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Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
May 10, 2006
S. 836
S. Printed 5/10/06--H.
Read the first time May 17, 2005.
To whom was referred a Bill (S. 836) to amend Joint Resolution 210 of 1987, relating to the purchase of notes of the Clark's-Hill Russell Authority by the Division of General Services of the State Budget and Control Board, 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, by deleting SECTION 1 in its entirety and inserting:
/ "SECTION 1. The Division of General Services of the State Budget and Control Board through the Insurance Reserve Fund and the State Treasurer shall purchase not more than twenty million dollars of notes of the Clark's Hill-Russell Authority Division of Savannah Valley Development in amounts not exceeding three million five hundred thousand dollars in any one year for the purpose prescribed in Chapter 9 of Article 5, Chapter 1, Title 13 of the 1976 Code. The notes of the authority must bear interest at a rate of eight percent per annum interest to be determined periodically by the State Treasurer and must be repaid over a term not exceeding thirty years from the date of issuance of a respective series of notes." /
Renumber sections to conform.
Amend title to conform.
DANIEL T. COOPER for Committee.
EXPLANATION OF IMPACT:
State Budget and Control board - Insurance Reserve Fund
As of January 31, 2006, the amount of the note due the Insurance Reserve Fund from the Clark's - Hill Russell Authority was $13,565,057. Based on calculations from the State Treasurer's Office, if the interest rate were reduced to 5% for the remaining life of the loan and assuming loan repayments approximate the average repayments over the past three years, the Insurance Reserve Fund would earn $4.3 million less in interest. The 5% interest rate represents the earnings rate for deposits to the General Fund of the State.
State Treasurer's Office
The office reports this bill will have no impact on the General Fund of the State or on federal and/or other funds.
Department of Commerce
Though the Savannah Valley Authority is administratively housed within the Department of Commerce, there is no fiscal impact on the Department of Commerce.
Approved By:
Don Addy
Office of State Budget
TO AMEND JOINT RESOLUTION 210 OF 1987, RELATING TO THE PURCHASE OF NOTES OF THE CLARK'S-HILL RUSSELL AUTHORITY BY THE DIVISION OF GENERAL SERVICES OF THE STATE BUDGET AND CONTROL BOARD AND THE INTEREST RATE ON THESE NOTES, SO AS TO PROVIDE THAT THE INTEREST RATE MUST BE DETERMINED PERIODICALLY BY THE STATE TREASURER, RATHER THAN SET AT A RATE OF EIGHT PERCENT PER YEAR.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 1 of Joint Resolution 210 of 1987 is amended to read:
"SECTION 1. The Division of General Services of the State Budget and Control Board through the Insurance Reserve Fund and the State Treasurer shall purchase not more than twenty million dollars of notes of the Clark's Hill-Russell Authority in amounts not exceeding three million five hundred thousand dollars in any one year for the purpose prescribed in Chapter 9 of Title 13 of the 1976 Code. The notes of the authority must bear interest at a rate of eight percent per annum interest to be determined periodically by the State Treasurer and must be repaid over a term not exceeding thirty years from the date of issuance of a respective series of notes."
SECTION 2. This act takes effect upon approval by the Governor.
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