S 1091 Session 111 (1995-1996)
S 1091 General Bill, By Ryberg
A Bill to amend Section 1-30-25, Code of Laws of South Carolina, 1976,
relating to the Department of Commerce, so as to provide that the South
Carolina Jobs-Economic Development Authority shall be administered by the
Department; to amend Section 13-1-10 of the 1976 Code, relating to the
establishment of the Department of Commerce, so as to transfer to the
Department the functions, powers, and duties provided by law to the South
Carolina Jobs-Economic Development Authority and to establish the
Jobs-Economic Development Division within the Department; to amend Section
13-1-20 of the 1976 Code, relating to the purposes of the Department of
Commerce, so as to add the purpose of promotion and development of the
business and economic welfare of the State through the development of and
assistance to small businesses; to amend Section 13-1-1710 of the 1976 Code,
relating to the Advisory Coordinating Council for Economic Development, so as
to provide that the Director of the Jobs-Economic Development Division shall
be a member of the Council rather than the Chairman of the South Carolina
Jobs-Economic Development Authority; to amend Chapter 1, Title 13 of the 1976
Code by adding Article 13 so as to provide for the establishment of the
Jobs-Economic Development Division within the Department of Commerce; and to
repeal Chapter 43, Title 41 of the 1976 Code relating to the South Carolina
Jobs-Economic Development Authority.
02/01/96 Senate Introduced and read first time SJ-4
02/01/96 Senate Referred to Committee on Judiciary SJ-4
A BILL
TO AMEND SECTION 1-30-25, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO THE DEPARTMENT OF
COMMERCE, SO AS TO PROVIDE THAT THE SOUTH
CAROLINA JOBS-ECONOMIC DEVELOPMENT AUTHORITY
SHALL BE ADMINISTERED BY THE DEPARTMENT; TO
AMEND SECTION 13-1-10 OF THE 1976 CODE, RELATING
TO THE ESTABLISHMENT OF THE DEPARTMENT OF
COMMERCE, SO AS TO TRANSFER TO THE DEPARTMENT
THE FUNCTIONS, POWERS, AND DUTIES PROVIDED BY
LAW TO THE SOUTH CAROLINA JOBS-ECONOMIC
DEVELOPMENT AUTHORITY AND TO ESTABLISH THE
JOBS-ECONOMIC DEVELOPMENT DIVISION WITHIN THE
DEPARTMENT; TO AMEND SECTION 13-1-20 OF THE 1976
CODE, RELATING TO THE PURPOSES OF THE
DEPARTMENT OF COMMERCE, SO AS TO ADD THE
PURPOSE OF PROMOTION AND DEVELOPMENT OF THE
BUSINESS AND ECONOMIC WELFARE OF THE STATE
THROUGH THE DEVELOPMENT OF AND ASSISTANCE TO
SMALL BUSINESSES; TO AMEND SECTION 13-1-1710 OF
THE 1976 CODE, RELATING TO THE ADVISORY
COORDINATING COUNCIL FOR ECONOMIC
DEVELOPMENT, SO AS TO PROVIDE THAT THE DIRECTOR
OF THE JOBS-ECONOMIC DEVELOPMENT DIVISION SHALL
BE A MEMBER OF THE COUNCIL RATHER THAN THE
CHAIRMAN OF THE SOUTH CAROLINA JOBS-ECONOMIC
DEVELOPMENT AUTHORITY; TO AMEND CHAPTER 1,
TITLE 13 OF THE 1976 CODE BY ADDING ARTICLE 13 SO
AS TO PROVIDE FOR THE ESTABLISHMENT OF THE
JOBS-ECONOMIC DEVELOPMENT DIVISION WITHIN THE
DEPARTMENT OF COMMERCE; AND TO REPEAL CHAPTER
43, TITLE 41 OF THE 1976 CODE RELATING TO THE SOUTH
CAROLINA JOBS-ECONOMIC DEVELOPMENT AUTHORITY.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Section 1-30-25 of the 1976 Code is amended to
read:
"Section 1-30-25. Effective on July 1, 1993, the following
agencies, boards, and commissions, including all of the allied,
advisory, affiliated, or related entities as well as the employees,
funds, property and all contractual rights and obligations associated
with any such agency, except for those subdivisions specifically
included under another department, are hereby transferred to and
incorporated in and shall be administered as part of the Department
of Commerce to be divided into divisions for Aeronautics, Advisory
Coordinating Council for Economic Development, State
Development, Public Railways, Savannah Valley Development, and
Jobs-Economic Development:
(A) South Carolina Aeronautics Commission, formerly provided
for at Section 55-5-10, et seq.;
(B) Coordinating Council for Economic Development, formerly
provided for at Section 41-45-30, et seq.;
(C) Savannah Valley Authority, formerly provided for at Section
13-9-10, et seq.;
(D) State Development Board, except for the Film Office,
formerly provided for at Section 13-3-10, et seq.;
(E) South Carolina Public Railways Commission, formerly
provided for at Section 58-19-10, et seq.;
(F) South Carolina Jobs-Economic Development Authority,
formerly provided for at Section 41-43-10, et seq."
