S 1376 Session 111 (1995-1996)
S 1376 General Bill, By Land
A Bill to amend Sections 12-27-1290 and 12-28-2920, both as amended, relating
to the establishment and construction of toll roads, so as to revise the
disbursement of funds derived from tolls and the conditions upon which toll
charges shall cease; to amend Section 57-5-1320, as amended, relating to
turnpike project definitions, so as to revise certain definitions and to
define general obligation bond; to amend Section 57-5-1360, relating to
certain powers and duties of the State Budget and Control Board, so as to
substitute "bonds" for "facility"; and to amend Section 57-5-1450, as amended,
relating to the State Budget and Control Board's authority to issue turnpike
bonds and the terms and conditions of the bonds, so as to revise the process
of issuing turnpike bonds and to delete certain conditions that may be
attached to the bonds.
04/23/96 Senate Introduced and read first time SJ-13
04/23/96 Senate Referred to Committee on Finance SJ-13
A BILL
TO AMEND SECTIONS 12-27-1290 AND 12-28-2920, BOTH AS
AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976,
RELATING TO THE ESTABLISHMENT AND CONSTRUCTION
OF TOLL ROADS, SO AS TO REVISE THE DISBURSEMENT
OF FUNDS DERIVED FROM TOLLS AND THE CONDITIONS
UPON WHICH TOLL CHARGES SHALL CEASE; TO AMEND
SECTION 57-5-1320, AS AMENDED, RELATING TO
TURNPIKE PROJECT DEFINITIONS, SO AS TO REVISE
CERTAIN DEFINITIONS AND TO DEFINE GENERAL
OBLIGATION BOND; TO AMEND SECTION 57-5-1360,
RELATING TO CERTAIN POWERS AND DUTIES OF THE
STATE BUDGET AND CONTROL BOARD, SO AS TO
SUBSTITUTE "BONDS" FOR
"FACILITY"; AND TO AMEND SECTION 57-5-1450,
AS AMENDED, RELATING TO THE STATE BUDGET AND
CONTROL BOARD'S AUTHORITY TO ISSUE TURNPIKE
BONDS AND THE TERMS AND CONDITIONS OF THE
BONDS, SO AS TO REVISE THE PROCESS OF ISSUING
TURNPIKE BONDS AND TO DELETE CERTAIN CONDITIONS
THAT MAY BE ATTACHED TO THE BONDS.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Section 12-27-1290 of the 1976 Code, as last
amended by Act 181 of 1993, is further amended to read:
"Section 12-27-1290. The department must
shall review projects 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:
(1) returned credited to the State
Highway Fund until the fund is reimbursed or retained
and applied by the entity or entities developing the toll road
pursuant to an agreement authorized under Section 57-3-200 for the
purpose of funding the cost of construction, financing, operation,
and maintenance of the toll project; or
(2) used to service bonded indebtedness for highway
transportation purposes incurred pursuant to Paragraph 9,
Section 13, Article X of the South Carolina Constitution.
Upon reimbursement repayment of the cost of
construction and financing, all toll charges shall
cease."
SECTION 2. Section 12-28-2920 of the 1976 Code, as added by
Act 136 of 1995, is amended to read:
"Section 12-28-2920. The department shall review
projects 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:
(1) returned credited to the State
Highway Fund until the fund is reimbursed or retained
and applied by the entity or entities developing the toll road
pursuant to an agreement authorized under Section 57-3-200 for the
purpose of funding the cost of construction, financing, operation,
and maintenance of the toll project; or
(2) used to service bonded indebtedness for highway
transportation purposes incurred pursuant to Paragraph 9,
Section 13, Article X of the South Carolina Constitution.
Upon reimbursement repayment of the cost of
construction and financing, all toll charges shall
cease."
