Introduced by Senators Giese, Ritchie, Ravenel, Reese, Courson, Mescher and Rankin

1 Indicates Matter Stricken 2 Indicates New Matter 3 4 AMENDED 5 May 19, 2004 6 7 S. 131 8 9 Introduced by Senators Giese, Ritchie, Ravenel, Reese, Courson, 10 Mescher and Rankin 11 12 S. Printed 5/19/04--H. 13 Read the first time March 4, 2003. 14 15 16 STATEMENT OF ESTIMATED FISCAL IMPACT 17 ESTIMATED FISCAL IMPACT ON GENERAL FUND 18 EXPENDITURES: 19 $0 (No additional expenditures or savings are expected) 20 ESTIMATED FISCAL IMPACT ON FEDERAL & OTHER 21 FUND EXPENDITURES: 22 See Below 23 EXPLANATION OF IMPACT: 24 The Commission on Higher Education (CHE) indicates there 25 would be no additional costs resulting from enactment of this bill. 26 CHE does anticipate a minimal loss of tuition and fee revenue 27 (other funds) that could be absorbed by the institutions. CHE 28 estimates that only a few additional individuals would qualify for 29 in-state tuition under this bill. 30 31 Approved By: 32 Don Addy 33 Office of State Budget 34

1 [131-1] 1 2 3 4 5 6 7 8 9 A BILL 10 11 TO AMEND SECTION 59-112-50, CODE OF LAWS OF 12 SOUTH CAROLINA, 1976, RELATING TO MEMBERS OF 13 THE ARMED SERVICES OF THE UNITED STATES 14 STATIONED IN SOUTH CAROLINA AND THEIR 15 DEPENDENTS BEING ELIGIBLE FOR IN-STATE TUITION 16 RATES, SO AS TO PROVIDE THAT MEMBERS OF THE 17 COAST GUARD AND THEIR DEPENDENTS STATIONED IN 18 THIS STATE ARE ALSO ELIGIBLE FOR IN-STATE TUITION 19 RATES. 20 Amend Title To Conform 21 22 Be it enacted by the General Assembly of the State of South 23 Carolina: 24 25 SECTION 1. Section 59-112-50 of the 1976 Code is amended to 26 read: 27 28 “Section 59-112-50. Notwithstanding other provisions of this 29 chapter, during the period of their assignment to duty in South 30 Carolina members of the armed services of the United States and 31 the Coast Guard stationed in South Carolina and their dependents 32 may be considered eligible for in-state rates. When such the armed 33 service and Coast Guard personnel are ordered away from the 34 State, their dependents may continue for an additional twelve 35 months to have this eligibility at the state institutions where they 36 are enrolled at the time such the assignment ends. Such These 37 persons and their dependents may be considered eligible for 38 in-state rates for a period of twelve months after their discharge 39 from the armed services or the Coast Guard even though they were 40 not enrolled at a state institution at the time of their discharge, if 41 they have evinced an intent to establish domicile in South Carolina

1 [131] 1 1 and if they have resided in South Carolina for a period of at least 2 twelve months immediately preceding their discharge.” 3 4 SECTION 2. A.Title 2 of the 1976 Code is amended by adding: 5 6 “CHAPTER 79 7 8 South Carolina Military Preparedness and Enhancement Act 9 10 Section 2-79-5. The General Assembly finds that the South 11 Carolina Military Preparedness and Enhancement Act enacted 12 pursuant to this chapter represents a proactive response to the 13 presently evolving transformation of national defense strategies. It 14 clearly conveys this state’s intent to create a business climate that 15 is favorable to defense installations and activities through 16 legislation that assists in reducing base operating cost while 17 enhancing military value. To realign existing infrastructure and 18 generate cost savings necessary for these new defense strategies, 19 the United States Department of Defense will undergo another 20 round of base realignment and closure (BRAC) in 2005. Our 21 military installations and defense related businesses are vital to the 22 state’s economy. The United States Department of Defense 23 currently directly employs over fifty thousand people in South 24 Carolina with an annual economic impact of approximately five 25 billion dollars. It is evident that the General Assembly must 26 develop programs to assist communities in adding military value to 27 their local defense installations if South Carolina is to maintain its 28 strong military heritage and presence and the South Carolina 29 Military Preparedness and Enhancement Act constitutes one means 30 to attain these multiple objectives. 31 32 Section 2-79-10. This chapter may be cited as the South 33 Carolina Military Preparedness Act and Enhancement Act. 34 35 Section 2-79-20. As used in this chapter: 36 (1) ‘Commission’ means the South Carolina Military 37 Preparedness and Enhancement Commission. 38 (2) ‘Account’ means the South Carolina Military Value 39 Revolving Account established pursuant to Section 2-79-120. 40 (3) ‘Board’ means the State Budget and Control Board. 41 (4) ‘Defense base’ means a federally owned or operated 42 military installation or facility that is presently functioning.

