Current Status Introducing Body:Senate Bill Number:1084 Primary Sponsor:Leatherman Committee Number:30 Type of Legislation:GB Subject:Property, lease-purchase or lease-back agreements Residing Body:House Current Committee:Ways and Means Computer Document Number:JIC/5930.SD Introduced Date:Jan 14, 1992 Date of Last Amendment:Apr 08, 1992 Last History Body:House Last History Date:Apr 14, 1992 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Leatherman Type of Legislation:General Bill
Bill Body Date Action Description CMN
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1084 House Apr 14, 1992 Introduced, read first time, 30
referred to Committee
1084 Senate Apr 09, 1992 Read third time, sent to House
1084 Senate Apr 08, 1992 Amended, read second time
1084 Senate Apr 01, 1992 Committee Report: Favorable 11
with amendment
1084 Senate Jan 14, 1992 Introduced, read first time, 11
referred to Committee
1084 Senate Nov 04, 1991 Prefiled, referred to 11
Committee
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COMMITTEE AMENDMENT ADOPTED
April 8, 1992
S. 1084
S. Printed 4/8/92--S.
Read the first time January 14, 1992.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 11-27-110 SO AS TO PROVIDE LEASE-PURCHASE OR LEASE-BACK AGREEMENTS INVOLVING REAL PROPERTY ENTERED INTO BY THE STATE OR POLITICAL SUBDIVISIONS OF THE STATE WHEREIN THE STATE OR POLITICAL SUBDIVISION IS THE LESSEE CONSTITUTES GENERAL OBLIGATION DEBT FOR THE PERIOD OF THE LEASE AND TO PROVIDE THAT THIS GENERAL OBLIGATION DEBT MAY NOT VIOLATE THE CONSTITUTIONAL DEBT LIMITATIONS APPLICABLE TO THE STATE OR POLITICAL SUBDIVISION UNDER ARTICLE X OF THE STATE CONSTITUTION.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The 1976 Code is amended by adding:
"Section 11-27-110. A lease-back or lease-purchase agreement involving real property entered into between this State or a political subdivision thereof which is subject to a constitutional limitation on the amount of general obligation debt which it may incur, as lessee, and a public or private entity, as lessor, constitutes general obligation debt for the period of the lease unless the agreement contains a non-appropriations clause or unless rent under the agreement is payable solely from a revenue-producing project or a special source not involving the proceeds of any tax or license. The general obligation debt incurred by a lease-leaseback or lease-purchase agreement which does not contain a non-appropriations clause or rent under which is payable from sources involving the proceeds of any tax or license violates the constitutional debt limitations applicable to the State or political subdivision under Article X of the State Constitution. For purposes of this section, `non-appropriations clause' means a contractual provision stating that the lease may be canceled at the end of any fiscal year, if prior to the beginning of the next fiscal year, the lessee fails to appropriate funds sufficient to pay rent under the lease for the next fiscal year and the State or political subdivision incurs no pecuniary liability as a result of such cancellation. The amount of any general obligation debt incurred shall be determined under generally accepted accounting principles."
SECTION 2. The provisions of Section 11-27-110 apply to any lease-back or lease-purchase agreement entered into after the effective date of this act.
SECTION 3. This act takes effect upon approval by the Governor.