S 0305  General Bill, By Peeler, J.V.Smith, Short, Alexander, Hayes, Moore, 
Lourie and Knotts
 A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, TO ENACT THE "SOUTH
 CAROLINA MEDICAID MODERNIZATION ACT" INCLUDING PROVISIONS TO ADD ARTICLE 8,
 CHAPTER 6, TITLE 44 SO AS TO PROVIDE THAT THE DEPARTMENT OF HEALTH AND HUMAN
 SERVICES SHALL IMPLEMENT EFFECTIVE AND EFFICIENT MEDICAID CARE MANAGEMENT,
 INCLUDING ADMINISTERING CARE MANAGEMENT PROGRAMS FOR ROUTINE CARE AND
 IMPLEMENTING CARE MANAGEMENT PROGRAMS FOR CHRONIC DISEASE CARE; TO PROVIDE FOR
 EFFECTIVE MEDICAID PHARMACY BENEFIT MANAGEMENT, INCLUDING THE ESTABLISHMENT OF
 THE PHARMACY AND THERAPEUTICS COMMITTEE, WHICH SHALL RECOMMEND CLASSES OF
 DRUGS THAT SHOULD BE INCLUDED ON A PREFERRED DRUG LIST AND CRITERIA FOR
 IMPLEMENTATION OF A PREFERRED DRUG LIST PROGRAM; TO PROVIDE FOR EFFECTIVE
 MEDICAID STATE AGENCY SERVICE MANAGEMENT, INCLUDING PERIODIC MEETINGS OF
 DIRECTORS OF ALL STATE AGENCIES RECEIVING MEDICAID FUNDS FOR THE PURPOSE OF
 CONTROLLING THE GROWTH OF MEDICAID AND IMPROVING THE STATE MEDICAID PROGRAM
 AND TO REQUIRE THE DEPARTMENT TO REPORT TO THE GENERAL ASSEMBLY ON MEDICAID
 EXPENDITURES AND TO CONDUCT PERIODIC AUDITS AND REVIEWS OF STATE AGENCIES
 RECEIVING MEDICAID FUNDS; TO ADD SECTION 44-6-110 SO AS TO REQUIRE THE
 DEPARTMENT OF HEALTH AND HUMAN SERVICES TO, AMONG OTHER THINGS, DEVELOP
 MEDICAID ELIGIBILITY DETERMINATION CRITERIA, TO CENTRALIZE MEDICAID
 ELIGIBILITY PROCESSING,  AND TO CONDUCT AUDITS OF ELIGIBILITY FILES; TO AMEND
 SECTION 44-6-80, RELATING TO REPORTS TO THE GENERAL ASSEMBLY, SO AS TO FURTHER
 SPECIFY THE CONTENTS AND REQUIREMENTS FOR THESE REPORTS; TO AMEND ARTICLE 3,
 CHAPTER 6, TITLE 44, RELATING TO CHILD DEVELOPMENT SERVICES, SO AS TO DELETE
 THESE PROVISIONS AND TO PROVIDE FOR MEDICAID FRAUD AND ABUSE MANAGEMENT,
 INCLUDING PROVISIONS REQUIRING AUDITS, SANCTIONS, AND CONTRACTING WITH OTHER
 ENTITIES TO PREVENT MEDICAID FRAUD, ABUSE, AND WASTE; TO ADD SECTION 38-71-270
 SO AS TO REQUIRE HEALTH INSURERS TO SUBMIT NAMES AND OTHER IDENTIFYING
 INFORMATION TO THE DEPARTMENT OF INSURANCE TO BE PROVIDED TO THE DEPARTMENT OF
 HEALTH AND HUMAN SERVICES TO USE IN IDENTIFYING MEDICAID RECIPIENTS WHO HAVE
 OTHER HEALTH INSURANCE COVERAGE; TO ADD SECTION 44-6-112 SO AS TO AUTHORIZE
 THE DEPARTMENT OF HEALTH AND HUMAN SERVICES TO FUND THE NET COSTS OF ANY THIRD
 PARTY LIABILITY AND DRUG REBATE COLLECTION EFFORTS FROM THE REVENUE COLLECTED
 IN THOSE EFFORTS; TO AMEND SECTION 43-3-65, RELATING TO COUNTIES PROVIDING
 OFFICE SPACE TO THE DEPARTMENT OF SOCIAL SERVICES, SO AS TO ALSO REQUIRE
 COUNTIES TO PROVIDE SPACE FOR THE DEPARTMENT OF HEALTH AND HUMAN SERVICES
 ELIGIBILITY PROCESSING; AND TO REPEAL JOINT RESOLUTION 370 OF 2002 RELATING TO
 NURSING HOME BED FRANCHISE FEES.
View full text
   01/20/05  Senate Introduced and read first time SJ-2
   01/20/05  Senate Referred to Committee on Medical Affairs SJ-2
   02/15/05  Senate Committee report: Favorable with amendment
                     Medical Affairs SJ-9
   02/16/05         Scrivener's error corrected
   03/09/05  Senate Special order, set for  03/09/05 SJ-40
   03/10/05  Senate Amended SJ-24
   03/10/05  Senate Read second time SJ-24
   03/10/05  Senate Unanimous consent for third reading on next
                     legislative day SJ-24
   03/10/05         Scrivener's error corrected
   03/11/05  Senate Read third time and sent to House SJ-1
   03/11/05         Scrivener's error corrected
   03/14/05  House  Introduced and read first time HJ-4
   03/14/05  House  Referred to Committee on Ways and Means HJ-5
   05/11/05  House  Committee report: Favorable with amendment Ways
                     and Means HJ-17
   05/18/05  House  Debate adjourned until  Thursday, May 19, 2005 HJ-68
   05/19/05  House  Debate adjourned until  Tuesday, May 24, 2005 HJ-43
   05/24/05  House  Debate adjourned until  Wednesday, May 25, 2005 HJ-21
   05/25/05  House  Amended HJ-78
   05/25/05  House  Read second time HJ-141
   05/26/05  House  Read third time and returned to Senate with
                     amendments HJ-9
   05/31/05  Senate Non-concurrence in House amendment SJ-60
   05/31/05  House  House insists upon amendment and conference
                     committee appointed Reps.  Rice, Davenport, and
                     Kennedy HJ-135
   05/31/05  Senate Conference committee appointed  Smith, Short, and
                     Ritchie SJ-63

Indicates Matter Stricken

Indicates New Matter

AMENDED

May 25, 2005

S. 305

Introduced by Senators Peeler, J. Verne Smith, Short, Alexander, Hayes, Moore, Lourie and Knotts

S. Printed 5/25/05--H.

Read the first time March 14, 2005.

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, TO ENACT THE "SOUTH CAROLINA MEDICAID MODERNIZATION ACT" INCLUDING PROVISIONS TO ADD ARTICLE 8, CHAPTER 6, TITLE 44 SO AS TO PROVIDE THAT THE DEPARTMENT OF HEALTH AND HUMAN SERVICES SHALL IMPLEMENT EFFECTIVE AND EFFICIENT MEDICAID CARE MANAGEMENT, INCLUDING ADMINISTERING CARE MANAGEMENT PROGRAMS FOR ROUTINE CARE AND IMPLEMENTING CARE MANAGEMENT PROGRAMS FOR CHRONIC DISEASE CARE; TO PROVIDE FOR EFFECTIVE MEDICAID PHARMACY BENEFIT MANAGEMENT, INCLUDING THE ESTABLISHMENT OF THE PHARMACY AND THERAPEUTICS COMMITTEE, WHICH SHALL RECOMMEND CLASSES OF DRUGS THAT SHOULD BE INCLUDED ON A PREFERRED DRUG LIST AND CRITERIA FOR IMPLEMENTATION OF A PREFERRED DRUG LIST PROGRAM; TO PROVIDE FOR EFFECTIVE MEDICAID STATE AGENCY SERVICE MANAGEMENT, INCLUDING PERIODIC MEETINGS OF DIRECTORS OF ALL STATE AGENCIES RECEIVING MEDICAID FUNDS FOR THE PURPOSE OF CONTROLLING THE GROWTH OF MEDICAID AND IMPROVING THE STATE MEDICAID PROGRAM AND TO REQUIRE THE DEPARTMENT TO REPORT TO THE GENERAL ASSEMBLY ON MEDICAID EXPENDITURES AND TO CONDUCT PERIODIC AUDITS AND REVIEWS OF STATE AGENCIES RECEIVING MEDICAID FUNDS; TO ADD SECTION 44-6-110 SO AS TO REQUIRE THE DEPARTMENT OF HEALTH AND HUMAN SERVICES TO, AMONG OTHER THINGS, DEVELOP MEDICAID ELIGIBILITY DETERMINATION CRITERIA, TO CENTRALIZE MEDICAID ELIGIBILITY PROCESSING, AND TO CONDUCT AUDITS OF ELIGIBILITY FILES; TO AMEND SECTION 44-6-80, RELATING TO REPORTS TO THE GENERAL ASSEMBLY, SO AS TO FURTHER SPECIFY THE CONTENTS AND REQUIREMENTS FOR THESE REPORTS; TO AMEND ARTICLE 3, CHAPTER 6, TITLE 44, RELATING TO CHILD DEVELOPMENT SERVICES, SO AS TO DELETE THESE PROVISIONS AND TO PROVIDE FOR MEDICAID FRAUD AND ABUSE MANAGEMENT, INCLUDING PROVISIONS REQUIRING AUDITS, SANCTIONS, AND CONTRACTING WITH OTHER ENTITIES TO PREVENT MEDICAID FRAUD, ABUSE, AND WASTE; TO ADD SECTION 38-71-270 SO AS TO REQUIRE HEALTH INSURERS TO SUBMIT NAMES AND OTHER IDENTIFYING INFORMATION TO THE DEPARTMENT OF INSURANCE TO BE PROVIDED TO THE DEPARTMENT OF HEALTH AND HUMAN SERVICES TO USE IN IDENTIFYING MEDICAID RECIPIENTS WHO HAVE OTHER HEALTH INSURANCE COVERAGE; TO ADD SECTION 44-6-112 SO AS TO AUTHORIZE THE DEPARTMENT OF HEALTH AND HUMAN SERVICES TO FUND THE NET COSTS OF ANY THIRD PARTY LIABILITY AND DRUG REBATE COLLECTION EFFORTS FROM THE REVENUE COLLECTED IN THOSE EFFORTS; TO AMEND SECTION 43-3-65, RELATING TO COUNTIES PROVIDING OFFICE SPACE TO THE DEPARTMENT OF SOCIAL SERVICES, SO AS TO ALSO REQUIRE COUNTIES TO PROVIDE SPACE FOR THE DEPARTMENT OF HEALTH AND HUMAN SERVICES ELIGIBILITY PROCESSING; AND TO REPEAL JOINT RESOLUTION 370 OF 2002 RELATING TO NURSING HOME BED FRANCHISE FEES.

Amend Title To Conform

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

SECTION 1.    This act may be cited as the "South Carolina Medicaid Modernization Act".

SECTION 2. Chapter 6, Title 44 of the 1976 Code is amended by adding Article 8:

Section 44-6-1110.    The department shall administer the Medicaid program in an effective and efficient manner that provides the best healthcare value for South Carolinians.

Section 44-6-1120.    (A)    The department shall implement care management programs for recipients with chronic diseases and other conditions that exert unusually high demand on the Medicaid health care system. These programs should include the following elements:

(1)    predictive indicators through utilization review;

(2)    specific treatment protocols and appropriate care coordination procedures;

(3)    improved access to medical homes and primary care providers;

(4)    alternatives to emergency room care;

(5)    educational opportunities concerning disease states and treatment options;

(6)    prevention measures; and

(7)    opportunities for self-directed healthcare and increased involvement of recipients in their own healthcare decisions.

(B)    In the development and administration of care management programs, the department is authorized to enter into contracts, implement reimbursement incentives, establish appropriate methods of enrollment, including automatic assignment, and apply for necessary waivers or other federal approvals.

(C)    The department annually shall evaluate and report on the effectiveness of care management programs. The evaluation must include, but is not limited to, impacts on service utilization, cost trends, access to care, quality indicators, and recipient satisfaction.

Section 44-6-1130.    A Health Maintenance Organization that has contracted with the department to become a Managed Care Organization for Medicaid in South Carolina, to be in compliance with network adequacy standards must provide for the following:

(1)    There must be at least one PCP per twenty-five hundred members accessible within a thirty mile radius for ninety-five percent of the population of the area to be served. If a radius map cannot demonstrate this, the Managed Care Organization may state that it generally meets this requirement, and how this was determined.

(2)    There must be a contracted hospital within the county, or within a thirty-mile radius of ninety-five per cent of the population of the area to be served where none exists in the county. The Managed Care Organization must have a contractual arrangement with a tertiary care facility within a reasonable travel distance.

(3)    The Managed Care Organization must contract with an adequate number and type of specialists within a fifty-mile radius of ninety five per cent of the population in the area to be served. The mileage standards do not apply to subspecialists. For subspecialists, the Manage Care Organization should describe how it will assure access to subspecialists, as necessary.

Section 44-6-1210.    The department shall implement pharmacy benefit management programs that ensure appropriate access to clinically-effective pharmaceuticals. For purposes of this article:

(1)    'Chairman' means Chairman of the Pharmacy and Therapeutics Committee.

(2)    'Committee' means the Pharmacy and Therapeutics Committee.

(3)    'Department' means the Department of Health and Human Services.

(4)    'Director' means the Director of the Department of Health and Human Services.

Section 44-6-1220.    (A)    There is established within the Department the Pharmacy and Therapeutics Committee. The committee must consist of fifteen members appointed by the director and serving at the pleasure of the director. The members must include eleven physicians and four pharmacists licensed to practice in this State and actively engaged in providing services to the South Carolina Medicaid population. The physicians may include, but are not limited to, doctors who have experience in treating diabetes, cancer, HIV/AIDS, mental illness, and hemophilia and who practice in internal medicine, primary care, and pediatrics.

(B)    The committee shall adopt by-laws that include, but are not limited to, membership terms. A chairman and vice-chairman must be elected on an annual basis from among the committee membership. Committee members may not be compensated for service on the committee but may be reimbursed for actual and necessary expenses incurred pursuant to discharging committee duties in an amount not to exceed the mileage and subsistence amounts allowed by law for members of boards, commissions, and committees.

(C)    The committee shall meet at least quarterly and may meet at other times at the discretion of the chairman or the director. Committee meetings are subject to the provisions of the Freedom of Information Act. The department shall publish notice of regular business meetings of the committee at least thirty days before such meeting. The director or chairman may call special meetings of the committee and provide public notice as may be practical.

(D)    The committee shall provide for public comment, including comment on clinical and patient care data from Medicaid providers, representatives of the pharmaceutical industry, and patient advocacy groups. Trade secrets as defined in state and relevant federal law must not be publicly disclosed.

(E)    The committee shall recommend to the department therapeutic classes of drugs that should be included on a preferred drug list. For those recommended classes, the committee must recommend the drug or drugs considered preferred within that class based on safety and efficacy. In determining safety and efficacy, the committee may consider all submitted public comment or clinical information including, but not limited to, scientific evidence, standards of practice, peer-reviewed medical literature, randomized clinical trials, pharmacoeconomic studies, and outcomes research data. The committee also shall recommend prior authorization criteria for non-preferred drugs in the recommended therapeutic classes.

