H*2608(Rat #0265, Act #0179 of 1981)  General Bill, By C.E. Hodges, Carnell and 
T.G. Mangum
 A Bill to amend Act 1377 of 1968, as amended, relating to the issuance of
 State Capital Improvement Bonds, so as to authorize the issuance of additional
 bonds; to reduce authorizations for the Department of Education and the
 Department of Mental Health; to impose requirements on governing boards or
 commissions or the Budget and Control Board and the Joint Bond Review
 Committee before permanent improvement projects authorized in Capital
 Improvement Bond Acts may be established and implemented; to require
 confirmation of the General Assembly for projects not approved for
 implementation within a certain time; to provide for deauthorization of
 projects; to require review of a detailed plan identifying sources of funds
 for project operation; to require updates of the operating cost financing plan
 and submission of advice of the updates to certain boards and committees and
 recommendation of appropriate responses to the updated plan; to require all
 state agencies and institutions to submit overall permanent improvement plans
 when seeking approval or implementation of permanent improvement projects and
 to define the content requirements of the plans; to provide that issuance
 costs shall be paid from the proceeds of the bonds and to provide for the
 allocation of the costs among agencies and institutions receiving
 authorizations; to provide that architectural and engineering study costs
 shall be contained in the project authorization; to amend Section 4-29-10, as
 amended, Code of Laws of South Carolina, 1976, relating to industrial
 development projects, so as to include within the definition of "project" any
 enterprise engaged in commercial business, including but not limited to,
 wholesale, retail or other mercantile establishments; office buildings;
 computer centers; tourism, sports and recreational facilities; convention and
 trade show facilities; and certain public lodging and restaurant facilities,
 and to define "tourism, sports and recreational facilities"; to provide that
 any portion of the definition of "project" is severable; to amend Section
 4-29-60, as amended, relating to industrial development projects, so as to
 provide that before undertaking a project the county or municipal corporation
 governing body shall find among other things that the project is anticipated
 to benefit the locality by providing services, employment, recreation or other
 public benefits not then provided; to require the State Treasurer to report to
 certain committees immediately after selling General Obligation Bonds or
 anticipation notes; to amend Act 488 of 1965, as amended, relating to student
 housing at Winthrop College, so as to provide that student housing facilities
 shall include all necessary related facilities, to increase the amount of
 bonds which may be issued and the procedure for authorizing the issuance of
 them and to eliminate a proviso requiring bonds to be issued on a parity with
 outstanding bonds; to amend the 1976 Code by adding Chapter 14 to Title 11, so
 as to provide for the defeasance of outstanding bonds, notes or other
 obligations; to amend Act 761 of 1976, as amended, relating to the Joint Bond
 Review Committee, so as to provide for four additional members; to provide for
 priorities for capital improvement projects to be funded by the issuance of
 bonds; to amend the 1976 Code by adding to Title 46 Chapter 47, the South
 Carolina State Family Farm Development Authority Act; and to amend Section
 11-35-3020, relating to competitive sealed bidding procedures, so as to
 provide that a using agency's invitation for bids shall include a requirement
 that any bidder or offeror shall set forth the name and location of the place
 of business of each subcontractor who will perform work or service to the
 prime contractor and who will fabricate and install work in amounts exceeding
 certain percentages of the contractor's total bid.-at

   03/24/81  House  Introduced and read first time HJ-1357
   03/24/81  House  Referred to Committee on Ways and Means HJ-1357
   06/25/81  House  Committee report: Favorable with amendment Ways
                     and Means HJ-3406
   06/30/81  House  Debate adjourned HJ-3470
   07/01/81  House  Debate adjourned HJ-3493
   07/08/81  House  Debate adjourned HJ-3681
   07/10/81  House  Debate adjourned HJ-3788
   07/10/81  House  Amended HJ-3797
   07/10/81  House  Read second time HJ-3856
   07/14/81  House  Debate interrupted HJ-3873
   07/15/81  House  Amended HJ-3884
   07/15/81  House  Read third time and sent to Senate HJ-3886
   07/15/81  Senate Introduced and read first time SJ-37
   07/15/81  Senate Referred to Committee on Finance SJ-37
   08/12/81  Senate Committee report: Favorable Finance SJ-4
   08/12/81  Senate Read second time SJ-5
   08/12/81  Senate Ordered to third reading with notice of amendments SJ-5
   08/13/81  Senate Amended SJ-5
   08/13/81  Senate Debate interrupted SJ-8
   08/18/81  Senate Amended SJ-3
   08/18/81  Senate  Read third time SJ-56
   08/18/81  Senate Returned SJ-56
   08/24/81  House  Non-concurrence in Senate amendment HJ-4641
   08/24/81  Senate Senate insists upon amendment and conference
                     committee appointed Sens. Waddell, Horace Smith
                     & Drummond SJ-3
   08/24/81  House  Conference committee appointed Reps. Gordon, P.B.
                     Harris & Hodges HJ-4643
   09/09/81  Senate Free conference powers granted SJ-20
   09/09/81  Senate Free conference committee appointed Sens.
                     Waddell, Horace Smith & Drummond SJ-20
   09/09/81  Senate Free conference report received SJ-20
   09/09/81  Senate Free conference report rejected SJ-20
   09/09/81  Senate Recommitted to free conference committee SJ-20
   09/16/81  House  Free conference powers granted HJ-4707
   09/16/81  House  Free conference committee appointed Reps. Gordon,
                     P.B. Harris & Hodges HJ-4708
   09/16/81  House  Free conference report received HJ-4708
   09/16/81  House  Free conference report adopted HJ-4723
   09/16/81  Senate Free conference report received SJ-9
   09/16/81  Senate Free conference report adopted SJ-9
   09/16/81  House  Ordered enrolled for ratification HJ-4729
   09/18/81  House  Ratified R 265 HJ-4735
   09/24/81         Certain items vetoed by Governor
   09/24/81  House   Veto message received HJ-4797
   09/30/81         Act No. 179
   01/20/82  House  Debate adjourned on veto consideration HJ-268
   01/21/82  House  Debate interrupted HJ-318
   01/27/82  House  Debate adjourned on veto consideration HJ-388
   01/29/82  House  Debate adjourned on veto consideration HJ-610
   02/03/82  House  Debate interrupted HJ-732
   02/04/82  House  Veto overridden on certain items: Nos. 12,12A (9/29/81)
   02/04/82  House  Veto sustained on certain items: Nos. 1-11, 13-19
   02/10/82  Senate Veto overridden on certain items: Nos. 12, 12A

Note: This Act is printed as it passed the General Assembly and was sent to the Governor.

*Items and provisos in bold face were vetoed by the Governor.

Final action by the House of Representatives has been delayed until the 1982 session.

"Items overridden by the House of Representatives, September 29, 1981.

AN ACT TO AMEND ACT 1377 OF 1968, AS AMENDED, RELATING TO THE ISSUANCE OF STATE CAPITAL IMPROVEMENT BONDS, SO AS TO AUTHORIZE THE ISSUANCE OF ADDITIONAL BONDS; TO REDUCE AUTHORIZATIONS FOR THE DEPARTMENT OF EDUCATION AND THE DEPARTMENT OF MENTAL HEALTH; TO IMPOSE REQUIREMENTS ON GOVERNING BOARDS OR COMMISSIONS OR THE BUDGET AND CONTROL BOARD AND THE JOINT BOND REVIEW COMMITTEE BEFORE PERMANENT IMPROVEMENT PROJECTS AUTHORIZED IN CAPITAL IMPROVEMENT BOND ACTS MAY BE ESTABLISHED AND IMPLEMENTED; TO REQUIRE CONFIRMATION OF THE GENERAL ASSEMBLY FOR PROJECTS NOT APPROVED FOR IMPLEMENTATION WITHIN A CERTAIN TIME; TO PROVIDE FOR DEAUTHORIZATION OF PROJECTS; TO REQUIRE REVIEW OF A DETAILED PLAN IDENTIFYING SOURCES OF FUNDS FOR PROJECT OPERATION; TO REQUIRE UPDATES OF OPERATING COST FINANCING PLAN AND SUBMISSION OF ADVICE OF THE UPDATES TO CERTAIN BOARDS AND COMMITTEES AND RECOMMENDATION OF APPROPRIATE RESPONSES TO THE UPDATED PLAN; TO REQUIRE ALL STATE AGENCIES AND INSTITUTIONS TO SUBMIT OVERALL PERMANENT IMPROVEMENT PLANS WHEN SEEKING APPROVAL OR IMPLEMENTATION OF PERMANENT IMPROVEMENT PROJECTS AND TO DEFINE THE CONTENT REQUIREMENTS OF THE PLANS; TO PROVIDE THAT ISSUANCE COSTS SHALL BE PAID FROM THE PROCEEDS OF THE BONDS AND TO PROVIDE FOR THE ALLOCATION OF THE COSTS AMONG AGENCIES AND INSTITUTIONS RECEIVING AUTHORIZATIONS; TO PROVIDE THAT ARCHITECTURAL AND ENGINEERING STUDY COSTS SHALL BE CONTAINED IN THE PROJECT AUTHORIZATION; TO AMEND SECTION 4-29-10, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INDUSTRIAL DEVELOPMENT PROJECTS, SO AS TO INCLUDE WITHIN THE DEFINITION OF "PROJECT" ANY ENTERPRISE ENGAGED IN COMMERCIAL BUSINESS, INCLUDING BUT NOT LIMITED TO, WHOLESALE, RETAIL OR OTHER MERCANTILE ESTABLISHMENTS; OFFICE BUILDINGS; COMPUTER CENTERS;

TOURISM, SPORTS AND RECREATIONAL FACILITIES; CONVENTION AND TRADE SHOW FACILITIES; AND CERTAIN PUBLIC LODGING AND RESTAURANT FACILITIES, AND TO DEFINE "TOURISM, SPORTS AND RECREATIONAL FACILITIES"; TO PROVIDE THAT ANY PORTION OF THE DEFINITION OF "PROJECT" IS SEVERABLE; TO AMEND SECTION 4-29-60, AS AMENDED, RELATING TO INDUSTRIAL DEVELOPMENT PROJECTS, SO AS TO PROVIDE THAT BEFORE UNDERTAKING A PROJECT THE COUNTY OR MUNICIPAL CORPORATION GOVERNING BODY SHALL FIND AMONG OTHER THINGS THAT THE PROJECT IS ANTICIPATED TO BENEFIT THE LOCALITY BY PROVIDING SERVICES, EMPLOYMENT, RECREATION OR OTHER PUBLIC BENEFITS NOT THEN PROVIDED; TO REQUIRE THE STATE TREASURER TO REPORT TO CERTAIN COMMITTEES IMMEDIATELY AFTER SELLING GENERAL OBLIGATION BONDS OR ANTICIPATION NOTES; TO AMEND ACT 488 OF 1965, AS AMENDED, RELATING TO STUDENT HOUSING AT WINTHROP COLLEGE, SO AS TO PROVIDE THAT STUDENT HOUSING FACILITIES SHALL INCLUDE ALL NECESSARY RELATED FACILITIES, TO INCREASE THE AMOUNT OF BONDS WHICH MAY BE ISSUED AND THE PROCEDURE FOR AUTHORIZING THE ISSUANCE OF THEM AND TO ELIMINATE A PROVISO REQUIRING BONDS TO BE ISSUED ON A PARITY WITH OUTSTANDING BONDS; TO AMEND THE 1976 CODE BY ADDING CHAPTER 14 TO TITLE 11, SO AS TO PROVIDE FOR THE DEFEASANCE OF OUTSTANDING BONDS, NOTES OR OTHER OBLIGATIONS; TO AMEND ACT 761 OF 1976, AS AMENDED, RELATING TO THE JOINT BOND REVIEW COMMITTEE, SO AS TO PROVIDE FOR FOUR ADDITIONAL MEMBERS; TO PROVIDE FOR PRIORITIES FOR CAPITAL IMPROVEMENT PROJECTS TO BE FUNDED BY THE ISSUANCE OF BONDS; TO AMEND THE 1976 CODE BY ADDING TO TITLE 46 CHAPTER 47, THE SOUTH CAROLINA STATE FAMILY FARM DEVELOPMENT AUTHORITY ACT; AND TO AMEND SECTION 11-35-3020, RELATING TO COMPETITIVE SEALED BIDDING PROCEDURES, SO AS TO PROVIDE THAT A USING AGENCY'S INVITATION FOR BIDS SHALL INCLUDE A REQUIREMENT THAT ANY BIDDER OR OFFEROR SHALL SET FORTH THE NAME AND LOCATION OF THE PLACE OF BUSINESS OF EACH SUBCONTRACTOR WHO WILL PERFORM WORK OR SERVICE TO THE PRIME CONTRACTOR AND WHO WILL FABRICATE AND INSTALL WORK IN AMOUNTS EXCEEDING CERTAIN PERCENTAGES OF THE CONTRACTOR'S TOTAL BID.

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

Findings

SECTION 1. As an incident to the enactment of this act the General Assembly has made the following findings:

Section 3 of Act 761 of 1976, as last amended by Section 10 of Part I of Act 194 of 1979, charged the joint Capital Improvement Bond Review Committee with the responsibility of studying the amount and nature of existing general and institutional bond obligations based on current and projected revenues, and gaining in-depth knowledge of capital management. The Committee was also given the mandate of recommending prudent limitations of bond obligations related to present and future revenue estimates and priorities for future bond issuance based on the social and economic needs of the State.

The joint Capital Improvement Bond Committee has studied the State's capital financing position and options with the intent of using the 1981 Bond Bill to minimize the State's cost for capital budgeting and maximizing the public's benefit. The 1982 session of the General Assembly will be used for further study with independent bond counsel and other State's fiscal officials with the intent of recommending a 1982 Bond Bill that will enhance capital management and policy in South Carolina by improving existing laws and policies, and adding new ones.

