Current Status Introducing Body:House Bill Number:4215 Primary Sponsor:Sheheen Type of Legislation:GB Subject:Economic Advisors Board Residing Body:Senate Current Committee:Finance Computer Document Number:CYY/18733.SD Introduced Date:Jan 21, 1992 Date of Last Amendment:Apr 22, 1992 Last History Body:Senate Last History Date:May 20, 1992 Last History Type:Recalled from Committee Scope of Legislation:Statewide All Sponsors:Sheheen Klapman Boan Kirsh Type of Legislation:General Bill
Bill Body Date Action Description CMN
---- ------ ------------ ------------------------------ ---
4215 Senate May 20, 1992 Recalled from Committee 06
4215 Senate Apr 28, 1992 Introduced, read first time, 06
referred to Committee
4215 House Apr 23, 1992 Read third time, sent to
Senate
4215 House Apr 22, 1992 Amended, read second time
4215 House Apr 07, 1992 Committee Report: Favorable 30
with amendment
4215 House Jan 21, 1992 Introduced, read first time, 30
referred to Committee
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Indicates Matter Stricken
Indicates New Matter
RECALLED
May 20, 1992
H. 4215
Introduced by REPS. Sheheen, Klapman, Boan and Kirsh
S. Printed 5/20/92--S.
Read the first time April 28, 1992.
TO AMEND SECTION 11-9-820, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE BOARD OF ECONOMIC ADVISORS, SO AS TO REVISE THE MEMBERSHIP OF THE BOARD; TO AMEND THE 1976 CODE BY ADDING SECTION 11-9-825 SO AS TO PROVIDE FOR THE FULL-TIME STAFF OF THE BOARD BEGINNING JULY 1, 1992, AND FOR OTHER OFFICIALS WHO SHALL PROVIDE SUPPLEMENTAL ASSISTANCE TO THE FULL-TIME STAFF OF THE BOARD; TO AMEND SECTION 11-9-840, RELATING TO CERTAIN PROCEDURES OF THE BOARD INCLUDING ITS MEETING DATES, SO AS TO REVISE THE MEETING DATES; TO AMEND SECTION 11-9-880, RELATING TO THE FORECAST OF ECONOMIC CONDITIONS BY THE BOARD, SO AS TO REVISE THE MANNER IN WHICH THE BOARD MONITORS AND REVIEWS THE FLOW OF REVENUE FOR THE CURRENT FISCAL YEAR IN COMPARISON TO THE CURRENT YEAR'S FORECAST; AND TO AMEND THE 1976 CODE BY ADDING SECTION 1-11-23 SO AS TO PROVIDE THAT VACANCIES IN THE POSITION OF DIRECTOR OF THE BUDGET DIVISION OF THE STATE BUDGET AND CONTROL BOARD MUST BE FILLED BY APPOINTMENT OF THE BUDGET AND CONTROL BOARD.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 11-9-820 of the 1976 Code is amended to read:
"Section 11-9-820. There is created The Board of Economic Advisors as follows:
(1) One member, not a state employee, appointed by the Budget and Control Board appointed by the Governor who possesses specific working knowledge and experience in economics, revenue forecasting, and the state budget process. This person shall serve as chairman.
(2) Chairman of the State Tax Commission.
(3) Director of the Research and Statistical Services Budget Division, Budget and Control Board.
(4) Chief Economist, Division of Research and Statistical Services One member appointed by the Chairman of the House Ways and Means Committee who possesses specific working knowledge and experience in economics, revenue forecasting, and the state budget process.
(5) One member appointed by the Chairman of the Senate Finance Committee who possesses specific working knowledge and experience in economics, revenue forecasting, and the state budget process.
The Chairman of the Board of Economic Advisors shall report directly to the Governor to establish policy governing economic trends. The staff of the Board of Economic Advisors are administratively assigned to the Division of Research and Statistical Services of the State Budget and Control Board. The staff shall advise the Board of Economic Advisors but shall report administratively to the Director of the Division of Research and Statistical Services. The Office of the Board of Economic Advisors shall be staffed on a permanent basis within the Research and Statistical Services Division, Budget and Control Board. The office of the Executive Director, Budget and Control Board shall provide any additional administrative and logistical support that may be required for the Advisors to carry out the provisions of this section. The Executive Director of the Budget and Control Board shall assist the Governor and the Chairman of the Board of Economic Advisors in providing an effective system for compiling and maintaining current and reliable economic data.