Section 44-6-1230.    Any preferred drug list program implemented by the department must include:

(1)    procedures to ensure that a request for prior authorization that has no material defect or impropriety can be processed within twenty-four hours of receipt;

(2)    procedures to allow the prescribing physician to request and receive notification of any delay or negative decision in regard to a prior authorization request;

(3)    procedures to allow the prescribing physician to request and receive a second review of any denial of a prior authorization request; and

(4)    procedures to allow a pharmacist to dispense an emergency, seventy-two hour supply of a drug requiring prior authorization without such prior authorization if the pharmacist:

(a)    has made a reasonable attempt to contact the prescribing physician and request that the prescribing physician secure prior authorization; and

(b)    reasonably believes that refusing to dispense a seventy-two hour supply would unduly burden the Medicaid recipient and produce undesirable health consequences.

Section 44-6-1240.    A grant of prior authorization for a drug is specific to the drug, rather than the actual prescription, and extends to all refills allowed pursuant to the original prescription and to subsequent prescriptions for the same drug at the same dosage if the time allowed by the prior authorization has not expired.

Section 44-6-1250.    A Medicaid recipient who has been denied prior authorization for a prescribed drug is entitled to appeal this decision through the department's appeals process.

Section 44-6-1260.    For prescriptions reimbursed by the department, a Medicaid recipient is deemed to have consented to substitution of a less costly generic equivalent satisfying the individual consent requirements of Section 40-43-86(H)(6).

Section 44-6-1310    (A)    The Director of the Office of Information Technology of the State Budget and Control Board shall convene an Information Technology Planning Team to develop plans for the efficient and effective use of information technologies by health and human service agencies. The Director must include an equal number of private sector information technology professionals on the team. The purpose of the advisory committee is to benefit the public agencies with the expertise of the private sector in designing and managing health and human service agency information systems. The Director shall make periodic reports to the Chairman of the House Ways and Means Committee and the Chairman of the Senate Finance Committee on the team's progress towards the goals of improving information technology purchasing and coordination. Representatives of the following agencies shall participate on the information technology team:

(1)    Department of Health and Human Services;

(2)    Department of Health and Environmental Control;

(3)    Department of Social Services;

(4)    Department of Disabilities and Special Needs; and

(5)    Vocational Rehabilitation

(B)    The department annually shall compile the results of these meetings and provide them to the Governor and the Senate Finance Committee, Senate Medical Affairs Committee, House Ways and Means Committee, and House Medical, Military, Public and Municipal Affairs Committee.

Section 44-6-1320.    By December thirty-first of each year, the department shall submit to the Governor and the Senate Finance Committee, Senate Medical Affairs Committee, House Ways and Means Committee, and House Medical, Military, Public and Municipal Affairs Committee Medicaid expenditures made to other state agencies in the preceding state fiscal year. The report must include, but is not limited to:

(1)    amounts paid to each agency according to category of service; and

(2)    rates paid to each state agency and the associated methodology used in developing those rates.

Section 44-6-1330.    (A)    The department shall develop outcome results-based objectives for Medicaid service and administrative contracts with other state agencies. Reimbursement must be based on the completion of outcomes, as appropriate.

(B)    The department shall identify payment rates for Medicaid services provided by other state agencies that exceed available comparable market rates and develop methods to ensure that, where appropriate, rates are the lower of cost or market. To ensure that the provisions of this section are met and that duplicative services are not provided to Medicaid recipients, the department may limit Medicaid services provided by other state agencies.

Section 44-6-1340.    (A)    The department shall develop an annual plan to conduct periodic audits, reviews, and inspections of state agencies receiving Medicaid funds for the purpose of:

(1)    ensuring compliance with state and federal regulations;

(2)    promoting accountability, economy, effectiveness, and efficiency; and

(3)    preventing and detecting waste, fraud, and abuse.

(B)    Audits and reviews must be performed in accordance with Generally Accepted Government Auditing Standards, commonly referred to as the 'yellow book'.

(C)    Reports must be issued in accordance with professional standards and must include a description of any significant problems, abuses, and deficiencies encountered in the administration and operation of Medicaid services along with recommendations for corrective action. Reports must include the financial value of any items reported.

(D)    The department is authorized to directly access all systems, records, reports, reviews, files, documents, papers, and similar information related to Medicaid payments within state agencies and entities doing business with these agencies.

(E)    The department may enter into external contracts as necessary in fulfilling the requirements of this section.

(F)    The department shall withhold any amounts related to fraud, abuse, and non-compliance.

(G)    The department shall make all reports available to the Governor and the Senate Finance Committee, Senate Medical Affairs Committee, House Ways and Means Committee, and House Medical, Military, Public and Municipal Affairs Committee."

SECTION    3.    Article 1, Chapter 6, Title 44 of the 1976 Code is amended by adding:

"Section 44-6-110.    (A)    The department shall develop eligibility determination criteria and processes for full benefit Medicaid applicants that:

(1)    provide for face-to-face initial and continued eligibility determinations when administratively feasible and cost-effective;

(2)    prevent the routine initiation of coverage until verification of all required eligibility information is complete unless the applicant is a pregnant woman;

(3)    require verification of all unearned income including, but not limited to, child support or alimony;

(4)    require proof of citizenship or legal alien status when the department has reasonable grounds to believe that the applicant is not a citizen or legal alien;

(5)    require proof of South Carolina residency when the department has reasonable grounds to believe that the applicant is not a state resident;

(6)    require the applicant, the applicant's legal guardian or other responsible party, or the applicant's power of attorney to sign the application attesting to the accuracy of the information provided; and

(7)    require at least annual continuing eligibility determinations using the same standards as applied to the initial eligibility determination process.

(B)    The department shall require that all files pertaining to Medicaid eligibility of an agency employee, a member of an agency employee's family, including, but not limited to, a spouse, parent, step-parent, grandparent, step-grandparent, child, step-child, sibling, or step-sibling, or an individual residing with an agency employee be transferred to a central location for processing.

(C)    The department shall conduct regular audits of eligibility files for completeness and accuracy. The files reviewed must be selected by an approved statistical method that ensures a reasonable competency level.

(D)    The department shall maintain an electronic interface with the South Carolina Employment Security Commission to provide employment and earning information on Medicaid applicants.

(E)    The department shall structure the eligibility determination function in a manner that is administratively efficient.

(F)    Notwithstanding any other provision of law and except as provided below, a promissory note received after July 1, 2004, by a Medicaid applicant or recipient or the spouse of a Medicaid applicant or recipient in exchange for assets that if retained by the applicant or recipient or his spouse would cause the applicant or recipient to be ineligible for Medicaid benefits is, for Medicaid eligibility purposes, deemed to be fully negotiable under the laws of this State unless it contains language plainly stating that it is not transferable under any circumstance. To be considered valid for Medicaid eligibility determination purposes, a promissory note must be actuarially sound, require monthly installments that fully amortize over the life of the loan, and be free of any conditional or self-canceling clauses.

(G)    The department shall contract with an independent, external entity to periodically review eligibility error determination procedures and related results and shall report this information to the Governor and Senate Finance Committee, Senate Medical Affairs Committee, House Ways and Means Committee, and House Medical, Military, Public and Municipal Affairs Committee."

SECTION    4.    Section 44-6-80 of the 1976 Code is amended to read:

"Section 44-6-80.    The department must submit to the Governor, the State Budget and Control Board, and the General Assembly an annual report concerning the work of the department including details on improvements in the cost effectiveness achieved since the enactment of this chapter and must recommend changes for further improvements.

Interim reports must be submitted as needed to advise the Governor and the General Assembly of substantive issues.

(A)    Within six months of the end of the state fiscal year, the department shall submit to the Governor and the Senate Finance Committee, Senate Medical Affairs Committee, House Ways and Means Committee, and House Medical, Military, Public and Municipal Affairs Committee an annual report on the status of operations of the Medicaid program for that fiscal year. The report must include, but is not limited to:

(1)    changes to the state's Medicaid plan or other changes requiring federal approval;

(2)    significant policy and procedural changes;

(3)    annual eligibility enrollment; and

(4)    annual total expenditures by service category and the associated administrative expenses.

(B)    By December 31 of each year, the department shall submit to the Governor and the Senate Finance Committee, Senate Medical Affairs Committee, House Ways and Means Committee, and House Medical, Military, Public and Municipal Affairs Committee a report that compares the reimbursement rate of Medicaid providers to similar reimbursement rates of the Medicare Program, the State Health Plan, and other industry and comparable state benchmarks as the department considers appropriate.

(C)    By December 31 of each year, the department, in conjunction with the Office of Research and Statistics of the Budget and Control Board and other entities at the department's discretion, shall submit to the Governor and the Senate Finance Committee, Senate Medical Affairs Committee, House Ways and Means Committee, and House Medical, Military, Public and Municipal Affairs Committee a forecast of Medicaid enrollment and utilization for the following three state fiscal years.

(D)    The department shall report to the Governor and the Senate Finance Committee, Senate Medical Affairs Committee, House Ways and Means Committee, and House Medical, Military, Public and Municipal Affairs Committee any disallowance of federal expenditures by the Centers for Medicare and Medicaid Services within fifteen days of notification of a disallowance.

(E)    The department shall participate in any payment error rate and measurement program required by the Centers for Medicare and Medicaid Services and report results annually to the Governor and the Senate Finance Committee, Senate Medical Affairs Committee, House Ways and Means Committee, and House Medical, Military, Public and Municipal Affairs Committee.

(F)    The department shall maintain an internal audit unit to conduct reviews, audits, investigations, and other inspections of agency operations and external agency agreements. The unit must be located within the department so as to maintain maximum independence and objectivity. The audit director shall report to no less than a deputy director. Access by the unit's director to the executive director must be maintained without hindrance or obstruction. The unit shall submit, to the executive director for approval, a comprehensive annual audit plan that may include contracting with external entities for performance of audits."

SECTION 5. Article 3, Chapter 6, Title 44 of the 1976 Code is amended to read:

"Section 44-6-300.    The Department of Health and Human Services shall establish child development services in the following counties: Allendale, Bamberg, Barnwell, Calhoun, Cherokee, Chester, Chesterfield, Fairfield, Jasper, Lexington, Newberry, and Orangeburg. The services established in each county must provide at least thirty slots for the children of that county. (A)    In accordance with federal law, the department shall conduct audits, reviews, investigations, and inspections of providers, including other state agencies, and recipients in order to prevent and detect fraud, abuse, and waste in the Medicaid program.

(B)    The department shall only reimburse for medically necessary covered services provided to Medicaid recipients. For purposes of this section:

(1)    'Medically necessary services' are those services that are of an amount, duration, and scope that is:

(a)    provided in accordance with all applicable state and federal Medicaid laws, regulations, manual provisions, bulletins, and other directives; and

(b)    directed toward the maintenance, restoration, or protection of health or toward the diagnosis and treatment of illness or disability.

(2)    'Covered services' means services that are clearly and specifically included as covered in the Medicaid State Plan, provider manual, including published bulletins or other directives.

(C)    The department may sanction providers found to be in violation of this section. These sanctions may include, but are not limited to, any or all of the following:

(1)    denial of payment, in whole or in part, or recovery of overpayments, in whole or in part;

(2)    rejection of a prospective provider's application for participation in the Medicaid program;

(3)    suspension or termination of a Medicaid provider agreement;

(4)    assessment of a fine, which must be promulgated, by the department in regulation; and

(5)    assessment of an interest charge, which must be promulgated by the department in regulation, from the date of claim payment to the date of repayment on amounts paid to the provider in excess of amounts that are appropriately due under Medicaid program policies and procedures.

(D)    The department shall monitor recipients' use of Medicaid benefits and develop interventions or sanctions for recipients identified misusing Medicaid benefits.

Section 44-6-320.    The establishment and expansion of the child development services mandated by Sections 44-6-300 and 44-6-310 must be accomplished within the limits of the appropriations provided by the General Assembly in the annual General Appropriations Act for this purpose and in accordance with the Department of Health and Human Services policies for child development services funded through Title XX. (A) The department is authorized to expand its fraud and abuse efforts by using internal and external resources including, but not limited to, the ability to contract with other entities for the purpose of maximizing the department's ability to prevent and detect Medicaid fraud, abuse, and waste.

(B)    The department may contract with the Attorney General's Office to conduct investigations of recipients suspected of Medicaid fraud and abuse including, but not limited to:

(1)    submitting false applications or providing false or misleading information in order to obtain Medicaid benefits;

(2)    sharing or selling the Medicaid card;

(3)    diverting or reselling prescription drugs and other goods or supplies provided by Medicaid; and

(4)    otherwise fraudulently obtaining Medicaid benefits to which they were not entitled.

(C)    The department shall meet at least quarterly with the staff of the Attorney General's Office involved in Medicaid provider and recipient fraud, abuse, and waste investigation and prosecution to determine the status of cases referred to the Attorney General's Office and ensure that both entities are expeditiously pursuing their responsibilities in this regard."

SECTION    6.    Article 1, Chapter 71, Title 38 of the 1976 Code is amended by adding:

"Section 38-71-270.    (A)    The Department of Health and Human Services must be the payer of last resort for every Medicaid beneficiary that has third party health coverage or insurance. Every insurer must pay or every Plan Administrator must authorize payment of benefits for a Medicaid beneficiary with third party health coverage or insurance prior to any benefit being paid by the Medicaid program. Each Plan Sponsor must direct its Pharmacy Benefit Managers (PBM) and other medical carriers to cooperate with Medicaid to identify Medicaid beneficiaries with insurance coverage. An insurer or Plan Administrator must also reimburse the Medicaid program for claims that Medicaid has submitted and made payment on for which the insurer is primarily liable.

(B)    The department is authorized to enter into cooperative agreements with insurers to establish mutually agreeable procedures for the exchange of information related to determining whether a Medicaid beneficiary has third party coverage that should pay claims prior to Medicaid. The department must develop technology to allow the determination of third party coverage to be made online. No more than twice a year, the department must provide data tapes containing the names on the Medicaid rolls to every insurer on the Market Share Listing maintained by the Department of Insurance. Within forty-five days of receiving the list of Medicaid recipients, each insurer must identify to the department all of the insurers' subscribers, policyholders, and covered dependents whose names also appear on the Medicaid rolls. Information furnished to the department is limited to that information the department determines is necessary to decide whether benefits are available to Medicaid beneficiaries so that future claims can be cost avoided and previously paid claims may be reimbursed to the department."

(C)    This section does not apply to supplemental insurance policies written on an individual basis for the purpose of paying a specified predetermined dollar amount that the insured does not, under the terms of the policy, have to apply towards medical costs. However, such dollar amounts may be considered by the department in determining the insured's financial eligibility for Medicaid. Insurers shall honor requests from the department to provide information on their insureds, for whom Medicaid covered services may have been provided, including information regarding benefits and payments.

SECTION    7.    Section 43-3-65 of the 1976 Code, as added by Section 59A, Part II, Act 155 of 1997, is amended to read:

"Section 43-3-65.    The governing authorities of each county shall provide office space and facility service, including janitorial, utility and telephone services, and related supplies, for its the Department of Health and Human Services eligibility processing and the county Department of Social Services."

SECTION    8.    Joint Resolution 370 of 2002 is repealed.

SECTION    9.    If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

SECTION    10.    The repeal or amendment by this act of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this act, all laws repealed or amended by this act must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this act, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.

SECTION    11.    Title 2 of the 1976 Code is amended by adding:

Section 2-64-10.    There is established the Joint Medicaid Review Committee composed of six members; three of whom must be members of the Senate appointed by the Chairman of the Senate Finance Committee, one of whom must be a member of the minority party; three of whom must be members of the House of Representatives appointed by the Chairman of the House Ways and Means Committee, one of whom must be a member of the minority party. The committee shall elect a chairman and vice chairman from among its members.

