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H. 3208
STATUS INFORMATION
General Bill
Sponsors: Reps. Wilkins, Harrison, Altman, Stille, Bailey, Walker, Sandifer, Young, Keegan, Simrill, Witherspoon, Littlejohn, Richardson, Kirsh, Taylor, Delleney, Ceips, McLeod, J.E. Smith, Bingham, Toole, Duncan, Mahaffey, Hinson, Viers, White and Owens
Document Path: l:\council\bills\pt\1143mm03.doc
Companion/Similar bill(s): 34, 3340
Introduced in the House on January 14, 2003
Introduced in the Senate on January 30, 2003
Last Amended on January 28, 2003
Currently residing in the Senate Committee on Labor, Commerce and Industry
Summary: All Dept. of Commerce and Coordinating Council for Economic Development funds treated as public; incentive offers and disclosure requirements
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
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12/18/2002 House Prefiled
12/18/2002 House Referred to Committee on Judiciary
1/9/2003 Scrivener's error corrected
1/14/2003 House Introduced and read first time HJ-84
1/14/2003 House Referred to Committee on Judiciary HJ-85
1/15/2003 House Member(s) request name added as sponsor: Taylor
1/16/2003 House Member(s) request name added as sponsor: Delleney
1/21/2003 House Member(s) request name added as sponsor: Ceips
1/22/2003 House Committee report: Favorable with amendment Judiciary HJ-2
1/22/2003 House Member(s) request name added as sponsor: McLeod
1/23/2003 House Member(s) request name added as sponsor: J.E.Smith,
Bingham, Toole, Duncan, Mahaffey
1/28/2003 House Member(s) request name added as sponsor: Hinson, Viers,
White, Owens
1/28/2003 House Amended HJ-17
1/28/2003 House Read second time HJ-22
1/29/2003 House Rep. Harrison moved to reconsider the vote whereby H
3208 was given a second reading HJ-19
1/29/2003 House Debate adjourned on motion to reconsider until Thursday,
January 30, 2003 HJ-20
1/30/2003 House Motion to reconsider tabled HJ-8
1/30/2003 House Read third time and sent to Senate HJ-10
1/30/2003 Senate Introduced and read first time SJ-9
1/30/2003 Senate Referred to Committee on Labor, Commerce and Industry
SJ-9
3/13/2003 Senate Committee report: Favorable with amendment Labor,
Commerce and Industry SJ-10
3/17/2003 Scrivener's error corrected
4/10/2003 Senate Special order SJ-20
4/17/2003 Senate Returned to statewide second reading calendar SJ-16
1/13/2004 Senate Recommitted to Committee on Labor, Commerce and Industry
SJ-51
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
12/18/2002
1/9/2003
1/22/2003
1/28/2003
3/13/2003
3/17/2003
Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
March 13, 2003
H. 3208
Introduced by Reps. Wilkins, Harrison, Altman, Stille, Bailey, Walker, Sandifer, Young, Keegan, Simrill, Witherspoon, Littlejohn, Richardson, Kirsh, Taylor, Delleney, Ceips, McLeod, J.E. Smith, Bingham, Toole, Duncan, Mahaffey, Hinson, Viers, White and Owens
S. Printed 3/13/03--S. [SEC 3/17/03 9:24 AM]
Read the first time January 30, 2003.
To whom was referred a Bill (H. 3208) to amend the Code of Laws of South Carolina, 1976, by adding Section 13-1-25 so as to provide that monies constituting a fund of any kind used by the Department of Commerce, etc., respectfully
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, page 2, by striking lines 29-32 and inserting:
/ "(B) In addition to all other required audits, reviews, and reports, by January 1 of each year the director shall 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 House Ways and Means Committee a detailed written report of all expenditures for /
Amend further, page 2, by striking lines 40-42 and inserting:
/ announcement by the company. /
Amend further, by striking SECTIONS 3, 4, 5 and 6 in their entirely and inserting:
/ SECTION 3. Section 34-4-20(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 4. 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 5. 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 6. 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 7. This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.
