Current Status Bill Number:3611 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19970306 Primary Sponsor:Boan All Sponsors:Boan, H. Brown, Keegan, Kelley, R. Smith, Young-Brickell, Harrell and Riser Drafted Document Number:gjk\20321sd.97 Residing Body:House Current Committee:Ways and Means Committee 30 HWM Subject:Act Cited By Popular Name, Comprehensive Infrastructure Development and Financing, Regional Development Division
Body Date Action Description Com Leg Involved
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House 19970306 Introduced, read first time, 30 HWM
referred to Committee
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TO AMEND TITLE 11, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PUBLIC FINANCE, BY ADDING CHAPTER 42 SO AS TO ENACT THE "SOUTH CAROLINA COMPREHENSIVE INFRASTRUCTURE DEVELOPMENT AND FINANCING ACT" SO AS TO ESTABLISH A STATE PROGRAM TO COORDINATE INFRASTRUCTURE PLANNING AMONG STATE, REGIONAL, AND LOCAL UNITS OF GOVERNMENT, ASSIST IN DEVELOPMENT OF COMPREHENSIVE REGIONAL INFRASTRUCTURE DEVELOPMENT PLANS, AND IDENTIFY AND PROVIDE FUNDING AND FINANCIAL ASSISTANCE FOR CONSTRUCTING AND IMPROVING INFRASTRUCTURE; TO AMEND SECTION 12-28-2720, AS AMENDED, RELATING TO THE DISTRIBUTION OF THE GASOLINE TAX, SO AS TO REVISE THE MANNER IN WHICH IT IS DISTRIBUTED; TO AMEND SECTION 12-28-2910, AS AMENDED, RELATING TO THE COORDINATING COUNCIL FOR ECONOMIC DEVELOPMENT, SO AS TO REVISE THE ACCOUNT TO WHICH INTEREST EARNINGS ON THE ECONOMIC DEVELOPMENT ACCOUNT MUST BE CREDITED; AND TO AMEND SECTION 57-11-20, AS AMENDED, RELATING TO THE STATE HIGHWAY FUND, SO AS TO REVISE THE ACCOUNT TO WHICH INTEREST INCOME FROM THE STATE HIGHWAY FUND MUST BE CREDITED.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. (A) The General Assembly recognizes that the infrastructure needs of the State of South Carolina have reached a critical stage, and that there has been a lack of comprehensive planning for both infrastructure development and infrastructure funding which has contributed to this situation.
(B) The General Assembly further recognizes that all levels of government, including municipal, county, regional and state, must be enabled and structured to coordinate infrastructure development and infrastructure funding.
(C) The General Assembly recognizes as well that certain State programs related to infrastructure development have not been coordinated or focused to ensure that infrastructure development throughout South Carolina is efficient and consistent with comprehensive State and regional planning. Similarly, certain public monies directed through State agencies that underwrite infrastructure development have not been used to maximum efficiency, or in a manner consistent with comprehensive State and regional infrastructure planning. There are infrastructure needs which include, but are not limited to, such matters as water and sewerage systems, communication systems, and highway and transportation systems.
(D) The General Assembly recognizes that adequate transportation facilities are needed for the public good or economic development. Moreover, traditional transportation financing methods have proved inadequate, and South Carolina has the ability to provide for alternative methods of financing highway projects. It has therefore determined to enact the provisions of Chapter 42 of Title 11 as contained herein.
SECTION 2. Title 11 of the 1976 Code is amended by adding:
Section 11-42-10. This chapter may be cited as the South Carolina Comprehensive Infrastructure Development and Financing Act.
Section 11-42-20. Comprehensive infrastructure development and planning is vitally important to the State and to its local political subdivisions. The General Assembly, by this chapter, creates:
(1) a state program and a unit of state government to work with state agencies, regional councils of government, and local political subdivisions to coordinate infrastructure planning, to assist in development of comprehensive regional infrastructure development plans, and to identify and coordinate the funding related to infrastructure development distributed through state agencies in order to maximize efficiency and promote comprehensive infrastructure development planning.
(2) the South Carolina Infrastructure Bank to provide financial assistance in the constructing and improving of infrastructure.
Section 11-42-30. As used in this chapter:
(1) 'Bank' means the South Carolina Infrastructure Bank established pursuant to the provisions of this chapter.
