South Carolina Legislature


 

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H 3590
Session 117 (2007-2008) 

H 3590 General Bill, By G.R. Smith, Bowen, Duncan, Haskins, Littlejohn, Lowe, 
Bedingfield and Stavrinakis

Similar(S 604) A BILL TO ENACT THE "SOUTH CAROLINA RESTRUCTURING ACT OF 2007" INCLUDING PROVISIONS TO AMEND SECTION 1-30-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE AGENCIES OF THE EXECUTIVE BRANCH OF STATE GOVERNMENT BY ADDING THE DEPARTMENT OF ADMINISTRATION; BY ADDING SECTION 1-30-125 SO AS TO ESTABLISH THE DEPARTMENT OF ADMINISTRATION AS AN AGENCY OF THE EXECUTIVE BRANCH OF STATE GOVERNMENT TO BE HEADED BY A DIRECTOR APPOINTED BY THE GOVERNOR UPON THE ADVICE AND CONSENT OF THE GENERAL ASSEMBLY, AND TO TRANSFER TO THIS NEWLY CREATED DEPARTMENT CERTAIN OFFICES AND DIVISIONS OF THE STATE BUDGET AND CONTROL BOARD, OFFICE OF THE GOVERNOR, AND OTHER AGENCIES, AND TO PROVIDE FOR TRANSITIONAL AND OTHER PROVISIONS NECESSARY TO ACCOMPLISH THE ABOVE; BY ADDING CHAPTER 8 TO TITLE 1 SO AS TO CREATE THE OFFICE OF STATE INSPECTOR GENERAL AS A SEPARATE DIVISION WITHIN THE DEPARTMENT OF ADMINISTRATION, TO PROVIDE THAT THE STATE INSPECTOR GENERAL MUST BE APPOINTED BY THE GOVERNOR UPON THE ADVICE AND CONSENT OF THE GENERAL ASSEMBLY, TO PROVIDE FOR THE PURPOSE, DUTIES, RESPONSIBILITIES, AND AUTHORITY OF THE STATE INSPECTOR GENERAL, TO PROVIDE A DEFINITION OF "EXECUTIVE AGENCIES" FOR PURPOSES OF THIS CHAPTER, AND TO PROVIDE FOR THE RECEIPT AND INVESTIGATION OF COMPLAINTS RELATING TO IMPROPER OR UNLAWFUL ACTIVITY WITHIN EXECUTIVE AGENCIES OF THE STATE GOVERNMENT; BY ADDING ARTICLE 6 TO CHAPTER 3 OF TITLE 1 SO AS TO ESTABLISH THE DIVISION OF THE STATE CHIEF INFORMATION OFFICER WITHIN THE DEPARTMENT OF ADMINISTRATION TO BE HEADED BY THE STATE CHIEF INFORMATION OFFICER, TO PROVIDE THAT THE STATE CHIEF INFORMATION OFFICER SHALL BE APPOINTED BY THE GOVERNOR UPON THE ADVICE AND CONSENT OF THE GENERAL ASSEMBLY, AND TO PROVIDE FOR THE POWERS, DUTIES, AND FUNCTIONS OF THE DIVISION; TO CREATE A JOINT INFORMATION TECHNOLOGY REVIEW COMMITTEE, AN INFORMATION TECHNOLOGY BUSINESS CASE REVIEW PANEL, AND AN INFORMATION TECHNOLOGY ARCHITECTURE OVERSIGHT PANEL AND TO PROVIDE FOR THE FUNCTIONS, POWERS, AND RESPONSIBILITIES OF THE COMMITTEE AND PANELS; TO AMEND SECTION 11-35-1580, AS AMENDED, RELATING TO INFORMATION TECHNOLOGY PROCUREMENTS, SO AS TO DELETE CERTAIN RESPONSIBILITIES OF THE INFORMATION TECHNOLOGY MANAGEMENT OFFICE; TO AMEND SECTIONS 1-10-10, 1-11-20, AS AMENDED, 1-11-22, 1-11-55, 1-11-56, 1-11-58, 1-11-65, 1-11-67, 1-11-70, 1-11-80, 1-11-90, 1-11-100, 1-11-110, 1-11-180, 1-11-220, 1-11-225, 1-11-250, 1-11-260, 1-11-270, 1-11-280, 1-11-290, 1-11-300, 1-11-310, 1-11-315, 1-11-320, 1-11-335, 1-11-340, 1-11-435, 2-13-240, AS AMENDED, CHAPTER 9 OF TITLE 3; 10-1-10, 10-1-30, AS AMENDED, 10-1-40, 10-1-130, 10-1-190, AS AMENDED, CHAPTER 9 OF TITLE 10, 10-11-50, AS AMENDED, 10-11-90, 10-11-110, 10-11-140, 10-11-330; 11-9-610, 11-9-620, 11-9-630, 11-35-3810, 11-35-3820, 11-35-3830, 11-35-3840, 13-7-30, 13-7-830, ALL AS AMENDED, 48-46-30, AS AMENDED, 48-46-40, AS AMENDED, 48-46-50, 48-46-60, 48-46-90, 44-53-530, AS AMENDED, AND 44-96-140; AND TO ADD SECTION 1-11-185 ALL RELATING TO VARIOUS AGENCY OR DEPARTMENT PROVISIONS SO AS TO CONFORM THEM TO THE ABOVE PROVISIONS PERTAINING TO THE NEW DEPARTMENT OF ADMINISTRATION OR TO SUPPLEMENT SUCH PROVISIONS. 02/27/07 House Introduced and read first time HJ-4 02/27/07 House Referred to Committee on Judiciary HJ-6 01/16/08 House Member(s) request name added as sponsor: Bedingfield 03/27/08 Scrivener's error corrected 04/09/08 House Committee report: Favorable with amendment Judiciary HJ-54 04/15/08 House Member(s) request name added as sponsor: Stavrinakis 04/15/08 House Requests for debate-Rep(s). Harrison, Merrill, Skelton, Hayes, Crawford, Herbkersman, Bedingfield, Daning, Gambrell, Weeks, Haley, and Leach HJ-40 04/22/08 House Amended HJ-92 04/22/08 House Read second time HJ-155 04/22/08 House Roll call Yeas-111 Nays-0 HJ-155 04/23/08 House Read third time and sent to Senate HJ-62 04/23/08 Senate Introduced and read first time SJ-5 04/23/08 Senate Referred to Committee on Judiciary SJ-5 04/28/08 Senate Referred to Subcommittee: Martin (ch), Ritchie, Malloy, Sheheen, Cleary 05/21/08 Senate Committee report: Majority favorable with amend., minority unfavorable Judiciary SJ-5




H. 3590

Indicates Matter Stricken

Indicates New Matter

COMMITTEE REPORT

May 21, 2008

H. 3590

Introduced by Reps. G.R. Smith, Bowen, Duncan, Haskins, Littlejohn, Lowe, Bedingfield and Stavrinakis

S. Printed 5/21/08--S.

Read the first time April 23, 2008.

            

THE COMMITTEE ON JUDICIARY

To whom was referred a Bill (H. 3590) to enact the "South Carolina Restructuring Act of 2007" including provisions to amend Section 1-30-10, Code of Laws of South Carolina, 1976, relating to the agencies, etc., respectfully

REPORT:

That they have duly and carefully considered the same and recommend that the same do pass with amendment:

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

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

Part I

Citation

SECTION    1.    This act is known and may be cited as the "South Carolina Restructuring Act of 2008".

Part II

Department Organization

SECTION    2.    Section 1-30-10 of the 1976 Code is amended to read:

"Section 1-30-10.    (A)    There are hereby created, within the executive branch of the state government, the following departments:

1.    Department of Agriculture

2.    Department of Alcohol and Other Drug Abuse Services

3.    Department of Commerce

4.    Department of Corrections

5.    Department of Disabilities and Special Needs

6.    Department of Education

7.    Department of Health and Environmental Control

8.    Department of Health and Human Services

9.    Department of Insurance

10.    Department of Juvenile Justice

11.    Department of Labor, Licensing, and Regulation

12.    Department of Mental Health

13.    Department of Natural Resources

14.    Department of Parks, Recreation and Tourism

15.    Department of Probation, Parole, and Pardon Services

16.    Department of Public Safety

17.    Department of Revenue

18.    Department of Social Services

19.    Department of Transportation

(1)    Department of Administration;

(2)    Department of Agriculture;

(3)    Department of Alcohol and Other Drug Abuse Services;

(4)    Department of Commerce;

(5)    Department of Corrections;

(6)    Department of Disabilities and Special Needs;

(7)    Department of Education;

(8)    Department of Health and Environmental Control;

(9)    Department of Health and Human Services;

(10)    Department of Insurance;

(11)    Department of Juvenile Justice;

(12)    Department of Labor, Licensing and Regulation;

(13)    Department of Mental Health;

(14)    Department of Motor Vehicles;

(15)    Department of Natural Resources;

(16)    Department of Parks, Recreation and Tourism;

(17)    Department of Probation, Parole and Pardon Services;

(18)    Department of Public Safety;

(19)    Department of Revenue;

(20)    Department of Social Services;

(21)    Department of Transportation.

(B)(1)    The governing authority of each department shall be either:

(i)        a director, and in the case of the Department of Commerce, the or a secretary, who must be appointed by the Governor with the advice and consent of the Senate, subject to removal from office by the Governor pursuant to provisions of Section 1-3-240(B); or,

(ii)    a seven member board to be appointed and constituted in a manner provided for by law; or,

(iii)    in the case of the Department of Agriculture and the Department of Education, the State Commissioner of Agriculture and the State Superintendent of Education, respectively, elected to office under the Constitution of this State; or

(iv)    in the case of the Department of Transportation, a seven member commission constituted in a manner provided by law, and a Secretary of Transportation appointed by and serving at the pleasure of the Governor.

(2)    In making appointments to boards and an appointment for a governing authority of a department directors, race, gender, and other demographic factors should be considered to assure nondiscrimination, inclusion, and representation to the greatest extent possible of all segments of the population of this State; however, consideration of these factors in no way creates a cause of action or basis for an employee grievance for a person appointed or for a person who fails to be appointed. The Governor in making the appointments provided for by this section shall endeavor to appoint individuals who have demonstrated exemplary managerial skills in either the public or private sector.

(C)    Each department shall be organized into appropriate divisions subdivisions by the governing authority of the department through further consolidation or further subdivision. The power to organize and reorganize the department supersedes any provision of law to the contrary pertaining to individual divisions; provided, however, the into divisions lies with the General Assembly in furtherance of its mandate pursuant to Article XII of the South Carolina Constitution. The dissolution of any division must receive legislative approval by authorization included in the annual general appropriations act likewise be statutorily approved by the General Assembly.

Any other approval procedures for department reorganization in effect on the effective date of this act no longer apply.

(D)    The governing authority of a department is vested with the duty of overseeing, managing, and controlling the operation, administration, and organization of the department. The governing authority has the power to create and appoint standing or ad hoc advisory committees in its discretion or at the direction of the Governor to assist the department in particular areas of public concern or professional expertise as is deemed appropriate. Such committees shall serve at the pleasure of the governing authority and committee members shall not receive salary or per diem, but shall be entitled to reimbursement for actual and necessary expenses incurred pursuant to the discharge of official duties not to exceed the per diem, mileage, and subsistence amounts allowed by law for members of boards, commissions, and committees.

(E)    The governing authority of a department director may appoint deputy directors deputies to head the divisions of their department, with each deputy director managing one or more of the divisions; in the case of the Department of Commerce, the Secretary of Commerce may appoint a departmental executive director and also may appoint directors to manage the various divisions of the Department of Commerce. In making appointments race, gender, and other demographic factors should be considered to assure nondiscrimination, inclusion, and representation to the greatest extent possible of all segments of the population of this State; however, consideration of these factors in making an appointment in no way creates a cause of action or basis for an employee grievance for a person appointed or for a person who fails to be appointed. Deputy directors Deputies serve at the will and pleasure of the department director governing authority. The deputy director of a division is vested with the duty of overseeing, managing, and controlling the operation and administration of the division under the direction and control of the department director department's governing authority and performing such other duties as delegated by the department director department's governing authority.

(F)(1)    In the event a vacancy should occur occurs in the office of department director the department's governing authority at a time when the General Assembly is not in session, the Governor may temporarily fill the vacancy pursuant to Section 1-3-210.

(2)    Notwithstanding the provisions of subitem (F)(1), as of July 1, 1993, for each department created pursuant to the provisions of this act which must be governed by a single director, an initial interim director shall serve as the governing authority, serving until January 31, 1994. During that period the following departments must be governed by the director or interim director of the following agencies as of June 30, 1993:

(i)        Department of Corrections, created pursuant to Section 1-30-30, by the director of the former Department of Corrections;

(ii)    Department of Juvenile Justice created pursuant to Section 1-30-60, by the interim director of the former Department of Youth Services;

(iii)    Department of Probation, Parole, and Pardon Services created pursuant to Section 1-30-85 by the director of the former Department of Probation, Pardon and Parole;

(iv)    Department of Social Services created pursuant to Section 1-30-100, by the director of the former Department of Social Services;

(v)    Department of Parks, Recreation and Tourism created pursuant to Section 1-30-80, by the director of the former Department of Parks, Recreation and Tourism;

(vi)    Department of Commerce created pursuant to Section 1-30-25, by the Executive Director of the former State Development Board;

(vii)    Department of Alcohol and Other Drug Abuse Services created pursuant to Section 1-30-20, by the director of the former South Carolina Commission on Alcohol and Drug Abuse.

(3)    As of December 1, 1993, the Governor must submit to the Senate the names of appointees to the permanent department directorships for those departments created on July 1, 1993 and February 1, 1994. If no person has been appointed and qualified for a directorship as of February 1, 1994, the Governor may appoint an interim director to serve pursuant to the provisions of (F)(1).

(4)    Notwithstanding provisions of (2) and (3) to the contrary, the initial interim director of the Department of Public Safety shall be appointed by the Budget and Control Board. The initial interim director may be appointed as the permanent director of the department by the Governor.

(G)(1)    Department and agency governing authorities must, no later than the first day of the 1994 2009 legislative session and every twelve months thereafter for the following three years, submit to the Governor and General Assembly reports giving detailed and comprehensive recommendations for the purposes of merging or eliminating duplicative or unnecessary divisions, programs, or personnel within each department to provide a more efficient administration of government services. If an agency or department has no recommendations for restructuring of divisions, programs, or personnel, its report must contain a statement to that effect. Upon their receipt by the President of the Senate and the Speaker of the House of Representatives, these reports must be referred as information to the standing committees of the respective bodies most jurisdictionally related in subject matter to each agency. Alternatively, the House and Senate may provide by rule for the referral of these reports. Thereafter, The Governor shall must periodically consult with the governing authorities of the various departments and upon such consultation, the Governor shall must submit a report of any restructuring recommendations to the General Assembly for its review and consideration.

(2)    The Governor shall report to the General Assembly no later than the second Tuesday in January of 1994, his recommendation for restructuring the following offices and divisions presently under his direct supervision, and as to how each might be restructured within other appropriate departments or divisions amended by this act:

(i)            Office of Executive Policy and Programs;

(ii)        Office of Energy Programs;

(iii)        Office of Personnel and Program Services;

(iv)        Office of Research;

(v)        Division of Health;

(vi)        Division of Economic Opportunity;

(vii)        Division of Economic of Development;

(viii)    Division of Ombudsman and Citizens' Services;

(ix)        Division of Education;

(x)        Division of Natural Resources;

(xi)        Division of Human Services.

Department and agency governing authorities must, no later than the first day of the 2009 legislative session, and as part of the agency's five-year oversight study and investigation conducted pursuant to Chapter 2 of Title 2, submit to the Governor and the General Assembly a five-year plan that provides initiatives and/or planned actions that implement cost savings and increased efficiencies of services and responsibilities within the projected five-year period.

(H)    Department governing authorities must submit to the General Assembly by the first day of the 1994 legislative session and every five years thereafter a mission statement that must be approved by the General Assembly by Joint Resolution. RESERVED"

SECTION    3.    Chapter 30, Title 1 of the 1976 Code is amended by adding:

"Section 1-30-125.    (A)    Effective July 1, 2011, the following offices, divisions, or components of the State Budget and Control Board, Office of the Governor, or other agencies are transferred to, and incorporated into, the Department of Administration, a department of the executive branch of state government headed by a director appointed by the Governor with the advice and consent of the Senate as provided in Section 1-30-10(B)(1)(i):

(1)    the following components of the Division of General Services:

(a)    Facilities Management;

(b)    Business Services together with Fleet Management; and

(c)    the portion of Property Services that provides maintenance and management;

(2)    Office of Human Resources;

(3)    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;

(4)    Office of Economic Opportunity;

(5)    Developmental Disabilities Council;

(6)    Continuum of Care as established by Section 20-7-5610;

(7)    Children's Foster Care as established by Section 20-7-2379;

(8)    Veterans Affairs as established by Section 25-11-10;

(9)    Commission on Women as established by Section 1-15-10;

(10)    Victims Assistance as established by Article 13, Chapter 3, Title 16;

(11)    Small and Minority Business as established by Section 11-35-5270;

(12)    Procurement Services Division of the State Budget and Control Board;

(13)    State Energy Office as established by Section 48-52-410; and

(14)    Division of State Chief Information Officer of the State Budget and Control Board.

(B)    Effective July 1, 2011, the Office of State Chief Information Officer in the Department of Administration is established in Article 6, Chapter 3 of Title 1.

(C)    Effective July 1, 2011, the Office of State Inspector General in the Department of Administration is established in Chapter 8 of Title 1.

(D)    Each transferred office must be maintained as a distinct component of the Department of Administration. Any funds appropriated to a distinct component of the department must not be transferred to another component. Any funds appropriated to the department, and not to a distinct component of the department, may be used at the discretion of the director.

(E)    Where the provisions of this act transfer offices, or portions of offices, of the Budget and Control Board, Office of the Governor, or other agencies to the new Department of Administration, the employees, authorized appropriations, and assets and liabilities of the transferred offices are also transferred to and become part of the Department of Administration. All classified or unclassified personnel employed by these offices on the effective date of this act, either by contract or by employment at will, shall become employees of the Department of Administration, with the same compensation, classification, and grade level, as applicable. The Executive Director of Budget and Control Board shall cause all necessary actions to be taken to accomplish this transfer in accordance with state laws and regulations.

(F)    Regulations promulgated by these transferred offices as they formerly existed under the Budget and Control Board, Office of the Governor, or other agencies are continued and are considered to be promulgated by these offices under the newly created Department of Administration."

SECTION    4.    A.    Article 6, Chapter 3, Title 1 of the 1976 Code is amended by adding:

"Article 6

Office of State Chief Information Officer

Section 1-3-300.    It is the intent of the General Assembly to create an instrumentality that provides leadership and direction for the use of information technology within the executive branch of government in South Carolina. The General Assembly recognizes the critical role information technology plays in providing cost effective and efficient services to the citizens of this State. The General Assembly envisions an enterprise information system that provides an easily accessible, reliable, and accurate information infrastructure to enhance both the quality and delivery of services.

Section 1-3-305.    There is created the Division of the Office of the State Chief Information Officer within the Department of Administration. The division is under the supervision of the State Chief Information Officer. The State Chief Information Officer shall be appointed by the Governor upon the advice and consent of the Senate and shall serve at the pleasure of the Governor.

Section 1-3-310.    The Office of the State Chief Information Officer may be organized in a manner the State Chief Information Officer considers most appropriate to carry out various duties, responsibilities, and authorities assigned to the office.

Section 1-3-315.    As used in this article:

(1)    'Advisory Council' means the South Carolina Information Technology Advisory Council as established in this article.

(2)    'Board' means the State Budget and Control Board.

(3)    'Exempted state agency' means the Department of Transportation, the Medical University of South Carolina, Clemson University, the University of South Carolina and its regional campuses, the state's four-year public colleges and universities, the state's technical schools and colleges, and the South Carolina Education Lottery Commission. An identifiable division of a state agency that has a fiduciary responsibility to use its assets in a manner consistent with constitutionally protected trust funds shall also receive the status of an 'exempted state agency' under this article.

(4)    'Governmental body' means a state government department, commission, council, board, bureau, committee, institution, agency, government corporation, or other establishment or official of the executive branch. Governmental body does not mean the General Assembly, the State Senate, the State House of Representatives, or any committee or instrumentality of the General Assembly, the Senate, or House of Representatives; the Judicial Department; Legislative Council; the Office of Legislative Printing, Information and Technology Systems; the South Carolina Public Service Authority; the South Carolina State Ports Authority; the Department of Transportation; the Medical University of South Carolina; Clemson University; the University of South Carolina and its regional campuses; the state's four-year public colleges and universities; the state's technical schools and colleges; the South Carolina Education Lottery Commission; an identifiable division of a state agency that has a fiduciary responsibility to use its assets in a manner consistent with constitutionally protected trust funds; and all local political subdivisions such as counties, municipalities, school districts, or public service or special purpose districts.

(5)    'Information technology' means electronic data processing goods and services, telecommunications goods and services, information security goods and services, information management, microprocessors, software, information processing, office systems, any services related to these, and consulting or other services for design or redesign of information technology supporting business processes.

(6)    'Office' means the Office of the State Chief Information Officer.

(7)    'Other state entity' means the General Assembly, the State Senate, the State House of Representatives, or any committee or instrumentality of the General Assembly, State Senate or State House of Representatives; the Judicial Branch; the Legislative Council; the Office of Legislative Printing, Information and Technology Systems; the South Carolina Public Service Authority; the South Carolina State Ports Authority; or any other state agency or department that is not a political subdivision or is not included in the definitions of a governmental body or exempted state agency.

(8)    'Political subdivision' means the counties, municipalities, school districts, special purpose districts, special service districts, commissioners of public works, and any other local governmental authority, board, commission, agency, department, or political body.

(9)    'Telecommunications' means the provision, transmission, conveyance, or routing of voice, data, video, or any other information or signals to a point, or between or among points, by or through any electronic, radio, or other medium or method now in existence or devised after this article takes effect. Telecommunications includes, but is not limited to, local telephone services, toll telephone services, telegraph services, teletypewriter services, teleconferencing services, private line services, channel services, Internet protocol telephony, cable services, and mobile telecommunications services, and includes all facilities and equipment performing these functions.

Section 1-3-320.    (A)    There is created the South Carolina Information Technology Advisory Council.

(B)    The advisory council consists of the following nine members:

(1)    two cabinet agency directors appointed by the Governor;

(2)    one noncabinet agency director appointed by the Governor upon recommendation of the president of the State Agency Directors Organization;

(3)    one representative of the state institutions of higher learning appointed by the Council of Public College and University Presidents;

(4)    two citizen members from the private sector appointed by the Governor;

(5)    one citizen member from the private sector appointed by the President of the Senate;

(6)    one citizen member from the private sector appointed by the Speaker of the House of Representatives; and

(7)    the State Chief Information Officer.

(C)    The State Chief Information Officer serves as chairman of the advisory council.

(D)    Appointed members serve at the pleasure of the appointing authority. Members who serve by virtue of an office serve on the advisory council while they hold that office.

(E)    Members serve without compensation, but citizen members of the advisory council are allowed the usual per diem and mileage as provided by law for members of boards, commissions, and committees while on official business of the advisory council.

(F)    The powers and duties of the advisory council include the following:

(1)    make recommendations for the coordinated statewide strategic plan for information technology prepared by the office;

(2)    make recommendations for the statewide strategic information technology directions, standards, and enterprise architecture prepared by the office;

(3)    make recommendations concerning a process to assess information technology plans and information technology projects as provided in Section 1-3-335(4);

(4)    make recommendations concerning the procedures developed by the office for the allocation and distribution of funds from the Information Technology Innovation Fund;

(5)    upon request of the State Chief Information Officer or the board, make recommendations concerning the advisability of granting governmental bodies exemptions from the requirements imposed by the Chief Information Officer as provided in this article;

(6)    upon request of the State Chief Information Officer or the board, make recommendations concerning the termination of any information technology project of a governmental body or governmental bodies; and

(7)    upon request of the board, may review decisions of the office concerning whether the information technology plans and projects of the governmental body conform to statewide information technology plans, strategies, and standards.

Section 1-3-325.    (A)    The State Information Technology Directors Committee is created to advise the State Chief Information Officer on matters relating to the development and implementation of information technology standards, policies, and procedures and facilitate the exchange of information among the information technology directors of governmental bodies. The committee includes representatives from governmental bodies and must be chosen in a manner and number determined by the State Chief Information Officer.

(B)    The State Chief Information Officer may establish other standing or ad hoc advisory committees to provide assistance relating to any other matters within the office's authority.

(C)    Members of the advisory committees appointed pursuant to subsections (A) and (B) are allowed the usual per diem and mileage as provided by law for members of boards, commissions, and committees while on official business of the committees. Members who are full-time state employees shall not receive per diem.

Section 1-3-330.    The powers and duties of the office include the following:

(1)    develop for approval by the board a coordinated statewide strategic plan for information technology;

(2)    develop for approval by the board statewide strategic information technology directions, standards, and enterprise architecture. These directions, standards, and architecture must include, but are not limited to, information related to the privacy and confidentiality of data collected and stored by governmental bodies, web site accessibility, and assistive technologies. The office shall implement necessary management processes to assure that governmental bodies fully comply with these directions, standards, and architecture;

(3)    develop policies and procedures for the effective management of information technology investments throughout their entire life cycles, including, but not limited to, project definition, procurement, development, implementation, operation, performance evaluation, and enhancement or retirement;

(4)    in cooperation with governmental bodies, evaluate the information technology of governmental bodies to determine whether the merger of information technology and related resources is justified by sound business principles including, but not limited to, efficiency, cost effectiveness, and cross agency information sharing. If the State Chief Information Officer and a governmental body or governmental bodies do not agree on a merger determination by the State Chief Information Officer, the governmental body or governmental bodies may seek a waiver from the determination by following the appeal process in Section 1-3-355;

(5)    plan and forecast future needs for information technology and conduct studies and surveys of organizational structures and best management practices of information technology systems and procedures;

(6)    evaluate the information technology plans and projects of governmental bodies to ensure that the plans and projects are consistent with statewide plans, strategies, and standards, including alignment with the state's business goals, investments, and other risk management policies;

(7)    assist the Secretary of Commerce in the development of information technology related industries in the State and the promotion of economic development initiatives based on information technology;

(8)    assist governmental bodies in the development of guidelines concerning the qualifications and training requirements of information technology related personnel;

(9)    secure all telecommunications equipment and services for governmental bodies under terms the office considers suitable and coordinate the supply of the equipment and services for use by governmental bodies;

(10)    operate and manage a state consolidated data center, and other appropriate data centers, to be used by governmental bodies under terms and conditions established by the office;

(11)    develop information technology applications and services for entities requesting them;

(12)    enter into agreements and contracts with governmental bodies, political subdivisions, and other state entities to provide and receive goods and services. The office may establish fee schedules to be collectible from governmental bodies and other state entities for services rendered and goods provided;

(13)    hire necessary personnel and assign them duties and powers as the office prescribes; and

(14)    exercise and perform other powers and duties as granted to it, imposed upon it by law or necessary to carry out the purposes in this article.

Section 1-3-335.    The office has the following additional powers and duties relating to planning and the management of information technology projects of governmental bodies:

(1)    oversee the development of any statewide and multi-agency information technology enterprise projects;

(2)    develop for board approval a process for approving the information technology plans of governmental bodies;

(3)    establish a methodology and process for conceiving, planning, scheduling, procuring, and providing appropriate oversight for information technology projects;

(4)    develop for the board's approval a process for approving information technology projects proposed by governmental bodies to ensure that all of these projects conform to statewide information technology plans, strategies, and standards, the information technology plan of the governmental body, and the project management methodology. Before initiating any information technology project proposed by a governmental body or governmental bodies that exceeds an amount set or adjusted by the board, but initially set at four hundred thousand dollars, the project must be approved, as provided in the approval process. Governmental bodies shall not artificially divide these projects so as to avoid the approval process;

(5)    monitor approved information technology projects. The office may modify and suspend any information technology project that is not in compliance with statewide information technology plans, strategies, and standards or that has not met the performance measures agreed to by the office and the sponsoring governmental body. Upon suspension of an information technology project, the State Chief Information Officer must submit to the board a recommended action plan at the board's next regularly scheduled meeting. The governmental body may respond to the State Chief Information Officer's recommended action plan when it is presented to the board. Upon notifying a governmental body and giving the governmental body an opportunity to be heard, the board may terminate projects upon recommendation of the State Chief Information Officer;

(6)    establish minimum qualifications and training standards for project managers; and

(7)    establish an information clearinghouse that identifies best practices and new developments and contains detailed information regarding the state's previous experiences with the development of information technology projects.

Section 1-3-340.    (A)    The office has the following additional powers and duties relating to telecommunications:

(1)    coordinate the various telecommunications facilities and services used by governmental bodies;

(2)    acquire, lease, construct, or organize facilities and equipment as necessary to deliver comprehensive telecommunications services in an efficient and cost-effective manner, and maintain these facilities and equipment;

(3)    provide technical assistance to governmental bodies in areas such as:

(a)    performing systems development services, including design, application programming, and maintenance;

(b)    conducting research and sponsoring demonstration projects pertaining to all facets of telecommunications; and

(c)    planning and forecasting for future needs in communications services.

(B)    If requested by a political subdivision, other state entity, or exempted state agency, the office may supply telecommunications goods and services to the political subdivision, other state entity, or exempted state agency under terms and conditions agreed upon by the office and the political subdivision, other state entity, or exempted state agency.

(C)    A governmental body shall not enter into an agreement or renew an existing agreement for telecommunications services or equipment unless approved by the office.

Section 1-3-345.    (A)    The office has the following additional powers and duties relating to information technology procurements by governmental bodies ensure that information technology procurements conform to statewide information technology plans, strategies, and standards.

(B)    If requested by a political subdivision, other state entity, or exempted state agency, the office may supply information technology goods and services to the political subdivision, other state entity, or exempted state agency under terms and conditions agreed upon by the office and the political subdivision, other state entity, or exempted state agency.

(C)    An exempted state agency must follow the requirements of the South Carolina Consolidated Procurement Code and related regulations in making information technology procurements.

Section 1-3-350.    The office has the following additional powers and duties relating to the security of government information and infrastructure:

(1)    to protect the state's critical information technology infrastructure and associated data systems if there is a major disaster, whether natural or otherwise, and to allow the services to the citizens of this State to continue if there is such an event, the office shall develop a Critical Information Technology Infrastructure Protection Plan which devises policies and procedures to provide for the confidentiality, integrity, and availability of, and to allow for alternative and immediate on-line access to data and information systems necessary to provide critical information to citizens and ensure the protection of state employees as they carry out their disaster-related duties. All governmental bodies of this State are directed to assist the office in the collection of data required for this plan;

(2)    to oversee, plan, and coordinate periodic security audits of governmental bodies regarding the protection of government information and information technology infrastructure. These security audits may include, but are not limited to, on-site audits as well as reviews of all written security procedures. The office may conduct the security audits or contract with a private firm or firms to conduct these security audits. Governmental bodies subject to a security audit shall cooperate fully with the entity designated to perform such audits.

Section 1-3-355.    (A)    Each governmental body is required to develop an information technology plan and submit the plan to the office for approval. The office may reject or require modification to those plans that do not conform to statewide information technology plans, strategies, and standards.

(B)    A governmental body or governmental bodies may seek a waiver from the standards, requirements, or merger determinations as provided in this article by submitting a request for a waiver to the State Chief Information Officer.

(C)    The State Chief Information Officer must consider the technological and financial impact on the State as a whole and on the specific governmental body or governmental bodies in making a determination regarding the waiver.

(D)    In deciding whether to grant the request or upon the request of the governmental body or governmental bodies, the State Chief Information Officer may seek a recommendation concerning the waiver from the advisory council.

(E)    If the State Chief Information Officer denies the request for a waiver, the governmental body or governmental bodies may seek review of the denial by the board. The governmental body or governmental bodies and State Chief Information Officer must present information concerning the waiver to the board, and the board may request a recommendation from the advisory council if one has not been previously obtained.

(F)    The board's decision concerning the waiver is final, but does not prohibit the governmental body or governmental bodies from seeking a subsequent waiver through the appeal process in this section upon a showing of substantial change in circumstances.

Section 1-3-360.    (A)    The Budget and Control Board shall provide, from funds appropriated for that purpose by the General Assembly, funds necessary to carry out all duties and responsibilities assigned to the office that are not reimbursable through a fee-for-service methodology. The office must deposit in a special account in the Office of the State Treasurer revenue received from providing goods and services to governmental bodies, political subdivisions, and other state entities. The revenue deposited in the account may be expended only for the costs of providing the goods and services, and these funds may be retained and expended for the same purposes.

(B)    There is created an Information Technology Innovation Fund. This fund must provide incentives to governmental bodies to implement enterprise initiatives and electronic government projects. Use of the fund must encourage governmental bodies to pursue innovative and creative approaches using technology that provides needed citizens' services more cost effectively and efficiently. The fund shall not be used to replace or offset appropriations for on-going technology expenditures and operations. The fund consists of those funds appropriated through the state budget process, grants, gifts, and other donations received by the State or otherwise available. The office, with the approval of the board, is responsible for developing appropriate procedures for the allocation and distribution of these funds."

B.        Section 1-11-430 of the 1976 Code is repealed.

C.        Section 11-35-1580(1) of the 1976 Code is amended to read:

"(1)    Information Technology Management Office. The Information Technology Management Office shall be is responsible for:

(a)    assessing the need for and use of information technology;

(b)    administering all procurement and contracting activities undertaken for governmental bodies involving information technology in accordance with this chapter; and

(c)(b)    providing for the disposal of all information technology property surplus to the needs of a using agency;

(d)    evaluating the use and management of information technology;

(e)    operating a comprehensive inventory and accounting reporting system for information technology;

(f)    developing policies and standards for the management of information technology in state government;

(g)    initiating a state plan for the management and use of information technology;

(h)    providing management and technical assistance to state agencies in using information technology; and

(i)        establishing a referral service for state agencies seeking technical assistance or information technology services."

D.    Section 1-3-240(C)(1) of the 1976 Code is amended by adding an appropriately numbered new item that reads:

"( )    Reserved State Inspector General;"

E.        Title 1 of the 1976 Code is amended by adding:

"Chapter 6

Office of the State Inspector General

Section 1-6-10.    As used in this title:

(1)    'Agency' means an authority, board, branch, commission, committee, department, division, or other instrumentality of the executive department of state government, including administrative bodies. 'Agency' includes a body corporate and politic established as an instrumentality of the State. 'Agency' does not include:

(a)    the judicial department of state government;

(b)    the legislative department of state government; or

(c)    a political subdivision.

(2)    'Business relationship' means dealings of a person with an agency seeking, obtaining, establishing, maintaining, or implementing:

(a)    a pecuniary interest in a contract or purchase with the agency; or

(b)    a license or permit requiring the exercise of judgment or discretion by the agency.

(3)    'Employee' means an individual who is employed by an agency on a full-time, part-time, temporary, intermittent, or hourly basis. 'Employee' includes an individual who contracts with an agency for personal services.

(4)    'Person' means:

(a)    an individual, labor union and organization, joint apprenticeship committee, partnership, association, corporation, legal representative, mutual company, joint-stock company, trust, unincorporated organization, trustee, trustee in bankruptcy, receiver, or other legal or commercial entity located in part or in whole in the State or doing business in the State;

(b)    the State and any agency or local subdivision of an agency; or

(c)    a political subdivision.

(5)    'Political subdivision' includes a county, city, municipality, town, village, township, district, authority, special purpose district, school district, other local government entity, or other public corporation or entity whether organized and existing under charter or general law.

(6)    'Special state appointee' means a person who is:

(a)    not a state officer or employee; and

(b)    elected or appointed to an authority, a board, a commission, a committee, a council, a task force, or other body designated by any name that:

(i)        is authorized by statute or executive order; and

(ii)        functions in a policy or an advisory role in the executive, including the administrative, department of state government, including a separate body corporate and politic.

(7)    'State officer' means any of the following:

(a)    the Governor;

(b)    the Lieutenant Governor;

(c)    the Secretary of State;

(d)    the State Comptroller General;

(e)    the State Treasurer;

(f)    the Attorney General;

(g)    the Superintendent of Education;

(h)    the Commissioner of Agriculture;

(i)        the Adjutant General; or

(j)        the Director of the Department of Insurance.

Section 1-6-20.    (A)    There is hereby established the office of the State Inspector General which consists of the State Inspector General, who is the director of the office, and any staff of deputy inspectors general, investigators, auditors, and clerical employees employed by the State Inspector General as necessary to carry out the duties of the State Inspector General and as are authorized by statute. The office of the State Inspector General is part of the Department of Administration; however, the State Inspector General answers directly to the Governor and the office for the State Inspector General must be located in a facility that does not compromise the integrity or confidentiality of the work of the office. The State Inspector General shall fix the salaries of all staff subject to the approval of the Budget and Control Board and to the funds authorized in the annual general appropriation act.

(B)    The State Inspector General is responsible for:

(1)    deterring, detecting, preventing, and eradicating fraud, waste, misconduct, and abuse in the programs, operations, and contracting of all agencies of the state government;

(2)    keeping the heads of agencies and the Governor fully informed about problems, errors, omissions, misconduct, and deficiencies relating to or arising out of the administration of programs, operations, and contracting in executive agencies;

(3)    providing leadership, coordination, and control over satellite inspector general offices in designated agencies to ensure a coordinated and efficient administration of duties and use of staff;

(4)    identifying and reporting prevention opportunities identified in their work, and for Office of Inspector General managers to refer these to appropriate officials;

(5)    orienting public or private program personnel to systemic weaknesses in their programs and operations;

(6)    reviewing and commenting on initial designs of new programs and operations;

(7)    analyzing audits, investigations, and identify trends and patterns;

(8)    developing education and training programs to build the capacity of public officials and others to operate efficiently, effectively, and ethically; and

(9)    developing an effective means for tracking recommendations.

(C)    The Governor shall appoint the State Inspector General with the advice and consent of the Senate for a term of six years. A Governor may reappoint the State Inspector General for an additional term. The State Inspector General's compensation must not be reduced during the State Inspector General's uninterrupted continued tenure in office.

(D)    The State Inspector General:

(1)    may only be removed from office by the Governor as provided in Section 1-3-240(C);

(2)    must be an attorney or certified public accountant licensed in South Carolina; and

(3)    is entitled to receive compensation set by the Governor and approved by the Budget and Control Board.

(E)    Except for information declared confidential under this chapter, records of the office of the State Inspector General are subject to public inspection under Section 30-4-10 et seq.

(F)    A state employee who makes a good faith allegation of wrongdoing to the office of the State Inspector General pursuant to or leading to an investigation by the office is entitled to all of the protections of and subject to the requirements of Chapter 27, Title 8.

Section 1-6-30.    (A)    The State Inspector General must:

(1)    promote integrity and efficiency in executive agencies;

(2)    initiate, supervise, and coordinate investigations authorized by this chapter;

(3)    conduct joint investigations and projects with other oversight or law enforcement agencies;

(4)    recommend policies and carry out other activities designed to deter, detect, and eradicate fraud, waste, abuse, mismanagement, and misconduct in state government;

(5)    audit, inspect, evaluate, and investigate the activities, records, and individuals affiliated with contracts and procurements undertaken by an executive branch entity and any other official act or function of that governmental entity;

(6)    receive complaints alleging a violation of a statute or rule relating to the purchase of goods or services by a current or former employee, state officer, special state appointee, or person who has a business relationship with an agency;

(7)    recoup the cost of investigations from nongovernmental entities involved in willful misconduct;

(8)    issue public reports;

(9)    attend pertinent meetings held by executive branch agencies;

(10)    refer matters to the heads of executive agencies whenever the State Inspector General determines that disciplinary or other administrative action is appropriate;

(11)    provide advice to an agency on developing, implementing, and enforcing policies and procedures to prevent or reduce the risk of fraudulent or wrongful acts within the agency;

(12)    recommend legislation to the Governor and General Assembly to strengthen public integrity laws;

(13)    annually submit a report to the Governor, President Pro Tempore of the Senate, and Speaker of the House of Representatives detailing the State Inspector General's activities; and

(14)    adopt rules, regulations, and procedures for administering the office of the State Inspector General.

(B)    The Office of Inspector General and the State Inspector General are authorized and directed to take any lawful action that is necessary and proper for the discharge of their duties and responsibilities under this chapter.

Section 1-6-40.    If the State Inspector General has reasonable cause to believe that a crime has occurred or is occurring, he must report the suspected crime to:

(1)    the Governor; and

(2)    any appropriate state or federal law enforcement agencies and prosecuting authorities that have jurisdiction over the matter.

Section 1-6-50.    The State Inspector General has the following powers:

(A)    As part of an investigation, the State Inspector General may:

(1)    administer oaths;

(2)    examine witnesses under oath;

(3)    issue subpoenas and subpoenas duces tecum; and

(4)    examine the records, reports, audits, reviews, papers, books, recommendations, contracts, correspondence, or any other documents maintained by an agency.

(B)    The State Inspector General may apply to a circuit court for an order holding an individual in contempt of court if the individual refuses to give sworn testimony under a subpoena issued by the State Inspector General or otherwise disobeys a subpoena or subpoena duces tecum issued by the State Inspector General.

(C)    The State Inspector General must prepare a report summarizing the results of every investigation. The report is confidential in accordance with Section 1-6-90.

Section 1-6-60.    If the State Inspector General investigates and determines that there is specific and credible evidence that a current or former employee, a current or former state officer, a current or former special state appointee, or a person who has or had a business relationship with an agency has violated Chapter 8 of Title 13, the State Inspector General may file a complaint with the Ethics Commission and represent the State in any proceeding before the Ethics Commission.

Section 1-6-70.    (A)    This section applies if the State Inspector General finds evidence of misfeasance, malfeasance, nonfeasance, misappropriation, fraud, or other misconduct that has resulted in a financial loss to the State or in an unlawful benefit to an individual in the conduct of state business.

(B)    If the State Inspector General finds evidence described in subsection (A), the State Inspector General shall certify a report of the matter to the Attorney General and provide the Attorney General with any relevant documents, transcripts, or written statements. Not later than one hundred eighty days after receipt of the report from the State Inspector General, the Attorney General may do one of the following:

(1)    file a civil action, including an action upon a state officer's official bond, to secure for the State the recovery of funds misappropriated, diverted, missing, or unlawfully gained. Upon request of the Attorney General, the State Inspector General shall assist the Attorney General in the investigation, preparation, and prosecution of the civil action;

(2)    inform the State Inspector General that the Attorney General does not intend to file a civil action for the recovery of funds misappropriated, diverted, missing, or unlawfully gained. If the Attorney General elects not to file a civil action, the Attorney General must return to the State Inspector General all documents and files initially provided by the State Inspector General; or

(3)    inform the State Inspector General that the Attorney General is diligently investigating the matter and after further investigation may file a civil action for the recovery of funds misappropriated, diverted, missing, or unlawfully gained. However, if more than three hundred sixty-five days have passed since the State Inspector General certified the report to the Attorney General and the Attorney General has neither filed a civil action or informed the State Inspector General that he does not intend to file a civil action, the Attorney General loses the authority to file a civil action for the recovery of funds misappropriated, diverted, missing, or unlawfully gained and must return to the State Inspector General all documents and files initially provided by the State Inspector General.

