Current Status Bill Number:1376 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19960423 Primary Sponsor:Land All Sponsors:Land Drafted Document Number:dka\3685cm.96 Residing Body:Senate Current Committee:Finance Committee 06 SF Subject:Toll roads and charges, turnpike bonds
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
Senate 19960423 Introduced, read first time, 06 SF
referred to Committee
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TO AMEND SECTIONS 12-27-1290 AND 12-28-2920, BOTH AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ESTABLISHMENT AND CONSTRUCTION OF TOLL ROADS, SO AS TO REVISE THE DISBURSEMENT OF FUNDS DERIVED FROM TOLLS AND THE CONDITIONS UPON WHICH TOLL CHARGES SHALL CEASE; TO AMEND SECTION 57-5-1320, AS AMENDED, RELATING TO TURNPIKE PROJECT DEFINITIONS, SO AS TO REVISE CERTAIN DEFINITIONS AND TO DEFINE GENERAL OBLIGATION BOND; TO AMEND SECTION 57-5-1360, RELATING TO CERTAIN POWERS AND DUTIES OF THE STATE BUDGET AND CONTROL BOARD, SO AS TO SUBSTITUTE "BONDS" FOR "FACILITY"; AND TO AMEND SECTION 57-5-1450, AS AMENDED, RELATING TO THE STATE BUDGET AND CONTROL BOARD'S AUTHORITY TO ISSUE TURNPIKE BONDS AND THE TERMS AND CONDITIONS OF THE BONDS, SO AS TO REVISE THE PROCESS OF ISSUING TURNPIKE BONDS AND TO DELETE CERTAIN CONDITIONS THAT MAY BE ATTACHED TO THE BONDS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-27-1290 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:
"Section 12-27-1290. The department must shall review projects 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:
(1) returned credited to the State Highway Fund until the fund is reimbursed or retained and applied by the entity or entities developing the toll road pursuant to an agreement authorized under Section 57-3-200 for the purpose of funding the cost of construction, financing, operation, and maintenance of the toll project; or
(2) used to service bonded indebtedness for highway transportation purposes incurred pursuant to Paragraph 9, Section 13, Article X of the South Carolina Constitution.
Upon reimbursement repayment of the cost of construction and financing, all toll charges shall cease."
SECTION 2. Section 12-28-2920 of the 1976 Code, as added by Act 136 of 1995, is amended to read:
"Section 12-28-2920. The department shall review projects 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:
(1) returned credited to the State Highway Fund until the fund is reimbursed or retained and applied by the entity or entities developing the toll road pursuant to an agreement authorized under Section 57-3-200 for the purpose of funding the cost of construction, financing, operation, and maintenance of the toll project; or
(2) used to service bonded indebtedness for highway transportation purposes incurred pursuant to Paragraph 9, Section 13, Article X of the South Carolina Constitution.
Upon reimbursement repayment of the cost of construction and financing, all toll charges shall cease."
SECTION 3. Section 57-5-1320 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:
"Section 57-5-1320. Unless the context indicates another meaning or intent:
(1) `Department' means the Department of Transportation;
(2) `Turnpike facility' means any express highway or limited access highway constructed under the provisions of this article by the department, whether or not financed with turnpike bonds, including any bridge, tunnel, overpass, underpass, interchange, entrance plaza, approach, toll house, service station and administration and storage and other buildings and facilities which the department may deem considers necessary or desirable therefor. A turnpike facility may constitute constitutes a portion or extension of any existing or proposed highway in the state highway system;
(3) `Bonds or turnpike bonds' means revenue bonds of the State authorized under the provisions of this article and Paragraph (9), Section 13, Article X of the South Carolina Constitution;
(4) `State board' means the State Budget and Control Board;
(5) `Turnpike facility revenues' means all revenues resulting from tolls or other charges derived from the operation of a turnpike facility, including revenues derived from concession leases or other concessionaire operated facilities;
(6) `Bond resolution' means the resolution of the state board making provision for the issuance of turnpike revenue bonds.;
(7) `General obligation bonds' means state highway bonds issued pursuant to Paragraph (6)(a), Section 13, Article X of the South Carolina Constitution."
SECTION 4. Section 57-5-1360 of the 1976 Code is amended to read:
"Section 57-5-1360. Following the receipt of any a request pursuant to Section 57-5-1350, the state board shall review the request and, to the extent that it approves the request, it may effect, by resolution duly adopted, effect the issuance of turnpike bonds, or pending the their issuance thereof, may effect the issuance of bond anticipation notes pursuant to Title 11, Chapter 17. No A resolution approving any proposed turnpike facility bonds may not be adopted unless prior thereto before approval the state board shall conduct conducts, after not less than ten days' published notice, a public hearing in the City of Columbia."
SECTION 5. Section 57-5-1450 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:
"Section 57-5-1450. (A) Following the approval of the proposed project, The state board may, by resolution duly adopted, may make provision for the issuance of turnpike bonds. In the resolution, the state board may prescribe the following:
1. Whether the bonds are to be:
(a) revenue bonds payable solely from turnpike facility revenues;
(b) general obligation bonds of the State; or
(c) [Deleted]
2.(1) the amount, denomination, and numbering of turnpike bonds to be issued;
3.(2) the date as of which they must be issued;
4.(3) the maturity schedule for the retirement of the turnpike bonds;
5.(4) the form or forms of the bonds of the particular issue;
6.(5) the redemption provisions, if any, applicable to the bonds;
7.(6) the maximum rate or rates of interest the bonds shall bear;
8.(7) the specific purposes for which the bonds must be issued;
9.(8) the purposes for which the proceeds of the bonds must be expended, in the discretion of the state board, a portion of the proceeds may be used as capitalized interest during the period of construction and initial operation and for the creation of appropriate debt service reserves;
10.(9) the method and conditions by which turnpike revenues from the turnpike facility so financed must be collected and utilized;
11.(10) the extent to which and the conditions under which additional parity bonds may be issued;
12.(11) any covenant considered necessary protecting the turnpike facility so financed from possible future competition from other highways or comparable facilities;
13.(12) the method by which the bonds must be sold and such other matters as may be considered necessary in order to effect the sale, issuance, and delivery thereof of the bonds.
(B) Except as otherwise provided in this article, all expenses incurred in carrying out the provisions of this article are payable solely from funds provided under the authority of this article or from any funds provided by the federal government or from other special sources and no liability or obligation may be incurred by the department beyond the extent to which money has been provided under the provisions of this article.
(C) The resolution shall further set forth further a finding on the part of the state board that the estimate of turnpike facility revenues made by the commission and approved by the state board indicates that collection from turnpike revenues for applicable fiscal years is not less than that required for annual debt service requirements of the requested turnpike bonds."
SECTION 6. This act takes effect upon approval by the Governor.