In the short run, the State's capital financing program will be severely constrained by the State's budget limitations. The costs of financing new buildings with bonds have doubled and the payback time has been halved. Each new building requires new personnel and new operating monies which must be absorbed by the State budget. Theoretically, the State could issue over a billion dollars of bonds over the next decade and remain under the statutory five percent (of prior year's revenue) limitation for debt service. However it is unlikely that the State's budget could afford the thirteen to eighteen million dollars a year increase required for this debt service, or the attendant increase in annual operating costs. Debts incurred will need to go to the renovations and improvements of existing buildings so that new personnel and operating budgets will not be required, and major renovations and replacement buildings won't be necessary in the long run.

The joint Bond Review Committee has recommended in the 1981 Bond Bill projects that are renovations and/or improvements of

existing state capital, and supplements to ongoing capital projects. The few new facilities recommended are necessary or have significant social or economic implications. All of the authorizations to the colleges and universities will be reduced, sometimes completely, because of a new proviso that would require these institutions to use their own debt service capacities to the fullest extent possible. The Committee also recommends a proviso which would ensure that the debt service increases be related to the available revenue, and that no project requiring additional general fund appropriations for operations be started without specific approval of the Budget and Control Board and the joint Bond Review Committee. Those projects that do require additional appropriations will be delayed until the necessary funds are identified. As a part of the ongoing bond process every project request must now include a detailed five year operations and personnel projection. Another new proviso would require a detailed five year biennially updated capital plan from every agency or institution requesting bond authorizations from the legislature. These plans will assist the General Assembly in formulating a comprehensive economic and social development strategy maximizing the impact of and benefit from the use of public funds for capital investment.

The Committee has amended the Industrial Development Bond Act in order to activate private actions and induce private investment in the State, as recommended by capital financing literature. Since the enactment of the Industrial Development Bond Act in 1967 other states have enacted legislation permitting political subdivisions to use revenue bond financing to induce a wide variety of commercial and recreational enterprises to locate such enterprises in those states. Such legislation gives other states an advantage over South Carolina in inducing such enterprises to locate therein.

It is the public policy of South Carolina actively to promote, attract and encourage and develop economically sound and beneficial commerce and industry, to increase trade, and to promote the health, prosperity and welfare of the inhabitants of this State by encouraging the development of facilities to provide employment and public recreation for the inhabitants of this State and to attract tourists from other states. The good order of this State and the health, prosperity and welfare of its inhabitants depend upon the steady employment, in all useful occupations, of the inhabitants of the State.

Stable and useful employment can be made available for the inhabitants of South Carolina by financing the construction, acquisition, expansion and modernization of facilities for new and existing industrial, manufacturing, commercial and recreational enterprises to locate, remain and expand in this State. The availability of financial assistance and suitable facilities are important inducements to industrial, manufacturing, commercial and recreational enterprises to locate, remain and expand in this State.

Bond authorization

SECTION 2. Item (f) of Section 3 of Act 1377 of 1968, as last amended by Act 518 of 1980, is further amended by adding:

1. STATE LAW ENFORCEMENT

DIVISION:

1. Renovation of headquarters for investigative department $ 54,707

TOTAL, State Law Enforcement Division $ 54,707

2. ADJUTANT GENERAL'S OFFICE:

1. Camden Armory-Construct and equip Supplement $ 162,597

2. Cheraw Armory-Construct and equip Supplement 20,570

3. Hampton Armory-Construct and equip Supplement 49,400

4. Greer Armory-Construct and equip Supplement 49,400

5. West Columbia Armory-Supplement 67,827

5A. Moncks Corner Armory-Supplement 18,000

6. Armory Construction-Supplement 385,000

7. Vault Doors at Armories 65,000

8. Charleston Armory 612,000

9. Armory renovations, roof replacement,

heating system replacement, parking lot

paving, security fencing and equipment

storage buildings 500,000

TOTAL, Adjutant General $ 1,929,794

Provided, that the Adjutant General shall transfer all surplus armories to the Division of General Services for disposition in accordance with policies approved by the Budget and Control Board. The proceeds derived by the Division of General Services from the disposal of surplus armories shall be deposited in the General Fund.

Provided, further, that authorization is hereby granted to the Adjutant General's office to finance the Charleston Armory project with $1,363,000 of federal funds, and the vault doors project with $187,000 of federal funds.

Provided, further, that the $385,000 authorized above for Armory Construction supplement shall be used to reimburse the advance of $385,000 for the construction of the West Columbia Armory, Newberry Armory, Fort Mill Armory and Georgetown Armory.

Provided, further, that the surplus Camden Armory shall be transferred to Kershaw County in exchange for land acquired under an agreement for construction of the new armory and the surplus Newberry Armory shall be transferred to Newberry County in exchange for land acquired under an agreement for construction of the new armory.

2A. BUDGET AND CONTROL BOARD:

1. Contingency Revolving Fund $ 500,000

TOTAL, Budget and Control Board $ 500,000

Provided, that, in making the above authorization, it is the intent of the General Assembly to provide the funding needed to establish a revolving fund to be used to finance emergency permanent improvement repair and replacement projects. Agency proposals for using these funds shall be submitted to the Budget and Control Board and to the joint Bond Review Committee simultaneously. The Board shall promptly consider and forward its recommendations on each request to the joint Bond Review Committee. No request may be recommended for approval by the Board and no request may be approved by the joint Bond Review Committee unless both the Board and the Committee shall have unanimously determined that the repair and/or replacement project for which funding is requested is a bona fide emergency which the requested funds, together with any other available funds, can address effectively. No institution of higher education, the Department of Mental Health or the Department of Mental Retardation may request funds from this account.

Provided, further, that in order to maintain the revolving fund, any funds transferred to another agency or institution from the revolving fund shall be included as a request for reimbursement to the fund in the next permanent improvement project survey.

3. THE CITADEL:

1. LeTellier Hall addition and renovations $ 1,000,000

2. Cadet Services building supplement 259,000

TOTAL, The Citadel $ 1,259,000

Provided, that the Budget and Control Board is directed to reduce the $1,000,000 of Capital Improvement Bond funds authorized above for the LeTellier Hall addition and renovation project and the $259,000 for the Cadet Services building project at any time prior to the completion and closing of the project by approving for this purpose the use of any State Institution Bond and Plant Improvement Bond debt service funds determined to be surplus by the State Treasurer and the use of any proceeds of any issue of such bonds or notes for which the institution has the capability, as determined by the State Treasurer, not heretofore authorized by the General Assembly or approved by the Budget and Control Board, after review by the joint Bond Review Committee, for use on a particular permanent improvement project.

4. CLEMSON UNIVERSITY:

1. New chemistry building $ 7,400,000

TOTAL, Clemson University $ 7,400,000

Provided, that authorization is hereby granted to Clemson University to finance $2,000,000 of the costs of the new chemistry building project from State Institution Bond proceeds.

Provided, that, in view of the decision to abandon the project to renovate Brackett Hall, the General Assembly hereby directs that the $2,200,000 authorized for that purpose in Act 518 of 1980 be used to help finance the new chemistry building project authorized above.

Provided, that the Budget and Control Board is directed to reduce the $7,400,000 of Capital Improvement Bond funds authorized above

for the new chemistry building project at any time prior to the completion and closing of the project by approving for this purpose the use of any State Institution Bond and Plant Improvement Bond debt service funds determined to be surplus by the State Treasurer and the use of any proceeds of any issue of such bonds or notes for which the institution has the capability, as determined by the State Treasurer, not heretofore authorized by the General Assembly or approved by the Budget and Control Board, after review by the joint Bond Review Committee, for use on a particular permanent improvement project.

Provided, that authorization is hereby granted to Clemson University to finance the new Performing Arts Center with $8,800,000 of private funds.

5. COLLEGE OF CHARLESTON:

1. Science Center second increment $ 4,000,000*

TOTAL, College of Charleston $ 4,000,000

Provided, that the Budget and Control Board is directed to reduce the $4,000,000 Capital Improvement Bond funds authorized above the Science Center, second increment project at any time prior to the completion and closing of the project by approving for this purpose the use of any State Institution Bond and Facilities Improvement Bond debt service funds determined to be surplus by the State Treasurer and the use of any proceeds of any issue of such bonds or notes for which the institution has the capability, as determined by the State Treasurer, not heretofore authorized by the General Assembly or approved by the Budget and Control Board, after review by the Joint Bond Review Committee, for use on a particular permanent improvement project.

Provided, further, that authorization is hereby granted to the College of Charleston to finance from surplus plant improvement funds $650,000 for completion of the Physical Education Center now under construction.

*Vetoed by the Governor and final action by the House of Representatives has been delayed until the 1982 session.

6. FRANCIS MARION COLLEGE:

Provided, that authorization is hereby granted to Francis Marion College to finance various campus improvements, presently estimated to cost $120,000, and the physical plant expansion project, presently estimated to cost $98,000, from student fees.

6A. LANDER COLLEGE:

1. College Center Phase II $ 5,415,000

TOTAL, Lander College $ 5,415,000

Provided, that the Budget and Control Board is directed to reduce the $5,415,000 of Capital Improvement Bond funds authorized above for the College Center Phase II academic facilities project at any time prior to the completion and closing of the project by approving for this purpose the use of any State Institution Bond debt service funds determined to be surplus by the State Treasurer and the use of any proceeds of any issue of such bonds or notes for which the institution has the capability, as determined by the -State Treasurer, not heretofore authorized by the General Assembly or approved by the Budget and Control Board, after review by the joint Bond Review Committee, for use on a particular permanent improvement project.

7. SOUTH CAROLINA STATE COLLEGE:

1. School of Business Administration $ 5,000,000

TOTAL, South Carolina State College $ 5,000,000

Provided, that authorization is hereby granted to South Carolina State College to finance the women's residence hall project, presently estimated to cost $2,520,000, from Student and Faculty Housing Revenue Bond proceeds.

Provided, further, that the Budget and Control Board is directed to reduce the $5,000,000 of Capital Improvement Bond funds authorized above for the School of Business Administration building project at any time prior to the completion and closing of the project by approving for this purpose the use of any State Institution Bond and Health and Physical Education Facilities Bond debt service funds determined to be surplus by the State Treasurer and the use of any proceeds of any issue of such bonds or notes for which the institution

has the capability, as determined by the State Treasurer, not heretofore authorized by the General Assembly or approved by the Budget and Control Board, after review by the joint Bond Review Committee, for use on a particular permanent improvement project.

Provided, that authorization is hereby granted to South Carolina State College to finance $1,164,300 of the cost of the School of Business Administration project, presently estimated to cost a total of $6,164,300, through the use of any state institution bond debt service funds determined to be surplus by the State Treasurer and/or the proceeds of any issue of such bonds or notes for which the institution has the capability, as determined by the State Treasurer, not heretofore authorized by the General Assembly or approved by the Budget and Control Board, after review by the joint Bond Review Committee, for use on a particular permanent improvement project.

8. UNIVERSITY OF SOUTH CAROLINA:

Aiken Campus:

1. Fine Arts Center $ 1,500,000

Total, Aiken Campus $ 1,500,000

Provided, that the authorization above for the Aiken Fine Arts Center is conditioned upon the provision of $1,500,000 from the Etherredge Bequest or by other means.

Coastal Campus:

1. College Center Phase II $ 1,400,000*

Total, Coastal Campus $ 1,400,000

Provided, that the Budget and Control Board is directed to reduce the $1,400,000 of Capital Improvement Bond funds authorized above for the College Center Phase II project at any time

prior to the completion and closing of the project by approving for this purpose the use of any State Institution Bond debt service funds determined to be surplus by the State Treasurer and the use of any proceeds of any issue of such bonds or notes for which

*Vetoed by the Governor and final action by the House of Representatives has been delayed until the 1982 session.

the institution has the capability, as determined by the State Treasurer, not heretofore authorized by the General Assembly or approved by the Budget and Control Board, after review by the Joint Bond Review Committee, for use on a particular permanent improvement project.

Columbia Campus:

Provided, that authorization is hereby granted to the Columbia Campus of the University of South Carolina to finance the Engineering Building Project with $575,000 of private funds.

Salkehatchie Campus:

Provided, that authorization is hereby granted to the University of South Carolina-Salkehatchie Campus to finance the health, safety, energy efficiency project, presently estimated to cost $65,000, from surplus State Institution Bond debt service funds.

Spartanburg Campus:

1. Humanities/ Science Building $ 5,476,000

Total, Spartanburg Campus $ 5,476,000

Provided, that the Budget and Control Board is directed to reduce the $5,476,000 Capital Improvement Bond funds authorized above for the Humanities/Science Building project at any time prior to the completion and closing of the project by approving for this purpose the use of any State Institution Bond debt service funds determined to be surplus by the State Treasurer and the use of any proceeds of any issue of such bonds or notes for which the institution has the capability, as determined by the -State Treasurer, not heretofore authorized by the General Assembly or approved by the Budget and Control Board, after review by the joint Bond Review Committee, for use on a particular permanent improvement project.

Provided, that authorization is hereby granted to the University of South Carolina-Spartanburg Campus to finance $550,000 of the cost of the Humanities/ Science Building project, presently estimated to cost a total of $6,026,000, through the use of any state institution bond debt service funds determined to be surplus by the State Treasurer and/or the proceeds of any issue of such bonds or notes for which the institution has the capability, as determined by the State Treasurer, not heretofore authorized by -the General Assembly or

approved by the Budget and Control Board, after review by the joint Bond Review Committee, for use on a particular permanent improvement project.