(C)    The State Inspector General may file a civil action for the recovery of funds misappropriated, diverted, missing, or unlawfully gained if the State Inspector General has found evidence described in subsection (A) and reported to the Attorney General under subsection (B) and:

(1)    the Attorney General has elected under subsection (B)(2) not to file a civil action for the recovery of funds misappropriated, diverted, missing, or unlawfully gained; or

(2)    under subsection (B)(3), more than three hundred sixty-five days have passed since the State Inspector General certified the report to the Attorney General under subsection (B) and the Attorney General has not filed a civil action.

(D)    If the State Inspector General has found evidence described in subsection (A), the State Inspector General may institute forfeiture proceedings as allowed by law in a court having jurisdiction in a county where property derived from or realized through the misappropriation, diversion, disappearance, or unlawful gain of state funds is located, unless a prosecuting attorney has already instituted forfeiture proceedings against that property.

(E)    If the Attorney General has elected not to file a civil action for the recovery of funds misappropriated, diverted, missing, or unlawfully gained, the State Inspector General may file a civil action for the recovery of the funds in accordance with Section 1-6-70 of this chapter.

Section 1-6-80.    (A)    If the State Inspector General discovers evidence of criminal activity, the State Inspector General shall certify to the appropriate prosecuting attorney the following information:

(1)    the identity of any person who may be involved in the criminal activity; and

(2)    the criminal statute that the State Inspector General believes has been violated.

(B)    In addition, the State Inspector General must provide the prosecuting attorney with any relevant documents, transcripts, or written statements. If the prosecuting attorney decides to prosecute the crime described in the information certified to the prosecuting attorney, or any other related crimes, the State Inspector General must cooperate with the prosecuting attorney in the investigation and prosecution of the case. Upon request of the prosecuting attorney, the State Inspector General may participate on behalf of the State in any resulting criminal trial.

Section 1-6-90.    (A)    If any individual discloses information alleging a violation of a state or federal statute, rule, regulation, or ordinance in good faith to the State Inspector General, the individual's identity is confidential and must not be disclosed to anyone other than the Governor, the staff of the Office of the State Inspector General, or an authority to whom the investigation is subsequently referred or certified, unless:

(1)    the State Inspector General makes a written determination that it is in the public interest to disclose the individual's identity; or

(2)    the individual consents in writing to disclosure of the individual's identity.

(B)    After an investigation is completed and a report is issued as provided in Section 1-6-50(C), the investigative records of the State Inspector General are subject to public inspection under the provisions of Section 30-4-15 et seq. However, if an individual's identity is confidential as provided in subsection (A), the individual' s identity or any information that reasonably might lead to the discovery of the individual's identity must not be disclosed except as provided in subsection (A) or subsection (E).

(C)    This subsection does not apply to a person who is a party to an action brought by the State Inspector General. Information received by the State Inspector General is not required to be produced in the course of discovery unless ordered by a court after a showing of particularized need and proof that the information requested cannot be obtained from any other source.

(D)    Except as provided in subsection (E), a person commits the misdemeanor of unlawful disclosure of confidential information if he knowingly or intentionally discloses:

(1)    confidential information or records; or

(2)    the identity of a person whose identity is confidential under subsection (A).

(E)    A person may disclose confidential information, records, or an individual's identity that is confidential under subsection (A) if the Governor authorizes the disclosure of this information in the public interest."

Part III

Legislative Oversight of Executive Departments

SECTION    5.    A.    Section 8-27-10(4) of the 1976 Code is amended to read:

"(4)    'Report' means:

(a)    a written document alleging a written or oral allegation of waste or wrongdoing that contains the following information:

(ai)        the date of disclosure;

(bii)        the name of the employee making the report; and

(ciii)        the nature of the wrongdoing and the date or range of dates on which the wrongdoing allegedly occurred. A report must be made within sixty days one hundred eighty days of the date the reporting employee first learns of the alleged wrongdoing.; or

(b)    sworn testimony regarding wrongdoing, regardless of when the wrongdoing allegedly occurred, given to any standing committee, subcommittee of a standing committee, or study committee of the Senate or the House of Representatives."

B.        Chapter 27 of Title 8 of the 1976 Code is amended by adding:

"Section 8-27-60.    Each public body must make a summary of this chapter available on the public body's Internet website. The summary must include an explanation of the process required to report wrongdoing, an explanation of what constitutes wrongdoing, and a description of the protections available to an employee who reports wrongdoing. If the public body does not maintain an Internet website, the public body must annually provide a written summary of this chapter to its employees and maintain copies of the summary at all times."

C.        Title 2 of the 1976 Code is amended by adding:

"Chapter 2

Legislative Oversight of Executive Departments

Section 2-2-5.    The General Assembly finds and declares the following to be the public policy of the State of South Carolina:

(1)    Section 1 of Article XII of the State Constitution requires the General Assembly to provide for appropriate agencies to function in the areas of health, welfare, and safety and to determine the activities, powers, and duties of these agencies and departments.

(2)    This constitutional duty is a continuing and ongoing obligation of the General Assembly that is best addressed by periodic review of the of the programs of the agencies and departments and their responsiveness to the needs of the state's citizens by the standing committees of the State Senate or House of Representatives.

Section 2-2-10.    As used in this chapter:

(1)    'Agency' means an authority, board, branch, commission, committee, department, division, or other instrumentality of the executive or judicial departments of state government, including administrative bodies. 'Agency' includes a body corporate and politic established as an instrumentality of the State. 'Agency' does not include:

(a)    the legislative department of state government; or

(b)    a political subdivision.

(2)    'Investigating committee' means any standing committee or subcommittee of a standing committee exercising its authority to conduct an oversight study and investigation of an agency within the standing committee's subject matter jurisdiction.

(3)    'Program evaluation report' means a report compiled by an agency at the request of an investigating committee that may include, but is not limited to, a review of agency management and organization, program delivery, agency goals and objectives, compliance with its statutory mandate, and fiscal accountability.

(4)    'Request for information' means a list of questions that an investigating committee serves on a department or agency under investigation. The questions may relate to any matters concerning the department or agency's actions that are the subject of the investigation.

(5)    'Standing committee' means a permanent committee with a regular meeting schedule and designated subject matter jurisdiction that is authorized by the Rules of the Senate or the Rules of the House of Representatives.

Section 2-2-20.    (A)    Beginning January 1, 2009, each standing committee must conduct oversight studies and investigations on all agencies within the standing committee's subject matter jurisdiction at least once every five years in accordance with a schedule adopted as provided in this chapter.

(B)    The purpose of these oversight studies and investigations is to determine if agency laws and programs within the subject matter jurisdiction of a standing committee:

(1)    are being implemented and carried out in accordance with the intent of the General Assembly; and

(2)    should be continued, curtailed, or eliminated.

(C)    The oversight studies and investigations must consider:

(1)    the application, administration, execution, and effectiveness of laws and programs addressing subjects within the standing committee's subject matter jurisdiction;

(2)    the organization and operation of state agencies and entities having responsibilities for the administration and execution of laws and programs addressing subjects within the standing committee's subject matter jurisdiction; and

(3)    any conditions or circumstances that may indicate the necessity or desirability of enacting new or additional legislation addressing subjects within the standing committee's subject matter jurisdiction.

Section 2-2-30.    (A)    The procedure for conducting the oversight studies and investigations is provided in this section.

(B)(1)    The President Pro Tempore of the Senate, upon consulting with the chairmen of the standing committees in the Senate and the Clerk of the Senate, shall determine the agencies for which each standing committee must conduct oversight studies and investigations. A proposed five-year review schedule must be published in the Senate Journal on the first day of session each year.

(2)    In order to accomplish the requirements of this chapter, the chairman of each standing committees must schedule oversight studies and investigations for the agencies for which his standing committee is the investigating committee and may:

(a)    coordinate schedules for conducting oversight studies and investigations with the chairmen of other standing committees; and

(b)    appoint joint investigating committees to conduct the oversight studies and investigations, including but not limited to joint committees of the Senate and House of Representatives or joint standing committees of concurrent subject matter jurisdiction within the Senate or within the House of Representatives.

(3)    Chairmen of standing committees having concurrent subject matter jurisdiction over an agency or the programs and law governing an agency by virtue of the Rules of the Senate or Rules of the House of Representatives, may request that a joint investigating committee be appointed to conduct the oversight study and investigation for an agency.

(C)(1)    The Speaker of the House of Representatives, upon consulting with the chairmen of the standing committees in the House of Representatives and the Clerk of the House of Representatives, shall determine the agencies for which each standing committee must conduct oversight studies and investigations. A proposed five-year review schedule must be published in the House Journal on the first day of session each year.

(2)    In order to accomplish the requirements of this chapter, the chairman of each standing committees must schedule oversight studies and investigations for the agencies for which his standing committee is the investigating committee and may:

(a)    coordinate schedules for conducting oversight studies and investigations with the chairmen of other standing committees; and

(b)    appoint joint investigating committees to conduct the oversight studies and investigations, including, but not limited to, joint committees of the Senate and House of Representatives or joint standing committees of concurrent subject matter jurisdiction within the Senate or within the House of Representatives.

(3)    Chairmen of standing committees having concurrent subject matter jurisdiction over an agency or the programs and law governing an agency by virtue of the Rules of the Senate or Rules of the House of Representatives, may request that a joint investigating committee be appointed to conduct the oversight study and investigation for the agency.

(D)    The chairman of an investigating committee may vest the standing committee's full investigative power and authority in a subcommittee. A subcommittee conducting an oversight study and investigation of an agency: (1) must make a full report of its findings and recommendations to the standing committee at the conclusion of its oversight study and investigation, and (2) must not consist of fewer than three members.

Section 2-2-40.    (A)    In addition to the scheduled five-year oversight studies and investigations, a standing committee of the Senate or the House of Representatives may by one-third vote of the standing committee's membership initiate an oversight study and investigation of an agency within its subject matter jurisdiction. The motion calling for the oversight study and investigation must state the subject matter and scope of the oversight study and investigation. The oversight study and investigation must not exceed the scope stated in the motion or the scope of the information uncovered by the investigation.

(B)    Nothing in the provisions of this chapter prohibits or restricts the President Pro Tempore of the Senate, the Speaker of the House of Representatives, or chairmen of standing committees from fulfilling their constitutional obligations by authorizing and conducting legislative investigations into agencies' functions, duties, and activities.

Section 2-2-50.    When an investigating committee conducts an oversight study and investigation or a legislative investigation is conducted pursuant to Section 2-2-40(B), evidence or information related to the investigation may be acquired by any lawful means, including, but not limited to:

(A)    serving a request for information on the agency being studied or investigated. The request for information must be answered separately and fully in writing under oath and returned to the investigating committee within forty-five days after being served upon the department or agency. The time for answering a request for information may be extended for a period to be agreed upon by the investigating committee and the agency for good cause shown. The head of the department or agency must sign the answers verifying them as true and correct. If any question contains a request for records, policies, audio or video recordings, or other documents, the question is not considered to have been answered unless a complete set of records, policies, audio or video recordings or other documents is included with the answer;

(B)    deposing witnesses upon oral examination. A deposition upon oral examination may be taken from any person that the investigating committee has reason to believe has knowledge of the activities under investigation. The investigating committee must provide the person being deposed and the agency under investigation with no less than ten days notice of the deposition. The notice to the agency shall state the time and place for taking the deposition and name and address of each person to be examined. If a subpoena duces tecum is to be served on the person to be examined, the designation of the materials to be produced as set forth in the subpoena must be attached to or included in the notice. The deposition must be taken under oath administered by the chairman of the investigating committee or his designee. The testimony must be taken stenographically or recorded by some other means and may be videotaped. A person may be compelled to attend a deposition in the county in which he resides or in Richland County;

(C)    issuing subpoenas and subpoenas duces tecum pursuant to Title 2, Chapter 69; and

(D)    requiring the agency to prepare and submit to the investigating committee a program evaluation report by a date specified by the investigating committee. The investigating committee must specify the agency program or programs or agency operations that it is studying or investigating and the information to be contained in the program evaluation report.

Section 2-2-60.    (A)    An investigating committee's request for a program evaluation report must contain:

(1)    the agency program or operations that it intends to investigate;

(2)    the information that must be included in the report; and

(3)    the date that the report must be submitted to the committee.

(B)    An investigating committee may request that the program evaluation report contain any of the following information:

(1)    enabling or authorizing law or other relevant mandate, including any federal mandates;

(2)    a description of each program administered by the agency identified by the investigating committee in the request for a program evaluation report, including the following information:

(a)    established priorities, including goals and objectives in meeting each priority;

(b)    performance criteria, timetables, or other benchmarks used by the agency to measure its progress in achieving its goals and objectives;

(c)    an assessment by the agency indicating the extent to which it has met the goals and objectives, using the performance criteria. When an agency has not met its goals and objectives, the agency shall identify the reasons for not meeting them and the corrective measures the agency has taken to meet them in the future;

(3)    organizational structure, including a position count, job classification, and organization flow chart indicating lines of responsibility;

(4)    financial summary, including sources of funding by program and the amounts allocated or appropriated and expended over the last ten years;

(5)    identification of areas where the agency has coordinated efforts with other state and federal agencies in achieving program objectives and other areas in which an agency could establish cooperative arrangements, including, but not limited to, cooperative arrangements to coordinate services and eliminate redundant requirements;

(6)    identification of the constituencies served by the agency or program, noting any changes or projected changes in the constituencies;

(7)    a summary of efforts by the agency or program regarding the use of alternative delivery systems, including privatization, in meeting its goals and objectives;

(8)    identification of emerging issues for the agency;

(9)    a comparison of any related federal laws and regulations to the state laws governing the agency or program and the rules implemented by the agency or program;

(10)    agency policies for collecting, managing, and using personal information over the Internet and non-electronically, information on the agency's implementation of information technologies;

(11)    a list of reports, applications, and other similar paperwork required to be filed with the agency by the public. The list must include:

(a)    the statutory authority for each filing requirement;

(b)    the date each filing requirement was adopted or last amended by the agency;

(c)    the frequency that filing is required;

(d)    the number of filings received annually for the last five years and the number of anticipated filings for the next five years;

(e)    a description of the actions taken or contemplated by the agency to reduce filing requirements and paperwork duplication;

(12)    any other relevant information specifically requested by the investigating committee.

(C)    All information contained in a program evaluation report must be presented in a concise and complete manner.

(D)    The chairman of the investigating committee may direct the Legislative Audit Council to perform a study of the program evaluation report and report its findings to the investigating committee. The chairman also may direct the Legislative Audit Council to perform its own audit of the program or operations being studied or investigated by the investigating committee.

(E)    A state agency that is vested with revenue bonding authority may submit annual reports and annual external audit reports conducted by a third party in lieu of a program evaluation report.

Section 2-2-70.    All testimony given to the investigating committee must be under oath.

Section 2-20-80.    Any witness testifying before or deposed by the investigating committee may have counsel present to advise him. The witness or his counsel may, during the time of testimony or deposition, object to any question detrimental to the witness' interests and is entitled to have a ruling by the chairman on any objection. In making his ruling, the chairman of the investigating committee shall follow as closely as possible the procedures and rules of evidence observed by the circuit courts of this State.

Section 2-20-90.    A witness shall be given the benefit of any privilege which he may have claimed in court as a party to a civil action."

Part IV

Conforming and Miscellaneous Amendments

SECTION    6.    A.    Section 1-10-10 of the 1976 Code is amended to read:

"Section 1-10-10.    (A)    As of 12:00 noon on the effective date of this act, and permanently thereafter, the only flags authorized to be flown atop the dome of the State House, in the chambers of the Senate and House of Representatives, and on the grounds of the Capitol Complex shall be as authorized in this section.

The flags authorized to be flown atop the dome of the State House and in the chambers of the Senate and House of Representatives are the United States Flag and the South Carolina State Flag. As of 12:00 noon on the effective date of this act, the flag authorized to be flown at a designated location on the grounds of the Capitol Complex is the South Carolina Infantry Battle Flag of the Confederate States of America [the Battle Flag of the Army of Northern Virginia (General Robert E. Lee's Army) the South Carolina, Georgia, Florida Department version]. This flag must be flown on a flagpole located at a point on the south side of the Confederate Soldier Monument, centered on the monument, ten feet from the base of the monument at a height of thirty feet. The flagpole on which the flag is flown and the area adjacent to the monument and flagpole must be illuminated at night and an appropriate decorative iron fenceNext must be erected around the flagpole.

The South Carolina Infantry Battle Flag of the Confederate States of America is square measuring fifty-two inches on each side, inclusive of the white border, with a St. Andrews Cross of blue, edged with white, with thirteen equal five-pointed stars, upon a red field, with the whole banner bordered in white. The blue arms of the cross are 7.5 inches wide and the white border around the flag proper is 1.5 inches wide. The stars are five-pointed, inscribed within a circle six inches in diameter, and are uniform in size.

From any funds appropriated to the Budget and Control Board, the Division of General Services of the Budget and Control Board, or its successor in interest, shall ensure that the flags authorized above shall be placed at all times as directed in this section and shall replace the flags at appropriate intervals as may be necessary due to wear.

(B)    The provisions of this section may only be amended or repealed upon passage of an act which has received a two-thirds vote on the third reading of the bill in each branch of the General Assembly.

(C)    The term 'chambers' of the House or Senate for the purposes of this section does not include individual members' offices. The provisions of this section do not prohibit a private individual on the capitol complex grounds from wearing as a part of his clothing or carrying or displaying any type of flag including a Confederate Flag."

B.        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 divisions, the Finance Division (embracing the work of the State Auditor, the former State Budget Commission, the former State Finance Committee and the former Board of Claims for the State of South Carolina), the Purchasing and Property Division (embracing the work of the former Commissioners of the Sinking Fund, the former Board of Phosphate Commissioners, the State Electrician and Engineer, the former Commission on State House and State House Grounds, the central purchasing functions, the former Surplus Procurement Division of the State Research, Planning and Development Board and the Property Custodian) and the Division of Personnel Administration (embracing the work of the former retirement board known as the South Carolina Retirement System and the administration of all laws relating to personnel), each division to consist of a director and clerical, stenographic and technical employees necessary, to be employed by the respective directors with the approval of the board. The directors of the 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)(1)    Notwithstanding subsection (A), as of July 1, 2011, the following offices or divisions of the State Budget and Control Board as specified in Section 1-30-125 are transferred to, and incorporated into, the South Carolina Department of Administration:

(a)    the following components of the Division of General Services:

(i)        Facilities Management;

(ii)    Business Services together with Fleet Management; and

(iii)    the portion of Property Services that provides maintenance and management;

(b)    Office of Human Resources;

(c)    Procurement Services Division of the State Budget and Control Board;

(d)    State Energy Office as established by Section 48-52-410; and

(e)    Division of State Chief Information Officer of the State Budget and Control Board.

(2)    Notwithstanding another provision of law, if the State Budget and Control Board maintains any responsibility related to a program administered by the Department of Administration, whether the responsibility is regulatory, oversight, approval, or other, the board may 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.

(3)    The Department of Administration shall use the existing resources of each division transferred to the department including, but not limited to, funding, personnel, equipment, and supplies to carry out each division's responsibilities. 'Funding' means state, federal, and other funds. Vacant FTE's at the State Budget and Control Board also may be used to fill needed positions at the department. No new FTE's may be assigned to the department without authorization from the General Assembly.

(C)    Notwithstanding subsection (A), as of July 1, 2011, the State Budget and Control Board also contains an additional division, known as the State House, Legislative, and Judicial Facilities Operations Division, responsible for the operations and management of the State House, all office buildings in the State Capitol Complex and the grounds and parking facilities of the Capitol Complex, and additional centrally located buildings including the Supreme Court Building and parking lot, Main Street parking lot, Pendleton Street parking lots, Assembly Street parking deck, College Street Energy Facility. As of July 1, 2011, all state-owned buildings and parking facilities occupied by a Budget and Control Board program shall be managed by the State House, Legislative, and Judicial Facilities Operations. The division shall use existing resources in the General Services Division and the State Budget and Control Board including, but not limited to, funding, personnel, equipment, supplies, and tools to carry out the responsibilities of the division. No new FTE's may be assigned to the State House, Legislative, and Judicial Facilities Operations Division without authorization from the General Assembly. The division also shall divide or share, or both, existing equipment, tools, and supplies with the General Services Division to carry out the responsibilities of the division. The division shall not purchase new equipment, tools, or supplies unless approved by the Executive Director of the State Budget and Control Board."

C.        Section 1-11-22 of the 1976 Code is amended to read:

"Section 1-11-22.    (A)    Notwithstanding any other provision of law, the Budget and Control Board may organize its staff as it deems considers most appropriate to carry out the various duties, responsibilities and authorities assigned to it and to its various divisions and management and organizational entities.

(B)    To the extent that any provision of law divides any responsibilities of any division, office, or program of the Budget and Control Board between the board and one or more state agencies, the transfer must not proceed until a realignment plan for the allocation of staff, assets, and resources is prepared and presented by the board's executive director, and approved by the board. Upon the board's approval, the Office of the Executive Director must provide for the allocation as specified in the realignment plan as soon as practicable.

(C)    Notwithstanding any other provision of law, wherever the Budget and Control Board maintains any responsibility related to a program administered by the Department of Administration, whether the responsibility be regulatory, oversight, approval, or other, the board is authorized to 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."

D.        Sections 1-11-55 through 1-11-58 of the 1976 Code are amended to read:

"Section 1-11-55.    (1)    'Governmental body' means a state government department, commission, council, board, bureau, committee, institution, college, university, technical school, legislative body, government corporation, or other establishment or official of the executive, judicial, or legislative branches branch of this State. Governmental body excludes the General Assembly, Legislative Council, the Office of Legislative Printing, Information and Technology Systems, the Judicial Department, and all local political subdivisions such as counties, municipalities, school districts, or public service or special purpose districts.

(2)(a)    The Budget and Control Board is hereby designated as the single central broker for the leasing of real property for governmental bodies. No governmental body shall enter into any lease agreement or renew any existing lease except in accordance with the provisions of this section.

(b)    The Budget and Control Board must not assess any rent, additional rent, energy surcharges, or Internet or Metronet service charges to the General Assembly, the State Senate, the State House of Representatives, or any committee or instrumentality of the General Assembly, the Senate, or House of Representatives; the Judicial Department; Legislative Council; or the Office of Legislative Printing, Information and Technology Systems.

(3)    When any governmental body needs to acquire real property for its operations or any part thereof and state-owned property is not available, it shall notify the Office of General Services board of its requirement on rental request forms prepared by the office. Such forms shall indicate the amount and location of space desired, the purpose for which it shall be used, the proposed date of occupancy and such other information as General Services the board may require. Upon receipt of any such request, General Services the board shall conduct an investigation of available rental space which would adequately meet the governmental body's requirements, including specific locations which may be suggested and preferred by the governmental body concerned. When suitable space has been located which the governmental body and the office board agree meets necessary requirements and standards for state leasing as prescribed in procedures of the board as provided for in subsection (5) of this section, General Services the board shall give its written approval to the governmental body to enter into a lease agreement. All proposed lease renewals shall be submitted to General Services the board by the time specified by General Services the board.

(4)    The board shall adopt procedures to be used for governmental bodies to apply for rental space, for acquiring leased space, and for leasing state-owned space to nonstate lessees.

(5)    Any participant in a property transaction proposed to be entered who maintains that a procedure provided for in this section has not been properly followed, may request review of the transaction by the Director executive director of the Office of General Services board or his designee.

Section 1-11-56.    The State Budget and Control Board, in an effort to ensure that funds authorized and appropriated for rent are used in the most efficient manner, is directed to develop a program to manage the leasing of all public and private space of state agencies. The board's regulations, upon General Assembly approval, shall include procedures for:

(1)    assessing and evaluating agency needs, including the authority to require agency justification for any request to lease public or private space;

(2)    establishing standards for the quality and quantity of space to be leased by a requesting agency;

(3)    devising and requiring the use of a standard lease form (approved by the Attorney General) with provisions which assert and protect the state's prerogatives including, but not limited to, a right of cancellation in the event of:

(a)    a nonappropriation for the renting agency,

(b)    a dissolution of the agency, and

(c)    the availability of public space in substitution for private space being leased by the agency;

(4)    rejecting an agency's request for additional space or space at a specific location, or both;

(5)    directing agencies to be located in public space, when available, before private space can be leased;

(6)    requiring the agency to submit a multi-year financial plan for review by the board's budget office with copies sent to Ways and Means Committee and Senate Finance Committee, before any new lease for space is entered into; and requiring prior review by the Joint Bond Review Committee and the requirement of Budget and Control Board approval before the adoption of any new lease that commits more than one million dollars in a five-year period; and

(7)    requiring prior review by the Joint Bond Review Committee and the requirement of Budget and Control Board approval before the adoption of any new lease that commits more than one million dollars in a five-year period.

Section 1-11-57.    (1)    All transactions involving the exchange of title to real property, made for or by any governmental bodies, excluding political subdivisions of the State, must be approved by and recorded with the State Budget and Control Board. Upon approval of an acquisition of title by any governmental body by the Budget and Control Board, there must be recorded simultaneously with the deed, a certificate of acceptance, which acknowledges the board's approval of the acquisition. The county recording authority cannot accept for recording any deed not accompanied by a certificate of acceptance. The board may exempt a governmental body from the provisions of this subsection.

(2)    All state agencies, departments, and institutions authorized by law to accept gifts of tangible personal property shall have executed by its governing body an acknowledgment of acceptance prior to transfer of the tangible personal property to the agency, department, or institution.

(3)    Except for any properties where the board determines title should not be in the name of the State because the properties are subject to reverter clauses or other restraints on the property, or where the board determines the state would be best served by not receiving title, and with the exception of properties, highways, and roadways owned by the Department of Transportation, title of any property acquired by a state agency or department shall be titled in the name of the State under the control of the board. This provision applies to all state agencies and departments except institutions of higher learning, the Public Service Authority, the Ports Authority, the Medical University of South Carolina Hospital Authority, the Myrtle Beach Air Force Redevelopment Authority, the Department of Transportation, and the Charleston Naval Complex Redevelopment Authority.

Section 1-11-58.    (1)    Every state agency, as defined by Section 1-19-40, shall annually perform an inventory and prepare a report of all residential and surplus real property owned by it. The report shall be submitted to the State Budget and Control Board, Office of General Services, on or before June thirtieth and shall indicate current use, current value, and projected use of the property. Property not currently being utilized for necessary agency operations shall be made available for sale and funds received from the sale of the property shall revert to the general fund.

(2)    The Office of General Services will board shall review the annual reports addressing real property submitted to it and determine the real property which is surplus to the State. A central listing of such property will be maintained for reference in reviewing subsequent property acquisition needs of agencies.

(3)    Upon receipt of a request by an agency to acquire additional property, the Office of General Services board shall review the surplus property list to determine if the agency's needs can may be met from existing state-owned property. If such property is identified, the Office of General Services board shall act as broker in transferring the property to the requesting agency under terms and conditions that are mutually agreeable to the agencies involved.

(4)    The Budget and Control Board may authorize the Office of General Services to sell sale of any unassigned surplus real property. The Office of General Services board shall have the discretion to determine the method of disposal to be used, which possible methods include: auction, sealed bids, listing the property with a private broker or any other method determined by the Office of General Services board to be commercially reasonable considering the type and location of property involved."

E.        Section 1-11-65 of the 1976 Code is amended to read:

"Section 1-11-65.    (A)    All transactions involving real property, made for or by any governmental bodies, excluding political subdivisions of the State, must be approved by and recorded with the State Budget and Control Board. Upon approval of the transaction by the Budget and Control Board, there must be recorded simultaneously with the deed, a certificate of acceptance, which acknowledges the board's approval of the transaction. The county recording authority cannot accept for recording any deed not accompanied by a certificate of acceptance. The board may exempt a governmental body from the provisions of this subsection.

(B)    All state agencies, departments, and institutions authorized by law to accept gifts of tangible personal property shall have executed by its governing body an acknowledgment of acceptance prior to transfer of the tangible personal property to the agency, department, or institution.

(C)    Except for any properties where the board determines title should not be in the name of the State because the properties are subject to reverter clauses or other restraints on the property, or where the board determines the state would be best served by not receiving title, and with the exception of properties, highways, and roadways owned by the Department of Transportation, title of any property acquired by a state agency or department shall be titled in the name of the State under the control of the board. This provision applies to all state agencies and departments except institutions of higher learning, the Public Service Authority, the Ports Authority, the Medical University of South Carolina Hospital Authority, the Myrtle Beach Air Force Redevelopment Authority, the Department of Transportation, and the Charleston Naval Complex Redevelopment Authority."

F.        Chapter 11 of Title 1 of the 1976 Code is amended by adding:

"Section 1-11-185.    (A)    In addition to the powers granted the Budget and Control Board pursuant to this chapter or another provision of law, the board 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 Budget and Control Board may promulgate regulations necessary to carry out its duties.

(C)    The respective divisions of the Budget and Control Board 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."

G.    (1)    Section 1-11-220 of the 1976 Code is amended to read:

"Section 1-11-220.    There is hereby established within the Budget and Control Board South Carolina Department of Administration, the Division of Motor Vehicle Management General Services, Program of Fleet Management headed by a Director, hereafter referred to as the 'State Fleet Manager' appointed by and reporting directly to the Budget and Control Board department, hereafter referred to as the Board. The Board department shall develop a comprehensive state Fleet Management Program. The program shall address acquisition, assignment, identification, replacement, disposal, maintenance, and operation of motor vehicles.

The Budget and Control Board department shall, through their its policies and regulations, seek to achieve the following objectives:

(a)    to achieve maximum cost-effectiveness management of state-owned motor vehicles in support of the established missions and objectives of the agencies, boards, and commissions.;

(b)    to eliminate unofficial and unauthorized use of state vehicles.;

(c)    to minimize individual assignment of state vehicles.;

(d)    to eliminate the reimbursable use of personal vehicles for accomplishment of official travel when this use is more costly than use of state vehicles.;

(e)    to acquire motor vehicles offering optimum energy efficiency for the tasks to be performed.;

(f)    to insure ensure motor vehicles are operated in a safe manner in accordance with a statewide Fleet Safety Program."

(2)    Section 1-11-225 of the 1976 Code is amended to read:

"Section 1-11-225.    The Division of Operations South Carolina Department of Administration shall establish a cost allocation plan to recover the cost of operating the comprehensive statewide Fleet Management Program. The division shall collect, retain, and carry forward funds to ensure continuous administration of the program."

(3)    Sections 1-11-250, 1-11-260, 1-11-270(A), 1-11-280, 1-11-290; 1-11-300, 1-11-310, 1-11-315, 1-11-320; 1-11-335, and 1-11-340 of the 1976 Code are amended to read:

"Section 1-11-250.    For purposes of Sections 1-11-220 to 1-11-330:

(a)    'State agency' means all officers, departments, boards, commissions, institutions, universities, colleges, and all persons and administrative units of state government that operate motor vehicles purchased, leased, or otherwise held with the use of state funds, pursuant to an appropriation, grant or encumbrance of state funds, or operated pursuant to authority granted by the State.

(b)    'Board Department' means State Budget and Control Board the South Carolina Department of Administration.

Section 1-11-260.    (A)    The Fleet Manager shall report annually to the Budget and Control Board department and the General Assembly concerning the performance of each state agency in achieving the objectives enumerated in Sections 1-11-220 through 1-11-330 and include in the report a summary of the division's program's efforts in aiding and assisting the various state agencies in developing and maintaining their management practices in accordance with the comprehensive statewide Motor Vehicle Fleet Management Program. This report also shall contain recommended changes in the law and regulations necessary to achieve these objectives.

(B)    The board department, after consultation with state agency heads, shall promulgate and enforce state policies, procedures, and regulations to achieve the goals of Sections 1-11-220 through 1-11-330 and shall recommend administrative penalties to be used by the agencies for violation of prescribed procedures and regulations relating to the Fleet Management Program.

Section 1-11-270.    (A)    The board department shall establish criteria for individual assignment of motor vehicles based on the functional requirements of the job, which shall reduce the assignment to situations clearly beneficial to the State. Only the Governor, statewide elected officials, and agency heads are provided a state-owned vehicle based on their position.

Section 1-11-280.    The Board department shall develop a system of agency-managed and interagency motor pools which are, to the maximum extent possible, cost beneficial to the State. All motor pools shall operate according to regulations promulgated by the Budget and Control Board department. Vehicles shall be placed in motor pools rather than being individually assigned except as specifically authorized by the Board department in accordance with criteria established by the Board department. The motor pool operated by the Division of General Services shall be transferred to the Division of Motor Vehicle Management. Agencies utilizing motor pool vehicles shall utilize trip log forms approved by the Board department for each trip, specifying beginning and ending mileage and the job function performed.

The provisions of this section shall not apply to school buses and service vehicles.

Section 1-11-290.    The Board department in consultation with the agencies operating maintenance facilities shall study the cost-effectiveness of such facilities versus commercial alternatives and shall develop a plan for maximally cost-effective vehicle maintenance. The Budget and Control Board department shall promulgate rules and regulations governing vehicle maintenance to effectuate the plan.

The State Vehicle Maintenance program shall include:

(a)    central purchasing of supplies and parts;

(b)    an effective inventory control system;

(c)    a uniform work order and record-keeping system assigning actual maintenance cost to each vehicle; and

(d)    preventive maintenance programs for all types of vehicles.

All motor fuels shall be purchased from state facilities except in cases where such purchase is impossible or not cost beneficial to the State.

All fuels, lubricants, parts and maintenance costs including those purchased from commercial vendors shall be charged to a state credit card bearing the license plate number of the vehicle serviced and the bill shall include the mileage on the odometer of the vehicle at the time of service.

Section 1-11-300.    In accordance with criteria established by the board department, each agency shall develop and implement a uniform cost accounting and reporting system to ascertain the cost per mile of each motor vehicle used by the State under their control. Agencies presently operating under existing systems may continue to do so provided that board departmental approval shall be is required and that the existing systems shall be are uniform with the criteria established by the board department. All expenditures on a vehicle for gasoline and oil shall be purchased in one of the following ways:

(1)    from state-owned facilities and paid for by the use of Universal State Credit Cards except where agencies purchase these products in bulk;

(2)    from any fuel outlet where gasoline and oil are sold regardless of whether the outlet accepts a credit or charge card when the purchase is necessary or in the best interest of the State; and

(3)    from a fuel outlet where gasoline and oil are sold when that outlet agrees to accept the Universal State Credit Card.

These provisions regarding purchase of gasoline and oil and usability of the state credit card also apply to alternative transportation fuels where available. The Budget and Control Board Division of Operations department shall adjust the budgetary appropriation in Part IA, Section 63B, for 'Operating Expenses--Lease Fleet' to reflect the dollar savings realized by these provisions and transfer such amount to other areas of the State Fleet Management Program. The Board department shall promulgate regulations regarding the purchase of motor vehicle equipment and supplies to ensure that agencies within a reasonable distance are not duplicating maintenance services or purchasing equipment that is not in the best interest of the State. The Board department shall develop a uniform method to be used by the agencies to determine the cost per mile for each vehicle operated by the State.

Section 1-11-310.    (A)    The State Budget and Control Board South Carolina Department of Administration shall purchase, acquire, transfer, replace, and dispose of all motor vehicles on the basis of maximum cost-effectiveness and lowest anticipated total life cycle costs.

(B)    The standard state fleet sedan or station wagon must be no larger than a compact model and the special state fleet sedan or station wagon must be no larger than an intermediate model. The director of the Division of Motor Vehicle Management State Fleet Manager shall determine the types of vehicles which fit into these classes. Only these classes of sedans and station wagons may be purchased by the State for nonlaw enforcement use.

(C)    The State shall purchase police sedans only for the use of law enforcement officers, as defined by the Internal Revenue Code. Purchase of a vehicle under this subsection must be concurred in by the director of the Division of Motor Vehicle Management State Fleet Manager and must be in accordance with regulations promulgated or procedures adopted under Sections 1-11-220 through 1-11-340 which must take into consideration the agency's mission, the intended use of the vehicle, and the officer's duties. Law enforcement agency vehicles used by employees whose job functions do not meet the Internal Revenue Service definition of 'Law Enforcement Officer' must be standard or special state fleet sedans.

(D)    All state motor vehicles must be titled to the State and must be received by and remain in the possession of the Division Program of Motor Vehicle Fleet Management pending sale or disposal of the vehicle.

(E)    Titles to school buses and service vehicles operated by the State Department of Education and vehicles operated by the South Carolina Department of Transportation must be retained by those agencies.

(F)    Exceptions to requirements in subsections (B) and (C) must be approved by the director of the Division of Motor Vehicle Management State Fleet Manager. Requirements in subsection (B) do not apply to the State Development Board.

(G)    Preference in purchasing state motor vehicles must be given to vehicles assembled in the United States with at least seventy-five percent domestic content as determined by the appropriate federal agency.

Section 1-11-315.    The State Budget and Control Board South Carolina Department of Administration, Division of General Services, Program of Motor Vehicle Fleet Management, shall determine the extent to which the state vehicle fleet can be configured to operate on alternative transportation fuels. This determination must be based on a thorough evaluation of each alternative fuel and the feasibility of using such fuels to power state vehicles. The state fleet must be configured in a manner that will serve as a model for other corporate and government fleets in the use of alternative transportation fuel. By March 1, 1993, the Division Program of Motor Vehicle Fleet Management must submit a plan to the General Assembly for the use of alternative transportation fuels for the state vehicle fleet that will enable the state vehicle fleet to serve as a model for corporate and other government fleets in the use of alternative transportation fuel. This plan must contain a cost/benefit analysis of the proposed changes.

Section 1-11-320.    The Board department shall ensure that all state-owned motor vehicles are identified as such through the use of permanent state government license plates and either state or agency seal decals. No vehicles shall be exempt from the requirements for identification except those exempted by the Board department.

This section shall not apply to vehicles supplied to law enforcement officers when, in the opinion of the Board department after consulting with the Chief of the State Law Enforcement Division, those officers are actually involved in undercover law enforcement work to the extent that the actual investigation of criminal cases or the investigators' physical well-being would be jeopardized if they were identified. The Board department is authorized to exempt vehicles carrying human service agency clients in those instances in which the privacy of the client would clearly and necessarily be impaired.

Section 1-11-335.    The respective divisions of the Budget and Control Board and the South Carolina Department of Administration are authorized to provide to and receive from other governmental entities, including other divisions and state and local agencies and departments, goods and services, as will in its opinion promote efficient and economical operations. The divisions may charge and pay the entities for the goods and services, the revenue from which shall be deposited in the state treasury in a special account and expended only for the costs of providing the goods and services, and such funds may be retained and expended for the same purposes.

Section 1-11-340.    The Board department shall develop and implement a statewide Fleet Safety Program for operators of state-owned vehicles which shall serve to minimize the amount paid for rising insurance premiums and reduce the number of accidents involving state-owned vehicles. The Board department shall promulgate rules and regulations requiring the establishment of an accident review board by each agency and mandatory driver training in those instances where remedial training for employees would serve the best interest of the State."

H.        Section 1-11-435 of the 1976 Code is amended to read:

"Section 1-11-435.    To protect the state's critical information technology infrastructure and associated data systems in the event of a major disaster, whether natural or otherwise, and to allow the services to the citizens of this State to continue in such an event, the Office Division of the Office of the State Chief Information Officer in the Budget and Control Board (CIO) should develop a Critical Information Technology Infrastructure Protection Plan devising policies and procedures to provide for the confidentiality, integrity, and availability of, and to allow for alternative and immediate online access to critical data and information systems including, but not limited to, health and human services, law enforcement, and related agency data necessary to provide critical information to citizens and ensure the protection of state employees as they carry out their disaster-related duties. All state agencies and political subdivisions of this State are directed to assist the Office of the State CIO in the collection of data required for this plan."

I.        Section 2-13-240(a) of the 1976 Code is amended by adding at the end:

"(89)    Department of Administration, six."

J.        Section 2-13-240(a)(58) of the 1976 Code is amended to read:

"(58)    Budget and Control Board:

(a)    Auditor, six;

(b)    General Services Division, six;

(c)    Personnel Division, one;

(d)    Research and Statistical Services Division, one;

(e)    Retirement System, one.;

(f)     Statehouse, Legislative, and Judicial Facilities Operations Division, one."

K.        Chapter 9, Title 3 of the 1976 Code is amended to read:

"CHAPTER 9

Acquisition And Distribution Of Federal Surplus Property

Section 3-9-10.    (a)    The Division of General Services of the State Budget and Control Board South Carolina Department of Administration is authorized:

(1)    to acquire from the United States of America under and in conformance with the provisions of Section 203 (j) of the Federal Property and Administrative Services Act of 1949, as amended, hereafter referred to as the 'act,' such property, including equipment, materials, books, or other supplies under the control of any department or agency of the United States of America as may be usable and necessary for purposes of education, public health or civil defense, including research for any such purpose, and for such other purposes as may now or hereafter be authorized by federal law;

(2)    to warehouse such property; and

(3)    to distribute such property within the State to tax-supported medical institutions, hospitals, clinics, health centers, school systems, schools, colleges and universities within the State, to other nonprofit medical institutions, hospitals, clinics, health centers, schools, colleges and universities which are exempt from taxation under Section 501 (c)(3) of the United States Internal Revenue Code of 1954, to civil defense organizations of the State, or political subdivisions and instrumentalities thereof, which are established pursuant to State law, and to such other types of institutions or activities as may now be or hereafter become eligible under Federal law to acquire such property.

(b)    The Division of General Services of the Department of Administration is authorized to receive applications from eligible health and educational institutions for the acquisition of Federal surplus real property, investigate the applications, obtain expression of views respecting the applications from the appropriate health or educational authorities of the State, make recommendations regarding the need of such applicant for the property, the merits of its proposed program of utilization, the suitability of the property for the purposes, and otherwise assist in the processing of the applications for acquisition of real and related personal property of the United States under Section 203 (k) of the act.

(c)    For the purpose of executing its authority under this chapter, the Division of General Services is authorized to adopt, amend or rescind rules and regulations and prescribe such requirements as may be deemed necessary; and take such other action as is deemed necessary and suitable, in the administration of this chapter, to assure maximum utilization by and benefit to health, educational and civil defense institutions and organizations within the State from property distributed under this chapter.

(d)    The Budget and Control Board South Carolina Department of Administration is authorized to appoint advisory boards or committees, and to employ such personnel and prescribe their duties as are deemed necessary and suitable for the administration of this chapter.

(e)    The Director of the Division of General Services is authorized to make such certifications, take such action and enter into such contracts, agreements and undertakings for and in the name of the State (including cooperative agreements with any Federal agencies providing for utilization of property and facilities by and exchange between them of personnel and services without reimbursement), require such reports and make such investigations as may be required by law or regulation of the United States of America in connection with the receipt, warehousing and distribution of personal property received by him from the United States of America.

(f)    The Division of General Services is authorized to act as clearinghouse of information for the public and private nonprofit institutions, organizations and agencies referred to in subparagraph (a) of this section and other institutions eligible to acquire federal surplus personal property, to locate both real and personal property available for acquisition from the United States of America, to ascertain the terms and conditions under which such property may be obtained, to receive requests from the above-mentioned institutions, organizations and agencies and to transmit to them all available information in reference to such property, and to aid and assist such institutions, organizations and agencies in every way possible in the consummation of acquisitions or transactions hereunder.