J. VERNE SMITH for Committee.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 13-1-25 SO AS TO PROVIDE THAT MONIES CONSTITUTING A FUND OF ANY KIND USED BY THE DEPARTMENT OF COMMERCE, REGARDLESS OF THEIR SOURCE, ARE PUBLIC MONIES SUBJECT TO ALL ACCOUNTABILITY AND DISCLOSURE REQUIREMENTS GOVERNING PUBLIC MONIES AND TO REQUIRE AN ANNUAL REPORT OF ALL EXPENDITURES TO THE GOVERNOR AND THE GENERAL ASSEMBLY; TO AMEND SECTION 13-1-1720, RELATING TO THE PURPOSE AND DUTIES OF THE COORDINATING COUNCIL FOR ECONOMIC DEVELOPMENT, SO AS TO PROVIDE THAT FUNDS FROM FOUNDATION GRANTS AND PRIVATE FUNDS USED BY THE COUNCIL TO ENHANCE ECONOMIC GROWTH AND DEVELOPMENT ARE PUBLIC MONIES SUBJECT TO ALL ACCOUNTABILITY AND DISCLOSURE REQUIREMENTS GOVERNING PUBLIC MONIES UNLESS OTHERWISE EXEMPTED; AND TO AMEND SECTION 30-4-40, AS AMENDED, RELATING TO INFORMATION EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT, SO AS TO PROVIDE THAT A DOCUMENT REFLECTING THE FINAL FINANCIAL COMMITMENT BY A PUBLIC BODY IS A COVERED DOCUMENT OF, OR INCIDENTAL TO, A PROPOSED CONTRACTUAL ARRANGEMENT AND A PROPOSED SALE OR PURCHASE OF PROPERTY AND THEREFORE SUBJECT TO DISCLOSURE AS PRESCRIBED, THAT A CONTRACT RELATED TO EFFORTS OR ACTIVITIES OF A PUBLIC BODY TO ATTRACT OR RETAIN BUSINESS OR INDUSTRY TO INVEST IN THIS STATE IS EXEMPT ONLY UNTIL THE BUSINESS OR INDUSTRY PUBLICLY ANNOUNCES ITS PROJECT OR THE COUNCIL EXECUTES A FINAL CONTRACT, AND THAT DOCUMENTATION OF EFFORTS OR ACTIVITIES OF A PUBLIC BODY OR ONE ACTING FOR A PUBLIC BODY TO ATTRACT OR RETAIN BUSINESS OR INDUSTRY TO INVEST WITHIN SOUTH CAROLINA IS EXEMPT FROM DISCLOSURE UNLESS THE DOCUMENTS RELATE TO THE FINANCIAL COMMITMENT BY A PUBLIC BODY, WHICH DOCUMENTATION LOSES ITS EXEMPTION ONCE THE BUSINESS OR INDUSTRY HAS PUBLICLY ANNOUNCED ITS PROJECT OR THE COUNCIL HAS EXECUTED A FINAL CONTRACT.
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 Speaker of the House, and the President Pro Tempore of the Senate a detailed 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 or execution of a final contract by the Coordinating Council for Economic Development, whichever is later."
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. Section 30-4-40(a)(5) of the 1976 Code, as amended by Act 423 of 1998, is further amended to read:
"(5) Documents of and documents incidental to proposed contractual arrangements and documents of and documents incidental to proposed sales or purchases of property; however:
(a)(A) these documents, which specifically include documents that reflect final financial commitments by a public body other than competitive rates quoted by a public body for service, are not exempt from disclosure once a contract is entered into or the property is sold or purchased except as otherwise provided in this section;
(b)(B) a contract for the sale or purchase of real estate shall remain exempt from disclosure until the deed is executed, but this exemption applies only to those contracts of sale or purchase where the execution of the deed occurs within twelve months from the date of sale or purchase;
(c)(C) a contract related to efforts or activities of a public body to attract or retain business or industry to invest within South Carolina remains exempt from disclosure until the business or industry has announced publicly it will locate its project within the State or once the Coordinating Council for Economic Development has executed a final contract, whichever is later; and
(D) confidential proprietary information provided to a public body for economic development or contract negotiations purposes or competitive rates quoted by a public body for service is are not required to be disclosed."
SECTION 4. 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 or any person or entity acting on behalf of a public body to attract or retain business or industry to invest within South Carolina; however, except for competitive rates quoted by a public body for service, this provision does not exempt from disclosure documents related to final financial commitments made by a public body once the business or industry has announced publicly it will locate its project within the State or the Coordinating Council for Economic Development has executed a final contract, whichever is later."
SECTION 5. Section 30-4-40 of the 1976 Code, as last amended by Act 350 of 2002, is further amended by adding at the end:
"(d) Notwithstanding any other provision of law, a document relating to activities of a public body to attract or retain business or industry to invest within South Carolina, including competitive rates quoted by a public body for service, which do not result in a contract or a final financial commitment remains exempt from disclosure."
SECTION 6. This act takes effect upon approval by the Governor.
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