Current Status Bill Number:486 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19970305 Primary Sponsor:Ravenel All Sponsors:Ravenel, Leatherman, Elliott, Leventis, Rankin, Mescher, Reese, Ford, Cork, McGill, Rose, McConnell, Washington, Williams, Passailaigue and Martin Drafted Document Number:jic\20164htc.97 Residing Body:Senate Current Committee:Transportation Committee 15 ST Subject:Transportation Infrastructure Bank Act, Highways and Streets, Fuel, Gasoline tax, County and Highway Funds
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
Senate 19970305 Unanimous consent that upon the report
by the Committee on Transportation, the
bill be committed to the Committee on
Finance
Senate 19970305 Introduced, read first time, 15 ST
referred to Committee
View additional legislative information at the LPITS web site.
TO AMEND TITLE 11, CODE OF LAWS OF SOUTH CAROLINA, RELATING TO PUBLIC FINANCE, BY ADDING CHAPTER 42 ENACTING THE SOUTH CAROLINA TRANSPORTATION INFRASTRUCTURE BANK ACT SO AS TO ESTABLISH THE SOUTH CAROLINA TRANSPORTATION INFRASTRUCTURE BANK, PROVIDE FOR ITS GOVERNANCE, POWERS AND DUTIES, AND SOURCES OF CAPITALIZATION INCLUDING GENERAL FUND TRANSFERS AND AMOUNTS EQUAL TO ONE-HALF OF ANNUAL STATE HIGHWAY FUND GROWTH, AND TO PROVIDE A SCHEDULE OF INITIAL PRIORITY PROJECTS FOR BANK FINANCING; TO AMEND SECTION 12-28-2720, AS AMENDED, RELATING TO THE DISTRIBUTION OF GAS TAX REVENUES, SO AS TO DEDICATE ONE CENT A GALLON OF GASOLINE TAX REVENUES TO THE BANK ESTABLISHED BY THIS SECTION; AND TO AMEND SECTIONS 12-28-2740, 12-28-2910, AND 57-11-20, ALL AS AMENDED, RELATING TO "C" FUND ALLOCATIONS, THE ECONOMIC DEVELOPMENT ACCOUNT, AND THE STATE HIGHWAY FUND, SO AS TO REQUIRE INTEREST EARNINGS ON THE COUNTY TRANSPORTATION FUND AND THE OTHER NAMED FUNDS TO BE CREDITED TO THE BANK ESTABLISHED BY THIS ACT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The General Assembly finds that:
(1) Adequate transportation facilities are an important element in the ability of a community to provide for the health and welfare of its citizens and the continuing economic growth and development that will provide jobs for the citizens of South Carolina.
(2) Traditional transportation financing methods in South Carolina cannot generate the resources necessary to fund the cost of transportation facilities which are required for continued economic viability and future economic expansion.
(3) The State of South Carolina has the ability to provide for alternative methods of financing highway and transportation projects.
(4) Loans and other financial assistance to government units and private entities can play an important part in meeting transportation needs, and this assistance is in the public interest, for the public benefit and good as a matter of legislative intent.
(5) This chapter provides an instrumentality to assist government units and private entities in constructing and improving highway and transportation facilities by providing loans and other financial assistance.
SECTION 2. Title 11 of the 1976 Code is amended by adding:
Section 11-42-10. This chapter may be referred to as the 'South Carolina Transportation Infrastructure Bank Act'.
Section 11-42-20. (A) There is created a body corporate and politic and an instrumentality of the State to be known as the South Carolina Transportation Infrastructure Bank.
(B) The bank is governed by a board of directors as provided in this chapter.
(C) The corporate purpose of the bank is to provide loans and other financial assistance to government units and private entities for constructing and improving highway and transportation facilities necessary for public purposes including economic development. The exercise by the authority of a power conferred in this chapter is an essential public function.
(D) The bank shall establish and maintain at least the four following accounts: state highway account, state transit account, federal highway account, and federal transit account.
(E) The board shall ensure that the bank maintains on a continuing basis a sufficient investment grade rating on its debt issuances or has a sufficient level of bond or debt instrument insurance to maintain the viability of the bank.
(F) Nothing in this chapter limits the bank from assessing and determining creditworthiness of applicants submitting applications for projects. This determination of creditworthiness shall not supplant those of bond rating agencies nor does it affect the bond instruments associated with the bank.
