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TO ENACT THE "SOUTH CAROLINA RESTRUCTURING ACT OF 2003" INCLUDING PROVISIONS TO AMEND SECTION 1-30-10, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE AGENCIES OF THE EXECUTIVE BRANCH OF STATE GOVERNMENT BY ADDING THE DEPARTMENT OF ADMINISTRATION; BY ADDING SECTION 1-30-125 SO AS TO ESTABLISH THE DEPARTMENT OF ADMINISTRATION AS AN AGENCY OF THE EXECUTIVE BRANCH OF STATE GOVERNMENT TO BE HEADED BY A DIRECTOR APPOINTED BY THE GOVERNOR UPON THE ADVICE AND CONSENT OF THE SENATE, AND TO TRANSFER TO THIS NEWLY CREATED DEPARTMENT CERTAIN OFFICES AND DIVISIONS OF THE STATE BUDGET AND CONTROL BOARD, OFFICE OF THE GOVERNOR, AND OTHER AGENCIES, AND TO PROVIDE FOR TRANSITIONAL AND OTHER PROVISIONS NECESSARY TO ACCOMPLISH THE ABOVE; BY ADDING ARTICLE 6 TO CHAPTER 3 OF TITLE 1 SO AS TO ESTABLISH THE DIVISION OF THE STATE CHIEF INFORMATION OFFICER TO BE HEADED BY THE STATE CHIEF INFORMATION OFFICER WHO IS APPOINTED BY THE BUDGET AND CONTROL BOARD UPON RECOMMENDATION OF THE GOVERNOR AND TO PROVIDE FOR THE POWERS, DUTIES, AND FUNCTIONS OF THE DEPARTMENT; TO CREATE A JOINT INFORMATION FINANCE COMMITTEE AND THE INFORMATION TECHNOLOGY ARCHITECTURE REVIEW PANEL AND TO PROVIDE FOR THE FUNCTIONS, POWERS, AND RESPONSIBILITIES OF THE COMMITTEE AND PANEL, AND TO AMEND SECTION 11-35-1580, AS AMENDED, RELATING TO INFORMATION TECHNOLOGY PROCUREMENTS, SO AS TO DELETE CERTAIN RESPONSIBILITIES OF THE INFORMATION TECHNOLOGY MANAGEMENT OFFICE; AND BY ADDING CHAPTER 8 TO TITLE 1 SO AS TO CREATE THE OFFICE OF STATE INSPECTOR GENERAL AS A SEPARATE DIVISION WITHIN THE BUDGET AND CONTROL BOARD, TO PROVIDE THAT THE STATE INSPECTOR GENERAL MUST BE NOMINATED BY THE GOVERNOR AND ELECTED UNANIMOUSLY BY THE BUDGET AND CONTROL BOARD FOR A TERM COTERMINOUS WITH THAT OF THE GOVERNOR, TO PROVIDE FOR THE PURPOSE, DUTIES, RESPONSIBILITIES, AND AUTHORITY OF THE STATE INSPECTOR GENERAL, TO PROVIDE A DEFINITION OF "EXECUTIVE AGENCIES" FOR PURPOSES OF THIS CHAPTER, AND TO PROVIDE FOR THE RECEIPT AND INVESTIGATION OF COMPLAINTS RELATING TO IMPROPER OR UNLAWFUL ACTIVITY WITHIN EXECUTIVE AGENCIES OF THE STATE GOVERNMENT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. This act is known and may be cited as the "South Carolina Restructuring Act of 2003".
