of Children as established by Article 7, Chapter 11, Title 63;

(9)   the Children's Case Resolution System as established by Article 11, Chapter 11, Title 63;

(10)   the Client Assistance Program;

(11)   the Division of Veterans' Affairs as established by Chapter 11, Title 25;

(12)   the Commission on Women as established by Chapter 15, Title 1;

(13)   the Office of Victims Assistance, including the South Carolina Victims Advisory Board and the Victims Compensation Fund, both as established by Article 13, Chapter 3, Title 16;

(14)   the Crime Victims' Ombudsman as established by Article 16, Chapter 3, Title 16;

(15)   the Governor's Office of Ombudsman;

(16)   the Division of Small and Minority Business Contracting and Certification, as established pursuant to Article 21, Chapter 35, Title 11, formerly known as the Small and Minority Business Assistance Office;

(17)   the Division of State Information Technology, including the Data Center, Telecommunications and Information Technology Services, the South Carolina Enterprise Information System, and the Division of Information Security; and

(18)   the Nuclear Advisory Council as established in Article 9, Chapter 7, Title 13.

(B)(1)   The Division of State Information Technology must submit the Statewide Strategic Information Technology Plan to the Director of the Department of Administration by September 1, 2015, and biennially thereafter. The director shall review the Statewide Strategic Information Technology Plan and recommend to the Governor priorities for state government enterprise information technology


Printed Page 3953 . . . . . Tuesday, May 28, 2013

projects and resource requirements. The director shall also review information technology spending by state agencies and evaluate whether greater efficiencies, more effective services, and cost savings can be achieved through streamlining, standardizing, and consolidating agency information technology.

(2)   All oversight concerning the South Carolina Enterprise Information System must remain as provided in Chapter 53, Title 11.

(C)   The Department of Administration shall use the existing resources of each division, insofar as it promotes efficiency and effectiveness, transferred to the department including, but not limited to, funding, personnel, equipment, and supplies from the board's administrative support units, including, but not limited to, the Office of the Executive Director, Office of General Counsel, and the Office of Internal Operations. 'Funding' means state, federal, and other funds. Vacant FTE's at the State Budget and Control Board also may be used to fill needed positions at the department. No new FTE's may be assigned to the department without authorization from the General Assembly.

(D)   No later than December 31, 2015, the department's director shall submit a report to the President Pro Tempore of the Senate and the Speaker of the House of Representatives that contains an analysis of and recommendations regarding the most appropriate organizational placement for each component of the Office of Executive Policy and Programs as of the effective date of this act. The department shall solicit input from and consider the recommendation of affected constituencies while developing its report.

(E)   The Department of Administration shall, during the absence of the Governor from Columbia, be placed in charge of the records and papers in the executive chamber kept pursuant to Section 1-3-30."

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

"Section 1-11-20.   The functions of the State Budget and Control Board must be performed, exercised, and discharged under the supervision and direction of the board through three divisions, the Finance Division (embracing the work of the State Auditor, the former State Budget Commission, the former State Finance Committee and the former Board of Claims for the State of South Carolina), the Purchasing and Property Division (embracing the work of the former Commissioners of the Sinking Fund, the former Board of Phosphate Commissioners, the State Electrician and Engineer, the former Commission on State House and State House Grounds, the central purchasing functions, the former Surplus Procurement Division of the


Printed Page 3954 . . . . . Tuesday, May 28, 2013

State Research, Planning and Development Board and the Property Custodian) and the Division of Personnel Administration (embracing the work of the former retirement board known as the South Carolina Retirement System and the administration of all laws relating to personnel), each division to consist of a director and clerical, stenographic and technical employees necessary, to be employed by the respective directors with the approval of the board. The directors of the divisions must be employed by the State Budget and Control Board for that time and compensation as may be fixed by the board in its judgment. Effective July 1, 2015:

(A)   The South Carolina Confederate Relic Room and Military Museum is transferred from the State Budget and Control Board and is governed by the South Carolina Confederate Relic Room and Military Museum Commission, as established in Section 60-17-10.

(B)   The Board of Economic Advisors of the State Budget and Control Board is transferred to, and incorporated into, the State Fiscal Accountability Authority.

(C)   The Office of Research and Statistics of the Budget and Control Board is transferred to, and incorporated into, the State Fiscal Accountability Authority.

(D)   The State Energy Office is transferred from the State Budget and Control Board to the Office of Regulatory Staff.

(E)   The offices, divisions, or components of the State Budget and Control Board named in this subsection are transferred to, and incorporated into, the Rural Infrastructure Authority as established in Section 11-50-30. All functions, powers, duties, responsibilities, and authority vested in the agencies and authorities, including their governing boards, if any, named in this subsection are devolved upon the Rural Infrastructure Authorty and the authority shall constitute the agencies and authorities, including their governing boards, if any, named in this subsection:

(1)   South Carolina Infrastructure Facilities Authority as established in Chapter 40, Title 11;

(2)   Local Government Division in support of the local government loan program as established in Section 1-11-25;

(3)   South Carolina Water Quality Revolving Fund Authority in support of water quality projects and federal loan programs as established in Chapter 5, Title 48; and

(4)   Division of Regional Development as established in Section 11-42-40.


Printed Page 3955 . . . . . Tuesday, May 28, 2013

(F)   The regulation of minerals and mineral interests on public land, and the regulation of Geothermal Resources as provided in Chapter 9, Title 10 is transferred to, and incorporated into, the Department of Health and Environmental Control.

(G)   The Procurement Services Division of the State Budget and Control Board is transferred to, and incorporated into, the State Fiscal Accountability Authority.

(H)   The State Auditor is transferred to, and incorporated into, the State Fiscal Accountability Authority."

SECTION   5.   (A)   Where the provisions of this act transfer offices, or portions of offices, of the Budget and Control Board, Office of the Governor, or other agencies to the Department of Administration or other entities, including those newly created by the provisions of this act, the employees, authorized appropriations, and assets and liabilities of the transferred offices are also transferred to and become part of the Department of Administration or other entities, including those newly created by the provisions of this act. All classified or unclassified personnel employed by these offices on the effective date of this act, either by contract or by employment at will, shall become employees of the Department of Administration or other entities, including those newly created by the provisions of this act, with the same employment status, compensation, classification, and grade level, as applicable.

(B)   Regulations promulgated by these transferred offices as they existed under the former Budget and Control Board, Office of the Governor, or other agencies are continued and are considered to be promulgated by these offices under the Department of Administration or other entities, including those newly created by the provisions of this act.

(C)(1)   The Code Commissioner is directed to change or correct all references to these offices of the former Budget and Control Board in the 1976 Code, Office of the Governor, or other agencies to reflect the transfer of them to the Department of Administration or other entities, including those newly created by the provisions of this act. References to the names of these offices in the 1976 Code or other provisions of law are considered to be and must be construed to mean appropriate references.

(2)   On or before July 1, 2014, the Code Commissioner also shall prepare and deliver a report to the President Pro Tempore of the Senate and the Speaker of the House of Representatives concerning appropriate and conforming changes to the 1976 Code of Laws reflecting the provisions of this act.


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  Part IV

Executive Budget and Strategic Planning Office

SECTION   6.   Chapter 3, Title 1 of the 1976 Code is amended by adding:

  "Article 2

Section 1-3-60.   (A)   There is established, within the Department of Administration, the Executive Budget and Strategic Planning Office which shall support the Office of the Governor by conducting analysis, assist with strategic planning and recommendations concerning capital expenditures, implementing and monitoring the annual general appropriations act, and evaluating program performance.

(B)   The Executive Budget and Strategic Planning Office shall use the existing resources of the organizations transferred to the Department of Administration including, but not limited to, funding, personnel, equipment, and supplies. Vacant FTE's at the former State Budget and Control Board also may be used to fill needed positions for the office."

  Part V

Legislative Oversight of Executive Departments

SECTION   7.   A.     Subsections (B) through (H) of Section 1-30-10 of the 1976 Code are amended to read:

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

(i)     a director, and in the case of the Department of Commerce, the or a 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(B); 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, a seven member commission constituted in a manner provided by law, and a Secretary of Transportation appointed by and serving at the pleasure of the Governor.

(2)   In making appointments to boards and for department directors, an appointment for a governing authority of a department, race, gender, and other demographic factors should be considered to assure nondiscrimination, inclusion, and representation to the greatest extent possible of all segments of the population of this State;


Printed Page 3957 . . . . . Tuesday, May 28, 2013

however, consideration of these factors in no way creates a cause of action or basis for an employee grievance for a person appointed or for a person who fails to be appointed. The Governor in making the appointments provided for by this section shall endeavor to appoint individuals who have demonstrated exemplary managerial skills in either the public or private sector.

(C)   Each department shall be organized into appropriate divisions subdivisions by the governing authority of the department through further consolidation or further subdivision. The power to organize and reorganize the department supersedes any provision of law to the contrary pertaining to individual divisions; provided, however, the into divisions lies with the General Assembly in furtherance of its mandate pursuant to Article XII of the South Carolina Constitution. The dissolution of any division must receive legislative approval by authorization included in the annual general appropriations act likewise be statutorily approved by the General Assembly.

Any other approval procedures for department reorganization in effect on the effective date of this act no longer apply.

(D)   The governing authority of a department is vested with the duty of overseeing, managing, and controlling the operation, administration, and organization of the department. The governing authority has the power to create and appoint standing or ad hoc advisory committees in its discretion or at the direction of the Governor to assist the department in particular areas of public concern or professional expertise as is deemed appropriate. Such committees shall serve at the pleasure of the governing authority and committee members shall not receive salary or per diem, but shall be entitled to reimbursement for actual and necessary expenses incurred pursuant to the discharge of official duties not to exceed the per diem, mileage, and subsistence amounts allowed by law for members of boards, commissions, and committees.

(E)   The governing authority of a department director may appoint deputy directors deputies to head the divisions of their department, with each deputy director managing one or more of the divisions; in the case of the Department of Commerce, the Secretary of Commerce may appoint a departmental executive director and also may appoint directors to manage the various divisions of the Department of Commerce. In making appointments race, gender, and other demographic factors should be considered to assure nondiscrimination, inclusion, and representation to the greatest extent possible of all segments of the population of this State; however, consideration of these factors in making an appointment in no way creates a cause of


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action or basis for an employee grievance for a person appointed or for a person who fails to be appointed. Deputy directors Deputies serve at the will and pleasure of the department director governing authority. The deputy director of a division is vested with the duty of overseeing, managing, and controlling the operation and administration of the division under the direction and control of the department director department's governing authority and performing such other duties as delegated by the department director department's governing authority.

(F)(1)   In the event a vacancy should occur occurs in the office of department director the department's governing authority at a time when the General Assembly is not in session, the Governor may temporarily fill the vacancy pursuant to Section 1-3-210.

(2)   Notwithstanding the provisions of subitem (F)(1), as of July 1, 1993, for each department created pursuant to the provisions of this act which must be governed by a single director, an initial interim director shall serve as the governing authority, serving until January 31, 1994. During that period the following departments must be governed by the director or interim director of the following agencies as of June 30, 1993:

(i)     Department of Corrections, created pursuant to Section 1-30-30, by the director of the former Department of Corrections;

(ii)   Department of Juvenile Justice created pursuant to Section 1-30-60, by the interim director of the former Department of Youth Services;

(iii)   Department of Probation, Parole, and Pardon Services created pursuant to Section 1-30-85 by the director of the former Department of Probation, Pardon and Parole;

(iv)   Department of Social Services created pursuant to Section 1-30-100, by the director of the former Department of Social Services;

(v)   Department of Parks, Recreation and Tourism created pursuant to Section 1-30-80, by the director of the former Department of Parks, Recreation and Tourism;

(vi)   Department of Commerce created pursuant to Section 1-30-25, by the Executive Director of the former State Development Board;

(vii)   Department of Alcohol and Other Drug Abuse Services created pursuant to Section 1-30-20, by the director of the former South Carolina Commission on Alcohol and Drug Abuse.

(3)   As of December 1, 1993, the Governor must submit to the Senate the names of appointees to the permanent department directorships for those departments created on July 1, 1993 and


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February 1, 1994. If no person has been appointed and qualified for a directorship as of February 1, 1994, the Governor may appoint an interim director to serve pursuant to the provisions of (F)(1).

(4)   Notwithstanding provisions of (2) and (3) to the contrary, the initial interim director of the Department of Public Safety shall be appointed by the Budget and Control Board. The initial interim director may be appointed as the permanent director of the department by the Governor.

(G)(1)   Department and agency governing authorities must, no later than the first day of the 1994 2015 Legislative Session and every twelve months thereafter for the following three years, submit to the Governor and General Assembly reports giving detailed and comprehensive recommendations for the purposes of merging or eliminating duplicative or unnecessary divisions, programs, or personnel within each department to provide a more efficient administration of government services. If an agency or department has no recommendations for restructuring of divisions, programs, or personnel, its report must contain a statement to that effect. Upon their receipt by the President of the Senate and the Speaker of the House of Representatives, these reports must be referred as information to the standing committees of the respective bodies most jurisdictionally related in subject matter to each agency. Alternatively, the House and Senate may provide by rule for the referral of these reports. Thereafter, The Governor shall must periodically consult with the governing authorities of the various departments and upon such consultation, the Governor shall must submit a report of any restructuring recommendations to the General Assembly for its review and consideration.

(2)   The Governor shall report to the General Assembly no later than the second Tuesday in January of 1994, his recommendation for restructuring the following offices and divisions presently under his direct supervision, and as to how each might be restructured within other appropriate departments or divisions amended by this act:

(i)     Office of Executive Policy and Programs;

(ii)   Office of Energy Programs;

(iii)   Office of Personnel and Program Services;

(iv)   Office of Research;

(v)   Division of Health;

(vi)   Division of Economic Opportunity;

(vii)   Division of Economic of Development;

(viii) Division of Ombudsman and Citizens' Services;


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(ix)   Division of Education;

(x)   Division of Natural Resources;

(xi)   Division of Human Services.

Department and agency governing authorities must, no later than the first day of the 2015 Legislative Session, and, as a part of the agency's seven-year oversight study and investigation conducted pursuant to Chapter 2, Title 2, submit to the Governor and the General Assembly a seven-year plan that provides initiatives and/or planned actions that implement cost savings and increased efficiencies of services and responsibilities within the projected seven-year period.

(H)   Department governing authorities must submit to the General Assembly by the first day of the 1994 legislative session and every five years thereafter a mission statement that must be approved by the General Assembly by Joint Resolution."

B.     Section 8-27-10(4) of the 1976 Code is amended to read:

"(4)   'Report' means:

(a)   a written document alleging a written or oral allegation of waste or wrongdoing that contains the following information:

(a)(i)   the date of disclosure;

(b)(ii)   the name of the employee making the report; and

(c)(iii)   the nature of the wrongdoing and the date or range of dates on which the wrongdoing allegedly occurred. A report must be made within sixty days one hundred eighty days of the date the reporting employee first learns of the alleged wrongdoing.; or

(b)   sworn testimony regarding wrongdoing, regardless of when the wrongdoing allegedly occurred, given to any standing committee, subcommittee of a standing committee, oversight committee, oversight subcommittee, or study committee of the Senate or the House of Representatives."

C.     Chapter 27, Title 8 of the 1976 Code is amended by adding:

"Section 8-27-60.   Each public body must make a summary of this chapter available on the public body's Internet website. The summary must include an explanation of the process required to report wrongdoing, an explanation of what constitutes wrongdoing, and a description of the protections available to an employee who reports wrongdoing. If the public body does not maintain an Internet website, the public body must annually provide a written summary of this chapter to its employees and maintain copies of the summary at all times."


Printed Page 3961 . . . . . Tuesday, May 28, 2013

D.     Title 2 of the 1976 Code is amended by adding:

  "CHAPTER 2

Legislative Oversight of Executive Departments

Section 2-2-5.   The General Assembly finds and declares the following to be the public policy of the State of South Carolina:

(1)   Section 1 of Article XII of the State Constitution requires the General Assembly to provide for appropriate agencies to function in the areas of health, welfare, and safety and to determine the activities, powers, and duties of these agencies and departments.

(2)   This constitutional duty is a continuing and ongoing obligation of the General Assembly that is best addressed by periodic review of the programs of the agencies and departments and their responsiveness to the needs of the state's citizens by the standing committees of the State Senate or House of Representatives.

Section 2-2-10.   As used in this chapter:

(1)   'Agency' means an authority, board, branch, commission, committee, department, division, or other instrumentality of the executive or judicial departments of state government, including administrative bodies. 'Agency' includes a body corporate and politic established as an instrumentality of the State. 'Agency' does not include:

(a)   the legislative department of state government; or

(b)   a political subdivision.

(2)   'Investigating committee' means any standing committee or subcommittee of a standing committee exercising its authority to conduct an oversight study and investigation of an agency within the standing committee's subject matter jurisdiction.

(3)   'Program evaluation report' means a report compiled by an agency at the request of an investigating committee that may include, but is not limited to, a review of agency management and organization, program delivery, agency goals and objectives, compliance with its statutory mandate, and fiscal accountability.

(4)   'Request for information' means a list of questions that an investigating committee serves on a department or agency under investigation. The questions may relate to any matters concerning the department or agency's actions that are the subject of the investigation.

(5)   'Standing committee' means a permanent committee with a regular meeting schedule and designated subject matter jurisdiction that is authorized by the Rules of the Senate or the Rules of the House of Representatives.


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Section 2-2-20.   (A)   Beginning January 1, 2015, each standing committee shall conduct oversight studies and investigations on all agencies within the standing committee's subject matter jurisdiction at least once every seven years in accordance with a schedule adopted as provided in this chapter.

(B)   The purpose of these oversight studies and investigations is to determine if agency laws and programs within the subject matter jurisdiction of a standing committee:

(1)   are being implemented and carried out in accordance with the intent of the General Assembly; and

(2)   should be continued, curtailed, or eliminated.

(C)   The oversight studies and investigations must consider:

(1)   the application, administration, execution, and effectiveness of laws and programs addressing subjects within the standing committee's subject matter jurisdiction;

(2)   the organization and operation of state agencies and entities having responsibilities for the administration and execution of laws and programs addressing subjects within the standing committee's subject matter jurisdiction; and

(3)   any conditions or circumstances that may indicate the necessity or desirability of enacting new or additional legislation addressing subjects within the standing committee's subject matter jurisdiction.

Section 2-2-30.   (A)   The procedure for conducting the oversight studies and investigations is provided in this section.

(B)(1)   The President Pro Tempore of the Senate, upon consulting with the chairmen of the standing committees in the Senate and the Clerk of the Senate, shall determine the agencies for which each standing committee must conduct oversight studies and investigations. A proposed seven year review schedule must be published in the Senate Journal on the first day of session each year.

(2)   In order to accomplish the requirements of this chapter, the chairman of each standing committees must schedule oversight studies and investigations for the agencies for which his standing committee is the investigating committee and may:

(a)   coordinate schedules for conducting oversight studies and investigations with the chairmen of other standing committees; and

(b)   appoint joint investigating committees to conduct the oversight studies and investigations including, but not limited to, joint committees of the Senate and House of Representatives or joint


Printed Page 3963 . . . . . Tuesday, May 28, 2013

standing committees of concurrent subject matter jurisdiction within the Senate or within the House of Representatives.

(3)   Chairmen of standing committees having concurrent subject matter jurisdiction over an agency or the programs and law governing an agency by virtue of the Rules of the Senate or Rules of the House of Representatives, may request that a joint investigating committee be appointed to conduct the oversight study and investigation for an agency.

(C)(1)   The Speaker of the House of Representatives, upon consulting with the chairmen of the standing committees in the House of Representatives and the Clerk of the House of Representatives, shall determine the agencies for which each standing committee must conduct oversight studies and investigations. A proposed seven year review schedule must be published in the House Journal on the first day of session each year.

(2)   In order to accomplish the requirements of this chapter, the chairman of each standing committee must schedule oversight studies and investigations for the agencies for which his standing committee is the investigating committee and may:

(a)   coordinate schedules for conducting oversight studies and investigations with the chairmen of other standing committees; and

(b)   appoint joint investigating committees to conduct the oversight studies and investigations including, but not limited to, joint committees of the Senate and House of Representatives or joint standing committees of concurrent subject matter jurisdiction within the Senate or within the House of Representatives.

(3)   Chairmen of standing committees having concurrent subject matter jurisdiction over an agency or the programs and law governing an agency by virtue of the Rules of the Senate or Rules of the House of Representatives, may request that a joint investigating committee be appointed to conduct the oversight study and investigation for the agency.

(D)   The chairman of an investigating committee may vest the standing committee's full investigative power and authority in a subcommittee. A subcommittee conducting an oversight study and investigation of an agency: (1) must make a full report of its findings and recommendations to the standing committee at the conclusion of its oversight study and investigation, and (2) must not consist of fewer than three members.

Section 2-2-40.   (A)   In addition to the scheduled seven year oversight studies and investigations, a standing committee of the Senate


Printed Page 3964 . . . . . Tuesday, May 28, 2013

or House of Representatives may initiate an oversight study and investigation of an agency within its subject matter jurisdiction. The motion calling for the oversight study and investigation must state the subject matter and scope of the oversight study and investigation. The oversight study and investigation must not exceed the scope stated in the motion or the scope of the information uncovered by the investigation.

(B)   Nothing in the provisions of this chapter prohibits or restricts the President Pro Tempore of the Senate, the Speaker of the House of Representatives, or chairmen of standing committees from fulfilling their constitutional obligations by authorizing and conducting legislative investigations into agencies' functions, duties, and activities.

Section 2-2-50.   When an investigating committee conducts an oversight study and investigation or a legislative investigation is conducted pursuant to Section 2-2-40(B), evidence or information related to the investigation may be acquired by any lawful means, including, but not limited to:

(A)   serving a request for information on the agency being studied or investigated. The request for information must be answered separately and fully in writing under oath and returned to the investigating committee within forty-five days after being served upon the department or agency. The time for answering a request for information may be extended for a period to be agreed upon by the investigating committee and the agency for good cause shown. The head of the department or agency must sign the answers verifying them as true and correct. If any question contains a request for records, policies, audio or video recordings, or other documents, the question is not considered to have been answered unless a complete set of records, policies, audio or video recordings, or other documents is included with the answer;

(B)   issuing subpoenas and subpoenas duces tecum pursuant to Title 2, Chapter 69; and

(C)   requiring the agency to prepare and submit to the investigating committee a program evaluation report by a date specified by the investigating committee. The investigating committee must specify the agency program or programs or agency operations that it is studying or investigating and the information to be contained in the program evaluation report.

Section 2-2-60.   (A)   An investigating committee's request for a program evaluation report must contain:


Printed Page 3965 . . . . . Tuesday, May 28, 2013

(1)   the agency program or operations that it intends to investigate;

(2)   the information that must be included in the report; and

(3)   the date that the report must be submitted to the committee.

(B)   An investigating committee may request that the program evaluation report contain any of the following information:

(1)   enabling or authorizing law or other relevant mandate, including any federal mandates;

(2)   a description of each program administered by the agency identified by the investigating committee in the request for a program evaluation report, including the following information:

(a)   established priorities, including goals and objectives in meeting each priority;

(b)   performance criteria, timetables, or other benchmarks used by the agency to measure its progress in achieving its goals and objectives;

(c)   an assessment by the agency indicating the extent to which it has met the goals and objectives, using the performance criteria. When an agency has not met its goals and objectives, the agency shall identify the reasons for not meeting them and the corrective measures the agency has taken to meet them in the future;

(3)   organizational structure, including a position count, job classification, and organization flow chart indicating lines of responsibility;

(4)   financial summary, including sources of funding by program and the amounts allocated or appropriated and expended over the last ten years;

(5)   identification of areas where the agency has coordinated efforts with other state and federal agencies in achieving program objectives and other areas in which an agency could establish cooperative arrangements including, but not limited to, cooperative arrangements to coordinate services and eliminate redundant requirements;

(6)   identification of the constituencies served by the agency or program, noting any changes or projected changes in the constituencies;

(7)   a summary of efforts by the agency or program regarding the use of alternative delivery systems, including privatization, in meeting its goals and objectives;

(8)   identification of emerging issues for the agency;


Printed Page 3966 . . . . . Tuesday, May 28, 2013

(9)   a comparison of any related federal laws and regulations to the state laws governing the agency or program and the rules implemented by the agency or program;

(10)   agency policies for collecting, managing, and using personal information over the internet and non-electronically, information on the agency's implementation of information technologies;

(11)   a list of reports, applications, and other similar paperwork required to be filed with the agency by the public. The list must include:

(a)   the statutory authority for each filing requirement;

(b)   the date each filing requirement was adopted or last amended by the agency;

(c)   the frequency that filing is required;

(d)   the number of filings received annually for the last seven years and the number of anticipated filings for the next four years;

(e)   a description of the actions taken or contemplated by the agency to reduce filing requirements and paperwork duplication;

(12)   any other relevant information specifically requested by the investigating committee.

(C)   All information contained in a program evaluation report must be presented in a concise and complete manner.

(D)   The chairman of the investigating committee may direct the Legislative Audit Council to perform a study of the program evaluation report and report its findings to the investigating committee. The chairman also may direct the Legislative Audit Council to perform its own audit of the program or operations being studied or investigated by the investigating committee.

(E)   A state agency that is vested with revenue bonding authority may submit annual reports and annual external audit reports conducted by a third party in lieu of a program evaluation report.

Section 2-2-70.   All testimony given to the investigating committee must be under oath.

Section 2-2-80.   Any witness testifying before the investigating committee may have counsel present to advise him. The witness or his counsel may, during the time of testimony , claim any legal privilege recognized by the laws of this State in response to any question and is entitled to have a ruling by the chairman on any objection. In making his ruling, the chairman of the investigating committee shall follow as closely as possible the statutory law and the decisions of the courts of this State regarding legal privileges. The ruling of the chair may not be


Printed Page 3967 . . . . . Tuesday, May 28, 2013

reviewed by the courts of this State except in a separate proceeding for contempt of the General Assembly.

Section 2-2-90.   A witness shall be given the benefit of any privilege at law which he may have in court as a party to a civil action."

E.     This part takes effect January 1, 2015.

  Part VI

Conforming and Miscellaneous Amendments to Divisions,

Offices, and Other Entities or Programs Transferred to

the Department of Administration

SECTION   8.   A.     Section 1-11-55 of the 1976 Code is amended to read:

"Section 1-11-55.   (1)   'Governmental body' means a state government department, commission, council, board, bureau, committee, institution, college, university, technical school, legislative body, agency, government corporation, or other establishment or official of the executive, judicial, or legislative branches branch of this State. Governmental body excludes the General Assembly, Legislative Council, the Office of Legislative Printing, Information and Technology Systems, the judicial department and all local political subdivisions such as counties, municipalities, school districts, or public service or special purpose districts.

(2)   The Budget and Control Board Division of General Services of the Department of Administration is hereby designated as the single central broker for the leasing of real property for governmental bodies. No governmental body shall enter into any lease agreement or renew any existing lease except in accordance with the provisions of this section.

(3)   When any governmental body needs to acquire real property for its operations or any part thereof and state-owned property is not available, it shall notify the Office Division of General Services of its requirement on rental request forms prepared by the office division. Such forms shall indicate the amount and location of space desired, the purpose for which it shall be used, the proposed date of occupancy and such other information as General Services may require. Upon receipt of any such request, General Services shall conduct an investigation of available rental space which would adequately meet the governmental body's requirements, including specific locations which may be suggested and preferred by the governmental body concerned. When suitable space has been located which the governmental body and the office division agree meets necessary requirements and standards for state leasing as prescribed in procedures of the board department as


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provided for in subsection (5) of this section, General Services shall give its written approval to the governmental body to enter into a lease agreement. All proposed lease renewals shall be submitted to General Services by the time specified by General Services.

(4)   The board department shall adopt procedures to be used for governmental bodies to apply for rental space, for acquiring leased space, and for leasing state-owned space to nonstate lessees.

(5)   Any participant in a property transaction proposed to be entered who maintains that a procedure provided for in this section has not been properly followed, may request review of the transaction by the director of the Office Division of General Services of the Department of Administration or his designee."

B.   Sections 1-11-56 and 1-11-58 of the 1976 Code are amended to read:

"Section 1-11-56.   (A)   The State Budget and Control Board, Division of General Services of the Department of Administration, in an effort to ensure that funds authorized and appropriated for rent are used in the most efficient manner, is directed to develop a program to manage the leasing of all public and private space of state agencies a governmental body. The department must submit regulations for the implementation of this section to the General Assembly as provided in the Administrative Procedures Act, Chapter 23, Title 1. The board's department's regulations, upon General Assembly approval, shall include procedures for:

(1)   assessing and evaluating agency needs, including the authority to require agency justification for any request to lease public or private space;

(2)   establishing standards for the quality and quantity of space to be leased by a requesting agency;

(3)   devising and requiring the use of a standard lease form (approved by the Attorney General) with provisions which assert and protect the state's prerogatives including, but not limited to, a right of cancellation in the event of:

(a)   a nonappropriation for the renting agency,

(b)   a dissolution of the agency, and

(c)   the availability of public space in substitution for private space being leased by the agency;

(4)   rejecting an agency's request for additional space or space at a specific location, or both;

(5)   directing agencies to be located in public space, when available, before private space can be leased;


Printed Page 3969 . . . . . Tuesday, May 28, 2013

(6)   requiring the agency to submit a multi-year financial plan for review by the board's budget office department with copies sent to Ways and Means Committee and Senate Finance Committee, before any new lease for space is entered into; and requiring prior review by the Joint Bond Review Committee and the requirement of Budget and Control Board approval before the adoption of any new lease that commits more than one million dollars in a five-year period; and

(7)   requiring prior review by the Joint Bond Review Committee and the requirement of Budget and Control Board State Fiscal Accountability Authority approval before the adoption of any new or renewal lease that commits more than two hundred thousand dollars annually in rental or lease payments or more than one million dollars in such payments in a five-year period.

(B)   Leases or rental agreements involving amounts below the thresholds provided in item (7) of subsection (A) may be executed by the Department of Administration without this prior review by the Joint Bond Review Committee and approval by the State Fiscal Accountability Authority.

(C)   The threshold requirements requiring review by the Joint Bond Review Committee and approval by the State Fiscal Accountability Authority as contained in item (7) of subsection (A) also apply to leases or rental agreements with nonstate entities whether or not the state or its agencies or departments is the lessee or lessor.

Section 1-11-58.   (A)(1)   Every state agency, as defined by Section 1-19-40, shall annually perform an inventory and prepare a report of all residential and surplus real property owned by it. The report shall be submitted to the State Budget and Control Board Department of Administration, Office Division of General Services, on or before June thirtieth and shall indicate current use, current value, and projected use of the property. Property not currently being utilized for necessary agency operations shall be made available for sale and funds received from the sale of the property shall revert to the general fund.

(2)   The Office Division of General Services will shall review the annual reports addressing real property submitted to it and determine the real property which is surplus to the State. A central listing of such property will be maintained for reference in reviewing subsequent property acquisition needs of agencies.

(3)   Upon receipt of a request by an agency to acquire additional property, the Office Division of General Services shall review the surplus property list to determine if the agency's needs can may be met from existing state-owned property. If such property is identified, the


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Office division of General Services shall act as broker in transferring the property to the requesting agency under terms and conditions that are mutually agreeable to the agencies involved.

(4)   The Budget and Control Board department may authorize the Office Division of General Services to sell any unassigned surplus real property. The Office of General Services division shall have the discretion to determine the method of disposal to be used, which possible methods include: auction, sealed bids, listing the property with a private broker or any other method determined by the Office of General Services division to be commercially reasonable considering the type and location of property involved.

(B)   The procedures involving surplus real property sales under this section are also subject to the approvals required in Section 1-11-65 for surplus real property sales above five hundred thousand dollars."

C.     Sections 1-11-65, 1-11-67, 1-11-70, 1-11-80, 1-11-90, 1-11-100, 1-11-110, and 1-11-180 of the 1976 Code are amended to read:

"Section 1-11-65.   (A)   All transactions involving real property, made for or by any governmental bodies, excluding political subdivisions of the State, must be approved by and recorded with the State Budget and Control Board Department of Administration for transactions of the one million dollars or less. For transactions of more than one million dollars, approval of the State Fiscal Accountability Authority is required in lieu of the department, although the recording will be with the department. Upon approval of the transaction by the Budget and Control Board, there must be recorded simultaneously with the deed, a certificate of acceptance, which acknowledges the board's department's, and authority's, approval of the transaction as required. The county recording authority cannot accept for recording any deed not accompanied by a certificate of acceptance. The board department and authority may exempt a governmental body from the provisions of this subsection.

(B)   All state agencies, departments, and institutions authorized by law to accept gifts of tangible personal property shall have executed by its governing body an acknowledgment of acceptance prior to transfer of the tangible personal property to the agency, department, or institution.

Section 1-11-67.   The State Budget and Control Board Department of Administration shall assess and collect a rental charge from all state departments and agencies that occupy State Budget and Control Board space in state-controlled office buildings under its jurisdiction. The


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amount charged each department or agency must be calculated on a square foot, or other equitable basis of measurement, and at rates that will yield sufficient total annual revenue to cover the annual principal and interest due or anticipated on the Capital Improvement Obligations for projects administered or planned by the Office of General Services department, and maintenance and operation costs of State Budget and Control Board-controlled department-controlled office buildings under the supervision of the Office of General Services. The amount collected must be deposited in a special account and must be expended only for payment on Capital Improvement Obligations and maintenance and operations costs of the buildings under the supervision of the Office of General Services department.

All departments and agencies against which rental charges are assessed and whose operations are financed in whole or in part by federal or other nonappropriated funds are both directed to apportion the payment of these charges equitably among all funds to ensure that each bears its proportionate share.

Section 1-11-70.   All vacant lands and lands purchased by the former land commissioners of the State shall be are subject to the directions of the State Budget and Control Board Department of Administration.

Section 1-11-80.   The State Budget and Control Board Department of Administration is authorized to grant easements and rights of way to any person for construction and maintenance of power lines, pipe lines, water and sewer lines and railroad facilities over, on or under such vacant lands or marshland as are owned by the State, upon payment of the reasonable value thereof.

Section 1-11-90.   The State Budget and Control Board Department of Administration may grant to agencies or political subdivisions of the State, without compensation, rights of way through and over such marshlands as are owned by the State for the construction and maintenance of roads, streets and highways or power or pipe lines, if, in the judgment of the Budget and Control Board department, the interests of the State will not be adversely affected thereby.

Section 1-11-100.   Deeds or other instruments conveying such rights of way or easements over such marshlands or vacant lands as are owned by the State shall be executed by the Governor in the name of the State, when authorized by resolution of the Budget and Control Board, duly recorded in the minutes and records of such board authorized by the Department of Administration and when duly approved by the office of the Attorney General; deeds or other instruments conveying such easements over property in the name of or


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under the control of State agencies, institutions, commissions or other bodies shall be executed by the majority of the governing body thereof, shall name both the State of South Carolina and the institution, agency, commission or governing body as grantors, and shall show the written approval of the majority of the members of the State Budget and Control Board Director of the Department of Administration.

Section 1-11-110.   (1)   The State Budget and Control Board Department of Administration, subject to the requirements of Section 1-11-65, is authorized to acquire real property, including any estate or interest therein, for, and in the name of, the State of South Carolina by gift, purchase, condemnation or otherwise.

(2)   The State Budget and Control Board Department of Administration shall make use of the provisions of the Eminent Domain Procedure Act (Chapter 2, of Title 28) if it is necessary to acquire real property by condemnation. The actions must be maintained by and in the name of the board department. The right of condemnation is limited to the right to acquire land necessary for the development of the Capitol Complex mall grounds in the City of Columbia.

Section 1-11-180.   (A)   In addition to the powers granted the Budget and Control Board Department of Administration under this chapter or any other provision of law, the board department may:

(1)   survey, appraise, examine, and inspect the condition of state property to determine what is necessary to protect state property against fire or deterioration and to conserve the use of the property for state purposes;

(2)   approve the destruction or disposal of state agency records;

(3)   require submission and approval of plans and specifications for permanent improvements by a state department, agency, or institution before a contract is awarded for the permanent improvement;

(4)   approve blanket bonds for a state department, agency, or institution including bonds for state officials or personnel. However, the form and execution of blanket bonds must be approved by the Attorney General; and

(5)(3)   contract to develop an energy utilization management system for state facilities under its control and to assist other agencies and departments in establishing similar programs. However, this does not authorize capital expenditures.

(B)   The Budget and Control Board may Department of Administration shall promulgate regulations necessary to carry out this section."


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

"Section 1-11-185.   (A)   In addition to the powers granted the Department of Administration pursuant to this chapter or another provision of law, the department may require submission and approval of plans and specifications for a permanent improvement project of a cost of one million dollars or less by a state department, agency, or institution of the executive branch before a contract is awarded for the permanent improvement project. If the cost of the permanent improvement project is more than one million dollars, approval of the State Fiscal Accountability Authority is required, in lieu of the department's approval, before the contract may be awarded and the authority may require submission of the plans and specifications for this purpose. The provisions of this subsection are in addition to any other requirements of law relating to permanent improvement projects, including the provisions of Chapter 47, Title 2.

(B)   The Department of Administration may promulgate regulations necessary to carry out its duties.

(C)   The respective divisions of the Department of Administration are authorized to provide to and receive from other governmental entities, including other divisions and state and local agencies and departments, goods and services as will in its opinion promote efficient and economical operations. The divisions may charge and pay the entities for the goods and services, the revenue from which must be deposited in the state treasury in a special account and expended only for the costs of providing the goods and services, and those funds may be retained and expended for the same purposes."

E.     1.   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 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:


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(a)   to achieve maximum cost-effectiveness management of state-owned motor vehicles in support of the established missions and objectives of the agencies, boards, and commissions.;

(b)   to eliminate unofficial and unauthorized use of state vehicles.;

(c)   to minimize individual assignment of state vehicles.;

(d)   to eliminate the reimbursable use of personal vehicles for accomplishment of official travel when this use is more costly than use of state vehicles.;

(e)   to acquire motor vehicles offering optimum energy efficiency for the tasks to be performed.;

(f)   to insure motor vehicles are operated in a safe manner in accordance with a statewide Fleet Safety Program;

(g)   to improve environmental quality in this State by decreasing the discharge of pollutants."

2.     Section 1-11-225 of the 1976 Code is amended to read:

"Section 1-11-225.   The Division of Operations Department of Administration shall establish a cost allocation plan to recover the cost of operating the comprehensive statewide Fleet Management Program. The division shall collect, retain, and carry forward funds to ensure continuous administration of the program."

3.     Sections 1-11-250, 1-11-260, 1-11-270(A), 1-11-280, 1-11-290; 1-11-300, 1-11-310, as last amended by Act 203 of 2008, 1-11-315, 1-11-320; 1-11-335, and 1-11-340 of the 1976 Code are amended to read:

"Section 1-11-250.   For purposes of Sections 1-11-220 to 1-11-330:

(a)   'State agency' means all officers, departments, boards, commissions, institutions, universities, colleges, and all persons and administrative units of state government that operate motor vehicles purchased, leased, or otherwise held with the use of state funds, pursuant to an appropriation, grant or encumbrance of state funds, or operated pursuant to authority granted by the State.

(b)   'Board Department' means State Budget and Control Board the South Carolina Department of Administration.

Section 1-11-260.   (A)   The Fleet Manager shall report annually to the Budget and Control Board and the General Assembly concerning the performance of each state agency in achieving the objectives enumerated in Sections 1-11-220 through 1-11-330 and include in the report a summary of the division's program's efforts in aiding and assisting the various state agencies in developing and maintaining their management practices in accordance with the comprehensive statewide


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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


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(d)   preventive maintenance programs for all types of vehicles.

All motor fuels shall be purchased from state facilities except in cases where such purchase is impossible or not cost beneficial to the State.

All fuels, lubricants, parts, and maintenance costs including those purchased from commercial vendors shall be charged to a state credit card bearing the license plate number of the vehicle serviced and the bill shall include the mileage on the odometer of the vehicle at the time of service.

Section 1-11-300.   In accordance with criteria established by the board department, each agency shall develop and implement a uniform cost accounting and reporting system to ascertain the cost per mile of each motor vehicle used by the State under their control. Agencies presently operating under existing systems may continue to do so provided that board departmental approval shall be is required and that the existing systems shall be are uniform with the criteria established by the board department. All expenditures on a vehicle for gasoline and oil shall be purchased in one of the following ways:

(1)   from state-owned facilities and paid for by the use of Universal State Credit Cards except where agencies purchase these products in bulk;

(2)   from any fuel outlet where gasoline and oil are sold regardless of whether the outlet accepts a credit or charge card when the purchase is necessary or in the best interest of the State; and

(3)   from a fuel outlet where gasoline and oil are sold when that outlet agrees to accept the Universal State Credit Card.

These provisions regarding purchase of gasoline and oil and usability of the state credit card also apply to alternative transportation fuels where available. The Budget and Control Board Division of Operations department shall adjust the budgetary appropriation in Part IA, Section 63B, for 'Operating Expenses--Lease Fleet' to reflect the dollar savings realized by these provisions and transfer such amount to other areas of the State Fleet Management Program. The Board department shall promulgate regulations regarding the purchase of motor vehicle equipment and supplies to ensure that agencies within a reasonable distance are not duplicating maintenance services or purchasing equipment that is not in the best interest of the State. The Board department shall develop a uniform method to be used by the agencies to determine the cost per mile for each vehicle operated by the State.

Section 1-11-310.   (A)   The State Budget and Control Board Department of Administration shall purchase, acquire, transfer, replace,


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and dispose of all motor vehicles on the basis of maximum cost-effectiveness and lowest anticipated total life cycle costs.

(B)   The standard state fleet sedan or station wagon must be no larger than a compact model and the special state fleet sedan or station wagon must be no larger than an intermediate model. The director of the Division of Motor Vehicle Management State Fleet Manager shall determine the types of vehicles which fit into these classes. Only these classes of sedans and station wagons may be purchased by the State for nonlaw enforcement use.

(C)   The State shall purchase police sedans only for the use of law enforcement officers, as defined by the Internal Revenue Code. Purchase of a vehicle under this subsection must be concurred in by the director of the Division of Motor Vehicle Management State Fleet Manager and must be in accordance with regulations promulgated or procedures adopted under Sections 1-11-220 through 1-11-340 which must take into consideration the agency's mission, the intended use of the vehicle, and the officer's duties. Law enforcement agency vehicles used by employees whose job functions do not meet the Internal Revenue Service definition of 'Law Enforcement Officer' must be standard or special state fleet sedans.

(D)   All state motor vehicles must be titled to the State and must be received by and remain in the possession of the Division Program of Motor Vehicle Fleet Management pending sale or disposal of the vehicle.

(E)   Titles to school buses and service vehicles operated by the State Department of Education and vehicles operated by the South Carolina Department of Transportation must be retained by those agencies.

(F)   Exceptions to requirements in subsections (B) and (C) must be approved by the director of the Division of Motor Vehicle Management State Fleet Manager. Requirements in subsection (B) do not apply to the State Development Board Department of Commerce.

(G)   Preference in purchasing state motor vehicles must be given to vehicles assembled in the United States with at least seventy-five percent domestic content as determined by the appropriate federal agency.

(H)   Preference in purchasing state motor vehicles must be given to hybrid, plug-in hybrid, bio-diesel, hydrogen, fuel cell, or flex-fuel vehicles when the performance, quality, and anticipated life cycle costs are comparable to other available motor vehicles.

Section 1-11-315.   The State Budget and Control Board Department of Administration, Division of General Services, Program of Motor


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Vehicle Fleet Management, shall determine the extent to which the state vehicle fleet can be configured to operate on alternative transportation fuels. This determination must be based on a thorough evaluation of each alternative fuel and the feasibility of using such fuels to power state vehicles. The state fleet must be configured in a manner that will serve as a model for other corporate and government fleets in the use of alternative transportation fuel. By March 1, 1993, the Division Program of Motor Vehicle Fleet Management must submit a plan to the General Assembly for the use of alternative transportation fuels for the state vehicle fleet that will enable the state vehicle fleet to serve as a model for corporate and other government fleets in the use of alternative transportation fuel. This plan must contain a cost/benefit analysis of the proposed changes.

Section 1-11-320.   The Board department shall ensure that all state-owned motor vehicles are identified as such through the use of permanent state-government state government license plates and either state or agency seal decals. No vehicles shall be exempt from the requirements for identification except those exempted by the Board department.

This section shall not apply to vehicles supplied to law enforcement officers when, in the opinion of the Board department after consulting with the Chief of the State Law Enforcement Division, those officers are actually involved in undercover law enforcement work to the extent that the actual investigation of criminal cases or the investigators' physical well-being would be jeopardized if they were identified. The Board department is authorized to exempt vehicles carrying human service agency clients in those instances in which the privacy of the client would clearly and necessarily be impaired.

Section 1-11-335.   The respective divisions of the Budget and Control Board Department of Administration are authorized to provide to and receive from other governmental entities, including other divisions and state and local agencies and departments, goods and services, as will in its opinion promote efficient and economical operations. The divisions may charge and pay the entities for the goods and services, the revenue from which shall be deposited in the state treasury in a special account and expended only for the costs of providing the goods and services, and such funds may be retained and expended for the same purposes.

Section 1-11-340.   The Board department shall develop and implement a statewide Fleet Safety Program for operators of state-owned vehicles which shall serve to minimize the amount paid for


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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."

F.     Section 1-11-435 of the 1976 Code is amended to read:

"Section 1-11-435.   To protect the state's critical information technology infrastructure and associated data systems in the event of a major disaster, whether natural or otherwise, or resulting from an infiltration or compromise of the infrastructure and associated data systems, and to allow the services to the citizens of this State to continue in such an event, the Office Division of the State Chief Information Officer Technology in the Department of Administration (CIO) should develop a Critical Information Technology Infrastructure Protection Plan devising policies and procedures to provide for the confidentiality, integrity, and availability of, and to allow for alternative and immediate online access to critical data and information systems including, but not limited to, health and human services, law enforcement, and related agency data necessary to provide critical information to citizens and ensure the protection of state employees as they carry out their disaster-related duties. All state agencies and political subdivisions of this State are directed to assist the Office of the State CIO division in the collection of data required for this plan."

G.     Section 1-15-10 of the 1976 Code, as last amended by Act 249 of 2008, is further amended to read:

"Section 1-15-10.   There is hereby created a Commission on Women to be composed of fifteen members appointed by the Governor with the advice and consent of the Senate from among persons with a competency in the area of public affairs and women's activities. One member must be appointed from each congressional district and the remaining members from the State at large. The commission shall be under and a part of the Office of the Governor Department of Administration. Members of the commission shall serve for terms of four years and until their successors are appointed and qualify, except of those members first appointed after the expansion of the commission to fifteen members, two members shall serve a term of one year, two members shall serve a term of two years, two members shall serve a term of three years, and two members shall serve a term of four years. Members appointed prior to and after the expansion of the commission to fifteen members shall be designated by the Governor as being


Printed Page 3980 . . . . . Tuesday, May 28, 2013

appointed to serve either from a particular congressional district or at large. Vacancies shall be filled in the manner of the original appointment for the unexpired portion of the term only. No member shall be eligible to serve more than two consecutive terms."

H.     1.   Section 1-30-110 of the 1976 Code is repealed.

2.   Section 2-59-10(1) of the 1976 Code is amended to read:

"1.   management of the L. Marion Gressette Building and the Senate areas of the State House with sole authority to formulate and implement policies and procedures for the effective utilization of personnel, equipment, and space within the building L. Marion Gressette Building and the Senate areas of the State House;"

I.   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 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


Printed Page 3981 . . . . . Tuesday, May 28, 2013

authorities of the State, make recommendations regarding the need of such applicant for the property, the merits of its proposed program of utilization, the suitability of the property for the purposes, and otherwise assist in the processing of the applications for acquisition of real and related personal property of the United States under Section 203 (k) of the act.

(c)   For the purpose of executing its authority under this chapter, the Division of General Services is authorized to adopt, amend or rescind rules and regulations and prescribe such requirements as may be deemed necessary; and take such other action as is deemed necessary and suitable, in the administration of this chapter, to assure maximum utilization by and benefit to health, educational and civil defense institutions and organizations within the State from property distributed under this chapter.

(d)   The Budget and Control Board Department of Administration is authorized to appoint advisory boards or committees, and to employ such personnel and prescribe their duties as are deemed necessary and suitable for the administration of this chapter.

(e)   The Director of the Division of General Services is authorized to make such certifications, take such action and enter into such contracts, agreements and undertakings for and in the name of the State (including cooperative agreements with any Federal agencies providing for utilization of property and facilities by and exchange between them of personnel and services without reimbursement), require such reports and make such investigations as may be required by law or regulation of the United States of America in connection with the receipt, warehousing, and distribution of personal property received by him from the United States of America.

(f)   The Division of General Services is authorized to act as clearinghouse of information for the public and private nonprofit institutions, organizations and agencies referred to in subparagraph (a) of this section and other institutions eligible to acquire federal surplus personal property, to locate both real and personal property available for acquisition from the United States of America, to ascertain the terms and conditions under which such property may be obtained, to receive requests from the above-mentioned institutions, organizations, and agencies and to transmit to them all available information in reference to such property, and to aid and assist such institutions, organizations, and agencies in every way possible in the consummation of acquisitions or transactions hereunder.


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(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 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."

J.   Section 10-1-10 of the 1976 Code, as last amended by Act 628 of 1988, is further amended to read:

"Section 10-1-10.   The State Budget and Control Board Department of Administration shall keep, landscape, cultivate, and beautify the State House and State House grounds with authority to expend such amounts as may be annually appropriated therefor. The board department shall employ all help and labor in policing, protecting, and caring for the State House and State House grounds and shall have full authority over them."


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K.     Section 10-1-30 of the 1976 Code, as last amended by Act 628 of 1988, is further amended to read:

"Section 10-1-30.   (A)   The Director of the Division of General Services of the State Budget and Control Board may authorize the use of the State House lobbies, areas of State House except for those provided in subsection (B), the State House steps and grounds, and other public buildings and grounds except for those provided in subsection (B) in accordance with regulations promulgated by the board department and the laws of this State.

(B)   The Clerk of the Senate and the Clerk of the House of Representatives shall provide joint approval for access to or the use of the second and third floors of the State House; provided, that use of the respective chambers of each house shall be the prerogative of that house. The director shall obtain the approval of the Clerk of the Senate before authorizing shall provide prior authorization for any access to or use of the Gressette Senate Office Building and shall obtain the approval of the Clerk of the House of Representatives before authorizing shall provide prior authorization for any access to or use of the Blatt House Office Building. Management and supervision of the office buildings of each house of the General Assembly shall be exercised by each house acting through the respective clerks.

(C)   The regulations promulgated pursuant to subsection (A) must contain provisions to insure ensure that the public health, safety, and welfare will be are protected in the use of the areas including reasonable time, place, and manner restrictions and application periods before use. If sufficient measures cannot be are not taken to protect the public health, safety, and welfare, the director shall deny the requested use. Other restrictions may be imposed on the use of the areas as are necessary for the conduct of business in those areas and the maintenance of the dignity, decorum, and aesthetics of the areas."

L.   Section 10-1-130 of the 1976 Code is amended to read:

"Section 10-1-130.   The trustees or governing bodies of state institutions and agencies may grant easements and rights of way over any property under their control, upon the concurrence and acquiescence of the State Budget and Control Board recommendation of the Department of Administration, whenever it appears that such easements will do not materially impair the utility of the property or damage it and, when a consideration is paid therefor, any such amounts shall must be placed in the State Treasury to the credit of the institution or agency having control of the property involved."


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M.   Section 10-1-190 of the 1976 Code, as added by Act 145 of 1995, is amended to read:

"Section 10-1-190.   As part of the approval process relating to trades of state property for nonstate property, the Budget and Control Board Department of Administration is authorized to approve the application of any net proceeds resulting from such a transaction to the improvement of the property held by the board department."

