Bill 2152

                    Current Status

Bill Number:               2152
Ratification Number:       599
Act Number:                520
Introducing Body:          House
Subject:                   Proposing amendments to Article X of the 
                           Constitution of South Carolina, so as to rephrase 
                           a portion of Section 7 to provide that the general 
                           assembly shall provide by law that the annual 
                           state budget must be balanced, to provide limits 
                           on annual increases in state appropriations and 
                           the annual increase in the number of state 
                           employees, and to propose amendments to other 
                           sections related to general obligation debt and 
                           the state general fund reserve

(A520, R599, H2152)

A JOINT RESOLUTION PROPOSING AMENDMENTS TO SECTION 7 OF ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE LEVY OF TAXES TO MEET EXPENSES AND DEFICITS OF STATE GOVERNMENT, SO AS TO REPHRASE A PORTION OF THE SECTION TO PROVIDE THAT THE GENERAL ASSEMBLY SHALL PROVIDE BY LAW THAT THE ANNUAL STATE BUDGET MUST BE BALANCED, AND TO PROVIDE THAT THE GENERAL ASSEMBLY SHALL PRESCRIBE BY LAW THAT ANNUAL INCREASES IN STATE APPROPRIATIONS MAY NOT EXCEED THE AVERAGE GROWTH RATE OF THE ECONOMY OF THE STATE NOR MAY THE ANNUAL INCREASE IN THE NUMBER OF STATE EMPLOYEES EXCEED THE AVERAGE GROWTH OF THE POPULATION OF THE STATE AND TO PROVIDE A PROCEDURE BY WHICH LIMITATIONS MAY BE SUSPENDED, AMENDED, OR REPEALED; TO PROVIDE THAT DURING THE REGULAR SESSION OF THE GENERAL ASSEMBLY IN THE YEAR 1990 AND DURING EVERY FIFTH ANNUAL REGULAR SESSION THEREAFTER, THE GENERAL ASSEMBLY SHALL CONDUCT AND COMPLETE A REVIEW OF THE LAW IMPLEMENTING THE PROVISIONS OF SUBSECTION (c) OF THIS SECTION, AND TO PROVIDE THAT DURING SUCH SESSION THE GENERAL ASSEMBLY MAY CHANGE THE EXISTING LIMITATION ON APPROPRIATIONS; PROPOSING AN AMENDMENT TO SECTION 13 OF ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO GENERAL OBLIGATION DEBT, SO AS TO PROVIDE THAT THF DEBT SERVICE ON GENERAL OBLIGATION BONDS AS DEFINED IN THE SECTION MAY NOT EXCEED FIVE RATHER THAN SEVEN PERCENT OF THE GENERAL REVENUE OF THE STATE FOR THE PREVIOUS FISCAL YEAR, TO PROVIDE THAT THE PERCENTAGE RATE OF GENERAL REVENUES MAY BE REDUCED TO FOUR OR INCREASED TO SEVEN PERCENT BY THE GENERAL ASSEMBLY; TO PROVIDE THAT DURING THE REGULAR SESSION OF THE GENERAL ASSEMBLY IN THE YEAR 1990 AND DURING EVERY FIFTH ANNUAL REGUI AR SESSION THEREAFTER, THE GENERAL ASSEMBLY SHALL CONDUCT AND COMPLETE A REVIEW OF THE LAW IMPLEMENTING THE PROVISIONS OF ITEM (c) OF SUBSECTION (6) OF THIS SECTION, AND TO PROVIDE THAT DURING SUCH SESSION THE GENERAL ASSEMBLY MAY CHANGE THE EXISTING PERCENTAGE RATE; PROPOSING AN AMENDMENT TO SECTION 36 OF ARTICLE III OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE STATE GENERAL FUND RESERVE, SO AS TO REDUCE SUCH RESERVE FROM FIVE TO FOUR PERCENT OF THE GENERAL FUND REVENUE OF THE LATEST COMPLETED FISCAL YEAR AND PROVIDE FOR THE WITHDRAWAL OF FUNDS FROM THE RESERVE TO COVER OPERATING DEFICITS OF STATE GOVERNMENT, TO REQUIRE THE GENERAL ASSEMBLY TO PROVIDE FOR THE ORDERLY RESTORATION OF THE RESERVE FROM FUTURE REVENUES, TO PROVIDE THAT THE PERCENTAGE RATE OF GENERAL FUND REVENUE MAY BE REDUCED TO THREE OR INCREASED TO FIVE PERCENT BY THE GENERAL ASSEMBLY, TO PROVIDE THAT DURING THE REGULAR SESSION OF THE GENERAL ASSEMBLY IN 1990 AND DURING EVERY FIFTH ANNUAL REGULAR SESSION THEREAFTER THE GENERAL ASSEMBLY SHALL CONDUCT AND COMPLETE A REVIEW OF THE LAW IMPLEMENTING THE SECTION, TO PROVIDE THAT THE EXISTING PERCENTAGE RATE SHALL REMAIN UNCHANGED UNLESS DURING THE SESSION, THAT REVIEW RESULTS IN AN AMENDMENT TO OR REPEAL OF THE LAW IMPLEMENTING THE SECTION, AND PROVIDE THAT ONE PERCENT OF THE GENERAL FUND REVENUE OF THE LATEST COMPLETED FISCAL YEAR MUST BE RESTORED TO THE RESERVE FUND WHEN USED TO COVER A YEAR-END OPERATING DEFICIT DURING THE FIRST TWO FISCAL YEARS FOLLOWING THE DEFICIT INSTEAD OF IN THE FIRST FISCAL YEAR FOLLOWING THE DEFICIT AND REQUIRE THAT TWO PERCENT OF THE GENERAL FUND REVENUE MUST BE RESTORED TO THE RESERVE FUND THE THIRD FISCAL YEAR FOLLOWING THE DEFICIT INSTEAD OF IN EACH OF THE NEXT TWO SUCCEEDING FISCAL YEARS FOLLOWING THE DEFICIT, DELETE THE PROVISIONS AUTHORIZING THE GENERAL ASSEMBLY BY A TWO-THIRDS APPROVAL OF THE MEMBERSHIP OF EACH HOUSE TO USE THE RESERVE FUND FOR PURPOSES OTHER THAN FOR A DEFICIT OR PRIORITY PURPOSES.

