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H*2869 Session 107 (1987-1988)
H*2869(Rat #0283, Act #0197 of 1987) General Bill, By Sheheen,
C.M. Dangerfield, D.O. Hawkins, R.N. McLellan, H.E. Pearce, L. Phillips,
J.I. Rogers, J.H. Toal and Wilkins
A Bill to amend Chapter 27 of Title 12, Code of Laws of South Carolina, 1976,
relating to gasoline taxes, by adding Article 13 so as to impose additional
taxes on the sale of gasoline, provide for an additional credit for certain
fuel purchases in the State, provide for the distribution and use of revenue
derived from the additional tax, provide that of the proceeds derived from the
additional taxes ten million dollars must be segregated in a separate account
for economic development and provide for expenditures from this account,
require the Department of Highways and Public Transportation to submit a
priority list of projects to the Select Oversight Committee, created under the
provisions of this Act, to be funded under the Strategic Highway Plan for
Improving Mobility and Safety Program, require the Department to review the
priority list in order to ascertain the possibility of constructing toll roads
and establish criteria for their construction, establish a committee to
monitor the expenditure of funds for the Strategic Highway Plan for Improving
Mobility and Safety Program and provide for its composition, to require the
Department to cooperate in providing information and assistance to implement
the provisions of Article 13 of Chapter 27 of Title 12; to provide for goals
or set-asides to insure that socially and economically disadvantaged
individuals and those controlled by disadvantaged females receive ten percent
of total state source highway funds expended in a fiscal year on construction
contracts when the project exceeds five hundred thousand dollars and to
establish guidelines and preferences in awarding these contracts, to provide
that the Department may waive bonding requirements under certain conditions;
to authorize the Department to sell up to one hundred twenty-five million
dollars in bonds to be retired over a twenty-year period from revenue
generated by the additional tax authorized in this Act; to amend Section
56-3-620, as amended, relating to the annual registration fee for private
passenger-carrying and property-carrying vehicles so as to delete the special
ten dollar registration fee for persons sixty-five years or older or
handicapped and on certain property-carrying vehicles and reduce the fee for
private passenger-carrying vehicles from seventeen dollars to twelve dollars;
to authorize the Select Oversight Committee to direct one quarter of one cent
from the additional tax levied in this Act to fund public transportation
activities in this State and to provide that this authorization is effective
only until June 30, 1988; and to repeal Item (5) of Section 1 of Act 82 of
1977 relating to legislative findings which indicate that the Department shall
finance public transportation responsibilities from sources other than
gasoline tax revenues and motor vehicle license fees.-amended title
04/09/87 House Introduced and read first time HJ-1743
04/09/87 House Referred to Committee on Ways and Means HJ-1744
04/23/87 House Committee report: Favorable with amendment Ways
and Means HJ-2163
04/29/87 House Objection by Rep. T Rogers, Kirsh, Limehouse, G.
Bailey, Davenport & Day HJ-2234
04/29/87 House Objection withdrawn by Rep. Davenport HJ-2241
04/29/87 House Objection by Rep. Baker HJ-2242
04/29/87 House Special order, set for 4/29/87 after
consideration of Senate ams(Under H 3075) HJ-2264
04/29/87 House Amended HJ-2270
04/29/87 House Read second time HJ-2348
04/30/87 House Special order, set for 3rd reading, following
