S 514 Session 111 (1995-1996)
S 0514 General Bill, By Rankin, Elliott, Land, M.T. Rose and G. Smith
A Bill to amend Title 4, Code of Laws of South Carolina, 1976, relating to
counties, by adding Chapter 37 so as to provide that counties are authorized
upon favorable referendum to establish transportation authorities to finance
the cost of acquiring, constructing, equipping, and operating highways, roads,
streets, and bridges, either on their own or in partnership with the South
Carolina Department of Transportation; and to amend Section 57-5-1330 of the
1976 Code, relating to turnpikes, so as to provide that the Department of
Transportation may not designate any highway, road, bridge, or other
transportation facility which receives funds from the special local option
sales tax provided in Chapter 37 as a turnpike.
02/14/95 Senate Introduced and read first time SJ-9
02/14/95 Senate Referred to Committee on Transportation
02/22/95 Senate Committee report: Majority favorable with amend.,
minority unfavorable Transportation SJ-13
05/11/95 Senate Recommitted to Committee on Transportation SJ-43
Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
February 22, 1995
S. 514
Introduced by SENATORS Rankin, Greg Smith, Rose, Land and
Elliott
S. Printed 2/22/95--S.
Read the first time February 14, 1995.
THE COMMITTEE ON TRANSPORTATION
To whom was referred a Bill (S. 514), to amend Title 4, Code of
Laws of South Carolina, 1976, relating to counties, by adding
Chapter 37, etc., respectfully
REPORT:
That they have duly and carefully considered the same, and
recommend that the same do pass with amendment:
Amend the bill, as and if amended, by striking SECTION 1 and
inserting in lieu thereof the following:
/In furtherance of the powers granted to the counties of this State
pursuant to the provisions of Section 4-9-30 and Section
6-21-10, et seq. of the 1976 Code, each of the counties of
this State is authorized to establish transportation authorities and to
finance, following the public hearing and referendum required in
this act, the cost of acquiring, designing, constructing, equipping
and operating highways, roads, streets, bridges, and other
transportation related projects facilities, either alone
or in partnership with other governmental entities, including,
but not limited to, the South Carolina Department of
Transportation./
Amend the bill further, as and if amended, page 2, by striking
lines 3 through lines 17 and inserting in lieu thereof the following:
/Section 4-37-10. (A) Subject to requirements of this chapter
and the referendum described in Section 4-37-30, the governing
body of a county may by ordinance establish a transportation
authority with all of the rights and powers described in Section
4-37-20. If a county chooses to finance all of the cost of highways,
roads, streets, and bridges, and other transportation
related projects and elects to create an authority for such
purpose, the members of the authority board must be appointed by
the county governing body in the manner it determines.
(B) If a county chooses to enter into a partnership,
consortium, or other contractual arrangement with other
governmental entities the South Carolina Department of
Transportation and if the parties choose to form an authority for
such purpose, those other governmental entities the
South Carolina Department of Transportation Commission must
have one or more designated appointees on the authority board as
provided in an intergovernmental agreement to be entered into by
the parties. In order for a county to enter into the formation of
an authority, partnership, consortium, or other intergovernmental
agreement pursuant to the provisions of this chapter with other
counties, a referendum on the action must be held by each county
and the referendum must be approved by each and every separate
county and together.
(C) For purposes of this chapter `governmental entity' is a
county or the State of South Carolina and its departments and
agencies./
Amend the bill further, as and if amended, page 3, by striking
lines 22 through 26 and inserting in lieu thereof the following:
/(i) highways, roads, streets, bridges, and other
transportation related projects facilities including
drainage facilities relating to such highways, roads, streets, bridges,
and other transportation related projects facilities;
(ii) jointly operated projects of the county and South
Carolina Department of Transportation;
(iii) projects operated by the county or jointly
operated projects of the county and other governmental
entities;/
Amend the bill further, as and if amended, page 7, by striking
lines 16 through 17 and inserting in lieu thereof the following:
/transportation related projects facilities, either
alone or jointly with the Department of Transportation to the end
that these transportation related projects facilities
may be/
Amend title to conform.
