H 4378 Session 109 (1991-1992)
H 4378 General Bill, By J.J. Bailey and R.A. Barber
A Bill to amend Article 3, Chapter 11, Title 57, Code of Laws of South
Carolina, 1976, relating to State Highway Bonds so as to create a State
Highway Bond Fund Account and to provide for the repayment of bonds from
revenue derived from taxes levied by Sections 12-27-1210, 12-27-1220,
12-27-1230, and 12-27-1240; to repeal Sections 12-27-1260 through 12-27-1300
relating to the Strategic Highway Plan for Improving the Mobility and Safety
Program and to provide that the Code Commissioner change certain references in
the 1976 Code of Laws.
02/06/92 House Introduced and read first time HJ-37
02/06/92 House Referred to Committee on Ways and Means HJ-37
A BILL
TO AMEND ARTICLE 3, CHAPTER 11, TITLE 57, CODE OF LAWS
OF SOUTH CAROLINA, 1976, RELATING TO STATE HIGHWAY
BONDS SO AS TO CREATE A STATE HIGHWAY BOND FUND
ACCOUNT AND TO PROVIDE FOR THE REPAYMENT OF BONDS
FROM REVENUE DERIVED FROM TAXES LEVIED BY
SECTIONS 12-27-1210, 12-27-1220, 12-27-1230, AND 12-27-1240;
TO REPEAL SECTIONS 12-27-1260 THROUGH 12-27-1300
RELATING TO THE STRATEGIC HIGHWAY PLAN FOR
IMPROVING THE MOBILITY AND SAFETY PROGRAM AND TO
PROVIDE THAT THE CODE COMMISSIONER CHANGE CERTAIN
REFERENCES IN THE 1976 CODE OF LAWS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 3, Chapter 11, Title 57 of the 1976 Code is
amended to read:
"Section 57-11-210. The terms defined herein shall have
the meanings hereinafter set forth As used in this article:
(1) `Fiscal year' means the current fiscal year upon which
the affairs of the State of South Carolina are then being
conducted. As of the date of this enactment it is that which
The fiscal year begins on July first and ends on June thirtieth of
the succeeding calendar year.
(2) `Fuel oil tax' shall mean means the tax levied
pursuant to Chapter 29, Title 12.
(3) `Gasoline tax' shall mean means not less than
7.09 cents of the 8.09 cents per a gallon tax imposed
upon gasoline, its components thereof or substitutes
therefor, pursuant to the provisions of Chapter 27 of Title 12,
except Section 12-27-240. In the event that by legislation
enacted subsequent to July 1, 1977, the tax imposed by Section
12-27-230 shall be is increased to more than 8.09 cents
per a gallon, then in such event all of
such the increase shall be is embraced
within in the definition `gasoline tax' as used in this
section unless in the initial enactment subsequent to July 1, 1977, the
General Assembly shall prescribe prescribes some other
use for all or some portion of such the increase in
such the tax.
(4) `Highway commission' `Commission'
shall mean means that agency of government
now composed in accordance with the provisions of Articles 3
and 5 of Chapter 3, Title 57, and any other commission or agency of
government hereafter exercising the powers granted to the
State Highway and Public Transportation Commission
commission pursuant to the provisions of Chapter 3, Title 57.
(5) `Highway construction purposes' shall mean
means the construction of roads now or hereafter made
a part of the state highway system, or the reconstruction and
improvement of highways now or hereafter made a part of the
state highway system.
(6) `Motor vehicle license tax' shall mean means
the annual tax imposed upon the owner of every motor and other vehicle
pursuant to the provisions of Articles 5, 7, 21, and 25, Chapter
3, Title 56.
(7) `Road tax' shall mean means the road tax
imposed on motor carriers pursuant to Chapter 31, Title 12.
(8) `Sources of revenue' shall mean means the
gasoline tax, the fuel oil tax, the road tax, and the motor vehicle
license tax.
(9) `State board' shall mean means the State
Budget and Control Board of South Carolina.
(10) `State highway bonds' shall mean means all
general obligation bonds of the State of South Carolina designated as
state highway bonds, which are now outstanding and which may
hereafter be issued pursuant to the authorizations of this article.