1 [131] 2 1 (5) ‘Defense community’ means a political subdivision, 2 including a municipality, county, or special district that is adjacent 3 to, is near, or encompasses any part of a defense base. 4 5 Section 2-79-30. (A) There is established within the office of 6 the Governor the South Carolina Military Preparedness and 7 Enhancement Commission consisting of eleven members as 8 follows: 9 (1) one member of the House of Representatives to serve ex 10 officio appointed by the Speaker of the House of Representatives; 11 (2) one member of the Senate to serve ex officio appointed 12 by the President Pro Tempore of the Senate; 13 (3) the Secretary of Commerce or the secretary’s designee, 14 ex officio; 15 (4) eight members appointed by the Governor. To be 16 eligible for appointment by the Governor, a person must have 17 demonstrated experience in economic development, the defense 18 industry, military installation operation, environmental issues, 19 finance, local government, or the use of air space for future 20 military missions. 21 (B) The terms of the legislative members are coterminous with 22 the terms of their appointing authority. Members appointed by the 23 Governor shall serve for a term of four years ending after June 30 24 of the year the term expires and until their successors are 25 appointed and qualify, except that of those first appointed, four 26 shall serve for terms of two years, the term to be noted in the 27 appointments. Members shall serve without compensation but 28 may receive the mileage, subsistence, and per diem allowed by law 29 for members of state boards, committees, and commissions, to be 30 paid from approved accounts of the Governor’s Office, House of 31 Representatives, and Senate, as applicable. Vacancies must be 32 filled in the manner of original appointment for the unexpired 33 portion of the term. 34 35 Section 2-79-40. (A) The commission shall: 36 (1) advise the governor and the General Assembly on 37 military issues and economic and industrial development related to 38 military issues; 39 (2) make recommendations regarding: 40 (a) the development of policies and plans to support the 41 long-term viability and prosperity of the military, active and 42 civilian, in this State, including promoting strategic regional 43 alliances that may extend over state lines;

1 [131] 3 1 (b) the development of methods to improve private and 2 public employment opportunities for former members of the 3 military residing in this State; and 4 (c) the development of methods to assist 5 defense-dependent communities in the design and execution of 6 programs that enhance a community’s relationship with military 7 installations and defense-related businesses; 8 (3) develop and maintain a database of the names and public 9 business information of all prime contractors and subcontractors 10 operating in this state who perform defense-related work; 11 (4) provide information to communities, the General 12 Assembly, the state’s congressional delegation, and state agencies 13 regarding federal actions affecting military installations and 14 missions; 15 (5) serve as a clearinghouse for: 16 (a) defense economic adjustment and transition 17 information and activities; and 18 (b) information about: 19 (i) issues related to the operating costs, missions, and 20 strategic value of federal military installations located in the State; 21 (ii) employment issues for communities that depend on 22 defense bases and in defense-related businesses; 23 (iii) defense strategies and incentive programs that other 24 states are using to maintain, expand, and attract new defense 25 contractors; 26 (6) provide assistance to communities that have experienced 27 a defense-related closure or realignment; 28 (7) assist communities in the design and execution of 29 programs that enhance a community’s relationship with military 30 installations and defense-related businesses, including regional 31 alliances that may extend over state lines; 32 (8) assist communities in the retention and recruiting of 33 defense-related businesses, including fostering strategic regional 34 alliances that may extend over state lines; 35 (9) prepare a biennial strategic plan that: 36 (a) fosters the enhancement of military value of the 37 contributions of South Carolina military installations to national 38 defense strategies; 39 (b) considers all current and anticipated base realignment 40 and closure criteria; and 41 (c) develops strategies to protect the state’s existing 42 military missions and positions the State to be competitive for new 43 and expanded military missions; and

