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Indicates Matter Stricken
Indicates New Matter
Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
January 22, 2003
H. 3208
Introduced by Reps. Wilkins, Harrison, Altman, Stille, Bailey, Walker, Sandifer, Young, Keegan, Simrill, Witherspoon, Littlejohn, Richardson, Kirsh, Taylor, Delleney, Ceips and McLeod
S. Printed 1/22/03--H.
Read the first time January 14, 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, by striking all after the enacting clause and inserting:
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, 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 is 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, 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 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.
JAMES H. HARRISON for Committee.
EXPLANATION OF IMPACT:
The Department of Commerce indicates that the main impact of this bill is to require an additional report to be published. The time and effort involved in preparing this report can be absorbed within the agency's current resources. Enactment of this bill would not result in any additional cost to the general fund.
Approved By:
Don Addy
Office of State Budget
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) these documents, which specifically include documents that reflect final financial commitments by a public body, 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) 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) 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 its project 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 is 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, 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 its project or the Coordinating Council for Economic Development has executed a final contract, whichever is later."
SECTION 5. This act takes effect upon approval by the Governor.
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