Section 2-64-20.    (A)    In carrying out its responsibilities under this chapter, the committee shall meet at least annually to:

(1)    be briefed by the Director of the Department of Health and Human Services regarding:

(a)    the State Medicaid Plan, and amendments to the plan;             (b)    the State Medicaid Annual Report;

(c)    Medicaid spending projections for three fiscal years;

(d)    the program's compliance with state and federal laws, regulations, and other requirements;

(e)    other information as requested by the chairman;

(2)    review the work of the state Medicaid agency regarding:

(a)    cost containment measures;

(b)    fiscal and program accountability;

(c)    effective coordination of all providers and payers;

(d)    performance measurement and reporting; and

(e)    detection of fraud and abuse;

(3)    make recommendations to the Governor and the General Assembly for improving state Medicaid policy and financing;

(4)    introduce legislation to address problems and issues affecting the Medicaid program.

(B)    In carrying out its responsibilities under this chapter, the committee may:

(1)    receive testimony of any state employee or any other witness who may assist the committee in its duties;

(2)    call for assistance in the performance of its duties from any state employee or state agency or any political subdivision of the State;

(3)    contract with consultants to assist the committee in accomplishing its duties.

Section 2-64-30.    The committee may adopt, by majority vote rules not inconsistent with this chapter that the committee considers proper with respect to matters relating to the discharge of its duties under this section. Professional and clerical services for the committee must be made available from the staffs of the General Assembly, the Budget and Control Board, and the Department of Health and Human Services. The members of the committee may not receive mileage, per diem, subsistence, or any form of compensation for their service on the committee."

SECTION    12.    Chapter 6, Title 44 of the 1976 Code is amended by adding:

Section 44-6-1310.    (A)    The Department of Health and Human Services shall convene an interagency team of information technology professionals to develop plans for the efficient and effective use of information technologies by health and human service agencies. Representatives of the following agencies shall participate on the information technology team:

(1)    Department of Health and Human Services;

(2)    Department of Health and Environmental Control;

(3)    Department of Social Services;

(4)    Department of Disabilities and Special Needs; and

(5)    Vocational Rehabilitation

(B)    The Department of Health and Human Services shall provide leadership to the information technology team in the study of the following information technology issues and opportunities for improvement:

(1)    redundant systems and applications;

(2)    incompatible computer systems;

(3)    multiple forms required of the public to gain access to services;

(4)    sharing and integration of information systems;

(5)    electronic communications among the agencies and with the public;

(6)    employee training and skills for effective use of information technology;

(7)    use of technology to support business objectives;

(8)    use of information technology to reduce costs;

(9)    optimizing the use of revenue for technology enhancements;

(10)    public self-service to agency information;

(11)    other issues and opportunities for improvement identified by the planning team and the MAP Commission report of 2003.

Section 44-6-1320.    Upon consultation with the Office of Information Technology of the State Budget and Control Board, and department the information technology team shall:

(1)    develop coordinated strategic plans that;

(a)    cover multi-year periods;

(b)    integrate planning;

(c)    define objectives;

(d)    prioritize information resources;

(e)    promote the ability of information resources systems to operate with each other; and

(f)    achieve economies of scale and related benefits in purchasing information resources for the participating agencies;

(2)    recommend information resources management policies, procedures, and technical standards for health and human service agencies."

SECTION    13.    Article 5, Chapter 21, Title 12 of the 1976 Code is amended by adding:

"Section 12-21-625.    (A)(1)    There is created the Health Care and Human Services Fund into which must be deposited funds as may be provided by law. The fund must be separate and distinct from the general fund and must be used only for the purposes prescribed in this subsection. Earnings on investments from this fund must remain part of the separate fund and must not be deposited in the general fund.

(2)    Monies in the fund must be used as follows:

(a)    the first forty million dollars of revenue must be used as one time funding for the Department of Social Services for a statewide automated Child Support Enforcement System as mandated by the federal government. These funds must be deposited into the Medicaid Expansion Fund as provided in Section 12-23-840.

(b)    the next four million dollars of revenue remaining after the expenditures in subitem (a) is designated for the Department of Health and Environmental Control solely for funding of grants dedicated for community agencies and organizations for 'Healthy People 2010', the promotion of public health, and targeted only toward the following objectives:

(i)            increasing the proportion of adults and adolescents participating in exercise;

(ii)        reducing the proportion of obese adults;

(iii)        reducing cigarette use by adults and adolescents;

(iv)        increasing the proportion of adolescents who do not use alcohol or illicit drugs;

(v)        reducing the proportion of adults engaging in the 'binging' use of alcoholic beverages;

(vi)        reducing motor vehicle fatalities;

(vii)        reducing homicides;

(viii)    increasing the proportion of young children who receive vaccinations and immunizations;

(ix)        increasing the proportion of noninstitutionalized adults, sixty-five years of age and older, who receive vaccinations and immunizations;

(x)        increasing the proportion of noninstitutionalized adults, sixty-five years of age and older, who have ever been vaccinated against pneumococcal disease; and

(xi)    increasing the number of pregnant women who begin prenatal care in the first trimester of pregnancy.

(c)    the next nine million dollars of revenue is designated for the Department of Disabilities and Special Needs;

(d)    the next ten million five hundred thousand dollars of revenue is designated for the Department of Mental Health;

(e)    the next four million dollars of revenue is designated for the Department of Health and Human Services for implementing the recommendations of the Information Technology Planning Team as contained in Section 44-6-1310 et. seq.;

(f)    any remaining revenue collected pursuant to this section must be used by the Department of Health and Human Services as the director determines.

(B)    Monies must be transferred by the State Treasurer upon written request and justification from an authorized official for the purposes prescribed in subsection (C).

(C)    For all purposes of reporting, payment, collection, and enforcement, any surtax that may be imposed by this section is deemed to be imposed pursuant to Section 12-21-620(1)."

SECTION    14.    Section 44-6-155(A)(2) of the 1976 Code is amended to read:

"(2)    collected pursuant to Section Sections 12-21-625 and 2-23-810; and"

SECTION    15.    Chapter 30, Title 1 of the 1976 Code is amended by adding:

Section 1-30-310.    (A)    Notwithstanding any other provision of law, the following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities and the employees, funds, property, and all contractual rights and obligations associated with these agencies, except for those subdivisions or sections of agencies not specifically transferred to another department, are transferred in accordance with the following:

(1)(a)    There is established within the Department of Health and Environmental Control the Office of Behavioral Health Services. The office is to be headed by a Deputy Commissioner for Behavioral Health Services. The Commissioner of the Department of Health and Environmental Control is authorized to organize the office and its duties within the department in a manner he determines for the purposes of streamlining and administrative efficiency. This office is responsible for:

(i) policy, development, planning, and other necessary duties to provide for a comprehensive system of behavioral health services for the citizens of the state;

(ii)    monitoring, and providing technical assistance and training for all providers of behavioral health services in the state.

(iii)    providing for an effective and efficient system of services for the mentally ill, emotionally disturbed children and persons with alcohol and other drug abuse problems.

(iv)    providing for streamlined systems of services for citizens that focuses on the clients and patient needs.

(b)    The following are transferred to the Office of Behavioral Health Services:

(i)        the Department of Alcohol and other Drug Abuse Services, as provided for in Chapter 49, Title 44. Nothing in this subitem may be construed to affect the authority, duties, and responsibilities of the boards for the local commissions on alcohol and other drug abuse services;

(ii)    the Continuum of Care for Emotionally Disturbed Children, Office of the Governor;

(iii)    the Department of Mental Health, and the South Carolina Mental Health Commission is abolished and its powers, duties, and responsibilities are transferred to the Department of Health and Environmental Control. Nothing in this subitem may be construed to affect the authority, duties, and responsibilities of the boards for the community mental health centers.

SECTION    16.    Subarticle 11, Article 13, Chapter 7, Title 20 of the 1976 Code, is amended to read:

"Section 20-7-2700.    For the purpose of this subarticle:

A.    'Childcare' means the care, supervision, or guidance of a child or children, unaccompanied by the parent, guardian, or custodian, on a regular basis, for periods of less than twenty-four hours per day, but more than four hours, in a place other than the child's or the children's own home or homes.

B.    'Childcare facilities' means a facility which provides care, supervision, or guidance for a minor child who is not related by blood, marriage, or adoption to the owner or operator of the facility whether or not the facility is operated for profit and whether or not the facility makes a charge for services offered by it. This definition includes, but is not limited to, day nurseries, nursery schools, childcare centers, group childcare homes, and family childcare homes. The term does not include:

(1)    an educational facility, whether private or public, which operates solely for educational purposes in grade one or above;

(2)    five-year-old kindergarten programs;

(3)    kindergartens or nursery schools or other daytime programs, with or without stated educational purposes, operating no more than four hours a day and receiving children younger than lawful school age;

(4)    facilities operated for more than four hours a day in connection with a shopping center or service or other similar facility, where the same children are cared for less than four hours a day and not on a regular basis as defined in this subarticle while parents or custodians of the children are occupied on the premises or are in the immediate vicinity and immediately available; however, these facilities must meet local fire and sanitation requirements and maintain documentation on these requirements on file at the facility available for public inspection;

(5)    school vacation or school holiday day camps for children operating in distinct sessions running less than three weeks per session unless the day camp permits children to enroll in successive sessions so that their total attendance may exceed three weeks;

(6)    summer resident camps for children;

(7)    bible schools normally conducted during vacation periods;

(8)    facilities for the mentally retarded provided for in Chapter 21, Title 44;

(9)    facilities for the mentally ill as provided for in Chapter 17, Title 44;

(10)    childcare centers and group childcare homes owned and operated by a local church congregation or an established religious denomination or a religious college or university which does not receive state or federal financial assistance for childcare services; however, these facilities must comply with the provisions of Sections 20-7-2900 through 20-7-2975 and that these facilities voluntarily may elect to become licensed according to the process as set forth in Sections 20-7-2700 through 20-7-2780 and Sections 20-7-2980 through 20-7-3090.

C.    'Public childcare facility' means a facility as defined under item b of this section which was created and exists by act of the State, or a county, city or other political subdivision, whose operation remains under the tutelage and control of a governmental agency.

D.    'Private childcare facility' means a facility as defined under item b. of this section which is not a public childcare facility, and which is able to be further classified as follows:

(1)    'Entrepreneurial childcare facility' means a facility whose childcare operator may receive public assistance funds directly or indirectly but which is managed as a profit-making business enterprise and whose corporation or private ownership is liable for payment of federal and state income taxes on profits earned by the facility.

(2)    'Nonprofit childcare facility' means a facility whose childcare operator may receive public assistance funds directly or indirectly but which is operated under the tutelage and control of a nonprofit or eleemosynary corporation, foundation, association, or other organization whose ownership may or may not be liable for payment of federal and state income taxes on profits earned by the facility.

E.    'Childcare center' means any facility which regularly receives thirteen or more children for childcare.

F.    'Group childcare home' means a facility within a residence occupied by the operator which regularly provides childcare for at least seven but not more than twelve children, unattended by a parent or a legal guardian including those children living in the home and children received for childcare who are related to the resident caregiver. However, an occupied residence in which childcare is provided only for a child or children related to the resident caregiver or only for the child or children of one unrelated family or only for a combination of these children is not a group childcare home.

G.    'Family childcare home' means a facility within a residence occupied by the operator in which childcare is regularly provided for no more than six children, unattended by a parent or legal guardian, including those children living in the home and children received for childcare who are related to the resident caregiver. However, an occupied residence in which childcare is provided only for a child or children related to the resident caregiver or only for the child or children of one unrelated family or only for a combination of these children is not a family childcare home.

H.    'Childcare operator' means the person, corporation, partnership, voluntary association, or other public or private organization ultimately responsible for the overall operation of a childcare facility.

I.     'Caregiver' means any person whose duties include direct care, supervision, and guidance of children in a childcare facility.

J.     'Minor child' means a person who has not reached the eighteenth birthday.

K.    'Department' means the State Department of Social Services Health and Environmental Control, the agency designated to administer the regulation of childcare facilities under this subarticle, with the advice of the State Advisory Committee on the Regulation of Childcare Facilities.

L.    'Committee' means the State Advisory Committee on the Regulation of Childcare Facilities, named under this subarticle to advise the department on regulatory matters related to childcare facilities.

M.    'Director' means the administrative head of the department.

N.     'Regularly, or on a regular basis': these terms refer to the frequency with which childcare services are available and provided at a facility in any one week; these terms mean the availability and provision of periods of daycare on more than two days in such week.

O.     'Related' means any of the following relationships by marriage, blood, or adoption: parent, grandparent, brother, sister, stepparent, stepsister, stepbrother, uncle, aunt, cousin of the first degree.

P.     'Regular license' means a license issued by the department for two years to an operator of a private childcare center or group childcare home or a family childcare home which elects to be licensed showing that the licensee is in compliance with the provisions of this subarticle and the regulations of the department at the time of issuance and authorizing the licensee to operate in accordance with the license, this subarticle, and the regulations of the department.

Q.     'Provisional license' means a license issued by the department to an operator of a private childcare center or group childcare home or a family childcare home which elects to be licensed authorizing the licensee to begin operations although the licensee temporarily is unable to comply with all of the requirements for a license.

R.    'Regular approval' means a written notice issued by the department for a two-year period to a department, agency, or institution of the State, or a county, city, or other political subdivision, approving the operation of a public childcare center or group childcare home in accordance with the provisions of the notice, this subarticle, and the regulations of the department.

S.    'Provisional approval' means a written notice issued by the department to a department, agency, or institution of the State, or a county, city, or other political subdivision approving the commencement of the operations of a public childcare center or group childcare home although the operator is temporarily unable to comply with all of the requirements for approval.

T.    'Registration' means the process whereby childcare centers and group childcare homes owned and operated by a church or a publicly recognized religious educational or religious charitable institution are regulated under this subarticle and the process whereby all family childcare homes are regulated under this subarticle.

U.    'Declaratory order' means a written statement on the part of the department approving plans for construction or renovation ensuring against the imposition of more stringent regulations at a later date.

V.    'Renewal' means in regard to childcare centers and group childcare homes, to grant an extension of a regular license or regular approval for another two-year period provided an investigation of such facilities verifies that they are in compliance with the applicable regulations, in regard to family childcare homes, to place the name of the operator on the registration list for another year provided procedures indicated in this subarticle have been completed.

W.    'Revocation' means to void the regular license of a childcare center or group childcare home.

X.    'Deficiency correction notice' means a written statement on the part of the department notifying a childcare facility which is not complying with any applicable regulations to correct the deficiencies stated in the notice within a reasonable time limit.

Y.    'Complaint' means a written statement reporting unsatisfactory conditions in a childcare facility.

Z.    'Curriculum' means and includes design of courses, teaching philosophy, methods, and activities.

AA.    'Summer resident camp for children' means a twenty-hour-hour residential program offered during the summer that provides recreational activities for children.

BB.    'Summer day camp for children' means a program offered during the summer that provides recreational activities primarily during daytime hours throughout the period of the program and may include an occasional overnight activity under the supervision of the operator.

CC.    'Infant' means a child age twelve months or younger for the purposes of this chapter.

Section 20-7-2710.    A.    The intent of this subarticle is to define the regulatory duties of government necessary to safeguard children in care in places other than their own homes, ensuring for them minimum levels of protection and supervision. Toward that end, it is the purpose of this subarticle to establish statewide minimum regulations for the care and protection of children in childcare facilities, to ensure maintenance of these regulations and to approve administration and enforcement to regulate conditions in such facilities. It is the policy of the State to ensure protection of children under care in childcare facilities, and to encourage the improvement of childcare programs.

B.    It is the further intent of this subarticle that the freedom of religion of all citizens is inviolate. Nothing in this subarticle shall give any governmental agency jurisdiction or authority to regulate, supervise, or in any way be involved in any Sunday school, Sabbath school, religious services or any nursery service or other program conducted during religious or church services primarily for the convenience of those attending the services.

C.    Nothing in this subarticle shall create authority for the Department of Social Services Health and Environmental Control to influence or regulate the curriculum of childcare facilities.

