H*3409 Session 109 (1991-1992)
H*3409(Rat #0563, Act #0515 of 1992) General Bill, By J.V. Gregory, J. Brown,
Kirsh, E.L. Nettles, P.E. Short and Wilkins
A Bill to amend Title 13, Code of Laws of South Carolina, 1976, relating to
planning, research, and development, by adding Chapter 12 so as to establish
the Trident Economic Development Finance Authority, and provide for its
powers, duties, methods of governance, and financing, and to provide that the
provisions shall not be implemented unless the registered electors of
Berkeley, Dorchester, and Charleston Counties agree to the creation of the
Authority in a question to be placed on the ballot in the respective counties;
to amend Title 13, relating to planning, research, and development, by adding
Chapter 19 so as to establish the Midlands Authority of South Carolina, and
provide for its powers, duties, methods of governance, and financing; to amend
Title 13, relating to planning, research and development, by adding Chapter 21
so as to establish the Edisto Development Authority, and provide for its
powers, duties, methods of governance, and financing; and to provide that this
Act may not be construed to regulate electricity, electric suppliers, allow
eminent domain for purposes of electric transmission or allow cooperative
agreements with respect to electricity.-amended title
01/31/91 House Introduced and read first time HJ-464
01/31/91 House Referred to Committee on Ways and Means HJ-465
03/19/91 House Committee report: Favorable Ways and Means HJ-21
03/20/91 House Read second time HJ-45
03/21/91 House Read third time and sent to Senate HJ-11
03/21/91 Senate Introduced and read first time SJ-19
03/21/91 Senate Referred to Committee on Finance SJ-20
04/02/92 Senate Committee report: Favorable with amendment Finance SJ-7
04/08/92 Senate Read second time SJ-29
04/08/92 Senate Ordered to third reading with notice of
amendments SJ-29
04/09/92 Senate Reconsidered SJ-19
04/15/92 Senate Read second time SJ-21
04/15/92 Senate Ordered to third reading with notice of
amendments SJ-21
04/30/92 Senate Amended SJ-66
05/05/92 Senate Special order SJ-13
05/27/92 Senate Amended SJ-108
05/27/92 Senate Read third time and returned to House with
amendments SJ-109
06/03/92 House Debate adjourned on Senate amendments until
Thursday, June 4, 1992 HJ-118
06/04/92 House Senate amendment amended HJ-32
06/04/92 House Returned to Senate with amendments HJ-34
06/04/92 Senate Concurred in House amendment and enrolled SJ-124
06/04/92 Ratified R 563
09/01/92 Signed By Governor
09/01/92 Effective date 07/01/92
09/01/92 Act No. 515
09/01/92 See act for exception to or explanation of
effective date
10/06/92 Copies available
(A515, R563, H3409)
AN ACT TO AMEND TITLE 13, CODE OF LAWS OF
SOUTH CAROLINA, 1976, RELATING TO PLANNING,
RESEARCH, AND DEVELOPMENT, BY ADDING CHAPTER
12 SO AS TO ESTABLISH THE TRIDENT ECONOMIC
DEVELOPMENT FINANCE AUTHORITY, AND PROVIDE
FOR ITS POWERS, DUTIES, METHODS OF GOVERNANCE,
AND FINANCING, AND TO PROVIDE THAT THE
PROVISIONS SHALL NOT BE IMPLEMENTED UNLESS
THE REGISTERED ELECTORS OF BERKELEY,
DORCHESTER, AND CHARLESTON COUNTIES AGREE TO
THE CREATION OF THE AUTHORITY IN A QUESTION TO
BE PLACED ON THE BALLOT IN THE RESPECTIVE
COUNTIES; TO AMEND TITLE 13, RELATING TO
PLANNING, RESEARCH, AND DEVELOPMENT, BY
ADDING CHAPTER 19 SO AS TO ESTABLISH THE
MIDLANDS AUTHORITY OF SOUTH CAROLINA, AND
PROVIDE FOR ITS POWERS, DUTIES, METHODS OF
GOVERNANCE, AND FINANCING; TO AMEND TITLE 13,
RELATING TO PLANNING, RESEARCH, AND
DEVELOPMENT, BY ADDING CHAPTER 21 SO AS TO
ESTABLISH THE EDISTO DEVELOPMENT AUTHORITY,
AND PROVIDE FOR ITS POWERS, DUTIES, METHODS OF
GOVERNANCE, AND FINANCING; AND TO PROVIDE
THAT THIS ACT MAY NOT BE CONSTRUED TO
REGULATE ELECTRICITY, ELECTRIC SUPPLIERS,
ALLOW EMINENT DOMAIN FOR PURPOSES OF ELECTRIC
TRANSMISSION OR ALLOW COOPERATIVE
AGREEMENTS WITH RESPECT TO ELECTRICITY.
Whereas, the General Assembly finds and declares that the
promotion of economic and industrial development of the State is
crucial to the welfare of its inhabitants and the future economic
viability of South Carolina and that such objectives are primarily
fostered by state policy which recognizes and encourages
cooperation among counties within the various regions of the
State; and
Whereas, the Supreme Court of South Carolina has recognized the
validity of such legislative findings in case law precedent by
holding that industrial development is a valid public purpose and
that public purpose is a fluid concept which changes with time,
place, population, economy, and countless other circumstances;
and
Whereas, the General Assembly recognizes changes in our State's
economy currently affecting our residents. Opportunities for
economic development frequently cross county lines, thereby
making joint efforts to attract employment opportunities desirable;
and
Whereas, the need for coordination in financing and fostering
economic development in Berkeley, Charleston, and Dorchester
Counties is vital to the continued growth; and
Whereas, an opportunity has presented itself to compete with
other locations throughout the Southeast for a regional accounting
center to be utilized by the Department of Defense which is
expected to have a workforce in excess of four thousand people;
and
Whereas, the Department of Defense has asked communities to
provide a response to its request for a proposal which would
describe opportunities to the Department of Defense should it
locate in a specific location in the Southeast; and
Whereas, response to a potential employer of such magnitude
demands a regional approach inasmuch as both costs and the
benefits of attracting such an employer would be enjoyed by the
entire region and not simply by a specific county; and
Whereas, establishment of a political subdivision which will
encourage economic development over a three-county region is a
matter of statewide importance which may not be addressed
within the powers individually granted the three specific counties
which comprise the area of the proposed Trident Economic
Development Finance Authority; and
Whereas, this legislation is part of the continuing effort of the
General Assembly to accomplish the statewide policy of
economic development in our State; and in order to fully develop
our human resources by providing the fullest range of
opportunities for our residents; and
Whereas, the General Assembly finds that improvement to local
environmental, transportation, recreational, and communications
infrastructure results in improved local economy; and
Whereas, the General Assembly finds that the creation of an
agency to be known as the Midlands Authority to provide
economic development services to the Midlands of South Carolina
will contribute to the overall economy of this area and will benefit
the entire citizenry of the Midlands; and
Whereas, it is the further intent of the General Assembly that a
project of the authority benefit the economy of the political
subdivision and region within which the project is located;
and
Whereas, it is the intent of the General Assembly that unallocated
project proceeds may be invested in local infrastructure when
local legislative representation and the authority agree it is
appropriate to do so; and
Whereas, the General Assembly finds that in order for the
authority to offer competitive services to the business community
that the authority be empowered to exercise such responsibilities
independent of certain procedural requirements of other agencies
of state government; and
Whereas, the General Assembly finds that improvement to local
environmental, transportation, recreational, and communications
infrastructure results in improved local economy; and
Whereas, the General Assembly finds that the creation of an
agency to be known as the Edisto Development Authority to
provide economic development services to the Edisto River Basin
will contribute to the overall economy of the Basin and will
benefit the entire citizenry of the Basin; and
Whereas, it is the further intent of the General Assembly that a
project of the authority benefit the economy of the political
subdivision and region within which the project is located;
and
Whereas, it is the intent of the General Assembly that unallocated
project proceeds may be invested in local infrastructure when
local legislative representation and the authority agree it is
appropriate to do so; and
Whereas, the General Assembly finds that in order for the
authority to offer competitive services to the business community
that the authority be empowered to exercise such responsibilities
independent of certain procedural requirements of other agencies
of state government; and
Whereas, it is the intent of the General Assembly that the
authority be empowered to exercise its responsibilities on a
Basin-wide basis; and
Whereas, the General Assembly finds that improvement to local
environmental, transportation, recreational, and communications
infrastructure results in improved local economy. Now,
therefore,
Be it enacted by the General Assembly of the State of South
Carolina:
Trident Economic Development Authority
SECTION 1. Title 13 of the 1976 Code is amended by
adding:
"CHAPTER 12
Trident Economic Development Finance
Authority
Section 13-12-10. There is created the Trident Economic
Development Finance Authority. The jurisdictional area of the
authority shall consist of two or more of the counties of Berkeley,
Charleston, and Dorchester which counties qualified electors have
each approved their participation in the authority by referendum.