Section 57-11-220. Whenever it shall become is
necessary that moneys be raised to raise monies for
highway construction purposes, or construction and equipment of
headquarters administrative facilities, including moneys
monies to be used to refund any outstanding state
highway bonds then outstanding, the Highway and Public
Transportation Commission commission may make
request to the state board for the issuance of to
issue state highway bonds pursuant to this article. Such
The request may be in the form of a resolution adopted at any
regular or special meeting of the Highway and Public Transportation
Commission commission. Such The
request shall set forth (on the face thereof or by schedules attached
thereto) state specifically:
(1) The the amount then required for highway
construction;
(2) A a tentative time schedule setting forth
the period of time during which the sum requested will be
expended.;
(3) A a debt service table showing the annual
principal and interest requirements for all state highway bonds then
outstanding.;
(4) The the amount of revenues derived from
each of the sources source of revenue during the
preceding fiscal year; and
(5) The amount as estimated by the Highway and Public
Transportation Commission which will be derived from the sources of
revenue during the then current and the next ensuing fiscal years during
which it is expected that the State highway bonds then sought to be
issued will be outstanding, but in estimating the amount to be derived
from the sources of revenue the Highway and Public Transportation
Commission shall not assume that the revenues for the then current
fiscal year or any future fiscal year will be more than five percent in
excess of the actual sums derived from the sources of revenue in the
preceding fiscal year, nor that in the sixth or subsequent years there will
be any increase over the estimated revenues for the fifth fiscal year
following the last completed fiscal year the fund balance of the
state highway bond fund and a schedule showing all encumbrances of
the fund and a schedule of payments to be made from the fund for all
debts then outstanding.
Section 57-11-230. Following the Upon receipt of
any a request pursuant to Section 57-11-220, the state
board shall review the same it and to the extent that
it shall approve such the board approves the request, it
shall be is empowered, by resolution duly adopted, to
effect the issuance of state highway bonds, or pending the
their issuance thereof, effect the issuance of bond
anticipation notes pursuant to Sections 11-17-10 to 11-17-110, as
amended.
Section 57-11-240. The outstanding aggregate principal
indebtedness on account of state highway bonds shall
must not exceed the limits established in Article X, Section
13 of the South Carolina Constitution one hundred fifty million
dollars, exclusive of a maximum of seven million dollars of bonds that
are hereby authorized for construction and equipment of headquarters
administrative facilities. The limitation herein imposed
in this section shall must not be deemed to
be considered an obligation of the contract made between
the State and the holders of bonds issued pursuant to this article, and the
limitation herein imposed by this section may be
enlarged or reduced from time to time by amendatory
acts amendatory hereof. Within such these
limitations state highway bonds may be issued from time to time
under the conditions prescribed by this article.
Section 57-11-250. For the payment of the principal of and interest
on all state highway bonds (whether now outstanding or hereafter
issued), there shall be pledged the full faith, credit, and
taxing power of the State of South Carolina is pledged and in
addition thereto, but subject to the limitations hereafter set forth,
all of the moneys monies derived from taxes levied
in Sections 12-27-1210 through 12-27-1240 the sources of
revenue. All moneys realized from the sources of revenue may be
forthwith used by the State Treasurer, without further action of
the Highway and Public Transportation Commission
commission, for the payment of the principal and interest of
state highway bonds, as the same they respectively
mature.
Section 57-11-260. All revenue received from the sources of
revenue during each fiscal year shall be discharged from the pledge
made by Section 57-11-250 when payment, or provision for payment,
has been made for all installments of principal or interest of all State
highway bonds maturing in such fiscal year, and thereafter such moneys
may be applied as hereinafter provided.
Section 57-11-270. The pledge of moneys monies
derived from the sources of revenue set aside in the state
highway bond fund shall must not preclude the
General Assembly from revising the quantum of any tax included in
the sources of revenue, credited to the state highway bond
fund except that, so long as any state highway bonds shall
be are outstanding, the gasoline tax shall be
must not be less than the greater of 5.67›
cents per a gallon, or the larger amount to
which it shall be is raised by legislation enacted
subsequent to after January 1, 1973, the fuel oil tax
shall be is not less than eight cents per
a gallon, the road tax not less than eight cents per
a gallon, and the schedule of motor vehicle license tax
shall must not be revised in such fashion as to
reduce the aggregate to be received therefrom.
Section 57-11-280. In order to effect the issuance of bonds pursuant
to this article, the state board may adopt a resolution providing for the
issuance of state highway bonds and may transmit a certified copy
thereof to the Governor and to the State Treasurer, with the
request that they issue and deliver state highway bonds in accordance
with the terms and conditions of such the resolution.