Majority favorable. Minority unfavorable.
JOHN C. LAND, III ERNEST L. PASSAILAIGUE,
JR.
LUKE RANKIN WILLIAM MESCHER
For Majority. LAWRENCE E. RICHTER, JR.
MICHAEL T. ROSE
For Minority.
A BILL
TO AMEND TITLE 4, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO COUNTIES, BY ADDING
CHAPTER 37 SO AS TO PROVIDE THAT COUNTIES ARE
AUTHORIZED UPON FAVORABLE REFERENDUM TO
ESTABLISH TRANSPORTATION AUTHORITIES TO FINANCE
THE COST OF ACQUIRING, CONSTRUCTING, EQUIPPING,
AND OPERATING HIGHWAYS, ROADS, STREETS, AND
BRIDGES, EITHER ON THEIR OWN OR IN PARTNERSHIP
WITH THE SOUTH CAROLINA DEPARTMENT OF
TRANSPORTATION; AND TO AMEND SECTION 57-5-1330 OF
THE 1976 CODE, RELATING TO TURNPIKES, SO AS TO
PROVIDE THAT THE DEPARTMENT OF TRANSPORTATION
MAY NOT DESIGNATE ANY HIGHWAY, ROAD, BRIDGE, OR
OTHER TRANSPORTATION FACILITY WHICH RECEIVES
FUNDS FROM THE SPECIAL LOCAL OPTION SALES TAX
PROVIDED IN CHAPTER 37 AS A TURNPIKE.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. In furtherance of the powers granted to the
counties of this State pursuant to the provisions of Section 4-9-30
and Section 6-21-10, et seq. of the 1976 Code, each of the counties
of this State is authorized to establish transportation authorities and
to finance, following the public hearing and referendum required in
this act, the cost of acquiring, designing, constructing, equipping
and operating highways, roads, streets, bridges, and other
transportation facilities, either alone or in partnership with the South
Carolina Department of Transportation.
SECTION 2. Title 4 of the 1976 Code is amended by adding:
"CHAPTER 37
Optional Methods for Financing Transportation
Facilities
Section 4-37-10. (A) Subject to requirements of this chapter
and the referendum described in Section 4-37-30, the governing
body of a county may by ordinance establish a transportation
authority with all of the rights and powers described in Section
4-37-20. If a county chooses to finance all of the cost of highways,
roads, streets, and bridges and elects to create an authority for such
purpose, the members of the authority board must be appointed by
the county governing body in the manner it determines.
(B) If a county chooses to enter into a partnership, consortium,
or other contractual arrangement with the South Carolina
Department of Transportation and if the parties choose to form an
authority for such purpose, the South Carolina Department of
Transportation Commission must have one or more designated
appointees on the authority board as provided in an
intergovernmental agreement to be entered into by the parties.
Section 4-37-20. The board of the authority has all the rights
and powers of a public body, politic and corporate of this State
including, without limitation, all the rights and powers necessary or
convenient to manage the business and affairs of the authority and
to take action as it may consider advisable, necessary, or convenient
in carrying out its powers including, but not limited to, the
following rights and powers:
(1) to have perpetual succession;
(2) to sue and be sued;
(3) to adopt, use, and alter a seal;
(4) to make and amend bylaws for regulation of its affairs
consistent with the provisions of this chapter;
(5) to acquire by gift, deed or easement, purchase, hold, use,
improve, lease, mortgage, pledge, sell, transfer, and dispose of any
property, real, personal, or mixed, or any interest in any property,
or revenues of the authority as security for notes, bonds, evidences
of indebtedness, or other obligations of the authority;
(6) to borrow money, make and issue notes, bonds, and other
evidences of indebtedness; to secure the payment of the obligations
or any part by mortgage, lien, pledge, or deed of trust, on any of its
property, contracts, franchises, or revenues;
(7) to make contracts, including service contracts with a person,
corporation, or partnership including, without limitation, the South
Carolina Department of Transportation, to provide the facilities and
services provided herein;
(8) to exercise the powers of eminent domain; and
(9) execute all instruments necessary or convenient for the
carrying out of business.
