S*0787(Rat #0213, Act #0184 of 2004)  General Bill, By Leatherman
 AN ACT TO AMEND SECTIONS 11-15-590, 11-21-60, AS AMENDED, 11-41-150,
 41-43-110, AS AMENDED, 57-11-380, 59-71-180, 59-107-170, AND 59-146-140, ALL
 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, AND ALL RELATING TO THE USE OF
 BOND SALE PROCEEDS FOR GENERAL OBLIGATION BONDS ISSUED BY THE STATE AND
 POLITICAL SUBDIVISIONS OF THE STATE UNDER THE VARIOUS AUTHORIZING STATUTES, SO
 AS TO ELIMINATE THE REQUIREMENT THAT BOND PREMIUMS BE APPLIED ONLY TO THE
 FIRST INSTALLMENT OF PRINCIPAL DUE, TO AMEND SECTION 11-41-50, RELATING TO
 ECONOMIC DEVELOPMENT BONDS, SO AS TO CLARIFY THE APPLICATION OF THE LIMIT ON
 DEBT SERVICE ON THESE BONDS AND FURTHER AUTHORIZE THESE BONDS, TO AMEND
 SECTION 11-1-110, RELATING TO THE AUTHORITY OF THE STATE BUDGET AND CONTROL
 BOARD TO ISSUE REVENUE BONDS FOR STATE AGENCY BUILDINGS, SO AS TO ALLOW SUCH
 BONDS FOR CONSTRUCTING, RENOVATING, OR MAINTAINING SUCH FACILITIES, OR FOR
 REFUNDING SUCH BONDS ALREADY ISSUED AND TO ALLOW THESE BONDS TO BE FURTHER
 SECURED BY A MORTGAGE, TO AMEND SECTIONS 11-43-540 AND 11-43-550, RELATING TO
 TRANSPORTATION INFRASTRUCTURE TAX BONDS, SO AS TO PROVIDE FURTHER FOR THE
 PAYMENT OF PRINCIPAL AND INTEREST ON THESE BONDS. - ratified title

   12/16/03  Senate Prefiled
   12/16/03  Senate Referred to Committee on Finance
   01/13/04  Senate Introduced and read first time SJ-22
   01/13/04  Senate Referred to Committee on Finance SJ-22
   02/04/04  Senate Committee report: Favorable with amendment
                     Finance SJ-38
   02/05/04         Scrivener's error corrected
   02/11/04  Senate Read second time SJ-48
   02/11/04  Senate Ordered to third reading with notice of
                     amendments SJ-48
   02/26/04  Senate Amended SJ-22
   02/26/04  Senate Read third time and sent to House SJ-22
   03/01/04         Scrivener's error corrected
   03/02/04  House  Introduced, read first time, placed on calendar
                     without reference HJ-6
   03/03/04  House  Read second time HJ-19
   03/04/04  House  Read third time and enrolled HJ-21
   03/10/04         Ratified R 213
   03/15/04         Signed By Governor
   03/18/04         Copies available
   03/18/04         Effective date 03/15/04
   03/23/04         Act No. 184

(A184, R213, S787)

AN ACT TO AMEND SECTIONS 11-15-590, 11-21-60, AS AMENDED, 11-41-150, 41-43-110, AS AMENDED, 57-11-380, 59-71-180, 59-107-170, AND 59-146-140, CODE OF LAWS OF SOUTH CAROLINA, 1976, ALL RELATING TO THE USE OF BOND SALE PROCEEDS FOR GENERAL OBLIGATION BONDS ISSUED BY THE STATE AND POLITICAL SUBDIVISIONS OF THE STATE UNDER THE VARIOUS AUTHORIZING STATUTES, SO AS TO ELIMINATE THE REQUIREMENT THAT BOND PREMIUMS BE APPLIED ONLY TO THE FIRST INSTALLMENT OF PRINCIPAL DUE, TO AMEND SECTION 11-41-50, RELATING TO ECONOMIC DEVELOPMENT BONDS, SO AS TO CLARIFY THE APPLICATION OF THE LIMIT ON DEBT SERVICE ON THESE BONDS AND FURTHER AUTHORIZE THESE BONDS, TO AMEND SECTION 11-1-110, RELATING TO THE AUTHORITY OF THE STATE BUDGET AND CONTROL BOARD TO ISSUE REVENUE BONDS FOR STATE AGENCY BUILDINGS, SO AS TO ALLOW SUCH BONDS FOR CONSTRUCTING, RENOVATING, OR MAINTAINING SUCH FACILITIES, OR FOR REFUNDING SUCH BONDS ALREADY ISSUED AND TO ALLOW THESE BONDS TO BE FURTHER SECURED BY A MORTGAGE, TO AMEND SECTIONS 11-43-540 AND 11-43-550, RELATING TO TRANSPORTATION INFRASTRUCTURE TAX BONDS, SO AS TO PROVIDE FURTHER FOR THE PAYMENT OF PRINCIPAL AND INTEREST ON THESE BONDS.

