Amend the committee amendment, as and if amended, by striking PART II in its entirety and inserting:
SECTION 2. Section 1-11-20 of the 1976 Code is amended to read:
"Section 1-11-20. (A) The functions of the State Budget and Control Board must be performed, exercised, and discharged under the supervision and direction of the board through three its 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 Each division to consist consists 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.
(B) Effective July 1, 2011, the following offices, divisions, or components of the State Budget and Control Board are transferred to, and incorporated into, the Department of Administration:
(1) Division of General Services including Business Operations, Facilities Management, State Building and Property Services, and Agency Services including surplus property, intra state mail, parking, state fleet management, except that this division 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 as provided in Section 1-30-125;
(2) Division of State Information Technology including the Data Center, Information Technology Services, and South Carolina Enterprise Information System, but not including, support of the Joint Strategic Technology Committee;
(3) Office of Human Resources;
(4) the State Engineer's Office;
(5) the Insurance Reserve Fund;
(6) that portion of the Office of Research and Statistics required to support the Governor's executive budget writing duties; and
(7) Office of State Budget, except for the employees required to provide fiscal impact statements on proposed legislation and to support the General Assembly's budget writing duties who are transferred to the Legislative Fiscal Office.
(C) Effective July 1, 2011, the Board of Economic Advisors and the Procurement Division are transferred to, and incorporated into, the State Financial Affairs Authority.
(D) Effective January 1, 2012, the Office of Research and Statistics, except for the employees required to support the Governor's executive budget writing duties, is transferred to, and incorporated into, the Legislative Fiscal Office.
(E) Effective July 1, 2011, the following offices, divisions, or components of the State Budget and Control Board are transferred to, and incorporated into, the Department of Health and Environmental Control:
(1) South Carolina Infrastructure Facilities Authority;
(2) Office of Local Government in support of the local government loan program;
(3) State Revolving Fund in support of water quality projects.
(F) Effective July 1, 2011, the State Energy Office is transferred from the State Budget and Control Board to the Office of Regulatory Staff.
(G) Effective July 1, 2011, the State Auditor is transferred from the State Budget and Control Board to the Office of the State Treasurer.
(H) Effective July 1, 2011, the Confederate Relic Room is transferred from the State Budget and Control Board to the Department of Archives and History.
(I) Effective July 1, 2011, and until July 1, 2013, the State Budget and Control Board consists of the:
(1) Employee Insurance Program; and
(2) Retirement Division.
Effective July 1, 2013, the State Budget and Control Board is abolished.
(J)(1) Effective July 1, 2013, the following offices, divisions, or components of the State Budget and Control Board and the Department of Administration are transferred to, and incorporated into, an administrative agency of state government to be known as the Public Employee Benefit Agency:
(a) the Employee Insurance Program;
(b) the Retirement Division.
Effective July 1, 2011, and until June 30, 2013, any additions or amendments to the State Employee Insurance Plan or the retirement system may not be adopted without the unanimous consent of the State Budget and Control Board. Effective July 1, 2013, the State Budget and Control Board is abolished.
(2) The agency shall be comprised of the Employee Insurance Division, the Retirement Systems Division, the Insurance Reserve Fund Division, and the Administration Division. A board of trustees must be appointed to manage and make policy decisions for the Employee Insurance Division and the Retirement Systems Division. The daily office functions and other administrative tasks for all divisions shall be managed through the Administration Division by an executive director.
(3)(a) On the effective date of this section, there is established a transition committee to provide the expertise necessary to facilitate the transfer of operations from the Budget and Control Board to the Public Employee Benefit Agency.
(b) The transition committee is authorized to study and evaluate all actions necessary, both legislative and executive, for an orderly transition of the related trust funds and their operations to the trustee-based system to be administered by the Public Employee Benefit Agency. The transition committee must conduct a comprehensive survey of the structure, trustee governance, and operations of other similar systems throughout the United States and make recommendations to the General Assembly concerning the legislative actions that are needed to implement the most efficient, effective system.
(c) The transition committee shall be comprised of eight voting members and the State Treasurer, ex officio, who shall serve as its chairman and may only vote when the committee is equally divided on any question. The eight voting members must be appointed by the State Budget and Control Board as follows:
(i) one member representing municipal employees;
(ii) one member representing county employees;
(iii) three members representing state employees, one of whom must be retired and one of whom must be an active or retired law enforcement officer who is contributing to or receiving benefits from the Police Officers Retirement System. If this law enforcement member is retired, the other two members representing state employees do not have to be retired;
(iv) two members representing public school teachers, one of whom must be retired;
(v) one member representing the Retirement Investment Commission.