1 [131] 4 1 (10) encourage economic development in this State by 2 fostering the development of industries related to defense affairs. 3 Section 2-79-50. With prior approval of the Governor, the 4 commission may enter into an agreement with a consulting firm to 5 provide information and assistance on a pending decision of the 6 United States Department of Defense or other federal agency 7 regarding the status of military installations and defense-related 8 businesses located in this State. 9 10 Section 2-79-60. (A) Not later than July 1 of each year, the 11 commission shall prepare and submit a report to the Governor and 12 the General Assembly about the active military installations, 13 communities that depend on military installations, and 14 defense-related businesses in this State. The report must include: 15 (1) an economic impact statement describing in detail the 16 effect of the military on the economy of this State; 17 (2) a statewide assessment of active military installations 18 and current missions; 19 (3) a statewide strategy to attract new military missions and 20 defense-related business and include specific actions that add 21 military value to existing military installations; 22 (4) a list of state and federal activities that have significant 23 impact on active military installations and current missions; 24 (5) a statement identifying: 25 (a) the state and federal programs and services that assist 26 communities impacted by military base closures or realignments 27 and the efforts to coordinate those programs; and 28 (b) the efforts to coordinate state agency programs and 29 services that assist communities in retaining active military 30 installations and current missions; 31 (6) an evaluation of initiatives to retain existing 32 defense-related businesses; and 33 (7) a list of agencies with regulations, policies, programs, or 34 services that impact the operating costs or strategic value of federal 35 military installations and activities in the State. 36 (B) State agencies shall cooperate with and assist the 37 commission in the preparation of the report required pursuant to 38 Subsection (A), including providing information about regulations, 39 policies, programs, and services that may impact communities 40 dependent on military installations, defense-related businesses, and 41 the viability of existing South Carolina military missions. 42 (C) The commission shall coordinate annual meetings with the 43 head of each state agency or member of the General Assembly

1 [131] 5 1 whose district contains an active, closed, or realigned military 2 installation to discuss the implementation of the recommendations 3 outlined in the report required pursuant to subsection (A). 4 5 Section 2-79-70. When a commander of a military installation 6 receives a copy of the evaluation criteria for the base under the 7 United States Department of Defense base realignment or closure 8 process, the base commander may request that the commission 9 coordinate assistance from other state agencies to assist the 10 commander in preparing the evaluation. If the commission asks a 11 state agency for assistance pursuant to this section, the state 12 agency shall make the provision of that assistance a top priority. 13 14 Section 2-79-80. (A) A defense community may submit to the 15 commission the community military value enhancement statement 16 prepared pursuant to Section 2-79-150. 17 (B) On receiving a defense community’s military value 18 enhancement statement, the commission shall analyze the projects 19 included in the statement using the criteria it has developed. The 20 commission shall develop project analysis criteria based on the 21 criteria the United States Department of Defense uses for 22 evaluating military facilities in the department’s base realignment 23 and closure process. 24 (C) The commission shall determine whether each project 25 identified in the defense community’s military value enhancement 26 statement will enhance the military value of the military facility. 27 The commission shall assist the community in prioritizing the 28 projects that enhance the military value of a military facility, 29 giving the highest priority to projects that add the most military 30 value under the commission’s project analysis criteria. 31 (D) The commission shall refer the defense community to the 32 appropriate state agency that has an existing program to provide 33 financing for each project identified in the community’s military 34 value enhancement statement that adds military value to a military 35 facility. If there is no existing program to finance a project, the 36 commission may provide a loan of financial assistance to the 37 defense community for the project. 38 39 Section 2-79-90. (A) The commission may provide a loan of 40 financial assistance to a defense community for a project that will 41 enhance the military value of a military facility located in, near, or 42 adjacent to the defense community. The loan must be made from

