H*3822 Session 107 (1987-1988)
H*3822(Rat #0413, Act #0385 of 1988) General Bill, By House Ways and Means
A Bill to amend Article 3, Chapter 11, Title 11, Code of Laws of South
Carolina, 1976, relating to the Reserve Fund, and other fiscal matters, so as
to retitle the Article to include the Capital Expenditure Fund and rename the
General Fund Reserve the General Reserve Fund, eliminate obsolete findings and
language, make grammatical and technical changes, reduce the amount which must
be maintained in the General Reserve Fund from four to three percent of the
General Fund revenue of the latest completed fiscal year, rename the Capital
Expenditure Fund the Capital Reserve Fund and provide that the appropriation
to the Capital Reserve Fund must equal two percent of General Fund revenue of
the latest completed fiscal year effective for fiscal year 1988-89 and
succeeding fiscal years rather than two percent, and beginning in 1989-90 two
and one-half percent, of estimated General Fund revenues, provide when and the
purposes for which the monies from the Fund may be expended; to amend Section
11-11-70, relating to the requirement that the State Budget and Control Board
shall submit to the presiding officer of each house printed copies of a
budget, so as to require that the budget which is submitted must conform to
the funding requirements contained in Section 36 of Article III of the
Constitution of this State; to repeal Section 11-9-900, relating to the
requirement that in the event of a projected deficit, the Budget and Control
Board must reduce the appropriation to the Capital Expenditure Fund prior to
mandating any cuts in operating appropriations; and to provide that the
provisions of this Act take effect upon approval by the General Assembly of
Joint Resolution H. 3823.-amended title
02/23/88 House Introduced, read first time, placed on calendar
without reference HJ-1346
02/25/88 House Amended HJ-1521
02/25/88 House Read second time HJ-1526
02/25/88 House Unanimous consent for third reading on next
legislative day HJ-1526
02/26/88 House Read third time and sent to Senate HJ-1536
03/01/88 Senate Introduced and read first time SJ-18
03/01/88 Senate Referred to Committee on Finance SJ-19
03/03/88 Senate Committee report: Favorable with amendment
Finance SJ-41
03/03/88 Senate Amended SJ-42
03/03/88 Senate Read second time SJ-46
03/03/88 Senate Ordered to third reading with notice of
amendments SJ-46
03/08/88 Senate Amended SJ-75
03/08/88 Senate Read third time SJ-75
03/08/88 Senate Returned SJ-75
03/09/88 House Senate amendment amended HJ-1821
03/09/88 House Returned HJ-1821
03/09/88 Senate Concurred in House amendment and enrolled SJ-4
03/09/88 Ratified R 413
03/10/88 Signed By Governor
03/10/88 Effective date 03/10/88
03/10/88 Act No. 385
03/10/88 See act for exception to or explanation of
effective date
03/22/88 Copies available
(A385, R413, H3822)
AN ACT TO AMEND ARTICLE 3, CHAPTER 11, TITLE 11, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO THE RESERVE FUND, AND OTHER FISCAL MATTERS, SO AS TO
RETITLE THE ARTICLE TO INCLUDE THE CAPITAL EXPENDITURE FUND AND RENAME THE
GENERAL FUND RESERVE THE GENERAL RESERVE FUND, ELIMINATE OBSOLETE FINDINGS AND
LANGUAGE, MAKE GRAMMATICAL AND TECHNICAL CHANGES, REDUCE THE AMOUNT WHICH MUST
BE MAINTAINED IN THE GENERAL RESERVE FUND FROM FOUR TO THREE PERCENT OF THE
GENERAL FUND REVENUE OF THE LATEST COMPLETED FISCAL YEAR, RENAME THE CAPITAL
EXPENDITURE FUND THE CAPITAL RESERVE FUND AND PROVIDE THAT THE APPROPRIATION TO
THE CAPITAL RESERVE FUND MUST EQUAL TWO PERCENT OF GENERAL FUND REVENUE OF THE
LATEST COMPLETED FISCAL YEAR EFFECTIVE FOR FISCAL YEAR 1988-89 AND SUCCEEDING
FISCAL YEARS RATHER THAN TWO PERCENT, AND BEGINNING IN 1989-90 TWO AND ONE-HALF
PERCENT, OF ESTIMATED GENERAL FUND REVENUES, PROVIDE WHEN AND THE PURPOSES FOR
WHICH THE MONIES FROM THE FUND MAY BE EXPENDED; TO AMEND SECTION 11-11-70,
RELATING TO THE REQUIREMENT THAT THE STATE BUDGET AND CONTROL BOARD SHALL SUBMIT
TO THE PRESIDING OFFICER OF EACH HOUSE PRINTED COPIES OF A BUDGET, SO AS TO
REQUIRE THAT THE BUDGET WHICH IS SUBMITTED MUST CONFORM TO THE FUNDING
REQUIREMENTS CONTAINED IN SECTION 36 OF ARTICLE III OF THE CONSTITUTION OF THIS
STATE; TO REPEAL SECTION 11-9-900, RELATING TO THE REQUIREMENT THAT IN THE EVENT
OF A PROJECTED DEFICIT, THE BUDGET AND CONTROL BOARD MUST REDUCE THE
APPROPRIATION TO THE CAPITAL EXPENDITURE FUND PRIOR TO MANDATING ANY CUTS IN
OPERATING APPROPRIATIONS; AND TO PROVIDE THAT THE PROVISIONS OF THIS ACT TAKE
EFFECT UPON APPROVAL BY THE GENERAL ASSEMBLY OF JOINT RESOLUTION H. 3823 (R. 414
OF 1988).