(2) 'Board' means the State Budget and Control Board.
(3) 'Bonds' means bonds, notes, or other evidence of indebtedness.
(4) 'County' means any county of this State.
(5) 'Department of Transportation' means the South Carolina Department of Transportation, an agency of the State, and its successors.
(6) 'Division of Regional Development' is a division of the Board. This division shall be the designated state program for coordination of comprehensive state and regional infrastructure planning.
(7) 'Director' is the Director of the Division of Regional Development.
(8) 'Economic Development Account' is that account identified in Section 12-28-2910.
(9) 'Eligible cost' means, as applied to a qualified project to be financed from the federal accounts, the costs that are permitted under applicable federal laws, requirements, procedures, and guidelines in regard to establishing, operating, and providing assistance from the bank. As applied to a qualified project to be financed from the state highway account, these costs include the costs of preliminary engineering, traffic and revenue studies, environmental studies, right-of-way, legal and financial services associated with the development of the qualified project, construction, construction management, facilities, and other costs necessary for the start up of the qualified project. As applied to any qualified project to be financed from the state transit account, eligible project costs are limited to capital expenditures for transit equipment and facilities. As applied to qualified projects financed from other state accounts, eligible project costs are the costs that are permitted under applicable state laws, requirements, procedures and guidelines.
(10) 'Eligible project' means a project which provides public benefits by enhancing either water, sewer, communication systems, or highways and transportation systems, promoting economic development, or increasing the quality of life and general welfare of the public.
(11) 'Executive director' means the executive director of the board.
(12) 'Federal accounts' mean collectively, separate accounts that maintain federal funds.
(13) 'Federal highway accounts' mean collectively, the separate accounts for the Federal Highway Funds and Federal Transit Funds.
(14) 'Financing agreement' means any agreement entered into between the bank and a qualified borrower pertaining to a loan or other financial assistance. This agreement may contain, in addition to financial terms, provisions relating to the regulation and supervision of a qualified project, or other provisions as the board may determine. The term 'financing agreement' shall include, without limitation, a loan agreement, trust agreement, trust indenture, security agreement, reimbursement agreement, guarantee agreement, bond or note, ordinance or resolution, or similar instrument.
(15) 'Government obligations or governmental obligations' means bonds, notes, or other evidence of indebtedness issued by a government unit to evidence a loan.
(16) 'Government unit' means a municipal corporation, county, public service district, special purpose district, commissioners of public works, or another public body, instrumentality or agency of the State including combinations of two or more of these entities acting jointly to construct, own, or operate a qualified project, and any other state or local authority, board, or other political subdivision created by the General Assembly or pursuant to the Constitution and laws of the State which may construct, own, or operate a qualified project.
(17) 'Infrastructure' means the basic facilities, services, and installations needed for the functioning of government including, but not limited to, water, sewer, communications systems, highway and transportation. Infrastructure as used in this chapter shall not mean power delivery systems or health planning and delivery systems.
(18) 'Infrastructure Development Plans' means any written proposal by the State, county, municipality, special purpose district or regional council of government that involves development of infrastructure as defined in this chapter. These plans include, but are not limited to, such matters as water, sewer, communication systems, highways and transportation systems. The plans shall be proposed and prepared pursuant to recommended standards and procedures for the preparation and implementation of infrastructure development plans established in accordance with this chapter by the Division of Regional Development and in coordination with the state agencies and the Regional Councils of Government.
(19) 'Joint Bond Review Committee' means that committee created pursuant to Title 2, Chapter 47.
(20) 'Loan' means an obligation subject to repayment which is provided by the bank to a qualified borrower for all or a part of the cost of a qualified project. A loan may be disbursed in anticipation of reimbursement for or direct payment of costs of a qualified project.
(21) 'Loan obligation' means a bond, note, or other evidence of obligation issued by a qualified borrower.
(22) 'Municipality' as described in Section 5-1-20 means any city or town which has been issued a certificate of incorporation or which has been created by act of the General Assembly.
(23) 'Other financial assistance' means, but is not limited to, credit enhancement, capital or debt reserves for bonds or debt instrument financing, interest rate subsidies, provision of letters of credit and credit instruments, provision of bond or other debt financing instrument security, and other lawful forms of financing and methods of leveraging funds that are approved by the board, and in the case of federal funds, as allowed by law.
