DELIVERABLE GROUP 4 House Legislative Oversight Review of S - PowerPoint PPT Presentation

DELIVERABLE GROUP 4 House Legislative Oversight Review of S ecretary of S tate’s Office 1

Disclaimer: Updates to Program Evaluation Report In the course of preparing the Deliverable Group presentations, some data provided in the original Program Evaluation Report has been corrected. The presentations will reference the corrected data, and the Program Evaluation Report will be updated once the Deliverable Group presentations are concluded. 2

Deliverable Group 4 Divisions Grouped in Deliverable Group 4:  Municipalities  Investigations Functions Related to Municipalities  Legal Functions Related to Municipalities  All Other Legal Functions Not Previously Discussed 3

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Municipalities  The S ecretary of S tate’s Municipal Coordinator is supervised by the Director of Public Charities.  The Municipalities Coordinator is also assisted by the Legal Division and Investigations Division with certain functions.  Although Municipalities is part of the Division of Public Charities, it was not covered in Deliverable Group 1 due to the number and variety of functions included under that area. 5

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S ervice of Process  S outh Carolina law requires the S ecretary of S tate to serve as the agent for service of process for certain types of entities, including:  Foreign corporations conducting business within the state without authorization.  Business entities that have failed to maintain a registered agent within the state.  Business entities whose registered agent cannot be served despite due diligence on behalf of the serving party. 7

Required by S .C. Code §§ 15-9-245, -250, -280, -430, -440, -460; § 27-40-130; Acceptance of S ervice of Process for Other Entities §§ 33-15-200, -310; §§ 33-31-1520,-1531, -1707; Deliverable No. 164 §§ 33-41-1200, -1190; §§ 33-42-220, -1620, -1670; §§ 33-44-111, -1007, -1008; § 37-17-30(B)(2); § 40-43-83(B); § 46-33-40 Cust omers: Legal Communit y; Business Communit y; General Public Number of Cust omers S erved Upon confirmation The service of in 2017-18: 661 of delivery, the The S ecretary of process is sent to certified mail Tot al Employee Equivalents in S tate receives a the defendant by 2017-18: 0.24 receipt is sent to service of process certified mail the requesting request. within 5 business party to be filed days. with the court. Out come S ought by Agency* Fulfill dut ies as agent for service of process when required and aut horized by 8 st at ut e. *Legislat ive int ent not expressly st at ed.

Required by S .C. Code §§ 15-9-245, -250, -280, -430, -440, -460; § 27-40-130; Acceptance of S ervice of Process for Other Entities §§ 33-15-200, -310; §§ 33-31-1520,-1531, -1707; Deliverable No. 164 §§ 33-41-1200, -1190; §§ 33-42-220, -1620, -1670; §§ 33-44-111, -1007, -1008; § 37-17-30(B)(2); In order for the S ecretary of S tate to accept a service of process request, § 40-43-83(B); § 46-33-40 the customer must provide the following: Cust omers: Legal Communit y; Business Communit y; General Public  Two copies of the documents to be served. In most cases, the documents Number of Cust omers S erved in 2017-18: 661 must have been filed with the appropriate court, and evidence of this Tot al Employee Equivalents in filing must be present on the document. 2017-18: 0.24  The $10.00 filing fee.  An address of the party to be served, unless the entity is already on file Out come S ought by Agency* with the S ecretary of S tate. Fulfill dut ies as agent for service of process when required and aut horized by 9 st at ut e. *Legislat ive int ent not expressly st at ed.

Required by S .C. Code §§ 15-9-245, -250, -280, -430, -440, -460; § 27-40-130; Rej ection of S ervice of Request §§ 33-15-200, -310; §§ 33-31-1520,-1531, -1707; Deliverable No. 165 §§ 33-41-1200, -1190; §§ 33-42-220, -1620, -1670; §§ 33-44-111, -1007, -1008; § 37-17-30(B)(2); § 40-43-83(B); § 46-33-40  If a service of process request does not have the required copies, fee, or Cust omers: address, then staff will rej ect the request. Legal Communit y; Business Communit y; General Public Number of Cust omers S erved  S ervice of process requests are also rej ected when statutes do not in 2017-18: 194 specifically authorize acceptance of service by the S ecretary of S tate. Tot al Employee Equivalents in 2017-18: 0.04  For example, the S ecretary of S tate cannot accept service of process for domestic corporations under any circumstance, or natural persons unless specifically authorized by statute.  When a request is rej ected, staff will return the documents to the requestor, Out come S ought by Agency* and keep a record of the rej ection. Fulfill dut ies as agent for service of process when required and aut horized by 10 st at ut e. *Legislat ive int ent not expressly st at ed.

