Download This Bill in Microsoft Word format
Current Status Bill Number:View additional legislative information at the LPITS web site.3559 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19990217 Primary Sponsor:W. McLeod All Sponsors:W. McLeod, Allen, Battle, Bowers, Clyburn, Cobb-Hunter, Emory, Gourdine, Hayes, J. Hines, Howard, Jennings, Klauber, Lee, Lloyd, Mack, Miller, Moody-Lawrence, J.H. Neal, Ott, Pinckney, Taylor, Wilder, Bailey Drafted Document Number:l:\council\bills\kgh\15306htc99.doc Companion Bill Number:379 Residing Body:House Current Committee:Ways and Means Committee 30 HWM Subject:School Facilities Bond Act, State; Bonds or Notes, School Districts History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ House 19990310 Co-Sponsor added (Rule 5.2) by Rep. Bailey House 19990217 Introduced, read first time, 30 HWM referred to Committee Versions of This Bill
TO AMEND TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 146 SO AS TO AUTHORIZE THE ISSUANCE OF SCHOOL FACILITIES BONDS AS GENERAL OBLIGATION BONDS OF THE STATE OF SOUTH CAROLINA AND TO PRESCRIBE THE TERMS, CONDITIONS, USES, AND DISTRIBUTION OF THE BONDS AND THEIR PROCEEDS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Title 59 of the 1976 Code is amended by adding:
Section 59-146-10. This chapter may be cited as the 'State School Facilities Bond Act'.
Section 59-146-20. It is declared that, for the benefit of the people of the State, the increase of their commerce, welfare and prosperity, and the improvement of their health and living conditions, it is essential that this and future generations of youth be given the full opportunity to learn and to develop their intellectual and mental capacities; that it is essential that school districts of this State be provided with adequate educational facilities and appropriate additional means to assist the youth in achieving the required levels of learning and development of their intellectual and mental capacities; and that it is the purpose of this chapter to provide a measure of assistance through a matching grant program to enable school districts in this State to provide the facilities and structures which are needed to accomplish the purposes of this chapter, all to the public benefit and good, to the extent and manner provided in this chapter.
Section 59-146-30. As used in this chapter:
(1) 'Department' means the State Department of Education.
(2) 'Grant agreement' means an agreement between the department and a school district pursuant to which the department makes a state grant to the school district with respect to a school facility.
(3) 'School district' means a public body corporate and politic operating as a school district under the provisions of Chapter 17, Title 59.
(4) 'School facilities' means only those facilities defined as 'school facilities' in Section 59-144-30.
(5) 'State Board' means the State Board of Education.
(6) 'State grant' means a grant of money made to a school district for the purpose of defraying a portion of the cost of school facilities made pursuant to a grant agreement.
(7) 'State school facilities bonds' means general obligation bonds of the State of South Carolina issued under the authority of this chapter.
Section 59-146-40. In order to obtain funds for the making of state grants, there may be issued from time to time state school facilities bonds under the conditions prescribed by this chapter.
Section 59-146-50. The maximum principal amount of state school facilities bonds that may be issued pursuant to this chapter shall not exceed seven hundred fifty million dollars except that this limitation shall not apply to any state school facilities bonds issued for the purpose of refunding prior issues of state school facilities bonds. It is the intent of the General Assembly that within this limitation, two hundred fifty million dollars of state school facilities bonds must be issued in each of the fiscal years 1999-00, 2000-01, and 2001-02.
Section 59-146-60. The State Board shall make a request to the State Budget and Control Board for the issuance of state school facilities bonds pursuant to this chapter. The request must be in the form of a resolution adopted at any regular or special meeting of the State Board. The resolution shall set forth on its face or by schedules attached to it:
(1) the amount then required for state grant purposes;
(2) a tentative time schedule setting forth the period of time during which the sum requested will be expended;
(3) a debt service table showing the annual principal and interest requirements for all state school facilities bonds then outstanding; and
(4) the total amount of all state school facilities bonds issued.
Section 59-146-70. Following the receipt of any request pursuant to Section 59-146-60, the State Budget and Control Board shall review the request and it shall approve the request, by resolution duly adopted, to effect the issuance of state school facilities bonds, or pending the issuance of the bonds, effect the issuance of bond anticipation notes pursuant to Chapter 17 of Title 11.