(24) 'Political subdivision' means any municipality, county, public service district, or special purpose district.
(25) 'Private entity' means a private person or entity that has entered into a contract with an appropriate government unit to design, finance, construct, and operate a qualified project of the government unit.
(26) 'Project revenues' means all rates, rents, fees, assessments, charges, and other receipts derived or to be derived by a qualified borrower from a qualified project or made available from a special source, and, if provided in the applicable financing agreement, derived from any system of which the qualified project is a part of from any other revenue producing facility under the ownership or control of the qualified borrower including, without limitation, proceeds or grants, gifts, appropriations and loans, including the proceeds of loans made by the bank, investment earnings, reserves for capital and current expenses, proceeds of insurance or condemnation and proceeds from the sale or other disposition of property.
(27) 'Qualified borrower' means any government unit or private entity which is authorized to construct, operate, or own a qualified project.
(28) 'Qualified project' means an eligible project which has been selected by the bank to receive a loan or other financial assistance from the bank to defray an eligible cost.
(29) 'Regional Councils of Government' are as described in Section 6-7-110.
(30) 'Regional government unit' means a government unit which is authorized to construct, own, or operate an eligible project on behalf of two or more units, or designated parts of it.
(31) 'Revenues' means, when used with respect to the bank, any appropriations, receipts, fees, income, or other payments received by the bank including, without limitation, receipts, and other payments deposited in the bank and investment earnings on its funds and accounts.
(32) 'State accounts' means, collectively, the separate accounts that maintain state funds.
(33) 'State highway account' means the separate account for the state highway funds.
(34) 'State highway fund' is as defined by Section 57-11-20(A).
(35) 'South Carolina Advisory Commission on Intergovernmental Relations' means the commission created pursuant to Section 1-27-10 which, as part of the office of the executive director of the board, researches intergovernmental problems.
(36) 'State Council for Regional Development' or 'state council' means the State Council for Regional Development created by this chapter.
Section 11-42-40. (A) There is created the Division of Regional Development, created as a division within the Budget and Control Board. The division shall report to the executive director of the board.
(B) The division shall be managed and directed by a director who shall be appointed by the executive director of the board, and who shall serve at the pleasure of the executive director.
Section 11-42-50. The Division of Regional Development is the state program responsible for the creation of a state infrastructure development plan, for the coordination of regional infrastructure development plans and for the coordination of state programs and resources that impact or affect infrastructure development. To fulfill its public mandate, the division is expressly authorized to perform the following functions and exercise the following powers:
(1) prescribe recommended elements to be included in any comprehensive regional infrastructure development plan;
(2) coordinate and qualify regional infrastructure development plans;
(3) create a state infrastructure development plan through consultation with other appropriate state agencies;
(4) provide training, education, resources and technical assistance to enable and support the efforts of local governments and the Regional Councils of Government to create and develop comprehensive infrastructure development plans;
(5) to participate as a party, as an advocate, or otherwise, in state government and state agency decision making processes that impact or affect infrastructure development;
(6) to coordinate relevant state government actions and programs that impact or affect infrastructure development in order to focus and direct these actions and programs to support and assist the development and implementation of the State and regional infrastructure development plans;
(7) to identify and coordinate public funds, regardless of original source, that are expended or distributed by state agencies to help underwrite or support infrastructure development in order that state agency expenditures and distributions of public funds will be both consistent with and supportive of state and regional infrastructure development plans;
(8) to request and receive assistance and support from other state agencies and programs as needed by the division; and
(9) to administer the State Infrastructure Bank.
Section 11-42-60. The division shall function as a division of the Budget and Control Board and shall have all administrative and program authority necessary to fulfill its public mandate including, but not limited to, the following powers:
(1) to solicit, receive and expend public and private funds from any relevant sources and entities in order to carry out the purposes of the division; and
(2) to prescribe and charge fees for its services, which fees shall be retained and expended for division purposes.