Section 20-7-2720.    No person, corporation, partnership, voluntary association, or other organization may operate a private childcare center or group childcare home unless licensed to do so by the department.

Section 20-7-2725.    (A)    No childcare center, group childcare home, family childcare home, or church or religious childcare center may employ a person or engage the services of a caregiver who is required to register under the sex offender registry act pursuant to Section 23-3-430 or who has been convicted of:

(1)    a crime listed in Chapter 3 of Title 16, Offenses Against the Person;

(2)    a crime listed in Chapter 15 of Title 16, Offenses Against Morality and Decency;

(3)    the crime of contributing to the delinquency of a minor, contained in Section 16-17-490;

(4)    the felonies classified in Section 16-1-10(A), except that this prohibition does not apply to Section 56-5-2930, the Class F felony of driving under the influence pursuant to Section 56-5-2940(4) if the conviction occurred at least ten years prior to the application for employment and the following conditions are met:

(a)    the person has not been convicted in this State or any other state of an alcohol or drug violation during the previous ten-year period;

(b)    the person has not been convicted of and has no charges pending in this State or any other state for a violation of driving while his license is canceled, suspended, or revoked during the previous ten-year period; and

(c)    the person has completed successfully an alcohol or drug assessment and treatment program provided by the South Carolina Department of Alcohol and Other Drug Abuse Services or an equivalent program designated by that agency.

A person who has been convicted of a first-offense violation of Section 56-5-2930 must not drive a motor vehicle or provide transportation while in the official course of his duties as an employee of a childcare center, group childcare home, family childcare home, or church or religious childcare center.

If the person subsequently is convicted of, receives a sentence upon a plea of guilty or of nolo contendere, or forfeits bail posted for a violation of Section 56-5-2930 or for a violation of another law or ordinance of this State or any other state or of a municipality of this State or any other state that prohibits a person from operating a motor vehicle while under the influence of intoxicating liquor, drugs, or narcotics, the person's employment must be terminated;

(5)    the offenses enumerated in Section 16-1-10(D); or

(6)    a criminal offense similar in nature to the crimes listed in this subsection committed in other jurisdictions or under federal law.

This section does not prohibit employment or provision of caregiver services when a conviction or plea of guilty or nolo contendere for one of the crimes enumerated in this subsection has been pardoned. However, notwithstanding the entry of a pardon, an operator or the department may consider all information available, including the person's pardoned convictions or pleas and the circumstances surrounding them, to determine whether the applicant is unfit or otherwise unsuited for employment or to provide caregiver services.

(B)    A person who has been convicted of a crime enumerated in subsection (A) who applies for employment with, is employed by, or is a caregiver at a childcare center, group childcare home, family childcare home, or church or religious childcare center is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned not more than one year, or both.

(C)    Application forms for employment at childcare centers, group childcare homes, family childcare homes, or church or religious childcare centers must include, at the top of the form in large bold type, a statement indicating that a person who has been convicted of a crime enumerated in subsection (A) who applies for employment with, is employed by, or seeks to provide caregiver services or is a caregiver at a facility is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned not more than one year, or both.

(D)    To be employed by or to provide caregiver services at a childcare facility licensed, registered, or approved under this subarticle, a person first shall undergo a state fingerprint review to be conducted by the State Law Enforcement Division to determine any state criminal history and a fingerprint review to be conducted by the Federal Bureau of Investigation to determine any other criminal history. A person may be provisionally employed or may provisionally provide caregiver services after the favorable completion of the State Law Enforcement Division fingerprint review and until such time as the Federal Bureau of Investigation review is completed if the person affirms in writing on a form provided by the department that he or she has not been convicted of any crime enumerated in this section. The results of the fingerprint reviews are valid and reviews are not required to be repeated as long as the person remains employed by or continues providing caregiver services in a childcare center, group childcare home, family childcare home, or church or religious childcare center; however, if a person is not employed or does not provide caregiver services for one year or longer, the fingerprint reviews must be repeated.

(E)    Unless otherwise required by law, this section does not apply to volunteers in a childcare center, group childcare home, family childcare home, or church or religious childcare center. For purposes of this section, 'volunteer' means a person who:

(1)    provides services without compensation relating to the operation of a childcare center, group childcare home, family childcare home, or church or religious childcare center; and

(2)    is in the presence of an operator, employee, or caregiver when providing direct care to children.

'Volunteer' includes, but is not limited to, parents, grandparents, students, and student teachers.

(F)    Unless otherwise required by law, this section applies to:

(1)    an employee who provides care to the child or children without the direct personal supervision of a person licensed, registered, or approved under this subarticle; and

(2)    any other employee at a facility licensed, registered, or approved under this subarticle who has direct access to a child outside the immediate presence of a person who has undergone the fingerprint review required under this subarticle.

Section 20-7-2730.    (A)    Application for license must be made on forms supplied by the department and in the manner it prescribes.

(B)    Before issuing a license the department shall conduct an investigation of the applicant and the proposed plan of care for children and for operating a private childcare center or group childcare home. If the results of the investigation verify that the provisions of this subarticle and the applicable regulations promulgated by the department are satisfied, a license must be issued. The applicant shall cooperate with the investigation and related inspections by providing access to the physical plant, records, excluding financial records, and staff. Failure to comply with the regulations promulgated by the department within the time period specified in this subarticle, if adequate notification of deficiencies has been made, is a ground for denial of application. The investigation and inspections may involve consideration of any facts, conditions, or circumstances relevant to the operation of the childcare center or group childcare home, including references and other information about the character and quality of the personnel.

(C)    Each license must be conditioned by stating clearly the name and address of the licensee, the address of the childcare center or group childcare home, and the number of children who may be served.

(D)    Failure of the department, except as provided in Section 20-7-3070, to approve or deny an application within ninety days results in the granting of a provisional license.

(E)    No license may be issued to an operator who has been convicted of:

(1)    a crime listed in Chapter 3 of Title 16, Offenses Against the Person;

(2)    a crime listed in Chapter 15 of Title 16, Offenses Against Morality and Decency;

(3)    the crime of contributing to the delinquency of a minor, contained in Section 16-17-490;

(4)    the felonies classified in Section 16-1-10(A);

(5)    the offenses enumerated in Section 16-1-10(D); or

(6)    a criminal offense similar in nature to the crimes listed in this subsection committed in other jurisdictions or under federal law.

This section does not prohibit licensing when a conviction or plea of guilty or nolo contendere for one of the crimes enumerated in this subsection has been pardoned. However, notwithstanding the entry of a pardon, the department may consider all information available, including the person's pardoned convictions or pleas and the circumstances surrounding them, to determine whether the person is unfit or otherwise unsuited to be an operator.

(F)    Application forms for licenses issued under this section must include, at the top of the form in large bold type, a statement indicating that a person who has been convicted of a crime enumerated in subsection (E) who applies for a license as an operator is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned not more than one year, or both.

(G)    A person applying for a license as an operator under this section shall undergo a state fingerprint review to be conducted by the State Law Enforcement Division to determine any state criminal history and a fingerprint review to be conducted by the Federal Bureau of Investigation to determine any other criminal history. The fingerprint reviews required by this subsection are not required upon each renewal.

(H)    A person applying for a license as an operator under this section or seeking employment or seeking to provide caregiver services at a facility licensed under this section shall undergo a state fingerprint review to be conducted by the State Law Enforcement Division to determine any state criminal history and a fingerprint review to be conducted by the Federal Bureau of Investigation to determine any other criminal history. The fingerprint reviews required by this subsection are not required upon each renewal unless the renewal coincides with employment of a new operator, employee, or caregiver.

Section 20-7-2735.    (A)    A caregiver who begins employment in a licensed or approved childcare center in South Carolina after June 30, 1994, must have at least a high school diploma or General Educational Development (GED) and at least six months' experience as a caregiver in a licensed or approved childcare facility. If a caregiver does not meet the experience requirements, the caregiver must be directly supervised for six months by a staff person with at least one year experience as a caregiver in a licensed or approved childcare facility. Within six months of being employed, a caregiver must have six clock hours of training in child growth and development and early childhood education or shall continue to be under the direct supervision of a caregiver who has at least one year of experience as a caregiver in a licensed or approved childcare facility.

(B)    A caregiver who has two years' experience as a caregiver in a licensed or approved facility and is employed as of July 1, 1994, in a licensed or approved childcare center in South Carolina is exempt from the high school diploma and General Educational Development (GED) requirements of subsection (A).

Section 20-7-3740.    (A)    Regular licenses may be renewed upon application and approval. Notification of a childcare center or group childcare home regarding renewal is the responsibility of the department.

(B)    Application for renewal must be made on forms supplied by the department in the manner it prescribes.

(C)    Before renewing a license the department shall conduct an investigation of the childcare center or group childcare home. If the results of the investigation verify that the provisions of this subarticle and the applicable regulations promulgated by the department are satisfied, the license must be renewed. The licensee shall cooperate with the investigation and related inspections by providing access to the physical plant, records, and staff. Failure to comply with the regulations promulgated by the department within the time period specified in this subarticle, if adequate notification of deficiencies has been made, is a ground for revocation of the license. The investigation and inspections may involve consideration of any facts, conditions, or circumstances relevant to the operation of the childcare center or group childcare home.

(D)    No license may be renewed for any operator who has been convicted of:

(1)    a crime listed in Chapter 3 of Title 16, Offenses Against the Person;

(2)    a crime listed in Chapter 15 of Title 16, Offenses Against Morality and Decency;

(3)    the crime of contributing to the delinquency of a minor, contained in Section 16-17-490;

(4)    the felonies classified in Section 16-1-10(A);

(5)    the offenses enumerated in Section 16-1-10(D); or

(6)    a criminal offense similar in nature to the crimes listed in this subsection committed in other jurisdictions or under federal law.

This section does not prohibit renewal when a conviction or plea of guilty or nolo contendere for one of the crimes enumerated in this subsection has been pardoned. However, notwithstanding the entry of a pardon, the department may consider all information available, including the person's pardoned convictions or pleas and the circumstances surrounding them, to determine whether the person is unfit or otherwise unsuited to be an operator.

(E)    Application forms for license renewals issued under this section must include, at the top of the form in large bold type, a statement indicating that a person who has been convicted of a crime enumerated in subsection (D) who applies for a license renewal as operator is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned not more than one year, or both.

(F)    A licensee seeking license renewal under this section, its employees, and its caregivers, who have not done so previously, on the first renewal after June 30, 1995, shall undergo a state fingerprint review to be conducted by the State Law Enforcement Division to determine any state criminal history and a fingerprint review to be conducted by the Federal Bureau of Investigation to determine any other criminal history.

(G)    No facility may employ or engage the services of an employee or caregiver who has been convicted of one of the crimes listed in this section.

Section 20-7-2750.    Whenever the department finds upon inspection that a private childcare center or group childcare home is not complying with any applicable licensing regulations, the department shall notify the operator to correct these deficiencies.

A.    Every correction notice must be in writing and must include a statement of the deficiencies found, the period within which the deficiencies must be corrected and the provision of the subarticle and regulations relied upon. The period must be reasonable and, except when the department finds an emergency dangerous to the health or safety of children, not less than thirty days from the receipt of the notice.

B.    Within two weeks of receipt of the notice, the operator of the facility may file a written request with the department for administrative reconsideration of the notice or any portion of the notice.

C.    The department shall grant or deny a written request within seven days of filing and shall notify the operator of the grant or denial.

D.    In the event that the operator of the facility fails to correct deficiencies within the period prescribed, the department may revoke the license.

Section 20-7-2760.    A.    An applicant who has been denied a license by the department must be given prompt written notice by certified or registered mail. The notice shall indicate the reasons for the proposed action and shall inform the applicant of the right to appeal the decision to the director in writing within thirty days after the receipt of notice of denial. An appeal from the final decision of the director may be taken to an administrative law judge pursuant to the Administrative Procedures Act.

B.    A licensee whose application for renewal is denied or whose license is about to be revoked must be given written notice by certified or registered mail. The notice must contain the reasons for the proposed action and shall inform the licensee of the right to appeal the decision to the director or his designee in writing within thirty calendar days after the receipt of the notice. An appeal from the final decision of the director may be taken to an administrative law judge pursuant to the Administrative Procedures Act.

C.    At the hearing provided for in this section, the applicant or licensee may be represented by counsel and has the right to call, examine, and cross-examine witnesses and to otherwise introduce evidence. Parents appearing at the hearing may also be represented by counsel. The hearing examiner is empowered to require the presence of witnesses and evidence by subpoena on behalf of the appellant or department. The final decision of the department must be in writing, must contain the department's findings of fact and rulings of law, and must be mailed to the parties to the proceedings by certified or registered mail to their last known addresses as may be shown in the application, or otherwise. A full and complete record must be kept of all proceedings, and all testimony must be reported but need not be transcribed unless the department's decision is appealed, or a transcript is requested by an interested party. Upon an appeal, the department shall furnish to any appellant, free of charges, a certified copy of the transcript of all evidentiary proceedings before it. Other parties shall pay the cost of transcripts prepared at their request.

D.    The decision of the department is final unless appealed by a party to an administrative law judge pursuant to the Administrative Procedures Act.

Section 20-7-2770.    Every childcare center or group childcare home shall maintain a register setting forth essential facts concerning each child enrolled under the age of eighteen years.

Section 20-7-2780.    A.     Each childcare center or group childcare home shall maintain its current license displayed in a prominent place at all times and must state its license number in all advertisements of the childcare center or group daycare home.

B.    No license may be transferred nor shall the location of any childcare center or group childcare home or place of performance of service be changed without the written consent of the department. The department shall consent to the change for a reasonable period of time when emergency conditions require it, so long as the new location or place of performance substantially conforms to state fire and health requirements.

C.    Upon occurrence of death of a child on the premises of a childcare center or group childcare home in which the child is enrolled or while under the constructive control of the holder of the license of the facility, it is the responsibility of the holder of the license to notify the department within forty-eight hours and follow up with a written report as soon as the stated cause of death is certified by the appropriate government official.

Section 20-7-2790.    Every operator or potential operator of a public childcare center or group childcare home must apply to the department for an investigation and a statement of standard conformity or approval, except those facilities designated in Section 20-7-2700.

Section 20-7-2800.    (A)    Application for a statement of standard conformity or approval must be made on forms supplied by the department and in the manner it prescribes.

(B)    Before issuing approval the department shall conduct an investigation of the applicant and the proposed plan of care for children and for operating a public childcare center or group childcare home. If the results of the investigation verify that the provisions of the subarticle and the applicable regulations promulgated by the department are satisfied, approval must be issued. The applicant shall cooperate with the investigation and inspections by providing access to the physical plant, records, and staff. The investigation and related inspections may involve consideration of any facts, conditions, or circumstances relevant to the operation of the childcare center or group childcare home, including references and other information about the character and quality of the personnel. If the childcare center or group childcare home fails to comply with the regulations promulgated by the department within the time period specified in this subarticle, if adequate notification regarding deficiencies has been given, the appropriate public officials of the state and local government must be notified.

(C)    A person applying for approval under this section shall undergo a state fingerprint review to be conducted by the State Law Enforcement Division to determine any state criminal history and a fingerprint review to be conducted by the Federal Bureau of Investigation to determine any other criminal history. The fingerprint reviews required by this subsection are not required upon each renewal.

(D)    No approval may be granted under this section if the person applying for approval or the operator, an employee, or a caregiver of the facility has been convicted of:

(1)    a crime listed in Chapter 3 of Title 16, Offenses Against the Person;

(2)    a crime listed in Chapter 15 of Title 16, Offenses Against Morality and Decency;

(3)    the crime of contributing to the delinquency of a minor, contained in Section 16-17-490;

(4)    the felonies classified in Section 16-1-10(A);

(5)    the offenses enumerated in Section 16-1-10(D); or

(6)    a criminal offense similar in nature to the crimes in this subsection committed in other jurisdictions or under federal law.

