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Bill Number: 2869 Ratification Number: 283 Act Number 197 Introducing Body: House Subject: Gasoline taxes
(A197, R283, H2869)
AN ACT TO AMEND CHAPTER 27 OF TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO GASOLINE TAXES, BY ADDING ARTICLE 13 SO AS TO IMPOSE ADDITIONAL TAXES ON THE SALE OF GASOLINE, PROVIDE FOR AN ADDITIONAL CREDIT FOR CERTAIN FUEL PURCHASES IN THE STATE, PROVIDE FOR THE DISTRIBUTION AND USE OF REVENUE DERIVED FROM THE ADDITIONAL TAX, PROVIDE THAT OF THE PROCEEDS DERIVED FROM THE ADDITIONAL TAXES TEN MILLION DOLLARS MUST BE SEGREGATED IN A SEPARATE ACCOUNT FOR ECONOMIC DEVELOPMENT AND PROVIDE FOR EXPENDITURES FROM THIS ACCOUNT, REQUIRE THE DEPARTMENT OF HIGHWAYS AND PUBLIC TRANSPORTATION TO SUBMIT A PRIORITY LIST OF PROJECTS TO THE SELECT OVERSIGHT COMMITTEE, CREATED UNDER THE PROVISIONS OF THIS ACT, TO BE FUNDED UNDER THE STRATEGIC HIGHWAY PLAN FOR IMPROVING MOBILITY AND SAFETY PROGRAM, REQUIRE THE DEPARTMENT TO REVIEW THE PRIORITY LIST IN ORDER TO ASCERTAIN THE POSSIBILITY OF CONSTRUCTING TOLL ROADS AND ESTABLISH CRITERIA FOR THEIR CONSTRUCTION, ESTABLISH A COMMITTEE TO MONITOR THE EXPENDITURE OF FUNDS FOR THE STRATEGIC HIGHWAY PLAN FOR IMPROVING MOBILITY AND SAFETY PROGRAM AND PROVIDE FOR ITS COMPOSITION, TO REQUIRE THE DEPARTMENT TO COOPERATE IN PROVIDING INFORMATION AND ASSISTANCE TO IMPLEMENT THE PROVISIONS OF ARTICLE 13 OF CHAPTER 27 OF TITLE 12; TO PROVIDE FOR GOALS OR SET-ASIDES TO INSURE THAT SOCIALLY AND ECONOMICALLY DISADVANTAGED INDIVIDUALS AND THOSE CONTROLLED BY DISADVANTAGED FEMALES RECEIVE TEN PERCENT OF TOTAL STATE SOURCE HIGHWAY FUNDS EXPENDED IN A FISCAL YEAR ON CONSTRUCTION CONTRACTS WHEN THE PROJECT EXCEEDS FIVE HUNDRED THOUSAND DOLLARS AND TO ESTABLISH GUIDELINES AND PREFERENCES IN AWARDING THESE CONTRACTS, TO PROVIDE THAT THE DEPARTMENT MAY WAIVE BONDING REQUIREMENTS UNDER CERTAIN CONDITIONS; TO AUTHORIZE THE DEPARTMENT TO SELL UP TO ONE HUNDRED TWENTY-FIVE MILLION DOLLARS IN BONDS TO BE RETIRED OVER A TWENTY-YEAR PERIOD FROM REVENUE GENERATED BY THE ADDITIONAL TAX AUTHORIZED IN THIS ACT; TO AMEND SECTION 56-3-620, AS AMENDED, RELATING TO THE ANNUAL REGISTRATION FEE FOR PRIVATE PASSENGER-CARRYING AND PROPERTY-CARRYING VEHICLES SO AS TO DELETE THE SPECIAL TEN DOLLAR REGISTRATION FEE FOR PERSONS SIXTY-FIVE YEARS OR OLDER OR HANDICAPPED AND ON CERTAIN PROPERTY-CARRYING VEHICLES AND REDUCE THE FEE FOR PRIVATE PASSENGER-CARRYING VEHICLES FROM SEVENTEEN DOLLARS TO TWELVE DOLLARS; TO AUTHORIZE THE SELECT OVERSIGHT COMMITTEE TO DIRECT ONE QUARTER OF ONE CENT FROM THE ADDITIONAL TAX LEVIED IN THIS ACT TO FUND PUBLIC TRANSPORTATION ACTIVITIES IN THIS STATE AND TO PROVIDE THAT THIS AUTHORIZATION IS EFFECTIVE ONLY UNTIL JUNE 30, 1988; AND TO REPEAL ITEM (5) OF SECTION 1 OF ACT 82 OF 1977 RELATING TO LEGISLATIVE FINDINGS WHICH INDICATE THAT THE DEPARTMENT SHALL FINANCE PUBLIC TRANSPORTATION RESPONSIBILITIES FROM SOURCES OTHER THAN GASOLINE TAX REVENUES AND MOTOR VEHICLE LICENSE FEES.
