H*3665 Session 112 (1997-1998)
H*3665(Rat #0264, Act #0148 of 1997) General Bill, By House Ways and Means
Similar(H 3611)
A BILL TO AMEND TITLE 11, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO
PUBLIC FINANCE, BY ADDING CHAPTER 43 ENACTING THE "SOUTH CAROLINA
TRANSPORTATION INFRASTRUCTURE BANK ACT" SO AS TO ESTABLISH THE SOUTH CAROLINA
TRANSPORTATION INFRASTRUCTURE BANK ACT AND TO PROVIDE FOR ITS GOVERNANCE,
POWERS, AND DUTIES; TO AUTHORIZE THE BANK TO PROVIDE LOANS AND OTHER FINANCIAL
ASSISTANCE TO GOVERNMENT UNITS AND PRIVATE ENTITIES TO FINANCE PUBLIC HIGHWAY
AND TRANSIT PROJECTS; TO AUTHORIZE THE BOARD OF THE BANK TO FUND THE BANK WITH
UP TO THREE PERCENT OF FUNDS APPROPRIATED FOR THE CONSTRUCTION AND MAINTENANCE
OF STATE HIGHWAYS; TO ALLOW FEDERAL GRANTS, LOAN REPAYMENTS, AND OTHER
AVAILABLE AMOUNTS TO BE CREDITED TO THE BANK; TO AUTHORIZE LENDING TO AND
BORROWING BY GOVERNMENT UNITS AND PRIVATE ENTITIES THROUGH THE BANK; TO
AUTHORIZE THE ISSUANCE OF TRANSPORTATION INFRASTRUCTURE BANK REVENUE BONDS; TO
AUTHORIZE THE ISSUANCE OF TRANSPORTATION INFRASTRUCTURE BANK GENERAL
OBLIGATION BONDS; TO AMEND SECTION 57-3-615, AS AMENDED, RELATING TO TOLL
PROJECTS, SO AS TO PROVIDE THAT NO TOLL MAY BE IMPOSED ON FEDERAL INTERSTATE
HIGHWAYS IN EXISTENCE ON JANUARY 1, 1997, UNLESS APPROVED BY THE GENERAL
ASSEMBLY IN SEPARATE LEGISLATION; TO AMEND SECTION 56-3-910, AS AMENDED,
RELATING TO DISPOSITION OF CERTAIN FEES AND PENALTIES RELATING TO THE
REGISTRATION OF TRUCKS, SO AS TO PROVIDE FOR THE PLACEMENT OF FIFTY PERCENT OF
THE FEES AND PENALTIES IN THE SOUTH CAROLINA TRANSPORTATION INFRASTRUCTURE
BANK IN FISCAL YEAR 1998-99 AND ONE HUNDRED PERCENT THEREAFTER.-AMENDED TITLE
03/18/97 House Introduced, read first time, placed on calendar
without reference HJ-3
03/19/97 House Requests for debate-Rep(s). Harrell, H. Brown,
Kelley, Felder, Sharpe, Young-Brickell,
Witherspoon, Edge, R. Smith, McLeod, Mason,
Keegan, Altman & Robinson HJ-35
03/25/97 House Amended HJ-49
03/25/97 House Debate interrupted HJ-70
03/26/97 House Amended HJ-19
03/26/97 House Read second time HJ-56
03/26/97 House Roll call Yeas-83 Nays-37 HJ-56
04/01/97 House Read third time and sent to Senate HJ-35
04/02/97 Senate Introduced and read first time SJ-8
04/02/97 Senate Referred to Committee on Transportation SJ-8
05/08/97 Senate Committee report: Majority favorable with amend.,
minority unfavorable Transportation SJ-6
05/21/97 Senate Read second time SJ-38
05/21/97 Senate Ordered to third reading with notice of
amendments SJ-38
05/27/97 Senate Special order SJ-51
05/28/97 Senate Amended SJ-23
05/28/97 Senate Read third time and returned to House with
amendments SJ-45
06/04/97 House Non-concurrence in Senate amendment HJ-22
06/04/97 Senate Senate insists upon amendment and conference
committee appointed Sens. Land, Rankin, Ravenel SJ-24
06/04/97 House Conference committee appointed Reps. Robinson,
Vaughn & Kelley HJ-142
06/17/97 House Conference report received and adopted HJ-122
06/17/97 Senate Conference report received and adopted SJ-65
06/17/97 House Ordered enrolled for ratification HJ-203
06/18/97 Ratified R 264
06/26/97 Signed By Governor
06/26/97 Effective date 06/26/97 except that the
provisions of Section 4 are effective 07/01/98
07/09/97 Copies available
07/09/97 Act No. 148
(A148, R264, H3665)
AN ACT TO AMEND TITLE 11, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO PUBLIC FINANCE BY ADDING
CHAPTER 43 ENACTING THE SOUTH CAROLINA
TRANSPORTATION INFRASTRUCTURE BANK ACT, SO AS TO
ESTABLISH THE SOUTH CAROLINA TRANSPORTATION
INFRASTRUCTURE BANK ACT AND TO PROVIDE FOR ITS
GOVERNANCE, POWERS, AND DUTIES; TO AUTHORIZE THE
BANK TO PROVIDE LOANS AND OTHER FINANCIAL
ASSISTANCE TO GOVERNMENT UNITS AND PRIVATE ENTITIES
TO FINANCE PUBLIC HIGHWAY AND TRANSIT PROJECTS; TO
AUTHORIZE THE BOARD OF THE BANK TO FUND THE BANK
WITH UP TO THREE PERCENT OF FUNDS APPROPRIATED FOR
THE CONSTRUCTION AND MAINTENANCE OF STATE
HIGHWAYS; TO ALLOW FEDERAL GRANTS, LOAN
REPAYMENTS, AND OTHER AVAILABLE AMOUNTS TO BE
CREDITED TO THE BANK; TO AUTHORIZE LENDING TO AND
BORROWING BY GOVERNMENT UNITS AND PRIVATE ENTITIES
THROUGH THE BANK; TO AUTHORIZE THE ISSUANCE OF
TRANSPORTATION INFRASTRUCTURE BANK REVENUE