This section does not prohibit approval when a conviction or plea of guilty or nolo contendere for one of the crimes enumerated in this subsection has been pardoned. However, notwithstanding the entry of a pardon, the department may consider all information available, including the person's pardoned convictions or pleas and the circumstances surrounding them, to determine whether the person is unfit or otherwise unsuited as an applicant or to be an operator, caregiver, or employee.

(E)    Application forms for a statement of standard conformity or approval issued under this section must include, at the top of the form in large bold type, a statement indicating that a person who has been convicted of a crime enumerated in subsection (D) who applies for approval is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned not more than one year, or both.

(F)    Application forms for a statement of standard conformity or approval issued under this chapter by the department and application forms for employment at individual public childcare centers or group childcare homes must include, at the top of the form in large bold type, a statement indicating that a person who has been convicted of one of the crimes listed in this section who applies for a license as operator, applies for employment with, is employed by, seeks to provide caregiver services with, or is a caregiver at a facility is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned not more than one year, or both.

Section 20-7-2810.    (A)    Regular approvals may be renewed upon application and approval. Notification of a childcare center or group childcare home regarding renewal is the responsibility of the department.

(B)    Application for renewal must be made on forms supplied by the department and in the manner it prescribes.

(C)    Before renewing an approval the department shall conduct an investigation of the childcare center or group childcare home. If the results of the investigation verify that the provisions of this subarticle and the applicable regulations promulgated by the department are satisfied, the approval must be renewed. The operator shall cooperate with the investigation and related inspections by providing access to the physical plant, records, and staff. If the operator's statement of approval cannot be renewed, the appropriate public officials must be notified.

(D)    A person applying for approval renewal under this section, a person who will operate the facility, and its employees and caregivers, who have not done so previously, on the first approval renewal after June 30, 1995, shall undergo a state fingerprint review to be conducted by the State Law Enforcement Division to determine any state criminal history and a fingerprint review to be conducted by the Federal Bureau of Investigation to determine any other criminal history.

No approval may be renewed under this section if the person applying for renewal, the operator of the facility, or an employee or a caregiver has been convicted of:

(1)    a crime listed in Chapter 3 of Title 16, Offenses Against the Person;

(2)    a crime listed in Chapter 15 of Title 16, Offenses Against Morality and Decency;

(3)    the crime of contributing to the delinquency of a minor, contained in Section 16-17-490;

(4)    the felonies classified in Section 16-1-10(A);

(5)    the offenses enumerated in Section 16-1-10(D); or

(6)    a criminal offense similar in nature to the crimes listed in this subsection committed in other jurisdictions or under federal law.

This section does not prohibit renewal when a conviction or plea of guilty or nolo contendere for one of the crimes enumerated in this subsection has been pardoned. However, notwithstanding the entry of a pardon, the department may consider all information available, including the person's pardoned convictions or pleas and the circumstances surrounding them, to determine whether the person is unfit or otherwise unsuited as an applicant or to be an operator, caregiver, or employee.

(E)    Application forms for renewal of a statement of standard conformity or approval issued under this section must include, at the top of the form in large bold type, a statement indicating that a person who has been convicted of a crime enumerated in subsection (D) who applies for approval renewal is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned not more than one year, or both.

(F)    No facility may employ or engage the services of an employee or a caregiver who has been convicted of one of the crimes listed in this section.

(G)    Application forms for renewal of a statement of standard conformity or approval issued under this chapter by the department for individual public childcare centers or group childcare homes must include, at the top of the form in large bold type, a statement indicating that a person who has been convicted of one of the crimes listed in this section who applies for a license as operator, applies for employment with, is employed by, seeks to provide caregiver services with, or is a caregiver at a facility is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned not more than one year, or both.

Section 20-7-2820.    Whenever the department finds upon inspection that a public childcare center or group childcare home is not complying with any applicable regulations, the department may notify the operator to correct the deficiencies.

A.    Every correction notice must be in writing and shall include a statement of the deficiencies found, the period within which the deficiencies must be corrected and the provision of the subarticle and regulations relied upon. The period must be reasonable and, except when the department finds an emergency dangerous to the health or safety of children, not less than thirty days from the receipt of the notice.

B.    Within two weeks of receipt of the notice, the operator of the public childcare center or group childcare home may file a written request with the department for administrative reconsideration of the notice or any portion of the notice.

C.    The department shall grant or deny a written request within seven days of filing and shall notify the operator of the childcare center or group childcare home of the grant or denial.

D.    In the event that the operator fails to correct any deficiency within the period prescribed for correction, the department shall notify the appropriate public officials.

Section 20-7-2830.    A.     An applicant or operator who has been denied approval or renewal of approval by the department must be given prompt written notice of the denial, which shall include a statement of the reasons for the denial. The notice must also inform the applicant or operator that it may, within thirty days after the receipt of the notice of denial, appeal the denial by making a written request to the director or his designee for an opportunity to show cause why its application should not be denied.

B.    Upon receiving a written petition, the director or his designee shall give the applicant or operator reasonable notice and an opportunity for a prompt, informal meeting with the director or his designee with respect to the action by the department, and an opportunity to submit written material. On the basis of the available evidence, including information obtained at the informal meeting and from the written material, the director or his designee shall decide whether the application must be granted for approval, provisional approval, or denied. The decision of the director or his designee must be in writing, must contain findings of fact and must be mailed to the parties to the proceedings by certified or registered mail. Notification of the decision must be sent to the Governor and appropriate officials of the state or local government.

Section 20-7-2840.    (A)    As used in this subarticle, 'family childcare home' means a facility within a residence occupied by the operator in which childcare regularly is provided for no more than six children, unattended by a parent or legal guardian, including those children living in the home and the children received for childcare who are related to the resident caregiver. However, an occupied residence in which childcare is provided only for a child or children related to the resident caregiver or only for the child or children of one unrelated family, or only for a combination of these children, is not a family childcare home.

(B)    An operator of a family childcare home shall register with the department within six months of June 13, 1977.

(C)    A family childcare home which elects to participate in a federal program which requires licensing as a prerequisite to participation may elect to be licensed under the procedures in Section 20-7-2850. A family childcare home electing licensing shall demonstrate compliance with the suggested standards developed by the department under Section 20-7-2980 and shall comply with provisions of Sections 20-7-2730 and 20-7-2740 relating to criminal history conviction records checks upon original licensing and upon renewal. Operators and caregivers of licensed family childcare homes are held to the standards in Sections 20-7-2730 and 20-7-2740 regarding criminal convictions.

Section 20-7-2850.    (A)    Registration must be completed on forms supplied by the department and in the manner it prescribes.

(B)    Before becoming a registered operator the applicant shall:

(1)    sign a statement that he has read the suggested standards developed by the department under Section 20-7-2980;

(2)    furnish the department with a signed statement by each consumer parent verifying that the operator has provided each consumer parent with a copy of the suggested standards for family childcare homes and the procedures for filing complaints;

(3)    upon request, provide the department with any facts, conditions, or circumstances relevant to the operation of the family childcare home, including references and other information regarding the character of the family childcare home operator.

(C)    A person applying to become a registered operator of a family childcare home under this section and a person fifteen years of age or older living in the family childcare home shall undergo a state fingerprint review to be conducted by the State Law Enforcement Division to determine any state criminal history and a fingerprint review to be conducted by the Federal Bureau of Investigation to determine any other criminal history. The fingerprint reviews required by this subsection are not required upon each renewal.

(D)    No applicant may be registered as an operator if the person, an employee, a caregiver, or a person fifteen years of age or older living in the family childcare home has been convicted of:

(1)    a crime listed in Chapter 3 of Title 16, Offenses Against the Person;

(2)    a crime listed in Chapter 15 of Title 16, Offenses Against Morality and Decency;

(3)    the crime of contributing to the delinquency of a minor, contained in Section 16-17-490;

(4)    the felonies classified in Section 16-1-10(A);

(5)    the offenses enumerated in Section 16-1-10(D); or

(6)    a criminal offense similar in nature to the crimes listed in this subsection committed in other jurisdictions or under federal law.

This section does not operate to prohibit registration or renewal when a conviction or plea of guilty or nolo contendere for one of the crimes enumerated in this subsection has been pardoned. However, notwithstanding the entry of a pardon, the department may consider all information available, including the person's pardoned convictions or pleas and the circumstances surrounding them, to determine whether the person is unfit or otherwise unsuited to be an operator, caregiver, employee, or to be living in the family daycare home.

(E)    Application forms for registration issued under this section must include, at the top of the form in large bold type, a statement indicating that a person who has been convicted of a crime enumerated in subsection (D) who applies for registration as operator or a person who applies for registration as an operator who has a person fifteen years of age or older living in the family childcare home who has been convicted of a crime enumerated in subsection (D) is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned not more than one year, or both.

(F)    Application forms for registration issued under this chapter by the department and application forms for employment at a family childcare home must include, at the top of the form in large bold type, a statement indicating that a person who has been convicted of one of the crimes listed in this section who applies for a license as operator, applies for employment with, is employed by, seeks to provide caregiver services with, or is a caregiver at a facility is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned not more than one year, or both.

Section 20-7-2860.    (A)    A statement of registration must be issued when the family childcare operator satisfactorily completes the procedures prescribed by this subarticle. The current statement must be displayed in a prominent place in the facility at all times and the registration number must be stated in all advertisements of the family childcare home.

(B)    Registration expires at the end of one year from the date of issuance of the statement of registration. Registration may be renewed according to the procedures developed by the department.

(C)    A person applying for renewal of registration as an operator of a family childcare home registered under this chapter and a person employed or providing caregiver services at a family childcare home registered under this chapter, who has not done so previously, on the first renewal after June 30, 1996, shall undergo a state fingerprint review to be conducted by the State Law Enforcement Division to determine any state criminal history and a fingerprint review to be conducted by the Federal Bureau of Investigation to determine any other criminal history.

Application forms for registration renewal issued under this section must include, at the top of the form in large bold type, a statement indicating that a person who has been convicted of a crime enumerated in Section 20-7-2850(D) who applies for registration as an operator or a person who applies for registration as an operator who has a person fifteen years of age or older living in the home who has been convicted of a crime enumerated in Section 20-7-2850(D) is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned not more than one year, or both.

(D)    Application forms for registration renewal issued under this chapter by the department for a family childcare home must include, at the top of the form in large bold type, a statement indicating that a person who has been convicted of one of the crimes listed in this section who applies for a license as operator, applies for employment with, is employed by, seeks to provide caregiver services with, or is a caregiver at a facility is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned not more than one year, or both.

(E)    The department may withdraw the statement of registration if one or more of the following apply:

(1)    The health and safety of the children require withdrawal.

(2)    The facility has enrolled children beyond the limits defined in this subarticle.

(3)    The operator fails to comply with the registration procedures provided in this subarticle.

Section 20-7-2870.    The department shall visit the facility when concerns are expressed by the community regarding the health and safety of the children, child abuse, or enrollment beyond the limits set forth in this subarticle.

A.    If the concern is in regard to the health and safety of the children, the department may call on other appropriate agencies (i.e., State Department of Health and Environmental Control, Office of the State Fire Marshal) as necessary to conduct an inspection.

B.    If the concern indicates that the child has been abused, the department shall carry out its responsibility as authorized under Article 7 of this chapter.

C.    If the visits and inspections verify conditions detrimental to the health and safety of the children or overenrollment, the department shall carry out its responsibility as authorized by Section 20-7-2860(C) and Section 20-7-3010.

Section 20-7-2880.    (a)    A registrant whose statement of registration has been withdrawn by the department must be given written notice by certified or registered mail. The notice must contain the reasons for the proposed action and must inform the registrant of the right to appeal the decision to the director or his designee in writing within thirty calendar days after the receipt of the notice. Upon receiving a written appeal the director or his designee shall give the registrant reasonable notice and an opportunity for a prompt hearing before the director or his designee. On the basis of the evidence adduced at the hearing, the director or his designee shall make the final decision of the department as to whether the statement of registration must be withdrawn. If no written appeal is made, the statement of registration must be withdrawn as of the termination of the thirty-day period.

(b)    At the hearing provided for in this section, the registrant may be represented by counsel, and has the right to call, examine, and cross-examine witnesses, and to otherwise introduce evidence. Parents appearing at the hearing may also be represented by counsel. The director is empowered to require the presence of witnesses and evidence by subpoena on behalf of the appellant or department. The final decision of the department must be in writing, must contain the department's findings of fact and rulings of law and must be mailed to the parties to the proceedings by certified or registered mail. A full and complete record must be kept of all proceedings, and all testimony must be reported and need not be transcribed unless the decision is appealed, or a transcript is requested by an interested party. Upon an appeal, the department shall furnish to any appellate, free of charge, a certified copy of the transcript of all evidentiary proceedings before it. Other parties shall pay the cost of transcripts.

(c)    The decision of the department is final unless appealed by a party pursuant to the Administrative Procedures Act.

Section 20-7-2890.    The department shall offer consultation through employed staff or other qualified persons to assist a potential applicant, an applicant or registered operator in meeting and maintaining the suggested standards for family childcare homes.

Section 20-7-2900.    (A)    No church congregation or established religious denomination or religious college or university which does not receive state or federal financial assistance for childcare services may operate a childcare center or group childcare home unless it complies with the requirements for registration and inspection and the regulations for health and fire safety as set forth in Sections 20-7-2910 through 20-7-2975 and requirements applicable to private and public childcare centers and group childcare homes for floor space, child-staff ratios, and staff training. Application for registration must be made on forms supplied by the department and in the manner it prescribes. Registration expires two years from the date of issuance of the statement of registration. Registration may be renewed according to the procedures developed by the department.

(B)    Before issuing a registration, the department shall conduct an investigation of the applicant. This investigation is limited to:

(1)    the results of the criminal history review required by subsection (G);

(2)    the requirements for registration and inspection and the regulations for health and fire safety provided for in Sections 20-7-2910 through 20-7-2975; and

(3)    requirements applicable to private and public childcare centers and group childcare homes for floor space, child-staff ratios, and staff training.

(C)    No license or registration may be issued to a church congregation, established religious denomination, or religious college or university if a person who provides service as an operator, caregiver, or employee at the childcare facility has been convicted of:

(1)    a crime listed in Chapter 3 of Title 16, Offenses Against the Person;

(2)    a crime listed in Chapter 15 of Title 16, Offenses Against Morality and Decency;

(3)    the crime of contributing to the delinquency of a minor, contained in Section 16-17-490;

(4)    the felonies classified in Section 16-1-10(A);

(5)    the offenses enumerated in Section 16-1-10(D); or

(6)    a criminal offense similar in nature to the crimes listed in this subsection committed in other jurisdictions or under federal law.

This section does not prohibit licensing, registration, or the renewal of a license or registration when a conviction or plea of guilty or nolo contendere for one of the crimes enumerated in this subsection has been pardoned. However, notwithstanding the entry of a pardon, the department may consider all information available, including the person's pardoned convictions or pleas and the circumstances surrounding them, to determine whether the person is unfit or otherwise unsuited to be an operator, caregiver, or employee.

(D)    Application forms for licensure or registration issued under this subarticle must include, at the top of the form in large bold type, a statement indicating that a person who has been convicted of a crime enumerated in this section who applies for a license or registration as operator is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned not more than one year, or both.

(E)    A person applying for a license or registration as an operator of a church or religious childcare center shall undergo a state fingerprint review to be conducted by the State Law Enforcement Division to determine any state criminal history and a fingerprint review to be conducted by the Federal Bureau of Investigation to determine any other criminal history. The fingerprint reviews required by this subsection are not required upon each renewal.