N.     Chapter 9, Title 10 of the 1976 Code is amended to read:

  "CHAPTER 9

Minerals and Mineral Interests

in Public Lands

Article 1

General Provisions

Section 10-9-10.   The Public Service Authority may, through its board of directors, make and execute leases of gas, oil, and other minerals and mineral rights, excluding phosphate and lime and phosphatic deposits, over and upon the lands and properties owned by said authority; and the State Budget and Control Board Department of Health and Environmental Control and the forfeited land commissions of the several counties of this State may, with the approval of the Attorney General, make and execute such leases over and upon the lands and waters of the State and of the several counties under the ownership, management, or control of such Board the department and commissions respectively.

Section 10-9-20.   No such lease shall provide for a royalty of less than twelve and one-half per cent of production of oil and gas from the lease.

Section 10-9-30.   Nothing contained in this article shall estop the State from enacting proper laws for the conservation of the oil, gas and other mineral resources of the State and all leases and contracts made under authority of this article shall be subject to such laws; provided, that the State Budget and Control Board Department of Health and Environmental Control may negotiate for leases of oil, gas, and other mineral rights upon all of the lands and waters of the State, including offshore marginal and submerged lands.

Section 10-9-35.   In the event that the State of South Carolina is the recipient of revenues derived from offshore oil leases within the jurisdictional limits of the State such revenues shall be deposited with the State Treasurer in a special fund and shall be expended only by authorization of the General Assembly.


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Funds so accumulated shall be expended only for the following purposes:

(1)   to retire the bonded indebtedness incurred by South Carolina;

(2)   for capital improvement expenditures.

Section 10-9-40.   The authority conferred upon the Public Service Authority, the State Budget and Control Board Department of Health and Environmental Control, and the forfeited land commissions by this article shall be cumulative and in addition to the rights and powers heretofore vested by law in such authority, such State Budget and Control Board the Department of Health and Environmental Control, and such commissions, respectively.

  Article 3

Phosphate

Section 10-9-110.   The State Budget and Control Board Department of Health and Environmental Control shall be charged with the exclusive control and protection of the rights and interest of the State in the phosphate rocks and phosphatic deposits in the navigable streams and in the marshes thereof.

Section 10-9-120.   The Board department may inquire into and protect the interests of the State in and to any phosphatic deposits or mines, whether in the navigable waters of the State or in land marshes or other territory owned or claimed by other parties, and in the proceeds of any such mines and may take such action for, or in behalf of, the State in regard thereto as it may find necessary or deem proper.

Section 10-9-130.   The Board department may issue to any person who applies for a lease or license granting a general right to dig, mine, and remove phosphate rock and phosphatic deposits from all the navigable streams, waters, and marshes belonging to the State and also from such of the creeks, not navigable, lying therein as may contain phosphate rock and deposits belonging to the State and not previously granted. Such leases or licenses may be for such terms as may be determined by the Board department. The annual report of the Board department to the General Assembly shall include a list of all effective leases and licenses. The Board department may make a firm contract for the royalty to be paid the State which shall not be increased during the life of the license. Provided, that prior to the grant or issuance of any lease or license, the Board department shall cause to be published a notice of such application in a newspaper having general circulation in the county once a week for three successive weeks prior to the grant or issuance. Provided, further However, the lessee or licensee may shall not take possession if there be is an adverse claim and the burden of


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proving ownership in the State shall be placed upon the lessee or licensee.

Section 10-9-140.     In every case in which such an application shall be is made to the Board department for a license, the Board department may grant or refuse the license as it may deem considers best for the interest of the State and the proper management of the interests of the State in such those deposits.

Section 10-9-150.   As a condition precedent to the right to dig, mine, and remove the rocks and deposits granted by any such a license, each licensee shall enter into bond, with security, in the penal sum of five thousand dollars, conditioned for the making at the end of every month of true and faithful returns to the Comptroller General of the number of tons of phosphate rock and phosphatic deposits so dug or mined and the punctual payment to the State Treasurer of the royalty provided at the end of every quarter or three months. Such The bond and sureties thereon shall be are subject to the approval required by law for the bonds of state officers.

Section 10-9-160.   Whenever the Board department shall have reason to doubt the solvency of any surety whose name appears upon any bond executed for the purpose of securing the payment of the phosphate royalty by any person digging, mining and removing phosphate rock or phosphatic deposits in any of the territory, the property of the State, under any grant or license, the Board department shall forthwith notify the person giving such bond and the sureties thereon and require that one or more sureties, as the case may be, shall be added to the bond, such surety or sureties to be approved by the Board department.

Section 10-9-170.   The Board department, upon petition filed by any person who is surety on any such bond as aforesaid and who considers himself in danger of being injured by such suretyship, shall notify the person giving such bond to give a new bond with other sureties and upon failure of such person to do so within thirty days shall cause such person to suspend further operations until a new bond be given. But in In no case shall the sureties on the old bond be discharged from liability thereon until the new bond has been executed and approved, and such sureties shall not be discharged from any antecedent liability by reason of such suretyship.

Section 10-9-180.   The Board department is hereby vested with full and complete power and control over all mining in the phosphate territory belonging to this State and over all persons digging or mining phosphate rock or phosphatic deposit in the navigable streams and


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waters or in the marshes thereof, with full power and authority, subject to the provisions of Sections 10-9-130 and 10-9-190 to fix, regulate, raise, or reduce such royalty per ton as shall from time to time be paid to the State by such persons for all or any such phosphate rock dug, mined, removed, and shipped or otherwise sent to the market therefrom. But six Six months' notice shall be given all persons at such time digging or mining phosphate rock in such navigable streams, waters, or marshes before any increase shall be made in the rate of royalty theretofore existing.

Section 10-9-190.   Each person to whom a license shall be issued must, at the end of every month, make to the Comptroller General a true and lawful return of the phosphate rock and phosphatic deposits he may have dug or mined during such month and shall punctually pay to the State Treasurer, at the end of every quarter or three months, a royalty of five cents per ton upon each and every ton of the crude rock (not of the rock after it has been steamed or dried), the first quarter to commence to run on the first day of January in each year.

Section 10-9-200.   The State Budget and Control Board Department of Health and Environmental Control shall, within twenty days after the grant of any license as aforesaid, shall notify the Comptroller General of the issuing of such license, with the name of the person to whom issued, the time of the license, and the location for which it was issued.

Section 10-9-210.   Every person who shall dig, mine, or remove any phosphate rock or phosphatic deposit from the beds of the navigable streams, waters, and marshes of the State without license therefor previously granted by the State to such person shall be liable to a penalty of ten dollars for each and every ton of phosphate rock or phosphatic deposits so dug, mined, or removed, to be recovered by action at the suit of the State in any court of competent jurisdiction. One-half of such penalty shall be for the use of the State and the other half for the use of the informer.

Section 10-9-220.   It shall be unlawful for any person to purchase or receive any phosphate rock or phosphatic deposit dug, mined, or removed from the navigable streams, waters, or marshes of the State from any person not duly authorized by act of the General Assembly of this State or license of the Board department to dig, mine, or remove such phosphate rock or phosphatic deposit.

Section 10-9-230.   Any person violating Section 10-9-220 shall forfeit to the State the sum of ten dollars for each and every ton of phosphate rock or phosphatic deposit so purchased or received, to be recovered by action in any court of competent jurisdiction. One half of


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such forfeiture shall be for the use of the State and the other half for the use of the informer.

Section 10-9-240.   Should any person whosoever interfere with, obstruct, or molest or attempt to interfere with, obstruct, or molest the Board department or anyone by it authorized or licensed hereunder in the peaceable possession and occupation for mining purposes of any of the marshes, navigable streams, or waters of the State, then the Board department may, in the name and on behalf of the State, take such measures or proceedings as it may be advised are proper to enjoin and terminate any such molestation, interference, or obstruction and place the State, through its agents, the Board department or anyone under it authorized, in absolute and practical possession and occupation of such marshes, navigable streams, or waters.

Section 10-9-250.   Should any person attempt to mine or remove phosphate rock and phosphatic deposits from any of the marshes, navigable waters, or streams, including the Coosaw River phosphate territory, by and with any boat, vessel, marine dredge, or other appliances for such mining or removal, without the leave or license of the Board department thereto first had and obtained, all such boats, vessels, marine dredges, and other appliances are hereby declared forfeited to and property of the State, and the Attorney General, for and in behalf of the State, shall institute proceedings in any court of competent jurisdiction for the claim and delivery thereof, in the ordinary form of action for claim and delivery, in which action the title of the State shall be established by the proof of the commission of any such act of forfeiture by the person owning them, or his agents, in possession of such boats, vessels, marine dredges, or other appliances. In any such action the State shall not be called upon or required to give any bond or obligation such as is required by parties plaintiff in action for claim and delivery.

Section 10-9-260.   Any person wilfully interfering with, molesting, or obstructing or attempting to interfere with, molest, or obstruct the State or the State Budget and Control Board Department of Health and Environmental Control or anyone by it authorized or licensed in the peaceable possession and occupation of any of the marshes, navigable streams, or waters of the State, including the Coosaw River phosphate territory, or who shall dig or mine or attempt to dig or mine any of the phosphate rock or phosphatic deposits of this State without a license so to do issued by the Board department shall be punished for each offense by a fine of not less than one hundred dollars nor more than


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five hundred dollars or imprisonment for not less than one nor more than twelve months, or both, at the discretion of the court.

Section 10-9-270.   The Board department shall report annually to the General Assembly its actions and doings under this article during the year to the time of the meeting of the assembly, with an itemized account of its expenses for the year incurred in connection with its duties and powers under this article.

  Article 5

Geothermal Resources

Section 10-9-310.   For purposes of this article 'geothermal resources' mean means the natural heat of the earth at temperatures greater than forty degrees Celsius and includes:

(1)   the energy, including pressure, in whatever form present in, resulting from, created by, or that may be extracted from that natural heat.;

(2)   the material medium, including the brines, water, and steam naturally present, as well as any substance artificially introduced to serve as a heat transfer medium.;

(3)   all dissolved or entrained minerals and gases that may be obtained from the material medium but excluding hydrocarbon substances and helium.

Section 10-9-320.   The State Budget and Control Board (board) Department of Health and Environmental Control may lease development rights to geothermal resources underlying surface lands owned by the State. The board department must promulgate regulations regarding the method of lease acquisition, lease terms, and conditions due the State under lease operations. The South Carolina Department of Natural Resources is designated as the exclusive agent for the board department in selecting lands to be leased, administering the competitive bidding for leases, administering the leases, receiving and compiling comments from other state agencies concerning the desirability of leasing the state lands proposed for leasing and such other activities that pertain to geothermal resource leases as may be included herein as responsibilities of the board department.

Section 10-9-330.   Any lease of rights to drill for and use oil, natural gas, or minerals on public or private lands must not allow drilling for or use of geothermal energy by the lessee unless the instrument creating the lease specifically provides for such use."

O.     Section 10-11-50 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:


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"Section 10-11-50.   It shall be unlawful for anyone to park any vehicle on any of the property described in Section 10-11-40 and subsection (2) of Section 10-11-80 except in the spaces and manner now marked and designated or that may hereafter be marked and designated by the State Budget and Control Board Department of Administration, in cooperation with the Department of Transportation, or to block or impede traffic through the alleys and driveways."

P.     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."

Q.     Section 10-11-110 of the 1976 Code is amended to read:

"Section 10-11-110.   In connection with traffic and parking violations only, the watchmen and policemen referred to in Section 10-11-90, state highway patrolmen and policemen of the City of Columbia shall have the right to issue and use parking tickets of the type used by the City of Columbia, with such changes as are necessitated hereby, to be prepared and furnished by the Budget and Control Board Department of Administration, upon the issuance of which the procedures shall be followed as prevail in connection with the use of parking tickets by the City of Columbia. Nothing herein shall restrict the application and use of regular arrest warrants."

R.     Section 10-11-140 of the 1976 Code is amended to read:

"Section 10-11-140.   Nothing contained in this article shall be construed to abridge the authority of the State Budget and Control Board Department of Administration to grant permission to use the State House grounds for educational, electrical decorations, and similar purposes."

S.     Section 10-11-330 of the 1976 Code is amended to read:

"Section 10-11-330.   It shall be unlawful for any person or group of persons willfully wilfully and knowingly: (a) to enter or to remain within the capitol building unless such person is authorized by law or by rules of the House or Senate, or of the State Budget and Control Board or the Department of Administration regulations, respectively,


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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."

T.     1.     Section 11-7-10 of the 1976 Code is amended to read:

"Section 11-7-10.   The State Budget and Control Board Fiscal Accountability Authority shall select the State Auditor, who shall select necessary assistants in conformity with the appropriations for the office.

2.   Section 11-7-30 of the 1976 Code is amended to read:

"Section 11-7-30.     Reports of audit findings must be available to the Governor, Budget and Control Board State Fiscal Accountability Authority, General Assembly, and the general public. The State Auditor shall notify the Governor, the General Assembly, and the Budget and Control Board State Fiscal Accountability Authority immediately upon the issuance of an audit report."

U.   1.   Sections 11-9-610, 11-9-620, and 11-9-630 of the 1976 Code are amended to read:

"Section 11-9-610.   The State Budget and Control Board State Fiscal Accountability Authority shall receive and manage the incomes and revenues set apart and applied to the Sinking Fund of the State. The authority shall report annually on the financial status of the Sinking Fund to the General Assembly.

Section 11-9-620.   All monies arising from the redemption of lands, leases, and sales of property or otherwise coming to the State Budget and Control Board authority for the Sinking Fund, shall must be paid into the State Treasury and shall be kept on a separate account by the treasurer as a fund to be drawn upon the warrants of the Board department for the exclusive uses and purposes which have been or shall be declared in relation to the Sinking Fund.

Section 11-9-630.   The State Budget and Control Board authority 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


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shall not be construed to authorize the sale by the Board of any property held in trust for a specific purpose by the State or the property of the State in the phosphate rocks or phosphatic deposits in the beds of the navigable streams and waters and marshes of the State."

2.   Sections 11-9-665, 11-9-670, and 11-9-680 of the 1976 Code are amended to read:

"Section 11-9-665.   (A)   The Budget and Control Board authority on behalf of the State may acquire for use by the State real property as investments of any reserve or sinking fund of the State which is not pledged for payment of bonded indebtedness. Provided, however, such expenditures from the reserve or sinking fund shall not exceed two million dollars. Upon any such acquisition the State Budget and Control Board authority shall execute a note evidencing such investment upon such terms and conditions as may be appropriate in each instance. The note shall include a pledge of the board to apply on its payment all net income derived from the property so acquired; provided, that funding for any permanent project on the property shall provide for repayment of any outstanding balance to the appropriate reserve or sinking fund. Provided, further, that the purchase price of any property so acquired, including improvements existing or proposed, shall not be in excess of the actual value thereof as established by at least two appraisals satisfactory to the said board. Any property not put to permanent use by the State or one of its agencies or departments within six years shall be sold at public auction and the proceeds repaid to the appropriate reserve or sinking fund. Provided, further, that no property shall be acquired pursuant to the provisions of this section when the grantor has entered into a contract with any county, city or other political subdivision which created a tax obligation with respect to the property and such obligation has not been resolved to the satisfaction of the county, city or other political subdivision involved.

(B)   Provided, that prior to purchasing, or contracting to purchase any real property the Budget and Control Board authority shall engage an independent engineer to make borings so as to insure that the property is adaptable to the contemplated use.

Section 11-9-670.   Subject to the limitations set forth in Section 11-9-660, the State Budget and Control Board authority shall have full power to hold, purchase, sell, assign, transfer and dispose of any of the securities and investments in which the Sinking Fund shall have been invested.


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Section 11-9-680.   The State Budget and Control Board authority shall annually report to the General Assembly the condition of the Sinking Fund and all sales or other transactions connected therewith."

V.     Sections 11-35-3820 and 11-35-3840, of the 1976 Code are further amended to read:

Section 11-35-3820.   Except as provided in Section 11-35-1580 and Section 11-35-3830 and the regulations pursuant to them, the sale of all state-owned supplies, or personal property not in actual public use must be conducted and directed by the designated board office through the Division of General Services of the Department of Administration. The sales must be held at such places and in a manner as in the judgment of the designated board office Division of General Services is most advantageous to the State. Unless otherwise determined, sales must be by either public auction or competitive sealed bid to the highest bidder. Each governmental body shall inventory and report to the designated board office all surplus personal property not in actual public use held by that governmental body for sale. The designated board office division shall deposit the proceeds from the sales, less expense of the sales, in the state general fund or as otherwise directed by regulation. This policy and procedure applies to all governmental bodies unless exempt by law.

Section 11-35-3840.   The State Budget and Control Board board may license for public sale publications, including South Carolina Business Opportunities, materials pertaining to training programs, and information technology products that are developed during the normal course of the board's its activities. The items must be licensed at reasonable costs established in accordance with the cost of the items. All proceeds from the sale of the publications and materials must be placed in a revenue account and expended for the cost of providing the services."

W.     Section 11-35-5270 of the 1976 Code is amended to read:

"Section 11-35-5270.   A Small and Minority Business Assistance Office (SMBAO) shall The Division of Small and Minority Business Contracting and Certification must be established within the Department of Administration to assist the board Department of Administration and the Department of Revenue in carrying out the intent of this article. The responsibilities of the division shall include, but are not be limited to, the following:

(1)   Assist assisting the chief procurement officers and governmental bodies in developing policies and procedures which will facilitate awarding contracts to small and minority firms;


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(2)   Assist assisting the chief procurement officers in aiding small and minority-owned firms and community-based business in developing organizations to provide technical assistance to minority firms;

(3)   Assist assisting with the procurement and management training for small and minority firm owners;

(4)   Assist assisting in the identification of responsive small and minority firms;

(5)   Receive and process receiving and processing applications to be registered as a minority firm in accordance with Section 11-35-5230(B);

(6)   The SMBAO may revoke revoking the certification of any firm which that has been found to have engaged in any of the following:

(a)   fraud or deceit in obtaining the certification;

(b)   furnishing of substantially inaccurate or incomplete information concerning ownership or financial status;

(c)   failure to report changes which affect the requirements for certification;

(d)   gross negligence, incompetence, financial irresponsibility, or misconduct in the practice of his business; or

(e)   wilful violation of any provision of this article.

(7)   After a period of one year, the SMBAO division may reissue a certificate of eligibility provided acceptable evidence has been presented to the commission that the conditions which caused the revocation have been corrected."

X.   1.   Section 11-42-30(1) of the 1976 Code is amended to read:

"Section 11-42-30.   As used in this chapter:

(1)   'Board' means the governing board of the State Budget and Control Board Fiscal Accountability Authority."

2.   Section 11-42-40 of the 1976 Code is amended to read:

"Section 11-42-40.   (A) There is created the Division of Regional Development as a division within the State Budget and Control Board Fiscal Accountability Authority. The division shall report to the executive director of the board.

3.   Section 11-42-60 of the 1976 Code is amended to read:

"Section 11-42-60.   The division shall function as a division of the State Budget and Control Board Fiscal Affairs Authority and has all administrative and program authority necessary to fulfill its public mandate including, but not limited to, the following powers:


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(1)   to solicit, receive, and expend public and private funds from any relevant sources and entities in order to carry out the purposes of the division; and

(2)   to prescribe and charge fees for its services, which fees must be retained and expended for division purposes."

Y.     Section 11-53-20 of the 1976 Code is amended to read:

"Section 11-53-20.   It is mandated by the General Assembly that the SCEIS shall be implemented for all agencies, with the exception of lump sum agencies, the General Assembly or its respective branches or its committees, Legislative Council, and the Office of Legislative Printing and Information Technology Resources Services Agency. The South Carolina Enterprise Information System Oversight Committee, as appointed by the Comptroller General, shall provide oversight for the implementation and continued operations of the system. The Budget and Control Board Department of Administration is authorized to use any available existing technology resources to assist with funding of the initial implementation of the system. It is further the intent of the General Assembly to fund the central government costs related to the implementation of the system. Agencies are required to implement SCEIS at a cost and in accordance with a schedule developed and approved by the SCEIS Oversight Committee. Full implementation must be completed within five years. An agency's implementation cost shall be borne by that agency through existing appropriations, grants, and/or the State Treasurer's Master Lease Program and shall be for the implementation of the "back office" administrative functions that are common to all agencies in the areas of purchasing, finance, human resources, payroll, and budgeting. The Department of Administration must make an appropriation request for the implementation and operational costs for SCEIS, and the funding for those costs must be set out as a specific line item in the annual general appropriations act. Any issues arising with regard to project scope, implementation schedule, and associated costs shall be directed to the SCEIS Oversight Committee for resolution. In cooperation with the Comptroller General and the Budget and Control Board's Division of the State CIO Department of Administration, the South Carolina Enterprise Information System Oversight Committee is required to report by January 31, of the fiscal year to the Governor, the Chairman of the Senate Finance Committee, and the Chairman of the House Ways and Means Committee the status of the system's implementation and ongoing operations."


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Z.     1.   Section 13-7-10(1) of the 1976 Code is amended to read:

"(10)   'Decommissioning trust fund' means the trust fund established pursuant to a Trust Agreement dated March 4, 1981, among Chem-Nuclear Systems, Inc. (grantor), the South Carolina Budget and Control Board State Fiscal Accountability Authority (beneficiary as the successor in interest to the South Carolina Budget and Control Board), and the South Carolina State Treasurer (trustee), whose purpose is to assure adequate funding for decommissioning of the disposal site, or any successor fund with a similar purpose.

2.   Section 13-7-30 of the 1976 Code is amended to read:

"Section 13-7-30.   For purposes of this article, the State Budget and Control Board Fiscal Accountability Authority, hereinafter in this section referred to as the board, is designated as the agency of the State which shall have the following powers and duties that are in accord with its already established responsibilities for custody of state properties, and for the management of all state sinking funds, insurance, and analogous fiscal matters that are relevant to state properties:

(1)   expend state funds in order to acquire, develop, and operate land and facilities. This acquisition may be by lease, dedication, purchase, or other arrangements. However, the state's functions under the authority of this section are limited to the specific purposes of this article;

(2)   lease, sublease, or sell real and personal properties to public or private bodies;

(3)   assure the maintenance of insurance coverage by state licensees, lessees, or sublessees as will in the opinion of the board protect the citizens of the State against nuclear incident that may occur on state-controlled atomic energy facilities;

(4)   assume responsibility for extended custody and maintenance of radioactive materials held for custodial purposes at any publicly or privately operated facility located within the State, in the event the parties operating these facilities abandon their responsibility, or when the license for the facility is ultimately transferred to an agency of the State, and whenever the federal government or any agency of the federal government has not assumed the responsibility.

In order to finance such extended custody and maintenance as the board may undertake, the board may collect fees from private or public parties holding radioactive materials for custodial purposes. These fees must be sufficient in each individual case to defray the estimated cost of the board's custodial management activities for that individual case. The fees collected for such custodial management activities shall also


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be sufficient to provide additional funds for the purchase of insurance which shall be purchased for the protection of the State and the general public for the period such radioactive material considering its isotope and curie content together with other factors may present a possible danger to the general public in the event of migration or dispersal of such radioactivity. All such fees, when received by the board, must be transmitted to the State Treasurer. The Treasurer must place the money in a special account, in the nature of a revolving trust fund, which may be designated 'extended care maintenance fund', to be disbursed on authorization of the board. Monies in the extended care maintenance funds must be invested by the board in the manner as other state monies. However, any interest accruing as a result of investment must accrue to this extended care maintenance fund. Except as authorized in Section 48-46-40(B)(7)(b) and (D)(2), the extended care maintenance fund must be used exclusively for custodial, surveillance, and maintenance costs during the period of institutional control and during any post-closure and observation period specified by the Department of Health and Environmental Control, and for activities associated with closure of the site. Funds from the extended care maintenance fund shall not be used for site closure activities or for custodial, surveillance, and maintenance performed during the post-closure observation period until all funds in the decommissioning trust account are exhausted.

(5)   Enter into an agreement with the federal government or any of its authorized agencies to assume extended maintenance of lands donated, leased, or purchased from the federal government or any of its authorized agencies and used for development of atomic energy resources or as custodial site for radioactive material."

3.   Sections 13-7-810, 13-7-830, and 13-7-860 of the 1976 Code are amended to read:

"Section 13-7-810.   There is hereby established a Governor's Nuclear Advisory Council in the Department of Administration, which shall be responsible to the Director of the Department of Administration and report to the Governor.

Section 13-7-830.   The recommendations described in Section 13-7-620 shall be made available to the General Assembly, and the Governor, and the Budget and Control Board.

Section 13-7-860.   Staff support for the council shall be provided by the State Energy Office Department of Administration."

AA.   Section 16-3-1620(A), (B), and (C) of the 1976 Code is amended to read:


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"(A)   The Crime Victims' Ombudsman of the Office of the Governor is created in the Department of Administration. The Crime Victims' Ombudsman is appointed by the Governor with the advice and consent of the Senate and serves at the pleasure of the Governor.

(B)   The Crime Victims' Ombudsman of the Office of the Governor Department of Administration shall:

(1)   refer crime victims to the appropriate element of the criminal and juvenile justice systems or victim assistance programs, or both, when services are requested by crime victims or are necessary as determined by the ombudsman;

(2)   act as a liaison between elements of the criminal and juvenile justice systems, victim assistance programs, and victims when the need for liaison services is recognized by the ombudsman; and

(3)   review and attempt to resolve complaints against elements of the criminal and juvenile justice systems or victim assistance programs, or both, made to the ombudsman by victims of criminal activity within the state's jurisdiction.

(C)   There is created within the Crime Victims' Ombudsman Office of the Office of the Governor Department of Administration, the Office of Victim Services Education and Certification which shall:

(1)   provide oversight of training, education, and certification of victim assistance programs;

(2)   with approval of the Victim Services Coordinating Council, promulgate training standards and requirements;

(3)   approve training curricula for credit hours toward certification;

(4)   provide victim service provider certification; and

(5)   maintain records of certified victim service providers."

BB.   Section 16-3-1680 of the 1976 Code as added by Act 271 of 2008 is amended to read:

"Section 16-3-1680.   The Crime Victims' Ombudsman of the Office of the Governor through the Department of Administration may promulgate those regulations necessary to assist it in performing its required duties as provided by this chapter."

CC.   1.   Section 25-11-10 of the 1976 Code amended to read:

"Section 25-11-10.   A Division of Veterans' Affairs in the Office of the is hereby created in the Department of Administration for the purpose of assisting ex-servicemen in securing the benefits to which they are entitled under the provisions of federal legislation and under the terms of insurance policies issued by the federal government for their benefit. This division shall be under the direct supervision of a


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panel consisting of the Governor as chairman, the Attorney General for the purpose of giving legal advice, and the Adjutant and Inspector General."

2.   Section 25-11-80(C)(3) of the 1976 Code is amended to read:

"(3)   the Budget and Control Board Department of Administration."

3.   Section 25-11-90(E) of the 1976 Code is amended to read:

"(E)   The preparation and distribution of the roster is subject to the availability of funds as appropriated by the General Assembly to the Governor's Office Department of Administration, Division of Veterans Veterans' Affairs for this purpose. These rosters and their distribution must be maintained and updated based on workloads and availability of funds."

4.   Section 25-11-310(2) of the 1976 Code is amended to read:

"(2)   'Division' means the Division of Veterans Veterans' Affairs in the Office of the Governor Department of Administration."

DD.   Section 44-53-530(a) and (b) of the 1976 Code, as last amended by Act 345 of 2006, is further amended to read:

"(a)   Forfeiture of property defined in Section 44-53-520 must be accomplished by petition of the Attorney General or his designee or the circuit solicitor or his designee to the court of common pleas for the jurisdiction where the items were seized. The petition must be submitted to the court within a reasonable time period following seizure and shall set forth the facts upon which the seizure was made. The petition shall describe the property and include the names of all owners of record and lienholders of record. The petition shall identify any other persons known to the petitioner to have interests in the property. Petitions for the forfeiture of conveyances shall also include: the make, model, and year of the conveyance, the person in whose name the conveyance is registered, and the person who holds the title to the conveyance. The petition shall set forth the type and quantity of the controlled substance involved. A copy of the petition must be sent to each law enforcement agency which has notified the petitioner of its involvement in effecting the seizure. Notice of hearing or rule to show cause must be directed to all persons with interests in the property listed in the petition, including law enforcement agencies which have notified the petitioner of their involvement in effecting the seizure. Owners of record and lienholders of record may be served by certified mail, to the last known address as appears in the records of the governmental agency which records the title or lien.

The judge shall determine whether the property is subject to forfeiture and order the forfeiture confirmed. If the judge finds a


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forfeiture, he shall then determine the lienholder's interest as provided in this article. The judge shall determine whether any property must be returned to a law enforcement agency pursuant to Section 44-53-582.

If there is a dispute as to the division allocation of the proceeds of forfeited property among participating law enforcement agencies, this issue must be determined by the judge. The proceeds from a sale of property, conveyances, and equipment must be disposed of pursuant to subsection (e) of this section.

All property, conveyances, and equipment which will not be reduced to proceeds may be transferred to the law enforcement agency or agencies or to the prosecution agency. Upon agreement of the law enforcement agency or agencies and the prosecution agency, conveyances and equipment may be transferred to any other appropriate agency. Property transferred must not be used to supplant operating funds within the current or future budgets. If the property seized and forfeited is an aircraft or watercraft and is transferred to a state law enforcement agency or other state agency pursuant to the provisions of this subsection, its use and retainage by that agency shall be at the discretion and approval of the Budget and Control Board Department of Administration.

If a defendant or his attorney sends written notice to the petitioner or the seizing agency of his interest in the subject property, service may be made by mailing a copy of the petition to the address provided and service may not be made by publication. In addition, service by publication may not be used for a person incarcerated in a South Carolina Department of Corrections facility, a county detention facility, or other facility where inmates are housed for the county where the seizing agency is located. The seizing agency shall check the appropriate institutions after receiving an affidavit of nonservice before attempting service by publication.

(b)   If the property is seized by a state law enforcement agency and is not transferred by the court to the seizing agency, the judge shall order it transferred to the Division of General Services of the Department of Administration for sale. Proceeds may be used by the division for payment of all proper expenses of the proceedings for the forfeiture and sale of the property, including the expenses of seizure, maintenance, and custody, and other costs incurred by the implementation of this section. The net proceeds from any sale must be remitted to the State Treasurer as provided in subsection (g) of this section. The Division of General Services of the Department of


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Administration may authorize payment of like expenses in cases where monies, negotiable instruments, or securities are seized and forfeited."

EE.   Section 44-96-140 of the 1976 Code is amended to read:

"Section 44-96-140.   (A)   Not later than twelve months after the date on which the department submits the state solid waste management plan to the Governor and to the General Assembly, the General Assembly, the Governor's Office of the Governor, the Judiciary, each state agency, and each state-supported institution of higher education shall:

(1)   establish a source separation and recycling program in cooperation with the department and the Division of General Services of the State Budget and Control Board Department of Administration for the collection of selected recyclable materials generated in state offices throughout the State including, but not limited to, high-grade office paper, corrugated paper, aluminum, glass, tires, composting materials, plastics, batteries, and used oil;

(2)   provide procedures for collecting and storing recyclable materials, containers for storing materials, and contractual or other arrangements with collectors or buyers of the recyclable materials, or both;

(3)   evaluate the amount of waste paper material recycled and make all necessary modifications to the recycling program to ensure that all waste paper materials are recycled to the maximum extent feasible; and

(4)   establish and implement, in cooperation with the department and the Division of General Services of the Department of Administration, a solid waste reduction program for materials used in the course of agency operations. The program shall be designed and implemented to achieve the maximum feasible reduction of solid waste generated as a result of agency operations.

(B)   Not later than September fifteen of each year, each state agency and each state-supported institution of higher learning shall submit to the department a report detailing its source separation and recycling program and a review of all goods and products purchased during the previous fiscal year by those agencies and institutions containing recycled materials using the content specifications established by the Office of Materials Management Division of General Services, Department of Administration.

(C)   By November first of each year the department shall submit a report to the Governor and to the General Assembly reviewing all goods and products purchased by the State and determining what


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percentage of state purchases contain recycled materials using content specifications established by the Office of Materials Management, Division of General Services, Department of Administration. The report also must review existing procurement regulations for the purchase of products and materials and must identify any portions of such regulations that discriminate against products and materials with recycled content and products and materials which are recyclable.

(D)   Not later than one year after this chapter is effective, the Division of General Services, Department of Administration shall amend the procurement regulations to eliminate the portions of the regulations identified in its report as discriminating against products and materials with recycled content and products and materials which are recyclable.

(E)   Not later than one year after the effective date of the amendments to the procurement regulations, the General Assembly, the Governor's Office of the Governor, the Judiciary, all state agencies, all political subdivisions using state funds to procure items, and all persons contracting with such agency or political subdivision where such persons procure items with state funds shall procure products and materials with recycled content and products and materials which are recyclable where practicable, as determined by the Office of Materials Management, Division of General Services, Department of Administration. The list of recycled content specifications must be updated annually. It is the goal of the General Assembly for state and local governmental agencies to reflect a twenty-five percent goal in their procurement policies. The decision not to procure such items shall be based on a determination that such procurement items:

(1)   are not available within a reasonable period of time;

(2)   fail to meet the performance standards set forth in the applicable specifications; or

(3)   are only available at a price that exceeds by more than seven and one- half percent the price of alternative items.

(F)   Not later than six months after this chapter is effective, and annually thereafter, the Department of Transportation shall submit a report to the Governor and to the General Assembly on the use of:

(1)   compost as a substitute for regular soil amendment products in all highway projects;

(2)   solid waste including, but not limited to, ground rubber from tires and fly ash or mixtures of them from coal-fired electrical facilities in road surfacing of subbase materials;


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(3)   solid waste including, but not limited to, glass aggregate, plastic, and fly ash in asphalt or concrete; and

(4)   recycled mixed-plastic materials for guardrail posts, right-of-way fence posts, and sign supports."

FF.     Section 48-46-30(4) and (5) of the 1976 Code are amended to read:

"(4)   'Board' means the South Carolina Budget and Control Board or its designated official.

(5)(4)   'Decommissioning trust fund' means the trust fund established pursuant to a Trust Agreement dated March 4, 1981, among Chem-Nuclear Systems, Inc. (grantor), the South Carolina Budget and Control Board State Fiscal Accountability Authority (beneficiary as the successor in interest to the South Carolina Budget and Control Board), and the South Carolina State Treasurer (trustee), whose purpose is to assure adequate funding for decommissioning of the disposal site, or any successor fund with a similar purpose.

(5)   'Office' means the Office of Regulatory Staff."

GG.   Section 48-46-40 of the 1976 Code is amended to read:

"Section 48-46-40.   (A)(1)   The board office shall approve disposal rates for low-level radioactive waste disposed at any regional disposal facility located within the State. The approval of disposal rates pursuant to this chapter is neither a regulation nor the promulgation of a regulation as those terms are specially used in Title 1, Chapter 23.

(2)   The board office shall adopt a maximum uniform rate schedule for regional generators containing disposal rates that include the administrative surcharges specified in Section 48-46-60(B) and surcharges for the extended custody and maintenance of the facility pursuant to Section 13-7-30(4) and that do not exceed the approximate disposal rates, excluding any access fees and including a specification of the methodology for calculating fees for large components, generally applicable to regional generators on September 7, 1999. Any disposal rates contained in a valid written agreement that were applicable to a regional generator on September 7, 1999, that differ from rates in the maximum uniform rate schedule will continue to be honored through the term of such agreement. The maximum uniform rate schedule approved under this section becomes effective immediately upon South Carolina's membership in the Atlantic Compact. The maximum uniform rate schedule shall be the rate schedule applicable to regional waste whenever it is not superseded by an adjusted rate approved by the board office pursuant to paragraph (3) of this subsection or by


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special disposal rates approved pursuant to paragraphs (5) or (6)(e) of this subsection.

(3)   The board office may at any time of its own initiative, at the request of a site operator, or at the request of the compact commission, adjust the disposal rate or the relative proportions of the individual components that constitute the overall rate schedule. Except as adjusted for inflation in subsection (4), rates adjusted in accordance with this section, that include the administrative surcharges specified in Section 48-46-60(B) and surcharges for the extended custody and maintenance of the facility pursuant to Section 13-7-30(4), may not exceed initial disposal rates set by the board department pursuant to subsection (2).

(4)   In March of each year the board office shall adjust the rate schedule based on the most recent changes in the most nearly applicable Producer Price Index published by the Bureau of Labor Statistics as chosen by the board office or a successor index.

(5)   In consultation with the site operator, the board office or its designee, on a case-by-case basis, may approve special disposal rates for regional waste that differ from the disposal rate schedule for regional generators set by the board office pursuant to subsections (2) and (3). Requests by the site operator for such approval shall be in writing to the board office. In approving such special rates, the board office or its designee, shall consider available disposal capacity, demand for disposal capacity, the characteristics of the waste, the potential for generating revenue for the State, or other relevant factors; provided, however, that the board office shall not approve any special rate for an entity owned by or affiliated with the site operator. Special disposal rates approved by the board office under this subsection shall be in writing and shall be kept confidential as proprietary business information for one year from the date when the bid or the request for proposal containing the special rate is accepted by the regional generator; provided, however, that such special rates when accepted by a regional generator shall be disclosed to the compact commission and to all other regional generators, which shall, to the extent permitted by applicable law, keep them confidential as proprietary business information for one year from the date when the bid or request for proposal containing this special rate is accepted by the regional generator. Within one business day of a special disposal rate's acceptance, the site operator shall notify the board office, the compact commission, and the regional generators of each special rate that has been accepted by a regional generator, and the board office, the


Printed Page 4005 . . . . . Tuesday, May 28, 2013

compact commission, and regional generators may communicate with each other about such special rates. If any special rate approved by the board office for a regional generator is lower than a disposal rate approved by the board office for regional generators pursuant to subsections (2) and (3) for waste that is generally similar in characteristics and volume, the disposal rate for all regional generators shall be revised to equal the special rate for the regional generator. Regional generators may enter into contracts for waste disposal at such special rates and on comparable terms for a period of not less than six months. An officer of the site operator shall certify in writing to the board office and the compact commission each month that no regional generator's disposal rate exceeds any other regional generator's special rate for waste that is generally similar in characteristics and volume, and such certification shall be subject to periodic audit by the board office and the compact commission.

(6)(a)   To the extent authorized by the compact commission, the board office on behalf of the State of South Carolina may enter into agreements with any person in the United States or its territories or any interstate compact, state, U.S. territory, or U.S. Department of Defense military installation abroad for the importation of waste into the region for purposes of disposal at a regional disposal facility within South Carolina. No waste from outside the Atlantic Compact region may be disposed at a regional disposal facility within South Carolina, except to the extent that the board office is authorized by the compact commission to enter into agreements for importation of waste.

The board office shall authorize the importation of nonregional waste into the region for purposes of disposal at the regional disposal facility in South Carolina so long as nonregional waste would not result in the facility accepting more than the following total volumes of all waste:

(i)     160,000 cubic feet in fiscal year 2001;

(ii)   80,000 cubic feet in fiscal year 2002;

(iii)   70,000 cubic feet in fiscal year 2003;

(iv)   60,000 cubic feet in fiscal year 2004;

(v)   50,000 cubic feet in fiscal year 2005;

(vi)   45,000 cubic feet in fiscal year 2006;

(vii)   40,000 cubic feet in fiscal year 2007;

(viii)   35,000 cubic feet in fiscal year 2008.

After fiscal year 2008, the board office shall not authorize the importation of nonregional waste for purposes of disposal.

(b)   The board office may approve disposal rates applicable to nonregional generators. In approving disposal rates applicable to


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nonregional generators, the board office may consider available disposal capacity, demand for disposal capacity, the characteristics of the waste, the potential for generating revenue for the State, and other relevant factors.

(c)   Absent action by the board office under subsection (b) above to establish disposal rates for nonregional generators, rates applicable to these generators must be equal to those contained in the maximum uniform rate schedule approved by the board office pursuant to paragraph (2) or (3) of this subsection for regional generators unless these rates are superseded by special disposal rates approved by the board office pursuant to paragraph (6)(e) of this subsection.

(d)   Regional generators shall not pay disposal rates that are higher than disposal rates for nonregional generators in any fiscal quarter.

(e)   In consultation with the site operator, the board office or its designee, on a case-by-case basis, may approve special disposal rates for nonregional waste that differ from the disposal rate schedule for nonregional generators set by the board office. Requests by the site operator for such approval shall be in writing to the board office. In approving such special rates, the board office or its designee shall consider available disposal capacity, demand for disposal capacity, the characteristics of the waste, the potential for generating revenue for the State, and other relevant factors; provided, however, that the board office shall not approve any special rate for an entity owned by or affiliated with the site operator. Special disposal rates approved by the board office under this subsection shall be in writing and shall be kept confidential as proprietary business information for one year from the date when the bid or request for proposal containing the special rate is accepted by the nonregional generator; provided, however, that such special rates when accepted by a nonregional generator shall be disclosed to the compact commission and to all regional generators, which shall, to the extent permitted by applicable law, keep them confidential as proprietary business information for one year from the date when the bid or request for proposal containing the special rate is accepted by the nonregional generator. Within one business day of a special disposal rate's acceptance, the site operator shall notify the board office, the compact commission, and the regional generators in writing of each special rate that has been accepted by a nonregional generator, and the board office, the compact commission, and regional generators may communicate with each other about such special rates. If any special rate approved by the board office for a nonregional


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generator is lower than a disposal rate approved by the board office for regional generators for waste that is generally similar in characteristics and volume, the disposal rate for all regional generators shall be revised to equal the special rate for the nonregional generator. Regional generators may enter into contracts for waste disposal at such special rate and on comparable terms for a period of not less than six months. An officer of the site operator shall certify in writing to the board office and the compact commission each month that no regional generator disposal rate exceeds any nonregional generator's special rate for waste that is generally similar in characteristics and volume, and such certification shall be subject to periodic audit by the board office and the compact commission.

(B)(1)   Effective upon the implementation of initial disposal rates by the board office under Section 48-46-40(A), the PSC is authorized and directed to identify allowable costs for operating a regional low-level radioactive waste disposal facility in South Carolina.

(2) In identifying the allowable costs for operating a regional disposal facility, the PSC shall:

(a)   prescribe a system of accounts, using generally accepted accounting principles, for disposal site operators, using as a starting point the existing system used by site operators;

(b)   assess penalties against disposal site operators if the PSC determines that they have failed to comply with regulations pursuant to this section; and

(c)   require periodic reports from site operators that provide information and data to the PSC and parties to these proceedings. The Office of Regulatory Staff shall obtain and audit the books and records of the site operators associated with disposal operations as determined applicable by the PSC.

(3)   Allowable costs include the costs of those activities necessary for:

(a)   the receipt of waste;

(b)   the construction of disposal trenches, vaults, and overpacks;

(c)   construction and maintenance of necessary physical facilities;

(d)   the purchase or amortization of necessary equipment;

(e)   purchase of supplies that are consumed in support of waste disposal activities;

(f)   accounting and billing for waste disposal;

(g)   creating and maintaining records related to disposed waste;


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(h)   the administrative costs directly associated with disposal operations including, but not limited to, salaries, wages, and employee benefits;

(i)     site surveillance and maintenance required by the State of South Carolina, other than site surveillance and maintenance costs covered by the balance of funds in the decommissioning trust fund or the extended care maintenance fund;

(j)     compliance with the license, lease, and regulatory requirements of all jurisdictional agencies;

(k)   administrative costs associated with collecting the surcharges provided for in subsections (B) and (C) of Section 48-46-60;

(l)     taxes other than income taxes;

(m)   licensing and permitting fees; and

(n)   any other costs directly associated with disposal operations determined by the PSC to be allowable.

Allowable costs do not include the costs of activities associated with lobbying and public relations, clean-up and remediation activities caused by errors or accidents in violation of laws, regulations, or violations of the facility operating license or permits, activities of the site operator not directly in support of waste disposal, and other costs determined by the PSC to be unallowable.

(4)   Within ninety days following the end of a fiscal year, a site operator may file an application with the PSC to adjust the level of an allowable cost under subsection (3), or to allow a cost not previously designated an allowable cost. A copy of the application must be provided to the Office of Regulatory Staff. The PSC shall process such application in accordance with its procedures. If such application is approved by the PSC, the PSC shall authorize the site operator to adjust allowable costs for the current fiscal year so as to compensate the site operator for revenues lost during the previous fiscal year.

(5)   A private operator of a regional disposal facility in South Carolina is authorized to charge an operating margin of twenty-nine percent. The operating margin for a given period must be determined by multiplying twenty-nine percent by the total amount of allowable costs as determined in this subsection, excluding allowable costs for taxes and licensing and permitting fees paid to governmental entities.

(6)   The site operator shall prepare and file with the PSC a Least Cost Operating Plan. The plan must be filed within forty-five days of enactment of this chapter and must be revised annually. The plan shall include information concerning anticipated operations over the next ten years and shall evaluate all options for future staffing and operation of


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the site to ensure least cost operation, including information related to the possible interim suspension of operations in accordance with subsection (B)(7). A copy of the plan must be provided to the Office of Regulatory Staff.

(7)(a)   If the board office, upon the advice of the compact commission or the site operator, concludes based on information provided to the board office, that the volume of waste to be disposed during a forthcoming period of time does not appear sufficient to generate receipts that will be adequate to reimburse the site operator for its costs of operating the facility and its operating margin, then the board office shall direct the site operator to propose to the compact commission plans including, but not necessarily limited to, a proposal for discontinuing acceptance of waste until such time as there is sufficient waste to cover the site operator's operating costs and operating margin. Any proposal to suspend operations must detail plans of the site operator to minimize its costs during the suspension of operations. Any such proposal to suspend operations must be approved by the Department of Health and Environmental Control with respect to safety and environmental protection.

(b)   Allowable costs applicable to any period of suspended operations must be approved by the PSC according to procedures similar to those provided herein for allowable operating costs. During any such suspension of operations, the site operator must be reimbursed by the board office from the extended care maintenance fund for its allowable costs and its operating margin. During the suspension funding to reimburse the board office, the PSC, and the State Treasurer under Section 48-46-60(B) and funding of the compact commission under Section 48-46-60(C) must also be allocated from the extended care maintenance fund as approved by the board office based on revised budgets submitted by the PSC, State Treasurer, and the compact commission.

(c)   Notwithstanding any disbursements from the extended care maintenance fund in accordance with any provision of this act, the board office shall continue to ensure, in accordance with Section 13-7-30, that the fund remains adequate to defray the costs for future maintenance costs or custodial and maintenance obligations of the site and other obligations imposed on the fund by this chapter.

(d)   The PSC may promulgate regulations and policies necessary to execute the provisions of this section.

(8)   The PSC may use any standard, formula, method, or theory of valuation reasonably calculated to arrive at the objective of identifying


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allowable costs associated with waste disposal. The PSC may consider standards, precedents, findings, and decisions in other jurisdictions that regulate allowable costs for radioactive waste disposal.

(9)   In all proceedings held pursuant to this section, the board office shall participate as a party representing the interests of the State of South Carolina, and the compact commission may participate as a party representing the interests of the compact states. The Executive Director of the Office of Regulatory Staff and the Attorney General of the State of South Carolina shall be parties to any such proceeding. Representatives from the Department of Health and Environmental Control shall participate in proceedings where necessary to determine or define the activities that a site operator must conduct in order to comply with the regulations and license conditions imposed by the department. Other parties may participate in the PSC's proceedings upon satisfaction of standing requirements and compliance with the PSC's procedures. Any site operator submitting records and information to the PSC may request that the PSC treat such records and information as confidential and not subject to disclosure in accordance with the PSC's procedures.

(10)   In all respects in which the PSC has power and authority under this chapter, it shall conduct its proceedings under the South Carolina Administrative Procedures Act and the PSC's rules and regulations. The PSC is authorized to compel attendance and testimony of a site operator's directors, officers, agents, or employees.

(11)   At any time the compact commission, the board office, or any generator subject to payment of rates set pursuant to this chapter may file a petition against a site operator alleging that allowable costs identified pursuant to this chapter are not in conformity with the directives of this chapter or the directives of the PSC or that the site operator is otherwise not acting in conformity with the requirements of this chapter or directives of the PSC. Upon filing of the petition, the PSC shall cause a copy of the petition to be served upon the site operator. The petitioning party has the burden of proving that allowable costs or the actions of the site operator do not conform. The hearing shall conform to the rules of practice and procedure of the PSC for other cases.

(12)   The PSC shall encourage alternate forms of dispute resolution including, but not limited to, mediation or arbitration to resolve disputes between a site operator and any other person regarding matters covered by this chapter.


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(C)   The operator of a regional disposal facility shall submit to the South Carolina Department of Revenue, the PSC, and the Office of Regulatory Staff, and the board office within thirty days following the end of each quarter a report detailing actual revenues received in the previous fiscal quarter and allowable costs incurred for operation of the disposal facility.

(D)(1)   Within 30 thirty days following the end of the fiscal year the operator of a regional disposal facility shall submit a payment made payable to the South Carolina Department of Revenue in an amount that is equal to the total revenues received for waste disposed in that fiscal year (with interest accrued on cash flows in accordance with instructions from the State Treasurer) minus allowable costs, operating margin, and any payments already made from such revenues pursuant to Section 48-46-60(B) and (C) for reimbursement of administrative costs to state agencies and the compact commission. The Department of Revenue shall deposit the payment with the State Treasurer.

(2)   If in any fiscal year total revenues do not cover allowable costs plus the operating margin, the board office must reimburse the site operator its allowable costs and operating margin from the extended care maintenance fund within thirty days after the end of the fiscal year. The board office shall as soon as practicable authorize a surcharge on waste disposed in an amount that will fully compensate the fund for the reimbursement to the site operator. In the event that total revenues for a fiscal year do not cover allowable costs plus the operating margin, or quarterly reports submitted pursuant to subsection (C) indicate that such annual revenue may be insufficient, the board office shall consult with the compact commission and the site operator as early as practicable on whether the provisions of Section 48-46-40(B)(7) pertaining to suspension of operations during periods of insufficient revenues should be invoked.

(E)   Revenues received pursuant to item (1) of subsection (D) must be allocated as follows:

(1)   The South Carolina State Treasurer shall distribute the first two million dollars received for waste disposed during a fiscal year to the County Treasurer of Barnwell County for distribution to each of the parties to and beneficiaries of the order of the United States District Court in C.A. No. 1:90-2912-6 on the same schedule of allocation as is established within that order for the distribution of 'payments in lieu of taxes' paid by the United States Department of Energy.

(2)   All revenues in excess of two million dollars received from waste disposed during the previous fiscal year must be deposited in a


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fund called the 'Nuclear Waste Disposal Receipts Distribution Fund'. Any South Carolina waste generator whose disposal fees contributed to the fund during the previous fiscal year may submit a request for a rebate of 33.33 percent of the funds paid by the generator during the previous fiscal year for disposal of waste at a regional disposal facility. These requests along with invoices or other supporting material must be submitted in writing to the State Treasurer within fifteen days of the end of the fiscal year. For this purpose disposal fees paid by the generator must exclude any fees paid pursuant to Section 48-46-60(C) for compact administration and fees paid pursuant to Section 48-46-60(B) for reimbursement of the PSC, the Office of Regulatory Staff, the State Treasurer, and the board office for administrative expenses under this chapter. Upon validation of the request and supporting documentation by the State Treasurer, the State Treasurer shall issue a rebate of the applicable funds to qualified waste generators within sixty days of the receipt of the request. If funds in the Nuclear Waste Disposal Receipts Distribution Fund are insufficient to provide a rebate of 33.33 percent to each generator, then each generator's rebate must be reduced in proportion to the amount of funds in the account for the applicable fiscal year.

