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H. 4632
STATUS INFORMATION
General Bill
Sponsors: Reps. Vaughn, J. Brown, Davenport, Hodges, Hosey, Jefferson, Mitchell, G.R. Smith and W.D. Smith
Document Path: l:\council\bills\bbm\9192htc06.doc
Introduced in the House on February 9, 2006
Currently residing in the House Committee on Ways and Means
Summary: Transportation Revenue Bond Act
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
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2/9/2006 House Introduced and read first time HJ-6
2/9/2006 House Referred to Committee on Ways and Means HJ-7
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 4 TO CHAPTER 11, TITLE 57 ENACTING THE SOUTH CAROLINA TRANSPORTATION REVENUE BOND ACT SO AS TO PROVIDE REVENUES FOR TRANSPORTATION AND MASS TRANSIT FACILITIES BY ISSUING BONDS WHICH PLEDGE FOR THEIR REPAYMENT FEDERAL HIGHWAY REIMBURSEMENT FUNDS, AND TO PROVIDE FOR THE PROCEDURE BY WHICH THESE BONDS ARE ISSUED AND THE CALCULATION OF THE LIMIT APPLICABLE TO THESE BONDS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 11, Title 57 of the 1976 Code is amended by adding:
Section 57-11-410. (A) This article may be cited as the South Carolina Transportation Revenue Bond Act.
(B) This article provides an additional and an alternative method for the provision of and financing of transportation and mass transit facilities. In enacting this article, the General Assembly finds that the indebtedness authorized by this article is within the category allowed pursuant to Section 13(9), Article X of the Constitution of this State.
Section 57-11-415. As used in this article:
(1) 'Department' means the Department of Transportation.
(2) 'Bonds' or 'transportation revenue bonds' means revenue bonds authorized pursuant to the provisions of this article and Section 13(9), Article X of the Constitution of this State.
(3) 'State board' means the South Carolina State Budget and Control Board.
(4) 'Federal Highway Reimbursement Funds' means funds the state is entitled to receive from the United States Government, through the Federal Highway Administration, the Federal Transit Administration, or other federal agency empowered to provide transportation funding to the State, with respect to federally aided highway construction or transit projects, pursuant to Titles 23 and 49 of the United States Code, as these federal programs may be amended from time to time. This source of funding does not involve revenues from any tax within the meaning of Section 13(9), Article X of the Constitution of this State.
(5) 'Bond resolution' means the resolution of the state board making provision for the issuance of revenue bonds.
(6) 'Commission' means the commission of the department.
Section 57-11-420. Whenever it becomes necessary or desirable, the commission may request the state board to issue transportation revenue bonds. The request may be in the form of resolution adopted at any regular or special meeting of the commission. The request must set forth on its face or by an attached schedule:
(1) the amount required for planning, design, right-of-way acquisition, and construction of the transportation or transit facilities, or both transportation and transit facilities;
(2) a tentative time schedule setting forth the period of time for which the sum requested must be expended;
(3) a debt service table showing the estimated annual principal and interest requirements for the requested transportation revenue bonds;
(4) the obligation authority amount for Federal Highway Reimbursement Funds for the previous five federal fiscal years;
(5) the commission's recommendations relating to any covenant to be made in the bond resolution of the state board respecting the sequestration, pledge, and assignment of Federal Highway Reimbursement Funds securing the transportation revenue bonds.
Section 57-11-425. Following the receipt of a request pursuant to Section 57-11-420, the state board shall review the request and, if it approves the request, may issue the bonds by resolution or pending their issuance, issue bond anticipation notes pursuant to Chapter 17 of Title 11. Transportation revenue bonds may be issued from time to time pursuant to the conditions prescribed by this article.
