S 1 Session 112 (1997-1998)
S 0001 Joint Resolution, By Passailaigue and D. Williams
Similar(S 2, S 1002, H 3192, H 3256)
A JOINT RESOLUTION 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 VII 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
THE THE GENERAL ASSEMBLY.
01/14/97 Senate Introduced and read first time SJ-85
01/14/97 Senate Referred to Committee on Finance SJ-85
A JOINT RESOLUTION
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?
Yes []
No []
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?
Yes []
No []
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.
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