BONDS; TO AUTHORIZE THE ISSUANCE OF TRANSPORTATION
INFRASTRUCTURE BANK GENERAL OBLIGATION BONDS; TO
AMEND SECTION 57-3-615, AS AMENDED, RELATING TO TOLL
PROJECTS, SO AS TO PROVIDE THAT NO TOLL MAY BE
IMPOSED ON FEDERAL INTERSTATE HIGHWAYS IN EXISTENCE
ON JANUARY 1, 1997, UNLESS APPROVED BY THE GENERAL
ASSEMBLY IN SEPARATE LEGISLATION; TO AMEND SECTION
56-3-910, AS AMENDED, RELATING TO DISPOSITION OF
CERTAIN FEES AND PENALTIES RELATING TO THE
REGISTRATION OF TRUCKS, SO AS TO PROVIDE FOR THE
PLACEMENT OF FIFTY PERCENT OF THE FEES AND PENALTIES
IN THE SOUTH CAROLINA TRANSPORTATION
INFRASTRUCTURE BANK IN FISCAL YEAR 1998-99 AND ONE
HUNDRED PERCENT THEREAFTER.
Be it enacted by the General Assembly of the State of South Carolina:
Findings
SECTION 1. The General Assembly finds that:
(1) Adequate transportation facilities are an important element in the
ability of a community to provide for the health and welfare of its citizens
and the continuing economic growth and development that will provide
jobs for the citizens of South Carolina.
(2) Traditional transportation financing methods in South Carolina
cannot generate the resources necessary to fund the cost of transportation
facilities which are required for continued economic viability and future
economic expansion.
(3) The State of South Carolina has the ability to provide for
alternative methods of financing highway and transportation projects
which, when combined with existing financing sources and methods, will
allow the State to address its transportation needs in a more timely and
responsive manner.
(4) Loans and other financial assistance to government units and
private entities can play an important part in meeting transportation needs.
This assistance is in the public interest for the public benefit and good as
a matter of legislative intent.
(5) The chapter provides an instrumentality to assist government units
and private entities in constructing and improving highway and
transportation facilities by providing loans and other financial assistance.
(6) It is the General Assembly's intent for the instrumentality created
by this act to focus greater attention on larger transportation projects, and
thereby allow the South Carolina Department of Transportation's
resources to be devoted sooner to smaller, but yet important, rural
transportation projects.
Transportation Infrastructure Bank Act
SECTION 2. Title 11 of the 1976 Code is amended by adding:
"CHAPTER 43
South Carolina Transportation Infrastructure Bank Act
Article 1
South Carolina Transportation Infrastructure Bank
Section 11-43-110. This chapter may be referred to as the 'South
Carolina Transportation Infrastructure Bank Act.'
Section 11-43-120. (A) There is created a body corporate and politic
and an instrumentality of the State to be known as the South Carolina
Transportation Infrastructure Bank.
(B) The bank is governed by a board of directors as provided in this
chapter.
(C) The corporate purpose of the bank is to select and assist in
financing major qualified projects by providing loans and other financial
assistance to government units and private entities for constructing and
improving highway and transportation facilities necessary for public
purposes including economic development. The exercise by the bank of
a power conferred in this chapter is an essential public function.
(D) The bank shall establish and maintain at least the four following
accounts: state highway account, state transit account, federal highway
account, and federal transit account.
Section 11-43-130. As used in this chapter unless the context clearly
indicates otherwise:
(1) 'Bank' means the South Carolina Transportation Infrastructure
Bank.
(2) 'Board' means the board of directors of the bank.
(3) 'Bonds' means bonds, notes, or other evidence of indebtedness
except as otherwise provided in Article 3 of this chapter.
(4) 'Department of Transportation' means the South Carolina
Department of Transportation and its successors.
(5) 'Eligible cost' means as applied to a qualified project to be
financed from the federal accounts, the costs that are permitted under
applicable federal laws, requirements, procedures, and guidelines in
regard to establishing, operating, and providing assistance from the bank.