Be it enacted by the General Assembly of the State of South Carolina:
General Reserve Fund and Capital Reserve Fund
SECTION 1. Article 3, Chapter 11, Title 11 of the 1976 Code is amended to read:
" Article 3
General Reserve Fund and Capital Reserve Fund
Section 11-11-310. (A) The State Budget and Control Board shall provide for a
General Reserve fund. Funds accumulating in excess of the annual operating
expenditures must be transferred to the General Reserve Fund and the transfer
must continue to be made in succeeding fiscal years until the accumulated total
in this reserve reaches an amount equal to three percent of the general fund
revenue of the latest completed fiscal year.
(B) If there is a year-end operating deficit, so much of the General Reserve
Fund as is necessary must be used to cover the deficit. The amount so applied
must be restored to the General Reserve Fund out of future revenues as provided
in Section 36 of Article III of the Constitution of this State and out of funds
accumulating in excess of annual operating expenditures as provided in this
section until the three percent maximum is again reached and actually maintained.
Section 11-11-320. (A) The General Assembly, in the annual general
appropriations act, shall appropriate, out of the estimated revenue of the
general fund for the fiscal year for which the appropriations are made, into a
Capital Reserve Fund, which is separate and distinct from the General Reserve
Fund, an amount equal to two percent of the general fund revenue of the latest
completed fiscal year.
(B) This appropriation must be contained in the Ways and Means Committee report
on the general appropriations bill, the general appropriations bill at the time
of third reading in the House of Representatives, the Senate Finance Committee
report on the general appropriations bill, the general appropriations bill at the
time of a third reading in the Senate, and in any conference report on the
general appropriations bill.
(C) Revenues in the Capital Reserve Fund only may be used in the following
manner:
(1) If, before March first, the Board of Economic Advisors' revenue forecast
to the State Budget and Control Board for the current fiscal year projects that
revenues at the end of the fiscal year will be less than expenditures authorized
by appropriations for that year, then the current year's appropriation to the
Capital Reserve Fund first must be reduced by the Board to the extent necessary
before mandating any reductions in operating appropriations.
(2) After March first of a fiscal year, monies from the Capital Reserve Fund
may be appropriated by the General Assembly in separate legislation upon an
affirmative vote in each branch of the General Assembly by two-thirds of the
members present and voting but not less than three-fifths of the total membership
in each branch for the following purposes:
(a) to finance in cash previously authorized capital improvement bond projects;
(b) to retire interest or principal on bonds previously issued;
(c) for capital improvements or other nonrecurring purposes.
(D) (1) Any appropriation of monies from the Capital Reserve Fund as provided
in subsection (C) of this section must be ranked in priority of expenditure and
is effective thirty days after completion of the fiscal year. If it is determined
that the fiscal year has ended with an operating deficit, then the monies
appropriated from the Capital Reserve Fund must be reduced by the State Budget
and Control Board based on the rank of priority, beginning with the lowest
priority, to the extent necessary and applied by the Board to the year-end
operating deficit before withdrawing monies from the General Reserve Fund.
(2) At the end of the fiscal year, any monies in the Capital Reserve Fund that
are not appropriated as provided in subsection (C) of this section or any
appropriation for a particular project or item which has been reduced due to
application of the monies to a year-end deficit must lapse and be credited to the
General Fund."
Budget to conform to constitutional requirements
SECTION 2. Section 11-11-70 of the 1976 Code is amended to read:
"Section 11-11-70. (A) Within five days after the beginning of each
regular session of the General Assembly the State Budget and Control Board shall
submit to the presiding officer of each house printed copies of a budget, based
on its own conclusions and judgments, containing a complete and itemized plan of
all proposed expenditures for each state department, bureau, division, officer,
board, commission, institution, or other agency or undertaking, classified by
functions, character, and object, and of estimated revenues and borrowings for
each year, beginning with the first day of the next fiscal year. Opposite each
item of the proposed expenditures the budget must show in separate parallel
columns the amount appropriated for the last preceding appropriation year, for
the current appropriation year and the increase or decrease.
(B) The budget which is submitted by the board to the presiding officer of each
house must conform to the funding requirements contained in Section 36 of Article
III of the Constitution of this State."
Repealed
SECTION 3. Section 11-9-900 of the Code is repealed.
Time effective
SECTION 4. This act takes effect upon approval by the General Assembly of Joint
Resolution H. 3823 (R. 414 OF 1988) |