(g)    The Division of General Services, in the administration of this chapter, shall cooperate to the fullest extent consistent with the provisions of the act, and with the departments or agencies of the United States of America, and shall file a State plan of operation, and operate in accordance therewith, and take such action as may be necessary to meet the minimum standards prescribed in accordance with the act, and make such reports in such form and containing such information as the United States of America or any of its departments or agencies may from time to time require, and it shall comply with the laws of the United States of America and the rules and regulations of any of the departments or agencies of the United States of America governing the allocation, transfer, use or accounting for, property donable or donated to the State.

Section 3-9-20.    The Director of the Division of General Services may delegate such power and authority as he deems reasonable and proper for the effective administration of this chapter. The State Budget and Control Board South Carolina Department of Administration may require bond of any person in the employ of the Division of General Services receiving or distributing property from the United States under authority of this chapter.

Section 3-9-30.    Any charges made or fees assessed by the Division of General Services for the acquisition, warehousing, distribution or transfer of any property of the United States of America for educational, public health or civil defense purposes, including research for any such purpose, or for any purpose which may now be or hereafter become eligible under the act, shall be limited to those reasonably related to the costs of care and handling in respect to its acquisition, receipt, warehousing, distribution or transfer.

Section 3-9-40.    The provisions of this chapter shall not apply to the acquisition of property acquired by agencies of the State under the priorities established by Section 308 (b), Title 23, United States Code, Annotated."

L.        Section 10-1-10, Section 10-1-30, as last amended by Act 628 of 1988, and Section 10-1-40 of the 1976 Code are amended to read:

"Section 10-1-10.    (A)    The State Budget and Control Board shall keep, landscape, cultivate, and beautify the State House and State House grounds with authority to expend such amounts as may be annually appropriated therefor. The board shall employ all help and labor in policing, protecting, and caring for the State House and State House grounds and shall have full authority over them.

(B)    The State Budget and Control Board shall keep and maintain the State House, Blatt Office Building, Gressette Office Building, Supreme Court Building, Calhoun Office Building, and the grounds of the Capitol Complex with authority to expend amounts as may be appropriated annually therefor and shall have full authority over the buildings. The board shall employ all help and labor in policing, protecting, and caring for the State House, and its grounds and shall have full authority over it.

Section 10-1-30.    (A)    The Director of the Division of General Services of the State Budget and Control Board may authorize the use of the State House lobbies, the State House steps and grounds, and other public buildings and grounds in accordance with regulations promulgated restrictions set by the board.

(B)    The Budget and Control Board may authorize the use of the State House lobbies and the Gressette and Blatt Office Buildings in accordance with restrictions set by the board. The director board shall obtain the approval of the Clerk of the Senate before authorizing any use of the Gressette Building and shall obtain the approval of the Clerk of the House of Representatives before authorizing any use of the Blatt Building.

(C)    The regulations restrictions upon the use of the buildings and grounds must contain provisions to insure ensure that the public health, safety, and welfare will be are protected in the use of the areas including reasonable time, place, and manner restrictions and application periods before use. If sufficient measures cannot be are not taken to protect the public health, safety, and welfare, the director Budget and Control Board shall deny the requested use. Other restrictions may be imposed on the use of the areas as are necessary for the conduct of business in those areas and the maintenance of the dignity, decorum, and aesthetics of the areas.

Section 10-1-40.    There is hereby established a committee to be known as the 'State House Committee', consisting of five members of the Senate, appointed by the Lieutenant Governor and five members of the House of Representatives, appointed by the Speaker, whose duties shall be to review all proposals for alterations and/or renovations to the State House. No alterations or renovations shall be undertaken without the approval of this committee."

M.    Section 10-1-130 of the 1976 Code is amended to read:

"Section 10-1-130.    The trustees or governing bodies of State institutions and agencies may grant easements and rights of way over any property under their control, upon the recommendation of the Department of Administration and the concurrence and acquiescence of the State Budget and Control Board, whenever it appears that such easements will do not materially impair the utility of the property or damage it and, when a consideration is paid therefor, any such amounts shall must be placed in the State Treasury to the credit of the institution or agency having control of the property involved."

N.    Section 10-1-190 of the 1976 Code is amended to read:

"Section 10-1-190.    As part of the approval process relating to trades of state property for nonstate property, the Budget and Control Board South Carolina Department of Administration is authorized to approve the application of any net proceeds resulting from such a transaction to the improvement of the property held by the board department, subject to the approval of the Budget and Control Board."

O.    Chapter 9, Title 10 of the 1976 Code is amended to read:

"CHAPTER 9

Minerals and Mineral Interests

in Public Lands

Article 1

General Provisions

Section 10-9-10.    The Public Service Authority may, through its board of directors, make and execute leases of gas, oil and other minerals and mineral rights, excluding phosphate and lime and phosphatic deposits, over and upon the lands and properties owned by said Authority; and the State Budget and Control Board South Carolina Department of Administration and the forfeited land commissions of the several counties of this State may, with the approval of the Attorney General, make and execute such leases over and upon the lands and waters of the State and of the several counties under the ownership, management, or control of such Board the department and commissions respectively.

Section 10-9-20.    No such lease shall provide for a royalty of less than twelve and one-half per cent of production of oil and gas from the lease.

Section 10-9-30.    Nothing contained in this article shall estop the State from enacting proper laws for the conservation of the oil, gas and other mineral resources of the State and all leases and contracts made under authority of this article shall be subject to such laws; provided, that the State Budget and Control Board South Carolina Department of Administration may negotiate for leases of oil, gas and other mineral rights upon all of the lands and waters of the State, including offshore marginal and submerged lands.

Section 10-9-35.    In the event that the State of South Carolina is the recipient of revenues derived from offshore oil leases within the jurisdictional limits of the State such revenues shall be deposited with the State Treasurer in a special fund and shall be expended only by authorization of the General Assembly.

Funds so accumulated shall be expended only for the following purposes:

(1)    to retire the bonded indebtedness incurred by South Carolina;

(2)    for capital improvement expenditures.

Section 10-9-40.    The authority conferred upon the Public Service Authority, the State Budget and Control Board South Carolina Department of Administration, and the forfeited land commissions by this article shall be cumulative and in addition to the rights and powers heretofore vested by law in such Authority, such State Budget and Control Board the South Carolina Department of Administration, and such commissions, respectively.

Article 3

Phosphate

Section 10-9-110.    The State Budget and Control Board South Carolina Department of Administration shall be charged with the exclusive control and protection of the rights and interest of the State in the phosphate rocks and phosphatic deposits in the navigable streams and in the marshes thereof.

Section 10-9-120.    The Board department may inquire into and protect the interests of the State in and to any phosphatic deposits or mines, whether in the navigable waters of the State or in land marshes or other territory owned or claimed by other parties, and in the proceeds of any such mines and may take such action for, or in behalf of, the State in regard thereto as it may find necessary or deem proper.

Section 10-9-130.    The Board department may issue to any person who applies for a lease or license granting a general right to dig, mine and remove phosphate rock and phosphatic deposits from all the navigable streams, waters and marshes belonging to the State and also from such of the creeks, not navigable, lying therein as may contain phosphate rock and deposits belonging to the State and not previously granted. Such leases or licenses may be for such terms as may be determined by the Board department. The annual report of the Board department to the General Assembly shall include a list of all effective leases and licenses. The Board department may make a firm contract for the royalty to be paid the State which shall not be increased during the life of the license. Provided, that prior to the grant or issuance of any lease or license, the Board department shall cause to be published a notice of such application in a newspaper having general circulation in the county once a week for three successive weeks prior to the grant or issuance. Provided, further However, the lessee or licensee may shall not take possession if there be is an adverse claim and the burden of proving ownership in the State shall be placed upon the lessee or licensee.

Section 10-9-140.    In every case in which such an application shall be is made to the Board department for a license, the Board department may grant or refuse the license as it may deem considers best for the interest of the State and the proper management of the interests of the State in such those deposits.

Section 10-9-150.    As a condition precedent to the right to dig, mine, and remove the rocks and deposits granted by any such a license, each licensee shall enter into bond, with security, in the penal sum of five thousand dollars, conditioned for the making at the end of every month of true and faithful returns to the Comptroller General of the number of tons of phosphate rock and phosphatic deposits so dug or mined and the punctual payment to the State Treasurer of the royalty provided at the end of every quarter or three months. Such The bond and sureties thereon shall be are subject to the approval required by law for the bonds of State state officers.

Section 10-9-160.    Whenever the Board department shall have reason to doubt the solvency of any surety whose name appears upon any bond executed for the purpose of securing the payment of the phosphate royalty by any person digging, mining and removing phosphate rock or phosphatic deposits in any of the territory, the property of the State, under any grant or license, the Board department shall forthwith notify the person giving such bond and the sureties thereon and require that one or more sureties, as the case may be, shall be added to the bond, such surety or sureties to be approved by the Board department.

Section 10-9-170.    The Board department, upon petition filed by any person who is surety on any such bond as aforesaid and who considers himself in danger of being injured by such suretyship, shall notify the person giving such bond to give a new bond with other sureties and upon failure of such person to do so within thirty days shall cause such person to suspend further operations until a new bond be given. But in In no case shall the sureties on the old bond be discharged from liability thereon until the new bond has been executed and approved, and such sureties shall not be discharged from any antecedent liability by reason of such suretyship.

Section 10-9-180.    The Board department is hereby vested with full and complete power and control over all mining in the phosphate territory belonging to this State and over all persons digging or mining phosphate rock or phosphatic deposit in the navigable streams and waters or in the marshes thereof, with full power and authority, subject to the provisions of Sections 10-9-130 and 10-9-190 to fix, regulate, raise or reduce such royalty per ton as shall from time to time be paid to the State by such persons for all or any such phosphate rock dug, mined, removed and shipped or otherwise sent to the market therefrom. But six Six months' notice shall be given all persons at such time digging or mining phosphate rock in such navigable streams, waters or marshes before any increase shall be made in the rate of royalty theretofore existing.

Section 10-9-190.    Each person to whom a license shall be issued must, at the end of every month, make to the Comptroller General a true and lawful return of the phosphate rock and phosphatic deposits he may have dug or mined during such month and shall punctually pay to the State Treasurer, at the end of every quarter or three months, a royalty of five cents per ton upon each and every ton of the crude rock (not of the rock after it has been steamed or dried), the first quarter to commence to run on the first day of January in each year.

Section 10-9-200.    The State Budget and Control Board South Carolina Department of Administration shall, within twenty days after the grant of any license as aforesaid, notify the Comptroller General of the issuing of such license, with the name of the person to whom issued, the time of the license and the location for which it was issued.

Section 10-9-210.    Every person who shall dig, mine or remove any phosphate rock or phosphatic deposit from the beds of the navigable streams, waters and marshes of the State without license therefor previously granted by the State to such person shall be liable to a penalty of ten dollars for each and every ton of phosphate rock or phosphatic deposits so dug, mined or removed, to be recovered by action at the suit of the State in any court of competent jurisdiction. One half of such penalty shall be for the use of the State and the other half for the use of the informer.

Section 10-9-220.    It shall be unlawful for any person to purchase or receive any phosphate rock or phosphatic deposit dug, mined or removed from the navigable streams, waters or marshes of the State from any person not duly authorized by act of the General Assembly of this State or license of the Board department to dig, mine or remove such phosphate rock or phosphatic deposit.

Section 10-9-230.    Any person violating Section 10-9-220 shall forfeit to the State the sum of ten dollars for each and every ton of phosphate rock or phosphatic deposit so purchased or received, to be recovered by action in any court of competent jurisdiction. One half of such forfeiture shall be for the use of the State and the other half for the use of the informer.

Section 10-9-240.    Should any person whosoever interfere with, obstruct or molest or attempt to interfere with, obstruct or molest the Board department or anyone by it authorized or licensed hereunder in the peaceable possession and occupation for mining purposes of any of the marshes, navigable streams or waters of the State, then the Board department may, in the name and on behalf of the State, take such measures or proceedings as it may be advised are proper to enjoin and terminate any such molestation, interference or obstruction and place the State, through its agents, the Board department or any one under it authorized, in absolute and practical possession and occupation of such marshes, navigable streams or waters.

Section 10-9-250.    Should any person attempt to mine or remove phosphate rock and phosphatic deposits from any of the marshes, navigable waters or streams, including the Coosaw River phosphate territory, by and with any boat, vessel, marine dredge or other appliances for such mining or removal, without the leave or license of the Board department thereto first had and obtained, all such boats, vessels, marine dredges and other appliances are hereby declared forfeited to and property of the State, and the Attorney General, for and in behalf of the State, shall institute proceedings in any court of competent jurisdiction for the claim and delivery thereof, in the ordinary form of action for claim and delivery, in which action the title of the State shall be established by the proof of the commission of any such act of forfeiture by the person owning them, or his agents, in possession of such boats, vessels, marine dredges or other appliances. In any such action the State shall not be called upon or required to give any bond or obligation such as is required by parties plaintiff in action for claim and delivery.

Section 10-9-260.    Any person wilfully interfering with, molesting or obstructing or attempting to interfere with, molest or obstruct the State or the State Budget and Control Board South Carolina Department of Administration or anyone by it authorized or licensed in the peaceable possession and occupation of any of the marshes, navigable streams or waters of the State, including the Coosaw River phosphate territory, or who shall dig or mine or attempt to dig or mine any of the phosphate rock or phosphatic deposits of this State without a license so to do issued by the Board department shall be punished for each offense by a fine of not less than one hundred dollars nor more than five hundred dollars or imprisonment for not less than one nor more than twelve months, or both, at the discretion of the court.

Section 10-9-270.    The Board department shall report annually to the General Assembly its actions and doings under this article during the year to the time of the meeting of the Assembly, with an itemized account of its expenses for the year incurred in connection with its duties and powers under this article.

Article 5

Geothermal Resources

Section 10-9-310.    For purposes of this article geothermal resources mean the natural heat of the earth at temperatures greater than forty degrees Celsius and includes:

(1)    The energy, including pressure, in whatever form present in, resulting from, created by, or that may be extracted from that natural heat.

(2)    The material medium, including the brines, water, and steam naturally present, as well as any substance artificially introduced to serve as a heat transfer medium.

(3)    All dissolved or entrained minerals and gases that may be obtained from the material medium but excluding hydrocarbon substances and helium.

Section 10-9-320.    The State Budget and Control Board (board) South Carolina Department of Administration may lease development rights to geothermal resources underlying surface lands owned by the State. The board department must promulgate regulations regarding the method of lease acquisition, lease terms, and conditions due the State under lease operations. The South Carolina Department of Natural Resources is designated as the exclusive agent for the board in selecting lands to be leased, administering the competitive bidding for leases, administering the leases, receiving and compiling comments from other state agencies concerning the desirability of leasing the state lands proposed for leasing and such other activities that pertain to geothermal resource leases as may be included herein as responsibilities of the board department.

Section 10-9-330.    Any lease of rights to drill for and use oil, natural gas, or minerals on public or private lands must not allow drilling for or use of geothermal energy by the lessee unless the instrument creating the lease specifically provides for such use."

P.        Section 10-11-50 of the 1976 Code is amended to read:

"Section 10-11-50.    (A)    It shall be unlawful for anyone to park any vehicle on any of the property described in Section 10-11-40 and subsection (2) of Section 10-11-80 except in the spaces and manner now marked and designated or that may hereafter be marked and designated by the State Budget and Control Board South Carolina Department of Administration, in cooperation with the Department of Transportation, or to block or impede traffic through the alleys and driveways.

(B)    The Department of Administration must ensure that parking spaces are available in the garage below the Capitol Complex, in proximity to the buildings utilized by the legislative, judicial, and executive branches, in the locations in use on the effective date of this subsection, and assigned as follows:

(1)    three hundred for the House of Representatives;

(2)    two hundred twelve for the Senate;

(3)    twenty-nine for the Judicial Department; and

(4)    fifty-seven for the Office of the Governor."

Q.        Section 10-11-90 of the 1976 Code is amended to read:

"Section 10-11-90.    The watchmen and policemen employed by the Budget and Control Board for the protection of the property described in Sections 10-11-30 and 10-11-40 and subsection (2) of Section 10-11-80 are hereby vested with all of the powers, privileges and immunities of constables while on this area or in fresh pursuit of those violating the law in this area, provided that such watchmen and policemen take and file the oath required of peace officers, execute and file bond in the form required of State constables, in the amount of one thousand dollars, with the Budget and Control Board, and be duly commissioned by the Governor."

R.        Section 10-11-110 of the 1976 Code is amended to read:

"Section 10-11-110.    In connection with traffic and parking violations only, the watchmen and policemen referred to in Section 10-11-90, State highway patrolmen and policemen of the City of Columbia shall have the right to issue and use parking tickets of the type used by the City of Columbia, with such changes as are necessitated hereby, to be prepared and furnished by the Budget and Control Board South Carolina Department of Administration, upon the issuance of which the procedures shall be followed as prevail in connection with the use of parking tickets by the City of Columbia. Nothing herein shall restrict the application and use of regular arrest warrants."

S.        Section 10-11-140 of the 1976 Code is amended to read:

"Section 10-11-140.    Nothing contained in this article shall be construed to abridge the authority of the State Budget and Control Board South Carolina Department of Administration to grant permission to use the State House grounds for educational, electrical decorations and similar purposes."

T.        Section 10-11-330 of the 1976 Code is amended to read:

"Section 10-11-330.    It shall be unlawful for any person or group of persons willfully wilfully and knowingly: (a) to enter or to remain within the capitol building unless such person is authorized by law or by rules of the House or Senate or of the State Budget and Control Board or the South Carolina Department of Administration, respectively, when such entry is done for the purpose of uttering loud, threatening and abusive language or to engage in any disorderly or disruptive conduct with the intent to impede, disrupt or disturb the orderly conduct of any session of the legislature or the orderly conduct within the building or of any hearing before or any deliberation of any committee or subcommittee of the legislature; (b) to obstruct or to impede passage within the capitol grounds or building; (c) to engage in any act of physical violence upon the capitol grounds or within the capitol building; or (d) to parade, demonstrate or picket within the capitol building."

U.        Sections 11-9-610, 11-9-620, and 11-9-630 of the 1976 Code are amended to read:

"Section 11-9-610.    The State Budget and Control Board South Carolina Department of Administration shall receive and manage the incomes and revenues set apart and applied to the Sinking Fund of the State. The department must report annually on the financial status of the Sinking Fund to the Budget and Control Board.

Section 11-9-620.    All moneys monies arising from the redemption of lands, leases, and sales of property or otherwise coming to the State Budget and Control Board South Carolina Department of Administration for the Sinking Fund, shall must be paid into the State Treasury and shall be kept on a separate account by the treasurer as a fund to be drawn upon the warrants of the Board department for the exclusive uses and purposes which have been or shall be declared in relation to the Sinking Fund.

Section 11-9-630.    The Subject to the approval of the State Budget and Control Board, the South Carolina Department of Administration shall sell and convey, for and on behalf of the State, all such real property, assets and effects belonging to the State as are not in actual public use, such sales to be made from time to time in such manner and upon such terms as it may deem most advantageous to the State. This shall not be construed to authorize the sale by the Board department of any property held in trust for a specific purpose by the State or the property of the State in the phosphate rocks or phosphatic deposits in the beds of the navigable streams and waters and marshes of the State."

V.        Sections 11-35-3810, 11-35-3830, 11-35-3820, and 11-35-3840 of the 1976 Code are amended to read:

"Section 11-35-3810.     Subject to existing provisions of law, the board Department of Administration shall promulgate regulations governing:

(1)    the sale, lease, or disposal of surplus supplies by public auction, competitive sealed bidding, or other appropriate methods designated by such regulations;

(2)    the transfer of excess supplies between agencies and departments.

Section 11-35-3820.    Except as provided in Section 11-35-1580 and Section 11-35-3830 and the regulations pursuant to them, the sale of all state-owned supplies, or personal property not in actual public use must be conducted and directed by the designated board office Division of General Services of the South Carolina Department of Administration. The sales must be held at such places and in a manner as in the judgment of the designated board office Division of General Services is most advantageous to the State. Unless otherwise determined, sales must be by either public auction or competitive sealed bid to the highest bidder. Each governmental body shall inventory and report to the designated board office division all surplus personal property not in actual public use held by that governmental body for sale. The designated board office division shall deposit the proceeds from the sales, less expense of the sales, in the state general fund or as otherwise directed by regulation. This policy and procedure applies to all governmental bodies unless exempt by law.

Section 11-35-3830    (1)    Trade-in Value. Unless otherwise provided by law, governmental bodies may trade-in personal property, the trade-in value of which may be applied to the procurement or lease of like items. The trade-in trade-in value of such personal property shall not exceed an amount as specified in regulations promulgated by the board Department of Administration.

(2)    Approval of Trade-in Sales. When the trade-in value of personal property of a governmental body exceeds the specified amount, the board Department of Administration shall have the authority to determine whether:

(a)    the subject personal property shall be traded in and the value applied to the purchase of new like items; or

(b)    the property shall be classified as surplus and sold in accordance with the provisions of Section 11-35-3820. The board departmental determination shall be in writing and be subject to the provisions of this chapter.

(3)    Record of Trade-in Sales. Governmental bodies shall submit quarterly to the materials management officer a record listing all trade-in sales made under subsections (1) and (2) of this section.

Section 11-35-3840.    The State Budget and Control Board may license for public sale publications, including South Carolina Business Opportunities, materials pertaining to training programs, and information technology products that are developed during the normal course of the board's activities. The items must be licensed at reasonable costs established in accordance with the cost of the items. All proceeds from the sale of the publications and materials must be placed in a revenue account and expended for the cost of providing the services."

W.    Section 13-7-30 of the 1976 Code is amended to read:

"Section 13-7-30.    For purposes of this article, the State Budget and Control Board, upon consultation with the South Carolina Department of Administration, hereinafter in this section referred to as the board, is designated as the agency of the State which shall have the following powers and duties that are in accord with its already established responsibilities for custody of state properties, and for the management of all state sinking funds, insurance, and analogous fiscal matters that are relevant to state properties:

(1)    expend state funds in order to acquire, develop, and operate land and facilities. This acquisition may be by lease, dedication, purchase, or other arrangements. However, the state's functions under the authority of this section are limited to the specific purposes of this article;

(2)    lease, sublease, or sell real and personal properties to public or private bodies;

(3)    assure the maintenance of insurance coverage by state licensees, lessees, or sublessees as will in the opinion of the board protect the citizens of the State against nuclear incident that may occur on state-controlled atomic energy facilities;

(4)    assume responsibility for extended custody and maintenance of radioactive materials held for custodial purposes at any publicly or privately operated facility located within the State, in the event the parties operating these facilities abandon their responsibility, or when the license for the facility is ultimately transferred to an agency of the State, and whenever the federal government or any agency of the federal government has not assumed the responsibility.

In order to finance such extended custody and maintenance as the board may undertake, the board may collect fees from private or public parties holding radioactive materials for custodial purposes. These fees must be sufficient in each individual case to defray the estimated cost of the board custodial management activities for that individual case. The fees collected for such custodial management activities shall also be sufficient to provide additional funds for the purchase of insurance which shall be purchased for the protection of the State and the general public for the period such radioactive material considering its isotope and curie content together with other factors may present a possible danger to the general public in the event of migration or dispersal of such radioactivity. All such fees, when received by the board, must be transmitted to the State Treasurer. The Treasurer must place the money in a special account, in the nature of a revolving trust fund, which may be designated 'extended care maintenance fund', to be disbursed on authorization of the board. Monies in the extended care maintenance funds must be invested by the board in the manner as other state monies. However, any interest accruing as a result of investment must accrue to this extended care maintenance fund. Except as authorized in Section 48-46-40(B)(7)(b) and (D)(2), the extended care maintenance fund must be used exclusively for custodial, surveillance, and maintenance costs during the period of institutional control and during any post-closure and observation period specified by the Department of Health and Environmental Control, and for activities associated with closure of the site. Funds from the extended care maintenance fund shall not be used for site closure activities or for custodial, surveillance, and maintenance performed during the post-closure observation period until all funds in the decommissioning trust account are exhausted.

(5)    Enter into an agreement with the federal government or any of its authorized agencies to assume extended maintenance of lands donated, leased, or purchased from the federal government or any of its authorized agencies and used for development of atomic energy resources or as custodial site for radioactive material."

X.        Section 13-7-830 of the 1976 Code, as last amended by Act 357 of 2000, is further amended to read:

"Section 13-7-830.    The recommendations described in Section 13-7-620 shall be made available to the General Assembly, the Governor, and the Budget and Control Board, and the South Carolina Department of Administration."

Y.        Section 44-53-530 of the 1976 Code is amended to read:

"Section 44-53-530.    (a)    Forfeiture of property defined in Section 44-53-520 must be accomplished by petition of the Attorney General or his designee or the circuit solicitor or his designee to the court of common pleas for the jurisdiction where the items were seized. The petition must be submitted to the court within a reasonable time period following seizure and shall set forth the facts upon which the seizure was made. The petition shall describe the property and include the names of all owners of record and lienholders of record. The petition shall identify any other persons known to the petitioner to have interests in the property. Petitions for the forfeiture of conveyances shall also include: the make, model, and year of the conveyance, the person in whose name the conveyance is registered, and the person who holds the title to the conveyance. The petition shall set forth the type and quantity of the controlled substance involved. A copy of the petition must be sent to each law enforcement agency which has notified the petitioner of its involvement in effecting the seizure. Notice of hearing or rule to show cause must be directed to all persons with interests in the property listed in the petition, including law enforcement agencies which have notified the petitioner of their involvement in effecting the seizure. Owners of record and lienholders of record may be served by certified mail, to the last known address as appears in the records of the governmental agency which records the title or lien.

The judge shall determine whether the property is subject to forfeiture and order the forfeiture confirmed. If the judge finds a forfeiture, he shall then determine the lienholder's interest as provided in this article. The judge shall determine whether any property must be returned to a law enforcement agency pursuant to Section 44-53-582.

If there is a dispute as to the division allocation of the proceeds of forfeited property among participating law enforcement agencies, this issue must be determined by the judge. The proceeds from a sale of property, conveyances, and equipment must be disposed of pursuant to subsection (e) of this section.

All property, conveyances, and equipment which will not be reduced to proceeds may be transferred to the law enforcement agency or agencies or to the prosecution agency. Upon agreement of the law enforcement agency or agencies and the prosecution agency, conveyances and equipment may be transferred to any other appropriate agency. Property transferred must not be used to supplant operating funds within the current or future budgets. If the property seized and forfeited is an aircraft or watercraft and is transferred to a state law enforcement agency or other state agency pursuant to the provisions of this subsection, its use and retainage by that agency shall be at the discretion and approval of the Budget and Control Board South Carolina Department of Administration.

(b)    If the property is seized by a state law enforcement agency and is not transferred by the court to the seizing agency, the judge shall order it transferred to the Division of General Services of the Department of Administration for sale. Proceeds may be used by the division for payment of all proper expenses of the proceedings for the forfeiture and sale of the property, including the expenses of seizure, maintenance, and custody, and other costs incurred by the implementation of this section. The net proceeds from any sale must be remitted to the State Treasurer as provided in subsection (g) of this section. The Division of General Services of the South Carolina Department of Administration may authorize payment of like expenses in cases where monies, negotiable instruments, or securities are seized and forfeited."

Z.        Section 44-96-140 of the 1976 Code is amended to read:

"Section 44-96-140.    (A)    Not later than twelve months after the date on which the department submits the state solid waste management plan to the Governor and to the General Assembly, the General Assembly, the Governor's Office of the Governor, the Judiciary, each state agency, and each state-supported institution of higher education shall:

(1)    establish a source separation and recycling program in cooperation with the department and the Division of General Services of the State Budget and Control Board South Carolina Department of Administration for the collection of selected recyclable materials generated in state offices throughout the State including, but not limited to, high-grade office paper, corrugated paper, aluminum, glass, tires, composting materials, plastics, batteries, and used oil;

(2)    provide procedures for collecting and storing recyclable materials, containers for storing materials, and contractual or other arrangements with collectors or buyers of the recyclable materials, or both;

(3)    evaluate the amount of waste paper material recycled and make all necessary modifications to the recycling program to ensure that all waste paper materials are recycled to the maximum extent feasible; and

(4)    establish and implement, in cooperation with the department and the Division of General Services of the Department of Administration, a solid waste reduction program for materials used in the course of agency operations. The program shall be designed and implemented to achieve the maximum feasible reduction of solid waste generated as a result of agency operations.

(B)    Not later than September fifteen of each year, each state agency and each state-supported institution of higher learning shall submit to the department a report detailing its source separation and recycling program and a review of all goods and products purchased during the previous fiscal year by those agencies and institutions containing recycled materials using the content specifications established by the Office of Materials Management Division of General Services, Department of Administration.

(C)    By November first of each year the department shall submit a report to the Governor and to the General Assembly reviewing all goods and products purchased by the State and determining what percentage of state purchases contain recycled materials using content specifications established by the Office of Materials Management, Division of General Services, Department of Administration. The report also must review existing procurement regulations for the purchase of products and materials and must identify any portions of such regulations that discriminate against products and materials with recycled content and products and materials which are recyclable.

(D)    Not later than one year after this chapter is effective, the Division of General Services, Department of Administration shall amend the procurement regulations to eliminate the portions of the regulations identified in its report as discriminating against products and materials with recycled content and products and materials which are recyclable.

(E)    Not later than one year after the effective date of the amendments to the procurement regulations, the General Assembly, the Governor's Office of the Governor, the Judiciary, all state agencies, all political subdivisions using state funds to procure items, and all persons contracting with such agency or political subdivision where such persons procure items with state funds shall procure products and materials with recycled content and products and materials which are recyclable where practicable, as determined by the Office of Materials Management, Division of General Services, Department of Administration. The list of recycled content specifications must be updated annually. It is the goal of the General Assembly for state and local governmental agencies to reflect a twenty-five percent goal in their procurement policies. The decision not to procure such items shall be based on a determination that such procurement items:

(1)    are not available within a reasonable period of time;

(2)    fail to meet the performance standards set forth in the applicable specifications; or

(3)    are only available at a price that exceeds by more than seven and one- half percent the price of alternative items.

(F)    Not later than six months after this chapter is effective, and annually thereafter, the Department of Transportation shall submit a report to the Governor and to the General Assembly on the use of:

(1)    compost as a substitute for regular soil amendment products in all highway projects;

(2)    solid waste including, but not limited to, ground rubber from tires and fly ash or mixtures of them from coal-fired electrical facilities in road surfacing of subbase materials;

(3)    solid waste including, but not limited to, glass aggregate, plastic, and fly ash in asphalt or concrete; and

(4)    recycled mixed-plastic materials for guardrail posts, right-of-way PreviousfenceNext posts, and sign supports."

AA.        Section 48-46-30(4) of the 1976 Code is amended to read:

"(4)    'Board' means the South Carolina Budget and Control Board or its designated official, and 'Department' means the South Carolina Department of Administration or its designee."

BB.        Section 48-46-40 of the 1976 Code is amended to read:

"Section 48-46-40.    (A)(1)    The board, upon consultation with the Department of Administration, shall approve disposal rates for low-level radioactive waste disposed at any regional disposal facility located within the State. The approval of disposal rates pursuant to this chapter is neither a regulation nor the promulgation of a regulation as those terms are specially used in Title 1, Chapter 23.

(2)    The board shall adopt a maximum uniform rate schedule for regional generators containing disposal rates that include the administrative surcharges specified in Section 48-46-60(B) and surcharges for the extended custody and maintenance of the facility pursuant to Section 13-7-30(4) and that do not exceed the approximate disposal rates, excluding any access fees and including a specification of the methodology for calculating fees for large components, generally applicable to regional generators on September 7, 1999. Any disposal rates contained in a valid written agreement that were applicable to a regional generator on September 7, 1999, that differ from rates in the maximum uniform rate schedule will continue to be honored through the term of such agreement. The maximum uniform rate schedule approved under this section becomes effective immediately upon South Carolina's membership in the Atlantic Compact. The maximum uniform rate schedule shall be the rate schedule applicable to regional waste whenever it is not superseded by an adjusted rate approved by the board pursuant to paragraph (3) of this subsection or by special disposal rates approved pursuant to paragraphs (5) or (6)(e) of this subsection.

(3)    The board may at any time of its own initiative, at the request of a site operator, or at the request of the compact commission, adjust the disposal rate or the relative proportions of the individual components that constitute the overall rate schedule. Except as adjusted for inflation in subsection (4), rates adjusted in accordance with this section, that include the administrative surcharges specified in Section 48-46-60(B) and surcharges for the extended custody and maintenance of the facility pursuant to Section 13-7-30(4), may shall not exceed initial disposal rates set by the board, upon consultation with the department pursuant to subsection (2).

(4)    In March of each year the board shall adjust the rate schedule based on the most recent changes in the most nearly applicable Producer Price Index published by the Bureau of Labor Statistics as chosen by the board or a successor index.

(5)    In consultation with the site operator and the department, the board or its designee, on a case-by-case basis, may approve special disposal rates for regional waste that differ from the disposal rate schedule for regional generators set by the board pursuant to subsections (2) and (3). Requests by the site operator for such approval shall be in writing to the board. In approving such special rates, the board or its designee, shall consider available disposal capacity, demand for disposal capacity, the characteristics of the waste, the potential for generating revenue for the State, or other relevant factors; provided, however, that the board shall not approve any special rate for an entity owned by or affiliated with the site operator. Special disposal rates approved by the board under this subsection shall be in writing and shall be kept confidential as proprietary business information for one year from the date when the bid or the request for proposal containing the special rate is accepted by the regional generator; provided, however, that such special rates when accepted by a regional generator shall be disclosed to the compact commission and to all other regional generators, which shall, to the extent permitted by applicable law, keep them confidential as proprietary business information for one year from the date when the bid or request for proposal containing this special rate is accepted by the regional generator. Within one business day of a special disposal rate's acceptance, the site operator shall notify the board, the department, the compact commission, and the regional generators of each special rate that has been accepted by a regional generator, and the board, department, the compact commission, and regional generators may communicate with each other about such special rates. If any special rate approved by the board for a regional generator is lower than a disposal rate approved by the board for regional generators pursuant to subsections (2) and (3) for waste that is generally similar in characteristics and volume, the disposal rate for all regional generators shall be revised to equal the special rate for the regional generator. Regional generators may enter into contracts for waste disposal at such special rates and on comparable terms for a period of not less than six months. An officer of the site operator shall certify in writing to the board and the compact commission each month that no regional generator's disposal rate exceeds any other regional generator's special rate for waste that is generally similar in characteristics and volume, and such certification shall be subject to periodic audit by the board and the compact commission.

(6)(a)    To the extent authorized by the compact commission, the board, upon consultation with the Department of Administration and on behalf of the State of South Carolina, may enter into agreements with any person in the United States or its territories or any interstate compact, state, U.S. territory, or U.S. Department of Defense military installation abroad for the importation of waste into the region for purposes of disposal at a regional disposal facility within South Carolina. No waste from outside the Atlantic Compact region may be disposed at a regional disposal facility within South Carolina, except to the extent that the board is authorized by the compact commission to enter into agreements for importation of waste.

The board shall authorize the importation of nonregional waste into the region for purposes of disposal at the regional disposal facility in South Carolina so long as nonregional waste would not result in the facility accepting more than the following total volumes of all waste:

(i)            160,000 cubic feet in fiscal year 2001;

(ii)        80,000 cubic feet in fiscal year 2002;

(iii)        70,000 cubic feet in fiscal year 2003;

(iv)        60,000 cubic feet in fiscal year 2004;

(v)        50,000 cubic feet in fiscal year 2005;

(vi)        45,000 cubic feet in fiscal year 2006;

(vii)        40,000 cubic feet in fiscal year 2007;

(viii)    35,000 cubic feet in fiscal year 2008.

After fiscal year 2008, the board shall not authorize the importation of nonregional waste for purposes of disposal.

(b)    The board, in consultation with the department may approve disposal rates applicable to nonregional generators. In approving disposal rates applicable to nonregional generators, the board, in consultation with the department may consider available disposal capacity, demand for disposal capacity, the characteristics of the waste, the potential for generating revenue for the State, and other relevant factors.

(c)    Absent action by the board under subsection (b) above to establish disposal rates for nonregional generators, rates applicable to these generators must be equal to those contained in the maximum uniform rate schedule approved by the board pursuant to paragraph (2) or (3) of this subsection for regional generators unless these rates are superseded by special disposal rates approved by the board pursuant to paragraph (6)(e) of this subsection.

(d)    Regional generators shall not pay disposal rates that are higher than disposal rates for nonregional generators in any fiscal quarter.

(e)    In consultation with the site operator and the Department of Administration, the board or its designee, on a case-by-case basis, may approve special disposal rates for nonregional waste that differ from the disposal rate schedule for nonregional generators set by the board. Requests by the site operator for such approval shall be in writing to the board. In approving such special rates, the board or its designee shall consider available disposal capacity, demand for disposal capacity, the characteristics of the waste, the potential for generating revenue for the State, and other relevant factors; provided, however, that the board shall not approve any special rate for an entity owned by or affiliated with the site operator. Special disposal rates approved by the board under this subsection shall be in writing and shall be kept confidential as proprietary business information for one year from the date when the bid or request for proposal containing the special rate is accepted by the nonregional generator; provided, however, that such special rates when accepted by a nonregional generator shall be disclosed to the compact commission and to all regional generators, which shall, to the extent permitted by applicable law, keep them confidential as proprietary business information for one year from the date when the bid or request for proposal containing the special rate is accepted by the nonregional generator. Within one business day of a special disposal rate's acceptance, the site operator shall notify the board department, the compact commission, and the regional generators in writing of each special rate that has been accepted by a nonregional generator, and the board, department, the compact commission, and regional generators may communicate with each other about such special rates. If any special rate approved by the board for a nonregional generator is lower than a disposal rate approved by the board for regional generators for waste that is generally similar in characteristics and volume, the disposal rate for all regional generators shall be revised to equal the special rate for the nonregional generator. Regional generators may enter into contracts for waste disposal at such special rate and on comparable terms for a period of not less than six months. An officer of the site operator shall certify in writing to the board, department and the compact commission each month that no regional generator disposal rate exceeds any nonregional generator's special rate for waste that is generally similar in characteristics and volume, and such certification shall be subject to periodic audit by the board, department and the compact commission.

(B)(1)    Effective upon the implementation of initial disposal rates by the board under Section 48-46-40(A), the PSC is authorized and directed to identify allowable costs for operating a regional low-level radioactive waste disposal facility in South Carolina.

(2)    In identifying the allowable costs for operating a regional disposal facility, the PSC shall:

(a)    prescribe a system of accounts, using generally accepted accounting principles, for disposal site operators, using as a starting point the existing system used by site operators;

(b)    assess penalties against disposal site operators if the PSC determines that they have failed to comply with regulations pursuant to this section; and

(c)    require periodic reports from site operators that provide information and data to the PSC and parties to these proceedings. The Office of Regulatory Staff shall obtain and audit the books and records of the site operators associated with disposal operations as determined applicable by the PSC.

(3)    Allowable costs include the costs of those activities necessary for:

(a)    the receipt of waste;

(b)    the construction of disposal trenches, vaults, and overpacks;

(c)    construction and maintenance of necessary physical facilities;

(d)    the purchase or amortization of necessary equipment;

(e)    purchase of supplies that are consumed in support of waste disposal activities;

(f)    accounting and billing for waste disposal;

(g)    creating and maintaining records related to disposed waste;

(h)    the administrative costs directly associated with disposal operations including, but not limited to, salaries, wages, and employee benefits;

(i)        site surveillance and maintenance required by the State of South Carolina, other than site surveillance and maintenance costs covered by the balance of funds in the decommissioning trust fund or the extended care maintenance fund;

(j)        compliance with the license, lease, and regulatory requirements of all jurisdictional agencies;

(k)    administrative costs associated with collecting the surcharges provided for in subsections (B) and (C) of Section 48-46-60;

(l)        taxes other than income taxes;

(m)    licensing and permitting fees; and

(n)    any other costs directly associated with disposal operations determined by the PSC to be allowable.

Allowable costs do not include the costs of activities associated with lobbying and public relations, clean-up and remediation activities caused by errors or accidents in violation of laws, regulations, or violations of the facility operating license or permits, activities of the site operator not directly in support of waste disposal, and other costs determined by the PSC to be unallowable.

(4)    Within ninety days following the end of a fiscal year, a site operator may file an application with the PSC to adjust the level of an allowable cost under subsection (3), or to allow a cost not previously designated an allowable cost. A copy of the application must be provided to the Office of Regulatory Staff. The PSC shall process such application in accordance with its procedures. If such application is approved by the PSC, the PSC shall authorize the site operator to adjust allowable costs for the current fiscal year so as to compensate the site operator for revenues lost during the previous fiscal year.

(5)    A private operator of a regional disposal facility in South Carolina is authorized to charge an operating margin of twenty-nine percent. The operating margin for a given period must be determined by multiplying twenty-nine percent by the total amount of allowable costs as determined in this subsection, excluding allowable costs for taxes and licensing and permitting fees paid to governmental entities.

(6)    The site operator shall prepare and file with the PSC a Least Cost Operating Plan. The plan must be filed within forty-five days of enactment of this chapter and must be revised annually. The plan shall include information concerning anticipated operations over the next ten years and shall evaluate all options for future staffing and operation of the site to ensure least cost operation, including information related to the possible interim suspension of operations in accordance with subsection (B)(7). A copy of the plan must be provided to the Office of Regulatory Staff.

(7)(a)    If the board, upon consultation with the Department of Administration and upon the advice of the compact commission or the site operator, concludes based on information provided to the board department, that the volume of waste to be disposed during a forthcoming period of time does not appear sufficient to generate receipts that will be adequate to reimburse the site operator for its costs of operating the facility and its operating margin, then the board department shall direct the site operator to propose to the compact commission plans including, but not necessarily limited to, a proposal for discontinuing acceptance of waste until such time as there is sufficient waste to cover the site operator's operating costs and operating margin. Any proposal to suspend operations must detail plans of the site operator to minimize its costs during the suspension of operations. Any such proposal to suspend operations must be approved by the Department of Health and Environmental Control with respect to safety and environmental protection.

(b)    Allowable costs applicable to any period of suspended operations must be approved by the PSC according to procedures similar to those provided herein for allowable operating costs. During any such suspension of operations, the site operator must be reimbursed by the board department from the extended care maintenance fund for its allowable costs and its operating margin. During the suspension funding to reimburse the board department, the PSC, and the State Treasurer under Section 48-46-60(B) and funding of the compact commission under Section 48-46-60(C) must also be allocated from the extended care maintenance fund as approved by the board department based on revised budgets submitted by the PSC, State Treasurer, and the compact commission.

(c)    Notwithstanding any disbursements from the extended care maintenance fund in accordance with any provision of this act, the board department shall continue to ensure, in accordance with Section 13-7-30, that the fund remains adequate to defray the costs for future maintenance costs or custodial and maintenance obligations of the site and other obligations imposed on the fund by this chapter.

(d)    The PSC may promulgate regulations and policies necessary to execute the provisions of this section.

(8)    The PSC may use any standard, formula, method, or theory of valuation reasonably calculated to arrive at the objective of identifying allowable costs associated with waste disposal. The PSC may consider standards, precedents, findings, and decisions in other jurisdictions that regulate allowable costs for radioactive waste disposal.

(9)    In all proceedings held pursuant to this section, the board shall participate as a party representing the interests of the State of South Carolina, and the compact commission may participate as a party representing the interests of the compact states. The Executive Director of the Office of Regulatory Staff and the Attorney General of the State of South Carolina shall be parties to any such proceeding. Representatives from the Department of Health and Environmental Control shall participate in proceedings where necessary to determine or define the activities that a site operator must conduct in order to comply with the regulations and license conditions imposed by the department. Other parties may participate in the PSC's proceedings upon satisfaction of standing requirements and compliance with the PSC's procedures. Any site operator submitting records and information to the PSC may request that the PSC treat such records and information as confidential and not subject to disclosure in accordance with the PSC's procedures.