Senate amendments (Under H 3087) HJ-2368
04/30/87 House Read third time and sent to Senate HJ-2382
05/05/87 Senate Introduced and read first time SJ-1664
05/05/87 Senate Referred to Committee on Finance SJ-1665
05/14/87 Senate Committee report: Favorable with amendment
Finance SJ-1849
05/27/87 Senate Special order SJ-2401
05/28/87 Senate Debate interrupted SJ-2454
05/29/87 Senate Debate interrupted SJ-2481
06/02/87 Senate Amended SJ-2549
06/02/87 Senate Debate interrupted SJ-2564
06/03/87 Senate Amended SJ-2733
06/03/87 Senate Read second time SJ-2740
06/03/87 Senate Special order SJ-2743
06/04/87 Senate Amended SJ-2791
06/04/87 Senate Read third time SJ-2796
06/04/87 Senate Returned SJ-2796
06/04/87 House Concurred in Senate amendment and enrolled HJ-3770
06/25/87 Ratified R 283
06/26/87 Signed By Governor
07/13/87 Effective date 07/01/87
07/13/87 Act No. 197
07/13/87 Copies available
(A197, R283, H2869)
AN ACT TO AMEND CHAPTER 27 OF TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976,
RELATING TO GASOLINE TAXES, BY ADDING ARTICLE 13 SO AS TO IMPOSE ADDITIONAL TAXES
ON THE SALE OF GASOLINE, PROVIDE FOR AN ADDITIONAL CREDIT FOR CERTAIN FUEL
PURCHASES IN THE STATE, PROVIDE FOR THE DISTRIBUTION AND USE OF REVENUE DERIVED
FROM THE ADDITIONAL TAX, PROVIDE THAT OF THE PROCEEDS DERIVED FROM THE ADDITIONAL
TAXES TEN MILLION DOLLARS MUST BE SEGREGATED IN A SEPARATE ACCOUNT FOR ECONOMIC
DEVELOPMENT AND PROVIDE FOR EXPENDITURES FROM THIS ACCOUNT, REQUIRE THE
DEPARTMENT OF HIGHWAYS AND PUBLIC TRANSPORTATION TO SUBMIT A PRIORITY LIST OF
PROJECTS TO THE SELECT OVERSIGHT COMMITTEE, CREATED UNDER THE PROVISIONS OF THIS
ACT, TO BE FUNDED UNDER THE STRATEGIC HIGHWAY PLAN FOR IMPROVING MOBILITY AND
SAFETY PROGRAM, REQUIRE THE DEPARTMENT TO REVIEW THE PRIORITY LIST IN ORDER TO
ASCERTAIN THE POSSIBILITY OF CONSTRUCTING TOLL ROADS AND ESTABLISH CRITERIA FOR
THEIR CONSTRUCTION, ESTABLISH A COMMITTEE TO MONITOR THE EXPENDITURE OF FUNDS FOR
THE STRATEGIC HIGHWAY PLAN FOR IMPROVING MOBILITY AND SAFETY PROGRAM AND PROVIDE
FOR ITS COMPOSITION, TO REQUIRE THE DEPARTMENT TO COOPERATE IN PROVIDING
INFORMATION AND ASSISTANCE TO IMPLEMENT THE PROVISIONS OF ARTICLE 13 OF CHAPTER
27 OF TITLE 12; TO PROVIDE FOR GOALS OR SET-ASIDES TO INSURE THAT SOCIALLY AND
ECONOMICALLY DISADVANTAGED INDIVIDUALS AND THOSE CONTROLLED BY DISADVANTAGED
FEMALES RECEIVE TEN PERCENT OF TOTAL STATE SOURCE HIGHWAY FUNDS EXPENDED IN A
FISCAL YEAR ON CONSTRUCTION CONTRACTS WHEN THE PROJECT EXCEEDS FIVE HUNDRED
THOUSAND DOLLARS AND TO ESTABLISH GUIDELINES AND PREFERENCES IN AWARDING THESE
CONTRACTS, TO PROVIDE THAT THE DEPARTMENT MAY WAIVE BONDING REQUIREMENTS UNDER
CERTAIN CONDITIONS; TO AUTHORIZE THE DEPARTMENT TO SELL UP TO ONE HUNDRED
TWENTY-FIVE MILLION DOLLARS IN BONDS TO BE RETIRED OVER A TWENTY-YEAR PERIOD FROM
REVENUE GENERATED BY THE ADDITIONAL TAX AUTHORIZED IN THIS ACT; TO AMEND SECTION
56-3-620, AS AMENDED, RELATING TO THE  ANNUAL REGISTRATION FEE FOR PRIVATE
PASSENGER-CARRYING AND PROPERTY-CARRYING VEHICLES SO AS TO DELETE THE SPECIAL TEN
DOLLAR REGISTRATION FEE FOR PERSONS SIXTY-FIVE YEARS OR OLDER OR HANDICAPPED AND
ON CERTAIN PROPERTY-CARRYING VEHICLES AND REDUCE THE FEE FOR PRIVATE
PASSENGER-CARRYING VEHICLES FROM SEVENTEEN DOLLARS TO TWELVE DOLLARS; TO
AUTHORIZE THE SELECT OVERSIGHT COMMITTEE TO DIRECT ONE QUARTER OF ONE CENT FROM
THE ADDITIONAL TAX LEVIED IN THIS ACT TO FUND PUBLIC TRANSPORTATION ACTIVITIES
IN THIS STATE AND TO PROVIDE THAT THIS AUTHORIZATION IS EFFECTIVE ONLY UNTIL JUNE
30, 1988; AND TO REPEAL ITEM (5) OF SECTION 1 OF ACT 82 OF 1977 RELATING TO
LEGISLATIVE FINDINGS WHICH INDICATE THAT THE DEPARTMENT SHALL FINANCE PUBLIC
TRANSPORTATION RESPONSIBILITIES FROM SOURCES OTHER THAN GASOLINE TAX REVENUES AND
MOTOR VEHICLE LICENSE FEES.