1 [131] 6 1 the South Carolina Military Value Revolving Loan Account 2 established pursuant to Section 2-79-120. 3 (B) On receiving an application for a loan pursuant to this 4 section, the commission shall confirm that the project adds military 5 value to the military facility. 6 (C) If the commission determines that a project will enhance 7 the military value of the military facility, the Department of 8 Commerce, in accordance with the criteria adopted by the 9 commission pursuant to Section 2-79-100, shall: 10 (1) assess the creditworthiness of the defense community 11 and its ability to repay the loan or match the grant; and 12 (2) assess the proposed method for repayment or obtaining 13 matching funds for any particular project or grant as recommended 14 by the Department of Commerce with input as considered 15 necessary from the State Budget and Control Board. 16 (D) If the commission determines that the funds will be used to 17 enhance the military value of the military facility based on the base 18 realignment and closure criteria and that the project is financially 19 feasible, the commission may award a loan to the defense 20 community for the project. The commission shall enter into a 21 written agreement with a defense community that is awarded a 22 loan. The agreement must contain the terms and conditions of the 23 loan, including the loan repayment requirements. 24 (E) The commission may provide a loan only for a project that 25 is included in the political subdivision’s statement pursuant to 26 Section 2-79-140, or to prepare a comprehensive defense 27 installation and community strategic impact plan pursuant to 28 Section 2-79-150. 29 (F) A project financed with a loan pursuant to this section must 30 be completed on or before the fifth anniversary of the date the loan 31 is awarded. 32 (G) The amount of a loan pursuant to this section may not 33 exceed the total cost of the project. 34 35 Section 2-79-100. (A) The commission shall adopt policies, in 36 consultation with the Department of Commerce with input as 37 considered necessary from the State Budget and Control Board, 38 which contain the criteria for evaluating the credit of a loan 39 applicant and the financial feasibility of a project. The 40 commission also shall adopt a loan application form. The 41 application form may include: 42 (1) the total cost of the project; 43 (2) the amount of state financial assistance requested;

1 [131] 7 1 (3) the plan for repaying the loan; and 2 (4) any other information the commission requires to 3 perform its duties and to protect the public interest. 4 (B) The commission may not accept an application for a loan 5 from the loan account unless the application is submitted in 6 affidavit form by the officials of the defense community. The 7 board shall prescribe the affidavit form. 8 9 Section 2-79-110. (A) A defense community in this State may 10 borrow money from the State, including by direct loan, based on 11 the credit of the defense community to finance a project included 12 in the community’s military value enhancement statement. 13 (B) A defense community may enter into a loan agreement with 14 the State to provide financing for a project. The defense 15 community may pledge the taxes of the community or provide any 16 other guarantee for the loan. 17 (C) Money borrowed must be segregated from other funds 18 under the control of the defense community and may only be used 19 for purposes related to a specific project. 20 (D) The authority granted by this section does not affect the 21 ability of a defense community to incur debt using other statutorily 22 authorized methods. 23 24 Section 2-79-120. (A) The South Carolina Military Value 25 Revolving Loan Account is established as the State Treasury 26 separate and distinct from the general fund of the State and all 27 other funds. The account may be funded by such appropriations as 28 the General Assembly may provide, gifts, and grants. Earnings on 29 the account must remain in the account and be used for the purpose 30 for which the account was established. Balances in the account 31 carry forward in the account to succeeding fiscal years. 32 (B) The account may be used only for loans made pursuant to 33 this chapter. The commission shall deposit to the credit of the 34 account all loan payments made by a political subdivision for a 35 loan pursuant to Section 2-79-90. The loan payments must be used 36 to reimburse the account to fund subsequent loans. 37 38 Section 2-79-130. The commission may solicit and accept gifts 39 and grants from any source for the purposes of this chapter. 40 41 Section 2-79-140. (A) A defense community that applies for 42 financial assistance from the account shall prepare, in consultation 43 with the authorities from each defense base associated with the