The governing body of the authority is a board of not more than
seven members whose members shall serve for terms of four years
and until their successors are elected and qualify. The governing
bodies of Berkeley and Dorchester Counties shall each appoint
two members of the board and the governing body of Charleston
County shall appoint three members of the board upon approval of
their county's participation by referendum. Vacancies on the
board must be filled for the unexpired term in the manner of the
original selection. The authority is a local political subdivision as
contemplated by Section 11-35-310(18), as amended.
Section 13-12-15. Upon the implementation of the provisions
of this chapter, should only two of the three counties of Berkeley,
Dorchester, and Charleston have elected to participate by approval
of the initial referendum, the governing body of the
non-participating county may thereafter call a referendum in such
county on the question of participation in the authority. After one
referendum has been held under the provisions of this section, no
more than one such referendum may thereafter be held within a
two-year period. The referendum question shall read as
follows:
"Shall [insert name of county] join in the Trident
Economic Development Finance Authority which shall have the
power, among other things, with the approval of the governing
bodies of Berkeley, Dorchester, and Charleston counties, to issue
general obligation bonds for the purpose of promoting economic
development in the area of the authority?
Yes []
No []
Those voting in favor of the question shall deposit a ballot with a
check or cross mark in the square before the word `Yes', and those
voting against the question shall deposit a ballot with a check or
cross mark in the square before the word `No'."
If this question receives a majority of the votes cast in the
county, as certified by the State Board of Canvassers, the
jurisdictional area of the authority shall be expanded to include
the approving county on the date on which written evidence of
this fact is transmitted to the Secretary of State.
Section 13-12-20. The members of the board shall elect a
chairman, vice-chairman, and secretary. The board shall establish
other offices, committees, and positions under its bylaws as it
considers necessary. The board shall meet on the call of the
chairman and in accordance with its bylaws. A majority of the
board, including at least one member appointed from each
participating county, constitutes a quorum for the transaction of
its business.
Section 13-12-30. The board has all the rights and powers of a
body politic and body 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 considers advisable, necessary, or convenient in carrying out
its powers, including, but not limited to, the right and power to:
(a) have perpetual succession;
(b) sue and be sued;
(c) adopt, use, and alter a seal;
(d) make and amend bylaws for regulation of its affairs
consistent with the provisions of this chapter;
(e) acquire, 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. The authority has no power
to pledge the credit and the taxing power of the State. If revenue
financing is used, neither the faith and credit of the State nor of
any county lying within the authority nor of the authority itself
shall be pledged to the payment of the principal and interest of the
obligations and there shall be on the face of such obligation a
statement, plainly worded, to that effect;
(f) issue general obligation bonded indebtedness pursuant to
Article X, Section 14 of the South Carolina Constitution, secured
in whole or in part by a pledge of the full faith, credit, and taxing
power of all taxable property in the authority;
(g) receive contributions, grants, donations, and payments from
any source and to invest and disperse the authority's funds;
(h) encourage, assist, promote, and cooperate in the
development of the area of the authority and to appear before any
agency, department, or commission of this State, of the United
States, or of any other state in furtherance of the development or
of any matter connected with the development or related to the
development;
(i) develop and promote the development of the land for
recreational, transportation, residential, commercial, and industrial
purposes, both public and private, and to lease, sublease, or
convey title in fee simple to the real property. The authority may
retain, carry forward, and expend any proceeds derived from the
sale, lease, rental, or other use of real and personal property under
the authority's exclusive jurisdiction. The proceeds may only be
used in the development and the promotion of the authority as
provided by this chapter and for the purposes authorized by this
chapter;
(j) develop policies governing the use of, management,
business, and control of the authority's property or facilities;
(k) borrow money, make and issue notes, bonds, and other
evidences of indebtedness, including revenue bonds as described
in (e) above, general obligation bonds as described in (f) above,
and refunding and advanced refunding notes and bonds, of the
authority; to secure the payment of the obligations or any part by
pledge of the full faith, credit, and taxing power of the authority,
mortgage, lien, pledge, or deed of trust on any of its property,
contracts, franchises, or revenues, including the proceeds of any
refunding and advanced refunding notes, bonds, and other
evidences of indebtedness and the investments in which proceeds
are invested and the earnings on and income from the
investments; to invest its monies, including without limitation its
revenues and proceeds of the notes, bonds, or other evidences of
indebtedness as set forth in Section 6-5-10, as now or hereafter
amended; to make agreements with the purchasers or holders of
the notes, bonds, or other evidences of indebtedness or with others
in connection with any notes, bonds, or other evidences of
indebtedness, whether issued or to be issued, as the authority
considers advisable; and to provide for the security for the notes,
bonds, or other evidences of indebtedness and the rights of the
holders of the notes, bonds, or other evidences of indebtedness. In
the exercise of the powers granted in this section to issue
advanced refunding notes, bonds, or other evidences of
indebtedness, the authority may, but is not required to, avail itself
of or comply with any of the provisions of Chapter 21 of Title 11
in the event revenue bonds are issued or Chapter 15 of Title 11 in
the event general obligation bonds are issued;
(l) loan the proceeds of notes, bonds, or other evidences of
indebtedness to a person, corporation, or partnership to construct,
acquire, improve, or expand the projects described in Section
13-12-40;
(m) make contracts, including service contracts with a person,
corporation, or partnership, to provide the services provided in
Section 13-12-40, and to execute all instruments necessary or
convenient for the carrying out of business;
(n) acquire rights-of-way and property necessary for the
accomplishment of its duties and purposes, the authority may
purchase them by negotiation or may condemn them, and should it
elect to exercise the right of eminent domain, condemnation
actions must be in the name of the authority. The power of
eminent domain pursuant to the procedures provided in Chapter 2
of Title 28 applies to all property of private persons or
corporations and also to property already devoted to public use in
Berkeley, Charleston, and Dorchester counties; and
(o) enter into joint or cooperative agreements with the federal
or state governments or any political subdivision of the State to
perform any or all of its functions.
Section 13-12-40. The authority may issue general obligation
bonds or revenue bonds for the purpose of financing or
refinancing, in whole or in part, the cost of the following projects:
(a) purchasing real estate;
(b) constructing, reconstructing, or improving any capital
improvements; and
(c) operating and maintenance costs.
In connection with the issuance of bonds, the authority may
enter into an agreement with a company to construct, operate,
maintain, and improve a project, and the authority may enter into
a financing agreement with the company prescribing the terms
and conditions of the payments to be made by the company to the
authority, or its assignee, to meet the payments that become due
on bonds.
Section 13-12-50. General obligation bonds or revenue bonds
issued under this chapter for any project described in Section
13-12-40 must be authorized by resolution of the board. The
resolution may contain provisions which are a part of the contract
between the authority and the several holders of the bonds as
to:
(a) the custody, security, use, expenditure, or application of the
proceeds of the bonds;
(b) the acquisition, construction, and completion of any project
for which the bonds are issued;
(c) the use, regulation, operation, maintenance, insurance, or
disposition of the project for which the bonds are issued, or any
restrictions on the exercise of the powers of the board to dispose
of or limit or regulate the use of the project;
(d) the payment of the principal of or interest on the bonds and
the sources and methods of payment, including the ad valorem tax
levy of the authority, the rank or priority of any bonds as to any
lien or security, or the acceleration of the maturity of any bonds;
(e) the use and disposition of the revenues derived or to be
derived from the operation of any project;
(f) the pledging, setting aside, depositing, or entrusting of the
revenues from which the bonds are made payable to secure the
payment of the principal of and interest on the bonds or the
payment of expenses of operation and maintenance of the project;
(g) the setting aside of revenues, reserves, or sinking funds and
the source, custody, security, regulation, and disposition of the
revenues, reserves, or sinking funds;
(h) the determination of the definition of revenues or of the
expenses of operation and maintenance of the project for which
the bonds are issued;
(i) the rentals, fees, or other charges derived from the use of
the project and the fixing, establishing, collection, and
enforcement of the rentals, fees, or other charges, the amount or
amounts of revenues to be produced by the rentals, fees, or other
charges, and the disposition and application of the amounts
charged or collected;
(j) limitations on the issuance of additional bonds or any other
obligations or the incurrence of indebtedness payable from the
same revenues from which the bonds are payable;
(k) rules to ensure the use of the project by the public or private
sector to the maximum extent to which the project is capable of
serving the public or private sector;
(l) any other matter or course of conduct which, by recital in
the resolution authorizing the bonds, is declared to further secure
the payment of the principal of or interest on the bonds.
