(A) A state agency may receive and spend unanticipated federal funds, and funds from private foundations or industries, which are not included in the appropriations act, but state agencies must submit expenditure proposals to the board and receive authorization from the board before expenditure of funds. No authorization may be made without first securing and considering the board’s recommendation on each expenditure proposal. The request must include the conditions imposed on the state’s receipt and expenditure of the federal funds as those conditions are described pursuant to § 2-65-20(2), and the board’s authorization to receive and expend the federal funds must specifically accept those conditions. Any such authorization is subject to all of the following standards:

(1) The unanticipated nature of the receipt of the federal funds precluded the consideration and approval of the federal funds as part of the state appropriations process as described in § 2-65-20.

Terms Used In South Carolina Code 2-65-30

  • Agency: means any state office, department, institution, board, commission, council, committee, or other entity of the executive, judicial, or legislative branch. See South Carolina Code 2-65-15
  • Appropriations act: means the annual general appropriations act. See South Carolina Code 2-65-15
  • Board: means the Executive Budget Office. See South Carolina Code 2-65-15
  • Federal funds: means financial assistance made to a state agency by the United States Government in any form including, but not limited to, a grant, loan, subsidy, reimbursement, contract, donation, or shared federal revenues, or noncash federal assistance in the form of equipment, buildings, and land. See South Carolina Code 2-65-15
  • Major federal program: means a program which:

    (a) represents a transfer of program responsibility from the federal to the state level;

    (b) is available to the State on a noncompetitive basis;

    (c) is financially significant in relation to its proportion of the administering agency's budget. See South Carolina Code 2-65-15
  • Matching funds: means a specific amount of general fund or other funds monies identified by a state agency, and required by the federal government, as a cash contribution for a federal program. See South Carolina Code 2-65-15

(2) The federal funds will assist the applicant state agency to achieve objectives or goals in keeping with the recognized powers and functions of the state agency.

(3) The applicant state agency is the appropriate entity to conduct project activities and no duplication of services is created by the authorization.

(4) State matching funds, if required, are available within the existing resources of the applicant state agency.

(5) The project benefits the health or welfare of the people of the State.

(B) Notwithstanding any other provisions of this chapter, no authorization of unanticipated federal or private foundation or industry funds may involve a commitment of future legislative enactment to provide additional state funds to support the project.

(C) The board shall provide the House Ways and Means Committee and the Senate Finance Committee with periodic reports which describe actions taken under the provisions of this section.

(D) Notwithstanding any other provisions of this chapter, a state agency may not implement an unanticipated major federal program without prior approval of the General Assembly, except:

(1) that to the extent that the unanticipated program replaces existing services currently provided by a state agency, other governmental entity, private nonprofit organization, or other service provider, the services may be authorized by the board to continue at an equivalent level, within the constraints of federal law and funding, until the General Assembly acts;

(2) if the unanticipated program creates services not currently provided, and the board agrees that delayed implementation would result in a significant loss of federal funds to the State, the program may be authorized by the board to proceed at a minimal level, until such time as the General Assembly may act.

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