As applied to a qualified project to be financed from the state highway
account, these costs include the costs of preliminary engineering, traffic
and revenue studies, environmental studies, right-of-way acquisition, legal
and financial services associated with the development of the qualified
project, construction, construction management, facilities, and other costs
necessary for the qualified project. As applied to any qualified project to
be financed from the state transit account, eligible project costs are limited
to capital expenditures for transit equipment and facilities.
(6) 'Eligible project' means a highway, including bridges, or transit
project which provides public benefits by either enhancing mobility and
safety, promoting economic development, or increasing the quality of life
and general welfare of the public.
(7) 'Federal accounts' means collectively, the separate account for
federal highway funds and federal transit funds.
(8) 'Financing agreement' means any agreement entered into between
the bank and a qualified borrower pertaining to a loan or other financial
assistance. This agreement may contain, in addition to financial terms,
provisions relating to the regulation and supervision of a qualified project,
or other provisions as the board may determine. The term 'financing
agreement' includes, without limitation, a loan agreement, trust indenture,
security agreement, reimbursement agreement, guarantee agreement, bond
or note, ordinance or resolution, or similar instrument.
(9) 'Government unit' means a municipal corporation, county, special
purpose district, special service district, commissioners of public works,
or another public body, instrumentality or agency of the State including
combinations of two or more of these entities acting jointly to construct,
own, or operate a qualified project, and any other state or local authority,
board, commission, agency, department, or other political subdivision
created by the General Assembly or pursuant to the Constitution and laws
of this State which may construct, own, or operate a qualified project.
(10) 'Loan' means an obligation subject to repayment which is provided
by the bank to a qualified borrower for all or a part of the eligible cost of
a qualified project. A loan may be disbursed in anticipation of
reimbursement for or direct payment of eligible costs of a qualified
project.
(11) 'Loan obligation' means a bond, note, or other evidence of an
obligation issued by a qualified borrower.
(12) 'Other financial assistance' means, but is not limited to, grants,
contributions, credit enhancement, capital or debt reserves for bonds or
debt instrument financing, interest rate subsidies, provision of letters of
credit and credit instruments, provision of bond or other debt financing
instrument security, and other lawful forms of financing and methods of
leveraging funds that are approved by the board, and in the case of federal
funds, as allowed by federal law.
(13) 'Private entity' means a private person or entity that has entered
into a contract with a government unit to design, finance, construct, and
operate a highway, bridge, tunnel, or approach that is within the
jurisdiction of the government unit that is responsible for complying with
applicable federal requirements.
(14) 'Project revenues' means all rates, rents, fees, assessments, charges,
and other receipts derived or to be derived by a qualified borrower from
a qualified project or made available from a special source, and, as
provided in the applicable financing agreement, derived from any system
of which the qualified project is a part of, from any other revenue
producing facility under the ownership or control of the qualified
borrower including, without limitation, proceeds of grants, gifts,
appropriations and loans, including the proceeds of loans made by the
bank, investment earnings, reserves for capital and current expenses,
proceeds of insurance or condemnation and proceeds from the sale or
other disposition of property and from any other special source as may be
provided by the qualified borrower.
(15) 'Qualified borrower' means any government unit or private entity
which is authorized to construct, operate, or own a qualified project.
(16) 'Qualified project' means an eligible project which has been
selected by the bank to receive a loan or other financial assistance from
the bank to defray an eligible cost.
(17) 'Revenues' means, when used with respect to the bank, any
receipts, fees, income, or other payments received or to be received by the
bank including, without limitation, receipts and other payments deposited
in the bank and investment earnings on its funds and accounts.
(18) 'State accounts' means, collectively, the separate account for state
highway funds and state transit funds.
Section 11-43-140. The board of directors is the governing board of
the bank. The board consists of seven voting directors as follows: the
Chairman of the Department of Transportation Commission, ex officio;
one director appointed by the Governor who shall serve as chairman; one
director appointed by the Governor; one director appointed by the
Speaker of the House of Representatives; one member of the House of
Representatives appointed by the Speaker, ex officio; one director
appointed by the President Pro Tempore of the Senate; and one member
of the Senate appointed by the President Pro Tempore of the Senate, ex
officio. Directors appointed by the Governor, the Speaker, and the
President Pro Tempore shall serve terms coterminous with those of their
appointing authority. The terms for the legislative members are
coterminous with their terms of office. The vice chairman must be elected
by the board. Any person appointed to fill a vacancy must be appointed
in the same manner as the original appointee for the remainder of the
unexpired term.