SECTION 2. The 1976 Code is amended by adding:
"Section 11-9-825. Beginning July 1, 1992, and as authorized by the General Assembly in the annual general appropriations act, the staff of the Board of Economic Advisors (BEA) shall consist of three full-time employees: a chief economist, a clerical staff member, and one professional analyst. This staff shall be supplemented by the following officials who each shall designate one professional from their individual staffs to assist the BEA staff on a regular basis: the Governor, the Chairman of the House Ways and Means Committee, the Chairman of the Senate Finance Committee, the State Tax Commission Chairman, and the Director of the Budget Division of the Budget and Control Board. The BEA staff shall meet monthly with these designees in order to solicit their input."
SECTION 3. Section 11-9-840 of the 1976 Code is amended to read:
"Section 11-9-840. In the organizational and procedural framework governing the formulation, evaluation, and continuing review of revenues and expenditures, any appropriate governmental entity identifying or requesting a change in the official revenue and expenditure forecast or projection, for a specified period of time, shall first notify the office of the Chairman of the Board of Economic Advisors who must bring it to the attention of the Governor prior to any independent adjustment in the appropriations or requests of the revenue or expenditures for a particular year. The Ways and Means Committee in the House of Representatives and the Senate Finance Committee shall must be the first to be notified subsequent to notifying the Governor and shall must be informed simultaneously.
The Board of Economic Advisors shall formally meet regularly in the fall and spring of the year. Other meetings may be on a quarterly basis and at the call of the Governor, the General Assembly, or the Chairman of the Board, or at the request of any member of the Board who believes a meeting is necessary due to existing financial circumstances.
The Board of Economic Advisors is the official voice of the State in economic matters and shall speak as one voice through the guidance and direction of the chairman. Individual members shall not speak or report individually on findings and status of economic developments."
SECTION 4. Section 11-9-880 of the 1976 Code is amended to read:
"Section 11-9-880. (A) The Board of Economic Advisors shall make an initial forecast of economic conditions in the State and state revenues for the next fiscal year no later than November first tenth of each year. Adjustments to the forecast must be considered on December first tenth and January first tenth. A final forecast for the next fiscal year must be made on February fifteenth. The February fifteenth forecast may be adjusted monthly if the board determines that changing economic conditions have affected the February fifteenth forecast. Prior to making or adjusting any forecast, the board must consult with outside economic experts with respect to national and South Carolina economic business conditions. All forecasts and adjusted forecasts must contain:
(1) a brief description of the econometric model and all assumptions and basic decisions underlying the forecasts;
(2) a projection of state revenues on a quarterly basis;
(3) separate discussions of any industry which employs more than twenty percent of the state's total nonagricultural employment and separate projections for these industries.
(B) The Board shall compare during the first three quarters of each fiscal year its forecast of state revenues with actual state income. The Board shall review General Fund revenue collections each year by December 31 and provide to the governor, Budget and Control Board, and General Assembly a synopsis of the revenue outlook for the next six months. In addition to fulfilling its economic and revenue forecasting responsibilities for future fiscal years, the board at each session shall monitor and review the flow of revenue for the current fiscal year in comparison to current year revenue estimates. If actual revenue collections represent an overall shortfall for any quarter of over one and one-half percent of projected revenue collections for that quarter, a synopsis must be prepared which shall include a detailed analysis of the factors contributing to the shortfall, the impact of the shortfall for the present fiscal year, a projection of whether the shortfall will be compensated for in the remaining quarters of the present fiscal year, and the impact of the shortfall on revenue estimates for the ensuing fiscal year. In addition, a similar detailed synopsis must be provided if a shortfall of one and one-half percent or more is experienced in any of the following individual revenue categories: sales and use taxes, individual income taxes, corporate income taxes, taxes on insurance premiums including workers compensation insurance, and earnings on investments.
(C) All forecasts, adjusted forecasts, and reports of the Board of Economic Advisors, including the synopsis of the current year's review as required by subsection (B), must be published and reported to the Governor, the members of the Budget and Control Board, and provided to the members of the General Assembly and made available to the news media."
SECTION 5. The 1976 Code is amended by adding:
"Section 1-11-23. Vacancies in the position of Director of the Budget Division of the State Budget and Control Board must be filled by appointment of the Budget and Control Board."
SECTION 6. This act takes effect upon approval by the Governor.