Section 11-42-30. As used in this chapter:
(1) 'Bank' means the South Carolina Transportation Infrastructure Bank established pursuant to this chapter.
(2) 'Board' means the board of directors of the bank.
(3) 'Bonds' means bonds, notes, or other evidence of indebtedness.
(4) 'Department of Transportation' means the South Carolina Department of Transportation, an agency of the State, and its successors.
(5) 'Eligible cost' means as applied to a qualified project to be financed from the federal accounts, the costs that are permitted under applicable federal laws, requirements, procedures, and guidelines in regard to establishing, operating, and providing assistance from the bank. As applied to a qualified project to be financed from the state highway account, these costs include the costs of preliminary engineering, traffic and revenue studies, environmental studies, right-of-way, legal and financial services associated with the development of the qualified project, construction, construction management, facilities, and other costs necessary for the start up of the qualified project. As applied to any qualified project to be financed from the state transit account, eligible project costs are limited to capital expenditures for transit equipment and facilities.
Notwithstanding any other provision of law, a county may construct or improve an eligible project with monies borrowed from or financial assistance provided by the bank.
(6) 'Eligible project' means a highway or transit project which provides public benefits by either enhancing mobility and safety, promoting economic development, or increasing the quality of life and general welfare of the public.
(7) 'Federal accounts' means collectively, the separate account for federal highway funds and federal transit funds.
(8) 'Financing agreement' means any agreement entered into between the bank and a qualified borrower pertaining to a loan, bonds, or other financial assistance. This agreement may contain, in addition to financial terms, provisions relating to the regulation and supervision of a qualified project, or other provisions as the board may determine. The term 'financing agreement' includes, without limitation, a loan agreement, trust agreement, trust indenture, security agreement, reimbursement agreement, guarantee agreement, bond or note, ordinance or resolution, or similar instrument.
(9) 'Government obligations or governmental obligations' means bonds, notes, or other evidence of indebtedness issued by a government unit to evidence a loan.
(10) 'Government unit' means a municipal corporation, county, special purpose district, public service district, commissioners of public works, or another public body, instrumentality or agency of the State including combinations of two or more of these entities acting jointly to construct, own, or operate a qualified project, and any other state or local authority, board, or other political subdivision created by the General Assembly or pursuant to the Constitution and laws of this State which may construct, own, or operate a qualified project.
(11) 'Loan' means an obligation subject to repayment which is provided by the bank to a qualified borrower for all or a part of the cost of a qualified project. A loan may be disbursed in anticipation of reimbursement for or direct payment of costs of a qualified project.
(12) 'Loan obligation' means a bond, note, or other evidence of obligation issued by a qualified borrower.
(13) 'Other financial assistance' means, but is not limited to, credit enhancement, capital or debt reserves for bonds or debt instrument financing, interest rate subsidies, letters of credit and credit instruments, bonds, provisions of bond or other debt financing instrument security, and other lawful forms of financing and methods of leveraging funds that are approved by the board, and in the case of federal funds, as shown by federal law and includes, but is not limited to, instruments and methods for long-term financing, short-term financing, fixed financing, variable financing, taxable and tax exempt instruments, letters of credit, financial instruments whose value is determined by the value of underlying assets, rates or indexes, and other financial instruments not yet determined or created.
(14) 'Private entity' means a private person or entity that has entered into a contract with a government unit to design, finance, construct, and operate a highway bridge, tunnel, or approach that is within the jurisdiction of the government unit that is responsible for complying with applicable federal requirements.
(15) 'Project revenues' means all rates, rents, fees, assessments, charges, and other receipts derived or to be derived by a qualified borrower from a qualified project or made available from a special source, and, if provided in the applicable financing agreement, derived from any system of which the qualified project is a part of from any other revenue-producing facility under the ownership or control of the qualified borrower including, without limitation, proceeds or grants, gifts, appropriations and loans, including the proceeds of loans made by the bank, investment earnings, reserves for capital and current expenses, proceeds of insurance or condemnation and proceeds from the sale or other disposition of property.
(16) 'Qualified borrower' means any government unit or private entity which is authorized to construct, operate, or own a qualified project.
(17) 'Qualified project' means an eligible project which has been selected by the bank to receive a loan or other financial assistance from the bank to defray an eligible cost.
