Download This Bill in Microsoft Word format
A33, R34, H3234
STATUS INFORMATION
General Bill
Sponsors: Reps. Harrell, Wilkins, Harvin, Walker, J.E. Smith, Altman, Tripp, Bowers and Bailey
Document Path: l:\council\bills\bbm\10527mm05.doc
Introduced in the House on January 11, 2005
Introduced in the Senate on January 20, 2005
Last Amended on March 15, 2005
Passed by the General Assembly on March 29, 2005
Governor's Action: April 5, 2005, Signed
Summary: State Funding of Air carrier hub terminal facilities; Economic Development Bond Act
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
-------------------------------------------------------------------------------
1/11/2005 House Introduced and read first time HJ-138
1/11/2005 House Referred to Committee on Ways and Means HJ-139
1/12/2005 House Committee report: Favorable with amendment Ways and
Means HJ-7
1/13/2005 House Member(s) request name added as sponsor: Walker,
J.E.Smith, Altman
1/18/2005 House Member(s) request name added as sponsor: Bowers, Bailey
1/18/2005 House Amended HJ-38
1/18/2005 House Read second time HJ-42
1/19/2005 Scrivener's error corrected
1/19/2005 House Read third time and sent to Senate HJ-29
1/20/2005 Senate Introduced and read first time
1/20/2005 Senate Referred to Committee on Finance SJ-10
3/10/2005 Senate Committee report: Favorable with amendment Finance SJ-16
3/15/2005 Senate Amended SJ-31
3/15/2005 Senate Read second time SJ-31
3/16/2005 Senate Read third time and returned to House with amendments
SJ-25
3/29/2005 House Concurred in Senate amendment and enrolled HJ-24
3/31/2005 Ratified R 34
4/5/2005 Signed By Governor
4/7/2005 Copies available
4/7/2005 Effective date 04/05/05
4/13/2005 Act No. 33
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
1/11/2005
1/12/2005
1/18/2005
1/19/2005
3/10/2005
3/15/2005
(A33, R34, H3234)
AN ACT TO AMEND ARTICLE 7, CHAPTER 11 OF TITLE 55, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO STATE FUNDING OF AIR CARRIER HUB TERMINAL FACILITIES, SO AS TO INCLUDE A FACILITY THAT OPERATES TWO OR MORE SPECIAL, STATE-TAXED PLANES FOR THE TRANSPORT OF SPECIAL CARGO, TO INCLUDE AN ECONOMIC DEVELOPMENT PROJECT THAT IS FUNCTIONALLY RELATED TO AIR CARRIER HUB TERMINAL FACILITIES SATISFYING THE CRITERIA, TO PROVIDE FOR APPROVAL OF THE ISSUANCE OF BONDS FOR AN INFRASTRUCTURE IN CONNECTION WITH AN AIR CARRIER HUB FACILITY BY THE JOINT BOND REVIEW COMMITTEE AND THE BUDGET AND CONTROL BOARD AFTER THE REQUEST IS PRESENTED BY THE SECRETARY OF COMMERCE WITH CERTIFICATION OF CERTAIN INFORMATION, TO PLEDGE THE FULL FAITH, CREDIT, AND TAXING POWER OF THE STATE AND ENSURE SUFFICIENT ALLOCATION OF TAX REVENUES FOR PAYMENT ON THE BONDS, TO MAKE TECHNICAL CHANGES; AND TO AMEND SECTION 11-41-30, AS AMENDED, RELATING TO DEFINITIONS FOR PURPOSES OF THE ECONOMIC DEVELOPMENT BOND ACT, SO AS TO INCLUDE AS INFRASTRUCTURE BUILDINGS ON ALL QUALIFYING AIR CARRIER HUB TERMINAL FACILITIES.
Be it enacted by the General Assembly of the State of South Carolina:
State funding of air carrier hub terminal facilities
SECTION 1. Article 7, Chapter 11, Title 55 of the 1976 Code, as last amended by Act 227 of 2004, is further amended to read:
Section 55-11-500. As used in this article:
(a) An 'air carrier hub terminal facility' is an airport terminal facility from which an air carrier certified or licensed by the Federal Aviation Administration, within five years from the date of issuance of the obligations described in this article, operates either:
(1) at least twenty common carrier departing flights a day on which the general public may fly seven days a week, fifty-two weeks a year. No less than seventy percent of all seats on these aircraft arriving at or departing from an air carrier terminal facility must be on jet aircraft capable of carrying at least one hundred passengers on each flight;
(2) at least twenty common carrier departing flights a week on an annual basis for the purposes of transporting cargo and air freight; or
(3) irrespective of the number of flights, two or more specially equipped planes that are:
(i) used for the transportation of specialized cargo; and
(ii) subject to ad valorem property taxation or a fee in lieu of taxes in this State.
(b) An 'air carrier' is a corporation licensed by the Federal Aviation Administration with a certificate of public convenience and necessity or an operating certificate under other applicable federal law or pertinent regulations which operates aircraft to or from an air carrier hub terminal facility as defined in this section.
