H*4873 Session 109 (1991-1992)
H*4873(Rat #0604, Act #0518 of 1992) General Bill, By S.E. Gonzales, Bailey,
J.J. Bailey, R.A. Barber, H. Brown, R.C. Fulmer, H.M. Hallman, D.N. Holt,
Inabinett, D.E. Martin, J. Rama, L.S. Whipper, D. Williams, J.B. Williams,
S.S. Wofford, Young-Brickell and R.M. Young
A Bill to amend the Code of Laws of South Carolina, 1976, by adding Chapter 12
to Title 13 so as to create the Trident Economic Development Finance Authority
and provide for implementation of the Chapter, for approval of the Authority
by the qualified electors of Berkeley, Charleston, and Dorchester counties,
and application of the Act.-amended title
05/21/92 House Introduced, read first time, placed on calendar
without reference HJ-3
05/21/92 House Unanimous consent for second reading on next
legislative day HJ-4
05/22/92 House Read second time HJ-42
05/26/92 House Debate adjourned until Wednesday, May 27, 1992 HJ-3
05/27/92 House Amended HJ-16
05/27/92 House Read third time and sent to Senate HJ-27
05/27/92 Senate Introduced, read first time, placed on calendar
without reference SJ-22
06/02/92 Senate Read second time SJ-59
06/02/92 Senate Ordered to third reading with notice of
amendments SJ-59
06/03/92 Senate Amended SJ-61
06/03/92 Senate Read third time and returned to House with
amendments SJ-70
06/04/92 House Senate amendment amended HJ-35
06/04/92 House Returned to Senate with amendments HJ-35
06/04/92 Senate Concurred in House amendment and enrolled SJ-126
06/04/92 Ratified R 604
09/02/92 Signed By Governor
09/02/92 Effective date 09/02/92
09/02/92 Act No. 518
09/02/92 See act for exception to or explanation of
effective date
10/06/92 Copies available
(R604, H4873)
AN ACT TO AMEND THE CODE OF LAWS OF SOUTH
CAROLINA, 1976, BY ADDING CHAPTER 12 TO TITLE 13 SO AS
TO CREATE THE TRIDENT ECONOMIC DEVELOPMENT FINANCE
AUTHORITY AND PROVIDE FOR IMPLEMENTATION OF THE
CHAPTER, FOR APPROVAL OF THE AUTHORITY BY THE
QUALIFIED ELECTORS OF BERKELEY, CHARLESTON, AND
DORCHESTER COUNTIES, AND APPLICATION OF THE ACT.
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 4,000 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. Now, therefore,
Be it enacted by the General Assembly of the State of South Carolina:
Trident Economic Development Finance 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 elect
two members of the board and the governing body of Charleston County
shall elect 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 election. The authority is a
local political subdivision as contemplated by Section 11-35-310(18).
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 Board of State 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 elected
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), 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 tax 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;
(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 or 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 to be issued and the
method to be provided for their payment;
(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. 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.
Approval by the qualified electors
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
Board of State Canvassers, this act shall be implemented on the date on
which written evidence of this fact is transmitted to the Secretary of
State.
Application of threat
SECTION 4. 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.
Time effective
SECTION 5. Except as otherwise specified in this act, this act takes
effect upon approval by the Governor.
In the Senate House June 4, 1992.
Nick A. Theodore,
President of the Senate
Robert J. Sheheen,
Speaker of the House of
Representatives
Approved the 2nd day of September, 1992.
Carroll A. Campbell, Jr.,
Governor
Printer's Date -- September 22, 1992 -- S.
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