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TO AMEND SECTION 12-28-2920, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CONSTRUCTION OF TOLL ROADS, SO AS TO PROVIDE THAT FUNDS DERIVED FROM TOLLS MUST BE USED FOR CERTAIN PURPOSES BY THE DEPARTMENT OF TRANSPORTATION IN ITS SOLE DISCRETION, TO PROVIDE THAT THESE PURPOSES INCLUDE THE COST OF ACQUISITION, IMPROVEMENT, AND REFINANCING OF A TOLL PROJECT, AND TO PROVIDE THAT UPON REPAYMENT OF CERTAIN COSTS WHICH INCLUDE THE REFINANCING AND SATISFACTION OF THE OBLIGATIONS OF THE DEPARTMENT OF TRANSPORTATION UNDER CERTAIN AUTHORIZED AGREEMENTS; AND TO AMEND SECTION 57-3-200, RELATING TO THE DEPARTMENT OF TRANSPORTATION'S AUTHORITY TO ENTER INTO AGREEMENTS TO FINANCE, CONSTRUCT, AND MAINTAIN HIGHWAYS, ROADS, STREETS, AND BRIDGES, SO AS TO PROVIDE THAT THE DEPARTMENT MAY ALSO ENTER INTO AGREEMENTS TO FINANCE AND REFINANCE THESE PROJECTS, TO DELETE THE PROVISION THAT RESTRICTS THE DEPARTMENT'S AND THE STATE'S POLITICAL SUBDIVISIONS' POWER TO ACQUIRE, CONSTRUCT, EQUIP, MAINTAIN, OR OPERATE CERTAIN PROJECTS, TO PROVIDE THAT THE DEPARTMENT SHALL ESTABLISH INITIAL TOLLS, BUT MAY DELEGATE ITS AUTHORITY TO REVISE TOLLS BASED UPON CERTAIN CRITERIA, TO PROVIDE THAT THE DEPARTMENT MAY ALTER, EXTEND, AMEND, MODIFY, TRANSFER OR ASSIGN ITS AGREEMENTS, TO PROVIDE THAT THE DEPARTMENT MUST USE A COMPETITIVE SELECTION PROCESS WHEN IT SOLICITS AND SELECTS A PRIVATE ENTITY TO ENTER INTO A PARTNERSHIP AGREEMENT, AND TO PROVIDE THAT THE DEPARTMENT IS EXEMPT FROM THE PROVISIONS CONTAINED IN THE STATE PROCUREMENT CODE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-28-2920 of the 1976 Code is amended to read:
"Section 12-28-2920. The department shall review projects for the possibility of constructing toll roads to defray the cost of these projects pursuant to the authority granted the department in Section 57-5-1330. No project may be funded by means of imposing a toll on the users of the project unless in conjunction with federal funds authorized for use on toll roads it is determined to be substantially feasible by the department. The funds derived from tolls must be:
(1) in the South Carolina Department of Transportation's sole discretion credited to the State Highway Fund or retained and applied by the entity or entities developing the toll road pursuant to an agreement authorized under Section 57-3-200 for the purpose of funding the cost of acquisition, construction, improvement, financing, refinancing, operation, and maintenance of the toll project; or
(2) used to service bonded indebtedness for highway transportation purposes incurred pursuant to Paragraph 9, Section 13, Article X of the South Carolina Constitution.
Upon repayment of the cost of construction, financing, refinancing, and satisfaction of the obligations of the department under any agreement authorized under Section 57-3-200, toll charges shall cease."
SECTION 2. Section 57-3-200 of the 1976 Code is amended to read:
"Section 57-3-200. From the funds appropriated to the Department of Transportation and from any other sources which may be available to the department, the Department of Transportation may expend such funds as it deems necessary to enter into partnership agreements with political subdivisions including authorized transportation authorities, and private entities to finance, by tolls and other financing methods, the cost of acquiring, constructing, equipping, maintaining, financing, refinancing, and operating highways, roads, streets and bridges in this State. The provisions of this Section must not be construed to confer upon the Department of Transportation or political subdivisions any power to finance by toll or other means the acquisition, construction, equipping, maintenance or operation which the Department of Transportation or other political subdivisions do not possess under other provisions of this Code. The department shall establish the initial toll to be charged to the traveling public for the use of the transportation facility. The department may delegate to the political subdivision, transportation authority, or private entity the power to periodically revise the tolls to take into account inflation and economic conditions. These revisions shall not exceed a cap established by the department in the partnership agreement, which may be expressed by the department as an absolute percentage increase over time or the increase or decrease in an objective index such as the Consumer Price Index or Gross Domestic Product, or a combination of indexes. The department may alter, extend, amend, modify, transfer or assign a partnership agreement. In soliciting and selecting a private entity with which to enter a partnership agreement under this section, the department shall utilize a competitive selection process. However, it is exempt from the provisions of the State Procurement Code."
SECTION 3. This act takes effect upon approval by the Governor.
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