(3)   All funds deposited in the Nuclear Waste Disposal Receipts Distribution Fund for waste disposed for each fiscal year, less the amount needed to provide generators rebates pursuant to item (2), shall be deposited by the State Treasurer in the 'Children's Education Endowment Fund'. Thirty percent of these monies must be allocated to Higher Education Scholarship Grants and used as provided in Section 59-143-30, and seventy percent of these monies must be allocated to Public School Facility Assistance and used as provided in Chapter 144, of Title 59.

(F)   Effective beginning fiscal year 2001-2002, there is appropriated annually from the general fund of the State to the Higher Education Scholarship Grants share of the Children's Education Endowment whatever amount is necessary to credit to the Higher Education Scholarship Grants share an amount not less than the amount credited to that portion of the endowment in fiscal year 1999-2000. Revenues credited to the endowment pursuant to this subsection, for purposes of Section 59-143-10, are deemed to be received by the endowment pursuant to the former provisions of Section 48-48-140(C)."

HH.   Section 48-46-50 of the 1976 Code is amended to read:

"Section 48-46-50.   (A)   The Governor shall appoint two commissioners to the Atlantic Compact Commission and may appoint


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up to two alternate commissioners. These alternate commissioners may participate in meetings of the compact commission in lieu of and upon the request of a South Carolina commissioner. Technical representatives from the Department of Health and Environmental Control, the board office, the PSC, and other state agencies may participate in relevant portions of meetings of the compact commission upon the request of a commissioner, alternate commissioner, or staff of the compact commission, or as called for in the compact commission bylaws.

(B)   South Carolina commissioners or alternate commissioners to the compact commission may not vote affirmatively on any motion to admit new member states to the compact unless that state volunteers to host a regional disposal facility.

(C)   Compact commissioners or alternate commissioners to the Atlantic Compact Commission may not vote to approve a regional management plan or any other plan or policy that allows for acceptance at the Barnwell regional disposal facility of more than a total of 800,000 cubic feet of waste from Connecticut and New Jersey.

(D)   South Carolina's commissioners or alternate commissioners to the compact commission shall cast any applicable votes on the compact commission in a manner that authorizes the importation of waste into the region for purposes of disposal at a regional disposal facility in South Carolina so long as importation would not result in the facility accepting more than the following total volumes of all waste:

(1)   160,000 cubic feet in fiscal year 2001;

(2)   80,000 cubic feet in fiscal year 2002;

(3)   70,000 cubic feet in fiscal year 2003;

(4)   60,000 cubic feet in fiscal year 2004;

(5)   50,000 cubic feet in fiscal year 2005;

(6)   45,000 cubic feet in fiscal year 2006;

(7)   40,000 cubic feet in fiscal year 2007;

(8)   35,000 cubic feet in fiscal year 2008.

South Carolina's commissioners or alternate commissioners shall not vote to approve the importation of waste into the region for purposes of disposal in any fiscal year after 2008."

II.   Section 48-46-60 of the 1976 Code is amended to read:

"Section 48-46-60.   (A)   The Governor and the board office are authorized to take such actions as are necessary to join the Atlantic Compact including, but not limited to, petitioning the Compact Commission for membership and participating in any and all rulemaking processes. South Carolina's membership in the Atlantic


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Compact pursuant to this chapter is effective July 1, 2000, if by that date the Governor certifies to the General Assembly that the Compact Commission has taken each of the actions specified below. If the Compact Commission by July 1, 2000, has not taken each of the actions specified below, then South Carolina's membership shall become effective as soon thereafter as the Governor certifies that the Atlantic Compact Commission has taken these actions:

(1)   adopted a binding regulation or policy in accordance with Article VII(e) of the compact establishing conditions for admission of a party state that are consistent with this act and ordered that South Carolina be declared eligible to be a party state consistent with those conditions;

(2)   adopted a binding regulation or policy in accordance with Article IV(i)(11) of the Atlantic Compact authorizing a host state to enter into agreements on behalf of the compact and consistent with criteria established by the compact commission and consistent with the provisions of Section 48-46-40(A)(6)(a) and Section 48-46-50(D) with any person for the importation of waste into the region for purposes of disposal, to the extent that these agreements do not preclude the disposal facility from accepting all regional waste that can reasonably be projected to require disposal at the regional disposal facility consistent with subitem (5)(b) of this section;

(3)   adopted a binding regulation or policy in accordance with Article IV(i)(12) of the Atlantic Compact authorizing each regional generator, at the generator's discretion, to ship waste to disposal facilities located outside the Atlantic Compact region;     (4)   authorized South Carolina to proceed with plans to establish disposal rates for low-level radioactive waste disposal in a manner consistent with the procedures described in this chapter;

(5)   adopted a binding regulation, policy, or order officially designating South Carolina as a volunteer host state for the region's disposal facility, contingent upon South Carolina's membership in the compact, in accordance with Article V.b.1. of the Atlantic Compact, thereby authorizing the following compensation and incentives to South Carolina:

(a)   agreement, as evidenced in a policy, regulation, or order that the compact commission will issue a payment of twelve million dollars to the State of South Carolina. Before issuing the twelve million-dollar payment, the compact commission will deduct and retain from this amount seventy thousand dollars, which will be credited as full payment of South Carolina's membership dues in the Atlantic


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Compact. The remainder of the twelve million-dollar payment must be credited to an account in the State Treasurer's office, separate and distinct from the fund, styled 'Barnwell Economic Development Fund'. This fund, and earnings on this fund which must be credited to the fund, may only be expended for purposes of economic development in the Barnwell County area including, but not limited to, projects of the Barnwell County Economic Development Corporation and projects of the Tri-County alliance which includes Barnwell, Bamberg, and Allendale Counties and projects in the Williston area of Aiken County. Economic development includes, but is not limited to, industrial recruitment, infrastructure construction, improvement, and expansion, and public facilities construction, improvement, and expansion. These funds must be spent according to guidelines established by the Barnwell County governing body and upon approval of the board office. Expenditures must be authorized by the Barnwell County governing body and with the approval of the board office. Upon approval of the Barnwell County governing body and the board office, the State Treasurer shall submit the approved funds to the Barnwell County Treasurer for disbursement pursuant to the authorization;

(b)   adopted a binding regulation, policy, or order consistent with the regional management plan developed pursuant to Article V(a) of the Atlantic Compact, limiting Connecticut and New Jersey to the use of not more than 800,000 cubic feet of disposal capacity at the regional disposal facility located in Barnwell County, South Carolina, and also ensuring that up to 800,000 cubic feet of disposal capacity remains available for use by Connecticut and New Jersey unless this estimate of need is later revised downward by unanimous consent of the compact commission;

(c)   agreement, as evidenced in a policy or regulation, that the compact commission headquarters and office will be relocated to South Carolina within six months of South Carolina's membership; and

(d)   agreement, as evidenced in a policy or regulation, that the compact commission will, to the extent practicable, hold a majority of its meetings in the host state for the regional disposal facility.

(B)   The board office, the State Treasurer, and the PSC shall provide the required staff and may add additional permanent or temporary staff or contract for services, as well as provide for operating expenses, if necessary, to administer new responsibilities assigned under this chapter. In accordance with Article V.f.2. of the Atlantic Compact the compensation, costs, and expenses incurred incident to administering these responsibilities may be paid through a surcharge on waste


Printed Page 4016 . . . . . Tuesday, May 28, 2013

disposed at regional disposal facilities within the State. To cover these costs the board office shall impose a surcharge per unit of waste received at any regional disposal facility located within the State. A site operator shall collect and remit these fees to the board office in accordance with the board's office's directions. All such surcharges shall be included within the disposal rates set by the board office pursuant to Section 48-46-40.

(C)   In accordance with Article V.f.3. of the Atlantic Compact, the compact commission shall advise the board office at least annually, but more frequently if the compact commission deems appropriate, of the compact commission's costs and expenses. To cover these costs the board office shall impose a surcharge per unit of waste received at any regional disposal facility located within the State as determined in Section 48-46-40. A site operator shall collect and remit these fees to the board office in accordance with the board office's directions, and the board department shall remit those fees to the compact commission."   JJ.   Section 48-46-90(A) of the 1976 Code is amended to read:

"(A)   In accordance with Section 13-7-30, the board office, or its designee, is responsible for extended custody and maintenance of the Barnwell site following closure and license transfer from the facility operator. The Department of Health and Environmental Control is responsible for continued site monitoring."

KK.   Section 63-11-500(A) of the 1976 Code is amended to read:

"(A)   There is created the Cass Elias McCarter Guardian ad Litem Program in South Carolina. The program shall serve as a statewide system to provide training and supervision to volunteers who serve as court-appointed special advocates for children in abuse and neglect proceedings within the family court, pursuant to Section 63-7-1620. This program must be administered by the Office of the Governor Department of Administration."

LL.   1.   Section 63-11-700 of the 1976 Code are amended to read:

"Section 63-11-700.   (A)   There is created, as part of the Office of the Governor, within the of the Department of Administration, the Division for Review of the Foster Care of Children. The division must be supported by a board consisting of seven eight members, all of whom must be past or present members of local review boards. There must be one member from each congressional district and one member from the State at large, all appointed by the Governor with the advice and consent of the Senate.


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(B)   Terms of office for the members of the board are for four years and until their successors are appointed and qualify. Appointments must be made by the Governor for terms of four years to expire on June thirtieth of the appropriate year.

(C)   The board shall elect from its members a chairman who shall serve for two years. Four Five members of the board constitute a quorum for the transaction of business. Members of the board shall receive per diem, mileage, and subsistence as provided by law for members of boards, commissions, and committees while engaged in the work of the board.

(D)   The board shall meet at least quarterly and more frequently upon the call of the division director to review and coordinate the activities of the local review boards and make recommendations to the Governor and the General Assembly with regard to foster care policies, procedures, and deficiencies of public and private agencies which arrange for foster care of children as determined by the review of cases provided for in Section 63-11-720(A)(1) and (2). These recommendations must be submitted to the Governor and included in an annual report, filed with the General Assembly, of the activities of the state office and local review boards.

(E)   The board, upon recommendation of the division director, shall promulgate regulations to carry out the provisions of this article. These regulations shall provide for and must be limited to procedures for: reviewing reports and other necessary information at state, county, and private agencies and facilities; scheduling of reviews and notification of interested parties; conducting local review board and board of directors' meetings; disseminating local review board recommendations, including reporting to the appropriate family court judges the status of judicially approved treatment plans; participating and intervening in family court proceedings; and developing policies for summary review of children privately placed in privately-owned facilities or group homes.

(F)   The Governor may employ a division director to serve at the Governor's pleasure who may be paid an annual salary to be determined by the Governor. The director may be removed pursuant to Section 1-3-240. The division director shall employ staff as is necessary to carry out this article, and the staff must be compensated in an amount and in a manner as may be determined by the Governor.

(G)   This article may not be construed to provide for subpoena authority."


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2.   Section 63-11-730(A) of the 1976 Code is amended to read:

"(A)   No person may be employed by the Division for Review of the Foster Care of Children, Office of the Governor within the Department of Administration, or may serve on the state or a local foster care review board if the person:

(1)   is the subject of an indicated report or affirmative determination of abuse or neglect as maintained by the Department of Social Services in the Central Registry of Child Abuse and Neglect pursuant to Subarticle 13, Article 3, Chapter 7;

(2)   has been convicted of or pled guilty or nolo contendere to:

(a)   an 'offense against the person' as provided for in Title 16, Chapter 3;

(b)   an 'offense against morality or decency' as provided for in Title 16, Chapter 15; or

(c)   contributing to the delinquency of a minor, as provided for in Section 16-17-490."

MM.   1.   Section 63-11-1110 of the 1976 Code is amended to read:

"Section 63-11-1110.   There is created the Children's Case Resolution System, within the Department of Administration and referred to in this article as the System, which is a process of reviewing cases on behalf of children for whom the appropriate public agencies collectively have not provided the necessary services. The System must be housed in and staffed by the Office of the Governor."

2.   Section 63-11-1140(5), (8), and (9) of the 1976 Code are amended to read:

"(5)   when unanimous consent is not obtained as required in item (4), a panel must be convened composed of the following persons:

(a)   one public agency board member and one agency head appointed by the Governor. Recommendations for appointments may be submitted by the Human Services Coordinating Council. No member may be appointed who represents any agency involved in the resolution of the case;

(b)   one legislator appointed by the Governor; and

(c)   two members appointed by the Governor, drawn from a list of qualified individuals not employed by a child-serving public agency, established in advance by the System, who have knowledge of public services for children in South Carolina.

The chairman must be appointed by the Governor from members appointed as provided in subitem (c) of this item. A decision is made by a majority of the panel members present and voting, but in no case may a decision be rendered by less than three members. The panel


Printed Page 4019 . . . . . Tuesday, May 28, 2013

shall review a case at the earliest possible date after sufficient staff review and evaluation pursuant to items (3) and (4) and shall make a decision by the next scheduled panel meeting. When private services are necessary, financial responsibility must be apportioned among the appropriate public agencies based on the reasons for the private services. Agencies designated by the panel shall carry out the decisions of the panel, but the decisions may not substantially affect the funds appropriated for the designated agency to such a degree that the intent of the General Assembly is changed. Substantial impact of the decisions must be defined by regulations promulgated by the State Budget and Control Board Department of Administration. When the panel identifies similar cases that illustrate a break in the delivery of service to children, either because of restrictions by law or substantial lack of funding, the panel shall report the situation to the General Assembly and subsequently may not accept any similar cases for decision until the General Assembly takes appropriate action, however, the System may continue to perform the functions provided in items (3) and (4).

Each member of the panel is entitled to subsistence, per diem, and mileage authorized for members of state boards, committees, and commissions. The respective agency is responsible for the compensation of the members appointed in subitems (a) and (b) of this item, and the System is responsible for the compensation of the members appointed in subitem (c) of this item;

(8)   submit an annual report on the activities of the System to the Governor, Director of the Department of Administration, the General Assembly, and agencies designated by the System as relevant to the cases; and

(9)   compile and transmit additional reports on the activities of the System, and recommendations for service delivery improvements, as necessary, to the Governor and the Joint Citizens and Legislative Committee on Children."

NN.   1.   Section 44-38-380(A)(1)(h) of the 1976 Code is amended to read:

"(h)   Director of the Continuum of Care for Emotionally Disturbed Children Division of the Governor's Office;"

2.   Section 63-11-1310 of the 1976 Code, as added by Act 361 of 2008, is amended to read:

"Section 63-11-1310.   It is the purpose of this article to develop and enhance the delivery of services to severely emotionally disturbed children and youth and to ensure that the special needs of this


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population are met appropriately to the extent possible within this State. To achieve this objective, the Continuum of Care for Emotionally Disturbed Children Division is established as a division of the office of the Governor Department of Administration. This article supplements and does not supplant existing services provided to this population."

3.   Section 63-11-1340 of the 1976 Code, as added by Act 361 of 2008, is amended to read:

"Section 63-11-1340.   The Governor may employ appoint a Director of the Continuum of Care to serve at his pleasure who is subject to removal pursuant to the provisions of Section 1-3-240. The director shall employ staff necessary to carry out the provisions of this article. The funds for the division director, staff, and other purposes of the Continuum of Care Division must be provided in the annual general appropriations act. The department, upon the recommendation of the division director, shall may promulgate regulations in accordance with this article and the provisions of the Administrative Procedures Act and formulate necessary policies and procedures of administration and operation to carry out effectively the objectives of this article."

4.   Section 63-11-1360 of the 1976 Code as added by Act 361 of 2008, is amended to read:

"The Continuum of Care Division shall submit an annual report to the Governor Department of Administration and General Assembly on its activities and recommendations for changes and improvements in the delivery of services by public agencies serving children."

5.   Section 63-11-1510 of the 1976 Code is amended to read:

"Section 63-11-1510.   There is established the Interagency System for Caring for Emotionally Disturbed Children, an integrated system of care to be developed by the Continuum of Care for Emotionally Disturbed Children of the Governor's Office in the Department of Administration, the Department of Disabilities and Special Needs, the State Health and Human Services Finance Commission, the Department of Mental Health, and the Department of Social Services to be implemented by November 1, 1994. The goal of the system is to implement South Carolina's Families First Policy and to support children in a manner that enables them to function in a community setting. The system shall provide assessment and evaluation procedures to insure a proper service plan and placement for each child. This system must have as a key component the clear identification of the agency accountable for monitoring on a regular basis each child's care plan and procedures to evaluate and certify the programs offered by providers."


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  Part VII

Legislative Fiscal Office and

Other Transfer Provisions

Subpart 1

SECTION   9.   A.     Chapter 3, Title 2 of the 1976 Code is amended by adding:

"Section 2-3-240.   (A)   The Legislative Fiscal Office is established under the joint direction and management of the Clerk of the Senate and the Clerk of the House of Representatives as a division of the Legislative Services Agency.

(B)   The Legislative Fiscal Office must support the work of the General Assembly through the provision of data, fiscal impact statements and revenue impact statements, as appropriate, on proposed legislation, forecast of economic conditions pursuant to Section 11-9-880, and support the General Assembly's budget writing duties without regard to political or other considerations beyond technical accuracy and professionalism required to perform the duties of the office."

B.     (1)   The employees of the Office of State Budget required to provide fiscal impact statements on proposed legislation, to support the General Assembly's budget writing duties, and to support the other duties assigned to the Legislative Fiscal Office are transferred to the Legislative Fiscal Office, organized as recommended by the Clerk of the Senate and the Clerk of the House of Representatives.

(2)   The Clerk of the Senate, the Clerk of the House of Representatives, and the executive director of the Budget and Control Board, in consultation with the Chairman of the Senate Finance Committee and the Chairman of the House Ways and Means Committee, shall determine the employees, authorized appropriations, and assets and liabilities to be transferred pursuant to items (1) and (2) of subsection (A).

  Subpart 2

SECTION   10.   Section 11-9-820(A), (B), and (C) of the 1976 Code are amended to read:

"(A)   There is created the Board of Economic Advisors, a division of the State Fiscal Accountability Authority, as follows:

(1)   one member, appointed by, and serving at the pleasure of, the Governor, who shall serve as chairman and shall receive annual compensation of ten thousand dollars;


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(2)   one member appointed by, and serving at the pleasure of, the Chairman of the Senate Finance Committee, who shall receive annual compensation of eight thousand dollars;

(3)   one member appointed by, and serving at the pleasure of, the Chairman of the Ways and Means Committee of the House of Representatives, who shall receive annual compensation of eight thousand dollars;

(4)   the Director of the Department of Revenue, who shall serve ex officio, with no voting rights.

(B)   The Chairman of the Board of Economic Advisors shall report directly to the Budget and Control Board State Fiscal Accountability Authority to establish policy governing economic trend analysis. The Board of Economic Advisors shall provide for its staffing and administrative support from funds appropriated by the General Assembly.

(C)   The Executive Director of the Budget and Control Board State Fiscal Accountability Authority shall assist the Governor, Chairman of the Board of Economic Advisors, Chairman of the Senate Finance Committee, and Chairman of the Ways and Means Committee of the House of Representatives in providing an effective system for compiling and maintaining current and reliable economic data. The Board of Economic Advisors may establish an advisory board to assist in carrying out its duties and responsibilities. All state agencies, departments, institutions, and divisions shall provide the information and data the advisory board requires. The Board of Economic Advisors is considered a public body for purposes of the Freedom of Information Act, pursuant to Section 30-4-20(a)."

SECTION   11.   A.     Sections 11-9-825 and 11-9-830 of the 1976 Code are amended to read:

"Section 11-9-825.   The staff of the Board of Economic Advisors must be supplemented by the following officials who each shall designate one professional from their individual staffs to assist the BEA staff on a regular basis: the Governor, the director of the Executive Budget and Strategic Planning Office, the Chairman of the House Ways and Means Committee, the Chairman of the Senate Finance Committee, and the State Department of Revenue Chairman, and the Director of the Budget Division of the Budget and Control Board State Fiscal Accountability Authority. The BEA staff shall meet monthly with these designees in order to solicit their input.

Section 11-9-830.   In order to provide a more effective system of providing advice to the State Fiscal Accountability Authority, Budget


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and Control Board the Governor, and the General Assembly on economic trends, the Board of Economic Advisors shall:

(1)   compile and maintain in a unified, concise, and orderly form information about total revenues and expenditures which involve the funding of state government operations, revenues received by the State which comprise general revenue sources of all receipts to include amounts borrowed, federal grants, earnings, and the various activities accounted for in other funds;

(2)   continuously review and evaluate total revenues and expenditures to determine the extent to which they meet fiscal plan forecasts/projections;

(3)   evaluate federal revenues in terms of impact on state programs;

(4)(3)   compile economic, social, and demographic data for use in the publishing of economic scenarios for incorporation into the development of the state budget;

(5)(4)   bring to the attention of the Governor and the General Assembly the effectiveness, or lack thereof, of the economic trends and the impact on statewide policies and priorities;

(6)   establish liaison with the Congressional Budget Office and the Office of Management and Budget at the national level."

B.   Chapter 9, Title 11 of the 1976 Code is amended by adding:

"Section 11-9-835.   The Board of Economic Advisors and the Legislative Fiscal Office must cooperate with one another in the discharge of their respective duties and responsibilities, including, but not limited to, the production, preparation, or analysis of all documents, reports, answers, records, accounts, papers, and other necessary data and documentary information required for each entity to timely perform their respective duties and responsibilities."

SECTION   12.   Section 11-9-880(C) of the 1976 Code is amended to read:

"(C)   All forecasts, adjusted forecasts, and reports of the Board of Economic Advisors, including the synopsis of the current year's review as required by subsection (B), must be published and reported to the Governor, the members of the Budget and Control Board, the members of the General Assembly, the members of the State Fiscal Accountability Authority, and made available to the news media."

SECTION   13.   Section 11-9-890B. of the 1976 Code is amended to read:

"B.   (1)   If at the end of the first, second, or third quarter of any fiscal year quarterly revenue collections are two percent or more below the amount projected for that quarter by the Board of Economic


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Advisors reduces the revenue forecast for the fiscal year by three percent or less below the amount projected for the fiscal year in the forecast in effect at the time the general appropriations bill for the fiscal year is ratified, the State Budget and Control Board, within seven three days of that determination, shall take action to avoid a year-end deficit. Notwithstanding Section 1-11-495, if the State Budget and Control Board does not take unanimous action within seven days, the Director of the Office of State Executive Budget and Strategic Planning Office must reduce general fund appropriations by the requisite amount in the manner prescribed by law. Upon making the reduction, the Director of the Office of State Executive Budget and Strategic Planning Office immediately must notify the State Treasurer and the Comptroller General of the reduction, and upon notification, the appropriations are considered reduced. No agencies, departments, institutions, activity, program, item, special appropriation, or allocation for which the General Assembly has provided funding in any part of this section may be discontinued, deleted, or deferred by the Director of the Office of State Executive Budget and Strategic Planning Office. A reduction of rate of expenditure by the Director of the Office of State Executive Budget and Strategic Planning Office, under authority of this section, must be applied as uniformly as shall be practicable, except that no reduction must be applied to funds encumbered by a written contract with the agency, department, or institution not connected with state government.

(2)   If at the end of the first, second, or third quarter of any fiscal year the Board of Economic Advisors reduces the revenue forecast for the fiscal year by more than three percent below the amount projected for the fiscal year in the forecast in effect at the time the general appropriations bill for the fiscal year is ratified, the President Pro Tempore of the Senate and the Speaker of the House of Representatives may call each respective house into session to take action to avoid a year-end deficit. If the General Assembly has not taken action within twenty days of the determination of the Board of Economic Advisors, the Director of the Executive Budget and Strategic Planning Office must reduce general fund appropriations by the requisite amount in the manner prescribed by law and in accordance with item (1) of this subsection."

SECTION   14.   A.     Title 2 of the 1976 Code is amended by adding:


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  "CHAPTER 79

State Agency Deficit Prevention and Recognition

Section 2-79-10.   This chapter may be cited as the 'State Agency Deficit Prevention and Recognition Act'.

Section 2-79-20.   It is the responsibility of each state agency, department, and institution to operate within the limits of appropriations set forth in the annual general appropriations act, appropriation acts, or joint resolution supplemental thereto, and any other approved expenditures of monies. A state agency, department, or institution shall not operate in a manner that results in a year-end deficit except as provided in this chapter.

Section 2-79-30.   (A)   If at the end of each quarterly deficit monitoring review by the Executive Budget and Strategic Planning Office, it is determined by either the Executive Budget and Strategic Planning Office or a state agency, department, or institution that the likelihood of a deficit for the current fiscal year exists, the state agency shall notify the General Assembly within fifteen days of this determination and shall further request the Executive Budget and Strategic Planning Office to work with it to develop a plan to avoid the deficit. Within fifteen days of the deficit avoidance plan being completed, the Executive Budget and Strategic Planning Office shall:

(1)   recognize the deficit, in the manner provided in Section 2-79-40(A) if it determines that the deficit avoidance plan will not be sufficient to avoid a deficit, the projected deficit is less than one million dollars, and the General Assembly is adjourned Sine Die;

(2)   request the General Assembly to recognize the deficit in the manner provided in Section 2-79-40(B) if it determines the deficit avoidance plan will not be sufficient to avoid a deficit and the projected deficit is equal to or greater than one million dollars, regardless of whether the General Assembly is adjourned Sine Die; or

(3)   notify the General Assembly of how the deficit will be avoided based on the deficit avoidance plan if the Executive Budget and Strategic Planning Office determines the plan will be sufficient to avoid a deficit.

(B)   The Executive Budget and Strategic Planning Office must notify the General Assembly as soon as practicable when it determines that it will proceed with a deficit recognition pursuant to subsection (A)(1).

(C)   If the Executive Budget and Strategic Planning Office requests that the General Assembly recognize the deficit in the manner provided in Section 2-79-40(B) and the General Assembly is adjourned Sine Die,


Printed Page 4026 . . . . . Tuesday, May 28, 2013

the Speaker of the House and Pro Tempore of the Senate may call each respective house into session to address the deficit.

Section 2-79-40.   (A)(1)   When a deficit avoidance plan will not be sufficient to avoid a deficit, the projected deficit is less than one million dollars, and the General Assembly is adjourned Sine Die, the Executive Budget and Strategic Planning Office may recognize the deficit if the deficit is unavoidable due to factors which are outside the control of the state agency, department, or institution. Subject to the provisions contained in item (2), a deficit recognized by the Executive Budget and Strategic Planning Office must, at the close of the fiscal year, reduce the actual deficit, as necessary, from surplus revenues or surplus funds available at the close of the fiscal year in which the deficit occurs and then, to the extent no surplus revenues or surplus funds are available, first from funds available in the Capital Reserve Fund and then from funds available in the General Reserve Fund as required by the Constitution of this State.

(2)   During its next ensuing regular session following a deficit recognition by the Executive Budget and Strategic Planning Office, the General Assembly may make a finding that the cause of, or likelihood of, a deficit is unavoidable due to factors which are outside the control of the state agency, department, or institution that was the subject of deficit recognition and recognize the deficit in the manner provided in subsection (B). If the General Assembly does not recognize the deficit prior to Sine Die adjournment of its next ensuing regular session, the deficit recognized by the Executive Budget and Strategic Planning Office shall remain effective and its provisions shall be implemented.

(B)(1)   Upon notification from the Executive Budget and Strategic Planning Office as provided in Section 2-79-30(A)(2) that an agency will run a deficit and requesting that it be recognized, the General Assembly, by joint resolution, may make a finding that the cause of, or likelihood of, a deficit is unavoidable due to factors which are outside the control of the state agency, department, or institution, and recognize the deficit. Any legislation to recognize a deficit must be in a separate joint resolution enacted for the sole purpose of recognizing the deficit of a particular state agency, department, or institution. A deficit only may be recognized by an affirmative vote of each branch of the General Assembly.

(2)   If the General Assembly recognizes the deficit, then the actual deficit at the close of the fiscal year must be reduced as necessary from surplus revenues or surplus funds available at the close of the fiscal year in which the deficit occurs and then, to the extent no


Printed Page 4027 . . . . . Tuesday, May 28, 2013

surplus revenues or surplus funds are available, first from funds available in the Capital Reserve Fund and then from funds available in the General Reserve Fund as required by the Constitution of this State.

Section 2-79-50.   Once a deficit has been recognized pursuant to this chapter, the state agency, department, or institution shall limit travel and conference attendance to that which is deemed essential by the director of the agency, department, or institution. In addition, when recognizing a deficit, the General Assembly or the Executive Budget and Strategic Planning Office, as the case may be, may condition recognition on a requirement that any pay increases and purchases of equipment and vehicles must be approved by the Executive Budget and Strategic Planning Office."

B.   Section 1-11-495 of the 1976 Code, as last amended by Act 152 of 2010, is repealed.

C.   Sections 11-9-230 through 11-9-270 of the 1976 Code are repealed.

  Subpart 4

SECTION   15.   A.   Section 2-7-71 of the 1976 Code is amended to read:

"Section 2-7-71.   When a bill relating to state taxes is reported out of a standing committee of the Senate or House of Representatives for consideration, there must be attached and printed as a part of the committee report a statement of the estimated revenue impact of the bill on the finances of the State certified by the Board of Economic Advisors Executive Director of the Legislative Fiscal Office, or his designee. As used in this section "statement of estimated revenue impact" means the consensus of the persons executing the required statement as to the increase or decrease in the net tax revenue to the State if the bill concerned is enacted by the General Assembly. In preparing a statement, the Board of Economic Advisors Legislative Fiscal Office may request technical advice of the Department of Revenue.

B.   Section 2-7-72 of the 1976 Code is amended to read:

"Section 2-7-72.   Whenever a bill or resolution is introduced in the General Assembly requiring the expenditure of funds, the principal author shall affix a statement of estimated fiscal impact and cost of the proposed legislation. Before reporting the bill out of committee, if the amount is substantially different from the original estimate, the committee shall attach a statement of estimated fiscal impact to the bill signed by the Executive Director of the State Budget Division of the State Budget and Control Board Legislative Fiscal Office or his


Printed Page 4028 . . . . . Tuesday, May 28, 2013

designee. As used in this section, 'statement of estimated fiscal impact' means the opinion of the person executing the statement as to the dollar cost to the State for the first year and the annual cost thereafter."

SECTION   16.   Section 2-7-73 of the 1976 Code is amended to read:

"Section 2-7-73.   (A)   Any bill or resolution which would mandate a health coverage or offering of a health coverage by an insurance carrier, health care service contractor, or health maintenance organization as a component of individual or group policies, must have attached to it a statement of the financial impact of the coverage, according to the guidelines enumerated in subsection (B). This financial impact analysis must be conducted by the Division of Research and Statistical Services Legislative Fiscal Office based upon data supplied by the State Fiscal Accountability Authority's Office of Research and Statistics and signed by an authorized agent of the Department of Insurance, or his designee. The statement required by this section must be delivered to the Senate or House committee to which any bill or resolution is referred, within thirty days of the written request of the chairman of such committee.

(B)   Guidelines for assessing the financial impact of proposed mandated or mandatorily offered health coverage to the extent that information is available, must include, but are not limited to, the following:

(1)   to what extent does the coverage increase or decrease the cost of treatment or services;

(2)   to what extent does the coverage increase or decrease the use of treatment or service;

(3)   to what extent does the mandated treatment or service substitute for more expensive treatment or service;

(4)   to what extent does the coverage increase or decrease the administrative expenses of insurance companies and the premium and administrative expenses of policyholders; and

(5)   what is the impact of this coverage on the total cost of health care."

SECTION   17.   Section 2-7-74 of the 1976 Code is amended to read:

"Section 2-7-74.   (A)   As used in this section, 'statement of estimated fiscal impact' means the opinion of the person executing the statement as to the dollar cost to the State for the first year and the annual cost thereafter.


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(B)   The principal author of legislation that would establish a new criminal offense or that would amend the sentencing provisions of an existing criminal offense may affix a statement of estimated fiscal impact of the proposed legislation. Upon request from the principal author of the legislation, the Office of State Budget Legislative Fiscal Office shall assist in preparing the fiscal impact statement.

(C)   If a fiscal impact statement is not affixed to legislation at the time of introduction, the committee to which the legislation is referred shall request a fiscal impact statement from the Office of State Budget Legislative Fiscal Office. The Office of State Budget Legislative Fiscal Office shall have at least fifteen calendar days from the date of the request to deliver the fiscal impact statement to the Senate or House of Representatives committee to which the legislation is referred, unless the Office of State Budget Legislative Fiscal Office requests an extension of time. The Office of State Budget Legislative Fiscal Office shall not unreasonably delay the delivery of a fiscal impact statement.

(D)   The committee shall not take action on the legislation until the committee has received the fiscal impact statement.

(E)   If the legislation is reported out of the committee, the committee shall attach the fiscal impact statement to the legislation. If the legislation has been amended, the committee shall request a revised fiscal impact statement from the Office of State Budget Legislative Fiscal Office and shall attach the revised fiscal impact statement to the legislation.

(F)   State agencies and political subdivisions shall cooperate with the Office of State Budget Legislative Fiscal Office in preparing fiscal impact statements. Such agencies and political subdivisions shall submit requested information to the Office of State Budget Legislative Fiscal Office in a timely fashion.

(G)   In preparing fiscal impact statements, the Office of State Budget Legislative Fiscal Office shall consider and evaluate information as submitted by state agencies and political subdivisions. The Office of State Budget Legislative Fiscal Office shall provide to the requesting Senate or House of Representatives committee any estimates provided by a state agency or political subdivision, which are substantially different from the fiscal impact as issued by the Office of State Budget Legislative Fiscal Office.

(H)   The Office of State Budget Legislative Fiscal Office may request information from nongovernmental agencies and organizations to assist in preparing the fiscal impact statement."


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SECTION   18.   Section 2-7-76 of the 1976 Code is amended to read:

"Section 2-7-76.   (A)   The chairman of the legislative committee to which a bill or resolution was referred shall direct the Budget Division or the Economic Research Section of the Budget and Control Board, as appropriate, Legislative Fiscal Office to prepare and affix to it a statement of the estimated fiscal or and revenue impact and cost to the counties and municipalities of the proposed legislation before the legislation is reported out of that committee if a bill or resolution:

(1)   requires a county or municipality to expend funds allocated to the county or municipality pursuant to Chapter 27, of Title 6;

(2)   is introduced in the General Assembly to require the expenditure of funds by a county or municipality;

(3)   requires the use of county or municipal personnel, facilities, or equipment to implement a general law or regulations promulgated pursuant to a general law; or

(4)   relates to taxes imposed by political subdivisions.

(B)   A revised estimated fiscal or and revenue impact and cost statement must be prepared at the direction of the presiding officer of the House of Representatives or the Senate by the Budget Division or Economic Research Section of the Budget and Control Board Legislative Fiscal Office before third reading of the bill or resolution, if there is a significant amendment to the bill or resolution.

(C)   For purposes of this section, 'political subdivision' means a county, municipality, school district, special purpose district, public service district, or consolidated political subdivision."

Subpart 5

SECTION   19.   Section 48-52-410 of the 1976 Code is amended to read:

"Section 48-52-410.   There is established the State Energy Office within the State Budget and Control Board Office of Regulatory Staff which shall serve as the principal energy planning entity for the State. Its primary purpose is to develop and implement a well-balanced energy strategy and to increase the efficiency of use of all energy sources throughout South Carolina through the implementation of the Plan for State Energy Policy. The State Energy Office must not function as a regulatory body."

SECTION   20.   Section 48-52-440 of the 1976 Code is amended to read:

"Section 48-52-440.   There is established the Energy Advisory Committee, whose members are appointed by the State Budget and


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Control Board, except as provided in item (14) of this section. Members shall serve at the pleasure of the State Budget and Control Board except that those appointed pursuant to item (14) shall serve for a term coterminous with that of their appointing authority. The committee is composed as follows:

(1)   two representatives of investor-owned electricity companies;

(2)   two representatives of electric cooperatives;

(3)   one representative of the South Carolina Public Service Authority, who shall serve ex officio;

(4)   one representative of municipally-owned electric utilities;

(5)   one representative of publicly-owned natural gas companies;

(6)   one representative of investor-owned gas companies;

(7)   one representative of oil suppliers or dealers;

(8)   one representative of propane suppliers or dealers;

(9)   one representative of nonprofit public transportation providers;

(10)   two representatives of industrial consumers;

(11)   two representatives of commercial consumers;

(12)   two representatives of individual consumers; one must be the Executive Director of the Office of Regulatory Staff or his designee, who shall serve ex officio;

(13)   two representatives of environmental groups; and

(14)   one at-large member appointed by the Governor.

The Budget and Control Board shall elect one of the committee members to serve as chairman. The members of the Energy Advisory Committee are not eligible for per diem payments or for reimbursement for lodging or meals. The functions of the Energy Advisory Committee are advisory to the State Energy Office. The committee shall meet at least annually and at the call of the chair or at the request of at least six members to receive information on the activities of the State Energy Office and the formulation and implementation of the state energy action plan. It may comment and advise on the activities and the plan as considered appropriate by members of the committee. The State Energy Office may seek advice and guidance from the committee as considered appropriate by the director of the office. Members shall adopt rules governing meeting attendance and abide by these rules.

(A)   All funds allocated or directed to this State by the federal government relating to energy planning, energy conservation, and energy efficiency must be allocated or directed to the State Energy Office in the Office of Regulatory Staff to be distributed in accordance with the provisions of this section; provided, however, that no funding


Printed Page 4032 . . . . . Tuesday, May 28, 2013

from the following federal programs is subject to the provisions of this section:

(1)   the Low Income Home Energy Assistance Program (LIHEAP), created by Title XXVI of the Omnibus Budget Reconciliation Act of 1981 and codified as Chapter 94, Title 42 of the United States Code, as amended by the Human Services Reauthorization Act of 1984, the Human Services Reauthorization Act of 1986, the Augustus F. Hawkins Human Services Reauthorization Act of 1990, the National Institutes of Health Revitalization Act of 1993, the Low-Income Home Energy Amendments of 1994, the Coats Human Services Reauthorization Act of 1998, and the Energy Policy Act of 2005, which is administered and funded by the United States Department of Health and Human Services on the federal level and administered locally by community action agencies; or

(2)   the Weatherization Assistance Program, created by Title IV of the Energy Conservation and Production Act of 1976 and codified as Part A, Subchapter III, Chapter 81, Title 42 of the United States Code, amended by the National Energy Conservation Policy Act, the Energy Security Act, the Human Services Reauthorization Act of 1984, and the State Energy Efficiency Programs Improvement Act of 1990 and administered and funded by the United States Department of Energy on the federal level and administered locally by community action agencies.

Nothing in this section changes the exclusive administration of the Low Income Energy Assistance Program and Weatherization Assistance Program by local community action agencies through the Department of Administration's Office of Economic Opportunity pursuant to its authority under the provisions of Chapter 45, Title 43, the Community Economic Opportunity Act of 1983.

(B)   All funds described in subsection (A) that are not exempted by items (1) and (2) of subsection (A) must be distributed by the State Energy Office in the Office of Regulatory Staff in accordance with all requirements of federal law associated with these funds. Persons seeking to obtain funding for energy related programs must submit to the State Energy Office a plan for the use of the funds in a manner consistent with the provisions of this section.

(C)   Upon receipt of the plans required by subsection (B), the State Energy Office of the Office of Regulatory Staff must prepare an analysis of the plans and their consistency with the provisions of this section and submit that analysis to the Department Advisory Council for its review and recommendations.


Printed Page 4033 . . . . . Tuesday, May 28, 2013

(D)   There is hereby created in the Office of Regulatory Staff the Energy Advisory Council, which will advise the State Energy Office on all matters for which the State Energy Office is responsible and specifically with respect to its review of the annual plans required to be submitted pursuant to this section. The Advisory Council shall be composed of nine members as follows:

(1)   three appointed by the Governor, one of whom must have a substantial background in environmental or consumer protection matters;

(2)   three appointed by the President Pro Tempore of the Senate, one of whom must have a substantial background in environmental or consumer protection matters; and

(3)   three appointed by the Speaker of the House of Representatives, one of whom must have a substantial background in environmental or consumer protection matters.

All appointees must have backgrounds in environmental issues; the electricity, transportation, or natural gas industries; or economic development related to these sectors.

(E)   In evaluating the plans required by this section, the Advisory Council shall consider the extent to which the plans allocate funds in a cost effective manner and promote the following alternative sources of domestic energy or avoidance of consumption of energy:

(1)   the development of energy efficiency and conservation;

(2)   renewable sources of energy, including wind power, solar power, energy from biomass sources, and energy storage;

(3)   nuclear energy; and

(4)   alternative fuels or power sources for the transportation sector.

In considering the cost-effectiveness of the plans the Advisory Council must consider the cost of the proposed measures as to the expected useful life of the measures being proposed and the impact of the proposed measures on consumers. For each proposed plan, the Advisory Council must consider the value of the avoided cost of complying with anticipated state and federal environmental regulations.

(F)   Upon completion of its review of plans submitted in compliance with this section, the Advisory Council must prepare a report describing the results of its review and submit copies of that report to the State Energy Office of the Office of Regulatory Staff and the Public Utility Review Committee of Article 5 of Chapter 3, Title 58.

(G)   The Executive Director of the Office of Regulatory Staff shall make the final determinations of distributions of funds as required by


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this section, taking into account the recommendations of the Advisory Council. Grant awards shall be made in a manner consistent with this section."

SECTION   21.   Section 48-52-460 of the 1976 Code is amended to read:

"Section 48-52-460.   The establishment of the State Energy Office within the State Budget and Control Board Office of Regulatory Staff, as provided for in this part, must be evaluated if restructuring or reorganizing of state government takes place so as to identify and provide for the proper placement of the office upon restructuring or reorganizing."

SECTION   22.   Section 48-52-635 of the 1976 Code is amended to read:

"Section 48-52-635.   Pursuant to Section 48-52-630, an agency's savings realized in the prior fiscal year from implementing an energy conservation measure as compared to a baseline energy use as certified by the State Energy Office, may be retained and carried forward into the current fiscal year. This savings, as certified by the State Energy Office, must first be used for debt retirement of capital expenditures, if any, on the energy conservation measure, after which time savings may be used for agency operational purposes and where practical, reinvested into energy conservation areas. The agency must report all actual savings in the energy portion of its annual report to the State Budget and Control Board Office of Regulatory Staff."

SECTION   23.   Section 48-52-680(C) of the 1976 Code is amended to read:

"(C)   The State Energy Office shall provide the Office of Property Management of the Budget and Control Board, Division of General Services of the Department of Administration, information to be used in evaluating energy costs for buildings or portions of buildings proposed to be leased by governmental bodies that are defined in and subject to the Consolidated Procurement Code. The information provided must be considered with the other criteria provided by law by a governmental body before entering into a real property lease."

  Subpart 6

SECTION   24.   A.     Section 1-11-25 of the 1976 Code is amended to read:

"Section 1-11-25.   (A)   There is hereby established a Local Government Division within the State Budget and Control Board Rural Infrastructure Authority to act as a liaison for financial grants among local governments local public entities, the General Assembly and the


Printed Page 4035 . . . . . Tuesday, May 28, 2013

Governor's Office. The division shall be under the supervision of a director who shall be appointed by and who shall serve at the pleasure of the Budget and Control Board authority and whose compensation shall be as provided for by the General Assembly. He may employ such staff as may be approved by the board authority. The division shall be responsible for certifying grants to local governments public entities from both federal and state funds. The term 'local government public entity' shall mean any political entity below the state level.

(B)   The division shall establish guidelines and procedures which local governments public entities shall follow in applying for grants certified by the division. The director shall make known to local governments these entities the availability of all grants available through the division authority and shall make periodic reports to the Budget and Control Board, the General Assembly and the Governor's Office. The reports shall contain information concerning the amount of funds available from both federal and state sources, requests for grants and the status of such requests and such other information as the director may deem appropriate. The director shall maintain such records as may be necessary for the efficient operation of the office.

The Division of Administration, under contractual agreement, shall furnish the Local Government Division such accounting service support as may be requested."

B.     Section 1-11-26 of the 1976 Code is amended to read:

"Section 1-11-26.   (A)   Grant funds received by a local county, municipality, political subdivision, or other public entity from the Division of Local Government of the State Budget and Control Board Rural Infrastructure Authority must be deposited in a separate fund and may not be commingled with other funds, including other grant funds. Disbursements may be made from this fund only on the written authorization of the individual who signed the grant application filed with the division, or his successor, and only for the purposes specified in the grant application. A person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined five thousand dollars or imprisoned for six months, or both.

(B)   It is not a defense to an indictment alleging a violation of this section that grant funds received from the Division of Local Government were used by a grantee or subgrantee for governmental purposes other than those specified in the grant application or that the purpose for which the grant was made by the Division of Local Government was accomplished by funds other than grant funds.


Printed Page 4036 . . . . . Tuesday, May 28, 2013

(C)   (C)   The Division of Local Government of the State Budget and Control Board Rural Infrastructure Authority shall furnish a copy of this section to a grantee when the grant is awarded."

C.     Section 11-50-50 of the 1976 Code, as added by Act 149 of 2012, is amended to read:

"Section 11-50-50.   (A)   The board of directors is the governing board of the authority. The board consists of seven eight voting directors appointed as follows:

(1)   six seven members who reside in or represent all or some portion of the counties designated as distressed or least developed pursuant to Section 12-6-3360 for 2009; one appointed by the President Pro Tempore of the Senate, one appointed by the Speaker of the House of Representatives, one appointed by the Chairman of the Senate Finance Committee, one appointed by the Chairman of the House Ways and Means Committee, and two three appointed by the Governor. One of the governor's appointees must be selected from three candidates recommended by the Municipal Association of South Carolina; one of the Governor's appointees must be selected from three candidates recommended by the South Carolina Association of Counties; and one of the Governor's appointees must be selected from three candidates recommended by the South Carolina Rural Water Association. Notwithstanding the provisions of Section 8-13-770, the members appointed pursuant to this item (1) by the President Pro Tempore of the Senate, Speaker of the House of Representatives, Chairman of the Senate Finance Committee, and the Chairman of the House Ways and Means Committee may be members of the General Assembly and, if so appointed, shall serve ex officio; and

(2)   the Secretary of Commerce, ex officio, who shall serve as chairman.

(B)   Members not serving ex officio shall serve for terms of four years and until their successors are appointed and qualify except that of the members first appointed by the Speaker of the House, President Pro Tempore of the Senate, and one of the members first appointed by the Governor, the member shall serve for a term of two years and the term must be noted on the appointment. Vacancies must be filled in the manner of original appointment for the unexpired portion of the term. Members shall serve without compensation, but are allowed mileage, subsistence, and per diem allowed by law for members of state boards, committees, and commissions."


Printed Page 4037 . . . . . Tuesday, May 28, 2013

D.   Chapter 50, Title 11 of the 1976 Code is amended by adding:

"Section 11-50-65.   The State Fiscal Accountability Authority shall provide such administrative support to the State Rural Infrastructure Authority or any of its divisions or components as they may request and require in the performance of their duties including, but not limited to, financial management, human resources management, information technology, procurement services, and logistical support."

E.   Section 48-5-30 of the 1976 Code is amended to read:

"Section 48-5-30.   There is created the South Carolina Water Quality Revolving Fund Authority. The authority is a public instrumentality of this State and the exercise by it of a power conferred in this chapter is the performance of an essential public function. The members of the State Budget and Control Board Rural Infrastructure Authority comprise the authority."

F.   Notwithstanding Section 12-10-85, the Department of Revenue is authorized to deposit revenues from the Rural Infrastructure Fund in excess of twelve million dollars to the South Carolina Rural Infrastructure Fund under the South Carolina Rural Infrastructure Authority. Any revenues in excess of seventeen million dollars shall be deposited in the Rural Infrastructure Fund under the Department of Commerce, Coordinating Council."

  Subpart 7

SECTION   25.   A.     Chapter 17, Title 60 of the 1976 Code is amended by adding:

  "CHAPTER 17

South Carolina Confederate Relic Room

and Military Museum Commission

Section 60-17-10.   (A)   Effective July 1, 2015, the South Carolina Confederate Relic Room and Military Museum Commission is established and must be composed of nine voting members who shall be appointed for terms of four years and until their successors are appointed and qualify, except as specified in subsection (B) for initial terms. The members of the board shall be appointed as follows:

(1)   three members appointed by the Governor;

(2)   two members appointed by the President Pro Tempore of the Senate;

(3)   one member appointed by the President Pro Tempore of the Senate upon the recommendation of the South Carolina Division Commander of the Sons of Confederate Veterans;

(4)   two members appointed by the Speaker of the House of Representatives; and


Printed Page 4038 . . . . . Tuesday, May 28, 2013

(5)   one member appointed by the Speaker of the House of Representatives upon the recommendation of the President of the South Carolina Division of the United Daughters of the Confederacy.

(B)   Initially, in order to stagger terms:

(1)   one member appointed by the Governor shall serve a term of one year;

(2)   one member appointed by the Governor shall serve a term of two years;

(3)   one member appointed by the Governor shall serve for three years;

(4)   one member appointed by the President Pro Tempore of the Senate shall serve for one year;

(5)   one member appointed by the President Pro Tempore of the Senate shall serve for two years;

(6)   one member appointed by the President Pro Tempore of the Senate shall serve for three years;

(7)   one member appointed by the Speaker of the House of Representatives shall serve for one year;

(8)   one member appointed by the Speaker of the House of Representatives shall serve for two years; and

(9)   one member appointed by the Speaker of the House of Representatives shall serve for three years.

At the expiration of these initial terms, successors must be appointed for terms of four years.

Section 60-17-20.   (A)   The South Carolina Confederate Relic Room and Military Museum is authorized to supplement its state appropriations by receiving donations of funds and artifacts and admission fees and to expend these donations and fees to support its operations and for the acquisition, restoration, preservation, and display of its collection.

(B)   The South Carolina Confederate Relic Room and Military Museum is authorized to collect, retain, and expend fees from research and photographic processing requests and from the sale of promotional items.

Section 60-17-30.   No artifacts owned by the State in the permanent collections of the South Carolina Confederate Relic Room and Military Museum may be permanently removed or disposed of except by a Concurrent Resolution of the General Assembly.

Section 60-17-40.   The Director of the South Carolina Confederate Relic Room and Military Museum must be selected by the South Carolina Confederate Relic Room and Military Museum Commission


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after consultation with the South Carolina Division Commander of the Sons of the Confederate Veterans and the President of the South Carolina Chapter of the United Daughters of the Confederacy. The director shall serve at the pleasure of the commission."

B.   Article 7, Chapter 11, Title 1 of the 1976 Code is repealed.

  Part VIII

State Fiscal Accountability Authority and

Related Provisions

Subpart 1

SECTION   26.   Title 11 of the 1976 Code is amended by adding:

  "CHAPTER 55

State Fiscal Accountability Authority

Section 11-55-10.   (A)   There is established the State Fiscal Accountability Authority consisting of members as follows:

(1)   the Governor, who shall serve as ex officio as chairman;

(2)   the State Treasurer, who shall serve ex officio;

(3)   the Comptroller General, who shall serve ex officio;

(4)   the Chairman of the Ways and Means Committee of the House of Representatives, ex officio; and

(5)   the Chairman of the Senate Finance Committee, ex officio.

Members shall serve at the pleasure of their appointing authority. Vacancies must be filled in the manner of the original appointment. Members shall serve without compensation, but shall receive the mileage, subsistence, and per diem allowed by law for members of state boards, committees, and commissions.

(B)(1)   The authority shall select an executive director who in turn shall employ other staff under the direction of the State Fiscal Accountability Authority as necessary for the operations of the authority.

(2)   The executive director shall serve a four-year term. The executive director may only be removed for malfeasance, misfeasance, incompetency, absenteeism, conflicts of interest, misconduct, persistent neglect of duty in office, or incapacity as found by the authority. The executive director shall have that responsibility and perform the duties prescribed by law and as may be directed by the authority.

(3)   The General Assembly, in the annual general appropriations act, shall appropriate those funds necessary for the operations of the authority.

(C)   The authority may organize its staff as it considers most appropriate to carry out the various functions, powers, duties, responsibilities, and authority assigned to it.


