View Amendment Current Amendment: 2a to Bill 4967 Reps. OTT, COBB-HUNTER propose the following Amendment No. 2a to H. 4967 (COUNCIL\GGS\22415HTC12):

Reference is to Printer's Date 5/16/12-S.

Amend the bill, as and if amended, by adding an appropriately numbered new Part to read:

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Part __

Subpart 1

South Carolina Public Employee Benefit Authority

SECTION      __.      A.      Title 9 of the 1976 Code is amended by adding:

     "CHAPTER 4

     South Carolina Public Employee Benefit Authority

Article 1

General Provisions

     Section 9-4-10.      (A)      Effective July 1, 2012, there is created the South Carolina Public Employee Benefit Authority. The authority is comprised of the Insurance Reserve Fund, the employee insurance division and the retirement systems division. The governing body of the authority is a board of directors consisting of nine members. The functions of the authority must be performed, exercised, and discharged under the supervision and direction of the board. The board may organize its staff as it considers appropriate to carry out the various duties, responsibilities, and authorities assigned to it and to its various divisions. The board may delegate to one or more officers, agents, or employees the powers and duties it determines are necessary for the effective, efficient operation of the authority, including the hiring of an executive director of the authority. The executive director must be employed by the authority and compensation of the executive director may be fixed by the board in its judgment and as appropriated by the General Assembly.
     (B)      The board is composed of:
           (1)      three members appointed by the Governor;
           (2)      two members, appointed by the President Pro Tempore of the Senate, one of whom is a representative member who is either an active or retired member of the South Carolina Police Officers Retirement System or a retired member of the South Carolina Retirement System, and one member from the State at large;
           (3)      one member appointed by the Chairman of the Senate Finance Committee;
           (4)      two members appointed by the Speaker of the House of Representatives, one of whom is a representative member who must be a state employee who is an active contributing member of the South Carolina Retirement System or an employee of a public school district in South Carolina who is an active member of the South Carolina Retirement System, and one member from the State at large;
           (5)      one member appointed by the Chairman of the House Ways and Means Committee.
     (C)(1)      A nonrepresentative member may not be appointed to the board unless the person possesses at least one of the following qualifications:
           (a)      at least twelve years of professional experience in the financial management of pensions or insurance plans;
           (b)      at least twelve years academic experience and holds a bachelor's or higher degree from a college or university as classified by the Carnegie Foundation;
           (c)      at least twelve years of professional experience as a certified public accountant with financial management, pension, or insurance audit expertise;
           (d)      at least twelve years as a Certified Financial Planner credentialed by the Certified Financial Planner Board of Standards; or
           (e)      at least twelve years membership in the South Carolina Bar and extensive experience in one or more of the following areas of law:
           (i)            taxation;
           (ii)      insurance;
           (iii)      health care;
           (iv)      securities;
           (v)      corporate;
           (vi)      finance; or
           (vii)      the Employment Retirement Income Security Act (ERISA).
           (2)      In addition to the requirements of subsections (B)(2) and (4) of this section, a representative member may not be appointed to the board unless the person:
           (a)      possesses one of the qualifications set forth in item (1); or
           (b)      has at least twelve years of public employment experience and holds a bachelor's degree from a college or university as classified by the Carnegie Foundation.
     (D)      Representative members must be appointed from three nominations jointly made to the appointing official by membership organizations representative of the interests to be represented. The appointing official may request three additional nominations if the official elects not to appoint any of those nominated.
     (E)      Members of the board shall serve for terms of two years and until their successors are appointed and qualify. Vacancies must be filled in the manner of original appointment for the unexpired portion of the term. Terms commence on July first of even numbered years. Upon a member's appointment, the appointing official shall certify to the Secretary of State that the appointee meets or exceeds the qualifications set forth in subsections (B) and (C). No person appointed may qualify unless he first certifies that he meets or exceeds the qualifications applicable for their appointment. A member may be removed before the expiration of his term by the applicable appointing official only for the reasons specified in Section 1-3-240(C).
     (F)      The members shall select a nonrepresentative member to serve as chairman and shall select those other officers they determine necessary. Subject to the qualifications for chairman provided in this section, members may set their own policy related to the rotation of the selection of a chairman of the board.
     (G)(1)      Each member must receive an annual salary of twelve thousand dollars. This compensation must be paid from approved accounts of general funds and retirement system funds based on the proportionate amount of time the board devotes to its various functions. Members may receive the mileage and subsistence authorized by law for members of state boards, commissions, and committees paid from approved accounts funded by general funds and retirement system funds in the proportion that compensation is paid.
           (2)      Notwithstanding any other provision of law, membership on the board does not make a member eligible to participate in a retirement system administered pursuant to this title and does not make a member eligible to participate in the employee insurance program administered pursuant to Article 5, Chapter 11, Title 1. Any compensation paid on account of the member's service on the board is not considered earnable compensation for purposes of any state retirement system.
     (H)      Minimally, the board shall meet monthly. If the chairman considers it more effective, the board may meet by teleconferencing or video conferencing. However, if the agenda of the meeting consists of items that are not exempt from disclosure or the meeting may not be closed to the public pursuant to Chapter 4, Title 30, the provisions of Chapter 4, Title 30 apply, and the meeting must be open to the public.
     (I)      Effective July 1, 2012, the following offices, divisions, or components of the State Budget and Control Board are transferred to, and incorporated into, an administrative agency of state government to be known as the South Carolina Public Employee Benefit Authority:
           (1)      Employee Insurance Program;
           (2)      Retirement Division; and
           (3)      Insurance Reserve Fund.