The Budget and Control Board shall invite the appropriate associations, groups, and individuals to recommend persons to serve on the board. The Budget and Control Board must appoint members from among the recommendations. Members must be appointed within sixty days of the effective date of this section.
Members of the General Assembly may not be appointed to the transition committee. Members of the transition committee must have substantial academic or professional experience or specialization in one or more areas of public finance, government budgeting and administration, insurance, retirement investment, economics, accounting, or related legal fields.
(d) The members of the committee:
(i) must meet as soon as practicable after appointment to organize itself by electing officers as the committee may consider necessary. Thereafter, the committee must meet as necessary to fulfill the duties required in this subsection at the call of the chairman or by a majority of the members. A quorum exists of seven members. The committee must engage or employ staff or consultants as may be necessary or prudent to assist the committee in the performance of its duties and responsibilities. Any staff or consultants must possess an academic background or substantial career experience of such a nature as to assist the committee in fulfilling its duties, including, but not limited to, being credentialed in structure and board governance policy;
(ii) shall serve without compensation but may receive the usual mileage, subsistence, and per diem allowed by law for members of state boards, committee, or commissions; and
(iii) expenses incurred by the commission shall be paid by the Employee Insurance Program and the Retirement Division.
(e) No later than January 1, 2013, the committee must prepare and deliver a report to the President Pro Tempore of the Senate and the Speaker of the House of Representatives containing the committee's recommendations concerning agency governance structure, statutory changes relative to the transition, and any other actions that must be taken to transition public employee insurance and retirement operations to the Public Employee Benefit Agency.
(K) Notwithstanding another provision of law, if the State Budget and Control Board maintains primary responsibility related to a program the board must receive and expend revenues generated by the programs to support the board's responsibilities related to the programs. The funds may be retained and expended in subsequent fiscal years until the date upon which the board is abolished. The funds then must be transferred to the appropriate agency for support that agency's responsibilities related to the programs." /
Amend the bill further, as and if amended, page [3066-5], by striking lines 19 - 43, and page [3066-6], by striking lines 1 - 10 and inserting:
/ (2) Division of State Information Technology including the Data Center, Information Technology Services, and South Carolina Enterprise Information System, but not including, support of the Joint Strategic Technology Committee;
(a) The Division of State Information Technology must submit the Statewide Strategic Information Technology Plan to the Joint Strategic Technology Commission by September first of each year;
(b) The Joint Strategic Technology Commission shall make recommendations to the division including, but not limited to, priorities for state government enterprise information technology projects, resource requirements, and efficiency. In addition, the division shall cooperate with and provide assistance to the Joint Strategic Technology Commission in the furtherance of the commission's mission;
(3) The portion of the Office of Research and Statistics required to support the Governor's executive budget writing duties;
(4) Office of State Budget, except for the employees required to provide fiscal impact statements on proposed legislation and to support the General Assembly's budget writing duties who are transferred to the Legislative Fiscal Office;
(5) the State Engineer's Office;
(6) the Insurance Reserve Fund;
(7) Office of Human Resources, except that any additions or amendments to the State Human Resource Regulations must be submitted for approval to the State Financial Affairs Authority;
(8) Office of Executive Policy and Programs, except for the State Ombudsman, Children's Services programs, and the Guardian ad Litem program that are contained within this office;
(9) Office of Economic Opportunity;
(10) Developmental Disabilities Council;
(11) Continuum of Care as established by Section 20-7-5610;
(12) Children's Foster Care as established by Section 20-7-2379;
(13) Veterans Affairs as established by Section 25-11-10;
(14) Commission on Women as established by Section 1-15-10;
(15) Victims Assistance as established by Article 13, Chapter 3, Title 16; and
(16) Small and Minority Business as established by Section 11-35-5270. /
Amend the bill further, as and if amended, by striking SECTION 5 in its entirety, and inserting:
/ SECTION 5. Chapter 3, Title 2 of the 1976 Code is amended by adding:
"Section 2-3-240. (A) Effective July 1, 2011, the following personnel of the State Budget and Control Board are transferred to a Legislative Fiscal Office organized as recommended by the Clerk of the Senate and the Clerk of the House of Representatives and approved by the President Pro Tempore of the Senate and the Speaker of the House of Representatives:
(1) the employees of the Office of State Budget required to provide fiscal impact statements on proposed legislation and to support the General Assembly's budget writing duties; and
(2) the employees of the Office of Research and Statistics required to provide revenue impact statements on proposed legislation and to support the General Assembly's budget writing duties.