Section 11-42-70. There is created the State Council for Regional Development. The state council shall be composed of the following ex-officio members or their designees: the Director of the Department of Transportation, the Department of Commerce, the Department of Natural Resources, the Department of Health and Environmental Control, the Department of Parks, Recreation and Tourism, and the Executive Director of the Budget and Control Board or his designee. In addition, the state council shall include three members appointed by the Governor upon the recommendation of the South Carolina Association of Regional Councils of Government. These three members so appointed shall serve three year terms. There also shall be three members appointed by the Governor who shall serve at the pleasure of the Governor. Members of the council who are not state employees shall be paid the usual per diem, mileage, and subsistence as provided by law for member of state boards, commissions, and committees. State employee members shall be reimbursed for meals, lodging, and travel in accordance with applicable state allowances. Any person appointed to fill a vacancy on the state council shall be appointed in the same manner as the original appointee and shall serve for the remainder of the unexpired term. Any member shall be eligible for reappointment and a member shall serve until a successor is appointed and qualifies. The Governor shall select the chairman. A majority of the membership of the state council constitutes a quorum. The state council serves in an advisory and consultative capacity to assist the division in the performance of its duties. Further, the state council shall identify funding, programs and decisions that affect infrastructure development, and make recommendations concerning these matters in order that state decision making will be oriented to supporting the creation, development and effective implementation of state and regional comprehensive infrastructure development plans.
Section 11-42-80. (A) There is created the South Carolina Infrastructure Bank, a body corporate and politic, and an instrumentality of the State.
(B) The governing body of the bank shall be governed by the Budget and Control Board and it shall be administered by the Division of Regional Development under the supervision of the board.
(C) The corporate purpose of the bank is to provide loans and other financial assistance to government units and private entities for implementing state and regional comprehensive infrastructure plans, including but not limited to providing loans and other financial assistance for constructing and improving highways and transportation facilities. The exercise by the authority of a power conferred in this chapter is an essential public function.
(D) The bank shall establish and maintain separate accounts, for infrastructure programs, including, but not limited to the state highway account, state transit account, federal highway account, federal transit account. Accounts shall not be commingled.
(E) The Budget and Control Board shall ensure that the bank maintains, on a continuing basis, a sufficient investment grade rating on its debt issuances or has a sufficient level of bond or debt instrument insurance to maintain the viability of the bank.
Section 11-42-90. (A) In addition to the powers otherwise provided by this chapter, the bank shall have all power necessary, useful, or appropriate to fund, operate and administer the bank, and to perform its other functions including, but not limited to, the power to:
(1) have perpetual succession;
(2) adopt, promulgate, amend, and repeal bylaws, subject to the approval of the board, not inconsistent with this chapter for the administration of its affairs and the implementation of its functions;
(3) sue and be sued in its own name;
(4) have a seal and alter it at its pleasure, although the failure to affix the seal does not affect the validity of an instrument executed on behalf of the bank;
(5) make loans to qualified borrowers to finance the eligible costs of qualified projects and to acquire, hold, and sell loan obligations at prices and in a manner as the Budget and Control Board determines advisable;
(6) provide qualified borrowers with other financial assistance necessary to defray eligible costs of a qualified project;
(7) to issue bonds as authorized by the board;
(8) enter into contracts, arrangements, and agreements with qualified borrowers and other persons and to execute and deliver all financing agreements and other instruments necessary or convenient to the exercise of the powers granted in this chapter;
(9) enter into agreements with a department, agency, or instrumentality of the United States or of this State or another state for the purpose of planning and providing for the financing of qualified projects;
(10) establish:
(a) policies and procedures for the making and administering of loans and other financial assistance; and
(b) fiscal controls and accounting procedures to ensure proper accounting and reporting by the bank, government units, and private entities.
(11) acquire by purchase, lease, donation, or other lawful means and to sell, convey, pledge, lease, exchange, transfer, and dispose of all or any part of its properties and assets of every kind and character or any interest in it, to further the public purpose of the bank;
(12) expend funds to obtain accounting, management, legal, financial consulting, and other professional services necessary to the operation of the bank;
(13) establish advisory committees as the board determines appropriate, which may include individuals from the private sector with banking and financial expertise;
(14) procure insurance against losses in connection with its property, assets, or activities, including insurance against liability for its acts or the acts of its employees or agents or the employees or agents of the affected agencies, or to establish cash reserves to enable it to act as a self-insurer against any and all such losses;
(15) collect fees and charges in connection with its loans or other financial assistance;
(16) apply for, receive, accept from any source, aid, grants, and contributions of money, property, labor, or other things of value to be used to carry out the purposes of this chapter subject to the conditions upon which the aid, grants, or contributions are made;
(17) enter into contracts or agreements for the servicing and processing of financing agreements;
(18) do all other things necessary or convenient to exercise powers granted or reasonably implied by this chapter.