(F)    Application forms for licensure or registration issued under this chapter by the department and application forms for employment at a facility operated by a church congregation, established religious denomination, or religious college or university must include, at the top of the form in large bold type, a statement indicating that a person who has been convicted of one of the crimes listed in this section who applies for a license as operator, applies for employment with, is employed by, seeks to provide caregiver services with, or is a caregiver at a facility is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned not more than one year, or both.

(G)    A person applying for a license or registration as an operator of a church or religious childcare center or seeking employment or seeking to provide caregiver services at a church or religious childcare center shall undergo a state fingerprint review to be conducted by the State Law Enforcement Division to determine any state criminal history and a fingerprint review to be conducted by the Federal Bureau of Investigation to determine any other criminal history. The fingerprint reviews required by this subsection are not required upon each renewal unless the renewal coincides with employment of a new operator, employee, or caregiver.

(H)    A person applying for renewal of a license or registration as an operator of a church or religious childcare center licensed or registered under this chapter and a person employed or registered under this chapter, who has not done so previously, on the first renewal after June 30, 1996, shall undergo a state fingerprint review to be conducted by the State Law Enforcement Division to determine any state criminal history and a fingerprint review to be conducted by the Federal Bureau of Investigation to determine any other criminal history.

Section 20-7-2902.    Notwithstanding the staff training requirements of Section 20-7-2900(A) and (B)(3), the department may not prescribe the curriculum for staff training, other than curriculum addressing administration, child growth and development, and health and safety, for a church congregation, established religious denomination, or religious college or university, childcare center or group childcare home. Additionally, the department may not prescribe the content of curriculum activities for children provided by these childcare centers or group childcare homes.

Section 20-7-2905.    For conducting a state criminal history review as required by this subarticle, the State Law Enforcement Division may not impose a fee greater than the fee imposed by the Federal Bureau of Investigation for conducting such a review.

Section 20-7-2910.    The childcare operator shall submit a formal request for inspection of the childcare facility to the department. The department shall request the appropriate state health and fire safety agencies to conduct an inspection of the facility before renewal of the registration and more often if necessary to ensure compliance with health and fire safety regulations. The department shall register the childcare facility upon notification from health and fire safety agencies that the childcare facility is in compliance with these regulations and the requirements of Section 20-7-2900.

The applicable regulations must be the same health and fire safety regulations applied to other facilities regulated under this subarticle.

Section 20-7-2915.    A statement of registration must be issued when the church or religious childcare operator or group childcare home operator satisfactorily completes the procedures prescribed by this subarticle. An application for a statement of registration must include the name and address of the director, the address of the facility, and the number of children who may be served. Failure of the department to approve or deny an application within ninety days results in the granting of a provisional registration. The current statement of registration must be displayed in a prominent place in the facility at all times, and the registration number must be stated in all advertisements of the church or religious childcare center or group childcare home.

Section 20-7-2920.    The department may seek an injunction against the continuing operation of a childcare center or group childcare home in the family court having jurisdiction over the county in which the facility is located when the facility is considered to be out of compliance with the provisions of Sections 20-7-2900 and 20-7-2910.

Section 20-7-2930.    Whenever the health or fire safety agency finds upon inspection that a childcare center or group childcare home is not complying with the applicable regulations, the appropriate agency shall notify the department. The department shall then request the operator to correct such deficiencies.

A.    Every correction notice must be in writing and must include a statement of the deficiencies found, the period within which the deficiencies must be corrected and the provision of the subarticle and regulations relied upon. The period must be reasonable and, except when the appropriate agency finds an emergency dangerous to the health or safety of children, not less than thirty days from the receipt of the notices.

B.    Within two weeks of receipt of the notice, the operator of the facility may file a written request with the department for administrative reconsideration of the notice or any portion of the notice.

C.    The department shall grant or deny a written request and shall notify the operator of action taken.

D.    In the event that the operator of the facility fails to correct deficiencies within the period prescribed, the department may suspend the registration of the facility to be effective thirty days after date of notice. An appeal may be taken pursuant to the Administrative Procedures Act.

Section 20-7-2940.    A.     When the registration of a facility has been suspended, the operator must be given prompt written notice. The notice must indicate the reasons for the suspension and inform the operator of the right to appeal the decision through administrative channels to the department and according to established appeals procedure for the department.

B.    Upon appeal, the decision of the department is final unless appealed by a party pursuant to the Administrative Procedures Act.

Section 20-7-2970.    An operator violating the provisions of Sections 20-7-2910 through 20-7-2970 is guilty of a misdemeanor and, upon conviction, must be punished by a fine not exceeding one thousand five hundred dollars or imprisonment not exceeding six months, or both.

Section 20-7-2975.    During the hours of operation all childcare facilities, except registered family childcare homes, must have on the premises at least one caregiver with a current certificate for the provision of basic first aid and child-infant cardiopulmonary resuscitation.

Section 20-7-2980.    A.        The department shall with the advice and consent of the Advisory Committee develop and promulgate regulations depending upon the nature of services to be provided for the operation and maintenance of childcare centers and group childcare homes. The department with the advice of the Advisory Committee shall develop suggested standards which shall serve as guidelines for the operators of family childcare homes and the parents of children who use the service. In developing these regulations and suggested standards, the department shall consult with:

(1)    Other state agencies, including the State Department of Health and Environmental Control, the Office of the State Fire Marshal, and the Office of the Attorney General.

(2)    Parents, guardians, or custodians of children using the service.

(3)    Child advocacy groups.

(4)    The State Advisory Committee on the Regulation of Childcare Facilities established by this subarticle.

(5)    Operators of childcare facilities from all sectors.

(6)    Professionals in fields relevant to childcare and development.

(7)    Employers of parents, guardians, or custodians of children using the service.

Draft formulations must be widely circulated for criticism and comment.

B.    The regulations for operating and maintaining childcare centers and group childcare homes and the suggested standards for family childcare homes must be designed to promote the health, safety, and welfare of the children who are to be served by assuring safe and adequate physical surroundings and healthful food; by assuring supervision and care of the children by capable, qualified personnel of sufficient number. The regulations with respect to licensing and approval, and the suggested standards with respect to registration of family childcare homes must be designed to promote the proper and efficient processing of matters within the cognizance of the department and to assure applicants, licensees, approved operators, and registrants fair and expeditious treatment under the law.

C.    The department shall conduct a comprehensive review of its licensing and approval regulations and family childcare home suggested standards at least once each three years.

D.    No regulations for childcare facilities may exceed policies or minimum standards set for public childcare facilities regulated under this subarticle.

E.    The department shall submit final drafts of its regulations to the Legislative Council as proposed regulations, and the Administrative Procedures Act Sections 1-23-10 et seq., governs their promulgation.

F.    The department shall establish a procedure for its representatives to follow in receiving and recording complaints. Standard forms may be produced and made available to parents and users of facilities upon request to the department. A copy of any complaint must be made available to the involved operator immediately upon his request.

Section 20-7-2990.    A. In exercising the powers of licensing, approving, renewing, revoking, or making provisional licenses and approvals, the department shall investigate and inspect licensees and approved operators and applicants for a license or an approval. The authorized representative of the department may visit a childcare center or group childcare home anytime during the hours of operation for purposes of investigations and inspections. In conducting investigations and inspections, the department may call on political subdivisions and governmental agencies for appropriate assistance within their authorized fields. The inspection of the health and fire safety of childcare centers and group childcare homes must be completed upon the request of the department by the appropriate agencies (i.e., Department of Health and Environmental Control, the Office of the State Fire Marshal, or local authorities). Inspection reports completed by state agencies and local authorities must be furnished to the department and become a part of its determination of conformity for licensing and approval. After careful consideration of the reports and consultation where necessary, the department shall assume responsibility for the final determination of licensing, approving, renewing, revoking, or making provisional licenses and approvals.

B.    Before issuing a license or approval the department shall conduct an investigation of the applicant and the proposed plan of care for children and for operating a childcare center or a group childcare home. If the results of the investigation satisfy the department that the provisions of this subarticle and the applicable regulations promulgated by the department are satisfied, a license or approval must be issued.

Section 20-7-3000.    The department shall offer consultation through employed staff or other qualified person to assist applicants and operators in meeting and maintaining regulations.

Section 20-7-3005.    At the time of initial licensing, approval, or registration a childcare facility must provide proof of conformity or authorized nonconformity with county or municipal zoning ordinances or resolutions. The department may impose conditions on the license, approval, or registration consistent with restrictions imposed by zoning authorities.

Section 20-7-3010.    The department is empowered to seek an injunction against the continuing operation of a childcare facility in the family court having jurisdiction over the county in which the facility is located:

(1)    when a facility is operating without a license or statement of registration;

(2)    when there is any violation of this subarticle or of the regulations promulgated by the department which threatens serious harm to children in the childcare facility;

(3)    when an operator has repeatedly violated this subarticle or the regulations of the department.

Section 20-7-3020.    A.     The department has power to issue a provisional registration, provisional license, or provisional approval only when the department is satisfied that (1) the regulations can and will be met within a reasonable time, and (2) the deviations do not seriously threaten the health or safety of the children. A provisional registration, provisional license, or provisional approval, may be extended for a period as may be determined by the department.

B.    Except as noted in subsection c. of this section, no provisional license or provisional approval may be issued effective for any longer than one year.

C.    Any facility granted a license or exempt from obtaining a license under the act previously in effect in this State and which does not qualify for a regular license under this subarticle must be granted a provisional license in accord with subsection a. of this section. The provisional license may be issued without regard to the time limit of subsection b. of this section. No provisional license issued under subsection c. is effective, either by its initial issue or by renewal, for a period greater than three years.

Section 20-7-3030.    Upon request of an applicant or operator, the department shall offer consultation to address any aspect of compliance with this subarticle or the regulations promulgated under this subarticle. Consultation includes, but is not limited to, review and comment on drawings and specifications related to construction and renovations proposed by a facility.

Section 20-7-3040.    A.     A State Advisory Committee on the Regulation of Childcare Facilities is established. It consists of seventeen members appointed by the Governor, in accordance with the following:

(1)    Five of the members appointed must be parents of children who are receiving childcare services at the time of appointment, with no less than three representing the entrepreneurial facilities.

(2)    Eight of the members appointed must be representative of owners and operators of childcare facilities, one of which must be an operator of a childcare home. No less than five other appointees must be operators of facilities subject to regulation who are actively engaged in the operation for profit.

(3)    One member appointed shall represent the educational community of the State.

Nominees for membership on the advisory committee pursuant to items (1), (2), and (3) must be made from lists furnished the Governor by South Carolina organizations representing the various types of childcare facilities defined in this subarticle.

(4)    One member appointed shall represent the business community of the State. Nominees for membership pursuant to this item must be made from lists furnished the Governor by the South Carolina Chamber of Commerce.

(5)    Two members appointed shall represent church-operated childcare centers, one of whom must be an operator of a church childcare center and one of whom must be a parent of a child who is receiving childcare services in a church-operated childcare center at the time of appointment.

B.    Members shall serve for terms of three years and until their successors are appointed and qualify, except that of those initially appointed five shall serve for one year, five for two years, and five for three years. Vacancies must be filled in the manner of the original appointment for the unexpired portion of the term only. Reappointment to serve a full term may ensue at the discretion of the Governor, however, no member may be permitted to succeed himself after serving a full term.

C.    The chairman of the committee must be designated by the Governor from among the appointees selected pursuant to the provisions of items (1) and (2) of subsection a. of this section.

Section 20-7-3050.    The State Advisory Committee on the Regulation of Childcare Facilities shall:

A.    Review changes in the regulations and suggested standards proposed by the director or his designee and make recommendations on these changes to the director or his designee. The committee shall evaluate the regulations and suggested standards at the three-year review period (subsection c. of Section 20-7-2980) and recommend necessary changes. No regulation may be promulgated if the standard has been disapproved by a simple majority of the committee.

B.    Advise the department regarding the improvement of the regulation of childcare facilities.

C.    Advise the department on matters of regulatory policy, planning, and priorities.

D.    As it considers necessary, hold a public hearing at least thirty days before adoption of the regulations.

E.    Plan with the department for the procedures to be used in notifying licensees, approved operators, and registrants regarding regulatory changes sixty days before intended promulgation.

F.    Maintain through the department the essential liaison with other departments and agencies of state and local government so as to preclude imposition of duplicate requirements upon operators subject to regulations under this subarticle.

G.    Act to move the adoption of its recommendations and other pertinent disposition of matters before it by decision of a simple majority of those members present and voting, provided there is a quorum of eight members.

Section 20-7-3055.    The provisions of Sections 20-7-2980 and 20-7-3050(a) concerning the review authority and the promulgation of regulations and standards upon the advice and consent of the State Advisory Committee on the Regulation of Childcare Facilities are waived. However, nothing in this section affects the regulation of childcare facilities which choose not to receive federal funding.

Section 20-7-3060.    The department shall provide reasonable secretarial and administrative support to the advisory committee.

Section 20-7-3070.    In order to provide for the gradual implementation of the licensing, approval, and registration programs, each childcare facility not licensed under the act previously in effect in this State must apply to the department for licensing, approval, or statement of registration within six months of June 13, 1977. The department shall have one year from June 13, 1977 to take action to issue or deny license or approval of childcare centers and group childcare homes or issue a statement of registration to family childcare homes.

Section 20-7-3080.    The Department of Social Services Health and Environmental Control in conjunction with existing training regulations shall make available to childcare owners and operators staff training on domestic violence including, but not limited to:

(1)    the nature, extent, and causes of domestic and family violence;

(2)    issues of domestic and family violence concerning children;

(3)    prevention of the use of violence by children;

(4)    sensitivity to gender bias and cultural, racial, and sexual issues;

(5)    the lethality of domestic and family violence;

(6)    legal issues relating to domestic violence and child custody.

Section 20-7-3090.    A person violating the provisions of this subarticle is guilty of a misdemeanor and, upon conviction, must be punished by a fine not exceeding one thousand five hundred dollars or imprisonment not exceeding six months, or both.

Section 20-7-3092.    The fingerprint reviews required by this subarticle are not required of a certified education personnel who has undergone a fingerprint review pursuant to Section 59-26-40 or of a person licensed as a foster parent who has undergone a state and federal fingerprint review pursuant to Section 20-7-1640, and the results of these reviews have been submitted to the department and the person has remained employed since the review in certified education or licensed as a foster parent or the reviews have been conducted within the preceding year.

Section 20-7-3095.    It is a separate criminal offense, and a felony, for a person to unlawfully commit any of the offenses listed in Chapter 3 of Title 16, Offenses Against the Person, a crime listed in Chapter 15 of Title 16, Offenses Against Morality and Decency, or the crime of contributing to the delinquency of a minor contained in Section 16-17-490 while within a radius of one hundred yards of the grounds of a public or private childcare facility. A person who commits this offense must, upon conviction, be punished by a fine not to exceed ten thousand dollars or imprisonment not to exceed ten years or both, in addition to any other penalty imposed by law and not in lieu of any other penalty.

Section 20-7-3097.    (A)    Before the Department of Social Services Health and Environmental Control employs a person in its childcare licensing or child protective services divisions, the person shall undergo a state fingerprint review to be conducted by the State Law Enforcement Division to determine any state criminal history and a fingerprint review to be conducted by the Federal Bureau of Investigation to determine any other criminal history. No person may be employed in these divisions if the person has been convicted of or pled guilty or nolo contendere to any crime listed in Section 20-7-2725(A).

This section does not prohibit employment when a conviction or plea of guilty or nolo contendere for one of the crimes listed has been pardoned. However, notwithstanding the entry of a pardon, the department may consider all information available, including the person's pardoned convictions or pleas and the circumstances surrounding them, to determine whether the applicant is unfit or otherwise unsuited for employment.

