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H. 4561
STATUS INFORMATION
General Bill
Sponsors: Reps. Hagood and Scarborough
Document Path: l:\council\bills\agm\19016mm08.doc
Companion/Similar bill(s): 905
Introduced in the House on January 24, 2008
Currently residing in the House Committee on Ways and Means
Summary: Beachfront Finance Act
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 1/24/2008 House Introduced and read first time HJ-5 1/24/2008 House Referred to Committee on Ways and Means HJ-5
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, SO AS TO ENACT THE "BEACHFRONT FINANCE ACT" BY ADDING SECTION 6-1-580 TO PROVIDE THAT A COUNTY OR MUNICIPALITY MAY ISSUE BONDS TO FINANCE THE COST OF CONTROLLING AND REPAIRING WATERFRONT EROSION, BY AMENDING SECTION 6-4-15, RELATING TO THE USE OF REVENUE FROM THE STATE ACCOMMODATIONS TAX, TO PROVIDE THAT A MUNICIPALITY OR COUNTY MAY ISSUE BONDS TO FINANCE THE COST OF CONTROLLING AND REPAIRING WATERFRONT EROSION; BY AMENDING SECTION 6-4-20, RELATING TO ADMINISTRATION OF THE STATE ACCOMMODATIONS TAX, TO PROVIDE THAT THE STATE TREASURER MAY NOT WITHHOLD ACCOMMODATION TAX FUNDS FROM A LOCAL GOVERNMENT THAT COLLECTS FOUR HUNDRED THOUSAND DOLLARS OR MORE IF THE LOCAL GOVERNMENT HAS WITHIN ITS BOUNDARIES A BEACH THAT IS RANKED AMONG THE MOST AT-RISK BEACHES IN THE STATE BY THE OFFICE OF OCEAN AND COASTAL RESOURCE MANAGEMENT, AND TO PROVIDE THAT A LOCAL GOVERNMENT WITH ONE OF THE MOST AT-RISK BEACHES WITHIN ITS BOUNDARIES MAY ISSUE A BEACH RENOURISHMENT BOND OR MAY USE THE FUNDS RETAINED FOR THE PURPOSE OF CONTROLLING OR REPAIRING WATERFRONT EROSION; AND BY AMENDING SECTION 48-40-70, TO REQUIRE THE OFFICE OF OCEAN AND COASTAL RESOURCE MANAGEMENT TO RANK THE MOST AT-RISK BEACHES IN THE STATE IN ITS ANNUAL STATE OF THE BEACHES REPORT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. This act may be referred to as "The Beachfront Finance Act".
SECTION 2. Article 5, Chapter 1, Title 6 of the 1976 Code is amended by adding:
"Section 6-1-580. Notwithstanding any other provision of this title, any county or municipality is authorized to issue bonds, pursuant to Article X, Section 14(10) of the Constitution of South Carolina, 1895, to secure obligations to finance all or a portion of the cost of controlling and repairing waterfront erosion. As security for the bonds, any county or municipality may pledge the proceeds of the local accommodations fees and local hospitality fees imposed in this chapter."
SECTION 3. Section 6-4-15 of the 1976 Code is amended to read:
"Section 6-4-15. A municipality or county may issue bonds, enter into other financial obligations, or create reserves to secure obligations to finance all or a portion of the cost of constructing facilities for civic activities, the arts, and cultural events which fulfill the purpose of this chapter, and for controlling and repairing waterfront erosion. The annual debt service of indebtedness incurred to finance the facilities or lease payments for the use of the facilities may be provided from the funds received by a municipality or county from the accommodations tax in an amount not to exceed the amount received by the municipality or county after deduction of the accommodations tax funds dedicated to the general fund and the advertising and promotion fund. However, none of the revenue received by a municipality or county from the accommodations tax may be used to retire outstanding bonded indebtedness unless accommodations tax revenue was obligated for that purpose when the debt was incurred."
SECTION 4. Section 6-4-20(B) of the 1976 Code is amended to read:
"(B)(1) At the end of each fiscal year and before August first a percentage, to be determined by the State Treasurer, must be withheld from those county areas collecting four hundred thousand dollars or more from that amount which exceeds four hundred thousand dollars from the tax authorized by Section 12-36-2630(3), and that amount must be distributed to assure that each county area receives a minimum of fifty thousand dollars. The amount withheld from those county areas collecting four hundred thousand dollars or more must be apportioned among the municipalities and the county in the same proportion as those units received quarterly remittances in Section 12-36-2630(3). If the total statewide collections from the local accommodations tax exceeds the statewide collections for the preceding fiscal year then this fifty thousand dollar figure must be increased by a percentage equal to seventy-five percent of the statewide percentage increase in statewide collections for the preceding fiscal year. The difference between the fifty thousand dollars minimum and the actual collections within a county area must be distributed to the eligible units within the county area based on population as determined by the most recent United States census.
(2) Notwithstanding the provisions of this subsection, the State Treasurer shall not withhold a percentage of funds of a local government within a county area that collects four hundred thousand dollars or more from the tax authorized by Section 12-36-2630(3) if the local government has a beach within its boundaries that is identified as one of the at-risk beaches ranked in the Annual State of the Beaches Report pursuant to Section 48-40-70. A local government who qualifies for the exemption must notify the Treasurer in writing of its status, along with proof of eligibility, prior to August first of each year.
(3) In a year that a beach within its boundaries qualifies a local government for the exemption provided in item (2), the local government may issue beach renourishment bonds if the local government has not already issued beach renourishment bonds pursuant to this item. The proceeds of the bonds must be used by the local government only for controlling and repairing waterfront erosion. All funds retained by a local government that issues beach renourishment bonds as a result of the exemption in item (2) must be used solely for servicing the debt on the bond. A local government that issues beach renourishment bonds shall automatically qualify for the exemption provided in item (2) each year for the term of the bonds. The term of beach renourishment bonds may not exceed fifteen years. A local government that qualifies for the exemption provided in item (2) that does not issue beach renourishment bonds must use the funds retained only for the purpose of controlling or repairing waterfront erosion."
SECTION 5. Section 48-40-70 of the 1976 Code is amended by adding:
"(F) The office must annually rank the most at-risk beaches in its Annual State of the Beaches Report. The rankings must be divided into two categories. One category must rank the five most at-risk beaches in the State regardless of whether the beach qualifies for state beach renourishment funding. The second category must rank the five most at-risk beaches in the State that qualify for state beach renourishment funding. For the purposes of this section, an at-risk beach is one that, based upon beach condition, has a critical lack of sand resulting in little or no beach at high tide."
SECTION 6. This act takes effect upon approval by the Governor.
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