South Carolina General Assembly
105th Session, 1983-1984

Bill 2912

                    Current Status

Bill Number:               2912
Ratification Number:       143
Act Number                 201
Introducing Body:          House
Subject:                   Authorizing short-term, interest-bearing
                           notes to certain state departments by the
                           State Treasurer
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A201, R143, H2912)

A JOINT RESOLUTION TO ASSURE THE RECEIPT OF THE FOUR PERCENT REBATE FOR FUNDS WITHHELD FOR THE MEDICAID PROGRAM TO AUTHORIZE SHORT-TERM, INTEREST-BEARING NOTES TO CERTAIN STATE DEPARTMENTS BY THE STATE TREASURER, TO AUTHORIZE REPAYMENT OF THE LOAN FROM 1983-84 APPROPRIATIONS, AND TO AUTHORIZE THE PROMULGATION OF REGULATIONS TO IMPLEMENT THE PROVISIONS OF THIS RESOLUTION.

Whereas, federal laws now provide for the temporary withholding of four percent of federal financial participation for the Medicaid program; and

Whereas, the amount withheld will not be released to state agencies until after the end of the federal year; and

Whereas, the delay in receiving federal funds will cause severe cash flow problems for the Department of Social Services, the Department of Mental Health, and the Department of Mental Retardation; and

Whereas, the temporary loss of these federal funds could create a situation causing the loss of twenty-two million dollars of medical services for indigent people of South Carolina. Now, therefore,

Be it enacted by the General Assembly of the State of South Carolina:

Medicaid expenditures

SECTION 1. (A) The Department of Social Services shall assure that for the period of October 1, 1982, through September 30, 1983, the federal financial participation drawn for the Medicaid expenditures shall not exceed the estimated two hundred thirty-two million, eight hundred fifty thousand, three hundred seventy-one break-even point or the authorized amounts in the General Appropriation Act, whichever is less, in order to receive the four percent rebate for the funds withheld.

(B) The State Treasurer shall determine any temporary excess in any debt service account and may lend such monies, on a short-term, interest-bearing note, to the Department of Social Services, the Department of Mental Health, and the Department of Mental Retardation in an amount not to exceed those Medicaid funds which are temporarily retained by the federal government.

(C) The Treasurer shall determine an appropriate interest rate to be charged on the entire amount advanced to each of the agencies.

(D) As soon as practicable after July 1, 1983, any of the agencies receiving advances as provided herein shall pay from its 1983-84 appropriation the principal and interest due on the outstanding loan.

(E) The Budget and Control Board may promulgate regulations necessary to implement the provisions of this resolution.

Time effective

SECTION 2. This act shall take effect upon approval by the Governor.