Section 4-37-30. To accomplish the purposes of this chapter,
counties are empowered to impose one but not both of the
following sources of revenue: a sales and use tax as provided in
subsection (A) or to authorize an authority established by the
county governing body as provided in Section 4-37-10 to use and
impose tolls in accordance with the provisions of subsection (B).
(A) Subject to the requirements of this section, the governing
body of a county may by ordinance impose a one percent sales and
use tax within its jurisdiction for a specific purpose and for a
specific period of time to collect a limited amount of money.
(1) The governing body of a county may vote to impose the
tax authorized by this section, subject to a referendum, by enacting
an ordinance. The ordinance must specify:
(a) the purpose for which the proceeds of the tax is to be
used, which may include projects located within or without, or both
within and without, the boundaries of the county imposing the tax
and which may include:
(i) highways, roads, streets, bridges, and other
transportation facilities including drainage facilities relating to such
highways, roads, streets, bridges, and other transportation facilities;
(ii) jointly operated projects of the county and South
Carolina Department of Transportation;
(b) the maximum time, stated in calendar years or calendar
quarters, or a combination of them, not to exceed twenty-five years,
for which the tax may be imposed; and
(c) the maximum cost of the project or facilities to be
funded in whole or in part from proceeds of the tax and the
principal amount of bonds to be supported by the tax.
(2) Upon receipt of the ordinance, the county election
commission shall conduct a referendum on the question of imposing
the optional special sales and use tax in the jurisdiction. The
referendum must be held on the first Tuesday occurring sixty days
after the election commission receives the ordinance. If that
Tuesday is a legal holiday, then the referendum must be held on the
next succeeding Tuesday that is not a holiday. The commission
shall publish the date and purpose of the referendum once a week
for four consecutive weeks immediately preceding the date of the
referendum, in a newspaper of general circulation in the
jurisdiction. A public hearing must be conducted at least fourteen
days prior to the referendum, after publication of a notice setting
forth the date, time, and location of the public hearing. The notice
must be published in a newspaper of general circulation in the
county at least fourteen days prior to the date fixed for the public
hearing.
(3) A separate question must be included on the referendum
ballot for each purpose and the question must read substantially as
follows:
`I approve a special one percent sales and use tax to be imposed
in (county) for not more than (time) to fund the
following project(s):
Project (1) for $
Yes []
No []
Project (2) etc.'
In addition, the referendum shall contain a question on the
authorization of general obligation bonds under the exemption
provided in Section 14(6), Article X of the Constitution of South
Carolina, 1895, so that revenues derived from the imposition of the
optional sales and use tax may be pledged to the repayment of the
bonds. The additional question must read substantially as follows:
`I approve the issuance of not exceeding $ of
general obligation bonds of County, maturing
over a period not to exceed years to fund the
project(s).
Yes []
No []'
If the referendum on the question relating to the issuance of general
obligation bonds is approved, the county may issue bonds in an
amount sufficient to fund the expenses of the project(s).
(4) All qualified electors desiring to vote in favor of
imposing the tax for a particular purpose shall vote `yes' and all
qualified electors opposed to levying the tax for a particular purpose
shall vote `no'. If a majority of the votes cast are in favor of
imposing the tax for one or more of the specified purposes, then the
tax is imposed as provided in this section; otherwise, the tax is not
imposed. A subsequent referendum on this question must not be
held more than once in twelve months. The election commission
shall conduct the referendum under the election laws of this State,
mutatis mutandis, and shall certify the result no later than sixty days
after the date of the referendum to the appropriate governing body
and to the Department of Revenue and Taxation. Included in the
certification must be the maximum cost of the project or facilities to
be funded in whole or in part from proceeds of the tax, the
maximum time specified for the imposition of the tax, and the
principal amount of bonds to be supported by the tax receiving a
favorable vote. Expenses of the referendum must be paid by the
jurisdiction conducting the referendum. If the tax is approved in
the referendum, the tax is imposed effective the first day of the
month occurring one hundred eighty days after the date of the
referendum. If the certification is not timely made to the
Department of Revenue and Taxation, the imposition is postponed
for twelve months.