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

Constitutional amendment - State budget must be balanced

SECTION 1. It is proposed that subsection (a) of Section 7 of Article X of the Constitution of this State be amended to read: "(a) The General Assembly shall provide by law for a budget process to insure that annual expenditures of state government may not exceed annual state revenue."

Proposed amendment submitted to qualified electors

SECTION 2. The proposed amendment must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written thereon: "Must Section 7 of Article X of the Constitution of this State be amended so as to provide that the General Assembly shall provide by law for a budget process which shall insure that annual expenditures of state government may not exceed annual state revenues and to delete provisions requiring the General Assembly to provide an annual tax sufficient to defray estimated expenses of the State?

Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes' and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'."

Constitutional amendment - Spending limitation on appropriations

SECTION 3. It is proposed that Section 7 of Article X of the Constitution of this State be amended by adding:

"(c) The General Assembly shall prescribe by law a spending limitation on appropriations for the operation of state government which shall provide that annual increases in such appropriations may not exceed the average growth rate of the economy of the State as measured by a process provided for by the law which prescribes the limitations on appropriations; provided, however, the limitation may be suspended for any one fiscal year by a special vote as provided in this subsection.

During the regular session of the General Assembly in 1990 and during every fifth annual regular session thereafter, the General Assembly shall conduct and complete a review of the law implementing this subsection. During such session, only a vote of twothirds of the members of each branch present and voting shall be required to change the existing limitation on appropriation. Unless that is done, the existing limitations shall remain unchanged.

Upon implementation of the provisions of this subsection by law, such law may not be amended or repealed except by the special vote as provided in this subsection.

The special vote referred to in this subsection means an affirmative vote in each branch of the General Assembly by twothirds of the members present and voting, but not less than threefifths of the total membership in each branch."

Proposed amendment submitted to qualified electors

SECTION 4. The proposed amendment must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written thereon: "Must Section 7 of Article X of the Constitution of this State be amended so as to provide that the General Assembly shall prescribe by law that the annual increase in state appropriations may not exceed the average growth rate of the economy of the State except that the limitation may be suspended for any one fiscal year upon the approval of a special vote of two-thirds of the members present and voting of each branch of the General Assembly, but not less than three-fifths of the total membership of each branch, provide that upon implementation, the law may not be amended or repealed except by such special vote, and provide that during the regular session of the General Assembly in 1990 and during every fifth annual regular session thereafter the General Assembly shall conduct and complete a review of the law implementing the limitation and unless during such session that review results in an amendment to or repeal of the law, which must be accomplished by a vote of two-thirds of the members of each branch of the General Assembly present and voting, the existing limitations on appropriations shall remain unchanged?

Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes' and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'."

Constitutional amendment - Limitation on number of state employees

SECTION 5. It is proposed that Section 7 of Article X of the Constitution of this State be amended by adding:

"(d) The General Assembly shall prescribe by law a limitation on the number of state employees which shall provide that the annual increase in such number may not exceed the average growth rate in the population of the State measured by a process provided for in the law which prescribes that employment limitation; provided, however, the limitation may be suspended for any one fiscal year by a special vote as provided in this subsection.

Upon implementation of the provisions of this subsection by law, such law may not be amended or repealed except by the special vote provided in this subsection.

The special vote referred to in this subsection means 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.

Proposed amendment submitted to qualified electors

SECTION 6. The proposed amendment must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written thereon: "Must Section 7 of Article X of the Constitution of this State be amended so as to provide that the General Assembly shall prescribe by law that the annual increase in the number of state employees may not exceed the average annual growth rate of the population of the State except that the limitation may be suspended for any one fiscal year upon the approval of a special vote of two-thirds of the members present and voting of each branch of the General Assembly, but not less than three-fifths of the total membership of each branch, and provide that upon implementation, the law may not be amended or repealed except by such special vote?

Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes' and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'."

Constitutional amendment - Maximum annual debt service on general obligation bonds

SECTION 7. It is proposed that item (c) of subsection (6) of Section 13 of Article X of the Constitution of this State be amended to read:

"(c) General obligation bonds for any public purpose including those purposes set forth in (a) and (b) may be issued; provided, that the maximum annual debt service on all general obligation bonds of the State thereafter to be outstanding (excluding highway bonds, state institution bonds, tax anticipation notes and bond anticipation notes) must not exceed five percent of the general revenues of the State for the fiscal year next preceding (excluding revenues which are authorized to be pledged for state highway bonds and state institution bonds).

Upon implementation of the provisions of this item by law, the percentage rate of general revenues may be reduced to four or increased to seven percent by legislative enactment passed by a two-thirds vote of the total membership of the Senate and a twothirds vote of the total membership of the House of Representatives.

During the regular session of the General Assembly in 1990 and during every fifth annual regular session thereafter, the General Assembly shall conduct and complete a review of the law imple-menting this item. Unless during such session that review results in an amendment to or repeal of the law implementing this item, which must be accomplished by legislative enactment passed by a two-thirds vote of the total membership of the Senate and a two-thirds vote of the total membership of the House of Representatives.

Proposed amendment submitted to qualified electors

SECTION 8. The proposed amendment must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written thereon: "Must Section 13 of Article X of the Constitution of this State be amended so as to provide that the debt service on general obligation bonds as defined in the section may be reduced from an amount not to exceed seven percent to an amount not to exceed five percent of the general revenue of the State for the previous fiscal year, provide that the percentage rate may be reduced to four or increased to seven percent upon the approval of a special vote of two-thirds of the members of each branch of the General Assembly and provide that during the regular session of the General Assembly in 1990 and during every fifth annual regular session thereafter, the General Assembly shall conduct and complete a review of the law implementing the limitation on maximum annual debt service and unless during such session the review results in an amendment to or repeal of the law, which must be accomplished by a special vote of two-thirds of the members of each branch of the General Assembly the existing maximum annual debt service shall remain unchanged?

Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes' and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'."

Constitutional amendment - General fund reserve

SECTION 9. It is proposed that Section 36 of Article III of the Constitution of this State be amended to read:

"Section 36. The General Assembly shall provide for a General Fund Reserve of four percent of the general fund revenue of the latest completed fiscal year. Funds may be withdrawn from the reserve only for the purpose of covering operating deficits of state government. The General Assembly must provide for the orderly restoration of funds withdrawn from the reserve from future revenues.

The General Assembly shall provide by law for a procedure to survey the progress of the collection of revenue and the expenditure of funds and to authorize and direct reduction of appropriations as may be necessary to prevent a deficit.

Upon implementation of the provisions of this section, the percentage rate of general fund revenue may be reduced to three or increased to five percent by the special vote provided in this section.

During the regular session of the General Assembly in 1990 and during every fifth annual regular session thereafter, the General Assembly shall conduct and complete a review of the law imple-menting this section. Unless during such session that review results in an amendment to or repeal of the law implementing this section, which must be accomplished by the special vote provided in this section, the existing percentage rate shall remain unchanged.

The special vote referred to in this section means 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.

In the event of a year-end operating deficit, so much of the reserve fund as may be necessary must be used to cover the deficit; and the amount must be restored to the reserve fund within three fiscal years of future revenues until four percent general fund reserve is again reached and maintained. Provided, that one percent of the general fund revenue of the latest completed fiscal year must be restored to the reserve fund the first two fiscal years following the deficit and two percent of the general fund revenue of the latest completed fiscal year must be restored to the reserve fund the third fiscal year following the deficit.

Proposed amendment submitted to qualified electors

SECTION 10. The proposed amendment must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written thereon: "Must Section 36 of Article III of the Constitution of this State be amended so as to reduce the amount deposited in the general fund reserve from five to four percent of the general fund revenue of the latest completed fiscal year and may be used only to cover operating deficits of state government and require the General Assembly to provide by law for an orderly method of restoration of funds withdrawn from the general fund reserve, and provide for a revised procedure for restoring the reserve fund in the event of a year-end operating deficit, and provide that the percentage rate may be reduced to three or increased to five percent upon the approval of a special vote of two-thirds of the members of each branch of the General Assembly present and voting but not less than three-fifths of the total membership of each branch, and provide that during the regular session of the General Assembly in 1990 and during every fifth annual regular session thereafter, the General Assembly shall conduct and complete a review of the law implementing the percentage of the general fund revenue which is deposited in the General Fund Reserve and unless during such session that review results in an amendment to or repeal of the law, which must be accomplished by a special vote of two-thirds of the members of each branch of the General Assembly present and voting, but not less than three-fifths of the total membership of each branch, the existing percentage shall remain unchanged?

Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes' and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No' "