Section 57-11-430. (A) The state board, by resolution, may provide for issuing transportation revenue bonds. In the resolution, the state board may prescribe:
(1) the amount, denomination, and numbering of transportation revenue bonds to be issued;
(2) the date as of which they must be issued;
(3) the maturity schedule for the retirement of the transportation revenue bonds;
(4) the form or forms of the bonds of the particular issue;
(5) the redemption provisions, if any, applicable to the bonds;
(6) the maximum rate or rates of interest the bonds must bear;
(7) the specific purposes for which the bonds must be issued;
(8) the purposes for which the proceeds of the bonds must be expended, and in the discretion of the state board, a portion of the proceeds may be used as capitalized interest during the period of construction and initial operation and for the creation of appropriate debt service reserves;
(9) the Federal Highway Reimbursement Funds pledged to secure payment of the transportation revenue bonds;
(10) the extent to which and the conditions under which additional parity bonds may be issued;
(11) the method by which the transportation revenue bonds must be sold and other matters considered necessary for the sale, issuance, and delivery of the transportation revenue bonds.
(B) Except as otherwise provided in this article, all expenses incurred in carrying out the provisions of this article are payable solely from funds provided pursuant to the authority of this article or from any funds provided by the federal government or from other special sources and no liability or obligation may be incurred by the department beyond the extent to which money has been provided pursuant to the provisions of this article.
Section 57-11-435. Transportation revenue bonds are nonrecourse bonds payable solely from and secured by a pledge of the Federal Highway Reimbursement Funds. For the payment of the principal of and interest on all transportation revenue bonds, there is irrevocably pledged the Federal Highway Reimbursement Funds to the extent and in the manner prescribed by the bond resolution.
Section 57-11-440. Transportation revenue bonds must each be in the denomination of one thousand dollars or integral multiples of one thousand dollars and must be substantially in the form provided in the bond resolution. Transportation revenue bonds must bear interest, at a variable or fixed rate, payable on occasions prescribed by the state board. Each issue of transportation revenue bonds must mature on the occasion prescribed by the state board, not exceeding thirty years from the date of issuance. Transportation revenue bonds, in the discretion of the state board, may be made subject to redemption at par and accrued interest, plus the redemption premium it approves and on occasions and under conditions it prescribes.
Section 57-11-445. Transportation revenue bonds may be sold at private or public sale under conditions prescribed by the state board. For the purpose of bringing about successful sales of the bonds, the state board may do all things ordinarily and customarily done in connection with the sale of state or municipal revenue bonds. All expenses incident to the sales of the bonds must be paid from the proceeds of the sale of the bonds. All transportation revenue bonds must be executed in the name of and on behalf of the State of South Carolina and must be signed by the Governor and the State Treasurer. The Great Seal of the State must be affixed to, impressed, or reproduced upon each of them and they must be attested by the Secretary of State. If approved by the state board, any one or two of the officers may, in lieu of manually signing, employ the use of the facsimile of their signatures in executing any transportation revenue bonds. The proceeds derived from the sale of transportation revenue bonds must be applied only to the purposes for which bonds are issued.
Section 57-11-450. Following presentation of a certified copy of the bond resolution, if it appears to the satisfaction of the Governor and the State Treasurer that the total amount of obligation authority for Federal Highway Reimbursement Funds granted to the State for the most recently completed federal fiscal year for which records are available is not less than the sum of 6.67 times the maximum annual principal and interest to be paid on the requested transportation revenue bonds authorized in the resolution plus the maximum annual principal and interest on any prior transportation revenue bonds issued pursuant to this article and payable from the Federal Highway Reimbursement Funds which will remain outstanding after the issuance and application of the proceeds of the requested transportation revenue bonds, then the Governor and State Treasurer may effect the delivery of bonds in accordance with the bond resolution.
Section 57-11-455. A transportation revenue bond issued pursuant to this article, and the interest on the bond, is exempt from all state, county, municipal, school district, and other taxes or assessment, 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 57-11-460. The proceeds of the sale of bonds must be received by the State Treasurer and applied by the State Treasurer to the purposes for which issued, except that the accrued interest, if any, may be used to discharge in part the first interest to become due on the bonds.
Section 57-11-465. It is lawful for all executors, administrators, guardians, and other fiduciaries and all sinking fund commissions, including the state board in its capacities as trustee of the funds of the South Carolina Retirement System and as manager and administrator of other state sinking funds, to invest any monies in their hands in transportation revenue bonds."
SECTION 2. This act takes effect upon approval by the Governor.
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