(B)    Notwithstanding subsection (A) or any other provision of law, a person may be provisionally employed in the childcare licensing or child protective services divisions upon receipt and review of the results of the State Law Enforcement Division fingerprint review if the results show no convictions of the crimes referenced in subsection (A). Pending receipt of the results of the Federal Bureau of Investigation fingerprint review, the department must obtain from the prospective employee a written affirmation on a form provided by the department that the employee has not been convicted of any crime referenced in subsection (A).

(C)    A person who has been convicted of a crime referenced in subsection (A) who applies for employment with the childcare licensing or child protective services divisions is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned not more than one year, or both.

Section 20-7-3098.    At any time the department cites a childcare center, group childcare home, or family childcare home for a violation of this chapter or regulations promulgated pursuant to this chapter, the department shall provide the owner and operator of the center with a brochure stating, in language easily understood, the rights and procedures available to the owner or operator for a hearing in accordance with the department's fair hearing regulations and the rights and procedures available to appeal a decision rendered under the department's fair hearing process."

SECTION    17.    Chapter 30, Title 1 of the 1976 Code is amended by adding:

"Section 1-30-350.    (A)    It is the intent of the General Assembly in reorganizing and consolidating state agencies to streamline government and achieve administrative cost savings by combining administrative functions. In organizing a department, the director shall must place high priority on:

(a)    managerial leadership;

(b)    clear lines of authority;

(c)    customer service;

(d)    performance standards; and

(e)    staff training.

(B)    It is also the intent of the General Assembly in reorganizing state agencies that:

(1)    minimal disruption of services to the public occurs;

(2)    duplication of operations be eliminated;

(3)    similar services and programs be consolidated;

(4)    cost efficiency will be achieved;

(5)    program application and eligibility determination processes will be simplified and integrated to the fullest extent possible;

(6)    funds are put to maximum use for direct service delivery."

SECTION    18.    (A)    The Executive Director of the State Budget and Control Board shall:

(1)    assist in the implementation of this part and with the transfer and reorganization of the entities affected by this part and their personnel, funds, property and all other matters of transfer, including the impact of this reorganization on all general funds, federal funds, and other sources of funds of the entities affected by the reorganization;

(2)    provide for the orderly transfer of appropriated funds for the entities affected by this reorganization consistent with the provisions of this part.

(B)    The Commissioner of the Department of Health and Environmental Control may:

(1)    locate all or a portion of the agency's employees and programs in the same building as another office or at a location near or adjacent to the location of another health and human services office; and,

(2)    consolidate agency support services, including clerical and administrative support services and information resources support services, with support services provided to or by another health and human services office."

SECTION    19.    Chapter 25, Title 43 of the 1976 Code is amended to read:

Section 43-25-10.    (A)    There is hereby created the South Carolina Commission Division of Services for the Blind within the South Carolina State Agency of Vocational Rehabilitation. The Commission shall consist of seven members, one from each of the six Congressional Districts and one from the State at large, of whom three shall have a visual acuity not to exceed 20/200 . The Governor shall, with the advice and consent of the Senate, appoint the members of the Commission for terms of four years and until their successors are appointed and qualify. All vacancies shall be filled in the manner of the original appointment for the unexpired portion of the term only. The members of the Commission shall elect one of its members as chairman for a term of two years or until his successor has been elected. The chairman shall preside at the regular meetings of the Commission to be held at least once each month. The chairman may call a meeting when he deems it necessary to be held at a time to be determined by the Commission. The Commission shall appoint a commissioner and such other officers as it deems necessary, none of whom shall be a member of the Commission, and shall fix the compensation and prescribe the duties of such appointees. The members of the Commission shall receive no salary but shall be allowed the usual mileage, subsistence and per diem as authorized by law for commissions, committees and boards.

(B)    The South Carolina Commission for the Blind is abolished and all powers, duties, and responsibilities of the commission, not otherwise reserved for the Division of Services for the Blind, are transferred to and devolved upon the South Carolina State Agency of Vocational Rehabilitation.

(C)    The Director of the State Agency for Vocation Rehabilitation shall:

(1)    carry out the administrative responsibilities of this chapter, including appointing the Director of the Division of Services for the Blind who shall oversee the daily operations of the division;

(2)    upon consultation with the Division of Services for the Blind, promulgate regulations necessary to carry out the provisions of this chapter;

(3)    apply for, receive, and disburse funds from all governmental agencies, both state and federal, on behalf of the division; and accept gifts, grants, donations, devises, and bequests made for providing aid to the visually handicapped, including expenses of administration.

Section 43-25-30.    (A)    The Commission Division of Services for the Blind shall:

(1)    Promulgate rules and regulations as may be necessary to carry out the provisions of this chapter.

(2)    Apply for, receive and expend moneys from all governmental agencies, both State and Federal; and accept gifts, grants, donations, devises and bequests made for providing aid to the visually handicapped, including expenses of administration. All such funds shall be paid into the State Treasury.

(3)    submit to the Governor and publish an annual report showing the total amount of money disbursed, the total number of blind and visually handicapped persons who received services, and such other information as may be deemed advisable.;

(4)(2)    maintain a complete register of persons whose vision, with correcting lenses, does not exceed 20/200 which shall also must include the conditions, cause of loss of sight, capacity for educational and industrial training of each, and other pertinent facts.;

(5)(3)    maintain bureaus of information and industrial aid to assist the visually handicapped in finding employment and to teach them industries which may be followed in their homes, and to assist them in whatever manner may seem advisable to the Commission division in disposing of the products of their home industry.;

(6)(4)    make inquiries concerning the cause of loss of sight, learn what proportion of these cases are preventable and inaugurate and cooperate with the State in any measure as may seem wise.;

(7)(5)    cooperate with the State Department of Health and Environmental Control in the adoption and enforcement of proper preventive measures.;

(8)(6)    establish, equip, and maintain a center for vocational, industrial, and other training and employ qualified instructors in accordance with subsection (B). The center shall provide for orientation and adjustment for the visually handicapped. Training in such these centers shall must be limited to persons deemed determined to be eligible by the Commission division.;

(9)(7)    supervise and control all concession stands established and operated formerly by the State Department of Social Services and all concession stands established by the Commission. division;

(10)(8)    have the authority to enter into contracts with owners of private property for the purpose of installing concession stands, which shall must be under the control of the Commission. division;

(11)(9)    establish, supervise, and render totally operative and effective prevention of loss of sight programs using such those facilities in the State as the Commission division may deem consider necessary, including a mobile ophthalmological laboratory and office.;

(12)(10)    assist in the furtherance of the purposes of Sections 44-43-110 to 44-43-160 and 44-7-10.

(B)    The director of the division shall recruit, hire and fire, and evaluate employees of the division with the Director of the State Agency of Vocational Rehabilitation having final authority in these matters.

Section 43-25-35.    In addition to all funds appropriated to or allocated for the Division of Services for the Blind, twelve percent of Section 110 funds, federal grant appropriations, must be allocated to and disbursed by the State Agency of Vocational Rehabilitation to the division to carry out its responsibilities under this chapter.

Section 43-25-40.    The Commission Division of Services for the Blind shall designate the procedure to be followed and shall establish a register of ophthalmologists from which the applicant may select one to conduct a competent medical examination for determining the extent of his visual handicap. The Commission division shall pay for such examination.

Section 43-25-50.    The Commission Division of Services for the Blind may arrange for the examination of the eyes of visually handicapped persons and may secure and pay for medical and surgical treatment for such these persons whenever in the judgment of an ophthalmologist the eyes of such this person may be benefited thereby by this treatment. Whenever, upon examination by an ophthalmologist any, a person is found to have no vision or vision with glasses which is so defective as to prevent the performance of ordinary activities for which eyesight is essential, such the examining ophthalmologist shall, within thirty days, report the results of the examination to the Commission division.

Section 43-25-60.    The Commission Division of Services for the Blind may employ qualified itinerant teachers to assist teachers in public or private schools who are responsible for the teaching of visually handicapped students with visual handicaps. The itinerant teacher shall assist the public or private school teacher by providing methods and materials for teaching such student these students. The State Department of Education shall report to the Commission division the schools having visually handicapped students with visual handicaps. All principals or heads of private schools shall report to the Commission division the names of visually handicapped students with visual handicaps in attendance.

Section 43-25-70.    The Commission Division of Services for the Blind is empowered to operate concession stands in any State, county, or municipal building and in any state park and shall negotiate with the proper agency or governing body regarding the establishment of a concession on such property. In buildings where a stand existed on May 25, 1940, the person who was then operating such a the stand shall must not be removed, but when such the operator ceases to operate such the stand the concession for further operation shall must be granted to the Commission division. No rental or other charge shall may be required by the Commission division for the granting of an operation permit. Any rental payment or commission charged by the owner of private property for the location of such a stand shall must be collected from the operator of the stand by the Commission division. No charge shall may be made for the installation or operation of a concession stand or for the maintenance of equipment of a concession stand regardless of location.

Section 43-25-80.    Any sums appropriated by the General Assembly for treatment and training of the visually handicapped shall persons with visual handicaps must be kept by the State Treasurer in a fund for the treatment and training of the visually handicapped persons with visual handicaps and shall must be used to carry out the particular purpose assigned to it.

Section 43-25-90.    Every person aggrieved by an action of the Commission shall Division of Services for the Blind must be granted, upon request, a hearing before a hearing officer assigned by the Commission State Agency of Vocational Rehabilitation. The hearing officer shall not be a member of the Commission. The hearing officer shall have has authority to conduct hearings, to issue subpoenas requiring the attendance of witnesses and the production of records and other documents, to administer oaths, and to take testimony. An appeal may be taken from the decision of the hearing officer to the Commission for the blind. The Commission shall hold a hearing on the matter which shall be attended by at least three members. An appeal may be taken from the decision of the Commission to the court of common pleas for the county where the appellant resides and the matter shall be heard de novo in the court as a matter of equity. The appellant shall, within ten days after notice of the decision of the Commission, serve notice of appeal upon the chairman of the Commission, stating grounds upon which the appeal is founded and file such notice with the clerk of court to which such appeal is taken. Such appeal shall act as a supersedeas until it is finally determined. The clerk of court shall place the case upon the docket for trial Administrative Law Court in accordance with the Administrative Procedures Act.

Section 43-25-100.    The powers and duties of the Division for the Blind of the State Department of Social Services including, but not limited to, the distribution of talking book machines, vocational rehabilitation, and other special services for the visually handicapped persons with visual handicaps except those duties and responsibilities surrounding the administration of the State Federal Program of Aid to the Needy Blind shall be previously devolved upon the South Carolina Commission for the Blind are devolved upon the Division of Services for the Blind."

SECTION    20.    A.    Chapter 31, Title 43 of the 1976 Code is amended to read:

Section 43-31-10.    This chapter shall may be cited as 'The Vocational Rehabilitation Act of South Carolina'.

Section 43-31-20.    It is hereby declared to be the policy of this State to provide rehabilitation services to the extent needed and feasible, to eligible handicapped individuals with disabilities throughout the State, to the end that they may engage in useful and remunerative occupations to the extent of their capabilities, thereby increasing their social and economic well-being and that of their families, and the productive capacity of this State and nation, also thereby reducing the burden of dependency on families and taxpayers.

Section 43-31-30.    For the purposes of this chapter:

(1)    The term 'Agency' means the State Agency of Vocational Rehabilitation.

(2)    The term 'Commissioner 'Director' means the Commissioner Director of the State Agency of Vocational Rehabilitation appointed by the Agency.

(3)(a)    The term 'Vocational rehabilitation services' means diagnostic and related services, (including transportation), incidental to the determination of eligibility for, and the nature and the scope of, services to be provided; training, guidance, and placement services for physically handicapped individuals with disabilities; and, in the case of any such an individual found to require financial assistance with respect thereto to his or her disability, after full consideration of his or her eligibility for any similar benefit by way of pension, compensation, and insurance, any other goods and services necessary to render such the individual fit to engage in a remunerative occupation, (including remunerative homebound work), and including the following physical restoration and other goods and services:

(a)(i)    corrective surgery or therapeutic treatment necessary to correct or substantially modify a physical or mental condition which is stable or slowly progressive and constitutes a substantial handicap impediment to employment, but is of such a nature that such correction or modification may reasonably be expected to eliminate or substantially reduce such handicap the impediment within a reasonable length of time;

(b)(ii)    necessary hospitalization in connection with surgery or treatment specified in paragraph (a) of this subsection subitem (i);

(c)(iii)    such prosthetic devices as are essential to obtaining or retaining employment;

(d)(iv)    maintenance shall must be furnished only in order to enable an individual to derive the full benefit of other vocational rehabilitation services being provided;

(e)(v)    tools, equipment, initial stocks and supplies, (including equipment and initial stocks and supplies for vending stands), and books and training materials, to any or all of which the State may retain legal title; and

(f)(vi)    transportation, (except where necessary in connection with determination of eligibility or nature and scope of services); and

(vii)    occupational licenses.

Such term         (b)    Vocational rehabilitation services also includes include:

(g)(i)    the acquisition of vending stands or other equipment and initial stocks and supplies for use by severely handicapped individuals with severe disabilities in any type of small business, the operation of which will be improved through management and supervision by the State agency; and

(h)(ii)    the establishment of public and other nonprofit rehabilitation facilities to provide services for physically handicapped individuals with disabilities and the establishment of public and other nonprofit workshops for the severely handicapped individuals with severe disabilities.

(4)    The term 'physically handicapped 'Individual with a disability' means any an individual, except an individual qualifying under vocational rehabilitation of the blind, who is under has a physical or mental disability which constitutes a substantial handicap impediment to employment, but which is of such a nature that vocational rehabilitation services may reasonably be expected to render him fit the individual able to engage in a remunerative occupation, and persons who are severely handicapped and with severe disabilities who are of employable age with a physical or mental disability so handicapping as to require that they be institutionalized or have the services of an attendant in order to provide themselves with their daily living requirements.

(5)    The term 'Remunerative occupation' includes means employment as an employee or self-employed; practice of a profession; homemaking, farm or family work for which payment is in kind rather than in cash; sheltered employment, and home industry or other homebound work of a remunerative nature.

(6)    The term 'Rehabilitation facility' means a facility operated for the primary purpose of assisting in the rehabilitation of physically handicapped individuals with disabilities:

(a)    which provides for one or more of the following types of services:

(i)     testing, fitting, or training in the use of prosthetic devices,;

(ii)    prevocational or conditional therapy,;

(iii)    physical or occupational therapy,;

(iv)    adjustment training; or

(v)    evaluation or control of special disabilities; or

(b)    through which is provided an integrated program of medical, psychological, social, and vocational evaluation and services under competent professional supervision; provided, that if the major portion of such the evaluation and services is furnished within the facility and that if all medical and related health services are prescribed by, or are under the formal supervision of, persons licensed to practice medicine or surgery in the State.

(7)    The term 'Workshop' means a place where any manufacture or handiwork is carried on and which is operated for the primary purpose of providing remunerative employment to severely handicapped individuals with severe disabilities who cannot be readily absorbed in the competitive labor market.

(8)    The term 'Nonprofit', when used with respect to a rehabilitation facility or a workshop, means a rehabilitation facility and a workshop, respectively, owned and operated by a corporation or association, no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual and the income of which is exempt from taxation under Section 501 (c) (3) of the Internal Revenue Code of 1954 1986.