Printed Page 4040 . . . . . Tuesday, May 28, 2013

Section 11-55-30.   In the course of conducting and managing state affairs where a matter arises which would under prior precedents and practices be referred to the former Budget and Control Board for decision, although the procedure for the decision is not specifically provided for by general law, the matter instead shall be referred to and decided by the authority.

Section 11-55-40.   (A)   The authority shall exercise all functions, powers, duties, responsibilities, and authority related to the issuance of bonds and bonding authority, in general found in Title 11 of the 1976 Code but also contained in certain other provisions of South Carolina law, as exercised by the former Budget and Control Board prior to the effective date of Act ___ of 2013, R. ___, S. 22.

(B)   The authority shall exercise all functions, powers, duties, responsibilities, and authority, generally found in Title 11 of the 1976 Code but also contained in certain other provisions of South Carolina law, exercised by the former Budget and Control Board related to grants, loans, and other forms of financial assistance to other entities.

(C)   Bonded indebtedness issued by the South Carolina Jobs - Economic Development Authority (JEDA) requires approval by the authority as provided in Chapter 43, Title 41. Bonded indebtedness issued pursuant to this item does not constitute nor give rise to a pecuniary liability to the State or a charge against the credit or taxing powers of the State.

Section 11-55-50.   Where the applicable enabling statute or the general law relating to a permanent improvement project or the issuance of bonds or funding relating to the project both the review of the Joint Bond Review Committee and the approval by the former Budget and Control Board, the responsibility of the former Budget and Control Board, in this regard, is devolved upon the authority with no prior approval required on the part of the department."

Subpart 2

B.   Chapter 47, Title 2 of the 1976 Code is amended to read:

  "CHAPTER 47

Joint Bond Review Committee

Section 2-47-10.   The General Assembly finds that a need exists for careful planning of permanent improvements and of the utilization of state general obligation and institutional bond authority in order to ensure the continued favorable bond credit rating our State has historically enjoyed. It further finds that the responsibility for proper management of these matters is properly placed upon the General Assembly by our State Constitution legislative and executive branches


Printed Page 4041 . . . . . Tuesday, May 28, 2013

of government. It is the purpose of this resolution act chapter to further ensure the proper legislative and executive response in the fulfillment of this responsibility.

Section 2-47-20.   There is hereby created a six member joint committee of the General Assembly to be known as the Joint Bond Review Committee to study and monitor policies and procedures relating to the approval of permanent improvement projects and to the issuance of state general obligation and institutional bonds; to evaluate the effect of current and past policies on the bond credit rating of the State; and provide advisory assistance in the establishment of future capital management policies. Three members shall be appointed from the Senate Finance Committee by the chairman thereof and three from the Ways and Means Committee of the House of Representatives by the chairman of that committee correspond corresponding to the terms for which they are elected to the General Assembly. The committee shall elect officers of the committee, but any person so elected may succeed himself if elected to do so.

The expenses of the committee shall be paid from approved accounts of both houses. The Legislative Council and all other legislative staff organizations shall provide such assistance as the joint committee may request.

Section 2-47-25.   In addition to the members provided for by Section 2-47-20, two additional members shall be appointed by the Chairman of the Ways and Means Committee of the House of Representatives from the membership of that body. Two additional members shall be appointed by the Chairman of the Finance Committee of the Senate from the membership of the Senate. Members shall serve the same terms as the members of the committee provided for in Section 2-47-20.

Section 2-47-30.     The committee is specifically charged with, but not limited to, the following responsibilities:

(1)   To to review, prior to approval by the Budget and Control Board State Fiscal Accountability Authority, the establishment of any permanent improvement project and the source of funds for any such project not previously authorized specifically by the General Assembly.;

(2)   To to study the amount and nature of existing general obligation and institutional bond obligations and the capability of the State to fulfill such obligations based on current and projected revenues.;

(3)   To to recommend priorities of future bond issuance based on the social and economic needs of the State.;


Printed Page 4042 . . . . . Tuesday, May 28, 2013

(4)   To to recommend prudent limitations of bond obligations related to present and future revenue estimates.;

(5)   To to consult with independent bond counsel and other nonlegislative authorities on such matters and with fiscal officials of other states to gain in-depth knowledge of capital management and assist in the formulation of short- and long-term recommendations for the General Assembly.;

(6)   To to carry out all of the above assigned responsibilities in consultation and cooperation with the executive branch of government and the Budget and Control Board. authority;

(7)   To to report its findings and recommendations to the General Assembly annually or more frequently if deemed advisable by the committee.

Section 2-47-35.     No project authorized in whole or in part for capital improvement bond funding under the provisions of Act 1377 of 1968, as amended, may be implemented until funds can be made available and until the Joint Bond Review Committee, in consultation with the Budget and Control Board authority, establishes priorities for the funding of the projects. The Joint Bond Review Committee shall report its priorities to the members of the General Assembly within thirty days of the establishment of the funding priorities.

Section 2-47-40.     (A)   To assist the State Budget and Control Board (the Board) authority and the Joint Bond Review Committee (the Committee) in carrying out their respective responsibilities, any agency or institution requesting or receiving funds from any source for use in the financing of any permanent improvement project, as a minimum, shall provide to the Board authority, in such form and at such times as the Board authority, after review by the committee, may prescribe:

(a)(1)   a complete description of the proposed project;

(b)(2)   a statement of justification for the proposed project;

(c)(3)   a statement of the purposes and intended uses of the proposed project;

(d)(4)   the estimated total cost of the proposed project;

(e)(5)   an estimate of the additional future annual operating costs associated with the proposed project;

(f)(6)   a statement of the expected impact of the proposed project on the five-year operating plan of the agency or institution proposing the project;

(g)(7)   a proposed plan of financing the project, specifically identifying funds proposed from sources other than capital improvement bond authorizations; and


Printed Page 4043 . . . . . Tuesday, May 28, 2013

(h)(8)   the specification of the priority of each project among those proposed.

(B)   All institutions of higher learning shall submit permanent improvement project proposal and justification statements to the Board authority, through the Commission on Higher Education which shall forward all such statements and all supporting documentation received to the Board authority together with its comments and recommendations. The recommendations of the Commission on Higher Education, among other things, shall include all of the permanent improvement projects requested by the several institutions listed in the order of priority deemed appropriate by the Commission on Higher Education without regard to the sources of funds proposed for the financing of the projects requested.

The Board authority shall forward a copy of each project proposal and justification statement and supporting documentation received together with the Board's authority's recommendations on such projects to the committee for its review and action. The recommendations of the Commission on Higher Education shall be included in the materials forwarded to the committee by the Board authority.

(C)   No provision in this section or elsewhere in this chapter, shall be construed to limit in any manner the prerogatives of the committee and the General Assembly with regard to recommending or authorizing permanent improvement projects and the funding such projects may require.

Section 2-47-50.   (A)   The board authority shall establish formally each permanent improvement project before actions of any sort which implement the project in any way may be undertaken and no expenditure of any funds for any services or for any other project purpose contracted for, delivered, or otherwise provided prior to the date of the formal action of the board authority to establish the project shall be approved. State agencies and institutions may advertise and interview for project architectural and engineering services for a pending project so long as the architectural and engineering contract is not awarded until after a state project number is assigned. After the committee has reviewed the form to be used to request the establishment of permanent improvement projects and has reviewed the time schedule for considering such requests as proposed by the board authority, requests to establish permanent improvement projects shall be made in such form and at such times as the board authority may require.


Printed Page 4044 . . . . . Tuesday, May 28, 2013

(B)   Any proposal to finance all or any part of any project using any funds not previously authorized specifically for the project by the General Assembly or using any funds not previously approved for the project by the board authority and reviewed by the committee shall be referred to the committee for review prior to approval by the board authority.

(C)   Any proposed revision of the scope or of the budget of an established permanent improvement project deemed by the board authority to be substantial shall be referred to the committee for its review prior to any final action by the board authority. In making their determinations regarding changes in project scope, the board authority, and the committee shall utilize the permanent improvement project proposal and justification statements, together with any supporting documentation, considered at the time the project was authorized or established originally. Any proposal to increase the budget of a previously approved project using any funds not previously approved for the project by the board authority and reviewed by the committee shall in all cases be deemed to be a substantial revision of a project budget which shall be referred to the committee for review. The committee shall be advised promptly of all actions taken by the board authority which approve revisions in the scope of or the budget of any previously established permanent improvement project not deemed substantial by the board authority.

(D)   For purposes of this chapter, with regard to all institutions of higher learning, permanent improvement project is defined as:

(1)   acquisition of land, regardless of cost, with staff level review of the committee and the Budget and Control Board, Capital Budget Office State Fiscal Accountability Authority, up to two hundred fifty thousand dollars;

(2)   acquisition, as opposed to the construction, of buildings or other structures, regardless of cost, with staff level review of the committee and the Budget and Control Board, Capital Budget Office State Fiscal Accountability Authority, up to two hundred fifty thousand dollars;

(3)   work on existing facilities for any given project including their renovation, repair, maintenance, alteration, or demolition in those instances in which the total cost of all work involved is one million dollars or more;

(4)   architectural and engineering and other types of planning and design work, regardless of cost, which is intended to result in a


Printed Page 4045 . . . . . Tuesday, May 28, 2013

permanent improvement project. Master plans and feasibility studies are not permanent improvement projects and are not to be included;

(5)   capital lease purchase of a facility acquisition or construction in which the total cost is one million dollars or more;

(6)   equipment that either becomes a permanent fixture of a facility or does not become permanent but is included in the construction contract shall be included as a part of a project in which the total cost is one million dollars or more; and

(7)   new construction of a facility that exceeds a total cost of five hundred thousand dollars.

(E)   Any permanent improvement project that meets the above definition must become a project, regardless of the source of funds. However, an institution of higher learning that has been authorized or appropriated capital improvement bond funds, capital reserve funds or state appropriated funds, or state infrastructure bond funds by the General Assembly for capital improvements shall process a permanent improvement project, regardless of the amount.

(F)   For purposes of establishing permanent improvement projects, Clemson University Public Service Activities (Clemson-PSA) and South Carolina State University Public Service Activities (SC State-PSA) are subject to the provisions of this chapter.   Section 2-47-55.   (A)   All state agencies responsible for providing and maintaining physical facilities are required to submit a Comprehensive Permanent Improvement Plan (CPIP) to the Joint Bond Review Committee, and the Budget and Control Board authority. The CPIP must include all of the agency's permanent improvement projects anticipated and proposed over the next five years beginning with the fiscal year starting July 1 after submission. The purpose of the CPIP process is to provide the board authority, and the committee with an outline of each agency's permanent improvement activities for the next five years. Agencies must submit a CPIP to the committee, and the board authority on or before a date to be determined by the committee, and the board authority. The CPIP for each higher education agency, including the technical colleges, must be submitted through the Commission on Higher Education which must review the CPIP and provide its recommendations to the board authority, and the committee. The board authority, and the committee must approve the CPIP after submission and may develop policies and procedures to implement and accomplish the purposes of this section.


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(B)   The State shall define a permanent improvement only in terms of capital improvements, as defined by generally accepted accounting principles, for reporting purposes to the State.

Section 2-47-56.   Each state agency and institution may accept gifts-in-kind for architectural and engineering services and construction of a value less than two hundred fifty thousand dollars with the approval of the Commission of Higher Education or its designated staff, the director of the Division of General Services department, and the Joint Bond Review Committee or its designated staff. No other approvals or procedural requirements, including the provisions of Section 11-35-10, may be imposed on the acceptance of such gifts.

Section 2-47-60.   The Joint Bond Review Committee is hereby authorized and directed to regulate the starting date of the various projects approved for funding through the issuance of state highway bonds so as to ensure that the sources of revenue for debt service on such bonds shall be sufficient during the current fiscal year."

  Subpart 3

SECTION   27.   A.     (1)   The Insurance Reserve Fund, is transferred to the State Fiscal Accountability Authority on July 1, 2015, as a division of the authority.

(2)   The Insurance Reserve Fund, transferred to the authority shall administer and perform all administrative and operational functions of the Office of Insurance Services, including the Insurance Reserve Fund, except that the Attorney General of this State must continue to approve the attorneys-at-law retained to represent the clients of the Insurance Reserve Fund in the manner provided by law.

B.     Section 1-11-140 of the 1976 Code is amended to read:

"Section 1-11-140.   (A)   The State Budget and Control Board Fiscal Accountability Authority, through the Insurance Reserve Fund, is authorized to provide insurance for the State, its departments, agencies, institutions, commissions, boards, and the personnel employed by the State in its departments, agencies, institutions, commissions, and boards so as to protect the State against tort liability and to protect these personnel against tort liability arising in the course of their employment. The insurance also may be provided for physicians or dentists employed by the State, its departments, agencies, institutions, commissions, or boards against any tort liability arising out of the rendering of any professional services as a physician or dentist for which no fee is charged or professional services rendered of any type whatsoever so long as any fees received are directly payable to the employer of a covered physician or dentist, or to any practice plan


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authorized by the employer whether or not the practice plan is incorporated and registered with the Secretary of State; provided, any insurance coverage provided by the Budget and Control Board authority may be on the basis of claims made or upon occurrences. The insurance also may be provided for students of high schools, South Carolina Technical Schools, or state-supported colleges and universities while these students are engaged in work study, distributive education, or apprentice programs on the premises of private companies. Premiums for the insurance must be paid from appropriations to or funds collected by the various entities, except that in the case of the above-referenced students in which case the premiums must be paid from fees paid by students participating in these training programs. The board authority has the exclusive control over the investigation, settlement, and defense of claims against the various entities and personnel for whom it provided insurance coverage and may promulgate regulations in connection therewith.

(B)   Any political subdivision of the State including, without limitations, municipalities, counties, and school districts, may procure the insurance for itself and for its employees in the same manner provided for the procurement of this insurance for the State, its entities, and its employees, or in a manner provided by Section 15-78-140.

(C)   The procurement of tort liability insurance in the manner provided is the exclusive means for the procurement of this insurance.

(D)   The State Budget and Control Board authority, through the Office of Insurance Services Insurance Reserve Fund, also is authorized to offer insurance to governmental hospitals and any subsidiary of or other entity affiliated with the hospital currently existing or as may be established; and chartered, nonprofit, eleemosynary hospitals and any subsidiary of or other entity affiliated with the hospital currently existing or as may be established in this State so as to protect these hospitals against tort liability. Notwithstanding any other provision of this section, the procurement of tort liability insurance by a hospital and any subsidiary of or other entity affiliated with the hospital currently existing or as may be established supported wholly or partially by public funds contributed by the State or any of its political subdivisions in the manner herein provided is not the exclusive means by which the hospital may procure tort liability insurance.

(E)   The State Budget and Control Board authority, through the Office of Insurance Services Insurance Reserve Fund, is authorized to provide insurance for duly appointed members of the boards and


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employees of health system agencies, and for members of the State Health Coordinating Council which are created pursuant to Public Law 93-641.

(F)   The board authority, through the Office of Insurance Services Insurance Reserve Fund, is further authorized to provide insurance as prescribed in Sections 10-7-10 through 10-7-40, 59-67-710, and 59-67-790.

(G)   Documentary or other material prepared by or for the Office of Insurance Services Insurance Reserve Fund in providing any insurance coverage authorized by this section or any other provision of law which is contained in any claim file is subject to disclosure to the extent required by the Freedom of Information Act only after the claim is settled or finally concluded by a court of competent jurisdiction.

(H)   The board authority, through the Office of Insurance Services Insurance Reserve Fund, is further authorized to provide insurance for state constables, including volunteer state constables, to protect these personnel against tort liability arising in the course of their employment, whether or not for compensation, while serving in a law enforcement capacity."

C.     Section 15-78-140 of the 1976 Code is amended to read:

"Section 15-78-140.   (a)   (Reserved)

(b)(A)   The political subdivisions of this State, in regard to tort and automobile liability, property, and casualty insurance shall procure insurance to cover these risks for which immunity has been waived by (1) the purchase of liability insurance pursuant to Section 1-11-140; or (2) the purchase of liability insurance from a private carrier; or (3) self-insurance; or (4) establishing pooled self-insurance liability funds, by intergovernmental agreement, which may not be construed as transacting the business of insurance or otherwise subject to state laws regulating insurance. A pooled self-insurance liability pool is authorized to purchase specific and aggregate excess insurance. A pooled self-insurance liability fund must provide liability coverage for all employees of a political subdivision applying for participation in the fund. If the insurance is obtained other than pursuant to Section 1-11-140, it must be obtained subject to the following conditions:

(1)   if the political subdivision does not procure tort liability insurance pursuant to Section 1-11-140, it must also procure its automobile liability and property and casualty insurance from other sources and shall not procure these coverages through the Budget and Control Board Insurance Reserve Fund;


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(2)   if a political subdivision procures its tort liability insurance, automobile liability insurance, or property and casualty insurance through the Budget and Control Board Insurance Reserve Fund, all liability exposures of the political subdivision as well as its property and casualty insurance must be insured with the Budget and Control Board Insurance Reserve Fund;

(3)   if the political subdivision, at any time, procures its tort liability, automobile liability, property, or casualty insurance other than through the Budget and Control Board Insurance Reserve Fund and then subsequently desires to obtain this coverage with the Budget and Control Board Insurance Reserve Fund, notice of its intention to so obtain this subsequent coverage must be provided the Budget and Control Board Insurance Reserve Fund at least ninety days prior to the beginning of the coverage with the State Budget and Control Board Insurance Reserve Fund. The other lines of insurance that the political subdivision is required to procure from the board fund are not required to commence until the coverage for that line of insurance expires. Any political subdivision may cancel all lines of insurance with the State Budget and Control Board Insurance Reserve Fund if it gives ninety days' notice to the board fund. The Budget and Control Board Insurance Reserve Fund may negotiate the insurance coverage for any political subdivision separate from the insurance coverage for other insureds;

(4)   if any political subdivision cancels its insurance with the Budget and Control Board Insurance Reserve Fund, it is entitled to an appropriate refund of the premium, less reasonable administrative cost.

(c)(B)   For any claim filed under this chapter, the remedy provided in Section 15-78-120 is exclusive. The immunity of the State and its political subdivisions, with regard to the seizure, execution, or encumbrance of their properties is reaffirmed."

  Subpart 4

SECTION   28.   A.   Section 1-11-440 of the 1976 Code is amended to read:

"Section 1-11-440.   (A)   The State must defend the members of the State Budget and Control Board State Fiscal Accountability Authority and the Director of the Department of Administration against a claim or suit that arises out of or by virtue of their performance of official duties on behalf of the board authority or the department, as applicable, and must indemnify these members them for a loss or judgment incurred by them as a result of the claim or suit, without regard to whether the claim or suit is brought against them in their individual or official


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capacities, or both. The State must defend officers and management employees of the board authority, and legislative employees performing duties for board the authority's members or the department, and the department's officers and management employees against a claim or suit that arises out of or by virtue of the performance of official duties unless the officer, management employee, or legislative employee was acting in bad faith and must indemnify these officers, management employees, and legislative employees for a loss or judgment incurred by them as a result of such claim or suit, without regard to whether the claim or suit is brought against them in their individual or official capacities, or both. This commitment to defend and indemnify extends to members of the authority, the authority's officers and management employees, officers, the department's director and officers and management employees, and legislative employees after they have left their employment with the board authority, or the General Assembly, as applicable, or the department, as applicable, if the claim or suit arises out of or by virtue of their performance of official duties on behalf of the board their employer.

(B)   The State must defend the members of the Retirement Systems Investment Panel established pursuant to Section 16, Article X of the Constitution of this State and Section 9-16-310 against a claim or suit that arises out of or by virtue of their performance of official duties on behalf of the panel and must indemnify these members for a loss or judgment incurred by them as a result of the claim or suit, without regard to whether the claim or suit is brought against them in their individual or official capacities, or both. This commitment to defend and indemnify extends to members of the panel after they have left their service with the panel if the claim or suit arises out of or by virtue of their performance of official duties on behalf of the panel."

B.     1.   Section 11-18-20 of the 1976 Code, as added by Act 290 of 2010, is amended to read:

"Section 11-18-20.   (a)   'ARRA Bonds' mean:

(1)   recovery zone bonds authorized under Section 1401 of ARRA; and

(2)   Qualified Energy Conservation Bonds authorized under Section 301(a) of Tax Extenders and Alternative Minimum Tax Relief Act of 2008, Pub. L. 110-343, 122 Stat. 1365 (2008) as amended by Section 112 of ARRA.

(b)   'Board' means the South Carolina Budget and Control Board State Fiscal Accountability Authority's governing board.

(c)   'Code' means the Internal Revenue Code of 1986, as amended.


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(d)   'Local Government' means each county and municipality that received an allocation of Volume Cap pursuant to the Code and IRS Notice 2009-50.

(e)   'Other federal bonds' mean any such bond, whether tax--exempt, taxable or tax credit, created after the date hereof whereby a volume cap limitation is proscribed under the Code.

(f)   'Qualified energy conservation bond' means the term as defined in Section 54D(a) of the Code.

(g)   'Recovery zone' means the term as defined in Section 1400U-1(b) of the Code.

(h)   'Recovery zone economic development bond' means the term as defined in Section 1400U-2 of the Code.

(i)     'Recovery zone facility bond' means the term as defined in Section 1400U-3 of the Code.

(j)     'State' means the State of South Carolina.

(k)   'Volume Cap' means the amount or other limitation of ARRA Bonds allocated to each state and to counties and large municipalities within each state in accordance with Section 1400U-1(a)(4) of the Code, with respect to Recovery Zone Economic Development Bonds and Recovery Zone Facility Bonds, Section 54D(e)(1) of the Code, with respect to Qualified Energy Conservation Bonds, and any other section of the Code which imposes a volume cap limitation on any other Federal Bonds."

2.   The Code Commissioner is directed to change references in Chapter 18 , Title 11 of the 1976 Code from "State Budget and Control Board" or any similar derivation of this term to "State Fiscal Accountability Authority".

C.     The final paragraph of Section 11-27-10 of the 1976 Code is amended to read:

"'Ratification date' shall mean the effective date of New Article X. 'State board' shall mean the State Budget and Control Board governing body of the State Fiscal Accountability Authority. Any term defined in New Article X shall have the meanings therein given to such term."

D.     Chapter 31, Title 11 of the 1976 Code is amended by adding:

"Section 11-31-5.   For the purposes of this chapter, 'state board' shall mean the governing body of the State Fiscal Accountability Authority."

E.     Section 11-37-30 of the 1976 Code is amended to read:

"Section 11-37-30.   There is created a body politic and corporate known as the South Carolina Resources Authority. The authority is declared to be a public instrumentality of the State and the exercise by


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it of any power conferred in this chapter is the performance of an essential public function. The authority consists of the members of the State Budget and Control Board Fiscal Accountability Authority."

F.     Section 11-37-200(A) of the 1976 Code is amended to read:

"Section 11-37-200.   (A)   There is established by this section the Water Resources Coordinating Council within the State Fiscal Accountability Authority which shall establish the priorities for all sewer, wastewater treatment, and water supply facility projects addressed in this chapter, except as otherwise established by Section 48-6-40. The council shall consist of a representative of the Governor, the Director of the Department of Health and Environmental Control, the Director of the South Carolina Department of Natural Resources, the Director of the Division of Local Government of the Budget and Control Board State Fiscal Accountability Authority, the Secretary of Commerce, the Chairman of the Jobs Economic Development Authority, and the Chairman of the Joint Bond Review Committee. These representatives may designate a person to serve in their place on the council, and the Governor shall appoint the chairman from among the membership of the council for a one-year term. The council shall establish criteria for the review of applications for projects. Not less often than annually, the council shall determine its priorities for projects. The council after evaluating applications shall notify the authority of the priority projects. The South Carolina Jobs Economic Development Authority shall provide the staff to receive, research, investigate, and process applications for projects made to the coordinating council and assist in the formulating of priorities. Upon notification by the council, the authority shall proceed under the provisions of this chapter. The authority may consider applications for projects based upon the existence of a documented emergency consistent with regulations that may be promulgated by the authority. In determining which local governments are to receive grants, the local governments shall provide not less than a fifty percent match for any project. The authority may provide financing for the local matching funds on terms and conditions determined by the authority."

G.     Section 11-38-20(A) of the 1976 Code is amended to read:

"(A) The State Budget and Control Board Fiscal Accountability Authority is authorized to provide for the issuance of capital improvement bonds in denominations of less than $1,000."

H.     1.   Section 11-40-20(A) of the 1976 Code is amended to read:

"(A)   There is created a body corporate and politic and an instrumentality of the State to be known as the South Carolina


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Infrastructure Facilities Authority. The members of the South Carolina State Budget and Control Board Rural Infrastructure Authority comprise the authority."

2.   Section 11-40-250 of the 1976 Code is amended to read:

"Section 11-40-250.   The Division of Local Government of the State Budget and Control Board Rural Infrastructure Authority shall provide staff and otherwise assist the authority in the administration of the fund and the performance of its functions under this chapter. The funds to be used for purposes of the Infrastructure Facilities Authority must come from funds appropriated to or made available to the Infrastructure Facilities Authority and not those funds of the Rural Infrastructure Authority, the administration of which also is a part of the responsibilities of the Division of Local Government as provided by law. In providing such assistance the Division of Local Government shall:

(1)   assist in the formulation, establishment, and structuring of programs undertaken by the authority pursuant to this chapter;

(2)   provide local governments information as to the programs of the authority and the procedures for obtaining the assistance intended by the chapter;

(3)   assist local governments in making application to such state and federal agencies, including the authority, as may be necessary or helpful in order to avail themselves of such programs;

(4)   assist the authority in analyzing and evaluating local government requests for assistance pursuant to this chapter;

(5)   assist in the structuring and negotiation of local government loan agreements and loan obligations and authority bonds;

(6)   administer the fund, including any accounts therein;

(7)   administer the authority's programs and loans, including monitoring compliance by local governments with any rules, regulations, or other requirements of the authority with respect to such programs and compliance with covenants and agreements made by local governments with respect to any loan agreement or loan obligation; and

(8)   provide such other assistance and perform such other duties as may be requested or directed by the authority."

I.   1.   The first paragraph of Section 11-41-70 of the 1976 Code is amended to read:

"Section 11-41-70.   Before issuing economic development bonds, the department or in the case of a tourism training infrastructure project or a national and international convention and trade show center, the State


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or agency, instrumentality, or political subdivision thereof that will own such project shall notify the Joint Bond Review Committee and the State Budget and Control Board Fiscal Accountability Authority of the following:"

2.   Sections 11-41-80, 11-41-90, and 11-41-100 of the 1976 Code are amended to read:

"Section 11-41-80.   Following the receipt of the notification presented pursuant to Section 11-41-70 and after approval review by the Joint Bond Review Committee, and approval by the State Budget and Control Board Fiscal Accountability Authority, by resolution duly adopted, shall effect the issue of bonds, or pending the issue of the bonds, effect the issue of bond anticipation notes pursuant to Chapter 17 of this title.

Section 11-41-90.   To effect the issuance of bonds, the State Budget and Control Board Fiscal Accountability Authority shall adopt a resolution providing for the issuance of bonds pursuant to the provisions of this chapter. The authorizing resolution must include:

(1)   a statement of whether the bonds are being authorized and issued pursuant to Section 11-41-50(A) or Section 11-41-50(B);

(2)   a schedule showing the aggregate of bonds issued, the annual principal payments required to retire the bonds, and the interest on the bonds;

(3)   the amount of bonds proposed to be issued;

(4)   a schedule showing future annual principal requirements and estimated annual interest requirements on the bonds to be issued; and

(5)   certificates evidencing that the provisions of Sections 11-41-50 and 11-41-60 have been or will be met.

Section 11-41-100.   The bonds must bear the date and mature at the time that the resolution provides, except that a bond may not mature more than thirty years from its date of issue. The bonds may be in the denominations, be payable in the medium of payment, be payable at the place and at the time, and be subject to redemption or repurchase and contain other provisions determined by the State Budget and Control Board Fiscal Accountability Authority before their issue. The bonds may bear interest payable at the times and at the rates determined by the State Budget and Control Board Fiscal Accountability Authority."

3.   Section 11-41-180 of the 1976 Code is amended to read:

"Section 11-41-180.   All procurements of infrastructure, as defined in Section 11-41-30 and owned by a research university, as defined in Section 11-51-30(5), shall be exempt from Title 11, Chapter 35, except that such research university must work in conjunction with the Budget


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and Control Board's State Fiscal Accountability Authority's Chief Procurement Officer to establish alternative procurement procedures. The research university shall submit its alternative procurement procedures to the State Budget and Control Board State Fiscal Accountability Authority for approval. Such The procurement process shall include provisions for audit and recertification."

J.     Section 11-43-510(2) of the 1976 Code is amended to read:

"(2)   'State board' means the State Budget and Control Board governing board of the State Fiscal Accountability Authority."

K.     1.   Section 11-45-30(10) of the 1976 Code is amended to read:

"(10)   'Lender' means a banking institution subject to the income tax on banks under Chapter 11 of Title 12, an insurance company subject to a state premium tax liability pursuant to Chapter 7 of Title 38, a captive insurance company regulated pursuant to Chapter 90 of Title 38, a utility regulated pursuant to Title 58, or a financial institution with proven experience in state-based venture capital transactions, pursuant to guidelines established by the authority. Both the guidelines and the lender must be approved by the State Budget and Control Board Fiscal Accountability Authority."

2.     Section 11-45-55(B) of the 1976 Code is amended to read:

"(B)   The authority shall issue tax credit certificates to each lender contemporaneously with each loan made pursuant to this chapter in accordance with any guidelines established by the authority pursuant to Section 11-45-100. The tax credit certificates must describe procedures for the issuance, transfer and redemption of the certificates, and related tax credits. These certificates also must describe the amounts, year, and conditions for redemption of the tax credits reflected on the certificates. Once a loan is made by a lender, the certificate issued to the lender shall be binding on the authority and this State and may not be modified, terminated, or rescinded. The form of the tax credit certificate must be approved by the State Budget and Control Board Fiscal Accountability Authority."

3.     Section 11-45-105 of the 1976 Code is amended to read:

"Section 11-45-105.   Any guideline issued by the authority pursuant to this chapter must be approved by the State Budget and Control Board Fiscal Accountability Authority."

L.     1.     Section 11-49-40 of the 1976 Code is amended to read:

"Section 11-49-40.   (A)   The authority is governed by a board, which that shall consist of five members as follows: the Governor or his designee, the State Treasurer, the Comptroller General, the Chairman of the Senate Finance Committee, and the Chairman of the House


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Ways and Means Committee. The Governor shall serve as chairman; and in the absence of the Governor, meetings must be chaired by the State Treasurer the members of the State Fiscal Accountability Authority. All members serve ex officio .

(B)   Members of the board serve without pay but are allowed the usual mileage, per diem, and subsistence as provided by law for members of state boards, committees, and commissions.

(C)   Members of the board and its employees, if any, are subject to the provisions of Chapter 13, Title 8, the Ethics, Government Accountability, and Campaign Reform Act, and Chapter 17, of Title 2, relating to lobbying.

(D)   To the extent that administrative assistance is needed for the functions and operations of the authority, the board may obtain this assistance from the Office of the State Treasurer and the State Budget and Control Board Fiscal Accountability Authority, and any successor agency, office, or division, each of which must provide the assistance requested by the board at no cost to the board or to the authority other than for expenses incurred and paid to entities that are not agencies or departments of the State. The board must retain ultimate responsibility and provide proper oversight for the implementation of this chapter.

(E)   The board shall exercise the powers of the authority. A majority of the members of the board constitutes a quorum for the purpose of conducting all business. The board shall determine the number of personnel it requires, their compensation, and duties."

M.   1.   Section 11-51-30(6) of the 1976 Code is amended to read:

"(6)   'State board' means the South Carolina State Budget and Control Board governing board of the State Fiscal Accountability Authority."

2.     Section 11-51-125(A)(2) of the 1976 Code is amended to read:

"(2)   thirty-five percent of the total twelve percent must be allocated by FTE student enrollment from the prior academic year at each eligible institution.

The Research Centers of Excellence Review Board has no jurisdiction over these projects and no matching requirement is imposed for these projects. The Joint Bond Review Committee must review and the State Budget and Control Board Fiscal Accountability Authority must approve all projects."

3.     Section 11-51-190 of the 1976 Code is amended to read:

"Section 11-51-190.   The research universities while engaging in projects related to this act shall be exempt from the state procurement process, except such that the research universities must work in


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conjunction with the Budget and Control Board's State Fiscal Accountabily Authority's Chief Procurement Officer to establish alternate procurement procedures, and must submit a procurement process to the State Commission on Higher Education to be forwarded to the State Budget and Control Board Fiscal Accountability Authority for approval. These processes shall include provisions for audit and recertification."

N.     Section 59-109-30(1) of the 1976 Code is amended to read:

"(1)   'Authority' means the State Budget and Control Board Fiscal Accountability Authority, acting as the Educational Facilities Authority for Private Nonprofit Institutions of Higher Learning and serving ex officio."

O.     Section 59-109-40 of the 1976 Code is amended to read:

"Section 59-109-40.   There is hereby created a body politic and corporate to be known as the 'Educational Facilities Authority for Private Nonprofit Institutions of Higher Learning,' hereinafter in this chapter called the Authority. The Authority is constituted a public instrumentality and the exercise by the Authority of the powers conferred by this chapter shall must be deemed and held to be the performance of an essential public function. The Authority shall consist of the members from time to time of the State Budget and Control Board Fiscal Accountability Authority, ex officio; and all the functions and powers of the Authority are hereby granted to the State Budget and Control Board Fiscal Accountability Authority, as an incident of its functions in connection with the public finances of the State."

P.     1.   Section 59-115-20(1) of the 1976 Code is amended to read:

"(1)   'Authority' shall mean means the State Budget and Control Board of South Carolina Fiscal Accountability Authority, acting as the State Education Assistance Authority."

2.   Section 59-115-40 of the 1976 Code is amended to read:

"Section 59-115-40.   There is hereby created a body politic and corporate to be known as the State Education Assistance Authority (Authority). The Authority is hereby declared to be a public instrumentality of the State and the exercise by the Authority of any power conferred herein shall be deemed and held to be the performance of an essential public function. The Authority shall consist of the members, from time to time, of the State Budget and Control Board of South Carolina Fiscal Accountability Authority, ex officio."

SECTION   29.   A.     Section 11-35-310(2) of the 1976 Code is amended to read:


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"(2)   'Board' means Budget and Control Board governing board of the State Fiscal Accountability Authority."

  Part IX

Naval Base Museum Authority

SECTION   30.   (A)   Notwithstanding any other provision of law, in addition to the present members of the Charleston Naval Complex Redevelopment Authority, as created by gubernatorial executive order pursuant to Section 31-12-40 of the 1976 Code, there shall be four additional members, two appointed by the Speaker of the House of Representatives and two appointed by the President Pro Tempore of the Senate. These four additional members shall each serve for terms of four years and until their successors are appointed and qualify. Vacancies shall be filled for the remainder of the unexpired term by appointment in the same manner of original appointment.

(B)   These four additional members shall serve as members of the Charleston Naval Complex Redevelopment Authority with the same powers, duties, and responsibilities of other such members as provided by law. In addition, these four members, together with the gubernatorial appointees to the Charleston Naval Complex Redevelopment Authority, shall also constitute the Charleston Navy Base Museum Authority as a division of the Charleston Naval Redevelopment Authority. Service as a member of the Navy Base Museum Authority is considered an additional and supplemental function and duty of those specified members of the Naval Complex Redevelopment Authority and is not considered another office of honor or profit of this State. The Navy Base Museum Authority shall select from among its members a chairman and such other officers as they consider necessary.

(C)   The Naval Base Museum Authority shall become operative upon the signing of a Memorandum of Understanding between the RDA and the Hunley Commission. With respect to the Hunley project, the MOU must provide for the Naval Base Museum Authority division of the RDA to undertake and comply with the duties, responsibilities, powers, and functions of the Hunley Commission as specified in Sections 54-7-100 and 54-7-110 of the 1976 Code, and as otherwise provided by law. The Navy Base Museum Authority shall possess and may exercise all powers and authority granted to the Hunley Commission by specific statutory reference in Sections 54-7-100 and 54-7-110.

(D)   Notwithstanding the provisions of this act, the provisions of this section take effect upon approval by the Governor.


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SECTION   31.   A.   Title 1 of the 1976 Code is amended by adding:

  "CHAPTER 36

Information Security

Article 1

Division of Information Security

Section 1-36-10.   (A)   There is hereby established within the Budget and Control Board the Division of Information Security that is dedicated to the protection of the State's information and cyber security infrastructure, including, but not limited to, the identification and mitigation of vulnerabilities, deterring and responding to cyber events, and promoting cyber security awareness within the State. The division also shall be responsible for statewide policies, standards, programs and services relating to cyber security and information systems, including the statewide coordination of critical infrastructure information. The divison shall consist of the Chief Information Security Officer, who is the director of the divison, and a staff employed by the Chief Information Security Officer as necessary to carry out the duties of the division and as are authorized by law. The Chief Information Security Officer, with advice and assistance of the Office of Human Resources of the Budget and Control Board, shall fix the salaries of all staff subject to the funds authorized in the annual general appropriations act. Subject to funding, the salaries of the staff involved with information technology must be competitive with the private sector. The compensation plan must be unique to information technology employees working at the Division of Information Security and consider all factors including areas requiring specialized skill sets, and should include components necessary to recruit and retain highly qualified information technology professionals to the State.

(B)   After consulting with the Division of State Information Technology of the Budget and Control Board, the Governor shall appoint the Chief Information Security Officer with the advice and consent of the Senate for a term of four years, except that the initial appointment shall expire June 30, 2017. The Governor may reappoint the Chief Information Security Officer for additional terms. The Chief Information Security Officer's compensation must not be reduced during the Chief Information Security Officer's uninterrupted continued tenure in office.

(C)   The Chief Information Security Officer may be removed from office only by the Governor as provided in Section 1-3-240(C).

Section 1-36-20.   In consultation with appropriate agency heads, the Chief Information Security Officer shall develop cyber security


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policies, guidelines, and standards, and shall install and administer state data security systems on the state's computer facilities consistent with these policies, guidelines, standards, and state law to ensure the integrity of computer-based and other data and to ensure applicable limitations on access to data. The Chief Information Security Officer is responsible for overall security of state agency networks connected to the Internet. Each agency or agency head is responsible for the security of the agency's data within the guidelines of the established policy.

Section 1-36-30.   In developing policies, guidelines, and standards, the Chief Information Security Officer must consider:

(1)   developing an information technology governance structure that is inclusive of all agencies;

(2)   adopting control objectives to manage, implement, and maintain information technology systems;

(3)   developing security metrics that accurately measure unwanted intrusions, security breaches, penetrations, and vulnerabilities;

(4)   developing security standards based on a full risk assessment of critical infrastructure vulnerabilities; and

(5)   developing a method for the sharing of security information sharing and analysis.

Section 1-36-40.     (A)   All agencies must adopt and implement the policies, guidelines, and standards developed by the Chief Information Security Officer.

(B)   Upon request of the Chief Information Security Officer for information or data, all agencies must fully cooperate with and furnish the Chief Information Security Officer with all documents, reports, answers, records, accounts, papers, and other necessary data and documentary information to perform the division's mission and to exercise the division's functions, powers, and duties.

(C)   The Chief Information Security Officer shall coordinate at least one training conference annually for state agency information security officers and shall receive an appropriation for the conference in an amount sufficient to attract the top cyber security professionals in the country to speak and to produce training materials for attendees.

Section 1-36-50.   For purposes of this chapter, 'Agency' means all state agencies, departments, boards, commissions, institutions, and authorities, except the legislative and judicial departments of state government, that collect or maintain personally identifiable information as defined in Section 12-4-352. 'Agency' also includes all political subdivisions of this State, including school districts, and public


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authorities that collect or maintain personally identifiable information as defined in Section 12-4-352.

Section 1-36-60.   The department may promulgate regulations necessary to implement the provisions of this chapter and to accomplish the objectives set forth in Section 1-36-20. The regulations may include penalties for any agency in violation of Section 1-36-40.

  Article 3

Technology Investment Council

Section 1-36-310.   There is hereby established a Technology Investment Council. The council shall consist of seven members, appointed as follows:

(1)   the Director of the Budget and Control Board, Division of State Information Technology, who shall serve as chairman;

(2)   the Chief Information Security Officer;

(3)   five members, with one appointment made by each: the Governor, President Pro Tempore of the Senate, Speaker of the House of Representatives, Chairman of the Senate Finance Committee, and Chairman of the House Ways and Means Committee.

Section 1-36-320.   The duties of the council are as follows:

  (1)   adopt policies and procedures used to develop, review, and annually update a statewide technology plan and provide it to the Governor, Office of State Budget, and the General Assembly;

(2)   by October 1, 2013, and each October first thereafter, the council shall provide the Governor, the Legislative Fiscal Office, the Executive Budget and Strategic Planning Office, and the General Assembly with a statewide technology plan. The plan shall discuss the State's overall technology needs over a multiyear period and the potential budgetary implications of meeting those needs;

(3)   by November fifteenth of each year, the council shall make recommendations to the Governor and General Assembly regarding the funding of technology for the next fiscal year;

(4)   enforce active project management, review the progress of current projects to determine if they are on budget and have met their project milestones, and when necessary, recommend the termination of projects; and

(5)   develop minimum technical standards, guidelines, and architectures as required for state technology projects.

Section 1-36-330.   To assist the council and Department of Information Security in fulfilling its duties, each agency shall name an individual to act as that agency's 'information security officer'. It is the intent of this section that such information security officers will act


Printed Page 4062 . . . . . Tuesday, May 28, 2013

as the primary points of contact for appropriate communications between the council and the Department of Information Security."

D.     Notwithstanding the general effective date of this act, this SECTION takes effect July 1, 2013.

SECTION   32.   A.   Section 2-65-15(4) of the 1976 Code is amended to read:

"(4)   "Board" means the State Budget and Control Board Executive Budget and Strategic Planning Office."

B.   Chapter 65, Title 2 of the 1976 Code is amended by adding:

"Section 2-65-130.   If the board does not authorize an expenditure proposal then the proposal must be forwarded to the State Fiscal Accountability Authority for consideration. The authority may overturn the decision by the board and authorize the expenditures requested in the proposal if the authority finds that the expenditure proposal meets the standards for approval provided in this chapter."

  Part X

Performance Audit, Other Transfers and Provisions,

and Effective Date

SECTION   33.   (A)   The name of the Office Legislative Printing, Information and Technology Systems is changed to the Legislative Services Agency. References in the 1976 Code to the "Office of Legislative Printing, Information and Technology Systems" or "LPITS" mean the "Legislative Services Agency" or "LSA", as appropriate. The Code Commissioner is directed to change references in the 1976 Code to conform to this name change, and such changes must be included in the next printing of replacement volumes of or cumulative supplements to the 1976 Code.

(B)(1)   The Code Commissioner is directed to change or correct all references to these offices of the former Budget and Control Board in the 1976 Code, Office of the Governor, or other agencies to reflect the transfer of them to the Department of Administration or other entities, including those newly created by the provisions of this act. References to the names of these offices in the 1976 Code or other provisions of law are considered to be and must be construed to mean appropriate references.

(2)   On or before July 1, 2014, the Code Commissioner also shall prepare and deliver a report to the President Pro Tempore of the Senate and the Speaker of the House of Representatives concerning appropriate and conforming changes to the 1976 Code of Laws reflecting the provisions of this act.


Printed Page 4063 . . . . . Tuesday, May 28, 2013

(C)(1)   No later than December 31, 2015, the State Fiscal Accountability Authority shall undertake a strategic sourcing initiative through which it must analyze the state's current spending on various categories of goods and services, identify the greatest opportunities to leverage the state's purchasing power, and prioritize the state's subsequent efforts to maximize achievable savings.

(2)   No later than June 30, 2016, the State Fiscal Accountability Authority shall submit a report to the Governor, the President Pro Tempore of the Senate, and the Speaker of the House of Representatives to recommend changes to statutes, policies, and procedures governing state procurement activities. The recommendations shall be formulated in order to reduce costs, accelerate processing times, and improve services provided to state agencies and their business partners.

SECTION   34.   A.     During the year 2020, the Legislative Audit Council shall conduct a performance review of the provisions of this act to determine its effectiveness and achievements with regard to the more efficient performance of the functions and duties of the various agencies provided for herein and the cost savings and benefits to the State.

B.     Section 2-15-50(b)(2) of the 1976 Code is amended to read:

"(2)   the effectiveness of organizations, programs, activities, or functions and whether these organizations, programs, activities, or functions should be continued, revised, or eliminated;"

SECTION   35.   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   36.   Unless otherwise provided, this act takes effect July 1, 2015. However, beginning on January 1, 2014, the appropriate officials of the executive, legislative, and judicial branches involved with the implementation of the provisions of this act including the transfer of divisions, offices, and personnel to other agencies, the implementation of new offices or divisions within agencies, and the negotiation and execution of necessary agreements relating to this act


Printed Page 4064 . . . . . Tuesday, May 28, 2013

such as memorandums of understanding may begin undertaking and executing these responsibilities so that the provisions of this act may be fully implemented on July 1, 2015, with the appropriations contained in the 2014-2015 general appropriations act to the fullest extent possible being reflective of the transfers, realignments and restructuring provided by this act.   /

Renumber sections to conform.

Amend title to conform.

Senator LARRY MARTIN spoke on the amendment.

Senator SCOTT spoke on the amendment.

Senator LARRY MARTIN moved to lay the amendment on the table.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 28; Nays 13

AYES

Alexander                 Bennett                   Bright
Bryant                    Campbell                  Cleary
Corbin                    Courson                   Cromer
Davis                     Fair                      Gregory
Grooms                    Hayes                     Hembree
Leatherman                Lourie                    Martin, Larry
Martin, Shane             Massey                    O'Dell
Peeler                    Shealy                    Sheheen
Thurmond                  Turner                    Verdin
Young

Total--28

NAYS

Allen                     Coleman                   Ford
Hutto                     Johnson                   Malloy
McElveen                  McGill                    Nicholson
Reese                     Scott                     Setzler
Williams

Total--13


Printed Page 4065 . . . . . Tuesday, May 28, 2013

The amendment was laid on the table.

Senator SCOTT proposed the following amendment (DKA\22C003.DKA.SD13), which was tabled:

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

/ SECTION   1.   This act may be cited as the "South Carolina Restructuring Act of 2013".

  Part II

Budget and Control Board Abolished

SECTION   2.   Effective July 1, 2015, the State Budget and Control Board, and its related divisions and offices, is abolished and its functions, powers, duties, responsibilities, and authority, except as otherwise provided by law:

(1)   related to the issuance of bonds and bonding authority, generally found in Title 11 of the 1976 Code but also contained in certain other provisions of South Carolina law are devolved upon the State Fiscal Accountability Authority;

(2)   related to grants, loans, and other forms of financial assistance to other entities, generally found in Title 11 of the 1976 Code but also contained in certain other provisions of South Carolina law, exercised by the former Budget and Control Board are devolved upon the State Fiscal Accountability Authority; and

(3)   related to executive functions within the former Budget and Control Board not identified in items (1) or (2) are devolved upon the Department of Administration.

  Part III

Establishing the Department of Administration

SECTION   3.   Section 1-30-10(A) of the 1976 Code, as last amended by Act 146 of 2010, is further amended to read:

"(A)   There are hereby created, within the executive branch of the state government, the following departments:

1.   Department of Administration

2.   Department of Agriculture

2.3.   Department of Alcohol and Other Drug Abuse Services

3.4.   Department of Commerce

4.5.   Department of Corrections

5.6.   Department of Disabilities and Special Needs

6.7.   Department of Education

7.8.   Department of Health and Environmental Control

8.9.   Department of Health and Human Services


Printed Page 4066 . . . . . Tuesday, May 28, 2013

9.10.   Department of Insurance

10.11.   Department of Juvenile Justice

11.12.   Department of Labor, Licensing and Regulation

12.13.   Department of Mental Health

14.   Department of Motor Vehicles

13.15.   Department of Natural Resources

14.16.   Department of Parks, Recreation and Tourism

15.17.   Department of Probation, Parole and Pardon Services

16.18.   Department of Public Safety

17.19.   Department of Revenue

18.20.   Department of Social Services

19.21.   Department of Transportation

20.22.   Department of Employment and Workforce."

SECTION   4.   A.   Section 1-11-10 of the 1976 Code is amended to read:

"Section 1-11-10.   (A)   The State Budget and Control Board shall be comprised of the Governor, ex officio, who shall be chairman, the State Treasurer, ex officio, the Comptroller General, ex officio, and the chairman of the Senate Finance Committee, ex officio, and the chairman of the Ways and Means Committee of the House of Representatives, ex officio. There is hereby created, within the executive branch of the state government, the Department of Administration, headed by a director appointed by the Governor upon the advice and consent of the Senate who may only be removed pursuant to Section 1-3-240(B). Effective July 1, 2015, the following offices, divisions, or components of the former State Budget and Control Board, Office of the Governor, or other agencies are transferred to, and incorporated into, the Department of Administration:

(1)   the Division of General Services, including Business Operations, Facilities Management, State Building and Property Services, and Agency Services, including surplus property, intrastate mail, parking, state fleet management, except that the Division of General Services shall not be transferred to the Department of Administration until the Director of the Department of Administration enters into a memorandum of understanding with appropriate officials of applicable legislative and judicial agencies or departments meeting the requirements of this subsection. There shall be a single memorandum of understanding involving the Department of Administration and the legislative and judicial branches with appropriate officials of each to be signatories to the memorandum of understanding.


Printed Page 4067 . . . . . Tuesday, May 28, 2013

(a)   The memorandum of understanding shall provide for:

(i)     continued use of existing office space;

(ii)   a method for the allocation of new, additional, or different office space;

(iii)   adequate parking;

(iv)   a method for the allocation of new, additional, or different parking;

(v)   the provision of appropriate levels of electrical, mechanical, maintenance, energy management, fire protection, custodial, project management, safety and building renovation, and other services currently provided by the General Services Division of the State Budget and Control Board;

(vi)   the provision of water, electricity, steam, and chilled water to the offices, areas, and facilities occupied by the applicable agencies;

(vii)   the ability for each agency or department to maintain building access control for its allocated office space; and

(viii)   access control for the Senate and House chambers and courtrooms as appropriate.

(b)   The parties may modify the memorandum of understanding by mutual consent at any time.

(c)   The General Services Division must provide the services described in subsection (a) and any other maintenance and support, at a level that is greater than or equal to what is provided prior to the effective date of this act, to each building on the Capitol Complex, including the Supreme Court, without charge. The General Services Division must coordinate with the appropriate officials of applicable legislative and judicial agencies or departments when providing these services to the buildings and areas controlled by those agencies;

(2)   the State Office of Human Resources;

(3)   the Executive Budget and Strategic Planning Office as established in Article 2, Title 1;

(4)   the Guardian Ad Litem Program as established in Article 5, Chapter 11, Title 63;

(5)   the Office of Economic Opportunity, the office designated by the Governor to be the state administering agency that is responsible for the receipt and distribution of the federal funds as allocated to South Carolina for the implementation of Title VI, Public Law 97-35;

(6)   the Developmental Disabilities Council as established by Executive Order in 1971 and reauthorized in 2010;


Printed Page 4068 . . . . . Tuesday, May 28, 2013

(7)   the Continuum of Care for Emotionally Disturbed Children as established in Article 13, Chapter 11, Title 63;

(8)   the Division for Review of the Foster Care of Children as established by Article 7, Chapter 11, Title 63;

(9)   the Children's Case Resolution System as established by Article 11, Chapter 11, Title 63;

(10)   the Client Assistance Program;

(11)   the Division of Veterans' Affairs as established by Chapter 11, Title 25;

(12)   the Commission on Women as established by Chapter 15, Title 1;

(13)   the Office of Victims Assistance, including the South Carolina Victims Advisory Board and the Victims Compensation Fund, both as established by Article 13, Chapter 3, Title 16;

(14)   the Crime Victims' Ombudsman as established by Article 16, Chapter 3, Title 16;

(15)   the Governor's Office of Ombudsman;

(16)   the Division of Small and Minority Business Contracting and Certification, as established pursuant to Article 21, Chapter 35, Title 11, formerly known as the Small and Minority Business Assistance Office;

(17)   the Division of State Information Technology, including the Data Center, Telecommunications and Information Technology Services, the South Carolina Enterprise Information System, and the Division of Information Security; and

(18)   the Nuclear Advisory Council as established in Article 9, Chapter 7, Title 13.