Section 11-43-150. (A) In addition to the powers contained
elsewhere in this chapter, the bank has all power necessary, useful, or
appropriate to fund, operate, and administer the bank, and to perform its
other functions including, but not limited to, the power to:
(1) have perpetual succession;
(2) adopt, promulgate, amend, and repeal bylaws, not inconsistent
with provisions in this chapter for the administration of the bank's affairs
and the implementation of its functions including the right of the board to
select qualifying projects and to provide loans and other financial
assistance;
(3) sue and be sued in its own name;
(4) have a seal and alter it at its pleasure, although the failure to
affix the seal does not affect the validity of an instrument executed on
behalf of the bank;
(5) make loans to qualified borrowers to finance the eligible costs
of qualified projects and to acquire, hold, and sell loan obligations at
prices and in a manner as the board determines advisable;
(6) provide qualified borrowers with other financial assistance
necessary to defray eligible costs of a qualified project;
(7) enter into contracts, arrangements, and agreements with
qualified borrowers and other persons and execute and deliver all
financing agreements and other instruments necessary or convenient to the
exercise of the powers granted in this chapter;
(8) enter into agreements with a department, agency, or
instrumentality of the United States or of this State or another state for the
purpose of planning and providing for the financing of qualified projects;
(9) establish:
(a) policies and procedures for the making and administering of
loans and other financial assistance; and
(b) fiscal controls and accounting procedures to ensure proper
accounting and reporting by the bank, government units, and private
entities;
(10) acquire by purchase, lease, donation, or other lawful means and
sell, convey, pledge, lease, exchange, transfer, and dispose of all or any
part of its properties and assets of every kind and character or any interest
in it to further the public purpose of the bank;
(11) procure insurance, guarantees, letters of credit, and other forms
of collateral or security or credit support from any public or private entity,
including any department, agency, or instrumentality of the United States
or this State, for the payment of any bonds issued by it, including the
power to pay premiums or fees on any insurance, guarantees, letters of
credit, and other forms of collateral or security or credit support;
(12) collect or authorize the trustee under any trust indenture
securing any bonds to collect amounts due under any loan obligations
owned by it, including taking the action required to obtain payment of any
sums in default;
(13) unless restricted under any agreement with holders of bonds,
consent to any modification with respect to the rate of interest, time, and
payment of any installment of principal or interest, or any other term of
any loan obligations owned by it;
(14) borrow money through the issuance of bonds and other forms
of indebtedness as provided in this chapter;
(15) expend funds to obtain accounting, management, legal, financial
consulting, and other professional services necessary to the operations of
the bank;
(16) expend funds credited to the bank as the board determines
necessary for the costs of administering the operations of the bank;
(17) establish advisory committees as the board determines
appropriate, which may include individuals from the private sector with
banking and financial expertise;
(18) procure insurance against losses in connection with its property,
assets, or activities including insurance against liability for its acts or the
acts of its employees or agents or to establish cash reserves to enable it to
act as a self-insurer against any and all such losses;
(19) collect fees and charges in connection with its loans or other
financial assistance;
(20) apply for, receive and accept from any source, aid, grants, and
contributions of money, property, labor, or other things of value to be
used to carry out the purposes of this chapter subject to the conditions
upon which the aid, grants, or contributions are made;
(21) enter into contracts or agreements for the servicing and
processing of financial agreements; and
(22) do all other things necessary or convenient to exercise powers
granted or reasonably implied by this chapter.
(B) The bank is not authorized or empowered to be or to constitute a
bank or trust company within the jurisdiction or under the control of the
State or an agency of it or the Comptroller of the Currency or the Treasury
Department of the United States, or a bank, banker, or dealer in securities
within the meaning of, or subject to the provisions of, any securities,
securities exchange, or securities dealers' law of the United States or this
State.
Section 11-43-160. (A) The following sources may be used to
capitalize the bank and for the bank to carry out its purposes:
(1) an annual contribution set by the board of up to three percent of
the funds appropriated for the construction and maintenance of state
highways, however, the contribution must be used to match federal
capitalization grants to the bank and to provide capital for the state
accounts of the bank;
(2) federal funds made available to the State;
(3) federal funds made available to the State for the bank;
(4) contributions and donations from government units, private
entities, and any other source as may become available to the bank
including, but not limited to, appropriations from the General Assembly;
(5) all monies paid or credit to the bank, by contract or otherwise,
payments of principal and interest on loans or other financial assistance
made from the bank, and interest earnings which may accrue from the
investment or reinvestment of the bank's monies;
(6) proceeds from the issuance of bonds as provided in this chapter;
(7) other lawful sources as determined appropriate by the board;
and
(8) loans from the Department of Transportation to the bank to be
repaid from revenues committed to the bank for the following year.
(B) Beginning in fiscal year 1998-99, the revenues collected pursuant
to Sections 56-3-660 and 56-3-670 and placed in the state highway
account, as created by this chapter, must be used to provide capital for the
bank.
Section 11-43-170. (A) Earnings on balances in the federal accounts
must be credited and invested according to federal law. Earnings on state
accounts must be credited to the state highway account or state transit
account that generates the earnings. The bank may establish accounts and
subaccounts within the state accounts and federal accounts as considered
desirable to effectuate the purposes of this chapter, or to meet the
requirements of any state or federal programs. All accounts must be held
in trust by the State Treasurer.
(B) For necessary and convenient administration of the bank, the board
shall direct the State Treasurer to establish federal and state accounts and
subaccounts within the bank necessary to meet any applicable federal law
requirements or as the bank shall determine necessary or desirable in
order to implement the provisions of this chapter.
(C) The bank shall comply with all applicable federal laws and
regulations prohibiting the commingling of certain federal funds deposited
in the bank.
