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Indicates Matter Stricken
Indicates New Matter
R79, H4149
STATUS INFORMATION
General Bill
Sponsors: Reps. Hodges and R.L. Brown
Document Path: l:\council\bills\agm\19057bh11.docx
Companion/Similar bill(s): 975
Introduced in the House on April 28, 2011
Introduced in the Senate on May 12, 2011
Passed by the General Assembly on May 27, 2011
Governor's Action: June 7, 2011, Vetoed
Legislative veto action(s): Veto sustained
Summary: Colleton County Board of Trustees
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
-------------------------------------------------------------------------------
4/28/2011 House Introduced, read first time, placed on calendar without
reference (House Journal-page 6)
4/29/2011 Scrivener's error corrected
5/3/2011 House Read second time (House Journal-page 16)
5/3/2011 House Roll call Yeas-1 Nays-0 (House Journal-page 16)
5/4/2011 House Debate adjourned until Wednesday, May 11, 2011
(House Journal-page 13)
5/11/2011 House Read third time and sent to Senate
(House Journal-page 11)
5/12/2011 Senate Introduced, read first time, placed on local &
uncontested calendar (Senate Journal-page 8)
5/26/2011 Senate Read second time (Senate Journal-page 51)
5/26/2011 Senate Roll call Ayes-2 Nays-1 (Senate Journal-page 51)
5/26/2011 Senate Unanimous consent for third reading on next legislative
day (Senate Journal-page 51)
5/27/2011 Senate Read third time and enrolled (Senate Journal-page 1)
6/1/2011 Ratified R 79
6/7/2011 Vetoed by Governor
6/14/2011 House Veto overridden by originating body Yeas-2 Nays-1
(House Journal-page 23)
1/12/2012 Senate Veto sustained Ayes-15 Nays-26 (Senate Journal-page 18)
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
4/28/2011
4/28/2011-A
4/29/2011
5/12/2011
NOTE: THIS COPY IS A TEMPORARY VERSION. THIS DOCUMENT WILL REMAIN IN THIS VERSION UNTIL PUBLISHED IN THE ADVANCE SHEETS TO THE ACTS AND JOINT RESOLUTIONS. WHEN THIS DOCUMENT IS PUBLISHED IN THE ADVANCE SHEET, THIS NOTE WILL BE REMOVED.
(R79, H4149)
AN ACT TO AUTHORIZE THE BOARD OF TRUSTEES OF THE SCHOOL DISTRICT OF COLLETON COUNTY TO ISSUE GENERAL OBLIGATION BONDS OF THE SCHOOL DISTRICT WITHIN ITS CONSTITUTIONAL DEBT LIMIT NOT TO EXCEED TWO MILLION FIVE HUNDRED THOUSAND DOLLARS IN ONE OR MORE SERIES, TO DEFRAY THE LOSS OF AMERICAN REINVESTMENT AND RECOVERY ACT FUNDS AND EDUCATION FINANCE ACT FUNDS TO THE SCHOOL DISTRICT, TO PRESCRIBE THE CONDITIONS UNDER WHICH THE BONDS MAY BE ISSUED AND THE PURPOSES FOR WHICH THE PROCEEDS MAY BE EXPENDED, AND TO MAKE PROVISION FOR THE PAYMENT OF THE BONDS.
Be it enacted by the General Assembly of the State of South Carolina:
General Assembly's findings
SECTION 1. (A) The General Assembly finds that the School District of Colleton County will experience a revenue shortfall upon the loss of American Reinvestment and Recovery Act funds and Education Finance Act funds due to a change in student count and future budget cuts which has resulted in a budgetary crisis. In responding to this financial crisis, the board of trustees of the school district is exploring all of its options, including, but not limited to, eliminating teaching and other staff positions, eliminating programs, and increasing class size.
(B) There presently exists no statutory authorization for the school district to incur bonded indebtedness to fund an operating deficit or to fund current operating expenditures. The General Assembly has determined to authorize the board of trustees of the school district to issue general obligation bonds of the school district to fund the deficit and operating expenditures to the extent permitted under the constitutional debt limit applicable to the school district under Section 15, Article X of the Constitution of this State.
(C) By using the proceeds of general obligation bonds as provided for herein, the school district could minimize the impact of eliminating teaching and other staff positions, eliminating programs, and increasing class size.
