S 1252 Session 109 (1991-1992)
S 1252 General Bill, By Saleeby, A.E. Carmichael, F. Gilbert, D.L. Hinds,
Leatherman and McGill
A Bill to amend the Code of Laws of South Carolina, 1976, by adding Chapter 10
to Title 13, relating to planning, research, and development, so as to create
the Pee Dee Valley Authority, and to define its membership, powers, and
duties.
02/04/92 Senate Introduced and read first time SJ-7
02/04/92 Senate Referred to Committee on Judiciary SJ-7
02/27/92 Senate Recalled from Committee on Judiciary SJ-4
02/27/92 Senate Committed to Committee on Finance SJ-4
A BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976,
BY ADDING CHAPTER 10 TO TITLE 13, RELATING TO
PLANNING, RESEARCH, AND DEVELOPMENT, SO AS TO
CREATE THE PEE DEE VALLEY AUTHORITY, AND TO DEFINE
ITS MEMBERSHIP, POWERS, AND DUTIES.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Title 13 of the 1976 Code is amended by adding:
"CHAPTER 10
Pee Dee Valley Authority
Section 13-10-10. There is created the Pee Dee Valley Authority.
The governing body of the authority is a nine-member board whose
members shall serve for terms of four years and until their successors are
elected and qualify. The governing bodies of Chesterfield, Darlington,
Dillon, Florence, Georgetown, Horry, Marion, Marlboro, and
Williamsburg Counties shall each elect one member of the board from
their respective counties. Vacancies on the board must be filled for the
unexpired term in the manner of the original elections.
Section 13-10-20. The members of the board shall elect a
chairman, vice-chairman, and secretary. The board shall meet on the
call of the chairman. Five members of the board constitute a quorum for
the transaction of its business.
Section 13-10-30. The board has all the rights and powers of a
public body politic and corporate of this State, including without
limitation, all the rights and powers necessary or convenient to manage
the business and affairs of the authority and to take action as it may
consider advisable, necessary, or convenient in carrying out its powers,
including, but not limited to, the right and power to:
(a) have perpetual succession;
(b) sue and be sued;
(c) adopt, use, and alter a seal;
(d) make and amend bylaws for regulation of its affairs consistent
with the provisions of this chapter;
(e) acquire, purchase, hold, use, improve, lease, mortgage, pledge,
sell, transfer, and dispose of any property, real, personal, or mixed, or
any interest in any property, or revenues of the authority as security for
notes, bonds, evidences of indebtedness, or other obligations of the
authority. The authority has no power to pledge the credit and the taxing
power of the State or any of its political subdivisions;
(f) receive contributions, donations, and payments and to invest and
disperse the authority's funds;
(g) encourage, assist, promote, and cooperate in the development of
the Pee Dee River and the streams, canals, or watercourses now or at a
later time connected to or flowing into the river and to appear on behalf
of the State before any agency, department, or commission of this State,
of the United States, or of any other state in furtherance of the
development or of any matter connected with the development or related
to the development;
(h) develop and promote the development of the land for
recreational, transportation, residential, commercial, and industrial
purposes, both public and private, and to lease, sublease, or convey title
in fee simple to the real property subject to approval by the State Budget
and Control Board. The authority may retain, carry forward, and expend
any proceeds derived from the sale, lease, rental, or other use of real and
personal property under the authority's exclusive jurisdiction. The
proceeds may only be used in the development and the promotion of the
authority as provided by this chapter and for the purposes authorized by
this chapter;
(i) promulgate regulations affecting the use, management, and
control of real property acquired pursuant to item (g) of this section;
(j) borrow money, make and issue notes, bonds, and other evidences
of indebtedness, including refunding and advanced refunding notes and
bonds, of the authority; to secure the payment of the obligations or any
part by mortgage, lien, pledge, or deed of trust on any of its property,
contracts, franchises, or revenues, including the proceeds of any
refunding and advanced refunding notes, bonds, and other evidences of
indebtedness and the investments in which proceeds are invested and the
earnings on and income from the investments; to invest its monies,
including without limitation its revenues and proceeds of the notes,
bonds, or other evidences of indebtedness, in obligations of, or
obligations the principal of and interest on which are guaranteed by or
are fully secured by contracts with, the United States, in obligations of
any agency, instrumentality, or corporation which has been or may at a
later time be created by or pursuant to an act of the United States
Congress as an agency, instrumentality, or corporation, in direct and
general obligations of this State, and in certificates of deposit issued by
any bank, trust company, or national banking association; to make
agreements with the purchasers or holders of the notes, bonds, or other
evidences of indebtedness or with others in connection with any notes,
bonds, or other evidences of indebtedness, whether issued or to be
issued, as the authority considers advisable; and to provide for the
security for the notes, bonds, or other evidences of indebtedness and the
rights of the holders of the notes, bonds, or other evidences of
indebtedness. In the exercise of the powers granted in this section to