Be it enacted by the General Assembly of the State of South Carolina:
Additional taxes on gasoline
SECTION 1. Chapter 27 of Title 12 of the 1976 Code is amended by adding:
"Article 13
Additional Taxes on Gasoline Sales
Section 12-27-1210. In addition to the tax levied by Sections 12-27-230 and
12-27-240 every oil company subject to the tax imposed by those sections shall
pay to the State an additional tax in an amount equal to two cents a gallon on
all gasoline, combinations of gasolines, or substitutes for gasoline, sold or
consigned, used, shipped, or distributed for the purpose of sale within this
State. Effective January 1, 1989, the additional tax imposed by this section is
increased by one cent a gallon to a total of three cents a gallon. The proceeds
of the additional tax levied by this section must be used to fund the provisions
of the Strategic Highway Plan for Improving Mobility and Safety as administered
by the Department of Highways and Public Transportation. All provisions of this
chapter apply with equal force and effect to the additional tax on gasoline
levied by this section.
Section 12-27-1220. In addition to the tax imposed by Sections 12-27-510 and
12-27-520, every person, firm, corporation, municipality, or county subject to
tax imposed by those sections, or any subdivision of a municipality or county
shall pay an additional tax of two cents a gallon for every gallon of gasoline
or other like product of petroleum under whatever name designated on which a tax
is imposed by Section 12-27-510. Effective January 1, 1989, the additional tax
imposed by this section is increased by one cent a gallon to a total of three
cents a gallon. The proceeds of the additional tax levied by this section must
be used to fund the provisions of the Strategic Highway Plan for Improving
Mobility and Safety. All the provisions of this chapter apply with equal force
and effect to the additional tax on gasoline levied by this section.
Section 12-27-1230. In addition to the tax levied by Section 12-29-310, a tax
of two cents a gallon is imposed upon all fuel sold or delivered by any supplier
to any person not licensed as a supplier under the provisions of Chapter 29 of
this title. Effective January 1, 1989, the additional tax imposed by this
section is increased by one cent a gallon to a total of three cents a gallon.
The proceeds of the tax levied by this section must be used to fund the Strategic
Highway Plan for Improving Mobility and Safety Program as administered by the
department. All the provisions of Chapter 29 of this title apply with equal
force and effect to the additional tax levied by this section.
Section 12-27-1240. In addition to the road tax levied by Section 12-31-410,
an additional road tax equivalent to two cents a gallon is imposed upon the
amount of gasoline or other motor fuel used by every motor carrier in its
operations within this State. Effective January 1, 1989, the additional tax
imposed by this section is increased by one cent a gallon to a total of three
cents a gallon. The proceeds of this tax must be used to fund the Strategic
Highway Plan for Improving Mobility and Safety Program as administered by the
department. All the provisions of Chapter 31 of this title apply with equal
force and effect to the additional tax on gasoline levied by this section.
Section 12-27-1250. In addition to the credit provided for in Section
12-31-450 every motor carrier subject to the tax imposed by Section 12-27-1240
is entitled to a credit on the tax equivalent to two cents a gallon on all
gasoline or other motor fuel purchased by the carrier within this State for use
in operations either within or without this State and upon which gasoline or
other motor fuel the tax imposed by the laws of this State has been paid by such
carrier. Effective January 1, 1989, the additional credit authorized by this
section is increased by one cent to a total of three cents a gallon. This refund
may be made only if the carrier has fully complied with all regulations of the
commission and the provisions of Chapter 31 of this title.