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

Bond proceeds

SECTION    1.    Section 11-15-590 of the 1976 Code is amended to read:

"Section 11-15-590.    The proceeds derived from the sale of these bonds must be deposited in a special fund, separate and distinct from all other funds, and applied solely to the purposes for which the bonds are issued, except that the accrued interest, if any, must be used to discharge in part the first interest to become due on the bonds."

Investment of proceeds

SECTION    2.    Section 11-21-60 of the 1976 Code, as last amended by Act 65 of 1991, is further amended to read:

"Section 11-21-60.    On the delivery of any refunding bonds issued pursuant to this chapter, the proceeds of the bonds, less the proceeds of that portion of any refunding bonds issued pursuant to Chapter 17, Title 6 for improvements, must be deposited with a corporate trustee and held by it under a written trust agreement and in a special trust account, except that the accrued interest, if any, must be used to discharge in part the first interest to become due on the refunding bonds. It is the duty of the corporate trustee to keep the proceeds invested and reinvested to the extent practical in obligations of the United States or any agency of the United States and to apply the principal and interest of the trust so established in the manner prescribed in the trust agreement."

Bond proceeds

SECTION    3.    Section 11-41-150 of the 1976 Code, as added by Act 254 of 2002, is amended to read:

"Section 11-41-150.    The proceeds of the sale of bonds must be received by the State Treasurer and applied by the State Treasurer to the purposes for which issued, except that the accrued interest, if any, may be used to discharge in part the first interest to become due on the bonds, but the purchasers of the bonds in no way are liable for the proper application of the proceeds to the purposes for which they are intended."

Bond proceeds

SECTION    4.    Section 41-43-110(D) of the 1976 Code is amended to read:

"(D)    The proceeds from the sale of any bonds must be applied only for the purpose for which the bonds were issued. Any accrued interest received in any such sale must be applied to the payment of the interest on the bonds sold. If for any reason any portion of the proceeds is not needed for the purpose for which the bonds were issued, the unneeded portion of the proceeds must be applied to the payment of the principal of or the interest on the bonds."

Highway bond proceeds

SECTION    5.    Section 57-11-380 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:

"Section 57-11-380.    The proceeds of the sale of state highway bonds must be received by the State Treasurer and applied by the State Treasurer to the purposes for which issued, except that the accrued interest, if any, must be used to discharge in part the first interest to become due on the bonds, but the purchasers of the bonds are not liable for the proper application of the proceeds to the purposes for which they are intended."

School bond proceeds

SECTION    6.    Section 59-71-180 of the 1976 Code is amended to read:

"Section 59-71-180.    The proceeds derived from the sale of the bonds must be deposited with the treasurer of the county in which the operating school unit is located, in whole or in part, in a special fund to the credit of the operating school unit and must be applied solely to the purposes for which the bonds were issued, except that the accrued interest, if any, must be used to discharge in part the first interest to become due on the bonds."

State institution bond proceeds

SECTION    7.    Section 59-107-170 of the 1976 Code is amended to read:

"Section 59-107-170.    The proceeds of sale of state institution bonds must be received by the State Treasurer and placed in a fund to the credit of the state board subject to withdrawal on their order, except that all accrued interest received must be used by the State Treasurer to discharge the first installment of interest coming due. On the occasion that he receives the proceeds of state institution bonds from the purchaser, the State Treasurer shall segregate the proceeds for the account of the state institution or institutions for which the bonds are issued. The purchasers of the state institution bonds are not liable for the application of the proceeds of the bonds to the purposes for which they are intended."

State school facilities bond proceeds

SECTION    8.    Section 59-146-140 of the 1976 Code, as added by Act 28 of 1999, is amended to read:

"Section 59-146-140.    The proceeds of the sale of state school facilities bonds must be received by the State Treasurer and applied by the State Treasurer to the purposes for which issued, except that the accrued interest, if any, must be used to discharge in part the first interest to become due on the bonds, but the purchasers of the bonds are not liable for the proper application of the proceeds to the purposes for which they are intended."