     Section 9-4-15.      The South Carolina Public Employee Benefit Authority shall operate the Insurance Reserve Fund and may establish it as a division or other appropriate subdivision of the authority.

     Section 9-4-20.      (A)      The South Carolina Public Employee Benefit Authority shall operate an employee insurance program division to administer insurance programs pursuant to Article 5, Chapter 11, Title 1.
     (B)      The board of directors of the authority shall appoint a State Health Plan Advisory Committee (committee) to review and make recommendations to the board on proposed changes to the State Health Plan. Representation on the committee must be equal among health care professionals, the insurance industry, and consumers. The board, by resolution, shall establish the committee, provide for its membership, and provide for its operations. Members shall serve without compensation, but may receive the mileage, subsistence, and per diem allowed by law for members of state boards, committees, and commissions to be paid from approved accounts of the authority.
     (C)      Notwithstanding any other provision of law or policy to the contrary, the board shall allow the governing body of a participating political subdivision to allow a judicial appointee to participate in the program.      

     Section 9-4-30.      (A)(1)      The South Carolina Public Employee Benefit Authority shall operate a retirement division to administer the various retirement systems and retirement programs pursuant to Title 9 and, effective after December 31, 2013, to administer the deferred compensation program pursuant to Chapter 23, Title 8.
           (2)      Expenses incurred by the retirement division in administering, after December 31, 2013, the deferred compensation plans must be reimbursed to the retirement division from funds generated by the deferred compensation plans available to pay for administrative expenses.
     (B)      The South Carolina Public Employee Benefits Authority shall provide copies of annual actuarial valuations of all retirement systems requiring such annual valuations to the General Assembly by the second Tuesday in January of every year.

     Section 9-4-40.      Each year in the general appropriations act, the General Assembly shall appropriate sufficient funds to the Office of the State Inspector General to employ a private audit firm to perform a fiduciary audit on the South Carolina Public Employee Benefit Authority. The audit firm must be selected by the State Inspector General. The report from the previous fiscal year must be completed by January fifteenth. Upon completion, the report must be submitted to the Governor, the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the Chairman of the Senate Finance Committee, and the Chairman of the House Ways and Means Committee.

