South Carolina General Assembly
115th Session, 2003-2004

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Bill 34

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Indicates New Matter


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter Stricken

Indicates New Matter

COMMITTEE REPORT

May 28, 2003

S. 34

Introduced by Senators Knotts, Elliott, Reese and Kuhn

S. Printed 5/28/03--H.    [SEC 5/29/03 3:33 PM]

Read the first time April 24, 2003.

            

THE COMMITTEE ON JUDICIARY

To whom was referred a Bill (S. 34) to amend the Code of Laws of South Carolina, 1976, by adding Section 30-4-55 so as to provide that a public body or person or entity acting, etc., respectfully

REPORT:

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

Amend the bill, as and if amended, by adding an appropriately numbered SECTION to read:

/ SECTION    ___.    A.        Article 15, Chapter 13, Title 7 of the 1976 Code is amended by adding:

"Section 7-13-1655.    (A)    As used in this section, 'voting system' means:

(1)    the total combination of mechanical, electromechanical, or electronic equipment, including the software, firmware, and documentation required to program, control, and support the equipment that is used to:

(a)    define ballots;

(b)    cast and count votes;

(c)    report or display election results; and

(d)    maintain and produce audit trail information; and

(2)    the practices and associated documentation used to:

(a)    identify system components and versions of these components;

(b)    test the system during its development and maintenance;

(c)    maintain records of system errors and defects;

(d)    determine specific system changes to be made to a system after the initial qualification of the system; and

(e)    make available materials to the voter, such as notices, instructions, forms, or paper ballots.

(B)    The State Election Commission shall:

(1)    approve and adopt one voting system to be used by authorities charged by law with conducting elections;

(2)    support the authorities charged by law by providing training for personnel in the operation of the voting system approved and adopted by the commission; and

(3)    support all aspects of creating the ballots and the database of the voting system which is approved and adopted.

B .    Section 7-13-1320 of the 1976 Code is amended to read:

"Section 7-13-1320.    (a)    The use of vote recorders may be authorized for use in some absentee precincts in a county without requiring their use in all precincts.

(b)    Vote recorders of different kinds may be used for different precincts in the same county.

(c)    The county election commission shall provide vote recorders in such numbers as it deems considers necessary in good working order and of sufficient capacity to accommodate the names of all candidates for all party offices and nominations and public offices which, under the provisions of existing laws and party rules, are to be voted for at any primary or other election."

C.     Section 7-13-1330(A) and (H) of the 1976 Code, as last amended by Act 103 of 1999, is further amended to read:

"(A)    Before any kind of vote recorder system, including an optical scan voting system, is used at any election, it shall must be approved by the State Election Commission which shall examine the vote recorder and shall make and file in the commission's office a report, attested by the signature of the executive director, stating whether, in the opinion of the commission, the kind of vote recorder so examined can may be accurately and efficiently used by electors at elections, as provided by law. No A vote recorder or optical scan voting system may not be approved for use in the State unless certified by an Independent Testing Authority (ITA) accredited qualified by the National Association of State Election Directors and the State Election Commission as meeting or exceeding the minimum requirements of the Federal Election Commission's national voting system standards. If this report states that the vote recorder can may be so used, the recorder shall must be considered approved and vote recorders of its kind may be adopted for use at elections, as herein provided in this section.

(H)    Before any vote recorder or optical scan voting system approved after July 1, 1999, may be used in elections in the State, all source codes for the system must be placed in escrow by the manufacturer, at the manufacturer's expense, with the approved software ITA. These source codes must be available to the State Election Commission in the event that case the company goes out of business, pursuant to court order, or in the event that if the State Election Commission determines that an examination of these source codes is necessary. It is the responsibility of the manufacturer to place all updates of these source codes in escrow and to notify the State Election Commission that this requirement has been met."

D.     Section 7-13-1620 of the 1976 Code, as last amended by Act 103 of 1999, is further amended to read:

"(A)    Before any kind of voting machine, including an electronic voting machine, system is used at any an election, it must be approved by the State Election Commission which shall examine the voting machine system and make and file in the commission's office a report, attested to by the signature of the commission's executive director, stating whether, in the commission's opinion, the kind of voting machine system so examined can may be accurately and efficiently used by electors at elections, as provided by law. No A voting machine system may not be approved for use in the State unless certified by an Independent Testing Authority (ITA) accredited qualified by the National Association of State Election Directors and the State Election Commission as meeting or exceeding the minimum requirements of the Federal Election Commission's national voting system standards.