Section 59-146-80. In order to effect the issuance of state school facilities bonds, the State Budget and Control Board shall adopt a resolution providing for the issuance of state school facilities bonds pursuant to the provisions of this chapter. The authorizing resolution must include:
(1) schedules setting forth the aggregate of all general obligation debt of the State (excluding highway bonds, state institutional bonds, tax anticipation notes, and bond anticipation notes) together with certificates of the State Treasurer and State Auditor evidencing compliance with the provisions of paragraph 6(c) of Section 13 of Article X of the South Carolina Constitution;
(2) a schedule showing the aggregate of state school facilities bonds issued, the purposes for which they were issued, the annual payments required to retire the state school facilities bonds, the interest on the bonds, and the amount of any special funds applicable to the retirement of the outstanding state school facilities bonds;
(3) the amount of state school facilities bonds to be issued; and
(4) a schedule showing future annual principal requirements and estimated annual interest requirements on the state school facilities bonds to be issued.
Section 59-146-90. The state school facilities bonds must bear the date and mature at the time that the resolution provides except that no state school facilities bonds may mature more than thirty years from its date of issue. The state school facilities bonds may be in the denominations, be payable in the medium of payment, be payable at the place and at the time, and be subject to redemption or repurchase and contain other provisions determined by the State Budget and Control Board before their issuance. The bonds may bear interest payable at the times and at the rates as determined by the State Budget and Control Board.
Section 59-146-100. All state school facilities bonds issued under this chapter are exempt from taxation as provided in Section 12-2-50.
Section 59-146-110. All state school facilities bonds issued under this chapter 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. The delivery of the state school facilities bonds executed and authenticated is valid notwithstanding changes in officers or seal occurring after the execution or authentication.
Section 59-146-120. For the payment of the principal and interest on all state school facilities bonds issued and outstanding pursuant to this chapter, there is pledged the full faith, credit, and taxing power of the State of South Carolina, and in accordance with the provisions of paragraph (4) of Section 13 of Article X of the South Carolina Constitution, the General Assembly shall allocate on an annual basis sufficient tax revenues to provide for the punctual payment of the principal and interest on the debt authorized by this chapter.
Section 59-146-130. State school facilities bonds must be sold by the Governor and the State Treasurer upon sealed proposals, after publication of notice of the sale one or more times at least seven days before the 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 or municipal bonds. The state school facilities bonds may be awarded only to the lowest interest cost bidder, but the right is reserved to reject all bids and to readvertise the state school facilities bonds for sale. For the purpose of bringing about successful sales of the bonds, the State Budget and Control Board may do all things ordinarily and customarily done in connection with the sale of state or municipal bonds. All expenses incident to the sale of the bonds must be paid from the proceeds of the sale of the bonds.
Section 59-146-140. It is lawful for all executors, administrators, guardians, and other fiduciaries to invest any monies in their hands in bonds issued pursuant to this chapter.
Section 59-146-150. In order to assist the school districts of this State in the construction and equipping of school facilities and the renovation and expansion of existing school facilities, the department may enter into grant agreements with school districts to provide, and pursuant to the agreement may provide to the school districts, state grants in order to finance school facilities under the provisions of this chapter. A grant to a school district for school facilities may not exceed seventy-five percent of the cost of such school facilities. The matching amount required of a school district to obtain a state grant must be on a sliding scale based on the index of tax paying ability, as defined in Section 59-20-20.
Section 59-146-160. The school district's share of the cost of school facilities may be met in whole or part with funds expended by a school district after July 1, 1996, for engineering fees, architectural fees, construction costs, or other directly related costs for the school facilities.
Section 59-146-170. School districts may perform acts, take actions, adopt proceedings, and make and carry out grant agreements with the department which are contemplated by this chapter. The grant agreements do not need to be identical among all school districts but may be structured as determined by the department according to the needs of the school districts and the department.
Section 59-146-180. The proceeds received from the issuance of school facilities bonds, after deducting the costs of issuance, must be allocated to the school districts in the same manner and for the same purposes as provided in Chapter 144 of Title 59 and used by the school districts of the state through grant agreements.
Section 59-146-190. The State Board shall adopt policies, standards, and guidelines for the use of funds disbursed pursuant to this chapter. The department's responsibilities shall include:
(1) providing staffing assistance to the State Board in the development of policies, guidelines, standards, and regulations implementing this subitem; and
(2) ensuring compliance with state standards and requirements, inspecting construction projects for school facilities, and approving completed construction pursuant to Chapter 23 of Title 59 for projects financed in whole or in part with funds allocated under this chapter. To assist with the inspection of construction projects, the State Board may designate selected local units of administration which have staff qualified to conduct the inspections to act on behalf of the department.
Section 59-146-200. To qualify for the funds under this chapter, each school district shall meet the requirements of this chapter and any guidelines promulgated hereunder."
SECTION 2. This act takes effect upon approval by the Governor.
This web page was last updated on Wednesday, December 9, 2009 at 9:15 A.M.