(B) The bank is not authorized or empowered to be or to constitute a bank or trust company within the jurisdiction or under the control of the State or any agency of it or the Comptroller of the Currency or the Treasury Department of the United States, or a bank, banker, or dealer in securities under the laws of the United States or this State.
Section 11-42-100. Every state agency and program that licenses, permits, regulates or otherwise sanctions activities related to infrastructure development is expressly authorized and required by this chapter to consider and determine whether a respective governmental regulatory decision would be consistent with state and regional comprehensive infrastructure development plans.
Section 11-42-110. (A) The Regional Councils of Government shall serve as liaisons between the Division of Regional Development and the political subdivisions of this State. The Regional Councils of Government, utilizing among other things the infrastructure development plans of the local political subdivisions, shall develop and submit regional comprehensive infrastructure development plans to the Division of Regional Development. The political subdivisions shall be encouraged to develop local comprehensive infrastructure development plans. The Regional Councils of Government shall coordinate and assist the political subdivisions in the development of these plans. The Regional Councils of Government also shall undertake and carry out such activities as necessary to assist the Division of Regional Development in coordinating, developing, and implementing a coordinated and comprehensive infrastructure development plan for the State. Such activities may include, but are not limited to, the following:
(1) The Regional Councils of Government shall assist the political subdivisions in creating and developing local comprehensive infrastructure development plans. The political subdivisions shall take into account future developmental needs regarding water and sewer, transportation and highway systems, and communication systems when developing their plans.
(2) The Regional Councils of Government, utilizing the infrastructure development plans of the respective political subdivisions, among other things, shall assist the Division of Regional Development in coordinated and comprehensive planning on the state level and throughout the State, including, but not limited to, assistance in the development of an infrastructure development plan for the State.
(3) The Regional Councils of Government, utilizing the infrastructure development plans of the respective political subdivisions shall assist the Division of Regional Development in defining the State's long-term goals, objectives, and priorities and implementing those goals, objectives, and priorities through a coordinated and comprehensive infrastructure development plan.
(B) The Regional Councils of Government shall establish recommended standards and procedures for preparation of local comprehensive infrastructure development plans, for implementation of infrastructure development plans, and for participation in the infrastructure development planning process. Such activities may include, but are not limited to, the following:
(1) As part of such recommended standards and procedures, the Regional Councils of Government shall establish elements which shall be addressed and included in the infrastructure development plans of local governments which are prepared as part of the coordinated and comprehensive planning process. These plans shall include, but shall not be limited to, water and sewer, communication systems, and highway and transportation systems.
(2) The Regional Councils of Government shall establish recommended standards and procedures which shall be used by the political subdivisions in developing, preparing, and implementing their infrastructure development plans. In establishing such standards and procedures, the Regional Councils of Government shall be authorized to differentiate among the political subdivisions based upon factors which the Councils determine merit differentiation, such as total population, density of population, geographic features, the size of tax base, projected growth, the type and character of services furnished by local governments, the size of the budget, need and other factors.
(3) The Regional Councils of Government shall, in developing planning procedures with respect to regionally important resources, focus on elements of regional districts with respect to developments of regional impact, and encourage interjurisdictional cooperation among the political subdivisions. The councils shall determine, in their judgment for each region, what shall constitute developments of regional impact. Such determinations by the councils shall be made for each region only after requesting any necessary information from their respective political subdivisions.
(4) The Regional Councils of Government shall assist and advise the board in determinations made concerning the bank and distribution of funds and loans.
(C) The political subdivisions shall be encouraged to coordinate with and assist the Regional Councils of Government in developing local and regional comprehensive infrastructure development plans. Political subdivisions shall be encouraged to coordinate with the Regional Councils of Government in the analysis and preparation of these plans. The political subdivisions shall utilize information relating to water and sewer, communication, and highways and transportation. Further, data relating to current population and projected growth, tax base, local budget information, geographic factors, other demographics, and other data deemed necessary shall be utilized by the Regional Councils of Government.
Section 11-42-120. Bonds issued by the bank do not constitute a debt or liability of the State or any political subdivision of the State and the issuing of bonds does not pledge to their repayment the full faith and credit of the State or any political subdivision of this State.