issue advanced refunding notes, bonds, or other evidences of
indebtedness the authority may, but is not required to, avail itself of or
comply with any of the provisions of Chapter 21 of Title 11. The
authority, when investing in certificates of deposit, shall invest in
certificates of deposit issued by institutions authorized to do business in
this State if the institutions offer terms which, in the opinion of the
authority, are equal to or better than those offered by other institutions;
(k) loan the proceeds of notes, bonds, or other evidences of
indebtedness to a person, corporation, or partnership to construct,
acquire, improve, or expand the projects described in Section 13-10-50; (l) make contracts, including service contracts with a person,
corporation, or partnership, to provide the services provided in Section
13-10-50, and to execute all instruments necessary or convenient for the
carrying out of business.
(m) For the acquiring of rights-of-way and property necessary for the
accomplishment of its duties and purposes, the authority may purchase
them by negotiation or may condemn them, and should it elect to
exercise the right of eminent domain, condemnation actions must be in
the name of the authority. The power of eminent domain applies to all
property of private persons or corporations and also to property already
devoted to public use in the counties from which board members must
be appointed.
Section 13-10-40. On consent of a majority of the members of the
House of Representatives representing the county and a majority of the
Senators representing the county, the authority may exercise any of the
powers and duties conveyed under the provisions of Section 13-10-30
in the entire area of any county or portion of any county which borders
the Pee Dee River or is within the Pee Dee River Basin. This consent
once given shall continue and may be removed only upon consent of a
majority of the members of the House of Representatives representing
the county, upon consent of a majority of the Senators representing the
county, and upon consent of a majority of the Pee Dee Valley Authority.
Section 13-10-50. The authority may issue revenue bonds for the
purpose of financing or refinancing, in whole or in part, the cost of the
following projects:
(a) purchasing real estate;
(b) constructing, reconstructing, or improving roads, bridges,
culverts, or other transportation facilities;
(c) constructing, reconstructing, improving, or equipping water
distribution systems, sewer treatment and distribution facilities,
buildings, or environmental utilities;
(d) constructing, reconstructing, and improving recreational facilities,
including but not limited to marinas, docks, swimming pools, parks,
dams, ponds, golf courses, racquetball and tennis facilities, and
equestrian and archery complexes.
In connection with the issuance of bonds, the authority may enter
into an agreement with a company to construct, operate, maintain, and
improve a project, and the authority may enter into a financing
agreement with the company prescribing the terms and conditions of the
payments to be made by the company to the authority, or its assignee, to
meet the payments that become due on bonds.
Section 13-10-60. Revenue bonds issued under this chapter for any
project described in Section 13-10-50 must be authorized by resolution
of the board of the authority. The resolution may contain provisions
which are a part of the contract between the authority and the several
holders of the bonds as to:
(a) the custody, security, use, expenditure, or application of the
proceeds of the bonds;
(b) the acquisition, construction, and completion of any project
for which the bonds are issued;
(c) the use, regulation, operation, maintenance, insurance, or
disposition of the project for which the bonds are issued, or any
restrictions on the exercise of the powers of the board to dispose of or
limit or regulate the use of the project;
(d) the payment of the principal of or interest on the bonds and
the sources and methods of payment, the rank or priority of any bonds
as to any lien or security, or the acceleration of the maturity of any
bonds;
(e) the use and disposition of the revenues derived or to be derived
from the operation of any project;
(f) the pledging, setting aside, depositing, or entrusting of the
revenues from which the bonds are made payable to secure the payment
of the principal of and interest on the bonds or the payment of expenses
of operation and maintenance of the project;
(g) the setting aside of revenues, reserves, or sinking funds and
the source, custody, security, regulation, and disposition of the revenues,
reserves, or sinking funds;
(h) the determination of the definition of revenues or of the
expenses of operation and maintenance of the project for which the
bonds are issued;
(i) the rentals, fees, or other charges derived from the use of the
project and the fixing, establishing, collection, and enforcement of the
rentals, fees, or other charges, the amount or amounts of revenues to be
produced by the rentals, fees, or other charges, and the disposition and
application of the amounts charged or collected;
(j) limitations on the issuance of additional bonds or any other
obligations or the incurrence of indebtedness payable from the same
revenues from which the bonds are payable;
(k) rules to insure the use of the project by the public or private
sector to the maximum extent to which the project is capable of serving
the public or private sector;
(l) any other matter or course of conduct which, by recital in the
resolution authorizing the bonds, is declared to further secure the
payment of the principal of or interest on the bonds.