SECTION 2. Sections 13-1-10 and 13-1-20 of the 1976 Code
are amended to read:
"Section 13-1-10. (A) The Department of Commerce is
established as an administrative agency of state government which
is comprised of a Division of State Development, a Division of
Savannah Valley Development, a Division of Aeronautics, a
Division of Public Railways, and an Advisory Coordinating
Council for Economic Development, and a Jobs-Economic
Development Division. Each division of the Department of
Commerce shall have such functions and powers as provided for by
law.
(B) All functions, powers, and duties provided by law to the
State Development Board, the Savannah Valley Authority, the
South Carolina Aeronautics Commission, the South Carolina Public
Railways Commission, and the Coordinating Council for
Economic Development, and the South Carolina Jobs-Economic
Development Authority, its their officers or
agencies, are hereby transferred to the Department of Commerce
together with all records, property, personnel, and unexpended
appropriations. All rules, regulations, standards, orders, or other
actions of these entities shall remain in effect unless specifically
changed or voided by the department in accordance with the
Administrative Procedures Act.
Section 13-1-20. The Department of Commerce shall conduct an
adequate statewide program for the stimulation of economic activity
to develop the potentialities of the State; manage the business and
affairs of the Savannah Valley Development; develop state public
airports and an air transportation system that is consistent with the
needs and desires of the public; develop the state public railway
system for the efficient and economical movement of freight,
goods, and other merchandise; promote and develop the
business and economic welfare of the State through the
development of and assistance to small businesses; and enhance
the economic growth and development of the State through strategic
planning and coordinating activities."
SECTION 3. Section 13-1-1710 of the 1976 Code is amended
to read:
"Section 13-1-1710. There is hereby created the Advisory
Coordinating Council for Economic Development. The membership
shall consist of the Secretary of Commerce, the Commissioner of
Agriculture, the Chairman of the South Carolina Employment
Security Commission, the Director of the South Carolina
Department of Parks, Recreation and Tourism, the Chairman of the
State Board for Technical and Comprehensive Education, the
Chairman of the South Carolina Ports Authority, the Chairman of
the South Carolina Public Service Authority, the Chairman of
the South Carolina Jobs Economic Development Authority
the Director of the Jobs-Economic Development Division of the
Department of Commerce, the Chairman of the South Carolina
Department of Revenue and Taxation, and the Chairman of the
Small and Minority Business Expansion Council. The Secretary of
Commerce shall serve as the chairman of the advisory coordinating
council."
SECTION 4. Chapter 1, Title 13 of the 1976 Code is amended
by adding:
Article 13
Jobs-Economic Development Division
Section 13-1-1810. As used in this article unless the context
otherwise requires:
(A) `Administrative funds' means all monies, received by the
division from the general fund of the State or from the exercise of
the power of taxation by the State or any of its political
subdivisions which are designated specifically to be used for the
payment of administrative expenses, and the earnings on the funds.
(B) `Banks' means financial organizations organized, chartered,
or holding an authorization certificate and subject to supervision by
an agency or official of South Carolina or of the United States and
authorized to make loans and receive deposits. It includes but is not
limited to savings and loan associations and savings banks.
(C) `Bonds' means any evidence of indebtedness of the division
in any form including, but not limited to, notes, warrants, bonds, or
any similar obligation evidenced in written, printed, or electronic
means.
(D) `Director' means the Director of the Jobs-Economic
Development Division.
(E) `Division' means the Jobs-Economic Development Division.
(F) `Program funds' means any monies, including, but not
limited to, the proceeds from bond sales, the sale or disposition of
any assets, or any other source available to the division, other than
administrative funds and the earnings on the funds.
