South Carolina General Assembly
116th Session, 2005-2006

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H. 4983

STATUS INFORMATION

General Bill
Sponsors: Reps. Perry, Harrell, D.C. Smith, J.R. Smith, Stewart and Clyburn
Document Path: l:\council\bills\bbm\9395htc06.doc

Introduced in the House on April 13, 2006
Introduced in the Senate on April 25, 2006
Currently residing in the Senate Committee on Finance

Summary: Tax Increment Financing Law

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
   4/13/2006  House   Introduced and read first time HJ-2
   4/13/2006  House   Referred to Committee on Ways and Means HJ-3
   4/19/2006  House   Member(s) request name added as sponsor: Harrell, 
                        D.C.Smith, J.R.Smith, Stewart, Clyburn
   4/19/2006  House   Recalled from Committee on Ways and Means HJ-19
   4/20/2006  House   Read second time HJ-34
   4/20/2006  House   Unanimous consent for third reading on next legislative 
                        day HJ-35
   4/20/2006          Scrivener's error corrected
   4/21/2006  House   Read third time and sent to Senate HJ-1
   4/25/2006  Senate  Introduced and read first time SJ-13
   4/25/2006  Senate  Referred to Committee on Finance SJ-13

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

4/13/2006
4/19/2006
4/20/2006

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter Stricken

Indicates New Matter

RECALLED

April 19, 2006

H. 4983

Introduced by Rep. Perry, Harrell, D.C. Smith, J.R. Smith, J.E. Stewart and Clyburn

S. Printed 4/19/06--H.    [SEC 4/20/06 7:29 PM]

Read the first time April 13, 2006.

            

A BILL

TO AMEND SECTIONS 31-6-30 AND 31-6-80, BOTH AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS AND PROCEDURES FOR ADOPTING REDEVELOPMENT PLANS FOR PURPOSES OF THE TAX INCREMENT FINANCING LAW, SO AS TO REVISE THE DEFINITIONS FOR "REDEVELOPMENT PLAN" AND "REDEVELOPMENT PROJECT COSTS", AND TO REQUIRE ADDITIONAL FINDINGS BEFORE ADOPTION OF A REDEVELOPMENT PLAN BY A MUNICIPALITY; AND TO AMEND SECTIONS 31-7-30, 31-7-80, AND 31-7-120, ALL AS AMENDED, RELATING TO DEFINITIONS, PROCEDURES FOR ADOPTING REDEVELOPMENT PLANS AND INTERGOVERNMENTAL AGREEMENTS FOR PURPOSES OF THE TAX INCREMENT FINANCING ACT FOR COUNTIES, SO AS TO REENACT PORTIONS OF THE DEFINITION OF "BLIGHTED AREA" INADVERTENTLY DELETED AND REVISE DEFINITIONS FOR "CONSERVATION AREA" AND "REDEVELOPMENT PROJECT AREA", TO REQUIRE ADDITIONAL FINDINGS BEFORE ADOPTION OF A REDEVELOPMENT PLAN BY A COUNTY, AND TO CLARIFY THE APPLICATION OF MUNICIPAL AND COUNTY TAX INCREMENT FINANCING LAWS TO INTERGOVERNMENTAL AGREEMENTS.

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

SECTION    1.    Items (5) and (8) of Section 31-6-30 of the 1976 Code, as last amended by Act 109 of 2005, are amended to read:

"(5)    'Redevelopment plan' means the comprehensive program of the municipality for redevelopment intended by the payment of redevelopment costs to reduce or eliminate those conditions which qualified the redevelopment project area as an agricultural area, blighted area, conservation area or combination thereof, and thereby to enhance the tax bases of the taxing districts which extend into the project redevelopment area. Each redevelopment plan shall set forth in writing the program to be undertaken to accomplish the objectives and shall include, but not be limited to, estimated redevelopment project costs including long-term project maintenance, as applicable, the anticipated sources of funds to pay costs, the nature and term of any obligations to be issued, the most recent equalized assessed valuation of the project area, an estimate as to the equalized assessed valuation after redevelopment, and the general land uses to apply in the redevelopment project area. A redevelopment plan established by Chapter 10 of Title 31 is deemed a redevelopment plan for purposes of this paragraph. The redevelopment plan must adhere to the goals and objectives of the respective municipality's comprehensive plan, zoning ordinance, and development standards.

(8)    'Redevelopment project costs' means and includes the sum total of all reasonable or necessary public costs incurred or estimated to be incurred and any costs incidental to a redevelopment project. The costs include, without limitation:

(a)    costs of studies and surveys, plans, and specifications; professional service costs including, but not limited to, architectural, engineering, legal, marketing, financial, planning, or special services.