Sumter Campus:

I. Humanities/ Health Science Center $ 3,650,000

Total, Sumter Campus $ 3,650,000

Provided, that the Budget and Control Board is directed to reduce the $3,650,000 Capital Improvement Bond funds authorized above for the Humanities/ Health Science Center project at any time prior to the completion and closing of the project by approving for this purpose the use of any State Institution Bond debt service funds determined to be surplus by the State Treasurer and the use of any proceeds of any issue of such bonds or notes for which the institution has the capability, as determined by the State Treasurer, not heretofore authorized by the General Assembly or approved by the Budget and Control Board, after review by the joint Bond Review Committee, for use on a particular permanent improvement project.

Provided, that authorization is hereby granted to the University of South Carolina-Sumter Campus to finance $350,000 of the cost of the Humanities/ Health Science Center project, presently estimated to cost a total of $4,000,000, through the use of any state institution bond debt service funds determined to be surplus by the State Treasurer and/or the proceeds of any issue of such bonds or notes for which the institution has the capability, as determined by the State Treasurer, not heretofore authorized by the General Assembly or approved by the Budget and Control Board, after review by the joint Bond Review Committee, for use on a particular permanent improvement project.

Union Campus:

1. Central School Phase III .$ 125,000*

Total, Union Campus $ 125,000

*Vetoed by the Governor and final action by the House of Representatives has been delayed until the 1982 session.

Provided, that the Budget and Control Board is directed to reduce the $125,000 of Capital Improvement Bond funds authorized above for the Central School Phase III project at any time prior to the completion and closing of the project by approving for this purpose the use of any State Institution Bond debt service funds determined to be surplus by the State Treasurer and the use of any proceeds of any issue of such bonds or notes for which the institution has the capability, as determined by the State Treasurer, not heretofore authorized by the General Assembly or approved by the Budget and Control Board, after review by the Joint Bond Review Committee, for use on a particular permanent improvement project.

*Provided, that authorization is hereby granted to the University of South Carolina-Union Campus to finance the master planning project, presently estimated to cost $10,000, from surplus State Institution Bond debt service funds.

Lancaster Campus:

1. Hubbard Hall renovation $ 272,750*

Total, Lancaster Campus $ 272,750

Provided, that the Budget and Control Board is directed to reduce the $272,750 of Capital Improvement Bond funds authorized for the Hubbard Hall renovation project at any time prior to the completion and closing of the project by approving for this purpose the use of any State Institution Bond debt service funds determined to be surplus by the State Treasurer and the use of any proceeds of any issue of such bonds or notes for which the institution has the capability, as determined by the State Treasurer, not heretofore authorized by the General Assembly or approved by the Budget and Control Board, after review by the Joint Bond Review Committee, for use on a particular permanent improvement project.

TOTAL, University of South Carolina $ 12,423,750

*Vetoed by the Governor and final action by the House of Representatives has been delayed until the 1982 session.

9. WINTHROP COLLEGE:

1. McLaurin Replacement $ 2,600,000*

TOTAL, Winthrop College $ 2,600,000

Provided, further, that the authorization granted in Act 518 of 1980 to Winthrop College to finance $7,400,000 of the costs of the McLaurin Building project from State Institution Bond proceeds is rescinded.

Provided, that authorization is hereby granted to Winthrop College to finance $5,500,000 of the costs of the McLaurin replacement project from State Institution Bond proceeds.

Provided, that the Budget and Control Board is directed to reduce the $2,600,000 of Capital Improvement Bond funds authorized above for the McLaurin replacement project at any time prior to the completion and closing of the project by approving for this purpose the use of any State Institution Bond debt service funds determined to be surplus by the State Treasurer and the use of any proceeds of any issue of such bonds or notes for which the institution has the capability, as determined by the State Treasurer not heretofore authorized by, the General Assembly or approved by the Budget and Control Board, after review by the Joint Bond Review Committee, for use on a particular permanent improvement project.

Provided, that authorization is hereby -granted to Winthrop College to finance the replacement dormitory project, presently estimated to cost $7,520,000 from Student and Faculty Housing Revenue Bond proceeds.

10. MEDICAL UNIVERSITY OF SOUTH CAROLINA:

*Provided, that the Medical University of South Carolina is hereby authorized to finance the Psychiatric Hospital Project with $7,250,000 of Hospital Revenue Bond proceeds.

Provided, further, that the Medical University of South Carolina is hereby authorized to finance a central parking facility at a cost not to exceed $5,900,000 from Plant Improvement Bonds.

*Vetoed by the Governor and final action by the House of Representatives has been delayed until the 1982 session.

11. TECHNICAL AND COMPREHENSIVE EDUCATION:

1. Horry-Georgetown construct and equip $ 250,000*

2. Trident construct and equip 1,750,000

3. York Classroom/Learning Resource Building 1,500,000

4. Equipment for the State TEC system:

Replace worn out equipment, equipment

for new and emerging occupations

and equipment for design for the 80's . 5,000,000

5. Greenville Engineering Building 243,000

6. Midlands (Airport) site work 475,000

7. Florence-Darlington Engineering and

Learning Resource Center 2,480,000

8. Sumter Developmental Studies and Student

Services Building and Media Center 855,064

9. Orangeburg-Calhoun classroom labs 2,060,288*

10. Tri-Country Learning Resource Center 2,800,000*

11. Piedmont Tech-Engineering Technology Building 833,600*

TOTAL, Technical and Comprehensive Education $ 18,246,952

Provided, that prior to the withdrawal from the State Treasurer of any of the funds authorized above for the Midlands (Airport Campus) site work, phase III project, the Florence-Darlington Engineering- and Learning Resources Center project, the Sumter Developmental Studies and Student Services Building project, the Orangeburg-Calhoun Classroom/Labs project, the State Board for Technical and Comprehensive Education shall obtain and transmit to the State Treasurer a certificate from the appropriate official at such technical education institutions stating that, as is required by Section 6 of Act 654 of 1976, a minimum of 20% of the cost of each of the projects authorized herein has been provided by the local support area.

Provided, that Denmark TEC is authorized to finance the Dormitory Construction Project presently estimated to cost $2,735,000 from revenue bonds.

*Vetoed by the Governor and final action by the House of Representatives has been delayed until the 1982 session.

Provided, further, the authorization above for the York Classroom Building/ Learning Resources Center project is conditioned upon the provision of $2,000,000 of matching monies from local sources.

Provided, that it is the intent of the General Assembly that the funds authorized above for equipment be used to purchase equipment with an expected useful life of ten years or more.

Provided, further, that the purchase of equipment with an expected useful life of less than ten years must be approved by the Budget and Control Board and the joint Budget Review Committee.

Provided, further, the authorization above for the Greenville Engineering Building, renovation and expansion project is conditioned upon the provision of $350,000 of Appalachian Regional Council monies and $160,000 of matching monies from local sources.

12. DEPARTMENT OF EDUCATION:

1. Equipment for previously funded new or

expanded facilities $ 3,229,699

2. Kershaw-Construction of Vocational

Center/Lab expansion 1,500,000

3. Replacement of Obsolete and Inoperable

Equipment 2,500,000

TOTAL, Department of Education $ 7,229,699

Provided, that if the $750,000, of Capital Improvement Bond funds authorized for Beaufort-jasper Career Center, the $423,000 authorized for Hampton No. 2, and the $120,000 authorized for Union in Act 518 of 1980 for the construction and expansion of vocational education facilities are not committed by a construction contract executed by the school district for which such funds have been made available by December 1, 1983, such uncommitted funds shall be reallocated to such other school district or districts as the General Assembly may determine.

Provided, further, that if any Capital Improvement Bond funds authorized by this act for equipment for any vocational education facilities are not committed by a purchase contract executed by the school district for which such funds have been made available within eighteen months of the effective date of this act, such uncommitted

funds shall be reallocated to such other school district or districts as the General Assembly may determine.

Provided, that, it is the intent of the General Assembly that the funds authorized above for equipment be used to purchase equipment with an expected useful life of ten years or more.

Provided, further, that tile purchase of equipment with an expected useful life of less than ten years must be approved by the Budget and Control Board and the joint Budget Review Committee.

Provided, further, the General Assembly finds that a comprehensive financing plan for vocational education facilities is needed which will help ensure consistency in the State's financial participation in the provision of these facilities. To meet this need, the State Department of Education is directed to undertake the formulation and biennial updating of such a plan which shall, at all times, cover a period of not less than five fiscal years into the future. Each local school district shall participate in the vocational education facility planning process of the State Department of Education by adopting and submitting on a timely basis an overall facility development plan for the district which identifies vocational education facility requirements in particular and shows their relationship to other facility requirements of the district. Each local school district plan also shall present a proposed financing plan for the facilities included.

In formulating its vocational facilities financing plan which is to be recommended too the Budget and Control Board and to the joint Bond Review Committee, the State Department of Education shall take into account such factors as past State funding of vocational education facilities, needs criteria such as the economic development conditions and trends in the area served, the number of vocational programs offered or needed in the area and student enrollment in vocational programs of the district. The Department plan also shall consider and make recommendations on the appropriate state and local funding matching requirements.

The initial five-year plan recommended by the Department of Education shall be forwarded to the Budget and Control Board and to the joint Bond Review Committee before December 1, 1982, and on or before December 1 in even-numbered years thereafter. The Budget and Control Board shall review and comment on the Department's plan in the course of presenting its recommendations on permanent improvement funding to the General Assembly.

Provided, further, that if the $500,00( Of Capital improvement Bond funds authorized for Lexington District One and the $700,000 authorized in Act 194 of 1979 for the construction or expansion for Chester in Act 194 of 1979 for the construction or expansion of vocational education facilities are not committed by a construction contract executed by the school district for which such funds have been made available by August 15, 1981, such uncommitted funds shall be reallocated to such other school district or districts as the General Assembly may determine.

13. SCHOOL FOR THE DEAF AND BLIND:

1. Replace 19 school buses $ 750,000

2. Renovation and construction of vocational

and educational facilities 2,400,000

TOTAL, School for the Deaf and Blind $ 3,150,000

14. DEPARTMENT OF MENTAL HEALTH

Provided, that the Department of Mental Health is authorized to finance the following projects in the amounts indicated from surplus paying patient fee debt service funds: (1) Reroofing Project COIL, $28 , 000; (2) Reroof renewing Hall Institute, $99,000; (3) Reroof McLendon Clinical Center at Crafts-Farrow State Hospital, $72,000; (4) Village B, construct and equip, $12,332,500.

Provided, further, that the Department of Mental Health is authorized to finance the additional $4,000,000 for the Village B project from Capital Improvement Bonds issued under the authority of Acts 1272 and 1276 of 1970.

15. DEPARTMENT OF MENTAL RETARDATION:

Provided, that the Department of Mental Retardation is authorized to finance the following projects in the amounts indicated from Capital Improvement Bonds issued under the authority of Act 1377 of 1968, as amended, to the extent possible under the provisions of Act 1087 of 1970: **(1) Pee Dee Center support facilities and activity program facility, $1,800,000; ** (2) Coastal Center-renovations and improvements of hospital and dormitories, $1,000,000;

(3) Whitten Center Utilities Improvement, $255,000.

**Overridden by the House of Representatives, September 29, 1981.

Provided, further, the Department of Mental Retardation is authorized to finance the Coastal Center renovation of swimming pool, presently estimated to cost $150,000, from surplus paying patient fee debt service funds.

15A. VOCATIONAL REHABILITATION:

Greenwood Vocational Rehabilitation

Center-construction $ 978,354

TOTAL, Vocational Rehabilitation $ 978,354

16. JOHN de la HOWE SCHOOL:

Install sprinkler systems and enclose stairwells in three cottages $ 81,000

Reroofing/ guttering repair for seven cottages and kitchen additions

for six cottages 96,000

Roof repairs 85,000

Upgrade campus power lines 250,000

TOTAL, John de la Howe School $ 512,000

17. COMMISSION FOR THE BLIND:

Provided, that the Commission for the Blind is authorized to finance the land acquisition for the Adult Adjustment and Training Center presently estimated to cost $150,000, with federal funds.

18. DEPARTMENT OF CORRECTIONS:

1. System wide-renovations/life safety equipment $ 2,052,650

TOTAL, Department of Corrections $ 2,052,650

Provided, that the Department of Corrections is authorized to use such portion of the $2,052,650 as may be necessary to finance architectural and engineering services for the construction of new correctional facilities.

19. DEPARTMENT OF YOUTH SERVICES:

1. Fire safety additions (22 dormitories) $ 296,277

TOTAL, Department of Youth Services $ 296,277

20. LAW ENFORCEMENT TRAINING COUNCIL:

Provided, that the Law Enforcement Training Council is authorized to finance the following projects in the amounts indicated from bond forfeitures and fines: (1) Weapons Range Complex additional funding, $504,000; (2) Weapons Range Complex water mains, $38,000; (3) Renovation of roof at the Criminal justice Academy, $75,000; (4) Criminal justice Academy solar beat collectors for swimming training tank, $87,200; (5) Criminal justice Academy additional parking for students and staff, $22,500; (6) Weapons Range Complex pave access roads, $240,000.

Provided, further, that none of the funds authorized above for the Law Enforcement Training Council shall be encumbered for any project which cannot be financed entirely from these funds.

21. DEPARTMENT OF AGRICULTURE:

Provided, that the Department of Agriculture is authorized to finance the following projects in the amounts indicated from Market Operating Revenues: (1) Columbia Farmer's Market renovations, $100,000; (2) Greenville Farmer's Market renovations, $30,000; (3) Greenville Farmer's Market renovation of trucker's shed, $125,000.