Section 13-12-60. The governing bodies of the participating
counties are empowered to authorize the authority to issue general
obligation bonds whose proceeds must be used in furtherance of
any power of the authority under the procedures prescribed in this
chapter. If, upon its own finding or upon petition of the authority,
a participating county's governing body shall determine that it
may be in the interest of the authority to raise moneys for the
furtherance of any power of the authority, it shall order a public
hearing to be held upon the question of the issuance of bonds of
the authority. Two or more of the county governing bodies may
elect to jointly hold the public hearing required by this
section.
Section 13-12-70. Notice of the public hearing required by
Section 13-12-60 shall be published by each county once a week
for three successive weeks in a newspaper of general circulation
in the county. The notice shall state:
(a) the time of the public hearing, which shall be not less than
sixteen days following the first publication of the notice;
(b) the place of the hearing;
(c) the maximum amount of general obligation bonds proposed
to be issued by the authority;
(d) a statement setting forth the purpose for which the proceeds
of such bonds are to be expended; and
(e) a brief summary of the reasons for the issuance of such
bonds and the method by which the principal and interest of such
bonds are to be paid.
Section 13-12-80. The hearing shall be conducted publicly and
both proponents and opponents of the proposed action shall be
given full opportunity to be heard.
Section 13-12-90. Following the hearing, the governing body
of each county shall, by ordinance, make a finding as to whether
and to what extent bonds of the authority should be issued, and
may thereupon authorize the governing body of the authority to
issue bonds to the extent it finds necessary. No general obligation
bonds of the authority may be issued without authorization of the
governing body of each participating county.
Section 13-12-100. The governing body of each county shall
thereupon cause notice of its action to be published for three
successive weeks in a newspaper of general circulation in the
county which shall state:
(a) the results of its action;
(b) the extent to which bonds of the authority are proposed to
be issued and the method to be provided for their payment;
and
(c) whether or not an election shall be ordered in the authority
upon the question of the issuance of bonds of the authority.
Section 13-12-110. A person affected by the action of the
governing body of each county may, by action de novo instituted
in the court of common pleas for such county, within twenty days
following the last publication of notice prescribed by Section
13-12-100, but not afterwards, challenge the action of the
governing body of the county.
Section 13-12-120. If an election is ordered as provided in
Section 13-12-100, the election shall be conducted in the same
manner and under the procedure applicable to the issuance of
general obligation bonds of the counties of the State by the
provisions of Chapter 15, Title 4, as now or hereafter amended.
Approval of the question put to the electorate shall require an
affirmative vote by a majority of all qualified electors voting on
the question throughout the jurisdictional boundaries of the
authority.
Section 13-12-130. Bonds of the authority issued following
authorization given pursuant to Sections 13-12-60 to 13-12-120
shall be issued by the governing body of the authority on behalf of
the authority in accordance with the provisions of Sections
6-11-900 through 6-11-1010, as now or hereafter amended.
Section 13-12-140. The principal of and interest on bonds
issued under this chapter are exempt from taxation, as provided in
Section 12-2-50. All security agreements, indentures, and
financing agreements made pursuant to the provisions of this
chapter are exempt from state stamp and transfer taxes.
Section 13-12-150. The bonds must be signed in the name of
the board of the authority by the manual or facsimile signature of
the chairman of the board and attested with the manual or
facsimile signature of the secretary of the board. Interest coupons
attached to the bonds must be signed by the facsimile signatures
of the officers. The bonds may be issued notwithstanding that any
of the officials signing them or whose facsimile signatures appear
on the bonds or the coupons have ceased to hold office at the time
of issue or at the time of the delivery of the bonds to the
purchaser.
Section 13-12-160. All provisions of a resolution authorizing
the issuance of the bonds in accordance with this chapter and any
covenants and agreements constitute legally binding contracts
between the authority and the several holders of the bonds,
regardless of the time of issuance of the bonds, and are
enforceable by any holder by mandamus or other appropriate
action, suit, or proceeding at law or in equity in any court of
competent jurisdiction.
Section 13-12-170. General obligation bonds authorized by
this chapter shall be secured by the full faith, credit, and taxing
power of the authority. Revenue bonds authorized by the chapter
are limited obligations of the authority. The principal and interest
of the general obligation bonds are secured in whole or in part by
a pledge of the full faith, credit, and taxing power of the authority.
The principal and interest of the revenue bonds are payable solely
out of the revenues derived by the authority, including revenues
that may be derived by the authority pursuant to the financing
agreement with respect to the project which the revenue bonds are
issued to finance. The revenue bonds are an indebtedness payable
solely from a revenue producing source or from a special source
which does not include revenues from any tax or license. The
revenue bonds do not constitute or give rise to a pecuniary
liability of the authority, the State, or any political subdivision of
the State, or to a charge against the general credit of the authority,
the State, or any political subdivision of the State or taxing
powers of the State, or any political subdivision of the State, and
this fact must be plainly stated on the face of each revenue bond.
The principal of and interest on any revenue bonds issued under
this chapter must be secured by a pledge of the revenues from
which the revenue bonds are payable, may be secured by a
security agreement, including a mortgage or any property given as
security pursuant to a financing agreement, and may be
additionally secured by a pledge of the financing agreement with
respect to the project.
The trustee under any security agreement or indenture, or any
depository specified by the security agreement or indenture, may
be any person or corporation as the authority designates,
notwithstanding that the trustee may be a nonresident of this State
or incorporated under the laws of the United States or the laws of
other states.
Section 13-12-180. The net earnings of the authority, beyond
that necessary for retirement of its bonds or other obligations or to
implement the purposes of this chapter, may not inure to the
benefit of any person other than the authority.
Section 13-12-190. The authority shall retain any unexpended
funds at the close of the fiscal year of the State regardless of the
source of the funds and expend the funds in subsequent fiscal
years.
Section 13-12-200. (A) Before undertaking a project in
connection with issuing bonds authorized by Section 13-12-40,
the board of the authority shall make a determination:
(1) that the project will serve the purposes of this chapter;
(2) that the project is anticipated to benefit the general public
welfare of the area by providing services, employment, recreation,
or other public benefits;
(3) as to the amount of bonds required to finance the project;
(4) as to the amount necessary in each year to pay the principal
of and the interest on the bonds proposed to be issued to finance
the project;
(5) as to the amount necessary to be paid each year into any
reserve funds which the board may consider advisable to establish
in connection with the retirement of the proposed bonds and the
maintenance of the project.
The determinations of the board must be set forth in the
proceedings as required by Section 11-15-10 under which the
proposed bonds are to be issued.
Section 13-12-210. The proceeds from the sale of any bonds
issued under authority of this chapter may be applied only for the
purpose for which the bonds were issued, except any premium and
accrued interest received in any sale must be applied to the
payment of the principal of or the interest on the bonds sold, and
if for any reason any portion of the proceeds are not needed for
the purpose for which the bonds were issued, that portion of the
proceeds must be applied to the payment of the principal of or the
interest on the bonds.
The cost of acquiring any project includes the following:
(1) the actual cost of the construction of any part of a project,
including architects', engineers', and attorneys' fees;
(2) the purchase price of any part of a project that may be
acquired by purchase;
(3) all expenses in connection with the authorization, sale, and
issuance of the bonds to finance the acquisition;
(4) the interest on the bonds for a reasonable time prior to
construction and for not exceeding one year after completion of
the construction."
Implementation
SECTION 2. The provisions of Title 13, Chapter 12, as added by
this act, shall take effect upon approval by the Governor, but these
provisions may not be implemented until the question of whether
to establish such an authority receives a favorable vote of a
majority of the qualified electors residing in two or more of the
counties of Berkeley, Charleston, and Dorchester as provided in
this act.
Referendum
SECTION 3. The county election commissioners for Berkeley,
Dorchester, and Charleston Counties are directed to place on the
ballot at the time of the November, 1992, general election the
following question:
"Shall there be created a Trident Economic Development
Finance Authority which shall have the power, among other
things, with the approval of the governing bodies of each of the
participating counties in the Berkeley, Dorchester, and Charleston
County area, to issue general obligation bonds for the purpose of
promoting economic development in the area of the authority?