Section 11-43-180. (A) The bank may provide loans and other
financial assistance to a government unit or private entity to pay for all or
part of the eligible cost of a qualified project. Prior to providing a loan or
other financial assistance to a qualified borrower, the board must obtain
the review and approval of the Joint Bond Review Committee. The term
of the loan or other financial assistance must not exceed the useful life of
the project. The bank may require the government unit or private entity
to enter into a financing agreement in connection with its loan obligation
or other financial assistance. The board shall determine the form and
content of loan applications, financing agreements, and loan obligations
including the term and rate or rates of interest on a financing agreement.
The terms and conditions of a loan or other financial assistance from
federal accounts shall comply with applicable federal requirements.
(B) The board shall determine which projects are eligible projects and
then select from among the eligible projects those qualified to receive
from the bank a loan or other financial assistance. Preference must be
given to eligible projects which have local financial support. In selecting
qualified projects, the board shall consider the projected feasibility of the
project and the amount and degree of risk to be assumed by the bank. The
board also may consider, but must not be limited to, the following criteria
in making its determination that an eligible project is a qualified project:
(1) the local support of the project, expressed by resolutions by the
governing bodies in the areas in which the project will be located, and the
financial or in-kind contributions to the project;
(2) maximum economic benefit, enhancement of mobility,
enhancement of public safety, acceleration of project completion, and
enhancement of transportation services;
(3) the ability of the applicant to repay a loan according to the terms
and conditions established pursuant to this chapter, consideration of which
may include, at the option of the bank board, the existence of current
investment grade rating on existing debt of the applicant secured by the
same revenues to be pledged to secure repayment under the loan
repayment agreement;
(4) the financial or in-kind contributions to the project;
(5) greater weighting in recommending priorities for eligible
projects to areas of the State experiencing high unemployment; and
(6) whether the governing bodies of the county or the incorporated
municipality in which the project is to be located provides to the bank a
resolution which makes a finding that the project is essential to economic
development in the political subdivisions, or the bank receives a
resolution or certificate from the Advisory Coordinating Council for
Economic Development of the Department of Commerce that the project
is essential to economic development in the State, or both, at the option
of the board.
Section 11-43-190. (A) Qualified borrowers are authorized to obtain
loans or other financial assistance from the bank through financing
agreements. Qualified borrowers entering into financing agreements and
issuing loan obligations to the bank may perform any acts, take any
action, adopt any proceedings, and make and carry out any contracts or
agreements with the bank as may be agreed to by the bank and any
qualified borrower for the carrying out of the purposes contemplated by
this chapter.
(B) In addition to the authorizations contained in this chapter, all other
statutes or provisions permitting government units to borrow money and
issue obligations including, but not limited to, the Revenue Bond Act for
Utilities and the Revenue Bond Refinancing Act of 1937, may be utilized
by any government unit in obtaining a loan or other financial assistance
from the bank to the extent determined necessary or useful by the
government unit in connection with any financing agreement and the
issuance, securing, or sale of loan obligations to the bank.
Notwithstanding the foregoing, obligations secured by ad valorem taxes
may be issued by a government unit and purchased by the bank without
regard to any public bidding requirement.
(C) A qualified borrower may receive, apply, pledge, assign, and grant
security interest in project revenues, and, in the case of a governmental
unit, its project revenues, revenues derived from a special source or ad
valorem taxes, to secure its obligations as provided in this chapter, and
may fix, revise, charge, and collect fees, rates, rents, assessments, and
other charges of general or special application for the operation or
services of a qualified project, the system of which it is a part, and any
other revenue producing facilities from which the qualified borrower
derives project revenues, to meet its obligations under a financing
agreement or to provide for the construction and improving of a qualified
project.
(D) A qualified borrower must comply with the provisions of Section
12-27-1320 and Section 12-28-2930 in the expenditure of the proceeds of
a loan or other financial assistance provided by the bank for a qualified
project.
Section 11-43-200. The bank is performing an essential
governmental function in the exercise of the powers conferred upon it and
is not required to pay taxes or assessments upon property or upon its
operations or the income from them, or taxes or assessments upon
property or loan obligations acquired or used by the bank or upon the
income from them.
Section 11-43-210. (A) If a government unit fails to collect and
remit in full all amounts due to the bank on the date these amounts are due
under the terms of any note or other obligation of the government unit, the
bank shall notify the State Treasurer who, subject to the withholding of
amounts under Article X, Section 14 of the Constitution, shall withhold
all or a portion of the funds of the State and all funds administered by the
State, its agencies, boards, and instrumentalities allotted or appropriated
to the government unit and apply an amount necessary to the payment of
the amount due.
(B) Nothing contained in this section mandates the withholding of
funds allocated to a government unit or private entity which would violate
contracts to which the State is a party, the requirements of federal law
imposed on the State, or judgments of a court binding on the State.
Section 11-43-220. Neither the board nor any officer, employee, or
committee of the bank acting on behalf of it, while acting within the scope
of this authority, is subject to any liability resulting from carrying out any
of the powers given in this chapter.
Section 11-43-230. Notice, proceeding, or publication, except those
required in this chapter, are not necessary to the performance of any act
authorized in this chapter nor is any act of the bank subject to any
referendum.