21A. CLEMSON UNIVERSITY-PUBLIC

SERVICE ACTIVITIES:

1. Pee Dee Research and Education Center,

construct and equip supplement $ 3,100,000

TOTAL, Public Service Activities $ 3,100,000

22. WILDLIFE AND MARINE RESOURCES DEPARTMENT:

1. Lake Wallace Dam improvements $ 550,000

2. Aquaculture facility (Victoria Bluff) construct

and equip, addition 2,400,000

TOTAL, Wildlife and Marine Resources Department $ 2,950,000

22A. COASTAL COUNCIL:

1. Enhancement of public access to beaches $ 750,000

TOTAL, Coastal Council $ 750,000

Provided, further, the Coastal Council shall determine the allocation of the $750,000 authorized above for enhancement of public access to beaches from among projects that maintain, facilitate or improve the public's access to and enjoyment of the beaches.

Provided, further, that the state share shall not exceed ninety percent of the total cost of any public access enhancement project.

Provided, further, that the Coastal Council shall allocate the funds authorized above to particular projects after giving equitable consideration to the relative needs of the several coastal counties for funds for these purposes and the benefit/cost of such projects.

Provided, further, that none of the funds authorized above shall be allocated to any project located in any beach area not accessible to the public.

Provided, further, that, prior to the withdrawal from the State Treasurer of any of the funds authorized above, the Coastal Council shall obtain and transmit to the Budget and Control Board a certificate from the appropriate local official stating that the required local funds are on hand and have been encumbered for the purpose of matching funds allocated by the Coastal Council.

Provided, further, that any remaining balance of funds authorized in Act 646 of 1978-Beach Erosion or Groin Repair-may be used by the Coastal Council for the enhancement of public access to beaches project.

23. DEPARTMENT OF PARKS,

RECREATION AND TOURISM:

1. Little River Inlet jetty Project $ 1,000,000

2. Charlestowne Landing, facility rehabilitation 325,000*

3. Park improvements, renovations and additions 100,000*

4. Myrtle Beach Pool 400,000*

5. Hickory Knob Lodging 350,000*

6. Hunting Island Redevelopment 1,300,000*

7. Dam Repairs and General Park Improvements 280,000

8. Andrew Jackson State Park Improvements 70,000*

TOTAL, Department of Parks, Recreation and Tourism $ 3,825,000

*Provided, further, that the $100,000 authorized above for park improvements, renovations and additions shall be used for the Lake Warren Park.

Provided, that any funds accruing to the State as a result of the exchange of the New Horizon property for the Desport Island may be retained by Parks, Recreation and Tourism for the Desport Island and adjacent shoreline property development project, upon the approval of the joint Bond Review Committee and the Budget and Control Board.

Provided, that the $200,000 authorized in Act 518 of 1980 for Drayton Hall under Section 22 (Parks, Recreation and Tourism) may be transferred to the National Trust for Historic Preservation to begin Phase I-Roads and Parking of the master plan for the Drayton Hall property.

Provided, further, the South Carolina Department of Parks, Recreation and Tourism, upon the approval of the Budget and Control Board and the joint Bond Review Committee, is authorized to implement the provision of the contractual agreement of November 6, 1972,

*Vetoed by the Governor and final action by the House of Representatives has been delayed until the 1982 session.

between the State of South Carolina and the United States Army Corps of Engineers regarding development of recreational facilities on the Richard B. Russell Lake, wherein the Corps of Engineers will finance and construct state park and recreational facilities in the South Carolina areas of Lake Russell in accord with plans developed jointly by the Corps of Engineers and the Department of Parks, Recreation and Tourism under a cost-baring agreement with provision for the State's 50% share to be paid back by the Department to the Corps over a 50 year period at an interest rate of 4.37%, and with further provision that the counties of Abbeville and Anderson assume responsibility for the operation and maintenance of boat access areas on Lake Russell funded tinder the cost-sharing plan that are located outside the two state park lands in South Carolina.

Provided, further, that the South Carolina Department of Parks, Recreation and Tourism is authorized, upon approval of the Budget and Control Board and the joint Bond Review Committee, to issue revenue bonds to construct resort facilities at Lake Hartwell Resort State Park and Caesar's Head State Park.

*Provided, however, that the bonds authorized for Charlestowne Landing shall not be issued if an amount equal to such authorization is appropriated to the Landing in the general appropriations act for fiscal year 1982-83.

24. AERONAUTICS COMMISSION:

1. Columbia Hangar-Supplement $ 100,000

2. Grass Cutting Equipment 115,000

3. Owens Field (Richland County) 2,000,000

TOTAL, Aeronautics Commission $ 2,215,000

Provided, that any balances of Capital Improvement Bonds authorized for local airport repairs, construction and improvements may be carried forward and reallocated by the Aeronautics Commission.

Provided, further, that any Capital Improvement Bond funds authorized for airport repairs, construction and improvements which are subsequently allocated to local entities shall be matched equally

*Vetoed by the Governor and final action by the House of Representatives has been delayed until the 1982 session.

with local monies; provided, further, that Capital Improvement Bond funds for local airport repairs, construction or improvements shall be allocated giving priority to those projects for which the availability of local and federal matching funds can be certified.

Provided, further, that, prior to the withdrawal from the State Treasurer of any such funds, (a) the Aeronautics Commission shall obtain and transmit to the Budget and Control Board a certificate from the appropriate local official stating that the required local funds are on hand and have been encumbered for the purpose of matching funds allocated by the Aeronautics Commission; and, (b) that, in any project involving federal funds, the Aeronautics Commission shall certify to the Budget and Control Board the availability of such federal funds.

Provided, further, that state financial participation in the acquisition of real property for airports shall be limited to the acquisition of navigation and clearance easements directly related to airport safety.

Provided, however, that this limitation shall not be applicable to the State's participation in the Owens Field (Richland Council) project.

Provided, that the Aeronautics Commission is authorized to finance a replacement turbine airplane, presently estimated to cost $1,100,000 from previous Capital Improvement Bond authorizations not committed.

24A. STATE PORTS AUTHORITY:

1. Seafood Industrial Port--construction

and equipment supplement $ 2,500,000*

TOTAL, State Ports Authority $ 2,500,000

Provided, that the South Carolina State Ports Authority may acquire by negotiation or eminent domain any property necessary or convenient for the development and operation of the Seafood Industrial Port in Beaufort County under Section 54-3-150 of the 1976 Code.

*Vetoed by the Governor and final action by the House of Representatives has been delayed until the 1982 session.

25. PATRIOT'S POINT DEVELOPMENT AUTHORITY:

Provided, that the Patriot's Point Development Authority is authorized to finance the following projects in the amounts indicated from operating revenue and donations: (1) vehicles to move visitors, $50,000; (2) U.S.S. Laffay refurbishment, $310,000; (3) entrance gate controls, $26,000; (4) ticket booth and gift shop, $205,000.

Provided, further, that none of the funds authorized above for the Patriot's Point shall be encumbered for any project which cannot be financed entirely from these funds.

Provided, that the Patriot's Point Development Authority is authorized to finance the marina and supporting facility project presently estimated to cost $10,700,000 from an F.H.A. loan and private developers.

26. CLARK'S HILL-RUSSELL AUTHORITY:

Provided, that the Clark's Hill-Russell Authority is authorized to finance the Little River Resort site development project presently estimated to cost $2,940,000 from federal and other funds.

27. EMPLOYMENT SECURITY COMMISSION:

Provided, that the Employment Security Commission is authorized to finance the following projects in the amounts indicated from federal funds: (1) Aiken Employment Security Office Building, $390,000; (2) Sumter Employment Security Office Building, $460,000; (3) Columbia State Office Annex, $1,140,000.

28. MUSEUM COMMISSION:

1. Renovation for State Museum $ 4,000,000

TOTAL, Museum Commission $ 4,000,000

Provided, that Mount Vernon Mills, Inc., donates by deed to the State of South Carolina the real estate and improvements located near Gervais Street and the Congaree River in Columbia, formerly known as the Columbia Division properties of Mount Vernon Mills, Inc. Such donation shall be evidence of Mount Vernon Mills' great interest in the people of South Carolina, concern for the preservation of an historic monument and desire to stimulate development of an outstanding State Museum.

Provided, further, that funds from other than State sources be raised and used to fund architectural and engineering expenses necessary for the utilization of the donated properties, that at least $1,100,000 of funds from other than State sources be raised for contributing to the renovation of the donated properties and that a plan be developed to raise at least an additional $1,000,000 within two years to establish a permanent endowment fund with all income from such fund pledged to defray all or a portion of the additional cost of annual operations of the State Museum.

Provided, further ' that the General Assembly declares its intent that the $4,000,000 authorized above for the purpose of renovation of a State Museum shall be the only State Capital financing for this entire project.

Provided, further, that the University of South Carolina shall conduct a study to determine the feasibility of using the Mount Vernon Mill property as a depository for the Movie Tone Film Library now in the custody of the University and report its findings to the General Assembly no later than February 15, 1982.

TOTAL, ALL AGENCIES $ 99,443,183

Limitation on indebtedness

SECTION 3. Section 4 of Act 1377 of 1968, as last amended by Act 518 of 1980, is further amended by striking on line two "787,673,114.10" and inserting "$866,408,807.10". The section when amended shall read:

"Section 4. The aggregate principal indebtedness on account of bonds issued pursuant to this act shall not exceed $866,408,807.10. Provided, that the limitation herein imposed shall not apply to bonds issued on behalf of the Mental Health Commission as provided in Act 1276 of 1970 and Act 1272 of 1970, or bonds issued on behalf of the Commission on Mental Retardation as provided in Act 1087 of 1970. The limitation herein imposed shall not be deemed to be an obligation of the contract made between the State and holders of bonds issued pursuant to this act, and the limitation herein imposed may be enlarged or reduced from time to time by acts amendatory hereof. Within such limitations state capital improvement bonds may be issued from time to time under the conditions prescribed by this act."

Requirements imposed on boards, committees and the State Auditor before implementation of permanent improvement projects

SECTION 4. Act 1377 of 1968, as last amended by Act 518 of 1980, is further amended by adding a new section before the effective clause to be appropriately numbered which shall read:

"Section The General Assembly notes that the restraints on the growth and expansion of state government programs expressed in the existing limitations on spending, on personnel and on debt projects authorized in this act be implemented on a phased basis covering a period of several years. These restraints are such that they will also require that no permanent improvement project authorized in any capital improvement bond act may be permitted to be established and implemented unless (a) the chairman of the governing board or commission of the involved agency or institution and its chief executive officer certify in writing to the State Auditor, the Budget and Control Board and the Joint Bond Review Committee that no additional operating costs and no additional personnel will be required as a result of the implementation and completion of the project; or (b) the Budget and Control Board and the Joint bond Review Committee after a thorough and complete review of the circumstances involved in any particular project, may agree to relieve the involved agency or institution and its officials of the certification requirement set forth in (a), preceding. All projects not approved to be established and implemented prior to the last day of the second full calendar year following the project's authorization act, or for previously authorized projects the second full calendar year after the effective date of this section, shall be submitted to the General Assembly by the Budget and Control Board for legislative confirmation in a Joint Resolution. If confirmed, the project shall be treated as if it is a new authorization in the year of confirmation. If not confirmed, the Budget and Control Board is ordered to automatically deauthorize the project without further legislative action.

For purposes of this section 'projects' are defined to be items authorizing capital improvements improvements in a bond authorization act or individual requests for funding under a general, nonspecific item in a bond authorization act.

In addition to the requirements of a paragraph one of this section, no project authorized through Act 1377 of 1968 may be established or

otherwise implemented until a detailed plan which identifies the sources of funds to pay the costs of operating the project when completed, including any personnel costs involved, has been reviewed and approved by the joint Bond Review Committee ' the State Auditor and the Budget and Control Board. An update of the operating cost financing plan shall be submitted to the State Auditor and the Board as a part of the involved agency's five-year plan submission until the project is completed and in operation. The State Auditor and the Budget and Control Board shall keep the joint Bond Review Committee, the joint Appropriations Review Committee, the Ways and Means Committee and the Senate Finance Committee advised of these updates. After reviewing any instance where a significant change in an approved operating cost financing plan is indicated in any update, the State Auditor shall recommend an appropriate response to the updated plan for adoption by the Board."

Priorities for funding

SECTION 4A. No project authorized in whole or in part for capital improvement bond funding in this act or previous acts shall be implemented until funds can be made available and until the joint Bond Review Committee, in consultation with the Budget and Control Board, establishes priorities for the funding of the projects. The joint Bond Review Committee shall report its priorities to the members of the General Assembly within thirty days of the establishment of the funding priorities.

Overall plan for facilities required for all agency or institution requests, requirements listed

SECTION 5. In view of the finding by the General Assembly that the overall permanent improvement plans adopted by several state agencies and institutions have proven to be useful documents, the General Assembly now has determined that the governing body or commission of each agency and institution of the state government seeking approval of requests for the funding of permanent improvement projects or of the establishment and implementation of projects authorized previously under Act 177 of 1968, as amended, shall submit an overall plan for such facilities to the joint Bond Review Committee (the Committee) and to the Budget and Control Board (the Board) for review and approval. Neither the Committee nor the Board 'may recommend that the General

Assembly approve any additional permanent improvement funding request of any agency or institution until its overall permanent improvement plan or subsequent revisions thereof have been reviewed and approved by the Committee and the Board. Such plans shall be submitted to the Committee and the Board on or before July 1, 1982, and shall be updated as necessary and submitted in alternate years thereafter. The plans submitted in 1982 shall cover a future period of not less than five fiscal years beginning with the fiscal year beginning July 1, 1983, and any plan updates submitted shall cover five-fiscal year periods beginning in alternate fiscal years thereafter. Plans of institutions of higher learning shall be submitted to the Committee and the Board on this same schedule through the Commission on Higher Education (the Commission). The Commission shall forward each plan and any supporting documentation received from each institution to the Board and the Committee together with its comments and recommendations on each plan and with overall summary comments and recommendations on the several plans considered in the aggregate.