(B) The Clerk of the Senate and the Clerk of the House of Representatives must direct and assist the transfer of these personnel. The Legislative Fiscal Office must support the work of the General Assembly through the provision of data without regard to political or other considerations beyond technical accuracy and professionalism required to perform the duties of the office.
(C) The executive director of the Budget and Control Board, in consultation with the Senate Finance Committee and the House Ways and Means Committee, shall determine the employees, authorized appropriations, and assets and liabilities to be transferred from items (1) and (2) of subsection (A).
Section 2-3-250. There is created within the Legislative Fiscal Office a Division of Precinct Demographics to be staffed by personnel as determined appropriate as recommended by the Clerk of the Senate and the Clerk of the House of Representatives and approved by the President Pro Tempore of the Senate and the Speaker of the House of Representatives. The division of Precinct Demographics shall:
(1) review existing precinct boundaries and maps for accuracy and develop and rewrite descriptions of precincts for submission to the legislative process;
(2) consult with members of the General Assembly or their designees on matters related to precinct construction or discrepancies that may exist or occur in precinct boundary development in the counties they represent;
(3) develop a system for originating and maintaining precinct maps and related data for the State;
(4) represent the Legislative Fiscal Office at public meetings, meetings with members of the General Assembly, and meetings with other state, county, or local governmental entities on matters related to precincts;
(5) assist the appropriate county officials in the drawing of maps and writing of descriptions or precincts preliminary to these maps and descriptions being filed in this office for submission to the United States Department of Justice;
(6) coordinate with the Census Bureau in the use of precinct boundaries in constructing census boundaries and the identification of effective uses of precinct and census information for planning purposes;
(7) serve as a focal point for verifying official precinct information for the counties of South Carolina." /
Amend the bill further, as and if amended, page [3066-10], after line 38, by adding PART V containing an appropriately numbered new SECTION to read:
SECTION ___. Title 1 of the 1976 Code is amended by adding:
Section 1-12-10. The State Financial Affairs Authority shall be comprised of the Governor, ex officio, who shall be chairman, the State Treasurer, ex officio, the Comptroller General, ex officio, one Senator selected by a majority of the Senate who shall serve ex officio, and one member of the House of Representatives selected by a majority of the House of Representatives who shall serve ex officio.
Section 1-12-20. The functions of the authority must be performed, exercised, and discharged under the supervision and direction of the authority through such divisions as the authority may from time to time establish. The authority may organize its staff as it deems most appropriate to carry out the various duties, responsibilities, and authorities assigned to it and to its various divisions, provided that each division shall consist of a director and clerical, stenographic, and technical employees necessary, to be employed by the respective directors with the approval of the authority. The directors of the divisions must be employed by the State Financial Affairs Authority for that time and compensation as may be fixed by the authority in its judgment.
Section 1-12-30. The authority may cooperate with and assist the authorities of the counties, municipalities, school districts, and other subdivisions of the State in the handling, in whatever manner may be deemed by it desirable in each case, of the financial obligations of such counties, municipalities, school districts, and other subdivisions. The authority may, upon request of any such authorities, negotiate with the holders of such obligations and the authorities of the obligor to the end that such extensions and adjustments as may be desirable may be effected and may negotiate with any lending agency and perform any other act or service pursuant to the purpose hereof to the end that the credit of the subdivisions of the State and the rights of the holders of their obligations may be mutually protected.
Section 1-12-40. (A) To offset the costs incurred by the State in the review and processing of proposals by the governing bodies of counties and municipalities for the issuance or refunding of industrial, hospital, or pollution control revenue bonds or notes, the State Financial Affairs Authority may charge a single fee to cover initial processing ,including any amendments in accord with the following schedule:
Issue or Refunding Amount Fee
$1,000,000 or less $2,000
$1,000,001 through $25,000,000 3,000
$25,000,001 through $50,000,000 4,000
Over $50,000,000 5,000
(B) The revenue received from these fees must be deposited in the General Fund.
Section 1-12-50. (A) The State Financial Affairs Authority 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 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 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 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.
(C) The procurement of tort liability insurance in the manner provided is the exclusive means for the procurement of this insurance.
(D) The authority 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 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 authority 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 authority 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 authority 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 authority 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.
Section 1-12-60. (A) Agencies shall insure state-owned vehicles through the authority or shall absorb the cost of accident repairs within the agency budget.
