Bill 2675

                    Current Status

Bill Number:               2675
Ratification Number:       172
Act Number:                292
Introducing Body:          House
Subject:                        Richland-Lexington Airport
                           Commission to issue not exceeding twenty
                           million dollars of

(A292, R172, H2675)

AN ACT TO AUTHORIZE THE RICHLAND-LEXINGTON AIRPORT COMMISSION TO ISSUE NOT EXCEEDING TWENTY MILLION DOLLARS OF GENERAL OBLIGATION BONDS OF RICHLAND-LEXINGTON AIRPORT DISTRICT; TO PRESCRIBE THE CONDITIONS UNDER WHICH THEY MAY BE ISSUED; TO PRESCRIBE THE USE OF THEIR PROCEEDS; TO MAKE PROVISION FOR THE PAYMENT THEREOF; TO AUTHORIZE THE COMMISSION TO ESTABLISH, OPERATE, AND MAINTAIN FOREIGN TRADE ZONES WITHIN THE DISTRICT; AND TO AUTHORIZE THE COMMISSION TO ESTABLISH INLAND PORTS, AND TO AMEND ACT 681 OF 1962, AS AMENDED, RELATING TO THE RICHLAND-LEXINGTON AIRPORT COMMISSION, SO AS TO INCREASE THE MEMBERSHIP OF THE COMMISSION FROM EIGHT TO TEN MEMBERS.

Be it enacted by the General Assembly of the State of South Carolina:

Findings

SECTION 1. The General Assembly finds that Act 681 of 1962 created the Richland-Lexington Airport District (district) and committed to the commission therein designated as Richland-Lexington Airport Commission (commission) the function of establishing modern air transport facilities in the district. The General Assembly further finds that by Acts 681 of 1962, 641 of 1963, 782 of 1969, 1950 of 1972, and 427 of 1975, the commission was authorized to issue

general obligation bonds of the district and to use the funds for the construction, enlargement, improvement, and extension of suitable airport facilities within the district. The bonds were heretofore issued and their proceeds applied in the manner prescribed by these acts. It has now been determined that the facilities are inadequate and that new construction and land acquisition are needed and the existing facilities require enlarging, improving, and extending and existing revenue debt needs refinancing and that the sum of twenty million dollars is necessary therefor. The General Assembly also finds that the United States Customs Service has established a customs facility at the district's air transportation facilities to accommodate international traffic, and it also finds that to better serve the international needs of the district it is desirable that it have the authority to operate a foreign trade zone and an inland port.

The General Assembly, therefore, has determined to authorize the commission to raise the additional sum through the issuance and sale of not exceeding twenty million dollars of general obligation bonds of the district and to establish and operate a foreign trade zone and inland port.

Commission may issue bonds

SECTION 2. In order to provide funds for refinancing existing debt and the construction, enlargement, improvement, extension, renovation, or land acquisition for the construction of suitable airport facilities within the Richland-Lexington Airport District, the commission may issue not exceeding twenty million dollars of general obligation bonds of the district. All or any general obligation bonds issued pursuant to this act shall conform to the following specifications and are subject to the following procedures:

(a) They must be issued from time to time as several separate issues. Not more than ten million dollars of the bonds may be issued prior to July 1, 1987. They must be in such denominations, bear such date as the commission shall determine, and bonds of any issue shall mature in equal or unequal installments as may be determined by the commission. They must be made payable at such place as the commission may prescribe, and they shall bear interest at such rate (within the limitations of Section 11-9-350 of the 1976 Code), and are payable in such manner as the commission may determine. The bonds must be issued in fully registered form. Any bond issued pursuant to this act may be made subject to redemption prior to its stated maturity, on such terms and conditions, and with such redemption premium as the commission may prescribe.

(b) They must be sold at no less than par and accrued interest to the date of their respective deliveries at public sale. At least ten days prior to any sale, notice announcing the intention to receive bids for sale of such bonds must be published in a newspaper of general circulation in the State of South Carolina. In offering the bonds for sale, the commission shall reserve the right to reject any and all bids and, if all bids are rejected, the commission may negotiate privately for the disposition of the bonds.

(c) The bonds and all interest to become due thereon shall have the tax-exempt status prescribed by Section 12-1-60 of the 1976 Code.

(d) All general obligation bonds issued pursuant to this act must be signed by the chairman of the commission. The seal of the district must be affixed to, impressed, or reproduced upon each of the bonds and each of the bonds must be attested by the secretary of the commission. A facsimile of the signature of the chairman and a facsimile of the signature of the secretary of the commission, who shall be in office on the date of the adoption of the resolution of the commission authorizing the bonds, shall be sufficient for the purposes of this act.

(e) The delivery of any bonds so executed and authenticated are valid notwithstanding any changes in officers or seal occurring after the execution and authentication.