(9)    'Establishment of a workshop or rehabilitation facility' means:

(a)    in the case of a workshop, the expansion, remodeling, or alteration of existing buildings necessary to adapt such these buildings to workshop purposes or to increase the employment opportunities in workshops, and the acquisition of initial equipment necessary for new workshops or to increase the employment opportunities in workshops; and

(b)    in the case of a rehabilitation facility, the expansion, remodeling, or alteration of existing buildings, and initial equipment of such these buildings, necessary to adapt such these buildings to rehabilitation facility purposes or to increase their effectiveness for such these purposes, (subject, however, to such these limitations as the Secretary of the Department of Health, Education, and Welfare may by regulations prescribe in order to prevent impairment of the objectives of, or duplication of, other federal laws providing federal assistance to states in the construction of such these facilities), and initial staffing thereof (, of these facilities for a period not exceeding one year).

(10)    The term 'Eligible physically handicapped individual with a disability', when used with respect to diagnostic and related services, training, guidance, and placement, means any physically handicapped a person with a disability, except a person qualifying under vocational rehabilitation for the blind, whose vocational rehabilitation or self-care rehabilitation is determined feasible by the Commissioner director, and, when used with respect to other vocational rehabilitation services, means an individual meeting the above this requirement who is also found by the Commissioner director to require financial assistance with respect thereto to his or her disability, after full consideration of his or her eligibility for any similar benefit by the way of pension, compensation, and insurance.

(11)    The term 'Self care rehabilitation services' means such diagnostic, psychological, medical, surgical, physical restoration, guidance, training, and related services, including equipment and prosthetic appliances and training in their use, needed to enable a severely handicapped person with a severe disability to dispense with or largely dispense with the need for institutional care or for the services of an attendant and to achieve, in so far as practicable, the ability for independent living.

(12)    The term 'Eligible' or 'eligibility' when used in relation to an individual's qualification for vocational rehabilitation services, means a certification that:

(1)(a)    a physical or mental disability is present;

(2)(b)    a substantial handicap impediment to employment exists; and

(3)(c)    vocational rehabilitation services may reasonably be expected to render the individual fit able to engage in a gainful occupation.

Section 43-31-40.    The Governor shall appoint a State Agency of Vocational Rehabilitation to be composed of seven members, which Agency shall provide for the administration of this chapter. The members of the Agency shall consist of one member from each congressional district and one member at large. The Governor, upon the advice and consent of the Senate, shall appoint the members. The members first appointed having been designated by the Governor to serve for terms of one, two, three, four, five, six and seven years respectively, each member of the Agency thereafter shall must be appointed for a term of seven years. The terms of office shall must always remain staggered so that the term of one member shall expire expires every year with appointments to fill unexpired terms caused by death, resignation, or disability.

Section 43-31-50.    The Agency shall elect a chairman and shall meet quarterly in regular session and on call by the chairman when necessary for the transaction of Agency business. Agency members shall receive such per diem and mileage as is provided by law for members of boards, commissions, and committees.

Section 43-31-60.    (A)    The agency shall provide the vocational rehabilitation services authorized by this chapter to every physically handicapped individual with a disability determined by the Commissioner director to be eligible therefor for these services, as defined by Section 43-31-30, subsection (10), and in carrying out the purposes of this chapter, the agency is authorized, among other things, to:

(1)    To cooperate with other departments, agencies, and institutions, both public and private, in providing the services authorized by this chapter to disabled individuals with disabilities, in studying the problems involved therein in assisting individuals with disabilities, and in establishing, developing, and providing in conformity with the purposes of this chapter, such programs, facilities, and services as may be necessary or desirable;

(2)    To enter into reciprocal agreements with other states to provide for the services authorized by this chapter to residents of the states concerned;

(3)    To conduct research and compile statistics relating to the provision of services to or the need of services by disabled individuals with disabilities;

(4)    To enter into contractual arrangements with the federal government and with other authorized public agencies or persons for performance of services related to vocational rehabilitation;

(5)    To contract with schools, hospitals, and other agencies, and with doctors, optometrists, nurses, technicians, and other persons, for training, physical restoration, transportation, and other vocational rehabilitation services;

(6)    To take such action as may be necessary to enable the agency to apply for, accept, and receive for the State and its residents the full benefits available under the Vocational Rehabilitation Act of Congress and any amendments thereto to this act, and under any other federal legislation or program having as its purpose the providing of, improvement, or extension of, vocational rehabilitation services.

(B)    The agency shall not assume responsibility for permanent custodial care of any individual and shall provide rehabilitation services only for a period long enough to accomplish the rehabilitation objective or to determine that rehabilitation is not feasible through the services which that can be made available to the individual being served.

Section 43-31-70.    The Agency shall appoint a Commissioner the Director of Vocational Rehabilitation, in accordance with established personnel standards and on the basis of his education, training, experience, and demonstrated ability. The Commissioner director shall serve as secretary and executive officer of the agency.

Section 43-31-80.    In carrying out his duties under this chapter, the Commissioner director:

(1)    shall, with the approval of the Agency, make promulgate regulations governing personnel standards, the protection of records and confidential information, the manner and form of filing applications, eligibility, and investigation and determination therefor of eligibility, for vocational rehabilitation and other services, procedures for fair hearings, and such other regulations as he finds necessary to carry out the purposes of this chapter;

(2)    shall, with the approval of the Agency, establish appropriate subordinate administrative units;

(3)    shall, with the approval of the Agency, appoint such personnel as he deems considers necessary for the efficient performance of the functions of the agency;

(4)    shall prepare and submit to the Agency annual reports of activities and expenditures and, prior to each regular session of the legislature, estimates of sums required for carrying out this chapter and estimates of the amounts to be made available for this purpose from all sources;

(5)    shall make certification for disbursement, in accordance with regulations, of funds available, for carrying out the purposes of this chapter;

(6)    shall, with the approval of the Agency, take such other action as he deems considers necessary or appropriate to carry out the purposes of this chapter;

(7)    may, with the approval of the Agency, delegate to any officer or employee of this agency such of his powers and duties, except the making of regulations and the appointment of personnel, as he finds necessary to carry out the purposes of this chapter.

Section 43-31-90.    This chapter shall must be administered under the general supervision and direction of the Agency by the Commissioner.

Section 43-31-100.    Pursuant to the policy declared in Section 43-31-20, the vocational rehabilitation services shall must be provided under this chapter to persons throughout the State, and the vocational rehabilitation plan adopted pursuant to this chapter shall must be in effect in all political subdivisions of the State.

Section 43-31-110.    Rehabilitation services provided under the State plan shall must be available to any civil employee of the United States disabled while in the performance of his duty, on the same terms and conditions as apply to other persons.

Section 43-31-120.    There is created a special fund, to be known as the 'Vocational Rehabilitation Fund'. The fund shall consist of all moneys appropriated by this State and all moneys received from the United States or any other source for such the purpose, as provided by this chapter. All moneys in this fund shall must be deposited, administered, and disbursed in the same manner and under the same conditions and requirements as provided by law for other public funds in the State Treasury. All moneys in this fund are appropriated and made available to the agency, and shall must be expended solely for the purposes of this chapter. Any balances in the fund shall do not lapse at any time but shall must be continuously available to the agency for expenditure consistent with this chapter. The agency, acting through the Commissioner director, shall issue its requisition for payment of all costs of administering this chapter to the Comptroller General, who shall draw his warrant in the usual form provided by law on the State Treasurer, who shall pay it by check on the vocational rehabilitation fund.

Section 43-31-130.    (1)(A)    The Commissioner director may, with the approval of the Agency, accept and use gifts made unconditionally by will or otherwise for carrying out the purposes of this chapter. Gifts made under such conditions as in the judgment of the Agency director are proper and consistent with the provisions of this chapter may be so accepted and shall must be held, invested, reinvested, and used in accordance with the condition of the gift.

(2)(B)    The acceptance of federal funds and other funds, and their use for vocational rehabilitation, subject to such restrictions as may be imposed by the donor and not inconsistent with this chapter, is hereby authorized.

(3)(C)    Federal grants and donations for vocational rehabilitation services, unless otherwise restricted, shall must be available for all vocational rehabilitation services provided under the State plan, and also for the purpose, whenever federal funds are made available to the State under Section 3 of the Federal Vocational Rehabilitation Amendments of 1954, for of the extension and improvement of vocational rehabilitation services, or under Section 4 of such that act for projects for research, demonstrations, training and traineeships, and for the planning for and initiating expansion of vocational rehabilitation services under the State plan.

Section 43-31-140.    The General Assembly shall appropriate for vocational rehabilitation such sums as are necessary, along with available federal and other funds, to carry out the purposes of this chapter.

Section 43-31-145.    As required by the Federal Vocational Rehabilitation Acts, and any amendments thereto to those acts, including rules and regulation regulations issued pursuant to such these acts, the State Agency of Vocational Rehabilitation shall give full consideration to any similar benefits available to a handicapped an individual with a disability, including private, group, or other insurance benefits, to meet, in whole or in part, the cost of any vocational rehabilitation services prior to expenditure of public funds. To the extent that an individual is eligible for other benefits, including private, group, or other insurance benefits, such these benefits shall must be utilized insofar as possible. Insurance carriers shall must not deny payment of benefits otherwise available solely on the basis that a handicapped an individual with a disability has applied for, or has been deemed eligible to receive, vocational rehabilitation services as provided by the State Agency of Vocational Rehabilitation.

Section 43-31-150.    It shall be is unlawful, except for purposes directly connected with the administration of the vocational rehabilitation program, and in accordance with regulations, for any person to solicit, disclose, receive or make use of, or authorize, knowingly permit, participate in or acquiesce in the use of any list of, or names of, or any information concerning, persons applying for or receiving vocational rehabilitation, directly or indirectly derived from the records, papers, files, communications of the State or subdivisions or agencies thereof of the State, or acquired in the course of the performance of official duties without the written consent of each such applicant and recipient. The records, papers, files, and communications shall must be regarded as confidential information and privileged.

Section 43-31-160.    In addition to the duties of the Department State Agency of Vocational Rehabilitation as set forth in Sections 43-31-20 and 43-31-60, the department agency shall provide services authorized by this chapter to individuals who have committed criminal offenses and are or have been incarcerated in the Department of Corrections when these individuals suffer from physical or mental disabilities that may constitute a substantial handicap impediment to employment."

B.    (A)    In accordance with the functions and responsibilities designated in this section, all personnel, appropriations, bonded indebtedness, if applicable, and real and personal property of the Commission for the Blind are transferred to the Division of Services for the Blind and to the South Carolina State Agency of Vocational Rehabilitation.

(B)    Employees transferred pursuant to the provisions of this section, at the time of transfer, become employees of the Division of Services for the Blind or of the State Agency for Vocational Rehabilitation, as provided for in this section.

(C)    Any regulations previously promulgated by the Commission for the Blind under the authority of former provisions of law pertaining to the commission are continued and considered to be promulgated under the authority of present provisions pertaining to the Division of Services for the Blind or the State Agency of Vocational Rehabilitation, as provided for in this section.

(D)    The State Budget and Control Board shall facilitate the transfers to be made in accordance with this section.

SECTION    21.    Section 43-21-10 of the 1976 Code, as last amended by Act 30 of 1995, is further amended to read:

"Section 43-21-10.    (A)    There is created in the Office of the Lieutenant Governor, the Division on Aging. The division must be supported by an the Advisory Council Committee on Aging consisting of:

(1)    the Lieutenant Governor or his designee;

(2)    one member from each of the ten planning and service areas under the Division on Aging and;

(3)    one representative of each of the following groups appointed by the Lieutenant Governor annually:

(a)    long term care providers;

(b)    long term care consumers;

(c)    persons in the insurance industry developing or marketing a long-term care product;

(4)    five members from the State at large.

The director of the division shall provide statewide notice that nominations may be submitted to the director from which the Lieutenant Governor shall appoint the members of the council committee, upon the advice and consent of the Senate. The members must be citizens of the State who have an interest in and a knowledge of the problems of an aging population. In making appointments to the council committee, consideration must be given to assure that the council is composed of appointees who are diverse in age, who are able and disabled, and who are active leaders in organizations and institutions that represent different concerns of older citizens and their families. The chair must be elected by the members of the advisory council committee from its members for a term of two years and until a successor is elected. Members of the council committee shall serve without compensation but shall receive mileage and subsistence authorized by law for members of boards, commissions, and committees. The advisory council committee shall meet at least once each quarter and special meetings may be called at the discretion of the director of the division. Rules and procedures must be adopted by the council committee for the governance of its operations and activities.

(B)    The Advisory Committee on Aging shall identify future policy issues in aging and long-term care and may conduct research and demonstration activities related to these issues."

SECTION    22.    Section 43-21-20 of the 1976 Code, as last amended by Act 30 of 1995, is further amended to read:

"Section 43-21-20.    (A)    The members of the advisory council committee shall serve for terms of four years and until their successors are appointed and qualify. The terms of the members expire on June thirtieth and all vacancies must be filled in the manner of the original appointment for the unexpired portion of the term only. No A member may not serve more than two consecutive terms.

(B)    The Lieutenant Governor may terminate a member of the council for any reason pursuant to the provisions of Section 1-3-240, and the reason for the termination must be communicated to each member of the council committee."

SECTION    23.    Section 43-21-45 of the 1976 Code, as amended by Act 336 of 1994, is further amended to read:

"Section 43-21-45.    The Lieutenant Governor's Office, Division on Aging, shall designate area agencies on aging and area agencies on aging shall designate focal points. Focal points shall provide leadership on aging issues in their respective communities and shall carry out a comprehensive service system for older adults or shall coordinate with a comprehensive service system in providing services for older adults. The area agencies on aging represent the regional level of the state aging network and the focal points represent the local level of the state aging network."

SECTION    24.    Section 43-21-60 of the 1976 Code, as last amended by Section 1020 of Act 181 of 1993, is further amended to read:

"Section 43-21-60.    The division, through the Lieutenant Governor, shall submit an annual report to the Governor and to the General Assembly on or before January first of each year. The report shall deal with the present and future needs of the elderly and with the work of the division during the year."

SECTION    25.    Section 43-21-70 of the 1976 Code, as last amended by Section 1021 of Act 181 of 1993, is further amended to read:

"Section 43-21-70.    The Lieutenant Governor may employ a director to be the administrative officer of the division who shall serve at his pleasure and who is subject to removal pursuant to the provisions of Section 1-3-240."

SECTION    26.    Section 43-21-100 of the 1976 Code, as last amended by Section 1023 of Act 181 of 1993, is further amended to read:

"Section 43-21-100.    The division shall prepare the annual budget for its operation which must be submitted to the Lieutenant Governor and to the General Assembly for approval."

SECTION    27.    Section 43-21-110 of the 1976 Code is amended to read:

"Section 43-21-110.    The General Assembly shall provide an annual appropriation to carry out the work of the Commission Division on Aging in the Office of the Lieutenant Governor."

SECTION    28.    Section 43-21-150 of the 1976 Code, as last amended by Section 1026 of Act 181 of 1993, is further amended to read:

"Section 43-21-150.    The Division on Aging, with the cooperation assistance of the Long Term Care Council Advisory Committee and the Department of Insurance, shall develop and implement a program to educate citizens concerning:

(a)    the availability of long term care services;

(b)    the lifetime risk of spending some time in a nursing home;

(c)    the coverage available for long term care services through Medicare, Medicaid, and private insurance policies, and the limitations of this coverage; and

(d)    the availability of home equity conversion alternatives, such as reverse annuity mortgages and sale-leaseback arrangements, in this State and the risks and benefits of these alternatives.

This program must be made a part of the Preretirement Education Program of the South Carolina Retirement Systems."

SECTION    29.    Article 2, Chapter 6, Title 44 of the 1976 Code is amended by adding:

"Section 44-6-162.    The department shall reimburse eligible hospitals the Graduate Medical Education cost associated with the base rate payment for Medicaid Health Maintenance Organization enrollees consistent with the process and methodology used for other Medicaid recipients. The department shall begin implementation of this requirement no later than October 1, 2005."

SECTION    30.    Unless otherwise provided, this act takes effect upon approval by the Governor.