(10)    In all respects in which the PSC has power and authority under this chapter, it shall conduct its proceedings under the South Carolina Administrative Procedures Act and the PSC's rules and regulations. The PSC is authorized to compel attendance and testimony of a site operator's directors, officers, agents, or employees.

(11)    At any time the compact commission, the board, or any generator subject to payment of rates set pursuant to this chapter may file a petition against a site operator alleging that allowable costs identified pursuant to this chapter are not in conformity with the directives of this chapter or the directives of the PSC or that the site operator is otherwise not acting in conformity with the requirements of this chapter or directives of the PSC. Upon filing of the petition, the PSC shall cause a copy of the petition to be served upon the site operator. The petitioning party has the burden of proving that allowable costs or the actions of the site operator do not conform. The hearing shall conform to the rules of practice and procedure of the PSC for other cases.

(12)    The PSC shall encourage alternate forms of dispute resolution including, but not limited to, mediation or arbitration to resolve disputes between a site operator and any other person regarding matters covered by this chapter.

(C)    The operator of a regional disposal facility shall submit to the South Carolina Department of Revenue, the PSC, the Office of Regulatory Staff, and the board within thirty days following the end of each quarter a report detailing actual revenues received in the previous fiscal quarter and allowable costs incurred for operation of the disposal facility.

(D)(1)    Within 30 days following the end of the fiscal year the operator of a regional disposal facility shall submit a payment made payable to the South Carolina Department of Revenue in an amount that is equal to the total revenues received for waste disposed in that fiscal year (with interest accrued on cash flows in accordance with instructions from the State Treasurer) minus allowable costs, operating margin, and any payments already made from such revenues pursuant to Section 48-46-60(B) and (C) for reimbursement of administrative costs to state agencies and the compact commission. The Department of Revenue shall deposit the payment with the State Treasurer.

(2)    If in any fiscal year total revenues do not cover allowable costs plus the operating margin, the board department must reimburse the site operator its allowable costs and operating margin from the extended care maintenance fund within thirty days after the end of the fiscal year. The board, in consultation with the department shall as soon as practicable authorize a surcharge on waste disposed in an amount that will fully compensate the fund for the reimbursement to the site operator. In the event that total revenues for a fiscal year do not cover allowable costs plus the operating margin, or quarterly reports submitted pursuant to subsection (C) indicate that such annual revenue may be insufficient, the board department shall consult with the compact commission and the site operator as early as practicable on whether the provisions of Section 48-46-40(B)(7) pertaining to suspension of operations during periods of insufficient revenues should be invoked.

(E)    Revenues received pursuant to item (1) of subsection (D) must be allocated as follows:

(1)    The South Carolina State Treasurer shall distribute the first two million dollars received for waste disposed during a fiscal year to the County Treasurer of Barnwell County for distribution to each of the parties to and beneficiaries of the order of the United States District Court in C.A. No. 1:90-2912-6 on the same schedule of allocation as is established within that order for the distribution of 'payments in lieu of taxes' paid by the United States Department of Energy.

(2)    All revenues in excess of two million dollars received from waste disposed during the previous fiscal year must be deposited in a fund called the 'Nuclear Waste Disposal Receipts Distribution Fund'. Any South Carolina waste generator whose disposal fees contributed to the fund during the previous fiscal year may submit a request for a rebate of 33.33 percent of the funds paid by the generator during the previous fiscal year for disposal of waste at a regional disposal facility. These requests along with invoices or other supporting material must be submitted in writing to the State Treasurer within fifteen days of the end of the fiscal year. For this purpose disposal fees paid by the generator must exclude any fees paid pursuant to Section 48-46-60(C) for compact administration and fees paid pursuant to Section 48-46-60(B) for reimbursement of the PSC, the Office of Regulatory Staff, the State Treasurer, and the board for administrative expenses under this chapter. Upon validation of the request and supporting documentation by the State Treasurer, the State Treasurer shall issue a rebate of the applicable funds to qualified waste generators within sixty days of the receipt of the request. If funds in the Nuclear Waste Disposal Receipts Distribution Fund are insufficient to provide a rebate of 33.33 percent to each generator, then each generator's rebate must be reduced in proportion to the amount of funds in the account for the applicable fiscal year.

(3)    All funds deposited in the Nuclear Waste Disposal Receipts Distribution Fund for waste disposed for each fiscal year, less the amount needed to provide generators rebates pursuant to item (2), shall be deposited by the State Treasurer in the 'Children's Education Endowment Fund'. Thirty percent of these monies must be allocated to Higher Education Scholarship Grants and used as provided in Section 59-143-30, and seventy percent of these monies must be allocated to Public School Facility Assistance and used as provided in Chapter 144 of Title 59.

(F)    Effective beginning fiscal year 2001-2002, there is appropriated annually from the general fund of the State to the Higher Education Scholarship Grants share of the Children's Education Endowment whatever amount is necessary to credit to the Higher Education Scholarship Grants share an amount not less than the amount credited to that portion of the endowment in fiscal year 1999-2000. Revenues credited to the endowment pursuant to this subsection, for purposes of Section 59-143-10, are deemed to be received by the endowment pursuant to the former provisions of Section 48-48-140(C)."

CC.        Section 48-46-50(A) of the 1976 Code is amended to read:

"(A)    The Governor shall appoint two commissioners to the Atlantic Compact Commission and may appoint up to two alternate commissioners. These alternate commissioners may participate in meetings of the compact commission in lieu of and upon the request of a South Carolina commissioner. Technical representatives from the Department of Health and Environmental Control, the board, the Department of Administration, the PSC, and other state agencies may participate in relevant portions of meetings of the compact commission upon the request of a commissioner, alternate commissioner, or staff of the compact commission, or as called for in the compact commission bylaws."

DD.        Section 48-46-60 of the 1976 Code is amended to read:

"Section 48-46-60.    (A)    The Governor and the board are authorized to take such actions as are necessary to join the Atlantic Compact including, but not limited to, petitioning the Compact Commission for membership and participating in any and all rulemaking processes. South Carolina's membership in the Atlantic Compact pursuant to this chapter is effective July 1, 2000, if by that date the Governor certifies to the General Assembly that the Compact Commission has taken each of the actions specified below. If the Compact Commission by July 1, 2000, has not taken each of the actions specified below, then South Carolina's membership shall become effective as soon thereafter as the Governor certifies that the Atlantic Compact Commission has taken these actions:

(1)    adopted a binding regulation or policy in accordance with Article VII(e) of the compact establishing conditions for admission of a party state that are consistent with this act and ordered that South Carolina be declared eligible to be a party state consistent with those conditions;

(2)    adopted a binding regulation or policy in accordance with Article IV(i)(11) of the Atlantic Compact authorizing a host state to enter into agreements on behalf of the compact and consistent with criteria established by the compact commission and consistent with the provisions of Section 48-46-40(A)(6)(a) and Section 48-46-50(D) with any person for the importation of waste into the region for purposes of disposal, to the extent that these agreements do not preclude the disposal facility from accepting all regional waste that can reasonably be projected to require disposal at the regional disposal facility consistent with subitem (5)(b) of this section;

(3)    adopted a binding regulation or policy in accordance with Article IV(i)(12) of the Atlantic Compact authorizing each regional generator, at the generator's discretion, to ship waste to disposal facilities located outside the Atlantic Compact region;

(4)    authorized South Carolina to proceed with plans to establish disposal rates for low-level radioactive waste disposal in a manner consistent with the procedures described in this chapter;

(5)    adopted a binding regulation, policy, or order officially designating South Carolina as a volunteer host state for the region's disposal facility, contingent upon South Carolina's membership in the compact, in accordance with Article V.b.1. of the Atlantic Compact, thereby authorizing the following compensation and incentives to South Carolina:

(a)    agreement, as evidenced in a policy, regulation, or order that the compact commission will issue a payment of twelve million dollars to the State of South Carolina. Before issuing the twelve million-dollar payment, the compact commission will deduct and retain from this amount seventy thousand dollars, which will be credited as full payment of South Carolina's membership dues in the Atlantic Compact. The remainder of the twelve million-dollar payment must be credited to an account in the State Treasurer's office, separate and distinct from the fund, styled 'Barnwell Economic Development Fund'. This fund, and earnings on this fund which must be credited to the fund, may only be expended for purposes of economic development in the Barnwell County area including, but not limited to, projects of the Barnwell County Economic Development Corporation and projects of the Tri-County alliance which includes Barnwell, Bamberg, and Allendale Counties and projects in the Williston area of Aiken County. Economic development includes, but is not limited to, industrial recruitment, infrastructure construction, improvement, and expansion, and public facilities construction, improvement, and expansion. These funds must be spent according to guidelines established by the Barnwell County governing body and upon approval of the board, upon consultation with the department. Expenditures must be authorized by the Barnwell County governing body and with the approval of the board, upon consultation with the department. Upon approval of the Barnwell County governing body and the board department, the State Treasurer shall submit the approved funds to the Barnwell County Treasurer for disbursement pursuant to the authorization;

(b)    adopted a binding regulation, policy, or order consistent with the regional management plan developed pursuant to Article V(a) of the Atlantic Compact, limiting Connecticut and New Jersey to the use of not more than 800,000 cubic feet of disposal capacity at the regional disposal facility located in Barnwell County, South Carolina, and also ensuring that up to 800,000 cubic feet of disposal capacity remains available for use by Connecticut and New Jersey unless this estimate of need is later revised downward by unanimous consent of the compact commission;

(c)    agreement, as evidenced in a policy or regulation, that the compact commission headquarters and office will be relocated to South Carolina within six months of South Carolina's membership; and

(d)    agreement, as evidenced in a policy or regulation, that the compact commission will, to the extent practicable, hold a majority of its meetings in the host state for the regional disposal facility.

(B)    The board, the Department of Administration, the State Treasurer, and the PSC shall provide the required staff and may add additional permanent or temporary staff or contract for services, as well as provide for operating expenses, if necessary, to administer new responsibilities assigned under this chapter. In accordance with Article V.f.2. of the Atlantic Compact the compensation, costs, and expenses incurred incident to administering these responsibilities may be paid through a surcharge on waste disposed at regional disposal facilities within the State. To cover these costs the board shall impose a surcharge per unit of waste received at any regional disposal facility located within the State. A site operator shall collect and remit these fees to the board in accordance with the board's directions. All such surcharges shall be included within the disposal rates set by the board pursuant to Section 48-46-40.

(C)    In accordance with Article V.f.3. of the Atlantic Compact, the compact commission shall advise the board department at least annually, but more frequently if the compact commission deems appropriate, of the compact commission's costs and expenses. To cover these costs the board department shall impose a surcharge per unit of waste received at any regional disposal facility located within the State as determined in Section 48-46-40. A site operator shall collect and remit these fees to the board department in accordance with the board department's directions, and the board department shall remit those fees to the compact commission."

EE.        Section 48-46-90(A) of the 1976 Code is amended to read:

"(A)    In accordance with Section 13-7-30, the board department, or its designee, is responsible for extended custody and maintenance of the Barnwell site following closure and license transfer from the facility operator. The Department of Health and Environmental Control is responsible for continued site monitoring."

FF.        Section 48-52-410 of the 1976 Code is amended to read:

"Section 48-52-410.    There is established the State Energy Office within the State Budget and Control Board Department of Administration which shall serve as the principal energy planning entity for the State. Its primary purpose is to develop and implement a well-balanced energy strategy and to increase the efficiency of use of all energy sources throughout South Carolina through the implementation of the Plan for State Energy Policy. The State Energy Office must not function as a regulatory body."

GG.        Section 48-52-440 of the 1976 Code is amended to read:

"Section 48-52-440.    (A)    There is established the Energy Advisory Committee, whose members are shall be appointed by the State Budget and Control Board Director of the Department of Administration, except as provided in item (14) of this section. Members shall serve at the pleasure of the State Budget and Control Board director except that those appointed pursuant to item (14) shall serve for a term coterminous with that of their appointing authority. The committee is composed as follows:

(1)    two representatives of investor-owned electricity companies;

(2)    two representatives of electric cooperatives;

(3)    one representative of the South Carolina Public Service Authority, who shall serve ex officio;

(4)    one representative of municipally-owned electric utilities;

(5)    one representative of publicly-owned natural gas companies;

(6)    one representative of investor-owned gas companies;

(7)    one representative of oil suppliers or dealers;

(8)    one representative of propane suppliers or dealers;

(9)    one representative of nonprofit public transportation providers;

(10)    two representatives of industrial consumers;

(11)    two representatives of commercial consumers;

(12)    two representatives of individual consumers; one must be the Executive Director of the Office of Regulatory Staff or his designee, who shall serve ex officio;

(13)    two representatives of environmental groups; and

(14)    one at-large member appointed by the Governor director.

The Budget and Control Board Director of the Department of Administration shall elect select one of the committee members to serve as chairman. The members of the Energy Advisory Committee are not eligible for per diem payments or for reimbursement for lodging or meals. The functions of the Energy Advisory Committee are advisory to the State Energy Office. The committee shall meet at least annually and at the call of the chair or at the request of at least six members to receive information on the activities of the State Energy Office and the formulation and implementation of the state energy action plan. It may comment and advise on the activities and the plan as considered appropriate by members of the committee. The State Energy Office may seek advice and guidance from the committee as considered appropriate by the director of the office. Members shall adopt rules governing meeting attendance and abide by these rules.

(B)    Members of the Energy Advisory Committee serving in office on July 1, 2011, shall continue to serve until their successors are appointed and qualify."

HH.        Section 48-52-460 of the 1976 Code is amended to read:

"Section 48-52-460.    The establishment of the State Energy Office within the State Budget and Control Board Department of Administration, as provided for in this part, must be evaluated if restructuring or reorganizing of state government takes place so as to identify and provide for the proper placement of the office upon restructuring or reorganizing."

Part V

Additional Conforming and Miscellaneous Amendments

Subpart 1.

Office of Human Resources

SECTION    7.    Section 1-1-1410 of the 1976 Code is amended to read:

"Section 1-1-1410.    Every state agency, based upon guidelines developed by the Office of Human Resources, State Budget and Control Board Department of Administration, shall develop and implement an agency workplace domestic violence policy which must include, but is not limited to, a zero tolerance policy statement regarding acts or threats of domestic violence in the workplace and safety and security procedures."

SECTION    8.    Section 8-11-165 of the 1976 Code is amended to read:

"Section 8-11-165.    (A)    It is the intent of the General Assembly that a salary and fringe benefit survey for agency heads must be conducted by the Office of Human Resources of the Budget and Control Board Department of Administration every three years. The staff of the office shall serve as the support staff to the Agency Head Salary Commission.

(B)    No employee of agencies reviewed by the Agency Head Salary Commission may receive a salary in excess of ninety-five percent of the midpoint of the agency head salary range or the agency head actual salary, whichever is greater, except on approval of the Budget and Control Board Department of Administration.

No president of a Technical College may receive a salary in excess of ninety-five percent of the midpoint of the agency head salary range or the agency head actual salary, whichever is greater, except on approval of the Agency Head Salary Commission and the Budget and Control Board Department of Administration.

(C)    The Agency Head Salary Commission may recommend to the Budget and Control Board Department of Administration that agency head salaries be adjusted to the minimum of their salary ranges and may recommend to the Board Department of Administration that agency head salaries be adjusted when necessary up to the midpoints of their respective salary ranges. These increases must be based on criteria developed and approved by the Agency Head Salary Commission.

All new members appointed to a governing board of an agency where the performance of the agency head is reviewed and ranked by the Agency Head Salary Commission shall attend the training in agency head performance appraisal provided by the Commission within the first year of their appointment unless specifically excused by the chairman of the Agency Head Salary Commission."

SECTION    9.    Section 8-11-185 of the 1976 Code is amended to read:

"Section 8-11-185.    (A)    Of the funds appropriated to the Office of Human Resources of the State Budget and Control Board Department of Administration under "Recruitment - Other Operating Expenses" in the annual general appropriations act of the State, the office may use up to five thousand dollars to create and operate a reduction in force applicant pool.

(B)    If a state agency has a reduction in personnel or positions for any reason including, but not limited to, internal restructuring, the agency must report to the Office of Human Resources for inclusion of information on all employees affected by this reduction in the office's reduction in force applicant pool. The information must include, but is not limited to, the name and social security number of the person, the position held, job classification, grade, years of experience, and the person's EPMS status for those wishing to be considered for other positions.

(C)    An agency seeking to fill a vacancy or a new position must obtain information from the Office of Human Resources' reduction in force applicant pool provided to the office pursuant to subsection (A). An agency shall provide priority consideration to employees terminated due to a reduction in force for any vacancy or new position in the same classification, classification series, or position category held at the time of layoff. An agency is prohibited from filling the position if the agency does not first seek to fill the position from among these qualified employees provided by the Office of Human Resources."

SECTION    10.    Section 8-17-320 of the 1976 Code is amended to read:

"Section 8-17-320.    As used in this article, unless the context clearly indicates otherwise:

(1)    'Agency' means a department, institution of higher learning, board, commission, or school that is a governmental unit of the State of South Carolina. Special purpose districts, political subdivisions, and other units of local government are excluded from this definition.

(2)    'Appeal' means the request by a covered employee to the State Human Resources Director for review of an agency's final decision concerning a grievance.

(3)    'Board' means the State Budget and Control Board.

(4)    'Calendar days' means the sequential days of a year. The time must be computed by excluding the first day and including the last. If the last day falls on a Saturday, Sunday, or legal holiday, it must be excluded.

(5)    'Class' means a group of positions sufficiently similar in the duties performed, degree of supervision exercised or received, minimum requirements of education, experience or skill, and the other characteristics that the same state class title and the same state salary range are applied to each position in the group by the Office of Human Resources.

(6)    'Committee' means the State Employee Grievance Committee.

(7)    'Covered employee' means a full-time or part-time employee occupying a part or all of an established full-time equivalent (FTE) position who has completed the probationary period and has a 'meets' or higher overall rating on the employee's performance evaluation and who has grievance rights. Instructional personnel are covered upon the completion of one academic year except for faculty at state technical colleges of not more than two full academic years' duration. If an employee does not receive an evaluation before the official review date, the employee must be considered to have performed in a satisfactory manner and be a covered employee. This definition does not include employees in positions such as temporary, temporary grant, or time-limited employees who do not have grievance rights.

(8)    'Demotion' means the assignment of an employee by the appointing authority from one established position to a different established position having a lower state salary range.

(9)    'Department' means the Department of Administration.

(10)    'Deputy director' means an employee who has been appointed under the provisions of Section 1-30-10(E), oversees a division, and reports directly to the agency head.

(10)(11)    'Full-time equivalent' or 'FTE' means a value expressing a percentage of time in hours and of funds related to a particular position authorized by appropriations acts enacted by the General Assembly.

(11)(12)    'Grievance' means a complaint filed by a covered employee or the employee's representative regarding an adverse employment action designated in Section 8-17-330 taken by an agency.

(12)(13)    'Instructional personnel' means employees of an agency that has primarily an educational mission, excluding the state technical colleges and excluding those employees exempted in Section 8-17-370(10) who work an academic year.

(13)(14)    'Involuntary reassignment' means the movement of an employee's principal place of employment in excess of thirty miles from the prior work station at the initiative of the agency. The reassignment of an employee by an agency in excess of thirty miles from the prior work station to the nearest facility with an available position having the same state salary range for which the employee is qualified is not considered involuntary reassignment.

(14)(15)    'Mediation' means an alternative dispute resolution process whereby a mediator who is an impartial third party acts to encourage and facilitate the resolution of a dispute without prescribing what it should be. The process is informal and nonadversarial with the objective of helping the disputing parties reach a mutually acceptable agreement.

(15)(16)    'Mediation-arbitration' means an alternative dispute resolution process that provides for the submission of an appeal to a mediator-arbitrator, an impartial third party who conducts conferences to attempt to resolve the grievance by mediation and render a decision that is final and binding on the parties if the appeal is not mediated.

(16)(17)    'Probationary employee' means a full-time or part-time employee occupying a part or all of an established FTE position in the initial working test period of employment with the State of twelve months' duration for noninstructional personnel, of the academic year duration for instructional personnel except for those at state technical colleges, or of not more than two full academic years' duration for faculty at state technical colleges. An employee who receives an unsatisfactory performance appraisal during the probationary period must be terminated before becoming a covered employee.

(17)(18)    'Promotion' means an employee's change from a position in one class to a position in another class having a higher state salary range. Failure to be selected for a promotion is not an adverse employment action that can be considered as a grievance or appeal.

(18)(19)    'Punitive reclassification' means the assignment of a position in one class to a different lower class with the sole purpose to penalize the covered employee.

(19)(20)    'Reassignment' means the movement within an agency of an employee from one position to another position having the same state salary range, or the movement of a position within an agency which does not require reclassification.

(20)(21)    'Reclassification' means the assignment of a position in one class to another class which is the result of a natural or an organizational change in duties or responsibilities of the position.

(21)(22)    'Reduction in force' means a determination made by an agency head to eliminate one or more filled positions in one or more organizational units within the agency due to budgetary limitations, shortage of work, or organizational changes.

(22)(23)    'Salary decrease based on performance' means the reduction of a covered employee's compensation based on the results of an Employee Performance Management System (EPMS) evaluation.

(23)(24)    'State Human Resources Director' means the head of the Office of Human Resources of the State Budget and Control Board Department of Administration, or his designee.

(24)(25)    'Suspension' means an enforced leave of absence without pay pending investigation of charges against an employee or for disciplinary purposes.

(25)(26)    'Temporary employee' means a full-time or part-time employee who does not occupy an FTE position, whose employment is not to exceed one year, and who is not a covered employee.

(26)(27)    'Termination' means the action taken by an agency against an employee to separate the employee involuntarily from employment.

(27)(28)    'Transfer' means the movement to a different agency of an employee from one position to another position having the same state salary range, or the movement of a position from one agency to another agency which does not require reclassification."

Subpart 2.

Procurement

SECTION    11.    Section 11-35-70 of the 1976 Code is amended to read:

"Section 11-35-70.    Irrespective of the source of funds, any school district whose budget of total expenditures, including debt service, exceeds seventy-five million dollars annually is subject to the provisions of Chapter 35 of Title 11, and shall notify the Director of the Office of General Services of the Budget and Control Board of its expenditures within ninety days after the close of its fiscal year. However, if a district has its own procurement code which is, in the written opinion of the Office of General Services of the State Budget and Control Board Department of Administration substantially similar to the provisions of the South Carolina Consolidated Procurement Code, the district is exempt from the provisions of the South Carolina Consolidated Procurement Code except for a procurement audit which must be performed every three years by an audit firm approved by the Office of General Services. Costs associated with the internal review and audits are the responsibility of the school district and will be paid to the entity performing the audit."

SECTION    12.    Section 11-35-310 of the 1976 Code is amended to read:

"Section 11-35-310.    Unless the context clearly indicates otherwise:

(1)    'Information Technology (IT)' means data processing, telecommunications, and office systems technologies and services:

(a)    'Data processing' means the automated collection, storage, manipulation, and retrieval of data including: central processing units for micro, mini, and mainframe computers; related peripheral equipment such as terminals, document scanners, word processors, intelligent copiers, off-line memory storage, printing systems, and data transmission equipment; and related software such as operating systems, library and maintenance routines, and applications programs.

(b)    'Telecommunications' means voice, data, message, and video transmissions, and includes the transmission and switching facilities of public telecommunications systems, as well as operating and network software.

(c)    'Office systems technology' means office equipment such as typewriters, duplicating and photocopy machines, paper forms, and records; microfilm and microfiche equipment and printing equipment and services.

(d)    'Services' means the providing of consultant assistance for any aspect of information technology, systems, and networks.

(2)    'Board' means State Budget and Control Board.

(3)    'Business' means any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture, or any other legal entity.

(4)    'Change order' means any written alteration in specifications, delivery point, rate of delivery, period of performance, price, quantity, or other provisions of any contract accomplished by mutual agreement of the parties to the contract.

(5)    'Chief procurement officer' means (a) the management officer for information technology, (b) the state engineer for areas of construction, architectural and engineering, construction management, and land surveying services, and (c) the materials management officer for all other procurements.

(6)    'Information Technology Management Officer' means the person holding the position as the head of the Information Technology Office of the State.

(7)    'Construction' means the process of building, altering, repairing, remodeling, improving, or demolishing any public structure or building or other public improvements of any kind to any public real property. It does not include the routine operation, routine repair or routine maintenance of existing structures, buildings, or real property.

(8)    'Contract' means all types of state agreements, regardless of what they may be called, for the procurement or disposal of supplies, services, information technology, or construction.

(9)    'Contract modification' means a written order signed by the procurement officer, directing the contractor to make changes which the changes clause of the contract authorizes the procurement officer to order without the consent of the contractor.

(10)    'Contractor' means any person having a contract with a governmental body.

(11)    'Cost effectiveness' means the ability of a particular product or service to efficiently provide goods or services to the State. In determining the cost effectiveness of a particular product or service, the appropriate chief procurement officer shall list the relevant factors in the bid notice or solicitation and use only those listed relevant factors in determining the award.

(12)    'Data' means recorded information, regardless of form or characteristics.

(13)    'Days' means calendar days. In computing any period of time prescribed by this code or the ensuing regulations, or by any order of the Procurement Review Panel, the day of the event from which the designated period of time begins to run is not included. If the final day of the designated period falls on a Saturday, Sunday, or a legal holiday for the state or federal government, then the period shall run to the end of the next business day.

(14)    'Debarment' means the disqualification of a person to receive invitations for bids, or requests for proposals, or the award of a contract by the State, for a specified period of time commensurate with the seriousness of the offense or the failure or inadequacy of performance.

(15)    'Department' means the Department of Administration.

(15)(16)    'Designee' means a duly authorized representative of a person with formal responsibilities under the code.

(16)(17)    'Employee' means an individual drawing a salary from a governmental body, whether elected or not, and any nonsalaried individual performing personal services for any governmental body.

(17)    Reserved.

(18)    'Governmental Body' means a state government department, commission, council, board, bureau, committee, institution, college, university, technical school, agency, government corporation, or other establishment or official of the executive or judicial branch. Governmental body excludes the General Assembly or its respective branches or its committees, Legislative Council, the Office of Legislative Printing, Information and Technology Systems, and all local political subdivisions such as counties, municipalities, school districts, or public service or special purpose districts or any entity created by act of the General Assembly for the purpose of erecting monuments or memorials or commissioning art that is being procured exclusively by private funds.

(19)    'Grant' means the furnishing by the State or the United States government of assistance, whether financial or otherwise, to a person to support a program authorized by law. It does not include an award, the primary purpose of which is to procure specified end products, whether in the form of supplies, services, information technology, or construction. A contract resulting from such an award must not be considered a grant but a procurement contract.

(20)    'Invitation for bids' means a written or published solicitation issued by an authorized procurement officer for bids to contract for the procurement or disposal of stated supplies, services, information technology, or construction, which will ordinarily result in the award of the contract to the responsible bidder making the lowest responsive bid.

(21)    'Materials Management Officer' means the person holding the position as the head of the materials management office of the State.

(22)    'Office' means a nonmobile place for the regular transaction of business or performance of a particular service and staffed by at least one employee on a routine basis.

(23)    'Political subdivision' means all counties, municipalities, school districts, public service or special purpose districts.

(24)    'Procurement' means buying, purchasing, renting, leasing, or otherwise acquiring any supplies, services, information technology, or construction. It also includes all functions that pertain to the obtaining of any supply, service, or construction, including description of requirements, selection, and solicitation of sources, preparation and award of contracts, and all phases of contract administration.

(25)    'Procurement officer' means any person duly authorized by the governmental body, in accordance with procedures prescribed by regulation, to enter into and administer contracts and make written determinations and findings with respect thereto. The term also includes an authorized representative of the governmental body within the scope of his authority.

(26)    'Purchasing agency' means any governmental body other than the chief procurement officers authorized by this code or by way of delegation from the chief procurement officers to enter into contracts.

(27)    'Real property' means any land, all things growing on or attached thereto, and all improvements made thereto including buildings and structures located thereon.

(28)    'Request for proposals (RFP)' means a written or published solicitation issued by an authorized procurement officer for proposals to provide supplies, services, information technology, or construction which ordinarily result in the award of the contract to the responsible bidder making the proposal determined to be most advantageous to the State. The award of the contract must be made on the basis of evaluation factors that must be stated in the RFP.

(29)    'Services' means the furnishing of labor, time, or effort by a contractor not required to deliver a specific end product, other than reports which are merely incidental to required performance. This term includes consultant services other than architectural, engineering, land surveying, construction management, and related services. This term does not include employment agreements or services as defined in Section 11-35-310(1)(d).

(30)    'Subcontractor' means any person having a contract to perform work or render service to a prime contractor as a part of the prime contractor's agreement with a governmental body.

(31)    'Supplies' means all personal property including, but not limited to, equipment, materials, printing, and insurance.

(32)    'State' means state government.

(33)    'State Engineer' means the person holding the position as head of the state engineer's office.

(34)    'Suspension' means the disqualification of a person to receive invitations for bids, requests for proposals, or the award of a contract by the State, for a temporary period pending the completion of an investigation and any legal proceedings that may ensue because a person is suspected upon probable cause of engaging in criminal, fraudulent, or seriously improper conduct or failure or inadequacy of performance which may lead to debarment.

(35)    'Term contract' means contracts established by the chief procurement officer for specific supplies, services, or information technology for a specified time and for which it is mandatory that all governmental bodies procure their requirements during its term. As provided in the solicitation, if a public procurement unit is offered the same supplies, services, or information technology at a price that is at least ten percent less than the term contract price, it may purchase from the vendor offering the lower price after first offering the vendor holding the term contract the option to meet the lower price. The solicitation used to establish the term contract must specify contract terms applicable to a purchase from the vendor offering the lower price. If the vendor holding the term contract meets the lower price, then the governmental body shall purchase from the contract vendor. All decisions to purchase from the vendor offering the lower price must be documented by the procurement officer in sufficient detail to satisfy the requirements of an external audit. A term contract may be a multi-term contract as provided in Section 11-35-2030.

(36)    'Using agency' means any governmental body of the State which utilizes any supplies, services, information technology, or construction purchased under this code.

(37)    'Designated board office' and 'designated board officer' means the office or officer 'Designated department office' and 'designated department officer' means the office or officer designated in accordance with Section 11-35-540(5)."

SECTION    13.    Section 11-35-540 of the 1976 Code is amended to read:

"Section 11-35-540.    (1)    Authority to Promulgate Regulations. Except as otherwise provided in this code, the board department may promulgate regulations, consistent with this code, governing the procurement, management, control, and disposal of all supplies, services, information technology, and construction to be procured by the State. These regulations are binding in all procurements made by the State.

(2)    Nondelegation. The board department may not delegate its power to promulgate regulations.

(3)    Approval of Operational Procedures. Governmental bodies shall develop internal operational procedures consistent with this code; except, that the operational procedures must be approved in writing by the appropriate chief procurement officer. The operational procedures must be consistent with this chapter. Operational procedures adopted pursuant to this chapter are exempt from the requirements of Section 1-23-140.

(4)    The board department shall consider and decide matters of policy within the provisions of this code including those referred to it by the chief procurement officers. The board department has the power to audit and monitor the implementation of its regulations and the requirements of this code.

(5)    For every reference in this code to a 'designated board department office', the chief executive officer of the board department shall designate the office or other subdivision of the board department that is responsible for the referenced statutory role. For every reference in this code to a 'designated board department officer', the chief executive officer of the board department shall designate the board department officer or other board department position that is responsible for the referenced statutory role. More than one office or officer may be designated for any referenced statutory role. All designations pursuant to this subparagraph must be submitted in writing to the chief procurement officers."

SECTION    14.    Section 11-35-710 of the 1976 Code is amended to read:

"Section 11-35-710.    The board department, upon the recommendation of the designated board department office, may exempt governmental bodies from purchasing certain items through the respective chief procurement officer's area of responsibility. The board department may exempt specific supplies, services, information technology, or construction from the purchasing procedures required in this chapter and for just cause by unanimous written decision limit or may withdraw exemptions provided for in this section. The following exemptions are granted from this chapter:

(1)    the construction, maintenance, and repair of bridges, highways, and roads; vehicle and road equipment maintenance and repair; and other emergency-type parts or equipment utilized by the Department of Transportation or the Department of Public Safety;

(2)    the purchase of raw materials by the South Carolina Department of Corrections, Division of Prison Industries;

(3)    South Carolina State Ports Authority;

(4)    Division of Public Railways of the Department of Commerce;

(5)    South Carolina Public Service Authority;

(6)    expenditure of funds at state institutions of higher learning derived wholly from athletic or other student contests, from the activities of student organizations, and from the operation of canteens and bookstores, except as the funds are used for the procurement of construction, architect-engineer, construction-management, and land surveying services;

(7)    livestock, feed, and veterinary supplies;

(8)    articles for commercial sale by all governmental bodies;

(9)    fresh fruits, vegetables, meats, fish, milk, and eggs;

(10)    South Carolina Arts Commission and South Carolina Museum Commission for the purchase of one-of-a-kind items such as paintings, antiques, sculpture, and similar objects. Before a governmental body procures the objects, the head of the purchasing agency shall prepare a written determination specifying the need for the objects and the benefits to the State. The South Carolina Arts Commission shall review the determination and forward a recommendation to the board department for approval;

(11)    published books, periodicals, and technical pamphlets;

(12)    South Carolina Research Authority;

(13)    the purchase of supplies, services, or information technology by state offices, departments, institutions, agencies, boards, and commissions or the political subdivisions of this State from the South Carolina Department of Corrections, Division of Prison Industries;

(14)    Medical University Hospital Authority, if the Medical University Hospital Authority has promulgated a procurement process in accordance with its enabling provision."

SECTION    15.    Section 11-35-820 of the 1976 Code is amended to read:

"Section 11-35-820.    There is created within the board department, the Information Technology Management Office to be headed by the Information Technology Management Officer. All procurements involving information technology, and any pre-procurement and post-procurement activities in this area, must be conducted in accordance with the regulations promulgated by the board department, except as otherwise provided in this code by specific reference to the Information Technology Management Office."

SECTION    16.    Section 11-35-830 of the 1976 Code is amended to read:

"Section 11-35-830.    There is created within the board department, the State Engineer's Office to be headed by the State Engineer. All procurements involving construction, architectural and engineering, construction management, and land surveying services, as defined in Section 11-35-2910, and any pre-procurement and post-procurement activities in this area, must be conducted in accordance with the "Manual for Planning and Execution of State Permanent Improvements" and with any regulations promulgated by the board department, unless otherwise provided in this code by specific reference to the State Engineer's Office."

SECTION    17.    Section 11-35-840 of the 1976 Code is amended to read:

"Section 11-35-840.    Subject to the regulations of the board department, the chief procurement officers may delegate authority to designees or to any department, agency, or official."

SECTION    18.    Section 11-35-1030 of the 1976 Code is amended to read:

"Section 11-35-1030.    The chief procurement officers develop a system of training for procurement in accordance with regulations by the board department. The training must encompass the latest techniques and methods of public procurement. If considered appropriate by the chief procurement officers, the training must include a requirement for the certification of the procurement officer of each purchasing agency."

SECTION    19.    Section 11-35-1210 of the 1976 Code is amended to read:

"Section 11-35-1210.    (1)    Authority. The board department may assign differential dollar limits below which individual governmental bodies may make direct procurements not under term contracts. The designated board department office shall review the respective governmental body's internal procurement operation, shall certify in writing that it is consistent with the provisions of this code and the ensuing regulations, and recommend to the board department those dollar limits for the respective governmental body's procurement not under term contract.

(2)    Policy. Authorizations granted by the board department to a governmental body are subject to the following:

(a)    adherence to the provisions of this code and the ensuing regulations, particularly concerning competitive procurement methods;

(b)    responsiveness to user needs;

(c)    obtaining of the best prices for value received.

(3)    Adherence to Provisions of the Code. All procurements shall be subject to all the appropriate provisions of this code, especially regarding competitive procurement methods and nonrestrictive specifications."

SECTION    20.    Section 11-35-1230 of the 1976 Code is amended to read:

"Section 11-35-1230.    (1)    The designated board department office, through consultation with the chief procurement officers, shall develop written plans for the auditing of state procurements. In procurement audits of governmental bodies thereafter, the auditors from the designated board department office shall review the adequacy of the system's internal controls in order to ensure compliance with the requirement of this code and the ensuing regulations. A noncompliance discovered through audit must be transmitted in management letters to the audited governmental body and the Budget and Control Board Department of Administration. The auditors shall provide in writing proposed corrective action to governmental bodies. Based upon audit recommendations of the designated board department office, the board department may revoke certification as provided in Section 11-35-1210 and require the governmental body to make all procurements through the appropriate chief procurement officer above a dollar limit set by the board department, until such time as the board department is assured of compliance with this code and its regulations by that governmental body.

(2)    The Division of Budget Analysis, or other office or division within the Budget and Control Board, in consultation with the Comptroller General, shall assume responsibility for operation and maintenance of the automated quarterly fiscal reporting procedures. The Comptroller General and the Division of Budget Analysis, or other office or division within the Budget and Control Board, shall assume responsibility for providing quarterly reports to the General Assembly regarding the status of personnel positions, budgets, transfers, and expenditures in all state agencies, departments, and institutions in a format developed in consultation with the Legislative Audit Council. The Legislative Audit Council shall periodically review the reporting system and coordinate legislative information needs with the Office of the Comptroller General and the Division of Budget Analysis, or other office or division within the Budget and Control Board, as necessary. All agencies, departments and institutions of state government shall report to the Comptroller General and the Division of Budget Analysis, or other office or division within the Budget and Control Board, any required information. The Legislative Audit Council shall undertake a periodic review of the reporting and data analysis system developed by the division for reporting both commodities purchased and those not purchased through the division's central purchasing system, and shall make recommendations for incorporating these reporting procedures into the Statewide Accounting and Reporting System (STARS) as necessary to reduce unnecessary duplication and improve efficiency, effectiveness, and accountability."

SECTION    21.    Section 11-35-1240 of the 1976 Code is amended to read:

"Section 11-35-1240.    (A)    The board department shall prescribe administrative penalties for violation of the provisions of this code and of regulations promulgated under it, excluding those matters under the jurisdiction of the Ethics Commission as provided by law.

(B)    Violation of these provisions is grounds for loss of or reduction in authority delegated by either the board department or this code."

SECTION    22.    Section 11-35-1520 of the 1976 Code is amended to read:

"Section 11-35-1520.    (1)    Condition for Use. Contracts greater than fifty thousand dollars must be awarded by competitive sealed bidding except as otherwise provided in Section 11-35-1510.

(2)    Invitation for Bids. An invitation for bids must be issued in an efficient and economical manner and must include specifications and all contractual terms and conditions applicable to the procurement.

(3)    Notice. Adequate notice of the invitation for bids must be given at a reasonable time before the date set forth in it for the opening of bids. The notice must include publications in 'South Carolina Business Opportunities' or a means of central electronic advertising as approved by the designated board department office. Governmental bodies may charge vendors the cost incurred for copying and mailing bid or proposal documents requested in response to a procurement.

(4)    Receipt and Safeguarding of Bids. All bids, including modifications, received before the time of opening must be kept secure and unopened, except as provided by regulation of the board department.

(5)    Bid Opening. Bids must be opened publicly in the presence of one or more witnesses, at the time and place designated in the invitation for bids and in the manner prescribed by regulation of the board department. The amount of each bid, and other relevant information as may be specified by regulation, together with the name of each bidder, must be tabulated. The tabulation must be open to public inspection at that time.

(6)    Bid Acceptance and Bid Evaluation. Bids must be accepted unconditionally without alteration or correction, except as otherwise authorized in this code. The invitation for bids must set forth the evaluation criteria to be used. Criteria must not be used in bid evaluation that are not in the invitation for bids. Bids must be evaluated based on the requirements in the invitation for bids and in accordance with the regulations of the board department.

(7)    Correction or Withdrawal of Bids; Cancellation of Awards. Correction or withdrawal of inadvertently erroneous bids before bid opening, withdrawal of inadvertently erroneous bids after award, or cancellation and reward of awards or contracts, after award but before performance, may be permitted in accordance with regulations promulgated by the board department. After bid opening, changes in bid prices or other provisions of bids prejudicial to the interest of the State or fair competition must not be permitted. After opening, bids must not be corrected or withdrawn except in accordance with the provisions of this code and the regulations promulgated pursuant to it. Except as otherwise provided by regulation, all decisions to permit the correction or withdrawal of bids, or to cancel awards or contracts, after award but before performance, must be supported by a written determination of appropriateness made by the chief procurement officers or head of a purchasing agency.

(8)    Discussion with Bidders. As provided in the invitation for bids, discussions may be conducted with apparent responsive bidders for the purpose of clarification to assure full understanding of the requirements of the invitation for bids. All bids, in the procuring agency's sole judgment, needing clarification must be accorded that opportunity. Clarification of a bidder's bid must be documented in writing by the procurement officer and must be included with the bid. Documentation concerning the clarification must be subject to disclosure upon request as required by Section 11-35-410.

(9)    Tie Bids. If two or more bidders are tied in price while otherwise meeting all of the required conditions, awards are determined in the following order of priority:

(a)    If there is a South Carolina firm tied with an out-of-state firm, the award must be made automatically to the South Carolina firm.

(b)    Tie bids involving South Carolina produced or manufactured products, when known, and items produced or manufactured out of the State must be resolved in favor of the South Carolina commodity.

(c)    Tie bids involving a business certified by the South Carolina Office of Small and Minority Business Assistance as a Minority Business Enterprise must be resolved in favor of the Minority Business Enterprise.

(d)    Tie bids involving South Carolina firms must be resolved in favor of the South Carolina firm located in the same taxing jurisdiction as the governmental body's consuming location.

(e)    In all other situations in which bids are tied, the award must be made to the tied bidder offering the quickest delivery time, or if the tied bidders have offered the same delivery time, the tie must be resolved by the flip of a coin witnessed by the procurement officer. All responding vendors must be invited to attend.

(10)    Award. Unless there is a compelling reason to reject bids as prescribed by regulation of the board department, notice of an award or an intended award of a contract to the lowest responsive and responsible bidders whose bid meets the requirements set forth in the invitation for bids must be given by posting the notice at a location specified in the invitation for bids. For contracts with a total or potential value in excess of fifty thousand dollars but less than one hundred thousand dollars, notice of the award of a contract must be given by posting and must be sent to all bidders responding to the solicitation on the same day that the notice is posted in accordance with this section. For contracts with a total or potential value of one hundred thousand dollars or greater, notice of an intended award of a contract must be given by posting the notice for ten days before entering into a contract and must be sent to all bidders responding to the solicitation on the same day that the notice is posted in accordance with this section. The posting date shall appear on the face of all these notices. Before the posting of the award, the procuring agency may negotiate with the lowest responsive and responsible bidder to lower his bid within the scope of the invitation for bids. The invitation for bids and a notice of award or notice of intent to award must contain a statement of a bidder's right to protest pursuant to Section 11-35-4210(1). When only one response is received, the notice of intent to award and the delay of award may be waived.

(11)    Request for Qualifications.