(B) State employees who, while driving state-owned vehicles on official business, are involved in accidents resulting in damages to the vehicles may not be held liable to the State for the cost of repairs, except in the following cases:
(1) if the operator was convicted of driving under the influence of alcohol or illegal drugs at the time of the accident and the Accident Review Board determines that the operator's impaired condition substantially was the cause of the accident, the operator may be assessed up to the full cost of repairs; and
(2) in all other cases, the employee operator may be assessed for an amount not to exceed two hundred dollars for each occurrence if he is found to be at fault in the accident after a review of records conducted by a duly appointed Accident Review Board.
(C) Employees subjected to these assessments may appeal the assessment to the following bodies, in the following order:
(1) Agency Accident Review Board;
(2) Agency Executive Director or governing board or commission;
(3) State Motor Vehicle Management Council; and
(4) State Budget and Control Board.
Section 1-12-70. The State Financial Affairs Authority may employ special agents to examine insurance risks carried by the authority and perform any other duties which may be required of them. The cost of necessary supplies, equipment, and travel expenses of the special agents shall be paid from the revenues of the Insurance Reserve Fund.
Section 1-12-80. To underwrite automobile liability insurance provided pursuant to this chapter, the authority is authorized to either self-insure, purchase reinsurance, or use a combination of self-insurance and reinsurance. Should the authority elect to purchase automobile liability reinsurance, the reinsurance shall be procured through a bid process in accordance with the South Carolina Consolidated Procurement Code with a contract term not to exceed three years.
Section 1-12-90. The authority is authorized to finance the construction of correctional facilities by issuance of capital improvement bonds or other methods of financing approved by the authority.
Section 1-12-100. A. By the provisions of Title 4, Chapter 29, of Title 4 (the Industrial Revenue Bond Act), Chapter 3, of Title 48 (the Pollution Control Facilities Revenue Bond Act), Article 11 of Chapter 7 of Title 44 (the Hospital Revenue Bond Act), all of the 1976 Code, and certain other provisions of South Carolina law, various political subdivisions and agencies of the State of South Carolina are authorized or enabled to issue their debt for the benefit of certain private entities in order to encourage and promote certain undertakings and activities which promote the public health, welfare, and economy of the State. There is pending in the Congress of the United States legislation which, if enacted in its present form, would impose a maximum dollar limit on the amount of the debt, referred to as 'private activity bonds', which could be issued by a state in a given year. The legislation purports to be effective, retroactively, to all the indebtedness issued subsequent to December 31, 1983. The legislation also provides that the inclusion of the indebtedness issued in any state within the limitation imposed must be determined in a manner as provided by the legislature of the state. The pendency of the legislation absent a mechanism for determining the inclusion of debt within the proposed limit has created uncertainty and difficulty in the issuance of debt to which the limitation, if imposed, might apply. In order to remove this uncertainty the General Assembly proposes to delegate to the State Financial Affairs Authority and the Joint Bond Review Committee, if a maximum limit upon the debt is imposed, the authority to designate which indebtedness is included within any limits on 'private activity bonds', which may be imposed by federal law or regulations and to promulgate rules and regulations as the State Financial Affairs Authority with the approval of the committee may consider necessary for the purposes.
(B) The authority and the Joint Bond Review Committee shall develop a plan pursuant to which the authority shall determine which issue of indebtedness, or portions of indebtedness, issued by the State of South Carolina or any agency or political subdivision of the State must be included within any limitation on 'private activity bonds' or any similar indebtedness, proposed or imposed by any federal legislation or regulations. The determination may be made without regard to the date of any agreements between the issuers and beneficiaries of any indebtedness, and no priority need be given any issue, issuer, or beneficiary based on any date.
(C) The authority, after review by the Joint Bond Review Committee, shall promulgate regulations as it considers necessary or useful in connection with the authority granted in this section.
Section 1-12-120. Any state governmental body which provides health care or social services and which has a legal right to be reimbursed from any private or governmental source for these services may contract with any vendor on a contingent basis to recover or to assist in the recovery of funds for reimbursement of the provided services. The governmental body may pay the vendor from funds actually collected from governmental or private sources as a result of the services provided by the vendor. The vendor must be selected pursuant to Section 11-35-1530, 11-35-1560, or 11-35-1570 and the contract must be approved by the State Budget and Control Board.
Section 1-12-130. No aircraft may be purchased, leased, or lease-purchased for more than a thirty-day period by any state agency without the prior authorization of the State Financial Affairs Authority.
