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H. 3340
STATUS INFORMATION
General Bill
Sponsors: Rep. Davenport
Document Path: l:\council\bills\pt\1170mm03.doc
Companion/Similar bill(s): 34, 3208
Introduced in the House on January 16, 2003
Currently residing in the House Committee on Judiciary
Summary: Oversight of public economic development initiatives
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 1/16/2003 House Introduced and read first time HJ-235 1/16/2003 House Referred to Committee on Judiciary HJ-235
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 SECTION 13-1-25 SO AS TO PROVIDE THAT ALL MONIES USED BY THE DEPARTMENT OF COMMERCE IN CARRYING OUT ITS PURPOSES BE TREATED LIKE PUBLIC MONIES, NOTWITHSTANDING THEIR SOURCE, AND TO PROVIDE FOR REVIEW OF EXPENDITURES FOR COMPLIANCE AND REASONABLENESS; BY ADDING SECTION 13-1-55 SO AS TO PROVIDE FOR AN ANNUAL ACCOUNTING TO THE GENERAL ASSEMBLY OF THE DEPARTMENT OF COMMERCE'S ECONOMIC EFFORTS FOR THE YEAR, COMPARISONS TO PAST STATE EFFORTS AND THOSE OF OTHER STATES, RELATIVE SUCCESSES AS AGAINST DEPARTMENT PROJECTIONS, AND PLANS FOR FUTURE EFFORTS, AND TO PROVIDE THAT THE ANNUAL ACCOUNTING TO THE GENERAL ASSEMBLY INCLUDE THE RECEIPT AND USE OF PRIVATE FUNDS BY THE DEPARTMENT AND THE RECEIPT OF ADDITIONAL COMPENSATION BY DEPARTMENT EMPLOYEES; TO AMEND SECTION 13-1-45, RELATING TO THE SOUTH CAROLINA WATER AND WASTEWATER INFRASTRUCTURE FUND AND POWERS AND DUTIES OF THE DEPARTMENT OF COMMERCE, SO AS TO PROVIDE FOR TREATMENT OF MONIES IN THE FUND LIKE PUBLIC MONIES, NOTWITHSTANDING THEIR SOURCE, AND TO REQUIRE REVIEW OF EXPENDITURES FOR COMPLIANCE AND REASONABLENESS; TO AMEND SECTION 13-1-1720, AS AMENDED, RELATING TO THE PURPOSES AND DUTIES OF THE COORDINATING COUNCIL FOR ECONOMIC DEVELOPMENT, SO AS TO PROVIDE THAT PRIVATE FUNDS AND FOUNDATION GRANT MONIES USED BY THE COUNCIL IN CARRYING OUT ITS PURPOSE BE TREATED LIKE PUBLIC MONIES AND TO PROVIDE FOR REVIEW OF EXPENDITURES FOR COMPLIANCE AND REASONABLENESS; AND TO AMEND SECTION 30-4-40, AS AMENDED, RELATING TO MATTERS EXEMPT FROM THE DISCLOSURE PROVISIONS OF THE FREEDOM OF INFORMATION ACT, SO AS TO PROVIDE THAT MATERIALS RELATIVE TO THE ATTRACTION OF INDUSTRY OR BUSINESS TO THE STATE ARE SUBJECT TO DISCLOSURE ONCE NEGOTIATIONS BETWEEN THE INDUSTRY OR BUSINESS AND THE PUBLIC BODY ARE COMPLETED.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The General Assembly finds that:
(1) knowledge of the economy of this State plays a central role in its legislative process;
(2) members of the General Assembly require a comprehensive understanding of the present economic health and the potential for economic growth of this State and the economic position of this State in relation to its neighbor states in order to represent the people of South Carolina effectively; and
(3) this requisite knowledge and understanding of the state of the economy of South Carolina demands that the members of the General Assembly receive regular, comprehensive reports of the program, goals, and strategies of the Department of Commerce.
SECTION 2. Article 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 and are subject to all accountability and disclosure requirements governing public monies, except as limited by Section 30-4-40.
(B) In addition to all other required audits, reviews, and reports, each fund also is subject to a review of all expenditures:
(1) generally, to ensure compliance with laws governing public monies. This review must be undertaken by the legal counsel for the department; and
(2) for recreation and entertainment specifically, to ensure reasonableness. This review must be undertaken by chief legal counsel to the Governor."
