Download This Version in Microsoft Word format
Indicates Matter Stricken
Indicates New Matter
Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
May 1, 2008
S. 658
S. Printed 5/1/08--S.
Read the first time April 10, 2007.
To whom was referred a Bill (S. 658) to amend Section 59-21-420(b) of the 1976 Code, relating to funds for renovation, capital improvement, or repair of classrooms, 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, beginning on page 1, by striking lines 29 through line 8 on page 2, and inserting:
/ Provided however, in the event that a school district sold bonds or secured a loan at an interest rate less than prevailing rates and has an identified need for funds in excess of fifty percent of funds provided in subsection (a) or anticipates a significant increase in need for additional classroom space, that district, subject to approval of the county's legislative delegation, may request a waiver from this requirement by the State Board of Education. The waiver request must be accompanied by a letter from the legislative delegation approving the request. Each member of the delegation shall sign the letter stating whether the member is in favor or in opposition to the waiver request. After consultation with the State Treasurer on prevailing interest rates and review of the evidence accompanying the waiver request from the school district, and upon certification by the State Treasurer that rates are beneficial to local school district, the State Board of Education may grant a waiver if the evidence is substantiated. The remaining sums may be used either to reduce millage to pay debt service or to pay for capital improvements, repairs, or renovations otherwise authorized during the then current fiscal year. Provided, Further, That if, on the occasion when the annual millage would otherwise be increased to provide for capital improvements, repairs, or renovations, there is on hand with the country treasurer sums from the appropriation herein authorized, sufficient to meet all or a portion of the payments of principal and interest on bonds to be outstanding in the ensuing fiscal year, then such portion of the millage required to pay such debt service need not be imposed." /
Renumber sections to conform.
Amend title to conform.
JOHN E. COURSON for Committee.
EXPLANATION OF IMPACT:
The State Department of Education (SDE) and the State Treasurer's Office estimate this bill will have no impact for those agencies.
Approved By:
Harry Bell
Office of State Budget
TO AMEND SECTION 59-21-420(b) OF THE 1976 CODE, RELATING TO FUNDS FOR RENOVATION, CAPITAL IMPROVEMENT, OR REPAIR OF CLASSROOMS, OR REDUCTION OF MILLAGE AS TO BONDS, TO ELIMINATE THE WAIVER THAT A SCHOOL MAY APPLY FOR UNDER CERTAIN CIRCUMSTANCES.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 59-21-420(b) of the 1976 Code is amended to read:
"(b) If a school district has issued bonds or otherwise undertaken any capital improvement programs during any of the most recent five fiscal years, at least fifty percent of the funds provided in subsection (a) must be used to reduce the millage required to pay debt service on such outstanding bonds.
Provided however, in the event that a school district sold bonds or secured a loan at an interest rate less than prevailing rates and has an identified need for funds in excess of fifty percent of funds provided in subsection (a) or anticipates a significant increase in need for additional classroom space, that district may request a waiver from this requirement by the State Board of Education. After consultation with the State Treasurer on prevailing interest rates and review of the evidence accompanying the waiver request from the school district, and upon certification by the State Treasurer that rates are beneficial to local school district, the State Board of Education may grant a waiver if the evidence is substantiated. The remaining sums may be used either to reduce millage to pay debt service or to pay for capital improvements, repairs, or renovations otherwise authorized during the then current fiscal year. Provided, Further, That if, on the occasion when the annual millage would otherwise be increased to provide for capital improvements, repairs, or renovations, there is on hand with the country treasurer sums from the appropriation herein authorized, sufficient to meet all or a portion of the payments of principal and interest on bonds to be outstanding in the ensuing fiscal year, then such portion of the millage required to pay such debt service need not be imposed."
SECTION 2. This act takes effect upon approval by the Governor.
This web page was last updated on Monday, June 22, 2009 at 3:06 P.M.