Section 1-12-140. The State must defend the members of the State Financial Affairs Authority against a claim or suit that arises out of or by virtue of their performance of official duties on behalf of the authority 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. The State must defend officers and management employees of the authority and legislative employees performing duties for board members against a claim or suit that arises out of or by virtue of performance of official duties unless the officer, management employee, or legislative employee was acting in bad faith and must indemnify these officers, management employees, and legislative employees for a loss or judgment incurred by them as a result of such claim or suit, without regard to whether the claim or suit is brought against them in their individual or official capacities, or both. This commitment to defend and indemnify extends to members, officers, management employees, and legislative employees after they have left their employment with the authority or General Assembly, as applicable, if the claim or suit arises out of or by virtue of their performance of official duties on behalf of the authority.
Section 1-12-150. The State Financial Affairs Authority is authorized to pay judgments against individual governmental employees and officials, in excess of one million dollars, subject to a maximum of four million dollars in excess of one million dollars for one employee and a maximum of twenty million dollars in excess of five million dollars in one fiscal year. These payments are limited to judgments rendered under 42 U.S.C. Section 1983 against governmental employees or officials who are covered by a tort liability policy issued by the Insurance Reserve Fund. These payments are also limited to judgments against governmental employees and officials for acts committed within the scope of employment. If a judgment is paid, the payment must be recovered by assessments against all governmental entities purchasing tort liability insurance from the Insurance Reserve Fund.
Section 1-12-160. (A) No funds appropriated by the General Assembly may be used by a constitutional officer to purchase space including, but not limited to, notices or advertisements, in a print medium or time from a radio or television medium without unanimous prior written approval of the State Financial Affairs Authority.
(B) No funds appropriated by the General Assembly may be used by a constitutional officer to print on, or distribute with, official documents extraneous promotional material or to purchase plaques, awards, citations, or other recognitions without unanimous prior written approval of the State Financial Affairs Authority.
(C) If nonpublic funds are used for the purposes enumerated in subsection (A), the constitutional officer expending the funds must submit the source of the funds showing all contributors to the State Financial Affairs Authority before the funds are expended.
(D) The provisions of this section do not apply to the Governor or to the General Assembly.
Section 1-12-170. (A) The State Financial Affairs Authority is directed to survey the progress of the collection of revenue and the expenditure of funds by all agencies, departments, and institutions. If the authority determines that a year-end aggregate deficit may occur by virtue of a projected shortfall in anticipated revenues, it shall utilize those funds as may be available and required to be used to avoid a year-end deficit and after that take action as necessary to restrict the rate of expenditure of all agencies, departments, and institutions consistent with the provisions of this section. 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 authority. A reduction of rate of expenditure by the financial affairs authority, pursuant to this section, must be applied as uniformly as may 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. This reduction is subject to any bill or resolution enacted by the General Assembly.
(B) As far as practicable, all agencies, departments, and institutions of the State are directed to budget and allocate appropriations as a quarterly allocation to provide for operation on uniform standards throughout the fiscal year and in order to avoid an operating deficit for the fiscal year. It is recognized that academic year calendars of state institutions affect the uniformity of the receipt and distribution of funds during the year. The Comptroller General shall make reports to the authority as they consider advisable on an agency, department, or institution that is expending authorized appropriations at a rate which predicts or projects a general fund deficit for the agency, department, or institution. The authority is directed to require the agency, department, or institution to file a quarterly allocations plan and is further authorized to restrict the rate of expenditures of the agency, department, or institution if the authority determines that a deficit may occur. It is the responsibility of the agency, department, or institution to develop a plan, in consultation with the authority, which eliminates or reduces a deficit. If the authority makes a finding that the cause of, or likelihood of, a deficit is unavoidable due to factors which are outside the control of the agency, department, or institution, then the authority may determine that the recognition of the agency, department, or institution is appropriate and shall notify the General Assembly of this action or the presiding officer of the House and Senate if the General Assembly is not in session. The authority only may recognize a deficit by a vote of at least four members.
(C) Upon receipt of the notification from the authority, the General Assembly may authorize supplemental appropriations from any surplus revenues that existed at the close of the previous fiscal year. If the General Assembly fails to take action, then the finding of the authority shall stand, and the actual deficit at the close of the fiscal year must be reduced as necessary from surplus revenues or surplus funds available at the close of the fiscal year in which the deficit occurs and from funds available in the Capital Reserve Fund and General Reserve Fund, as required by the Constitution of this State. If the authority finds that the cause of or likelihood of a deficit is the result of the agency, department, or institution management, then the state officials responsible for management of the agency, department, or institution involved must be held liable for it and the financial affairs authority shall notify the Agency Head Salary Commission of this finding. In the case of a finding that a projected deficit is the result of the management of the agency, department, or institution, the authority shall take steps immediately to curtail agency, department, or institution expenditures to bring expenditures in line with authorized appropriations and avoid a year-end operating deficit.