Section 11-43-240. All money of the bank, except as authorized by
law or provided in this chapter, must be deposited with and invested by
the State Treasurer. Funds of the bank not needed for immediate use or
disbursement may be invested by the State Treasurer in obligations or
securities which are declared to be legal obligations by the provisions of
Section 11-9-660. All federal funds must be invested as required by
applicable federal law.
Section 11-43-250. Following the close of each state fiscal year, the
bank shall submit an annual report of its activities for the preceding year
to the Governor and to the General Assembly. The bank also shall submit
an annual report to the appropriate federal agency in accordance with
requirements of any federal program. An independent certified public
accountant shall perform an audit of the books and accounts of the bank
at least once in each state fiscal year.
Section 11-43-260. This chapter, being for the welfare of this State
and its inhabitants, must be liberally construed to effect the purposes
specified in this chapter. However, nothing in this chapter must be
construed as affecting any proceeding, notice, or approval required by law
for the issuance by a government unit or private entity of the loan
obligations, instruments, or security for loan obligations.
Section 11-43-270. If any provision of this chapter is held or
determined to be unconstitutional, invalid, or otherwise unenforceable by
a court of competent jurisdiction, it is the intention of the General
Assembly that the provision is severable from the remaining provisions
of the chapter and that the holding does not invalidate or render
unenforceable another provision of the chapter.
Article 3
South Carolina Transportation Infrastructure Bank Revenue
Bonds
Section 11-43-310. As used in this article, unless a different meaning
clearly appears from the context:
(1) 'Bank' means the South Carolina Transportation Infrastructure
Bank.
(2) 'Bonds' means any bonds, notes, debentures, interim certificates,
grant or revenue anticipation notes, or any other evidence of indebtedness
of the bank incurred pursuant to this article.
Section 11-43-315. Whenever it shall become necessary that monies
be raised for qualified projects, including monies to be used to refund any
bonds then outstanding, the bank may issue bonds as provided in this
article. The review and approval of the Joint Bond Review Committee
must be obtained prior to the issuance of the bonds.
Section 11-43-320. The bank may pledge any of its revenue or funds
to the payment of its bonds, subject only to any prior agreements with the
holders of particular bonds which may have pledged specific money or
revenue. Bonds may be secured by a pledge of any loan obligation owned
by the bank, any grant, contribution, or guaranty from the United States,
the State, or any corporation, association, institution, or person, any other
property or assets of the bank, or a pledge of any money, income, or
revenue of the bank from any source.
Section 11-43-330. Bonds issued by the bank do not constitute a debt
or a pledge of the full faith and credit of this State, or any of its political
subdivisions other than the bank, but are payable solely from the revenue,
money, or property of the bank as provided in this chapter. The bonds
issued do not constitute an indebtedness of the State within the meaning
of any constitutional or statutory limitation. No member of the bank or
any person executing bonds of the bank is liable personally on the bonds
by reason of their issuance or execution. Each bond issued under this
article must contain on its face a statement to the effect that:
(1) neither the State, nor any of its political subdivisions, nor the
bank is obligated to pay the principal of or interest on the bond or other
costs incident to the bond except from the revenue, money, or property of
the bank pledged;
(2) neither the full faith and credit nor the taxing power of the State,
or any of its political subdivisions, is pledged to the payment of the
principal of or interest on the bond;
(3) the bank does not have taxing power.
Section 11-43-340. The bonds of the bank must be authorized by a
resolution of the bank. The bonds must bear the date and mature at the
time which the resolution provides, except that no bond may mature more
than forty years from its date of issue. The bonds may be in the
denominations, be executed in the manner, be payable in the medium of
payment, be payable at the place and at the time, and be subject to
redemption or repurchase and contain other provisions determined by the
bank prior to their issuance. The bonds may bear interest payable at a
time and at a rate as determined by the bank, including the determination
by agents designated by the bank under guidelines established by it.
Bonds may be sold by the bank at public or private sale at the price it
determines and approves. The State Treasurer shall issue the bonds of the
bank not later than sixty days upon the resolution of the bank authorizing
the issuance of the bonds.
Section 11-43-350. (A) Bonds may be secured by a trust indenture
between the bank and a corporate trustee, which may be the State
Treasurer or any bank having trust powers or any trust company,
designated by the State Treasurer doing business in South Carolina. A
trust indenture may contain provisions for protecting and enforcing the
rights and remedies of the bondholders which are reasonable and proper,
including covenants setting forth the duties of the bank in relation to the
exercise of its powers and the custody, safekeeping, and application of its
money. The bank may provide by the trust indenture for the payment of
the proceeds of the bonds and all or any part of the revenues of the bank
to the trustee under the trust indenture or to some other depository, and for
the method of its disbursement with safeguards and restrictions prescribed
by it. All expenses incurred in performing the obligations of the bank
under the trust indenture may be treated as part of its operating expenses.