Section 13-10-70. The bonds may be issued in one or more series,
may bear a date, may mature at a time not exceeding forty years from
their respective dates, may bear interest at the rate or rates a year as
approved by the State Budget and Control Board, may be payable in a
medium of payment and at a place, may be in a denomination, may be
in a form, either coupon or registered, may carry registration privileges,
may be subject to terms of redemption before maturity, with or without
premium, and may contain terms, convenants, and conditions as the
resolution authorizing the issuance of the bonds may provide. The
interest rate on bonds issued by the authority, the proceeds of which are
loaned to a company pursuant to a financing agreement to construct or
acquire a project authorized under Section 13-10-50, is not subject to
approval by the State Budget and Control Board. The bonds are fully
negotiable within the meaning of and for the purposes of the Uniform
Commercial Code.
Section 13-10-80. The principal of and interest on bonds issued
under this chapter are exempt from taxation, as provided in Section
12-2-50. All security agreements, indentures, and financing agreements
made pursuant to the provisions of this chapter are exempt from state
stamp and transfer taxes.
Section 13-10-90. No bonds may be issued pursuant to the
provisions of this chapter until the proposal of the board of the authority
to issue the bonds receives the approval of the State Budget and Control
Board. When the board proposes to issue bonds, it shall file a proposal
with the Budget and Control Board setting forth:
(a) a brief description of the project proposed to be undertaken and
its anticipated effect upon the economy of the area in which the project
is to be located;
(b) a reasonable estimate of the cost of the project;
(c) a general summary of the terms and conditions of any financing
agreement and security agreement.
Upon the filing of the proposal the Budget and Control Board shall,
as soon as practicable, make an independent investigation, as it
considers necessary or appropriate, and if it finds that the project is
intended to promote the purposes of this chapter, it may approve the
project. At any time following the approval, the board may proceed with
the acquisition and financing of the project. If the proceeds of the bonds
are to be made available to a company to construct a project, as provided
in Section 13-10-50, notice of the approval of any project by the Budget
and Control Board must be published at least once by the authority in a
newspaper having general circulation in the county where the project is
to be located.
An interested party may, within twenty days after the date of the
publication of notice, but not after the twenty days, challenge the
validity of the approval in the court of common pleas in the county
where the project is to be located.
Section 13-10-100. The bonds must be signed in the name of the
board of the authority by the manual or facsimile signature of the
chairman of the board and attested with the manual or facsimile
signature of the secretary of the board. Interest coupons attached to the
bonds must be signed by the facsimile signatures of the officers. The
bonds may be issued notwithstanding that any of the officials signing
them or whose facsimile signatures appear on the bonds or the coupons
have ceased to hold office at the time of issue or at the time of the
delivery of the bonds to the purchaser.
Section 13-10-110. The bonds must be sold at public or private sale
upon terms and conditions as the State Budget and Control Board
considers advisable.
Section 13-10-120. The board of the authority or its proper
administrative officers shall file with the State Treasurer within thirty
days from the date of their issuance a complete description of all
obligations entered into by the board with the rates of interest, maturity
dates, annual payments, and all pertinent data.
Section 13-10-130. All provisions of a resolution authorizing the
issuance of the bonds in accordance with this chapter and any covenants
and agreements constitute legally binding contracts between the
authority and the several holders of the bonds, regardless of the time of
issuance of the bonds, and are enforceable by any holder by mandamus
or other appropriate action, suit, or proceeding at law or in equity in any
court of competent jurisdiction.