(18) 'Regional government unit' means a government unit which is authorized to construct, own, or operate an eligible project on behalf of two or more government units, or designated parts of it.
(19) 'Revenues' means when used with respect to the bank, any receipts, fees, income, or other payments received or to be received by the bank including, without limitation, receipts, and other payments deposited in the bank and investment earnings on its funds and accounts.
(20) 'State accounts' means, collectively, the separate account for state highway funds and state transit funds.
Section 11-42-40. The board of directors is the governing board of the bank and consists of six members as follows:
(1) the chairman of the Department of Transportation Commission, ex officio;
(2) the director of the Department of Commerce, ex officio;
(3) the State Treasurer, ex officio;
(4) one member appointed by the Speaker of the House of Representatives who may be a member of the House of Representatives and, if so, shall serve ex officio;
(5) one member appointed by the President Pro Tempore of the Senate who may be a member of the Senate and, if so, shall serve ex officio;
(6) one member appointed by the Governor.
Appointed members shall serve for terms of two years and until their successors are appointed and qualify, terminable at the will of the appointing authority. The Governor shall designate a member who shall serve as chairman of the board of directors. Vacancies must be filled in the manner of original appointment for the unexpired portion of the term. Members shall not receive compensation, but are allowed the mileage and subsistence provided by law for members of state boards, committees, and commissions.
Section 11-42-50. (A) In addition to the powers contained elsewhere in this chapter, the bank has all power necessary, useful, or appropriate to fund, operate and administer the bank, and to perform its other functions including, but not limited to, the power to:
(1) have perpetual succession;
(2) adopt, promulgate, amend, and repeal bylaws, subject to the approval of the board not inconsistent with this chapter for the administration of its affairs and the implementation of its functions;
(3) sue and be sued in its own name;
(4) have a seal and alter it at its pleasure, although the failure to affix the seal does not affect the validity of an instrument executed on behalf of the bank;
(5) make loans to qualified borrowers to finance the eligible costs of qualified projects and to acquire, hold, and sell loan obligations at prices and in a manner as the board determines advisable;
(6) provide qualified borrowers with other financial assistance necessary to defray eligible costs of a qualified project;
(7) to issue bonds as defined in Section 11-42-30(3);
(8) enter into contracts, arrangements, and agreements with qualified borrowers and other persons and to execute and deliver all financing agreements and other instruments necessary or convenient to the exercise of the powers granted in this chapter;
(9) enter into agreements with a department, agency, or instrumentality of the United States or of this State or another state for the purpose of planning and providing for the financing of qualified projects;
(10) establish:
(a) policies and procedures for the making and administering of loans and other financial assistance; and
(b) fiscal controls and accounting procedures to ensure proper accounting and reporting by the bank, government units, and private entities.
(11) acquire by purchase, lease, donation, or other lawful means and to sell, convey, pledge, lease, exchange, transfer, and dispose of all or any part of its properties and assets of every kind and character or any interest in it, to further the public purpose of the bank;
(12) expend funds to obtain accounting, management, legal, financial consulting, and other professional services necessary to the operations of the bank;
(13) establish advisory committees as the board determines appropriate, which may include individuals from the private sector with banking and financial expertise;
(14) procure insurance against losses in connection with its property, assets, or activities including insurance against liability for its acts or the acts of its employees or agents or the employees or agents of the Department of Transportation, or to establish cash reserves to enable it to act as a self-insurer against any and all such losses;
(15) collect fees and charges in connection with its loans or other financial assistance;
(16) apply for, receive and accept from any source, aid, grants, and contributions of money, property, labor, or other things of value to be used to carry out the purposes of this chapter subject to the conditions upon which the aid, grants, or contributions are made;
(17) enter into contracts or agreements for the servicing and processing of financing agreements;
(18) do all other things necessary or convenient to exercise powers granted or reasonably implied by this chapter.
(B) The bank is not authorized or empowered to be or to constitute a bank or trust company within the jurisdiction or under the control of the State or an agency of it or the Comptroller of the Currency or the Treasury Department of the United States, or a bank, banker or dealer in securities within the meaning of, or subject to the provisions of, any securities, securities exchange or securities dealers' law of the United States or of this State.
Section 11-42-60. Bonds issued by the bank do not constitute a debt or liability of the State or any political subdivision of the State and the issuing of bonds does not pledge to their repayment the full faith and credit of the State or any subdivisions of this State.