Section 11-42-130. (A) The following sources may be used to capitalize the infrastructure bank:
(1) federal funds made available to the State;
(2) contributions and donations from public authorities, government units, and private entities;
(3) all monies paid or credit to the bank, by contract or otherwise, payments of principal and interest on loans or other financial assistance made from the bank, and interest earnings which may accrue from the investment or reinvestment of the bank monies, appropriated funds; and
(4) other lawful sources as determined appropriate by the board.
(B) The following sources of revenue are dedicated to the capitalization of the bank:
(1) an annual contribution set by the board, not to exceed ten percent of the state's federal aid highway apportionments;
(2) one cent a gallon of gasoline tax revenues as provided in Section 12-28-2720;
(3) interest earnings on the state highway fund and the economic development account.
Section 11-42-140. (A) The accounts of the Infrastructure Bank shall not be commingled. Earnings on balances in the federal account, must be credited and invested according to federal law. Earnings on the state highway account and state transit account must be credited to the respective state account that generates the earnings. Earnings on other state accounts must be credited and invested as provided by law. The bank may establish accounts and subaccounts within the state accounts and federal accounts as considered desirable to effectuate the purposes of this chapter, or to meet the requirements of any state or federal programs. All accounts must be held in trust by the State Treasurer.
(B) For necessary and convenient administration of the bank, the State Treasurer shall establish federal and state accounts and subaccounts within the bank necessary to meet any applicable state or federal law requirements or as the Budget and Control Board shall determine necessary or desirable in order to implement the provisions of this chapter.
(C) The bank shall comply with all applicable state and federal laws and regulations prohibiting the commingling of certain accounts deposited in the bank.
Section 11-42-150. (A) The bank may provide loans and other financial assistance to a government unit or private entity to pay for all or part of the eligible cost of a qualified project. The term of the loan or other financial assistance shall not exceed forty years. The bank may require the government unit or private entity to enter into a financing agreement in connection with its loan obligation. The board shall determine the form and content of loan applications, financing agreements and loan obligations including the term and rate or rates of interest on a financing agreement. The term and conditions of a loan or other financial assistance from a federal account shall comply with applicable federal requirements.
(B) The board shall determine which projects are eligible projects and then select from among the projects, the projects qualified to receive a loan or other financial assistance from the bank. In determining qualified projects, The board shall establish review criteria which include, but are not limited to:
(1) maximum economic benefit, enhancement of mobility, enhancement of public safety, acceleration of project completion, and enhancement of water and sewer services, communication and transportation services;
(2) the local community support of the project, matching support by the community or local government, as determined by the board;
(3) the ability of the applicant to repay a loan according to the terms and conditions established pursuant to this chapter, consideration of which may include, at the option of the bank board, the existence of current investment grade rating on existing debt of the applicant secured by the same revenues to be pledged to secure repayment under the loan repayment agreement; and
(4) the financial or in-kind contributions to the project.
The determination of eligible highway and transportation projects is subject to the review and approval of the Joint Bond Review Committee.
Section 11-42-160. (A) Qualified borrowers are authorized to obtain loans or other financial assistance from the bank, may perform any acts, take any action, adopt any proceedings, and make and carry out any contracts or agreements with the bank as may be agreed to by the bank and any qualified borrower for the carrying out of the purposes contemplated by this chapter.
(B) In addition to the authorizations contained in this chapter, all other provisions of law permitting qualified borrowers to borrow money and issue obligations may be utilized by any qualified borrower in obtaining a loan or other financial assistance from the bank to the extent determined necessary or useful by the qualified borrower in connection with any financing agreement and the issuance, securing, or sale of loan obligations to the bank. Notwithstanding the above on any other provision of law, obligations secured by ad valorem taxes may be issued by a government unit and purchased by the bank without regard to any public bidding requirement.
(C) A qualified borrower may receive, apply, pledge, assign, and grant security interest in project revenues, and, in the case of a governmental unit, its project revenues, revenues derived from a special source or ad valorem taxes, to secure its obligations as provided in this chapter. A qualified borrower also may fix, revise, charge, and collect fees, rates, rent, assessments, and other charges of general or special application for the operation or services of a qualified project, the system of which it is a part, and any other revenue producing facilities from which the qualified borrower derives project revenues, to meet its obligations under a financing agreement or to provide for the construction and improving of a qualified project.