Section 13-1-1820. There is created the Jobs-Economic
Development Division within the Department of Commerce which
must be governed by the Secretary of Commerce.
Section 13-1-1830. The net earnings of the division, beyond that
necessary for retirement of its bonds or other obligations or to
implement the purposes of this act, shall not inure to the benefit of
any person other than the division. Upon termination of the
existence of the division, title to all property, real and personal,
owned by it, including net earnings, must vest in the State.
The division shall retain unexpended funds at the close of the
state fiscal year regardless of the source of the funds and expend
the funds in subsequent fiscal years. Nothing contained in this
article may be construed to imply that the division may not receive
state general appropriation funds or state general obligation bond
proceeds.
Section 13-1-1840. The division shall promote and develop the
business and economic welfare of this State, encourage and assist
through loans, investments, research, technical and managerial
advice, studies, data compilation and dissemination, and similar
means, in the location of new business enterprises in this State and
in rehabilitation and assistance of existing business enterprises and
in the promotion of the export of goods, services, commodities, and
capital equipment produced within the State, so as to provide
maximum opportunities for creation and retention of jobs and
improvement of the standard of living of the citizens of the State,
and act in conjunction with other persons and organizations, public
or private, in the promotion and advancement of industrial,
commercial, agricultural, and recreational development in this State.
In the promotion, development, and advancement of these
programs, the division must give consideration to the development
of and assistance to small businesses in this State as may be defined
by regulation of the division.
Section 13-1-1850. The division must implement the programs of
this act as soon as practicable. The division must exercise care in
the performance of its duties and the selection of specific programs
and business enterprises to receive its assistance. The division may
delegate its authority to implement the programs authorized to any
governmental agency or financial institution. The division must
retain ultimate responsibility and provide proper oversight for the
implementation.
Section 13-1-1860. The director has the rights and powers of a
body politic and corporate with respect to the division, including
without limitation all the rights and powers necessary or convenient
to manage the business and affairs of the division and to take action
he considers advisable, necessary, or convenient in carrying out his
powers, including, but not limited to, the following rights and
powers:
(A) adopt bylaws, procedures, and regulations for officers and
employees and for the implementation and operation of the
programs authorized by this act;
(B) adopt and use a seal;
(C) sue and be sued;
(D) enter into such contracts, agreements, and instruments and
make such offers to contract with such persons, partnerships, firms,
corporations, agencies, or entities, whether public or private,
considered desirable in furtherance of the division's purposes. With
respect to any contract or agreement where the liability of the
division is limited to program funds, the division may require
public notice or bidding;
(E) notwithstanding any provision of law or regulation to the
contrary, and in accordance with its own procurement procedures
and regulations as approved by the Budget and Control Board,
which must, at a minimum, incorporate the provisions of Sections
11-35-5210 through 11-35-5270, inclusive, acquire, purchase, hold,
use, improve, manage, lease, mortgage, pledge, sell, transfer, and
dispose of any property, real, personal, or mixed, or any interest in
any property, or revenues of the division, including as security for
notes, bonds, evidences of indebtedness, or other obligations of the
division. Except for the provisions of Sections 11-35-5210 through
11-35-5270, inclusive, in exercising the powers authorized in this
article the division is exempt from Title 11, Chapter 35. The
division has no power to pledge the credit and the taxing power of
the State or any of its political subdivisions;
(F) accept appropriations, gifts, grants, loans, or other aid from
persons, partnerships, firms, corporations, agencies, or entities,
whether public or private;
(G) apply for and hold patents and collect royalties under such
terms and conditions as the division considers appropriate;
(H) incur debt, including, but not limited to, the issuance of
bonds, for any authorized purpose of the division under the terms
and conditions specified in this act;
(I) make commitments, guarantees, grants, or loans utilizing
any of its program funds to or on behalf of persons, partnerships,
firms, corporations, agencies, or entities, whether public or private,
in accordance with the provisions of this article and under terms as
are not inconsistent with any existing obligation, including any
obligation imposed as a condition of the receipt of any such
program funds;
(J) create and establish funds, including reserve funds, and
accounts as necessary in connection with the issuance of bonds or
for any of its authorized purposes;
(K) use program funds to purchase or provide for insurance as
additional security for any bonds issued by the division;
(L) initiate counseling and management programs for business
enterprises and provide business enterprises with technical
assistance, advice, and information respecting development
opportunities and programs and, in conjunction therewith, collect,
maintain, and disseminate data and information;
(M) employ and dismiss, at the will and pleasure of the division,
officers, agents, employees, consultants, and other providers of
services as the division considers necessary and appropriate and to
fix and to pay their compensation. Employees of the division or an
entity established pursuant to Section 13-1-2010 are not considered
state employees except for eligibility for participation in the South
Carolina Retirement System and the State Health Insurance Group
Plans and pursuant to Chapter 78 of Title 15. The provisions of
Article 5, Chapter 17 of Title 8, and Chapter 35 of Title 11 do not
apply to the division. The division is responsible for complying
with other state and federal laws covering employers. The division
may contract with the Division of Human Resource Management of
the State Budget and Control Board to establish a comprehensive
human resource management program;
(N) fix, alter, charge, and collect reasonable tolls, fees, rents,
charges, and assessments for the use of the facilities of, or for the
services rendered by, the division the rates to be at least sufficient
to provide for payment of all expenses of the division;
(O) participate in and cooperate with any agency or
instrumentality of the United States and with any agency or political
subdivision of this State in the administration of any of the
programs authorized by this act.
