Current Status Introducing Body:
SenateBill Number: 992Primary Sponsor: PassailaigueCommittee Number: 15Type of Legislation: GBSubject: Highway Bond Fund AccountResiding Body: SenateCurrent Committee: TransportationComputer Document Number: 992Introduced Date: May 15, 1991Last History Body: SenateLast History Date: May 15, 1991Last History Type: Introduced, read first time, referred to CommitteeScope of Legislation: StatewideAll Sponsors: Passailaigue McConnellType of Legislation: General Bill
Bill Body Date Action Description CMN ---- ------ ------------ ------------------------------ --- 992 Senate May 15, 1991 Introduced, read first time, 15 referred to CommitteeView additional legislative information at the LPITS web site.
TO AMEND ARTICLE 3, CHAPTER 11, TITLE 57, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO STATE HIGHWAY BONDS SO AS TO CREATE A STATE HIGHWAY BOND FUND ACCOUNT AND TO PROVIDE FOR THE REPAYMENT OF BONDS FROM REVENUE DERIVED FROM TAXES LEVIED BY SECTIONS 12-27-1210,12-27-1220, 12-27-1230, AND 12-27-1240; TO REPEAL SECTIONS 12-27-1260 THROUGH 12-27-1300 RELATING TO THE STRATEGIC HIGHWAY PLAN FOR IMPROVING THE MOBILITY AND SAFETY PROGRAM AND TO PROVIDE THAT THE CODE COMMISSIONER CHANGE CERTAIN REFERENCES IN THE 1976 CODE OF LAWS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 3, Chapter 11, Title 57 of the 1976 Code is amended to read:
"Section 57-11-210. The terms defined herein shall have the meanings hereinafter set forth:
(1) `Fiscal year' means the fiscal year upon which the affairs of the State of South Carolina are then being conducted. As of the date of this enactment it is that which begins on July first and ends on June thirtieth of the succeeding calendar year.
(2) `Fuel oil tax' shall mean the tax levied pursuant to Chapter 29, Title 12.
(3) `Gasoline tax' shall mean not less than 7.09 cents of the 8.09 cents per gallon tax imposed upon gasoline, components thereof or substitutes therefor, pursuant to the provisions of Chapter 27 of Title 12, except Section 12-27-240. In the event that by legislation enacted subsequent to July 1, 1977, the tax imposed by Section 12-27-230 shall be increased to more than 8.09 cents per gallon, then in such event all of such increase shall be embraced within the definition `gasoline tax' as used in this section unless in the initial enactment subsequent to July 1, 1977, the General Assembly shall prescribe some other use for all or some portion of such increase in such tax.
(4) `Highway commission' `Commission' shall mean that agency of government now composed in accordance with the provisions of Articles 3 and 5 of Chapter 3, Title 57, and any other commission or agency of government hereafter exercising the powers granted to the State Highway and Public Transportation Commission commission pursuant to the provisions of Chapter 3, Title 57.
(5) `Highway construction purposes' shall mean the construction of roads now or hereafter made a part of the State state highway system, or the reconstruction and improvement of highways now or hereafter made a part of the State state highway system.
(6) `Motor vehicle license tax' shall mean the annual tax imposed upon the owner of every motor and other vehicle pursuant to the provisions of Articles 5, 7, 21 and 25, Chapter 3, Title 56.
(7) `Road tax' shall mean the road tax imposed on motor carriers pursuant to Chapter 31, Title 12. (8) `Sources of revenue' shall mean the gasoline tax, the fuel oil tax, the road tax and the motor vehicle license tax.
(9) `State board' shall mean the State Budget and Control Board of South Carolina.
(10) `State highway bonds' shall mean all general obligation bonds of the State of South Carolina designated as State state highway bonds, which are now outstanding and which may hereafter be issued pursuant to the authorizations of this article.