SECTION 2. Section 1-30-10(A) of the 1976 Code, as amended by Act 83 of 1995, is further amended by adding at the end:
"20. Department of Administration"
SECTION 3. Chapter 30, Title 1 of the 1976 Code is amended by adding:
"Section 1-30-125. (A) Effective July 1, 2003, the following offices, divisions, or components of the State Budget and Control Board, Office of the Governor, or other agencies are transferred to, and incorporated in the Department of Administration, which shall be a department of the executive branch of state government headed by a director appointed by the Governor as provided in Section 1-30-10(B)(1)(i):
(1) Office of General Services,` excluding the Capital Improvements and Planning Division of the Office of State Building and Property Services;
(2) One-half of the Office of Executive Director;
(3) One-half of the Office of Internal Operations;
(4) Office of Executive Policy and Programs;
(5) Office of Economic Opportunity;
(6) Intergovernmental and Community Relations;
(7) Developmental Disabilities Council;
(8) Office of Volunteer Services;
(9) Continuum of Care as established by Section 20-7-5610;
(10) Children's Foster Care as established by Section 20-7-2379;
(11) Guardian Ad Litem as established by Section 20-7-121;
(12) Veterans Affairs as established by Section 25-11-10;
(13) Commission on Women as established by Section 1-15-10;
(14) Victims Assistance as established by Article 13, Chapter 3, Title 16;
(15) Ombudsman as established by Section 16-3-1620;
(16) Small and Minority Business as established by Section 11-35-5270;
(17) Second Injury Fund as established by Section 42-7-310;
(18) Workers' Compensation Fund as established by Section 42-3-10;
(19) Patients Compensation Fund as established by Section 38-79-420; and
(20) Joint Underwriting Association as established by Chapter 83 of Title 38.
(B) The Budget and Control Board shall develop and adopt a plan to specify which components and personnel of the Office of Executive Director and Office of Internal Operations shall be transferred to and become part of the Department of Administration. This authority is ministerial in nature and shall not be construed as giving to the board the right to disapprove the transfer of one-half of such offices to the newly created Department of Administration."
SECTION 4. (A) Where the provisions of this act transfer offices, or portions thereof, of the Budget and Control Board, Office of the Governor, or other agencies to the new Department of Administration, the employees, authorized appropriations, and assets and liabilities of the transferred offices are also transferred to and become part of the Department of Administration. All classified or unclassified personnel employed by these offices on the effective date of this act, either by contract or by employment at will, shall become employees of the Department of Administration, with the same compensation, classification, and grade level, as applicable. The Budget and Control Board, upon concurrence of the Office of the Governor, shall cause all necessary actions to be taken to accomplish this transfer in accordance with state laws and regulations.
(B) Regulations promulgated by these transferred offices as they formerly existed under the Budget and Control Board, Office of the Governor, or other agencies are continued and are considered to be promulgated by these offices under the newly created Department of Administration.
(C) The Code Commissioner is directed to change or correct all references to these offices of the Budget and Control Board in the 1976 Code, Office of the Governor, or other agencies to reflect the transfer of them to the Department of Administration. References to the names of these offices in the 1976 Code or other provisions of law are considered to be and must be construed to mean appropriate references. This authority shall not be construed to remove any authority from the Budget and Control Board for approval of statewide policies, procedures, regulations, rates and fees, or specific actions requiring board approval.
SECTION 5. Chapter 3, Title 1 of the 1976 Code is amended by adding:
Section 1-3-300. It is the intent of the General Assembly to create an instrumentality that provides leadership and direction for the use of information technology within government in South Carolina. The General Assembly recognizes the critical role information technology plays in providing cost-effective and efficient services to the citizens of this State. The General Assembly envisions an enterprise information system that provides an easily accessible, reliable, and accurate information infrastructure to enhance the quality and delivery of services.
Section 1-3-305 As used in this article:
(1) 'Board' means the State Budget and Control Board.
(2) 'Committee' means the Joint Information Technology Review Committee.
(3) 'Division' means the Division of the State Chief Information Officer.
(4) 'Governmental body' means a state government department, commission, council, board, bureau, committee, institution, college, university, technical school, agency, government corporation, or other establishment or official of the executive branch. Governmental body excludes the General Assembly or its respective branches or its committees, the Judicial Branch, Legislative Council, the Office of Legislative Printing and Information Technology Resources, and all local political subdivisions such as counties, municipalities, school districts, or public service or special purpose districts.
(5) 'Information technology' means electronic data processing goods and services, telecommunications goods and services, information security goods and services, information management, microprocessors, software, information processing, office systems, any services related to the foregoing, and consulting or other services for design or redesign of information technology supporting business processes.
