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A86, R133, S34
Sponsors: Senators Knotts, Elliott, Reese and Kuhn
Document Path: l:\council\bills\pt\1128mm03.doc
Companion/Similar bill(s): 3208, 3340
Introduced in the Senate on January 14, 2003
Introduced in the House on April 24, 2003
Last Amended on June 5, 2003
Passed by the General Assembly on June 5, 2003
Governor's Action: July 14, 2003, Signed
Summary: Business incentive offers must include fiscal impact; documents not exempt from disclosure once offer accepted or rejected
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 12/4/2002 Senate Prefiled 12/4/2002 Senate Referred to Committee on Judiciary 1/14/2003 Senate Introduced and read first time SJ-34 1/14/2003 Senate Referred to Committee on Judiciary SJ-34 3/12/2003 Senate Committee report: Favorable with amendment Judiciary SJ-8 3/13/2003 Senate Amended SJ-23 4/2/2003 Senate Amended SJ-29 4/2/2003 Senate Read second time SJ-29 4/2/2003 Senate Ordered to third reading with notice of amendments SJ-29 4/17/2003 Senate Special order SJ-16 4/23/2003 Senate Amended SJ-52 4/23/2003 Senate Read third time and sent to House SJ-52 4/24/2003 House Introduced and read first time HJ-17 4/24/2003 House Referred to Committee on Ways and Means HJ-17 4/30/2003 House Recalled from Committee on Ways and Means HJ-36 4/30/2003 House Referred to Committee on Judiciary HJ-36 5/28/2003 House Committee report: Favorable with amendment Judiciary HJ-74 5/29/2003 Scrivener's error corrected 6/3/2003 House Requests for debate-Rep(s). Scott, JH Neal, Gourdine, Lloyd, Rivers, Moody-Lawrence, Hosey, Breeland, and M Hines HJ-71 6/4/2003 House Requests for debate removed-Rep(s). Scott, JH Neal, Gourdine, Breeland, Hosey, M Hines, Rivers and Moody-Lawrence HJ-51 6/4/2003 House Debate adjourned HJ-56 6/4/2003 House Debate adjourned HJ-85 6/4/2003 House Amended HJ-128 6/4/2003 House Read second time HJ-132 6/5/2003 House Debate adjourned HJ-8 6/5/2003 House Amended HJ-153 6/5/2003 House Read third time and returned to Senate with amendments HJ-153 6/5/2003 Senate Concurred in House amendment and enrolled SJ-172 6/5/2003 Ratified R 133 7/14/2003 Signed By Governor 7/18/2003 Copies available 7/18/2003 Effective date 07/14/03 7/23/2003 Act No. 86
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VERSIONS OF THIS BILL
(A86, R133, S34)
AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 13-1-25 SO AS TO DEFINE PUBLIC MONIES AS MONIES IN A FUND USED BY THE DEPARTMENT OF COMMERCE IN CARRYING OUT CERTAIN DESCRIBED PURPOSES AND TO ESTABLISH SPECIFIC REPORTING REQUIREMENTS FOR THOSE MONIES; TO AMEND SECTION 13-1-1720, RELATING TO THE PURPOSE AND DUTIES OF THE COORDINATING COUNCIL FOR ECONOMIC DEVELOPMENT, SO AS TO RESTATE THE PUBLIC NATURE OF THE SUBJECT FUNDS, INCLUDING THE ACCOUNTABILITY, DISCLOSURE, REPORTING, AND PROCUREMENT REQUIREMENTS; BY ADDING SECTION 30-4-55 SO AS TO PROVIDE THAT A PUBLIC BODY OR PERSON OR ENTITY ACTING ON BEHALF OF THE PUBLIC BODY THAT OFFERS CERTAIN INCENTIVES TO ATTRACT A BUSINESS OR INDUSTRY TO INVEST IN SOUTH CAROLINA SHALL DISCLOSE THE FISCAL IMPACT OF THE OFFER ON THE PUBLIC BODY OR OTHER GOVERNMENTAL ENTITY AT THE TIME THE OFFER IS ACCEPTED AND MADE PUBLIC OR FINALIZED, AND TO PRESCRIBE THE SUBSTANCE OF THE FISCAL IMPACT DISCLOSURE; TO AMEND SECTION 30-4-40, AS AMENDED, RELATING TO MATTERS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT, SO AS TO PROVIDE THAT MARINE TERMINAL SERVICE AND NONTARIFF AGREEMENTS ARE TRADE SECRETS AND THAT MEMORANDA, CORRESPONDENCE, AND DOCUMENTS RELATING TO AN OFFER MADE TO AN INDUSTRY OR BUSINESS OF INCENTIVES THAT REQUIRE THE EXPENDITURE OF PUBLIC FUNDS OR THE TRANSFER OF ANYTHING OF VALUE OR THAT REDUCE THE RATE OR ALTER THE METHOD OF TAXATION OF THE BUSINESS OR INDUSTRY OR OTHERWISE IMPACT THE OFFEROR FISCALLY ARE NOT EXEMPT FROM DISCLOSURE AFTER THE OFFER IS ACCEPTED AND MADE PUBLIC OR FINALIZED; BY ADDING SECTION 30-4-65 SO AS TO PROVIDE THAT THE GOVERNOR'S CABINET MEETINGS ARE SUBJECT TO THE FREEDOM OF INFORMATION ACT ONLY WHEN THE CABINET IS GRANTED CERTAIN POWERS BY EXECUTIVE ORDER; AND TO AMEND SECTION 30-4-20, RELATING TO DEFINITIONS FOR PURPOSES OF THE FREEDOM OF INFORMATION ACT, SO AS TO EXPAND THE DEFINITION OF "PUBLIC BODY" TO INCLUDE A LEGISLATIVE CAUCUS OR A GROUP MADE UP OF A MAJORITY OF CERTAIN PUBLIC EMPLOYEES.