Section 57-11-220. Whenever it shall become becomes necessary that moneys monies be raised for highway construction purposes, or construction and equipment of headquarters administrative facilities, including moneys monies to be used to refund any State state highway bonds then outstanding, the Highway and Public Transportation Commission commission may make request to the State Board for the issuance of State state highway bonds pursuant to this article. Such request may be in the form of a resolution adopted at any regular or special meeting of the Highway and Public Transportation Commission commission. Such request shall set forth (on the face thereof or by schedules attached thereto):
(1) The the amount then required for highway construction;
(2) A a tentative time schedule setting forth the period of time during which the sum requested will be expended. ;
(3) A a debt service table showing the annual principal and interest requirements for all State state highway bonds then outstanding. ;
(4) The the amount of revenues derived from each of the sources of revenue during the preceding fiscal year; and
(5) The amount as estimated by the Highway and Public Transportation Commission which will be derived from the sources of revenue during the then current and the next ensuing fiscal years during which it is expected that the State highway bonds then sought to be issued will be outstanding, but in estimating the amount to be derived from the sources of revenue the Highway and Public Transportation Commission shall not assume that the revenues for the then current fiscal year or any future fiscal year will be more than five percent in excess of the actual sums derived from the sources of revenue in the preceding fiscal year, nor that in the sixth or subsequent years there will be any increase over the estimated revenues for the fifth fiscal year following the last completed fiscal year. the fund balance of the state highway bond fund and a schedule showing all encumbrances of the fund and a schedule of payments to be made from the fund for all debts then outstanding.
Section 57-11-230. Following the receipt of any request pursuant to Section 57-11-220, the State Board shall review the same and to the extent that it shall approve such request, it shall be empowered, by resolution duly adopted, to effect the issuance of State state highway bonds, or pending the issuance thereof, effect the issuance of bond anticipation notes pursuant to Sections 11-17-10 to 11-17-110, as amended.
Section 57-11-240. The outstanding aggregate principal indebtedness on account of State state highway bonds shall not exceed the limits established in Article X, Section 13 of the South Carolina Constitution one hundred fifty million dollars, exclusive of a maximum of seven million dollars of bonds that are hereby authorized for construction and equipment of headquarters administrative facilities. The limitation herein imposed shall not be deemed to be an obligation of the contract made between the State and the holders of bonds issued pursuant to this article, and the limitation herein imposed may be enlarged or reduced from time to time by acts amendatory hereof. Within such limitations State state highway bonds may be issued from time to time under the conditions prescribed by this article.
Section 57-11-250. For the payment of the principal of and interest on all State state highway bonds (whether now outstanding or hereafter issued), there shall be pledged the full faith, credit and taxing power of the State of South Carolina and in addition thereto, but subject to the limitations hereafter set forth, all of the moneys derived from taxes levied in Sections 12-27-1210 through 12-27-1240 of the 1976 Code the sources of revenue. All moneys realized from the sources of revenue which may be forthwith used by the State Treasurer, without further action of the Highway and Public Transportation Commission commission, for the payment of the principal and interest of State state highway bonds, as the same respectively mature.
Section 57-11-260. All revenue received from the sources of revenue during each fiscal year shall be discharged from the pledge made by Section 57-11-250 when payment, or provision for payment, has been made for all installments of principal or interest of all State highway bonds maturing in such fiscal year, and thereafter such moneys may be applied as hereinafter provided.
Section 57-11-270. The pledge of moneys monies derived from the sources of revenue set aside in the state highway bond fund shall not preclude the General Assembly from revising the quantum of any tax included in the sources of revenue, credited to the state highway bond fund except that, so long as any State state highway bonds shall be outstanding, the gasoline tax shall be not less than the greater of 5.67› cents per gallon, or the larger amount to which it shall be raised by legislation enacted subsequent to January 1, 1973, the fuel oil tax shall be not less than eight cents per gallon, the road tax not less than eight cents per gallon, and the schedule of motor vehicle license tax shall not be revised in such fashion as to reduce the aggregate to be received therefrom.
Section 57-11-280. In order to effect the issuance of bonds pursuant to this article, the State Board may adopt a resolution providing for the issuance of State state highway bonds and may transmit a certified copy thereof to the Governor and to the State Treasurer, with the request that they issue and deliver State state highway bonds in accordance with the terms and conditions of such resolution. Such resolution shall set forth the following:
(1) The the amount, denomination and numbering of State highway bonds to be issued;
(2) The the date as of which the same shall be issued;
(3) The the maturity schedule for the retirement of such State state highway bonds;
(4) The the redemption provisions, if any, applicable to such bonds;
(5) The the maximum rate or rates of interest the bonds shall bear which shall not be in excess of that permitted by Act 423 of 1969 as now constituted or as hereafter amended;
(6) The the purposes for which the bonds are to be issued;
(7) The the occasion on which bids shall be received for the sale of such bonds;
(8) The the form of advertisement of sale;
(9) The the form of the bonds of the particular issue; and
(10) Such such other matters as may be deemed necessary in order to effect the sale, issuance and delivery thereof.