(5) The tax terminates on the earlier of:
(a) the final day of the maximum time specified for the
imposition; or
(b) the end of the calendar month during which the
Department of Revenue and Taxation determines that the tax has
raised revenues sufficient to provide the greater of either the cost of
the project(s) as approved in the referendum or the cost to amortize
all debts related to the approved projects.
(6) When the optional sales and use tax is imposed for more
than one purpose, the governing body of the jurisdiction authorizing
the referendum for the tax shall determine the priority for the
expenditure of the net proceeds of the tax for the purposes stated in
the referendum.
(7) Amounts collected in excess of the required proceeds
must first be applied, if necessary, to complete each project for
which the tax was imposed; otherwise, the excess amounts must be
credited to the general fund of the jurisdiction imposing the tax for
infrastructure use only.
(8) The tax levied pursuant to this section must be
administered and collected by the Department of Revenue and
Taxation in the same manner that other sales and use taxes are
collected. The department may prescribe the amounts which may
be added to the sales price because of the tax.
(9) The tax authorized by this section is in addition to all
other local sales and use taxes and applies to the gross proceeds of
sales in the applicable jurisdiction which are subject to the tax
imposed by Chapter 36 of Title 12 and the enforcement provisions
of Chapter 54 of Title 12. The gross proceeds of the sale of items
subject to a maximum tax in Chapter 36 of Title 12 are exempt
from the tax imposed by this section. The gross proceeds of the
sale of food lawfully purchased with United States Department of
Agriculture food stamps are exempt from the tax imposed by this
section. The tax imposed by this section also applies to tangible
personal property subject to the use tax in Article 13, Chapter 36 of
Title 12.
(10) Taxpayers required to remit taxes under Article 13,
Chapter 36 of Title 12 shall identify the county in which the
tangible personal property purchase at retail is stored, used, or
consumed in this State.
(11) Utilities are required to report sales in the county in
which consumption of the tangible personal property occurs.
(12) A taxpayer subject to the tax imposed by Section
12-36-920 who owns or manages rental units in more than one
county shall separately report in his sales tax return the total gross
proceeds from business done in each county.
(13) The gross proceeds of sales of tangible personal property
delivered after the imposition date of the tax levied under this
section in a county, either under the terms of a construction contract
executed before the imposition date, or a written bid submitted
before the imposition date, culminating in a construction contract
entered into before or after the imposition date, are exempt from the
special local sales and use tax provided in this section if a verified
copy of the contract is filed with the Department of Revenue and
Taxation within six months after the imposition of the special local
sales and use tax.
(14) Notwithstanding the imposition date of the special local
sales and use tax authorized pursuant to this section, with respect to
services that are regularly billed on a monthly basis, the special
local sales and use tax is imposed beginning on the first day of the
billing period beginning on or after the imposition date.
(15) The revenues of the tax collected in each county under
this section must be remitted to the State Treasurer and credited to a
fund separate and distinct from the general fund of the State. After
deducting the amount of refunds made and costs to the Department
of Revenue and Taxation of administering the tax, not to exceed
one percent of the revenues, the State Treasurer shall distribute the
revenues and all interest earned on the revenues while on deposit
with the State Treasurer quarterly to the county in which the tax is
imposed and these revenues and interest earnings must be used only
for the purpose stated in the imposition ordinance. The State
Treasurer may correct misallocation costs or refunds by adjusting
subsequent distributions but these adjustments must be made in the
same fiscal year as the misallocation.
(16) The Department of Revenue and Taxation shall furnish
data to the State Treasurer and to the counties receiving revenues
for the purpose of calculating distributions and estimating revenues.
The information which must be supplied to counties upon request
includes, but is not limited to, gross receipts, net taxable sales, and
tax liability by taxpayers. Information about a specific taxpayer is
considered confidential and is governed by the provisions of Section
12-54-240. A person violating this section is subject to the
penalties provided in Section 12-54-240.
(17) The Department of Revenue and Taxation may
promulgate regulations necessary to implement this section.