Such The resolution shall set forth state
the following:
(1) The amount, denomination, and numbering
of state highway bonds to be issued;
(2) The date as of which the same shall be issued;
(3) The maturity schedule for the retirement of
such the state highway bonds;
(4) The redemption provisions, if any, applicable to
such the bonds;
(5) The maximum rate or rates of interest the bonds shall
bear which shall must not be in excess of
exceed that permitted by Act 423 of 1969, as now
constituted or as hereafter amended;
(6) The purposes for which the bonds are to be
issued;
(7) The occasion on which bids shall be
are received for the sale of such the bonds;
(8) The form of advertisement of sale;
(9) The form of the bonds of the particular issue; and
(10) Such other matters as may be deemed
necessary in order to effect the sale, issuance, and
delivery thereof of the bonds.
Such The resolution shall further set
forth must state a finding on the part of by
the state board that the revenues credited to the state highway bond
fund actual receipts, for the preceding fiscal year, from
the sources of revenue equaled or exceeded one hundred fifty
percent of the maximum annual debt service requirements for all
state highway bonds then outstanding and all state highway bonds
thereafter to be outstanding and that the estimate made by the
Highway and Public Transportation Commission
commission and approved by the state board indicates that
collections from the sources of revenue in the then current and
in applicable future fiscal years, will not be less than one
hundred fifty percent of maximum annual interest and principal
requirements of all state highway bonds then outstanding and all state
highway bonds thereafter to be outstanding.
Section 57-11-290. The Governor and State Treasurer are
empowered to issue bonds in accordance with the request of the
resolution of the state board, If if, following a
presentation of a certified copy of the resolution of the state
board, it shall appear to the satisfaction of the Governor and
the State Treasurer that they are satisfied that the:
(a)(1) The amount of revenues derived from
the sources of revenue, during the preceding fiscal year, did in fact
exceed one hundred fifty percent of the maximum annual principal and
interest requirements of all state highway bonds then outstanding and all
state highway bonds thereafter to be outstanding; and
(b)(2) That estimated collections from the
sources of revenue in the then current and in applicable
future fiscal years, will be not less than one hundred fifty percent of the
maximum annual debt service requirements of all state highway bonds
then outstanding and all state highway bonds thereafter to be
outstanding, then the Governor and State Treasurer shall be
empowered to issue bonds in accordance with the request of the
resolution of the State Board.
Section 57-11-300. State highway bonds shall must
be issued in such a form and with such
provisions as to regarding time, place or places,
and medium of payment as may be determined by the state
board, subject to the provisions of this article.
Section 57-11-310. State highway bonds shall each
must be in the denomination of one thousand dollars or some
multiple thereof of one thousand dollars.
Section 57-11-320. State highway bonds issued pursuant to this
article may be in the form of negotiable coupon bonds, payable to
bearer, with the privilege to the holder of having them registered in his
name on the books of the State Treasurer as to principal only, or
as to both principal and interest, and such the
principal, or both principal and interest, as the case may be, thus
made payable to the registered holder, subject to such
the conditions as the state board may prescribe. State highway
bonds so registered as to principal in the name of the holder may
thereafter be registered as payable to bearer and made payable
accordingly.
State highway bonds also may also be issued as fully
registered bonds with both principal and interest thereof made
payable only to the registered holder. Such The fully
registered bonds shall be are subject to transfer under
such conditions as the state board shall prescribe
prescribes. Such The fully registered bonds
may, if the proceedings authorizing their issuance so provide,
may be convertible into negotiable coupon bonds with
the attributes as set forth in the first paragraph of this
section.
Section 57-11-330. State highway bonds shall bear interest,
payable on such occasions as shall be prescribed by the
state board, at a rate or rates not exceeding the maximum prescribed by
Act No. 423 of 1969, as such act is now constituted or as
such act may hereafter be constituted following amendment or revision
thereof amended. Each issue of state highway bonds
shall mature matures in annual series or installments,
the first of which annual series or installments shall matures
matures not more than two years after the date of the bonds and
the last of which shall mature matures not more than
twenty-five thirty years after such that
date. Such installments Installments or series may be
equal or unequal in amount. State highway bonds may, in the
discretion of the state board, may be made subject to
redemption at par and accrued interest, plus such a
redemption premium as it shall approve
approves and on such occasions as it may
prescribe. State highway bonds shall are not be
redeemable before maturity unless they contain a statement to that
effect.