Section 13-1-1870. In addition to other powers vested in the
division by existing laws, the division has all powers granted the
counties and municipalities of this State pursuant to the provisions
of Chapter 29 of Title 4, including the issuance of bonds by the
division and the refunding of bonds issued under that chapter. The
division may issue bonds upon receipt of a certified resolution by
the county or municipality in which the project, as defined in
Chapter 29 of Title 4, is or will be located, containing the findings
set forth in Section 4-29-60 and evidence of a public hearing held
not less than fifteen days after publication of notice in a newspaper
of general circulation in the county in which the project is or will
be located. The division may combine for the purposes of a single
offering bonds to finance more than one project. The interest rate
of bonds issued pursuant to this section is not subject to approval
by the State Budget and Control Board.
Section 13-1-1880. (A) The division may issue bonds by
executive order of the director to provide funds for any program
authorized by this article . The bonds authorized by this article are
limited obligations of the division. The principal and interest are
payable solely out of the revenues derived by the division. The
bonds issued do not constitute an indebtedness of the State or the
division within the meaning of any state constitutional provision or
statutory limitation. They are an indebtedness payable solely from a
revenue producing source or from a special source which does not
include revenues from any tax or license. The bonds do not
constitute nor give rise to a pecuniary liability of the State or the
division or a charge against the general credit of the division or the
State or taxing powers of the State and this fact must be plainly
stated on the face of each bond. The bonds may be executed and
delivered at any time as a single issue or from time to time as
several issues, may be in such form and denominations, may be of
such tenor, may be in coupon or registered form, may be payable in
such installments and at such time, may be subject to terms of
redemption, may be payable at such place, may bear interest at such
rate payable at such place and evidenced in such manner, and may
contain such provisions not inconsistent herewith, all of which are
provided in the executive order of the director authorizing the
bonds. Subject to Budget and Control Board approval, any bonds
issued under this section may be sold at public or private sale as
may be determined to be most advantageous. The bonds may be
sold at public or private sale and, if by private sale, the division
shall designate the syndicate manager or managers. The division
may pay all expenses, premiums, insurance premiums, and
commissions which it considers necessary from proceeds of the
bonds or program funds in connection with the sale of bonds. The
interest rate of bonds issued pursuant to this section is not subject to
approval by the State Budget and Control Board.
(B) The executive order under which the bonds are authorized to
be issued or any security agreement, including an indenture or trust
indenture to be entered into in connection therewith, may contain
any agreements and provisions customarily contained in instruments
securing bonds, including, without limiting, provisions respecting
the fixing and collection of obligations, the creation and
maintenance of special funds, and the rights and remedies available,
in the event of default, to the bondholders or to the trustee under
such security agreement as the division considers advisable. In
making such agreements the division does not have the power to
obligate itself except with respect to program funds and cannot
incur a pecuniary liability or a charge upon the general credit of the
division or of the State or against the taxing powers of the State.