Section 11-42-70. (A) The following sources may be used to capitalize the bank:
(1) federal funds made available to the State;
(2) contributions and donations from public authorities, government units, and private entities;
(3) all monies paid or credit to the bank, by contract or otherwise, payments of principal and interest on loans or other financial assistance made from the bank, and interest earnings which may accrue from the investment or reinvestment of the bank monies; and
(4) other lawful sources as determined appropriate by the board.
(B) The following sources of revenue are dedicated to the capitalization of the bank :
(1) an annual transfer from the general fund of the State as provided in Section 11-42-180;
(2) one cent a gallon of gasoline tax revenues as provided in Section 12-28-2720,
(3) interest earnings on the State Highway Fund, the County Transportation Fund, and the Economic Development Account,
(4) one-half of estimated annual growth in revenues of the State Highway Fund as provided for in Section 11-42-180.
Section 11-42-80. (A) Earnings on balances in the federal accounts must be credited and invested according to federal law. Earnings on state accounts must be credited to the state highway account or state transit account that generates the earnings. The bank may establish accounts and subaccounts within the state accounts and federal accounts as considered desirable to effectuate the purposes of this chapter, or to meet the requirements of any state or federal programs. All accounts must be held in trust by the State Treasurer.
(B) For necessary and convenient administration of the bank, the board shall direct the State Treasurer to establish federal and state accounts and subaccounts within the bank necessary to meet any applicable federal law requirements or as the bank determines necessary or desirable in order to implement the provisions of this chapter.
(C) The bank shall comply with all applicable federal laws and regulations prohibiting the commingling of certain federal funds deposited in the bank.
Section 11-42-90. (A) The bank may provide loans and other financial assistance to a government unit or private entity to pay for all or part of the eligible cost of a qualified project. The term of the loan or other financial assistance shall not exceed forty years. The bank may require the government unit or private entity to enter into a financing agreement in connection with its loan obligation. The board shall determine the form and content of loan applications, financing agreements and loan obligations including, the term and rate or rates of interest on a financing agreement. The term and conditions of a loan or other financial assistance from federal account shall comply with applicable federal requirements.
(B) The board shall determine which projects are eligible projects and then select from among these projects those qualified to receive a loan or other financial assistance from the bank. In determining qualified projects, the board shall establish review criteria which must include, but are not limited to:
(1) maximum economic benefit, enhancement of mobility, enhancement of public safety, and acceleration of project completion;
(2) local support for the project expressed by resolutions by the governing bodies in the area in which the project will be located and the degree of local matching support as determined by the board, including all forms of cash, credit, in-kind contributions, and instruments determined as match by the board;
(3) the ability of the applicant to repay a loan according to the terms and conditions established pursuant to this chapter, consideration of which may include, at the option of the board, the existence of current investment grade rating on existing debt of the applicant secured by the same revenues to be pledged to secure repayment under the loan repayment agreement; and
(4) the financial or in-kind contributions to the project.
Section 11-42-100. (A) Qualified borrowers are authorized to obtain loans or other financial assistance from the bank through financing agreements. Qualified borrowers entering into financing agreements and issuing loan obligations to the bank may perform any acts, take any action, adopt any proceedings, and make and carry out any contracts or agreements with the bank as may be agreed to by the bank and any qualified borrower for the carrying out of the purposes contemplated by this chapter.
(B) In addition to the authorizations contained in this chapter, all other statutes or provisions permitting qualified borrowers to borrow money and issue obligations may be utilized by any qualified borrower in obtaining a loan or other financial assistance from the bank to the extent determined necessary or useful by the qualified borrower in connection with any financing agreement and the issuance, securing, or sale of loan obligations to the bank. Notwithstanding the foregoing, obligations secured by ad valorem taxes may be issued by a government unit and purchased by the bank without regard to any public bidding requirement.
(C) A qualified borrower may receive, apply, pledge, assign, and grant security interest in project revenues, and, in the case of a governmental unit, its project revenues, revenues derived from a special source or ad valorem taxes, to secure its obligations as provided in this chapter, and may fix, revise, charge, and collect fees, rates, rent, assessments, and other charges of general or special application for the operation or services of a qualified project, the system of which it is a part, and any other revenue- producing facilities from which the qualified borrower derives project revenues, to meet its obligations under a financing agreement or to provide for the construction and improving of a qualified project.