SECTION 3. A. Article 1, Chapter 1, Title 13 of the 1976 Code is amended by adding:
"Section 13-1-55. Beginning with April 1, 2003, and annually after that, the Secretary of the Department of Commerce shall present to the General Assembly a report on the department's economic efforts during the previous calendar year, including an accounting in these areas of concern:
(1) all projects completed, including for each project, the:
(a) number of jobs created and average hourly wages or annual salaries;
(b) location; and
(c) elements of incentive packages used;
(2) all projects offered but not opened, including:
(a) an assessment of the reasons for failure of projects to open; and
(b) proposals for consideration by the General Assembly to assist the department in its negotiations;
(3) all factory and plant closings, including:
(a) the number of jobs lost;
(b) the location of each closed factory or plant;
(c) an assessment of the reasons for each closing;
(4) the department's strategies and recommendations for the coming year, including:
(a) an assessment of the relative risk of loss of factories, plants, and jobs in the State, and plans for preventing future closings of factories and plants and for preventing future losses of jobs;
(b) plans for:
(i) increasing the number of economic development proposals within the State;
(ii) drawing an increasing number of economic development proposals into the State; and
(iii) creating new incentives for economic development proposals; and
(5) the secretary's assessment of the performance of the department, including a comparison to:
(a) the department's performance over the past three two-year periods;
(b) the projections of the department; and
(c) economic development in neighboring states;
(6) all private funds received by the department and how the funds improve economic development; and
(7) all department employees who receive any type of public or private compensation in addition to their state-approved salary and benefits."
B. This section takes effect upon approval by the Governor and first applies with respect to an accounting of the department's economic efforts for calendar year 2002-2003.
SECTION 4. Section 13-1-45 of the 1976 Code, as added by Act 387 of 2000, is amended by adding at the end:
"(P)(1) The monies constituting this fund are public monies for all purposes, notwithstanding their public or private source, and are subject to all accountability and disclosure requirements governing public monies, except as limited by Section 30-4-40.
(2) In addition to the annual audit required by Section 13-1-50, the fund also is subject to a review of all expenditures:
(a) generally, to ensure compliance with laws governing public monies. This review must be undertaken by the legal counsel for the department; and
(b) for recreation and entertainment specifically, to ensure reasonableness. This review must be undertaken by chief legal counsel to the Governor."
SECTION 5. Section 13-1-45(C)(8), (9), (10), and (11) of the 1976 Code, as added by Act 387 of 2000, is amended to read:
"(8) acquire by purchase, lease, donation, or other lawful means and sell, convey, pledge, lease, exchange, transfer, and dispose of all or part of its properties and assets of every kind and character or any interest in it to further the public purpose of the fund, without further approval or authorization subject to subsection (P);
(9) procure insurance, guarantees, letters of credit, and other forms of collateral or security or credit support from any a public or private entity, including any department, agency, or instrumentality of the United States or this State, for the payment of any a debt issued by a qualified borrower or other entity receiving assistance pursuant to this section, including the power to pay premiums or fees on insurance, guarantees, letters of credit, and other forms of collateral or security or credit support, without further approval or authorization subject to subsection (P);
(10) collect fees and charges in connection with financing assistance and expend such those funds to effectuate the purposes of this section, subject to subsection (P);
(11) apply for, receive, and accept from any source, aid, grants, and contributions of money, property, labor, or other things of value to be used to carry out the purposes of this section, subject to subsection (P);"
SECTION 6. Section 13-1-1720(A)(4) of the 1976 Code, as last amended by Act 387 of 2000, is further 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 and are subject to all accountability and disclosure requirements governing public monies, except as limited by Section 30-4-40. In addition to the reports required by Section 13-1-1730, the use of funds is subject to review of expenditures:
(a) generally, to ensure compliance with laws governing public monies. This review must be undertaken by the legal counsel for the department; and
(b) for recreation and entertainment specifically, to ensure reasonableness. This review must be undertaken by chief legal counsel to the Governor;"
SECTION 7. 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 its agent to attract business or industry to invest within South Carolina; except that these materials lose their exemption and are subject to disclosure once negotiations between the business or industry and the public body are completed, whether by acceptance, rejection, or expiration of the outstanding offer."
SECTION 8. This act takes effect upon approval by the Governor.
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