(a)    Before soliciting bids, the procurement officer, may issue a request for qualifications from prospective bidders. The request must contain, at a minimum, a description of the scope of work to be solicited by the invitation for bids, the deadline for submission of information, and how prospective bidders may apply for consideration. The request must require information concerning the prospective bidders' product specifications, qualifications, experience, and ability to perform the requirements of the contract. Adequate public notice of the request for qualifications must be given in the manner provided in Section 11-35-1520(3).

(b)    After receipt of the responses to the request for qualifications from prospective bidders, the rank of the prospective bidders must be determined in writing from most qualified to least qualified on the basis of the information provided. Bids then must be solicited from at least the top two prospective bidders by means of an invitation for bids. The determination regarding how many bids to solicit is not subject to review under Article 17.

(12)    (Reserved)

(13)    Minor Informalities and Irregularities in Bids. A minor informality or irregularity is one which is merely a matter of form or is some immaterial variation from the exact requirements of the invitation for bids having no effect or merely a trivial or negligible effect on total bid price, quality, quantity, or delivery of the supplies or performance of the contract, and the correction or waiver of which would not be prejudicial to bidders. The procurement officer shall either give the bidder an opportunity to cure any deficiency resulting from a minor informality or irregularity in a bid or waive any such deficiency when it is to the advantage of the State. Such communication or determination shall be in writing. Examples of minor informalities or irregularities include, but are not limited to:

(a)    failure of a bidder to return the number of copies of signed bids required by the solicitation;

(b)    failure of a bidder to furnish the required information concerning the number of the bidder's employees or failure to make a representation concerning its size;

(c)    failure of a bidder to sign its bid, but only if the firm submitting the bid has formally adopted or authorized the execution of documents by typewritten, printed, or rubber stamped signature and submits evidence of that authorization, and the bid carries that signature or the unsigned bid is accompanied by other material indicating the bidder's intention to be bound by the unsigned document, such as the submission of a bid guarantee with the bid or a letter signed by the bidder with the bid referring to and identifying the bid itself;

(d)    failure of a bidder to acknowledge receipt of an amendment to a solicitation, but only if:

(i)        the bid received indicates in some way that the bidder received the amendment, such as where the amendment added another item to the solicitation and the bidder submitted a bid, on it, if the bidder states under oath that it received the amendment before bidding and that the bidder will stand by its bid price; or

(ii)    the amendment has no effect on price or quantity or merely a trivial or negligible effect on quality or delivery, and is not prejudicial to bidders, such as an amendment correcting a typographical mistake in the name of the governmental body;

(e)    failure of a bidder to furnish an affidavit concerning affiliates;

(f)    failure of a bidder to execute the certifications with respect to equal opportunity and affirmative action programs;

(g)    failure of a bidder to furnish cut sheets or product literature;

(h)    failure of a bidder to furnish certificates of insurance;

(i)        failure of a bidder to furnish financial statements;

(j)        failure of a bidder to furnish references;

(k)    failure of a bidder to furnish its bidder number; and

(l)        notwithstanding Title 40, the failure of a bidder to indicate his contractor's license number or other evidence of licensure, except that a contract must not be awarded to the bidder unless and until the bidder is properly licensed under the laws of South Carolina."

SECTION    23.    Section 11-35-1530 of the 1976 Code is amended to read:

"Section 11-35-1530.    (1)    Conditions for Use. If a purchasing agency determines in writing that the use of competitive sealed bidding is either not practicable or not advantageous to the State, a contract may be entered into by competitive sealed proposals subject to the provisions of Section 11-35-1520 and the ensuing regulations, unless otherwise provided in this section. Subject to the requirements of Section 11-35-3220, the board department may provide by regulation that it is either not practicable or not advantageous to the State to procure specified types of supplies, services, information technology, or construction by competitive sealed bidding.

(2)    Public Notice. Adequate public notice of the request for proposals must be given in the same manner as provided in Section 11-35-1520(3).

(3)    Receipt of Proposals. Proposals must be opened publicly in accordance with regulations of the board department. A tabulation of proposals must be prepared in accordance with regulations promulgated by the board department and must be open for public inspection after contract award.

(4)    Request for Qualifications.

(a)    Before soliciting proposals, the procurement officer may issue a request for qualifications from prospective offerors. The request must contain at a minimum a description of the scope of the work to be solicited by the request for proposals and must state the deadline for submission of information and how prospective offerors may apply for consideration. The request must require information only on their qualifications, experience, and ability to perform the requirements of the contract.

(b)    After receipt of the responses to the request for qualifications from prospective offerors, rank of the prospective offerors must be determined in writing from most qualified to least qualified on the basis of the information provided. Proposals then must be solicited from at least the top two prospective offerors by means of a request for proposals. The determination regarding how many proposals to solicit is not subject to review pursuant to Article 17.

(5)    Evaluation Factors. The request for proposals must state the relative importance of the factors to be considered in evaluating proposals but may not require a numerical weighting for each factor. Price may, but need not, be an evaluation factor.

(6)    Discussion with Offerors. As provided in the request for proposals, and under regulations, discussions may be conducted with offerors who submit proposals determined to be reasonably susceptible of being selected for award for the purpose of clarification to assure full understanding of, and responsiveness to, the solicitation requirements. All offerors whose proposals, in the procurement officer's sole judgment, need clarification must be accorded that opportunity.

(7)    Selection and Ranking. Proposals must be evaluated using only the criteria stated in the request for proposals and there must be adherence to weightings that have been assigned previously. Once evaluation is complete, all responsive offerors must be ranked from most advantageous to least advantageous to the State, considering only the evaluation factors stated in the request for proposals. If price is an initial evaluation factor, award must be made in accordance with Section 11-35-1530(9) below.

(8)    Negotiations. Whether price was an evaluation factor or not, the procurement officer, in his sole discretion and not subject to review under Article 17, may proceed in any of the manners indicated below, except that in no case may confidential information derived from proposals and negotiations submitted by competing offerors be disclosed:

(a)    negotiate with the highest ranking offeror on price, on matters affecting the scope of the contract, so long as the changes are within the general scope of the request for proposals, or on both. If a satisfactory contract cannot be negotiated with the highest ranking offeror, negotiations may be conducted, in the sole discretion of the procurement officer, with the second, and then the third, and so on, ranked offerors to the level of ranking determined by the procurement officer in his sole discretion;

(b)    during the negotiation process as outlined in item (a) above, if the procurement officer is unsuccessful in his first round of negotiations, he may reopen negotiations with any offeror with whom he previously negotiated; or

(c)    the procurement officer may make changes within the general scope of the request for proposals and may provide all responsive offerors an opportunity to submit their best and final offers.

(9)    Award. Award must be made to the responsible offeror whose proposal is determined in writing to be the most advantageous to the State, taking into consideration price and the evaluation factors set forth in the request for proposals, unless the procurement officer determines to utilize one of the options provided in Section 11-35-1530(8). The contract file must contain the basis on which the award is made and must be sufficient to satisfy external audit. Procedures and requirements for the notification of intent to award the contract must be the same as those provided in Section 11-35-1520(10)."

SECTION    24.    Section 11-35-1550 of the 1976 Code is amended to read:

"Section 11-35-1550.    Authority.    (1)    The following small purchase procedures may be utilized only in conducting procurements for governmental bodies that are up to fifty thousand dollars in actual or potential value. A governmental body may conduct its own procurement up to fifty thousand dollars in actual or potential value, and a governmental body that has received procurement certification pursuant to Section 11-35-1210 to handle the type and estimated value of the procurement may conduct the procurement under its own authority in accordance with this code. Procurement requirements must not be artificially divided by governmental bodies so as to constitute a small purchase pursuant to this section.

(2)    Competition and Price Reasonableness.

(a)    Purchases not in excess of two thousand five hundred dollars. Small purchases not exceeding two thousand five hundred dollars may be accomplished without securing competitive quotations if the prices are considered reasonable. The purchasing office must annotate the purchase requisition: 'Price is fair and reasonable' and sign. The purchases must be distributed equitably among qualified suppliers. When practical, a quotation must be solicited from other than the previous supplier before placing a repeat order. The administrative cost of verifying the reasonableness of the price of purchase 'not in excess of" may more than offset potential savings in detecting instances of overpricing. Action to verify the reasonableness of the price need be taken only when the procurement officer of the governmental body suspects that the price may not be reasonable, comparison to previous price paid, or personal knowledge of the item involved.

(b)    Purchases over two thousand five hundred dollars to ten thousand dollars. Solicitation of written quotes from a minimum of three qualified sources of supply must be made and documentation of the quotes attached to the purchase requisition for a small purchase over two thousand five hundred dollars but not in excess of ten thousand dollars. The award must be made to the lowest responsive and responsible sources.

(c)    Purchases over ten thousand dollars up to fifty thousand dollars. Written solicitation of written quotes, bids, or proposals must be made for a small purchase over ten thousand dollars but not in excess of fifty thousand dollars. The procurement must be advertised at least once in the South Carolina Business Opportunities publication or through a means of central electronic advertising as approved by the designated board department office. A copy of the written solicitation and written quotes must be attached to the purchase requisition. The award must be made to the lowest responsive and responsible source or, when a request for proposal process is used, the highest ranking offeror.

(3)    All competitive procurements above ten thousand dollars must be advertised at least once in the South Carolina Business Opportunities publication or through a means of central electronic advertising as approved by the designated board department office. Governmental bodies may charge vendors the cost incurred for copying and mailing bid or proposal documents requested in response to a procurement.

(4)    The Division of Aeronautics of the Department of Commerce may act as its own purchasing agency for all procurements of maintenance services for aircraft and these procurements may be conducted pursuant to Section 11-35-1550(2)(b)."

SECTION    25.    Section 11-35-1560 of the 1976 Code is amended to read:

"Section 11-35-1560.    (A)    A contract may be awarded for a supply, service, information technology, or construction item without competition if, under regulations promulgated by the board department, the chief procurement officer, the head of a purchasing agency, or a designee of either officer, above the level of the procurement officer, determines in writing that there is only one source for the required supply, service, information technology, or construction item.

(B)    These regulations must include the requirements contained in this paragraph. Written documentation must include the determination and basis for the proposed sole source procurement. A delegation of authority by either the chief procurement officer or the head of a governmental body with respect to sole source determinations must be submitted in writing to the Materials Management Officer. In cases of reasonable doubt, competition must be solicited. Any decision by a governmental body that a procurement be restricted to one potential vendor must be accompanied by an explanation as to why no other will be suitable or acceptable to meet the need.

(C)    A violation of these regulations by a purchasing agency, upon recommendation of the designated board department office with approval of the majority of the Budget and Control Board Executive Director of the Department of Administration, must result in the temporary suspension, not to exceed one year, of the violating governmental body's ability to procure supplies, services, information technology, or construction items pursuant to this section."

SECTION    26.    Section 11-35-1570 of the 1976 Code is amended to read:

"Section 11-35-1570.    Notwithstanding any other provision of this code, the chief procurement officer, the head of a purchasing agency, or a designee of either officer may make or authorize others to make emergency procurements only when there exists an immediate threat to public health, welfare, critical economy and efficiency, or safety under emergency conditions as defined in regulations promulgated by the board department; and provided, that such emergency procurements shall be made with as much competition as is practicable under the circumstances. A written determination of the basis for the emergency and for the selection of the particular contractor shall be included in the contract file."

SECTION    27.    Section 11-35-1810 of the 1976 Code is amended to read:

"Section 11-35-1810.    (1)    Determination of Responsibility. Responsibility of the bidder or offeror shall be ascertained for each contract let by the State based upon full disclosure to the procurement officer concerning capacity to meet the terms of the contracts and based upon past record of performance for similar contracts. The board department shall by regulation establish standards of responsibility that shall be enforced in all state contracts.

(2)    Determination of Nonresponsibility. A written determination of nonresponsibility of a bidder or offeror shall be made in accordance with regulations promulgated by the board department. The unreasonable failure of a bidder or offeror to supply information promptly in connection with an inquiry with respect to responsibility may be grounds for a determination of nonresponsibility with respect to such bidder or offeror.

(3)    Right of Nondisclosure. Except as otherwise provided by law, information furnished by a bidder or offeror pursuant to this section shall not be disclosed outside of the offices of the board department, the Office of the Attorney General, or the purchasing agency without prior written consent by the bidder or offeror."

SECTION    28.    Section 11-35-1820 of the 1976 Code is amended to read:

"Section 11-35-1820.    The board department shall be authorized to provide by regulation for prequalification of suppliers or supplies."

SECTION    29.    Section 11-35-1830 of the 1976 Code is amended to read:

"Section 11-35-1830.    (1)    Contractor Certification. A contractor shall, except as provided in subsection (3) of this section, submit cost or pricing data and shall certify that, to the best of his knowledge and belief, the cost or pricing data submitted is accurate, complete, and current as of mutually determined specified date prior to the date of:

(a)    the pricing of any contract awarded by competitive sealed proposals pursuant to Section 11-35-1530 or pursuant to the sole source procurement authority as provided in Section 11-35-1560 where the total contract price exceeds an amount established by the board department in regulations; or

(b)    the pricing of any change order or contract modification which exceeds an amount established by the board department in regulations.

(2)    Price Adjustment. Any contract, change order or contract modification under which a certificate is required shall contain a provision that the price to the State, including profit or fee, shall be adjusted to exclude any significant sums by which the State finds that such price was increased because the contractor furnished cost or pricing data was inaccurate, incomplete, or not current as of the date agreed upon between parties.

(3)    Cost or Pricing Data Not Required. The requirements of this section shall not apply to contracts:

(a)    where the contract price is based on adequate price competition;

(b)    where the contract price is based on established catalog prices or market prices;

(c)    where contract prices are set by law or regulations; or

(d)    where it is determined in writing in accordance with regulations promulgated by the board department that the requirements of this section may be waived and the reasons for such waiver are stated in writing."

SECTION    30.    Section 11-35-2010 of the 1976 Code is amended to read:

"Section 11-35-2010.    (1)    Types of Contracts. Subject to the limitations of this section, any type of contract that will promote the best interests of the State may be used, except that the use of a cost-plus-a-percentage-of- cost contract must be approved by the appropriate chief procurement officer. A cost-reimbursement contract, including a cost-plus-a-percentage-of-cost contract, may be used only when a determination sufficient for external audit is prepared showing that the contract is likely to be less costly to the State than any other type or that it is impracticable to obtain the supplies, services, information technology, or construction required except under that contract.

(2)(a)    As used in this section:

(i)        'Contracting document' means a standardized or model instrument, or a component part of it, for use as a contract, invitation for bids, request for proposals, request for qualifications, or instruction to bidders including, but not limited to, a contract clause or solicitation provision.

(ii)    'Usage instructions' means directions regarding conditions for use of a contracting document, completion of a contracting document, and the process for obtaining permission, if possible, to omit or depart from the contracting document's established content for a particular solicitation or contract.

(b)    The chief procurement officers may develop contracting documents for their respective areas of responsibility. Contracting documents may be published as internal operating procedures. Contracting documents may be accompanied by usage instructions.

(c)    The board department may adopt formally a contracting document, as developed by the appropriate chief procurement officer, for mandatory use by all governmental bodies only after notice of the proposed adoption has been published in the State Register and the board department has provided the public at least sixty days to make written comments. If a contracting document is adopted by the board department, the contracting document must be published in the State Register, accompanied by usage instructions, and used by all governmental bodies in accordance with its usage instructions. The chief procurement officers are not required to submit for board department approval contracting documents used in connection with either solicitations issued or contracts awarded by the board department or its offices.

(d)    Notwithstanding item (c) above, the board department may promulgate contracting documents as regulations."

SECTION    31.    Section 11-35-2030 of the 1976 Code is amended to read:

"Section 11-35-2030.    (1)    Specified Period. Unless otherwise provided by law, a contract for supplies, services, or information technology must not be entered into for any a period of more than one year unless approved in a manner prescribed by regulation of the board department. The term of the contract and conditions of renewal or extension must be included in the solicitation and funds must be available for the first fiscal period at the time of contracting. Payment and performance obligations for succeeding fiscal periods must be subject to the availability and appropriation of funds for them.

(2)    Determination Prior to Use. Before the utilization of a multi-term contract, it must be determined in writing by the appropriate governmental body that:

(a)    estimated requirements cover the period of the contract and are reasonably firm and continuing; and

(b)    such a contract serves the best interests of the State by encouraging effective competition or otherwise promoting economies in state procurement.

(3)    Cancellation Due to Unavailability of Funds in Succeeding Fiscal Periods. When funds are not appropriated or otherwise made available to support continuation of performance in a subsequent fiscal period, the contract must be canceled.

(4)    The maximum time for a multi-term contract is five years. Contract terms of up to seven years may be approved by the designated board department officer. Contracts exceeding seven years must be approved by the board department."

SECTION    32.    Section 11-35-2740 of the 1976 Code is amended to read:

"Section 11-35-2740.    The chief procurement officers shall obtain advice and assistance from the personnel of the using agencies in the development of specifications, whether through user committees or through the advisory committees, and may delegate in writing to a using agency the authority to prepare and utilize its own specifications. Specifications shall be drawn in such a manner as to ensure maximally cost effective procurement, consistent with regulations promulgated by the board department."

SECTION    33.    Section 11-35-3010 of the 1976 Code is amended to read:

"Section 11-35-3010.    (1)    Selection of Method. The method of construction contracting administration used for a state construction project by a using agency shall be determined to be that method which is most advantageous to the State and will result in the most timely, economical, and successful completion of the construction project. The using agency shall select in accordance with regulations of the board department the appropriate method of construction contracting administration for a particular project and shall state in writing the facts and considerations which led to the selection of that particular method.

(2)    State Engineer's Office Review. The using agency shall submit its written report stating the facts and considerations which led to the selection of the particular method of construction contracting administration to the state engineer's office for its review.

(3)    Approval or Disagreement by State Engineer's Office. The state engineer's office shall have ten days to review the data submitted by the using agency to determine its position with respect to the particular method of construction contracting administration recommended for approval by the using agency, and to notify the using agency of its decision in writing. If the state engineer's office disagrees with the method selected, it may contest such by submitting the matter to the board department for decision. Written notification by the state engineer's office to the using agency of its intention to contest the method selected shall include the reasons therefor. The board department shall hear any such contests at its next regularly scheduled meeting subsequent to notification of the using agency. If the board department rules in support of the state engineer's office position, the using agency shall receive written notification of the decision. If the board department rules in support of the using agency, the using agency shall be notified in writing and thereby be authorized to use that method of construction contracting administration as previously recommended by the using agency on the particular construction project."

SECTION    34.    Section 11-35-3020 of the 1976 Code is amended to read:

"Section 11-35-3020.    (1)    Source Selection. All state construction contracts must be awarded by competitive sealed bidding pursuant to the procedures set forth in Section 11-35-1520, subject to the exceptions enumerated in subsection (2) of this section and except as provided in Sections 11-35-1550, 11-35-1560, and 11-35-1570. Competitive sealed proposals as provided in Section 11-35-1530 must not be used, except in cases and in accordance with criteria as may be authorized and prescribed by regulation of the board department.

(2)    Exceptions in Competitive Sealed Bidding Procedures. The process of competitive sealed bidding as required by subsection (1) must be performed in accordance with the procedures outlined in Article 5 of this code subject to the following exceptions:

(a)    Invitation for Bids. Instead of Section 11-35-1520(2), Section 11-35-1520(3), and Section 11-35-1520(4), invitations for bids for each state construction project subject to subsection (1) must be made in the following manner. Each using agency must be responsible for developing a formal invitation for bids for each state construction project subject to subsection (1). The invitation must include, but not be limited to, all contractual terms and conditions applicable to the procurement. A copy of each invitation for bids must be filed with the State Engineer's Office and must be advertised formally in an official state government publication. The manner in which this official state government publication must be published, the content of the publication itself, the frequency of the publication, the method of subscription to the publication, and the manner by which the publication is distributed must be established by regulation of the board department.

(b)    Bid Acceptance. Instead of Section 11-35-1520(6), the following provision applies. Bids must be accepted unconditionally without alteration or correction, except as otherwise authorized in this code. The using agency's invitation for bids must set forth all requirements of the bid including, but not limited to:

(i)        The using agency, in consultation with the architect-engineer assigned to the project, shall identify by specialty in the invitation for bids all subcontractors, who are expected to perform work for the prime contractor to or about the construction when those subcontractors' contracts are each expected to exceed three percent of the prime contractor's total base bid. In addition, the using agency, in consultation with the architect- engineer assigned to the project, may identify by specialty in the invitation for bids any subcontractors who are expected to perform work which is vital to the project. The determination of which subcontractors are included in the list provided in the invitation for bids is not protestable pursuant to Section 11-35-4210 or another provision of this code. A bidder in response to an invitation for bids shall set forth in his bid the name of only those subcontractors to perform the work as identified in the invitation for bids. If the bidder determines to use his own employees to perform a portion of the work for which he would otherwise be required to list a subcontractor and if the bidder is qualified to perform that work under the terms of the invitation for bids, the bidder shall list himself in the appropriate place in his bid and not subcontract that work except with the approval of the using agency for good cause shown.

(ii)    Failure to complete the list provided in the invitation for bids renders the bidder's bid unresponsive.

(iii)    A prime contractor whose bid is accepted may not substitute a person as subcontractor in place of the subcontractor listed in the original bid, except for one or more of the following reasons:

(aa)    upon a showing satisfactory to the using agency by the contractor that a subcontractor who was listed is not financially responsible;

(bb)    upon a showing satisfactory to the using agency by the contractor that the scope of work bid by a listed subcontractor did not include a portion of the work required in the plans and specifications, and the exclusion is not clearly set forth in the listed subcontractor's original bid;

(cc)    upon a showing satisfactory to the using agency made by the contractor within four working days of the bid opening that the subcontractor was listed as a result of an inadvertent clerical error;

(dd)    upon a showing satisfactory to the using agency by the contractor that the listed subcontractor failed or refused to submit a performance and payment bond when requested by the prime contractor after the subcontractor had represented to the prime contractor that he could obtain a performance and payment bond;

(ee)    upon a showing satisfactory to the using agency by the contractor that the listed subcontractor is required to be licensed and does not have the license by the time it is required by law;

(ff)    when the listed subcontractor fails or refuses to perform his subcontract;

(gg)    when the work of the listed subcontractor is found by the using agency to be substantially unsatisfactory;

(hh)    upon mutual agreement of the contractor and subcontractor;

(ii)    with the consent of the using agency for good cause shown.

(iv)    The request for substitution must be made to the using agency in writing. This written request does not give rise to a private right of action against the prime contractor in the absence of actual malice.

(v)    Where substitution is allowed, the prime contractor, before obtaining prices from another subcontractor, shall attempt in good faith to negotiate a subcontract with at least one subcontractor whose bid was received before the submission of the prime contractor's bid. This section does not affect a contractor's ability to request withdrawal of a bid in accordance with the provisions of this code and the regulations promulgated pursuant to it.

(vi)    The using agency shall send all responsive bidders a copy of the bid tabulation within ten working days following the bid opening.

(c)    Instead of Section 11-35-1520(10) the following provisions apply. Unless there is a compelling reason to reject bids as prescribed by regulation of the board department, notice of an intended award of a contract to the lowest responsive and responsible bidder whose bid meets the requirements set forth in the invitation for bids must be given by posting the notice at a location that is specified in the invitation for bids. The invitation for bids and the posted notice must contain a statement of the bidder's right to protest pursuant to Section 11-35-4210(1) and the date and location of posting must be announced at bid opening. In addition to posting notice, the using agency promptly shall send all responsive bidders a copy of the notice of intended award and of the bid tabulation. The mailed notice must indicate the posting date and must contain a statement of the bidder's right to protest pursuant to Section 11-35-4210(1).

After ten days' notice is given, the using agency may enter into a contract with the bidder named in the notice in accordance with the provisions of this code and of the bid solicited. The procurement officer must comply with Section 11-35-1810.

If, at bid opening, only one bid is received and determined to be responsive and responsible and within the agency's construction budget, award may be made without the ten-day waiting period.

(d)    Negotiations after Unsuccessful Competitive Sealed Bidding. Instead of Section 11-35-1540, the following provisions apply:

(1)(i)    When bids received pursuant to an invitation for bids exceed available funds, and it is determined in writing by the agency that circumstances do not permit the delay required to resolicit competitive sealed bids, and the base bid, less any deductive alternates, does not exceed available funds by an amount greater than ten percent of the construction budget established for that portion of the work, a contract may be negotiated pursuant to this section with the lowest responsible and responsive bidder. The using agency may change the scope of the work to reduce the cost to be within the established construction budget but may not reduce the cost below the established construction budget more than ten percent without a written request by the agency and the written approval of the chief procurement officer based on the best interest of the State.

(2)(ii)    When the lowest base bid received pursuant to an invitation for bids exceeds approved available funds and the using agency is able to identify additional funds for the project, as certified by the appropriate fiscal officers, in the amount of the difference between the lowest base bid and the approved available funds for the project, the using agency shall submit its request to use such additional funds to the board department and the Joint Bond Review Committee in accordance with Sections 2-47-40 and 2-47-50."

SECTION    35.    Section 11-35-3030 of the 1976 Code is amended to read:

"Section 11-35-3030.    (1)    Bid Security.    (a)    Requirement for Bid Security. Bid security is required for all competitive sealed bidding for construction contracts in excess of fifty thousand dollars and other contracts as may be prescribed by the State Engineer's Office. Bid security is a bond provided by a surety company meeting the criteria established by the regulations of the board department or otherwise supplied in a form that may be established by regulation of the board department.

(b)    Amount of Bid Security. Bid security must be in an amount equal to at least five percent of the amount of the bid at a minimum.

(c)    Rejection of Bids for Noncompliance with Bid Security Requirements. When the invitation for bids requires security, noncompliance requires that the bid be rejected except that a bidder who fails to provide bid security in the proper amount or a bid bond with the proper rating must be given one working day from bid opening to cure the deficiencies. If the bidder is unable to cure these deficiencies within one working day of bid opening, his bid must be rejected.

(d)    Withdrawal of Bids. After the bids are opened, they must be irrevocable for the period specified in the invitation for bids. If a bidder is permitted to withdraw its bid before bid opening pursuant to Section 11-35-1520(8) action must not be had against the bidder or the bid security.

(2)    Contract Performance Payment Bonds.

(a)    When Required-Amounts. When a construction contract is awarded pursuant to Section 11-35-3020, the following bonds or security must be delivered to the using agency and become binding on the parties upon the execution of the contract:

(i)        a performance bond satisfactory to the State, executed by a surety company meeting the criteria established by the board department in regulations, or otherwise secured in a manner satisfactory to the State, in an amount equal to one hundred percent of the price specified in the contract;

(ii)    a payment bond satisfactory to the State, executed by a surety company meeting the criteria established by the board department in regulations, or otherwise secured in a manner satisfactory to the State, for the protection of all persons supplying labor and material to the contractor or its subcontractors for the performance of the work provided for in the contract. The bond must be in an amount equal to one hundred percent of the contract price;

(iii)    in the case of a construction contract valued at fifty thousand dollars or less, the using agency may waive the requirements of (i) and (ii) above, provided that the using agency has protected the State.

(b)    Authority to Require Additional Bonds. Subsection (2) does not limit the authority of the board department to require a performance bond or other security in addition to these bonds, or in circumstances other than specified in item (a) of that subsection in accordance with regulations promulgated by the board department.

(c)    Suits on Payment Bonds--Right to Institute. Every person who has furnished labor, material, or rental equipment to a bonded contractor or his subcontractors for the work specified in the contract, and who has not been paid in full for it before the expiration of a period of ninety days after the day on which the last of the labor was done or performed by the person or material or rental equipment was furnished or supplied by the person for which the claim is made, has the right to sue on the payment bond for the amount, or the balance of it, unpaid at the time of institution of the suit and to prosecute the action for the sum or sums justly due the person. A remote claimant has a right of action on the payment bond only upon giving written notice to the contractor within ninety days from the date on which the person did or performed the last of the labor or furnished or supplied the last of the material or rental equipment upon which the claim is made, stating with substantial accuracy the amount claimed as unpaid and the name of the party to whom the material or rental equipment was furnished or supplied or for whom the labor was done or performed. The written notice to the bonded contractor must be served personally or served by mailing the notice by registered or certified mail, postage prepaid, in an envelope addressed to the bonded contractor at any place the bonded contractor maintains a permanent office for the conduct of its business, or at the current address as shown on the records of the Department of Labor, Licensing and Regulation. The aggregate amount of a claim against the payment bond by a remote claimant may not exceed the amount due by the bonded contractor to the person to whom the remote claimant has supplied labor, materials, rental equipment, or services, unless the remote claimant has provided notice of furnishing labor, materials, or rental equipment to the bonded contractor. The written notice to the bonded contractor must be served personally or sent by fax or by electronic mail or by registered or certified mail, postage prepaid, to the bonded contractor at any place the bonded contractor maintains a permanent office for the conduct of its business, or at the current address as shown on the records of the Department of Labor, Licensing and Regulation. After receiving the notice of furnishing labor, materials, or rental equipment, payment by the bonded contractor may not lessen the amount recoverable by the remote claimant. The aggregate amount of claims on the payment bond may not exceed the penal sum of the bond.

A suit under this section must not be commenced after the expiration of one year after the last date of furnishing or providing labor, services, materials, or rental equipment.

For purposes of this section, 'bonded contractor' means the contractor or subcontractor furnishing the payment bond, and 'remote claimant' means a person having a direct contractual relationship with a subcontractor of a bonded contractor, but no expressed or implied contractual relationship with the bonded contractor.

(d)    Suits on Payment Bonds--Where and When Brought. Every suit instituted upon a payment bond must be brought in a court of competent jurisdiction for the county or circuit in which the construction contract was to be performed; except that a suit must not be commenced after the expiration of one year after the day on which the last of the labor was performed or material was supplied by the person bringing suit. The obligee named in the bond need not be joined as a party in the suit.

(3)    Bonds Forms and Copies.

(a)    Bond Forms. The board department shall promulgate by regulation the form of the bonds required by this section.

(b)    Certified Copies of Bonds. A person may request and obtain from the using agency a certified copy of a bond upon payment of the cost of reproduction of the bond and postage, if any. A certified copy of a bond is prima facie evidence of the contents, execution, and delivery of the original.

(4)    Retention.

(a)    Maximum amount to be withheld. In a contract or subcontract for construction which provides for progress payments in installments based upon an estimated percentage of completion, with a percentage of the contract's proceeds to be retained by the State or general contractor pending completion of the contract or subcontract, the retained amount of each progress payment or installment must be no more than three and one-half percent.

(b)    Release of Retained Funds. When the work to be performed on a state construction project or pursuant to a state construction contract is to be performed by multiple prime contractors or by a prime contractor and multiple subcontractors, the work contracted to be done by each individual contractor or subcontractor is considered a separate division of the contract for the purpose of retention. As each division of the contract is certified as having been completed, that portion of the retained funds which is allocable to the completed division of the contract must be released forthwith to the prime contractor, who, within ten days of its receipt, shall release to the subcontractor responsible for the completed work the full amount of retention previously withheld from him by the prime contractor.

(5)    Bonds for Bid Security and Contract Performance. The requirement of a bond for bid security on a construction contract, pursuant to subsection (1), and a construction contract performance bond, pursuant to subsection (2), may not include a requirement that the surety bond be furnished by a particular surety company or through a particular agent or broker."

SECTION    36.    Section 11-35-3040 of the 1976 Code is amended to read:

"Section 11-35-3040.    (1)    Contract Clauses. State construction contracts and subcontracts may include clauses providing for adjustments in prices, time of performance, and other appropriate contract provisions including, but not limited to:

(a)    the unilateral right of a governmental body to order in writing:

(i)        all changes in the work within the scope of the contract, and

(ii)    all changes in the time of performance of the contract which do not alter the scope of the contract work;

(b)    variations occurring between estimated quantities of work in the contract and actual quantities;

(c)    suspension of work ordered by the governmental body;

(d)    site conditions differing from those indicated in the contract or ordinarily encountered.

(2)    Price Adjustments.

(a)    Adjustments in price pursuant to clauses adopted or promulgated pursuant to Section 11-35-2010 must be computed and documented with a written determination. The price adjustment agreed upon must approximate the actual cost to the contractor and all costs incurred by the contractor must be justifiably compared with prevailing industry standards, including reasonable profit. Costs must be properly itemized and supported by substantiating data sufficient to permit evaluation before commencement of the pertinent performance or as soon after that as practicable, and must be arrived at through whichever one of the following ways is the most valid approximation of the actual cost to the contractor:

(i)        by unit prices specified in the contract or subsequently agreed upon;

(ii)    by the costs attributable to the events or situations under those clauses with adjustment of profits or fee, all as specified in the contract or subsequently agreed upon;

(iii)    by agreement on a fixed price adjustment;

(iv)    in another manner as the contracting parties may mutually agree; or

(v)    in the absence of agreement by the parties, through unilateral determination by the governmental body of the costs attributable to the events or situations under those clauses, with adjustment of profit or fee, all as computed by the governmental body in accordance with applicable sections of the regulations issued pursuant to this chapter and subject to the provisions of Article 17 of this chapter.

(b)    A contractor is required to submit cost or pricing data if an adjustment in contract price is subject to the provisions of Section 11-35-1830.

(3)    Additional Contract Clauses. The construction contracts and subcontracts may include clauses providing for appropriate remedies that cover as a minimum:

(a)    specified excuses for delay or nonperformance;

(b)    termination of the contract for default;

(c)    termination of the contract in whole or in part for the convenience of the governmental body.

(4)    Modification of Required Clauses. The chief procurement officer may vary the clauses promulgated by the board department pursuant to subsection (1) and subsection (3) of this section for inclusion in a particular construction contract if the variations are supported by a written determination that states the circumstances justifying the variations, if notice of a material variation is stated in the invitation for bids."

SECTION    37.    Section 11-35-3050 of the 1976 Code is amended to read:

"Section 11-35-3050.    The board department may promulgate regulations setting forth cost principles which shall be used to determine the allowability of incurred costs for the purpose of reimbursing costs under provisions in construction contracts which provide for the reimbursement of costs."

SECTION    38.    Section 11-35-3220 of the 1976 Code is amended to read:

"Section 11-35-3220.    (1)    Agency Selection Committee. Each using agency shall establish its own architect-engineer, construction management, and land surveying services selection committee, referred to as the agency selection committee, that must be composed of those individuals whom the agency head determines to be qualified to make an informed decision as to the most competent and qualified firm for the proposed project. The head of the using agency or his qualified responsible designee shall sit as a permanent member of the agency selection committee for the purpose of coordinating and accounting for the committee's work. To assist an agency selection committee in the selection of firms to be employed for significant or highly technical projects and to facilitate prompt selections, the agency selection committee may invite the State Engineer or his designee to sit as a nonvoting member of the committee.

(2)(a)    Advertisement of Project Description. The agency selection committee is responsible for:

(i)        developing a description of the proposed project;

(ii)    enumerating all required professional services for that project; and

(iii)    preparing a formal invitation to firms for submission of information.

(b)    The invitation must include, but not be limited to, the project title, the general scope of work, a description of all professional services required for that project, the submission deadline, and how interested firms may apply for consideration. The agency selection committee shall file a copy of the project description and the invitation with the State Engineer's Office. The invitation must be advertised formally in an official state government publication. The manner in which this official state government publication must be published, the content of the publication itself, the frequency of the publication, the method for subscription to the publication, and the manner by which the publication is distributed must be established by regulation of the board department.

(3)    Response to Invitation. The date for submission of information from interested persons or firms in response to an invitation must not be less than fifteen days after publication of the invitation. Interested architect- engineer, construction management, and land surveying persons or firms shall respond to the invitation with the submission of a current and accurate Federal Standard Form 254, Architect-Engineer and Related Services Questionnaire, and Federal Standard Form 255, Architect-Engineer and Related Services Questionnaire for Specific Project, or their successor forms or similar information as the board department may prescribe by regulation, and other information that the particular invitation may require.

(4)    Interviews with Interested Firms. Following receipt of information from all interested persons and firms, the agency selection committee shall hold interviews with at least three persons or firms who respond to the committee's advertisement and who are considered most qualified on the basis of information available before the interviews. A list of firms selected for interview must be sent to all firms that submitted information in response to the advertisement, before the date selected for the interviews. If less than three persons or firms respond to the advertisement, the committee shall hold interviews with those that did respond. The agency selection committee's determination as to which are to be interviewed must be in writing and based upon its review and evaluation of all submitted materials. The written report of the committee must list specifically the names of all persons and firms that responded to the advertisement and enumerate the reasons of the committee for selecting those to be interviewed. The purpose of the interviews is to provide the further information that may be required by the agency selection committee to fully acquaint itself with the relative qualifications of the several interested firms.

(5)    Selection and Ranking of the Three Most Qualified.

(a)    The agency selection committee shall evaluate each of the persons or firms interviewed in view of their:

(i)        past performance;

(ii)    the ability of professional personnel;

(iii)    demonstrated ability to meet time and budget requirements;

(iv)    location and knowledge of the locality of the project if the application of this criterion leaves an appropriate number of qualified firms, given the nature and size of the project;

(v)    recent, current, and projected workloads of the firms;

(vi)    creativity and insight related to the project;

(vii)    related experience on similar projects;

(viii)    volume of work awarded by the using agency to the person or firm during the previous five years, with the objective of effectuating an equitable distribution of contracts by the State among qualified firms including Minority Business Enterprises certified by the South Carolina Office of Small and Minority Business Assistance and firms that have not had previous state work; and

(ix)    any other special qualification required pursuant to the solicitation of the using agency.

(b)    Based upon these evaluations, the agency selection committee shall select the three persons or firms that, in its judgment, are the best qualified, ranking the three in priority order. The agency selection committee's report ranking the three chosen persons or firms must be in writing and include data substantiating its determinations.

(6)    Notice of Selection and Ranking. When it is determined by the agency that the ranking report is final, written notification of the highest ranked person or firm must be sent immediately to all firms interviewed.

(7)    Negotiation of Contract. The governing body of the using agency or its designee shall negotiate a contract for services with the most qualified person or firm at a compensation that is fair and reasonable to the State. If the governing body of the using agency or its designee is unable to negotiate a satisfactory contract with this person or firm, negotiations must be terminated formally. Negotiations must commence in the same manner with the second and then the third most qualified until a satisfactory contract is negotiated. If an agreement is not reached with one of the three, additional persons or firms in order of their competence and qualifications must be selected after consultation with the agency selection committee, and negotiations must be continued in the same manner until agreement is reached.

(8)    State Engineer's Office Review. The head of the using agency shall submit the following documents to the State Engineer's Office for its review:

(a)    the written report of the agency selection committee, listing the persons or firms that responded to the invitation to submit information and enumerating the reasons of the committee for selecting the particular ones to be interviewed;

(b)    the written ranking report of the agency selection committee and all data substantiating the determinations made in that report; and

(c)    the tentative contract between the using agency and the selected person or firm.

(9)    Approval or Disagreement by State Engineer's Office. The State Engineer's Office has ten days to review the data submitted by the agency selection committee, and to determine its position with respect to the particular person or firm recommended for approval by the agency. If the State Engineer's Office disagrees with the proposal, it may contest the proposal by submitting the matter to the board department for decision. In the event of approval, the State Engineer's Office shall notify immediately in writing the using agency and the person or firm selected of the award and authorize the using agency to execute a contract with the selected person or firm. In the event of disagreement, the State Engineer's Office immediately shall notify the using agency in writing of its intention to contest the ranking and the reasons for it. All contract negotiations by the governing body must be suspended pending a decision by the board department concerning a contested ranking. The board department shall hear contests at its next regularly scheduled meeting after notification of the using agency. If the board department rules in support of the State Engineer's Office position, the using agency shall submit the name of another person or firm to the State Engineer's Office for consideration, selected in accordance with the procedures prescribed in this section. If the board department rules in support of the using agency, the using agency must be notified in writing and authorized to execute a contract with the selected person or firm."

SECTION    39.    Section 11-35-3240 of the 1976 Code is amended to read:

"Section 11-35-3240.    As relates to this code and the ensuing regulations, a 'Manual for Planning and Execution of State Permanent Improvements' may be published by the board department or its designee for use by governmental bodies and included, by reference, in the regulations of the board department. The manual may be revised as the board department considers necessary, except that proposed changes are not effective until the board department has provided the public at least sixty days to make written comments after notice of the proposed changes is published in South Carolina Business Opportunities."

SECTION    40.    Section 11-35-3410 of the 1976 Code is amended to read:

"Section 11-35-3410.    (1)    Contract Clauses. The board department may promulgate regulations requiring the inclusion in state supplies, services, and information technology contracts of clauses providing for adjustments in prices, time of performance, or other contract provisions, as appropriate, and covering the following subjects:

(a)    the unilateral right of a governmental body to order in writing changes in the work within the scope of the contract and temporary stopping of the work or delaying performance; and

(b)    variations occurring between estimated quantities of work in a contract and actual quantities.

(2)(a)    Price Adjustments. Adjustments in price pursuant to clauses promulgated under subsection (1) of this section shall be computed and documented with a written determination. The price adjustment agreed upon shall approximate the actual cost to the contractor, and all costs incurred by the contractor shall be justifiable compared with prevailing industry standards, including a reasonable profit. Costs shall be properly itemized and supported by substantiating data sufficient to permit evaluation before commencement of the pertinent performance or as soon thereafter as practicable, and shall be arrived at through whichever one of the following ways is the most valid approximation of the actual cost to the contractor:

(i)        by unit prices specified in the contract or subsequently agreed upon;

(ii)    by the costs attributable to the events or situations under such clauses with adjustment for profit or fee, all specified in the contract or subsequently agreed upon;

(iii)    by agreement on a fixed price adjustment;

(iv)    by rates determined by the Public Service Commission and set forth in the applicable tariffs;

(v)    in such other manner as the contracting parties may mutually agree; or

(vi)    in the absence of agreement by the parties, through unilateral determination by the governmental body of the costs attributable to the events or situations under such clauses, with adjustment of profit or fee, all as computed by the governmental body in accordance with applicable sections of the regulations issued under Article 13 of this chapter and subject to the provisions of Article 17 of this chapter.

(b)    A contractor shall be required to submit cost or pricing data if any adjustment in contract price is subject to the provisions of Section 11-35-1830.

(3)    Additional Contract Clauses. The board department shall be authorized to promulgate regulations requiring the inclusion in state supplies, services, and information technology contracts of clauses providing for appropriate remedies and covering the following subjects:

(a)    specified excuses for delay or nonperformance;

(b)    termination of the contract for default; and

(c)    termination of the contract in whole or in part for the convenience of the governmental body.

(4)    Modification of Clauses. The chief procurement officer may vary the clauses promulgated by the board department under subsection (1) and subsection (3) of this section for inclusion in any particular state contract; provided, that any variations are supported by a written determination that states the circumstances justifying such variations; and provided, further, that notice of any such material variations shall be stated in the invitation for bids or request for proposals."

SECTION    41.    Section 11-35-3510 of the 1976 Code is amended to read:

"Section 11-35-3510.    The board department may promulgate regulations setting forth cost principles that must be used to determine the allowability of incurred costs for the purpose of reimbursing costs under provisions in supplies, services, and information technology contracts that provide for the reimbursement of costs."

SECTION    42.    Section 11-35-3810 of the 1976 Code is amended to read:

"Section 11-35-3810.    Subject to existing provisions of law, the board department shall promulgate regulations governing:

(1)    the sale, lease, or disposal of surplus supplies by public auction, competitive sealed bidding, or other appropriate methods designated by such regulations;

(2)    the transfer of excess supplies between agencies and departments."