Be it enacted by the General Assembly of the State of South Carolina:
Additional taxes on gasoline
SECTION 1. Chapter 27 of Title 12 of the 1976 Code is amended by adding:
Additional Taxes on Gasoline Sales
Section 12-27-1210. In addition to the tax levied by Sections 12-27-230 and 12-27-240 every oil company subject to the tax imposed by those sections shall pay to the State an additional tax in an amount equal to two cents a gallon on all gasoline, combinations of gasolines, or substitutes for gasoline, sold or consigned, used, shipped, or distributed for the purpose of sale within this State. Effective January 1, 1989, the additional tax imposed by this section is increased by one cent a gallon to a total of three cents a gallon. The proceeds of the additional tax levied by this section must be used to fund the provisions of the Strategic Highway Plan for Improving Mobility and Safety as administered by the Department of Highways and Public Transportation. All provisions of this chapter apply with equal force and effect to the additional tax on gasoline levied by this section.
Section 12-27-1220. In addition to the tax imposed by Sections 12-27-510 and 12-27-520, every person, firm, corporation, municipality, or county subject to tax imposed by those sections, or any subdivision of a municipality or county shall pay an additional tax of two cents a gallon for every gallon of gasoline or other like product of petroleum under whatever name designated on which a tax is imposed by Section 12-27-510. Effective January 1, 1989, the additional tax imposed by this section is increased by one cent a gallon to a total of three cents a gallon. The proceeds of the additional tax levied by this section must be used to fund the provisions of the Strategic Highway Plan for Improving Mobility and Safety. All the provisions of this chapter apply with equal force and effect to the additional tax on gasoline levied by this section.
Section 12-27-1230. In addition to the tax levied by Section 12-29-310, a tax of two cents a gallon is imposed upon all fuel sold or delivered by any supplier to any person not licensed as a supplier under the provisions of Chapter 29 of this title. Effective January 1, 1989, the additional tax imposed by this section is increased by one cent a gallon to a total of three cents a gallon. The proceeds of the tax levied by this section must be used to fund the Strategic Highway Plan for Improving Mobility and Safety Program as administered by the department. All the provisions of Chapter 29 of this title apply with equal force and effect to the additional tax levied by this section.
Section 12-27-1240. In addition to the road tax levied by Section 12-31-410, an additional road tax equivalent to two cents a gallon is imposed upon the amount of gasoline or other motor fuel used by every motor carrier in its operations within this State. Effective January 1, 1989, the additional tax imposed by this section is increased by one cent a gallon to a total of three cents a gallon. The proceeds of this tax must be used to fund the Strategic Highway Plan for Improving Mobility and Safety Program as administered by the department. All the provisions of Chapter 31 of this title apply with equal force and effect to the additional tax on gasoline levied by this section.
Section 12-27-1250. In addition to the credit provided for in Section 12-31-450 every motor carrier subject to the tax imposed by Section 12-27-1240 is entitled to a credit on the tax equivalent to two cents a gallon on all gasoline or other motor fuel purchased by the carrier within this State for use in operations either within or without this State and upon which gasoline or other motor fuel the tax imposed by the laws of this State has been paid by such carrier. Effective January 1, 1989, the additional credit authorized by this section is increased by one cent to a total of three cents a gallon. This refund may be made only if the carrier has fully complied with all regulations of the commission and the provisions of Chapter 31 of this title.
