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H. 3887
STATUS INFORMATION
General Bill
Sponsors: Rep. Cobb-Hunter
Document Path: l:\council\bills\ggs\22317ab09.docx
Introduced in the House on April 2, 2009
Currently residing in the House Committee on Ways and Means
Summary: School districts
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
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4/2/2009 House Introduced and read first time HJ-123
4/2/2009 House Referred to Committee on Ways and Means HJ-124
4/7/2009 Scrivener's error corrected
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND SECTION 11-27-110, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SUBJECTING A LEASE PURCHASE OR FINANCING AGREEMENT TO A CONSTITUTIONAL DEBT LIMIT, SO AS TO PROVIDE A SCHOOL DISTRICT WITH AN AVERAGE DAILY MEMBERSHIP OF SIXTY-FIVE HUNDRED STUDENTS OR LESS MAY ENTER CERTAIN FINANCING AGREEMENTS THROUGH DECEMBER 31, 2012.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 11-27-110(A) of the 1976 Code, as last amended by Act 388 of 2006, is further amended to read:
"(A) As used in this section:
(1) 'asset' means any a real property and a permanent improvements thereon improvement on it, including structures, buildings, and fixtures a structure, building, and fixture;
(2) 'bond act' means the:
(a) the county bond act, as contained in Chapter 15, of Title 4;
(b) the municipal bond act, as contained in Article 5, Chapter 21, of Title 5;
(c) the school bond act as contained in Article 1, Chapter 71, of Title 59;
(d) the provisions contained in Articles 3 and 5 of Chapter 11, of Title 6 pertaining to special purpose districts;
(e) any provision of law by which the State may issue obligations an obligation secured in whole or in part by the full faith, credit, and taxing power of the State; and
(f) any other law, general or special law, providing for the issuance of a general obligation bonds bond by the State or any of its a political subdivisions subdivision of it;
(3) 'constitutional debt limit' for the State or any a political subdivision of the State which it that has the power to incur general obligation bonded indebtedness, means the limitation of the principal amount of general obligation bonded indebtedness specified in Article X of the Constitution;
(4) 'enterprise charge' means a local accommodations tax or a local hospitality tax, or both of them, imposed by one or more governmental entities, the proceeds from which may be used only for limited purposes which that either:
(i)(a) has been imposed within the two fiscal years prior to before the date of an enterprise financing agreement,; or
(ii)(b) to the extent a governmental entity pledges such a charge in connection with an enterprise financing agreement, the governmental entity covenants and agrees not to increase disbursements from its general fund to pay for costs which that could have been paid from the charge for a period of two fiscal years after the date of the acquisition or completion of the asset provided by the enterprise financing agreement;
(5) 'enterprise financing agreement' means a financing agreement entered into to provide an asset for a governmental enterprise:
(i)(a) the revenues revenue from which are expected to be sufficient to pay the amounts an amount due under the financing agreement,; or
(ii)(b) for which an enterprise charge has been imposed in an amount expected to be sufficient to pay the amounts an amount due under the financing agreement,; or
(iii)(c) a combination of revenues described under (i)(a) and (ii)(b) are expected to produce an amount sufficient to pay the amounts an amount due under the financing agreement;
(6) 'financing agreement' means, with respect to any a governmental entity, any a contract entered into after December 31, 1995, under the terms of which a governmental entity acquires the use of an asset which provides:
(a) for payments to be made in more than one fiscal year, whether by the stated term of the contract or under any a renewal provisions provision, optional or otherwise;
(b) that the payments thereunder under it are divided into principal and interest components or which contain any a reference to any a portion of any a payment under the agreement being treated as interest;
(c) that title to the asset will be in the name of or be transferred to the governmental entity if all payments scheduled or provided for in the financing agreement are made; and
(d) for any a contract entered into after December 31, 2006, pursuant to which installment payments of the purchase price are to be paid by a school district or other political subdivision to a nonprofit corporation, political subdivision, or any other another entity in order to finance the acquisition, construction, renovation, or repair of a school buildings building or other school facilities facility. However, for a school district with an average daily membership of sixty-five hundred or less for the current or immediately preceding academic year, this limitation only shall apply to a contract entered into on January 1, 2013, or later. This item shall must apply to any contracts a contract entered into after August 31, 2006, pursuant to which installment payments of the purchase price are to be paid by a school district or other political subdivision to a non-profit corporation, political subdivision, or any other another entity, from any a source other than the issuance of general obligation indebtedness by the school district, in order to finance the acquisition, construction, renovation, or repair of a school buildings building or other school facilities facility.
However, the term excludes any a refinancing agreement and contracts contract entered into in connection with issues the issue of a general obligation bonds bond or revenue bonds bond issued pursuant to authorization provided in Article X of the Constitution;
(7) 'governmental enterprise' means any an activity undertaken by a governmental entity which either that:
(i)(a) derives revenues from or because of an activity on a basis other than the exercise of the power of taxation by that governmental entity,; or
(ii)(b) is entitled to be paid or supported from an enterprise charge;
(8) 'governmental entity' means:
(a) the State, whose general obligation debt service payments are limited pursuant to Section 13, Article X of the Constitution; or
(b) any a political subdivision of the State including a municipality, county, school district, special purpose district, or similar entity, whose general obligation debt is limited as provided in Sections 14 and 15, in Article X of the Constitution;
(9) 'limited bonded indebtedness' means the amount of bonded indebtedness that may be incurred by a governmental entity without a referendum or, where the context requires, the amount of such the indebtedness then outstanding;
(10) 'principal balance' means the total amount, excluding any an amount characterized as interest, payable as of any at the time of consideration under any a financing agreement, including any renewals a renewal or extensions extension of the agreement; and
(11) 'refinancing agreement' means an agreement or agreements that would be a financing agreement except that:
(i)(a) it refinances an asset acquired under the terms of a contract or contracts that is not a financing agreement solely by virtue of being dated prior to January 1, 1996, September 1, 2006, or January 1, 2007, or January 1, 2013; and
(ii)(b) the sum of all payments to be made under such this agreement is less than the sum of the payments under the contract or contracts it refinances."
SECTION 2. This act takes effect upon approval by the Governor.
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