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Current Status Bill Number:View additional legislative information at the LPITS web site.1187 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:20000224 Primary Sponsor:Peeler All Sponsors:Peeler Drafted Document Number:l:\council\bills\bbm\9211htc00.doc Residing Body:Senate Current Committee:Judiciary Committee 11 SJ Subject:Public Service Authority, bids for purchase of; revenue from sale used for Education Trust Fund, School Districts History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ Senate 20000224 Introduced, read first time, 11 SJ referred to Committee Versions of This Bill
TO PROVIDE THAT ON OR BEFORE JANUARY 1, 2001, THE STATE BUDGET AND CONTROL BOARD SHALL ISSUE A REQUEST FOR PROPOSALS (RFP) SOLICITING BIDS FOR THE PURCHASE OF THE SOUTH CAROLINA PUBLIC SERVICE AUTHORITY BY A THIRD PARTY FROM THE STATE OF SOUTH CAROLINA, TO STIPULATE THE REQUIREMENTS OF THIS REQUEST FOR PROPOSALS, TO PROVIDE THAT THE BUDGET AND CONTROL BOARD ON OR BEFORE JULY 1, 2001, SHALL OPEN THE BIDS AND ACCEPT THE HIGHEST SUITABLE BID, TO REQUIRE THE PUBLIC SERVICE AUTHORITY TO CERTIFY ITS ASSETS AND LIABILITIES, AND PROVIDE ITS CERTIFIED INCOME STATEMENTS FOR THE LAST FIVE YEARS AND BALANCE SHEET TO THE BUDGET AND CONTROL BOARD FOR THE PURPOSES OF THIS SOLICITATION, TO ALSO REQUIRE THE PUBLIC SERVICE AUTHORITY TO COOPERATE WITH INTERESTED BIDDERS IN THE PREPARATION OF THEIR BID, AND TO PROVIDE CIVIL REMEDIES AND PENALTIES FOR FAILURE TO PERFORM SUCH REQUIREMENTS OR TO COOPERATE, TO PROVIDE THAT IF A SUITABLE BID IS ACCEPTED THE REVENUE THEREFROM MUST BE DEPOSITED IN A FUND SEPARATE AND DISTINCT FROM THE STATE GENERAL FUND TO BE ENTITLED THE "SOUTH CAROLINA EDUCATION TRUST FUND", AND USED TO REDEEM STATE SCHOOL FACILITIES BONDS AND AS A SOURCE OF REVENUE TO AVOID THE ISSUE OF ADDITIONAL SUCH BONDS AND TO THE EXTENT NOT SO REQUIRED, USED TO BUY SCHOOL BUSES; AND TO REPEAL CHAPTER 31 OF TITLE 58 OF THE 1976 CODE RELATING TO THE PUBLIC SERVICE AUTHORITY UPON FINAL CONSUMMATION OF THIS PURCHASE AND SALE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. (A) On or before January 1, 2001, a request for proposals (RFP) must be issued by the State Budget and Control Board soliciting bids for the purchase of the South Carolina Public Service Authority by a third party from the State of South Carolina. The request for proposals must contain the criteria the board specifies, but at a minimum the criteria must include, but is not limited to, the following:
(1) all bids must be for the full and complete purchase of the Public Service Authority including all assets and liabilities and all generation, transmission, and distribution facilities;
(2) all bids must provide for the full payment by the bidder or the assumption without recourse by the bidder, or a combination of these, of all liabilities of the Public Service Authority including revenue bonds and other indebtedness issued by it to date of the bid;
(3) all bids must include a full and complete release of the State of South Carolina, and its agents, employees, or entities including the Public Service Authority from liability present or contingent which may arise from the operation or decommissioning of any nuclear generation plants owned or operated by the Public Service Authority;
(4) existing contracts for the providing of electricity, water, fuel, or other services or products must be honored by any bidder but are renegotiable at the option of the parties if both agree;
(5) supervision of the waters of Lakes Moultrie and Marion and any other recreational waters of the Santee Cooper Hydroelectric and Navigation Project including jurisdiction for purposes of civil and criminal process must be vested in the Department of Natural Resources with the general public retaining the same rights to use these waters for recreational purposes as is now provided;
(6) an acceptable minimum bid is considered to be the full payment of all liabilities and bonded indebtedness of the Public Service Authority or the assumption of such liabilities and bonded indebtedness without recourse, or a combination of these, plus seven hundred fifty million dollars;
(7) the transaction must be contingent on compliance by the State with all provisions of law pertaining to the purchase and sale before the final consummation of this transaction, and the State must agree to use its best efforts in regard to this compliance;
(8) all bids must be sealed and submitted on or before 12:00 noon on March 1, 2001, together with a performance bond as may be required by the Budget and Control Board.
(B) On or before July 1, 2001, the Budget and Control Board shall open the bids and accept the highest bid which meets the requirements of this section.
(C) The Public Service Authority and its officers and employees designated by the authority shall cooperate with the State Budget and Control Board and with any interested bidder in regard to the request for proposals. The Public Service Authority for this purpose shall certify its assets and liabilities, its income statements for the last five years, and its balance sheet to the Budget and Control Board by December 1, 2000, in order for the request for proposals to be issued by January 1, 2001. The authority shall provide to any interested bidder all information the bidder requires to make an informed bid; provided, that all proprietary or confidential information of the authority or of its customers in possession of the authority must be protected by appropriate confidentiality agreements. If the authority fails to perform the requirements imposed upon it by the provisions of this section in the opinion of the Budget and Control Board by majority vote, the payments by the authority to the state general fund as required by Chapter 31 of Title 58 of the 1976 Code for the year 2001 shall be increased by one hundred percent over those paid for the year 2000. In addition, nothing in this section prevents a court of competent jurisdiction from issuing a writ of mandamus requiring the authority or its designated officers and employees to perform the requirements imposed upon it or them by the provisions of this section and from citing the authority or its designated officers and employees for civil contempt for failure to perform.
(D) The Budget and Control Board on or before July 1, 2001, must accept a suitable bid or reject all unsuitable bids. If a bid is accepted, the revenue derived from the sale must be deposited in the State Treasury in a fund separate and distinct from the state general fund to be entitled the "South Carolina Education Trust Fund". All earnings on this fund accrue to the benefit of the trust fund. Proceeds of the trust fund must be used to redeem outstanding State School Facilities Bonds issued pursuant to Chapter 146, Title 59 of the 1976 Code, and for the same purposes and using the same distribution method, to avoid the issue of any further such bonds. To the extent trust fund proceeds exceed the requirement to replace the issue of State School Facilities Bonds, the proceeds must be used to purchase school buses.
(E) Upon the final consummation of the purchase and sale of the Public Service Authority as authorized by this section and certified to by the Budget and Control Board, Chapter 31 of Title 58 of the 1976 Code is repealed.
SECTION 2. This act takes effect upon approval by the Governor.
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