H 4531 General Bill, By M. McLeod
 A BILL TO AMEND SECTION 2-65-70, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA,
 1976, RELATING TO THE RECOVERY OF INDIRECT COSTS FROM AGENCIES RECEIVING
 CERTAIN FEDERAL GRANTS OR CONTRACTS, SO AS TO INCREASE FROM TWO HUNDRED
 THOUSAND TO TWO HUNDRED FIFTY THOUSAND DOLLARS THE AMOUNT OF THESE FEDERAL
 GRANTS AND CONTRACTS WHICH ARE EXEMPT FROM THIS COST RECOVERY REQUIREMENT, AND
 TO PROVIDE FOR AN ANNUAL FIVE PERCENT INCREASE IN THIS TWO HUNDRED FIFTY
 THOUSAND DOLLAR EXEMPTION AMOUNT BEGINNING JANUARY 1, 2001.

   02/02/00  House  Introduced and read first time HJ-9
   02/02/00  House  Referred to Committee on Ways and Means HJ-10

TO AMEND SECTION 2-65-70, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE RECOVERY OF INDIRECT COSTS FROM AGENCIES RECEIVING CERTAIN FEDERAL GRANTS OR CONTRACTS, SO AS TO INCREASE FROM TWO HUNDRED THOUSAND TO TWO HUNDRED FIFTY THOUSAND DOLLARS THE AMOUNT OF THESE FEDERAL GRANTS AND CONTRACTS WHICH ARE EXEMPT FROM THIS COST RECOVERY REQUIREMENT, AND TO PROVIDE FOR AN ANNUAL FIVE PERCENT INCREASE IN THIS TWO HUNDRED FIFTY THOUSAND DOLLAR EXEMPTION AMOUNT BEGINNING JANUARY 1, 2001.

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

SECTION 1. Section 2-65-70(A) of the 1976 Code, as last amended by Act 419 of 1998, is further amended to read:

"(A) All agencies receiving federal grants or contracts shall recover the maximum allowable indirect costs on those projects, subject to applicable federal laws and regulations. All indirect cost recoveries must be credited to the general fund of the State, with the exception of recoveries from research and student aid grants and contracts. Further, after January 1, 1999, federal grants and contracts whose annual award is two hundred fifty thousand dollars or less are exempted also from this cost recovery requirement. Beginning on January 1, 2001, this two hundred fifty thousand dollar exemption amount shall be increased by five percent per year.

(1) Each agency receiving grants or contracts to which indirect costs may be charged must have an approved indirect cost rate or cost allocation plan. Agencies shall prepare the indirect cost proposals and submit them to the board for review. The board shall submit the proposals to the appropriate federal agencies, negotiate the agreements, and transmit approved agreements to the state agencies. The board, upon request, also shall provide a report on the proposals to the House Ways and Means Committee or the Senate Finance Committee, or both.

(2) The board annually shall prepare the Statewide Cost Allocation Plan for allocation of central service costs to federal and other programs. The board shall ensure that state agencies recover costs approved in the plan through federal grants and contracts, subject to federal laws and regulations.

(3) The State Comptroller General shall assist the board in ensuring compliance with this section."

SECTION 2. This act takes effect upon approval by the Governor.