Yes []
No []
Those voting in favor of the question shall deposit a ballot with a
check or cross mark in the square before the word `Yes', and those
voting against the question shall deposit a ballot with a check or
cross mark in the square before the word `No'.
If this question receives a majority of the votes cast in two or
more of the counties of Charleston, Berkeley, and Dorchester, as
certified by the State Board of Canvassers, Chapter 12, Title 13 of
the 1976 Code shall be implemented on the date on which written
evidence of this fact is transmitted to the Secretary of
State."
Midlands Authority
SECTION 4. Title 13 of the 1976 Code is amended by
adding:
"CHAPTER 19
Midlands Authority
Section 13-19-10. There is created the Midlands Authority of
South Carolina, referred to in this chapter as the `authority'. The
governing body of the authority consists of a nine member board
appointed by the Governor, with the advice and consent of the
Senate, for terms of four years and until their successors are
appointed and qualify. Vacancies must be filled in the manner of
the original appointment for the unexpired portion of the term.
Two members must be resident of each of the following counties:
Richland, Lexington, Fairfield, and Newberry. One member must
be appointed from the state at large. Vacancies on the board for
any reason must be filled for the unexpired term in the manner of
original appointment.
Section 13-19-20. The members of the board shall elect one
member as chairman and one as vice-chairman and shall also elect
a secretary. The board shall establish other offices, committees,
and positions under its bylaws as it considers necessary. The
board shall meet upon the call of its chairman and in accordance
with its bylaws, and five members constitute a quorum for the
transaction of its business.
Section 13-19-30. The board of the authority has all the rights
and powers of a body politic and corporate and body 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 considers advisable, necessary, or
convenient in carrying out its powers, including, but not limited
to, the following rights and powers to:
(a) have perpetual succession;
(b) sue and be sued;
(c) adopt, use, and alter a corporate seal;
(d) adopt and amend bylaws for regulation of its affairs
consistent with this chapter;
(e) notwithstanding any provision of law or regulation to the
contrary, and in accordance with its own procurement procedures
and regulations as approved by the Budget and Control Board,
acquire, purchase, hold, use, improve, manage, 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, including as security for notes, bonds, evidences of
indebtedness, or other obligations of the authority. Except for the
provisions of Sections 11-35-5210 through 11-35-5270, inclusive,
in exercising the powers authorized in this chapter the authority is
exempt from Title 11, Chapter 35. The authority has no power to
pledge the credit and the taxing power of the State or any of its
political subdivisions;
(f) receive contributions, donations, and payments and to
invest and disperse the authority's funds;
(g) encourage, assist, promote, and cooperate in the
development of the counties which are represented by members as
set forth in Section 13-19-10 and to appear on behalf of the State
before any agency, department, or commission of this State, of the
United States, or of any other state in furtherance of the
development or of any matter connected with the development or
related to the development;
(h) negotiate agreements, accords, or compacts on behalf of
and in the name of the State with the United States or with any
agency, department, or commission of the United States;
(i) act as a regional development agency of the State to
receive, purchase, hold title to, and to manage any real property in
its jurisdiction acquired by release of surplus real property, by
purchase, by donation, by lease, or by exchange and to develop
and promote the development of the land for recreational,
transportation, residential, commercial, and industrial purposes,
both public and private, and to lease, sublease, or convey title in
fee simple to the real property as provided in the by-laws of the
authority. The authority shall retain, carry forward, or expend any
proceeds derived from the sale, lease, rental, or other use of real
and personal property under the authority's exclusive jurisdiction.
The proceeds only may be used in the development and the
promotion of the authority as provided by this chapter and for the
purposes authorized by this chapter;
(j) promulgate regulations governing the use of or doing
business on the authority's property or facilities, including the
adoption of safety standards and insurance coverage or proof of
financial responsibility, including, but not limited to, providing
for the licensing of persons, firms, or corporations using or doing
business on such property or facilities, and for license fees to
cover the expense thereof;
(k) borrow money, make and issue notes, bonds, and other
evidences of indebtedness, including refunding and advanced
refunding notes and bonds, of the authority; to secure the payment
of the obligations or any part by mortgage, line, pledge, or deed of
trust on any of its property, contracts, franchises, or revenues,
including the proceeds of any refunding and advanced refunding
notes, bonds, and other evidences of indebtedness and the
investment in which proceeds are invested and the earnings on
and income from the investments; to invest its monies, including
without limitation its indebtedness, in obligations of, or
obligations the principal of and interest on which are guaranteed
by or are fully secured by contracts with, the United States, in
obligations of any agency, instrumentality, or corporation which
has been or may at a later time be created by or pursuant to an act
of the United States Congress as an agency, instrumentality, or
corporation, in direct and general obligations of this State, and in
certificates of deposit issued by any bank, trust company, or
national banking association; to make agreements with the
purchasers or holders of the notes, bonds, or other evidences of
indebtedness or with others in connection with any notes, bonds,
or other evidences of indebtedness, whether issued or to be issued,
as the authority considers advisable; and to provide for the
security for the notes, bonds, or other evidences of indebtedness
and the rights of the holders of the notes, bonds, or other
evidences of indebtedness. In the exercise of the power granted in
this section to issue advanced refunding notes, bonds, or other
evidences of indebtedness the authority may, but is not required
to, avail itself of or comply with any of the provisions of Chapter
21 of Title 11. The authority, when investing in certificates of
deposit issued by institutions authorized to do business in this
State if the institutions offer terms which, in the opinion of the
authority, are equal to or better than those offered by other
institutions;
(l) loan the proceeds of notes, bonds, or other evidences of
indebtedness to a person, corporation, or partnership to construct,
acquire, improve, or expand the projects described in Section 13-19-40;
(m) make contracts, including service contracts with a person,
corporation, or partnership, to provide the services provided in
Section 13-19-40, and to execute all instruments necessary or
convenient for the carrying out of business;
(n) for the acquiring of rights-of-ways and property necessary
for the accomplishment of its duties and purposes, the authority
may purchase them by negotiation or may condemn them, and
should it elect to exercise the right of eminent domain,
condemnation actions must be in the name of the authority. The
power of eminent domain applies to all property of private
persons or corporations;
(o) employ and dismiss, at the will and pleasure of the
authority, those employees, consultants, and other providers of
services the authority considers necessary and to fix and to pay
their compensation. Employees of the authority or any entity
established pursuant to Section 13-19-190 are not considered state
employees except for eligibility for participation in the State
Retirement System and the State Health Insurance Group Plans
and pursuant to Chapter 78 of Title 15. Chapter 11 of Title 8 and
Article 5, Chapter 17 of Title 8 do not apply to the authority. The
authority is responsible for complying with the other state and
federal laws covering employers. The authority may contract with
the Division of Human Resource Management of the State Budget
and Control Board to establish a comprehensive human resource
management program. Except for the provisions of Subarticle 3,
Article 21, Chapter 35 of Title 11, the provisions of Chapter 35 of
Title 11 do not apply to the authority in the employment of
consultants and other providers of service, but consultants and
other providers of services are subject to the authority's
procurement procedures or regulations as approved by the State
Budget and Control Board;
(p) fix, alter, charge, and collect tolls, fees, rents, charges, and
assessments for the use of the facilities of or for the services
rendered by, the authority; these rates must be at least sufficient to
provide for payment of all expenses of the authority, the
conservation, maintenance, and operation of its facilities and
properties, the payment of principal and interest on its notes,
bonds, and other evidences of indebtedness or obligation, and to
fulfill the terms and provisions of any agreements made with the
purchasers and holders of these notes, bonds, or other evidences
of indebtedness or obligation.
Section 13-19-35. The authority may exercise any of the
powers and duties conveyed under Section 13-19-30 in the entire
area of a county or portion of a county which borders the counties
represented by members as set forth in Section 13-19-10.
Section 13-19-40. In furtherance of its purposes, the authority
may issue revenue bonds, the interest on which may or may not be
excludable from gross income for federal income tax purposes, for
the purpose of raising funds needed from time to time for the
financing or refinancing, in whole or in part, the acquisition,
construction, equipment, maintenance, and operation of a facility,
building structure, or any other matter or thing which the authority
is authorized to acquire, construct, equip, maintain, or operate.
In connection with the issuance of bonds, the authority may
enter into an agreement with a company to construct, operate,
maintain, and improve a project, and the authority may enter into
a financing agreement with the company prescribing the terms
and conditions of the payments to be made by the company to the
authority, or its assignee, to meet the payments that become due
on bonds.