Section 1-12-180. If the State Financial Affairs Authority or the General Assembly mandates an across-the-board reduction, state agencies are encouraged to reduce general operating expenses including, but not limited to, travel, training, procurement, hiring of temporary and contractual employees before reductions are made to programs, special line items, or local provider services critical to an agency's mission.
Section 1-12-190. (A) In addition to the powers granted the State Financial Affairs Authority pursuant to this chapter or another provision of law, the authority may 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.
(B) The authority may promulgate regulations necessary to carry out its duties.
(C) The respective divisions of the authority and 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.
Section 1-12-300. The state ceiling on the issuance of private activity bonds as defined in Section 146 of the Internal Revenue Code of 1986 (the Code) established in the act must be certified annually by the State Financial Affairs Authority based upon the provisions of the act. The financial affairs authority shall make this certification as soon as practicable after the estimates of the population of the State of South Carolina to be used in the calculation are published by the United States Bureau of the Census but in no event later than February first of each calendar year.
Section 1-12-310. (A) The private activity bond limit for all issuing authorities must be allocated by the financial affairs authority in response to authorized requests as described this article by the issuing authorities.
(B) The aggregate private activity bond limit amount for all South Carolina issuing authorities is allocated initially to the State for further allocation within the limits prescribed herein.
(C) Except as is provided in this article, all allocations must be made by the financial affairs authority on a first-come, first-served basis, to be determined by the date and time sequence in which complete authorized requests are received by the financial affairs authority.
Section 1-12-320. (A) The private activity bond limit for all state government issuing authorities now or hereafter authorized to issue private activity bonds as defined in the act, to be known as the 'state government pool', is forty percent of the state ceiling less any amount shifted to the local pool as described in subsection (B) of this section or plus any amount shifted from that pool.
(B) The private activity bond limit for all issuing authorities other than state government agencies, to be known as the 'local pool', is sixty percent of the state ceiling plus any amount shifted from the state government pool or less any amount shifted to that pool.
(C) The financial affairs authority, with review and comment by the Joint Bond Review Committee, may shift unallocated amounts from one pool to the other at any time.
Section 1-12-330. (A) For private activity bonds proposed for issue by other than state government issuing authorities, an authorized request is a request included in a petition to the financial affairs authority that a specific amount of the state ceiling be allocated to the bonds for which the petition is filed. The petition must be accompanied by a copy of the Inducement Contract, Inducement Resolution, or other comparable preliminary approval entered into or adopted by the issuing authority, if any, relating to the bonds. The financial affairs authority shall forward promptly to the committee a copy of each petition received.
(B) For private activity bonds proposed for issue by any state government issuing authority, an authorized request is a request included in a petition to the financial affairs authority that a specific amount of the state ceiling be allocated to the bonds for which the petition is filed. The petition must be accompanied by a bond resolution or comparable action by the issuing authority authorizing the issuance of the bonds. The authority shall forward promptly to the committee a copy of each petition received.
(C) Each authorized request must demonstrate that the allocation amount requested constitutes all of the private activity bond financing contemplated at the time for the project and any other facilities located at or used as a part of an integrated operation with the project.
Section 1-12-340. (A) The financial affairs authority, with review and comment by the committee, may disapprove, reduce, or defer any authorized request. If it becomes necessary to exercise this power, the financial affairs authority and the committee shall take into account the public interest in promoting economic growth and job creation.
(B) Authorized requests for state ceiling allocations of more than ten million dollars for a single project are deferred until after July first unless the financial affairs authority, after review and comment by the committee, determines in any particular instance that the positive impact upon the State of approving an allocation of an amount greater than ten million dollars is of such significance that approval of the allocation is warranted.
Section 1-12-350. (A) An allocation of the state ceiling approved by the State Financial Affairs Authority is made formal initially by a certificate which allocates tentatively a specific amount of the state ceiling to the bonds for which the allocation is requested. This tentative allocation certificate must specify the state ceiling amount allocated, the issuing authority and the project involved, and the time period during which the tentative allocation is valid. This certificate must remind the issuing authority that the tentative allocation is made final after the issuing authority chairman or other duly authorized official or agent of the issuing authority, before the issue is made, certifies the issue amount and the projected date of issue, as is required by subsection (B) of this section. It also may include other information considered relevant by the financial affairs authority.
