Bill 3554

                    Current Status

Bill Number:               3554
Ratification Number:       281
Act Number                 183
Introducing Body:          House
Subject:                   Relating to airports

(A183, R281, H3554)

AN ACT TO AMEND CHAPTER 11, TITLE 55, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO AIRPORTS, BY ADDING ARTICLE 7 SO AS TO PROVIDE CERTAIN STATE FUNDING FOR AIR CARRIER HUB TERMINAL FACILITIES TO BE CONSTRUCTED IN THIS STATE, AND PROVIDE THE PROCEDURES OF AND THE USE FOR THIS FUNDING; AND TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO EXEMPT ALL PERSONAL PROPERTY OF AN AIR CARRIER OPERATING AN AIR CARRIER HUB TERMINAL FACILITY IN THIS STATE FOR A PERIOD OF TEN YEARS.

Be it enacted by the General Assembly of the State of South Carolina:

Findings

SECTION 1. The General Assembly finds that it would be beneficial to the traveling public and desirable and in the best interest of the economy and well-being of this State to provide incentives to air carriers to induce them to establish air carrier hubs within this State and commits to the Governor the duty and responsibility for attracting air carriers to establish air carrier hubs at air carrier airports within this State. In order to assist in the promotion of air carrier hubs, this act authorizes the issuance of general obligation bonds of this State and the use of the proceeds of these bonds to pay a portion of the costs of acquiring, constructing, improving, equipping, and establishing suitable airport facilities to serve as the sites of air carrier hubs. The General Assembly has determined that the authorizations for these purposes are in the public interest, serve a public purpose, and promote the health, safety, welfare, and conveniences of the people of this State.

The General Assembly has determined that present air carrier transportation facilities within this State are inadequate to serve as air carrier hub terminal facilities and that in order to accommodate and serve air carrier hubs (1) new construction of air transportation facilities and acquisition of equipment is needed, (2) present air carrier transportation facilities need enlarging, improving, and extending, and (3) fifty million dollars in state matching funds is needed to pay a portion of these costs.

Procedures for and use of state funding

SECTION 2. Chapter 11, Title 55 of the 1976 Code is amended by adding:

"Article 7

State Funding of Air Carrier Hub

Terminal Facilities

Section 55-11-500. As used in this article:

(a) an 'air carrier hub terminal facility' is an airport terminal facility from which an air carrier certified or licensed by the Federal Aviation Administration shall or will operate at least twenty common carrier departing flights a day on which the general public may fly seven days a week, fifty-two weeks a year. No less than seventy percent of all seats on these aircraft arriving at or departing from an air carrier terminal facility must be on jet aircraft capable of carrying at least one hundred passengers on each flight.

(b) An 'air carrier' is a corporation licensed by the Federal Aviation Administration with a certificate of public convenience and necessity or an operating certificate under other applicable federal law or pertinent regulations which operates aircraft in common carrier service and serves an air carrier hub terminal facility as defined in this section.

(c) 'Board' means the State Budget and Control Board.

(d) 'Bonds' mean general obligation bonds of this State.

Section 55-11-510. The State, from the proceeds of sale of bonds authorized by Section 55-11-520, is authorized to pay a portion or all of the costs of any insurance required to guarantee the payment of, or any credit enhancement facility utilized in connection with, obligations issued or to be issued by a special purpose district or other political subdivision of this State, for the purposes of acquiring land for and constructing and equipping air carrier hub terminal facilities; except that the amount of fees paid by the State to purchase this insurance or other credit enhancement facility must not exceed one and one-half percent of the principal plus all interest payable on obligations issued by a special purpose district or other political subdivision of this State. The cost of this insurance or other credit enhancement facility may be paid by the State directly to the provider of it, or by way of reimbursement to the special purpose district or political subdivision.

Section 55-11-520. Pursuant to the provisions of subsection 6(c), Section 13, Article 10 of the Constitution of this State, in order to provide funds to pay a portion of the costs of (1) acquiring land, (2) constructing, enlarging, improving, extending, renovating, and equipping suitable air carrier hub terminal facilities to be located in this State, (3) purchasing equipment, ground support equipment, machinery, special tools, maintenance, boarding facilities, and any and all additional necessary, real or personal property for the operation of air carrier hub terminal facilities, and (4) to pay a portion or all of the costs of any insurance required to guarantee the payment of, or any credit enhancement facility utilized in connection with, obligations issued by a special purpose district or other political subdivision of this State, not exceeding fifty million dollars of general obligation bonds of this State may be issued in the manner provided in this article and by law upon their authorization in a state capital improvement bond bill as permitted by Section 2-7-105.

As a further condition to the issuance of these bonds after their authorization in a state capital improvement bond bill, the special purpose district or other political subdivision requesting bonds to be issued pursuant to this article must have entered into a binding contract with an air carrier committing the air carrier to use the air carrier hub terminal facility for a period of ten years or the period of time needed to retire any indebtedness incurred by the special purpose district or other political subdivision to construct the air carrier hub terminal facility, whichever is less. Upon receipt of a certified copy of the executed contract, the State Development Board shall consider an air carrier's financial ability, willingness, and commitment to serve this State and other factors considered relevant by the State Development Board. If the State Development Board determines that it is in the best interest of this State for the State to assist in the providing of suitable air carrier hub terminal facilities, the State Development Board shall recommend to the Coordinating Council for Economic Development that it request the Budget and Control Board to consider recommending the issuance of bonds of this State for the purposes authorized in this article. If the Coordinating Council for Economic Development approves the recommendation of the State Development Board, it shall forward its written approval and request to the Budget and Control Board.

After review by the Joint Bond Review Committee, the board may allocate bond proceeds for the purposes authorized in this article to match on a dollar for dollar basis, local funds expended by any special purpose district or other political subdivision of this State. Local funds may include user fees and other monies made available by the special purpose district or political subdivision, but may not include federal grants made available to the special purpose district or other political subdivision for runway construction."

Property tax exemption

SECTION 3. Section 12-37-220B of the 1976 Code is amended by adding a new item to read:

"( ) All personal property of an air carrier including aircraft used in operating an air carrier hub terminal facility in this State for a period of ten consecutive years from the date of qualification, if its qualifications are maintained. An air carrier hub terminal facility is defined in Section 55-11-500."

Time effective

SECTION 4. This act takes effect upon approval by the Governor.