Section 13-19-45. The authority may issue revenue bonds for
the purpose of financing or refinancing, in whole or in part, the
cost of the following projects:
(a) purchasing real estate;
(b) constructing, reconstructing, or improving roads, bridges,
culverts, or other transportation facilities;
(c) constructing, reconstructing, improving, or equipping
water distribution systems, sewer treatment and distribution
facilities, buildings, or environmental utilities;
(d) constructing, reconstructing, and improving recreational
facilities, including but not limited to marinas, docks, swimming
pools, parks, dams, ponds, golf courses, racquetball and tennis
facilities, and equestrian and archery complexes.
In connection with the issuance of bonds, the authority may
enter into an agreement with a company to construct, operate,
maintain, and improve a project, and the authority may enter into
a financing agreement with the company prescribing the terms
and conditions of the payments to be made by the company to the
authority, or its assignee, to meet the payments that become due
on bonds.
Section 13-19-50. Revenue bonds issued under this chapter for
any project described in Section 13-19-40 must be authorized by
resolution of the board of the authority. The resolution may
contain provisions which are a part of the contract between the
authority and the several holders of the bonds as to:
(a) the custody, security, use, expenditure, or application of the
proceeds of the bonds;
(b) the acquisition, construction, and completion of any project
for which the bonds are issued;
(c) the use, regulation, operation, maintenance, insurance, or
disposition of the project for which the bonds are issued, or any
restrictions on the exercise of the powers of the board to dispose
of or limit or regulate the use of the project;
(d) the payment of the principal of or interest on the bonds and
the sources and methods of payment, the rank or priority of any
bonds as to any lien or security, or the acceleration of the maturity
of any bonds;
(e) the use and disposition of the revenues derived or to be
derived from the operation of any project;
(f) the pledging, setting aside, depositing, or entrusting of the
revenues from which the bonds are made payable to secure the
payment of the principal of and interest on the bonds or the
payment of expenses of operation and maintenance of the
project;
(g) the setting aside of revenues, reserves, or sinking funds and
the source, custody, security, regulation, and disposition of the
revenues, reserves, or sinking funds;
(h) the determination of the definition of revenues or of the
expenses of operation and maintenance of the project for which
the bonds are issued;
(i) the rentals, fees, or other charges derived from the use of
the project and the fixing, establishing, collection, and
enforcement of the rentals, fees, or other charges, the amount or
amounts of revenues to be produced by the rentals, fees, or other
charges, and the disposition and application of the amounts
charged or collected;
(j) limitations on the issuance of additional bonds or any other
obligations or the incurrence of indebtedness payable from the
same revenues from which the bonds are payable;
(k) rules to ensure the use of the project by the public or private
sector to the maximum extent to which the project are capable of
serving the public or private sector;
(l) any other matter or course of conduct which, by recital in
the resolution authorizing the bonds, is declared to further secure
the payment of the principal of or interest on the bonds.
Section 13-19-60. The bonds may be issued in one or more
series, may bear a date, may mature at a time not exceeding forty
years from their respective dates, may bear interest at the rate or
rates per annum as approved by the State Budget and Control
Board, may be payable in a medium of payment and at a place,
may be in a denomination, may be in a form, either coupon or
registered, may carry registration privileges, may be subject to
terms of redemption before maturity, with or without premium,
and may contain terms, covenants, and conditions as the
resolution authorizing the issuance of the bonds may provide.
The interest rate on bonds issued by the authority, the proceeds of
which are loaned to a company pursuant to a financing agreement
to construct or acquire a project authorized under Section
13-19-40, are not subject to approval by the State Budget and
Control Board. The bonds are fully negotiable within the meaning
of and for the purposes of the Uniform Commercial Code.
Section 13-19-70. The principal of and interest on bonds
issued under this chapter are exempt from taxation, as provided in
Section 12-1-60. All security agreements, indentures, and
financing agreements made pursuant to the provisions of this
chapter are exempt from state stamp and transfer taxes.
Section 13-19-80. No bonds may be issued pursuant to the
provisions of this chapter until the proposal of the board of the
authority to issue the bonds receives the approval of the State
Budget and Control Board. When the board proposes to issue
bonds, it shall file a proposal with the Budget and Control Board
setting forth:
(a) a brief description of the project proposed to be undertaken
and its anticipated effect upon the economy of the area in which
the project is to be located;
(b) a reasonable estimate of the cost of the project;
(c) a general summary of the terms and conditions of any
financing agreement and security agreement.
Upon the filing of the proposal the Budget and Control Board
shall, as soon as practicable, make an independent investigation,
as it considers necessary or appropriate, and if it finds that the
project is intended to promote the purposes of this chapter, it may
approve the project. At any time following the approval, the
board may proceed with the acquisition and financing of the
project. If the proceeds of the bonds are to be made available to a
company to construct a project, as provided in Section 13-19-40,
notice of the approval of any project by the Budget and Control
Board must be published at least once by the authority in a
newspaper having general circulation in the county where the
project is to be located. Any interested party may, within twenty
days after the date of the publication of notice, but not after the
twenty days, challenge the validity of the approval in the court of
common pleas in the county where the project is to be located.
Section 13-19-90. The bonds must be signed in the name of
the board of the authority by the manual or facsimile signature of
the chairman of the board and attested with the manual or
facsimile signature of the secretary of the board. Interest coupons
attached to the bonds must be signed by the facsimile signatures
of the officers. The bonds may be issued notwithstanding that any
of the officials signing them or whose facsimile signatures appear
on the bonds or the coupons have ceased to hold office at the time
of issue or at the time of the delivery of the bonds to the
purchaser.
Section 13-19-100. The bonds must be sold at public or
private sale upon terms and conditions as the State Budget and
Control Board considers advisable.
Section 13-19-110. The board of the authority or its proper
administrative officers shall file with the State Treasurer within
thirty days from the date of their issuance a complete description
of all obligations entered into by the board with the rates of
interest, maturity dates, annual payments, and all pertinent
data.
Section 13-19-120. All provisions of a resolution authorizing
the issuance of the bonds in accordance with this chapter and any
covenants and agreements constitute legally binding contracts
between the authority and the several holders of the bonds,
regardless of the time of issuance of the bonds, and are
enforceable by any holder by mandamus or other appropriate
action, suit, or proceeding at law or in equity in any court of
competent jurisdiction.
Section 13-19-130. The bonds authorized by this chapter are
limited obligations of the authority. The principal and interest are
payable solely out of the revenues derived by the authority,
including any revenues that may be derived by the authority
pursuant to the financing agreement with respect to the project
which the bonds are issued to finance. The bonds are an
indebtedness payable solely from a revenue producing source or
from a special source which does not include revenues from any
tax or license. The bonds do not constitute nor give rise to a
pecuniary liability of the authority, the State, or any political
subdivision of the State, or to a charge against the general credit
of the authority, the State, or any political subdivision of the State
or taxing powers of the State, or any political subdivision of the
State, and this fact must be plainly stated on the face of each
bond. The principal of and interest on any bonds issued under this
chapter must be secured by a pledge of the revenues from which
the bonds are payable, may be secured by a security agreement,
including a mortgage or any property given as security pursuant to
a financing agreement, and may be additionally secured by a
pledge of the financing agreement with respect to the project. In
making any agreements or provisions, the board of the authority
does not have the power to obligate itself with respect to any
project for which the proceeds of bonds issued under this chapter
have been loaned to a company, except with respect to the project
and the application of the revenues from the financing agreement,
and does not have the power to incur a pecuniary liability or a
charge upon its general credit. The trustee under any security
agreement or indenture, or any depository specified by the
security agreement or indenture, may be any person or corporation
as the authority designates, notwithstanding that the trustee may
be a nonresident of this State or incorporated under the laws of the
United States or the laws of other states.
Section 13-19-140. All funds of the authority must be invested
by the State Treasurer and, upon approval and designation by the
State Treasurer of a financial institution or institutions, all funds
must be deposited in such institutions by the board in accordance
with policies established by the board. Funds of the authority
must be paid out only upon warrants issued in accordance with
policies established by the board. No warrants may be drawn or
issued disbursing any of the funds of the authority except for a
purpose authorized by this chapter.
The net earnings of the authority, beyond that necessary for
retirement of its bonds or other obligations or to implement the
purposes of this chapter, may not inure to the benefit of any
person other than the authority. Upon termination of the existence
of the authority, title to all property, real and personal, owned by
it, including net earnings, vests in the State.
Section 13-19-150. The authority may retain any unexpended
funds at the close of the fiscal year of the State regardless of the
source of the funds and expend the funds in subsequent fiscal
years.