(B)(1)   The Division of State Information Technology must submit the Statewide Strategic Information Technology Plan to the Director of the Department of Administration by September 1, 2015, and biennially thereafter. The director shall review the Statewide Strategic Information Technology Plan and recommend to the Governor priorities for state government enterprise information technology projects and resource requirements. The director shall also review information technology spending by state agencies and evaluate whether greater efficiencies, more effective services, and cost savings can be achieved through streamlining, standardizing, and consolidating agency information technology.

(2)   All oversight concerning the South Carolina Enterprise Information System must remain as provided in Chapter 53, Title 11.


Printed Page 4069 . . . . . Tuesday, May 28, 2013

(C)   The Department of Administration shall use the existing resources of each division, insofar as it promotes efficiency and effectiveness, transferred to the department including, but not limited to, funding, personnel, equipment, and supplies from the board's administrative support units, including, but not limited to, the Office of the Executive Director, Office of General Counsel, and the Office of Internal Operations. 'Funding' means state, federal, and other funds. Vacant FTE's at the State Budget and Control Board also may be used to fill needed positions at the department. No new FTE's may be assigned to the department without authorization from the General Assembly.

(D)   No later than December 31, 2015, the department's director shall submit a report to the President Pro Tempore of the Senate and the Speaker of the House of Representatives that contains an analysis of and recommendations regarding the most appropriate organizational placement for each component of the Office of Executive Policy and Programs as of the effective date of this act. The department shall solicit input from and consider the recommendation of affected constituencies while developing its report.

(E)   The Department of Administration shall, during the absence of the Governor from Columbia, be placed in charge of the records and papers in the executive chamber kept pursuant to Section 1-3-30."

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

"Section 1-11-20.   The functions of the State Budget and Control Board must be performed, exercised, and discharged under the supervision and direction of the board through three divisions, the Finance Division (embracing the work of the State Auditor, the former State Budget Commission, the former State Finance Committee and the former Board of Claims for the State of South Carolina), the Purchasing and Property Division (embracing the work of the former Commissioners of the Sinking Fund, the former Board of Phosphate Commissioners, the State Electrician and Engineer, the former Commission on State House and State House Grounds, the central purchasing functions, the former Surplus Procurement Division of the State Research, Planning and Development Board and the Property Custodian) and the Division of Personnel Administration (embracing the work of the former retirement board known as the South Carolina Retirement System and the administration of all laws relating to personnel), each division to consist of a director and clerical, stenographic and technical employees necessary, to be employed by the respective directors with the approval of the board. The directors of the


Printed Page 4070 . . . . . Tuesday, May 28, 2013

divisions must be employed by the State Budget and Control Board for that time and compensation as may be fixed by the board in its judgment. Effective July 1, 2015:

(A)   The South Carolina Confederate Relic Room and Military Museum is transferred from the State Budget and Control Board and is governed by the South Carolina Confederate Relic Room and Military Museum Commission, as established in Section 60-17-10.

(B)   The Board of Economic Advisors of the State Budget and Control Board is transferred to, and incorporated into, the State Fiscal Accountability Authority.

(C)   The Office of Research and Statistics of the Budget and Control Board is transferred to, and incorporated into, the State Fiscal Accountability Authority.

(D)   The State Energy Office is transferred from the State Budget and Control Board to the Office of Regulatory Staff.

(E)   The offices, divisions, or components of the State Budget and Control Board named in this subsection are transferred to, and incorporated into, the Rural Infrastructure Authority as established in Section 11-50-30. All functions, powers, duties, responsibilities, and authority vested in the agencies and authorities, including their governing boards, if any, named in this subsection are devolved upon the Rural Infrastructure Authorty and the authority shall constitute the agencies and authorities, including their governing boards, if any, named in this subsection:

(1)   South Carolina Infrastructure Facilities Authority as established in Chapter 40, Title 11;

(2)   Local Government Division in support of the local government loan program as established in Section 1-11-25;

(3)   South Carolina Water Quality Revolving Fund Authority in support of water quality projects and federal loan programs as established in Chapter 5, Title 48; and

(4)   Division of Regional Development as established in Section 11-42-40.

(F)   The regulation of minerals and mineral interests on public land, and the regulation of Geothermal Resources as provided in Chapter 9, Title 10 is transferred to, and incorporated into, the Department of Health and Environmental Control.

(G)   The Procurement Services Division of the State Budget and Control Board is transferred to, and incorporated into, the State Fiscal Accountability Authority.


Printed Page 4071 . . . . . Tuesday, May 28, 2013

(H)   The State Auditor is transferred to, and incorporated into, the State Fiscal Accountability Authority."

SECTION   5.   (A)   Where the provisions of this act transfer offices, or portions of offices, of the Budget and Control Board, Office of the Governor, or other agencies to the Department of Administration or other entities, including those newly created by the provisions of this act, the employees, authorized appropriations, and assets and liabilities of the transferred offices are also transferred to and become part of the Department of Administration or other entities, including those newly created by the provisions of this act. All classified or unclassified personnel employed by these offices on the effective date of this act, either by contract or by employment at will, shall become employees of the Department of Administration or other entities, including those newly created by the provisions of this act, with the same employment status, compensation, classification, and grade level, as applicable.

(B)   Regulations promulgated by these transferred offices as they existed under the former Budget and Control Board, Office of the Governor, or other agencies are continued and are considered to be promulgated by these offices under the Department of Administration or other entities, including those newly created by the provisions of this act.

(C)(1)   The Code Commissioner is directed to change or correct all references to these offices of the former Budget and Control Board in the 1976 Code, Office of the Governor, or other agencies to reflect the transfer of them to the Department of Administration or other entities, including those newly created by the provisions of this act. References to the names of these offices in the 1976 Code or other provisions of law are considered to be and must be construed to mean appropriate references.

(2)   On or before July 1, 2014, the Code Commissioner also shall prepare and deliver a report to the President Pro Tempore of the Senate and the Speaker of the House of Representatives concerning appropriate and conforming changes to the 1976 Code of Laws reflecting the provisions of this act.

  Part IV

Executive Budget and Strategic Planning Office

SECTION   6.   Chapter 3, Title 1 of the 1976 Code is amended by adding:

  "Article 2

Section 1-3-60.   (A)   There is established, within the Department of Administration, the Executive Budget and Strategic Planning Office


Printed Page 4072 . . . . . Tuesday, May 28, 2013

which shall support the Office of the Governor by conducting analysis, assist with strategic planning and recommendations concerning capital expenditures, implementing and monitoring the annual general appropriations act, and evaluating program performance.

(B)   The Executive Budget and Strategic Planning Office shall use the existing resources of the organizations transferred to the Department of Administration including, but not limited to, funding, personnel, equipment, and supplies. Vacant FTE's at the former State Budget and Control Board also may be used to fill needed positions for the office."

  Part V

Legislative Oversight of Executive Departments

SECTION   7.   A.     Subsections (B) through (H) of Section 1-30-10 of the 1976 Code are amended to read:

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

(i)     a director, and in the case of the Department of Commerce, the or a 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(B); 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, a seven member commission constituted in a manner provided by law, and a Secretary of Transportation appointed by and serving at the pleasure of the Governor.

(2)   In making appointments to boards and for department directors, an appointment for a governing authority of a department, race, gender, and other demographic factors should be considered to assure nondiscrimination, inclusion, and representation to the greatest extent possible of all segments of the population of this State; however, consideration of these factors in no way creates a cause of action or basis for an employee grievance for a person appointed or for a person who fails to be appointed. The Governor in making the appointments provided for by this section shall endeavor to appoint individuals who have demonstrated exemplary managerial skills in either the public or private sector.


Printed Page 4073 . . . . . Tuesday, May 28, 2013

(C)   Each department shall be organized into appropriate divisions subdivisions by the governing authority of the department through further consolidation or further subdivision. The power to organize and reorganize the department supersedes any provision of law to the contrary pertaining to individual divisions; provided, however, the into divisions lies with the General Assembly in furtherance of its mandate pursuant to Article XII of the South Carolina Constitution. The dissolution of any division must receive legislative approval by authorization included in the annual general appropriations act likewise be statutorily approved by the General Assembly.

Any other approval procedures for department reorganization in effect on the effective date of this act no longer apply.

(D)   The governing authority of a department is vested with the duty of overseeing, managing, and controlling the operation, administration, and organization of the department. The governing authority has the power to create and appoint standing or ad hoc advisory committees in its discretion or at the direction of the Governor to assist the department in particular areas of public concern or professional expertise as is deemed appropriate. Such committees shall serve at the pleasure of the governing authority and committee members shall not receive salary or per diem, but shall be entitled to reimbursement for actual and necessary expenses incurred pursuant to the discharge of official duties not to exceed the per diem, mileage, and subsistence amounts allowed by law for members of boards, commissions, and committees.

(E)   The governing authority of a department director may appoint deputy directors deputies to head the divisions of their department, with each deputy director managing one or more of the divisions; in the case of the Department of Commerce, the Secretary of Commerce may appoint a departmental executive director and also may appoint directors to manage the various divisions of the Department of Commerce. In making appointments race, gender, and other demographic factors should be considered to assure nondiscrimination, inclusion, and representation to the greatest extent possible of all segments of the population of this State; however, consideration of these factors in making an appointment in no way creates a cause of action or basis for an employee grievance for a person appointed or for a person who fails to be appointed. Deputy directors Deputies serve at the will and pleasure of the department director governing authority. The deputy director of a division is vested with the duty of overseeing, managing, and controlling the operation and administration of the division under the direction and control of the department director


Printed Page 4074 . . . . . Tuesday, May 28, 2013

department's governing authority and performing such other duties as delegated by the department director department's governing authority.

(F)(1)   In the event a vacancy should occur occurs in the office of department director the department's governing authority at a time when the General Assembly is not in session, the Governor may temporarily fill the vacancy pursuant to Section 1-3-210.

(2)   Notwithstanding the provisions of subitem (F)(1), as of July 1, 1993, for each department created pursuant to the provisions of this act which must be governed by a single director, an initial interim director shall serve as the governing authority, serving until January 31, 1994. During that period the following departments must be governed by the director or interim director of the following agencies as of June 30, 1993:

(i)     Department of Corrections, created pursuant to Section 1-30-30, by the director of the former Department of Corrections;

(ii)   Department of Juvenile Justice created pursuant to Section 1-30-60, by the interim director of the former Department of Youth Services;

(iii)   Department of Probation, Parole, and Pardon Services created pursuant to Section 1-30-85 by the director of the former Department of Probation, Pardon and Parole;

(iv)   Department of Social Services created pursuant to Section 1-30-100, by the director of the former Department of Social Services;

(v)   Department of Parks, Recreation and Tourism created pursuant to Section 1-30-80, by the director of the former Department of Parks, Recreation and Tourism;

(vi)   Department of Commerce created pursuant to Section 1-30-25, by the Executive Director of the former State Development Board;

(vii)   Department of Alcohol and Other Drug Abuse Services created pursuant to Section 1-30-20, by the director of the former South Carolina Commission on Alcohol and Drug Abuse.

(3)   As of December 1, 1993, the Governor must submit to the Senate the names of appointees to the permanent department directorships for those departments created on July 1, 1993 and February 1, 1994. If no person has been appointed and qualified for a directorship as of February 1, 1994, the Governor may appoint an interim director to serve pursuant to the provisions of (F)(1).

(4)   Notwithstanding provisions of (2) and (3) to the contrary, the initial interim director of the Department of Public Safety shall be appointed by the Budget and Control Board. The initial interim


Printed Page 4075 . . . . . Tuesday, May 28, 2013

director may be appointed as the permanent director of the department by the Governor.

(G)(1)   Department and agency governing authorities must, no later than the first day of the 1994 2015 Legislative Session and every twelve months thereafter for the following three years, submit to the Governor and General Assembly reports giving detailed and comprehensive recommendations for the purposes of merging or eliminating duplicative or unnecessary divisions, programs, or personnel within each department to provide a more efficient administration of government services. If an agency or department has no recommendations for restructuring of divisions, programs, or personnel, its report must contain a statement to that effect. Upon their receipt by the President of the Senate and the Speaker of the House of Representatives, these reports must be referred as information to the standing committees of the respective bodies most jurisdictionally related in subject matter to each agency. Alternatively, the House and Senate may provide by rule for the referral of these reports. Thereafter, The Governor shall must periodically consult with the governing authorities of the various departments and upon such consultation, the Governor shall must submit a report of any restructuring recommendations to the General Assembly for its review and consideration.

(2)   The Governor shall report to the General Assembly no later than the second Tuesday in January of 1994, his recommendation for restructuring the following offices and divisions presently under his direct supervision, and as to how each might be restructured within other appropriate departments or divisions amended by this act:

(i)     Office of Executive Policy and Programs;

(ii)   Office of Energy Programs;

(iii)   Office of Personnel and Program Services;

(iv)   Office of Research;

(v)   Division of Health;

(vi)   Division of Economic Opportunity;

(vii)   Division of Economic of Development;

(viii) Division of Ombudsman and Citizens' Services;

(ix)   Division of Education;

(x)   Division of Natural Resources;

(xi)   Division of Human Services.

Department and agency governing authorities must, no later than the first day of the 2015 Legislative Session, and, as a part of the agency's seven-year oversight study and investigation conducted pursuant to


Printed Page 4076 . . . . . Tuesday, May 28, 2013

Chapter 2, Title 2, submit to the Governor and the General Assembly a seven-year plan that provides initiatives and/or planned actions that implement cost savings and increased efficiencies of services and responsibilities within the projected seven-year period.

(H)   Department governing authorities must submit to the General Assembly by the first day of the 1994 legislative session and every five years thereafter a mission statement that must be approved by the General Assembly by Joint Resolution."

B.     Section 8-27-10(4) of the 1976 Code is amended to read:

"(4)   'Report' means:

(a)   a written document alleging a written or oral allegation of waste or wrongdoing that contains the following information:

(a)(i)   the date of disclosure;

(b)(ii)   the name of the employee making the report; and

(c)(iii)   the nature of the wrongdoing and the date or range of dates on which the wrongdoing allegedly occurred. A report must be made within sixty days one hundred eighty days of the date the reporting employee first learns of the alleged wrongdoing.; or

(b)   sworn testimony regarding wrongdoing, regardless of when the wrongdoing allegedly occurred, given to any standing committee, subcommittee of a standing committee, oversight committee, oversight subcommittee, or study committee of the Senate or the House of Representatives."

C.     Chapter 27, Title 8 of the 1976 Code is amended by adding:

"Section 8-27-60.   Each public body must make a summary of this chapter available on the public body's Internet website. The summary must include an explanation of the process required to report wrongdoing, an explanation of what constitutes wrongdoing, and a description of the protections available to an employee who reports wrongdoing. If the public body does not maintain an Internet website, the public body must annually provide a written summary of this chapter to its employees and maintain copies of the summary at all times."

D.     Title 2 of the 1976 Code is amended by adding:

  "CHAPTER 2

Legislative Oversight of Executive Departments

Section 2-2-5.   The General Assembly finds and declares the following to be the public policy of the State of South Carolina:

(1)   Section 1 of Article XII of the State Constitution requires the General Assembly to provide for appropriate agencies to function in the


Printed Page 4077 . . . . . Tuesday, May 28, 2013

areas of health, welfare, and safety and to determine the activities, powers, and duties of these agencies and departments.

(2)   This constitutional duty is a continuing and ongoing obligation of the General Assembly that is best addressed by periodic review of the programs of the agencies and departments and their responsiveness to the needs of the state's citizens by the standing committees of the State Senate or House of Representatives.

Section 2-2-10.   As used in this chapter:

(1)   'Agency' means an authority, board, branch, commission, committee, department, division, or other instrumentality of the executive or judicial departments of state government, including administrative bodies. 'Agency' includes a body corporate and politic established as an instrumentality of the State. 'Agency' does not include:

(a)   the legislative department of state government; or

(b)   a political subdivision.

(2)   'Investigating committee' means any standing committee or subcommittee of a standing committee exercising its authority to conduct an oversight study and investigation of an agency within the standing committee's subject matter jurisdiction.

(3)   'Program evaluation report' means a report compiled by an agency at the request of an investigating committee that may include, but is not limited to, a review of agency management and organization, program delivery, agency goals and objectives, compliance with its statutory mandate, and fiscal accountability.

(4)   'Request for information' means a list of questions that an investigating committee serves on a department or agency under investigation. The questions may relate to any matters concerning the department or agency's actions that are the subject of the investigation.

(5)   'Standing committee' means a permanent committee with a regular meeting schedule and designated subject matter jurisdiction that is authorized by the Rules of the Senate or the Rules of the House of Representatives.

Section 2-2-20.   (A)   Beginning January 1, 2015, each standing committee shall conduct oversight studies and investigations on all agencies within the standing committee's subject matter jurisdiction at least once every seven years in accordance with a schedule adopted as provided in this chapter.

(B)   The purpose of these oversight studies and investigations is to determine if agency laws and programs within the subject matter jurisdiction of a standing committee:


Printed Page 4078 . . . . . Tuesday, May 28, 2013

(1)   are being implemented and carried out in accordance with the intent of the General Assembly; and

(2)   should be continued, curtailed, or eliminated.

(C)   The oversight studies and investigations must consider:

(1)   the application, administration, execution, and effectiveness of laws and programs addressing subjects within the standing committee's subject matter jurisdiction;

(2)   the organization and operation of state agencies and entities having responsibilities for the administration and execution of laws and programs addressing subjects within the standing committee's subject matter jurisdiction; and

(3)   any conditions or circumstances that may indicate the necessity or desirability of enacting new or additional legislation addressing subjects within the standing committee's subject matter jurisdiction.

Section 2-2-30.   (A)   The procedure for conducting the oversight studies and investigations is provided in this section.

(B)(1)   The President Pro Tempore of the Senate, upon consulting with the chairmen of the standing committees in the Senate and the Clerk of the Senate, shall determine the agencies for which each standing committee must conduct oversight studies and investigations. A proposed seven year review schedule must be published in the Senate Journal on the first day of session each year.

(2)   In order to accomplish the requirements of this chapter, the chairman of each standing committees must schedule oversight studies and investigations for the agencies for which his standing committee is the investigating committee and may:

(a)   coordinate schedules for conducting oversight studies and investigations with the chairmen of other standing committees; and

(b)   appoint joint investigating committees to conduct the oversight studies and investigations including, but not limited to, joint committees of the Senate and House of Representatives or joint standing committees of concurrent subject matter jurisdiction within the Senate or within the House of Representatives.

(3)   Chairmen of standing committees having concurrent subject matter jurisdiction over an agency or the programs and law governing an agency by virtue of the Rules of the Senate or Rules of the House of Representatives, may request that a joint investigating committee be appointed to conduct the oversight study and investigation for an agency.


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(C)(1)   The Speaker of the House of Representatives, upon consulting with the chairmen of the standing committees in the House of Representatives and the Clerk of the House of Representatives, shall determine the agencies for which each standing committee must conduct oversight studies and investigations. A proposed seven year review schedule must be published in the House Journal on the first day of session each year.

(2)   In order to accomplish the requirements of this chapter, the chairman of each standing committee must schedule oversight studies and investigations for the agencies for which his standing committee is the investigating committee and may:

(a)   coordinate schedules for conducting oversight studies and investigations with the chairmen of other standing committees; and

(b)   appoint joint investigating committees to conduct the oversight studies and investigations including, but not limited to, joint committees of the Senate and House of Representatives or joint standing committees of concurrent subject matter jurisdiction within the Senate or within the House of Representatives.

(3)   Chairmen of standing committees having concurrent subject matter jurisdiction over an agency or the programs and law governing an agency by virtue of the Rules of the Senate or Rules of the House of Representatives, may request that a joint investigating committee be appointed to conduct the oversight study and investigation for the agency.

(D)   The chairman of an investigating committee may vest the standing committee's full investigative power and authority in a subcommittee. A subcommittee conducting an oversight study and investigation of an agency: (1) must make a full report of its findings and recommendations to the standing committee at the conclusion of its oversight study and investigation, and (2) must not consist of fewer than three members.

Section 2-2-40.   (A)   In addition to the scheduled seven year oversight studies and investigations, a standing committee of the Senate or House of Representatives may initiate an oversight study and investigation of an agency within its subject matter jurisdiction. The motion calling for the oversight study and investigation must state the subject matter and scope of the oversight study and investigation. The oversight study and investigation must not exceed the scope stated in the motion or the scope of the information uncovered by the investigation.


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(B)   Nothing in the provisions of this chapter prohibits or restricts the President Pro Tempore of the Senate, the Speaker of the House of Representatives, or chairmen of standing committees from fulfilling their constitutional obligations by authorizing and conducting legislative investigations into agencies' functions, duties, and activities.

Section 2-2-50.   When an investigating committee conducts an oversight study and investigation or a legislative investigation is conducted pursuant to Section 2-2-40(B), evidence or information related to the investigation may be acquired by any lawful means, including, but not limited to:

(A)   serving a request for information on the agency being studied or investigated. The request for information must be answered separately and fully in writing under oath and returned to the investigating committee within forty-five days after being served upon the department or agency. The time for answering a request for information may be extended for a period to be agreed upon by the investigating committee and the agency for good cause shown. The head of the department or agency must sign the answers verifying them as true and correct. If any question contains a request for records, policies, audio or video recordings, or other documents, the question is not considered to have been answered unless a complete set of records, policies, audio or video recordings, or other documents is included with the answer;

(B)   issuing subpoenas and subpoenas duces tecum pursuant to Title 2, Chapter 69; and

(C)   requiring the agency to prepare and submit to the investigating committee a program evaluation report by a date specified by the investigating committee. The investigating committee must specify the agency program or programs or agency operations that it is studying or investigating and the information to be contained in the program evaluation report.

Section 2-2-60.   (A)   An investigating committee's request for a program evaluation report must contain:

(1)   the agency program or operations that it intends to investigate;

(2)   the information that must be included in the report; and

(3)   the date that the report must be submitted to the committee.

(B)   An investigating committee may request that the program evaluation report contain any of the following information:

(1)   enabling or authorizing law or other relevant mandate, including any federal mandates;


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(2)   a description of each program administered by the agency identified by the investigating committee in the request for a program evaluation report, including the following information:

(a)   established priorities, including goals and objectives in meeting each priority;

(b)   performance criteria, timetables, or other benchmarks used by the agency to measure its progress in achieving its goals and objectives;

(c)   an assessment by the agency indicating the extent to which it has met the goals and objectives, using the performance criteria. When an agency has not met its goals and objectives, the agency shall identify the reasons for not meeting them and the corrective measures the agency has taken to meet them in the future;

(3)   organizational structure, including a position count, job classification, and organization flow chart indicating lines of responsibility;

(4)   financial summary, including sources of funding by program and the amounts allocated or appropriated and expended over the last ten years;

(5)   identification of areas where the agency has coordinated efforts with other state and federal agencies in achieving program objectives and other areas in which an agency could establish cooperative arrangements including, but not limited to, cooperative arrangements to coordinate services and eliminate redundant requirements;

(6)   identification of the constituencies served by the agency or program, noting any changes or projected changes in the constituencies;

(7)   a summary of efforts by the agency or program regarding the use of alternative delivery systems, including privatization, in meeting its goals and objectives;

(8)   identification of emerging issues for the agency;

(9)   a comparison of any related federal laws and regulations to the state laws governing the agency or program and the rules implemented by the agency or program;

(10)   agency policies for collecting, managing, and using personal information over the internet and non-electronically, information on the agency's implementation of information technologies;

(11)   a list of reports, applications, and other similar paperwork required to be filed with the agency by the public. The list must include:


Printed Page 4082 . . . . . Tuesday, May 28, 2013

(a)   the statutory authority for each filing requirement;

(b)   the date each filing requirement was adopted or last amended by the agency;

(c)   the frequency that filing is required;

(d)   the number of filings received annually for the last seven years and the number of anticipated filings for the next four years;

(e)   a description of the actions taken or contemplated by the agency to reduce filing requirements and paperwork duplication;

(12)   any other relevant information specifically requested by the investigating committee.

(C)   All information contained in a program evaluation report must be presented in a concise and complete manner.

(D)   The chairman of the investigating committee may direct the Legislative Audit Council to perform a study of the program evaluation report and report its findings to the investigating committee. The chairman also may direct the Legislative Audit Council to perform its own audit of the program or operations being studied or investigated by the investigating committee.

(E)   A state agency that is vested with revenue bonding authority may submit annual reports and annual external audit reports conducted by a third party in lieu of a program evaluation report.

Section 2-2-70.   All testimony given to the investigating committee must be under oath.

Section 2-2-80.   Any witness testifying before the investigating committee may have counsel present to advise him. The witness or his counsel may, during the time of testimony , claim any legal privilege recognized by the laws of this State in response to any question and is entitled to have a ruling by the chairman on any objection. In making his ruling, the chairman of the investigating committee shall follow as closely as possible the statutory law and the decisions of the courts of this State regarding legal privileges. The ruling of the chair may not be reviewed by the courts of this State except in a separate proceeding for contempt of the General Assembly.

Section 2-2-90.   A witness shall be given the benefit of any privilege at law which he may have in court as a party to a civil action."

E.     This part takes effect January 1, 2015.

  Part VI

Conforming and Miscellaneous Amendments to Divisions,

Offices, and Other Entities or Programs Transferred to

the Department of Administration


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SECTION   8.   A.     Section 1-11-55 of the 1976 Code is amended to read:

"Section 1-11-55.   (1)   'Governmental body' means a state government department, commission, council, board, bureau, committee, institution, college, university, technical school, legislative body, agency, government corporation, or other establishment or official of the executive, judicial, or legislative branches branch of this State. Governmental body excludes the General Assembly, Legislative Council, the Office of Legislative Printing, Information and Technology Systems, the judicial department and all local political subdivisions such as counties, municipalities, school districts, or public service or special purpose districts.

(2)   The Budget and Control Board Division of General Services of the Department of Administration is hereby designated as the single central broker for the leasing of real property for governmental bodies. No governmental body shall enter into any lease agreement or renew any existing lease except in accordance with the provisions of this section.

(3)   When any governmental body needs to acquire real property for its operations or any part thereof and state-owned property is not available, it shall notify the Office Division of General Services of its requirement on rental request forms prepared by the office division. Such forms shall indicate the amount and location of space desired, the purpose for which it shall be used, the proposed date of occupancy and such other information as General Services may require. Upon receipt of any such request, General Services shall conduct an investigation of available rental space which would adequately meet the governmental body's requirements, including specific locations which may be suggested and preferred by the governmental body concerned. When suitable space has been located which the governmental body and the office division agree meets necessary requirements and standards for state leasing as prescribed in procedures of the board department as provided for in subsection (5) of this section, General Services shall give its written approval to the governmental body to enter into a lease agreement. All proposed lease renewals shall be submitted to General Services by the time specified by General Services.

(4)   The board department shall adopt procedures to be used for governmental bodies to apply for rental space, for acquiring leased space, and for leasing state-owned space to nonstate lessees.

(5)   Any participant in a property transaction proposed to be entered who maintains that a procedure provided for in this section has not


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been properly followed, may request review of the transaction by the director of the Office Division of General Services of the Department of Administration or his designee."

B.   Sections 1-11-56 and 1-11-58 of the 1976 Code are amended to read:

"Section 1-11-56.   (A)   The State Budget and Control Board, Division of General Services of the Department of Administration, in an effort to ensure that funds authorized and appropriated for rent are used in the most efficient manner, is directed to develop a program to manage the leasing of all public and private space of state agencies a governmental body. The department must submit regulations for the implementation of this section to the General Assembly as provided in the Administrative Procedures Act, Chapter 23, Title 1. The board's department's regulations, upon General Assembly approval, shall include procedures for:

(1)   assessing and evaluating agency needs, including the authority to require agency justification for any request to lease public or private space;

(2)   establishing standards for the quality and quantity of space to be leased by a requesting agency;

(3)   devising and requiring the use of a standard lease form (approved by the Attorney General) with provisions which assert and protect the state's prerogatives including, but not limited to, a right of cancellation in the event of:

(a)   a nonappropriation for the renting agency,

(b)   a dissolution of the agency, and

(c)   the availability of public space in substitution for private space being leased by the agency;

(4)   rejecting an agency's request for additional space or space at a specific location, or both;

(5)   directing agencies to be located in public space, when available, before private space can be leased;

(6)   requiring the agency to submit a multi-year financial plan for review by the board's budget office department with copies sent to Ways and Means Committee and Senate Finance Committee, before any new lease for space is entered into; and requiring prior review by the Joint Bond Review Committee and the requirement of Budget and Control Board approval before the adoption of any new lease that commits more than one million dollars in a five-year period; and

(7)   requiring prior review by the Joint Bond Review Committee and the requirement of Budget and Control Board State Fiscal


Printed Page 4085 . . . . . Tuesday, May 28, 2013

Accountability Authority approval before the adoption of any new or renewal lease that commits more than two hundred thousand dollars annually in rental or lease payments or more than one million dollars in such payments in a five-year period.

(B)   Leases or rental agreements involving amounts below the thresholds provided in item (7) of subsection (A) may be executed by the Department of Administration without this prior review by the Joint Bond Review Committee and approval by the State Fiscal Accountability Authority.

(C)   The threshold requirements requiring review by the Joint Bond Review Committee and approval by the State Fiscal Accountability Authority as contained in item (7) of subsection (A) also apply to leases or rental agreements with nonstate entities whether or not the state or its agencies or departments is the lessee or lessor.

Section 1-11-58.   (A)(1)   Every state agency, as defined by Section 1-19-40, shall annually perform an inventory and prepare a report of all residential and surplus real property owned by it. The report shall be submitted to the State Budget and Control Board Department of Administration, Office Division of General Services, on or before June thirtieth and shall indicate current use, current value, and projected use of the property. Property not currently being utilized for necessary agency operations shall be made available for sale and funds received from the sale of the property shall revert to the general fund.

(2)   The Office Division of General Services will shall review the annual reports addressing real property submitted to it and determine the real property which is surplus to the State. A central listing of such property will be maintained for reference in reviewing subsequent property acquisition needs of agencies.

(3)   Upon receipt of a request by an agency to acquire additional property, the Office Division of General Services shall review the surplus property list to determine if the agency's needs can may be met from existing state-owned property. If such property is identified, the Office division of General Services shall act as broker in transferring the property to the requesting agency under terms and conditions that are mutually agreeable to the agencies involved.

(4)   The Budget and Control Board department may authorize the Office Division of General Services to sell any unassigned surplus real property. The Office of General Services division shall have the discretion to determine the method of disposal to be used, which possible methods include: auction, sealed bids, listing the property with a private broker or any other method determined by the Office of


Printed Page 4086 . . . . . Tuesday, May 28, 2013

General Services division to be commercially reasonable considering the type and location of property involved.

(B)   The procedures involving surplus real property sales under this section are also subject to the approvals required in Section 1-11-65 for surplus real property sales above five hundred thousand dollars."

C.     Sections 1-11-65, 1-11-67, 1-11-70, 1-11-80, 1-11-90, 1-11-100, 1-11-110, and 1-11-180 of the 1976 Code are amended to read:

"Section 1-11-65.   (A)   All transactions involving real property, made for or by any governmental bodies, excluding political subdivisions of the State, must be approved by and recorded with the State Budget and Control Board Department of Administration for transactions of the one million dollars or less. For transactions of more than one million dollars, approval of the State Fiscal Accountability Authority is required in lieu of the department, although the recording will be with the department. Upon approval of the transaction by the Budget and Control Board, there must be recorded simultaneously with the deed, a certificate of acceptance, which acknowledges the board's department's, and authority's, approval of the transaction as required. The county recording authority cannot accept for recording any deed not accompanied by a certificate of acceptance. The board department and authority may exempt a governmental body from the provisions of this subsection.

(B)   All state agencies, departments, and institutions authorized by law to accept gifts of tangible personal property shall have executed by its governing body an acknowledgment of acceptance prior to transfer of the tangible personal property to the agency, department, or institution.

Section 1-11-67.   The State Budget and Control Board Department of Administration shall assess and collect a rental charge from all state departments and agencies that occupy State Budget and Control Board space in state-controlled office buildings under its jurisdiction. The amount charged each department or agency must be calculated on a square foot, or other equitable basis of measurement, and at rates that will yield sufficient total annual revenue to cover the annual principal and interest due or anticipated on the Capital Improvement Obligations for projects administered or planned by the Office of General Services department, and maintenance and operation costs of State Budget and Control Board-controlled department-controlled office buildings under the supervision of the Office of General Services. The amount collected must be deposited in a special account and must be expended


Printed Page 4087 . . . . . Tuesday, May 28, 2013

only for payment on Capital Improvement Obligations and maintenance and operations costs of the buildings under the supervision of the Office of General Services department.

All departments and agencies against which rental charges are assessed and whose operations are financed in whole or in part by federal or other nonappropriated funds are both directed to apportion the payment of these charges equitably among all funds to ensure that each bears its proportionate share.

Section 1-11-70.   All vacant lands and lands purchased by the former land commissioners of the State shall be are subject to the directions of the State Budget and Control Board Department of Administration.

Section 1-11-80.   The State Budget and Control Board Department of Administration is authorized to grant easements and rights of way to any person for construction and maintenance of power lines, pipe lines, water and sewer lines and railroad facilities over, on or under such vacant lands or marshland as are owned by the State, upon payment of the reasonable value thereof.

Section 1-11-90.   The State Budget and Control Board Department of Administration may grant to agencies or political subdivisions of the State, without compensation, rights of way through and over such marshlands as are owned by the State for the construction and maintenance of roads, streets and highways or power or pipe lines, if, in the judgment of the Budget and Control Board department, the interests of the State will not be adversely affected thereby.

Section 1-11-100.   Deeds or other instruments conveying such rights of way or easements over such marshlands or vacant lands as are owned by the State shall be executed by the Governor in the name of the State, when authorized by resolution of the Budget and Control Board, duly recorded in the minutes and records of such board authorized by the Department of Administration and when duly approved by the office of the Attorney General; deeds or other instruments conveying such easements over property in the name of or under the control of State agencies, institutions, commissions or other bodies shall be executed by the majority of the governing body thereof, shall name both the State of South Carolina and the institution, agency, commission or governing body as grantors, and shall show the written approval of the majority of the members of the State Budget and Control Board Director of the Department of Administration.

Section 1-11-110.   (1)   The State Budget and Control Board Department of Administration, subject to the requirements of Section 1-11-65, is authorized to acquire real property, including any estate or


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interest therein, for, and in the name of, the State of South Carolina by gift, purchase, condemnation or otherwise.

(2)   The State Budget and Control Board Department of Administration shall make use of the provisions of the Eminent Domain Procedure Act (Chapter 2, of Title 28) if it is necessary to acquire real property by condemnation. The actions must be maintained by and in the name of the board department. The right of condemnation is limited to the right to acquire land necessary for the development of the Capitol Complex mall grounds in the City of Columbia.

Section 1-11-180.   (A)   In addition to the powers granted the Budget and Control Board Department of Administration under this chapter or any other provision of law, the board department may:

(1)   survey, appraise, examine, and inspect the condition of state property to determine what is necessary to protect state property against fire or deterioration and to conserve the use of the property for state purposes;

(2)   approve the destruction or disposal of state agency records;

(3)   require submission and approval of plans and specifications for permanent improvements by a state department, agency, or institution before a contract is awarded for the permanent improvement;

(4)   approve blanket bonds for a state department, agency, or institution including bonds for state officials or personnel. However, the form and execution of blanket bonds must be approved by the Attorney General; and

(5)(3)   contract to develop an energy utilization management system for state facilities under its control and to assist other agencies and departments in establishing similar programs. However, this does not authorize capital expenditures.

(B)   The Budget and Control Board may Department of Administration shall promulgate regulations necessary to carry out this section."

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

"Section 1-11-185.   (A)   In addition to the powers granted the Department of Administration pursuant to this chapter or another provision of law, the department may require submission and approval of plans and specifications for a permanent improvement project of a cost of one million dollars or less by a state department, agency, or institution of the executive branch before a contract is awarded for the permanent improvement project. If the cost of the permanent improvement project is more than one million dollars, approval of the


Printed Page 4089 . . . . . Tuesday, May 28, 2013

State Fiscal Accountability Authority is required, in lieu of the department's approval, before the contract may be awarded and the authority may require submission of the plans and specifications for this purpose. The provisions of this subsection are in addition to any other requirements of law relating to permanent improvement projects, including the provisions of Chapter 47, Title 2.

(B)   The Department of Administration may promulgate regulations necessary to carry out its duties.

(C)   The respective divisions of the Department of Administration are authorized to provide to and receive from other governmental entities, including other divisions and state and local agencies and departments, goods and services as will in its opinion promote efficient and economical operations. The divisions may charge and pay the entities for the goods and services, the revenue from which must be deposited in the state treasury in a special account and expended only for the costs of providing the goods and services, and those funds may be retained and expended for the same purposes."

E.     1.   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 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.;


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(f)   to insure motor vehicles are operated in a safe manner in accordance with a statewide Fleet Safety Program;

(g)   to improve environmental quality in this State by decreasing the discharge of pollutants."

2.     Section 1-11-225 of the 1976 Code is amended to read:

"Section 1-11-225.   The Division of Operations Department of Administration shall establish a cost allocation plan to recover the cost of operating the comprehensive statewide Fleet Management Program. The division shall collect, retain, and carry forward funds to ensure continuous administration of the program."

3.     Sections 1-11-250, 1-11-260, 1-11-270(A), 1-11-280, 1-11-290; 1-11-300, 1-11-310, as last amended by Act 203 of 2008, 1-11-315, 1-11-320; 1-11-335, and 1-11-340 of the 1976 Code are amended to read:

"Section 1-11-250.   For purposes of Sections 1-11-220 to 1-11-330:

(a)   'State agency' means all officers, departments, boards, commissions, institutions, universities, colleges, and all persons and administrative units of state government that operate motor vehicles purchased, leased, or otherwise held with the use of state funds, pursuant to an appropriation, grant or encumbrance of state funds, or operated pursuant to authority granted by the State.

(b)   'Board Department' means State Budget and Control Board the South Carolina Department of Administration.

Section 1-11-260.   (A)   The Fleet Manager shall report annually to the Budget and Control Board and the General Assembly concerning the performance of each state agency in achieving the objectives enumerated in Sections 1-11-220 through 1-11-330 and include in the report a summary of the division's program's efforts in aiding and assisting the various state agencies in developing and maintaining their management practices in accordance with the comprehensive statewide Motor Vehicle Fleet Management Program. This report also shall contain recommended changes in the law and regulations necessary to achieve these objectives.

(B)   The board department, after consultation with state agency heads, shall promulgate and enforce state policies, procedures, and regulations to achieve the goals of Sections 1-11-220 through 1-11-330 and shall recommend administrative penalties to be used by the agencies for violation of prescribed procedures and regulations relating to the Fleet Management Program.


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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.


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Section 1-11-300.   In accordance with criteria established by the board department, each agency shall develop and implement a uniform cost accounting and reporting system to ascertain the cost per mile of each motor vehicle used by the State under their control. Agencies presently operating under existing systems may continue to do so provided that board departmental approval shall be is required and that the existing systems shall be are uniform with the criteria established by the board department. All expenditures on a vehicle for gasoline and oil shall be purchased in one of the following ways:

(1)   from state-owned facilities and paid for by the use of Universal State Credit Cards except where agencies purchase these products in bulk;

(2)   from any fuel outlet where gasoline and oil are sold regardless of whether the outlet accepts a credit or charge card when the purchase is necessary or in the best interest of the State; and

(3)   from a fuel outlet where gasoline and oil are sold when that outlet agrees to accept the Universal State Credit Card.

These provisions regarding purchase of gasoline and oil and usability of the state credit card also apply to alternative transportation fuels where available. The Budget and Control Board Division of Operations department shall adjust the budgetary appropriation in Part IA, Section 63B, for 'Operating Expenses--Lease Fleet' to reflect the dollar savings realized by these provisions and transfer such amount to other areas of the State Fleet Management Program. The Board department shall promulgate regulations regarding the purchase of motor vehicle equipment and supplies to ensure that agencies within a reasonable distance are not duplicating maintenance services or purchasing equipment that is not in the best interest of the State. The Board department shall develop a uniform method to be used by the agencies to determine the cost per mile for each vehicle operated by the State.

Section 1-11-310.   (A)   The State Budget and Control Board Department of Administration shall purchase, acquire, transfer, replace, and dispose of all motor vehicles on the basis of maximum cost-effectiveness and lowest anticipated total life cycle costs.

(B)   The standard state fleet sedan or station wagon must be no larger than a compact model and the special state fleet sedan or station wagon must be no larger than an intermediate model. The director of the Division of Motor Vehicle Management State Fleet Manager shall determine the types of vehicles which fit into these classes. Only these classes of sedans and station wagons may be purchased by the State for nonlaw enforcement use.


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(C)   The State shall purchase police sedans only for the use of law enforcement officers, as defined by the Internal Revenue Code. Purchase of a vehicle under this subsection must be concurred in by the director of the Division of Motor Vehicle Management State Fleet Manager and must be in accordance with regulations promulgated or procedures adopted under Sections 1-11-220 through 1-11-340 which must take into consideration the agency's mission, the intended use of the vehicle, and the officer's duties. Law enforcement agency vehicles used by employees whose job functions do not meet the Internal Revenue Service definition of 'Law Enforcement Officer' must be standard or special state fleet sedans.

(D)   All state motor vehicles must be titled to the State and must be received by and remain in the possession of the Division Program of Motor Vehicle Fleet Management pending sale or disposal of the vehicle.

(E)   Titles to school buses and service vehicles operated by the State Department of Education and vehicles operated by the South Carolina Department of Transportation must be retained by those agencies.

(F)   Exceptions to requirements in subsections (B) and (C) must be approved by the director of the Division of Motor Vehicle Management State Fleet Manager. Requirements in subsection (B) do not apply to the State Development Board Department of Commerce.

(G)   Preference in purchasing state motor vehicles must be given to vehicles assembled in the United States with at least seventy-five percent domestic content as determined by the appropriate federal agency.

(H)   Preference in purchasing state motor vehicles must be given to hybrid, plug-in hybrid, bio-diesel, hydrogen, fuel cell, or flex-fuel vehicles when the performance, quality, and anticipated life cycle costs are comparable to other available motor vehicles.

Section 1-11-315.   The State Budget and Control Board Department of Administration, Division of General Services, Program of Motor Vehicle Fleet Management, shall determine the extent to which the state vehicle fleet can be configured to operate on alternative transportation fuels. This determination must be based on a thorough evaluation of each alternative fuel and the feasibility of using such fuels to power state vehicles. The state fleet must be configured in a manner that will serve as a model for other corporate and government fleets in the use of alternative transportation fuel. By March 1, 1993, the Division Program of Motor Vehicle Fleet Management must submit a plan to the General Assembly for the use of alternative transportation


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fuels for the state vehicle fleet that will enable the state vehicle fleet to serve as a model for corporate and other government fleets in the use of alternative transportation fuel. This plan must contain a cost/benefit analysis of the proposed changes.

Section 1-11-320.   The Board department shall ensure that all state-owned motor vehicles are identified as such through the use of permanent state-government state government license plates and either state or agency seal decals. No vehicles shall be exempt from the requirements for identification except those exempted by the Board department.

This section shall not apply to vehicles supplied to law enforcement officers when, in the opinion of the Board department after consulting with the Chief of the State Law Enforcement Division, those officers are actually involved in undercover law enforcement work to the extent that the actual investigation of criminal cases or the investigators' physical well-being would be jeopardized if they were identified. The Board department is authorized to exempt vehicles carrying human service agency clients in those instances in which the privacy of the client would clearly and necessarily be impaired.

Section 1-11-335.   The respective divisions of the Budget and Control Board Department of Administration are authorized to provide to and receive from other governmental entities, including other divisions and state and local agencies and departments, goods and services, as will in its opinion promote efficient and economical operations. The divisions may charge and pay the entities for the goods and services, the revenue from which shall be deposited in the state treasury in a special account and expended only for the costs of providing the goods and services, and such funds may be retained and expended for the same purposes.

Section 1-11-340.   The Board department shall develop and implement a statewide Fleet Safety Program for operators of state-owned vehicles which shall serve to minimize the amount paid for rising insurance premiums and reduce the number of accidents involving state-owned vehicles. The Board department shall promulgate rules and regulations requiring the establishment of an accident review board by each agency and mandatory driver training in those instances where remedial training for employees would serve the best interest of the State."

F.     Section 1-11-435 of the 1976 Code is amended to read:

"Section 1-11-435.   To protect the state's critical information technology infrastructure and associated data systems in the event of a


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major disaster, whether natural or otherwise, or resulting from an infiltration or compromise of the infrastructure and associated data systems, and to allow the services to the citizens of this State to continue in such an event, the Office Division of the State Chief Information Officer Technology in the Department of Administration (CIO) should develop a Critical Information Technology Infrastructure Protection Plan devising policies and procedures to provide for the confidentiality, integrity, and availability of, and to allow for alternative and immediate online access to critical data and information systems including, but not limited to, health and human services, law enforcement, and related agency data necessary to provide critical information to citizens and ensure the protection of state employees as they carry out their disaster-related duties. All state agencies and political subdivisions of this State are directed to assist the Office of the State CIO division in the collection of data required for this plan."

G.     Section 1-15-10 of the 1976 Code, as last amended by Act 249 of 2008, is further amended to read:

"Section 1-15-10.   There is hereby created a Commission on Women to be composed of fifteen members appointed by the Governor with the advice and consent of the Senate from among persons with a competency in the area of public affairs and women's activities. One member must be appointed from each congressional district and the remaining members from the State at large. The commission shall be under and a part of the Office of the Governor Department of Administration. Members of the commission shall serve for terms of four years and until their successors are appointed and qualify, except of those members first appointed after the expansion of the commission to fifteen members, two members shall serve a term of one year, two members shall serve a term of two years, two members shall serve a term of three years, and two members shall serve a term of four years. Members appointed prior to and after the expansion of the commission to fifteen members shall be designated by the Governor as being appointed to serve either from a particular congressional district or at large. Vacancies shall be filled in the manner of the original appointment for the unexpired portion of the term only. No member shall be eligible to serve more than two consecutive terms."

H.     1.   Section 1-30-110 of the 1976 Code is repealed.

2.   Section 2-59-10(1) of the 1976 Code is amended to read:

"1.   management of the L. Marion Gressette Building and the Senate areas of the State House with sole authority to formulate and implement policies and procedures for the effective utilization of personnel,


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equipment, and space within the building L. Marion Gressette Building and the Senate areas of the State House;"

I.   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 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


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deemed necessary; and take such other action as is deemed necessary and suitable, in the administration of this chapter, to assure maximum utilization by and benefit to health, educational and civil defense institutions and organizations within the State from property distributed under this chapter.

(d)   The Budget and Control Board Department of Administration is authorized to appoint advisory boards or committees, and to employ such personnel and prescribe their duties as are deemed necessary and suitable for the administration of this chapter.

(e)   The Director of the Division of General Services is authorized to make such certifications, take such action and enter into such contracts, agreements and undertakings for and in the name of the State (including cooperative agreements with any Federal agencies providing for utilization of property and facilities by and exchange between them of personnel and services without reimbursement), require such reports and make such investigations as may be required by law or regulation of the United States of America in connection with the receipt, warehousing, and distribution of personal property received by him from the United States of America.

(f)   The Division of General Services is authorized to act as clearinghouse of information for the public and private nonprofit institutions, organizations and agencies referred to in subparagraph (a) of this section and other institutions eligible to acquire federal surplus personal property, to locate both real and personal property available for acquisition from the United States of America, to ascertain the terms and conditions under which such property may be obtained, to receive requests from the above-mentioned institutions, organizations, and agencies and to transmit to them all available information in reference to such property, and to aid and assist such institutions, organizations, and agencies in every way possible in the consummation of acquisitions or transactions hereunder.

(g)   The Division of General Services, in the administration of this chapter, shall cooperate to the fullest extent consistent with the provisions of the act, and with the departments or agencies of the United States of America, and shall file a State plan of operation, and operate in accordance therewith, and take such action as may be necessary to meet the minimum standards prescribed in accordance with the act, and make such reports in such form and containing such information as the United States of America or any of its departments or agencies may from time to time require, and it shall comply with the laws of the United States of America and the rules and regulations of


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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 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."

J.   Section 10-1-10 of the 1976 Code, as last amended by Act 628 of 1988, is further amended to read:

"Section 10-1-10.   The State Budget and Control Board Department of Administration shall keep, landscape, cultivate, and beautify the State House and State House grounds with authority to expend such amounts as may be annually appropriated therefor. The board department shall employ all help and labor in policing, protecting, and caring for the State House and State House grounds and shall have full authority over them."

K.     Section 10-1-30 of the 1976 Code, as last amended by Act 628 of 1988, is further amended to read:

"Section 10-1-30.   (A)   The Director of the Division of General Services of the State Budget and Control Board may authorize the use of the State House lobbies, areas of State House except for those provided in subsection (B), the State House steps and grounds, and other public buildings and grounds except for those provided in subsection (B) in accordance with regulations promulgated by the board department and the laws of this State.


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(B)   The Clerk of the Senate and the Clerk of the House of Representatives shall provide joint approval for access to or the use of the second and third floors of the State House; provided, that use of the respective chambers of each house shall be the prerogative of that house. The director shall obtain the approval of the Clerk of the Senate before authorizing shall provide prior authorization for any access to or use of the Gressette Senate Office Building and shall obtain the approval of the Clerk of the House of Representatives before authorizing shall provide prior authorization for any access to or use of the Blatt House Office Building. Management and supervision of the office buildings of each house of the General Assembly shall be exercised by each house acting through the respective clerks.

(C)   The regulations promulgated pursuant to subsection (A) must contain provisions to insure ensure that the public health, safety, and welfare will be are protected in the use of the areas including reasonable time, place, and manner restrictions and application periods before use. If sufficient measures cannot be are not taken to protect the public health, safety, and welfare, the director shall deny the requested use. Other restrictions may be imposed on the use of the areas as are necessary for the conduct of business in those areas and the maintenance of the dignity, decorum, and aesthetics of the areas."

L.   Section 10-1-130 of the 1976 Code is amended to read:

"Section 10-1-130.   The trustees or governing bodies of state institutions and agencies may grant easements and rights of way over any property under their control, upon the concurrence and acquiescence of the State Budget and Control Board recommendation of the Department of Administration, whenever it appears that such easements will do not materially impair the utility of the property or damage it and, when a consideration is paid therefor, any such amounts shall must be placed in the State Treasury to the credit of the institution or agency having control of the property involved."

M.   Section 10-1-190 of the 1976 Code, as added by Act 145 of 1995, is amended to read:

"Section 10-1-190.   As part of the approval process relating to trades of state property for nonstate property, the Budget and Control Board Department of Administration is authorized to approve the application of any net proceeds resulting from such a transaction to the improvement of the property held by the board department."


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N.     Chapter 9, Title 10 of the 1976 Code is amended to read:

  "CHAPTER 9

Minerals and Mineral Interests

in Public Lands

Article 1

General Provisions

Section 10-9-10.   The Public Service Authority may, through its board of directors, make and execute leases of gas, oil, and other minerals and mineral rights, excluding phosphate and lime and phosphatic deposits, over and upon the lands and properties owned by said authority; and the State Budget and Control Board Department of Health and Environmental Control and the forfeited land commissions of the several counties of this State may, with the approval of the Attorney General, make and execute such leases over and upon the lands and waters of the State and of the several counties under the ownership, management, or control of such Board the department and commissions respectively.