SECTION    43.    Section 11-35-3820 of the 1976 Code is amended to read:

"Section 11-35-3820.    Except as provided in Section 11-35-1580 and Section 11-35-3830 and the regulations pursuant to them, the sale of all state-owned supplies, or personal property not in actual public use must be conducted and directed by the designated board department office. The sales must be held at such places and in a manner as in the judgment of the designated board department office is most advantageous to the State. Unless otherwise determined, sales must be by either public auction or competitive sealed bid to the highest bidder. Each governmental body shall inventory and report to the designated board department office all surplus personal property not in actual public use held by that governmental body for sale. The designated board department office shall deposit the proceeds from the sales, less expense of the sales, in the state general fund or as otherwise directed by regulation. This policy and procedure applies to all governmental bodies unless exempt by law."

SECTION    44.    Section 11-35-3830 of the 1976 Code is amended to read:

"Section 11-35-3830.    (1)    Trade-in Value. Unless otherwise provided by law, governmental bodies may trade-in personal property, the trade-in value of which may be applied to the procurement or lease of like items. The trade-in value of such personal property shall not exceed an amount as specified in regulations promulgated by the board department.

(2)    Approval of Trade-in Sales. When the trade-in value of personal property of a governmental body exceeds the specified amount, the board department shall have the authority to determine whether:

(a)    the subject personal property shall be traded in and the value applied to the purchase of new like items; or

(b)    the property shall be classified as surplus and sold in accordance with the provisions of Section 11-35-3820. The board's department's determination shall be in writing and be subject to the provisions of this chapter.

(3)    Record of Trade-in Sales. Governmental bodies shall submit quarterly to the materials management officer a record listing all trade-in sales made under subsections (1) and (2) of this section."

SECTION    45.    Section 11-35-3850 of the 1976 Code is amended to read:

"Section 11-35-3850.    Governmental bodies approved by the board department may sell any supplies owned by it after the supplies have become entirely unserviceable and can properly be classified as "junk", in accordance with procedures established by the designated board department office. All sales of unserviceable supplies by the governmental body must be made in public to the highest bidder, after advertising for fifteen days, and the funds from the sales must be credited to the account of the governmental body owning and disposing of the unserviceable supplies."

SECTION    46.    Section 11-35-4820 of the 1976 Code is amended to read:

"Section 11-35-4820.    As prescribed in regulation by the board department, any local public procurement unit may purchase from or through the State at any time; provided, however, that the board department may impose a requirement upon the localities for mandatory opting in or out of any particular contract before it is established. Mandatory opting shall be imposed only where it is necessary to obtain more cost effective contracts for the State."

SECTION    47.    Section 11-35-5010 of the 1976 Code is amended to read:

"Section 11-35-5010.    The board department may promulgate regulations establishing detailed definitions of the following terms using, in addition to the criteria set forth in this section, such other criteria as it may deem desirable.

(1)    'Minority person' for the purpose of this article, means a United States citizen who is economically and socially disadvantaged.

(a)    'Socially disadvantaged individuals' means those individuals who have been subject to racial or ethnic prejudice or cultural bias because of their identification as members of a certain group, without regard to their individual qualities. Such groups include, but are not limited to, Black Americans, Hispanic Americans, Native Americans (including American Indians, Eskimos, Aleuts and Native Hawaiians), Asian Pacific Americans, and other minorities to be designated by the board department or designated agency.

(b)    'Economically disadvantaged individuals' means those socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business area who are not socially disadvantaged.

(2)    A 'socially and economically disadvantaged small business' means any small business concern which:

(a)    is at least fifty-one percent owned by one or more citizens of the United States who are determined to be socially and economically disadvantaged.

(b)    in the case of a concern which is a corporation, fifty-one percent of all classes of voting stock of such corporation must be owned by an individual determined to be socially and economically disadvantaged.

(c)    in the case of a concern which is a partnership, fifty-one percent of the partnership interest must be owned by an individual or individuals determined to be socially and economically disadvantaged and whose management and daily business operations are controlled by individuals determined to be socially and economically disadvantaged. Such individuals must be involved in the daily management and operations of the business concerned."

SECTION    48.    Section 11-35-5230 of the 1976 Code is amended to read:

"Section 11-35-5230.    (A)    The board department shall promulgate regulations that designate such procurement contracts as it may deem appropriate for negotiation with certified, South Carolina-based minority firms, as defined by this subarticle. Among the criteria that shall be used to determine such designations are:

(1)    The the total dollar value of procurement in South Carolina.;

(2)    The the availability of South Carolina-based minority firms.;

(3)    The the potential for breaking the contracts into smaller units, where necessary, to accommodate such firms.;

(4)    Insuring ensuring that the State shall not be required to sacrifice quality of goods or services.;

(5)    Ensuring that the price has been determined to be fair and reasonable, and competitive both to the State and to the contractor.

(B)(1)    Firms with state contracts that subcontract with minority firms shall be eligible for an income tax credit equal to four percent of the payments to minority subcontractors for work pursuant to a state contract. Such subcontractors must be certified as to the criteria of a minority firm as defined in Section 11-35-5010 of this code and any regulations which may be promulgated thereunder.

(2)    The tax credit is limited to a maximum of fifty thousand dollars annually. A firm is eligible to claim a tax credit for a period of ten years from the date the first income tax credit is claimed.

(3)    Any firm desiring to be certified as a minority firm shall make application to the Small and Minority Business Assistance Office (SMBAO) as defined by Section 11-35-5270, on such forms as may be prescribed by that office.

(4)    Firms claiming the income tax credit shall maintain evidence of work performed for a state contract by minority subcontractors and shall present such evidence on a form and in a manner prescribed by the Department of Revenue at the time of filing its state income tax return and claim such credit at the time of filing. All records shall be available for audit by the Department of Revenue in accordance with prevailing tax statutes."

SECTION    49.    Section 11-35-5240 of the 1976 Code is amended to read:

"Section 11-35-5240.    (1)    To emphasize the use of minority small businesses, each agency director shall develop a Minority Business Enterprise (MBE) Utilization Plan. The MBE Utilization Plan must include, but not be limited to:

(a)    the name of the governmental body;

(b)    a policy statement expressing a commitment by the governmental body to use MBEs in all aspects of procurement;

(c)    the name of the coordinator responsible for monitoring the MBE Utilization Plan;

(d)    goals that include expending with Minority Business Enterprises certified by the Office of Small and Minority Business Assistance an amount equal to ten percent of each governmental body's total dollar amount of funds expended;

(e)    solicitation of certified minority vendors, a current list of which must be supplied by the Office of Small and Minority Business Assistance, in each commodity category for which the minority vendor is qualified. The current listing of qualified minority vendors must be made available by the Office of Small and Minority Business Assistance on a timely basis;

(f)    procedures to be used when it is necessary to divide total project requirements into smaller tasks which will permit increased MBE participation;

(g)    procedures to be used when the governmental body subcontracts the scope of service to another governmental body; the responsible governmental body may set goals for the subcontractor in accordance with the MBE goal and the responsible governmental body may allow the subcontractor to present a MBE Utilization Plan detailing its procedure to obtain minority business enterprise participation.

(2)    MBE utilization plans must be submitted to the SMBAO for approval no later than July thirtieth, annually. Upon petition by the governmental body, SMBAO may authorize an MBE utilization plan that establishes a goal of less than ten percent of the governmental body's total dollar amount of funds expended. Progress reports must be submitted to the SMBAO no later than thirty days after the end of each fiscal quarter and contain the following information:

(a)    number of minority firms solicited;

(b)    number of minority bids received;

(c)    total dollar amount of funds expended on contracts awarded to minority firms certified pursuant to Section 11-35-5230; and

(d)    total dollar amount of funds expended.

(3)    For purposes of this section, and notwithstanding the Administrative Procedures Act, the executive director of the board department shall establish a definition for the phrase "total dollar amount of funds expended."

SECTION    50.    Section 11-35-5250 of the 1976 Code is amended to read:

Section 11-35-5250.    (1)    rogress Payments. The chief procurement officers may make special provisions for progress payments and letters of credit, as deemed reasonable to assist minority businesses to carry out the terms of a state contract pursuant to regulations which may be promulgated by the board department.

(2)    Letter of Contract Award. When a minority business firm certified by the Department of Revenue receives a contract with the State, the appropriate chief procurement officer shall furnish a letter, upon request, stating the dollar value and duration of, and other information about the contract, which may be used by the minority firm in negotiating lines of credit with lending institutions."

SECTION    51.    Section 11-35-5270 of the 1976 Code is amended to read:

"Section 11-35-5270.    A Small and Minority Business Assistance Office (SMBAO) shall be established to assist the board department and the Department of Revenue in carrying out the intent of this article. The responsibilities of the office shall include, but not be limited to, the following:

(1)    assist the chief procurement officers and governmental bodies in developing policies and procedures which will facilitate awarding contracts to small and minority firms;

(2)    assist the chief procurement officers in aiding small and minority-owned firms and community-based business in developing organizations to provide technical assistance to minority firms;

(3)    assist with the procurement and management training for small and minority firm owners;

(4)    assist in the identification of responsive small and minority firms;

(5)    receive and process applications to be registered as a minority firm in accordance with Section 11-35-5230(B);

(6)    the SMBAO may revoke the certification of any firm which has been found to have engaged in any of the following:

(a)    fraud or deceit in obtaining the certification;

(b)    furnishing of substantially inaccurate or incomplete information concerning ownership or financial status;

(c)    failure to report changes which affect the requirements for certification;

(d)    gross negligence, incompetence, financial irresponsibility, or misconduct in the practice of his business; or

(e)    wilful violation of any provision of this article;

(7)    after a period of one year, the SMBAO may reissue a certificate of eligibility provided acceptable evidence has been presented to the commission that the conditions which caused the revocation have been corrected."

Part VI

Naval Base Museum Authority

SECTION    52.    (A)    Notwithstanding any other provision of law, in addition to the present members of the Charleston Naval Complex Redevelopment Authority, as created by gubernatorial executive order pursuant to Section 31-12-40 of the 1976 Code, there shall be four additional members, two appointed by the Speaker of the House of Representatives and two appointed by the President Pro Tempore of the Senate. These four additional members shall each serve for terms of four years and until their successors are appointed and qualify. Vacancies shall be filled for the remainder of the unexpired term by appointment in the same manner of original appointment.

(B)    These four additional members shall serve as members of the Charleston Naval Complex Redevelopment Authority with the same powers, duties, and responsibilities of other such members as provided by law. In addition, these four members together with the gubernatorial appointees to the Charleston Naval Complex Redevelopment Authority shall also constitute the Charleston Navy Base Museum Authority. Service as a member of the Navy Base Museum Authority is considered a supplemental function and duty of those specified members of the Naval Complex Redevelopment Authority and is not considered another office of honor or profit of this State. The Navy Base Museum Authority shall select from among its members a chairman and such other officers as they consider necessary.

(C)    The duties, powers, and functions of the Hunley Commission as provided in Sections 54-7-100 and 54-7-110 of the 1976 Code, and as otherwise provided by law are transferred to and devolved upon the Navy Base Museum Authority. In addition, the Navy Base Museum Authority shall possess all other powers and duties conferred upon instrumentalities of this State as provided by law. Contracts and agreements between the Hunley Commission and Clemson University, as well as any other contracts and agreements of the Hunley Commission, inure to the benefit of the Navy Base Museum Authority, and it is considered the successor-in-interest to the Hunley Commission in all these regards. There shall remain a three-member panel of the Hunley Commission to oversee the timely devolution of duties and responsibilities remaining with the Hunley Commission, if any. The panel shall consist of one member appointed by the Governor, one member appointed by the Speaker of the House of Representatives, and one member appointed by the President pro Tempore of the Senate. The panel shall terminate upon completion of all duties and responsibilities.

SECTION    53.    Section 15 of Act 356 of 2002 is amended to read:

"Section 15.    Notwithstanding any other provision of law the Charleston Naval Complex Redevelopment Authority (RDA), upon receiving ownership from the United States of America, shall convey certain parcels of real property to the City of North Charleston as per the mutual agreement described hereafter. These parcels shall be delineated through a mutual agreement between the City of North Charleston and the South Carolina State Ports Authority that takes into account the respective needs of each entity in the property south of Necessary Street. All conveyances shall be at no consideration once the City of North Charleston and the South Carolina State Ports Authority have entered into a memorandum of understanding and agreement for the operation of breakbulk, roll on roll off, and container terminals and dock operations on appropriate properties that are subject to the oversight or control of the Charleston Naval Complex Redevelopment Authority. The City of North Charleston shall honor all existing leases as negotiated by the Charleston Naval Complex Redevelopment Authority prior to the effective date of this section. Furthermore, all properties conveyed shall retain any Tax Increment Finance District status, any state or federal grants applied to the area, and any state revenues currently directed to the Charleston Redevelopment Authority on a per acre basis for the relative properties conveyed to the City of North Charleston. In addition, any revenues received from the State under the Rural Development Act relating to the number of federal employees at the naval complex shall be shared pursuant to the location of the jobs on the complex."

Part VII

Transition Restructuring Commission

SECTION    54.    (A)    There is created the Transition Restructuring Commission for the purpose of implementing changes in governmental structure provided for in this act. The commission is composed of nine members who are appointed as follows:        (1)    three members appointed by the Governor;

(2)    two Senators appointed by the President Pro Tempore of the Senate;

(3)    two members of the House of Representatives appointed by the Speaker of the House of Representatives;

(4)    one public member appointed by the President Pro Tempore of the Senate; and

(5)    one public member appointed by the Speaker of the House of Representatives.

(B)    The commission must adopt rules of procedure and elect a chairman from the membership of the commission.

(C)    The commission shall render a report of its actions to the Governor, the President Pro Tempore of the Senate, and the Speaker of the House of Representatives no later than March 15, 2010, and the commission must be dissolved June 30, 2010.

(D)    The General Assembly shall provide for employment of temporary staff for the commission through the annual general appropriations act. The Governor, the President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the Budget and Control Board shall provide additional staffing for the commission as requested by the commission.

SECTION    55.    (A)    Where the provisions of this act transfer particular state agencies, departments, boards, commissions, committees or entities, or sections, divisions or portions thereof (transferring departments), to another state agency, department, division or entity or make them a part of another department or division (receiving departments), the employees, authorized appropriations, bonded indebtedness if applicable, and real and personal property of the transferring department are also transferred to and become part of the receiving department or division unless otherwise specifically provided. All classified or unclassified personnel of the affected agency, department, board, commission, committee, entity, section, division or position employed by these transferring departments on the effective date of this act, either by contract or by employment at will, shall become employees of the receiving department or division, with the same compensation, classification, and grade level, as applicable; however any personnel transferred to the Office of Legislative Oversight and Accountability become subject to the policies of the legislative branch. The Transition Restructuring Commission shall cause all necessary actions to be taken to accomplish this transfer and shall in consultation with the agency head of the transferring and receiving agencies prescribe the manner in which the transfer provided for in this section shall be accomplished. The commission's determinations in facilitating the provisions of this section are final in nature and are considered as an approval process over any of the transfers.

(B)    Where an agency, department, entity or official is transferred to or consolidated with another agency, department, division, entity or official, regulations promulgated by that transferred agency, department, entity or official under the authority of former provisions of law pertaining to it are continued and are considered to be promulgated under the authority of present provisions of law pertaining to it. Any changes to the regulations by the transferred agency, department, entity or official must be pursuant to the provisions of the State Administrative Procedures Act, in Chapter 23 of Title 1.

(C)    References to the names of agencies, departments, entities or public officials changed by this act, to their duties or functions herein devolved upon other agencies, departments, entities or officials, or to provisions of law consolidated with or transferred to other parts of the 1976 Code are considered to be and must be construed to mean appropriate references.

(D)    Employees or personnel of agencies, departments, entities or public officials, or sections, divisions or portions thereof, transferred to or made a part of another agency, department, division, or official pursuant to the terms of this act shall continue to occupy the same office locations and facilities which they now occupy unless or until otherwise changed by appropriate action and authorization. The rent and physical plant operating costs of these offices and facilities, if any, shall continue to be paid by the transferring agency, department, entity or official formerly employing these personnel until otherwise provided by the General Assembly. The records and files of the agencies which formerly employed these personnel shall continue to remain the property of these transferring agencies, except that these personnel shall have complete access to these records and files in the performance of their duties as new employees of the receiving agency. Records and files may be permanently transferred with the approval of the Transition Restructuring Commission.

(E)    Unless otherwise provided herein or by law, all fines, fees, forfeitures, or revenues imposed or levied by agencies, personnel, or portions thereof, so transferred to other agencies or departments must continue to be used and expended for those purposes provided prior to the effective date of this act. If a portion of these fines, fees, forfeitures, or revenues were required to be used for the support, benefit, or expense of personnel transferred, such funds must continue to be used for these purposes. However, the Transition Restructuring Commission may allow the use resources of the transferring agency to pay reasonable coasts to facilitate the realignment plan.

(F)    The Transition Restructuring Commission shall prescribe the manner in which the provisions of subsections (A), (D), and (E) must be implemented where agreement between the affected agencies cannot be obtained.

(G)    Where the functions of former agencies have been devolved on more than one department or departmental division, the general support services of the former agency must be transferred to the restructured departments or departmental divisions as approved by the Transition Restructuring Commission.

SECTION    56.    (A)    The membership of the Legislative Council shall cause the changes to the 1976 Code as contained in this act to be printed in replacement volumes or in cumulative supplements as they consider practical and economical.

(B)    On or before January 15, 2009, the Code Commissioner shall prepare and deliver a report to the President Pro Tempore of the Senate and the Speaker of the House of Representatives of all Code references and cross-references which he considers in need of correction or modification insofar as the 1976 Code has been affected by this act and the determinations of the Transition Restructuring Commission.

Part VIII

Study Committee Concerning Chief Information Officer

SECTION    57.    (A)    There is created a Committee to study the duties and responsibilities of the Chief Information Officer for the State of South Carolina composed of seven members as follows:

(1)    two members of the Senate Judiciary Committee, appointed by the chairman of the Senate Judiciary Committee;

(2)    two members of the House Judiciary Committee, appointed by the chairman of the House Judiciary Committee;

(3)    two persons appointed by the Governor; and

(4)    one member appointed by the executive director of the South Carolina Budget and Control Board.

(B)    The members of the committee:

(1)    must meet as soon as practicable after appointment and organize by electing one member as chairman and such other officers as the committee may consider necessary. Thereafter, the committee must meet as necessary to fulfill the duties at the call of the chairman or by a majority of the members and a quorum consists of four members;

(2)    shall serve without compensation, but are allowed the usual per diem and mileage as provided by law for members of boards, commissions, and committees while on official business to be paid by the member's appointing entity. Staffs of the Senate and the House of Representatives shall be available to assist the committee in its work. Any other expenses incurred by the committee shall be paid equally from each respective house's approved accounts subject to the approval of the respective Operations and Management Committees; and

(3)    unless authorized by a further or subsequent enactment, conclude the committee's business and dissolve the committee effective March 3, 2009, upon submission of its report. The General Assembly may extend the dates by which the committee must submit reports required by this joint resolution.

(C)    The duties of the committee shall be to:

(1)    consider the responses of the Joint Committee on Government Accountability and Oversight, created by Proviso 54.26 in the 2007-08 General Appropriation Act, to the GEAR Commission report that related to the duties and responsibilities of the Chief Information Officer (CIO), and the report of the Joint Strategic Technology Committee, created by Proviso 70.28 in the 2008-09 General Appropriations Act, to include, but not be limited to:

(a)    moving the Information Technology Management Office from the CIO to the Procurement Office;

(b)    reviewing all statutes dealing with information technology as they relate to state government;

(c)    reviewing the organizational policy and planning direction of the state's information technology functions to consider restructuring and better oversight of these functions;

(d)    creating an Information Technology Board to allow collaboration between the state CIO and private section information technology practitioners to develop innovate solutions to common problems;

(e)    identifying and monitoring recurring cost savings that will develop as the new South Carolina Enterprise Information System (SCEIS) applications are implemented;

(f)    re-evaluating the information technology planning process in current law to determine if changes are needed; and

(g)    creating a legislative oversight body for technology issues;

(2)    consider the provisions enacted by this act, the South Carolina Restructuring Act of 2008, establishing in Article 6, Chapter 3 of Title 1 of the Code of Laws of South Carolina, 1976, an Office of Chief Information Officer in the Department of Administration, to be effective July 1, 2011;

(3)    recommend to the General Assembly changes regarding the Chief Information Officer's duties and responsibilities and the structure of the office which are determined by studying the information listed in items (1) and (2) of this subsection . The committee's recommendations must present a detailed, comprehensive, and careful evaluation of the structure of the Chief Information Officer, to include all relevant laws and policies that have a bearing on the structure, duties, and responsibilities of the Chief Information Officer;

(4)    no later than March 3, 2009, prepare and deliver a report with recommendations to the chairman of the Senate Judiciary Committee and the chairman of the House Judiciary Committee.

Part IX

Performance Audit and Effective Date

SECTION    58.    During the year 2015, the Legislative Audit Council shall conduct a performance review of the provisions of this act to determine its effectiveness and achievements with regard to the more efficient performance of the functions and duties of the various agencies provided for herein and the cost savings and benefits to the State.

SECTION    59.    Unless otherwise provided:

(A)(1)    Parts I and II, Sections 1 through 4, relating to the Citation and Department Organization, and Parts IV and V, Sections 6 through 49, relating to Conforming and Miscellaneous Sections, take effect July 1, 2011; except that

(2)    Subsections (B) through (H) of Section 1-30-10, as contained in SECTION 2 of Part II, take effect July 1, 2008.

(B)    Part III, containing Section 5, relating to the Legislative Oversight of Executive Departments takes effect July 1, 2008.

(C)    Part VI, relating to the Naval Base Museum Authority, becomes effective upon the execution of an acceptable contract between the Hunley Commission and the City of North Charleston.

(D)    Part VII, relating to the Transition Restructuring Commission, takes effect July 1, 2008.

(E)    Part VIII, relating to a Study Committee Concerning the Chief Information Officer, takes effect July 1, 2008.

(F)    Part IX, relating to Performance Audit and Effective Date, takes effect July 1, 2008.    /

Amend title to conform.

Majority favorable.    Minority unfavorable.

C. BRADLEY HUTTO    ROBERT FORD

For Majority.    For Minority.

            

A BILL

TO ENACT THE "SOUTH CAROLINA RESTRUCTURING ACT OF 2007" INCLUDING PROVISIONS TO AMEND SECTION 1-30-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE AGENCIES OF THE EXECUTIVE BRANCH OF STATE GOVERNMENT BY ADDING THE DEPARTMENT OF ADMINISTRATION; BY ADDING SECTION 1-30-125 SO AS TO ESTABLISH THE DEPARTMENT OF ADMINISTRATION AS AN AGENCY OF THE EXECUTIVE BRANCH OF STATE GOVERNMENT TO BE HEADED BY A DIRECTOR APPOINTED BY THE GOVERNOR UPON THE ADVICE AND CONSENT OF THE GENERAL ASSEMBLY, AND TO TRANSFER TO THIS NEWLY CREATED DEPARTMENT CERTAIN OFFICES AND DIVISIONS OF THE STATE BUDGET AND CONTROL BOARD, OFFICE OF THE GOVERNOR, AND OTHER AGENCIES, AND TO PROVIDE FOR TRANSITIONAL AND OTHER PROVISIONS NECESSARY TO ACCOMPLISH THE ABOVE; BY ADDING CHAPTER 8 TO TITLE 1 SO AS TO CREATE THE OFFICE OF STATE INSPECTOR GENERAL AS A SEPARATE DIVISION WITHIN THE DEPARTMENT OF ADMINISTRATION, TO PROVIDE THAT THE STATE INSPECTOR GENERAL MUST BE APPOINTED BY THE GOVERNOR UPON THE ADVICE AND CONSENT OF THE GENERAL ASSEMBLY, TO PROVIDE FOR THE PURPOSE, DUTIES, RESPONSIBILITIES, AND AUTHORITY OF THE STATE INSPECTOR GENERAL, TO PROVIDE A DEFINITION OF "EXECUTIVE AGENCIES" FOR PURPOSES OF THIS CHAPTER, AND TO PROVIDE FOR THE RECEIPT AND INVESTIGATION OF COMPLAINTS RELATING TO IMPROPER OR UNLAWFUL ACTIVITY WITHIN EXECUTIVE AGENCIES OF THE STATE GOVERNMENT; BY ADDING ARTICLE 6 TO CHAPTER 3 OF TITLE 1 SO AS TO ESTABLISH THE DIVISION OF THE STATE CHIEF INFORMATION OFFICER WITHIN THE DEPARTMENT OF ADMINISTRATION TO BE HEADED BY THE STATE CHIEF INFORMATION OFFICER, TO PROVIDE THAT THE STATE CHIEF INFORMATION OFFICER SHALL BE APPOINTED BY THE GOVERNOR UPON THE ADVICE AND CONSENT OF THE GENERAL ASSEMBLY, AND TO PROVIDE FOR THE POWERS, DUTIES, AND FUNCTIONS OF THE DIVISION; TO CREATE A JOINT INFORMATION TECHNOLOGY REVIEW COMMITTEE, AN INFORMATION TECHNOLOGY BUSINESS CASE REVIEW PANEL, AND AN INFORMATION TECHNOLOGY ARCHITECTURE OVERSIGHT PANEL AND TO PROVIDE FOR THE FUNCTIONS, POWERS, AND RESPONSIBILITIES OF THE COMMITTEE AND PANELS; TO AMEND SECTION 11-35-1580, AS AMENDED, RELATING TO INFORMATION TECHNOLOGY PROCUREMENTS, SO AS TO DELETE CERTAIN RESPONSIBILITIES OF THE INFORMATION TECHNOLOGY MANAGEMENT OFFICE; TO AMEND SECTIONS 1-10-10, 1-11-20, AS AMENDED, 1-11-22, 1-11-55, 1-11-56, 1-11-58, 1-11-65, 1-11-67, 1-11-70, 1-11-80, 1-11-90, 1-11-100, 1-11-110, 1-11-180, 1-11-220, 1-11-225, 1-11-250, 1-11-260, 1-11-270, 1-11-280, 1-11-290, 1-11-300, 1-11-310, 1-11-315, 1-11-320, 1-11-335, 1-11-340, 1-11-435, 2-13-240, AS AMENDED, CHAPTER 9 OF TITLE 3; 10-1-10, 10-1-30, AS AMENDED, 10-1-40, 10-1-130, 10-1-190, AS AMENDED, CHAPTER 9 OF TITLE 10, 10-11-50, AS AMENDED, 10-11-90, 10-11-110, 10-11-140, 10-11-330; 11-9-610, 11-9-620, 11-9-630, 11-35-3810, 11-35-3820, 11-35-3830, 11-35-3840, 13-7-30, 13-7-830, ALL AS AMENDED, 48-46-30, AS AMENDED, 48-46-40, AS AMENDED, 48-46-50, 48-46-60, 48-46-90, 44-53-530, AS AMENDED, AND 44-96-140; AND TO ADD SECTION 1-11-185 ALL RELATING TO VARIOUS AGENCY OR DEPARTMENT PROVISIONS SO AS TO CONFORM THEM TO THE ABOVE PROVISIONS PERTAINING TO THE NEW DEPARTMENT OF ADMINISTRATION OR TO SUPPLEMENT SUCH PROVISIONS.

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

Part I

Citation

SECTION    1.    This act is known and may be cited as the "South Carolina Restructuring Act".

Part II

Department of Administration

SECTION    2.    Section 1-30-10(A) of the 1976 Code is amended by adding at the end:

"20.    Department of Administration"

SECTION    3.    Chapter 30, Title 1 of the 1976 Code is amended by adding:

"Section 1-30-125.    Effective July 1, 2011, the following offices, divisions, or components of the State Budget and Control Board, Office of the Governor, or other agencies are transferred to, and incorporated into, the Department of Administration, a department of the executive branch of state government headed by a director appointed by the Governor as provided in Section 1-30-10(B)(1)(i) except that this appointment must be upon the advice and consent of the General Assembly rather than the Senate:

(1)    Division of General Services including Facilities Management, Business Services together with Fleet Management, and Property Services;

(2)    Office of Human Resources;

(3)    Office of Executive Policy and Programs, except for the State Ombudsman and Children's Services programs which are contained within this office;

(4)    Office of Economic Opportunity;

(5)    Developmental Disabilities Council;

(6)    Continuum of Care as established by Section 20-7-5610;

(7)    Children's Foster Care as established by Section 20-7-2379;

(8)    Veterans Affairs as established by Section 25-11-10;

(9)    Commission on Women as established by Section 1-15-10;

(10)    Victims Assistance as established by Article 13, Chapter 3, Title 16;

(11)    Small and Minority Business as established by Section 11-35-5270;

(12)    Procurement Services Division of the State Budget and Control Board;

(13)    State Energy Office as established by Section 48-52-410; and

(14)    Division of State Chief Information Officer of the State Budget and Control Board."

SECTION    4.    (A)    Where the provisions of this act transfer offices, or portions of offices, of the Budget and Control Board, Office of the Governor, or other agencies to the new Department of Administration, the employees, authorized appropriations, and assets and liabilities of the transferred offices are also transferred to and become part of the Department of Administration. All classified or unclassified personnel employed by these offices on the effective date of this act, either by contract or by employment at will, shall become employees of the Department of Administration, with the same compensation, classification, and grade level, as applicable. The Budget and Control Board shall cause all necessary actions to be taken to accomplish this transfer in accordance with state laws and regulations.

(B)    Regulations promulgated by these transferred offices as they formerly existed under the Budget and Control Board, Office of the Governor, or other agencies are continued and are considered to be promulgated by these offices under the newly created Department of Administration.

(C)    The Code Commissioner is directed to change or correct all references to these offices of the Budget and Control Board in the 1976 Code, Office of the Governor, or other agencies to reflect the transfer of them to the Department of Administration. References to the names of these offices in the 1976 Code or other provisions of law are considered to be and must be construed to mean appropriate references. This authority shall not be construed to remove any authority from the Budget and Control Board for approval of statewide policies, procedures, regulations, rates and fees, or specific actions requiring board approval.

Part III

Legislative Oversight of Executive Departments

SECTION    5.    Title 2 of the 1976 Code is amended by adding:

"Chapter 2

Legislative Oversight of Executive Departments

Section 2-2-10.    As used in this chapter:

(1)    "Agency" means an authority, board, branch, commission, committee, department, division, or other instrumentality of the executive department of state government, including administrative bodies. 'Agency' includes a body corporate and politic established as an instrumentality of the State. 'Agency' does not include:

(a)    the legislative department of state government; or

(b)    a political subdivision.

(2)    "Investigating committee" means any standing committee or subcommittee of a standing committee exercising its authority to conduct a study or investigation of an agency within its jurisdiction.

(3)    "Program evaluation report" means a report compiled by an agency at the request of an investigating committee that may include, but is not limited to, a review of agency management and organization, program delivery, agency goals and objectives, compliance with its statutory mandate, and fiscal accountability.

(4)    "Request for information" means a list of questions that an investigating committee serves on a department or agency under investigation. The questions may relate to any matters concerning the department or agency's actions that are the subject of the investigation.

Section 2-2-20.    (A)    In order to determine whether laws and programs addressing subjects within the jurisdiction of a committee as provided in this chapter are being implemented and carried out in accordance with the intent of the General Assembly and whether they should be continued, curtailed, or eliminated, each standing committee shall review and study on a continuing basis:

(1)    the application, administration, execution, and effectiveness of laws and programs addressing subjects within its jurisdiction;

(2)    the organization and operation of state agencies and entities having responsibilities for the administration and execution of laws and programs addressing subjects within its jurisdiction; and

(3)    any conditions or circumstances that may indicate the necessity or desirability of enacting new or additional legislation addressing subjects within its jurisdiction.

(B)    Beginning January 1, 2008, each committee must conduct oversight studies and investigations at least once every four years on all agencies within the committee's jurisdiction. The committee may, within its discretion, determine the scope of the oversight studies to be performed.

Section 2-2-30.        Jurisdiction for oversight studies or investigations is vested in the following committees:

(A)    In the Senate:

(1)    The Committee on Agriculture and Natural Resources has jurisdiction over the Department of Agriculture, the Department of Health and Environmental Control, the State Climatology Office, and the Sea Grant Consortium;

(2)    The Committee on Banking and Insurance has jurisdiction over the Department of Insurance and the Board of Financial Institutions;

(3)    The Committee on Corrections and Penology shares concurrent jurisdiction with the Committee on the Judiciary over the Department of Corrections, the Department of Juvenile Justice, the Department of Probation, Parole, and Pardon Services, and the Department of Public Safety.

(4)    The Committee on Education has jurisdiction over the Department of Education, the School for the Deaf and the Blind, the State Board of Education, the Education Oversight Committee, the Governor's School for Science and Math, the Governor's School for Arts and Humanities, the Wil Lou Gray Opportunity School, the John de la Howe School, the State Library, the Lowcountry Graduate Center, the School Improvement Council, the State Board for Technical and Comprehensive Education, the Educational Television Network, and the Higher Education Tuition Grants Commission;

(5)    The Committee on Finance has jurisdiction over the Office of the Treasurer, the Office of the Comptroller General, the Office of the State Auditor, the Department of Revenue, the Budget and Control Board, the State Accident Fund, the Education Lottery Commission, the State Housing Finance Development Authority, the Office of the Insurance Reserve Fund, the Materials Management Office, the Patient's Compensation Fund, the Medical Malpractice Patient's Compensation Fund, the Second Injury Fund, the Tourism Expenditure Review Committee, and the Tuition Prepayment Program;

(6)    The Committee on Fish, Game, and Forestry has jurisdiction over the Department of Natural Resources, the Department of Parks, Recreation, and Tourism, and the Forestry Commission;

(7)    The Committee on the Judiciary, in addition to the concurrent jurisdiction that it shares with the Committee on Corrections and Penology, has jurisdiction over the Judiciary, the Executive Office of the Governor, the Office of the Lieutenant Governor, the Office of the Attorney General, the Office of the Adjutant General, the Administrative Law Court, Santee Cooper, the Department of Archives and History, the Arts Commission, the Division of the Chief Information Officer, the Commission on Indigent Defense, the Commission on Prosecution Coordination, the Confederate Relic Room and Museum, the Criminal Justice Academy, the Election Commission, the Emergency Management Division, the State Ethics Commission, the Human Affairs Commission, the Information Technology Management Office, the State Law Enforcement Division, the Legislative Audit Council, the Office of Local Government, the Commission on Minority Affairs, the Military Department, Patriot's Point Naval and Maritime Museum, the Governor's Commission on Women, and the Worker's Compensation Commission;

(8)    The Committee on Labor, Commerce, and Industry has jurisdiction over the Department of Commerce, the Department of Labor, Licensing, and Regulation and related boards and commissions except medical licensing and review boards, the Department of Consumer Affairs, the Employment Security Commission, the South Carolina Independent Living Council, the Fire Academy, the Office of the State Fire Marshall, the Economic Development Authority, the Public Service Commission, the Office of Regulatory Staff, the Public Service Commission, and the Rural Development Council;

(9)    The Committee on Medical Affairs has jurisdiction over the Department of Alcohol and Other Drug Abuse Services, the Department of Disabilities and Special Needs, the Department of Health and Human Services, the Department of Mental Health, the Department of Social Services, medical licensing and review boards within the Department of Labor, Licensing, and Regulation, the Commission for the Blind, and the Vocational Rehabilitation Department; and

(10)    The Committee on Transportation has jurisdiction over the Department of Transportation, the Department of Motor Vehicles, and the State Ports Authority; and

(B)    In the House of Representatives:

(1)    The Committee on Agriculture, Natural Resources, and Environmental Affairs has jurisdiction over the Department of Agriculture, the Department of Health and Environmental Control, the Department of Natural Resources, the Department of Parks, Recreation, and Tourism, the State Climatology Office, and the Forestry Commission;

(2)    The Committee on Education and Public Works has jurisdiction over the Department of Education, the State Board of Education, the Department of Transportation, Department of Motor Vehicles, Santee Cooper, the State Ports Authority, the School for the Deaf and the Blind, the Education Oversight Committee, the Governor's School for Science and Math, the Governor's School for Arts and Humanities, the Wil Lou Gray Opportunity School, the John de la Howe School, the State Library, the Lowcountry Graduate Center, the School Improvement Council, the State Board for Technical and Comprehensive Education, the Educational Television Network, and the Higher Education Tuition Grants Commission

(3)    The Committee on the Judiciary has jurisdiction over the Judiciary, the Executive Office of the Governor, the Office of the Lieutenant Governor, the Office of the Attorney General, the Office of the Adjutant General, the Administrative Law Court, the Department of Corrections, the Department of Juvenile Justice, the Department of Probation, Parole, and Pardon Services, Department of Public Safety, the Department of Archives and History, the Arts Commission, the Division of the Chief Information Officer, the Commission on Indigent Defense, the Commission on Prosecution Coordination, the Confederate Relic Room and Museum, the Criminal Justice Academy, the Election Commission, the Emergency Management Division, the State Ethics Commission, the Human Affairs Commission, the Information Technology Management Office, the State Law Enforcement Division, the Legislative Audit Council, the Office of Local Government, the Commission on Minority Affairs, the Military Department, Patriot's Point Naval and Maritime Museum, the Governor's Commission on Women, and the Worker's Compensation Commission;

(4)    The Committee on Labor, Commerce, and Industry has jurisdiction over the Department of Commerce, the Department of Labor, Licensing, and Regulation and related boards and commissions except medical licensing and review boards, the Department of Consumer Affairs, the Employment Security Commission, the South Carolina Independent Living Council, the Fire Academy, the Office of the State Fire Marshall, the Economic Development Authority, the Public Service Commission, the Office of Regulatory Staff, the Public Service Commission, and the Rural Development Council;

(5)    The Committee on Medical, Military, Public and Municipal Affairs has jurisdiction over the Department of Alcohol and Other Drug Abuse Services, the Department of Disabilities and Special Needs, the Department of Health and Human Services, the Department of Mental Health, the Department of Social Services, medical licensing and review boards within the Department of Labor, Licensing, and Regulation, the Commission for the Blind, and the Vocational Rehabilitation Department, the Office of the Adjutant General, and the Military Department.

(6)    The Committee on Ways and Means has jurisdiction over the Office of the Treasurer, the Office of the Comptroller General, the Office of the State Auditor, the Department of Revenue, the Budget and Control Board, the State Accident Fund, the Education Lottery Commission, the State Housing Finance Development Authority, the Office of the Insurance Reserve Fund, the Materials Management Office, the Patient's Compensation Fund, the Medical Malpractice Patient's Compensation Fund, the Second Injury Fund, the Tourism Expenditure Review Committee, and the Tuition Prepayment Program.

Section 2-2-40.    (A)    A standing committee of the Senate or the House of Representatives may by majority vote initiate a study or an investigation of an agency within its jurisdiction. The motion calling for the study or investigation must state the subject matter and scope of the study or investigation. The study or investigation may not exceed the scope stated in the motion.

(B)    An investigating committee may vest its investigative authority in a subcommittee. When a subcommittee is given the authority to conduct a study or investigation it has all of the power and authority of an investigating committee. A subcommittee leading a study or investigation of an agency must make a full report of its findings and recommendations to the full committee at the conclusion of its study or investigation. No subcommittee leading a study or investigation may consist of fewer than three members.

Section 2-2-50.    When conducting a study or investigation, an investigating committee may acquire evidence or information by any lawful means, including, but not limited to:

(A)    serve a request for information on the agency being studied or investigated. The request for information must be answered separately and fully in writing under oath and returned to the investigating committee within forty-five days after being served upon the department or agency. The time for answering a request for information may be extended for a period to be agreed upon by the committee and the agency for good cause shown. The head of the department or agency must sign the answers verifying them as true and correct. If any question contains a request for records, policies, audio or video recordings, or other documents, the questions is not deemed to have been answered unless a complete set of records, policies, audio or video recordings or other documents is included with the answer;

(B)    depose witnesses upon oral examination. A deposition upon oral examination may be taken from any person that the committee has reason to believe has knowledge of the activities under investigation. The committee must provide the person being deposed and the agency under investigation with no less than ten days notice of the deposition. The notice to the agency shall state the time and place for taking the deposition and name and address of each person to be examined. If a subpoena duces tecum is to be served on the person to be examined, the designation of the materials to be produced as set forth in the subpoena must be attached to or included in the notice. The deposition must be taken under oath administered by the chairman of the investigating committee or his designee. The testimony must be taken stenographically or recorded by some other means and may be videotaped. A person may be compelled to attend a deposition in the county in which he resides or in Richland County.

(C)    issue subpoenas and subpoenas duces tecum pursuant to Title 2, Chapter 69; and

(D)    require the agency to prepare and submit to the investigating committee a program evaluation report by a date specified by the committee. The investigating committee must specify agency program or programs or agency operations that it is studying or investigating and the information to be contained in the program evaluation report.

Section 2-2-60.    (A)    An investigating committee's request for a program evaluation report must contain:

(1)    the agency program or operations that it intends to investigate;

(2)    the information that must be included in the report; and

(3)    the date that the report must be submitted to the committee.

(B)    An investigating committee may request that the program evaluation report contain any of the following information:

(1)    enabling or authorizing law or other relevant mandate, including any federal mandates;

(2)    a description of each program administered by the agency identified by the investigating committee in the request for a program evaluation report, including the following information:

(a)    established priorities, including goals and objectives in meeting each priority;

(b)    performance criteria, timetables, or other benchmarks used by the agency to measure its progress in achieving its goals and objectives;

(c)    an assessment by the agency indicating the extent to which it has met the goals and objectives, using the performance criteria. When an agency has not met its goals and objectives, the agency shall identify the reasons for not meeting them and the corrective measures the agency has taken to meet them in the future;

(3)    Organizational structure, including a position count, job classification, and organization flow chart indicating lines of responsibility;

(4)    financial summary, including sources of funding by program and the amounts allocated or appropriated and expended over the last ten years;

(5)    identification of areas where the agency has coordinated efforts with other state and federal agencies in achieving program objectives and other areas in which an agency could establish cooperative arrangements, including, but not limited to, cooperative arrangements to coordinate services and eliminate redundant requirements;

(6)    identification of the constituencies served by the agency or program, noting any changes or projected changes in the constituencies;

(7)    a summary of efforts by the agency or program regarding the use of alternative delivery systems, including privatization, in meeting its goals and objectives;

(8)    identification of emerging issues for the agency;

(9)    a comparison of any related federal laws and regulations to the state laws governing the agency or program and the rules implemented by the agency or program;

(10)    agency policies for collecting, managing, and using personal information over the Internet and non-electronically, information on the agency's implementation of information technologies;

(11)    a list of reports, applications, and other similar paperwork required to be filed with the agency by the public. The list must include:

(a)    the statutory authority for each filing requirement;

(b)    the date each filing requirement was adopted or last amended by the agency;

(c)    the frequency that filing is required;

(d)    the number of filings received annually for the last five years and the number of anticipated filings for the next five years;

(e)    a description of the actions taken or contemplated by the agency to reduce filing requirements and paperwork duplication.

(12)    any other relevant information specifically requested by the investigating committee.

(C)    All information contained in a program evaluation report must be presented in a concise but complete manner.

(D)    The chairman of the investigating committee may direct the Legislative Audit Council to perform a study of the program evaluation report and report its findings to the investigating committee. The chairman may also direct the Legislative Audit Council to perform its own audit of the program or operations being studied or investigated by the investigating committee.