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 1, Title 13 of the 1976 Code is amended by adding:
"Section 13-1-25. (A) The monies constituting a fund of any kind used by the department in carrying out a purpose described in Section 13-1-20 are public monies, notwithstanding their public or private source, and must be treated like public monies for all purposes. These monies are subject to all accountability requirements governing public monies, including compliance with the South Carolina Consolidated Procurement Code, unless exempt by formal approval of the State Budget and Control Board. These monies are also subject to all disclosure requirements governing public monies, unless exempt by Section 30-4-40.
(B) In addition to all other required audits, reviews, and reports, by January 1 of each year the director must submit to the Governor, the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the members of the Senate Finance Committee, and the members of the House Ways and Means Committee a detailed written report of all expenditures for each fund during the previous calendar year. This report must include an explanation of the specific purpose of each expenditure including recreational or entertainment purposes. Expenditures made pursuant to negotiations with an industry or business and which are ongoing as of December 31 of the previous year may be excluded from that calendar year's report and reported the following January or January of the year following public announcement by the company."
Purpose and duties of council
SECTION 2. Section 13-1-1720(A)(4) of the 1976 Code, as added by Act 181 of 1993, is amended to read:
"(4) use of federal funds, foundation grants, and private funds in the development, implementation, revision, and promotion of a strategic plan for economic development. Funds from foundation grants and private funds used for these purposes are public monies, notwithstanding their private source, and must be treated like public monies. These monies are subject to all accountability requirements governing public monies, including compliance with the South Carolina Consolidated Procurement Code, unless exempt by formal approval of the State Budget and Control Board. These monies are also subject to all disclosure requirements governing public monies, unless exempt by Section 30-4-40;"
Disclosure of economic incentives
SECTION 3. Chapter 4, Title 30 of the 1976 Code is amended by adding:
"Section 30-4-55. A public body as defined by Section 30-4-20(a), or a person or entity employed by or authorized to act for or on behalf of a public body, that undertakes to attract business or industry to invest or locate in South Carolina by offering incentives that require the expenditure of public funds or the transfer of anything of value or that reduce the rate or alter the method of taxation of the business or industry or that otherwise impact the offeror fiscally, must disclose, upon request, the fiscal impact of the offer on the public body and a governmental entity affected by the offer after:
(a) the offered incentive or expenditure is accepted, and
(b) the project has been publicly announced or any incentive agreement has been finalized, whichever occurs later.