Section 10-9-20.   No such lease shall provide for a royalty of less than twelve and one-half per cent of production of oil and gas from the lease.

Section 10-9-30.   Nothing contained in this article shall estop the State from enacting proper laws for the conservation of the oil, gas and other mineral resources of the State and all leases and contracts made under authority of this article shall be subject to such laws; provided, that the State Budget and Control Board Department of Health and Environmental Control may negotiate for leases of oil, gas, and other mineral rights upon all of the lands and waters of the State, including offshore marginal and submerged lands.

Section 10-9-35.   In the event that the State of South Carolina is the recipient of revenues derived from offshore oil leases within the jurisdictional limits of the State such revenues shall be deposited with the State Treasurer in a special fund and shall be expended only by authorization of the General Assembly.

Funds so accumulated shall be expended only for the following purposes:

(1)   to retire the bonded indebtedness incurred by South Carolina;

(2)   for capital improvement expenditures.

Section 10-9-40.   The authority conferred upon the Public Service Authority, the State Budget and Control Board Department of Health and Environmental Control, and the forfeited land commissions by this article shall be cumulative and in addition to the rights and powers


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heretofore vested by law in such authority, such State Budget and Control Board the Department of Health and Environmental Control, and such commissions, respectively.

  Article 3

Phosphate

Section 10-9-110.   The State Budget and Control Board Department of Health and Environmental Control shall be charged with the exclusive control and protection of the rights and interest of the State in the phosphate rocks and phosphatic deposits in the navigable streams and in the marshes thereof.

Section 10-9-120.   The Board department may inquire into and protect the interests of the State in and to any phosphatic deposits or mines, whether in the navigable waters of the State or in land marshes or other territory owned or claimed by other parties, and in the proceeds of any such mines and may take such action for, or in behalf of, the State in regard thereto as it may find necessary or deem proper.

Section 10-9-130.   The Board department may issue to any person who applies for a lease or license granting a general right to dig, mine, and remove phosphate rock and phosphatic deposits from all the navigable streams, waters, and marshes belonging to the State and also from such of the creeks, not navigable, lying therein as may contain phosphate rock and deposits belonging to the State and not previously granted. Such leases or licenses may be for such terms as may be determined by the Board department. The annual report of the Board department to the General Assembly shall include a list of all effective leases and licenses. The Board department may make a firm contract for the royalty to be paid the State which shall not be increased during the life of the license. Provided, that prior to the grant or issuance of any lease or license, the Board department shall cause to be published a notice of such application in a newspaper having general circulation in the county once a week for three successive weeks prior to the grant or issuance. Provided, further However, the lessee or licensee may shall not take possession if there be is an adverse claim and the burden of proving ownership in the State shall be placed upon the lessee or licensee.

Section 10-9-140.     In every case in which such an application shall be is made to the Board department for a license, the Board department may grant or refuse the license as it may deem considers best for the interest of the State and the proper management of the interests of the State in such those deposits.


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Section 10-9-150.   As a condition precedent to the right to dig, mine, and remove the rocks and deposits granted by any such a license, each licensee shall enter into bond, with security, in the penal sum of five thousand dollars, conditioned for the making at the end of every month of true and faithful returns to the Comptroller General of the number of tons of phosphate rock and phosphatic deposits so dug or mined and the punctual payment to the State Treasurer of the royalty provided at the end of every quarter or three months. Such The bond and sureties thereon shall be are subject to the approval required by law for the bonds of state officers.

Section 10-9-160.   Whenever the Board department shall have reason to doubt the solvency of any surety whose name appears upon any bond executed for the purpose of securing the payment of the phosphate royalty by any person digging, mining and removing phosphate rock or phosphatic deposits in any of the territory, the property of the State, under any grant or license, the Board department shall forthwith notify the person giving such bond and the sureties thereon and require that one or more sureties, as the case may be, shall be added to the bond, such surety or sureties to be approved by the Board department.

Section 10-9-170.   The Board department, upon petition filed by any person who is surety on any such bond as aforesaid and who considers himself in danger of being injured by such suretyship, shall notify the person giving such bond to give a new bond with other sureties and upon failure of such person to do so within thirty days shall cause such person to suspend further operations until a new bond be given. But in In no case shall the sureties on the old bond be discharged from liability thereon until the new bond has been executed and approved, and such sureties shall not be discharged from any antecedent liability by reason of such suretyship.

Section 10-9-180.   The Board department is hereby vested with full and complete power and control over all mining in the phosphate territory belonging to this State and over all persons digging or mining phosphate rock or phosphatic deposit in the navigable streams and waters or in the marshes thereof, with full power and authority, subject to the provisions of Sections 10-9-130 and 10-9-190 to fix, regulate, raise, or reduce such royalty per ton as shall from time to time be paid to the State by such persons for all or any such phosphate rock dug, mined, removed, and shipped or otherwise sent to the market therefrom. But six Six months' notice shall be given all persons at such time digging or mining phosphate rock in such navigable streams,


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waters, or marshes before any increase shall be made in the rate of royalty theretofore existing.

Section 10-9-190.   Each person to whom a license shall be issued must, at the end of every month, make to the Comptroller General a true and lawful return of the phosphate rock and phosphatic deposits he may have dug or mined during such month and shall punctually pay to the State Treasurer, at the end of every quarter or three months, a royalty of five cents per ton upon each and every ton of the crude rock (not of the rock after it has been steamed or dried), the first quarter to commence to run on the first day of January in each year.

Section 10-9-200.   The State Budget and Control Board Department of Health and Environmental Control shall, within twenty days after the grant of any license as aforesaid, shall notify the Comptroller General of the issuing of such license, with the name of the person to whom issued, the time of the license, and the location for which it was issued.

Section 10-9-210.   Every person who shall dig, mine, or remove any phosphate rock or phosphatic deposit from the beds of the navigable streams, waters, and marshes of the State without license therefor previously granted by the State to such person shall be liable to a penalty of ten dollars for each and every ton of phosphate rock or phosphatic deposits so dug, mined, or removed, to be recovered by action at the suit of the State in any court of competent jurisdiction. One-half of such penalty shall be for the use of the State and the other half for the use of the informer.

Section 10-9-220.   It shall be unlawful for any person to purchase or receive any phosphate rock or phosphatic deposit dug, mined, or removed from the navigable streams, waters, or marshes of the State from any person not duly authorized by act of the General Assembly of this State or license of the Board department to dig, mine, or remove such phosphate rock or phosphatic deposit.

Section 10-9-230.   Any person violating Section 10-9-220 shall forfeit to the State the sum of ten dollars for each and every ton of phosphate rock or phosphatic deposit so purchased or received, to be recovered by action in any court of competent jurisdiction. One half of such forfeiture shall be for the use of the State and the other half for the use of the informer.

Section 10-9-240.   Should any person whosoever interfere with, obstruct, or molest or attempt to interfere with, obstruct, or molest the Board department or anyone by it authorized or licensed hereunder in the peaceable possession and occupation for mining purposes of any of the marshes, navigable streams, or waters of the State, then the Board


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department may, in the name and on behalf of the State, take such measures or proceedings as it may be advised are proper to enjoin and terminate any such molestation, interference, or obstruction and place the State, through its agents, the Board department or anyone under it authorized, in absolute and practical possession and occupation of such marshes, navigable streams, or waters.

Section 10-9-250.   Should any person attempt to mine or remove phosphate rock and phosphatic deposits from any of the marshes, navigable waters, or streams, including the Coosaw River phosphate territory, by and with any boat, vessel, marine dredge, or other appliances for such mining or removal, without the leave or license of the Board department thereto first had and obtained, all such boats, vessels, marine dredges, and other appliances are hereby declared forfeited to and property of the State, and the Attorney General, for and in behalf of the State, shall institute proceedings in any court of competent jurisdiction for the claim and delivery thereof, in the ordinary form of action for claim and delivery, in which action the title of the State shall be established by the proof of the commission of any such act of forfeiture by the person owning them, or his agents, in possession of such boats, vessels, marine dredges, or other appliances. In any such action the State shall not be called upon or required to give any bond or obligation such as is required by parties plaintiff in action for claim and delivery.

Section 10-9-260.   Any person wilfully interfering with, molesting, or obstructing or attempting to interfere with, molest, or obstruct the State or the State Budget and Control Board Department of Health and Environmental Control or anyone by it authorized or licensed in the peaceable possession and occupation of any of the marshes, navigable streams, or waters of the State, including the Coosaw River phosphate territory, or who shall dig or mine or attempt to dig or mine any of the phosphate rock or phosphatic deposits of this State without a license so to do issued by the Board department shall be punished for each offense by a fine of not less than one hundred dollars nor more than five hundred dollars or imprisonment for not less than one nor more than twelve months, or both, at the discretion of the court.

Section 10-9-270.   The Board department shall report annually to the General Assembly its actions and doings under this article during the year to the time of the meeting of the assembly, with an itemized account of its expenses for the year incurred in connection with its duties and powers under this article.


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  Article 5

Geothermal Resources

Section 10-9-310.   For purposes of this article 'geothermal resources' mean means the natural heat of the earth at temperatures greater than forty degrees Celsius and includes:

(1)   the energy, including pressure, in whatever form present in, resulting from, created by, or that may be extracted from that natural heat.;

(2)   the material medium, including the brines, water, and steam naturally present, as well as any substance artificially introduced to serve as a heat transfer medium.;

(3)   all dissolved or entrained minerals and gases that may be obtained from the material medium but excluding hydrocarbon substances and helium.

Section 10-9-320.   The State Budget and Control Board (board) Department of Health and Environmental Control may lease development rights to geothermal resources underlying surface lands owned by the State. The board department must promulgate regulations regarding the method of lease acquisition, lease terms, and conditions due the State under lease operations. The South Carolina Department of Natural Resources is designated as the exclusive agent for the board department in selecting lands to be leased, administering the competitive bidding for leases, administering the leases, receiving and compiling comments from other state agencies concerning the desirability of leasing the state lands proposed for leasing and such other activities that pertain to geothermal resource leases as may be included herein as responsibilities of the board department.

Section 10-9-330.   Any lease of rights to drill for and use oil, natural gas, or minerals on public or private lands must not allow drilling for or use of geothermal energy by the lessee unless the instrument creating the lease specifically provides for such use."

O.     Section 10-11-50 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:

"Section 10-11-50.   It shall be unlawful for anyone to park any vehicle on any of the property described in Section 10-11-40 and subsection (2) of Section 10-11-80 except in the spaces and manner now marked and designated or that may hereafter be marked and designated by the State Budget and Control Board Department of Administration, in cooperation with the Department of Transportation, or to block or impede traffic through the alleys and driveways."


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P.     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."

Q.     Section 10-11-110 of the 1976 Code is amended to read:

"Section 10-11-110.   In connection with traffic and parking violations only, the watchmen and policemen referred to in Section 10-11-90, state highway patrolmen and policemen of the City of Columbia shall have the right to issue and use parking tickets of the type used by the City of Columbia, with such changes as are necessitated hereby, to be prepared and furnished by the Budget and Control Board Department of Administration, upon the issuance of which the procedures shall be followed as prevail in connection with the use of parking tickets by the City of Columbia. Nothing herein shall restrict the application and use of regular arrest warrants."

R.     Section 10-11-140 of the 1976 Code is amended to read:

"Section 10-11-140.   Nothing contained in this article shall be construed to abridge the authority of the State Budget and Control Board Department of Administration to grant permission to use the State House grounds for educational, electrical decorations, and similar purposes."

S.     Section 10-11-330 of the 1976 Code is amended to read:

"Section 10-11-330.   It shall be unlawful for any person or group of persons willfully wilfully and knowingly: (a) to enter or to remain within the capitol building unless such person is authorized by law or by rules of the House or Senate, or of the State Budget and Control Board or the Department of Administration regulations, respectively, when such entry is done for the purpose of uttering loud, threatening, and abusive language or to engage in any disorderly or disruptive conduct with the intent to impede, disrupt, or disturb the orderly conduct of any session of the legislature or the orderly conduct within the building or of any hearing before or any deliberation of any committee or subcommittee of the legislature; (b) to obstruct or to impede passage within the capitol grounds or building; (c) to engage in


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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."

T.     1.     Section 11-7-10 of the 1976 Code is amended to read:

"Section 11-7-10.   The State Budget and Control Board Fiscal Accountability Authority shall select the State Auditor, who shall select necessary assistants in conformity with the appropriations for the office.

2.   Section 11-7-30 of the 1976 Code is amended to read:

"Section 11-7-30.     Reports of audit findings must be available to the Governor, Budget and Control Board State Fiscal Accountability Authority, General Assembly, and the general public. The State Auditor shall notify the Governor, the General Assembly, and the Budget and Control Board State Fiscal Accountability Authority immediately upon the issuance of an audit report."

U.   1.   Sections 11-9-610, 11-9-620, and 11-9-630 of the 1976 Code are amended to read:

"Section 11-9-610.   The State Budget and Control Board State Fiscal Accountability Authority shall receive and manage the incomes and revenues set apart and applied to the Sinking Fund of the State. The authority shall report annually on the financial status of the Sinking Fund to the General Assembly.

Section 11-9-620.   All monies arising from the redemption of lands, leases, and sales of property or otherwise coming to the State Budget and Control Board authority for the Sinking Fund, shall must be paid into the State Treasury and shall be kept on a separate account by the treasurer as a fund to be drawn upon the warrants of the Board department for the exclusive uses and purposes which have been or shall be declared in relation to the Sinking Fund.

Section 11-9-630.   The State Budget and Control Board authority shall sell and convey, for and on behalf of the State, all such real property, assets, and effects belonging to the State as are not in actual public use, such sales to be made from time to time in such manner and upon such terms as it may deem most advantageous to the State. This shall not be construed to authorize the sale by the Board of any property held in trust for a specific purpose by the State or the property of the State in the phosphate rocks or phosphatic deposits in the beds of the navigable streams and waters and marshes of the State."

2.   Sections 11-9-665, 11-9-670, and 11-9-680 of the 1976 Code are amended to read:


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"Section 11-9-665.   (A)   The Budget and Control Board authority on behalf of the State may acquire for use by the State real property as investments of any reserve or sinking fund of the State which is not pledged for payment of bonded indebtedness. Provided, however, such expenditures from the reserve or sinking fund shall not exceed two million dollars. Upon any such acquisition the State Budget and Control Board authority shall execute a note evidencing such investment upon such terms and conditions as may be appropriate in each instance. The note shall include a pledge of the board to apply on its payment all net income derived from the property so acquired; provided, that funding for any permanent project on the property shall provide for repayment of any outstanding balance to the appropriate reserve or sinking fund. Provided, further, that the purchase price of any property so acquired, including improvements existing or proposed, shall not be in excess of the actual value thereof as established by at least two appraisals satisfactory to the said board. Any property not put to permanent use by the State or one of its agencies or departments within six years shall be sold at public auction and the proceeds repaid to the appropriate reserve or sinking fund. Provided, further, that no property shall be acquired pursuant to the provisions of this section when the grantor has entered into a contract with any county, city or other political subdivision which created a tax obligation with respect to the property and such obligation has not been resolved to the satisfaction of the county, city or other political subdivision involved.

(B)   Provided, that prior to purchasing, or contracting to purchase any real property the Budget and Control Board authority shall engage an independent engineer to make borings so as to insure that the property is adaptable to the contemplated use.

Section 11-9-670.   Subject to the limitations set forth in Section 11-9-660, the State Budget and Control Board authority shall have full power to hold, purchase, sell, assign, transfer and dispose of any of the securities and investments in which the Sinking Fund shall have been invested.

Section 11-9-680.   The State Budget and Control Board authority shall annually report to the General Assembly the condition of the Sinking Fund and all sales or other transactions connected therewith."

V.     Sections 11-35-3820 and 11-35-3840, of the 1976 Code are further amended to read:

Section 11-35-3820.   Except as provided in Section 11-35-1580 and Section 11-35-3830 and the regulations pursuant to them, the sale of all


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state-owned supplies, or personal property not in actual public use must be conducted and directed by the designated board office through the Division of General Services of the Department of Administration. The sales must be held at such places and in a manner as in the judgment of the designated board office Division of General Services is most advantageous to the State. Unless otherwise determined, sales must be by either public auction or competitive sealed bid to the highest bidder. Each governmental body shall inventory and report to the designated board office all surplus personal property not in actual public use held by that governmental body for sale. The designated board office division shall deposit the proceeds from the sales, less expense of the sales, in the state general fund or as otherwise directed by regulation. This policy and procedure applies to all governmental bodies unless exempt by law.

Section 11-35-3840.   The State Budget and Control Board board may license for public sale publications, including South Carolina Business Opportunities, materials pertaining to training programs, and information technology products that are developed during the normal course of the board's its activities. The items must be licensed at reasonable costs established in accordance with the cost of the items. All proceeds from the sale of the publications and materials must be placed in a revenue account and expended for the cost of providing the services."

W.     Section 11-35-5270 of the 1976 Code is amended to read:

"Section 11-35-5270.   A Small and Minority Business Assistance Office (SMBAO) shall The Division of Small and Minority Business Contracting and Certification must be established within the Department of Administration to assist the board Department of Administration and the Department of Revenue in carrying out the intent of this article. The responsibilities of the division shall include, but are not be limited to, the following:

(1)   Assist assisting the chief procurement officers and governmental bodies in developing policies and procedures which will facilitate awarding contracts to small and minority firms;

(2)   Assist assisting the chief procurement officers in aiding small and minority-owned firms and community-based business in developing organizations to provide technical assistance to minority firms;

(3)   Assist assisting with the procurement and management training for small and minority firm owners;


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(4)   Assist assisting in the identification of responsive small and minority firms;

(5)   Receive and process receiving and processing applications to be registered as a minority firm in accordance with Section 11-35-5230(B);

(6)   The SMBAO may revoke revoking the certification of any firm which that has been found to have engaged in any of the following:

(a)   fraud or deceit in obtaining the certification;

(b)   furnishing of substantially inaccurate or incomplete information concerning ownership or financial status;

(c)   failure to report changes which affect the requirements for certification;

(d)   gross negligence, incompetence, financial irresponsibility, or misconduct in the practice of his business; or

(e)   wilful violation of any provision of this article.

(7)   After a period of one year, the SMBAO division may reissue a certificate of eligibility provided acceptable evidence has been presented to the commission that the conditions which caused the revocation have been corrected."

X.   1.   Section 11-42-30(1) of the 1976 Code is amended to read:

"Section 11-42-30.   As used in this chapter:

(1)   'Board' means the governing board of the State Budget and Control Board Fiscal Accountability Authority."

2.   Section 11-42-40 of the 1976 Code is amended to read:

"Section 11-42-40.   (A) There is created the Division of Regional Development as a division within the State Budget and Control Board Fiscal Accountability Authority. The division shall report to the executive director of the board.

3.   Section 11-42-60 of the 1976 Code is amended to read:

"Section 11-42-60.   The division shall function as a division of the State Budget and Control Board Fiscal Affairs Authority and has all administrative and program authority necessary to fulfill its public mandate including, but not limited to, the following powers:

(1)   to solicit, receive, and expend public and private funds from any relevant sources and entities in order to carry out the purposes of the division; and

(2)   to prescribe and charge fees for its services, which fees must be retained and expended for division purposes."

Y.     Section 11-53-20 of the 1976 Code is amended to read:

"Section 11-53-20.   It is mandated by the General Assembly that the SCEIS shall be implemented for all agencies, with the exception of


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lump sum agencies, the General Assembly or its respective branches or its committees, Legislative Council, and the Office of Legislative Printing and Information Technology Resources Services Agency. The South Carolina Enterprise Information System Oversight Committee, as appointed by the Comptroller General, shall provide oversight for the implementation and continued operations of the system. The Budget and Control Board Department of Administration is authorized to use any available existing technology resources to assist with funding of the initial implementation of the system. It is further the intent of the General Assembly to fund the central government costs related to the implementation of the system. Agencies are required to implement SCEIS at a cost and in accordance with a schedule developed and approved by the SCEIS Oversight Committee. Full implementation must be completed within five years. An agency's implementation cost shall be borne by that agency through existing appropriations, grants, and/or the State Treasurer's Master Lease Program and shall be for the implementation of the "back office" administrative functions that are common to all agencies in the areas of purchasing, finance, human resources, payroll, and budgeting. The Department of Administration must make an appropriation request for the implementation and operational costs for SCEIS, and the funding for those costs must be set out as a specific line item in the annual general appropriations act. Any issues arising with regard to project scope, implementation schedule, and associated costs shall be directed to the SCEIS Oversight Committee for resolution. In cooperation with the Comptroller General and the Budget and Control Board's Division of the State CIO Department of Administration, the South Carolina Enterprise Information System Oversight Committee is required to report by January 31, of the fiscal year to the Governor, the Chairman of the Senate Finance Committee, and the Chairman of the House Ways and Means Committee the status of the system's implementation and ongoing operations."

Z.     1.   Section 13-7-10(1) of the 1976 Code is amended to read:

"(10)   'Decommissioning trust fund' means the trust fund established pursuant to a Trust Agreement dated March 4, 1981, among Chem-Nuclear Systems, Inc. (grantor), the South Carolina Budget and Control Board State Fiscal Accountability Authority (beneficiary as the successor in interest to the South Carolina Budget and Control Board), and the South Carolina State Treasurer (trustee), whose purpose is to assure adequate funding for decommissioning of the disposal site, or any successor fund with a similar purpose.


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2.   Section 13-7-30 of the 1976 Code is amended to read:

"Section 13-7-30.   For purposes of this article, the State Budget and Control Board Fiscal Accountability Authority, hereinafter in this section referred to as the board, is designated as the agency of the State which shall have the following powers and duties that are in accord with its already established responsibilities for custody of state properties, and for the management of all state sinking funds, insurance, and analogous fiscal matters that are relevant to state properties:

(1)   expend state funds in order to acquire, develop, and operate land and facilities. This acquisition may be by lease, dedication, purchase, or other arrangements. However, the state's functions under the authority of this section are limited to the specific purposes of this article;

(2)   lease, sublease, or sell real and personal properties to public or private bodies;

(3)   assure the maintenance of insurance coverage by state licensees, lessees, or sublessees as will in the opinion of the board protect the citizens of the State against nuclear incident that may occur on state-controlled atomic energy facilities;

(4)   assume responsibility for extended custody and maintenance of radioactive materials held for custodial purposes at any publicly or privately operated facility located within the State, in the event the parties operating these facilities abandon their responsibility, or when the license for the facility is ultimately transferred to an agency of the State, and whenever the federal government or any agency of the federal government has not assumed the responsibility.

In order to finance such extended custody and maintenance as the board may undertake, the board may collect fees from private or public parties holding radioactive materials for custodial purposes. These fees must be sufficient in each individual case to defray the estimated cost of the board's custodial management activities for that individual case. The fees collected for such custodial management activities shall also be sufficient to provide additional funds for the purchase of insurance which shall be purchased for the protection of the State and the general public for the period such radioactive material considering its isotope and curie content together with other factors may present a possible danger to the general public in the event of migration or dispersal of such radioactivity. All such fees, when received by the board, must be transmitted to the State Treasurer. The Treasurer must place the money in a special account, in the nature of a revolving trust fund, which may be designated 'extended care maintenance fund', to be disbursed on


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authorization of the board. Monies in the extended care maintenance funds must be invested by the board in the manner as other state monies. However, any interest accruing as a result of investment must accrue to this extended care maintenance fund. Except as authorized in Section 48-46-40(B)(7)(b) and (D)(2), the extended care maintenance fund must be used exclusively for custodial, surveillance, and maintenance costs during the period of institutional control and during any post-closure and observation period specified by the Department of Health and Environmental Control, and for activities associated with closure of the site. Funds from the extended care maintenance fund shall not be used for site closure activities or for custodial, surveillance, and maintenance performed during the post-closure observation period until all funds in the decommissioning trust account are exhausted.

(5)   Enter into an agreement with the federal government or any of its authorized agencies to assume extended maintenance of lands donated, leased, or purchased from the federal government or any of its authorized agencies and used for development of atomic energy resources or as custodial site for radioactive material."

3.   Sections 13-7-810, 13-7-830, and 13-7-860 of the 1976 Code are amended to read:

"Section 13-7-810.   There is hereby established a Governor's Nuclear Advisory Council in the Department of Administration, which shall be responsible to the Director of the Department of Administration and report to the Governor.

Section 13-7-830.   The recommendations described in Section 13-7-620 shall be made available to the General Assembly, and the Governor, and the Budget and Control Board.

Section 13-7-860.   Staff support for the council shall be provided by the State Energy Office Department of Administration."

AA.   Section 16-3-1620(A), (B), and (C) of the 1976 Code is amended to read:

"(A)   The Crime Victims' Ombudsman of the Office of the Governor is created in the Department of Administration. The Crime Victims' Ombudsman is appointed by the Governor with the advice and consent of the Senate and serves at the pleasure of the Governor.

(B)   The Crime Victims' Ombudsman of the Office of the Governor Department of Administration shall:

(1)   refer crime victims to the appropriate element of the criminal and juvenile justice systems or victim assistance programs, or both, when services are requested by crime victims or are necessary as determined by the ombudsman;


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(2)   act as a liaison between elements of the criminal and juvenile justice systems, victim assistance programs, and victims when the need for liaison services is recognized by the ombudsman; and

(3)   review and attempt to resolve complaints against elements of the criminal and juvenile justice systems or victim assistance programs, or both, made to the ombudsman by victims of criminal activity within the state's jurisdiction.

(C)   There is created within the Crime Victims' Ombudsman Office of the Office of the Governor Department of Administration, the Office of Victim Services Education and Certification which shall:

(1)   provide oversight of training, education, and certification of victim assistance programs;

(2)   with approval of the Victim Services Coordinating Council, promulgate training standards and requirements;

(3)   approve training curricula for credit hours toward certification;

(4)   provide victim service provider certification; and

(5)   maintain records of certified victim service providers."

BB.   Section 16-3-1680 of the 1976 Code as added by Act 271 of 2008 is amended to read:

"Section 16-3-1680.   The Crime Victims' Ombudsman of the Office of the Governor through the Department of Administration may promulgate those regulations necessary to assist it in performing its required duties as provided by this chapter."

CC.   1.   Section 25-11-10 of the 1976 Code amended to read:

"Section 25-11-10.   A Division of Veterans' Affairs in the Office of the is hereby created in the Department of Administration for the purpose of assisting ex-servicemen in securing the benefits to which they are entitled under the provisions of federal legislation and under the terms of insurance policies issued by the federal government for their benefit. This division shall be under the direct supervision of a panel consisting of the Governor as chairman, the Attorney General for the purpose of giving legal advice, and the Adjutant and Inspector General."

2.   Section 25-11-80(C)(3) of the 1976 Code is amended to read:

"(3)   the Budget and Control Board Department of Administration."

3.   Section 25-11-90(E) of the 1976 Code is amended to read:

"(E)   The preparation and distribution of the roster is subject to the availability of funds as appropriated by the General Assembly to the Governor's Office Department of Administration, Division of Veterans Veterans' Affairs for this purpose. These rosters and their distribution


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must be maintained and updated based on workloads and availability of funds."

4.   Section 25-11-310(2) of the 1976 Code is amended to read:

"(2)   'Division' means the Division of Veterans Veterans' Affairs in the Office of the Governor Department of Administration."

DD.   Section 44-53-530(a) and (b) of the 1976 Code, as last amended by Act 345 of 2006, is further amended to read:

"(a)   Forfeiture of property defined in Section 44-53-520 must be accomplished by petition of the Attorney General or his designee or the circuit solicitor or his designee to the court of common pleas for the jurisdiction where the items were seized. The petition must be submitted to the court within a reasonable time period following seizure and shall set forth the facts upon which the seizure was made. The petition shall describe the property and include the names of all owners of record and lienholders of record. The petition shall identify any other persons known to the petitioner to have interests in the property. Petitions for the forfeiture of conveyances shall also include: the make, model, and year of the conveyance, the person in whose name the conveyance is registered, and the person who holds the title to the conveyance. The petition shall set forth the type and quantity of the controlled substance involved. A copy of the petition must be sent to each law enforcement agency which has notified the petitioner of its involvement in effecting the seizure. Notice of hearing or rule to show cause must be directed to all persons with interests in the property listed in the petition, including law enforcement agencies which have notified the petitioner of their involvement in effecting the seizure. Owners of record and lienholders of record may be served by certified mail, to the last known address as appears in the records of the governmental agency which records the title or lien.

The judge shall determine whether the property is subject to forfeiture and order the forfeiture confirmed. If the judge finds a forfeiture, he shall then determine the lienholder's interest as provided in this article. The judge shall determine whether any property must be returned to a law enforcement agency pursuant to Section 44-53-582.

If there is a dispute as to the division allocation of the proceeds of forfeited property among participating law enforcement agencies, this issue must be determined by the judge. The proceeds from a sale of property, conveyances, and equipment must be disposed of pursuant to subsection (e) of this section.

All property, conveyances, and equipment which will not be reduced to proceeds may be transferred to the law enforcement agency or


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agencies or to the prosecution agency. Upon agreement of the law enforcement agency or agencies and the prosecution agency, conveyances and equipment may be transferred to any other appropriate agency. Property transferred must not be used to supplant operating funds within the current or future budgets. If the property seized and forfeited is an aircraft or watercraft and is transferred to a state law enforcement agency or other state agency pursuant to the provisions of this subsection, its use and retainage by that agency shall be at the discretion and approval of the Budget and Control Board Department of Administration.

If a defendant or his attorney sends written notice to the petitioner or the seizing agency of his interest in the subject property, service may be made by mailing a copy of the petition to the address provided and service may not be made by publication. In addition, service by publication may not be used for a person incarcerated in a South Carolina Department of Corrections facility, a county detention facility, or other facility where inmates are housed for the county where the seizing agency is located. The seizing agency shall check the appropriate institutions after receiving an affidavit of nonservice before attempting service by publication.

(b)   If the property is seized by a state law enforcement agency and is not transferred by the court to the seizing agency, the judge shall order it transferred to the Division of General Services of the Department of Administration for sale. Proceeds may be used by the division for payment of all proper expenses of the proceedings for the forfeiture and sale of the property, including the expenses of seizure, maintenance, and custody, and other costs incurred by the implementation of this section. The net proceeds from any sale must be remitted to the State Treasurer as provided in subsection (g) of this section. The Division of General Services of the Department of Administration may authorize payment of like expenses in cases where monies, negotiable instruments, or securities are seized and forfeited."

EE.   Section 44-96-140 of the 1976 Code is amended to read:

"Section 44-96-140.   (A)   Not later than twelve months after the date on which the department submits the state solid waste management plan to the Governor and to the General Assembly, the General Assembly, the Governor's Office of the Governor, the Judiciary, each state agency, and each state-supported institution of higher education shall:

(1)   establish a source separation and recycling program in cooperation with the department and the Division of General Services


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of the State Budget and Control Board Department of Administration for the collection of selected recyclable materials generated in state offices throughout the State including, but not limited to, high-grade office paper, corrugated paper, aluminum, glass, tires, composting materials, plastics, batteries, and used oil;

(2)   provide procedures for collecting and storing recyclable materials, containers for storing materials, and contractual or other arrangements with collectors or buyers of the recyclable materials, or both;

(3)   evaluate the amount of waste paper material recycled and make all necessary modifications to the recycling program to ensure that all waste paper materials are recycled to the maximum extent feasible; and

(4)   establish and implement, in cooperation with the department and the Division of General Services of the Department of Administration, a solid waste reduction program for materials used in the course of agency operations. The program shall be designed and implemented to achieve the maximum feasible reduction of solid waste generated as a result of agency operations.

(B)   Not later than September fifteen of each year, each state agency and each state-supported institution of higher learning shall submit to the department a report detailing its source separation and recycling program and a review of all goods and products purchased during the previous fiscal year by those agencies and institutions containing recycled materials using the content specifications established by the Office of Materials Management Division of General Services, Department of Administration.

(C)   By November first of each year the department shall submit a report to the Governor and to the General Assembly reviewing all goods and products purchased by the State and determining what percentage of state purchases contain recycled materials using content specifications established by the Office of Materials Management, Division of General Services, Department of Administration. The report also must review existing procurement regulations for the purchase of products and materials and must identify any portions of such regulations that discriminate against products and materials with recycled content and products and materials which are recyclable.

(D)   Not later than one year after this chapter is effective, the Division of General Services, Department of Administration shall amend the procurement regulations to eliminate the portions of the regulations identified in its report as discriminating against products


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and materials with recycled content and products and materials which are recyclable.

(E)   Not later than one year after the effective date of the amendments to the procurement regulations, the General Assembly, the Governor's Office of the Governor, the Judiciary, all state agencies, all political subdivisions using state funds to procure items, and all persons contracting with such agency or political subdivision where such persons procure items with state funds shall procure products and materials with recycled content and products and materials which are recyclable where practicable, as determined by the Office of Materials Management, Division of General Services, Department of Administration. The list of recycled content specifications must be updated annually. It is the goal of the General Assembly for state and local governmental agencies to reflect a twenty-five percent goal in their procurement policies. The decision not to procure such items shall be based on a determination that such procurement items:

(1)   are not available within a reasonable period of time;

(2)   fail to meet the performance standards set forth in the applicable specifications; or

(3)   are only available at a price that exceeds by more than seven and one- half percent the price of alternative items.

(F)   Not later than six months after this chapter is effective, and annually thereafter, the Department of Transportation shall submit a report to the Governor and to the General Assembly on the use of:

(1)   compost as a substitute for regular soil amendment products in all highway projects;

(2)   solid waste including, but not limited to, ground rubber from tires and fly ash or mixtures of them from coal-fired electrical facilities in road surfacing of subbase materials;

(3)   solid waste including, but not limited to, glass aggregate, plastic, and fly ash in asphalt or concrete; and

(4)   recycled mixed-plastic materials for guardrail posts, right-of-way fence posts, and sign supports."

FF.     Section 48-46-30(4) and (5) of the 1976 Code are amended to read:

"(4)   'Board' means the South Carolina Budget and Control Board or its designated official.

(5)(4)   'Decommissioning trust fund' means the trust fund established pursuant to a Trust Agreement dated March 4, 1981, among Chem-Nuclear Systems, Inc. (grantor), the South Carolina Budget and Control Board State Fiscal Accountability Authority (beneficiary as the


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successor in interest to the South Carolina Budget and Control Board), and the South Carolina State Treasurer (trustee), whose purpose is to assure adequate funding for decommissioning of the disposal site, or any successor fund with a similar purpose.

(5)   'Office' means the Office of Regulatory Staff."

GG.   Section 48-46-40 of the 1976 Code is amended to read:

"Section 48-46-40.   (A)(1)   The board office shall approve disposal rates for low-level radioactive waste disposed at any regional disposal facility located within the State. The approval of disposal rates pursuant to this chapter is neither a regulation nor the promulgation of a regulation as those terms are specially used in Title 1, Chapter 23.

(2)   The board office shall adopt a maximum uniform rate schedule for regional generators containing disposal rates that include the administrative surcharges specified in Section 48-46-60(B) and surcharges for the extended custody and maintenance of the facility pursuant to Section 13-7-30(4) and that do not exceed the approximate disposal rates, excluding any access fees and including a specification of the methodology for calculating fees for large components, generally applicable to regional generators on September 7, 1999. Any disposal rates contained in a valid written agreement that were applicable to a regional generator on September 7, 1999, that differ from rates in the maximum uniform rate schedule will continue to be honored through the term of such agreement. The maximum uniform rate schedule approved under this section becomes effective immediately upon South Carolina's membership in the Atlantic Compact. The maximum uniform rate schedule shall be the rate schedule applicable to regional waste whenever it is not superseded by an adjusted rate approved by the board office pursuant to paragraph (3) of this subsection or by special disposal rates approved pursuant to paragraphs (5) or (6)(e) of this subsection.

(3)   The board office may at any time of its own initiative, at the request of a site operator, or at the request of the compact commission, adjust the disposal rate or the relative proportions of the individual components that constitute the overall rate schedule. Except as adjusted for inflation in subsection (4), rates adjusted in accordance with this section, that include the administrative surcharges specified in Section 48-46-60(B) and surcharges for the extended custody and maintenance of the facility pursuant to Section 13-7-30(4), may not exceed initial disposal rates set by the board department pursuant to subsection (2).


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(4)   In March of each year the board office shall adjust the rate schedule based on the most recent changes in the most nearly applicable Producer Price Index published by the Bureau of Labor Statistics as chosen by the board office or a successor index.

(5)   In consultation with the site operator, the board office or its designee, on a case-by-case basis, may approve special disposal rates for regional waste that differ from the disposal rate schedule for regional generators set by the board office pursuant to subsections (2) and (3). Requests by the site operator for such approval shall be in writing to the board office. In approving such special rates, the board office or its designee, shall consider available disposal capacity, demand for disposal capacity, the characteristics of the waste, the potential for generating revenue for the State, or other relevant factors; provided, however, that the board office shall not approve any special rate for an entity owned by or affiliated with the site operator. Special disposal rates approved by the board office under this subsection shall be in writing and shall be kept confidential as proprietary business information for one year from the date when the bid or the request for proposal containing the special rate is accepted by the regional generator; provided, however, that such special rates when accepted by a regional generator shall be disclosed to the compact commission and to all other regional generators, which shall, to the extent permitted by applicable law, keep them confidential as proprietary business information for one year from the date when the bid or request for proposal containing this special rate is accepted by the regional generator. Within one business day of a special disposal rate's acceptance, the site operator shall notify the board office, the compact commission, and the regional generators of each special rate that has been accepted by a regional generator, and the board office, the compact commission, and regional generators may communicate with each other about such special rates. If any special rate approved by the board office for a regional generator is lower than a disposal rate approved by the board office for regional generators pursuant to subsections (2) and (3) for waste that is generally similar in characteristics and volume, the disposal rate for all regional generators shall be revised to equal the special rate for the regional generator. Regional generators may enter into contracts for waste disposal at such special rates and on comparable terms for a period of not less than six months. An officer of the site operator shall certify in writing to the board office and the compact commission each month that no regional generator's disposal rate exceeds any other regional generator's special


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rate for waste that is generally similar in characteristics and volume, and such certification shall be subject to periodic audit by the board office and the compact commission.

(6)(a)   To the extent authorized by the compact commission, the board office on behalf of the State of South Carolina may enter into agreements with any person in the United States or its territories or any interstate compact, state, U.S. territory, or U.S. Department of Defense military installation abroad for the importation of waste into the region for purposes of disposal at a regional disposal facility within South Carolina. No waste from outside the Atlantic Compact region may be disposed at a regional disposal facility within South Carolina, except to the extent that the board office is authorized by the compact commission to enter into agreements for importation of waste.

The board office shall authorize the importation of nonregional waste into the region for purposes of disposal at the regional disposal facility in South Carolina so long as nonregional waste would not result in the facility accepting more than the following total volumes of all waste:

(i)     160,000 cubic feet in fiscal year 2001;

(ii)   80,000 cubic feet in fiscal year 2002;

(iii)   70,000 cubic feet in fiscal year 2003;

(iv)   60,000 cubic feet in fiscal year 2004;

(v)   50,000 cubic feet in fiscal year 2005;

(vi)   45,000 cubic feet in fiscal year 2006;

(vii)   40,000 cubic feet in fiscal year 2007;

(viii)   35,000 cubic feet in fiscal year 2008.

After fiscal year 2008, the board office shall not authorize the importation of nonregional waste for purposes of disposal.

(b)   The board office may approve disposal rates applicable to nonregional generators. In approving disposal rates applicable to nonregional generators, the board office may consider available disposal capacity, demand for disposal capacity, the characteristics of the waste, the potential for generating revenue for the State, and other relevant factors.

(c)   Absent action by the board office under subsection (b) above to establish disposal rates for nonregional generators, rates applicable to these generators must be equal to those contained in the maximum uniform rate schedule approved by the board office pursuant to paragraph (2) or (3) of this subsection for regional generators unless these rates are superseded by special disposal rates approved by the board office pursuant to paragraph (6)(e) of this subsection.


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(d)   Regional generators shall not pay disposal rates that are higher than disposal rates for nonregional generators in any fiscal quarter.

(e)   In consultation with the site operator, the board office or its designee, on a case-by-case basis, may approve special disposal rates for nonregional waste that differ from the disposal rate schedule for nonregional generators set by the board office. Requests by the site operator for such approval shall be in writing to the board office. In approving such special rates, the board office or its designee shall consider available disposal capacity, demand for disposal capacity, the characteristics of the waste, the potential for generating revenue for the State, and other relevant factors; provided, however, that the board office shall not approve any special rate for an entity owned by or affiliated with the site operator. Special disposal rates approved by the board office under this subsection shall be in writing and shall be kept confidential as proprietary business information for one year from the date when the bid or request for proposal containing the special rate is accepted by the nonregional generator; provided, however, that such special rates when accepted by a nonregional generator shall be disclosed to the compact commission and to all regional generators, which shall, to the extent permitted by applicable law, keep them confidential as proprietary business information for one year from the date when the bid or request for proposal containing the special rate is accepted by the nonregional generator. Within one business day of a special disposal rate's acceptance, the site operator shall notify the board office, the compact commission, and the regional generators in writing of each special rate that has been accepted by a nonregional generator, and the board office, the compact commission, and regional generators may communicate with each other about such special rates. If any special rate approved by the board office for a nonregional generator is lower than a disposal rate approved by the board office for regional generators for waste that is generally similar in characteristics and volume, the disposal rate for all regional generators shall be revised to equal the special rate for the nonregional generator. Regional generators may enter into contracts for waste disposal at such special rate and on comparable terms for a period of not less than six months. An officer of the site operator shall certify in writing to the board office and the compact commission each month that no regional generator disposal rate exceeds any nonregional generator's special rate for waste that is generally similar in characteristics and volume, and such


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certification shall be subject to periodic audit by the board office and the compact commission.

(B)(1)   Effective upon the implementation of initial disposal rates by the board office under Section 48-46-40(A), the PSC is authorized and directed to identify allowable costs for operating a regional low-level radioactive waste disposal facility in South Carolina.

(2) In identifying the allowable costs for operating a regional disposal facility, the PSC shall:

(a)   prescribe a system of accounts, using generally accepted accounting principles, for disposal site operators, using as a starting point the existing system used by site operators;

(b)   assess penalties against disposal site operators if the PSC determines that they have failed to comply with regulations pursuant to this section; and

(c)   require periodic reports from site operators that provide information and data to the PSC and parties to these proceedings. The Office of Regulatory Staff shall obtain and audit the books and records of the site operators associated with disposal operations as determined applicable by the PSC.

(3)   Allowable costs include the costs of those activities necessary for:

(a)   the receipt of waste;

(b)   the construction of disposal trenches, vaults, and overpacks;

(c)   construction and maintenance of necessary physical facilities;

(d)   the purchase or amortization of necessary equipment;

(e)   purchase of supplies that are consumed in support of waste disposal activities;

(f)   accounting and billing for waste disposal;

(g)   creating and maintaining records related to disposed waste;

(h)   the administrative costs directly associated with disposal operations including, but not limited to, salaries, wages, and employee benefits;

(i)     site surveillance and maintenance required by the State of South Carolina, other than site surveillance and maintenance costs covered by the balance of funds in the decommissioning trust fund or the extended care maintenance fund;

(j)     compliance with the license, lease, and regulatory requirements of all jurisdictional agencies;


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(k)   administrative costs associated with collecting the surcharges provided for in subsections (B) and (C) of Section 48-46-60;

(l)     taxes other than income taxes;

(m)   licensing and permitting fees; and

(n)   any other costs directly associated with disposal operations determined by the PSC to be allowable.

Allowable costs do not include the costs of activities associated with lobbying and public relations, clean-up and remediation activities caused by errors or accidents in violation of laws, regulations, or violations of the facility operating license or permits, activities of the site operator not directly in support of waste disposal, and other costs determined by the PSC to be unallowable.

(4)   Within ninety days following the end of a fiscal year, a site operator may file an application with the PSC to adjust the level of an allowable cost under subsection (3), or to allow a cost not previously designated an allowable cost. A copy of the application must be provided to the Office of Regulatory Staff. The PSC shall process such application in accordance with its procedures. If such application is approved by the PSC, the PSC shall authorize the site operator to adjust allowable costs for the current fiscal year so as to compensate the site operator for revenues lost during the previous fiscal year.

(5)   A private operator of a regional disposal facility in South Carolina is authorized to charge an operating margin of twenty-nine percent. The operating margin for a given period must be determined by multiplying twenty-nine percent by the total amount of allowable costs as determined in this subsection, excluding allowable costs for taxes and licensing and permitting fees paid to governmental entities.

(6)   The site operator shall prepare and file with the PSC a Least Cost Operating Plan. The plan must be filed within forty-five days of enactment of this chapter and must be revised annually. The plan shall include information concerning anticipated operations over the next ten years and shall evaluate all options for future staffing and operation of the site to ensure least cost operation, including information related to the possible interim suspension of operations in accordance with subsection (B)(7). A copy of the plan must be provided to the Office of Regulatory Staff.

(7)(a)   If the board office, upon the advice of the compact commission or the site operator, concludes based on information provided to the board office, that the volume of waste to be disposed during a forthcoming period of time does not appear sufficient to generate receipts that will be adequate to reimburse the site operator for


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its costs of operating the facility and its operating margin, then the board office shall direct the site operator to propose to the compact commission plans including, but not necessarily limited to, a proposal for discontinuing acceptance of waste until such time as there is sufficient waste to cover the site operator's operating costs and operating margin. Any proposal to suspend operations must detail plans of the site operator to minimize its costs during the suspension of operations. Any such proposal to suspend operations must be approved by the Department of Health and Environmental Control with respect to safety and environmental protection.

(b)   Allowable costs applicable to any period of suspended operations must be approved by the PSC according to procedures similar to those provided herein for allowable operating costs. During any such suspension of operations, the site operator must be reimbursed by the board office from the extended care maintenance fund for its allowable costs and its operating margin. During the suspension funding to reimburse the board office, the PSC, and the State Treasurer under Section 48-46-60(B) and funding of the compact commission under Section 48-46-60(C) must also be allocated from the extended care maintenance fund as approved by the board office based on revised budgets submitted by the PSC, State Treasurer, and the compact commission.

(c)   Notwithstanding any disbursements from the extended care maintenance fund in accordance with any provision of this act, the board office shall continue to ensure, in accordance with Section 13-7-30, that the fund remains adequate to defray the costs for future maintenance costs or custodial and maintenance obligations of the site and other obligations imposed on the fund by this chapter.

(d)   The PSC may promulgate regulations and policies necessary to execute the provisions of this section.

(8)   The PSC may use any standard, formula, method, or theory of valuation reasonably calculated to arrive at the objective of identifying allowable costs associated with waste disposal. The PSC may consider standards, precedents, findings, and decisions in other jurisdictions that regulate allowable costs for radioactive waste disposal.

(9)   In all proceedings held pursuant to this section, the board office shall participate as a party representing the interests of the State of South Carolina, and the compact commission may participate as a party representing the interests of the compact states. The Executive Director of the Office of Regulatory Staff and the Attorney General of the State of South Carolina shall be parties to any such proceeding.


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Representatives from the Department of Health and Environmental Control shall participate in proceedings where necessary to determine or define the activities that a site operator must conduct in order to comply with the regulations and license conditions imposed by the department. Other parties may participate in the PSC's proceedings upon satisfaction of standing requirements and compliance with the PSC's procedures. Any site operator submitting records and information to the PSC may request that the PSC treat such records and information as confidential and not subject to disclosure in accordance with the PSC's procedures.

(10)   In all respects in which the PSC has power and authority under this chapter, it shall conduct its proceedings under the South Carolina Administrative Procedures Act and the PSC's rules and regulations. The PSC is authorized to compel attendance and testimony of a site operator's directors, officers, agents, or employees.

(11)   At any time the compact commission, the board office, or any generator subject to payment of rates set pursuant to this chapter may file a petition against a site operator alleging that allowable costs identified pursuant to this chapter are not in conformity with the directives of this chapter or the directives of the PSC or that the site operator is otherwise not acting in conformity with the requirements of this chapter or directives of the PSC. Upon filing of the petition, the PSC shall cause a copy of the petition to be served upon the site operator. The petitioning party has the burden of proving that allowable costs or the actions of the site operator do not conform. The hearing shall conform to the rules of practice and procedure of the PSC for other cases.

(12)   The PSC shall encourage alternate forms of dispute resolution including, but not limited to, mediation or arbitration to resolve disputes between a site operator and any other person regarding matters covered by this chapter.

(C)   The operator of a regional disposal facility shall submit to the South Carolina Department of Revenue, the PSC, and the Office of Regulatory Staff, and the board office within thirty days following the end of each quarter a report detailing actual revenues received in the previous fiscal quarter and allowable costs incurred for operation of the disposal facility.

(D)(1)   Within 30 thirty days following the end of the fiscal year the operator of a regional disposal facility shall submit a payment made payable to the South Carolina Department of Revenue in an amount that is equal to the total revenues received for waste disposed in that


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fiscal year (with interest accrued on cash flows in accordance with instructions from the State Treasurer) minus allowable costs, operating margin, and any payments already made from such revenues pursuant to Section 48-46-60(B) and (C) for reimbursement of administrative costs to state agencies and the compact commission. The Department of Revenue shall deposit the payment with the State Treasurer.

(2)   If in any fiscal year total revenues do not cover allowable costs plus the operating margin, the board office must reimburse the site operator its allowable costs and operating margin from the extended care maintenance fund within thirty days after the end of the fiscal year. The board office shall as soon as practicable authorize a surcharge on waste disposed in an amount that will fully compensate the fund for the reimbursement to the site operator. In the event that total revenues for a fiscal year do not cover allowable costs plus the operating margin, or quarterly reports submitted pursuant to subsection (C) indicate that such annual revenue may be insufficient, the board office shall consult with the compact commission and the site operator as early as practicable on whether the provisions of Section 48-46-40(B)(7) pertaining to suspension of operations during periods of insufficient revenues should be invoked.

(E)   Revenues received pursuant to item (1) of subsection (D) must be allocated as follows:

(1)   The South Carolina State Treasurer shall distribute the first two million dollars received for waste disposed during a fiscal year to the County Treasurer of Barnwell County for distribution to each of the parties to and beneficiaries of the order of the United States District Court in C.A. No. 1:90-2912-6 on the same schedule of allocation as is established within that order for the distribution of 'payments in lieu of taxes' paid by the United States Department of Energy.

(2)   All revenues in excess of two million dollars received from waste disposed during the previous fiscal year must be deposited in a fund called the 'Nuclear Waste Disposal Receipts Distribution Fund'. Any South Carolina waste generator whose disposal fees contributed to the fund during the previous fiscal year may submit a request for a rebate of 33.33 percent of the funds paid by the generator during the previous fiscal year for disposal of waste at a regional disposal facility. These requests along with invoices or other supporting material must be submitted in writing to the State Treasurer within fifteen days of the end of the fiscal year. For this purpose disposal fees paid by the generator must exclude any fees paid pursuant to Section 48-46-60(C) for compact administration and fees paid pursuant to Section


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48-46-60(B) for reimbursement of the PSC, the Office of Regulatory Staff, the State Treasurer, and the board office for administrative expenses under this chapter. Upon validation of the request and supporting documentation by the State Treasurer, the State Treasurer shall issue a rebate of the applicable funds to qualified waste generators within sixty days of the receipt of the request. If funds in the Nuclear Waste Disposal Receipts Distribution Fund are insufficient to provide a rebate of 33.33 percent to each generator, then each generator's rebate must be reduced in proportion to the amount of funds in the account for the applicable fiscal year.

(3)   All funds deposited in the Nuclear Waste Disposal Receipts Distribution Fund for waste disposed for each fiscal year, less the amount needed to provide generators rebates pursuant to item (2), shall be deposited by the State Treasurer in the 'Children's Education Endowment Fund'. Thirty percent of these monies must be allocated to Higher Education Scholarship Grants and used as provided in Section 59-143-30, and seventy percent of these monies must be allocated to Public School Facility Assistance and used as provided in Chapter 144, of Title 59.

