H*2139 Session 107 (1987-1988)
H*2139(Rat #0288, Act #0201 of 1987) General Bill, By P.B. Harris and
L. Phillips
Similar(S 194)
A Bill to amend Section 44-7-1430, Code of Laws of South Carolina, 1976,
relating to definitions under the Hospital Revenue Bond Act, so as to make
changes with respect to existing definitions, including the addition of new
definitions; to amend Section 44-7-1640, relating to the cumulative
construction of Article 11 of Chapter 7 of Title 44 regarding the powers of a
county and relating further to the adoption of a bond resolution, so as to
provide, among other things, that the authorization of an issue of bonds the
proceeds of which are loaned to more than one hospital agency or public agency
to construct or acquire hospital facilities, whether or not the hospital
facilities are located or will be located in the jurisdiction of one or more
counties, may be governed by Sections 44-7-1640 through 44-7-1720; to amend
Article 11 of Chapter 7 of Title 44, relating to the Hospital Revenue Bond
Act, by adding Sections 44-7-1650 through 44-7-1720 so as to provide, among
other things, that the authorizing issuer and the project county are
authorized and empowered to enter into an intergovernmental loan agreement to
facilitate the financing of hospital facilities, that public agencies and
hospital agencies are empowered and authorized to enter into subsidiary loan
agreements, and that neither the members of the county board of the
authorizing issuer or the project county nor any person executing any bonds,
the intergovernmental loan agreement, or the subsidiary loan agreement, are
liable personally on the bonds nor subject to any personal liability or
accountability by reason of the issuance of the bonds; and to amend Chapter 21
of Title 6, relating to the Revenue Bond Act for Utilities, by adding Section
6-21-45 so as to provide that, as used in Section 6-21-50, the phrase
"hospitals, nursing home and care facilities" has the same meaning as
"hospital facilities" as defined in Section 44-7-1430.-amended title
01/13/87 House Introduced and read first time HJ-69
01/13/87 House Referred to Committee on Ways and Means HJ-69
04/08/87 House Committee report: Favorable Ways and Means HJ-1650
04/15/87 House Read second time HJ-1879
04/16/87 House Debate adjourned HJ-1981
04/21/87 House Read third time and sent to Senate HJ-2034
04/22/87 Senate Introduced, read first time, placed on calendar
without reference SJ-1427
04/23/87 Senate Read second time SJ-1494
04/23/87 Senate Ordered to third reading with notice of
amendments SJ-1494
05/26/87 Senate Amended SJ-2325
05/26/87 Senate Read third time SJ-2335
05/26/87 Senate Returned SJ-2335
06/02/87 House Concurred in Senate amendment and enrolled HJ-3446
06/25/87 Ratified R 288
07/21/87 Signed By Governor
07/21/87 Effective date 07/21/87
07/21/87 Act No. 201
08/20/87 Copies available
(A201, R288, H2139)
AN ACT TO AMEND SECTION 44-7-1430, CODE OF LAWS OF SOUTH CAROLINA, 1976,
RELATING TO DEFINITIONS UNDER THE HOSPITAL REVENUE BOND ACT, SO AS TO MAKE
CHANGES WITH RESPECT TO EXISTING DEFINITIONS, INCLUDING THE ADDITION OF NEW
DEFINITIONS; TO AMEND SECTION 44-7-1640, RELATING TO THE CUMULATIVE CONSTRUCTION
OF ARTICLE 11 OF CHAPTER 7 OF TITLE 44 REGARDING THE POWERS OF A COUNTY AND
RELATING FURTHER TO THE ADOPTION OF A BOND RESOLUTION, SO AS TO PROVIDE, AMONG
OTHER THINGS, THAT THE AUTHORIZATION OF AN ISSUE OF BONDS THE PROCEEDS OF WHICH
ARE LOANED TO MORE THAN ONE HOSPITAL AGENCY OR PUBLIC AGENCY TO CONSTRUCT OR
ACQUIRE HOSPITAL FACILITIES, WHETHER OR NOT THE HOSPITAL FACILITIES ARE LOCATED
OR WILL BE LOCATED IN THE JURISDICTION OF ONE OR MORE COUNTIES, MAY BE GOVERNED