The executive order of the director authorizing any bonds and any
security agreement securing bonds may provide that, in the event of
default in payment of the principal of or the interest on such bonds
or in the performance of any agreement contained in such
proceedings or security agreement, the payment and performance
may be enforced by mandamus or by the appointment of a receiver
in equity with power to charge and collect any obligations and to
apply any revenues pledged in accordance with such proceedings or
the provisions of the security agreement. Any security agreement
may provide also that, in the event of default in payment or the
violation of any agreement contained in the security agreement, it
may be foreclosed by proceedings at law or in equity, and may
provide that any trustee under the security agreement or the holder
of any of the bonds secured thereby may become the purchaser at
any foreclosure sale, if he is the highest bidder. No breach of any
such agreement may impose any pecuniary liability upon the State
or the division or any charge upon the general credit of the division
or of the State or against the taxing power of the State.
Subject to the approval of the State Treasurer, the trustee under
any security agreement, or any depository specified by the security
agreement, may be such person or corporation as the division may
designate, notwithstanding that he may be a nonresident of South
Carolina or incorporated under the laws of the United States or any
of the states. Monies in the funds and accounts held by the trustee
shall be invested or deposited by the trustee.
(C) Any bonds that are outstanding may at any time be refunded
by the division by the issuance of its refunding bonds in an amount
as the division considers necessary but not to exceed an amount
sufficient to refund the principal of the bonds to be refunded,
together with any unpaid interest thereon and any premiums,
expenses, and commissions necessary to be paid. The refunding
may be effected whether the bonds to be refunded have matured or
shall thereafter mature, either by sale of the refunding bonds and
the application of the proceeds for the payment of the bonds to be
refunded, or by exchange of the refunding bonds for the bonds to
be refunded. The holders of any bonds to be refunded cannot be
compelled to surrender their bonds for payment or exchange prior
to the date on which they are payable or, if they are called for
redemption, prior to the date on which they are by their terms
subject to redemption. All refunding bonds issued under this section
are payable in the same manner and under the same terms and
conditions as are provided for the issuance of bonds.
(D) The proceeds from the sale of any bonds must be applied
only for the purpose for which the bonds were issued. Any
premium and accrued interest received in any such sale must be
applied to the payment of the principal of or the interest on the
bonds sold. If for any reason any portion of the proceeds is not
needed for the purpose for which the bonds were issued, the
unneeded portion of the proceeds must be applied to the payment of
the principal of or the interest on the bonds.
Section 13-1-1890. It is lawful for executors, administrators,
guardians, committees, and other fiduciaries to invest any monies in
their hands in bonds issued pursuant to this act. Nothing contained
in this section is construed as relieving any person from the duty of
exercising reasonable care in selecting securities.
Section 13-1-1900. The bonds and the income therefrom are
exempt from all taxation in the State except for inheritance, estate,
or transfer taxes. All security agreements and financing agreements
made pursuant to this act are exempt from stamp and transfer taxes.
Section 13-1-1910. The division may create an insurance fund
consisting solely of program funds which must be held as security
for the holders of bonds issued under this act. Such funds shall be
held in the custody of the State Treasurer, or with his approval may
be held in the custody of one or more commercial banks or trust
companies having a principal place of business in this State. The
division also may use program funds to purchase insurance to be
pledged for the security of the holders of any bonds issued under
this act.
In any case in which insurance is pledged as security, whether
obtained through the insurance funds authorized to be created under
this section or purchased with program funds, it must expressly
state the limitation of the liability of the division and further that
neither the credit nor taxing power of the State or any political
subdivision thereof is available to satisfy any obligations with
respect thereto.
Section 13-1-1920. (A) The programs established by this act are
administered so as to ensure that each application for assistance is
evaluated without regard to race, creed, sex, or national origin and
that no person, firm, association, partnership, corporation, agency,
or entity, or group thereof, receives disproportionate benefits from
the programs.
(B) To qualify for assistance under the programs established
pursuant to Sections 13-1-1930, 13-1-1940, and 13-1-1960 the
following conditions must be met:
(1) The recipient must be a person, firm, association,
partnership, corporation, or other entity engaged in business.
(2) The assistance must be requested for use by a business
enterprise located within the State.
(3) The recipient must be able to demonstrate to the division
that the assistance will result in creation or maintenance of
employment within the State.
(4) The recipient and the project must meet any further
requirements for eligibility as are set forth in this act with respect to
the specific program under which assistance is requested.
(5) The recipient and the project must satisfy any applicable
requirements set forth by the division in its regulations.