Section 12-27-1260. The revenue derived from the tax levied by Sections
12-27-1210, 12-27-1220, 12-27-1230, and 12-27-1240 in this chapter must be
remitted to the State Treasurer to be credited to the fund established for the
Strategic Highway Plan for Improving Mobility and Safety. This fund must be
separate and distinct from the state general fund and highway fund. All
unappropriated money in this fund must remain part of the separate fund. All
earnings on investments from this fund must accrue to and be deposited in this
separate fund. Money from this fund may be spent only for the purpose of funding
the Strategic Highway Plan for Improving Mobility and Safety Program administered
by the department and funding the Economic Development Account as provided for
in Section 12-27-1270. No funds may be expended from this account for any
purpose other than for payment of engineering and planning, right-of-way
acquisition, and construction of projects on the list submitted as provided in
Section 12-27-1280 or those designated for economic development by the
Coordinating Council for Economic Development as provided in Section 12-27-1270.
Section 12-27-1270. The first ten million dollars generated from the tax as
levied in Sections 12-27-1210, 12-27-1220, 12-27-1230, and 12-27-1240 must be
segregated in a separate account for economic development. This account is to
be expended only upon the authorization of the South Carolina Coordinating
Council for Economic Development which shall establish project priorities. All
funds devoted to the economic development account are to remain in the fund if
not expended in the previous fiscal year. Annually, funds from the tax as levied
in Section 12-27-1210 must be deposited to replenish the Economic Development
Account. The total in the account at no time may exceed fifteen million dollars.
The council may spend no more than two hundred fifty thousand dollars, in the
first year only, for a long-term economic development plan which must be
submitted to the General Assembly on completion of the plan.
Section 12-27-1280. The department shall submit to the Select Oversight
Committee established in Section 12-27-1300 a priority list of the first fifty
projects to be funded under the Strategic Highway Plan for Improving Mobility and
Safety Program within six months after the effective date of this article. This
priority list must be revised and updated annually and submitted after that date
by October first of each year.
The method used to determine project priorities must accompany the priority
list. A minimum of forty percent of the funds remaining after the amount
specified in Section 12-27-1270 has been deducted, excluding toll roads, must be
allocated among projects selected by socioeconomic factors.
A minimum of forty percent of the funds remaining after the amount specified
in Section 12-27-1270 has been deducted, excluding toll roads, must be allocated
among projects selected by transportation factors.
The parameters used to determine the socioeconomic index are:
(1) per capita employment;
(2) farm acres per square mile;
(3) per capita income;
(4) population per square mile;
(5) existing interstate and primary road mileage per square mile.
The parameters used to determine the transportation index are:
(1) average daily traffic (ADT);
(2) roadway width;
(3) shoulder width;
(4) surface width;
(5) gradient;
(6) curvature;
(7) sight distance;
(8) truck traffic;
(9) economic benefit.
Section 12-27-1290. The department must review projects on the priority list,
as provided in Section 12-27-1280, for the possibility of constructing toll roads
to defray the cost of these projects pursuant to the authority granted the
department in Section 57-5-1330. No project may be funded by means of imposing
a toll on the users of the project unless in conjunction with federal funds
authorized for use on toll roads it is determined to be substantially feasible
by the department. The funds derived from tolls must be returned to the
Strategic Highway Plan for Improving Mobility and Safety Fund until the fund is
reimbursed. Upon reimbursement, all toll charges shall cease.
Section 12-27-1300. There is created a Select Oversight Committee to monitor
funds generated from the tax levied under the provisions of Sections 12-27-1210
through 12-27-1240 and oversee the establishment of priorities for the
implementation of the Strategic Highway Plan for Improving Mobility and Safety
Program. This committee consists of the following persons:
(1) the Governor's designee;
(2) the Chairman of the Education and Public Works Committee of the House of
Representatives;
(3) the Chairman of the Transportation Committee of the Senate;
(4) the Chairman of the Economic Coordinating Council and one member of the
Economic Coordinating Council designated by the Chairman of said council;
(5) one member appointed by the Governor at large from a rural county;
(6) the Chairman of the State Highway and Public Transportation Commission,
the Executive Director of the Department of Highways and Public Transportation,
and one other employee of that department as designated by its Executive
Director.