(B) Any resolution or trust indenture pursuant to which bonds are
issued may contain provisions which are part of the contract with the
holders of the bonds as to:
(1) pledging all or any part of the revenue of the bank to secure the
payment of the bonds;
(2) pledging all or any part of the assets of the bank including loan
obligations owned by it to secure the payment of the bonds;
(3) the use and disposition of the gross income from, and payment
of the principal of, and interest on loan obligations owned by the bank;
(4) the establishment of reserves, sinking funds, and other funds and
accounts, and their regulation and disposition;
(5) limitations on the purposes to which the proceeds from the sale
of the bonds may be applied, and limitations on pledging the proceeds to
secure the payment of the bonds;
(6) limitations on the issuance of additional bonds, the terms upon
which additional bonds may be issued and secured, and the refunding of
outstanding or other bonds;
(7) the procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, the amount of bonds, if any,
the holders of which must consent to, and the manner in which any
consent may be given;
(8) limitations on the amount of money to be expended by the bank
for its operating expenses;
(9) vesting in a trustee property, rights, powers, and duties as the
bank may determine, limiting or abrogating the right of bondholders to
appoint a trustee, and limiting the rights, powers, and duties of the trustee;
(10) defining the acts or omissions which constitute a default, the
obligations or duties of the bank to the holders of the bonds, and the rights
and remedies of the holders of the bonds in the event of default, including
as a matter of right the appointment of a receiver, and all other rights
generally available to creditors;
(11) requiring the bank or the trustee under the trust indenture to take
any and all other action to obtain payment of all sums required to
eliminate any default as to any principal of and interest on loan
obligations owned by the bank or held by a trustee, which may be
authorized by the laws of this State; and
(12) any other matter relating to the terms of the bonds or the
security or protection of the holders of the bonds which may be
considered appropriate.
Section 11-43-360. Any pledge made by the bank is valid and
binding from the time the pledge is made. The revenue, money, or
property pledged and thereafter received by the bank is immediately
subject to the lien of the pledge without any physical delivery or further
act. The lien of any pledge is valid and binding as against all parties
having claims of any kind in tort, contract, or otherwise against the bank,
irrespective of whether the parties have notice of the pledge. No
recording or filing of the resolution authorizing the issuance of bonds, the
trust indenture securing the bonds, or any other instrument including
filings under the Uniform Commercial Code is necessary to create or
perfect any pledge or security interest granted by the bank to secure any
bonds, but the record of the proceedings relative to the issuance of any
bonds must be filed as prescribed by Section 11-15-20.
Section 11-43-370. The bank, subject to agreements with
bondholders as may then exist, may purchase outstanding bonds of the
bank with any available funds, at any reasonable price. If the bonds are
then redeemable, the price must not exceed the redemption price then
applicable plus accrued interest to the next interest payment date.
Section 11-43-380. Bonds of the bank must be in a form and must be
executed in a manner prescribed by the bank.
Section 11-43-390. If any of the members or officers of the bank
cease to be members before the delivery of any bonds signed by them,
their signatures or authorized facsimile signatures are nevertheless valid
and sufficient for all purposes as if they had remained in office until the
delivery of the bonds.
Section 11-43-400. Subsequent amendments to this article may not
limit the rights vested in the bank with respect to any agreements made
with, or remedies available to, the holders of bonds issued under this
article before the enactment of the amendments until the bonds, with all
premiums and interest on them, and all costs and expenses in connection
with any proceeding by or on behalf of the holders, are fully met and
discharged.
Section 11-43-410. Any bonds issued by the bank, the transfer of
bonds, and the income from them, are free from taxation and assessment
of every kind by the State and by the local governments and other
political subdivisions of the State.
Section 11-43-420. The bonds issued by the bank are legal investments
in which all public officers or public bodies of the State, its political
subdivisions, all municipalities and political subdivisions, all insurance
companies and associations and other persons carrying on insurance
business, all banks, bankers, banking associations, trust companies,
savings banks, savings associations, including savings and loan
association investment companies, and other persons carrying on a
banking business, all administrators, guardians, executors, trustees, and
other fiduciaries, and all other persons who are now or may be authorized
in the future to invest in bonds or other obligations of the State, may
invest funds in their control or belonging to them. The bonds of the bank
are also securities which may be deposited with and received by all public
officers and bodies of the State or any agency or political subdivision of
the State and all municipalities and public corporations for any purpose
for which the deposit of bonds or other obligations of the State is now or
may later be required by law.
Article 5
Transportation Infrastructure Bank General Obligation
Bonds
Section 11-43-510. As used in this article:
(1) 'Board' means the Board of Directors of the South Carolina
Transportation Infrastructure Bank.
(2) 'State board' means the State Budget and Control Board.
(3) 'Transportation infrastructure bonds' means all general obligation
bonds of this State designated as transportation infrastructure bonds,
which are now outstanding and which may hereafter be issued pursuant
to the authorizations of this article.
Section 11-43-520. Whenever it shall become necessary that monies
be raised for qualified projects, including monies to be used to refund any
transportation infrastructure bonds then outstanding, the board may make
a request to the state board for the issuance of transportation infrastructure
bonds pursuant to this article. This request may be in the form of a
resolution adopted at any regular or special meeting of the board. The
request shall set forth on the face thereof or by schedules attached thereto:
(1) the amount then required for qualified projects;
(2) a tentative time schedule setting forth the period of time during
which the sum requested will be expended; and
(3) a debt service table showing the annual principal and interest
requirements for all the transportation infrastructure bonds then
outstanding.