(C) The division may authorize assistance to an eligible recipient
under the programs established pursuant to Sections 13-1-1930,
13-1-1940, and 13-1-1960 only after it has made the following
findings:
(1) The recipient is a responsible party.
(2) The number of jobs resulting from the assistance bears a
reasonable relationship to the amount of program funds committed,
taking into account factors such as the amount of dollars invested
per employee at comparable facilities.
(3) The amount of program funds committed bears a
reasonable relationship to the amount of private funds committed.
(4) The size and scope of the business being assisted is such
that a definite benefit to the economy of the State may reasonably
be expected to result from the project being financed.
(5) The terms of the agreements to be entered into in
connection with the transaction are reasonable and proper, taking
into account such factors as the type of program involved, the
amount of program funds involved, and the number and type of
jobs involved.
(6) The public interest is adequately protected by the terms of
the agreements to be entered into in connection with the transaction.
In making its findings, the division is entitled to rely upon its
own investigation or upon such information and evidence furnished
to it by recipient businesses or by lending institutions participating
in programs established pursuant to the provisions of this act as the
division considers appropriate. Compliance by a recipient or any
lending institution participating in any of the division's programs
under the provisions of this act with the terms of any agreement
may be enforced by decree of a circuit court of this State. The
division may require as a condition of any loan to, or purchase of
loans from, any national banking association or federally chartered
savings and loan association or any nonresident seller, consent to
the jurisdiction of the circuit courts of this State over any
enforcement proceeding.
Section 13-1-1930. The division may utilize any of its program
funds to establish loan programs pursuant to this section for the
purpose of reducing the cost of capital to business enterprises which
meet the eligibility requirements of Section 13-1-1920. Proceeds of
loans under this section are utilized: (i) to acquire, by construction
or purchase, land and buildings or other improvements thereon,
machinery, equipment, office furnishings or other depreciable
assets, or for research and design costs, legal and accounting fees,
or other expenses in connection with the acquisition or construction
thereof; or (ii) for the research, testing, and developing of new
products, machinery, equipment, and industrial or commercial
processes, and the initial marketing thereof. Loan proceeds also
may be used to finance working capital. The division shall require
as a condition of each loan made pursuant to this section that the
loan must be serviced by a loan administrator which meets criteria
established by the division.
The division may make direct loans to any eligible business
enterprises upon terms which require the proceeds of the loan to be
used for qualified purposes and upon such other terms and
conditions as the division may require.
The division may make loans to lending institutions upon terms
and conditions which require each lending institution to disburse the
loan proceeds for new loans to eligible businesses for qualified
purposes in an aggregate principal amount of not less than the
amount of the loan. The division must require of each lender to
which it has made a loan evidence satisfactory to it of the making
of new loans which satisfy the requirements of this item and of the
regulations of the division. In this connection, the division, through
its agents, may inspect the books and records of such lender to
verify that the requirements are being met.
The division must require that each lender receiving a loan
pursuant to this section issue and deliver to the division evidence of
its indebtedness to the division which constitutes a general
obligation of the lender. The evidence of indebtedness must bear a
date, time of maturity, be subject to prepayment, and contain any
other provisions consistent with this section and related to
protecting the security of the division's investment and the bonds
issued by the division in connection with such loan.
The division may purchase, and make advance commitments to
purchase, from lending institutions loans to eligible business
enterprises. The purchase price for each loan which the division
purchases pursuant to this paragraph is not to exceed the total of the
unpaid principal balance of the loan purchased plus accrued interest.
The division must require each lender from which the division
purchases, or commits to purchase, a loan to submit evidence
satisfactory to the division that the loan satisfies the conditions of
this section and of the regulations of the division. In this
connection, the division, through its agents, may inspect the books
and records of a lender to verify that the conditions have been met.
The division must require the recording of an assignment of each
mortgage or secured loan purchased by it from a lender and need
not notify the borrower of its purchase of the mortgage or secured
loan. The division is not required to inspect or take possession of
the loan documents if the lender from which the loan document is
purchased enters into a contract to service the loan and account for
it to the division.