     Section 9-4-50.      (A)      The South Carolina Public Employee Benefit Authority shall maintain a transaction register that includes a complete record of all funds expended, from whatever source for whatever purpose. The register must be prominently posted on the authority's Internet website and made available for public viewing and downloading.
           (1)(a)      The register must include for each expenditure:
           (i)            the transaction amount;
           (ii)      the name of the payee;
           (iii)      the identification number of the transaction; and
           (iv)      a description of the expenditure, including the source of funds, a category title, and an object title for the expenditure.
           (b)      The register must include all reimbursements for expenses, but must not include an entry for:
           (i)            salary, wages, or other compensation paid to individual employees; and
           (ii)      retirement benefits, deferred compensation plan distributions, insurance reimbursements, or other payments paid to individual employees, members, or participants, as applicable, pursuant to programs administered by the board.
           (c)      The register must not include a social security number.
           (d)      The register must be accompanied by a complete explanation of any codes or acronyms used to identify a payee or an expenditure.
           (e)      The register may exclude any information that can be used to identify an individual employee or student.
           (f)      This section does not require the posting of any information that is not required to be disclosed under Chapter 4, Title 30.
           (2)      The register must be searchable and updated at least once a month. Each monthly register must be maintained on the Internet website for at least three years.
     (B)      Any information that is expressly prohibited from public disclosure by federal or state law or regulation must be redacted from any posting required by this section.
     (C)      If the authority has a question or issue relating to technical aspects of complying with the requirements of this section or the disclosure of public information under this section, it shall consult with the Office of the Comptroller General, which may provide guidance to the authority."

B.      This SECTION takes effect July 1, 2012.

Subpart 2

Conforming Amendments for the South Carolina Public Employee Benefit Authority

SECTION      __.      Section 1-11-140 of the 1976 Code is amended to read:

     "Section 1-11-140.      (A)      The State Budget and Control Board Public Employee Benefits Authority, through the Office of Insurance Services 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.
     (B)(1)      Beginning on January 1, 2013, and biennially thereafter, the Insurance Reserve Fund must request applications, in a manner and form prescribed by the fund, from private attorneys and law firms to determine from the applicants those that will be authorized to defend litigation covered by fund policies. The fund shall authorize attorneys and law firms to defend litigation covered by fund policies based upon such factors as it determines relevant, including those necessary to maintain the appropriate level of qualification, experience, and expertise given geographical needs, case load, efficiencies, and other business requirements.
           (2)      Before submitting a request for applicants, the fund must submit the list of factors for authorizing attorneys and law firms to defend litigation covered by fund policies to the Chairman of the Senate Judiciary Committee and the Chairman of the House Judiciary Committee and receive comments and recommendations offered by the committees.
     (B)(C)      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)(D)      The procurement of tort liability insurance in the manner provided is the exclusive means for the procurement of this insurance.
     (D)(E)      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)(F)      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)(G)      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)(H)      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)(I)      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."

SECTION      __.      Section 1-11-703(9) and (10) of the 1976 Code, as added by Act 195 of 2008, is amended to read:

     "(9)      'Board' means the State Budget and Control Board Board of Directors of the South Carolina Public Employee Benefit Authority.
     (10)      'Employee insurance program' or 'EIP' means the office of the board South Carolina Public Employee Benefit Authority designated by the board to operate insurance programs pursuant to this article."

SECTION      __.      Section 1-11-710(A) of the 1976 Code, as last amended by Act 195 of 2008, before the first item, is further amended to read:

     "(A)      The State Budget and Control Board board shall:"

SECTION      __.      Section 1-11-720(B) of the 1976 Code is amended to read:

     "(B)      To be eligible to participate in the state health and dental insurance plans, the entities listed in subsection (A) shall comply with the requirements established by the State Budget and Control Board board, and the benefits provided must be the same benefits provided to state and school district employees. These entities must agree to participate for a minimum of four years and the board may adjust the premiums during the coverage period based on experience. An entity which withdraws from participation may not subsequently rejoin during the first four years after the withdrawal date."

SECTION      __.      Section 1-11-725 of the 1976 Code, as added by Act 353 of 2008, is amended to read:

     "Section 1-11-725.      The State Budget and Control Board's board's experience rating of all local disabilities and special needs providers pursuant to Section 1-11-720(A)(3) must be rated as a single group when rating all optional groups participating in the state employee health insurance program."