(F)   Effective beginning fiscal year 2001-2002, there is appropriated annually from the general fund of the State to the Higher Education Scholarship Grants share of the Children's Education Endowment whatever amount is necessary to credit to the Higher Education Scholarship Grants share an amount not less than the amount credited to that portion of the endowment in fiscal year 1999-2000. Revenues credited to the endowment pursuant to this subsection, for purposes of Section 59-143-10, are deemed to be received by the endowment pursuant to the former provisions of Section 48-48-140(C)."

HH.   Section 48-46-50 of the 1976 Code is amended to read:

"Section 48-46-50.   (A)   The Governor shall appoint two commissioners to the Atlantic Compact Commission and may appoint up to two alternate commissioners. These alternate commissioners may participate in meetings of the compact commission in lieu of and upon the request of a South Carolina commissioner. Technical representatives from the Department of Health and Environmental Control, the board office, the PSC, and other state agencies may participate in relevant portions of meetings of the compact commission upon the request of a commissioner, alternate commissioner, or staff of the compact commission, or as called for in the compact commission bylaws.


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(B)   South Carolina commissioners or alternate commissioners to the compact commission may not vote affirmatively on any motion to admit new member states to the compact unless that state volunteers to host a regional disposal facility.

(C)   Compact commissioners or alternate commissioners to the Atlantic Compact Commission may not vote to approve a regional management plan or any other plan or policy that allows for acceptance at the Barnwell regional disposal facility of more than a total of 800,000 cubic feet of waste from Connecticut and New Jersey.

(D)   South Carolina's commissioners or alternate commissioners to the compact commission shall cast any applicable votes on the compact commission in a manner that authorizes the importation of waste into the region for purposes of disposal at a regional disposal facility in South Carolina so long as importation would not result in the facility accepting more than the following total volumes of all waste:

(1)   160,000 cubic feet in fiscal year 2001;

(2)   80,000 cubic feet in fiscal year 2002;

(3)   70,000 cubic feet in fiscal year 2003;

(4)   60,000 cubic feet in fiscal year 2004;

(5)   50,000 cubic feet in fiscal year 2005;

(6)   45,000 cubic feet in fiscal year 2006;

(7)   40,000 cubic feet in fiscal year 2007;

(8)   35,000 cubic feet in fiscal year 2008.

South Carolina's commissioners or alternate commissioners shall not vote to approve the importation of waste into the region for purposes of disposal in any fiscal year after 2008."

II.   Section 48-46-60 of the 1976 Code is amended to read:

"Section 48-46-60.   (A)   The Governor and the board office are authorized to take such actions as are necessary to join the Atlantic Compact including, but not limited to, petitioning the Compact Commission for membership and participating in any and all rulemaking processes. South Carolina's membership in the Atlantic Compact pursuant to this chapter is effective July 1, 2000, if by that date the Governor certifies to the General Assembly that the Compact Commission has taken each of the actions specified below. If the Compact Commission by July 1, 2000, has not taken each of the actions specified below, then South Carolina's membership shall become effective as soon thereafter as the Governor certifies that the Atlantic Compact Commission has taken these actions:

(1)   adopted a binding regulation or policy in accordance with Article VII(e) of the compact establishing conditions for admission of a


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party state that are consistent with this act and ordered that South Carolina be declared eligible to be a party state consistent with those conditions;

(2)   adopted a binding regulation or policy in accordance with Article IV(i)(11) of the Atlantic Compact authorizing a host state to enter into agreements on behalf of the compact and consistent with criteria established by the compact commission and consistent with the provisions of Section 48-46-40(A)(6)(a) and Section 48-46-50(D) with any person for the importation of waste into the region for purposes of disposal, to the extent that these agreements do not preclude the disposal facility from accepting all regional waste that can reasonably be projected to require disposal at the regional disposal facility consistent with subitem (5)(b) of this section;

(3)   adopted a binding regulation or policy in accordance with Article IV(i)(12) of the Atlantic Compact authorizing each regional generator, at the generator's discretion, to ship waste to disposal facilities located outside the Atlantic Compact region;     (4)   authorized South Carolina to proceed with plans to establish disposal rates for low-level radioactive waste disposal in a manner consistent with the procedures described in this chapter;

(5)   adopted a binding regulation, policy, or order officially designating South Carolina as a volunteer host state for the region's disposal facility, contingent upon South Carolina's membership in the compact, in accordance with Article V.b.1. of the Atlantic Compact, thereby authorizing the following compensation and incentives to South Carolina:

(a)   agreement, as evidenced in a policy, regulation, or order that the compact commission will issue a payment of twelve million dollars to the State of South Carolina. Before issuing the twelve million-dollar payment, the compact commission will deduct and retain from this amount seventy thousand dollars, which will be credited as full payment of South Carolina's membership dues in the Atlantic Compact. The remainder of the twelve million-dollar payment must be credited to an account in the State Treasurer's office, separate and distinct from the fund, styled 'Barnwell Economic Development Fund'. This fund, and earnings on this fund which must be credited to the fund, may only be expended for purposes of economic development in the Barnwell County area including, but not limited to, projects of the Barnwell County Economic Development Corporation and projects of the Tri-County alliance which includes Barnwell, Bamberg, and Allendale Counties and projects in the Williston area of Aiken County.


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Economic development includes, but is not limited to, industrial recruitment, infrastructure construction, improvement, and expansion, and public facilities construction, improvement, and expansion. These funds must be spent according to guidelines established by the Barnwell County governing body and upon approval of the board office. Expenditures must be authorized by the Barnwell County governing body and with the approval of the board office. Upon approval of the Barnwell County governing body and the board office, the State Treasurer shall submit the approved funds to the Barnwell County Treasurer for disbursement pursuant to the authorization;

(b)   adopted a binding regulation, policy, or order consistent with the regional management plan developed pursuant to Article V(a) of the Atlantic Compact, limiting Connecticut and New Jersey to the use of not more than 800,000 cubic feet of disposal capacity at the regional disposal facility located in Barnwell County, South Carolina, and also ensuring that up to 800,000 cubic feet of disposal capacity remains available for use by Connecticut and New Jersey unless this estimate of need is later revised downward by unanimous consent of the compact commission;

(c)   agreement, as evidenced in a policy or regulation, that the compact commission headquarters and office will be relocated to South Carolina within six months of South Carolina's membership; and

(d)   agreement, as evidenced in a policy or regulation, that the compact commission will, to the extent practicable, hold a majority of its meetings in the host state for the regional disposal facility.

(B)   The board office, the State Treasurer, and the PSC shall provide the required staff and may add additional permanent or temporary staff or contract for services, as well as provide for operating expenses, if necessary, to administer new responsibilities assigned under this chapter. In accordance with Article V.f.2. of the Atlantic Compact the compensation, costs, and expenses incurred incident to administering these responsibilities may be paid through a surcharge on waste disposed at regional disposal facilities within the State. To cover these costs the board office shall impose a surcharge per unit of waste received at any regional disposal facility located within the State. A site operator shall collect and remit these fees to the board office in accordance with the board's office's directions. All such surcharges shall be included within the disposal rates set by the board office pursuant to Section 48-46-40.

(C)   In accordance with Article V.f.3. of the Atlantic Compact, the compact commission shall advise the board office at least annually, but


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more frequently if the compact commission deems appropriate, of the compact commission's costs and expenses. To cover these costs the board office shall impose a surcharge per unit of waste received at any regional disposal facility located within the State as determined in Section 48-46-40. A site operator shall collect and remit these fees to the board office in accordance with the board office's directions, and the board department shall remit those fees to the compact commission."   JJ.   Section 48-46-90(A) of the 1976 Code is amended to read:

"(A)   In accordance with Section 13-7-30, the board office, or its designee, is responsible for extended custody and maintenance of the Barnwell site following closure and license transfer from the facility operator. The Department of Health and Environmental Control is responsible for continued site monitoring."

KK.   Section 63-11-500(A) of the 1976 Code is amended to read:

"(A)   There is created the Cass Elias McCarter Guardian ad Litem Program in South Carolina. The program shall serve as a statewide system to provide training and supervision to volunteers who serve as court-appointed special advocates for children in abuse and neglect proceedings within the family court, pursuant to Section 63-7-1620. This program must be administered by the Office of the Governor Department of Administration."

LL.   1.   Section 63-11-700 of the 1976 Code are amended to read:

"Section 63-11-700.   (A)   There is created, as part of the Office of the Governor, within the of the Department of Administration, the Division for Review of the Foster Care of Children. The division must be supported by a board consisting of seven eight members, all of whom must be past or present members of local review boards. There must be one member from each congressional district and one member from the State at large, all appointed by the Governor with the advice and consent of the Senate.

(B)   Terms of office for the members of the board are for four years and until their successors are appointed and qualify. Appointments must be made by the Governor for terms of four years to expire on June thirtieth of the appropriate year.

(C)   The board shall elect from its members a chairman who shall serve for two years. Four Five members of the board constitute a quorum for the transaction of business. Members of the board shall receive per diem, mileage, and subsistence as provided by law for members of boards, commissions, and committees while engaged in the work of the board.


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(D)   The board shall meet at least quarterly and more frequently upon the call of the division director to review and coordinate the activities of the local review boards and make recommendations to the Governor and the General Assembly with regard to foster care policies, procedures, and deficiencies of public and private agencies which arrange for foster care of children as determined by the review of cases provided for in Section 63-11-720(A)(1) and (2). These recommendations must be submitted to the Governor and included in an annual report, filed with the General Assembly, of the activities of the state office and local review boards.

(E)   The board, upon recommendation of the division director, shall promulgate regulations to carry out the provisions of this article. These regulations shall provide for and must be limited to procedures for: reviewing reports and other necessary information at state, county, and private agencies and facilities; scheduling of reviews and notification of interested parties; conducting local review board and board of directors' meetings; disseminating local review board recommendations, including reporting to the appropriate family court judges the status of judicially approved treatment plans; participating and intervening in family court proceedings; and developing policies for summary review of children privately placed in privately-owned facilities or group homes.

(F)   The Governor may employ a division director to serve at the Governor's pleasure who may be paid an annual salary to be determined by the Governor. The director may be removed pursuant to Section 1-3-240. The division director shall employ staff as is necessary to carry out this article, and the staff must be compensated in an amount and in a manner as may be determined by the Governor.

(G)   This article may not be construed to provide for subpoena authority."

2.   Section 63-11-730(A) of the 1976 Code is amended to read:

"(A)   No person may be employed by the Division for Review of the Foster Care of Children, Office of the Governor within the Department of Administration, or may serve on the state or a local foster care review board if the person:

(1)   is the subject of an indicated report or affirmative determination of abuse or neglect as maintained by the Department of Social Services in the Central Registry of Child Abuse and Neglect pursuant to Subarticle 13, Article 3, Chapter 7;

(2)   has been convicted of or pled guilty or nolo contendere to:


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(a)   an 'offense against the person' as provided for in Title 16, Chapter 3;

(b)   an 'offense against morality or decency' as provided for in Title 16, Chapter 15; or

(c)   contributing to the delinquency of a minor, as provided for in Section 16-17-490."

MM.   1.   Section 63-11-1110 of the 1976 Code is amended to read:

"Section 63-11-1110.   There is created the Children's Case Resolution System, within the Department of Administration and referred to in this article as the System, which is a process of reviewing cases on behalf of children for whom the appropriate public agencies collectively have not provided the necessary services. The System must be housed in and staffed by the Office of the Governor."

2.   Section 63-11-1140(5), (8), and (9) of the 1976 Code are amended to read:

"(5)   when unanimous consent is not obtained as required in item (4), a panel must be convened composed of the following persons:

(a)   one public agency board member and one agency head appointed by the Governor. Recommendations for appointments may be submitted by the Human Services Coordinating Council. No member may be appointed who represents any agency involved in the resolution of the case;

(b)   one legislator appointed by the Governor; and

(c)   two members appointed by the Governor, drawn from a list of qualified individuals not employed by a child-serving public agency, established in advance by the System, who have knowledge of public services for children in South Carolina.

The chairman must be appointed by the Governor from members appointed as provided in subitem (c) of this item. A decision is made by a majority of the panel members present and voting, but in no case may a decision be rendered by less than three members. The panel shall review a case at the earliest possible date after sufficient staff review and evaluation pursuant to items (3) and (4) and shall make a decision by the next scheduled panel meeting. When private services are necessary, financial responsibility must be apportioned among the appropriate public agencies based on the reasons for the private services. Agencies designated by the panel shall carry out the decisions of the panel, but the decisions may not substantially affect the funds appropriated for the designated agency to such a degree that the intent of the General Assembly is changed. Substantial impact of the decisions must be defined by regulations promulgated by the State


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Budget and Control Board Department of Administration. When the panel identifies similar cases that illustrate a break in the delivery of service to children, either because of restrictions by law or substantial lack of funding, the panel shall report the situation to the General Assembly and subsequently may not accept any similar cases for decision until the General Assembly takes appropriate action, however, the System may continue to perform the functions provided in items (3) and (4).

Each member of the panel is entitled to subsistence, per diem, and mileage authorized for members of state boards, committees, and commissions. The respective agency is responsible for the compensation of the members appointed in subitems (a) and (b) of this item, and the System is responsible for the compensation of the members appointed in subitem (c) of this item;

(8)   submit an annual report on the activities of the System to the Governor, Director of the Department of Administration, the General Assembly, and agencies designated by the System as relevant to the cases; and

(9)   compile and transmit additional reports on the activities of the System, and recommendations for service delivery improvements, as necessary, to the Governor and the Joint Citizens and Legislative Committee on Children."

NN.   1.   Section 44-38-380(A)(1)(h) of the 1976 Code is amended to read:

"(h)   Director of the Continuum of Care for Emotionally Disturbed Children Division of the Governor's Office;"

2.   Section 63-11-1310 of the 1976 Code, as added by Act 361 of 2008, is amended to read:

"Section 63-11-1310.   It is the purpose of this article to develop and enhance the delivery of services to severely emotionally disturbed children and youth and to ensure that the special needs of this population are met appropriately to the extent possible within this State. To achieve this objective, the Continuum of Care for Emotionally Disturbed Children Division is established as a division of the office of the Governor Department of Administration. This article supplements and does not supplant existing services provided to this population."

3.   Section 63-11-1340 of the 1976 Code, as added by Act 361 of 2008, is amended to read:

"Section 63-11-1340.   The Governor may employ appoint a Director of the Continuum of Care to serve at his pleasure who is subject to removal pursuant to the provisions of Section 1-3-240. The director


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shall employ staff necessary to carry out the provisions of this article. The funds for the division director, staff, and other purposes of the Continuum of Care Division must be provided in the annual general appropriations act. The department, upon the recommendation of the division director, shall may promulgate regulations in accordance with this article and the provisions of the Administrative Procedures Act and formulate necessary policies and procedures of administration and operation to carry out effectively the objectives of this article."

4.   Section 63-11-1360 of the 1976 Code as added by Act 361 of 2008, is amended to read:

"The Continuum of Care Division shall submit an annual report to the Governor Department of Administration and General Assembly on its activities and recommendations for changes and improvements in the delivery of services by public agencies serving children."

5.   Section 63-11-1510 of the 1976 Code is amended to read:

"Section 63-11-1510.   There is established the Interagency System for Caring for Emotionally Disturbed Children, an integrated system of care to be developed by the Continuum of Care for Emotionally Disturbed Children of the Governor's Office in the Department of Administration, the Department of Disabilities and Special Needs, the State Health and Human Services Finance Commission, the Department of Mental Health, and the Department of Social Services to be implemented by November 1, 1994. The goal of the system is to implement South Carolina's Families First Policy and to support children in a manner that enables them to function in a community setting. The system shall provide assessment and evaluation procedures to insure a proper service plan and placement for each child. This system must have as a key component the clear identification of the agency accountable for monitoring on a regular basis each child's care plan and procedures to evaluate and certify the programs offered by providers."

  Part VII

Legislative Fiscal Office and

Other Transfer Provisions

Subpart 1

SECTION   9.   A.     Chapter 3, Title 2 of the 1976 Code is amended by adding:

"Section 2-3-240.   (A)   The Legislative Fiscal Office is established under the joint direction and management of the Clerk of the Senate and the Clerk of the House of Representatives as a division of the Legislative Services Agency.


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(B)   The Legislative Fiscal Office must support the work of the General Assembly through the provision of data, fiscal impact statements and revenue impact statements, as appropriate, on proposed legislation, forecast of economic conditions pursuant to Section 11-9-880, and support the General Assembly's budget writing duties without regard to political or other considerations beyond technical accuracy and professionalism required to perform the duties of the office."

B.     (1)   The employees of the Office of State Budget required to provide fiscal impact statements on proposed legislation, to support the General Assembly's budget writing duties, and to support the other duties assigned to the Legislative Fiscal Office are transferred to the Legislative Fiscal Office, organized as recommended by the Clerk of the Senate and the Clerk of the House of Representatives.

(2)   The Clerk of the Senate, the Clerk of the House of Representatives, and the executive director of the Budget and Control Board, in consultation with the Chairman of the Senate Finance Committee and the Chairman of the House Ways and Means Committee, shall determine the employees, authorized appropriations, and assets and liabilities to be transferred pursuant to items (1) and (2) of subsection (A).

  Subpart 2

SECTION   10.   Section 11-9-820(A), (B), and (C) of the 1976 Code are amended to read:

"(A)   There is created the Board of Economic Advisors, a division of the State Fiscal Accountability Authority, as follows:

(1)   one member, appointed by, and serving at the pleasure of, the Governor, who shall serve as chairman and shall receive annual compensation of ten thousand dollars;

(2)   one member appointed by, and serving at the pleasure of, the Chairman of the Senate Finance Committee, who shall receive annual compensation of eight thousand dollars;

(3)   one member appointed by, and serving at the pleasure of, the Chairman of the Ways and Means Committee of the House of Representatives, who shall receive annual compensation of eight thousand dollars;

(4)   the Director of the Department of Revenue, who shall serve ex officio, with no voting rights.

(B)   The Chairman of the Board of Economic Advisors shall report directly to the Budget and Control Board State Fiscal Accountability Authority to establish policy governing economic trend analysis. The


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Board of Economic Advisors shall provide for its staffing and administrative support from funds appropriated by the General Assembly.

(C)   The Executive Director of the Budget and Control Board State Fiscal Accountability Authority shall assist the Governor, Chairman of the Board of Economic Advisors, Chairman of the Senate Finance Committee, and Chairman of the Ways and Means Committee of the House of Representatives in providing an effective system for compiling and maintaining current and reliable economic data. The Board of Economic Advisors may establish an advisory board to assist in carrying out its duties and responsibilities. All state agencies, departments, institutions, and divisions shall provide the information and data the advisory board requires. The Board of Economic Advisors is considered a public body for purposes of the Freedom of Information Act, pursuant to Section 30-4-20(a)."

SECTION   11.   A.     Sections 11-9-825 and 11-9-830 of the 1976 Code are amended to read:

"Section 11-9-825.   The staff of the Board of Economic Advisors must be supplemented by the following officials who each shall designate one professional from their individual staffs to assist the BEA staff on a regular basis: the Governor, the director of the Executive Budget and Strategic Planning Office, the Chairman of the House Ways and Means Committee, the Chairman of the Senate Finance Committee, and the State Department of Revenue Chairman, and the Director of the Budget Division of the Budget and Control Board State Fiscal Accountability Authority. The BEA staff shall meet monthly with these designees in order to solicit their input.

Section 11-9-830.   In order to provide a more effective system of providing advice to the State Fiscal Accountability Authority, Budget and Control Board the Governor, and the General Assembly on economic trends, the Board of Economic Advisors shall:

(1)   compile and maintain in a unified, concise, and orderly form information about total revenues and expenditures which involve the funding of state government operations, revenues received by the State which comprise general revenue sources of all receipts to include amounts borrowed, federal grants, earnings, and the various activities accounted for in other funds;

(2)   continuously review and evaluate total revenues and expenditures to determine the extent to which they meet fiscal plan forecasts/projections;

(3)   evaluate federal revenues in terms of impact on state programs;


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(4)(3)   compile economic, social, and demographic data for use in the publishing of economic scenarios for incorporation into the development of the state budget;

(5)(4)   bring to the attention of the Governor and the General Assembly the effectiveness, or lack thereof, of the economic trends and the impact on statewide policies and priorities;

(6)   establish liaison with the Congressional Budget Office and the Office of Management and Budget at the national level."

B.   Chapter 9, Title 11 of the 1976 Code is amended by adding:

"Section 11-9-835.   The Board of Economic Advisors and the Legislative Fiscal Office must cooperate with one another in the discharge of their respective duties and responsibilities, including, but not limited to, the production, preparation, or analysis of all documents, reports, answers, records, accounts, papers, and other necessary data and documentary information required for each entity to timely perform their respective duties and responsibilities."

SECTION   12.   Section 11-9-880(C) of the 1976 Code is amended to read:

"(C)   All forecasts, adjusted forecasts, and reports of the Board of Economic Advisors, including the synopsis of the current year's review as required by subsection (B), must be published and reported to the Governor, the members of the Budget and Control Board, the members of the General Assembly, the members of the State Fiscal Accountability Authority, and made available to the news media."

SECTION   13.   Section 11-9-890B. of the 1976 Code is amended to read:

"B.   (1)   If at the end of the first, second, or third quarter of any fiscal year quarterly revenue collections are two percent or more below the amount projected for that quarter by the Board of Economic Advisors reduces the revenue forecast for the fiscal year by three percent or less below the amount projected for the fiscal year in the forecast in effect at the time the general appropriations bill for the fiscal year is ratified, the State Budget and Control Board, within seven three days of that determination, shall take action to avoid a year-end deficit. Notwithstanding Section 1-11-495, if the State Budget and Control Board does not take unanimous action within seven days, the Director of the Office of State Executive Budget and Strategic Planning Office must reduce general fund appropriations by the requisite amount in the manner prescribed by law. Upon making the reduction, the Director of the Office of State Executive Budget and Strategic Planning Office immediately must notify the State Treasurer and the Comptroller


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General of the reduction, and upon notification, the appropriations are considered reduced. No agencies, departments, institutions, activity, program, item, special appropriation, or allocation for which the General Assembly has provided funding in any part of this section may be discontinued, deleted, or deferred by the Director of the Office of State Executive Budget and Strategic Planning Office. A reduction of rate of expenditure by the Director of the Office of State Executive Budget and Strategic Planning Office, under authority of this section, must be applied as uniformly as shall be practicable, except that no reduction must be applied to funds encumbered by a written contract with the agency, department, or institution not connected with state government.

(2)   If at the end of the first, second, or third quarter of any fiscal year the Board of Economic Advisors reduces the revenue forecast for the fiscal year by more than three percent below the amount projected for the fiscal year in the forecast in effect at the time the general appropriations bill for the fiscal year is ratified, the President Pro Tempore of the Senate and the Speaker of the House of Representatives may call each respective house into session to take action to avoid a year-end deficit. If the General Assembly has not taken action within twenty days of the determination of the Board of Economic Advisors, the Director of the Executive Budget and Strategic Planning Office must reduce general fund appropriations by the requisite amount in the manner prescribed by law and in accordance with item (1) of this subsection."

SECTION   14.   A.     Title 2 of the 1976 Code is amended by adding:

  "CHAPTER 79

State Agency Deficit Prevention and Recognition

Section 2-79-10.   This chapter may be cited as the 'State Agency Deficit Prevention and Recognition Act'.

Section 2-79-20.   It is the responsibility of each state agency, department, and institution to operate within the limits of appropriations set forth in the annual general appropriations act, appropriation acts, or joint resolution supplemental thereto, and any other approved expenditures of monies. A state agency, department, or institution shall not operate in a manner that results in a year-end deficit except as provided in this chapter.

Section 2-79-30.   (A)   If at the end of each quarterly deficit monitoring review by the Executive Budget and Strategic Planning Office, it is determined by either the Executive Budget and Strategic


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Planning Office or a state agency, department, or institution that the likelihood of a deficit for the current fiscal year exists, the state agency shall notify the General Assembly within fifteen days of this determination and shall further request the Executive Budget and Strategic Planning Office to work with it to develop a plan to avoid the deficit. Within fifteen days of the deficit avoidance plan being completed, the Executive Budget and Strategic Planning Office shall:

(1)   recognize the deficit, in the manner provided in Section 2-79-40(A) if it determines that the deficit avoidance plan will not be sufficient to avoid a deficit, the projected deficit is less than one million dollars, and the General Assembly is adjourned Sine Die;

(2)   request the General Assembly to recognize the deficit in the manner provided in Section 2-79-40(B) if it determines the deficit avoidance plan will not be sufficient to avoid a deficit and the projected deficit is equal to or greater than one million dollars, regardless of whether the General Assembly is adjourned Sine Die; or

(3)   notify the General Assembly of how the deficit will be avoided based on the deficit avoidance plan if the Executive Budget and Strategic Planning Office determines the plan will be sufficient to avoid a deficit.

(B)   The Executive Budget and Strategic Planning Office must notify the General Assembly as soon as practicable when it determines that it will proceed with a deficit recognition pursuant to subsection (A)(1).

(C)   If the Executive Budget and Strategic Planning Office requests that the General Assembly recognize the deficit in the manner provided in Section 2-79-40(B) and the General Assembly is adjourned Sine Die, the Speaker of the House and Pro Tempore of the Senate may call each respective house into session to address the deficit.

Section 2-79-40.   (A)(1)   When a deficit avoidance plan will not be sufficient to avoid a deficit, the projected deficit is less than one million dollars, and the General Assembly is adjourned Sine Die, the Executive Budget and Strategic Planning Office may recognize the deficit if the deficit is unavoidable due to factors which are outside the control of the state agency, department, or institution. Subject to the provisions contained in item (2), a deficit recognized by the Executive Budget and Strategic Planning Office must, at the close of the fiscal year, reduce the actual deficit, as necessary, from surplus revenues or surplus funds available at the close of the fiscal year in which the deficit occurs and then, to the extent no surplus revenues or surplus funds are available, first from funds available in the Capital Reserve Fund and then from


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funds available in the General Reserve Fund as required by the Constitution of this State.

(2)   During its next ensuing regular session following a deficit recognition by the Executive Budget and Strategic Planning Office, the General Assembly may make a finding that the cause of, or likelihood of, a deficit is unavoidable due to factors which are outside the control of the state agency, department, or institution that was the subject of deficit recognition and recognize the deficit in the manner provided in subsection (B). If the General Assembly does not recognize the deficit prior to Sine Die adjournment of its next ensuing regular session, the deficit recognized by the Executive Budget and Strategic Planning Office shall remain effective and its provisions shall be implemented.

(B)(1)   Upon notification from the Executive Budget and Strategic Planning Office as provided in Section 2-79-30(A)(2) that an agency will run a deficit and requesting that it be recognized, the General Assembly, by joint resolution, may make a finding that the cause of, or likelihood of, a deficit is unavoidable due to factors which are outside the control of the state agency, department, or institution, and recognize the deficit. Any legislation to recognize a deficit must be in a separate joint resolution enacted for the sole purpose of recognizing the deficit of a particular state agency, department, or institution. A deficit only may be recognized by an affirmative vote of each branch of the General Assembly.

(2)   If the General Assembly recognizes the deficit, then the actual deficit at the close of the fiscal year must be reduced as necessary from surplus revenues or surplus funds available at the close of the fiscal year in which the deficit occurs and then, to the extent no surplus revenues or surplus funds are available, first from funds available in the Capital Reserve Fund and then from funds available in the General Reserve Fund as required by the Constitution of this State.

Section 2-79-50.   Once a deficit has been recognized pursuant to this chapter, the state agency, department, or institution shall limit travel and conference attendance to that which is deemed essential by the director of the agency, department, or institution. In addition, when recognizing a deficit, the General Assembly or the Executive Budget and Strategic Planning Office, as the case may be, may condition recognition on a requirement that any pay increases and purchases of equipment and vehicles must be approved by the Executive Budget and Strategic Planning Office."

B.   Section 1-11-495 of the 1976 Code, as last amended by Act 152 of 2010, is repealed.


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C.   Sections 11-9-230 through 11-9-270 of the 1976 Code are repealed.

  Subpart 4

SECTION   15.   A.   Section 2-7-71 of the 1976 Code is amended to read:

"Section 2-7-71.   When a bill relating to state taxes is reported out of a standing committee of the Senate or House of Representatives for consideration, there must be attached and printed as a part of the committee report a statement of the estimated revenue impact of the bill on the finances of the State certified by the Board of Economic Advisors Executive Director of the Legislative Fiscal Office, or his designee. As used in this section "statement of estimated revenue impact" means the consensus of the persons executing the required statement as to the increase or decrease in the net tax revenue to the State if the bill concerned is enacted by the General Assembly. In preparing a statement, the Board of Economic Advisors Legislative Fiscal Office may request technical advice of the Department of Revenue.

B.   Section 2-7-72 of the 1976 Code is amended to read:

"Section 2-7-72.   Whenever a bill or resolution is introduced in the General Assembly requiring the expenditure of funds, the principal author shall affix a statement of estimated fiscal impact and cost of the proposed legislation. Before reporting the bill out of committee, if the amount is substantially different from the original estimate, the committee shall attach a statement of estimated fiscal impact to the bill signed by the Executive Director of the State Budget Division of the State Budget and Control Board Legislative Fiscal Office or his designee. As used in this section, 'statement of estimated fiscal impact' means the opinion of the person executing the statement as to the dollar cost to the State for the first year and the annual cost thereafter."

SECTION   16.   Section 2-7-73 of the 1976 Code is amended to read:

"Section 2-7-73.   (A)   Any bill or resolution which would mandate a health coverage or offering of a health coverage by an insurance carrier, health care service contractor, or health maintenance organization as a component of individual or group policies, must have attached to it a statement of the financial impact of the coverage, according to the guidelines enumerated in subsection (B). This financial impact analysis must be conducted by the Division of Research and Statistical Services Legislative Fiscal Office based upon data supplied by the State Fiscal Accountability Authority's Office of


Printed Page 4144 . . . . . Tuesday, May 28, 2013

Research and Statistics and signed by an authorized agent of the Department of Insurance, or his designee. The statement required by this section must be delivered to the Senate or House committee to which any bill or resolution is referred, within thirty days of the written request of the chairman of such committee.

(B)   Guidelines for assessing the financial impact of proposed mandated or mandatorily offered health coverage to the extent that information is available, must include, but are not limited to, the following:

(1)   to what extent does the coverage increase or decrease the cost of treatment or services;

(2)   to what extent does the coverage increase or decrease the use of treatment or service;

(3)   to what extent does the mandated treatment or service substitute for more expensive treatment or service;

(4)   to what extent does the coverage increase or decrease the administrative expenses of insurance companies and the premium and administrative expenses of policyholders; and

(5)   what is the impact of this coverage on the total cost of health care."

SECTION   17.   Section 2-7-74 of the 1976 Code is amended to read:

"Section 2-7-74.   (A)   As used in this section, 'statement of estimated fiscal impact' means the opinion of the person executing the statement as to the dollar cost to the State for the first year and the annual cost thereafter.

(B)   The principal author of legislation that would establish a new criminal offense or that would amend the sentencing provisions of an existing criminal offense may affix a statement of estimated fiscal impact of the proposed legislation. Upon request from the principal author of the legislation, the Office of State Budget Legislative Fiscal Office shall assist in preparing the fiscal impact statement.

(C)   If a fiscal impact statement is not affixed to legislation at the time of introduction, the committee to which the legislation is referred shall request a fiscal impact statement from the Office of State Budget Legislative Fiscal Office. The Office of State Budget Legislative Fiscal Office shall have at least fifteen calendar days from the date of the request to deliver the fiscal impact statement to the Senate or House of Representatives committee to which the legislation is referred, unless the Office of State Budget Legislative Fiscal Office requests an


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extension of time. The Office of State Budget Legislative Fiscal Office shall not unreasonably delay the delivery of a fiscal impact statement.

(D)   The committee shall not take action on the legislation until the committee has received the fiscal impact statement.

(E)   If the legislation is reported out of the committee, the committee shall attach the fiscal impact statement to the legislation. If the legislation has been amended, the committee shall request a revised fiscal impact statement from the Office of State Budget Legislative Fiscal Office and shall attach the revised fiscal impact statement to the legislation.

(F)   State agencies and political subdivisions shall cooperate with the Office of State Budget Legislative Fiscal Office in preparing fiscal impact statements. Such agencies and political subdivisions shall submit requested information to the Office of State Budget Legislative Fiscal Office in a timely fashion.

(G)   In preparing fiscal impact statements, the Office of State Budget Legislative Fiscal Office shall consider and evaluate information as submitted by state agencies and political subdivisions. The Office of State Budget Legislative Fiscal Office shall provide to the requesting Senate or House of Representatives committee any estimates provided by a state agency or political subdivision, which are substantially different from the fiscal impact as issued by the Office of State Budget Legislative Fiscal Office.

(H)   The Office of State Budget Legislative Fiscal Office may request information from nongovernmental agencies and organizations to assist in preparing the fiscal impact statement."

SECTION   18.   Section 2-7-76 of the 1976 Code is amended to read:

"Section 2-7-76.   (A)   The chairman of the legislative committee to which a bill or resolution was referred shall direct the Budget Division or the Economic Research Section of the Budget and Control Board, as appropriate, Legislative Fiscal Office to prepare and affix to it a statement of the estimated fiscal or and revenue impact and cost to the counties and municipalities of the proposed legislation before the legislation is reported out of that committee if a bill or resolution:

(1)   requires a county or municipality to expend funds allocated to the county or municipality pursuant to Chapter 27, of Title 6;

(2)   is introduced in the General Assembly to require the expenditure of funds by a county or municipality;


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(3)   requires the use of county or municipal personnel, facilities, or equipment to implement a general law or regulations promulgated pursuant to a general law; or

(4)   relates to taxes imposed by political subdivisions.

(B)   A revised estimated fiscal or and revenue impact and cost statement must be prepared at the direction of the presiding officer of the House of Representatives or the Senate by the Budget Division or Economic Research Section of the Budget and Control Board Legislative Fiscal Office before third reading of the bill or resolution, if there is a significant amendment to the bill or resolution.

(C)   For purposes of this section, 'political subdivision' means a county, municipality, school district, special purpose district, public service district, or consolidated political subdivision."

Subpart 5

SECTION   19.   Section 48-52-410 of the 1976 Code is amended to read:

"Section 48-52-410.   There is established the State Energy Office within the State Budget and Control Board Office of Regulatory Staff which shall serve as the principal energy planning entity for the State. Its primary purpose is to develop and implement a well-balanced energy strategy and to increase the efficiency of use of all energy sources throughout South Carolina through the implementation of the Plan for State Energy Policy. The State Energy Office must not function as a regulatory body."

SECTION   20.   Section 48-52-440 of the 1976 Code is amended to read:

"Section 48-52-440.   There is established the Energy Advisory Committee, whose members are appointed by the State Budget and Control Board, except as provided in item (14) of this section. Members shall serve at the pleasure of the State Budget and Control Board except that those appointed pursuant to item (14) shall serve for a term coterminous with that of their appointing authority. The committee is composed as follows:

(1)   two representatives of investor-owned electricity companies;

(2)   two representatives of electric cooperatives;

(3)   one representative of the South Carolina Public Service Authority, who shall serve ex officio;

(4)   one representative of municipally-owned electric utilities;

(5)   one representative of publicly-owned natural gas companies;

(6)   one representative of investor-owned gas companies;

(7)   one representative of oil suppliers or dealers;


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(8)   one representative of propane suppliers or dealers;

(9)   one representative of nonprofit public transportation providers;

(10)   two representatives of industrial consumers;

(11)   two representatives of commercial consumers;

(12)   two representatives of individual consumers; one must be the Executive Director of the Office of Regulatory Staff or his designee, who shall serve ex officio;

(13)   two representatives of environmental groups; and

(14)   one at-large member appointed by the Governor.

The Budget and Control Board shall elect one of the committee members to serve as chairman. The members of the Energy Advisory Committee are not eligible for per diem payments or for reimbursement for lodging or meals. The functions of the Energy Advisory Committee are advisory to the State Energy Office. The committee shall meet at least annually and at the call of the chair or at the request of at least six members to receive information on the activities of the State Energy Office and the formulation and implementation of the state energy action plan. It may comment and advise on the activities and the plan as considered appropriate by members of the committee. The State Energy Office may seek advice and guidance from the committee as considered appropriate by the director of the office. Members shall adopt rules governing meeting attendance and abide by these rules.

(A)   All funds allocated or directed to this State by the federal government relating to energy planning, energy conservation, and energy efficiency must be allocated or directed to the State Energy Office in the Office of Regulatory Staff to be distributed in accordance with the provisions of this section; provided, however, that no funding from the following federal programs is subject to the provisions of this section:

(1)   the Low Income Home Energy Assistance Program (LIHEAP), created by Title XXVI of the Omnibus Budget Reconciliation Act of 1981 and codified as Chapter 94, Title 42 of the United States Code, as amended by the Human Services Reauthorization Act of 1984, the Human Services Reauthorization Act of 1986, the Augustus F. Hawkins Human Services Reauthorization Act of 1990, the National Institutes of Health Revitalization Act of 1993, the Low-Income Home Energy Amendments of 1994, the Coats Human Services Reauthorization Act of 1998, and the Energy Policy Act of 2005, which is administered and funded by the United States Department of Health and Human Services on the federal level and administered locally by community action agencies; or


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(2)   the Weatherization Assistance Program, created by Title IV of the Energy Conservation and Production Act of 1976 and codified as Part A, Subchapter III, Chapter 81, Title 42 of the United States Code, amended by the National Energy Conservation Policy Act, the Energy Security Act, the Human Services Reauthorization Act of 1984, and the State Energy Efficiency Programs Improvement Act of 1990 and administered and funded by the United States Department of Energy on the federal level and administered locally by community action agencies.

Nothing in this section changes the exclusive administration of the Low Income Energy Assistance Program and Weatherization Assistance Program by local community action agencies through the Department of Administration's Office of Economic Opportunity pursuant to its authority under the provisions of Chapter 45, Title 43, the Community Economic Opportunity Act of 1983.

(B)   All funds described in subsection (A) that are not exempted by items (1) and (2) of subsection (A) must be distributed by the State Energy Office in the Office of Regulatory Staff in accordance with all requirements of federal law associated with these funds. Persons seeking to obtain funding for energy related programs must submit to the State Energy Office a plan for the use of the funds in a manner consistent with the provisions of this section.

(C)   Upon receipt of the plans required by subsection (B), the State Energy Office of the Office of Regulatory Staff must prepare an analysis of the plans and their consistency with the provisions of this section and submit that analysis to the Department Advisory Council for its review and recommendations.

(D)   There is hereby created in the Office of Regulatory Staff the Energy Advisory Council, which will advise the State Energy Office on all matters for which the State Energy Office is responsible and specifically with respect to its review of the annual plans required to be submitted pursuant to this section. The Advisory Council shall be composed of nine members as follows:

(1)   three appointed by the Governor, one of whom must have a substantial background in environmental or consumer protection matters;

(2)   three appointed by the President Pro Tempore of the Senate, one of whom must have a substantial background in environmental or consumer protection matters; and


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(3)   three appointed by the Speaker of the House of Representatives, one of whom must have a substantial background in environmental or consumer protection matters.

All appointees must have backgrounds in environmental issues; the electricity, transportation, or natural gas industries; or economic development related to these sectors.

(E)   In evaluating the plans required by this section, the Advisory Council shall consider the extent to which the plans allocate funds in a cost effective manner and promote the following alternative sources of domestic energy or avoidance of consumption of energy:

(1)   the development of energy efficiency and conservation;

(2)   renewable sources of energy, including wind power, solar power, energy from biomass sources, and energy storage;

(3)   nuclear energy; and

(4)   alternative fuels or power sources for the transportation sector.

In considering the cost-effectiveness of the plans the Advisory Council must consider the cost of the proposed measures as to the expected useful life of the measures being proposed and the impact of the proposed measures on consumers. For each proposed plan, the Advisory Council must consider the value of the avoided cost of complying with anticipated state and federal environmental regulations.

(F)   Upon completion of its review of plans submitted in compliance with this section, the Advisory Council must prepare a report describing the results of its review and submit copies of that report to the State Energy Office of the Office of Regulatory Staff and the Public Utility Review Committee of Article 5 of Chapter 3, Title 58.

(G)   The Executive Director of the Office of Regulatory Staff shall make the final determinations of distributions of funds as required by this section, taking into account the recommendations of the Advisory Council. Grant awards shall be made in a manner consistent with this section."

SECTION   21.   Section 48-52-460 of the 1976 Code is amended to read:

"Section 48-52-460.   The establishment of the State Energy Office within the State Budget and Control Board Office of Regulatory Staff, as provided for in this part, must be evaluated if restructuring or reorganizing of state government takes place so as to identify and provide for the proper placement of the office upon restructuring or reorganizing."


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SECTION   22.   Section 48-52-635 of the 1976 Code is amended to read:

"Section 48-52-635.   Pursuant to Section 48-52-630, an agency's savings realized in the prior fiscal year from implementing an energy conservation measure as compared to a baseline energy use as certified by the State Energy Office, may be retained and carried forward into the current fiscal year. This savings, as certified by the State Energy Office, must first be used for debt retirement of capital expenditures, if any, on the energy conservation measure, after which time savings may be used for agency operational purposes and where practical, reinvested into energy conservation areas. The agency must report all actual savings in the energy portion of its annual report to the State Budget and Control Board Office of Regulatory Staff."

SECTION   23.   Section 48-52-680(C) of the 1976 Code is amended to read:

"(C)   The State Energy Office shall provide the Office of Property Management of the Budget and Control Board, Division of General Services of the Department of Administration, information to be used in evaluating energy costs for buildings or portions of buildings proposed to be leased by governmental bodies that are defined in and subject to the Consolidated Procurement Code. The information provided must be considered with the other criteria provided by law by a governmental body before entering into a real property lease."

  Subpart 6

SECTION   24.   A.     Section 1-11-25 of the 1976 Code is amended to read:

"Section 1-11-25.   (A)   There is hereby established a Local Government Division within the State Budget and Control Board Rural Infrastructure Authority to act as a liaison for financial grants among local governments local public entities, the General Assembly and the Governor's Office. The division shall be under the supervision of a director who shall be appointed by and who shall serve at the pleasure of the Budget and Control Board authority and whose compensation shall be as provided for by the General Assembly. He may employ such staff as may be approved by the board authority. The division shall be responsible for certifying grants to local governments public entities from both federal and state funds. The term 'local government public entity' shall mean any political entity below the state level.

(B)   The division shall establish guidelines and procedures which local governments public entities shall follow in applying for grants certified by the division. The director shall make known to local


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governments these entities the availability of all grants available through the division authority and shall make periodic reports to the Budget and Control Board, the General Assembly and the Governor's Office. The reports shall contain information concerning the amount of funds available from both federal and state sources, requests for grants and the status of such requests and such other information as the director may deem appropriate. The director shall maintain such records as may be necessary for the efficient operation of the office.

The Division of Administration, under contractual agreement, shall furnish the Local Government Division such accounting service support as may be requested."

B.     Section 1-11-26 of the 1976 Code is amended to read:

"Section 1-11-26.   (A)   Grant funds received by a local county, municipality, political subdivision, or other public entity from the Division of Local Government of the State Budget and Control Board Rural Infrastructure Authority must be deposited in a separate fund and may not be commingled with other funds, including other grant funds. Disbursements may be made from this fund only on the written authorization of the individual who signed the grant application filed with the division, or his successor, and only for the purposes specified in the grant application. A person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined five thousand dollars or imprisoned for six months, or both.

(B)   It is not a defense to an indictment alleging a violation of this section that grant funds received from the Division of Local Government were used by a grantee or subgrantee for governmental purposes other than those specified in the grant application or that the purpose for which the grant was made by the Division of Local Government was accomplished by funds other than grant funds.

(C)   (C)   The Division of Local Government of the State Budget and Control Board Rural Infrastructure Authority shall furnish a copy of this section to a grantee when the grant is awarded."

C.     Section 11-50-50 of the 1976 Code, as added by Act 149 of 2012, is amended to read:

"Section 11-50-50.   (A)   The board of directors is the governing board of the authority. The board consists of seven eight voting directors appointed as follows:

(1)   six seven members who reside in or represent all or some portion of the counties designated as distressed or least developed pursuant to Section 12-6-3360 for 2009; one appointed by the President Pro Tempore of the Senate, one appointed by the Speaker of the House


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of Representatives, one appointed by the Chairman of the Senate Finance Committee, one appointed by the Chairman of the House Ways and Means Committee, and two three appointed by the Governor. One of the governor's appointees must be selected from three candidates recommended by the Municipal Association of South Carolina; one of the Governor's appointees must be selected from three candidates recommended by the South Carolina Association of Counties; and one of the Governor's appointees must be selected from three candidates recommended by the South Carolina Rural Water Association. Notwithstanding the provisions of Section 8-13-770, the members appointed pursuant to this item (1) by the President Pro Tempore of the Senate, Speaker of the House of Representatives, Chairman of the Senate Finance Committee, and the Chairman of the House Ways and Means Committee may be members of the General Assembly and, if so appointed, shall serve ex officio; and

(2)   the Secretary of Commerce, ex officio, who shall serve as chairman.

(B)   Members not serving ex officio shall serve for terms of four years and until their successors are appointed and qualify except that of the members first appointed by the Speaker of the House, President Pro Tempore of the Senate, and one of the members first appointed by the Governor, the member shall serve for a term of two years and the term must be noted on the appointment. Vacancies must be filled in the manner of original appointment for the unexpired portion of the term. Members shall serve without compensation, but are allowed mileage, subsistence, and per diem allowed by law for members of state boards, committees, and commissions."

D.   Chapter 50, Title 11 of the 1976 Code is amended by adding:

"Section 11-50-65.   The State Fiscal Accountability Authority shall provide such administrative support to the State Rural Infrastructure Authority or any of its divisions or components as they may request and require in the performance of their duties including, but not limited to, financial management, human resources management, information technology, procurement services, and logistical support."

E.   Section 48-5-30 of the 1976 Code is amended to read:

"Section 48-5-30.   There is created the South Carolina Water Quality Revolving Fund Authority. The authority is a public instrumentality of this State and the exercise by it of a power conferred in this chapter is the performance of an essential public function. The members of the State Budget and Control Board Rural Infrastructure Authority comprise the authority."


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F.   Notwithstanding Section 12-10-85, the Department of Revenue is authorized to deposit revenues from the Rural Infrastructure Fund in excess of twelve million dollars to the South Carolina Rural Infrastructure Fund under the South Carolina Rural Infrastructure Authority. Any revenues in excess of seventeen million dollars shall be deposited in the Rural Infrastructure Fund under the Department of Commerce, Coordinating Council."

  Subpart 7

SECTION   25.   A.     Chapter 17, Title 60 of the 1976 Code is amended by adding:

  "CHAPTER 17

South Carolina Confederate Relic Room

and Military Museum Commission

Section 60-17-10.   (A)   Effective July 1, 2015, the South Carolina Confederate Relic Room and Military Museum Commission is established and must be composed of nine voting members who shall be appointed for terms of four years and until their successors are appointed and qualify, except as specified in subsection (B) for initial terms. The members of the board shall be appointed as follows:

(1)   three members appointed by the Governor;

(2)   two members appointed by the President Pro Tempore of the Senate;

(3)   one member appointed by the President Pro Tempore of the Senate upon the recommendation of the South Carolina Division Commander of the Sons of Confederate Veterans;

(4)   two members appointed by the Speaker of the House of Representatives; and

(5)   one member appointed by the Speaker of the House of Representatives upon the recommendation of the President of the South Carolina Division of the United Daughters of the Confederacy.

(B)   Initially, in order to stagger terms:

(1)   one member appointed by the Governor shall serve a term of one year;

(2)   one member appointed by the Governor shall serve a term of two years;

(3)   one member appointed by the Governor shall serve for three years;

(4)   one member appointed by the President Pro Tempore of the Senate shall serve for one year;

(5)   one member appointed by the President Pro Tempore of the Senate shall serve for two years;


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(6)   one member appointed by the President Pro Tempore of the Senate shall serve for three years;

(7)   one member appointed by the Speaker of the House of Representatives shall serve for one year;

(8)   one member appointed by the Speaker of the House of Representatives shall serve for two years; and

(9)   one member appointed by the Speaker of the House of Representatives shall serve for three years.

At the expiration of these initial terms, successors must be appointed for terms of four years.

Section 60-17-20.   (A)   The South Carolina Confederate Relic Room and Military Museum is authorized to supplement its state appropriations by receiving donations of funds and artifacts and admission fees and to expend these donations and fees to support its operations and for the acquisition, restoration, preservation, and display of its collection.

(B)   The South Carolina Confederate Relic Room and Military Museum is authorized to collect, retain, and expend fees from research and photographic processing requests and from the sale of promotional items.

Section 60-17-30.   No artifacts owned by the State in the permanent collections of the South Carolina Confederate Relic Room and Military Museum may be permanently removed or disposed of except by a Concurrent Resolution of the General Assembly.

Section 60-17-40.   The Director of the South Carolina Confederate Relic Room and Military Museum must be selected by the South Carolina Confederate Relic Room and Military Museum Commission after consultation with the South Carolina Division Commander of the Sons of the Confederate Veterans and the President of the South Carolina Chapter of the United Daughters of the Confederacy. The director shall serve at the pleasure of the commission."

B.   Article 7, Chapter 11, Title 1 of the 1976 Code is repealed.

  Part VIII

State Fiscal Accountability Authority and

Related Provisions

Subpart 1

SECTION   26.   Title 11 of the 1976 Code is amended by adding:

  "CHAPTER 55

State Fiscal Accountability Authority

Section 11-55-10.   (A)   There is established the State Fiscal Accountability Authority consisting of members as follows:


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(1)   the Governor, who shall serve as ex officio as chairman;

(2)   the State Treasurer, who shall serve ex officio;

(3)   the Comptroller General, who shall serve ex officio;

(4)   the Chairman of the Ways and Means Committee of the House of Representatives, ex officio; and

(5)   the Chairman of the Senate Finance Committee, ex officio.

Members shall serve at the pleasure of their appointing authority. Vacancies must be filled in the manner of the original appointment. Members shall serve without compensation, but shall receive the mileage, subsistence, and per diem allowed by law for members of state boards, committees, and commissions.

(B)(1)   The authority shall select an executive director who in turn shall employ other staff under the direction of the State Fiscal Accountability Authority as necessary for the operations of the authority.

(2)   The executive director shall serve a four-year term. The executive director may only be removed for malfeasance, misfeasance, incompetency, absenteeism, conflicts of interest, misconduct, persistent neglect of duty in office, or incapacity as found by the authority. The executive director shall have that responsibility and perform the duties prescribed by law and as may be directed by the authority.

(3)   The General Assembly, in the annual general appropriations act, shall appropriate those funds necessary for the operations of the authority.

(C)   The authority may organize its staff as it considers most appropriate to carry out the various functions, powers, duties, responsibilities, and authority assigned to it.

Section 11-55-30.   In the course of conducting and managing state affairs where a matter arises which would under prior precedents and practices be referred to the former Budget and Control Board for decision, although the procedure for the decision is not specifically provided for by general law, the matter instead shall be referred to and decided by the authority.

Section 11-55-40.   (A)   The authority shall exercise all functions, powers, duties, responsibilities, and authority related to the issuance of bonds and bonding authority, in general found in Title 11 of the 1976 Code but also contained in certain other provisions of South Carolina law, as exercised by the former Budget and Control Board prior to the effective date of Act ___ of 2013, R. ___, S. 22.

(B)   The authority shall exercise all functions, powers, duties, responsibilities, and authority, generally found in Title 11 of the 1976


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Code but also contained in certain other provisions of South Carolina law, exercised by the former Budget and Control Board related to grants, loans, and other forms of financial assistance to other entities.