Such resolution shall further set forth a finding on the part of the State Board that the revenues credited to the state highway bond fund actual receipts, for the preceding fiscal year, from the sources of revenue equaled or exceeded one hundred fifty percent of the maximum annual debt service requirements for all State state highway bonds then outstanding and all State state highway bonds thereafter to be outstanding and that the estimate made by the Highway and Public Transportation Commission commission and approved by the State Board indicates that collections from the sources of revenue in the then current and in applicable future fiscal years, will not be less than one hundred fifty percent of maximum annual interest and principal requirements of all State state highway bonds then outstanding and all State state highway bonds thereafter to be outstanding.
Section 57-11-290. If following a presentation of a certified copy of the resolution of the State Board it shall appear to the satisfaction of the Governor and the State Treasurer that:
(a) The the amount of revenues derived from the sources of revenue, during the preceding fiscal year, did in fact exceed one hundred fifty percent of the maximum annual principal and interest requirements of all State state highway bonds then outstanding and all State state highway bonds thereafter to be outstanding; and
(b) That the estimated collections from the sources of revenue in the then current and in applicable future fiscal years, will be not less than one hundred fifty percent of the maximum annual debt service requirements of all State state highway bonds then outstanding and all State state highway bonds thereafter to be outstanding, then the Governor and State Treasurer shall be empowered to issue bonds in accordance with the request of the resolution of the State Board.
Section 57-11-300. State highway bonds shall be issued in such form and with such provisions as to time, place or places and medium of payment as may be determined by the State Board, subject to the provisions of this article.
Section 57-11-310. State highway bonds shall each be in the denomination of one thousand dollars or some multiple thereof.
Section 57-11-320. State highway bonds issued pursuant to this article may be in the form of negotiable coupon bonds, payable to bearer, with the privilege to the holder of having them registered in his name on the books of the State Treasurer as to principal only, or as to both principal and interest, and such principal, or both principal and interest, as the case may be, thus made payable to the registered holder, subject to such conditions as the State Board may prescribe. State highway bonds so registered as to principal in the name of the holder may thereafter be registered as payable to bearer and made payable accordingly.
State highway bonds may also be issued as fully registered bonds with both principal and interest thereof made payable only to the registered holder. Such fully registered bonds shall be subject to transfer under such conditions as the State Board shall prescribe. Such fully registered bonds may, if the proceedings authorizing their issuance so provide, be convertible into negotiable coupon bonds with the attributes set forth in the first paragraph of this section.
Section 57-11-330. State highway bonds shall bear interest, payable on such occasions as shall be prescribed by the State Board, at a rate or rates not exceeding the maximum prescribed by Act No. 423 of 1969, as such act is now constituted or as such act may hereafter be constituted following amendment or revision thereof. Each issue of State state highway bonds shall mature in annual series or installments, the first of which annual series or installments shall mature not more than two years after the date of the bonds and the last of which shall mature not more than twenty-five thirty years after such date. Such installments or series may be equal or unequal in amount. State highway bonds may, in the discretion of the State Board, be made subject to redemption at par and accrued interest, plus such redemption premium as it shall approve and on such occasions as it may prescribe. State highway bonds shall not be redeemable before maturity unless they contain a statement to that effect.
Section 57-11-340. All State state highway bonds issued under this article, and the interest thereon, shall be exempt from all State state, county, municipal, school district, and other taxes or assessments, direct or indirect, general or special, imposed by the State of South Carolina, whether imposed for the purpose of general revenue or otherwise, except inheritance, estate or transfer taxes.
Section 57-11-350. All state highway bonds issued under this article must be signed by the Governor and the State Treasurer. The Governor and the State Treasurer may sign these obligations by a facsimile of their signatures. The Great Seal of the State must be affixed to, impressed, or reproduced upon each of them and each must be attested by the Secretary of State. All coupons that may be attached to state highway bonds must be authenticated by facsimile signature of the State Treasurer who is in office on the date which the state highway bonds bear or on the date on which the state highway bonds are converted into coupon bonds. State highway bonds so executed and authenticated are valid notwithstanding any changes in officers or seal occurring after the execution or authentication.