BY SECTIONS 44-7-1640 THROUGH 44-7-1720; TO AMEND ARTICLE 11 OF CHAPTER 7 OF
TITLE 44, RELATING TO THE HOSPITAL REVENUE BOND ACT, BY ADDING SECTIONS 44-7-1650
THROUGH 44-7-1720 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT THE AUTHORIZING
ISSUER AND THE PROJECT COUNTY ARE AUTHORIZED AND EMPOWERED TO ENTER INTO AN
INTERGOVERNMENTAL LOAN AGREEMENT TO FACILITATE THE FINANCING OF HOSPITAL
FACILITIES, THAT PUBLIC AGENCIES AND HOSPITAL AGENCIES ARE EMPOWERED AND
AUTHORIZED TO ENTER INTO SUBSIDIARY LOAN AGREEMENTS, AND THAT NEITHER THE MEMBERS
OF THE COUNTY BOARD OF THE AUTHORIZING ISSUER OR THE PROJECT COUNTY NOR ANY
PERSON EXECUTING ANY BONDS, THE INTERGOVERNMENTAL LOAN AGREEMENT, OR THE
SUBSIDIARY LOAN AGREEMENT, ARE LIABLE PERSONALLY ON THE BONDS NOR SUBJECT TO ANY
PERSONAL LIABILITY OR ACCOUNTABILITY BY REASON OF THE ISSUANCE OF THE BONDS; AND
TO AMEND CHAPTER 21 OF TITLE 6, RELATING TO THE REVENUE BOND ACT FOR UTILITIES,
BY ADDING SECTION 6-21-45 SO AS TO PROVIDE THAT, AS USED IN SECTION 6-21-50, THE
PHRASE "HOSPITALS, NURSING HOME AND CARE FACILITIES" HAS THE SAME
MEANING AS "HOSPITAL FACILITIES" AS DEFINED IN SECTION 44-7-1430.
Be it enacted by the General Assembly of the State of South Carolina:
Findings
SECTION 1. There exists in South Carolina a shortage of modern hospital
facilities and a shortage of funds at reasonable rates of interest to finance
hospital facilities. It is necessary and desirable to authorize the issuance of
bonds so as to decrease the cost of financing hospital facilities by aggregating
the capital requirements of hospital agencies and public agencies located in the
State.
Definitions changed
SECTION 2. Section 44-7-1430 of the 1976 Code is amended to read:
"Section 44-7-1430. In this article, the following terms have the
following meanings, unless the context otherwise requires:
(a) 'Authorizing issuer' means the county issuing bonds pursuant to Section
44-7-1640.
(b) 'Bonds' or 'revenue bonds' include notes, bonds, refunding bonds, and
other obligations authorized to be issued by this article.
(c) 'Cost' as applied to hospital facilities means the cost of construction
or acquisition; the cost of acquisition of property, including rights in land and
other property, both real and personal and improved and unimproved; the cost of
demolishing, removing, or relocating any buildings or structures on land so
acquired, including the cost of acquiring any land to which the buildings or
structures may be moved or relocated; the cost of all machinery, fixed and
movable equipment and furnishings; financing charges, interest prior to and
during construction and, if considered advisable by the State Board, for a period
of not exceeding two years after the estimated date of completion of
construction; the cost of engineering and architectural surveys, plans, and
specifications; the cost of consulting and legal services and other expenses
necessary or incidental to determining the feasibility or practicability of
constructing or acquiring the hospital facilities; the cost of administrative and
other expenses necessary or incidental to the construction or acquisition of the
hospital facilities, and the financing of the construction or acquisition of the
hospital facilities, including reasonable provision for working capital and a
reserve for debt service; the cost of issuing bonds under this article, including
legal fees and printing costs, and the cost of reimbursing any hospital agency
any amounts expended for items that would have been proper costs of the hospital
facilities within the meaning of this definition had the expenditure been made
directly by the county board.