The fiscal impact disclosure must include a cost-benefit analysis that compares the anticipated public cost of the commitments with the anticipated public benefits. Notwithstanding the requirements of this section, information that is otherwise exempt from disclosure under Section 30-4-40(a)(1), (a)(5)(c), and (a)(9) remains exempt from disclosure."
Matters exempt from disclosure
SECTION 4. Section 30-4-40(a)(1) of the 1976 Code is amended to read:
"(1) Trade secrets, which are defined as unpatented, secret, commercially valuable plans, appliances, formulas, or processes, which are used for the making, preparing, compounding, treating, or processing of articles or materials which are trade commodities obtained from a person and which are generally recognized as confidential and work products, in whole or in part collected or produced for sale or resale, and paid subscriber information. Trade secrets also include, for those public bodies who market services or products in competition with others, feasibility, planning, and marketing studies, marine terminal service and nontariff agreements, and evaluations and other materials which contain references to potential customers, competitive information, or evaluation."
Matters exempt from disclosure
SECTION 5. Section 30-4-40(a)(9) of the 1976 Code is amended to read:
"(9) Memoranda, correspondence, documents, and working papers relative to efforts or activities of a public body and of a person or entity employed by or authorized to act for or on behalf of a public body to attract business or industry to invest within South Carolina; however, an incentive agreement made with an industry or business: (1) requiring the expenditure of public funds or the transfer of anything of value, (2) reducing the rate or altering the method of taxation of the business or industry, or (3) otherwise impacting the offeror fiscally, is not exempt from disclosure after:
(a) the offer to attract an industry or business to invest or locate in the offeror's jurisdiction is accepted by the industry or business to whom the offer was made; and
(b) the public announcement of the project or finalization of any incentive agreement, whichever occurs later."
Cabinet meetings subject to chapter
SECTION 6. Chapter 4, Title 30 of the 1976 Code is amended by adding:
"Section 30-4-65. (A) The Governor's cabinet meetings are subject to the provisions of this chapter only when the Governor's cabinet is convened to discuss or act upon a matter over which the Governor has granted to the cabinet, by executive order, supervision, control, jurisdiction, or advisory power.
(B) For purposes of this chapter, 'cabinet' means the directors of the departments of the executive branch of state government appointed by the Governor pursuant to the provisions of Section 1-30-10(B)(1)(i) when they meet as a group and a quorum is present."
SECTION 7. Section 30-4-20(a) of the 1976 Code is amended to read:
"(a) 'Public body' means any department of the State, a majority of directors or their representatives of departments within the executive branch of state government as outlined in Section 1-30-10, any state board, commission, agency, and authority, any public or governmental body or political subdivision of the State, including counties, municipalities, townships, school districts, and special purpose districts, or any organization, corporation, or agency supported in whole or in part by public funds or expending public funds, including committees, subcommittees, advisory committees, and the like of any such body by whatever name known, and includes any quasi-governmental body of the State and its political subdivisions, including, without limitation, bodies such as the South Carolina Public Service Authority and the South Carolina State Ports Authority. Committees of health care facilities, which are subject to this chapter, for medical staff disciplinary proceedings, quality assurance, peer review, including the medical staff credentialing process, specific medical case review, and self-evaluation, are not public bodies for the purpose of this chapter."
SECTION 8. This act takes effect upon approval by the Governor.
Ratified the 5th day of June, 2003.
Approved the 14th day of July, 2003.
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