SECTION      __.      Section 1-11-730(A)(2) of the 1976 Code, as last amended by Act 195 of 2008, is amended to read:

     "(2)      A member of the General Assembly who leaves office or retires with at least eight years' credited service in the General Assembly Retirement System is eligible to participate in the state health and dental plans by paying the full premium as determined by the State Budget and Control Board board."

SECTION      __.      Sections 1-11-740 and 1-11-750 of the 1976 Code are amended to read:

     "Section 1-11-740.            The Division of Insurance Services of the State Budget and Control Board board may develop an optional long-term care insurance program for active and retired members of the various state retirement systems depending on the availability of a qualified vendor. A program must require members to pay the full insurance premium.

     Section 1-11-750.      The Budget and Control Board board shall devise a method of withholding long-term care insurance premiums offered under Section 1-11-740 for retirees if sufficient enrollment is obtained to make the deductions feasible."

SECTION      __.      Section 1-11-770(A) of the 1976 Code, before the first item, is amended to read:

     "(A)      Subject to appropriations, the General Assembly authorizes the State Budget and Control Board board to plan, develop, and implement a statewide South Carolina 211 Network, which must serve as the single point of coordination for information and referral for health and human services. The objectives for establishing the South Carolina 211 Network are to:"

SECTION      __.      A.      Sections 8-23-20 and 8-23-30 of the 1976 Code, as last amended by Act 305 of 2008, are further amended to read:

     "Section 8-23-20.      A Deferred Compensation Commission is established consisting of eight members including the director of the South Carolina Retirement System, chief investment officer of the State Retirement System Investment Commission, and the executive director of the State Employees' Association, each of whom serve ex officio, and five other public employees to be appointed by the State Budget and Control Board, at least two of whom must be state employees and one must be a retired public employee. The appointed members shall serve for terms of three years and until their successors are appointed and qualify. The State Budget and Control Board shall designate the chairman.
     The commission Board of Directors of the South Carolina Public Employee Benefit Authority shall establish such rules and regulations as it deems necessary to implement and administer the Deferred Compensation Program. The commission board shall make such administrative appointments and contracts as are necessary to carry out the purpose and intent of this chapter and in the administration of account assets. For purposes of administering this program, an individual account shall be maintained in the name of each employee.
     The commission board shall select, through competitive bidding and contracts, plans for purchase of fixed and variable annuities, savings, mutual funds, insurance and such other investments as the commission board may approve which are not in conflict with the State Constitution and with the advice and approval of the State Treasurer.
     Costs of administration may be paid from the interest earnings of the funds accrued as a result of deposits or as an assessment against each account.

     Section 8-23-30.      The State or any political subdivision of the State, by contract, may agree with an employee to defer, a portion of his compensation in an amount as provided for in a plan approved by the commission Board of Directors of the South Carolina Public Employee Benefit Authority and subsequently with the consent of the employee may contract for purchase or otherwise procure fixed or variable annuities, savings, mutual funds, insurance, or such other investments as the commission board may approve for the purpose of carrying out the objectives of the program with the advice and approval of the State Treasurer. The investments shall be underwritten and offered in compliance with applicable federal and state laws and regulations by persons who are authorized by the commission board in accordance with the provisions of this chapter."