'Cost' also includes monies necessary to refinance or to refund any
indebtedness of any 'hospital agency' or any 'public agency' incurred at any time
for the purpose of providing hospital facilities.
(d) 'County board' means each of the governing bodies of the counties of the
State, and in the event any hospital facilities are located in more than one
county, the term 'county board' relates to the governing bodies of the counties
in which the hospital facilities are located.
(e) 'Hospital agency' means any person, firm, corporation, association, or
partnership whether for profit or not for profit, existing or created at any time
and empowered to acquire, by lease or otherwise, operate, and maintain hospital
facilities.
(f) 'Hospital facilities' means any one or more buildings, structures,
additions, extensions, improvements, or other facilities, whether or not located
on the same or contiguous site or sites (and including existing facilities),
machinery, equipment, furnishings, or other real or personal property suitable
for health care or medical care; and includes, without limitation, general
hospitals, chronic diseases, maternity, mental, tuberculosis, and other
specialized hospitals; facilities for emergency care, intensive care, and
self-care; clinics and outpatient facilities; clinical, pathological, and other
laboratories, hospital research facilities; extended care facilities; skilled
nursing home facilities; nursing home facilities; retirement home facilities;
laundries; residences and training facilities for nurses, interns, physicians,
and other staff members; food preparation and food service facilities;
administration buildings, central service, and other administrative facilities;
communication, computer, and other electronic facilities; fire-fighting
facilities; pharmaceutical and recreational facilities; storage space, X-ray,
laser, radiotherapy, and other apparatus and equipment; dispensaries; utilities;
vehicular parking lots and garages; office facilities for hospital staff members
and physicians; and including, without limiting any of the foregoing, any other
health and hospital facilities customarily under the jurisdiction of or provided
by hospitals, or any combination of the foregoing, with all necessary,
convenient, or related interests in land, machinery, apparatus, appliances,
equipment, furnishings, appurtenances, site preparation, landscaping, and
physical amenities.
(g) 'Intergovernmental loan agreement' means a loan agreement made by and
between the authorizing issuer, as one party, and the project county, as the
other party, to which bond proceeds are loaned to finance hospital facilities
located in the jurisdiction of the project county and whereby the project county
agrees to pay to the authorizing issuer or any assignee the sums required to meet
the payment of the principal, interest, and redemption premium, if any, on any
bonds, the proceeds of which will be used to finance hospital facilities in the
jurisdiction of the project county.
(h) 'Loan agreement' means any agreement made by and between any county board
as one party and any hospital agency or public agency as the other party or
parties by which the hospital agency or public agency agrees to pay to a county
or to any assignee of the county the sums required to meet the payment of the
principal, interest, and redemption premium, if any, on any bonds. If the county
is also the public agency and the hospital facilities are under the jurisdiction
of the county board, the loan agreement may be in the form of a resolution
adopted by the county board.
(i) 'Project county' means the county, other than the authorizing issuer, to
which proceeds of the bonds are loaned to finance hospital facilities.
(j) 'Public agency' means any county, city, town, or hospital district of the
State existing or created at any time pursuant to the laws of the State
authorized to acquire, by lease or otherwise, operate, and maintain hospital
facilities.
(k) 'State Board' means the State Budget and Control Board of South Carolina.
(l) 'Trust indenture' means any agreement pursuant to which any bonds are
issued. A trust indenture may also create a mortgage lien or security interest,
or a mortgage lien and security interest, to secure bonds issued under the
indenture.
(m) 'Subsidiary loan agreement' means a loan agreement between a county and
any hospital agency or public agency and includes an agreement between the
authorizing issuer and a hospital agency or public agency with respect to
hospital facilities located in the jurisdiction of the authorizing issuer."
