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H*4475 Session 115 (2003-2004)
H*4475(Rat #0384, Act #0256 of 2004) General Bill, By Harrell, W.D. Smith,
Wilkins, Altman, Bingham, Ceips, Chellis, Clark, Cotty, Davenport, Edge, Frye,
Gilham, Hagood, Hamilton, Harrison, Haskins, Hinson, Huggins, Koon, Leach,
Limehouse, Littlejohn, Mahaffey, Martin, Merrill, E.H. Pitts, Quinn, Rice,
Richardson, Simrill, D.C. Smith, G.M. Smith, G.R. Smith, J.R. Smith, Stewart,
Stille, Taylor, Toole, Townsend, Tripp, Umphlett, Vaughn, Walker, White,
Witherspoon, Young, Sandifer, Kirsh, Owens, Whitmire, Cato, Coates, Ott,
Sinclair, Keegan, McGee, Perry, J.M. Neal, Emory, Pinson, Barfield, R. Brown,
Weeks, Branham, Bailey, Battle, Neilson, Clemmons, Viers and Harvin
Similar(S 854)
AN ACT TO ENACT THE FISCAL DISCIPLINE PLAN OF 2004 BY DESIGNATING SECTION 6 OF
ACT 356 OF 2002, RELATING TO ACTIONS NECESSARY FOR THE STATE BUDGET AND
CONTROL BOARD TO COVER AN OPERATING DEFICIT, AS SECTION 11-11-180, CODE OF
LAWS OF SOUTH CAROLINA, 1976, AND AMENDING IT TO REQUIRE AN OPERATING DEFICIT
TO BE PLACED FIRST ON THE AGENDA OF THE STATE BUDGET AND CONTROL BOARD AT THE
FIRST BOARD MEETING FOLLOWING THE COMPTROLLER GENERAL'S REPORT OF THE DEFICIT
TO THE BOARD, BY PROVIDING FOR THE REPAYMENT OF THE ACCUMULATED STATE
OPERATING DEFICIT AND TO PROVIDE THAT THE USE OF CAPITAL RESERVE FUND REVENUES
TO REPAY A PRIOR-YEAR OPERATING DEFICIT IS A NONRECURRING PURPOSE WITHIN THE
MEANING OF THE APPLICABLE CONSTITUTIONAL PROVISIONS, BY LIMITING GENERAL FUND
APPROPRIATIONS GROWTH TO THREE PERCENT IN FISCAL YEARS 2004-2005 THROUGH
2008-2009 AND PROVIDING FOR THE USE OF SURPLUS REVENUES OVER THE SAME PERIOD,
BY PROVIDING THAT THESE LIMITATIONS AND REQUIREMENTS NO LONGER APPLY WHEN THE
FISCAL YEAR 2001-2003 OPERATING DEFICIT IS FULLY REPAID AND THE GENERAL
RESERVE FUND IS FULLY RESTORED, AND BY PROVIDING THAT DURING THIS SAME PERIOD
ANNUALLY REQUIRED TRANSFERS TO THE GENERAL RESERVE FUND MUST BE CONSIDERED
RECURRING GENERAL FUND APPROPRIATIONS. - ratified title
12/17/03 House Prefiled
12/17/03 House Referred to Committee on Ways and Means
01/13/04 House Introduced and read first time HJ-88
01/13/04 House Referred to Committee on Ways and Means HJ-89
01/14/04 House Member(s) request name added as sponsor: Owens
02/19/04 House Committee report: Favorable with amendment Ways
and Means HJ-3
02/25/04 House Requests for debate-Rep(s). JE Smith, McLeod, and
Scott HJ-43
02/25/04 House Amended HJ-43
02/25/04 House Debate interrupted HJ-44
02/25/04 House Requests for debate-Rep(s). Harrell, Cooper, J
Brown, JR Smith, Loftis, Umphlett, Altman,
Kirsh, and GR Smith HJ-53
02/25/04 House Member(s) request name added as sponsor:
Whitmire, Cato, Coates, Ott, Sinclair, Keegan,
McGee, Perry, J.M.Neal, Emory, Pinson, Barfield,
R.Brown, Weeks, Branham, Bailey
02/26/04 House Member(s) request name added as sponsor: Battle,
Neilson
03/02/04 House Member(s) request name added as sponsor:
Clemmons, Viers
03/03/04 House Member(s) request name added as sponsor: Harvin
03/04/04 House Amended HJ-29
03/04/04 House Read second time HJ-31
03/04/04 House Roll call Yeas-92 Nays-0 HJ-31
03/04/04 House Unanimous consent for third reading on next
legislative day HJ-31