1 [131] 8 1 community, a defense base military value enhancement statement 2 that illustrates specific ways the funds will enhance the military 3 value of the installations and must include the following 4 information for each project: 5 (1) the purpose for which financial assistance is requested, 6 including a description of the project; 7 (2) the source of other funds for the project; 8 (3) a statement on how the project will enhance the military 9 value of the installation; 10 (4) whether the defense community has coordinated the 11 project with authorities of the military installation and whether any 12 approval has been obtained from those authorities; 13 (5) whether any portion of the project is to occur on the 14 military installation; 15 (6) whether the project will have any negative impact on the 16 natural or cultural environment; 17 (7) a description of any known negative factors arising from 18 the project that will affect the community or the military 19 installation; and 20 (8) a description of how the project will address future base 21 realignment or closure. 22 (B) The commission may require a defense community to 23 provide any additional information the commission requires to 24 evaluate the community’s request for financial assistance pursuant 25 to this section. 26 (C) Two or more defense communities near the same defense 27 base that apply for financial assistance from the account may 28 prepare a joint statement. 29 (D) A copy of the defense base military value enhancement 30 statement must be distributed to the authorities of each defense 31 base included in the statement and the commission. 32 (E) This section does not prohibit a defense community that is 33 not applying for financial assistance from preparing a defense base 34 military value enhancement statement pursuant to this section. 35 36 Section 2-79-150. (A) A defense community may request 37 financial assistance from the account to prepare a comprehensive 38 defense installation and community strategic impact plan that 39 states the defense community’s long-range goals and development 40 proposals relating to the following purposes: 41 (1) controlling negative effects of future growth of the 42 defense community on the defense base and minimizing

1 [131] 9 1 encroachment on military exercises or training activities connected 2 to the base; 3 (2) enhancing the military value of the defense base while 4 reducing operating costs; and 5 (3) identifying which, if any, property and services in a 6 region can be shared by the defense base and the defense 7 community. 8 (B) The comprehensive defense installation and community 9 strategic impact plan must include, if appropriate, maps, diagrams, 10 and text to support its proposals and must include the following 11 elements as they relate to each defense base included in the plan: 12 (1) a land use element that identifies: 13 (a) proposed distribution, location, and extent of land uses 14 such as housing, business, industry, agriculture, recreation, public 15 buildings and grounds, and other categories of public and private 16 land uses as those uses may impact the defense base; and 17 (b) existing and proposed regulations of land uses, 18 including zoning, annexation, or planning regulations as those 19 regulations may impact the defense base; 20 (2) a transportation element that identifies the location and 21 extent of existing and proposed freeways, streets, and roads and 22 other modes of transportation; 23 (3) a population growth element that identifies past and 24 anticipated population trends; 25 (4) a water resources element that: 26 (a) addresses currently available surface water and 27 groundwater supplies; and 28 (b) addresses future growth projections and ways in which 29 the water supply needs of the defense community and the defense 30 base can be adequately served by the existing resources, or if such 31 a need is anticipated, plans for securing additional water supplies; 32 (5) a conservation element that describes methods for 33 conservation, development, and use of natural resources, including 34 land, forests, soils, rivers and other waters, wildlife, and other 35 natural resources; 36 (6) an open-space area element that includes: 37 (a) a list of existing open-space land areas; 38 (b) an analysis of the defense base’s forecasted needs for 39 open-space areas to conduct its military training activities; and 40 (c) suggested strategies under which land on which some 41 level of development has occurred can make a transition to an 42 open-space area, if needed;

1 [131] 10 1 (7) a restricted airspace element that creates buffer zones, if 2 needed, between the defense base and the defense community; and 3 (8) a military training route element that identifies existing 4 routes and proposes plans for additional routes, if needed. 5 (C) Two or more defense communities near the same defense 6 base may prepare a joint plan. 7 8 Section 2-79-160. If a defense community determines that an 9 ordinance, rule, or plan proposed by the community may impact a 10 defense base or the military exercise or training activities 11 connected to the base, the defense community shall seek comments 12 and analysis from the defense base authorities concerning the 13 compatibility of the proposed ordinance, rule, or plan with base 14 operations. The defense community shall consider and analyze the 15 comments and analysis before making a final recommendation 16 relating to the proposed ordinance, rule, or plan. 17 18 Section 2-79-170. Any unused or underused state property may 19 be sold or leased, or an easement over the property may be 20 granted, to the United States for the use and benefit of the United 21 States armed forces if the State Budget and Control Board and the 22 commission, after consultation with appropriate military 23 authorities, determine that the sale, lease, or easement would 24 materially assist the military in accomplishing its mission. A sale, 25 lease, or easement pursuant to this section must be at market 26 value.” 27 28 B. Notwithstanding the general effective date of this act, this 29 section takes effect July 1, 2005. 30 31 SECTION 3. Except where otherwise provided, this act takes 32 effect upon approval by the Governor. 33 ----XX---- 34

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