(b)    property assembly costs including, but not limited to, acquisition of land and other property, real or personal, or rights or interest therein, demolition of buildings, and the clearing and grading of land.

(c)    costs of rehabilitation, reconstruction, repair, or remodeling of a redevelopment project.

(d)    costs of the construction and long-term maintenance of a redevelopment project.

(e)    financing costs including, but not limited to, all necessary and incidental expenses related to the issuance of obligations and which may include payment of interest on any obligations issued under the provisions of this chapter accruing during the estimated period of construction of any redevelopment project for which the obligations are issued and including reasonable reserves related thereto.

(f)    relocation costs, including relocation or removal costs of federal, state, or local government facilities or activities, to the extent that a municipality determines that relocation costs must be paid or required by federal or state law."

SECTION    2.    Item (g) of the first undesignated paragraph and the second undesignated paragraph of Section 31-6-80 of the 1976 Code, as last amended by Act 109 of 2005, are further amended to read:

"(g)(i)    findings that:

(i)(A)        the redevelopment project area is an agricultural, a blighted, or conservation area and that private initiatives are unlikely to alleviate these conditions without substantial public assistance;

(ii)(B)    property values in the area would remain static or decline without public intervention; and

(iii)(C)    redevelopment is in the interest of the health, safety, and general welfare of the citizens of the municipality.

(ii)    in a study prepared at the municipality's expense by a firm with a national reputation or a state university or college with demonstrated experience in analyzing development plans using tax increment financing, it is the preparer's unambiguous opinion that but for the use of the Tax Increment Financing Law, the redevelopment of the area that is the subject of the redevelopment plan will not occur. In addition, this analysis must include the potential impact and long-term costs of using tax increment financing on each property-taxing jurisdiction directly affected by the plan. The municipality may not accept reimbursement from any private source for the expenses of retaining the firm or institution selected to analyze the redevelopment plan and any tax increment financing district included in the plan.

Before approving any redevelopment plan under this chapter, the governing body of the municipality must hold a public hearing on the redevelopment plan after published notice in a newspaper of general circulation in the county in which the municipality and any taxing district affected by the redevelopment plan is located not less than fifteen days and not more than thirty days prior to before the hearing. The notice shall include:

(1)    the time and place of the public hearing;

(2)    the boundaries of the proposed redevelopment project area;

(3)    a notification that all interested persons will be given an opportunity to be heard at the public hearing;

(4)    a description of the redevelopment plan and redevelopment project or projects; and

(5)    a description of the plan of finance prepared by a financial advisor retained by the municipality which must include, but is not limited to, the maximum estimated term and the annual interest rate of any obligations of indebtedness to be issued under the redevelopment plan or pursuant to any method of tax increment financing; and

(6)    a summary of the findings of the firm of national reputation or a state university or college referred to in subitem (ii) of this item regarding the redevelopment plan and any tax increment finance district proposed or contemplated in the plan."

SECTION    3.    Items (1), (2), and (8) of Section 31-7-30 of the 1976 Code, as last amended by Act 109 of 2005, are further amended to read:

"(1)    'Blighted area' means any improved or vacant area within the boundaries of a redevelopment project area located within the territorial limits of a county where:

(a)    if improved, industrial, commercial, and residential buildings or improvements, because of a combination of five or more of the following factors: age; dilapidation; obsolescence; deterioration; illegal use of individual structures; presence of structures below minimum code standards; excessive vacancies; overcrowding of structures and community facilities; presence of or potential environmental hazard; lack of ventilation, light, storm drainage, or sanitary facilities; inadequate utilities; inadequate transportation infrastructure; excessive land coverage; deleterious land use or layout; depreciation of physical maintenance; lack of community planning, are detrimental to the public safety, health, morals, or welfare; or

(b)    if vacant, the sound growth is impaired by:

(i)        a combination of two or more of the following factors: obsolete platting of the vacant land; diversity of ownership of such land; tax and special assessment delinquencies on such land; deterioration of structures or site improvements in neighboring areas adjacent to the vacant land; or

(ii)    the area immediately prior to becoming vacant qualified as a blighted area. Any area within a redevelopment plan established by Chapter 10 of Title 31 is deemed to be a blighted area.

(2)    'Conservation area' means any vacant or improved area within the boundaries of a redevelopment project area located within the territorial limits of a county that is not yet a blighted area but, because of a combination of three or more of the following factors: dilapidation; obsolescence; deterioration; illegal use of structures; presence of structures below minimum code standards; abandonment; excessive vacancies; overcrowding of structures and community facilities; presence of or potential environmental hazard; lack of ventilation, light, storm drainage, or sanitary facilities; inadequate utilities; inadequate public transportation infrastructure; excessive land coverage; depreciation of physical maintenance; lack of community planning; agricultural foreclosures; static or declining agricultural land rental rates; depopulation; area-wide economic decline; or static per capita income, is detrimental to the public safety, health, morals, or welfare and may become a blighted area.