(B) The chairman or other authorized official or agent of an issuing authority issuing any private activity bond for which a portion of the state ceiling has been allocated tentatively shall execute and deliver to the financial affairs authority an issue amount certificate setting forth the exact amount of bonds to be issued and the projected bond issue date which date must not be more than ten business days after the date of the issue amount certificate and it must be before the state ceiling allocation involved expires. The issue amount certificate may be an executed copy of the appropriate completed Internal Revenue Service form to be submitted to the Internal Revenue Service on the issue or it may be in the form of a letter which certifies the exact amount of bonds to be issued and the projected date of the issue.
(C) In response to the issuing authority's issue amount certificate required by subsection (B) of this section, the financial affairs authority is authorized to issue and, as may be necessary, to revise a certificate making final the ceiling allocation approved previously by the financial affairs authority on a tentative basis, if the financial affairs authority determines that:
(1) the issuing authority's issue amount certificate specifies an amount not in excess of the approved tentative ceiling allocation amount;
(2) the issue amount certificate was received prior to the issue date projected and that the certificate is dated not more than ten days prior to the issue date projected;
(3) the issue date projected is within the time period approved previously for the tentative ceiling allocation; and
(4) the bonds when issued and combined with the total amount of bonds requiring a ceiling allocation included in issue amount certificates submitted previously to the financial affairs authority by issuing authorities do not exceed the state ceiling for the calendar year. Except under extraordinary circumstances, the financial affairs authority shall issue this certificate within two business days following the date the issue amount certificate is received.
(D) In accordance with Section 149(e)(2)(F) of the Code, the chairman financial affairs authority is designated as the state official responsible for certifying, if applicable, that certain bonds meet the requirements of Section 146 of the Code relating to the volume cap on private activity bonds.
(E) Any tentative or final state ceiling allocation granted by the financial affairs authority before the effective date of this act remains valid as an allocation of a portion of the volume cap for South Carolina provided under Section 146 of the Code. The allocations expire in accordance with the regulations under which they were granted or extended and their validity may be extended or reinstated in accordance with the provisions of this article.
Section 1-12-360. (A) Any state ceiling allocation approved by the financial affairs authority is valid only for the calendar year in which it is approved, unless eligible and approved for carry-forward election or unless specified differently in the financial affairs authority certificates required by this article.
(B) Unless eligible and approved for carry- forward election or unless specified differently in financial affairs authority certificates required by this article, each state ceiling allocation expires automatically if the bonds for which the allocation is made are not issued within ninety consecutive calendar days from the date the allocation is approved by the financial affairs authority.
(C) In response to a written request by the chairman or other duly authorized official or agent of an issuing authority, the financial affairs authority, acting during the period an approved allocation is valid, may extend the period in which an allocation is valid in a single calendar year by thirty-one consecutive calendar days to a total of not more than one hundred twenty-one consecutive calendar days.
(D) In response to a written request by the chairman or other authorized official or agent of an issuing authority, the financial affairs authority may reinstate for a period of not more than thirty-one consecutive calendar days in any one calendar year part or all of an allocation approved but not extended previously in accordance with subsection (C) of this section in that same calendar year which has expired. The reinstatement request must certify that the authorized request submitted previously is still true and correct or a new authorized request must be submitted.
(E) A tentative ceiling allocation is canceled automatically if the chairman or other authorized official or agent of the issuing authority involved fails to deliver the issue amount certificate required by this article to the financial affairs authority before the bonds for which the allocation is made are issued.
(F) The chairman or other authorized official or agent of an issuing authority shall advise the financial affairs authority in writing as soon as is practicable after a decision is made not to issue bonds for which a portion of the state ceiling has been allocated. All notices of relinquishment of ceiling allocations must be entered promptly in the financial affairs authority's records.
(G) Ceiling allocations which are eligible and approved for carry-forward election are not subject to the validity limits of this section. The financial affairs authority shall join with the issuing authorities involved in carry-forward election statements to meet the requirements of the Internal Revenue Service.