Section 11-42-110. The bank is performing an essential governmental function in the exercise of the powers conferred upon it and is not required to pay taxes or assessments upon property or upon its operations or the income from them, or taxes or assessments upon property of other loan obligations acquired or used by the bank or upon the income from them.
Section 11-42-120. (A) If a government unit fails to collect and remit in full all amounts due to the bank on the date these amounts are due under the terms of any note or other obligation of the government unit or private entity, the bank shall notify the State Treasurer who, subject to the withholding of amounts under Article X, Section 14 of the State Constitution, shall withhold all or a portion of the funds of the State and all funds administered by the State, its agencies, boards, and instrumentalities allotted or appropriated to the government unit and apply an amount necessary to the payment of this amount.
(B) Nothing contained in this section mandates the withholding of funds allocated to a government unit or private entity which would violate contracts to which the State is a party, the requirements of federal law imposed on the State, or judgments of a court binding on the State.
Section 11-42-130. Neither the board nor any officer, employee, or committee of the bank acting in behalf of it, nor an officer or employee of this State, while acting within the scope of this authority, is subject to any liability resulting from carrying out any of the powers given in this chapter.
Section 11-42-140. Notice, proceeding, or publication except those required in this chapter are not necessary to the performance of any act authorized in this chapter, nor is any act of the bank subject to referendum.
Section 11-42-150. All money of the bank, except as authorized by law or provided in this chapter, must be deposited with and invested by the State Treasurer. Funds of the bank not needed for immediate use or disbursement may be invested by the State Treasurer in obligations or securities which are declared to be legal obligations by the provisions of Section 11-9-660. All federal funds must be invested as required by applicable federal law.
Section 11-42-160. Following the close of each state fiscal year, the bank shall submit an annual report of its activities for the preceding year to the Governor and to the General Assembly. The bank shall also submit an annual report to the appropriate federal agency in accordance with requirements of any federal program. An independent certified public accountant shall perform an audit of the books and accounts of the bank at least once in each state fiscal year.
Section 11-42-170. State agencies shall provide staff and assist the bank in the administration of the program and the performance of the bank under this chapter. These agencies include, but are not limited to, the State Budget and Control Board, Department of Transportation, Department of Commerce, Office of the Attorney General, Office of the State Treasurer, and Office of the Comptroller General. In order to provide that assistance, such staff may:
(1) assist in the formulation, establishment, and structuring of programs undertaken by the bank pursuant to this chapter;
(2) provide government units or private entities information as to the bank and the procedures for obtaining the assistance intended by the chapter;
(3) assist government units and private entities in making application to state and federal agencies including the bank as may be necessary or helpful in order to avail themselves of these programs;
(4) assist the bank in analyzing and evaluating government unit or private entity requests for assistance pursuant to this chapter;
(5) assist in the structuring and negotiation of financing agreements;
(6) administer the fund, including any accounts in it;
(7) administer the bank's accounts, loans, and other financial assistance, including monitoring compliance by government units or private entities with any rules, regulations, or other requirements of the bank with respect to the programs and compliance with covenants and agreements made by government units or private entities with respect to a financing agreement; and
(8) provide other assistance and perform other duties as may be requested or directed by the bank.
Section 11-42-180. (A) For purposes of providing capital for the bank, and in addition to other sources that are available there is annually transferred from the general fund of the State to the state highway account the following amounts:
`Fiscal Year Amount Transferred
1998-99 $ 50,000,000
1999-00 57,000,000
00-01 57,000,000
01-02 76,000,000
02-03 94,000,000
03-04 104,000,000
04-05 112,000,000
05-06 128,000,000
Years after 05-06 $128,000,000
Increased cumulatively by a
percentage equal to estimated
general fund growth over prior
year general fund revenues.
(B) There is annually transferred from the State Highway Fund to the state highway account of the fund an amount equal to one-half of estimated growth in the revenues of the State Highway Fund over such revenue in the prior fiscal year.
Section 11-42-190. (A) Notwithstanding any other provisions of this chapter, the following projects are deemed qualified projects and given the first priority in financing by the bank.