B.      Section 8-23-70 of the 1976 Code is amended to read:

     "Section 8-23-70.      The Deferred Compensation Program established pursuant to this chapter shall be in addition to retirement, pension, or benefit systems established by the State, federal government, or political subdivision and no deferral of income under the Deferred Compensation Program shall affect a reduction of any retirement, pension, social security, or other benefit provided by law. Any sum deferred under the Deferred Compensation Program shall not be subject to taxation until distribution is actually made to the employee.
     Nothing contained in this chapter shall be construed to prohibit counties, municipalities, school districts, and other political subdivisions of the State and their employees from participation in deferred compensation plans or programs offered independently of the State Deferred Compensation Commission Board of Directors of the South Carolina Public Employee Benefit Authority by building and loan or savings and loan associations, banks, trust companies, and credit unions chartered by the state or federal governments, and all such political subdivisions shall be empowered with such contractual authority as may be necessary or incident to such participation; provided, however, that (a) such deferred compensation plans or programs shall comply with applicable federal income tax law in providing income deferral, (b) all deferred amounts shall be held in accounts, certificates of deposit, or other forms of savings vehicles which are insured by the Federal Savings and Loan Insurance Corporation in the case of savings and loan associations, the Federal Deposit Insurance Corporation in the case of commercial banks, and the National Credit Union Administration in the case of credit unions."

C.      Section 8-23-110 of the 1976 Code, as added by Act 387 of 2000, is amended to read:

     "Section 8-23-110.      (A)      The commission Board of Directors of the South Carolina Public Employee Benefit Authority shall ensure that plan documents governing deferred compensation plans administered by the commission board permit employer contributions to the extent allowed under the Internal Revenue Code.
     (B)      Political subdivisions of the State, including school districts, participating in deferred compensation plans administered by the commission board or such plans offered by other providers may make matching or other contributions on behalf of their participating employees.
     (C)      As an additional benefit for state employees, and to the extent funds are appropriated for this purpose, the State shall make matching or other contributions on behalf of state employees participating in the deferred compensation plans offered by the commission board or such plans offered by other providers in an amount and under the terms and conditions prescribed for such contributions by the State Budget and Control Board board."

D.      The amendments to Sections 8-23-20, 8-23-30, 8-23-70, and 8-23-110 of the 1976 Code contained in this SECTION take effect January 1, 2014.

SECTION      __.      Section 9-1-10(6) of the 1976 Code, as last amended by Act 387 of 2000, is further amended to read:

     "(6)      'Board' means the State Budget and Control Board Board of Directors of the South Carolina Public Employee Benefit Authority which shall act under the provisions of this chapter through its Division of Retirement Systems."

SECTION      __.      Section 9-1-20 of the 1976 Code is amended to read:

     "Section 9-1-20.      A retirement system is hereby established and placed under the management of the State Budget and Control Board board for the purpose of providing retirement allowances and other benefits for teachers and employees of the State and political subdivisions or agencies or departments thereof. The system so created shall have the power and privileges of a corporation and shall be known as the 'South Carolina Retirement System', and by such name all of its business shall be transacted, all of its funds invested and all of its cash, securities, and other property held."

SECTION      __.      Section 9-1-210 of the 1976 Code is amended to read:

     "Section 9-1-210.      The general administration and responsibility for the proper operation of the system and for making effective the provisions hereof are hereby vested in the State Budget and Control Board board."

SECTION      __.      Section 9-1-310 of the 1976 Code, as last amended by Act 155 of 2005, is further amended to read:

     "Section 9-1-310.      The administrative cost of the South Carolina Retirement System, the South Carolina Police Officers Retirement System, the Retirement System for Members of the General Assembly of the State of South Carolina, the Retirement System for Judges and Solicitors of the State of South Carolina, and the National Guard Retirement System must be funded from the interest earnings of the above systems. The allocation of the administrative costs of the systems must be made by the State Budget and Control Board board and must be based upon a proration of the cost in proportion to the assets that each system bears to the total assets of all of the systems for the most recently completed fiscal year."

SECTION      __.      Section 9-1-1515(D)(2) of the 1976 Code is amended to read:

     "(2)      A member taking early retirement may maintain coverage under the State Insurance Benefits Plan until the date his coverage is reinstated pursuant to item (1) of this subsection by paying the total premium cost, including the employer's contribution, in the manner provided by the Division of Insurance Services of the State Budget and Control Board board."