Service of Process Requests 1000 900 214 800 194 700 102 184 600 500 400 701 661 642 300 591 200 100 0 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 Request s Accepted Request s Rej ect ed 11

S pecial Registered Agent Filings  S outh Carolina law requires certain types of organizations operating within the state to designate a registered agent with the S ecretary of S tate.  These entities include:  Discount Medical Plan Organizations  Non-Resident Prescription Drug Distributors 12

Required by S .C. Code § 37-17-30(B)(1) Discount Medical Plan Organization Cust omers: Discount Medical Plan Organizat ions Registered Agent Designation Number of Cust omers S erved Deliverable No. 166 in 2017-18: 0 Tot al Employee Equivalents in 2017-18: 0.00  Under the Discount Medical Plan Organization Registration Act, discount medical plan organizations or marketers that sell, market, promote, advertise, or distribute a discount medical plan that is not insurance must designate a S outh Carolina resident as registered agent, and register the agent with the S ecretary of S tate.  The filing fee for this form is $10.00.  No registered agent filings for this type of entity have been received by Legislat ive Int ent the S ecretary of S tate during the time period covered by the Program To regulat e prescription drug Evaluation Report. discount cards. (2006 Act No. 377) 13

Required by S .C. Code § 40-43-83(B) Non-Resident Prescription Drug Distributor Cust omers: Non-Resident Prescript ion Drug Dist ribut ors Registered Agent Designation Number of Cust omers S erved Deliverable No. 167 in 2017-18: 0 Tot al Employee Equivalents in 2017-18: 0.00  Under the S outh Carolina Pharmacy Practice Act, non-resident prescription drug distributors must designate a registered agent for service of process with the S ecretary of S tate.  The filing fee for this form is $10.00. Legislat ive Int ent The purpose of t he S out h Carolina Pharmacy Pract ice Act  No registered agent filings for this type of entity have been received is "t o promot e, preserve, by the S ecretary of S tate during the time period covered by the and prot ect t he public healt h, safet y, and welfare by … Program Evaluation Report. regulat ion of all sit es or persons, in or out of t his S t at e, t hat dist ribut e, 14 manufact ure, possess, or sell drugs or devices wit hin t his S t at e..." (S ect ion 40-43-10)

Municipal and Annexation Filings  The S ecretary of S tate is responsible for filing several types of records related to municipalities, including:  Municipal Incorporation Filings  Notices of Annexation  Redevelopment Commission Certificates 15

Required by S .C. Code § 5-1-24; Regulat ion 113-200 Application for Municipal Incorporation Cust omers: Cit izens seeking t o Deliverable No. 168 incorporat e a municipality; Joint Legislat ive Commit t ee on Municipal Incorporat ion Citizens of an area seeking municipal incorporation file an application with the Number of Cust omers S ecretary of S tate’s Office that contains all the information required under S .C. S erved in 2017-18: 0 Code §5-1-30 and Regulation 113-200, including: Tot al Employee Equivalents in 2017-18: 0.00  Certificate of Population Density  Certification of Total Land Area   Certificate of Boundaries Certification of Current Assessed Value of Property  S igned Petition for Incorporation  S ervice Feasibility S tudy Legislat ive Int ent  Proof of S ervice of Notice of Intent To comply wit h t he mandat e of (including services to be provided to Incorporate on Nearby t he Const it ution t hat t he to residents and budgetary items) General Assembly shall est ablish Municipalities and S outh Carolina crit eria and procedures for t he Municipal Association. incorporat ion of municipalities, readj ust ment of municipal boundaries, and provide for st ruct ure, organizat ion, powers, dut ies, funct ions and 16 responsibilit ies of municipalit ies. (1975 Act No. 283)