Section 2-2-70.    All testimony given to the investigating committee must be under oath.

Section 2-2-80.    Any witness testifying before or deposed by the investigating committee may have counsel present to advise him. The witness or his counsel may, during the time of testimony or deposition, object to any question detrimental to the witness' interests and is entitled to have a ruling by the chairman on any objection. In making his ruling the chairman shall follow as closely as possible the procedures and rules of evidence observed by the circuit courts of this State.

Section 2-2-90.    A witness shall be given the benefit of any privilege which he could have claimed in court as a party to a civil action."

Part IV

Conforming and Miscellaneous Amendments

SECTION    6.    A.    Section 1-11-20 of the 1976 Code, as last amended by Act 164 of 2005, is further 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 divisions, the Finance Division (embracing the work of the State Auditor, the former State Budget Commission, the former State Finance Committee and the former Board of Claims for the State of South Carolina), the Purchasing and Property Division (embracing the work of the former Commissioners of the Sinking Fund, the former Board of Phosphate Commissioners, the State Electrician and Engineer, the former Commission on State House and State House Grounds, the central purchasing functions, the former Surplus Procurement Division of the State Research, Planning and Development Board and the Property Custodian) and the Division of Personnel Administration (embracing the work of the former retirement board known as the South Carolina Retirement System and the administration of all laws relating to personnel), each division to consist of a director and clerical, stenographic and technical employees necessary, to be employed by the respective directors with the approval of the board. The directors of the 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)(1)    Notwithstanding subsection (A), as of July 1, 2011, the Division of General Services of the State Budget and Control Board including Facilities Management, Business Services together with Fleet Management, and Property Services as well as the Procurement Services Division, Division of State Chief Information Officer, State Energy Office, Office of Human Resources, and the other offices or divisions of the State Budget and Control Board specified in Section 1-30-125 are transferred to, and incorporated into, the South Carolina Department of Administration.

(2)    Notwithstanding another provision of law, if the State Budget and Control Board maintains any responsibility related to a program administered by the Department of Administration, whether the responsibility is regulatory, oversight, approval, or other, the board may 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.

(3)    The Department of Administration shall use the existing resources of each division transferred to the department including, but not limited to, funding, personnel, equipment, and supplies to carry out each division's responsibilities. 'Funding' means state, federal, and other funds. Vacant FTE's at the State Budget and Control Board also may be used to fill needed positions at the department. No new FTE's may be assigned to the department without authorization from the General Assembly.

(C)    Notwithstanding subsection (A), as of July 1, 2011, the State Budget and Control Board also contains an additional division, known as the State House, Legislative, and Judicial Facilities Operations Division, responsible for the operations and management of the State House, Blatt Office Building, Gressette Office Building, Supreme Court Building, Calhoun Office Building, and Capitol Complex grounds. The division shall use existing resources in the General Services Division and the State Budget and Control Board including, but not limited to, funding, personnel, equipment, supplies, and tools to carry out the responsibilities of the division. No new FTE's may be assigned to the State House, Legislative, and Judicial Facilities Operations Division without authorization from the General Assembly. The division also shall divide or share, or both, existing equipment, tools, and supplies with the General Services Division to carry out the responsibilities of the division. The division shall not purchase new equipment, tools, or supplies unless approved by the Executive Director of the State Budget and Control Board."

B.        Section 1-11-22 of the 1976 Code is amended to read:

"Section 1-11-22.    (A)    Notwithstanding any other provision of law, the Budget and Control Board may organize its staff as it deems considers most appropriate to carry out the various duties, responsibilities and authorities assigned to it and to its various divisions and management and organizational entities.

(B)    To the extent that any provision of law divides any responsibilities of any division, office, or program of the Budget and Control Board between the board and one or more state agencies, the transfer must not proceed until a realignment plan for the allocation of staff, assets, and resources is prepared and presented by the board's executive director, and approved by the board. Upon the board's approval, the Office of the Executive Director must provide for the allocation as specified in the realignment plan as soon as practicable.

(C)    Notwithstanding any other provision of law, wherever the Budget and Control Board maintains any responsibility related to a program administered by the Department of Administration, whether the responsibility be regulatory, oversight, approval, or other, the board is authorized to 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."

C.        Sections 1-11-55, 1-11-56, and 1-11-58, all as added by Act 153 of 1997, are amended to read:

"Section 1-11-55.    (1)    'Governmental body' means a state government department, commission, council, board, bureau, committee, institution, college, university, technical school, legislative body, government corporation, or other establishment or official of the executive, judicial, or legislative branches branch of this State. Governmental body excludes the General Assembly, Legislative Council, the Office of Legislative Printing, Information and Technology Systems, the Judicial Department, and all local political subdivisions such as counties, municipalities, school districts, or public service or special purpose districts.

(2)    The Budget and Control Board South Carolina Department of Administration, Division of General Services, is hereby designated as the single central broker for the leasing of real property for governmental bodies. No governmental body shall enter into any lease agreement or renew any existing lease except in accordance with the provisions of this section.

(3)    When any governmental body needs to acquire real property for its operations or any part thereof and state-owned property is not available, it shall notify the Office Division of General Services of its requirement on rental request forms prepared by the office. Such forms shall indicate the amount and location of space desired, the purpose for which it shall be used, the proposed date of occupancy and such other information as General Services may require. Upon receipt of any such request, General Services shall conduct an investigation of available rental space which would adequately meet the governmental body's requirements, including specific locations which may be suggested and preferred by the governmental body concerned. When suitable space has been located which the governmental body and the office division agree meets necessary requirements and standards for state leasing as prescribed in procedures of the board department as provided for in subsection (5) of this section, General Services shall give its written approval to the governmental body to enter into a lease agreement. All proposed lease renewals shall be submitted to General Services by the time specified by General Services.

(4)    The board department shall adopt procedures to be used for governmental bodies to apply for rental space, for acquiring leased space, and for leasing state-owned space to nonstate lessees. Before implementation, these procedures must be submitted to the Budget and Control Board for approval.

(5)    Any participant in a property transaction proposed to be entered who maintains that a procedure provided for in this section has not been properly followed, may request review of the transaction by the Director director of the Office Division of General Services of the Department of Administration or his designee.

Section 1-11-56.    The State Budget and Control Board Department of Administration, Division of General Services, in an effort to ensure that funds authorized and appropriated for rent are used in the most efficient manner, is directed to develop a program to manage the leasing of all public and private space of state agencies. The department must submit regulations for the implementation of this section to the General Assembly as provided in the Administrative Procedures Act, Chapter 23 of Title 1. The board department regulations, upon General Assembly approval, shall include procedures for:

(1)    assessing and evaluating agency needs, including the authority to require agency justification for any request to lease public or private space;

(2)    establishing standards for the quality and quantity of space to be leased by a requesting agency;

(3)    devising and requiring the use of a standard lease form (approved by the Attorney General) with provisions which assert and protect the state's prerogatives including, but not limited to, a right of cancellation in the event of:

(a)    a nonappropriation for the renting agency,;

(b)    a dissolution of the agency,; and

(c)    the availability of public space in substitution for private space being leased by the agency;

(4)    rejecting an agency's request for additional space or space at a specific location, or both;

(5)    directing agencies to be located in public space, when available, before private space can be leased;

(6)    requiring the agency to submit a multi-year financial plan for review by the board's budget office Budget and Control Board's Office of State Budget with copies sent to Ways and Means Committee and Senate Finance Committee, before any new lease for space is entered into; and requiring prior review by the Joint Bond Review Committee and the requirement of Budget and Control Board approval before the adoption of any new lease that commits more than one million dollars in a five-year period; and

(7)    requiring prior review by the Joint Bond Review Committee and the requirement of Budget and Control Board departmental approval before the adoption of any new lease that commits more than one million dollars in a five-year period.

Section 1-11-58.    (1)    Every state agency, as defined by Section 1-19-40, shall annually perform an inventory and prepare a report of all residential and surplus real property owned by it. The report shall be submitted to the State Budget and Control Board Department of Administration, Office Division of General Services, on or before June thirtieth and shall indicate current use, current value, and projected use of the property. Property not currently being utilized for necessary agency operations shall be made available for sale and funds received from the sale of the property shall revert to the general fund.

(2)    The Office Division of General Services will shall review the annual reports addressing real property submitted to it and determine the real property which is surplus to the State. A central listing of such property will be maintained for reference in reviewing subsequent property acquisition needs of agencies.

(3)    Upon receipt of a request by an agency to acquire additional property, the Office Division of General Services shall review the surplus property list to determine if the agency's needs can may be met from existing state-owned property. If such property is identified, the Office division of General Services shall act as broker in transferring the property to the requesting agency under terms and conditions that are mutually agreeable to the agencies involved.

(4)    The Budget and Control Board department may authorize the Office Division of General Services to sell any unassigned surplus real property. The Office of General Services division shall have the discretion to determine the method of disposal to be used, which possible methods include: auction, sealed bids, listing the property with a private broker or any other method determined by the Office of General Services division to be commercially reasonable considering the type and location of property involved."

D.        Sections 1-11-65, 1-11-67, 1-11-70, 1-11-80, 1-11-90, 1-11-100, and 1-11-110 of the 1976 Code are amended to read:

"Section 1-11-65.    (A)    All transactions involving real property, made for or by any governmental bodies, excluding political subdivisions of the State, must be recommended by the Department of Administration and approved by and recorded with the State Budget and Control Board. Upon approval of the transaction by the Budget and Control Board, there must be recorded simultaneously with the deed, a certificate of acceptance, which acknowledges the board's approval of the transaction. The county recording authority cannot accept for recording any deed not accompanied by a certificate of acceptance. The board may exempt a governmental body from the provisions of this subsection.

(B)    All state agencies, departments, and institutions authorized by law to accept gifts of tangible personal property shall have executed by its governing body an acknowledgment of acceptance prior to transfer of the tangible personal property to the agency, department, or institution.

Section 1-11-67.    The State Budget and Control Board and the Department of Administration shall assess and collect a rental charge from all state departments and agencies that occupy State Budget and Control Board space in state-controlled office buildings under their jurisdiction. The amount charged each department or agency must be calculated on a square foot, or other equitable basis of measurement, and at rates that will yield sufficient total annual revenue to cover the annual principal and interest due or anticipated on the Capital Improvement Obligations for projects administered or planned by the Office of General Services board or by the department, and maintenance and operation costs of State Budget and Control Board-controlled or department-controlled office buildings under the supervision of the Office of General Services. The amount collected must be deposited in a special account and must be expended only for payment on Capital Improvement Obligations and maintenance and operations costs of the buildings under the supervision of the Office of General Services board or department.

All departments and agencies against which rental charges are assessed and whose operations are financed in whole or in part by federal or other nonappropriated funds are both directed to apportion the payment of these charges equitably among all funds to ensure that each bears its proportionate share.

Section 1-11-70.    All vacant lands and lands purchased by the former land commissioners of the State shall be are subject to the directions of the State Budget and Control Board Department of Administration.

Section 1-11-80.    The State Budget and Control Board, after consultation with the South Carolina Department of Administration, is authorized to grant easements and rights of way to any person for construction and maintenance of power lines, pipe lines, water and sewer lines and railroad facilities over, on or under such vacant lands or marshland as are owned by the State, upon payment of the reasonable value thereof.

Section 1-11-90.    The State Budget and Control Board, after consultation with the South Carolina 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, the interests of the State will not be adversely affected thereby.

Section 1-11-100.    Deeds or other instruments conveying such rights of way or easements over such marshlands or vacant lands as are owned by the State shall be executed by the Governor in the name of the State, when recommended by the South Carolina Department of Administration and authorized by resolution of the Budget and Control Board, duly recorded in the minutes and records of such board and when duly approved by the office of the Attorney General; deeds or other instruments conveying such easements over property in the name of or under the control of State agencies, institutions, commissions or other bodies shall be executed by the majority of the governing body thereof, shall name both the State of South Carolina and the institution, agency, commission or governing body as grantors, and shall show the written approval of the majority of the members of the State Budget and Control Board.

Section 1-11-110.    (1)    The State Budget and Control Board, after consultation with the South Carolina Department of Administration, is authorized to acquire real property, including any estate or interest therein, for, and in the name of, the State of South Carolina by gift, purchase, condemnation or otherwise.

(2)    The State Budget and Control Board, after consultation with the South Carolina Department of Administration, shall make use of the provisions of the Eminent Domain Procedure Act (Chapter 2 of Title 28) if it is necessary to acquire real property by condemnation. The actions must be maintained by and in the name of the board. The right of condemnation is limited to the right to acquire land necessary for the development of the Capitol Complex mall grounds in the City of Columbia."

E.        Section 1-11-180 of the 1976 Code is amended to read:

"Section 1-11-180.    (A)    In addition to the powers granted the Budget and Control Board South Carolina Department of Administration under this chapter or any other provision of law, the board department may:

(1)    survey, appraise, examine, and inspect the condition of state property to determine what is necessary to protect state property against fire or deterioration and to conserve the use of the property for state purposes;

(2)    approve the destruction or disposal of state agency records;

(3)    require submission and approval of plans and specifications for permanent improvements by a state department, agency, or institution before a contract is awarded for the permanent improvement;

(4)    approve blanket bonds for a state department, agency, or institution including bonds for state officials or personnel. However, the form and execution of blanket bonds must be approved by the Attorney General;

(5)(3)    contract to develop an energy utilization management system for state facilities under its control and to assist other agencies and departments in establishing similar programs. However, this does not authorize capital expenditures.

(B)    The Budget and Control Board South Carolina Department of Administration may shall promulgate regulations necessary to carry out this section."

F.        Chapter 11 of Title 1 of the 1976 Code is amended by adding:

"Section 1-11-185.    (A)    In addition to the powers granted the Budget and Control Board pursuant to this chapter or another provision of law, the board 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 Budget and Control Board may promulgate regulations necessary to carry out its duties.

(C)    The respective divisions of the Budget and Control Board 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."

G.        (1)    Section 1-11-220 of the 1976 Code is amended to read:

"Section 1-11-220.    There is hereby established within the Budget and Control Board South Carolina Department of Administration, the Division of Motor Vehicle Management General Services, Program of Fleet Management headed by a Director, hereafter referred to as the 'State Fleet Manager' appointed by and reporting directly to the Budget and Control Board department, hereafter referred to as the Board. The Board department shall develop a comprehensive state Fleet Management Program. The program shall address acquisition, assignment, identification, replacement, disposal, maintenance, and operation of motor vehicles.

The Budget and Control Board department shall, through their its policies and regulations, seek to achieve the following objectives:

(a)    to achieve maximum cost-effectiveness management of state-owned motor vehicles in support of the established missions and objectives of the agencies, boards, and commissions.;

(b)    to eliminate unofficial and unauthorized use of state vehicles.;

(c)    to minimize individual assignment of state vehicles.;

(d)    to eliminate the reimbursable use of personal vehicles for accomplishment of official travel when this use is more costly than use of state vehicles.;

(e)    to acquire motor vehicles offering optimum energy efficiency for the tasks to be performed.;

(f)    to insure motor vehicles are operated in a safe manner in accordance with a statewide Fleet Safety Program."

(2)    Section 1-11-225 of the 1976 Code is amended to read:

"Section 1-11-225.    The Division of Operations South Carolina Department of Administration shall establish a cost allocation plan to recover the cost of operating the comprehensive statewide Fleet Management Program. The division shall collect, retain, and carry forward funds to ensure continuous administration of the program."

(3)    Sections 1-11-250, 1-11-260, 1-11-270(A), 1-11-280, 1-11-290; 1-11-300, 1-11-310, 1-11-315, 1-11-320; 1-11-335, and 1-11-340 of the 1976 Code are amended to read:

"Section 1-11-250.    For purposes of Sections 1-11-220 to 1-11-330:

(a)    'State agency' means all officers, departments, boards, commissions, institutions, universities, colleges, and all persons and administrative units of state government that operate motor vehicles purchased, leased, or otherwise held with the use of state funds, pursuant to an appropriation, grant or encumbrance of state funds, or operated pursuant to authority granted by the State.

(b)    'Board Department' means State Budget and Control Board the South Carolina Department of Administration.

Section 1-11-260.    (A)    The Fleet Manager shall report annually to the Budget and Control Board department and the General Assembly concerning the performance of each state agency in achieving the objectives enumerated in Sections 1-11-220 through 1-11-330 and include in the report a summary of the division's program's efforts in aiding and assisting the various state agencies in developing and maintaining their management practices in accordance with the comprehensive statewide Motor Vehicle Fleet Management Program. This report also shall contain recommended changes in the law and regulations necessary to achieve these objectives.

(B)    The board department, after consultation with state agency heads, shall promulgate and enforce state policies, procedures, and regulations to achieve the goals of Sections 1-11-220 through 1-11-330 and shall recommend administrative penalties to be used by the agencies for violation of prescribed procedures and regulations relating to the Fleet Management Program.

Section 1-11-270.    (A) The board department shall establish criteria for individual assignment of motor vehicles based on the functional requirements of the job, which shall reduce the assignment to situations clearly beneficial to the State. Only the Governor, statewide elected officials, and agency heads are provided a state-owned vehicle based on their position.

Section 1-11-280.    The Board department shall develop a system of agency-managed and interagency motor pools which are, to the maximum extent possible, cost beneficial to the State. All motor pools shall operate according to regulations promulgated by the Budget and Control Board department. Vehicles shall be placed in motor pools rather than being individually assigned except as specifically authorized by the Board department in accordance with criteria established by the Board department. The motor pool operated by the Division of General Services shall be transferred to the Division of Motor Vehicle Management. Agencies utilizing motor pool vehicles shall utilize trip log forms approved by the Board department for each trip, specifying beginning and ending mileage and the job function performed.

The provisions of this section shall not apply to school buses and service vehicles.

Section 1-11-290.    The Board department in consultation with the agencies operating maintenance facilities shall study the cost-effectiveness of such facilities versus commercial alternatives and shall develop a plan for maximally cost-effective vehicle maintenance. The Budget and Control Board department shall promulgate rules and regulations governing vehicle maintenance to effectuate the plan.

The State Vehicle Maintenance program shall include:

(a)    central purchasing of supplies and parts;

(b)    an effective inventory control system;

(c)    a uniform work order and record-keeping system assigning actual maintenance cost to each vehicle; and

(d)    preventive maintenance programs for all types of vehicles.

All motor fuels shall be purchased from state facilities except in cases where such purchase is impossible or not cost beneficial to the State.

All fuels, lubricants, parts and maintenance costs including those purchased from commercial vendors shall be charged to a state credit card bearing the license plate number of the vehicle serviced and the bill shall include the mileage on the odometer of the vehicle at the time of service.

Section 1-11-300.    In accordance with criteria established by the board department, each agency shall develop and implement a uniform cost accounting and reporting system to ascertain the cost per mile of each motor vehicle used by the State under their control. Agencies presently operating under existing systems may continue to do so provided that board departmental approval shall be is required and that the existing systems shall be are uniform with the criteria established by the board department. All expenditures on a vehicle for gasoline and oil shall be purchased in one of the following ways:

(1)    from state-owned facilities and paid for by the use of Universal State Credit Cards except where agencies purchase these products in bulk;

(2)    from any fuel outlet where gasoline and oil are sold regardless of whether the outlet accepts a credit or charge card when the purchase is necessary or in the best interest of the State; and

(3)    from a fuel outlet where gasoline and oil are sold when that outlet agrees to accept the Universal State Credit Card.

These provisions regarding purchase of gasoline and oil and usability of the state credit card also apply to alternative transportation fuels where available. The Budget and Control Board Division of Operations department shall adjust the budgetary appropriation in Part IA, Section 63B, for 'Operating Expenses--Lease Fleet' to reflect the dollar savings realized by these provisions and transfer such amount to other areas of the State Fleet Management Program. The Board department shall promulgate regulations regarding the purchase of motor vehicle equipment and supplies to ensure that agencies within a reasonable distance are not duplicating maintenance services or purchasing equipment that is not in the best interest of the State. The Board department shall develop a uniform method to be used by the agencies to determine the cost per mile for each vehicle operated by the State.

Section 1-11-310.    (A)    The State Budget and Control Board South Carolina Department of Administration shall purchase, acquire, transfer, replace, and dispose of all motor vehicles on the basis of maximum cost-effectiveness and lowest anticipated total life cycle costs.

(B)    The standard state fleet sedan or station wagon must be no larger than a compact model and the special state fleet sedan or station wagon must be no larger than an intermediate model. The director of the Division of Motor Vehicle Management State Fleet Manager shall determine the types of vehicles which fit into these classes. Only these classes of sedans and station wagons may be purchased by the State for nonlaw enforcement use.

(C)    The State shall purchase police sedans only for the use of law enforcement officers, as defined by the Internal Revenue Code. Purchase of a vehicle under this subsection must be concurred in by the director of the Division of Motor Vehicle Management State Fleet Manager and must be in accordance with regulations promulgated or procedures adopted under Sections 1-11-220 through 1-11-340 which must take into consideration the agency's mission, the intended use of the vehicle, and the officer's duties. Law enforcement agency vehicles used by employees whose job functions do not meet the Internal Revenue Service definition of 'Law Enforcement Officer' must be standard or special state fleet sedans.

(D)    All state motor vehicles must be titled to the State and must be received by and remain in the possession of the Division Program of Motor Vehicle Fleet Management pending sale or disposal of the vehicle.

(E)    Titles to school buses and service vehicles operated by the State Department of Education and vehicles operated by the South Carolina Department of Transportation must be retained by those agencies.

(F)    Exceptions to requirements in subsections (B) and (C) must be approved by the director of the Division of Motor Vehicle Management State Fleet Manager. Requirements in subsection (B) do not apply to the State Development Board.

(G)    Preference in purchasing state motor vehicles must be given to vehicles assembled in the United States with at least seventy-five percent domestic content as determined by the appropriate federal agency.

Section 1-11-315.    The State Budget and Control Board South Carolina Department of Administration, Division of General Services, Program of Motor Vehicle Fleet Management, shall determine the extent to which the state vehicle fleet can be configured to operate on alternative transportation fuels. This determination must be based on a thorough evaluation of each alternative fuel and the feasibility of using such fuels to power state vehicles. The state fleet must be configured in a manner that will serve as a model for other corporate and government fleets in the use of alternative transportation fuel. By March 1, 1993, the Division Program of Motor Vehicle Fleet Management must submit a plan to the General Assembly for the use of alternative transportation fuels for the state vehicle fleet that will enable the state vehicle fleet to serve as a model for corporate and other government fleets in the use of alternative transportation fuel. This plan must contain a cost/benefit analysis of the proposed changes.

Section 1-11-320.    The Board department shall ensure that all state-owned motor vehicles are identified as such through the use of permanent state-government state government license plates and either state or agency seal decals. No vehicles shall be exempt from the requirements for identification except those exempted by the Board department.

This section shall not apply to vehicles supplied to law enforcement officers when, in the opinion of the Board department after consulting with the Chief of the State Law Enforcement Division, those officers are actually involved in undercover law enforcement work to the extent that the actual investigation of criminal cases or the investigators' physical well-being would be jeopardized if they were identified. The Board department is authorized to exempt vehicles carrying human service agency clients in those instances in which the privacy of the client would clearly and necessarily be impaired.

Section 1-11-335.    The respective divisions of the Budget and Control Board and the South Carolina Department of Administration are authorized to provide to and receive from other governmental entities, including other divisions and state and local agencies and departments, goods and services, as will in its opinion promote efficient and economical operations. The divisions may charge and pay the entities for the goods and services, the revenue from which shall be deposited in the state treasury in a special account and expended only for the costs of providing the goods and services, and such funds may be retained and expended for the same purposes.

Section 1-11-340.    The Board department shall develop and implement a statewide Fleet Safety Program for operators of state-owned vehicles which shall serve to minimize the amount paid for rising insurance premiums and reduce the number of accidents involving state-owned vehicles. The Board department shall promulgate rules and regulations requiring the establishment of an accident review board by each agency and mandatory driver training in those instances where remedial training for employees would serve the best interest of the State."

H.        Section 1-11-435 of the 1976 Code is amended to read:

"Section 1-11-435.    To protect the state's critical information technology infrastructure and associated data systems in the event of a major disaster, whether natural or otherwise, and to allow the services to the citizens of this State to continue in such an event, the Office Division of the Office of the State Chief Information Officer in the Budget and Control Board (CIO) should develop a Critical Information Technology Infrastructure Protection Plan devising policies and procedures to provide for the confidentiality, integrity, and availability of, and to allow for alternative and immediate online access to critical data and information systems including, but not limited to, health and human services, law enforcement, and related agency data necessary to provide critical information to citizens and ensure the protection of state employees as they carry out their disaster-related duties. All state agencies and political subdivisions of this State are directed to assist the Office of the State CIO in the collection of data required for this plan."

I.    Section 2-13-240(a) of the 1976 Code, as last amended by Act 419 of 1998, is further amended by adding at the end:

"(89)    Department of Administration, six."

J.    Section 2-13-240(a)(58) of the 1976 Code is amended to read:

"(58)    Budget and Control Board:

(a)    Auditor, six;

(b)    General Services Division, six;

(c)    Personnel Division, one;

(d)    Research and Statistical Services Division, one;

(e)    Retirement System, one.;

(f)     Statehouse, Legislative, and Judicial Facilities Operations Division, one."

K.        Chapter 9, Title 3 of the 1976 Code is amended to read:

"CHAPTER 9

Acquisition And Distribution Of Federal Surplus Property

Section 3-9-10.    (a)    The Division of General Services of the State Budget and Control Board South Carolina Department of Administration is authorized:

(1)    to acquire from the United States of America under and in conformance with the provisions of Section 203 (j) of the Federal Property and Administrative Services Act of 1949, as amended, hereafter referred to as the 'act,' such property, including equipment, materials, books, or other supplies under the control of any department or agency of the United States of America as may be usable and necessary for purposes of education, public health or civil defense, including research for any such purpose, and for such other purposes as may now or hereafter be authorized by federal law;

(2)    to warehouse such property; and

(3)    to distribute such property within the State to tax-supported medical institutions, hospitals, clinics, health centers, school systems, schools, colleges and universities within the State, to other nonprofit medical institutions, hospitals, clinics, health centers, schools, colleges and universities which are exempt from taxation under Section 501 (c)(3) of the United States Internal Revenue Code of 1954, to civil defense organizations of the State, or political subdivisions and instrumentalities thereof, which are established pursuant to State law, and to such other types of institutions or activities as may now be or hereafter become eligible under Federal law to acquire such property.

(b)    The Division of General Services of the Department of Administration is authorized to receive applications from eligible health and educational institutions for the acquisition of Federal surplus real property, investigate the applications, obtain expression of views respecting the applications from the appropriate health or educational authorities of the State, make recommendations regarding the need of such applicant for the property, the merits of its proposed program of utilization, the suitability of the property for the purposes, and otherwise assist in the processing of the applications for acquisition of real and related personal property of the United States under Section 203 (k) of the act.

(c)    For the purpose of executing its authority under this chapter, the Division of General Services is authorized to adopt, amend or rescind rules and regulations and prescribe such requirements as may be deemed necessary; and take such other action as is deemed necessary and suitable, in the administration of this chapter, to assure maximum utilization by and benefit to health, educational and civil defense institutions and organizations within the State from property distributed under this chapter.

(d)    The Budget and Control Board South Carolina Department of Administration is authorized to appoint advisory boards or committees, and to employ such personnel and prescribe their duties as are deemed necessary and suitable for the administration of this chapter.

(e)    The Director of the Division of General Services is authorized to make such certifications, take such action and enter into such contracts, agreements and undertakings for and in the name of the State (including cooperative agreements with any Federal agencies providing for utilization of property and facilities by and exchange between them of personnel and services without reimbursement), require such reports and make such investigations as may be required by law or regulation of the United States of America in connection with the receipt, warehousing and distribution of personal property received by him from the United States of America.

(f)    The Division of General Services is authorized to act as clearinghouse of information for the public and private nonprofit institutions, organizations and agencies referred to in subparagraph (a) of this section and other institutions eligible to acquire federal surplus personal property, to locate both real and personal property available for acquisition from the United States of America, to ascertain the terms and conditions under which such property may be obtained, to receive requests from the above-mentioned institutions, organizations and agencies and to transmit to them all available information in reference to such property, and to aid and assist such institutions, organizations and agencies in every way possible in the consummation of acquisitions or transactions hereunder.

(g)    The Division of General Services, in the administration of this chapter, shall cooperate to the fullest extent consistent with the provisions of the act, and with the departments or agencies of the United States of America, and shall file a State plan of operation, and operate in accordance therewith, and take such action as may be necessary to meet the minimum standards prescribed in accordance with the act, and make such reports in such form and containing such information as the United States of America or any of its departments or agencies may from time to time require, and it shall comply with the laws of the United States of America and the rules and regulations of any of the departments or agencies of the United States of America governing the allocation, transfer, use or accounting for, property donable or donated to the State.

Section 3-9-20.    The Director of the Division of General Services may delegate such power and authority as he deems reasonable and proper for the effective administration of this chapter. The State Budget and Control Board South Carolina Department of Administration may require bond of any person in the employ of the Division of General Services receiving or distributing property from the United States under authority of this chapter.

Section 3-9-30.    Any charges made or fees assessed by the Division of General Services for the acquisition, warehousing, distribution or transfer of any property of the United States of America for educational, public health or civil defense purposes, including research for any such purpose, or for any purpose which may now be or hereafter become eligible under the act, shall be limited to those reasonably related to the costs of care and handling in respect to its acquisition, receipt, warehousing, distribution or transfer.

Section 3-9-40.    The provisions of this chapter shall not apply to the acquisition of property acquired by agencies of the State under the priorities established by Section 308 (b), Title 23, United States Code, Annotated."

L.        Section 10-1-10, Section 10-1-30, as last amended by Act 628 of 1988, and Section 10-1-40 of the 1976 Code are amended to read:

"Section 10-1-10.    (A)    The State Budget and Control Board shall keep, landscape, cultivate, and beautify the State House and State House grounds with authority to expend such amounts as may be annually appropriated therefor. The board shall employ all help and labor in policing, protecting, and caring for the State House and State House grounds and shall have full authority over them.

(B)    The State Budget and Control Board shall keep and maintain the State House, Blatt Office Building, Gressette Office Building, Supreme Court Building, Calhoun Office Building, and the grounds of the Capitol Complex with authority to expend amounts as may be appropriated annually therefor and shall have full authority over the buildings. The board shall employ all help and labor in policing, protecting, and caring for the State House, and its grounds and shall have full authority over it.

Section 10-1-30.    (A)    The Director of the Division of General Services of the State Budget and Control Board may authorize the use of the State House lobbies, the State House steps and grounds, and other public buildings and grounds in accordance with regulations promulgated restrictions set by the board.

(B)    The Budget and Control Board may authorize the use of the State House lobbies and the Gressette and Blatt Office Buildings in accordance with restrictions set by the board. The director board shall obtain the approval of the Clerk of the Senate before authorizing any use of the Gressette Building and shall obtain the approval of the Clerk of the House of Representatives before authorizing any use of the Blatt Building.

(C)    The regulations restrictions upon the use of the buildings and grounds must contain provisions to insure ensure that the public health, safety, and welfare will be are protected in the use of the areas including reasonable time, place, and manner restrictions and application periods before use. If sufficient measures cannot be are not taken to protect the public health, safety, and welfare, the director Budget and Control Board shall deny the requested use. Other restrictions may be imposed on the use of the areas as are necessary for the conduct of business in those areas and the maintenance of the dignity, decorum, and aesthetics of the areas.

Section 10-1-40.    There is hereby established a committee to be known as the 'State House Committee', consisting of five members of the Senate, appointed by the Lieutenant Governor and five members of the House of Representatives, appointed by the Speaker, whose duties shall be to review all proposals for alterations and/or renovations to the State House. No alterations or renovations shall be undertaken without the approval of this committee."

M.    Section 10-1-130 of the 1976 Code is amended to read:

"Section 10-1-130.    The trustees or governing bodies of State institutions and agencies may grant easements and rights of way over any property under their control, upon the recommendation of the Department of Administration and the concurrence and acquiescence of the State Budget and Control Board, whenever it appears that such easements will do not materially impair the utility of the property or damage it and, when a consideration is paid therefor, any such amounts shall must be placed in the State Treasury to the credit of the institution or agency having control of the property involved."

N.        Section 10-1-190 of the 1976 Code, as added by Act 145 of 1995, is amended to read:

"Section 10-1-190.    As part of the approval process relating to trades of state property for nonstate property, the Budget and Control Board South Carolina Department of Administration is authorized to approve the application of any net proceeds resulting from such a transaction to the improvement of the property held by the board department, subject to the approval of the Budget and Control Board."

O.        Chapter 9, Title 10 of the 1976 Code is amended to read:

"CHAPTER 9

Minerals and Mineral Interests

in Public Lands

Article 1

General Provisions

Section 10-9-10.    The Public Service Authority may, through its board of directors, make and execute leases of gas, oil and other minerals and mineral rights, excluding phosphate and lime and phosphatic deposits, over and upon the lands and properties owned by said Authority; and the State Budget and Control Board South Carolina Department of Administration and the forfeited land commissions of the several counties of this State may, with the approval of the Attorney General, make and execute such leases over and upon the lands and waters of the State and of the several counties under the ownership, management, or control of such Board the department and commissions respectively.

Section 10-9-20.     No such lease shall provide for a royalty of less than twelve and one-half per cent of production of oil and gas from the lease.

Section 10-9-30.     Nothing contained in this article shall estop the State from enacting proper laws for the conservation of the oil, gas and other mineral resources of the State and all leases and contracts made under authority of this article shall be subject to such laws; provided, that the State Budget and Control Board South Carolina Department of Administration may negotiate for leases of oil, gas and other mineral rights upon all of the lands and waters of the State, including offshore marginal and submerged lands.

Section 10-9-35.     In the event that the State of South Carolina is the recipient of revenues derived from offshore oil leases within the jurisdictional limits of the State such revenues shall be deposited with the State Treasurer in a special fund and shall be expended only by authorization of the General Assembly.

Funds so accumulated shall be expended only for the following purposes:

(1)    to retire the bonded indebtedness incurred by South Carolina;

(2)    for capital improvement expenditures.

Section 10-9-40.     The authority conferred upon the Public Service Authority, the State Budget and Control Board South Carolina Department of Administration, and the forfeited land commissions by this article shall be cumulative and in addition to the rights and powers heretofore vested by law in such Authority, such State Budget and Control Board the South Carolina Department of Administration, and such commissions, respectively.

Article 3

Phosphate

Section 10-9-110.    The State Budget and Control Board South Carolina Department of Administration shall be charged with the exclusive control and protection of the rights and interest of the State in the phosphate rocks and phosphatic deposits in the navigable streams and in the marshes thereof.

Section 10-9-120.    The Board department may inquire into and protect the interests of the State in and to any phosphatic deposits or mines, whether in the navigable waters of the State or in land marshes or other territory owned or claimed by other parties, and in the proceeds of any such mines and may take such action for, or in behalf of, the State in regard thereto as it may find necessary or deem proper.

Section 10-9-130.    The Board department may issue to any person who applies for a lease or license granting a general right to dig, mine and remove phosphate rock and phosphatic deposits from all the navigable streams, waters and marshes belonging to the State and also from such of the creeks, not navigable, lying therein as may contain phosphate rock and deposits belonging to the State and not previously granted. Such leases or licenses may be for such terms as may be determined by the Board department. The annual report of the Board department to the General Assembly shall include a list of all effective leases and licenses. The Board department may make a firm contract for the royalty to be paid the State which shall not be increased during the life of the license. Provided, that prior to the grant or issuance of any lease or license, the Board department shall cause to be published a notice of such application in a newspaper having general circulation in the county once a week for three successive weeks prior to the grant or issuance. Provided, further However, the lessee or licensee may shall not take possession if there be is an adverse claim and the burden of proving ownership in the State shall be placed upon the lessee or licensee.

Section 10-9-140.    In every case in which such an application shall be is made to the Board department for a license, the Board department may grant or refuse the license as it may deem considers best for the interest of the State and the proper management of the interests of the State in such those deposits.

Section 10-9-150.    As a condition precedent to the right to dig, mine, and remove the rocks and deposits granted by any such a license, each licensee shall enter into bond, with security, in the penal sum of five thousand dollars, conditioned for the making at the end of every month of true and faithful returns to the Comptroller General of the number of tons of phosphate rock and phosphatic deposits so dug or mined and the punctual payment to the State Treasurer of the royalty provided at the end of every quarter or three months. Such The bond and sureties thereon shall be are subject to the approval required by law for the bonds of State officers.

Section 10-9-160.    Whenever the Board department shall have reason to doubt the solvency of any surety whose name appears upon any bond executed for the purpose of securing the payment of the phosphate royalty by any person digging, mining and removing phosphate rock or phosphatic deposits in any of the territory, the property of the State, under any grant or license, the Board department shall forthwith notify the person giving such bond and the sureties thereon and require that one or more sureties, as the case may be, shall be added to the bond, such surety or sureties to be approved by the Board department.

Section 10-9-170.    The Board department, upon petition filed by any person who is surety on any such bond as aforesaid and who considers himself in danger of being injured by such suretyship, shall notify the person giving such bond to give a new bond with other sureties and upon failure of such person to do so within thirty days shall cause such person to suspend further operations until a new bond be given. But in In no case shall the sureties on the old bond be discharged from liability thereon until the new bond has been executed and approved, and such sureties shall not be discharged from any antecedent liability by reason of such suretyship.

Section 10-9-180.    The Board department is hereby vested with full and complete power and control over all mining in the phosphate territory belonging to this State and over all persons digging or mining phosphate rock or phosphatic deposit in the navigable streams and waters or in the marshes thereof, with full power and authority, subject to the provisions of Sections 10-9-130 and 10-9-190 to fix, regulate, raise or reduce such royalty per ton as shall from time to time be paid to the State by such persons for all or any such phosphate rock dug, mined, removed and shipped or otherwise sent to the market therefrom. But six Six months' notice shall be given all persons at such time digging or mining phosphate rock in such navigable streams, waters or marshes before any increase shall be made in the rate of royalty theretofore existing.

Section 10-9-190.    Each person to whom a license shall be issued must, at the end of every month, make to the Comptroller General a true and lawful return of the phosphate rock and phosphatic deposits he may have dug or mined during such month and shall punctually pay to the State Treasurer, at the end of every quarter or three months, a royalty of five cents per ton upon each and every ton of the crude rock (not of the rock after it has been steamed or dried), the first quarter to commence to run on the first day of January in each year.

Section 10-9-200.    The State Budget and Control Board South Carolina Department of Administration shall, within twenty days after the grant of any license as aforesaid, notify the Comptroller General of the issuing of such license, with the name of the person to whom issued, the time of the license and the location for which it was issued.

Section 10-9-210.    Every person who shall dig, mine or remove any phosphate rock or phosphatic deposit from the beds of the navigable streams, waters and marshes of the State without license therefor previously granted by the State to such person shall be liable to a penalty of ten dollars for each and every ton of phosphate rock or phosphatic deposits so dug, mined or removed, to be recovered by action at the suit of the State in any court of competent jurisdiction. One half of such penalty shall be for the use of the State and the other half for the use of the informer.

Section 10-9-220.    It shall be unlawful for any person to purchase or receive any phosphate rock or phosphatic deposit dug, mined or removed from the navigable streams, waters or marshes of the State from any person not duly authorized by act of the General Assembly of this State or license of the Board department to dig, mine or remove such phosphate rock or phosphatic deposit.

Section 10-9-230.    Any person violating Section 10-9-220 shall forfeit to the State the sum of ten dollars for each and every ton of phosphate rock or phosphatic deposit so purchased or received, to be recovered by action in any court of competent jurisdiction. One half of such forfeiture shall be for the use of the State and the other half for the use of the informer.

Section 10-9-240.    Should any person whosoever interfere with, obstruct or molest or attempt to interfere with, obstruct or molest the Board department or anyone by it authorized or licensed hereunder in the peaceable possession and occupation for mining purposes of any of the marshes, navigable streams or waters of the State, then the Board department may, in the name and on behalf of the State, take such measures or proceedings as it may be advised are proper to enjoin and terminate any such molestation, interference or obstruction and place the State, through its agents, the Board department or any one under it authorized, in absolute and practical possession and occupation of such marshes, navigable streams or waters.

Section 10-9-250.    Should any person attempt to mine or remove phosphate rock and phosphatic deposits from any of the marshes, navigable waters or streams, including the Coosaw River phosphate territory, by and with any boat, vessel, marine dredge or other appliances for such mining or removal, without the leave or license of the Board department thereto first had and obtained, all such boats, vessels, marine dredges and other appliances are hereby declared forfeited to and property of the State, and the Attorney General, for and in behalf of the State, shall institute proceedings in any court of competent jurisdiction for the claim and delivery thereof, in the ordinary form of action for claim and delivery, in which action the title of the State shall be established by the proof of the commission of any such act of forfeiture by the person owning them, or his agents, in possession of such boats, vessels, marine dredges or other appliances. In any such action the State shall not be called upon or required to give any bond or obligation such as is required by parties plaintiff in action for claim and delivery.

Section 10-9-260.    Any person wilfully interfering with, molesting or obstructing or attempting to interfere with, molest or obstruct the State or the State Budget and Control Board South Carolina Department of Administration or anyone by it authorized or licensed in the peaceable possession and occupation of any of the marshes, navigable streams or waters of the State, including the Coosaw River phosphate territory, or who shall dig or mine or attempt to dig or mine any of the phosphate rock or phosphatic deposits of this State without a license so to do issued by the Board department shall be punished for each offense by a fine of not less than one hundred dollars nor more than five hundred dollars or imprisonment for not less than one nor more than twelve months, or both, at the discretion of the court.

Section 10-9-270.    The Board department shall report annually to the General Assembly its actions and doings under this article during the year to the time of the meeting of the Assembly, with an itemized account of its expenses for the year incurred in connection with its duties and powers under this article.

Article 5

Geothermal Resources

Section 10-9-310.    For purposes of this article geothermal resources mean the natural heat of the earth at temperatures greater than forty degrees Celsius and includes:

(1)    The energy, including pressure, in whatever form present in, resulting from, created by, or that may be extracted from that natural heat.

(2)    The material medium, including the brines, water, and steam naturally present, as well as any substance artificially introduced to serve as a heat transfer medium.

(3)    All dissolved or entrained minerals and gases that may be obtained from the material medium but excluding hydrocarbon substances and helium.

Section 10-9-320.    The State Budget and Control Board (board) South Carolina Department of Administration may lease development rights to geothermal resources underlying surface lands owned by the State. The board department must promulgate regulations regarding the method of lease acquisition, lease terms, and conditions due the State under lease operations. The South Carolina Department of Natural Resources is designated as the exclusive agent for the board in selecting lands to be leased, administering the competitive bidding for leases, administering the leases, receiving and compiling comments from other state agencies concerning the desirability of leasing the state lands proposed for leasing and such other activities that pertain to geothermal resource leases as may be included herein as responsibilities of the board department.

Section 10-9-330.    Any lease of rights to drill for and use oil, natural gas, or minerals on public or private lands must not allow drilling for or use of geothermal energy by the lessee unless the instrument creating the lease specifically provides for such use."