The overall permanent improvement plan of each agency and institution shall, as a minimum, include: (1) a summary of existing facilities with an analysis of their condition and adequacy in view of present and anticipated use of and demands upon them; (2) an analysis of the key factors involved in the trends in the demand for various facilities of the agency or institution; (3) a summary of the alternative approaches considered as a means of meeting any unmet current or anticipated demands upon facilities and the reasons those alternatives were not pursued; (4) a listing of the permanent improvements proposed and those projects authorized previously for funding but not yet established classified in terms of types of projects such as maintenance, renovation, new construction or other categories specified by the Board, listed in order of priority and grouped according to the fiscal year in which funding approval is deemed necessary; (5) a justification for each project proposed which identifies the specific needs to be met by the project and its dependence upon other projects being proposed or to be proposed; (6) the proposed sources of funds for the projects listed including evidence that all funds for these purposes available to the agency or institution from its own sources or capabilities have been applied; (7) information on additional annual operating costs related to each proposed project; (8) feasibility studies and any other docu-

mentation which may help to convey fully the nature, rationale and urgency of each proposed project; (9) campus or other maps showing the location of existing and proposed facilities; and (10) other pertinent information requested by the Board or the Committee.

Costs paid from bond proceeds

SECTION 6. The General Assembly declares its intent that the costs of issuing any bonds authorized shall be paid from the proceeds of the bonds authorized and the State Treasurer is authorized to allocate such issue costs on a uniform basis among the agencies and institutions receiving such authorizations.

Architectural and engineering study costs

SECTION 7. The General Assembly declares its intent that the costs of all architectural and engineering studies shall be contained in the project authorization; and there shall be no separate authorizations for architectural and engineering plans.

Authorizations reduced

SECTION 8. Act 1377 of 1968, as last amended by Act 518 of 1980, is further amended by reducing the amount of certain Capital Improvement Bond authorizations in Section 3 of the act as follows:

(A) Department of Mental Health, Planning for Village "C" (added by Act 225 of 1975) is reduced from $500,000 to zero.

(B) Department of Mental Health, Renovation of the Thompson Building (Departmental Bonds approved under provisions of Act 1377 of 1968 as provided in Act 1276 of 1970 and Act 1272 of 1970) is reduced from $750,000 to zero.

Further

SECTION 8A. Act 1377 of 1968, as last amended by Act 518 of 1980, is further amended by reducing the amount of certain Improvement Bond authorizations in Section 3 of the act as follows:

(a) Department of Education-Vocational Education, Equipment for Vocational Schools under Construction (added by Act 249 of 1977) is reduced as follows:

(1) The $110,000 for Anderson District Five is reduced to $88,849.95.

(2) The $200,000 for Richland District Two is reduced to $199,311.61.

(3) The $150,000 for Charleston is reduced to $126,356.50.

(b) Department of Education-Vocational Education, Construction or Expansion of Vocational Schools (added by Act 249 of 1977) is reduced as follows:

(1) The $300,000 for the Dillon Area Vocational Center is reduced to zero.

(c) Department of Education, Construction of Additional Vocational Schools (added by Act 354 of 1973), is reduced from $8 900,000 to $8,822,155.38.

(d) Department of Education, Equipment for Vocational Schools (added by Act 1294 of 1974), is reduced from $2,820,000 to $2,792,190.30.

(e) State Board of Education, to equip vocational facilities (added by Act 237 of 1975), is reduced from $3,000,000 to $2,995,698.98.

(f) State Board of Education, to construct new vocational facilities (added by Act 237 of 1975), is reduced as follows:

(1) The $300,000 for Orangeburg-Calhoun is reduced to $264,456.58.

(g) Department of Education, Construction or Expansion of Vocational Schools (added by Act 646 of 1978), is reduced as follows:

(1 ) The $400,000 for Florence (Westside) is reduced to $399,708.19.

(2) The $300,000 for York is reduced to $299,400.

(3) The $300,000 for Aiken (Wagener-Salley) is reduced to $299,400.

(h) Department of Education, Construction or Expansion of Vocational Education Facilities (added by Act 194 of 1979) is reduced as follows:

(1) The $250,000 for Orangeburg District 2 is reduced -to $233,358.59.

(I) Department of Education, Equipment for Vocational Education Facilities (added by Act 194 of 1979), is reduced from $1,000,000 to $975,511.36.

(j) Department of Education, Construction or Expansion of Vocational Education Facilities (added by Act 518 of 1980), is reduced as follows:

(1) The $50,000 for York No. 1 is reduced to $48,956.73.

Provided, further, that the General Assembly directs that the balance of $534,645.83 from the above authorizations be used by the

Department of Education to finance any cost overruns for the expansions or construction of vocational facilities previously authorized, upon approval of the Budget and Control Board and the joint Bond Review Committee.

Findings-project further defined-severability-tourism, sports and recreational facilities defined-finding requirements of governing board

SECTION 9. A. As an incident to the enactment of this section the General Assembly has made the following findings:

(1) By Act 103 of 1967 (codified as Chapter 29 of Title 4 of the Code of Laws of South Carolina, 1976, and hereinafter referred to as the "Industrial Development Bond Act"), as amended by Act 518 of 1980, the General Assembly authorized the counties and incorporated municipalities of the State of South Carolina to provide assistance to manufacturing and commercial industries in financing new enterprises or expanding existing enterprises.

(2) Since the enactment of the Industrial Development Bond Act in 1967 other states have enacted legislation permitting political subdivisions to use revenue bond financing to induce a wide variety of commercial and recreational enterprises to locate such enterprises in those states. Such legislation gives other states an advantage over South Carolina in inducing such enterprises to locate therein.

(3) It is the public policy of South Carolina actively to promote, attract, encourage and develop economically sound and beneficial commerce and industry, to increase trade, and to promote the health, prosperity and welfare of the inhabitants of this State by encouraging the development of facilities to provide employment and public recreation for the inhabitants of this State and to attract tourists from other states. The good order of this State and the health, prosperity and welfare of its inhabitants depend upon the steady employment, in all useful occupations, of the inhabitants of the State.

(4) Stable and useful employment can be made available for the inhabitants of South Carolina by financing the construction, acquisition, expansion and modernization of facilities for new and existing industrial, manufacturing, commercial and recreational enterprises in this State.

(5) The availability of financial assistance and suitable facilities are important inducements, to industrial, manufacturing, commercial

and recreational enterprises to locate, remain and expand in this State.

B. Item (3) of Section 4-29-10 of the 1976 Code, as last amended by Act 518 of 1980, is further amended by striking all after the word "and" at the end of subitem (c) and inserting: "(d) any enterprise engaged in commercial business, including but not limited to, wholesale, retail or other mercantile establishments; office buildings; computer centers; tourism, sports and recreational facilities; convention and trade show facilities; and public lodging and restaurant facilities if the primary purpose is to provide service in connection with another facility qualifying under this subitem; and (e) any enlargement, improvement or expansion of any existing facility in subitems (a), (b), (c), and (d) of this item. The term project shall not include facilities for an enterprise primarily engaged in tile sale or distribution to the public of electricity, gas, water or telephone, or other services commonly classified as public utilities. A project may be located in one or more counties or incorporated municipalities." When amended, item (3) shall read:

"(3) 'Project' shall mean any land and any buildings and other improvements thereon including, without limiting the generality of the foregoing, water, sewage treatment and disposal facilities, air pollution control facilities, and all other machinery, apparatus, equipment, office facilities and furnishings which shall be deemed necessary, suitable or useful by the following or any combination thereof: (a) any enterprise engaged in manufacturing, processing, or assembling of any agricultural or manufactured products; (b) any commercial enterprise engaged in storing, warehousing, distributing, transporting or selling products of agriculture, mining or industry, or engaged in providing laundry services to hospitals, to convalescent homes or to medical treatment facilities of any type, public or private, within or outside of the issuing county or incorporated municipality and within or outside of the State; (c) any enterprise engaged in research in connection with any of the foregoing or for the purpose of developing new products or new processes or improving existing products or processes; (d) any enterprise engaged in commercial business, including but not limited to, wholesale, retail or other mercantile establishments; office buildings; computer centers; tourism, sports and recreational facilities; convention and trade show facilities; and public lodging and restaurant facilities if the primary purpose is

to provide service in connection with another facility qualifying under this subitem; and (e) any enlargement, improvement or expansion of any existing facility in subitems (a), (b), (c) and (d) of this item. The term project shall not include facilities for an enterprise primarily engaged in the sale or distribution to the public of electricity, gas, water or telephone or other services commonly classified as public utilities. A project may be located in one or more counties or incorporated municipalities."

C. Any portion of the definition of "project", as amended by subsection B of this section, is expressly declared to be severable from the remainder of the definition of the term "project".

D. Section 4-249-10 of the 1976 Code, as last amended by Act 518 of 1980, is further amended by adding:

"(8) 'Tourism, sports and recreational facilities' shall mean property used for or useful in connection with theme parks, amusement parks, historical, educational or trade museums, cultural centers, or spectator or participatory sports facilities, generally available to the public, including without limitation thereto marinas, beaches, bathing facilities, golf courses, theaters, arenas and auditoriums."

E. The first paragraph of Section 4-29-60 of the 1976 Code, as last amended by Act 518 of 1980, is further amended by inserting after "chapter;" on line three: "that the project is anticipated to benefit the general public welfare of the locality by providing services, employment, recreation or other public benefits not already provided locally; ".When amended, the paragraph shall read:

"Prior to undertaking any project, the governing board shall find: that the project will subserve the purposes of this chapter; 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; that the project will give rise to no pecuniary liability of the county or incorporated municipality or a charge against its general credit or taxing power; the amount of bonds required to finance the project; 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; the amount necessary to be paid each year into any reserve funds which the governing board may deem it advisable to establish in connection with the retirement of the proposed bonds and the maintenance of the project; and, unless the terms of the financing agreement with respect to a

project provide that the industry shall maintain the project and carry all proper insurance with respect thereto, the estimated cost of maintaining the project in good repair and keeping it properly insured. The determinations and findings of the governing board required to be made above shall be set forth in the proceedings under which the proposed bonds are to be issued."

Report required after selling of bonds or notes

SECTION 10. The State Treasurer shall report to the joint Bond Review Committee, the House Ways and Means Committee and the Senate Finance Committee immediately after selling any general obligation bonds or anticipation notes. This report shall include the total amount of the issue, the interest rate charged (specified by year if the rate is not the same each year), the time contracted to pay the debt service and the principal payment schedule.

Winthrop College bond issue

SECTION 11. Sections 3 and 5 of Act 488 of 1965 and Section 4 of Act 488 of 1965, as last amended by Act 1158 of 1966, are amended to read :

"Section 3. The trustees are hereby authorized and empowered to acquire additional student housing facilities which shall include all necessary related facilities, to the extent they shall approve and can acquire with the proceeds of the bonds authorized by this act. The trustees are also authorized and empowered to effect the refunding of all or any part of the bonds now or hereafter outstanding, which have been issued pursuant to this act.

Section 4. Upon receiving the approval of the State Budget and Control Board, the trustees may from time to time borrow such sums as may be necessary to accomplish the purposes of this act and to evidence such borrowings by bonds issued pursuant to this act in such aggregate principal amount as they determine, except that other provisions of this act to the contrary notwithstanding, there shall not be outstanding at any time bonds issued pursuant to this act in excess of eleven million dollars.

Section 5. All bonds issued pursuant to this act shall be payable from the entire revenues derived by Winthrop College from all student housing facilities which it may now or hereafter possess or utilize, including, if the trustees so elect, any net revenues derived from related facilities. The trustees shall be empowered to so define

the entire revenues as to eliminate therefrom (a) revenues derived from casual users, during the periods when the dormitories are not in regular use, and (b) revenues derived during summer school sessions, and which are used, pursuant to legislative directive, for the operation and maintenance of such summer school sessions, but this exception (b) shall not apply if, during the life of the bonds, it shall become the general custom of as much as forty percent of the student body to attend summer school sessions, either in lieu of some other session or as a part of a plan of accelerated college education."

Bond authorization only in odd-numbered years

SECTION 12. Act 1377 of 1968, as last amended by Section 13 of Act 518 of 1980, is further amended by striking: "State Capital Improvement Bonds may be authorized by the General Assembly during the 1981 legislative session, and thereafter only in odd numbered years. and inserting:

"State Capital Improvement Bonds may be authorized by the General Assembly during the 1981 legislative session, and thereafter only in odd-numbered years."

Findings-defeasance of outstanding bonds-procedure

SECTION 13. A. The General Assembly finds that, notwithstanding the fact that high interest rates make it undesirable to redeem outstanding bonds bearing lower interest rates, it frequently becomes desirable to effect the defeasance of outstanding bonds through a deposit of government obligations and monies, which will produce on the occasions required, monies with which to pay, when due, the principal and interest on outstanding bonds. Statutory authorization permitting defeasance of bonds exists only in the instance of state institution bonds found in the Code of Laws of South Carolina, 1976.

B. The 1976 Code is amended by adding to Title 11 :

Section 11-14-110. The State, acting through the Budget and Control Board, all agencies and institutions and all counties, municipal corporations, authorities, special purpose districts and other political units may effect the defeasance of any outstanding bonds, notes or other obligations by depositing in a special irrevocable trust fund, to be held by the State Treasurer or a bank or other financial institution

approved by the State Treasurer, obligations of the United States or any of its agencies and monies which will provide the sums required to pay when due the principal of, redemption premium, if any, and interest oil the bonds sought to be defeased. Upon the establishment and funding in full of such special trust fund, the bonds so defeased shall no longer be deemed outstanding for any purpose.

Section 11-14-120. In all instances where all or any portion of the debt of one public agency or political unit has been assumed by another public agency or political unit, it shall be presumed that the assumed obligations will be appropriately paid by the public agency or political unit assuming such debt and tile unpaid debt shall be deemed to have been defeased to the same extent as debt defeased in the manner provided for in Section 11-14-110.