Economic development bonds

SECTION    9.    Section 11-41-50 of the 1976 Code, as added by Act 254 of 2002, is amended to read:

"Section 11-41-50.    (A)    Pursuant to Article X, Section 13(6)(c) of the Constitution of this State, 1895, the General Assembly provides that economic development bonds may be issued under this chapter only at such times as the maximum annual debt service on all general obligation bonds of the State, including economic development bonds outstanding and being issued, but excluding highway bonds, state institution bonds, tax anticipation notes, and bond anticipation notes, will not exceed five and one-half percent of the general revenues of the State for the fiscal year next preceding, excluding revenues which are authorized to be pledged for state highway bonds and state institution bonds. The State at any time may not issue general obligation bonds, excluding economic development bonds, highway bonds, state institution bonds, tax anticipation notes, and bond anticipation notes, if at the time of issuance the maximum annual debt service on all such general obligation bonds, outstanding and being issued exceeds five percent of the general revenues of the State for the fiscal year next preceding, excluding revenues which are authorized to be pledged for state highway bonds and state institution bonds.

(B)    With respect to the first eight hundred fifty million dollars in principal amount of general obligation bonds issued after the effective date of this chapter within the debt service constraints set forth in subsection (A) of this section, the General Assembly provides additional constitutional authorization for such bonds pursuant to Article X, Section 13(5) of the Constitution of this State, 1895. This authorization is the same authorization contained in, and is not duplicative of, the authorization set forth in Section 11-51-50(c)."

Revenue bonds for agency buildings

SECTION    10.    Section 11-1-110 of the 1976 Code, as added by Act 145 of 1995, is amended to read:

"Section 11-1-110.    The State Budget and Control Board is authorized to issue and sell bonds, notes, or other obligations for the purpose of acquiring, constructing, renovating, or maintaining facilities for the use of and occupancy of state departments and agencies or to refund such bonds, notes, or other obligations, provided that these obligations must be payable solely from revenues derived from the renting, leasing, or sale of all or any designated portion of such facilities held by the State Budget and Control Board for the use of and occupancy by state departments and agencies and must be secured by a pledge of the revenues from such designated facilities and, at the option of the State Budget and Control Board, may be additionally secured by a mortgage of these facilities; provided, further, that the issuance and the sale of the bonds, notes, or other obligations provided for in this section are subject to the review of the Joint Bond Review Committee."

Transportation infrastructure bonds

SECTION    11.    Section 11-43-540 of the 1976 Code, as added by Act 148 of 1997, is amended to read:

"Section 11-43-540.    The issuance of transportation infrastructure bonds is subject to the limitations contained in Article X, Section 13(6)(c) of the Constitution of this State. Within such limitations, transportation infrastructure bonds may be issued for qualified projects or to refund transportation infrastructure bonds from time to time under the conditions prescribed by this article. The review and approval of the Joint Bond Review Committee must be obtained prior to the issuance of any transportation infrastructure bonds. No transportation infrastructure bonds may be issued unless the board has a source of revenues to pay the principal and interest on the bonds."

Transportation infrastructure bonds

SECTION 12. Section 11-43-550 of the 1976 Code, as added by Act 148 of 1997, is amended to read:

"Section 11-43-550.    For the payment of the principal of and interest on all transportation infrastructure bonds, whether or not outstanding or hereafter issued, as they come due, there is pledged the full faith, credit, and taxing power of this State, and in accordance with the provisions of Article X, Section 13(4) of the Constitution of this State, the General Assembly authorizes the allocation on an annual basis of sufficient tax revenues to provide for the punctual payment of the principal and interest on transportation infrastructure bonds. In addition to the full faith, credit, and taxing power, there also is pledged such revenue as may be available to the board, and the State Treasurer is authorized to use such revenue when pledged, without further action of the board, for the payment of the principal and interest on transportation infrastructure bonds as the bonds respectively mature. If the revenues so pledged prove insufficient to meet the payments of the interest on and principal of the transportation infrastructure bonds in the fiscal year, then the State Treasurer shall set aside from the general tax revenues received in the fiscal year so much of the general tax revenues as are needed for the purpose and shall apply these revenues to the punctual payment of the interest on and principal of transportation infrastructure bonds due or to become due in the fiscal year."

Time effective

SECTION    13.    This act takes effect upon approval by the Governor.

Ratified the 10th day of March, 2004.

Approved the 15th day of March, 2004.