03/05/04 House Read third time and sent to Senate HJ-3
03/09/04 Senate Introduced and read first time SJ-14
03/09/04 Senate Referred to Committee on Finance SJ-14
04/07/04 Senate Committee report: Favorable with amendment
Finance SJ-10
04/08/04 Scrivener's error corrected
05/06/04 Senate Read second time SJ-31
05/06/04 Senate Ordered to third reading with notice of
amendments SJ-31
05/06/04 Senate Debate interrupted SJ-31
05/12/04 Senate Amended SJ-37
05/12/04 Senate Debate interrupted SJ-37
05/19/04 Senate Read third time and returned to House with
amendments SJ-73
05/25/04 House Senate amendment amended HJ-56
05/25/04 House Returned to Senate with amendments HJ-59
06/02/04 Senate Concurred in House amendment and enrolled SJ-35
06/03/04 Ratified R 384
06/14/04 Signed By Governor
06/24/04 Copies available
06/24/04 Effective date 06/14/04
06/24/04 Act No. 256
H. 4475
(A256, R384, H4475)
AN ACT TO ENACT THE FISCAL DISCIPLINE PLAN OF 2004 BY DESIGNATING SECTION 6 OF ACT 356 OF 2002, RELATING TO ACTIONS NECESSARY FOR THE STATE BUDGET AND CONTROL BOARD TO COVER AN OPERATING DEFICIT, AS SECTION 11-11-180, CODE OF LAWS OF SOUTH CAROLINA, 1976, AND AMENDING IT TO REQUIRE AN OPERATING DEFICIT TO BE PLACED FIRST ON THE AGENDA OF THE STATE BUDGET AND CONTROL BOARD AT THE FIRST BOARD MEETING FOLLOWING THE COMPTROLLER GENERAL'S REPORT OF THE DEFICIT TO THE BOARD, BY PROVIDING FOR THE REPAYMENT OF THE ACCUMULATED STATE OPERATING DEFICIT AND TO PROVIDE THAT THE USE OF CAPITAL RESERVE FUND REVENUES TO REPAY A PRIOR-YEAR OPERATING DEFICIT IS A NONRECURRING PURPOSE WITHIN THE MEANING OF THE APPLICABLE CONSTITUTIONAL PROVISIONS, BY LIMITING GENERAL FUND APPROPRIATIONS GROWTH TO THREE PERCENT IN FISCAL YEARS 2004-2005 THROUGH 2008-2009 AND PROVIDING FOR THE USE OF SURPLUS REVENUES OVER THE SAME PERIOD, BY PROVIDING THAT THESE LIMITATIONS AND REQUIREMENTS NO LONGER APPLY WHEN THE FISCAL YEAR 2001-2003 OPERATING DEFICIT IS FULLY REPAID AND THE GENERAL RESERVE FUND IS FULLY RESTORED, AND BY PROVIDING THAT DURING THIS SAME PERIOD ANNUALLY REQUIRED TRANSFERS TO THE GENERAL RESERVE FUND MUST BE CONSIDERED RECURRING GENERAL FUND APPROPRIATIONS.
Be it enacted by the General Assembly of the State of South Carolina:
Citation
SECTION 1. This act may be cited as the Fiscal Discipline Plan of 2004.
State operating deficit
SECTION 2. Section 6 of Act 356 of 2002 is designated as Section 11-11-180 of the 1976 Code and is amended to read:
"Section 11-11-180. (A) By August thirty-first of each year, the Comptroller General shall report to the State Budget and Control Board the amounts of general fund revenues and expenditures recorded for the preceding fiscal year and any resulting surplus or deficit of the general fund from a budgetary-based perspective. If the Comptroller General determines that annual expenditures exceeded revenues, an operating deficit must be declared in the report and the State Budget and Control Board must meet to address the deficit within sixty days of receiving the report or earlier at any previously scheduled meeting. The operating deficit must be the first item on the agenda of the first State Budget and Control Board meeting held after the Comptroller General reports a deficit pursuant to this section.
