Current Status Bill Number:1 Type of Legislation:Joint Resolution JR Introducing Body:Senate Introduced Date:19970114 Primary Sponsor:Passailaigue All Sponsors:Passailaigue and Williams Drafted Document Number:RES1122.ELP Residing Body:Senate Current Committee:Finance Committee 06 SF Subject:Lotteries, lottery bonds, authorized, highway projects; Gambling, bonds or notes, highways and streets
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
Senate 19970114 Introduced, read first time, 06 SF
referred to Committee
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PROPOSING AN AMENDMENT TO SECTION 13, ARTICLE X, OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO BONDED INDEBTEDNESS, SO AS TO AUTHORIZE THE ISSUANCE OF STATE LOTTERY BONDS TO BE USED FOR HIGHWAY PROJECTS AS PROVIDED FOR BY THE GENERAL ASSEMBLY; AND PROPOSING AN AMENDMENT TO SECTION 7, ARTICLE XVII OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO LOTTERIES, SO AS TO AUTHORIZE LOTTERIES CONDUCTED ONLY BY THE STATE AND TO PROVIDE THAT A PORTION OF THE REVENUE DERIVED FROM THE LOTTERIES BE USED AS THE BASIS FOR ISSUING BONDS FOR HIGHWAY PROJECTS AS PROVIDED FOR BY THE GENERAL ASSEMBLY.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. It is proposed that Section 13, Article X of the Constitution of this State be amended to read:
"Section 13. (1) Subject to the conditions and limitations in this section, the State shall have has power to incur indebtedness in the following categories and in no others: (a) general obligation debt; and (b) indebtedness payable only from a revenue-producing project or from a special source as provided in subsection (9) hereof.
(2) `General obligation debt' shall mean means any indebtedness of the State which shall be that is secured in whole or in part by a pledge of the full faith, credit, and taxing power of the State.
(3) General obligation debt may not be incurred except for a public purpose and all general obligation debt shall must mature not later than thirty years from the time such indebtedness shall be is incurred.
(4) In each act authorizing the incurring of general obligation debt the General Assembly shall allocate on an annual basis sufficient tax revenues to provide for the punctual payment of the principal of and interest on such general obligation debt. If at any time any payment due as the principal of or interest on any general obligation debt shall is not be paid as and when the same become due and payable, the State Comptroller General shall forthwith levy and the State Treasurer shall collect an ad valorem tax without limit as to rate or amount upon all taxable property in the State sufficient to meet the payment of the principal and interest of such general obligation debt then due.
(5) If general obligation debt be is authorized by (a) two-thirds of the members of each House of the General Assembly; or (b) by a majority vote of the qualified electors of the State voting in a referendum called by the General Assembly, there shall be are no conditions or restrictions limiting the incurring of such indebtedness except (i) those restrictions and limitations imposed in the authorization to incur such indebtedness, and (ii) the provisions of subsection (3) hereof.
(6) General obligation debt may be also incurred on such terms and conditions as the General Assembly may by law prescribe under the following limitations:
(a) General obligation bonds for highway purposes (highway bonds) may be issued if such bonds shall be are additionally secured by a pledge of the revenues derived from the `sources of revenue' as such term is defined in this subsection; provided, that the maximum annual debt service on all highway bonds so additionally secured which shall thereafter be that are outstanding shall may not exceed fifteen percent of the proceeds received from the sources of revenue for the fiscal year next preceding.
For the purpose of this subsection, the term `sources of revenue' shall mean so much of means the revenues as may be made applicable by the General Assembly for state highway purposes from any and all taxes or licenses imposed upon individuals or vehicles for the privilege of using the public highways of the State.
This subsection does not apply to bonds issued pursuant to subsection (6)(c).
(b) General obligation bonds for any state institution of higher learning designated by the General Assembly (state institution bonds) may be issued, if such bonds shall be are additionally secured by a pledge of the revenues derived from the tuition fees received by the particular institution of higher learning for which such state institution bonds are issued; provided, that the maximum annual debt service on all state institution bonds so additionally secured issued for such state institution thereafter to be outstanding shall may not exceed ninety percent of the sums received by such state institution of higher learning from tuition fees for the fiscal year next preceding.
(c) General obligation bonds that are additionally secured by a pledge of the revenues derived from the State Lottery, authorized in Section 7, Article XVII of this Constitution, may be issued for highway projects under terms and conditions that the General Assembly may prescribe by law. The maximum annual debt service on all outstanding lottery bonds so additionally secured may not exceed ninety percent of the net proceeds received from the lottery for the last fiscal year. These bonds are called `lottery bonds.'