(8)    'Redevelopment project area' means an area designated by the county, which is not less in the aggregate than one and one-half acres and in respect to which the county has made a finding that there exist conditions that cause the area to be classified as a blighted area, a conservation area, or a sprawl area, or a combination of two or three of them. The total aggregate amount of all redevelopment project areas of any one county may not exceed five percent of the total acreage of the county but this limit does not apply with respect to these parts of a redevelopment project area comprised of a conservation area or a RRZ sprawl area."

SECTION    4.    Subsections (A) and (B) of Section 31-7-80 of the 1976 Code, as last amended by Act 109 of 2005, are further amended to read:

"(A)    Prior to the issuance of Before issuing any obligations under this chapter, the county shall set forth by way of ordinance the following:

(1)    a copy of the redevelopment plan containing a statement of the objectives of a county with regard to the plan;

(2)    a statement indicating the need for and proposed use of the proceeds of the obligations in relationship to the redevelopment plan;

(3)    a statement containing the cost estimates of the redevelopment plan and redevelopment project and the projected sources of revenue to be used to meet the costs including estimates of tax increments and the total amount of indebtedness to be incurred;

(4)    a list of all real property in the redevelopment project area;

(5)    the duration of the redevelopment plan;

(6)    a statement of the estimated impact of the redevelopment plan upon the revenues of all taxing districts in which a redevelopment project area is located and, if residential development is included in the plan, the estimated impact on public school enrollment;

(7)(a)    findings that:

(a)(i)    the redevelopment project area is a blighted, conservation, or sprawl area and that private initiatives alone are unlikely to alleviate these conditions without substantial public assistance.

(b)(ii)    property values in the area would remain static or decline without public intervention, and

(c)(iii)    redevelopment is in the interest of the health, safety, and general welfare of the citizens of the county.

(b)    in a study prepared at the county's expense by a firm with a national reputation or a state university or college with demonstrated experience in analyzing development plans using tax increment financing, it is the preparer's unambiguous opinion that but for the use of the Tax Increment Financing Act for Counties, the redevelopment of the area that is the subject of the redevelopment plan will not occur. In addition, this analysis must include the potential impact and long-term costs of using tax increment financing on each property-taxing jurisdiction directly affected by the plan. The county may not accept reimbursement from any private source for the expenses of retaining the firm or institution selected to analyze the redevelopment plan and any tax increment financing district included in the plan. The redevelopment plan must adhere to the goals and objectives of the respective municipality's comprehensive plan, zoning ordinance, and development standards.

(B)    Before approving any redevelopment plan under this chapter, the governing body of the county must hold a public hearing on the redevelopment plan after published notice in a newspaper of general circulation in the county in which the county and any taxing district affected by the redevelopment plan is located not less than fifteen days and not more than thirty days prior to before the hearing. The notice shall include:

(1)    the time and place of the public hearing;

(2)    the boundaries of the proposed redevelopment project area;

(3)    a notification that all interested persons will be given an opportunity to be heard at the public hearing;

(4)    a description of the redevelopment plan and redevelopment project or projects; and

(5)    a description of the plan of finance prepared by a financial advisor retained by the county which must include, but is not limited to, the maximum estimated term and the annual interest rate of obligations to be issued under the redevelopment plan or pursuant to any method of tax increment financing; and

(6)    a summary of the findings of the firm of national reputation or a state university or college with demonstrated experience referred to in subsection (A)(7)(b) of this section regarding the redevelopment plan and any tax increment finance district proposed or contemplated in the plan.

Not less than forty-five days prior to before the date set for the public hearing, the county shall give notice to all taxing districts of which taxable property is included in the redevelopment project area, and in addition to the other requirements of the notice set forth in the section, the notice shall request each taxing district to submit comments to the county concerning the subject matter of the hearing prior to before the date of the public hearing."

SECTION    5.    Section 31-7-120 of the 1976 Code, as last amended by Act 109 of 2005, is further amended to read:

"Section 31-7-120.    Counties and municipalities through intergovernmental agreements may jointly adopt redevelopment plans and authorize obligations as provided under the provisions of this chapter and Chapter 6 of this title. Counties by intergovernmental agreement incorporated into individual county ordinances, may establish a multi-county or regional authority for both the establishing of a redevelopment plan and redevelopment projects if the documented economic impacts of projects extend beyond the boundaries of a single county. All actions to develop such plans and projects must be taken by the governing bodies of the respective counties participating in the grouping or authority pursuant to the contractual terms of the intergovernmental agreements establishing such groupings or authority pursuant to the provisions of this chapter and Chapter 6 of this title."

SECTION    6.    This act takes effect upon approval by the Governor.

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