(6) 'Information technology initiative' means an information technology project proposed by a governmental body or governmental bodies that exceeds a total estimated cost established by the board.
(7) 'Panel' means the Information Technology Architecture Review Panel.
Section 1-3-310. There is created the Division of the State Chief Information Officer within the State Budget and Control Board. The division is under the supervision of the State Chief Information Officer who must be appointed by the Budget and Control Board upon recommendation of the Governor. The State Chief Information Officer serves at the pleasure of the State Budget and Control Board.
Section 1-3-315. (A) There is created a joint committee of the General Assembly to be known as the Joint Information Technology Review Committee consisting of ten members. The chairman of the Senate Finance Committee shall appoint five members, three of whom must be appointed from the Senate Finance Committee and two appointed from the remaining membership of the Senate. The chairman of the House Ways and Means Committee shall appoint five members, three of whom must be appointed from the House Ways and Means Committee and two appointed from the remaining membership of the House of Representatives. Terms of members of the committee shall correspond to the terms for which they are elected to the General Assembly. The committee shall elect officers of the committee, but individuals elected as officers may succeed themselves if elected to do so.
(B) The responsibilities of the committee include, but are not limited to, the following:
(1) review information technology initiatives to determine whether the expenditure of funds for the information technology initiatives is justified by sound business and technological principles and standards;
(2) recommend to the board which information technology initiatives should be approved by the board;
(3) recommend to the board priorities of future information technology initiatives;
(4) carry out all the above assigned responsibilities in consultation and cooperation with the board, the division, and the appropriate governmental bodies; and
(5) report its findings and recommendations to the House Ways and Means Committee and the Senate Finance Committee annually or upon request of these committees.
Section 1-3-320. (A) The State Chief Information Officer shall determine the number and composition of the Information Technology Architecture Review Panel to include representatives from governmental bodies and other entities. The panel shall review the information technology initiatives of governmental bodies and advise the State Chief Information Officer on matters relating to the development and implementation of information technology standards, policies, and procedures.
(B) Members serve without compensation, but are allowed the usual per diem and mileage as provided by law for members of boards, commissions, and committees while on official business. Members who are full-time state employees may not receive per diem.
(C) The responsibilities of the panel include the following:
(1) assess each information technology initiative to determine whether it adheres to the coordinated statewide strategic plan for information technology, statewide strategic information technology directions, standards, and enterprise architecture and the information technology plan of the governmental body proposing the information technology initiative;
(2) assess the technological soundness of the information technology initiative;
(3) assess whether the information technology initiative is redundant with the existing technology of the governmental body proposing the information technology initiative or the existing technology of other governmental bodies; and
(4) carry out responsibilities assigned to it by the board or the State Chief Information Officer.
(D) The panel shall provide a written assessment of each information technology initiative to the committee and the division. In addition to the information contained in subsection (C), this assessment may include the panel's recommendation as to whether the information technology initiative must be adopted.
Section 1-3-325. In addition to other responsibilities as the board may assign, the division shall:
(1) develop for approval of the board a coordinated statewide strategic plan for information technology and statewide strategic information technology directions, standards, and enterprise architecture. The division shall implement necessary management processes to ensure that governmental bodies fully comply with the coordinated statewide strategic plan for information technology and statewide strategic information technology directions, standards, and enterprise architecture;
(2) develop for the approval of the board an approval process for the information technology plans of governmental bodies. Each governmental body is required to develop an information technology plan and submit the plan to the division for approval. The division may require modification to those plans that do not conform to statewide information technology plans, strategies, and standards;
(3) develop policies, standards, methodologies, and procedures for the effective management of information technology investments throughout their entire life cycles including, but not limited to, project definition, procurement, development, implementation, operation, performance evaluation, and enhancement or retirement;
(4) review information technology initiatives to determine whether the initiatives are justified by sound business principles. This review must be done in consultation with the governmental body sponsoring the information technology initiative and may include an evaluation of the return on investment projection of the information technology initiative and any other information the division considers appropriate;
(5) monitor information technology initiatives approved by the board. The division may modify and suspend any information technology initiative that is not in compliance with statewide information technology plans, strategies, and standards or has not met the performance measures agreed to by the board, the division, and the sponsoring governmental body. The board may terminate any information technology initiative upon recommendation of the division;
(6) evaluate requests from governmental bodies for exemptions from this chapter and recommend to the board whether the exemption requests are granted;
(7) evaluate the information technology of governmental bodies and combine, upon board approval, such information technology and related resources when the division determines it is advisable from the standpoint of efficiency and cost effectiveness;
(8) plan and forecast future needs for information technology and establish an information clearinghouse that identifies best practices and new developments and contains detailed information regarding the state's previous experiences with the development of information technology initiatives;
(9) provide support and subject matter expertise to the board, the committee, and the panel; and
(10) provide information technology and telecommunications facilities and services in a manner determined by the board or as required by law.
