Current Status Introducing Body:House Bill Number:3934 Committee Number:30 Type of Legislation:GB Subject:General obligation bonds, issuance Residing Body:House Computer Document Number:JIC/5616.HC Introduced Date:Apr 18, 1991 Last History Body:House Last History Date:Apr 18, 1991 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide Type of Legislation:General Bill
Bill Body Date Action Description CMN
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3934 House Apr 18, 1991 Introduced, read first time, 30
referred to Committee
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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 6-1-80 SO AS TO ALLOW COUNTIES, MUNICIPALITIES, SCHOOL DISTRICTS, SPECIAL PURPOSE DISTRICTS, AND PUBLIC SERVICE DISTRICTS AUTHORIZED BY LAW TO ISSUE GENERAL OBLIGATION BONDS TO RECEIVE BIDS ON MORE THAN ONE ISSUE AT A TIME AND TO AUTHORIZE THEM TO REQUIRE BIDDERS TO SUBMIT PROPOSALS FOR ALL BONDS ISSUED AS THOUGH THE BONDS WERE OF A SINGLE ISSUE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The General Assembly finds:
(1) that by several statutes the governing bodies of counties, municipalities, school districts, and special purpose districts are authorized to issue general obligation bonds; (2) these statutes require the bonds to be sold at public sale and that they must be awarded to the bidder offering to take them at the lowest interest cost to the insurer, although Section 11-9-90 of the Code of Laws of South Carolina, 1976, authorizes the Governor and State Treasurer to offer, at the same time, different issues of state general obligation bonds under conditions requiring bidders to bid for all of the bonds offered, as though they constituted a single issue,and to award all of the bonds offered to the bidder naming the lowest interest rate on all issues offered, in lieu of awarding the bonds on the basis of bids received for each issue offered;
(3) no statute now exists authorizing the governing bodies of political subdivisions to offer at the same time different issues of general obligation bonds of their respective political subdivisions under similar conditions;
(4) varying market conditions may result in a better overall interest cost to the issuing political subdivision if its governing body is authorized to make multiple offerings as a single issue and to award the bonds on such a basis;
(5) that it is appropriate to authorize the governing body of a political subdivision to treat, as though they were a single issue, general obligation bonds of the political subdivision sold at the same time, notwithstanding that the general obligation bonds are issues under different statutes for different purposes, and the maturity schedules of the issues offered are dissimilar.
SECTION 2. Chapter 1, Title 6 of the 1976 Code is amended by adding:
"Section 6-1-80. When the governing body of a county, municipality, school district, special purpose district, or public service district is authorized by law to issue general obligation bonds, the governing body may receive bids on more than one issue at the same time and, in this event, may impose as a condition to bidding a requirement that all bidders shall submit proposals for all bonds then offered as though the bonds constituted only a single issue of bonds. The fact that more than one issue of bonds is offered and the maturity schedules of the bonds are dissimilar must be disregarded and the bonds must be awarded to the bidder whose bid prescribes the lowest interest cost, calculated on the basis that all bonds then issued constitute a single issue of bonds, rather than more than one issue of bonds."
SECTION 3. This act takes effect upon approval by the Governor.