Colleton County School District's authority to issue general obligation bonds
SECTION 2. For the purpose of funding operating expenditures for Fiscal Years 2010-2011, 2011-2012, and 2012-2013 so as to mitigate a deficit for Fiscal Years 2010-2011, 2011-2012, and 2012-2013, the board may on or before December 31, 2013, issue, without an election, general obligation bonds of the school district, in an amount within the constitutional debt limitation applicable to the school district.
Bond maturity
SECTION 3. Bonds issued pursuant to this act mature on the dates the board prescribes.
Bond provisions
SECTION 4. Bonds issued pursuant to this act may be issued with a provision for their redemption prior to their maturity at par and accrued interest, plus a redemption premium as may be prescribed by the board, but no bond is redeemable before maturity, unless it contains a statement to that effect. In the proceedings authorizing the issuance of the bonds, provision must be made specifying the manner of call and the notice of call must be given.
Form of bonds
SECTION 5. Bonds issued pursuant to this act must be in the form of fully registered bonds payable upon conditions as the board may prescribe.
Bond denominations
SECTION 6. Bonds issued pursuant to this act must be in a denomination and must be made payable at a place, within or without the State, as the board prescribes.
Interest on bonds
SECTION 7. Bonds issued pursuant to this act bear interest at a rate or rates determined by the board.
Execution of bonds
SECTION 8. Bonds must be executed in a manner as the board prescribes by resolution.
Bond price and sale
SECTION 9. Bonds issued pursuant to this act must be sold at a price of not less than par and accrued interest, if any, to the date of their respective deliveries. Bonds authorized by this act may be sold at private or public sale upon the terms prescribed by the board.
Full faith and credit, district's taxing authority, sinking fund
SECTION 10. For the payment of principal of and interest on all bonds issued pursuant to this act, as they respectively mature, and for the creation of a sinking fund as may be necessary therefor, the full faith, credit, and taxing power of the school district must be irrevocably pledged, and there may be levied annually by the Auditor of Colleton County, and collected by the Treasurer of Colleton County, in the same manner as county taxes are levied and collected, a tax without limit on all taxable property in the school district sufficient to pay the principal of and interest on the bonds as they respectively mature and to create a sinking fund as may be necessary therefor.
Tax-exempt status of principal and interest on bonds
SECTION 11. The principal of and interest on bonds issued pursuant to this act have the tax-exempt status prescribed by Section 12-2-50.
Deposit and allocation of proceeds
SECTION 12. The proceeds derived from the sale of any bonds issued pursuant to this act must be paid to the Treasurer of Colleton County, to be deposited in a bond account fund for the school district and must be expended and made use of by the board as follows:
(a) any accrued interest must be applied to the payment of the first installment of interest to become due on the bonds;
(b) any premium may be applied to the payment of the first installment of principal on the bonds or be deposited in the bond fund account for the school district;
(c) the remaining proceeds of the bonds must be used to defray the cost of issuing bonds authorized by this act and to fund operating expenditures for Fiscal Years 2010-2011, 2011-2012, and 2012-2013 so as to mitigate a deficit for Fiscal Years 2010-2011, 2011-2012, and 2012-2013; and
(d) if any balance remains, it must be held by the Treasurer of Colleton County in a special fund to be used to effect the retirement of bonds.
Board of Trustees' powers
SECTION 13. The powers and authorizations conferred upon the board by this act are in addition to all other powers and authorizations previously vested in the board and may be availed of pursuant to action taken at any regular or special meeting of the board by a resolution to take effect immediately upon its adoption.
No other action required for issuance of bonds
SECTION 14. No elections prescribed as a condition precedent to the issuance of the bonds and no action other than that prescribed in this act need to be taken to effect the issuance of bonds nor are required to obtain the approval of any other public agency to any action taken pursuant to the authorizations by this act.
Bond anticipation notes authorized
SECTION 15. In anticipation of the issuance of the bonds authorized by this act, the school district may issue bond anticipation notes in accordance with state law provisions for the issuance of same.
Time effective
SECTION 16. This act takes effect upon approval by the Governor.
Ratified the 1st day of June, 2011.
__________________________________________
President of the Senate
___________________________________________
Speaker of the House of Representatives
Approved the ____________ day of _____________________2011.
___________________________________________
Governor
This web page was last updated on Tuesday, December 10, 2013 at 10:24 A.M.