H*3279 Session 106 (1985-1986)
H*3279(Rat #0560, Act #0547 of 1986) General Bill, By House Ways and Means
A Bill to amend Act 1377 of 1968, as amended, relating to the issuance of
State Capital Improvement Bonds, so as to authorize funds for prison
construction and renovations required by the Nelson settlement; to provide
that the funds must be only one or more of the following: Capital Fund monies,
general obligation bonds, or lease purchase agreements, and must not exceed
the authorized amount; and to require the funds to be released pursuant to the
Nelson Setttlement deadlines; and to provide that no project authorized in
whole or in part for capital improvement bond funding may be implemented until
funds can be made available and until the Joint Bond Review Committee, in
consultation with the Budget and Control Board, establishes priorities for
project funding and to require the Committee to report its priorities to the
General Assembly within thirty days of the establishment of the funding
priorities.-amended title
01/15/86 House Introduced, read first time, placed on calendar
without reference HJ-111
01/16/86 House Debate adjourned HJ-211
01/22/86 House Debate adjourned HJ-239
01/23/86 House Debate adjourned HJ-270
01/28/86 House Debate adjourned until Tuesday, February 4, 1986 HJ-321
02/04/86 House Debate adjourned HJ-470
02/05/86 House Debate adjourned until Tuesday, Feb. 11, 1986 HJ-497
02/12/86 House Objection by Rep. McAbee, Carnell, Mangum &
Klapman HJ-640
03/04/86 House Special order, set for following consideration of
S 153 (Under H 3596) HJ-1139
03/26/86 House Amended HJ-1968
03/26/86 House Read second time HJ-1972
03/27/86 House Read third time and sent to Senate HJ-2043
04/02/86 Senate Introduced and read first time SJ-1381
04/02/86 Senate Referred to Committee on Finance SJ-1381
05/07/86 Senate Committee report: Favorable Finance SJ-2465
05/14/86 Senate Read second time
05/14/86 Senate Ordered to third reading with notice of amendments
05/27/86 Senate Debate interrupted SJ-3297
05/28/86 Senate Amended SJ-3323
05/28/86 Senate Read third time SJ-3324
05/28/86 Senate Returned SJ-3324
05/29/86 House Concurred in Senate amendment and enrolled HJ-3526
06/04/86 Ratified R 560
06/09/86 Signed By Governor
06/09/86 Effective date 06/09/86
06/09/86 Act No. 547
06/20/86 Copies available
(A547, R560, H3279)
AN ACT TO AMEND ACT 1377 OF 1968, AS AMENDED, RELATING TO THE ISSUANCE OF STATE
CAPITAL IMPROVEMENT BONDS, SO AS TO AUTHORIZE FUNDS FOR PRISON CONSTRUCTION AND
RENOVATIONS REQUIRED BY THE NELSON SETTLEMENT; TO PROVIDE THAT THE FUNDS MUST BE
ONLY ONE OR MORE OF THE FOLLOWING: CAPITAL FUND MONIES, GENERAL OBLIGATION BONDS,
OR LEASE PURCHASE AGREEMENTS, AND MUST NOT EXCEED THE AUTHORIZED AMOUNT; AND TO
REQUIRE THE FUNDS TO BE RELEASED PURSUANT TO THE NELSON SETTLEMENT DEADLINES; AND
TO PROVIDE THAT NO PROJECT AUTHORIZED IN WHOLE OR IN PART FOR CAPITAL IMPROVEMENT
BOND FUNDING MAY BE IMPLEMENTED UNTIL FUNDS CAN BE MADE AVAILABLE AND UNTIL THE
JOINT BOND REVIEW COMMITTEE, IN CONSULTATION WITH THE BUDGET AND CONTROL BOARD,
ESTABLISHES PRIORITIES FOR PROJECT FUNDING AND TO REQUIRE THE COMMITTEE TO REPORT
ITS PRIORITIES TO THE GENERAL ASSEMBLY WITHIN THIRTY DAYS OF THE ESTABLISHMENT
OF THE FUNDING PRIORITIES.
