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COMMITTEE REPORT
April 22, 1999
H. 3748
Introduced by Reps. Walker, Allison, Davenport, Lee, Littlejohn and D. Smith
S. Printed 4/22/99--H.
Read the first time March 17, 1999.
To whom was referred a Bill (H. 3748), to amend Section 11-27-110, as amended, Code of Laws of South Carolina, 1976, relating to lease purchase or financing agreements being subject to applicable constitutional debt limitations, etc., respectfully
That they have duly and carefully considered the same, and recommend that the same do pass with amendment:
Amend the bill, as and if amended, in Section 11-27-110, as contained in SECTION 1, Page 2, by striking subsections (B) and (C) and inserting:
/ (B) A governmental entity described in subsection (A)(7)(8)(b) of this section may not enter into a financing agreement, other than an enterprise financing agreement, a lease purchase agreement for energy efficiency products as provided for in Section 48-52-660, or a guaranteed energy savings contract as provided for in Section 48-52-670, where no such lease agreement or contract shall constitute in any manner an agreement, consent, authority, or otherwise to provide retail sales of energy by an energy or power provider or creates the authority to sell or provide retail energy or power, if the principal balance of the financing agreement, when added to the principal amount of limited bonded indebtedness outstanding on the date of execution of the financing agreement exceeds eight percent of the assessed value of taxable property in the jurisdiction of the governmental entity unless the financing agreement is approved by a majority of the electors voting on the agreement in a referendum duly called for this purpose by the governmental entity.
(C) If a governmental entity described in subsection (A)(7)(8)(b) of this section has outstanding any financing agreement, other than an enterprise financing agreement, a lease purchase agreement for energy efficiency products as provided in Section 48-52-660, or a guaranteed energy savings contract as provided in Section 48-52-670, where no such lease agreement or contract shall constitute in any manner an agreement, consent, authority, or otherwise to provide retail sales of energy by an energy or power provider or creates the authority to sell or provide retail energy or power, on the date of issuance of any limited bonded indebtedness pursuant to any bond act, the amount of this limited bonded indebtedness plus the amount of all other limited bonded indebtedness of the governmental entity, when added to the principal balance under any financing agreement or agreements of the governmental entity must not exceed the amount of the governmental entity's constitutional debt limit unless this bonded indebtedness is approved by a majority of the electors voting on the bonded indebtedness in a referendum duly called for this purpose by the governmental entity. This requirement applies notwithstanding any other provision of any bond act and is in addition to the terms and conditions specified in any bond act. /
Renumber sections to conform.
Amend totals and title to conform.
HENRY E. BROWN, JR., for Committee.
TO AMEND SECTION 11-27-110, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LEASE PURCHASE OR FINANCING AGREEMENTS BEING SUBJECT TO APPLICABLE CONSTITUTIONAL DEBT LIMITATIONS, SO AS TO CONFORM THE TREATMENT OF A LEASE PURCHASE AGREEMENT FOR ENERGY EFFICIENCY PRODUCTS AND A GUARANTEED ENERGY SAVINGS CONTRACT IN THE CALCULATION OF THE DEBT LIMIT TO THE PROVISIONS OF THE SECTION SPECIFICALLY EXCLUDING THEM FROM THOSE TYPES OF AGREEMENTS SUBJECT TO THE DEBT LIMIT, AND TO MAKE TECHNICAL REFERENCE CHANGES.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Subsections (B) and (C) of Section 11-27-110 of the 1976 Code are amended to read:
"(B) A governmental entity described in subsection (A)(7)(8)(b) of this section may not enter into a financing agreement, other than an enterprise financing agreement, a lease purchase agreement for energy efficiency products as provided for in Section 48-52-660, or a guaranteed energy savings contract as provided for in Section 48-52-670, if the principal balance of the financing agreement, when added to the principal amount of limited bonded indebtedness outstanding on the date of execution of the financing agreement exceeds eight percent of the assessed value of taxable property in the jurisdiction of the governmental entity unless the financing agreement is approved by a majority of the electors voting on the agreement in a referendum duly called for this purpose by the governmental entity.
(C) If a governmental entity described in subsection (A)(7)(8)(b) of this section has outstanding any financing agreement, other than an enterprise financing agreement, a lease purchase agreement for energy efficiency products as provided in Section 48-52-660, or a guaranteed energy savings contract as provided in Section 48-52-670 on the date of issuance of any limited bonded indebtedness pursuant to any bond act, the amount of this limited bonded indebtedness plus the amount of all other limited bonded indebtedness of the governmental entity, when added to the principal balance under any financing agreement or agreements of the governmental entity must not exceed the amount of the governmental entity's constitutional debt limit unless this bonded indebtedness is approved by a majority of the electors voting on the bonded indebtedness in a referendum duly called for this purpose by the governmental entity. This requirement applies notwithstanding any other provision of any bond act and is in addition to the terms and conditions specified in any bond act."
SECTION 2. This act takes effect upon approval by the Governor.
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