Authorization of issue of bonds
SECTION 3. Section 44-7-1640 of the 1976 Code is amended to read:
"Section 44-7-1640. (A) Notwithstanding any other provision of this
article, the authorization of an issue of bonds the proceeds of which are loaned
to more than one hospital agency or public agency to construct or acquire
hospital facilities, whether or not the hospital facilities are located or will
be located in the jurisdiction of one or more counties, may be governed by
Sections 44-7-1640 through 44-7-1720 of this article. The governing body of the
authorizing issuer may authorize an issue of bonds for hospital facilities
located outside the jurisdiction of the authorizing issuer, provided, hospital
facilities will be simultaneously financed under this article in the jurisdiction
of the authorizing issuer pursuant to a subsidiary loan agreement. However, no
proceeds may be used to acquire or construct hospital facilities in any project
county unless an intergovernmental loan agreement is executed between the
authorizing issuer and the project county and unless the county board of the
project county consents to the intergovernmental loan agreement.
(B) All bonds issued by an authorizing issuer under authority of this article
are limited obligations of the authorizing issuer and the project county. The
principal, interest, and redemption premiums, if any, on the bonds are payable
solely out of the monies to be derived by the authorizing issuer pursuant to one
or more intergovernmental loan agreements between the authorizing issuer and the
project county or subsidiary loan agreements between the authorizing issuer and
a hospital agency or public agency relating to the hospital facilities in the
jurisdiction of the authorizing issuer which the bonds are issued to finance or
refinance or a subsidiary loan agreement between the project county and the
hospital agency or public agency within the jurisdiction of the project county.
Bonds and interest coupons issued under authority of this article do not
constitute an indebtedness of the authorizing issuer or project county within the
meaning of any state constitutional provision or statutory limitation and do not
constitute nor give rise to a pecuniary liability of the authorizing issuer or
project county or a charge against their general credit or taxing powers, and
this fact must be plainly stated on the face of each bond."
Intergovernmental loan agreement; subsidiary loan agreements; etc.
SECTION 4. Article 11 of Chapter 7 of Title 44 is amended by adding:
"Section 44-7-1650. The authorizing issuer and the project county are
authorized and empowered to enter into an intergovernmental loan agreement to
facilitate the financing of hospital facilities. An intergovernmental loan
agreement obligates the project county to make payments to or on account of the
authorizing issuer from payments received under one or more subsidiary loan
agreements. The intergovernmental loan agreement is a limited obligation of the
project county payable solely from the revenues derived under one or more
subsidiary loan agreements. The intergovernmental loan agreement does not
constitute an indebtedness of the project county within the meaning of any state
constitutional provision or statutory limitation and does not constitute nor give
rise to a pecuniary liability of the project county or a charge against its
general credit or taxing powers, and this fact must be plainly stated in the
intergovernmental loan agreement.
Section 44-7-1660. (A) Public agencies and hospital agencies are empowered and
authorized to enter into subsidiary loan agreements. Prior to entering into a
subsidiary loan agreement pursuant to this article, the county board of the
project county or of the authorizing issuer, if the subsidiary loan agreement is
between the authorizing issuer and a public agency or hospital agency located in
its jurisdiction, shall comply with the following criteria and requirements with
respect to hospital facilities located in its jurisdiction; however, the
determination of the county board as to its compliance with the criteria and
requirements is final and conclusive, subject only to challenge as provided in
Section 44-7-1690:
(1) There is a need for the hospital facilities in the area in which the
hospital facilities are to be located.
(2) No hospital facilities may be provided for any hospital agency or public
agency which is not financially responsible and capable of fulfilling its
obligations under the subsidiary loan agreement, including the obligations to
make the payments required under the agreement, to operate, repair, and maintain
at its own
expense the hospital facilities, and to discharge other responsibilities as may
be imposed under the subsidiary loan agreement.
(3) Adequate provision must be made for the payment of the principal of and
the interest on the bonds and any necessary reserves for the payment and for the
operation, repair, and maintenance of the hospital facilities at the expense of
the hospital agency or public agency.
(4) The public facilities, including utilities, and public services
necessary for the hospital facilities must be made available.