Section 12-27-1260. The revenue derived from the tax levied by Sections 12-27-1210, 12-27-1220, 12-27-1230, and 12-27-1240 in this chapter must be remitted to the State Treasurer to be credited to the fund established for the Strategic Highway Plan for Improving Mobility and Safety. This fund must be separate and distinct from the state general fund and highway fund. All unappropriated money in this fund must remain part of the separate fund. All earnings on investments from this fund must accrue to and be deposited in this separate fund. Money from this fund may be spent only for the purpose of funding the Strategic Highway Plan for Improving Mobility and Safety Program administered by the department and funding the Economic Development Account as provided for in Section 12-27-1270. No funds may be expended from this account for any purpose other than for payment of engineering and planning, right-of-way acquisition, and construction of projects on the list submitted as provided in Section 12-27-1280 or those designated for economic development by the Coordinating Council for Economic Development as provided in Section 12-27-1270.
Section 12-27-1270. The first ten million dollars generated from the tax as levied in Sections 12-27-1210, 12-27-1220, 12-27-1230, and 12-27-1240 must be segregated in a separate account for economic development. This account is to be expended only upon the authorization of the South Carolina Coordinating Council for Economic Development which shall establish project priorities. All funds devoted to the economic development account are to remain in the fund if not expended in the previous fiscal year. Annually, funds from the tax as levied in Section 12-27-1210 must be deposited to replenish the Economic Development Account. The total in the account at no time may exceed fifteen million dollars. The council may spend no more than two hundred fifty thousand dollars, in the first year only, for a long-term economic development plan which must be submitted to the General Assembly on completion of the plan.
Section 12-27-1280. The department shall submit to the Select Oversight Committee established in Section 12-27-1300 a priority list of the first fifty projects to be funded under the Strategic Highway Plan for Improving Mobility and Safety Program within six months after the effective date of this article. This priority list must be revised and updated annually and submitted after that date by October first of each year.
The method used to determine project priorities must accompany the priority list. A minimum of forty percent of the funds remaining after the amount specified in Section 12-27-1270 has been deducted, excluding toll roads, must be allocated among projects selected by socioeconomic factors.
A minimum of forty percent of the funds remaining after the amount specified in Section 12-27-1270 has been deducted, excluding toll roads, must be allocated among projects selected by transportation factors.
The parameters used to determine the socioeconomic index are:
(1) per capita employment;
(2) farm acres per square mile;
(3) per capita income;
(4) population per square mile;
(5) existing interstate and primary road mileage per square mile.
The parameters used to determine the transportation index are:
(1) average daily traffic (ADT);
(2) roadway width;
(3) shoulder width;
(4) surface width;
(7) sight distance;
(8) truck traffic;
(9) economic benefit.
Section 12-27-1290. The department must review projects on the priority list, as provided in Section 12-27-1280, for the possibility of constructing toll roads to defray the cost of these projects pursuant to the authority granted the department in Section 57-5-1330. No project may be funded by means of imposing a toll on the users of the project unless in conjunction with federal funds authorized for use on toll roads it is determined to be substantially feasible by the department. The funds derived from tolls must be returned to the Strategic Highway Plan for Improving Mobility and Safety Fund until the fund is reimbursed. Upon reimbursement, all toll charges shall cease.
Section 12-27-1300. There is created a Select Oversight Committee to monitor funds generated from the tax levied under the provisions of Sections 12-27-1210 through 12-27-1240 and oversee the establishment of priorities for the implementation of the Strategic Highway Plan for Improving Mobility and Safety Program. This committee consists of the following persons:
(1) the Governor's designee;
(2) the Chairman of the Education and Public Works Committee of the House of Representatives;
(3) the Chairman of the Transportation Committee of the Senate;
(4) the Chairman of the Economic Coordinating Council and one member of the Economic Coordinating Council designated by the Chairman of said council;
(5) one member appointed by the Governor at large from a rural county;
(6) the Chairman of the State Highway and Public Transportation Commission, the Executive Director of the Department of Highways and Public Transportation, and one other employee of that department as designated by its Executive Director.