Section 1-12-370. The financial affairs authority must adopt the policies and procedures it considers necessary for the equitable and effective administration of the provisions contained in this article." /
Amend the committee amendment further, as and if amended, page [3066-11], by striking lines 6 - 9 and inserting:
/ (B) To the extent that any provision of law divides or devolves any responsibilities of any division, office, or program of the Budget and Control Board between the board and one or more state agencies, including the State Financial Affairs Authority, the receiving agency must, within forty-five days of the /
Amend the committee amendment further, as and if amended, page [3066-12], by striking lines 23 - 26 and inserting:
/ (6) Any proposed real property transaction under the jurisdiction of the Department of Administration, either directly or indirectly, that exceeds one million dollars must be presented to the State Financial Affairs Authority for approval. /
Amend the committee amendment further, as and if amended, page [3066-14], by striking lines 11 - 14 and inserting:
/ (5) Any proposed surplus property transaction under the jurisdiction of the Department of Administration, either directly or indirectly, that exceeds one million dollars must be presented to the State Financial Affairs Authority for approval." /
Amend the committee amendment further, as and if amended, page [3066-14], by striking lines 21-23 and inserting:
/ except that a transaction of real property exceeding one million dollars in value shall instead be approved by the State Financial Affairs Authority. Upon approval of the transaction by the Budget /
Amend the committee amendment further, as and if amended, page [3066-15] by striking lines 29 - 37 and inserting:
/ 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. A grant exceeding one million dollars in value shall instead require the approval of State Financial Affairs Authority. /
Amend the committee amendment further, as and if amended, page [3066-16], by striking lines 14 -16 and inserting:
/ condemnation or otherwise. An acquisition exceeding one million dollars in value shall instead require the approval of the State Financial Affairs Authority. /
Amend the committee amendment further, as and if amended, page [3066-25], by striking lines 35 - 37 and inserting:
/ (h) Any proposed property transaction under the provisions of this chapter that exceeds one million dollars must be presented to the State Financial Affairs Authority for approval. /
Amend the committee amendment further, as and if amended, page [3066-67], by striking lines 1 - 4 and inserting:
/ SECTION 30. Section 1-11-115 of the 1976 Code is amended to read:
"Section 1-11-115. All proceeds from the sale of real property titled to or subject to the care and control of the State Budget and Control Board Department of Administration must be deposited to the credit of the Sinking Fund and used by the board for the acquisition and maintenance of facilities owned by it for the use and occupancy of state departments and agencies."
SECTION 31. Section 1-11-170 of the 1976 Code is amended to read:
"Section 1-11-170. The State Budget and Control Board Department of Administration may maintain revolving funds adequate to finance inventories and accounts receivable for goods and services rendered by its Division of General Services on a reimbursement basis."
SECTION 32. Section 1-11-420 of the 1976 Code is amended to read:
"Section 1-11-420. All institutions, departments, and agencies shall file an annual report with the board State Financial Affairs Authority, the Legislative Fiscal Office, and the Governor's Budget Office at the time the board financial affairs authority specifies. The board financial affairs authority shall prescribe specifications and deadlines as are practicable for the reports, the objective being to limit the content and style of printing, and thus keep the cost of their publication within reasonable limits. The board financial affairs authority shall have the reports printed and made available on or before January first to the State Library, the Legislative Fiscal Office, and the Governor's Budget Office, and each member of the General Assembly at his request and to the State Library. The board financial affairs authority shall report annually to the General Assembly on the expenditure of appropriations for the reports showing, by departments, the number of copies and cost of publication. State agency annual reports required under the provisions of this section and reports to the General Assembly may not be printed in a multicolor format unless that format can be purchased at the cost of black and white printing, nor may these reports contain pictures of board or commission members, agency officers, or employees."
SECTION 33. (A) All functions, powers, duties, responsibilities, and authority vested in the Budget and Control Board prior to the effective date of this act that is not otherwise specifically accounted for in this act is devolved upon the State Financial Affairs Authority along with funding, staff, facilities, and other items necessary to carry out the devolved functions, powers, duties, responsibilities or authority. The code commissioner is directed to make appropriate changes in the South Carolina Code to reflect this devolution.
(B)There is devolved upon the State Financial Affairs Authority all functions, powers, duties, responsibilities, and authority vested in the Budget and Control Board prior to the effective date of this act 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. The code commissioner is directed to make appropriate changes in the South Carolina Code to reflect this devolution.
SECTION 34. A. The following section of the South Carolina Code are repealed: 1-11-130, 1-11-135, 1-11-140, 1-11-141, 1-11-145, 1-11-147, 1-11-175, 1-11-360, 1-11-370, 1-11-395, 1-11-400, 1-11-405, 1-11-440, 1-11-460, 1-11-470, 1-11-495, and 1-11-497.
B. Article 3, Chapter 11 of Title 1 is repealed.
SECTION 35. Unless otherwise provided, this act takes effect July 1, 2011. The General Assembly shall undertake a joint oversight review investigation of the Department of Administration during the department's fifth year of operation. /
Renumber sections to conform
Amend title to conform.