(5) The county board has given due consideration, upon the advice of
counsel, to the impact, if any, of the bonds on the county's present or future
financings.
(B) The county board may not enter into a subsidiary loan agreement to finance
the acquisition, construction, expansion, equipping, or financing of any hospital
facilities until approval of the agreement by the South Carolina Department of
Health and Environmental Control as may be required under Article 3 of Chapter
7 of Title 44.
Section 44-7-1670. For the purposes of this article, public agencies may enter
into one or more subsidiary loan agreements with a county board to facilitate the
financing, acquiring, constructing, improving, enlarging, expanding, equipping,
providing, operating, and maintaining of hospital facilities located within the
jurisdiction of the county board and pursuant to the subsidiary loan agreement
may operate, repair, and maintain hospital facilities and pay the costs of the
operation, repair, and maintenance from any funds available for the purpose and
the payments required for the operation, repair, and maintenance. However, in
making the agreement no county may obligate itself except with respect to any
security pledged, mortgaged, or otherwise made available for the securing of the
bonds and the application of the revenues from the subsidiary loan agreement nor
incur a pecuniary liability or a charge against its general credit or its taxing
powers.
Section 44-7-1680. The subsidiary loan agreement must contain the covenants
stated in Section 44-7-1520 and may contain other terms and conditions permitted
under this article for loan agreements.
Section 44-7-1690. Notice of the approval by a county board of any
intergovernmental loan agreement or subsidiary loan agreement must be published
at least once in a newspaper having general circulation in each county by the
respective county board, prior to the execution of such agreements. With respect
to a subsidiary loan agreement, the notice must set forth the action taken by the
county board and the South Carolina Department of Health and Environmental
Control pursuant to Section 44-7-1660. The intergovernmental loan agreement and
subsidiary loan agreement must be filed with the clerk of court of the
authorizing issuer and the clerk of court of the project county prior to the
issuance of the bonds authorized thereby.
Any interested party may, within twenty days after the date of the publication
of the notice, challenge the action taken by the county board of the authorizing
issuer or the project county in approving the intergovernmental loan agreement
by action de novo in the court of common pleas of the project county or the
authorizing issuer.
Any interested party may, within twenty days after the date of the publication
of the notice, challenge the action taken by the county board in approving the
subsidiary loan agreement or the Department of Health and Environmental Control
with respect to the hospital facilities by action de novo in the court of common
pleas in any county where the hospital facilities are to be located.
Section 44-7-1700. Neither the members of the county board of the authorizing
issuer or the project county nor any person executing any bonds, the
intergovernmental loan agreement, or the subsidiary loan agreement, are liable
personally on the bonds nor subject to any personal liability or accountability
by reason of the issuance of the bonds.
Section 44-7-1710. All of the provisions of this article, except item (b) of
Section 44-7-1590, are applicable to the bonds authorized by Section 44-7-1640.
The county board of the authorizing issuer may, on behalf of any project county
which may subsequently be a party to an intergovernmental loan agreement,
undertake all actions required by the county board under this article with
respect to the issuance of the bonds and adoption of the petition to the State
Board required by Section 44-7-1590.
Section 44-7-1720. This article must not be construed as a restriction or
limitation upon any powers which a county might otherwise have under any laws of
this State but must be construed as cumulative. The authorization granted in
this article may be carried out by a county board acting at a regular or special
meeting and without publication of the proceedings by a resolution to become
effective upon its adoption at the meeting at which it is presented,
notwithstanding any restriction, limitation, or other procedure, imposed upon the
county board by any laws of this State."
Meaning of phrase
SECTION 5. Chapter 21 of Title 6 of the 1976 Code is amended by adding:
"Section 6-21-45. As used in Section 6-21-50, the phrase 'hospitals,
nursing home and care facilities' has the same meaning as 'hospital facilities'
as defined in item (f) of Section 44-7-1430."
Time effective
SECTION 6. This act takes effect upon approval by the Governor. |