Section 11-14-130. It is not intended that any action pursuant to the authorization of this chapter shall impair any obligation of any contract between the issuer and any holder of any bond, note or other obligation of the issuer and, if for any reason any trust established shall fall, in whole or in part, to effect the payments intended or required to be made, or if in the instance of debt assumed as contemplated by Section 11-14-120, the public agency or political unit assuming such debt shall fail to pay such assumed debt, in whole or in part, then in each instance the issuer shall forthwith effect payment of such principal or interest through the means and in the manner originally provided."

Additional members of Joint Bond Review Committee

SECTION 14. Act 761 of 1976, as last amended by Act 518 of 1980, is further amended by adding:

"Section 2A. In addition to the members provided for by Section 2, two additional members shall be appointed by the Chairman of the Ways and Means Committee of the House of Representatives from the membership of that body. Two additional members shall be appointed by the Chairman of the Finance Committee of the Senate from the membership of the Senate. Members shall serve the same terms as the members of the committee provided for in Section 2."

South Carolina State Family Farm Development Authority Act

SECTION 15. A. The General Assembly finds:

1. The establishment of the South Carolina State Family Farm Development Authority (authority) is in all respects for the benefit

of the people of this State for the improvement of their health and welfare and the promotion of the economy, which are public purposes.

2. The authority will be performing an essential governmental function in the exercise of the powers and duties conferred upon it by this act.

3. There exists a serious problem in the State regarding the ability of farmers of the beneficiary class to acquire agricultural land, improvements and depreciable agricultural property.

4. Each of the pursuits included in the definition of farming is a vital industry to this State.

5. The production of timber has been found to attract industries using timber products to locate and remain in the State, thereby adding to the economic well-being of its citizens.

6. The barriers to many farmers in the acquisition of agricultural land, improvements and depreciable agricultural property is conducive to consolidation of acreage of agricultural land with fewer individuals and the exclusion of qualified farmers of the beneficiary class from the pursuit of farming, resulting in a grave threat to the health, safety and welfare of the residents of the State.

7. These conditions result in a loss in population, unemployment and a movement of persons from rural communities to urban areas accompanied by added costs to communities for creation of new public facilities and services.

8. One major cause of this condition has been recurrent shortages of funds in private channels and the high interest cost of borrowing.

9. These shortages and high interest costs have made the sale to and purchase by many farmers of agricultural land, improvements and depreciable agricultural property a virtual impossibility in many parts of the State.

10. The ordinary operations of private enterprise and private capital markets have not in the past corrected these conditions.

11. A stable supply of adequate funds for agricultural financing is required to encourage farmers in an orderly and sustained manner and reduce the problems described in this section.

12. It is necessary to create a state authority to encourage ownership, expansion and improvement of farming operations by farmers of the beneficiary class by providing funds for purchase money loans to farmers for agricultural land, improvements and depreciable agri-

cultural property to augment the limited supply of capital available for such purposes through private channels and reduce the interest cost of such capital through the use of public financing.

13. The promotion of the farming economy, maintenance of employment and generation of increased revenues, as provided in Chapter 47 of Title 46 of the 1976 Code, are public purposes and uses for which public monies may be borrowed, expended, advanced, loaned or granted.

B. The 1976 Code is amended by adding to Title 46:

Section 46-47-10. This chapter shall be known and may be cited as the 'South Carolina State Family Farm Development Authority Act'.

Section 46-47-20. Unless a different meaning clearly appears from the context, as used in this chapter:

1. 'Agricultural land' means land suitable for use in farming.

2. 'Agricultural improvements' means any capital improvements, buildings, structures, fixtures, including irrigation systems, suitable for use in farming.

3. 'Authority' means the South Carolina State Family Farm Development Authority established in Section 46-47-30.

4. 'Beneficiary class' means the class of farmers who shall:

(a) be farmers and farm families of low and moderate income.

(b) be a resident of the State or produce evidence satisfactory to the authority that he intends to become a resident and shall begin farming within the State.

(c) use the agricultural land, agricultural improvements or depreciable agricultural property proposed to be purchased for farming within the State.

(d) apply the proceeds of each mortgage loan to the acquisition by the farmer of agricultural land or agricultural improvements thereon, or depreciable agricultural property totaling no more than six hundred twenty-five thousand dollars in fair-market value.

(e) demonstrate to the authority's satisfaction that the farmer can repay the loan from farming operations within the State.

(f) be credit worthy according to standards prescribed by the authority.

(g) inclusive of amounts estimated to be received as a result of the acquisition of the agricultural land, agricultural improvements or depreciable agricultural property to be financed with each mortgage loan or secured loan, receive at least sixty percent of the combined gross incomes of the farmer, his spouse and dependents from farming operations within the State.

(h) have not previously received a mortgage loan or secured loan made under the provisions of this chapter. This restriction shall not apply if the amount of the loan previously received for such property plus the amount of the loan sought does not exceed six hundred twenty-five thousand dollars for agricultural land or agricultural improvements or depreciable agricultural property.

(I) satisfy such other criteria as the authority prescribes by regulation.

5. 'Bonds' means any bonds, notes, debentures, interim certificates, bond anticipation notes or other evidences of indebtedness issued by the authority pursuant to this chapter.

6. 'Depreciable agricultural property' means personal property suitable for use in farming for which an income tax deduction for depreciation is allowable in computing federal income tax under the Internal Revenue Code of 1954, as amended.

7. 'Family farm' means agricultural land, agricultural improvements and depreciable agricultural property with which a farmer of the beneficiary class engages or intends to engage in farming.

8. 'Farmer' means a natural person who engages in farming or wishes to engage in farming within the State or a firm, partnership, corporation or other entity, each of the owners or partners of which is a natural person qualifying as a member of the beneficiary class.

9. 'Farmers and farm families of low and moderate income' means those farmers and households engaged in farming on a family farm from which their adjusted gross income is less than or falls between seventy-five and one hundred and twenty-five percent of the 'median gross income' of all households in South Carolina as determined on the basis of the latest available statistics furnished to the authority by the Division of Research and Statistical Services of the State Budget and Control Board. Adjusted gross income shall be defined as in Section 12-7-660. A deduction for each member of the family equal to an amount for personal exemptions as defined by Section 12-7-310 shall be allowed in order to qualify a person or family as a member of the 'beneficiary class'.

10. 'Farming' means the production of agricultural crops, livestock, livestock products, poultry, poultry products, shellfish, milk or other dairy products, timber, fruit or other horticultural products, the products of aquaculture and shellfish culture and the operation of fish hatcheries and commercial fishing and fisheries.

ll.'Mortgage' means a mortgage or other instrument which constitutes a lien on land, improvements and other real property located on such land to secure a debt of the fee simple owner of such land.

12. 'Mortgage lender' means any bank or trust company, savings bank, national banking association, savings and loan or building and loan association, life insurance company, mortgage banker or other financial institution or governmental entity authorized to transact business in the State.

13. 'Mortgage loan , means an interest-bearing obligation secured by a mortgage on the agricultural land or improvements purchased with the proceeds of such loan and such other real property as the authority may require.

14. 'Mortgage seller' means a person, firm, partnership, corporation or other entity which sells agricultural land, agricultural improvements or depreciable agricultural property to a farmer and accepts as all or a portion of the purchase price an obligation of the purchasing farmer which constitutes a mortgage loan or secured loan secured by a lien on the agricultural land, improvements or depreciable agricultural property purchased.

15. 'Secured loan' means a financial obligation secured by a chattel mortgage, security agreement or other instrument creating a lien on or security interest in depreciable agricultural property purchased with the proceeds of such loan and such other personal property as the authority may require.

Section 46-47-30. There is created a public body corporate and politic and an agency of the State to be known as the South Carolina State Family Farm Development Authority to undertake programs which assist farmers of the beneficiary class in acquiring agricultural land, agricultural improvements and depreciable agricultural property for the purpose of farming.

Section 46-47-40. The powers of the authority shall be vested in and exercised by a board of commissioners. The Governor shall appoint seven persons to be commissioners who shall have experience in the fields of farming, agricultural mortgage finance, banking or

real estate. The Governor shall appoint a chairman from among the commissioners.

The commissioners shall serve for terms of four years and until their successors are appointed and qualify. All vacancies shall be filled for the unexpired term in the manner of the original appointment. A certificate of the appointment or reappointment of any commissioner shall be filed in the offices of the Secretary of State and the authority and such certificate shall be conclusive evidence of the due and proper appointment of the commissioner.

The Governor, the Commissioner of Agriculture and the Chairmen of the Senate and House Committees of Agriculture and Natural Resources shall serve ex officio as commissioners of the authority. Ex officio members may designate persons to represent them at meetings.

Section 46-47-50. As soon as possible after appointment, the commissioners shall organize by choosing a vice chairman and such other officers as deemed desirable and adopting bylaws and regulations suitable for the purpose of organizing and conducting the business.

The net earnings of the authority, beyond that necessary for retirement of its bonds or other obligations or to implement the public purposes and programs authorized by this chapter, shall not inure to the benefit of any person other than the State. Upon termination of the existence of the authority, title to all property owned by it, including net earnings, shall vest in the State.

Section 46-47-60. In the performance of its duties, implementation of its powers and the selection of specific programs and mortgage loans, secured loans or loans to mortgage lenders to receive its assistance, the authority:

1. Shall not become an owner of real or personal property for which a mortgage loan or secured loan has been made or purchased by it or by which any mortgage loan or secured loan is secured except on a temporary basis where necessary in order to implement its programs, to protect its investments by means of foreclosure or other means or facilitate transfer of real or personal property for the use of farmers of the beneficiary class.

2. Shall exercise diligence and care in selection of mortgage loans, secured loans or loans to mortgage lenders to receive its assistance and shall apply customary and acceptable business and lending standards in the selection and subsequent implementation of the programs

authorized by this chapter. The authority may delegate the necessary authority for the implementation of the programs authorized to any governmental agency, mortgage lender or other financial institution. The authority shall retain ultimate responsibility and provide proper

oversight for such implementation.

3. Shall establish the programs authorized to aid farmers of the beneficiary class in the acquisition of agricultural land, agricultural improvements and depreciable agricultural property for the purpose of farming.

Section 46-47-70. The authority shall have and possess all powers necessary to carry out its functions and establish and implement the programs authorized by this chapter including, but not limited to, the power to:

1. Borrow money through the issuance of its negotiable bonds as provided in this chapter in order to finance its programs.

2. Sue and be sued in its own name.

3. Have and alter a corporate seal.

4. Make and alter bylaws for its management consistent with the provisions of this chapter.

5. Make and execute agreements, contracts and other instruments with any public or private entity including, but not limited to, any federal governmental agency or instrumentality. It may make and execute contracts with any firm of independent certified public accountants to prepare reports on its behalf. All political subdivisions, public agencies and other state agencies may enter into contracts authorized pursuant to this chapter and otherwise cooperate with the authority. The authority shall be audited annually by the State Auditor or may, upon his approval, execute contracts with an independent certified public accounting firm.

6. Acquire, hold, improve, mortgage, lease and dispose of real and personal property including, but not limited to, the power to sell at public or private sale or otherwise dispose of, upon such terms and conditions as it shall approve, with or without public bidding, any real or personal property including, without limitation, any mortgage loan, secured loan or other obligation or interest therein owned by it.

7. Procure insurance against any loss in connection with its operations, property interests and other assets, including its interest in any agricultural land, agricultural improvements and depreciable agri-

cultural property which may include pool insurance on any group of mortgage loans or secured loans.

8. Subject to any agreement with bondholders, invest or deposit monies in any manner determined by the State Treasurer.

9. Accept appropriations, gifts, grants, loans or other aid from public or private entities. A record of all gifts or grants, stating the type, amount and donor, shall be clearly set out in its annual report, along with the record of other receipts.

10. In cooperation with other local, state or federal governmental agencies or instrumentalities, conduct studies of the needs of farmers of the beneficiary class and gather and compile data useful to facilitate decision making.

11. Contract with architects, engineers, attorneys, accountants and experts in farming, construction, finance and other advisors or enter into contracts or agreements with local, state or federal governmental agencies.

12. Make, alter and repeal regulations respecting the implementation of its programs authorized by this chapter consistent with the provisions of this chapter.

13. Make mortgage loans in such amounts and on such terms and conditions as it shall approve to farmers of the beneficiary class for the purpose of providing agricultural land and agricultural improvements for farming within the State and make secured loans in such amounts and on such terms and conditions as it shall approve to farmers of the beneficiary class for the purpose of providing depreciable agricultural property for farming within the State. The terms and conditions of such loans shall prescribe that the undertakings for which such mortgage loans and secured loans are made shall be available to farmers of the beneficiary class on terms reflecting any savings resulting from its participation in such financings.

14. Invest in, purchase and make commitments to purchase mortgage loans and secured loans, including federally insured or guaranteed mortgage loans and construction loans for which the federal government is obligated to provide permanent financing mortgages or participations in such mortgages from any mortgage lender or seller in such amounts and on such terms and conditions as it shall approve. Such mortgages shall secure mortgage loans to farmers of the beneficiary class made for the purpose of providing agricultural land or agricultural improvements for farming within the State.

15. Make loans to or purchase securities from mortgage lenders under such terms and conditions as it shall approve, including a requirement that the proceeds be used by the mortgage lenders for making mortgage loans for the purpose of providing agricultural land or agricultural improvements or making secured loans for the purpose of providing depreciable agricultural property to farmers of the beneficiary class for farming within the State.