Section 57-11-360. State highway bonds may be privately placed as an investment of the State Retirement System, if the terms and conditions of such disposition shall be approved by resolution duly adopted by the State Board.
Otherwise, State state highway bonds shall be sold by the Governor and the State Treasurer upon sealed proposals, after publication of notice of such sale one or more times at least seven days before such sale, in a newspaper of general circulation in the State and also in a financial paper published in New York City which regularly publishes notices of sale of State state or municipal bonds. The bonds shall be awarded to the highest bidder at a price of not less than par and accrued interest to the date of delivery, but the right shall be reserved to reject all bids and to readvertise the bonds for sale and to waive technicalities in the bidding.
For the purpose of bringing about successful sales of such bonds, the State Board may do all things ordinarily and customarily done in connection with the sale of State state or municipal bonds. All expenses incident to the sales of such bonds shall be paid from the proceeds of the sale of such bonds.
Section 57-11-370. It shall be lawful for all executors, administrators, guardians and other fiduciaries and all sinking fund commissions, including the State Budget and Control Board of South Carolina in its capacities as trustee of the funds of the South Carolina Retirement System and as manager and administrator of other State state sinking funds, to invest any moneys monies in their hands in State state highway bonds.
Section 57-11-380. The proceeds of the sale of State state highway bonds shall be received by the State Treasurer and applied by deposited to the credit of the state highway bond fund account him to the purposes for which issued, except that the accrued interest, if any, shall be used to discharge in part the first interest to become due on such bonds, and the premium, if any, shall be used to discharge the payment of the first installment of principal to become due on such bonds, but the purchasers of such bonds shall in no wise be liable for the proper application of the proceeds to the purposes for which they are intended.
Section 57-11-390. The proceeds derived from the sale of State state highway bonds shall be applied only to the purposes for which the bonds are issued.
Section 57-11-400. Within the highway fund, there is established a separate and distinct state highway bond fund and a state highway bond fund debt service account. The revenue derived from the tax levied by Section 12-27-1210, 12-27-1220, 12-27-1230, and 12-27-1240 must be remitted to the State Treasurer to be credited to the state highway bond fund debt service account. The state highway bond fund and the state highway bond fund debt service account must be separate and distinct from the state general fund and highway fund. The proceeds of all issuances of state highway bonds must be deposited to and must remain part of the state highway bond fund. All earnings on investments of any monies deposited to the credit of the state highway bond fund and the state highway bond fund debt service account must accrue to and be deposited in the respective account. Money from the state highway bond fund may be expended only for the purposes delineated in the resolution authorizing the issuance. The State Highways and Public Transportation Commission commission is authorized to make a request to the State Budget and Control Board for the authority to issue up to one hundred twenty-five million dollars in additional bonds pursuant to the this chapter provisions of Article 3, Chapter 11, Title 57 of the 1976 Code to be used exclusively for the Strategic Highway Plan for Improving Mobility and Safety Program. and These these bonds must be retired over a twenty-year period from revenue generated by the additional taxes levied in Sections 12-27-1210 through 12-27-1240 of the 1976 Code."
SECTION 2. Whenever the term Strategic Highway Plan for Improving Mobility and Safety Program or Strategic Highway Plan for Improving Mobility and Safety appears in the Code of Laws of South Carolina, it shall mean Highway Bond Fund. The Code Commissioner is directed to change all such references at such time and in such manner as may be timely and cost effective.
SECTION 3. Sections 12-27-1260, 12-27-1270, 12-27-1280, 12-27-1290, and 12-27-1300 are repealed.
SECTION 4. Upon the effective date of this act, the Commission commission of the department must review all pending construction projects under the Strategic Highway Plan for Improving Safety and Mobility Program, including projects which have been let and projects which are under construction. From this review, the Commission commission shall prepare a written report that details all such projects including the approximate location of the project and the estimated cost of completing such projects. The Commission commission must issue this written report to the Education and Public Works Committee of the House of Representatives and the Transportation Committee of the Senate. All funds not approved by the Commission commission for the continuation of construction projects shall be transferred to the highway bond fund as established in Section 57-11-400 and all funds approved by the Commission commission for the continuation of construction projects shall be transferred to the State state highway fund to be used for the completion of such projects.
SECTION 5. This act takes effect upon approval by the Governor.