Section 1-3-330. There is created an Information Technology Innovation Fund to be administered by the division. The fund must provide incentives to governmental bodies to implement enterprise information technology initiatives and electronic government projects. The fund must encourage governmental bodies to use information technology to improve the delivery of services and reduce costs. The fund must not be used to replace or offset appropriations for on-going technology expenditures and operations. The fund consists of money appropriated through the state budget process, grants, gifts, donations, or other money designated by the division. The division, subject to the approval of the board, shall develop appropriate procedures for the allocation and distribution of money contained in the fund."
SECTION 6. Section 11-35-1580(1) of the 1976 Code, as last amended by Act 153 of 1997, is further amended to read:
"(1) Information Technology Management Office. The Information Technology Management Office shall be is responsible for:
(a) assessing the need for and use of information technology;
(b) administering all procurement and contracting activities undertaken for governmental bodies involving information technology in accordance with this chapter; and
(c)(b) providing for the disposal of all information technology property surplus to the needs of a using agency;.
(d) evaluating the use and management of information technology;
(e) operating a comprehensive inventory and accounting reporting system for information technology;
(f) developing policies and standards for the management of information technology in state government;
(g) initiating a state plan for the management and use of information technology;
(h) providing management and technical assistance to state agencies in using information technology; and
(i) establishing a referral service for state agencies seeking technical assistance or information technology services."
SECTION 7. Title 1 of the 1976 Code is amended by adding:
Section 1-8-10. The Office of the State Inspector General is created as a separate division within the Budget and Control Board. The Office of State Inspector General must be headed by a State Inspector General who must be nominated by the Governor and elected unanimously by the Budget and Control Board for a term to be coterminous with that of the Governor. The Inspector General shall serve until his successor is appointed and qualifies. Vacancies must be filled in the manner of original selection. The State Inspector General must be removed from office only for incapacity, misconduct, or neglect of duty, in the manner provided by law for the removal of officers when no mode of trial or removal is provided in the Constitution. The State Inspector General shall supervise the Office of State Inspector General under the direction and control of the Budget and Control Board and shall exercise other powers and perform other duties as the board requires.
Section 1-8-20. (A) For purposes of this chapter, 'executive agency' or 'executive agencies' means any office, agency, or another instrumentality of the executive branch of the state government other than the South Carolina National Guard, and includes state technical schools and state colleges and universities.
(B) The purpose of the Office of State Inspector General is to:
(1) deter, detect, prevent, and eradicate fraud, waste, misconduct, and abuse in the programs, operations, and contracting of all government agencies within the executive branch of the state government;
(2) keep the heads of executive agencies and the Governor fully informed about problems, errors, omissions, misconduct, and deficiencies relating to or arising out of the administration of programs, operations, and contracting in executive agencies;
(3) provide leadership, coordination, and control over satellite Inspector General offices in designated executive agencies to ensure a coordinated and efficient administration of duties and use of staff.
(C) Agency or satellite Inspector General offices established in executive agencies must report to and follow the direction of the State Inspector General.
(D) The state Office of Inspector General and the State Inspector General have no jurisdiction, power, or authority over the South Carolina National Guard, the Inspector General of the South Carolina National Guard, or matters falling under the jurisdiction or cognizance of the Adjutant General or the Inspector General of the South Carolina National Guard.