16. Require that loans made to mortgage lenders, pursuant to Section 46-47-100, shall be additionally secured as to payment of both principal and interest by a pledge of and lien upon collateral security in such amounts and consisting of obligations and securities of the class enumerated in such section and, in the event of a default tinder any such arrangement with a mortgage lender, to take possession of or otherwise acquire, hold or sell on such terms and conditions as it shall approve, such collateral security without regard to whether it would, under any other provisions of this chapter, otherwise have the authority so to act.

17. Make and execute contracts with mortgage lenders or other financial institutions for the servicing of mortgage loans and secured loans made or acquired by it pursuant to this chapter and to pay the reasonable value of services rendered to it pursuant to these contracts.

18. Require reasonable fees and charges for the rendering of its services which, unless otherwise provided for under the proceedings authorizing any of its bonds, may be used by it for any of its corporate purposes.

19. Institute any action or proceeding necessary to require the performance of any agreement relating to any mortgage loan or secured loan, any agricultural land, agricultural improvements or depreciable agricultural property on which it has a lien or in which it has any interest or other real or personal property securing a mortgage loan or secured loan and the use of the proceeds of loans made by it.

20. Institute any action necessary to require mortgage lenders, mortgage sellers and farmers to abide by the terms of any agreement pursuant to which such mortgage lender, mortgage seller or farmer obtained a loan or other financial assistance from it.

21. Acquire title to and sell at public or private sale, with or without public bidding, or otherwise dispose of any real or personal property pledged as security for a mortgage loan, secured loan or a loan made to a mortgage lender pursuant to Section 46-47-100 where necessary to accomplish the purposes and intent of this chapter or

where necessary to enforce a lien on any property, security or collateral pledged to it, including any agricultural land, agricultural improvements or depreciable agricultural property on such terms and conditions as it shall approve.

22. Avail itself of all legal and equitable remedies to protect properties or other securities in which it has any interest.

23. Institute any action or proceeding necessary to insure against or prevent any loss in connection with its property and other assets and those of mortgage lenders, mortgage sellers and farmers who obtained a loan or other financial assistance from it.

24. Administer, coordinate, establish priorities and make commitments for any funds or programs over which it has jurisdiction, including any funds or programs committed to it by the federal government and loan, commit or grant any funds or subsidies committed to its jurisdiction in any manner not inconsistent with any existing obligation.

25. Utilize all income earned on investments, including income earned by the investment of funds held by or for the account of it and any income earned from the sale of any mortgage loans or secured loans or any property, security or collateral pledged to or owned by it in accordance with its proceedings providing for the issuance of any bonds and to use any income not otherwise provided for under the proceedings authorizing any of its bonds for any of its corporate purposes.

26. Create and establish such funds and accounts as may be necessary or desirable in connection with the issuance of bonds, including any reserve funds, or for its corporate purposes. To the extent not otherwise required in any agreement with the bondholders, all funds of the authority shall be deposited in a bank or banks to be designated by the State Treasurer. Funds of the authority shall he paid out only upon the signature of the chairman of the authority or his designee upon written warrants of the Comptroller General drawn on the State Treasurer to the payee designated in the requisition.

27. Initiate counseling and management programs for farmers, including farmers of the beneficiary class, occupying or possessing agricultural land, agricultural improvements or depreciable agricultural property in which it has an interest.

28. Provide advice, technical assistance, farm management programs and other services to public and private entities, mortgage lenders, mortgage sellers and farmers, including farmers of the beneficiary class and others relating to farming on family farms.

29. Participate in and cooperate with the programs of the Farmers Home Administration, the Federal Land Banks and any other agency or instrumentality of the United States and with any program of another agency of the State or a political subdivision in the administration of any of the programs authorized by, or the exercise of any of the powers granted by, this chapter.

In exercising its powers, the authority shall operate in a sound, economical and prudent manner and any powers granted by this chapter may be exercised by the adoption of a resolution at any regular or special meeting. A copy of any resolution certified by the chairman, vice chairman, secretary or executive director shall be conclusive evidence of the exercise of such powers in accordance with this chapter.

Section 46-47-80. The following terms and conditions shall apply to each mortgage loan and secured loan made by the authority pursuant to Section 46-47-90, made by a mortgage lender with the proceeds of a loan made to such mortgage lender by the authority pursuant to Section 46-47-100 or purchased by the authority pursuant to Section 46-47-110:

1. Each farmer receiving a mortgage loan or secured loan under the provisions of this chapter shall be a member of the beneficiary class.

2. The authority may provide in a mortgage loan or a secured loan made under the provisions of this chapter that the loan may not be assumed or any interest in the agricultural land, agricultural improvements or depreciable agricultural property financed with a mortgage loan or secured loan may not be leased, sold or otherwise conveyed or disposed of without its prior written consent and may provide a due-on-sale clause with respect to the occurrence of any of the foregoing events without its prior written consent. The authority may provide by regulation the grounds for permitted assumptions of a mortgage loan or secured loan or for the leasing, sale or other conveyance or disposal of any interest in the agricultural land, agricultural improvements or depreciable agricultural property securing such a mortgage loan or secured loan. The authority shall provide and state

in a mortgage loan or secured loan that the authority has the power to raise the interest rate of the loan to the prevailing market rate if the mortgage loan or secured loan is assumed by a person who is not a farmer of the beneficiary class.

3. The mortgage loan or secured loan shall be secured in such manner, shall bear interest at such rate, shall be repaid in such period, not to exceed forty-five years, as the authority shall by regulation prescribe. The amortization of principal of such loan, the payments of interest, fees and charges shall at all times be sufficient to permit the authority together with other available funds to make the payments on its bonds plus any administrative or other costs of the authority in connection with such loan.

4. Each mortgage loan and secured loan made by a mortgage lender and thereafter sold to the authority shall be made to a farmer satisfying such underwriting and credit standards as shall be determined from time to time by regulation so as to insure payment of the principal and interest on the authority's bonds and may include adoption by reference of such mortgage lender's usual underwriting and credit standards. Each mortgage loan and secured loan made by the authority to a farmer of the beneficiary class or purchased from a mortgage seller shall be made to a farmer satisfying such underwriting and credit standards as shall be determined from time to time by regulation of the authority so as to insure payment of the principal and interest on the authority's bonds.

5. The authority shall have determined that such loan is not otherwise available to such farmer, wholly or in part, without the assistance of financing under this chapter, upon reasonably equivalent terms and conditions.

Section 46-47-90. 1. The authority may develop a direct loan program for farmers of the beneficiary class by making mortgage loans or secured loans to such farmers to facilitate the acquisition of agricultural land, agricultural improvements and depreciable agricultural property by such farmers. It shall exercise the powers granted to it in this chapter in order to fulfill the goal of providing such financial assistance to farmers of the beneficiary class in the acquisition of agricultural land, agricultural improvements and depreciable agricultural property.

2. The authority may make mortgage loans or secured loans satisfying the criteria set forth in Section 46-47-80 including, but not limited

to, mortgage loans or secured loans insured, guaranteed or otherwise secured by the federal government or a federal governmental agency or instrumentality, a state agency or private mortgage insurers, to farmers of the beneficiary class to provide financing for the acquisition of agricultural land and agricultural improvements or depreciable agricultural property.

3. Mortgage loans and secured loans shall contain terms and provisions, including interest rates, and be in a form established by regulations of the authority. The authority may require the farmer to execute a note, loan agreement or other evidence of indebtedness and furnish such additional assurances and guarantees, including insurance, related to protecting the security of the mortgage loan or secured loan as the authority deems necessary or appropriate.

Section 46-47-100. 1. The authority may make and contract to make loans to mortgage lenders on terms and conditions it determines are related to protecting the security of its investment and implementing the purposes of this chapter. Mortgage lenders may borrow from the authority in accordance with the provisions of this section and its regulations.

2. The authority shall require as a condition of each loan to a mortgage lender that the mortgage lender, within a reasonable period after receipt of the loan proceeds as it prescribes by regulation, shall have entered into written commitments to make and, within such reasonable period thereafter as it prescribes by regulation, shall have disbursed the loan proceeds in new mortgage loans or secured loans satisfying the criteria set forth in Section 46-47-80 to farmers of the beneficiary class in an aggregate principal amount of not less than the amount of the loan.

3. The authority shall require the submission to it by each mortgage lender to which it has made a loan of evidence satisfactory to it of the making of new mortgage loans or secured loans as required by subsection 2 of this section and in that connection may, through its members, employees or agents, inspect the books and records of such mortgage lender.

4. Compliance by a mortgage lender with the terms of its agreement with the authority with respect to the making of new mortgage loans or secured loans to farmers of the beneficiary class may be enforced by decree of any circuit court of this State. The authority may require, as a condition of a loan to a national banking association or

federally chartered savings and loan association, the consent of the association to the jurisdiction of the circuit court of the State over any enforcement proceeding. The authority may also require, as a condition of a loan to a mortgage lender, agreement by the mortgage lender to the payment of penalties to it for violation by the mortgage lender of any agreement with it and the penalties shall be recoverable at the suit of the authority.

5. The authority shall require that each mortgage lender receiving a loan pursuant to this section shall issue and deliver to the authority evidence of its indebtedness to the authority which shall constitute a general obligation of the mortgage lender and shall bear a date, mature at a time, be subject to prepayment and contain other provisions consistent with this section and related to protecting the security of the authority's investment and the bonds issued by the authority in connection with such loan, as the authority determines.

6. Notwithstanding any other provision of this section, the interest rate and other terms of loans to mortgage lenders made from the proceeds of an issue of bonds of the authority shall be at least sufficient, together with any available funds, to permit the authority to make the payments on its bonds plus any administrative or other costs of the authority in connection with such loan.

7. The authority may require that loans to mortgage lenders be additionally secured as to payment of both principal and interest by a pledge of and lien upon collateral security by special escrow funds or other forms, of guarantee and in amounts and forms as it by resolution determines to be necessary to assure the payment of such principal and interest as they become due. Collateral security shall consist of direct obligations of, or obligations unconditionally guaranteed by, the United States of America, obligations satisfactory to the authority which are issued by other federal agencies, direct obligations of or obligations guaranteed by the State or a political subdivision of the State or other investment obligations approved by the authority.

8. The authority may require that collateral for loans be deposited with a bank, trust company or other financial institution acceptable to it, located in this State and designated by it as custodian. In the absence of that requirement, each mortgage lender shall enter into an agreement with the authority containing provisions it deems necessary to adequately identify and maintain the collateral, service the collateral and require the mortgage lender to hold the collateral as an

agent for the authority and be accountable to it as the trustee of an express trust for the application and disposition of the collateral and if required by any agreement with bondholders the income from it. The authority may also establish additional requirements it deems necessary with respect to the pledging, assigning, setting aside or holding of collateral and the making of substitutions for it or additions to it and the disposition of income and receipts from it.

9. The authority may require as a condition of loans to mortgage lenders any representations and warranties it determines are necessary to secure the loans and carry out the purposes of this chapter.

10. The authority may require the farmer receiving a mortgage loan or a secured loan from the proceeds of a loan from it to a mortgage lender to satisfy conditions and requirements normally imposed by such mortgage lender in making similar loans, including but not limited to the purchase of capital stock in the Federal Land Bank.

Section 46-47-110. 1. The authority may purchase and make advance commitments to purchase from mortgage lenders and mortgage sellers mortgage loans and secured loans satisfying the criteria set forth in Section 46-47-80 made to farmers of the beneficiary class at such prices and upon such terms and conditions as it determines. However, the purchase price for each mortgage loan or secured loan which the authority purchases pursuant to this section shall not exceed the total of the unpaid principal balance of the mortgage loan or secured loan purchased plus accrued interest. Mortgage lenders and mortgage sellers are authorized to sell mortgage loans or secured loans to the authority in accordance with the provisions of this section and the regulations of the authority.

2. The authority shall require as a condition of purchase of mortgage loans or secured loans from mortgage lenders and mortgage sellers that the mortgage lenders and mortgage sellers certify that the mortgage loans or secured loans purchased are loans satisfying the criteria set forth in Section 46-47-80 made to farmers of the beneficiary class. The authority may make a commitment to purchase mortgage loans or secured loans from mortgage lenders and mortgage sellers in advance of the time such loans are made by mortgage lenders and mortgage sellers. The authority shall require as a condition of a commitment that mortgage lenders and mortgage sellers certify in writing that all mortgage loans or secured loans represented by the commitment shall be loans satisfying the criteria set forth in Section

46-47-80 made to farmers of the beneficiary class and that the mortgage lenders and mortgage sellers will comply with all applicable authority regulations.

3. The authority shall require the submission to it by each mortgage lender and mortgage seller from which the authority purchases a mortgage loan or a secured loan of evidence satisfactory to the authority that such mortgage loan or secured loan satisfies the conditions of this section and in that connection may, through its members, employees or agents, inspect the books and records of a mortgage lender.

4. Compliance by a mortgage lender or mortgage seller with the terms of its agreement with the authority with respect to the making of mortgage loans or secured loans to farmers of the beneficiary class may be enforced by decree of a circuit court of the State. The authority may require as a condition of purchase of mortgage loans or secured loans from any national banking association or federally chartered savings and loan association or any nonresident mortgage seller the consent to the jurisdiction of the circuit courts of this State over any enforcement proceeding. The authority may also require as a condition of the purchase of a mortgage loan or secured loan from a mortgage lender or mortgage seller the agreement by the mortgage lender or mortgage seller to the payment of penalties to the authority for violation by the mortgage lender or mortgage seller of its agreement with the authority and the penalties shall be recoverable at the suit of the authority.

5. The authority may require as a condition of purchase of a mortgage loan or secured loan from a mortgage lender or mortgage seller that the mortgage lender or mortgage seller make such representations and warranties as the authority requires. A mortgage lender or mortgage seller is liable to the authority for damages suffered by the authority by reason of the untruth of a representation or the breach of warranty. The authority may provide that in the event a representation proves to be untrue when made or in the event of a breach of warranty, the mortgage lender or mortgage seller shall, at the option of the authority, repurchase the mortgage loan or secured loan for the original purchase price adjusted for amounts subsequently paid with respect to the principal of such loan plus accrued interests.