SECTION      __.      Section 9-1-1830 of the 1976 Code is amended to read:

     "Section 9-1-1830.      Starting July 1, 1981, there must be paid to the system, and credited to the post-retirement increase special fund, contributions by the employers in an amount equal to two-tenths of one percent of the earnable compensation of each member employed by each employer. In addition, the State Budget and Control Board shall board, on the recommendation of the actuary, shall transfer a portion of the monies as are received pursuant to Section 9-1-1050 that are available due to actuarial gains in the system if the transfers do not adversely affect the funding status of the system. Starting July 1, 1986, all contributions previously credited to the post-retirement increase special fund must be diverted and credited to the employer annuity accumulation fund."

SECTION      __.      Chapter 2, Title 9 of the 1976 Code is amended to read:

"CHAPTER 2

Retirement and Preretirement Advisory Board Panel

     Section 9-2-10.      There is hereby created the South Carolina Retirement and Preretirement Advisory Board Panel for the purpose of advising the Director of the South Carolina Retirement System and the Director of the State Personnel Division on matters relating to retirement and preretirement programs and policies.

     Section 9-2-20.(a)      The board panel shall consist of eight members appointed by the State Budget and Control Board Board of Directors of the South Carolina Public Employee Benefit Authority and must be constituted as follows:
           (1)      one member representing municipal employees;
           (2)      one member representing county employees;
           (3)      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;
           (4)      two members representing public school teachers, one of whom must be retired;
           (5)      one member representing the higher education teachers. The Budget and Control Board board of directors shall invite the appropriate associations, groups, and individuals to recommend persons to serve on the board panel.
     (b)      The terms of the members shall be for four years and until their successors have been appointed and qualify. No member shall serve more than two consecutive terms. After serving two consecutive terms a member shall be eligible to serve again, four years after the expiration of his second term. Provided that of those first appointed, four of the members shall serve for a term of two years. In the event of a vacancy, a successor shall be appointed in the same manner as the original appointment to serve the unexpired term.
     (c)      A chairman, vice chairman, and secretary shall be elected from among the membership to serve for terms of two years.

     Section 9-2-30.      The board panel shall meet once a year with the Director of the South Carolina Retirement System; once a year with the State Personnel Director; and once a year with the State Budget and Control Board Executive Director of the South Carolina Public Employee Benefit Authority. The chairman may call additional meetings of the board panel at such other times as deemed considered necessary and shall give timely notice of such meetings.

     Section 9-2-40.      The board panel shall review retirement and preretirement programs and policies, propose recommendations, and identify major issues for consideration.

     Section 9-2-50.      The board panel is authorized to seek reasonable staff assistance from the South Carolina Retirement System, the State Personnel Division, and other state agencies which may be concerned with a particular area of study. The board panel is also encouraged to use such resources as faculty and students at public universities, colleges, and technical education schools in South Carolina."

SECTION      __.      Section 9-8-10(3) of the 1976 Code is amended to read:

     "(3)      'Board' means the State Budget and Control Board Board of Directors of the South Carolina Public Employee Benefit Authority."

SECTION      __.      Section 9-8-30(1) of the 1976 Code is amended to read:

     "(1)      The administration and responsibility for the operation of the system and for making effective the provisions of this chapter are vested in the State Budget and Control Board board."

SECTION      __.      The last undesignated paragraph of Section 9-8-60(1) of the 1976 Code, as added by Act 164 of 1993, is amended to read:

     "A person receiving retirement allowances under this system who is elected to the General Assembly continues to receive the retirement allowances while serving in the General Assembly, and must also must be a member of the General Assembly Retirement System retirement system unless the person files a statement with the State Budget and Control Board board on a form prescribed by the board electing not to participate in the General Assembly Retirement System the applicable system while a member of the General Assembly. A person making this election shall not make contributions to the General Assembly Retirement System applicable retirement system nor shall the State make contributions on the member's behalf and the person is not entitled to benefits from the General Assembly Retirement System applicable retirement system after ceasing to be a member of the General Assembly."

SECTION      __.      Section 9-9-10(3) of the 1976 Code is amended to read:

     "(3)      'Board' shall mean means the State Budget and Control Board Board of Directors of the South Carolina Public Employee Benefit Authority."