(B)(1)(a) This subsection is intended to provide an additional and
alternative method, subject to a referendum, for the provision of
and financing for highways, roads, streets, bridges, and other
transportation facilities, either alone or jointly with the Department
of Transportation to the end that these transportation facilities may
be undertaken in such manner as may best be calculated to expedite
relief of hazardous and congested traffic conditions on the highways
in the State, including the authorization for turnpike projects
undertaken by the Department of Transportation in Article 9 of
Chapter 5 of Title 57.
(b) Subject to the requirements of this subsection, the
governing body of a county may by ordinance authorize, subject to
a referendum, an authority to use tolls to finance projects authorized
by this section.
(c) The ordinance enacted by the governing body of the
county to authorize an authority to use tolls must specify:
(i) the purpose for which the toll revenues are to be
used which may include jointly operated projects between the
authority and the South Carolina Department of Transportation;
(ii) the maximum time, stated in calendar years or
calendar quarters, or a combination of them, not to exceed
twenty-five years, for which the tolls may be imposed; and
(iii) the maximum cost of the project or facilities to be
funded in whole or in part from toll revenues and the principal
amount of bonds to be supported by the tolls.
(d) Upon receipt of the ordinance, the county election
commission shall conduct a referendum on the question of
authorizing an authority to use tolls in the jurisdiction. The
referendum must be held on the first Tuesday occurring sixty days
after the election commission receives the ordinance. If that
Tuesday is a legal holiday, then the referendum must be held on the
next succeeding Tuesday that is not a holiday. The commission
shall publish the date and purpose of the referendum once a week
for four consecutive weeks immediately preceding the date of the
referendum, in a newspaper of general circulation in the
jurisdiction. A public hearing must be conducted at least fourteen
days prior to the referendum, after publication of a notice setting
forth the date, time, and location of the public hearing. The notice
must be published in a newspaper of general circulation in the
county at least fourteen days prior to the date fixed for the public
hearing.
(e) A separate question must be included on the
referendum ballot for each purpose and the question must read
substantially as follows:
`I approve the imposition of tolls on the following project(s) in
(county) for not more than (time) to fund the
following project(s):
Project (1) for $
Yes []
No []
Project (2) etc.'
(f) All qualified electors desiring to vote in favor of
imposing tolls for a particular purpose shall vote `yes' and all
qualified electors opposed to imposing tolls for a particular purpose
shall vote `no'. If a majority of the votes cast are in favor of
imposing tolls for one or more of the specified purposes, then tolls
are imposed as provided in this section; otherwise, an authority is
not authorized to impose tolls. A subsequent referendum on this
question must not be held more than once in twelve months. The
election commission shall conduct the referendum under the
election laws of this State, mutatis mutandis, and shall certify the
result no later than sixty days after the date of the referendum to
the appropriate county governing body and authority and to the
South Carolina Department of Transportation. Included in the
certification must be the maximum cost of the project or facilities to
be funded in whole or in part from proceeds of the tolls and the
maximum time specified for the imposition of the tolls receiving a
favorable vote. Expenses of the referendum must be paid by the
jurisdiction conducting the referendum.
(g) Tolls terminate on the earlier of:
(i) the final day of the maximum time specified for the
imposition; or
(ii) the end of the calendar month during which the
authority determines that the tolls have raised revenues sufficient to
provide the greater of either the cost of the project(s) as approved
in the referendum or the cost to amortize all debts related to the
approved projects.
(h) When tolls are imposed for more than one purpose, the
governing body of the jurisdiction authorizing the referendum for
the tolls shall determine the priority for the expenditure of the net
proceeds of the tolls for the purposes stated in the referendum.
(i) Amounts collected in excess of the required proceeds
must first be applied, if necessary, to complete each project for
which the toll was imposed; otherwise, the excess amounts must be
credited to the general fund of the jurisdiction imposing the tax for
infrastructure use only.
