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S. 1382
STATUS INFORMATION
General Bill
Sponsors: Senators Sheheen, Lourie and Setzler
Document Path: l:\council\bills\dka\3740dw06.doc
Introduced in the Senate on April 27, 2006
Currently residing in the Senate Committee on Judiciary
Summary: Inspector general
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 4/27/2006 Senate Introduced and read first time SJ-22 4/27/2006 Senate Referred to Committee on Judiciary SJ-22
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 6 TO TITLE 1 SO AS TO ESTABLISH THE OFFICE OF STATE INSPECTOR GENERAL, AND TO PROVIDE THE QUALIFICATIONS, DUTIES, POWERS, AND RESPONSIBILITIES OF THIS OFFICE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Title 1 of the 1976 Code is amended by adding:
Section 1-6-10. As used in this title:
(1) 'Agency' means an authority, board, branch, commission, committee, department, division, or other instrumentality of the executive department of state government, including administrative bodies. The term includes a body corporate and politic established as an instrumentality of the State. The term does not include:
(a) the judicial department of state government;
(b) the legislative department of state government; or
(c) a political subdivision as defined in Section 1-9-20.
(2) 'Business relationship' means dealings of a person with an agency seeking, obtaining, establishing, maintaining, or implementing a:
(a) pecuniary interest in a contract or purchase with the agency; or
(b) license or permit requiring the exercise of judgment or discretion by the agency.
(3) 'Employee' means an individual who is employed by an agency on a full-time, part-time, temporary, intermittent, or hourly basis. The term includes an individual who contracts with an agency for personal services.
(4) 'Lobbyist' means an individual who seeks to influence decision making of the executive branch or an agency and who is authorized by the South Carolina State Ethics Commission to lobby the executive branch or an agency.
(5) 'Person' means any individual, labor union and organization, joint apprenticeship committee, partnership, association, corporation, legal representative, mutual company, joint-stock company, trust, unincorporated organization, trustee, trustee in bankruptcy, receiver, other legal or commercial entity located in part or in whole in South Carolina or doing business in South Carolina, the State and its agencies and departments or local subdivisions of state agencies and departments, and municipalities, counties, special purpose districts, school districts, and other local governments.
(6) 'Special state appointee' means a person who is:
(a) not a state officer or employee; and
(b) elected or appointed to an authority, a board, a commission, a committee, a council, a task force, or other body designated by any name that:
(i) is authorized by statute or executive order; and
(ii) functions in a policy or an advisory role in the executive, including the administrative, department of state government, including a separate body corporate and politic.
(7) 'State officer' means the:
(a) Governor;
(b) Lieutenant Governor;
(c) Secretary of State;
(d) State Auditor;
(e) State Treasurer;
(f) Attorney General; or
(g) Superintendent of Education.
Section 1-6-20. (A) There is established the Office of Inspector General. The Office of Inspector General consists of the inspector general, who is the director of the office, and an additional staff of deputy inspectors general, investigators, auditors, and clerical employees appointed by the inspector general as necessary to carry out the duties of the inspector general.
(B) The inspector general is responsible for addressing fraud, waste, abuse, and wrongdoing in agencies.
(C)(1) The Governor shall appoint the inspector general for a term of six years. The Governor may reappoint the inspector general for an additional term. The inspector general's compensation must not be reduced during the inspector general's continuance in office.
(2) The inspector general:
(a) may be removed from office only by the Governor for neglect of duty, misfeasance, malfeasance, or nonfeasance;
(b) must be an attorney or certified public accountant licensed in South Carolina; and
(c) is entitled to receive compensation set by the Governor and approved by the Budget and Control Board.
(D) Subject to the approval of the Budget and Control Board, the inspector general shall fix the salary of employees of the Office of Inspector General.
(E) Except for information declared confidential pursuant to the provisions of this chapter, records of the Office of Inspector General are subject to public inspection provided by Chapter 4, Title 30 (Freedom of Information Act).
Section 1-6-30. The inspector general shall:
(1) initiate, supervise, and coordinate investigations;
(2) recommend policies and carry out other activities designed to deter, detect, and eradicate fraud, waste, abuse, mismanagement, and misconduct in state government;
(3) receive complaints alleging a violation of:
(a) the executive branch lobbying rules;
(b) a statute or rule relating to the purchase of goods or services by a current or former employee, state officer, special state appointee, lobbyist, or person who has a business relationship with an agency;
(4) if he has reasonable cause to believe that a crime has occurred or is occurring, report the suspected crime to:
(a) the Governor; and
(b) appropriate state or federal law enforcement agencies and prosecuting authorities having jurisdiction over the matter;
(5) adopt rules for administering the Office of Inspector General;
(6) ensure that each employee, state officer, special state appointee, and person who has a business relationship with an agency is properly trained in the code of ethics;
(7) provide advice to an agency on developing, implementing, and enforcing policies and procedures to prevent or reduce the risk of fraudulent or wrongful acts within the agency;
(8) recommend legislation to the Governor and General Assembly to strengthen public integrity laws; and
(9) submit a report by February 15 annually to the General Assembly detailing the inspector general's activities.
