Current Status Bill Number:4875 Type of Legislation:Joint Resolution JR Introducing Body:House Introduced Date:19980324 Primary Sponsor:Haskins All Sponsors:Haskins, D. Smith, Campsen, Jordan, Trotter, Cromer, Leach, Tripp, Young-Brickell, Seithel, Barrett, Maddox, Fleming, Rodgers, Hamilton, Davenport, Littlejohn, Limehouse, Robinson, Vaughn, Kirsh, Easterday, McMaster, Harrison, Loftis, Cooper, Allison, Whatley and Walker Drafted Document Number:GJK\21260SD.98 Residing Body:House Current Committee:Ways and Means Committee 30 HWM Subject:Public Service Authority, bids for purchase of, Budget and Control Board proposals; Education Trust Fund, scholarships
Body Date Action Description Com Leg Involved
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House 19980324 Introduced, read first time, 30 HWM
referred to Committee
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TO PROVIDE THAT ON OR BEFORE JULY 1, 1998, 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 JANUARY 1, 1999, 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", TO PROVIDE FOR THE MANNER IN WHICH THE PRINCIPAL OF THIS TRUST FUND SHALL BE INVESTED, TO PROVIDE THAT THE EARNINGS FROM THE TRUST FUND SHALL BE ANNUALLY TRANSFERRED TO THE STATE GENERAL FUND AND USED FOR HIGHER EDUCATION SCHOLARSHIPS AND GRANT PURPOSES AND FOR OTHER EDUCATIONAL NEEDS AS THE GENERAL ASSEMBLY SHALL PROVIDE; 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 July 1, 1998, a request for proposals (RFP) shall 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 shall contain such criteria as the Budget and Control Board specifies but at a minimum such 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 thereof, 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 any and all 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 deemed 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 thereof, plus seven hundred fifty million dollars;
(7) the transaction must be contingent on compliance by the State with all provisions of law pertaining to such purchase and sale prior to the final consummation of this transaction, and the State must agree to use its best efforts in regard to such compliance;
(8) all bids must be sealed and submitted on or before 12:00 noon on October 1, 1998, together with a performance bond as may be required by the Budget and Control Board.
(B) On or before January 1, 1999, 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 June 1, 1998, in order for the request for proposals to be issued by July 1, 1998. 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 1999 shall be increased by one hundred percent over those paid for the year 1998. In addition, nothing herein 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 January 1, 1999, 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 a fund separate and distinct from the state general fund to be entitled the "South Carolina Education Trust Fund". The trust fund shall be managed and administered by the same entity charged by law with investing State of South Carolina retirement system monies, and trust fund monies may be invested in the manner provided by Section 11-9-660 of the 1976 Code, and in equity investments as and if allowed by law. All earnings shall accrue to the benefit of the trust fund. Ninety percent of the earnings each year beginning with the 1999-2000 fiscal year shall be transferred to the state general fund, and ten percent of the earnings shall be added to the principal of the fund. The General Assembly in the annual general appropriations act each year beginning with fiscal year 2000-2001 shall provide for the manner in which these earnings shall be expended with the first fifty million dollars being used for higher education scholarships and grants, including Palmetto Fellows Scholarships, need-based grants, scholarships and awards, tuition grants, and merit-based scholarships and awards. Any remaining earnings may be used for general higher and secondary education purposes as the General Assembly shall provide. No principal may be withdrawn from the trust fund except upon a three-fourths vote of the entire membership of the House of Representatives and the Senate in a separate resolution authorizing the invasion of the principal of the trust fund for specified educational purposes.
(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 joint resolution takes effect upon approval by the Governor.