(2) If the voters have approved the imposition of tolls by
referendum and if the authority enters into a partnership,
consortium, or other contractual arrangement with the Department
of Transportation relating to turnpike facilities, the authority may
designate, establish, plan, improve, construct, maintain, operate, and
regulate designated highways, roads, streets, and bridges as
`turnpike facilities' as a part of the state highway system or any
federal aid system whenever the authority determines the traffic
conditions, present or future, justify these facilities. Under such
partnership arrangement, the authority may utilize funds available
for the maintenance of the state highway system for the
maintenance of any turnpike facility financed pursuant to this
chapter. If the authority determines it is feasible to make all or part
of a construction project a turnpike facility, it may engage in the
preliminary estimates and studies incident to the determination of
the feasibility or practicability of constructing any toll road as it
from time to time considers necessary and the cost of the
preliminary estimates and studies may be paid from the general
highway fund and must be reimbursed from funds provided under
this chapter only if the studies and estimates lead to the construction
of a toll road.
(3) Under the partnership arrangement, the authority may
acquire such lands and property, including rights of access as may
be needed for turnpike facilities, by gift, devise, purchase, or
condemnation by easement or in fee simple as authorized by law on
or after the effective date of this chapter for acquiring property or
property rights in connection with other state highways.
(4) In designating, establishing, planning, abandoning,
improving, constructing, maintaining, and regulating turnpike
facilities, the authority may exercise such authorizations as are
granted generally to the Department of Transportation by the
statutory law applicable to the state highway system, except as they
may be inconsistent with the provisions included in this chapter.
(5) Whenever it becomes necessary that monies be raised
for the transportation facilities described in this chapter, the
authority may issue toll revenue bonds in a principal amount not to
exceed the amount authorized in the referendum to authorize the
authority to impose tolls to provide all or a portion of the cost of
these facilities after adopting its resolution setting forth the
following:
(a) the toll facility proposed to be constructed;
(b) the amount required for feasibility studies, planning,
design, right-of-way acquisition, and construction of the toll facility;
(c) a tentative time schedule setting forth the period of
time for which the toll shall be imposed;
(d) a debt service table showing the estimated annual
principal and interest requirements for the proposed toll revenue
bonds;
(e) any feasibility study obtained by the authority
relating to the proposed toll facility;
(f) any covenants to be made in the bond resolution
respecting competition between the proposed toll facility and
possible future highways whose construction would have an adverse
effect upon the toll revenues which would otherwise be derived by
the proposed toll facility.
(6) In addition to the powers listed above, the authority
may in connection with such toll facilities:
(a) fix and revise from time to time and charge and
collect tolls for transit over each turnpike facility constructed by it;
(b) combine, for the purpose of financing the facilities,
any two or more turnpike facilities;
(c) control access to turnpike facilities;
(d) to the extent permitted by a bond resolution, expend
turnpike facility revenues in advertising the facilities and services of
the turnpike facility or facilities to the traveling public;
(e) receive and accept from any federal agency grants
for or in the aid of the construction of any turnpike facility;
(f) do all acts and things necessary or convenient to
carry out the powers expressly granted in this chapter;
(g) enter into contracts with the Department of
Transportation for sharing the cost of building and the revenues
derived from the facilities authorized in this chapter and for the
operation and maintenance of the facilities.
(C) It is intended that this chapter is an additional and
alternative method of financing highway and bridge projects to
those already provided under the provisions of the State Highway
Bond Act (Section 57-11-210), the State Turnpike Bond Act
(Section 57-5-1310, et seq.), the Revenue Bond Act for Utilities
(Section 6-21-10, et seq.), and Section 4-9-30(5)."
SECTION 3. Section 57-5-1330(1) of the 1976 Code is
amended to read:
"1. The Department department may
designate, establish, plan, improve, construct, maintain,
operate, and regulate turnpike facilities as a part of the state
highway system or any federal aid system whenever the
Department department determines the traffic
conditions, present or future, justify such facilities, except that
the department may not designate as a `turnpike facility' any
highway, road, bridge, or other transportation facility funded in
whole or in part by a local option sales and use tax as provided in
Chapter 37 of Title 4. The Department
department may utilize funds available for the maintenance
of the state highway system for the maintenance of any turnpike
facility financed pursuant to this article."
SECTION 4. This act takes effect upon approval by the
Governor.
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