(C)   Bonded indebtedness issued by the South Carolina Jobs - Economic Development Authority (JEDA) requires approval by the authority as provided in Chapter 43, Title 41. Bonded indebtedness issued pursuant to this item does not constitute nor give rise to a pecuniary liability to the State or a charge against the credit or taxing powers of the State.

Section 11-55-50.   Where the applicable enabling statute or the general law relating to a permanent improvement project or the issuance of bonds or funding relating to the project both the review of the Joint Bond Review Committee and the approval by the former Budget and Control Board, the responsibility of the former Budget and Control Board, in this regard, is devolved upon the authority with no prior approval required on the part of the department."

Subpart 2

B.   Chapter 47, Title 2 of the 1976 Code is amended to read:

  "CHAPTER 47

Joint Bond Review Committee

Section 2-47-10.   The General Assembly finds that a need exists for careful planning of permanent improvements and of the utilization of state general obligation and institutional bond authority in order to ensure the continued favorable bond credit rating our State has historically enjoyed. It further finds that the responsibility for proper management of these matters is properly placed upon the General Assembly by our State Constitution legislative and executive branches of government. It is the purpose of this resolution act chapter to further ensure the proper legislative and executive response in the fulfillment of this responsibility.

Section 2-47-20.   There is hereby created a six member joint committee of the General Assembly to be known as the Joint Bond Review Committee to study and monitor policies and procedures relating to the approval of permanent improvement projects and to the issuance of state general obligation and institutional bonds; to evaluate the effect of current and past policies on the bond credit rating of the State; and provide advisory assistance in the establishment of future capital management policies. Three members shall be appointed from the Senate Finance Committee by the chairman thereof and three from the Ways and Means Committee of the House of Representatives by the chairman of that committee correspond corresponding to the terms for


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which they are elected to the General Assembly. The committee shall elect officers of the committee, but any person so elected may succeed himself if elected to do so.

The expenses of the committee shall be paid from approved accounts of both houses. The Legislative Council and all other legislative staff organizations shall provide such assistance as the joint committee may request.

Section 2-47-25.   In addition to the members provided for by Section 2-47-20, two additional members shall be appointed by the Chairman of the Ways and Means Committee of the House of Representatives from the membership of that body. Two additional members shall be appointed by the Chairman of the Finance Committee of the Senate from the membership of the Senate. Members shall serve the same terms as the members of the committee provided for in Section 2-47-20.

Section 2-47-30.     The committee is specifically charged with, but not limited to, the following responsibilities:

(1)   To to review, prior to approval by the Budget and Control Board State Fiscal Accountability Authority, the establishment of any permanent improvement project and the source of funds for any such project not previously authorized specifically by the General Assembly.;

(2)   To to study the amount and nature of existing general obligation and institutional bond obligations and the capability of the State to fulfill such obligations based on current and projected revenues.;

(3)   To to recommend priorities of future bond issuance based on the social and economic needs of the State.;

(4)   To to recommend prudent limitations of bond obligations related to present and future revenue estimates.;

(5)   To to consult with independent bond counsel and other nonlegislative authorities on such matters and with fiscal officials of other states to gain in-depth knowledge of capital management and assist in the formulation of short- and long-term recommendations for the General Assembly.;

(6)   To to carry out all of the above assigned responsibilities in consultation and cooperation with the executive branch of government and the Budget and Control Board. authority;

(7)   To to report its findings and recommendations to the General Assembly annually or more frequently if deemed advisable by the committee.


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Section 2-47-35.     No project authorized in whole or in part for capital improvement bond funding under the provisions of Act 1377 of 1968, as amended, may be implemented until funds can be made available and until the Joint Bond Review Committee, in consultation with the Budget and Control Board authority, establishes priorities for the funding of the projects. The Joint Bond Review Committee shall report its priorities to the members of the General Assembly within thirty days of the establishment of the funding priorities.

Section 2-47-40.     (A)   To assist the State Budget and Control Board (the Board) authority and the Joint Bond Review Committee (the Committee) in carrying out their respective responsibilities, any agency or institution requesting or receiving funds from any source for use in the financing of any permanent improvement project, as a minimum, shall provide to the Board authority, in such form and at such times as the Board authority, after review by the committee, may prescribe:

(a)(1)   a complete description of the proposed project;

(b)(2)   a statement of justification for the proposed project;

(c)(3)   a statement of the purposes and intended uses of the proposed project;

(d)(4)   the estimated total cost of the proposed project;

(e)(5)   an estimate of the additional future annual operating costs associated with the proposed project;

(f)(6)   a statement of the expected impact of the proposed project on the five-year operating plan of the agency or institution proposing the project;

(g)(7)   a proposed plan of financing the project, specifically identifying funds proposed from sources other than capital improvement bond authorizations; and

(h)(8)   the specification of the priority of each project among those proposed.

(B)   All institutions of higher learning shall submit permanent improvement project proposal and justification statements to the Board authority, through the Commission on Higher Education which shall forward all such statements and all supporting documentation received to the Board authority together with its comments and recommendations. The recommendations of the Commission on Higher Education, among other things, shall include all of the permanent improvement projects requested by the several institutions listed in the order of priority deemed appropriate by the Commission on Higher Education without regard to the sources of funds proposed for the financing of the projects requested.


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The Board authority shall forward a copy of each project proposal and justification statement and supporting documentation received together with the Board's authority's recommendations on such projects to the committee for its review and action. The recommendations of the Commission on Higher Education shall be included in the materials forwarded to the committee by the Board authority.

(C)   No provision in this section or elsewhere in this chapter, shall be construed to limit in any manner the prerogatives of the committee and the General Assembly with regard to recommending or authorizing permanent improvement projects and the funding such projects may require.

Section 2-47-50.   (A)   The board authority shall establish formally each permanent improvement project before actions of any sort which implement the project in any way may be undertaken and no expenditure of any funds for any services or for any other project purpose contracted for, delivered, or otherwise provided prior to the date of the formal action of the board authority to establish the project shall be approved. State agencies and institutions may advertise and interview for project architectural and engineering services for a pending project so long as the architectural and engineering contract is not awarded until after a state project number is assigned. After the committee has reviewed the form to be used to request the establishment of permanent improvement projects and has reviewed the time schedule for considering such requests as proposed by the board authority, requests to establish permanent improvement projects shall be made in such form and at such times as the board authority may require.

(B)   Any proposal to finance all or any part of any project using any funds not previously authorized specifically for the project by the General Assembly or using any funds not previously approved for the project by the board authority and reviewed by the committee shall be referred to the committee for review prior to approval by the board authority.

(C)   Any proposed revision of the scope or of the budget of an established permanent improvement project deemed by the board authority to be substantial shall be referred to the committee for its review prior to any final action by the board authority. In making their determinations regarding changes in project scope, the board authority, and the committee shall utilize the permanent improvement project proposal and justification statements, together with any supporting


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documentation, considered at the time the project was authorized or established originally. Any proposal to increase the budget of a previously approved project using any funds not previously approved for the project by the board authority and reviewed by the committee shall in all cases be deemed to be a substantial revision of a project budget which shall be referred to the committee for review. The committee shall be advised promptly of all actions taken by the board authority which approve revisions in the scope of or the budget of any previously established permanent improvement project not deemed substantial by the board authority.

(D)   For purposes of this chapter, with regard to all institutions of higher learning, permanent improvement project is defined as:

(1)   acquisition of land, regardless of cost, with staff level review of the committee and the Budget and Control Board, Capital Budget Office State Fiscal Accountability Authority, up to two hundred fifty thousand dollars;

(2)   acquisition, as opposed to the construction, of buildings or other structures, regardless of cost, with staff level review of the committee and the Budget and Control Board, Capital Budget Office State Fiscal Accountability Authority, up to two hundred fifty thousand dollars;

(3)   work on existing facilities for any given project including their renovation, repair, maintenance, alteration, or demolition in those instances in which the total cost of all work involved is one million dollars or more;

(4)   architectural and engineering and other types of planning and design work, regardless of cost, which is intended to result in a permanent improvement project. Master plans and feasibility studies are not permanent improvement projects and are not to be included;

(5)   capital lease purchase of a facility acquisition or construction in which the total cost is one million dollars or more;

(6)   equipment that either becomes a permanent fixture of a facility or does not become permanent but is included in the construction contract shall be included as a part of a project in which the total cost is one million dollars or more; and

(7)   new construction of a facility that exceeds a total cost of five hundred thousand dollars.

(E)   Any permanent improvement project that meets the above definition must become a project, regardless of the source of funds. However, an institution of higher learning that has been authorized or appropriated capital improvement bond funds, capital reserve funds or


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state appropriated funds, or state infrastructure bond funds by the General Assembly for capital improvements shall process a permanent improvement project, regardless of the amount.

(F)   For purposes of establishing permanent improvement projects, Clemson University Public Service Activities (Clemson-PSA) and South Carolina State University Public Service Activities (SC State-PSA) are subject to the provisions of this chapter.   Section 2-47-55.   (A)   All state agencies responsible for providing and maintaining physical facilities are required to submit a Comprehensive Permanent Improvement Plan (CPIP) to the Joint Bond Review Committee, and the Budget and Control Board authority. The CPIP must include all of the agency's permanent improvement projects anticipated and proposed over the next five years beginning with the fiscal year starting July 1 after submission. The purpose of the CPIP process is to provide the board authority, and the committee with an outline of each agency's permanent improvement activities for the next five years. Agencies must submit a CPIP to the committee, and the board authority on or before a date to be determined by the committee, and the board authority. The CPIP for each higher education agency, including the technical colleges, must be submitted through the Commission on Higher Education which must review the CPIP and provide its recommendations to the board authority, and the committee. The board authority, and the committee must approve the CPIP after submission and may develop policies and procedures to implement and accomplish the purposes of this section.

(B)   The State shall define a permanent improvement only in terms of capital improvements, as defined by generally accepted accounting principles, for reporting purposes to the State.

Section 2-47-56.   Each state agency and institution may accept gifts-in-kind for architectural and engineering services and construction of a value less than two hundred fifty thousand dollars with the approval of the Commission of Higher Education or its designated staff, the director of the Division of General Services department, and the Joint Bond Review Committee or its designated staff. No other approvals or procedural requirements, including the provisions of Section 11-35-10, may be imposed on the acceptance of such gifts.

Section 2-47-60.   The Joint Bond Review Committee is hereby authorized and directed to regulate the starting date of the various projects approved for funding through the issuance of state highway bonds so as to ensure that the sources of revenue for debt service on such bonds shall be sufficient during the current fiscal year."


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  Subpart 3

SECTION   27.   A.     (1)   The Insurance Reserve Fund, is transferred to the State Fiscal Accountability Authority on July 1, 2015, as a division of the authority.

(2)   The Insurance Reserve Fund, transferred to the authority shall administer and perform all administrative and operational functions of the Office of Insurance Services, including the Insurance Reserve Fund, except that the Attorney General of this State must continue to approve the attorneys-at-law retained to represent the clients of the Insurance Reserve Fund in the manner provided by law.

B.     Section 1-11-140 of the 1976 Code is amended to read:

"Section 1-11-140.   (A)   The State Budget and Control Board Fiscal Accountability Authority, through the Insurance Reserve Fund, is authorized to provide insurance for the State, its departments, agencies, institutions, commissions, boards, and the personnel employed by the State in its departments, agencies, institutions, commissions, and boards so as to protect the State against tort liability and to protect these personnel against tort liability arising in the course of their employment. The insurance also may be provided for physicians or dentists employed by the State, its departments, agencies, institutions, commissions, or boards against any tort liability arising out of the rendering of any professional services as a physician or dentist for which no fee is charged or professional services rendered of any type whatsoever so long as any fees received are directly payable to the employer of a covered physician or dentist, or to any practice plan authorized by the employer whether or not the practice plan is incorporated and registered with the Secretary of State; provided, any insurance coverage provided by the Budget and Control Board authority may be on the basis of claims made or upon occurrences. The insurance also may be provided for students of high schools, South Carolina Technical Schools, or state-supported colleges and universities while these students are engaged in work study, distributive education, or apprentice programs on the premises of private companies. Premiums for the insurance must be paid from appropriations to or funds collected by the various entities, except that in the case of the above-referenced students in which case the premiums must be paid from fees paid by students participating in these training programs. The board authority has the exclusive control over the investigation, settlement, and defense of claims against the various entities and personnel for whom it provided insurance coverage and may promulgate regulations in connection therewith.


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(B)   Any political subdivision of the State including, without limitations, municipalities, counties, and school districts, may procure the insurance for itself and for its employees in the same manner provided for the procurement of this insurance for the State, its entities, and its employees, or in a manner provided by Section 15-78-140.

(C)   The procurement of tort liability insurance in the manner provided is the exclusive means for the procurement of this insurance.

(D)   The State Budget and Control Board authority, through the Office of Insurance Services Insurance Reserve Fund, also is authorized to offer insurance to governmental hospitals and any subsidiary of or other entity affiliated with the hospital currently existing or as may be established; and chartered, nonprofit, eleemosynary hospitals and any subsidiary of or other entity affiliated with the hospital currently existing or as may be established in this State so as to protect these hospitals against tort liability. Notwithstanding any other provision of this section, the procurement of tort liability insurance by a hospital and any subsidiary of or other entity affiliated with the hospital currently existing or as may be established supported wholly or partially by public funds contributed by the State or any of its political subdivisions in the manner herein provided is not the exclusive means by which the hospital may procure tort liability insurance.

(E)   The State Budget and Control Board authority, through the Office of Insurance Services Insurance Reserve Fund, is authorized to provide insurance for duly appointed members of the boards and employees of health system agencies, and for members of the State Health Coordinating Council which are created pursuant to Public Law 93-641.

(F)   The board authority, through the Office of Insurance Services Insurance Reserve Fund, is further authorized to provide insurance as prescribed in Sections 10-7-10 through 10-7-40, 59-67-710, and 59-67-790.

(G)   Documentary or other material prepared by or for the Office of Insurance Services Insurance Reserve Fund in providing any insurance coverage authorized by this section or any other provision of law which is contained in any claim file is subject to disclosure to the extent required by the Freedom of Information Act only after the claim is settled or finally concluded by a court of competent jurisdiction.

(H)   The board authority, through the Office of Insurance Services Insurance Reserve Fund, is further authorized to provide insurance for state constables, including volunteer state constables, to protect these


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personnel against tort liability arising in the course of their employment, whether or not for compensation, while serving in a law enforcement capacity."

C.     Section 15-78-140 of the 1976 Code is amended to read:

"Section 15-78-140.   (a)   (Reserved)

(b)(A)   The political subdivisions of this State, in regard to tort and automobile liability, property, and casualty insurance shall procure insurance to cover these risks for which immunity has been waived by (1) the purchase of liability insurance pursuant to Section 1-11-140; or (2) the purchase of liability insurance from a private carrier; or (3) self-insurance; or (4) establishing pooled self-insurance liability funds, by intergovernmental agreement, which may not be construed as transacting the business of insurance or otherwise subject to state laws regulating insurance. A pooled self-insurance liability pool is authorized to purchase specific and aggregate excess insurance. A pooled self-insurance liability fund must provide liability coverage for all employees of a political subdivision applying for participation in the fund. If the insurance is obtained other than pursuant to Section 1-11-140, it must be obtained subject to the following conditions:

(1)   if the political subdivision does not procure tort liability insurance pursuant to Section 1-11-140, it must also procure its automobile liability and property and casualty insurance from other sources and shall not procure these coverages through the Budget and Control Board Insurance Reserve Fund;

(2)   if a political subdivision procures its tort liability insurance, automobile liability insurance, or property and casualty insurance through the Budget and Control Board Insurance Reserve Fund, all liability exposures of the political subdivision as well as its property and casualty insurance must be insured with the Budget and Control Board Insurance Reserve Fund;

(3)   if the political subdivision, at any time, procures its tort liability, automobile liability, property, or casualty insurance other than through the Budget and Control Board Insurance Reserve Fund and then subsequently desires to obtain this coverage with the Budget and Control Board Insurance Reserve Fund, notice of its intention to so obtain this subsequent coverage must be provided the Budget and Control Board Insurance Reserve Fund at least ninety days prior to the beginning of the coverage with the State Budget and Control Board Insurance Reserve Fund. The other lines of insurance that the political subdivision is required to procure from the board fund are not required to commence until the coverage for that line of insurance expires. Any


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political subdivision may cancel all lines of insurance with the State Budget and Control Board Insurance Reserve Fund if it gives ninety days' notice to the board fund. The Budget and Control Board Insurance Reserve Fund may negotiate the insurance coverage for any political subdivision separate from the insurance coverage for other insureds;

(4)   if any political subdivision cancels its insurance with the Budget and Control Board Insurance Reserve Fund, it is entitled to an appropriate refund of the premium, less reasonable administrative cost.

(c)(B)   For any claim filed under this chapter, the remedy provided in Section 15-78-120 is exclusive. The immunity of the State and its political subdivisions, with regard to the seizure, execution, or encumbrance of their properties is reaffirmed."

  Subpart 4

SECTION   28.   A.   Section 1-11-440 of the 1976 Code is amended to read:

"Section 1-11-440.   (A)   The State must defend the members of the State Budget and Control Board State Fiscal Accountability Authority and the Director of the Department of Administration against a claim or suit that arises out of or by virtue of their performance of official duties on behalf of the board authority or the department, as applicable, and must indemnify these members them for a loss or judgment incurred by them as a result of the claim or suit, without regard to whether the claim or suit is brought against them in their individual or official capacities, or both. The State must defend officers and management employees of the board authority, and legislative employees performing duties for board the authority's members or the department, and the department's officers and management employees against a claim or suit that arises out of or by virtue of the performance of official duties unless the officer, management employee, or legislative employee was acting in bad faith and must indemnify these officers, management employees, and legislative employees for a loss or judgment incurred by them as a result of such claim or suit, without regard to whether the claim or suit is brought against them in their individual or official capacities, or both. This commitment to defend and indemnify extends to members of the authority, the authority's officers and management employees, officers, the department's director and officers and management employees, and legislative employees after they have left their employment with the board authority, or the General Assembly, as applicable, or the department, as applicable, if the claim or suit arises


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out of or by virtue of their performance of official duties on behalf of the board their employer.

(B)   The State must defend the members of the Retirement Systems Investment Panel established pursuant to Section 16, Article X of the Constitution of this State and Section 9-16-310 against a claim or suit that arises out of or by virtue of their performance of official duties on behalf of the panel and must indemnify these members for a loss or judgment incurred by them as a result of the claim or suit, without regard to whether the claim or suit is brought against them in their individual or official capacities, or both. This commitment to defend and indemnify extends to members of the panel after they have left their service with the panel if the claim or suit arises out of or by virtue of their performance of official duties on behalf of the panel."

B.     1.   Section 11-18-20 of the 1976 Code, as added by Act 290 of 2010, is amended to read:

"Section 11-18-20.   (a)   'ARRA Bonds' mean:

(1)   recovery zone bonds authorized under Section 1401 of ARRA; and

(2)   Qualified Energy Conservation Bonds authorized under Section 301(a) of Tax Extenders and Alternative Minimum Tax Relief Act of 2008, Pub. L. 110-343, 122 Stat. 1365 (2008) as amended by Section 112 of ARRA.

(b)   'Board' means the South Carolina Budget and Control Board State Fiscal Accountability Authority's governing board.

(c)   'Code' means the Internal Revenue Code of 1986, as amended.

(d)   'Local Government' means each county and municipality that received an allocation of Volume Cap pursuant to the Code and IRS Notice 2009-50.

(e)   'Other federal bonds' mean any such bond, whether tax--exempt, taxable or tax credit, created after the date hereof whereby a volume cap limitation is proscribed under the Code.

(f)   'Qualified energy conservation bond' means the term as defined in Section 54D(a) of the Code.

(g)   'Recovery zone' means the term as defined in Section 1400U-1(b) of the Code.

(h)   'Recovery zone economic development bond' means the term as defined in Section 1400U-2 of the Code.

(i)     'Recovery zone facility bond' means the term as defined in Section 1400U-3 of the Code.

(j)     'State' means the State of South Carolina.


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(k)   'Volume Cap' means the amount or other limitation of ARRA Bonds allocated to each state and to counties and large municipalities within each state in accordance with Section 1400U-1(a)(4) of the Code, with respect to Recovery Zone Economic Development Bonds and Recovery Zone Facility Bonds, Section 54D(e)(1) of the Code, with respect to Qualified Energy Conservation Bonds, and any other section of the Code which imposes a volume cap limitation on any other Federal Bonds."

2.   The Code Commissioner is directed to change references in Chapter 18 , Title 11 of the 1976 Code from "State Budget and Control Board" or any similar derivation of this term to "State Fiscal Accountability Authority".

C.     The final paragraph of Section 11-27-10 of the 1976 Code is amended to read:

"'Ratification date' shall mean the effective date of New Article X. 'State board' shall mean the State Budget and Control Board governing body of the State Fiscal Accountability Authority. Any term defined in New Article X shall have the meanings therein given to such term."

D.     Chapter 31, Title 11 of the 1976 Code is amended by adding:

"Section 11-31-5.   For the purposes of this chapter, 'state board' shall mean the governing body of the State Fiscal Accountability Authority."

E.     Section 11-37-30 of the 1976 Code is amended to read:

"Section 11-37-30.   There is created a body politic and corporate known as the South Carolina Resources Authority. The authority is declared to be a public instrumentality of the State and the exercise by it of any power conferred in this chapter is the performance of an essential public function. The authority consists of the members of the State Budget and Control Board Fiscal Accountability Authority."

F.     Section 11-37-200(A) of the 1976 Code is amended to read:

"Section 11-37-200.   (A)   There is established by this section the Water Resources Coordinating Council within the State Fiscal Accountability Authority which shall establish the priorities for all sewer, wastewater treatment, and water supply facility projects addressed in this chapter, except as otherwise established by Section 48-6-40. The council shall consist of a representative of the Governor, the Director of the Department of Health and Environmental Control, the Director of the South Carolina Department of Natural Resources, the Director of the Division of Local Government of the Budget and Control Board State Fiscal Accountability Authority, the Secretary of Commerce, the Chairman of the Jobs Economic Development


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Authority, and the Chairman of the Joint Bond Review Committee. These representatives may designate a person to serve in their place on the council, and the Governor shall appoint the chairman from among the membership of the council for a one-year term. The council shall establish criteria for the review of applications for projects. Not less often than annually, the council shall determine its priorities for projects. The council after evaluating applications shall notify the authority of the priority projects. The South Carolina Jobs Economic Development Authority shall provide the staff to receive, research, investigate, and process applications for projects made to the coordinating council and assist in the formulating of priorities. Upon notification by the council, the authority shall proceed under the provisions of this chapter. The authority may consider applications for projects based upon the existence of a documented emergency consistent with regulations that may be promulgated by the authority. In determining which local governments are to receive grants, the local governments shall provide not less than a fifty percent match for any project. The authority may provide financing for the local matching funds on terms and conditions determined by the authority."

G.     Section 11-38-20(A) of the 1976 Code is amended to read:

"(A) The State Budget and Control Board Fiscal Accountability Authority is authorized to provide for the issuance of capital improvement bonds in denominations of less than $1,000."

H.     1.   Section 11-40-20(A) of the 1976 Code is amended to read:

"(A)   There is created a body corporate and politic and an instrumentality of the State to be known as the South Carolina Infrastructure Facilities Authority. The members of the South Carolina State Budget and Control Board Rural Infrastructure Authority comprise the authority."

2.   Section 11-40-250 of the 1976 Code is amended to read:

"Section 11-40-250.   The Division of Local Government of the State Budget and Control Board Rural Infrastructure Authority shall provide staff and otherwise assist the authority in the administration of the fund and the performance of its functions under this chapter. The funds to be used for purposes of the Infrastructure Facilities Authority must come from funds appropriated to or made available to the Infrastructure Facilities Authority and not those funds of the Rural Infrastructure Authority, the administration of which also is a part of the responsibilities of the Division of Local Government as provided by law. In providing such assistance the Division of Local Government shall:


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(1)   assist in the formulation, establishment, and structuring of programs undertaken by the authority pursuant to this chapter;

(2)   provide local governments information as to the programs of the authority and the procedures for obtaining the assistance intended by the chapter;

(3)   assist local governments in making application to such state and federal agencies, including the authority, as may be necessary or helpful in order to avail themselves of such programs;

(4)   assist the authority in analyzing and evaluating local government requests for assistance pursuant to this chapter;

(5)   assist in the structuring and negotiation of local government loan agreements and loan obligations and authority bonds;

(6)   administer the fund, including any accounts therein;

(7)   administer the authority's programs and loans, including monitoring compliance by local governments with any rules, regulations, or other requirements of the authority with respect to such programs and compliance with covenants and agreements made by local governments with respect to any loan agreement or loan obligation; and

(8)   provide such other assistance and perform such other duties as may be requested or directed by the authority."

I.   1.   The first paragraph of Section 11-41-70 of the 1976 Code is amended to read:

"Section 11-41-70.   Before issuing economic development bonds, the department or in the case of a tourism training infrastructure project or a national and international convention and trade show center, the State or agency, instrumentality, or political subdivision thereof that will own such project shall notify the Joint Bond Review Committee and the State Budget and Control Board Fiscal Accountability Authority of the following:"

2.   Sections 11-41-80, 11-41-90, and 11-41-100 of the 1976 Code are amended to read:

"Section 11-41-80.   Following the receipt of the notification presented pursuant to Section 11-41-70 and after approval review by the Joint Bond Review Committee, and approval by the State Budget and Control Board Fiscal Accountability Authority, by resolution duly adopted, shall effect the issue of bonds, or pending the issue of the bonds, effect the issue of bond anticipation notes pursuant to Chapter 17 of this title.

Section 11-41-90.   To effect the issuance of bonds, the State Budget and Control Board Fiscal Accountability Authority shall adopt a


Printed Page 4170 . . . . . Tuesday, May 28, 2013

resolution providing for the issuance of bonds pursuant to the provisions of this chapter. The authorizing resolution must include:

(1)   a statement of whether the bonds are being authorized and issued pursuant to Section 11-41-50(A) or Section 11-41-50(B);

(2)   a schedule showing the aggregate of bonds issued, the annual principal payments required to retire the bonds, and the interest on the bonds;

(3)   the amount of bonds proposed to be issued;

(4)   a schedule showing future annual principal requirements and estimated annual interest requirements on the bonds to be issued; and

(5)   certificates evidencing that the provisions of Sections 11-41-50 and 11-41-60 have been or will be met.

Section 11-41-100.   The bonds must bear the date and mature at the time that the resolution provides, except that a bond may not mature more than thirty years from its date of issue. The bonds may be in the denominations, be payable in the medium of payment, be payable at the place and at the time, and be subject to redemption or repurchase and contain other provisions determined by the State Budget and Control Board Fiscal Accountability Authority before their issue. The bonds may bear interest payable at the times and at the rates determined by the State Budget and Control Board Fiscal Accountability Authority."

3.   Section 11-41-180 of the 1976 Code is amended to read:

"Section 11-41-180.   All procurements of infrastructure, as defined in Section 11-41-30 and owned by a research university, as defined in Section 11-51-30(5), shall be exempt from Title 11, Chapter 35, except that such research university must work in conjunction with the Budget and Control Board's State Fiscal Accountability Authority's Chief Procurement Officer to establish alternative procurement procedures. The research university shall submit its alternative procurement procedures to the State Budget and Control Board State Fiscal Accountability Authority for approval. Such The procurement process shall include provisions for audit and recertification."

J.     Section 11-43-510(2) of the 1976 Code is amended to read:

"(2)   'State board' means the State Budget and Control Board governing board of the State Fiscal Accountability Authority."

K.     1.   Section 11-45-30(10) of the 1976 Code is amended to read:

"(10)   'Lender' means a banking institution subject to the income tax on banks under Chapter 11 of Title 12, an insurance company subject to a state premium tax liability pursuant to Chapter 7 of Title 38, a captive insurance company regulated pursuant to Chapter 90 of Title 38, a utility regulated pursuant to Title 58, or a financial


Printed Page 4171 . . . . . Tuesday, May 28, 2013

institution with proven experience in state-based venture capital transactions, pursuant to guidelines established by the authority. Both the guidelines and the lender must be approved by the State Budget and Control Board Fiscal Accountability Authority."

2.     Section 11-45-55(B) of the 1976 Code is amended to read:

"(B)   The authority shall issue tax credit certificates to each lender contemporaneously with each loan made pursuant to this chapter in accordance with any guidelines established by the authority pursuant to Section 11-45-100. The tax credit certificates must describe procedures for the issuance, transfer and redemption of the certificates, and related tax credits. These certificates also must describe the amounts, year, and conditions for redemption of the tax credits reflected on the certificates. Once a loan is made by a lender, the certificate issued to the lender shall be binding on the authority and this State and may not be modified, terminated, or rescinded. The form of the tax credit certificate must be approved by the State Budget and Control Board Fiscal Accountability Authority."

3.     Section 11-45-105 of the 1976 Code is amended to read:

"Section 11-45-105.   Any guideline issued by the authority pursuant to this chapter must be approved by the State Budget and Control Board Fiscal Accountability Authority."

L.     1.     Section 11-49-40 of the 1976 Code is amended to read:

"Section 11-49-40.   (A)   The authority is governed by a board, which that shall consist of five members as follows: the Governor or his designee, the State Treasurer, the Comptroller General, the Chairman of the Senate Finance Committee, and the Chairman of the House Ways and Means Committee. The Governor shall serve as chairman; and in the absence of the Governor, meetings must be chaired by the State Treasurer the members of the State Fiscal Accountability Authority. All members serve ex officio .

(B)   Members of the board serve without pay but are allowed the usual mileage, per diem, and subsistence as provided by law for members of state boards, committees, and commissions.

(C)   Members of the board and its employees, if any, are subject to the provisions of Chapter 13, Title 8, the Ethics, Government Accountability, and Campaign Reform Act, and Chapter 17, of Title 2, relating to lobbying.

(D)   To the extent that administrative assistance is needed for the functions and operations of the authority, the board may obtain this assistance from the Office of the State Treasurer and the State Budget and Control Board Fiscal Accountability Authority, and any successor


Printed Page 4172 . . . . . Tuesday, May 28, 2013

agency, office, or division, each of which must provide the assistance requested by the board at no cost to the board or to the authority other than for expenses incurred and paid to entities that are not agencies or departments of the State. The board must retain ultimate responsibility and provide proper oversight for the implementation of this chapter.

(E)   The board shall exercise the powers of the authority. A majority of the members of the board constitutes a quorum for the purpose of conducting all business. The board shall determine the number of personnel it requires, their compensation, and duties."

M.   1.   Section 11-51-30(6) of the 1976 Code is amended to read:

"(6)   'State board' means the South Carolina State Budget and Control Board governing board of the State Fiscal Accountability Authority."

2.     Section 11-51-125(A)(2) of the 1976 Code is amended to read:

"(2)   thirty-five percent of the total twelve percent must be allocated by FTE student enrollment from the prior academic year at each eligible institution.

The Research Centers of Excellence Review Board has no jurisdiction over these projects and no matching requirement is imposed for these projects. The Joint Bond Review Committee must review and the State Budget and Control Board Fiscal Accountability Authority must approve all projects."

3.     Section 11-51-190 of the 1976 Code is amended to read:

"Section 11-51-190.   The research universities while engaging in projects related to this act shall be exempt from the state procurement process, except such that the research universities must work in conjunction with the Budget and Control Board's State Fiscal Accountabily Authority's Chief Procurement Officer to establish alternate procurement procedures, and must submit a procurement process to the State Commission on Higher Education to be forwarded to the State Budget and Control Board Fiscal Accountability Authority for approval. These processes shall include provisions for audit and recertification."

N.     Section 59-109-30(1) of the 1976 Code is amended to read:

"(1)   'Authority' means the State Budget and Control Board Fiscal Accountability Authority, acting as the Educational Facilities Authority for Private Nonprofit Institutions of Higher Learning and serving ex officio."

O.     Section 59-109-40 of the 1976 Code is amended to read:

"Section 59-109-40.   There is hereby created a body politic and corporate to be known as the 'Educational Facilities Authority for


Printed Page 4173 . . . . . Tuesday, May 28, 2013

Private Nonprofit Institutions of Higher Learning,' hereinafter in this chapter called the Authority. The Authority is constituted a public instrumentality and the exercise by the Authority of the powers conferred by this chapter shall must be deemed and held to be the performance of an essential public function. The Authority shall consist of the members from time to time of the State Budget and Control Board Fiscal Accountability Authority, ex officio; and all the functions and powers of the Authority are hereby granted to the State Budget and Control Board Fiscal Accountability Authority, as an incident of its functions in connection with the public finances of the State."

P.     1.   Section 59-115-20(1) of the 1976 Code is amended to read:

"(1)   'Authority' shall mean means the State Budget and Control Board of South Carolina Fiscal Accountability Authority, acting as the State Education Assistance Authority."

2.   Section 59-115-40 of the 1976 Code is amended to read:

"Section 59-115-40.   There is hereby created a body politic and corporate to be known as the State Education Assistance Authority (Authority). The Authority is hereby declared to be a public instrumentality of the State and the exercise by the Authority of any power conferred herein shall be deemed and held to be the performance of an essential public function. The Authority shall consist of the members, from time to time, of the State Budget and Control Board of South Carolina Fiscal Accountability Authority, ex officio."

SECTION   29.   A.     Section 11-35-310(2) of the 1976 Code is amended to read:

"(2)   'Board' means Budget and Control Board the Procurement Oversight Board established in Section 11-35-315."

B.   Subarticle 5, Article 1, Chapter 35, Title 11 of the 1976 Code is amended by adding:

"Section 11-35-315.   (A)   There is hereby established the Procurement Oversight Board to be comprised of three members appointed to four-year terms with one member each appointed by the Governor, the Comptroller General, and the State Treasurer. A board member may only be removed by his appointing official for malfeasance, misfeasance, incompetency, absenteeism, conflicts of interest, misconduct, persistent neglect of duty in office, or incapacity, in writing with a copy published in a conspicuous location on the board's internet website. The board shall elect one member to serve as chairman and must meet at least quarterly to carry out the duties and responsibilities provided by this chapter. The members of the board


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may receive the usual rate for mileage, subsistence, and per diem as provided by law for members of state boards, committees, and commissions and may be reimbursed for actual expenses in connection with and as a result of their membership and service on the board.

(B)   A board member or his immediate family must not have an economic interest that would cause the member to recuse himself from participating in the deliberations or voting on any matter before the board pursuant to Section 8-13-700."

C.   Upon the effective date of the creation of the Procurement Oversight Board, all offices established by Chapter 35, Title 11, including the Materials Management Office and Office of State Engineer and corresponding staff and equipment, are transferred to the Procurement Oversight Board, except as otherwise provided by law.

  Part IX

Naval Base Museum Authority

SECTION   30.   (A)   Notwithstanding any other provision of law, in addition to the present members of the Charleston Naval Complex Redevelopment Authority, as created by gubernatorial executive order pursuant to Section 31-12-40 of the 1976 Code, there shall be four additional members, two appointed by the Speaker of the House of Representatives and two appointed by the President Pro Tempore of the Senate. These four additional members shall each serve for terms of four years and until their successors are appointed and qualify. Vacancies shall be filled for the remainder of the unexpired term by appointment in the same manner of original appointment.

(B)   These four additional members shall serve as members of the Charleston Naval Complex Redevelopment Authority with the same powers, duties, and responsibilities of other such members as provided by law. In addition, these four members, together with the gubernatorial appointees to the Charleston Naval Complex Redevelopment Authority, shall also constitute the Charleston Navy Base Museum Authority as a division of the Charleston Naval Redevelopment Authority. Service as a member of the Navy Base Museum Authority is considered an additional and supplemental function and duty of those specified members of the Naval Complex Redevelopment Authority and is not considered another office of honor or profit of this State. The Navy Base Museum Authority shall select from among its members a chairman and such other officers as they consider necessary.

(C)   The Naval Base Museum Authority shall become operative upon the signing of a Memorandum of Understanding between the RDA and the Hunley Commission. With respect to the Hunley project,


Printed Page 4175 . . . . . Tuesday, May 28, 2013

the MOU must provide for the Naval Base Museum Authority division of the RDA to undertake and comply with the duties, responsibilities, powers, and functions of the Hunley Commission as specified in Sections 54-7-100 and 54-7-110 of the 1976 Code, and as otherwise provided by law. The Navy Base Museum Authority shall possess and may exercise all powers and authority granted to the Hunley Commission by specific statutory reference in Sections 54-7-100 and 54-7-110.

(D)   Notwithstanding the provisions of this act, the provisions of this section take effect upon approval by the Governor.

SECTION   31.   A.   Title 1 of the 1976 Code is amended by adding:

  "CHAPTER 36

Information Security

Article 1

Division of Information Security

Section 1-36-10.   (A)   There is hereby established within the Budget and Control Board the Division of Information Security that is dedicated to the protection of the State's information and cyber security infrastructure, including, but not limited to, the identification and mitigation of vulnerabilities, deterring and responding to cyber events, and promoting cyber security awareness within the State. The division also shall be responsible for statewide policies, standards, programs and services relating to cyber security and information systems, including the statewide coordination of critical infrastructure information. The divison shall consist of the Chief Information Security Officer, who is the director of the divison, and a staff employed by the Chief Information Security Officer as necessary to carry out the duties of the division and as are authorized by law. The Chief Information Security Officer, with advice and assistance of the Office of Human Resources of the Budget and Control Board, shall fix the salaries of all staff subject to the funds authorized in the annual general appropriations act. Subject to funding, the salaries of the staff involved with information technology must be competitive with the private sector. The compensation plan must be unique to information technology employees working at the Division of Information Security and consider all factors including areas requiring specialized skill sets, and should include components necessary to recruit and retain highly qualified information technology professionals to the State.

(B)   After consulting with the Division of State Information Technology of the Budget and Control Board, the Governor shall appoint the Chief Information Security Officer with the advice and


Printed Page 4176 . . . . . Tuesday, May 28, 2013

consent of the Senate for a term of four years, except that the initial appointment shall expire June 30, 2017. The Governor may reappoint the Chief Information Security Officer for additional terms. The Chief Information Security Officer's compensation must not be reduced during the Chief Information Security Officer's uninterrupted continued tenure in office.

(C)   The Chief Information Security Officer may be removed from office only by the Governor as provided in Section 1-3-240(C).

Section 1-36-20.   In consultation with appropriate agency heads, the Chief Information Security Officer shall develop cyber security policies, guidelines, and standards, and shall install and administer state data security systems on the state's computer facilities consistent with these policies, guidelines, standards, and state law to ensure the integrity of computer-based and other data and to ensure applicable limitations on access to data. The Chief Information Security Officer is responsible for overall security of state agency networks connected to the Internet. Each agency or agency head is responsible for the security of the agency's data within the guidelines of the established policy.

Section 1-36-30.   In developing policies, guidelines, and standards, the Chief Information Security Officer must consider:

(1)   developing an information technology governance structure that is inclusive of all agencies;

(2)   adopting control objectives to manage, implement, and maintain information technology systems;

(3)   developing security metrics that accurately measure unwanted intrusions, security breaches, penetrations, and vulnerabilities;

(4)   developing security standards based on a full risk assessment of critical infrastructure vulnerabilities; and

(5)   developing a method for the sharing of security information sharing and analysis.

Section 1-36-40.     (A)   All agencies must adopt and implement the policies, guidelines, and standards developed by the Chief Information Security Officer.

(B)   Upon request of the Chief Information Security Officer for information or data, all agencies must fully cooperate with and furnish the Chief Information Security Officer with all documents, reports, answers, records, accounts, papers, and other necessary data and documentary information to perform the division's mission and to exercise the division's functions, powers, and duties.

(C)   The Chief Information Security Officer shall coordinate at least one training conference annually for state agency information security


Printed Page 4177 . . . . . Tuesday, May 28, 2013

officers and shall receive an appropriation for the conference in an amount sufficient to attract the top cyber security professionals in the country to speak and to produce training materials for attendees.

Section 1-36-50.   For purposes of this chapter, 'Agency' means all state agencies, departments, boards, commissions, institutions, and authorities, except the legislative and judicial departments of state government, that collect or maintain personally identifiable information as defined in Section 12-4-352. 'Agency' also includes all political subdivisions of this State, including school districts, and public authorities that collect or maintain personally identifiable information as defined in Section 12-4-352.

Section 1-36-60.   The department may promulgate regulations necessary to implement the provisions of this chapter and to accomplish the objectives set forth in Section 1-36-20. The regulations may include penalties for any agency in violation of Section 1-36-40.

  Article 3

Technology Investment Council

Section 1-36-310.   There is hereby established a Technology Investment Council. The council shall consist of seven members, appointed as follows:

(1)   the Director of the Budget and Control Board, Division of State Information Technology, who shall serve as chairman;

(2)   the Chief Information Security Officer;

(3)   five members, with one appointment made by each: the Governor, President Pro Tempore of the Senate, Speaker of the House of Representatives, Chairman of the Senate Finance Committee, and Chairman of the House Ways and Means Committee.

Section 1-36-320.   The duties of the council are as follows:

  (1)   adopt policies and procedures used to develop, review, and annually update a statewide technology plan and provide it to the Governor, Office of State Budget, and the General Assembly;

(2)   by October 1, 2013, and each October first thereafter, the council shall provide the Governor, the Legislative Fiscal Office, the Executive Budget and Strategic Planning Office, and the General Assembly with a statewide technology plan. The plan shall discuss the State's overall technology needs over a multiyear period and the potential budgetary implications of meeting those needs;

(3)   by November fifteenth of each year, the council shall make recommendations to the Governor and General Assembly regarding the funding of technology for the next fiscal year;


Printed Page 4178 . . . . . Tuesday, May 28, 2013

(4)   enforce active project management, review the progress of current projects to determine if they are on budget and have met their project milestones, and when necessary, recommend the termination of projects; and

(5)   develop minimum technical standards, guidelines, and architectures as required for state technology projects.

Section 1-36-330.   To assist the council and Department of Information Security in fulfilling its duties, each agency shall name an individual to act as that agency's 'information security officer'. It is the intent of this section that such information security officers will act as the primary points of contact for appropriate communications between the council and the Department of Information Security."

D.     Notwithstanding the general effective date of this act, this SECTION takes effect July 1, 2013.

SECTION   32.   A.   Section 2-65-15(4) of the 1976 Code is amended to read:

"(4)   "Board" means the State Budget and Control Board Executive Budget and Strategic Planning Office."

B.   Chapter 65, Title 2 of the 1976 Code is amended by adding:

"Section 2-65-130.   If the board does not authorize an expenditure proposal then the proposal must be forwarded to the State Fiscal Accountability Authority for consideration. The authority may overturn the decision by the board and authorize the expenditures requested in the proposal if the authority finds that the expenditure proposal meets the standards for approval provided in this chapter."

  Part X

Performance Audit, Other Transfers and Provisions,

and Effective Date

SECTION   33.   (A)   The name of the Office Legislative Printing, Information and Technology Systems is changed to the Legislative Services Agency. References in the 1976 Code to the "Office of Legislative Printing, Information and Technology Systems" or "LPITS" mean the "Legislative Services Agency" or "LSA", as appropriate. The Code Commissioner is directed to change references in the 1976 Code to conform to this name change, and such changes must be included in the next printing of replacement volumes of or cumulative supplements to the 1976 Code.

(B)(1)   The Code Commissioner is directed to change or correct all references to these offices of the former Budget and Control Board in the 1976 Code, Office of the Governor, or other agencies to reflect the transfer of them to the Department of Administration or other entities,


Printed Page 4179 . . . . . Tuesday, May 28, 2013

including those newly created by the provisions of this act. References to the names of these offices in the 1976 Code or other provisions of law are considered to be and must be construed to mean appropriate references.

(2)   On or before July 1, 2014, the Code Commissioner also shall prepare and deliver a report to the President Pro Tempore of the Senate and the Speaker of the House of Representatives concerning appropriate and conforming changes to the 1976 Code of Laws reflecting the provisions of this act.

(C)(1)   No later than December 31, 2015, the State Fiscal Accountability Authority shall undertake a strategic sourcing initiative through which it must analyze the state's current spending on various categories of goods and services, identify the greatest opportunities to leverage the state's purchasing power, and prioritize the state's subsequent efforts to maximize achievable savings.

(2)   No later than June 30, 2016, the State Fiscal Accountability Authority shall submit a report to the Governor, the President Pro Tempore of the Senate, and the Speaker of the House of Representatives to recommend changes to statutes, policies, and procedures governing state procurement activities. The recommendations shall be formulated in order to reduce costs, accelerate processing times, and improve services provided to state agencies and their business partners.

SECTION   34.   A.     During the year 2020, the Legislative Audit Council shall conduct a performance review of the provisions of this act to determine its effectiveness and achievements with regard to the more efficient performance of the functions and duties of the various agencies provided for herein and the cost savings and benefits to the State.

B.     Section 2-15-50(b)(2) of the 1976 Code is amended to read:

"(2)   the effectiveness of organizations, programs, activities, or functions and whether these organizations, programs, activities, or functions should be continued, revised, or eliminated;"

SECTION   35.   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,


Printed Page 4180 . . . . . Tuesday, May 28, 2013

subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

SECTION   36.   Unless otherwise provided, this act takes effect July 1, 2015. However, beginning on January 1, 2014, the appropriate officials of the executive, legislative, and judicial branches involved with the implementation of the provisions of this act including the transfer of divisions, offices, and personnel to other agencies, the implementation of new offices or divisions within agencies, and the negotiation and execution of necessary agreements relating to this act such as memorandums of understanding may begin undertaking and executing these responsibilities so that the provisions of this act may be fully implemented on July 1, 2015, with the appropriations contained in the 2014-2015 general appropriations act to the fullest extent possible being reflective of the transfers, realignments and restructuring provided by this act. /

Renumber sections to conform.

Amend title to conform.

Senator SCOTT spoke on the amendment.

Senator LARRY MARTIN moved to lay the amendment on the table.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 27; Nays 14

AYES

Alexander                 Bennett                   Bright
Bryant                    Campbell                  Cleary
Corbin                    Courson                   Cromer
Davis                     Fair                      Gregory
Grooms                    Hayes                     Hembree
Leatherman                Martin, Larry             Martin, Shane
Massey                    O'Dell                    Peeler
Shealy                    Sheheen                   Thurmond
Turner                    Verdin                    Young

Total--27


Printed Page 4181 . . . . . Tuesday, May 28, 2013

NAYS

Allen                     Coleman                   Ford
Hutto                     Johnson                   Lourie
Malloy                    McElveen                  McGill
Nicholson                 Reese                     Scott
Setzler                   Williams

Total--14

The amendment was laid on the table.

The question then was concurrence in the House amendments.

Senator MALLOY spoke on the motion.

The question was concurrence in the House amendments.

Objection

Senator LARRY MARTIN asked unanimous consent to make a motion that those Senators present and voting be recorded as voting against the motion to concur, with those Senators wishing to vote in the affirmative notifying the Desk.

Senator SHANE MARTIN objected.

Senator MALLOY spoke on the motion.

Senator MALLOY moved that the Senate stand adjourned.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 16; Nays 25

AYES

Allen                     Bryant                    Coleman
Ford                      Hutto                     Johnson
Malloy                    Martin, Shane             Matthews
McGill                    Nicholson                 O'Dell
Reese                     Scott                     Setzler
Williams

Total--16


Printed Page 4182 . . . . . Tuesday, May 28, 2013

NAYS

Alexander                 Bennett                   Bright
Campbell                  Cleary                    Corbin
Courson                   Cromer                    Davis
Fair                      Gregory                   Grooms
Hembree                   Leatherman                Lourie
Martin, Larry             Massey                    McElveen
Peeler                    Shealy                    Sheheen
Thurmond                  Turner                    Verdin
Young

Total--25

The Senate refused to adjourn. The question then was the motion to concur.

Objection

Senator LARRY MARTIN asked unanimous consent to make a motion that those Senators present and voting be recorded as voting against the motion to concur, with those Senators wishing to vote in the affirmative notifying the Desk.

Senator SHANE MARTIN objected.

Senator HUTTO spoke on the motion to concur.

Objection

With Senator HUTTO retaining the floor, Senator LOURIE asked unanimous consent to make a motion that the Senate nonconcur in the House amendments with Senators BRYANT, BRIGHT, SHANE MARTIN, DAVIS and GROOMS being recorded as voting "Nay."

Senator YOUNG objected.

Senator HUTTO resumed speaking on the motion.

Senator LOURIE asked unanimous consent to make a motion that the Senate nonconcur in the House amendments with Senators BRIGHT, DAVIS, SHEALY, YOUNG, BRYANT, GROOMS, THURMOND, CORBIN, SHANE MARTIN and TURNER being recorded as voting in favor of concurrence.

There was no objection and the motion was adopted.


Printed Page 4183 . . . . . Tuesday, May 28, 2013

The Senate nonconcurred in the House amendments and a message was sent to the House accordingly.

CONCURRENCE

S. 143 (Word version) -- Senators Malloy, Ford, Massey, S. Martin and Hayes: A BILL TO AMEND ARTICLES 1, 2, 3 AND 4 OF TITLE 62, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA PROBATE CODE, SO AS TO, AMONG OTHER THINGS, DEFINE THE JURISDICTION OF THE PROBATE CODE, TO DETERMINE INTESTATE SUCCESSION, TO PROVIDE FOR THE PROCESS OF EXECUTING A WILL, TO PROVIDE FOR THE PROCESS TO PROBATE AND ADMINISTER A WILL, AND TO PROVIDE FOR LOCAL AND FOREIGN PERSONAL REPRESENTATIVES; AND TO AMEND ARTICLES 6 AND 7 OF TITLE 62, RELATING TO THE SOUTH CAROLINA PROBATE CODE, SO AS TO PROVIDE FOR THE GOVERNANCE OF NONPROBATE TRANSFERS, AND TO AMEND THE SOUTH CAROLINA TRUST CODE.

The House returned the Bill with amendments, the question being concurrence in the House amendments.

Senator MALLOY explained the amendments.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 37; Nays 1

AYES

Alexander                 Allen                     Bennett
Bryant                    Campbell                  Cleary
Coleman                   Corbin                    Courson
Cromer                    Davis                     Ford
Gregory                   Grooms                    Hembree
Hutto                     Johnson                   Leatherman
Lourie                    Malloy                    Martin, Larry
Martin, Shane             Massey                    Matthews
McElveen                  Nicholson                 Peeler
Reese                     Scott                     Setzler
Shealy                    Sheheen                   Thurmond


Printed Page 4184 . . . . . Tuesday, May 28, 2013

Turner                    Verdin                    Williams
Young

Total--37

NAYS

Bright

Total--1

The Senate concurred in the House amendments and a message was sent to the House accordingly. Ordered that the title be changed to that of an Act and the Act enrolled for Ratification.

  Motion Adopted

Senator COURSON moved that when the Senate adjourns today, it stand adjourned to meet at 10:30 A.M. tomorrow.

The motion was adopted.

MOTION ADOPTED

On motion of Senator LOURIE, with unanimous consent, the Senate stood adjourned out of respect to the memory of Mr. John Corey Stringfellow of Columbia, S.C. Corey attended Spring Valley High School and was a member of the varsity soccer team and an honorary member of the Cardinal Newman soccer team. He was an avid surfer, skier and loved basketball, soccer, football, listening to music and fishing with friends. He was a loving son and wonderful brother to Cameron and Caroline.

and

MOTION ADOPTED

On motion of Senator JOHNSON, with unanimous consent, the Senate stood adjourned out of respect to the memory of Mr. Warren De'Aunte Kindell of Elgin, S.C. Mr. Kindell was the son of Clarence and Arleatha Toland and Ronald and Valarie York.


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ADJOURNMENT

At 8:26 P.M., on motion of Senator HUTTO, the Senate adjourned to meet tomorrow at 10:30 A.M.

* * *

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