Section 11-43-530. Following the receipt of any request pursuant to
Section 11-43-520, the state board shall review the same and it shall
approve such request, by resolution duly adopted, to effect the issuance
of transportation infrastructure bonds, or pending the issuance thereof,
effect the issuance of bond anticipation notes pursuant to Chapter 17 of
Title 11.
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
reimburse the general fund for the principal and interest on the bonds.
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. In addition to the full faith, credit, and
taxing power, there also may be 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 same
respectively mature.
Section 11-43-560. The board is authorized to request the state board
to issue transportation infrastructure bonds. In order to effect the issuance
of bonds pursuant to this article, the state board may adopt a resolution
providing for the issuance of transportation infrastructure bonds, upon
written request by the board, and may transmit a certified copy thereof to
the Governor and to the State Treasurer, with the request that they issue
and deliver transportation infrastructure bonds in accordance with the
terms and conditions of such resolution. This resolution must set forth:
(1) the amount, denomination, and numbering of transportation
infrastructure bonds to be issued;
(2) the date as of which the same shall be issued;
(3) the maturity schedule for the retirement of the transportation
infrastructure bonds;
(4) the redemption provisions, if any, applicable to the bonds;
(5) the maximum rate or rates of interest the bonds shall bear;
(6) the purposes for which the bonds are to be issued;
(7) the occasion on which bids shall be received for the sale of the
bonds;
(8) the form of advertisement of sale;
(9) the form of the bonds of the particular issue; and
(10) such other matters as may be considered necessary in order to
effect the sale, issuance, and delivery thereof.
Section 11-43-570. Following receipt of a certified copy of the
resolution of the state board the Governor and State Treasurer shall issue
transportation infrastructure bonds in accordance with the provisions of
the resolution of the state board.
Section 11-43-580. Transportation infrastructure bonds shall be
issued in such form, in such denominations, and with such provisions as
to time, place, or places and medium of payment as may be determined by
the state board, subject to the provisions of this article.
Section 11-43-590. Transportation infrastructure bonds must be
issued as fully registered bonds with both principal and interest thereof
made payable only to the registered holder. Such fully registered bonds
are subject to transfer under such conditions as the state board prescribes.
Section 11-43-600. Transportation infrastructure bonds shall bear
interest, payable on such occasions as shall be prescribed not more than
thirty years after such date. Such installments or series may be equal or
unequal in amount. Transportation infrastructure bonds, in the discretion
of the state board, may be made subject to redemption at par and accrued
interest, plus such redemption premium as it shall approve and on such
occasions as it may prescribe. Transportation infrastructure bonds are not
redeemable before maturity unless they contain a statement to that effect.
Section 11-43-610. All transportation infrastructure bonds issued
under this article, and the interest thereon, are exempt from all state,
county, municipal, school district, and other taxes or assessments, direct
or indirect, general or special, imposed by this State, whether imposed for
the purpose of general revenue or otherwise, except inheritance, estate, or
transfer taxes.
Section 11-43-620. Transportation infrastructure bonds must be sold
by the Governor and the State Treasurer upon sealed proposals, after
publication of notice of such sale one or more times at least seven days
before such sale, in a newspaper of general circulation in the State and
also in a financial paper published in New York City which regularly
publishes notices of sale of state or municipal bonds. The bonds must be
awarded to the bidder offering to purchase the transportation
infrastructure bonds at the lowest net interest cost to the State at a price
of not less than ninety-nine percent of par and accrued interest to the date
of delivery, but the right is reserved to reject all bids and to readvertise the
bonds for sale and to waive technicalities in the bidding.
Section 11-43-630. The proceeds derived from the sale of
transportation infrastructure bonds must be applied only to the purposes
set forth in the resolution of the state board pursuant to which the bonds
are issued."
Tolls
SECTION 3. Section 57-3-615 of the 1976 Code, as last amended by
Act 52 of 1995, is further amended by adding a new paragraph at the end
to read:
"No toll may be imposed on passage of any vehicle on federal
interstate highways in this State which were in existence as of January 1,
1997, unless the imposition is otherwise affirmatively approved by the
General Assembly in separate legislation enacted solely for that
purpose."
Registration fees, penalties
SECTION 4. Section 56-3-910 of the 1976 Code, as last amended by
Act 181 of 1993, is further amended to read:
"Section 56-3-910. All fees and penalties collected by the
department under the provisions of this chapter shall be placed in the state
general fund except for fees and penalties collected pursuant to Sections
56-3-660 and 56-3-670 which must be placed in the state highway
account of the South Carolina Transportation Infrastructure Bank.
Beginning in fiscal year 1998-99, one-half of the revenues are remitted
to the bank in fiscal year 1998-99, and the entirety of the revenue is
remitted to the bank in fiscal year 1999-00 and thereafter."
Time effective
SECTION 5. This act takes effect upon approval by the Governor
except that the provisions of Section 4 are effective July 1, 1998.
Approved the 26th day of June, 1997. |