Section 13-19-160. (A) Prior to undertaking any project
authorized by Section 13-9-40, the board of the authority shall
make a determination: (1) that the project will serve the
purposes of this chapter;
(2) that the project is anticipated to benefit the general public
welfare of the locality by providing services, employment,
recreation, or other public benefits not otherwise provided
locally;
(3) that the project will give rise to no pecuniary liability of
the authority, the State, or any political subdivision of the State, or
charge against the general credit of the authority, the State, or any
political subdivision of the State, or taxing power of the State or
any political subdivision of the State if the proceeds are loaned by
the authority to a company to construct a project;
(4) as to the amount of bonds required to finance the
project;
(5) as to the amount necessary in each year to pay the
principal of and the interest on the bonds proposed to be issued to
finance the project;
(6) as to the amount necessary to be paid each year into any
reserve funds which the board may consider advisable to establish
in connection with the retirement of the proposed bonds and the
maintenance of the project. The determinations of the board must
be set forth in the proceedings under which the proposed bonds
are to be issued.
(B) Every financing agreement between the authority and a
company with respect to a project shall contain an agreement
obligating the company to complete the project if the proceeds of
the bonds prove insufficient, and obligating the company to pay
an amount under the terms of a financing agreement, which, upon
the basis of the determinations made by the board, is
sufficient:
(1) to pay the principal of and interest on the bonds issued to
finance the project;
(2) to build up and maintain any reserves considered by the
board to be advisable in connection with the project;
(3) to pay the costs of maintaining the project in good repair
and keeping it properly insured, unless the financing agreement
obligates the company to pay for the maintenance and insurance
of the project.
Section 13-19-170. The proceeds from the sale of any bonds
issued under authority of this chapter may be applied only for the
purpose for which the bonds were issued, except any premium and
accrued interest received in any sale must be applied to the
payment of the principal of or the interest on the bonds sold, and
if for any reason any portion of the proceeds are not needed for
the purpose for which the bonds were issued, that portion of the
proceeds must be applied to the payment of the principal of or the
interest on the bonds. The cost of acquiring any project includes
the following:
(a) the actual cost of the construction of any part of a project,
including architects', engineers', and attorneys' fees;
(b) the purchase price of any part of a project that may be
acquired by purchase;
(c) all expenses in connection with the authorization, sale, and
issuance of the bonds to finance the acquisition;
(d) the interest on the bonds for a reasonable time prior to
construction and for not exceeding one year after completion of
the construction.
Section 13-19-180. The regulations of the authority must be
promulgated in accordance with Chapter 23 of Title 1.
Section 13-19-190. The authority may establish profit or
not-for-profit corporations as the authority considers necessary to
carry out the purposes of this chapter. Officials or employees of
the authority may act as officials or employees of any
corporations created pursuant to this section without additional
compensation. A corporation created pursuant to this section is
considered to be a `public procurement unit' for purposes of
Article 19, Chapter 35 of Title 11.
The authority may make grants or loans to, or make guarantees
for, the benefit of a not-for-profit corporation which the authority
has caused to be formed whose articles of incorporation require
that its directors be elected by members of the authority and all
assets of which, upon dissolution, must be distributed to the
authority if it is in existence or, if it is not in existence, then to this
State.
These grants, loans, or guarantees may be made upon a
determination by the authority that the receiving not-for-profit
corporation is able to carry out the purposes of this chapter and on
the terms and conditions imposed by the authority.
A guarantee made by the authority does not create an obligation
of the State or its political subdivisions and is not a grant or loan
of the credit of the State or a political subdivision. A guarantee
issued by the authority must be a special obligation of the
authority. Neither this State nor any political subdivision is liable
on a guarantee nor may they be payable out of any funds other
than those of the authority and a guarantee issued by the authority
must contain on its face a statement to that effect.
Section 13-19-200. The property of the authority is not subject
to any taxes or assessments, but the authority shall negotiate a
payment in lieu of taxes with the appropriate taxing
authorities.
Section 13-19-210. Notwithstanding any provision of law or
regulation, the authority continues to be an `agency' for purposes
of Chapter 78 of Title 15; however, the authority is not considered
to be an `agency' or `state agency' or any other form of state
institution for purposes of Sections 2-7-65 and 2-57-60.
Section 13-19-220. If a term or provision of a section of this
chapter is found to be illegal or unenforceable, the remainder of
this chapter nonetheless remains in full force and effect and the
illegal or unenforceable term or provision is deleted and severed
from this chapter."
Edisto Development Authority
SECTION 5. Title 13 of the 1976 Code is amended by
adding:
"CHAPTER 21
Edisto Development Authority
Section 13-21-10. There is created the Edisto Development
Authority, referred to in this chapter as the `authority'. The
governing body of the authority consists of a seven member board
appointed by the Governor, with the advice and consent of the
Senate, for terms of four years and until their successors are
appointed and qualify. Vacancies must be filled in the manner of
the original appointment for the unexpired portion of the term.
One member must be appointed from each of the following
counties: Allendale, Bamberg, Barnwell, Calhoun, Hampton, and
Orangeburg. One member must be appointed from the state at
large.
Section 13-21-20. The members of the authority board shall
elect one member as chairman and one as vice-chairman and shall
also elect a secretary. The board shall establish other offices,
committees, and positions under its bylaws as it considers
necessary. The board shall meet upon the call of its chairman and
in accordance with its bylaws, and four members constitute a
quorum for the transaction of its business.
Section 13-21-30. The authority board has all the rights and
powers of a body politic and corporate and body 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 considers advisable, necessary, or
convenient in carrying out its powers, including, but not limited
to, the following rights and powers to:
(1) have perpetual succession;
(2) sue and be sued;
(3) adopt, use, and alter a corporate seal;
(4) adopt and amend bylaws for regulation of its affairs
consistent with this chapter;
(5) notwithstanding any provision of law or regulation to the
contrary, and in accordance with its own procurement procedures
or regulations as approved by the State Budget and Control Board,
acquire, purchase, hold, use, improve, manage, 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, including as security for notes, bonds, evidences of
indebtedness, or other obligations of the authority. Except for the
provisions of Subarticle 3, Article 21, Chapter 35 of Title 11, in
exercising the powers authorized in this chapter the authority is
exempt from Title 11 of Chapter 35. The authority has no power
to pledge the credit and the taxing power of the State or any of its
political subdivisions;
(6) receive contributions, donations, and payments and to
invest and disperse the authority's funds;
(7) encourage, assist, promote, and cooperate in the
development of the Edisto River and the streams, canals, or
watercourses now or at a later time connected to or flowing into
the river and to appear on behalf of the State before any agency,
department, or commission of this State, of the United States, or
of any other state in furtherance of the development or of any
matter connected with the development or related to the
development;
(8) to negotiate agreements, accords, or compacts on behalf of
and in the name of the State with the United States, with any
agency, department, or commission of the United States, relating
to the development of the Edisto River and the development of the
streams, canals, or watercourses now or at a later time connected
to or flowing into the river, and particularly in reference to joint or
concurrent action in the furtherance of agreements, accords, or
contracts;
(9) act as a regional development agency of the State to
receive, purchase, hold title to, and to manage any real property in
its jurisdiction acquired by release of surplus real property, by
purchase, by donation, by lease, or by exchange and to develop
and promote the development of the land for recreational,
transportation, residential, commercial, and industrial purposes,
both public and private, and to lease, sublease, or convey title in
fee simple to the real property as provided in the bylaws of the
authority. The authority shall retain, carry forward, or expend any
proceeds derived from the sale, lease, rental, or other use of real
and personal property under the authority's exclusive jurisdiction.
The proceeds shall be used only in the development and the
promotion of the authority as provided by this chapter and for the
purposes authorized by this chapter;
(10) promulgate regulations governing the use of or doing
business on the authority's property or facilities, including the
adoption of safety standards and insurance coverage or proof of
financial responsibility including, but not limited to, providing for
the licensing of persons, firms, or corporations using or doing
business on such property or facilities, and for license fees to
cover the expense thereof;
(11) borrow money, make and issue notes, bonds, and other
evidences of indebtedness, including refunding and advanced
refunding notes and bonds, of the authority; 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,
including the proceeds of any refunding and advanced refunding
notes, bonds, and other evidences of indebtedness and the
investments in which proceeds are invested and the earnings on
and income from the investments in which proceeds are invested
in the earnings on and income from the investments; to invest its
monies, including, without limitation, its revenues and proceeds
of the notes, bonds, or other evidences of indebtedness, in
obligations of, or obligations the principal of and interest on
which are guaranteed by or are fully secured by contracts with, the
United States, in obligations of any agency, instrumentality, or
corporation which has been or may at a later time be created by or
pursuant to an act of the United States Congress as an agency,
instrumentality, or corporation, in direct and general obligations
of this State, and in certificates of deposit issued by any bank,
trust company, or national banking association; to make
agreements with the purchasers or holders of the notes, bonds, or
other evidences of indebtedness or with others in connection with
any notes, bonds, or other evidences of indebtedness whether
issued or to be issued, as the authority considers advisable; and to
provide for the security for the notes, bonds, or other evidences of
indebtedness.
