S 0329 General Bill, By Passailaigue

Similar(H 3827)
 A BILL TO AMEND SECTION 11-27-110, CODE OF LAWS OF SOUTH CAROLINA, 1976,
 RELATING TO LEASE PURCHASE OR FINANCING AGREEMENTS SUBJECT TO CONSTITUTIONAL
 DEBT LIMITS, SO AS TO EXEMPT FROM THE CONSTITUTIONAL DEBT LIMITATION REVENUE
 DERIVED BY GOVERNMENTAL ENTITIES FROM ACTIVITY OTHER THAN THE EXERCISE OF THE
 POWER OF AD VALOREM TAXATION.

   02/06/97  Senate Introduced and read first time SJ-2
   02/06/97  Senate Referred to Committee on Finance SJ-2
   03/12/97  Senate Committee report: Favorable Finance SJ-18
   03/13/97  Senate Read second time SJ-23
   04/03/97  Senate Debate adjourned SJ-16
   04/09/97  Senate Debate adjourned SJ-13
   04/10/97  Senate Amended SJ-34
   04/10/97  Senate Read third time and sent to House SJ-34
   04/15/97  House  Introduced and read first time HJ-7
   04/15/97  House  Referred to Committee on Ways and Means HJ-8

AS PASSED BY THE SENATE

April 10, 1997

S. 329

S. Printed 4/10/97--S.

Read the first time February 6, 1997.

A BILL

TO AMEND SECTION 11-27-110, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LEASE PURCHASE OR FINANCING AGREEMENTS SUBJECT TO CONSTITUTIONAL DEBT LIMITS, SO AS TO EXEMPT FROM THE CONSTITUTIONAL DEBT LIMITATION REVENUE DERIVED BY GOVERNMENTAL ENTITIES FROM ACTIVITY OTHER THAN THE EXERCISE OF THE POWER OF AD VALOREM TAXATION.

Amend Title To Conform

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Section 11-27-110(A) of the 1976 Code is amended to read:

"(A) As used in this section:

(1) 'asset' means any real property and permanent improvements thereon including structures, buildings, and fixtures;

(2) 'bond act' means:

(a) the county bond act, as contained in Chapter 15 of Title 4;

(b) the municipal bond act, as contained in Article 5, Chapter 21 of Title 5;

(c) the school bond act as contained in Article 1, Chapter 71 of Title 59;

(d) the provisions contained in Articles 3 and 5 of Chapter 11 of Title 6 pertaining to special purpose districts;

(e) any provision of law by which the State may issue obligations secured in whole or in part by the full faith, credit, and taxing power of the State; and

(f) any other law, general or special, providing for the issuance of general obligation bonds by the State or any of its political subdivisions;

(3) 'constitutional debt limit' for the State or any political subdivision of the State which has the power to incur general obligation bonded indebtedness, means the limitation of the principal amount of general obligation bonded indebtedness specified in Article X of the Constitution;

(4) 'enterprise charge' means a fee or tax imposed by one or more governmental entities, the proceeds from which may only be used for limited purposes which either (i) has been imposed within the two fiscal years prior to the date of an enterprise financing agreement or (ii) to the extent a governmental entity pledges such a charge in connection with an enterprise financing agreement, the governmental entity covenants and agrees not to increase disbursements from its general fund to pay for costs which could have been paid from such charge for a period of two fiscal years after the date of the acquisition or completion of the asset provided by such enterprise financing agreement;

(4) (5) 'enterprise financing agreement' means a financing agreement entered into to provide an asset for a governmental enterprise (i) the revenues from which are expected to be sufficient to pay the amounts due under the financing agreement, or (ii) for which an enterprise charge has been imposed in an amount expected to be sufficient to pay the amounts due under the financing agreement, or (iii) a combination of revenues described under (i) and (ii) are expected to produce an amount sufficient to pay the amounts due under the financing agreement;

(5) (6) 'financing agreement' means any contract entered into after December 31, 1995, under the terms of which a governmental entity acquires the use of an asset which provides:

(a) for payments to be made in more than one fiscal year, whether by the stated term of the contract or under any renewal provisions, optional or otherwise;

(b) that the payments thereunder are divided into principal and interest components or which contain any reference to any portion of any payment under the agreement being treated as interest; and

(c) that title to the asset will be in the name of or be transferred to the governmental entity if all payments scheduled or provided for in the financing agreement are made, but the term excludes any refinancing agreement and contracts entered into in connection with issues of general obligation bonds or revenue bonds issued pursuant to authorization provided in Article X of the Constitution;

(6) (7) 'governmental enterprise' means any activity undertaken by a governmental entity which either (i) derives revenues from or because of the an activity on a basis other than the exercise of the power of taxation by that governmental entity, or (ii) is entitled to be paid or supported from an enterprise charge;

(7) (8) 'governmental entity' means:

(a) the State, whose general obligation debt service payments are limited pursuant to Section 13, Article X of the Constitution; or

(b) any political subdivision of the State including a municipality, county, school district, special purpose district, or similar entity, whose general obligation debt is limited as provided in Sections 14 and 15, in Article X of the Constitution;

(8) (9) 'limited bonded indebtedness' means the amount of bonded indebtedness that may be incurred by a governmental entity without a referendum or, where the context requires, the amount of such indebtedness then outstanding; and

(9) (10) 'principal balance' means the total amount, excluding any amount characterized as interest, payable as of any time of consideration under any financing agreement, including any renewals or extensions of the agreement; and

(11) 'refinancing agreement' means any agreement or agreements that would be a financing agreement except that (i) it refinances an asset acquired under the terms of a contract or contracts that is not a financing agreement solely by virtue of being dated prior to January 1, 1996, and (ii) the sum of all payments to be made under such agreement is less than the sum of the payments under the contract or contracts it refinances."

SECTION 2. This act takes effect upon approval of the Governor.