The chairman of the Select Oversight Committee shall be elected from the membership of the committee.
The committee shall meet not less than once a quarter and shall submit annually a report to the General Assembly on all funds monitored and priorities established under the provisions of this section prior to March fourth.
Staff support shall come from existing staff assigned by the Speaker of the House and the President Pro Tempore of the Senate.
Section 12-27-1310. The Department of Highways and Public Transportation shall cooperate in providing information and assistance to implement the provisions of this article.
Section 12-27-1320. (A) Of total state source highway funds expended in a fiscal year on construction contracts, the Department of Highways and Public Transportation, through the use of goals or set-asides, provided that goals be used only on projects exceeding $500,000, shall insure not less than:
(1) five percent are expended with small business concerns owned and controlled by socially and economically disadvantaged individuals (DBE'S) as defined in Public Law 95-507; and
(2) five percent are expended with firms owned and controlled by disadvantaged females (WBE'S).
The department shall certify eligible firms under this section and shall give at least thirty days' notice to certified firms of contracts to be let. No firm may be certified if it has previously been certified as a DBE or WBE for purposes of federal or state source highway construction contracts set-asides for more than five years.
(B) If no DBE or WBE firms certified pursuant to this section are available to perform a contract, the department shall verify and record this fact, and the verification must be preserved in department records. To the extent a goal or set-aside for a particular category cannot be met, the unused portion of a goal or set-aside must be added to the goal or set-aside of the other category if the appropriate category firm is available.
(C) To facilitate implementation of this section, the department may waive or guarantee bonding requirements for contracts let pursuant to this section with estimated construction costs not exceeding two hundred fifty thousand dollars a contract, and any contract set aside and awarded to a DBE or WBE contractor without bonding shall provide expressly that termination of the contract for default of the contractor renders the contractor ineligible for any further department nonbonded set-aside contracts for a minimum period of two years from the date of the notice.
(D) In awarding any contract pursuant to this section, preference must be given to an otherwise eligible South Carolina contractor submitting a responsible bid not exceeding an otherwise eligible out-of-state contractor's low bid by two and one-half percent.
(E) A DBE or WBE acting as a prime contractor, in letting subcontracts, shall comply with the applicable provisions of this section.
(F) The department shall make available technical and support services for DBE'S and WBE'S the same percentages of state source highway construction funds as are provided for the same purpose in federal highway construction funds, not to exceed $100,000.
(G) Procurements and contracts made pursuant to Section 106(c) of the Federal Surface Transportation Assistance Act of 1987 (STAA-1987) are subject to the provisions of Sections 11-35-1210(2), 11-35-1220, and 11-35-1230.
(H) Any contractor awarded work for which the State guarantees bond shall pay to the State an amount equal to the premium of the bond if the contractor had purchased the bond from a surety company."
SECTION 2. The Highway Commission is authorized to make a request to the State Budget and Control Board for the authority to issue up to one hundred twenty-five million dollars in additional bonds pursuant to the provisions of Article 3, Chapter 11, Title 57 of the 1976 Code to be used exclusively for the State Highway Plan for Improving Mobility and Safety Program. These bonds must be retired over a twenty year period from revenue generated by the additional taxes levied in Sections 12-27-1210 through 12-27-1240 of the 1976 Code.
SECTION 3. Section 56-3-620 of the 1976 Code, as last amended by Section 42A, Part II, Act 540 of 1986, is further amended to read:
"Section 56-3-620. Beginning July 1, 1987, the annual registration fee for every private passenger-carrying vehicle is twelve dollars."
SECTION 4. The Select Oversight Committee created under the provisions of Section 12-27-1300, as added in Section 1 of this act, may direct one-quarter of one cent from the funds generated from the tax levied under the provisions of Sections 12-27-1210 through 12-27-1240, as added in Section 1 of this act, to fund public transportation activities in this State. The provisions of this section are effective only until June 30, 1988.
SECTION 5. Item (5) of Section 1 of Act 82 of 1977 is repealed.
SECTION 6. This act takes effect July 1, 1987.