In the exercise of the powers granted in this section to issue
advanced refunding notes, bonds, or other evidences of
indebtedness the authority may, but is not required to, avail itself
of or comply with any of the provisions of Chapter 21 of Title 11.
The authority, when investing in certificates of deposit, shall
invest in certificates of deposit issued by institutions authorized to
do business in this State if the institutions offer terms which, in
the opinion of the authority, are equal to or better than those
offered by other institutions;
(12) loan the proceeds of notes, bonds, or other evidences of
indebtedness to a person, corporation, or partnership to construct,
acquire, improve, or expand the projects described in Section
13-21-50;
(13) to make contracts, including service contracts with a
person, corporation, or partnership, to provide the services
provided in Section 13-21-50, and to execute all instruments
necessary or convenient for the carrying out of business;
(14) for the acquiring of rights-of-way and property necessary
for the accomplishment of its duties and purposes, the authority
may purchase them by negotiation or may condemn them, and
should it elect the right of eminent domain, condemnation actions
must be in the name of the authority. The power of eminent
domain applies to all property of private persons or corporations
and also to property already devoted to public use in any of the
counties which are represented by members as set forth in Section
13-21-10;
(15) employ and dismiss, at the will and pleasure of the
authority, those employees, consultants, and other providers of
services as the authority considers necessary and to fix and to pay
their compensation. Employees of the authority or any entity
established pursuant to Section 13-21-200 are not considered to be
state employees except for eligibility for participation in the State
Retirement System and the State Health Insurance Group Plans
and pursuant to Chapter 78 of Title 15. Chapter 11 of Title 8 and
Article 5, Chapter 17 of Title 8 do not apply to the authority. The
authority is responsible for complying with the other state and
federal laws covering employers. The authority may contract with
the Division of Human Resources Management of the State
Budget and Control Board to establish a comprehensive human
resource management program. Except for the provisions of
Subarticle 3, Article 21, Chapter 35 of Title 11, the provisions of
Chapter 35 of Title 11 do not apply to the authority in the
employment of consultants and other providers of service, but
consultants and other providers of services are subject to the
authority's procurement procedures or regulations as approved by
the State Budget and Control Board;
(16) fix, alter, charge, and collect tolls, fees, rents, charges, and
assessments for the use of the facilities of or for the services
rendered by, the authority; these rates must be at least sufficient to
provide for payment of all expenses of the authority, the
conservation, maintenance, and operation of its facilities and
properties, the payment of principal and interest on its notes,
bonds, and other evidences of indebtedness or obligation, and to
fulfill the terms and provisions of any agreements made with the
purchasers and holders of these notes, bonds, or other evidences
of indebtedness or obligation.
Section 13-21-40. The authority may exercise any of the
powers and duties conveyed under Section 13-21-30 in the entire
area of a county or portion of a county which borders the Edisto
River or is within the Edisto River Basin.
Section 13-21-50. In furtherance of its purposes, the authority
may issue revenue bonds, the interest on which may or may not be
excludable from gross income for federal income tax purposes, for
the purpose of raising funds needed from time to time for the
financing or refinancing, in whole or in part, the acquisition,
construction, equipment, maintenance, and operation of any
facility, building structure, or any other matter or thing which the
authority is authorized to acquire, construct, equip, maintain, or
operate.
In connection with the issuance of bonds, the authority may
enter into an agreement with a company to consult, operate,
maintain, and improve a project, and the authority may enter into
a financing agreement with the company to the authority or its
assignee, to meet the payments that become due on the bonds.
Section 13-21-60. Revenue bonds issued under this chapter for
any project described in Section 13-21-50 must be authorized by
resolution of the board of the authority. The resolution may
contain provisions which are a part of the contract between the
authority and the several holders of the bonds as to:
(1) the custody, security, use, expenditure, or application of
the proceeds of the bonds;
(2) the acquisition, construction, and completion of any
project for which the bonds are issued;
(3) the use, regulation, operation, maintenance, insurance, or
disposition of the project for which the bonds are issued, or any
restrictions on the exercise of the powers of the board to dispose
of or limit or regulate the use of the project;
(4) the payment of the principal of or interest on the bonds
and the sources and methods of payment, the rank or priority of
any bonds as to any lien or security, or the acceleration of the
maturity of any bonds;
(5) the use and disposition of the revenues derived from the
operation of any project;
(6) the pledging, setting aside, depositing, or entrusting of the
revenues from which the bonds are made payable to secure the
payment of the principal of and interest on the bonds or the
payments of expenses of operation and maintenance of the
project;
(7) the setting aside of revenues, reserves, or sinking funds
and the source, custody, security, regulation, and disposition of
the revenues, reserves, or sinking funds;
(8) the determination of the definition of revenues or of the
expenses of operation and maintenance of the project for which
the bonds are issued;
(9) the rentals, fees, or other charges derived from the use of
the project and the fixing, establishing, collection, and
enforcement of the rentals, fees, or other charges, the amount or
amounts of revenues to be produced by the rentals, fees, or other
charges, and the disposition and application of the amounts
charged or collected;
(10) limitations on the issuance of additional bonds or any
other obligations or the incurrence of indebtedness payment from
the same revenues from which the bonds are payable;
(11) rules to insure the use of the project by the public or
private sector to the maximum extent to which the project is
capable of serving the public or private sector;
(12) any other matter or course of conduct, which, by recital in
the resolution authorizing the bonds, is declared to further secure
the payment of the principal of or interest on the bonds.
Section 13-21-70. The bonds may be issued in one or more
series, may bear date, may mature at a time not exceeding forty
years from their respective dates, may bear interest at the rate or
rates a year as approved by the State Budget and Control Board,
may be payable in the medium of payment and at a place, may be
in a denomination, may be in a form, either coupon or registered,
may carry registration privileges, may be subject to terms or
redemption before maturity, with or without premium, and may
contain terms, covenants, and conditions as the resolution
authorizing the issuance of the bonds may provide. The interest
rate on bonds issued by the authority, the proceeds of which are
loaned to a company pursuant to a financing agreement to
construct or acquire a project authorized under Section 13-21-50,
are not subject to approval by the State Budget and Control Board.
The bonds are fully negotiable within the meaning of and for the
purposes of the Uniform Commercial Code.
Section 13-21-80. The principal of and interest on bonds
issued under this chapter are exempt from taxation, as provided in
Section 12-2-50. All security agreements, indentures, and
financing agreements made pursuant to the provisions of this
chapter are exempt from state stamp and transfer taxes.
Section 13-21-90. No bonds may be issued pursuant to the
provisions of this chapter until the proposal of the board of the
authority to issue the bonds receives the approval of the State
Budget and Control Board. When the board proposes to issue
bonds, it shall file a proposal with the State Budget and Control
Board setting forth:
(1) a brief description of the project proposed to be undertaken
and its anticipated effect upon the economy of the area in which
the project is to be located;
(2) a reasonable estimate of the cost of the project;
(3) a general summary of the terms and conditions of any
financing agreement and security agreement.
Upon the filing of the proposal, the State Budget and Control
Board shall, as soon as practicable, make an independent
investigation, as it considers necessary or appropriate, and if it
finds that the project is intended to promote the purposes of this
chapter, it may approve the project. At any time following the
approval, the board may proceed with the acquisition and
financing of the project. If the proceeds of the bonds are to be
made available to a company to construct a project, as provided in
Section 13-21-50, notice of the approval of any project by the
State Budget and Control Board must be published at least once
by the authority in a newspaper having general circulation in the
county where the project is to be located.
Any interested party may, within twenty days after the date of
the publication notice, but not after the twenty days, challenge the
validity of the approval in the court of common pleas in the
county where the project is to be located.
Section 13-21-100. The bonds must be signed in the name of
the board of the authority by the manual or facsimile signature of
the chairman of the board and attested with the manual or
facsimile signature of the secretary of the board. The bonds may
be issued notwithstanding that any of the officials signing them or
whose facsimile signatures appear on the bonds or the coupons
have ceased to hold office at the time of issue or at the time of the
delivery of the bonds to the purchaser.
Section 13-21-110. The bonds must be sold at public or
private sale upon terms and conditions as the State Budget and
Control Board considers advisable.