(c) 'Board' means the State Budget and Control Board.
(d) 'Bonds' mean general obligation bonds of this State.
(e) 'Secretary' means the Secretary of the Department of Commerce.
Section 55-11-505. The term 'air carrier hub terminal facility' includes an economic development project as defined in Section 11-41-30(2) that is functionally related to a facility satisfying one of the criteria in Section 55-11-500(a).
Section 55-11-510. (A) A special purpose district or political subdivision of the State may petition the State for assistance hereunder. Upon receipt of such a petition, the State, from the proceeds of the sale of bonds authorized by Section 55-11-520, is authorized to pay a portion or all of the costs of any insurance required to guarantee the payment of, or any credit enhancement facility utilized in connection with, obligations issued or to be issued by a special purpose district or other political subdivision of this State, for the purposes of acquiring land for and constructing and equipping air carrier hub terminal facilities; except that the amount of fees paid by the State to purchase this insurance or other credit enhancement facility must not exceed one and one-half percent of the principal plus all interest payable on obligations issued by a special purpose district or other political subdivision of this State. The cost of this insurance or other credit enhancement facility may be paid by the State directly to the provider of it, or by way of reimbursement to the special purpose district or political subdivision.
(B) In addition, after review by the Joint Bond Review Committee, the board may allocate bond proceeds for the purposes authorized in Section 55-11-520 to match on a dollar-for-dollar basis, local funds expended for the purposes authorized in Section 55-11-520 by any special purpose district or other political subdivision of this State. Local funds may include user fees and other monies made available by the special purpose district or political subdivision, but may not include federal grants made available to the special purpose district or other political subdivision for runway construction.
Section 55-11-520. (A) Pursuant to the provisions of subsection 6(c), Section 13, Article 10 of the Constitution of this State, in order to provide funds to pay a portion of the costs of (1) acquiring land, (2) constructing, enlarging, improving, extending, renovating, and equipping suitable air carrier hub terminal facilities to be located in this State, (3) purchasing equipment, ground support equipment, machinery, special tools, maintenance, boarding facilities, and any and all additional necessary real or personal property for the operation of air carrier hub terminal facilities, and (4) if petitioned by a special purpose district or other political subdivision of the State, to pay a portion or all of the costs described in Section 55-11-510, not exceeding fifty million dollars of general obligation bonds of this State, to be outstanding at any time may be issued in the manner provided in this article and by law.
(B) A request that bonds be issued pursuant to this article must be accompanied by a binding contract with either an air carrier or the principal user of the air carrier hub terminal facilities to be financed with the issuance of the obligations described in this article, committing the entity to use the air carrier hub terminal facility for a period of five years or the period of time needed to retire any indebtedness incurred to construct the air carrier hub terminal facility, whichever is less. Upon receipt of a certified copy of the executed contract, the secretary shall consider the entity's financial ability, willingness, and commitment to serve this State and other factors considered relevant by the secretary. If the secretary determines that it is in the best interest of this State for the State to provide or to assist in the providing of suitable air carrier hub terminal facilities, the secretary shall recommend that the board consider approving the issuance of bonds of this State for the purposes authorized in this article and shall forward his written approval and request to the Joint Bond Review Committee and the board. The approval and request must be accompanied by a certificate of the secretary establishing:
(1) the maximum principal amount of the bonds then requested to be authorized;
(2) a description of the infrastructure for which the bonds are to be issued, including a certification from the secretary that the facility is an air carrier hub terminal facility as defined in Section 55-11-500(a);
(3) a tentative time schedule for the time during which the sum requested is to be expended; and
(4) the then-outstanding principal amount of, and the debt service requirements for, all bonds previously issued pursuant to this section.
(C) Following the receipt of the approval and request described in subsection (B), and after approval by the Joint Bond Review Committee, the board may approve the issuance of bonds pursuant to this article. In connection with the approval, the board shall adopt a resolution setting the terms and conditions for the execution, sale, delivery, interest payments, maturities, and redemption of the bonds. For the payment of the principal and interest on all bonds issued and outstanding pursuant to this article, there is pledged the full faith, credit, and taxing power of the State of South Carolina, and in accordance with the provisions of paragraph (4) of Article X, Section 13 of the South Carolina Constitution, the General Assembly hereby allocates on an annual basis sufficient tax revenues to provide for the punctual payment of the principal and interest on the bonds authorized by this article."
Definitions
SECTION 2. Section 11-41-30(3)(j) of the 1976 Code, as added by Act 227 of 2004, is amended to read:
"(j) buildings associated with an economic development project as defined in Section 11-41-30(2)(a) that includes air carrier hub terminal facilities as defined in Section 55-11-500(a) of the 1976 Code."
Time effective
SECTION 3. This act takes effect upon approval by the Governor.
Ratified the 31st day of March, 2005.
Approved the 5th day of April, 2005.
This web page was last updated on Friday, December 4, 2009 at 3:39 P.M.