P.        Section 10-11-50 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:

"Section 10-11-50.    (A)    It shall be unlawful for anyone to park any vehicle on any of the property described in Section 10-11-40 and subsection (2) of Section 10-11-80 except in the spaces and manner now marked and designated or that may hereafter be marked and designated by the State Budget and Control Board South Carolina Department of Administration, in cooperation with the Department of Transportation, or to block or impede traffic through the alleys and driveways.

(B)    The Department of Administration must ensure that parking spaces are available in the garage below the Capitol Complex, in proximity to the buildings utilized by the legislative, judicial, and executive branches, in the locations in use on the effective date of this subsection, and assigned as follows:

(1)    three hundred for the House of Representatives;

(2)    two hundred twelve for the Senate;

(3)    twenty-nine for the Judicial Department; and

(4)    fifty-seven for the Office of the Governor."

Q.        Section 10-11-90 of the 1976 Code is amended to read:

"Section 10-11-90.    The watchmen and policemen employed by the Budget and Control Board for the protection of the property described in Sections 10-11-30 and 10-11-40 and subsection (2) of Section 10-11-80 are hereby vested with all of the powers, privileges and immunities of constables while on this area or in fresh pursuit of those violating the law in this area, provided that such watchmen and policemen take and file the oath required of peace officers, execute and file bond in the form required of State constables, in the amount of one thousand dollars, with the Budget and Control Board, and be duly commissioned by the Governor."

R.        Section 10-11-110 of the 1976 Code is amended to read:

"Section 10-11-110.    In connection with traffic and parking violations only, the watchmen and policemen referred to in Section 10-11-90, State highway patrolmen and policemen of the City of Columbia shall have the right to issue and use parking tickets of the type used by the City of Columbia, with such changes as are necessitated hereby, to be prepared and furnished by the Budget and Control Board South Carolina Department of Administration, upon the issuance of which the procedures shall be followed as prevail in connection with the use of parking tickets by the City of Columbia. Nothing herein shall restrict the application and use of regular arrest warrants."

S.        Section 10-11-140 of the 1976 Code is amended to read:

"Section 10-11-140.    Nothing contained in this article shall be construed to abridge the authority of the State Budget and Control Board South Carolina Department of Administration to grant permission to use the State House grounds for educational, electrical decorations and similar purposes."

T.        Section 10-11-330 of the 1976 Code is amended to read:

"Section 10-11-330.    It shall be unlawful for any person or group of persons willfully wilfully and knowingly: (a) to enter or to remain within the capitol building unless such person is authorized by law or by rules of the House or Senate or of the State Budget and Control Board or the South Carolina Department of Administration, respectively, when such entry is done for the purpose of uttering loud, threatening and abusive language or to engage in any disorderly or disruptive conduct with the intent to impede, disrupt or disturb the orderly conduct of any session of the legislature or the orderly conduct within the building or of any hearing before or any deliberation of any committee or subcommittee of the legislature; (b) to obstruct or to impede passage within the capitol grounds or building; (c) to engage in any act of physical violence upon the capitol grounds or within the capitol building; or (d) to parade, demonstrate or picket within the capitol building."

U.        Sections 11-9-610, 11-9-620, and 11-9-630 of the 1976 Code are amended to read:

"Section 11-9-610.    The State Budget and Control Board South Carolina Department of Administration shall receive and manage the incomes and revenues set apart and applied to the Sinking Fund of the State. The department must report annually on the financial status of the Sinking Fund to the Budget and Control Board.

Section 11-9-620.    All moneys monies arising from the redemption of lands, leases, and sales of property or otherwise coming to the State Budget and Control Board South Carolina Department of Administration for the Sinking Fund, shall must be paid into the State Treasury and shall be kept on a separate account by the treasurer as a fund to be drawn upon the warrants of the Board department for the exclusive uses and purposes which have been or shall be declared in relation to the Sinking Fund.

Section 11-9-630.    The Subject to the approval of the State Budget and Control Board, the South Carolina Department of Administration shall sell and convey, for and on behalf of the State, all such real property, assets and effects belonging to the State as are not in actual public use, such sales to be made from time to time in such manner and upon such terms as it may deem most advantageous to the State. This shall not be construed to authorize the sale by the Board department of any property held in trust for a specific purpose by the State or the property of the State in the phosphate rocks or phosphatic deposits in the beds of the navigable streams and waters and marshes of the State."

V.        Sections 11-35-3810 and 11-35-3830, as amended by Act 153 of 1997, and Sections 11-35-3820 and 11-35-3840, as amended by Act 376 of 2006, of the 1976 Code are further amended to read:

"Section 11-35-3810.     Subject to existing provisions of law, the board Department of Administration shall promulgate regulations governing:

(1)    the sale, lease, or disposal of surplus supplies by public auction, competitive sealed bidding, or other appropriate methods designated by such regulations;

(2)    the transfer of excess supplies between agencies and departments.

Section 11-35-3820.    Except as provided in Section 11-35-1580 and Section 11-35-3830 and the regulations pursuant to them, the sale of all state-owned supplies, or personal property not in actual public use must be conducted and directed by the designated board office Division of General Services of the South Carolina Department of Administration. The sales must be held at such places and in a manner as in the judgment of the designated board office Division of General Services is most advantageous to the State. Unless otherwise determined, sales must be by either public auction or competitive sealed bid to the highest bidder. Each governmental body shall inventory and report to the designated board office division all surplus personal property not in actual public use held by that governmental body for sale. The designated board office division shall deposit the proceeds from the sales, less expense of the sales, in the state general fund or as otherwise directed by regulation. This policy and procedure applies to all governmental bodies unless exempt by law.

Section 11-35-3830    (1)    Trade-in Value. Unless otherwise provided by law, governmental bodies may trade-in personal property, the trade-in value of which may be applied to the procurement or lease of like items. The trade-in trade in value of such personal property shall not exceed an amount as specified in regulations promulgated by the board Department of Administration.

(2)    Approval of Trade-in Sales. When the trade-in value of personal property of a governmental body exceeds the specified amount, the board Department of Administration shall have the authority to determine whether:

(a)    the subject personal property shall be traded in and the value applied to the purchase of new like items; or

(b)    the property shall be classified as surplus and sold in accordance with the provisions of Section 11-35-3820. The board departmental determination shall be in writing and be subject to the provisions of this chapter.

(3)    Record of Trade-in Sales. Governmental bodies shall submit quarterly to the materials management officer a record listing all trade-in sales made under subsections (1) and (2) of this section.

Section 11-35-3840.    The State Budget and Control Board may license for public sale publications, including South Carolina Business Opportunities, materials pertaining to training programs, and information technology products that are developed during the normal course of the board's activities. The items must be licensed at reasonable costs established in accordance with the cost of the items. All proceeds from the sale of the publications and materials must be placed in a revenue account and expended for the cost of providing the services."

W.    Section 13-7-30 of the 1976 Code, as last amended by Act 357 of 2000, is further amended to read:

"Section 13-7-30.    For purposes of this article, the State Budget and Control Board, upon consultation with the South Carolina Department of Administration, hereinafter in this section referred to as the board, is designated as the agency of the State which shall have the following powers and duties that are in accord with its already established responsibilities for custody of state properties, and for the management of all state sinking funds, insurance, and analogous fiscal matters that are relevant to state properties:

(1)    expend state funds in order to acquire, develop, and operate land and facilities. This acquisition may be by lease, dedication, purchase, or other arrangements. However, the state's functions under the authority of this section are limited to the specific purposes of this article;

(2)    lease, sublease, or sell real and personal properties to public or private bodies;

(3)    assure the maintenance of insurance coverage by state licensees, lessees, or sublessees as will in the opinion of the board protect the citizens of the State against nuclear incident that may occur on state-controlled atomic energy facilities;

(4)    assume responsibility for extended custody and maintenance of radioactive materials held for custodial purposes at any publicly or privately operated facility located within the State, in the event the parties operating these facilities abandon their responsibility, or when the license for the facility is ultimately transferred to an agency of the State, and whenever the federal government or any agency of the federal government has not assumed the responsibility.

In order to finance such extended custody and maintenance as the board may undertake, the board may collect fees from private or public parties holding radioactive materials for custodial purposes. These fees must be sufficient in each individual case to defray the estimated cost of the board custodial management activities for that individual case. The fees collected for such custodial management activities shall also be sufficient to provide additional funds for the purchase of insurance which shall be purchased for the protection of the State and the general public for the period such radioactive material considering its isotope and curie content together with other factors may present a possible danger to the general public in the event of migration or dispersal of such radioactivity. All such fees, when received by the board, must be transmitted to the State Treasurer. The Treasurer must place the money in a special account, in the nature of a revolving trust fund, which may be designated 'extended care maintenance fund', to be disbursed on authorization of the board. Monies in the extended care maintenance funds must be invested by the board in the manner as other state monies. However, any interest accruing as a result of investment must accrue to this extended care maintenance fund. Except as authorized in Section 48-46-40(B)(7)(b) and (D)(2), the extended care maintenance fund must be used exclusively for custodial, surveillance, and maintenance costs during the period of institutional control and during any post-closure and observation period specified by the Department of Health and Environmental Control, and for activities associated with closure of the site. Funds from the extended care maintenance fund shall not be used for site closure activities or for custodial, surveillance, and maintenance performed during the post-closure observation period until all funds in the decommissioning trust account are exhausted.

(5)    Enter into an agreement with the federal government or any of its authorized agencies to assume extended maintenance of lands donated, leased, or purchased from the federal government or any of its authorized agencies and used for development of atomic energy resources or as custodial site for radioactive material."

X.        Section 13-7-830 of the 1976 Code, as last amended by Act 357 of 2000, is further amended to read:

"Section 13-7-830.    The recommendations described in Section 13-7-620 shall be made available to the General Assembly, the Governor, and the Budget and Control Board, South Carolina Department of Administration."

Y.        Section 44-53-530 of the 1976 Code is amended to read:

"Section 44-53-530.    (a)    Forfeiture of property defined in Section 44-53-520 must be accomplished by petition of the Attorney General or his designee or the circuit solicitor or his designee to the court of common pleas for the jurisdiction where the items were seized. The petition must be submitted to the court within a reasonable time period following seizure and shall set forth the facts upon which the seizure was made. The petition shall describe the property and include the names of all owners of record and lienholders of record. The petition shall identify any other persons known to the petitioner to have interests in the property. Petitions for the forfeiture of conveyances shall also include: the make, model, and year of the conveyance, the person in whose name the conveyance is registered, and the person who holds the title to the conveyance. The petition shall set forth the type and quantity of the controlled substance involved. A copy of the petition must be sent to each law enforcement agency which has notified the petitioner of its involvement in effecting the seizure. Notice of hearing or rule to show cause must be directed to all persons with interests in the property listed in the petition, including law enforcement agencies which have notified the petitioner of their involvement in effecting the seizure. Owners of record and lienholders of record may be served by certified mail, to the last known address as appears in the records of the governmental agency which records the title or lien.

The judge shall determine whether the property is subject to forfeiture and order the forfeiture confirmed. If the judge finds a forfeiture, he shall then determine the lienholder's interest as provided in this article. The judge shall determine whether any property must be returned to a law enforcement agency pursuant to Section 44-53-582.

If there is a dispute as to the division allocation of the proceeds of forfeited property among participating law enforcement agencies, this issue must be determined by the judge. The proceeds from a sale of property, conveyances, and equipment must be disposed of pursuant to subsection (e) of this section.

All property, conveyances, and equipment which will not be reduced to proceeds may be transferred to the law enforcement agency or agencies or to the prosecution agency. Upon agreement of the law enforcement agency or agencies and the prosecution agency, conveyances and equipment may be transferred to any other appropriate agency. Property transferred must not be used to supplant operating funds within the current or future budgets. If the property seized and forfeited is an aircraft or watercraft and is transferred to a state law enforcement agency or other state agency pursuant to the provisions of this subsection, its use and retainage by that agency shall be at the discretion and approval of the Budget and Control Board South Carolina Department of Administration.

(b)    If the property is seized by a state law enforcement agency and is not transferred by the court to the seizing agency, the judge shall order it transferred to the Division of General Services of the Department of Administration for sale. Proceeds may be used by the division for payment of all proper expenses of the proceedings for the forfeiture and sale of the property, including the expenses of seizure, maintenance, and custody, and other costs incurred by the implementation of this section. The net proceeds from any sale must be remitted to the State Treasurer as provided in subsection (g) of this section. The Division of General Services of the South Carolina Department of Administration may authorize payment of like expenses in cases where monies, negotiable instruments, or securities are seized and forfeited."

Z.        Section 44-96-140 of the 1976 Code is amended to read:

"Section 44-96-140.    (A)    Not later than twelve months after the date on which the department submits the state solid waste management plan to the Governor and to the General Assembly, the General Assembly, the Governor's Office of the Governor, the Judiciary, each state agency, and each state-supported institution of higher education shall:

(1)    establish a source separation and recycling program in cooperation with the department and the Division of General Services of the State Budget and Control Board South Carolina Department of Administration for the collection of selected recyclable materials generated in state offices throughout the State including, but not limited to, high-grade office paper, corrugated paper, aluminum, glass, tires, composting materials, plastics, batteries, and used oil;

(2)    provide procedures for collecting and storing recyclable materials, containers for storing materials, and contractual or other arrangements with collectors or buyers of the recyclable materials, or both;

(3)    evaluate the amount of waste paper material recycled and make all necessary modifications to the recycling program to ensure that all waste paper materials are recycled to the maximum extent feasible; and

(4)    establish and implement, in cooperation with the department and the Division of General Services of the Department of Administration, a solid waste reduction program for materials used in the course of agency operations. The program shall be designed and implemented to achieve the maximum feasible reduction of solid waste generated as a result of agency operations.

(B)    Not later than September fifteen of each year, each state agency and each state-supported institution of higher learning shall submit to the department a report detailing its source separation and recycling program and a review of all goods and products purchased during the previous fiscal year by those agencies and institutions containing recycled materials using the content specifications established by the Office of Materials Management Division of General Services, Department of Administration.

(C)    By November first of each year the department shall submit a report to the Governor and to the General Assembly reviewing all goods and products purchased by the State and determining what percentage of state purchases contain recycled materials using content specifications established by the Office of Materials Management, Division of General Services, Department of Administration. The report also must review existing procurement regulations for the purchase of products and materials and must identify any portions of such regulations that discriminate against products and materials with recycled content and products and materials which are recyclable.

(D)    Not later than one year after this chapter is effective, the Division of General Services, Department of Administration shall amend the procurement regulations to eliminate the portions of the regulations identified in its report as discriminating against products and materials with recycled content and products and materials which are recyclable.

(E)    Not later than one year after the effective date of the amendments to the procurement regulations, the General Assembly, the Governor's Office of the Governor, the Judiciary, all state agencies, all political subdivisions using state funds to procure items, and all persons contracting with such agency or political subdivision where such persons procure items with state funds shall procure products and materials with recycled content and products and materials which are recyclable where practicable, as determined by the Office of Materials Management, Division of General Services, Department of Administration. The list of recycled content specifications must be updated annually. It is the goal of the General Assembly for state and local governmental agencies to reflect a twenty-five percent goal in their procurement policies. The decision not to procure such items shall be based on a determination that such procurement items:

(1)    are not available within a reasonable period of time;

(2)    fail to meet the performance standards set forth in the applicable specifications; or

(3)    are only available at a price that exceeds by more than seven and one- half percent the price of alternative items.

(F)    Not later than six months after this chapter is effective, and annually thereafter, the Department of Transportation shall submit a report to the Governor and to the General Assembly on the use of:

(1)    compost as a substitute for regular soil amendment products in all highway projects;

(2)    solid waste including, but not limited to, ground rubber from tires and fly ash or mixtures of them from coal-fired electrical facilities in road surfacing of subbase materials;

(3)    solid waste including, but not limited to, glass aggregate, plastic, and fly ash in asphalt or concrete; and

(4)    recycled mixed-plastic materials for guardrail posts, right-of-way Previousfence posts, and sign supports."

AA.    Section 48-46-30(4) of the 1976 Code, as added by Act 357 of 2000, is amended to read:

"(4)    'Board' means the South Carolina Budget and Control Board or its designated official, and 'Department' means the South Carolina Department of Administration or its designee."

BB.    Section 48-46-40 of the 1976 Code, as last amended by Act 318 of 2006, is further amended to read:

"Section 48-46-40.    (A)(1)    The board, upon consultation with the Department of Administration, shall approve disposal rates for low-level radioactive waste disposed at any regional disposal facility located within the State. The approval of disposal rates pursuant to this chapter is neither a regulation nor the promulgation of a regulation as those terms are specially used in Title 1, Chapter 23.

(2)    The board shall adopt a maximum uniform rate schedule for regional generators containing disposal rates that include the administrative surcharges specified in Section 48-46-60(B) and surcharges for the extended custody and maintenance of the facility pursuant to Section 13-7-30(4) and that do not exceed the approximate disposal rates, excluding any access fees and including a specification of the methodology for calculating fees for large components, generally applicable to regional generators on September 7, 1999. Any disposal rates contained in a valid written agreement that were applicable to a regional generator on September 7, 1999, that differ from rates in the maximum uniform rate schedule will continue to be honored through the term of such agreement. The maximum uniform rate schedule approved under this section becomes effective immediately upon South Carolina's membership in the Atlantic Compact. The maximum uniform rate schedule shall be the rate schedule applicable to regional waste whenever it is not superseded by an adjusted rate approved by the board pursuant to paragraph (3) of this subsection or by special disposal rates approved pursuant to paragraphs (5) or (6)(e) of this subsection.

(3)    The board may at any time of its own initiative, at the request of a site operator, or at the request of the compact commission, adjust the disposal rate or the relative proportions of the individual components that constitute the overall rate schedule. Except as adjusted for inflation in subsection (4), rates adjusted in accordance with this section, that include the administrative surcharges specified in Section 48-46-60(B) and surcharges for the extended custody and maintenance of the facility pursuant to Section 13-7-30(4), may shall not exceed initial disposal rates set by the board, upon consultation with the department pursuant to subsection (2).

(4)    In March of each year the board shall adjust the rate schedule based on the most recent changes in the most nearly applicable Producer Price Index published by the Bureau of Labor Statistics as chosen by the board or a successor index.

(5)    In consultation with the site operator and the department, the board or its designee, on a case-by-case basis, may approve special disposal rates for regional waste that differ from the disposal rate schedule for regional generators set by the board pursuant to subsections (2) and (3). Requests by the site operator for such approval shall be in writing to the board. In approving such special rates, the board or its designee, shall consider available disposal capacity, demand for disposal capacity, the characteristics of the waste, the potential for generating revenue for the State, or other relevant factors; provided, however, that the board shall not approve any special rate for an entity owned by or affiliated with the site operator. Special disposal rates approved by the board under this subsection shall be in writing and shall be kept confidential as proprietary business information for one year from the date when the bid or the request for proposal containing the special rate is accepted by the regional generator; provided, however, that such special rates when accepted by a regional generator shall be disclosed to the compact commission and to all other regional generators, which shall, to the extent permitted by applicable law, keep them confidential as proprietary business information for one year from the date when the bid or request for proposal containing this special rate is accepted by the regional generator. Within one business day of a special disposal rate's acceptance, the site operator shall notify the board, the department, the compact commission, and the regional generators of each special rate that has been accepted by a regional generator, and the board, department, the compact commission, and regional generators may communicate with each other about such special rates. If any special rate approved by the board for a regional generator is lower than a disposal rate approved by the board for regional generators pursuant to subsections (2) and (3) for waste that is generally similar in characteristics and volume, the disposal rate for all regional generators shall be revised to equal the special rate for the regional generator. Regional generators may enter into contracts for waste disposal at such special rates and on comparable terms for a period of not less than six months. An officer of the site operator shall certify in writing to the board and the compact commission each month that no regional generator's disposal rate exceeds any other regional generator's special rate for waste that is generally similar in characteristics and volume, and such certification shall be subject to periodic audit by the board and the compact commission.

(6)(a)    To the extent authorized by the compact commission, the board, upon consultation with the Department of Administration and on behalf of the State of South Carolina, may enter into agreements with any person in the United States or its territories or any interstate compact, state, U.S. territory, or U.S. Department of Defense military installation abroad for the importation of waste into the region for purposes of disposal at a regional disposal facility within South Carolina. No waste from outside the Atlantic Compact region may be disposed at a regional disposal facility within South Carolina, except to the extent that the board is authorized by the compact commission to enter into agreements for importation of waste.

The board shall authorize the importation of nonregional waste into the region for purposes of disposal at the regional disposal facility in South Carolina so long as nonregional waste would not result in the facility accepting more than the following total volumes of all waste:

(i)            160,000 cubic feet in fiscal year 2001;

(ii)        80,000 cubic feet in fiscal year 2002;

(iii)        70,000 cubic feet in fiscal year 2003;

(iv)        60,000 cubic feet in fiscal year 2004;

(v)        50,000 cubic feet in fiscal year 2005;

(vi)        45,000 cubic feet in fiscal year 2006;

(vii)        40,000 cubic feet in fiscal year 2007;

(viii)    35,000 cubic feet in fiscal year 2008.

After fiscal year 2008, the board shall not authorize the importation of nonregional waste for purposes of disposal.

(b)    The board, in consultation with the department may approve disposal rates applicable to nonregional generators. In approving disposal rates applicable to nonregional generators, the board, in consultation with the department may consider available disposal capacity, demand for disposal capacity, the characteristics of the waste, the potential for generating revenue for the State, and other relevant factors.

(c)    Absent action by the board under subsection (b) above to establish disposal rates for nonregional generators, rates applicable to these generators must be equal to those contained in the maximum uniform rate schedule approved by the board pursuant to paragraph (2) or (3) of this subsection for regional generators unless these rates are superseded by special disposal rates approved by the board pursuant to paragraph (6)(e) of this subsection.

(d)    Regional generators shall not pay disposal rates that are higher than disposal rates for nonregional generators in any fiscal quarter.

(e)    In consultation with the site operator and the Department of Administration, the board or its designee, on a case-by-case basis, may approve special disposal rates for nonregional waste that differ from the disposal rate schedule for nonregional generators set by the board. Requests by the site operator for such approval shall be in writing to the board. In approving such special rates, the board or its designee shall consider available disposal capacity, demand for disposal capacity, the characteristics of the waste, the potential for generating revenue for the State, and other relevant factors; provided, however, that the board shall not approve any special rate for an entity owned by or affiliated with the site operator. Special disposal rates approved by the board under this subsection shall be in writing and shall be kept confidential as proprietary business information for one year from the date when the bid or request for proposal containing the special rate is accepted by the nonregional generator; provided, however, that such special rates when accepted by a nonregional generator shall be disclosed to the compact commission and to all regional generators, which shall, to the extent permitted by applicable law, keep them confidential as proprietary business information for one year from the date when the bid or request for proposal containing the special rate is accepted by the nonregional generator. Within one business day of a special disposal rate's acceptance, the site operator shall notify the board department, the compact commission, and the regional generators in writing of each special rate that has been accepted by a nonregional generator, and the board, department, the compact commission, and regional generators may communicate with each other about such special rates. If any special rate approved by the board for a nonregional generator is lower than a disposal rate approved by the board for regional generators for waste that is generally similar in characteristics and volume, the disposal rate for all regional generators shall be revised to equal the special rate for the nonregional generator. Regional generators may enter into contracts for waste disposal at such special rate and on comparable terms for a period of not less than six months. An officer of the site operator shall certify in writing to the board, department and the compact commission each month that no regional generator disposal rate exceeds any nonregional generator's special rate for waste that is generally similar in characteristics and volume, and such certification shall be subject to periodic audit by the board, department and the compact commission.

(B)(1)    Effective upon the implementation of initial disposal rates by the board under Section 48-46-40(A), the PSC is authorized and directed to identify allowable costs for operating a regional low-level radioactive waste disposal facility in South Carolina.

(2)    In identifying the allowable costs for operating a regional disposal facility, the PSC shall:

(a)    prescribe a system of accounts, using generally accepted accounting principles, for disposal site operators, using as a starting point the existing system used by site operators;

(b)    assess penalties against disposal site operators if the PSC determines that they have failed to comply with regulations pursuant to this section; and

(c)    require periodic reports from site operators that provide information and data to the PSC and parties to these proceedings. The Office of Regulatory Staff shall obtain and audit the books and records of the site operators associated with disposal operations as determined applicable by the PSC.

(3)    Allowable costs include the costs of those activities necessary for:

(a)    the receipt of waste;

(b)    the construction of disposal trenches, vaults, and overpacks;

(c)    construction and maintenance of necessary physical facilities;

(d)    the purchase or amortization of necessary equipment;

(e)    purchase of supplies that are consumed in support of waste disposal activities;

(f)    accounting and billing for waste disposal;

(g)    creating and maintaining records related to disposed waste;

(h)    the administrative costs directly associated with disposal operations including, but not limited to, salaries, wages, and employee benefits;

(i)        site surveillance and maintenance required by the State of South Carolina, other than site surveillance and maintenance costs covered by the balance of funds in the decommissioning trust fund or the extended care maintenance fund;

(j)        compliance with the license, lease, and regulatory requirements of all jurisdictional agencies;

(k)    administrative costs associated with collecting the surcharges provided for in subsections (B) and (C) of Section 48-46-60;

(l)        taxes other than income taxes;

(m)    licensing and permitting fees; and

(n)    any other costs directly associated with disposal operations determined by the PSC to be allowable.

Allowable costs do not include the costs of activities associated with lobbying and public relations, clean-up and remediation activities caused by errors or accidents in violation of laws, regulations, or violations of the facility operating license or permits, activities of the site operator not directly in support of waste disposal, and other costs determined by the PSC to be unallowable.

(4)    Within ninety days following the end of a fiscal year, a site operator may file an application with the PSC to adjust the level of an allowable cost under subsection (3), or to allow a cost not previously designated an allowable cost. A copy of the application must be provided to the Office of Regulatory Staff. The PSC shall process such application in accordance with its procedures. If such application is approved by the PSC, the PSC shall authorize the site operator to adjust allowable costs for the current fiscal year so as to compensate the site operator for revenues lost during the previous fiscal year.

(5)    A private operator of a regional disposal facility in South Carolina is authorized to charge an operating margin of twenty-nine percent. The operating margin for a given period must be determined by multiplying twenty-nine percent by the total amount of allowable costs as determined in this subsection, excluding allowable costs for taxes and licensing and permitting fees paid to governmental entities.

(6)    The site operator shall prepare and file with the PSC a Least Cost Operating Plan. The plan must be filed within forty-five days of enactment of this chapter and must be revised annually. The plan shall include information concerning anticipated operations over the next ten years and shall evaluate all options for future staffing and operation of the site to ensure least cost operation, including information related to the possible interim suspension of operations in accordance with subsection (B)(7). A copy of the plan must be provided to the Office of Regulatory Staff.

(7)(a)    If the board, upon consultation with the Department of Administration and upon the advice of the compact commission or the site operator, concludes based on information provided to the board department, that the volume of waste to be disposed during a forthcoming period of time does not appear sufficient to generate receipts that will be adequate to reimburse the site operator for its costs of operating the facility and its operating margin, then the board department shall direct the site operator to propose to the compact commission plans including, but not necessarily limited to, a proposal for discontinuing acceptance of waste until such time as there is sufficient waste to cover the site operator's operating costs and operating margin. Any proposal to suspend operations must detail plans of the site operator to minimize its costs during the suspension of operations. Any such proposal to suspend operations must be approved by the Department of Health and Environmental Control with respect to safety and environmental protection.

(b)    Allowable costs applicable to any period of suspended operations must be approved by the PSC according to procedures similar to those provided herein for allowable operating costs. During any such suspension of operations, the site operator must be reimbursed by the board department from the extended care maintenance fund for its allowable costs and its operating margin. During the suspension funding to reimburse the board department, the PSC, and the State Treasurer under Section 48-46-60(B) and funding of the compact commission under Section 48-46-60(C) must also be allocated from the extended care maintenance fund as approved by the board department based on revised budgets submitted by the PSC, State Treasurer, and the compact commission.

(c)    Notwithstanding any disbursements from the extended care maintenance fund in accordance with any provision of this act, the board department shall continue to ensure, in accordance with Section 13-7-30, that the fund remains adequate to defray the costs for future maintenance costs or custodial and maintenance obligations of the site and other obligations imposed on the fund by this chapter.

(d)    The PSC may promulgate regulations and policies necessary to execute the provisions of this section.

(8)    The PSC may use any standard, formula, method, or theory of valuation reasonably calculated to arrive at the objective of identifying allowable costs associated with waste disposal. The PSC may consider standards, precedents, findings, and decisions in other jurisdictions that regulate allowable costs for radioactive waste disposal.

(9)    In all proceedings held pursuant to this section, the board shall participate as a party representing the interests of the State of South Carolina, and the compact commission may participate as a party representing the interests of the compact states. The Executive Director of the Office of Regulatory Staff and the Attorney General of the State of South Carolina shall be parties to any such proceeding. Representatives from the Department of Health and Environmental Control shall participate in proceedings where necessary to determine or define the activities that a site operator must conduct in order to comply with the regulations and license conditions imposed by the department. Other parties may participate in the PSC's proceedings upon satisfaction of standing requirements and compliance with the PSC's procedures. Any site operator submitting records and information to the PSC may request that the PSC treat such records and information as confidential and not subject to disclosure in accordance with the PSC's procedures.

(10)    In all respects in which the PSC has power and authority under this chapter, it shall conduct its proceedings under the South Carolina Administrative Procedures Act and the PSC's rules and regulations. The PSC is authorized to compel attendance and testimony of a site operator's directors, officers, agents, or employees.

(11)    At any time the compact commission, the board, or any generator subject to payment of rates set pursuant to this chapter may file a petition against a site operator alleging that allowable costs identified pursuant to this chapter are not in conformity with the directives of this chapter or the directives of the PSC or that the site operator is otherwise not acting in conformity with the requirements of this chapter or directives of the PSC. Upon filing of the petition, the PSC shall cause a copy of the petition to be served upon the site operator. The petitioning party has the burden of proving that allowable costs or the actions of the site operator do not conform. The hearing shall conform to the rules of practice and procedure of the PSC for other cases.

(12)    The PSC shall encourage alternate forms of dispute resolution including, but not limited to, mediation or arbitration to resolve disputes between a site operator and any other person regarding matters covered by this chapter.

(C)    The operator of a regional disposal facility shall submit to the South Carolina Department of Revenue, the PSC, the Office of Regulatory Staff, and the board within thirty days following the end of each quarter a report detailing actual revenues received in the previous fiscal quarter and allowable costs incurred for operation of the disposal facility.

(D)(1)    Within 30 days following the end of the fiscal year the operator of a regional disposal facility shall submit a payment made payable to the South Carolina Department of Revenue in an amount that is equal to the total revenues received for waste disposed in that fiscal year (with interest accrued on cash flows in accordance with instructions from the State Treasurer) minus allowable costs, operating margin, and any payments already made from such revenues pursuant to Section 48-46-60(B) and (C) for reimbursement of administrative costs to state agencies and the compact commission. The Department of Revenue shall deposit the payment with the State Treasurer.

(2)    If in any fiscal year total revenues do not cover allowable costs plus the operating margin, the board department must reimburse the site operator its allowable costs and operating margin from the extended care maintenance fund within thirty days after the end of the fiscal year. The board, in consultation with the department shall as soon as practicable authorize a surcharge on waste disposed in an amount that will fully compensate the fund for the reimbursement to the site operator. In the event that total revenues for a fiscal year do not cover allowable costs plus the operating margin, or quarterly reports submitted pursuant to subsection (C) indicate that such annual revenue may be insufficient, the board department shall consult with the compact commission and the site operator as early as practicable on whether the provisions of Section 48-46-40(B)(7) pertaining to suspension of operations during periods of insufficient revenues should be invoked.

(E)    Revenues received pursuant to item (1) of subsection (D) must be allocated as follows:

(1)    The South Carolina State Treasurer shall distribute the first two million dollars received for waste disposed during a fiscal year to the County Treasurer of Barnwell County for distribution to each of the parties to and beneficiaries of the order of the United States District Court in C.A. No. 1:90-2912-6 on the same schedule of allocation as is established within that order for the distribution of 'payments in lieu of taxes' paid by the United States Department of Energy.

(2)    All revenues in excess of two million dollars received from waste disposed during the previous fiscal year must be deposited in a fund called the 'Nuclear Waste Disposal Receipts Distribution Fund'. Any South Carolina waste generator whose disposal fees contributed to the fund during the previous fiscal year may submit a request for a rebate of 33.33 percent of the funds paid by the generator during the previous fiscal year for disposal of waste at a regional disposal facility. These requests along with invoices or other supporting material must be submitted in writing to the State Treasurer within fifteen days of the end of the fiscal year. For this purpose disposal fees paid by the generator must exclude any fees paid pursuant to Section 48-46-60(C) for compact administration and fees paid pursuant to Section 48-46-60(B) for reimbursement of the PSC, the Office of Regulatory Staff, the State Treasurer, and the board for administrative expenses under this chapter. Upon validation of the request and supporting documentation by the State Treasurer, the State Treasurer shall issue a rebate of the applicable funds to qualified waste generators within sixty days of the receipt of the request. If funds in the Nuclear Waste Disposal Receipts Distribution Fund are insufficient to provide a rebate of 33.33 percent to each generator, then each generator's rebate must be reduced in proportion to the amount of funds in the account for the applicable fiscal year.

(3)    All funds deposited in the Nuclear Waste Disposal Receipts Distribution Fund for waste disposed for each fiscal year, less the amount needed to provide generators rebates pursuant to item (2), shall be deposited by the State Treasurer in the 'Children's Education Endowment Fund'. Thirty percent of these monies must be allocated to Higher Education Scholarship Grants and used as provided in Section 59-143-30, and seventy percent of these monies must be allocated to Public School Facility Assistance and used as provided in Chapter 144 of Title 59.

(F)    Effective beginning fiscal year 2001-2002, there is appropriated annually from the general fund of the State to the Higher Education Scholarship Grants share of the Children's Education Endowment whatever amount is necessary to credit to the Higher Education Scholarship Grants share an amount not less than the amount credited to that portion of the endowment in fiscal year 1999-2000. Revenues credited to the endowment pursuant to this subsection, for purposes of Section 59-143-10, are deemed to be received by the endowment pursuant to the former provisions of Section 48-48-140(C)."

CC.    Section 48-46-50(A) of the 1976 Code, as added by Act 357 of 2000, is amended to read:

"(A)    The Governor shall appoint two commissioners to the Atlantic Compact Commission and may appoint up to two alternate commissioners. These alternate commissioners may participate in meetings of the compact commission in lieu of and upon the request of a South Carolina commissioner. Technical representatives from the Department of Health and Environmental Control, the board, the Department of Administration, the PSC, and other state agencies may participate in relevant portions of meetings of the compact commission upon the request of a commissioner, alternate commissioner, or staff of the compact commission, or as called for in the compact commission bylaws."

DD.    Section 48-46-60 of the 1976 Code, as added by Act 357 of 2000, is amended to read:

"Section 48-46-60.    (A)    The Governor and the board are authorized to take such actions as are necessary to join the Atlantic Compact including, but not limited to, petitioning the Compact Commission for membership and participating in any and all rulemaking processes. South Carolina's membership in the Atlantic Compact pursuant to this chapter is effective July 1, 2000, if by that date the Governor certifies to the General Assembly that the Compact Commission has taken each of the actions specified below. If the Compact Commission by July 1, 2000, has not taken each of the actions specified below, then South Carolina's membership shall become effective as soon thereafter as the Governor certifies that the Atlantic Compact Commission has taken these actions:

(1)    adopted a binding regulation or policy in accordance with Article VII(e) of the compact establishing conditions for admission of a party state that are consistent with this act and ordered that South Carolina be declared eligible to be a party state consistent with those conditions;

(2)    adopted a binding regulation or policy in accordance with Article IV(i)(11) of the Atlantic Compact authorizing a host state to enter into agreements on behalf of the compact and consistent with criteria established by the compact commission and consistent with the provisions of Section 48-46-40(A)(6)(a) and Section 48-46-50(D) with any person for the importation of waste into the region for purposes of disposal, to the extent that these agreements do not preclude the disposal facility from accepting all regional waste that can reasonably be projected to require disposal at the regional disposal facility consistent with subitem (5)(b) of this section;

(3)    adopted a binding regulation or policy in accordance with Article IV(i)(12) of the Atlantic Compact authorizing each regional generator, at the generator's discretion, to ship waste to disposal facilities located outside the Atlantic Compact region;

(4)    authorized South Carolina to proceed with plans to establish disposal rates for low-level radioactive waste disposal in a manner consistent with the procedures described in this chapter;

(5)    adopted a binding regulation, policy, or order officially designating South Carolina as a volunteer host state for the region's disposal facility, contingent upon South Carolina's membership in the compact, in accordance with Article V.b.1. of the Atlantic Compact, thereby authorizing the following compensation and incentives to South Carolina:

(a)    agreement, as evidenced in a policy, regulation, or order that the compact commission will issue a payment of twelve million dollars to the State of South Carolina. Before issuing the twelve million-dollar payment, the compact commission will deduct and retain from this amount seventy thousand dollars, which will be credited as full payment of South Carolina's membership dues in the Atlantic Compact. The remainder of the twelve million-dollar payment must be credited to an account in the State Treasurer's office, separate and distinct from the fund, styled 'Barnwell Economic Development Fund'. This fund, and earnings on this fund which must be credited to the fund, may only be expended for purposes of economic development in the Barnwell County area including, but not limited to, projects of the Barnwell County Economic Development Corporation and projects of the Tri-County alliance which includes Barnwell, Bamberg, and Allendale Counties and projects in the Williston area of Aiken County. Economic development includes, but is not limited to, industrial recruitment, infrastructure construction, improvement, and expansion, and public facilities construction, improvement, and expansion. These funds must be spent according to guidelines established by the Barnwell County governing body and upon approval of the board, upon consultation with the department. Expenditures must be authorized by the Barnwell County governing body and with the approval of the board, upon consultation with the department. Upon approval of the Barnwell County governing body and the board department, the State Treasurer shall submit the approved funds to the Barnwell County Treasurer for disbursement pursuant to the authorization;

(b)    adopted a binding regulation, policy, or order consistent with the regional management plan developed pursuant to Article V(a) of the Atlantic Compact, limiting Connecticut and New Jersey to the use of not more than 800,000 cubic feet of disposal capacity at the regional disposal facility located in Barnwell County, South Carolina, and also ensuring that up to 800,000 cubic feet of disposal capacity remains available for use by Connecticut and New Jersey unless this estimate of need is later revised downward by unanimous consent of the compact commission;

(c)    agreement, as evidenced in a policy or regulation, that the compact commission headquarters and office will be relocated to South Carolina within six months of South Carolina's membership; and

(d)    agreement, as evidenced in a policy or regulation, that the compact commission will, to the extent practicable, hold a majority of its meetings in the host state for the regional disposal facility.

(B)    The board, the Department of Administration, the State Treasurer, and the PSC shall provide the required staff and may add additional permanent or temporary staff or contract for services, as well as provide for operating expenses, if necessary, to administer new responsibilities assigned under this chapter. In accordance with Article V.f.2. of the Atlantic Compact the compensation, costs, and expenses incurred incident to administering these responsibilities may be paid through a surcharge on waste disposed at regional disposal facilities within the State. To cover these costs the board shall impose a surcharge per unit of waste received at any regional disposal facility located within the State. A site operator shall collect and remit these fees to the board in accordance with the board's directions. All such surcharges shall be included within the disposal rates set by the board pursuant to Section 48-46-40.

(C)    In accordance with Article V.f.3. of the Atlantic Compact, the compact commission shall advise the board department at least annually, but more frequently if the compact commission deems appropriate, of the compact commission's costs and expenses. To cover these costs the board department shall impose a surcharge per unit of waste received at any regional disposal facility located within the State as determined in Section 48-46-40. A site operator shall collect and remit these fees to the board department in accordance with the board department's directions, and the board department shall remit those fees to the compact commission."

EE.    Section 48-46-90(A) of the 1976 Code, as added by Act 357 of 2000, is amended to read:

"(A)    In accordance with Section 13-7-30, the board department, or its designee, is responsible for extended custody and maintenance of the Barnwell site following closure and license transfer from the facility operator. The Department of Health and Environmental Control is responsible for continued site monitoring."

FF.    Section 48-52-410 of the 1976 Code is amended to read:

"Section 48-52-410.    There is established the State Energy Office within the State Budget and Control Board Department of Administration which shall serve as the principal energy planning entity for the State. Its primary purpose is to develop and implement a well-balanced energy strategy and to increase the efficiency of use of all energy sources throughout South Carolina through the implementation of the Plan for State Energy Policy. The State Energy Office must not function as a regulatory body."

GG.    Section 48-52-440 of the 1976 Code is amended to read:

"Section 48-52-440.    (A)    There is established the Energy Advisory Committee, whose members are shall be appointed by the State Budget and Control Board Director of the Department of Administration, except as provided in item (14) of this section. Members shall serve at the pleasure of the State Budget and Control Board director except that those appointed pursuant to item (14) shall serve for a term coterminous with that of their appointing authority. The committee is composed as follows:

(1)    two representatives of investor-owned electricity companies;

(2)    two representatives of electric cooperatives;

(3)    one representative of the South Carolina Public Service Authority, who shall serve ex officio;

(4)    one representative of municipally-owned electric utilities;

(5)    one representative of publicly-owned natural gas companies;

(6)    one representative of investor-owned gas companies;

(7)    one representative of oil suppliers or dealers;

(8)    one representative of propane suppliers or dealers;

(9)    one representative of nonprofit public transportation providers;

(10)    two representatives of industrial consumers;

(11)    two representatives of commercial consumers;

(12)    two representatives of individual consumers; one must be the Executive Director of the Office of Regulatory Staff or his designee, who shall serve ex officio;

(13)    two representatives of environmental groups; and

(14)    one at-large member appointed by the Governor director.

The Budget and Control Board Director of the Department of Administration shall elect select one of the committee members to serve as chairman. The members of the Energy Advisory Committee are not eligible for per diem payments or for reimbursement for lodging or meals. The functions of the Energy Advisory Committee are advisory to the State Energy Office. The committee shall meet at least annually and at the call of the chair or at the request of at least six members to receive information on the activities of the State Energy Office and the formulation and implementation of the state energy action plan. It may comment and advise on the activities and the plan as considered appropriate by members of the committee. The State Energy Office may seek advice and guidance from the committee as considered appropriate by the director of the office. Members shall adopt rules governing meeting attendance and abide by these rules.

(B)    Members of the Energy Advisory Committee serving in office on July 1, 2011, shall continue to serve until their successors are appointed and qualify."

HH.    Section 48-52-460 of the 1976 Code is amended to read:

"Section 48-52-460.    The establishment of the State Energy Office within the State Budget and Control Board Department of Administration, as provided for in this part, must be evaluated if restructuring or reorganizing of state government takes place so as to identify and provide for the proper placement of the office upon restructuring or reorganizing."

Part V

Performance Audit and Effective Date

SECTION    7.    During the year 2015, the Legislative Audit Council shall conduct a performance review of the provisions of this act to determine its effectiveness and achievements with regard to the more efficient performance of the functions and duties of the various agencies provided for herein and the cost savings and benefits to the State.

SECTION    8.    Unless otherwise provided, Sections 1 through 4 and 6 through 8 take effect July 1, 2011, and expires on July 1, 2016, unless reauthorized by the General Assembly for an additional period so specified. Notwithstanding the above, Part III of this act containing Section 5 relating to the Legislative Oversight of Executive Departments takes effect July 1, 2008, and is not subject to an expiration date.

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