H*3554 Session 108 (1989-1990)
H*3554(Rat #0281, Act #0183 of 1989) General Bill, By Kirsh, Bailey,
D.M. Beasley, Boan, H. Brown, D.M. Bruce, H.H. Clyborne, J.D. Cole,
K.S. Corbett, S.R. Foster, H.M. Hallman, Haskins, Hayes, J.C. Hearn, T.E. Huff,
J.W. Johnson, Keegan, Littlejohn, J.G. McAbee, R.N. McLellan, J.H. Nesbitt,
Quinn, J. Rama, J.I. Rogers, Sharpe, P.E. Short, C.L. Sturkie, Vaughn,
C.C. Wells, Wilkes, Wilkins, S.S. Wofford and D.A. Wright
A Bill to amend Chapter 11, Title 55, Code of Laws of South Carolina, 1976,
relating to airports, by adding Article 7 so as to provide certain state
funding for air carrier hub terminal facilities to be constructed in this
State, and provide the procedures of and the use for this funding; and to
amend Section 12-37-220, as amended, relating to property tax exemptions, so
as to exempt all personal property of an air carrier operating an air carrier
hub terminal facility in this State for a period of ten years.-amended title
02/23/89 House Introduced and read first time HJ-7
02/23/89 House Referred to Committee on Ways and Means HJ-7
05/02/89 House Committee report: Favorable with amendment Ways
and Means HJ-27
05/11/89 House Amended HJ-43
05/11/89 House Read second time HJ-47
05/17/89 House Read third time and sent to Senate HJ-33
05/18/89 Senate Introduced and read first time SJ-7
05/18/89 Senate Referred to Committee on Finance SJ-7
05/30/89 Senate Recalled from Committee on Finance SJ-139
05/30/89 Senate Read second time SJ-139
05/30/89 Senate Ordered to third reading with notice of
amendments SJ-139
06/01/89 Senate Read third time and enrolled SJ-10
06/02/89 Ratified R 281
06/06/89 Signed By Governor
06/06/89 Effective date 06/06/89
06/06/89 Act No. 183
06/19/89 Copies available
(A183, R281, H3554)
AN ACT TO AMEND CHAPTER 11, TITLE 55, CODE OF LAWS OF SOUTH CAROLINA, 1976,
RELATING TO AIRPORTS, BY ADDING ARTICLE 7 SO AS TO PROVIDE CERTAIN STATE FUNDING
FOR AIR CARRIER HUB TERMINAL FACILITIES TO BE CONSTRUCTED IN THIS STATE, AND
PROVIDE THE PROCEDURES OF AND THE USE FOR THIS FUNDING; AND TO AMEND SECTION
12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO EXEMPT ALL
PERSONAL PROPERTY OF AN AIR CARRIER OPERATING AN AIR CARRIER HUB TERMINAL
FACILITY IN THIS STATE FOR A PERIOD OF TEN YEARS.
Be it enacted by the General Assembly of the State of South Carolina:
Findings
SECTION 1. The General Assembly finds that it would be beneficial to the
traveling public and desirable and in the best interest of the economy and
well-being of this State to provide incentives to air carriers to induce them to
establish air carrier hubs within this State and commits to the Governor the duty
and responsibility for attracting air carriers to establish air carrier hubs at
air carrier airports within this State. In order to assist in the promotion of
air carrier hubs, this act authorizes the issuance of general obligation bonds
of this State and the use of the proceeds of these bonds to pay a portion of the
costs of acquiring, constructing, improving, equipping, and establishing suitable
airport facilities to serve as the sites of air carrier hubs. The General
Assembly has determined that the authorizations for these purposes are in the
public interest, serve a public purpose, and promote the health, safety, welfare,
and conveniences of the people of this State.
The General Assembly has determined that present air carrier transportation
facilities within this State are inadequate to serve as air carrier hub terminal
facilities and that in order to accommodate and serve air carrier hubs (1) new
construction of air transportation facilities and acquisition of equipment is
needed, (2) present air carrier transportation facilities need enlarging,
improving, and extending, and (3) fifty million dollars in state matching funds
is needed to pay a portion of these costs.
Procedures for and use of state funding
SECTION 2. Chapter 11, Title 55 of the 1976 Code is amended by adding:
"Article 7
State Funding of Air Carrier Hub
Terminal Facilities
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 shall or will operate 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.
(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 in common carrier service and serves 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.
Section 55-11-510. The State, from the proceeds of 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.
Section 55-11-520. 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) 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 by a special purpose
district or other political subdivision of this State, not exceeding fifty
million dollars of general obligation bonds of this State may be issued in the
manner provided in this article and by law upon their authorization in a state
capital improvement bond bill as permitted by Section 2-7-105.
As a further condition to the issuance of these bonds after their authorization
in a state capital improvement bond bill, the special purpose district or other
political subdivision requesting bonds to be issued pursuant to this article must
have entered into a binding contract with an air carrier committing the air
carrier to use the air carrier hub terminal facility for a period of ten years
or the period of time needed to retire any indebtedness incurred by the special
purpose district or other political subdivision to construct the air carrier hub
terminal facility, whichever is less. Upon receipt of a certified copy of the
executed contract, the State Development Board shall consider an air carrier's
financial ability, willingness, and commitment to serve this State and other
factors considered relevant by the State Development Board. If the State
Development Board determines that it is in the best interest of this State for
the State to assist in the providing of suitable air carrier hub terminal
facilities, the State Development Board shall recommend to the Coordinating
Council for Economic Development that it request the Budget and Control Board to
consider recommending the issuance of bonds of this State for the purposes
authorized in this article. If the Coordinating Council for Economic Development
approves the recommendation of the State Development Board, it shall forward its
written approval and request to the Budget and Control Board.
After review by the Joint Bond Review Committee, the board may allocate bond
proceeds for the purposes authorized in this article to match on a dollar for
dollar basis, local funds expended 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."
Property tax exemption
SECTION 3. Section 12-37-220B of the 1976 Code is amended by adding a new item
to read:
"( ) All personal property of an air carrier including aircraft used in
operating an air carrier hub terminal facility in this State for a period of ten
consecutive years from the date of qualification, if its qualifications are
maintained. An air carrier hub terminal facility is defined in Section
55-11-500."
Time effective
SECTION 4. This act takes effect upon approval by the Governor. |