(B)    When a voting machine system has been approved for use before July 1, 1999, it may be used in elections. However, if the system's software or firmware is improved or changed, the system must comply with the requirements of subsection (A).

(C)    Any A person or company who requests an examination of any type of voting machine must system shall pay a nonrefundable examination fee of one thousand dollars for a new voting system. A nonrefundable examination fee of five hundred dollars must be paid for an upgrade to any existing system. The State Election Commission may reexamine any voting machine system when evidence is presented to the commission that the accuracy or the ability of the machine system to be used satisfactorily in the conduct of elections is in question.

(D)    Any A person or company who seeks approval for any type of voting machine system in this State must shall file with the State Election Commission a list of all states or jurisdictions in which that voting machine system has been approved for use. This list must state how long the machine system has been used in the state; contain the name, address, and telephone number of that state or jurisdiction's chief election official; and disclose any reports compiled by state or local government concerning the performance of the machine system. The vendor is responsible for filing this information on an ongoing basis.

(E)    Any A person or an individual who seeks approval for any type of voting machine must system shall file with the State Election Commission copies of all contracts and maintenance agreements used in connection with the sale of the voting machine system. All changes to standard contracts and maintenance agreements must be filed with the State Election Commission.

(F)    Any A person or company who seeks approval for any voting machine must system shall conduct, under the supervision of the State Election Commission and any county election commission, a field test for any new voting machine system, as part of the certification process. The field test shall must involve South Carolina voters and election officials and must be conducted as part of a scheduled primary, general, or special election. This test must be held in two or more precincts, and all costs relating to the use of the voting machine system must be borne by the vendor. The test must be designed to gauge voter reaction to the machine system, problems that voters have with the machine system, and the number of units required for the efficient operation of an election. The test also must also demonstrate the accuracy of votes reported on the machine system.

(G)    Before any a voting machine system, approved after July 1, 1999, may be used in elections in the State, all source codes for the system must be placed in escrow by the manufacturer at the manufacturer's expense with the approved software ITA with the Secretary of State. These source codes must be available to the State Election Commission in the event that case the company goes out of business, pursuant to court order, or in the event that if the State Election Commission determines that an examination of these source codes is necessary. It is the responsibility of the manufacturer to place all updates of these source codes in escrow and to notify the State Election Commission that this requirement had been met.

(H)    After a voting machine system is approved, an improvement or change in the machine system must be submitted to the State Election Commission for approval pursuant to this section; however, this requirement does not apply to the technical capability of a general purpose computer, reader, or printer used for election preparation or ballot tallying.

(I)    If the State Election Commission determines that a voting machine system that was approved no longer meets the requirements of subsections (A) and (B) or Section 7-13-1640, the commission may decertify that machine system. A decertified machine shall system must not be used in an election unless it is reapproved by the commission under pursuant to the provisions of subsections (A) and (B).

(J)    No A member of the State Election Commission, county election commission, custodian, or member of a county governing body may not have any a pecuniary interest in any voting machine system or in the manufacture or sale of any voting machine system."

E.     Sections 7-13-1310, 7-13-1650, and 7-13-1660 of the 1976 Code are repealed.

F.     This section takes effect upon approval by the Governor and when funding is available to implement the requirements of this section. /

Renumber sections to conform.

Amend title to conform.

JAMES H. HARRISON for Committee.

            

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, 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 OR REJECTED, AND TO PRESCRIBE THE SUBSTANCE OF THE FISCAL IMPACT DISCLOSURE; AND 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 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 OR REJECTED BY THE INDUSTRY OR BUSINESS TO WHOM THE OFFER WAS MADE.

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."

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;"

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."

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 non-tariff agreements, and evaluations and other materials which contain references to potential customers, competitive information, or evaluation."

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."

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.    This act takes effect upon approval by the Governor.

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