Section 1-6-40. (A) The inspector general, as part of an investigation, may:
(1) administer oaths;
(2) examine witnesses under oath;
(3) issue subpoenas and subpoenas duces tecum; and
(4) examine the records, reports, audits, reviews, papers, books, recommendations, contracts, correspondence, or other documents maintained by an agency.
(B) The inspector general may apply to a circuit court for an order holding an individual in contempt of court if the individual refuses to give sworn testimony under a subpoena issued by the inspector general or otherwise disobeys a subpoena or subpoena duces tecum issued by the inspector general.
(C) The inspector general shall prepare a report summarizing the results of each investigation. The report is confidential in accordance with Section 1-6-80.
(D) If the attorney general has elected not to file a civil action for the recovery of funds misappropriated, diverted, missing, or unlawfully gained, the inspector general may file a civil action for the recovery of the funds in accordance with Section 1-6-60.
Section 1-6-50. If the inspector general investigates and determines that there is specific and credible evidence that a current or former employee, a current or former state officer, a current or former special state appointee, or a person who has or had a business relationship with an agency has violated the code of ethics, the inspector general may file a complaint with the Ethics Commission and:
(1) represent the State in a public proceeding before the Ethics Commission; or
(2) negotiate an agreed settlement for approval by the Ethics Commission according to its rules.
Section 1-6-60. (A) This section applies if the inspector general finds evidence of misfeasance, malfeasance, nonfeasance, misappropriation, fraud, or other misconduct that results in a financial loss to the State or in an unlawful benefit to an individual in the conduct of state business.
(B) If the inspector general finds evidence described in subsection (A), the inspector general shall certify a report of the matter to the attorney general and provide the attorney general with relevant documents, transcripts, or written statements. Not later than one hundred eighty days after receipt of the report from the inspector general, the attorney general shall do one of the following:
(1) file a civil action, including an action upon a state officer's official bond, to secure for the State the recovery of funds misappropriated, diverted, missing, or unlawfully gained. Upon request of the attorney general, the inspector general shall assist the attorney general in the investigation, preparation, and prosecution of the civil action;
(2) inform the inspector general that the attorney general does not intend to file a civil action for the recovery of funds misappropriated, diverted, missing, or unlawfully gained. If the attorney general elects not to file a civil action, the attorney general shall return to the inspector general all documents and files initially provided by the inspector general; or
(3) inform the inspector general that the attorney general is diligently investigating the matter and after further investigation may file a civil action for the recovery of funds misappropriated, diverted, missing, or unlawfully gained. However, if more than three hundred sixty-five days have passed since the inspector general certified the report to the attorney general, the attorney general loses the authority to file a civil action for the recovery of funds misappropriated, diverted, missing, or unlawfully gained and shall return to the inspector general all documents and files initially provided by the inspector general.
(C) If the inspector general has found evidence described in subsection (A) and reported to the attorney general as provided in subsection (B) and the attorney general has elected pursuant to the provisions of subsection (B)(2) or (3) not to file a civil action, the inspector general may file a civil action for the recovery of funds misappropriated, diverted, missing, or unlawfully gained.
(D) If the inspector general has found evidence described in subsection (A), the inspector general may institute forfeiture proceedings as allowed by law in a court having jurisdiction in a county where property derived from or realized through the misappropriation, diversion, disappearance, or unlawful gain of state funds may be located, unless a prosecuting attorney has already instituted forfeiture proceedings against that property.
Section 1-6-70. (A) If the inspector general discovers evidence of criminal activity, the inspector general shall certify to the appropriate prosecuting attorney the:
(1) identity of a person who may be involved in the criminal activity;
(2) criminal statute that the inspector general believes has been violated.
(B) The inspector general shall provide the prosecuting attorney with relevant documents, transcripts, or written statements. If the prosecuting attorney decides to prosecute the crime described in the information certified to the prosecuting attorney, or other related crimes, the inspector general shall cooperate with the prosecuting attorney in the investigation and prosecution of the case. Upon request of the prosecuting attorney, the inspector general may participate on behalf of the State in a resulting criminal trial.
Section 1-6-80. (A) The identity of an individual who discloses in good faith to the inspector general information alleging a violation of a state or federal statute, rule, regulation, or ordinance is confidential and must not be disclosed to anyone other than the Governor, the staff of the Office of Inspector General, or an authority to whom the investigation is subsequently referred or certified, unless the:
(1) inspector general makes a written determination that it is in the public interest to disclose the individual's identity; or
(2) individual consents in writing to disclosure of the individual's identity.
(B) The investigative records of the inspector general must be kept confidential in whole or in part.
(C) This section does not apply to a person who is a party to an action brought by the inspector general. Information received by the inspector general is not required to be produced in the course of discovery unless ordered by a court after a showing of particularized need and proof that the information requested cannot be obtained from any other source.
(D) Except as provided in subsection (E), a person, upon conviction, is guilty of a misdemeanor if he knowingly or intentionally discloses:
(1) confidential information or records;
(2) the identity of a person whose identity is confidential as provided for in subsection (A); or
(3) commits unlawful disclosure of confidential information.
(E) A person may disclose confidential information or records or the identity of a person whose identity is confidential pursuant to the provisions of subsection (A) if the Governor authorizes the disclosure of this information in the public interest."
SECTION 2. This act takes effect upon approval by the Governor.
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