Current Status Introducing Body:House Bill Number:3793 Primary Sponsor:Kirsh Committee Number:30 Type of Legislation:GB Subject:Fire Academy, bonds Residing Body:House Current Committee:Ways and Means Computer Document Number:CYY/18466.SD Introduced Date:Apr 09, 1991 Last History Body:House Last History Date:Apr 09, 1991 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Kirsh Boan Type of Legislation:General Bill
Bill Body Date Action Description CMN
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3793 House Apr 09, 1991 Introduced, read first time, 30
referred to Committee
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TO AMEND ACT 1377 OF 1968, AS AMENDED, RELATING TO THE ISSUANCE OF CAPITAL IMPROVEMENT BONDS, SO AS TO AUTHORIZE THE ISSUANCE OF ADDITIONAL BONDS FOR THE SOUTH CAROLINA FIRE ACADEMY, AND TO IMPOSE AN ADDITIONAL TAX ON THE GROSS PREMIUM RECEIPTS LESS PREMIUMS RETURNED ON CANCELED INSURANCE POLICY CONTRACTS AND LESS DIVIDENDS AND RETURNS OF UNABSORBED PREMIUM DEPOSITS OF ALL FIRE INSURANCE POLICY CONTRACTS AND USE THE PROCEEDS FROM THE TAX TO PAY DEBT SERVICE ASSOCIATED WITH DEPARTMENTAL CAPITAL IMPROVEMENT BONDS AUTHORIZED FOR THE FIRE ACADEMY.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Item (f) of Section 3 of Act 1377 of 1968, as last amended by an act of 1991 bearing ratification number 8, is further amended by adding an appropriately numbered subitem to read:
"( ) Budget and Control Board
Twelve million, five hundred thousand dollars of Capital Improvement Bonds for the South Carolina Fire Academy Replacement and the Budget and Control Board-State Fire Marshal's Office are authorized as departmental bonds pursuant to the authority and limitations of Section 2 of this act. The Budget and Control Board-State Fire Marshal's Office and the Fire Academy must be located in this facility."
SECTION 2. (A) As an incident to the enactment of this Section, the General Assembly makes the following findings:
(1) By Section 38-7-30 of the 1976 Code, the General Assembly has authorized a tax of one percent on the gross premium receipts less premiums returned on canceled insurance policy contracts less dividends and returns of unabsorbed premium deposits of all fire insurance companies doing business in this State. The proceeds of this tax are collected by the Chief Insurance Commissioner of South Carolina.
(2) The South Carolina Fire Academy has requested the sum of not exceeding twelve million, five hundred thousand dollars to defray the cost of construction for the replacement of the Fire Academy which must also contain Budget and Control Board-State Fire Marshal's office.
(3) The General Assembly has determined to raise this sum through the issuance of general obligation capital improvement bonds of the State not exceeding twelve million, five hundred thousand dollars principal amount general obligation capital improvement bonds of the State. It is the express intention of the General Assembly that these bonds are to be payable in the first instance from the annual imposition of an additional thirty-five one hundredths percent tax on the gross premium receipts less premiums returned on canceled policy contracts and less dividends and returns of unabsorbed premium deposits of all fire insurance companies doing business in the State.
(B) The General Assembly authorizes the issuance of General Obligation State Capital Improvement Bonds to be issued as departmental bonds in the following amount:
Budget and Control Board
South Carolina Fire Academy
Replacement and State Fire
Marshal's Office $12,500,000.
The State Fire Marshal's office must be relocated in the new facility constructed with funds authorized in this subsection.
(C) In addition to the tax imposed pursuant to the provisions of Section 38-7-30 of the 1976 Code, an additional tax of thirty-five one-hundredths percent is imposed annually on the gross premium receipts less premiums returned on canceled policy contracts and less dividends and returns of unabsorbed premium deposits of all fire insurance companies doing business in the State. This tax must be collected by the Chief Insurance Commissioner as other taxes on fire insurance companies are collected. All sums collected for this tax must be paid annually by the commissioner to the State Treasurer for establishment of a fund to be used by the State Treasurer to pay the debt service on the bonds issued pursuant to the provisions of subsection (B). The additional tax imposed pursuant to this subsection is imposed only so long as any of the bonds referred to in this subsection remain outstanding and unpaid.
(D) The State Treasurer shall establish a special fund into which proceeds of the additional tax authorized in subsection (C) must be deposited upon their receipt from the Chief Insurance Commissioner. This fund is designed to achieve a proper matching of monies to meet the debt service obligations on the bonds authorized in this section in a given year. Monies in the fund must be used solely to pay debt service on the bonds and for no other purpose.
(E) Upon payment in full of the principal of, premium, if any, and interest on the bonds authorized in this section, any remaining balances in the special fund created in this section must be transferred by the State Treasurer to the general fund of the State.
SECTION 3. Section 4 of Act 1377 of 1968, as last amended by Act 638 of 1988, is further amended to read:
"Section 4. The aggregate principal indebtedness on account of bonds issued pursuant to this act may not exceed $1,445,782, 506.29. The limitation imposed by the provisions of this section do does not apply to bonds issued on behalf of the Mental Health Commission as provided in Acts 1276 and 1272 of 1970, or to bonds issued on behalf of the Commission on Mental Retardation as provided in Act 1087 of 1970 or to bonds issued on behalf of the South Carolina Fire Academy. The limitation imposed by the provisions of this section is not considered to be an obligation of the contract made between the State and holders of bonds issued pursuant to this act, and the limitation imposed by the provisions of this section may be enlarged by acts amending it or reduced by the application of the Capital Reserve Fund or by amendments of this act. Within these limitations state capital improvement bonds may be issued under the conditions prescribed by this act."
SECTION 4. This act takes effect upon approval by the Governor.