(c) (d) General obligation bonds for any public purpose including those purposes set forth in (a) and , (b), and (c) may be issued; provided, that the maximum annual debt service on all general obligation bonds of the State thereafter to be outstanding (excluding highway bonds, state institution bonds, tax anticipation notes, lottery bonds, and bond anticipation notes) must not exceed five percent of the general revenues of the State for the fiscal year next preceding (excluding revenues which that are authorized to be pledged for state highway bonds, lottery bonds, and state institution bonds).
Upon implementation of the provisions of this item by law, the percentage rate of general revenues may be reduced to four or increased to seven percent by legislative enactment passed by a two-thirds vote of the total membership of the Senate and a two-thirds vote of the total membership of the House of Representatives.
During the regular session of the General Assembly in 1990 and during every fifth annual regular session thereafter, the General Assembly shall must conduct and complete a review of the law implementing this item. Unless during such session that review results in an amendment to or repeal of the law implementing this item, which must be accomplished by legislative enactment passed by a two-thirds vote of the total membership of the Senate and a two-thirds vote of the total membership of the House of Representatives.
(7) General obligation indebtedness may be incurred in anticipation of state tax collections (tax anticipation notes) under such terms and conditions as the General Assembly may prescribe by law. Such tax anticipation notes shall must be secured by a pledge of such taxes and by a pledge of the full faith, credit, and taxing power of the State. All tax anticipation notes shall must be expressed to mature not later than ninety days from the end of the fiscal year in which such notes are issued.
(8) General obligation notes may be issued in anticipation of the proceeds of general obligation bonds which may be lawfully issued (bond anticipation notes) under terms and conditions which the General Assembly may prescribe by law. Such bond anticipation notes shall be are secured by a pledge of the proceeds of the bonds in anticipation of which such bond anticipation notes are issued and by a pledge of the full faith, credit, and taxing power of the State.
Bond anticipation notes shall must be expressed to mature not later than one year following the date of issuance, but if the General Assembly shall so authorize authorizes them by law, bond anticipation notes may be refunded or renewed.
(9) The General Assembly may authorize the State or any of its agencies, authorities, or institutions to incur indebtedness for any public purpose payable solely from a revenue-producing project or from a special source, which source does not involve revenues from any tax but may include fees paid for the use of any toll bridge, toll road, or tunnel. Such indebtedness may be incurred upon such terms and conditions as the General Assembly may prescribe by law. All indebtedness incurred pursuant to the provisions of this subsection shall must contain a statement on the face thereof specifying the sources from which payment is to be made."
SECTION 2. The proposed amendment in SECTION 1 must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:
"Shall Section 13, Article X of the Constitution of this State be amended so as to authorize the issuance of State Lottery Bonds to be used for highway projects as provided for by the General Assembly?
Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word `Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word `No'."
SECTION 3. It is proposed that Section 7, Article XVII of the Constitution of this State be amended to read:
"Section 7. Except when conducted by the State, No no lottery shall ever be is allowed or may be advertised by newspapers, or otherwise, or its tickets be sold in this State. Only the State may conduct lotteries as provided for by the General Assembly.
The revenues actually collected during a fiscal year from an authorized state lottery must be paid into a State Lottery Fund which is separate and distinct from the general fund of the State with all deposits to the State Lottery Fund to be invested by the State Treasurer with interest earned remaining a part of the fund. No more than seven percent of the gross revenues each year may be used for operational expenses of all state lotteries, and of the net revenue remaining after payment of operational expenses, fifty percent must be expended in prizes. The remaining revenues, including interest, are used as the basis for issuing Lottery Bonds exclusively for highway projects, under terms and conditions that the General Assembly may prescribe by law.
The game of bingo, when conducted by charitable, religious, or fraternal organizations exempt from federal income taxation or when conducted at recognized annual State state and county fairs, shall is not be deemed considered a lottery prohibited by this section.
The General Assembly must provide by statute for the implementation of this section."
SECTION 4. The proposed amendment in SECTION 3 must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:
"Shall Section 7, Article XVII of the Constitution of this State be amended so as to authorize lotteries to be conducted only by the State with the revenues, less prizes, and administrative costs to serve as the basis for issuing bonds for highway projects as provided for by the General Assembly?
Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word `Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word `No'."
SECTION 5. This act takes effect upon approval by the Governor.