6. The authority shall require the recording of an assignment of each mortgage loan or secured loan purchased by it from a mortgage

lender or mortgage seller and is not required to notify the borrower of its purchase of the mortgage loan or secured loan. The authority is not required to inspect or take possession of the loan documents if the mortgage lender from which the mortgage loan or secured loan is purchased enters into a contract to service the loan and account to the authority for it.

Section 46-47-120. Subject to any agreement with bondholders, the authority may renegotiate a mortgage loan or secured loan or a loan to a mortgage lender in default, waive a default or consent to the modification of the terms of a mortgage loan or secured loan or a loan to a mortgage lender, forgive or forbear all or part of a mortgage loan or secured loan or a loan to a mortgage lender and commence, prosecute and enforce a judgment in any action, including but not limited to a foreclosure action, to protect or enforce any right conferred upon it by law, or by any mortgage or secured loan agreement, contract or other agreement and in connection with any action, bid for and purchase the property or acquire or take possession of it, complete, administer, pay the principal of and interest on any obligation incurred in connection with the property and dispose of and otherwise deal with the property securing a mortgage loan, secured loan or a loan to a mortgage lender in default in such manner the authority deems advisable to protect its interests.

Section 46-47-130. 1. Bonds shall be authorized by resolution of the authority, shall bear such dates and shall mature at such times as the resolution provides, except that no bonds shall mature more than forty-five years from the date of their issue. The bonds shall be special obligations of the authority payable solely from the revenues and receipts pledged by it in the resolution authorizing the bonds. Bonds may be issued, upon obtaining the approval of the Budget and Control Board pursuant to Section 46-47-140, in such principal amount, without limitation, as the authority shall determine and the proceeds shall be used for the program for which issued but the proceeds may also be used for the payment of the interest on such bonds for not more than one year from the date of issuance of such bonds, the establishment of such reserves as may be deemed necessary by the authority, the payment of any expenses in connection with the issuance and the payment of my other expenditures incident to and necessary or convenient in carrying out its purposes and powers in connection with such program. Bonds may be issued as serial bonds

payable in annual installments or as term bonds, with or without mandatory annual sinking fund requirements or a combination. Bond shall bear interest at such rates as shall be approved by the authority Bonds shall be in such denominations, shall be executed in such manner, shall be payable in such medium of payment, at such places and shall be subject to such terms of prepayment or redemption a the resolution may provide. The bonds shall be in such form, either coupon or fully registered, payable to the order of a named payee or payable to bearer and carry such registration and conversion privileges as the resolution may provide. The bonds may be sold by the authority, at public or private sale, at such prices as it shall determine. The bonds may be sold at public or private sale and if by private sale the authority shall jointly, with the State Treasurer, designate the syndicate manager or managers.

2. Any resolution authorizing bonds or any issue of bonds may contain provisions which shall be part of the contract with the holders as to:

(a) pledging revenues of the authority to secure the payment of the bonds or any issue of bonds subject to the provisions of this chapter and to such agreements with other bondholders as may then exist;

(b) pledging assets of the authority, including mortgages, secured loan agreements and obligations secured by the same, to secure the payment of the bonds or of any issue of bonds, subject to such agreements with other bondholders as may then exist;

(c) mortgaging real or personal property of the authority then owned or thereafter acquired;

(d) prescribing the use and disposition of payments of principal and income derived from mortgages or other security owned or controlled by the authority ;

(e) providing for the creation of reserves or sinking funds and the regulation and disposition;

(f) imposing limitations on the purpose to which the proceeds of sale of bonds may be applied;

(g) imposing 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;

(h) prescribing the procedure, if any, by which the terms of any contract with bondholders may be amended, the amount of bonds

the holders of which must consent thereto, and the manner in which such consent may be given;

(I) imposing limitations on the amount of monies to be expended by the authority for operating expenses of the authority;

(j) vesting in trustees such property, rights, powers and duties in trust as the authority may determine, which may include any or all of the rights, powers and duties of the trustees appointed by the bondholders pursuant to this chapter and limiting or abrogating the right of the bondholders to appoint a trustee or limiting the rights, powers and duties of such trustee;

(k) defining the acts and omissions to acts which shall constitute a default in the obligations and duties of the authority to the holders of the bonds and providing for the rights and remedies of the holders of the bonds in the event of such default, including as a matter of right the appointment of a receiver. Such rights and remedies shall not be inconsistent with the general laws of the State;

(l) providing for other matters of like or different character which in any way affect the security or protection of the holders of the bonds.

3. Any pledge made by the authority shall be valid and binding from the time when the pledge is made. The revenues, monies or property so pledged and thereafter received by the authority shall immediately be subject to the lien of such pledge without any physical delivery or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the authority, irrespective of whether such parties have notice.

Neither the resolution nor any other instrument by which a pledge is created need be recorded but a transcript of proceedings shall be filed in compliance with Section 11-15-20.

4. Neither the commissioners of the authority nor any other person executing such bonds shall be subject to any personal liability or accountability by reason of their issuance.

5. The authority, subject to such agreements with bondholders as may then exist, shall have power out of any funds available to purchase bonds, which shall thereupon be cancelled, at a price not exceeding:

(a) if the bonds are then redeemable, the redemption price then applicable plus accrued interest, or

(b) if the bonds are not then redeemable, the redemption price applicable on the first date after such purchase upon which the bonds become subject to redemption plus accrued interest.

6. The bonds may be secured by a trust indenture by and between the authority and a corporate trustee which may be any trust company or bank having the power of a trust company within or without the State upon approval by the State Treasurer.

The trust indenture may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the authority in relation to the exercise of its corporate powers and functions and the custody, safeguarding and application of all monies. The authority may provide by the trust indenture for the payment of the proceeds of the bonds and the revenues to the trustee under the trust indenture or other depository, and for the method of disbursement, with such safeguards and restrictions as it may determine. All expenses incurred in carrying out the trust indenture may be treated as a part of the operating expenses of the authority.

Monies in the funds and accounts held by the trustee shall be invested or deposited by the trustee upon written direction of the State Treasurer.

7. In case any of the commissioners or officers of the authority, whose signatures appear on any bonds or coupons, shall cease to be commissioners or officers before the delivery of the bonds, the signatures shall, nevertheless, be valid and sufficient for all purposes the same as if the commissioners or officers had remained in office until delivery.

8. The authority may exercise in connection with the issuance of any of its obligations, including notes, bonds, bond anticipation notes and refunding notes or bonds, all or any part or combination of the powers granted herein, and may make covenants other than and in addition to the covenants herein expressly authorized, of like or different character and make such covenants and do any and all such acts and things as may be necessary or convenient or desirable in order to secure its bonds or, in the absolute discretion of the authority, as will tend to make the bonds more marketable notwithstanding that such covenants, acts or things may not be enumerated herein.

9. Notwithstanding the limitations set forth in the first sentence of subsection 1 of this section, any earnings, fees or charges derived by the authority from any of the programs authorized by Sections 46-47-90, 4647-100 and 4647-110 not required by the proceedings pursuant to which bonds were issued to be used for payment of such bonds or for any reserves required are to be used by the authority for any of its corporate purposes, including the promotion of any program which the authority is authorized to undertake.

Section 46-47-140. Following a determination made by the authority that it is necessary to sell bonds to develop and implement one of the programs authorized by this chapter and a finding that the revenues or other monies estimated to thereafter be available therefor will provide monies required for the payment of the principal and interest on the bonds outstanding and the bonds then proposed to be issued, the authority shall submit the following information to the Budget and Control Board:

1. The principal amount of the bonds proposed to be issued.

2. The purpose for which the proceeds of such bonds are to be expended.

3. The maturity schedule of the bonds proposed to be issued.

4. A schedule showing the annual debt service requirements on all outstanding bonds.

5. A schedule showing the amount and source of revenues available for the payment of the debt service requirements established by the schedule required in item 4.

6. The method to be employed in selling the proposed bonds.

7. Any other information which the Budget and Control Board shall require.

If the Budget and Control Board shall determine that the funds estimated to thereafter be available for the repayment of the bonds, including the proposed bonds, will be sufficient to provide for the payment of the principal and interest on the bonds thereafter to be outstanding as they become due, the Budget and Control Board shall give its approval to the issuance, in whole or in part, of the proposed bonds, subject to such conditions, if any, as it may impose.

Section 46-47-150. Information furnished to the Budget and Control Board under the provisions of Section 46-47-140 shall also be furnished to the bond committee created by Act 761 of 1976.

Section 46-47-160. The authority may provide for the issuance of refunding bonds for the purpose of refunding any bonds then outstanding which have been issued under the provisions of this chapter, including the payment of any redemption premium and any interest accrued or to accrue to the date of redemption of the bonds. The issuance of such refunding bonds, the maturities and other details, the rights of the holders and the rights, duties and obligations of the authority in respect of the same shall be governed by the provisions of this chapter which relate to the issuance of bonds.

Section 46-47-170. Refunding bonds issued pursuant to this chapter may be sold or exchanged for outstanding bonds issued under this chapter and, if sold, the proceeds may be applied, in addition to any other authorized purposes, to the purchase, redemption or payment of such outstanding bonds. Pending the application of the proceeds of any such refunding bonds, together with any other available funds, to the payment of the principal, accrued interest and any redemption premium on the bonds being refunded, such proceeds, together with any other available funds, shall be invested by or on behalf of the authority and the income and interest earned from such investments applied, if so provided or permitted in the resolution authorizing the issuance of such refunding bonds or in the trust agreement securing the same (I) to the payment of any interest on such refunding bonds and any expenses in connection with such refunding, (ii) to the payment of interest on the bonds to be refunded, or (iii) partly in accordance with (I) and partly in accordance with (ii). Such proceeds and other available funds may be invested by or on behalf of the authority in investments which shall mature or which shall be subject to redemption by the holders, at the option of such holders, not later than the respective dates when the proceeds, together with the interest accruing, will be required for the purposes intended.

Section 46-47-180. The bonds or other obligations of the authority shall not be a debt nor create an obligation of the State or its political subdivisions or be a grant or loan of the credit of the State or any political subdivision. Any bonds or obligations issued by the authority shall be special obligations of it. Neither the State nor any political subdivision shall be liable on the bonds nor shall they be payable out of any funds other than those of the authority pledged and all bonds and other obligations issued pursuant to this chapter shall contain on the face a statement to such effect.

Section 46-47-190. Proceeds of the bonds may be invested in the obligations set forth in Chapter 5 of Title 6 and such other obligations as the State Treasurer deems advisable.

Section 46-47-200. Notwithstanding any provision of law to the contrary, including without limitations Sections 34-1-110, 34-13-120, 34-31-30, 34-31-40 and 34-31-80 and Act 220 of 1979, all mortgage loans, secured loans and loans to mortgage lenders made pursuant to the provisions of this chapter may bear such rate of interest as shall be approved by the authority subject only to the terms and conditions of this chapter.

Section 46-47-210. Notwithstanding any restrictions on investments contained in any laws of this State, the State and all public officers, municipal corporations, political subdivisions and public bodies, all banks, bankers, trust companies, savings banks and institutions, building and loan associations, savings and loan associations, investment companies and other persons carrying on a banking business, all insurance companies, insurance associations and other persons carrying on an insurance business and all executors, administrators, guardians, trustees and other fiduciaries may legally invest any sinking funds, monies or other funds belonging to them or within their control in any bonds or other obligations issued by the authority pursuant to this chapter. Such bonds and other obligations shall be authorized security for all public deposits.

Nothing contained in this section shall be construed as relieving any person from any duty of exercising reasonable care in selecting securities.

Section 46-47-220. The State pledges and agrees with the holders of any bonds issued under this chapter that the State will not limit or alter the rights vested in the authority to fulfill the terms of any agreements made with the bondholders or in any way impair the rights and remedies of the bondholders until the bonds, together with any action or proceedings by or on behalf of the bondholders, are fully met and discharged. The authority may include this pledge and agreement of the State in any agreement with the holders of the bonds.

Section 46-47-230. The provisions of this chapter shall not be construed as a restriction or limitation upon any powers which the authority might otherwise have under any laws of the State and this chapter is cumulative to any such powers. This chapter shall be construed to provide a complete, additional and alternative method for

the doing of the things authorized and shall be regarded as supplemental and additional to powers conferred by other laws. However, the issuance of bonds under the provisions of this chapter need not comply with the requirements of any other state law applicable to the issuance of bonds, notes and other obligations and contracts or the construction and acquisition of any agricultural land, agricultural improvements or depreciable agricultural property undertaken pursuant to this chapter need not comply with the provisions of any other state law applicable to contracts for the construction and acquisition of state-owned property. No proceedings, notice or approval shall be required for the issuance of any bonds or any instrument as security, except as is expressly provided in this chapter."

Sealed bid requirements-subcontractors

SECTION 16. Sub-subitem (I) of item (b) of subsection (2) of Section 11-35-3020 of the 1976 Code, as added by an act of 1981 bearing ratification number 209, is amended to read:

"(I) Any bidder or offeror in response to an invitation for bids shall set forth in his bid or offer the name and the location of the place of business of each subcontractor who will perform work or render service to the prime contractor to or about the construction, and who will specifically fabricate and install a portion of the work in an amount that exceeds the following percentages:

Prime contractor's total bid up to three million dollars 2 1/2%

Prime contractor's total bid is three million to five million dollars 2%

Prime contractor's total bid is over five million dollars 1 1/2%

Time effective

SECTION 17. This act shall take effect upon approval by the Governor.

Items and Provisos vetoed by the Governor September 24, 1981.

Items not vetoed by the Governor took effect September 24, 1981.