(1) Aiken-Bobby Jones Expressway
Phase 1 Savannah River to US 1
Phase 2 US 1 to I-20 $ 70,000,000
(2) Beaufort-SC-170 from US 278 to
SC 280 - 13 miles 83,000,000
(3) Charleston -Cooper River Bridge 1-26
To Mount Pleasant 400,000,000
(4) Greenville Projects 200,000,000
(5) Horry County Projects recommended by the
RIDE Committee as approved by the
Department of Transportation450,000,000
Projects identified in this subsection are also authorized for the issue of State Highway Bonds pursuant to Article 3, Chapter 11 of Title 57;
(B) After funding has been provided for the projects authorized in subsection (A), the following projects are deemed qualified projects and given priority in funding ahead of any other projects financed by the bank:
(1) Abbeville/Laurens - SC 72
From Georgia to Abbeville
and from U.S. 221 at Lake
Greenwood to S-46 near Clinton
-31.9 miles $ 105,000,000
(2) Anderson - SC.81 from Starr to Iva
7.4 miles 15,000,000
(3) Berkeley-US 17A multilaning from
From Carnes Crossroads to
Moncks Corner-10.93 miles 30,000,000
(4) Dillon/Marlboro-SC 38 from S-299
To S-54- 9.1 miles 24,000,000
(5) Georgetown, Williamsburg, Clarendon-
Multilaning US.521 from Nine Mile
Curve to I-95 - 56.2 miles211,500,000
(6) Sumter-US 521 from SC 441
Near Hillcrest to I-20 South of Camden48,000,000
(7) York-SC 161 from S-195 west of
Newport to SC 5 east of York-5.4 miles9,000,000
(C) The listing of projects in subsections (A) and (B) of this section is alphabetical and may not be construed to assign priority to a particular project within the subsection.
Section 11-42-200. This chapter, being for the welfare of this State and its inhabitants, must be liberally construed to effect the purposes specified in this chapter. However, nothing in this chapter must be construed as affecting any proceeding, notice, or approval required by law for the issuance by a government unit or private entity of the loan obligations, instruments, or security for loan obligations.
Section 11-42-210. If any provision of this chapter is held or determined to be unconstitutional, invalid, or otherwise unenforceable by a court of competent jurisdiction, it is the intention of the General Assembly that the provision is, or is determined to be, severable from the remaining provisions of the chapter and that the holding does not invalidate or render unenforceable another provision of the chapter."
SECTION 3. A. Section 12-28-2720 of the 1976 Code, as last amended by Act 458 of 1996, is further amended to read:
"Section 12-28-2720. The proceeds from ten and thirty-four hundredths cents a gallon of the tax on gasoline only as levied and provided for in this chapter must be distributed as follows: nine and thirty-four hundredths cents on each gallon must be turned over to the Department of Transportation for the purpose of that department, and one cent on each gallon must be deposited by the State Treasurer to the credit of the state highway account of the South Carolina Transportation Infrastructure Bank."
B. The last paragraph of Section 12-28-2740(A) of the 1976 Code, as last amended by Act 145 of 1995, is further amended to read:
"All interest earnings on the County Transportation Fund in the State Treasury must be credited to the state highway account of the State Highway South Carolina Transportation Infrastructure Bank Fund."
C. The second paragraph of Section 12-28-2910 of the 1976 Code, as last amended by Act 145 of 1995, is further amended to read:
"All interest earnings on the Economic Development Account must be credited to the State Highway state highway account of the South Carolina Transportation Infrastructure Bank Fund."
D. Section 57-11-20(A) of the 1976 Code, as last amended by Act 461 of 1996, is further amended to read:
"(A) All state revenues and state monies dedicated by statute to the operation of the department must be deposited into one fund to be known as the `state highway fund' and all federal revenues and federal monies must be deposited into the `federal aid highway fund'. These funds must be held and managed by the State Treasurer separate and distinct from the general fund, except as to monies utilized by the State Treasurer for the payment of principal or interest on state highway bonds as provided by law. Interest income from the state highway fund must be deposited to the credit of the State Highway state highway account of the South Carolina Transportation Infrastructure Bank Fund. The commission may commit up to the maximum annual debt service provided in Article X, Section 13 of the South Carolina Constitution into a special fund to be used for the sole purpose of paying the principal and interest, as it comes due, on bonds issued for the construction and/or maintenance of state highways. This special account will be designated as the State Highway Construction Debt Service Fund."
SECTION 4. This act takes effect July 1, 1997.