H 4760 General Bill, By Kirsh, Meacham-Richardson and Simrill
 A BILL TO AMEND ARTICLE 3, CHAPTER 1, TITLE 9, CODE OF LAWS OF SOUTH CAROLINA,
 1976, RELATING TO THE ADMINISTRATION OF THE SOUTH CAROLINA RETIREMENT SYSTEM,
 BY ADDING SECTION 9-1-295 SO AS TO PROVIDE THAT THE BUDGET AND CONTROL BOARD
 MAY INVESTIGATE AND DETERMINE IF A CURRENT OR PREVIOUSLY EMPLOYED PUBLIC
 OFFICIAL OR EMPLOYEE WHO HAS BEEN CONVICTED OF AN OFFENSE INVOLVING
 EMBEZZLEMENT OR THE FRAUDULENT APPROPRIATION OF PUBLIC FUNDS HAS USED ANY OF
 THE FUNDS TO ESTABLISH SERVICE CREDIT IN THE RETIREMENT SYSTEM, TO PROVIDE FOR
 A HEARING, FINAL DETERMINATION, THE REFUND OF THE MONIES TO THE PUBLIC AGENCY
 FROM WHICH THEY WERE EMBEZZLED OR FRAUDULENTLY APPROPRIATED, AND THE
 RECALCULATION OF SERVICE CREDIT AND RETIREMENT BENEFITS WITHOUT THE
 CONTRIBUTION OF EMBEZZLED FUNDS IF THE BOARD SO ORDERS, AND TO PROVIDE THAT
 SUCH A DETERMINATION MAY BE CONSIDERED A CONTESTED CASE UNDER THE
 ADMINISTRATIVE PROCEDURES ACT.

   03/09/00  House  Introduced and read first time HJ-14
   03/09/00  House  Referred to Committee on Ways and Means HJ-15

TO AMEND ARTICLE 3, CHAPTER 1, TITLE 9, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ADMINISTRATION OF THE SOUTH CAROLINA RETIREMENT SYSTEM, BY ADDING SECTION 9-1-295 SO AS TO PROVIDE THAT THE BUDGET AND CONTROL BOARD MAY INVESTIGATE AND DETERMINE IF A CURRENT OR PREVIOUSLY EMPLOYED PUBLIC OFFICIAL OR EMPLOYEE WHO HAS BEEN CONVICTED OF AN OFFENSE INVOLVING EMBEZZLEMENT OR THE FRAUDULENT APPROPRIATION OF PUBLIC FUNDS HAS USED ANY OF THE FUNDS TO ESTABLISH SERVICE CREDIT IN THE RETIREMENT SYSTEM, TO PROVIDE FOR A HEARING, FINAL DETERMINATION, THE REFUND OF THE MONIES TO THE PUBLIC AGENCY FROM WHICH THEY WERE EMBEZZLED OR FRAUDULENTLY APPROPRIATED, AND THE RECALCULATION OF SERVICE CREDIT AND RETIREMENT BENEFITS WITHOUT THE CONTRIBUTION OF EMBEZZLED FUNDS IF THE BOARD SO ORDERS, AND TO PROVIDE THAT SUCH A DETERMINATION MAY BE CONSIDERED A CONTESTED CASE UNDER THE ADMINISTRATIVE PROCEDURES ACT.

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

SECTION 1. Article 3, Chapter 1, Title 9 of the 1976 Code is amended by adding:

"Section 9-1-295. (A) Notwithstanding any other provision of law, the Budget and Control Board may investigate and determine if a current or previously employed public official or public employee who has been convicted of an offense involving embezzlement or the fraudulent appropriation of public funds or public property has used any of the embezzled monies to establish service credit in the retirement system to which the employee belongs.

(B) If the board finds credible evidence that embezzled monies have been used to establish service credit, it shall hold a hearing and make a final determination concerning whether the monies should be refunded to the public agency from which they were embezzled or fraudulently appropriated, and whether the service credit and retirement benefits, if applicable, of the defendant must be recalculated without the contribution of embezzled funds. If the contribution of the embezzled funds allowed the defendant to retire and begin receiving retirement benefits, then the defendant's retirement benefit is canceled, and his service credit must be adjusted to reflect the loss of the credited service. The board may offset benefits paid the defendant from the defendant's contributions and accumulated interest on deposit with the retirement system.

(C) A person aggrieved by the board's decision under this section may request a contested case hearing. The contested case must proceed in accordance with Articles 3 and 5, Chapter 23 of Title 1."

SECTION 2. This act is intended to create remedies to more efficiently recover restitution due to state and local governmental entities in cases involving embezzlement or the appropriation of public funds or public property to the private use of a public officer or employee. As such, it is remedial legislation intended to be retroactive as well as prospective in its application.

SECTION 3. If any provision of this act or application of it to any person or circumstance is held invalid, the invalidity shall not affect the other provisions or applications of the act which can be given effect without the invalid provision or application, and to that end the provisions of this act are declared to be severable.

SECTION 4. This act takes effect upon approval by the Governor.