SECTION      __.      Section 9-9-30(1) of the 1976 Code is amended to read:

     "(1)      The general administration and responsibility for the proper operation of the system and for making effective the provisions hereof are hereby vested in the State Budget and Control Board board."

SECTION      __.      Section 9-10-10(1) of the 1976 Code, as added by Act 155 of 2005, is amended to read:

     "(1)      'Board' or 'board' means the State Budget and Control Board Board of Directors of the South Carolina Public Employee Benefit Authority, acting pursuant to the provisions of this chapter through its Division of Retirement Systems."

SECTION      __.      Section 9-10-60(D) of the 1976 Code, as added by Act 155 of 2005, is amended to read:

     "(D)      The General Assembly annually shall appropriate sums sufficient to establish and maintain the National Guard Retirement System on a sound actuarial basis as determined by the State Budget and Control Board board."

SECTION      __.      Section 9-11-10(9) of the 1976 Code is amended to read:

     "(9)      'Board' means the State Budget and Control Board Board of Directors of the South Carolina Public Employee Benefit Authority acting through its Division of Retirement Systems."

SECTION      __.      Section 9-11-30(1) of the 1976 Code is amended to read:

     "(1)      The general administration and responsibility for the proper operation of the system and for making effective the provisions hereof are hereby vested in the State Budget and Control Board board."

SECTION      __.      Section 9-12-10(1) of the 1976 Code, as added by Act 311 of 2008, is amended to read:

     "(1)      'Board' means the State Budget and Control Board Board of Directors of the South Carolina Public Employee Benefit Authority acting as trustee of the retirement systems and acting through its Division of Retirement Systems."

SECTION      __.      Items (3) and (9) of Section 9-16-10 of the 1976 Code, as added by Act 371 of 1998, are amended to read:

     "(3)      'Board' means the State Budget and Control Board Board of Directors of the South Carolina Public Employee Benefit Authority acting as trustee of the retirement system.

     (9)      'Trustee' means the State Budget and Control Board Board of Directors of the South Carolina Public Employee Benefit Authority."

SECTION      __.      Section 9-16-55(F) of the 1976 Code, as added by Act 248 of 2008, is amended to read:

     "(F)      Present, future, and former board members, officers, and employees of the State Budget and Control Board, present, future, and former directors, officers, and employees of the South Carolina Public Employee Benefit Authority, the Retirement System Investment Commission, and contract investment managers retained by the commission must be indemnified from the general fund of the State and held harmless by the State from all claims, demands, suits, actions, damages, judgments, costs, charges, and expenses, including court costs and attorney's fees, and against all liability, losses, and damages of any nature whatsoever that these present, future, or former board members, officers, employees, or contract investment managers shall or may at any time sustain by reason of any decision to restrict, reduce, or eliminate investments pursuant to this section."

SECTION      __.      Section 9-18-10(3) of the 1976 Code, as added by Act 38 of 1995, is amended to read:

     "(3)      'Board' means the State Budget and Control Board Board of Directors of the South Carolina Public Employee Benefit Authority."

SECTION      __.      Section 9-20-30 of the 1976 Code, as last amended by Act 54 of 2001, is further amended to read:

     Section 9-20-30.      The South Carolina Retirement System shall provide for the administration of the State Optional Retirement Program under this chapter. The Director acting on behalf of the South Carolina Retirement System acting on behalf of the Board of Directors of the South Carolina Public Employee Benefit Authority shall designate no fewer than four companies to provide annuity contracts, mutual fund accounts, or similar investment products offered through state or national banking institutions, or a combination of them, under the program. In making the designation, selection criteria must include:
           (1)      the nature and extent of the rights and benefits to be provided by the contracts or accounts, or both, of participants and their beneficiaries;
           (2)      the relation of the rights and benefits to the amount of contributions to be made;
           (3)      the suitability of these rights and benefits to the needs of the participants;
           (4)      the ability and experience of the designated companies in providing suitable rights and benefits under the contracts or accounts, or both;
           (5)      the ability and experience of the designated companies to provide suitable education and investment options.
     Companies participating in the optional retirement program for publicly supported four-year and postgraduate institutions of higher education as of July 1, 2002, or the optional retirement program for teachers and school administrators as of July 1, 2001, may continue to participate in this program and this participation is governed by their existing contracts.