(B) Notwithstanding any other provision of law, if the Comptroller General reports an operating deficit for the preceding fiscal year and it is determined funds are needed to balance the Budgetary General Fund after the use of the General Reserve Fund as provided in Section 11-11-310(B), the State Budget and Control Board is authorized to borrow the amount needed to balance the Budgetary General Fund by borrowing from any department of state government any surplus to the credit of the state department on hand in the Office of the State Treasurer. Upon approval by the State Budget and Control Board of a repayment schedule, the State Treasurer is authorized to transfer to the State Budget and Control Board from the general fund the amount necessary to repay the loan with interest no later than June thirtieth of the following fiscal year."
Repaying deficit
SECTION 3. (A) At the close of the state's 2003-2004 fiscal year, the State Treasurer is directed to transfer an amount up to fifty million dollars from the General Reserve Fund to partially offset the fiscal year 2001-2002 accumulated general fund operating deficit.
(B) To the extent balances in the Capital Reserve Fund for fiscal years 2004-2005 and 2005-2006 are available for appropriation by the General Assembly, as provided in Article III, Section 36(B)(2) of the Constitution of this State and Section 11-11-320, it is the intent of the General Assembly to offset any remaining fiscal year 2001-2002 accumulated operating deficit in an amount not to exceed fifty million dollars in fiscal year 2004-2005 and fifty-five million dollars in fiscal year 2005-2006, if so much is necessary, as the first order of priority in the appropriation of the Capital Reserve Fund for the respective fiscal years.
(C) The General Assembly declares that the term "other nonrecurring purposes" pursuant to Article III, Section 36(B)(2) of the Constitution of this State includes operating deficits from previous fiscal years.
Spending limit; use of surplus revenue
SECTION 4. (A) In addition to all other applicable limitations on general fund appropriations and notwithstanding any other provisions of law, for fiscal years 2004-2005 through 2008-2009, except as provided in subsection (C), total general fund appropriations for the fiscal year may not exceed appropriations for the preceding fiscal year by more than three percent. The Office of State Budget shall certify to the Governor and the chairmen respectively of the House Ways and Means Committee and Senate Finance Committee the total general fund appropriations allowed for a fiscal year pursuant to this section. In calculating the limitation, there must be removed from general fund appropriations for the preceding year any amounts determined by the Office of State Budget to be nonrecurring. Before the Governor may submit the proposed budget for these fiscal years, the proposal must include the certificate of the Director of the Office of State Budget that the proposed budget conforms to the limitation imposed by this section. The annual general appropriations bill may not be given third reading in the House of Representatives and Senate unless a similar certificate is received by the presiding officer in each house from the Director of the Office of State Budget before the bill is given third reading.
(B) Notwithstanding any other provisions of law providing for the uses of surplus general fund revenues, for any fiscal year 2004-2005 through 2008-2009 for which the Comptroller General reports a surplus pursuant to Section 11-11-180(A) of the 1976 Code, to the extent any fiscal year 2001-2002 accumulated general fund operating deficit remains:
(1) the State Treasurer shall transfer to the appropriate depository accounts the amount of any surplus necessary to address any remaining fiscal year 2001-2002 accumulated general fund operating deficit;
(2) should any surplus remain after item (1) is accomplished, the remaining surplus must be applied to restore the General Reserve Fund to the amount required pursuant to Article III, Section 36 of the Constitution of this State and Section 11-11-310 of the 1976 Code; and
(3) should any surplus remain after items (1) and (2) are accomplished, the balance is deemed Capital Reserve Fund revenues and must be appropriated in the manner and used for the purposes provided by law for the Capital Reserve Fund.
(C) When the fiscal year 2001-2002 accumulated general fund operating deficit is repaid and the General Reserve Fund is fully restored pursuant to Article III, Section 36 of the Constitution of this State and Section 11-11-310 of the 1976 Code, the provisions of this section no longer apply.
Transfers deemed recurring
SECTION 5. For fiscal year 2004-2005 and through the last fiscal year to which Section 4 of this act applies, amounts required to be transferred to the General Reserve Fund established pursuant to Article III, Section 36 of the Constitution of this State and Section 11-11-310 of the 1976 Code, including amounts necessary to restore previously withdrawn amounts, are deemed to be recurring general fund appropriations except that these transfers must be subtracted from total general fund revenues before applying a percentage in calculating any  spending formulas based on a percentage of general fund revenues.
Time effective
SECTION 6. This act takes effect upon approval by the Governor.
Ratified the 3rd day of June, 2004.
Approved the 14th day of June, 2004.
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