(f) There is irrevocably pledged for the payment of the bonds and interest as they mature the full faith, credit, and resources of the district. Until the principal and interest of all bonds issued under this act are fully paid, there is levied on all taxable property in the district an annual ad valorem tax sufficient to pay the principal and interest of all bonds issued under this act as the principal and interest become due. The tax must be annually levied by the Comptroller General of South Carolina and collected by the county treasurers of Richland and Lexington counties at the same time and in the same manner as county taxes are collected. Each of the county treasurers shall collect the tax in his county and pay it to the State Treasurer in the manner and within the time provided by law for the payment of state taxes to the State Treasurer who shall set them apart in a special fund and apply them solely to the payment of principal and interest of the bonds so long as any principal or interest remains outstanding. The tax to be levied under the provisions of this paragraph must not be substantially greater than the amount necessary to pay principal and interest of bonds maturing during the year in which monies produced by such levy will come into the hands of the State Treasurer, as reduced by the anticipated balance of funds actually in the hands of the State Treasurer, on the occasion when it becomes necessary to fix the tax levy, produced by: (1) additional collections from levies made in prior years; (2) net revenues derived by the commission from the operation of its facilities not required to meet costs of operating, maintaining, enlarging, and improving its facilities, or to discharge covenants securing bonds issued pursuant to paragraph 18 of Section 5 of Act 681 of 1962. When all principal and interest of outstanding bonds have been paid, the State Treasurer shall transfer any balance remaining in the special fund created under the terms of this paragraph to the general fund of the commission subject to its draft or order for any legitimate purpose incident to the operation, maintenance, or extension of the district's airport facilities.

(g) The proceeds derived from the sale of the bonds must be deposited with the State Treasurer in a separate and special fund and are subject to transfer, upon warrants or orders of the commission, to any bank or trust company having an office within the district to be expended by the commission for the purpose of meeting any costs incurred in the issuance of the bonds and to meet the cost of construction, land acquisition, maintaining, extending, enlarging, and improving airport facilities within the district and to no other purposes. Any premium received must be deposited with the State Treasurer and applied by him to the first installment of principal becoming due on the bonds and any accrued interest must be applied to the first installment of interest becoming due on the bonds. Pending withdrawals, the State Treasurer shall, upon the request of the commission, be empowered to invest and reinvest the proceeds derived from the sale of the bonds in direct general obligations of the United States of America or any agency thereof having a maturity of not more than one year from the date as of which the investment is made. Income derived from the investments is subject to the transfer, upon warrants or orders of the commission to any bank or trust company having an office within the district to be expended by the commission for the purposes of meeting the costs of issuing the bonds and any costs in excess of twenty million dollars incurred in the costs of the facilities. Neither the purchaser of the bonds nor any subsequent holders are responsible for the proper application of the proceeds of sales.

(h) The powers and authorizations conferred upon the commission are in addition to all other powers and authorizations previously vested in it and may be availed of at a special or regular meeting of the commission by resolution to become effective immediately upon its adoption at the meeting at which it is presented. No action other than that prescribed herein need be taken to effect the issuance of the bonds nor shall the commission be required to obtain the approval of any other public body or agency to any action taken pursuant to the authorization of this act.

Commission may make application to Foreign-Trade Zones Board

SECTION 3. The Richland-Lexington Airport Commission may make application to the Foreign-Trade Zones Board for the purpose of establishing, operating, and maintaining foreign-trade zones in the district, under the act of Congress known as the Foreign-Trade Zones Act which provides for the establishment, operation, and maintenance of foreign-trade zones in the United States.

The commission shall select and describe the location of the zones for which application may be made and shall make such regulations concerning the operation, maintenance, and policing of them as may be necessary to insure compliance with the Foreign-Trade Zones Act and for other appropriate purposes.

The commission has the authority to own, erect, maintain, and operate or lease any structures or buildings or enclosures as may be necessary or proper for establishing, operating, and maintaining such foreign trade zones within the district.

The authority granted to the commission confers the right and duty and power to do all things necessary and proper to achieve compliance with the Foreign-Trade Zones Act and to carry into effect the establishing, operating, and maintaining of foreign-trade zones within the district.

Commission may establish inland ports

SECTION 4. The commission may establish inland ports to provide services for the handling of general merchandise cargo. No inland port may be established unless it is designated as a United States Port of Entry by the United States Customs Service. The commission shall select and describe the location of any inland port and may own, erect, maintain, and operate or lease any structure, building, or enclosure as may be necessary for the establishment, operation, and maintenance of any port. The commission shall make such regulations and do such other things as may be necessary to carry out the purposes of this section.

Richland-Lexington Airport Commission, composition, terms

SECTION 5. Section 3 of Act 681 of 1962, as amended by Act 427 of 1971, is further amended to read:

"Section 3. The corporate powers and duties of the Richland-Lexington Airport District must be exercised and performed by a commission to be known as Richland-Lexington Airport Commission. The commission must be composed of ten members to be appointed by the Governor as follows: four members must be appointed upon the recommendation of a majority of the Lexington County Legislative Delegation, four members must be appointed upon the recommendation of a majority of the Richland County Legislative Delegation and two members must be appointed upon the recommendation of the city council of the city of Columbia. The members of the commission shall serve for terms of four years and until their successors are appointed and qualify. In the event of a vacancy for any reason, other than the expiration of a term, a successor must be appointed in the same manner of the original appointment for the balance of the unexpired term. Notwithstanding the expiration of the term of office of any member, he shall continue to serve until his successor has been recommended, appointed and qualified, but any delay in appointing a successor shall not extend the term of the successor. The members of the commission shall serve without compensation, except for their actual and necessary expenses while in performance of duties prescribed under this act."

Terms of present commission members

SECTION 6. The members of the Richland-Lexington Airport Commission serving on the effective date of this act shall continue to serve until their current terms of office expire; provided, that if any member of the commission is presently serving as a hold-over member because his successor has not been appointed, his term is deemed expired on the effective date of this act.

Time effective

SECTION 7. This act shall take effect upon approval by the Governor.