Section 1-8-30. (A) It is the duty and responsibility of the State Inspector General to:
(1) initiate, supervise, and coordinate investigative activities relating to fraud, waste, misconduct, or abuse in executive agencies;
(2) recommend policies for and conduct, supervise, and coordinate activities designed to deter, detect, prevent, and eradicate fraud, waste, misconduct, and abuse in executive agencies;
(3) report expeditiously to and cooperate fully with the Attorney General. Whenever the State Inspector General has reasonable grounds to believe there has been a violation of criminal law or that a civil action should be initiated by the State, the State Inspector General shall immediately refer the matter to the Attorney General and the Budget and Control Board. The Attorney General is responsible for criminal prosecution or civil litigation and may refer matters to the State Grand Jury, a circuit solicitor, or the appropriate agency for criminal prosecution or civil litigation;
(4) refer matters to the heads of executive agencies whenever the State Inspector General determines that disciplinary or other administrative action is appropriate.
(B) The Office of Inspector General and the State Inspector General are authorized and directed to take any lawful action that is necessary and proper for the discharge of their duties and responsibilities under this chapter.
Section 1-8-40. (A) In addition to the authority otherwise provided in this chapter, the State Inspector General, in carrying out the duties and responsibilities of his office, is authorized to:
(1) make investigations and reports relating to the administration of the programs and operations of an executive agency as are, in the judgment of the State Inspector General, necessary or desirable. If the State Inspector General determines that a report should be issued, he shall consult with the Attorney General before issuing the report to ensure against an adverse impact on a grand jury proceeding or prosecution being conducted by the Attorney General, a circuit solicitor, or a law enforcement agency;
(2) request information or assistance necessary for carrying out the duties and responsibilities provided by this chapter from a federal, state, or local government agency or unit thereof;
(3) require and obtain immediately by written notice from officers and employees of executive agencies and the executive department, to the fullest extent permitted by law, information, documents, reports, answers, records, accounts, papers, and other necessary data and documentary evidence. If deemed necessary and upon approval of the Budget and Control Board, the State Inspector General shall have subpoena powers;
(4) have direct and prompt access to the heads of executive agencies when necessary for a purpose pertaining to the performance of functions and responsibilities under this chapter;
(5) select, appoint, and employ officers and employees necessary for carrying out the functions, powers, and duties of the office. The officers and employees must be employed in accordance with current personnel practices and procedures of the Budget and Control Board and may be assigned by the State Inspector General to designated executive agencies.
(B) Upon request of the State Inspector General for information or assistance, executive agencies shall immediately furnish the information and assistance to the State Inspector General or an authorized designee.
(C) If information or assistance requested is, in the judgment of the State Inspector General, unreasonably refused or not provided, the State Inspector General may report the circumstances to the head of the agency, the Attorney General, and the Budget and Control Board for appropriate action.
Section 1-8-50. (A) The State Inspector General may receive and investigate complaints or information concerning the possible existence of an activity in an executive branch agency constituting a violation of law, rules or regulations, or mismanagement, fraud, waste of funds, abuse of authority, malfeasance, misfeasance, nonfeasance, or a substantial and specific danger to the public health and safety.
(B) The Office of the State Inspector General is authorized and directed to promulgate regulations to implement the polices and purposes of this chapter including, but not limited to, regulations establishing a hotline for reporting fraud, waste, and abuse and a system of monetary rewards for persons whose reports of fraud, waste, or abuse result in savings to the State, the prevention of loss, or the recovery of money or property owed to or belonging to the State or an executive agency.
(C) No person may take or threaten to take action against an employee as a reprisal for making a complaint or disclosing information to the State Inspector General, unless the complaint was made or the information disclosed with the knowledge that it was false or with wilful disregard for its truth or falsity.
(D) The protections in this chapter for employees who report fraud, waste, misconduct, malfeasance, misfeasance, nonfeasance, or abuse in good faith are in addition and cumulative to protections provided by another law."
SECTION 8. Except as otherwise provided, this act takes effect upon approval by the Governor.
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