Be it enacted by the General Assembly of the State of South Carolina:
Findings
SECTION 1. (A) The General Assembly will be considering a 1986 bond bill of
over one hundred million dollars. The normal capital improvement program is
required to address the maintenance, repair, renovation, and remodeling of six
thousand buildings and facilities, and the need for new buildings and facilities
of fifty agencies, institutions, colleges, and universities. The regular
statewide capital improvement program spends sixty to seventy million dollars
annually. The Nelson prison overcrowding settlement will cost about one hundred
sixty million dollars for prison construction over the next five years, requiring
an additional average of thirty-five million dollars a year until fiscal year
1990-91. The statewide capital improvement program must be financed with general
obligation bonds until the capital fund is large enough to finance the whole
program with cash. This transition will take four to five years if properly
regulated.
(B) The State entered into an agreement in the Nelson settlement in 1985,
which means that the State agreed to no prison overcrowding by 1990. After the
settlement, the General Assembly passed a burglary bill which will require an
additional six hundred beds but has done nothing to fund the prison construction
that will be required.
(C) The Joint Bond Review Committee recommends that good-faith compliance with
the Nelson settlement be assured by guaranteeing that funds are made available
to build the prisons that are necessary. The five prisons that will be needed
by 1990 should be authorized in 1986. The committee will look closely at all
reasonable methods of reducing the need for these prisons and at any alternative
financing proposals that would be more cost effective than general obligation
bonds or cash.
(D) The Joint Bond Review Committee further recommends that the funds made
available through the annual capital fund monies be used solely for prison
construction until the time as there are funds in excess of the need for prisons
which would then be applied toward the funding of projects already authorized by
the General Assembly. The committee recommends suspending the gradual phase-down
of the debt service limitation but requiring full implementation by 1992. This
will enable the treasurer to issue bonds until the capital fund can replace them.
The committee and the Budget and Control Board will regulate the transition from
bonds to the capital fund. This transition will take four to six years to
complete. An annual capital improvement budget could be financed by the capital
fund by 1991. The debt service will gradually be reduced to nothing as old bond
issues are paid off, thus freeing up operating budget funds and avoiding all
interest charges.
(E) It is further recommended that funds be made available through the
issuance of lease-purchase agreements which would permit the lease back of prison
facilities between public or quasi-public entities. The additional proceeds,
provided by a lease-purchase arrangement offering shall compliment the cash and
general obligation bond proceeds to insure that the State is afforded every
opportunity to meet the requirement of the Nelson settlement.
Bonds authorized
SECTION 2. Item (f) of Section 3 of Act 1377 of 1968, as last amended by Section
1 of Part V of Act 201 of 1985, is further amended by adding:
"Department of Corrections
Prison Construction
and Renovations/
Nelson Settlement $96,000,000
TOTAL, Department of
Corrections $96,000,000
The funds authorized above for prison construction and renovations required by
the Nelson prison overcrowding settlement must be only one or more of the
following: capital fund monies, general obligation bonds, or lease-purchase
agreements as determined by the Joint Bond Review Committee and the Budget and
Control Board, but the total of all methods must not exceed the amount authorized
hereinabove.
Provided, Further, That the funds must be scheduled for release in a manner
that ensures compliance with the deadlines of the Nelson settlement."
Conditions of authorization
SECTION 3. No project authorized in whole or in part for capital improvement
bond funding under the provisions of Act 1377 of 1968, as amended, may be
implemented until funds can be made available and until the Joint Bond Review
Committee, in consultation with the Budget and Control Board, establishes
priorities for the funding of the projects. The Joint Bond Review Committee
shall report its priorities to the members of the General Assembly within thirty
days of the establishment of the funding priorities.
Time effective
SECTION 4. This act shall take effect upon approval by the Governor. |