Section 11-42-170. The bank is performing an essential governmental function in the exercise of the powers conferred upon it and is not required to pay taxes or assessments upon property or upon its operations or the income from them, or taxes or assessments upon property of other loan obligations acquired or used by the bank or upon the income from them.
Section 11-42-180. (A) If a government unit fails to collect and remit in full all amounts due to the bank on the date these amounts are due under the terms of any note or other obligation of the government unit or private entity, the bank shall notify the State Treasurer who, subject to the withholding of amounts under Article X, Section 14 of the Constitution of this State, shall withhold all or a portion of the funds of the State and all funds administered by the State, its agencies, boards, instrumentalities allotted or appropriated to the government unit and apply an amount necessary to the payment of this amount.
(B) Nothing contained in this section mandates the withholding of funds allocated to a government unit or private entity which would violate contracts to which the State is a party, the requirements of federal law imposed on the State, or court judgments.
Section 11-42-190. Neither the board nor any officer, employee, or committee of the bank acting in behalf of it, nor, an officer or employee of this State, while acting within the scope of this authority, is subject to any liability resulting from carrying out any of the powers given in this chapter.
Section 11-42-200. Notice, proceeding, or publication except those required in this chapter are not necessary to the performance of any act authorized in this chapter, nor is any act of the bank subject to any referendum.
Section 11-42-210. All money of the bank, except as authorized by law or provided in this chapter, must be deposited with and invested by the State Treasurer. Funds of the bank not needed for immediate use or disbursement may be invested by the State Treasurer in obligations or securities which are declared to be legal obligations by the provisions of Section 11-9-660. All federal funds must be invested as required by applicable federal law.
Section 11-42-220. Following the close of each state fiscal year, the bank shall submit an annual report of its activities for the preceding year to the Governor and to the General Assembly. The bank shall also submit an annual report to the appropriate federal agency in accordance with requirement of any federal program. An independent audit shall be performed by the state auditor or his designee at least once in each state fiscal year.
Section 11-42-230. (A) This chapter, being for the welfare of this State and its inhabitants, must be liberally construed to affect the purposes specified in this chapter. However, nothing in this chapter must be construed as affecting any proceeding, notice, or approval required by law for the issuance by a government unit or private entity of the loan obligations, instruments, or security for loan obligations.
(B) If any provision of this chapter is held or determined to be unconstitutional, invalid, or otherwise unenforceable by a court of competent jurisdiction, it is the intention of the General Assembly that the provision is, or is determined to be, severable from the remaining provisions of the chapter and that the holding does not invalidate or render unenforceable another provision of the chapter."
SECTION 3. Section 12-28-2720 of the 1976 Code, as last amended by Act 458 of 1996, is further amended to read:
"Section 12-28-2720. The proceeds from ten and thirty-four hundredths cents a gallon of the tax on gasoline only as levied and provided for in this chapter must be distributed as follows: nine and thirty-four hundredth cents on each gallon must be turned over to the Department of Transportation for the purpose of that department, and one cent on each gallon must be deposited by the State Treasurer to the credit of the state highway account of the South Carolina Infrastructure Bank."
SECTION 4. The second paragraph of Section 12-28-2910 of the 1976 Code, as last amended by Act 145 of 1995, is further amended to read:
"All interest earning on the Economic Development Account must be credited to the state highway account of the South Carolina Infrastructure Bank."
SECTION 5. Section 57-11-20(A) of the 1976 Code, as last amended by Act 461 of 1996, is further amended to read:
"(A) All state revenues and state monies dedicated by statute to the operation of the department must be deposited into one fund to be know as the 'state highway fund' and all federal revenues and federal monies must be deposited into the 'federal aid highway fund'. These funds must be held and managed by the State Treasurer separate and distinct from the general fund, except as to monies utilized by the State Treasurer for the payment of principal or interest on state highway bonds as provided by law. Interest income from state highway funds must be deposited to the credit of the state highway state highway account of the South Carolina Infrastructure Bank fund. The commission may commit up to the maximum annual debt service provided in Article X, Section 13 of the South Carolina Constitution into a special fund to be used for the sole purpose of paying the principal and interest, as it comes due, on bonds issued for the construction and/or maintenance of state highways, or both. This special account will be is designated as the 'State Highway Construction Debt Service Fund'."
SECTION 6. This act takes effect upon approval by the Governor.