Section 57-11-340. All state highway bonds issued under this article,
and the their interest thereon, shall be
are exempt from all state, county, municipal, school district,
and other taxes or assessments, direct or indirect, general or special,
imposed by the State of South Carolina, whether imposed for the
purpose of general revenue or otherwise, except inheritance,
estate, or transfer taxes.
Section 57-11-360. State highway bonds may be privately
placed privately as an investment of the State Retirement
System, if the terms and conditions of such the
disposition shall be are approved by resolution duly
adopted by the state board.
Otherwise, state highway bonds shall be are sold by
the Governor and the State Treasurer upon sealed proposals, after
publication of notice of such the sale one or more times
at least seven days before such the sale, in a newspaper
of general circulation in the State and also in a financial paper published
in New York City which regularly publishes notices of sale of state or
municipal bonds. The bonds shall must be awarded to
the highest bidder at a price of not less than par and accrued interest to
the date of delivery, but the right shall be is reserved to
reject all bids and to readvertise the bonds for sale and to waive
technicalities in the bidding.
For the purpose of bringing about successful sales of such
the bonds, the state board may do all things ordinarily and
customarily done in connection with the sale of state or municipal
bonds. All expenses incident to the sales of such the
bonds shall be are paid from the proceeds of the sale
of such bonds.
Section 57-11-370. It shall be is lawful for all
executors, administrators, guardians and other fiduciaries, and
all sinking fund commissions, including the State Budget and Control
Board of South Carolina in its capacities as trustee of the funds
of the South Carolina Retirement System and as manager and
administrator of other state sinking funds, to invest any moneys
monies in their hands in state highway bonds.
Section 57-11-380. The proceeds of the sale of state highway bonds
shall be are received by the State Treasurer and
applied by deposited to the credit of the state highway bond
fund account him to the purposes for which issued, except
that the accrued interest, if any, shall must be used to
discharge in part the first interest to become due on such
the bonds, and the premium, if any, shall must
be used to discharge the payment of the first installment of principal to
become due on such the bonds, but the.
The purchasers of such the bonds shall in no
wise be are not liable for the proper application of the
proceeds to the purposes for which they are intended.
Section 57-11-390. The proceeds derived from the sale of state
highway bonds shall must be applied only to the
purposes for which the bonds are issued.
Section 57-11-400. Within the highway fund, there is
established a separate and distinct state highway bond fund and a state
highway bond fund debt service account. The revenue derived from the
tax levied by Sections 12-27-1210, 12-27-1220, 12-27-1230, and
12-27-1240 must be remitted to the State Treasurer to be credited to the
state highway bond fund debt service account. The state highway bond
fund and the state highway bond fund debt service account must be
separate and distinct from the state general fund and highway fund. The
proceeds of all issuances of state highway bonds must be deposited to
and must remain part of the state highway bond fund. All earnings on
investments of any monies deposited to the credit of the state highway
bond fund and the state highway bond fund debt service account must
accrue to and be deposited in the respective account. Money from the
state highway bond fund may be expended only for the purposes
delineated in the resolution authorizing the issuance. The State
Highways and Public Transportation Commission
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 this article provisions of Article 3, Chapter 11,
Title 57 of the 1976 Code to be used exclusively for the Strategic
Highway Plan for Improving Mobility and Safety Program.
and These 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."
SECTION 2. Whenever the term Strategic Highway Plan for Improving
Mobility and Safety Program or Strategic Highway Plan for Improving
Mobility and Safety appears in the Code of Laws of South Carolina, it
means Highway Bond Fund. The Code Commissioner is directed to
change all such references at a time and in a manner as is timely and cost
effective.
SECTION 3. Sections 12-27-1260, 12-27-1270, 12-27-1280,
12-27-1290, and 12-27-1300 are repealed.
SECTION 4. Upon the effective date of this act, the commission must
review all pending construction projects under the Strategic Highway
Plan for Improving Safety and Mobility Program, including projects
which have been let and projects which are under construction. From
this review, the commission shall prepare a written report that details all
the projects including the approximate location of the project and the
estimated cost of completing the projects. The commission must issue
this written report to the Education and Public Works Committee of the
House of Representatives and the Transportation Committee of the
Senate. All funds not approved by the commission for the continuation
of construction projects are transferred to the highway bond fund as
established in Section 57-11-400 and all funds approved by the
commission for the continuation of construction projects are transferred
to the state highway fund to be used for the completion of these projects.
SECTION 5. This act takes effect upon approval by the Governor.
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