SECTION 3. Section 57-5-1320 of the 1976 Code, as last
amended by Act 181 of 1993, is further amended to read:
"Section 57-5-1320. Unless the context indicates another
meaning or intent:
(1) `Department' means the Department of Transportation;
(2) `Turnpike facility' means any express highway or limited
access highway constructed under the provisions of this article by
the department, whether or not financed with turnpike
bonds, including any bridge, tunnel, overpass, underpass,
interchange, entrance plaza, approach, toll house, service station and
administration and storage and other buildings and facilities which
the department may deem considers necessary or
desirable therefor. A turnpike facility may constitute
constitutes a portion or extension of any existing or
proposed highway in the state highway system;
(3) `Bonds or turnpike bonds' means revenue bonds of
the State authorized under the provisions of this article and
Paragraph (9), Section 13, Article X of the South Carolina
Constitution;
(4) `State board' means the State Budget and Control Board;
(5) `Turnpike facility revenues' means all revenues resulting
from tolls or other charges derived from the operation of a turnpike
facility, including revenues derived from concession leases or other
concessionaire operated facilities;
(6) `Bond resolution' means the resolution of the state board
making provision for the issuance of turnpike revenue
bonds.;
(7) `General obligation bonds' means state highway
bonds issued pursuant to Paragraph (6)(a), Section 13, Article X of
the South Carolina Constitution."
SECTION 4. Section 57-5-1360 of the 1976 Code is amended
to read:
"Section 57-5-1360. Following the receipt of any
a request pursuant to Section 57-5-1350, the state board
shall review the request and, to the extent that it approves the
request, it may effect, by resolution duly adopted,
effect the issuance of turnpike bonds, or pending the
their issuance thereof, may effect the
issuance of bond anticipation notes pursuant to Title 11, Chapter 17.
No A resolution approving any proposed turnpike
facility bonds may not be adopted unless
prior thereto before approval the state board
shall conduct conducts, after not less than ten days'
published notice, a public hearing in the City of Columbia."
SECTION 5. Section 57-5-1450 of the 1976 Code, as last
amended by Act 181 of 1993, is further amended to read:
"Section 57-5-1450. (A) Following the
approval of the proposed project, The state board
may, by resolution duly adopted, may make
provision for the issuance of turnpike bonds. In the resolution, the
state board may prescribe the following:
1. Whether the bonds are to be:
(a) revenue bonds payable solely from turnpike facility
revenues;
(b) general obligation bonds of the State; or
(c) [Deleted]
2.(1) the amount, denomination, and
numbering of turnpike bonds to be issued;
3.(2) the date as of which they must be issued;
4.(3) the maturity schedule for the retirement
of the turnpike bonds;
5.(4) the form or forms of the bonds of the
particular issue;
6.(5) the redemption provisions, if any,
applicable to the bonds;
7.(6) the maximum rate or rates of interest the
bonds shall bear;
8.(7) the specific purposes for which the
bonds must be issued;
9.(8) the purposes for which the proceeds of
the bonds must be expended, in the discretion of the state board, a
portion of the proceeds may be used as capitalized interest during
the period of construction and initial operation and for the creation
of appropriate debt service reserves;
10.(9) the method and conditions by which
turnpike revenues from the turnpike facility so financed must be
collected and utilized;
11.(10) the extent to which and the conditions
under which additional parity bonds may be issued;
12.(11) any covenant considered necessary
protecting the turnpike facility so financed from possible future
competition from other highways or comparable facilities;
13.(12) the method by which the bonds must
be sold and such other matters as may be considered necessary in
order to effect the sale, issuance, and delivery thereof of
the bonds.
(B) Except as otherwise provided in this article, all
expenses incurred in carrying out the provisions of this article are
payable solely from funds provided under the authority of this
article or from any funds provided by the federal government or
from other special sources and no liability or obligation may be
incurred by the department beyond the extent to which money has
been provided under the provisions of this article.
(C) The resolution shall further set forth
further a finding on the part of the state board that the
estimate of turnpike facility revenues made by the commission and
approved by the state board indicates that collection from turnpike
revenues for applicable fiscal years is not less than that required for
annual debt service requirements of the requested turnpike
bonds."
SECTION 6. This act takes effect upon approval by the
Governor.
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