SECTION      __.      Section 9-21-20(2) of the 1976 Code, as added by Act 12 of 2003, is amended to read:

     "(2)      'Board' means the State Budget and Control Board Board of Directors of the South Carolina Public Employee Benefit Authority."

SECTION      __.      Section 15-78-140 of the 1976 Code is amended to read:

     "Section 15-78-140.      (a)      (Reserved)
     (b)      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 before 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)      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."

SECTION      __.      Section 59-1-470 of the 1976 Code is amended to read:

     "Section 59-1-470.      Funds appropriated by the General Assembly for a deferred compensation employer matching contribution must be distributed by the State Department of Education to school districts for the purpose of providing an employer matching contribution for eligible school district employees making contributions to deferred compensation plans offered by the South Carolina Deferred Compensation Commission or, after December 31, 2013, the South Carolina Public Employee Benefit Authority, or other approved and qualified plans of other providers. These funds must be distributed in a manner consistent with the provisions of Section 8-23-110. The employer matching contribution by the school district may not exceed three hundred dollars for each eligible employee a year. Individuals eligible for the matching contribution must be classified as required in Section 9-20-20, the Optional Retirement Program for Teachers and School Administrators."

SECTION      __.      This subpart takes effect July 1, 2012.

Subpart 3

Transfer and Devolution

SECTION      __.      (A)      Where the provisions of this act transfer portions of the Budget and Control Board to the South Carolina Public Employee Benefit Authority, the employees, authorized appropriations, and assets and liabilities of the transferred portions of the Budget and Control Board are also transferred to and become part of the South Carolina Public Employee Benefit Authority. All classified or unclassified personnel employed by the transferred portions of the Budget and Control Board either by contract or by employment at will, shall become on July 1, 2012, employees of the South Carolina Public Employee Benefit Authority, with the same compensation, classification, and grade level, as applicable. Before its abolition, the Budget and Control Board shall cause all necessary actions to be taken to accomplish this transfer in accordance with state laws and regulations. Notwithstanding the provisions of Section 9-4-10(A) of the 1976 Code, as added by this act, on the effective date of this SECTION, the Governor and the Chairmen of the House Ways and Means Committee and the Senate Finance Committee jointly shall appoint the initial and any necessary succeeding Executive Director of the South Carolina Public Employee Benefit Authority to serve through December 31, 2013, after which the position must be filled by the appointment of the authority board. Notwithstanding the provisions of Section 9-4-10(F) of the 1976 Code, as added by this act, the Governor shall name a member of the Board of Directors of the South Carolina Public Employee Benefit Authority to serve as chairman of that board through December 31, 2013.
     (B)      Regulations promulgated by the transferred portions of the Budget and Control Board are continued and are considered to be promulgated by the South Carolina Public Employee Benefit Authority. Contracts entered into by the Budget and Control Board and the Deferred Compensation Commission are continued and are considered to be devolved upon the South Carolina Public Employee Benefit Authority at the time of the transfer.
     (C)      The Code Commissioner is directed to change or correct all references to the State Budget and Control Board, the Insurance Reserve Fund, the Employee Insurance Program, the Retirement Division, and the Deferred Compensation Commission to reflect the transfer to the South Carolina Public Employee Benefit Authority. References to the State Budget and Control Board, the Insurance Reserve Fund, the Employee Insurance Program, the Retirement Division, and the Deferred Compensation Commission in the 1976 Code or other provisions of law are considered to be and must be construed to mean appropriate references.

Subpart 4

Effective Date of this Part

SECTION      __.      Except where otherwise provided, this Part takes effect July 1, 2012.            /

Renumber sections to conform.
Amend title to conform.