The chairman of the Select Oversight Committee shall be elected from the
membership of the committee.
The committee shall meet not less than once a quarter and shall submit annually
a report to the General Assembly on all funds monitored and priorities
established under the provisions of this section prior to March fourth.
Staff support shall come from existing staff assigned by the Speaker of the
House and the President Pro Tempore of the Senate.
Section 12-27-1310. The Department of Highways and Public Transportation
shall cooperate in providing information and assistance to implement the
provisions of this article.
Section 12-27-1320. (A) Of total state source highway funds expended in a
fiscal year on construction contracts, the Department of Highways and Public
Transportation, through the use of goals or set-asides, provided that goals be
used only on projects exceeding $500,000, shall insure not less than:
(1) five percent are expended with small business concerns owned and
controlled by socially and economically disadvantaged individuals (DBE'S) as
defined in Public Law 95-507; and
(2) five percent are expended with firms owned and controlled by
disadvantaged females (WBE'S).
The department shall certify eligible firms under this section and shall give
at least thirty days' notice to certified firms of contracts to be let. No firm
may be certified if it has previously been certified as a DBE or WBE for purposes
of federal or state source highway construction contracts set-asides for more
than five years.
(B) If no DBE or WBE firms certified pursuant to this section are available
to perform a contract, the department shall verify and record this fact, and the
verification must be preserved in department records. To the extent a goal or
set-aside for a particular category cannot be met, the unused portion of a goal
or set-aside must be added to the goal or set-aside of the other category if the
appropriate category firm is available.
(C) To facilitate implementation of this section, the department may waive or
guarantee bonding requirements for contracts let pursuant to this section with
estimated construction costs not exceeding two hundred fifty thousand dollars a
contract, and any contract set aside and awarded to a DBE or WBE contractor
without bonding shall provide expressly that termination of the contract for
default of the contractor renders the contractor ineligible for any further
department nonbonded set-aside contracts for a minimum period of two years from
the date of the notice.
(D) In awarding any contract pursuant to this section, preference must be
given to an otherwise eligible South Carolina contractor submitting a responsible
bid not exceeding an otherwise eligible out-of-state contractor's low bid by two
and one-half percent.
(E) A DBE or WBE acting as a prime contractor, in letting subcontracts, shall
comply with the applicable provisions of this section.
(F) The department shall make available technical and support services for
DBE'S and WBE'S the same percentages of state source highway construction funds
as are provided for the same purpose in federal highway construction funds, not
to exceed $100,000.
(G) Procurements and contracts made pursuant to Section 106(c) of the Federal
Surface Transportation Assistance Act of 1987 (STAA-1987) are subject to the
provisions of Sections 11-35-1210(2), 11-35-1220, and 11-35-1230.
(H) Any contractor awarded work for which the State guarantees bond shall pay
to the State an amount equal to the premium of the bond if the contractor had
purchased the bond from a surety company."
Bonds
SECTION 2. The Highway Commission is authorized to make a request to the State
Budget and Control Board for the authority to issue up to one hundred twenty-five
million dollars in additional bonds pursuant to the provisions of Article 3,
Chapter 11, Title 57 of the 1976 Code to be used exclusively for the State
Highway Plan for Improving Mobility and Safety Program. These bonds must be
retired over a twenty year period from revenue generated by the additional taxes
levied in Sections 12-27-1210 through 12-27-1240 of the 1976 Code.
Registration fee
SECTION 3. Section 56-3-620 of the 1976 Code, as last amended by Section 42A,
Part II, Act 540 of 1986, is further amended to read:
"Section 56-3-620. Beginning July 1, 1987, the annual registration fee
for every private passenger-carrying vehicle is twelve dollars."
Public transportation
SECTION 4. The Select Oversight Committee created under the provisions of
Section 12-27-1300, as added in Section 1 of this act, may direct one-quarter of
one cent from the funds generated from the tax levied under the provisions of
Sections 12-27-1210 through 12-27-1240, as added in Section 1 of this act, to
fund public transportation activities in this State. The provisions of this
section are effective only until June 30, 1988.
Repealed
SECTION 5. Item (5) of Section 1 of Act 82 of 1977 is repealed.
Time effective
SECTION 6. This act takes effect July 1, 1987. | 
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