Section 13-10-140. The bonds authorized by the chapter are limited
obligations of the authority. The principal and interest are payable
solely out of the revenues derived by the authority, including revenues
that may be derived by the authority pursuant to the financing agreement
with respect to the project which the bonds are issued to finance. The
bonds are an indebtedness payable solely from a revenue producing
source or from a special source which does not include revenues from
any tax or license. The bonds do not constitute nor give rise to a
pecuniary liability of the authority, the State, or any political subdivision
of the State, or to a charge against the general credit of the authority, the
State, or any political subdivision of the State or taxing powers of the
State, or any political subdivision of the State, and this fact must be
plainly stated on the face of each bond. The principal of and interest on
any bonds issued under this chapter must be secured by a pledge of the
revenues from which the bonds are payable, may be secured by a
security agreement, including a mortgage or any property given as
security pursuant to a financing agreement, and may be additionally
secured by a pledge of the financing agreement with respect to the
project. In making any agreements or provisions, the board of the
authority does not have the power to obligate itself with respect to any
project for which the proceeds of bonds issued under this chapter have
been loaned to a company, except with respect to the project and the
application of the revenues from the financing agreement, and does not
have the power to incur a pecuniary liability or a charge upon its general
credit.
The trustee under any security agreement or indenture, or any
depository specified by the security agreement or indenture, may be any
person or corporation as the authority designates, notwithstanding that
the trustee may be a nonresident of this State or incorporated under the
laws of the United States or the laws of other states.
Section 13-10-150. The net earnings of the authority, beyond that
necessary for retirement of its bonds or other obligations or to
implement the purposes of this chapter, may not inure to the benefit of
any person other than the authority. Upon termination of the existence
of the authority, title to all property, real and personal, owned by it,
including net earnings, vests in the State.
Section 13-10-160. The authority may retain any unexpended funds
at the close of the fiscal year of the State regardless of the source of the
funds and expend the funds in subsequent fiscal years.
Section 13-10-170. (A) Before undertaking a project authorized by
Section 13-10-50, the board of the authority shall make a determination:
(1) that the project will serve the purposes of this chapter;
(2) that the project is anticipated to benefit the general public
welfare of the locality by providing services, employment, recreation, or
other public benefits not otherwise provided locally;
(3) that the project will give rise to no pecuniary liability of
the authority, the State, or any political subdivision of the State, or
charge against the general credit of the authority, the State, or any
political subdivision of the State, or taxing power of the State or any
political subdivision of the State if the proceeds are loaned by the
authority to a company to construct a project;
(4) as to the amount of bonds required to finance the project;
(5) as to the amount necessary in each year to pay the
principal of and the interest on the bonds proposed to be issued to
finance the project; (6) as to the amount necessary to be paid
each year into any reserve funds which the board may consider advisable
to establish in connection with the retirement of the proposed bonds and
the maintenance of the project.
The determinations of the board must be set forth in the proceedings
under which the proposed bonds are to be issued.
(B) Every financing agreement between the authority and a company
with respect to a project shall contain an agreement obligating the
company to complete the project if the proceeds of the bonds prove
insufficient, and obligating the company to pay an amount under the
terms of a financing agreement, which, upon the basis of the
determinations made by the board, is sufficient:
(1) to pay the principal of and interest on the bonds issued to
finance the project;
(2) to build up and maintain any reserves considered by the board
to be advisable in connection with the project;
(3) to pay the costs of maintaining the project in good repair and
keeping it properly insured, unless the financing agreement obligates the
company to pay for the maintenance and insurance of the project.
Section 13-10-180. The proceeds from the sale of any bonds issued
under authority of this chapter may be applied only for the purpose for
which the bonds were issued, except any premium and accrued interest
received in any sale must be applied to the payment of the principal of
or the interest on the bonds sold, and if for any reason any portion of the
proceeds are not needed for the purpose for which the bonds were
issued, that portion of the proceeds must be applied to the payment of
the principal of or the interest on the bonds.
The cost of acquiring any project includes the following:
(1) the actual cost of the construction of any part of a project,
including architects', engineers', and attorneys' fees;
(2) the purchase price of any part of a project that may be
acquired by purchase;
(3) all expenses in connection with the authorization, sale, and
issuance of the bonds to finance the acquisition;
(4) the interest on the bonds for a reasonable time prior to
construction and for not exceeding one year after completion of the
construction."
SECTION 2. This act takes effect upon approval by the Governor.
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