Section 13-21-120. The board of the authority or its proper
administrative officers shall file with the State Treasurer within
thirty days from the date of their issuance a complete description
of all obligations entered into by the board with the rates of
interest, maturity dates, annual payments, and all pertinent
data.
Section 13-21-130. All provisions of a resolution authorizing
the issuance of the bonds in accordance with this chapter and any
covenants and agreements constitute legally binding contracts
between the authority and the several holders of the bonds,
regardless of the time of issuance of the bonds, and are
enforceable by any holder by mandamus or other appropriate
action, suit, or proceeding at law or in equity in any court of
competent jurisdiction.
Section 13-21-140. The bonds authorized by this chapter are
limited obligations of the authority. The principal and interest are
payable solely out of the revenues derived by the authority,
including any revenues that may be derived by the authority
pursuant to the financing agreement with respect to the projects
which the bonds are issued to finance. The bonds are an
indebtedness payable solely from a revenue producing source or
from a special source which does not include revenues from any
tax or license. The bonds do not constitute nor give rise to a
pecuniary liability of the authority, the State, or any political
subdivision of the State, or to a charge against the general credit
of the authority, the State, or any political subdivision of the State
or taxing powers of the State, or any political subdivision of the
State, and this fact must be plainly stated on the face of each
bond. The principal of and interest on any bonds issued under this
chapter must be secured by a pledge of the revenues from which
the bonds are payable, may be secured by a security agreement,
including a mortgage or any property given as security pursuant to
a financing agreement, and may be additionally secured by a
pledge of the financing agreement with respect to the project. In
making any agreements or provisions, the board of the authority
does not have the power to obligate itself with respect to any
project for which the proceeds of bonds issued under this chapter
have been loaned to a company, except with respect to the project
and the application of the revenues from the financing agreement,
and does not have the power to incur a pecuniary liability or a
charge upon its general credit.
The trustee under any security agreement or indenture, or any
depository specified by the security agreement or indenture, may
be any person, or corporation as the authority designates,
notwithstanding that the trustee may be a nonresident of this State
or incorporated under the laws of the United States or the laws of
other states.
Section 13-21-150. All funds of the authority must be invested
by the State Treasurer and, upon approval and designation by the
State Treasurer of a financial institution or institutions, all funds
must be deposited in such institutions by the board in accordance
with policies and guidelines formulated by the board. Funds of
the authority must be paid out only upon warrants issued in
accordance with policies established by the board. No warrants
may be drawn or issued disbursing any of the funds of the
authority except for a purpose authorized by this chapter.
The net earnings of the authority, beyond that necessary for
retirement of its bonds or other obligations or to implement the
purposes of this chapter, may not inure to the benefit of any
person other than the authority. Upon termination of the existence
of the authority, title to all property, real and personal, owned by
it, including net earnings, vests in the State.
Section 13-21-160. The authority shall retain unexpended
funds at the close of the state fiscal year regardless of the source
of the funds and expend the funds in subsequent fiscal years.
Section 13-21-170. (A) Prior to undertaking any project
authorized by Section 13-21-50, the board of the authority shall
make a determination:
(1) that the project shall serve the purposes of this
chapter;
(2) that the project is anticipated to benefit the general public
welfare of the locality by providing services, employment,
recreation, or other public benefits not otherwise provided
locally;
(3) that the project shall give rise to no pecuniary liability of
the authority, the State, or a political subdivision of the State, or
charge against the general credit of the authority, the State, or a
political subdivision of the State, or taxing power of the State or a
political subdivision of the State if the proceeds are loaned by the
authority to a company to construct a project;
(4) as to the amount of bonds required to finance the
project;
(5) as to the amount necessary in each year to pay the
principal of and the interest on the bonds proposed to be issued to
finance the project;
(6) as to the amount necessary to be paid each year into any
reserve funds which the board may consider advisable to establish
in connection with the retirement of the proposed bonds and the
maintenance of the project.
The determinations of the board must be set forth in the
proceedings under which the proposed bonds are to be issued.
(B) Every financing agreement between the authority and a
company with respect to a project shall contain an agreement
obligating the company to complete the project if the proceeds of
the bonds prove insufficient, and obligating the company to pay
an amount under the terms of a financing agreement, which, upon
the basis of the determinations made by the board, is
sufficient:
(1) to pay the principal of and interest on the bonds issued to
finance the project;
(2) to build up and maintain a reserve considered by the board
to be advisable in connection with the project;
(3) to pay the costs of maintaining the project in good repair
and keeping it properly insured, unless the financing agreement
obligates the company to pay for the maintenance and insurance
of the project.
Section 13-21-180. The proceeds from the sale of any bonds
issued under authority of this chapter may be applied only for the
purpose for which the bonds were issued, except any premium and
accrued interest received in any sale must be applied to the
payment of the principal of or the interest on the bonds sold, and
if for any reason any portion of the proceeds are not needed for
the purpose for which the bonds were issued, that portion of the
proceeds must be applied to the payment of the principal of or the
interest on the bonds:
(1) the actual cost of the construction of any part of a project,
including architects', engineers', and attorneys' fees;
(2) the purchase price of any part of any project that may be
acquired by purchase;
(3) all expenses in connection with the authorization, sale, and
issuance of the bonds to finance the acquisition;
(4) the interest on the bonds for a reasonable time prior to
construction and for not exceeding one year after completion of
the construction.
Section 13-21-190. The regulations of the authority must be
promulgated in accordance with Chapter 23 of Title 1.
Section 13-21-200. The authority may establish profit or
not-for-profit corporations as the authority considers necessary to
carry out the purposes of this chapter. Officials or employees of
the authority may act as officials or employees of any such
corporations created pursuant to this section without additional
compensation. Any corporations created pursuant to this section
are considered to be `public procurement units' for purposes of
Article 19, Chapter 35 of Title 11.
The authority may make grants or loans to, or make guarantees
for, the benefit of a not-for-profit corporation which the authority
has caused to be formed whose articles of incorporation require
that its directors be elected by members of the authority and all
assets of which, upon dissolution, must be distributed to the
authority if it is in existence, or, if it is not in existence, then to
this State.
These grants, loans, or guarantees may be made upon a
determination by the authority that the receiving not-for-profit
corporation is able to carry out the purposes of this chapter and on
the terms and conditions imposed by the authority.
A guarantee made by the authority does not create an obligation
of the State or its political subdivisions and is not a grant or loan
of the credit of the State or a political subdivision. A guarantee
issued by the authority must be a special obligation of the
authority. Neither this State nor any political subdivision is liable
on a guarantee nor may they be payable out of any funds other
than those of the authority and a guarantee issued by the authority
must contain on its face a statement to that effect.
Section 13-21-210. The property of the authority is not subject
to any taxes or assessments, but the authority shall negotiate a
payment in lieu of taxes with the appropriate taxing
authorities.
Section 13-21-220. Notwithstanding any provision of law or
regulation, the authority continues to be an `agency' for purposes
of Chapter 78 of Title 15; however, the authority is not considered
to be an `agency' or `state agency' or any other form of state
institution for purposes of Sections 2-7-65 and 2-57-60.
Section 13-21-230. If any term or provision of this chapter is
found to be illegal or unenforceable, the remainder of this chapter
nonetheless remains in full force and effect and the illegal or
unenforceable term or provision is deleted and severed from this
chapter."
Provision not to effect electricity
SECTION 6. Nothing in this act may be construed to provide for
the regulation of the generation, transmission, distribution, or
provision of electricity at wholesale, retail, or in any other
capacity. The provisions of this act shall not modify or abridge
the rights, duties, and privileges of electric suppliers, electrical
utilities, municipal electric utilities, or governmental entities
(supplying electricity) under any state statute including, but not
limited to, Title 58, Chapter 27 and Section 5-7-60.
Nothing in this act may be construed to allow the exercise of
the right of eminent domain for the condemnation of property
used for the generation, transmission, and\or distribution of
electricity at wholesale or retail.
Nothing in this act may be construed to authorize a joint or
cooperative agreement with the federal or state government or any
political subdivision of the state affecting or relating to the
regulation of the generation, transmission and/or distribution of
electricity at wholesale or retail.
Severability
SECTION 7. If a term or provision of a section of this act is
found to be illegal or unenforceable, the remainder of this act
nonetheless remains in full force and effect and the illegal or
unenforceable term or provision is deleted and severed from this
act.
Time effective
SECTION 8. Upon approval by the Governor, unless otherwise
specified in this act, this act shall take effect July 1, 1992.
Approved the 1st day of September, 1992. |