The division may: (i) renegotiate a loan in default, waive a
default, or consent to the modification of the terms of a loan; (ii)
forgive or forbear all or part of a loan; (iii) prosecute and enforce a
judgment in any action, including, but not limited to, a foreclosure
action; (iv) protect or enforce any right conferred upon it by law, or
by any loan, contract, or other agreement. In connection with any
action, the division may bid for and purchase collateral or take
possession of it, administer it, or pay the principal of and interest
on any obligation incurred in connection with the collateral and
dispose of and otherwise deal with the property securing the loan in
default.
Section 13-1-1940. The division is authorized to create a
guaranty fund, consisting solely of program funds, which may be
used to guarantee or insure or purchase insurance for loans of
financial institutions to business enterprises which meet the
eligibility requirements of Section 13-1-1920. Such funds shall be
held in the custody of the State Treasurer, or with his approval may
be held in the custody of one or more commercial banks or trust
companies having a principal place of business in this State.
Loans which qualify for a guaranty or insurance under this
section must consist of:
(1) loans to eligible business enterprises located in distressed
areas as defined in Section 13-1-1950 for any purpose for which a
loan may be made pursuant to Section 13-1-1930, including the
provision of working capital;
(2) loans used to finance export sales or production for export
by eligible business enterprises as provided in Section 13-1-1960.
Section 13-1-1950. The division must maintain a list of the most
economically distressed areas of the State. Each area must be within
or coexistent with the boundaries of one of the forty-six counties.
The list must be determined in accordance with criteria set forth in
the regulations of the division. In formulating criteria, the division
must consider, but not be limited to, the following factors: rate of
unemployment, per capita income, average wage rate, and chronic
nature of economic problems.
Section 13-1-1960. (A) Upon securing sufficient funds, the
division is directed to develop programs to encourage the export of
goods, services, commodities, machinery, equipment, or other
personal property to which value is added within the State. So as to
assist the exporters in competing for international sales, the division
may use any of its program funds to provide low interest loans,
including fixed rate loans, guarantees, insurance, including
insurance against political and commercial risks, or other
commitments for the benefit of eligible exporters. In furtherance of
this direction, the division may:
(1) issue direct loans to eligible exporters and loans to
lending institutions in accordance with the provisions of Sections
13-1-1930 and 13-1-1940;
(2) provide guarantees or insurance of up to ninety percent
for:
(a) line of credit extended by lending institutions to
eligible exporters with specific unfilled orders from foreign buyers;
(b) political and commercial risk on loans extended by
lending institutions to foreign buyers for the purchase of property or
services supplied by eligible exporters from this State;
(c) loans extended by lending institutions to eligible
exporters with specific unfilled orders from foreign buyers.
(3) obtain guarantees and direct loans as the Export-Import
Bank of the United States may make available for the purpose of
facilitating programs authorized under this section;
(4) allocate funds to administer the programs authorized
under this section;
(5) develop and implement other programs as it determines
are necessary to improve the export potential for business
enterprises located in the State.
In developing and implementing the programs described in this
section, the division may consider the advice and counsel of the
Governor's Export Advisory Committee, created by executive order
as an adjunct to the State Development Board, or any successor
thereto, and allocate available resources in a manner as will ensure
that priority consideration is given to the needs of small and
medium size businesses.
(B) In addition to the findings and considerations required under
Section 13-1-1920, the following conditions must be met before an
export transaction qualifies for assistance under this section:
(1) The goods, services, commodities, machinery, equipment,
or other personal property must have value added to it in South
Carolina.
(2) The exporter must be able to demonstrate to the
satisfaction of the division that the transaction complies with the
applicable laws of this State, the United States, and the country of
destination.
(3) The exporter and the foreign purchaser must not be
related persons as determined pursuant to the provisions of Sections
267(b) and (c) and 707(b) of the Internal Revenue Code, as
amended, nor members of the same controlled group of
corporations, as defined in Section 1563(a) of the Internal Revenue
Code, as amended, (except that `more than 50 percent' may be
substituted for `at least 80 percent' each place it appears therein),
nor may either the exporter or the foreign purchaser otherwise
indirectly or constructively own or control the other.
(4) The foreign purchaser and the country in which it is
located must otherwise be acceptable to the division, taking into
account factors such as the history of the trade relationship between
the firms in this State and the purchaser or country of destination.
Section 13-1-1970. The division is authorized to implement such
programs as may be consistent with its purposes for the collection
and dissemination of information and data useful to business
enterprises in this State. The division may collect and maintain
information and undertake such studies and research programs as it
deems necessary to facilitate the economic development and
creation of jobs in this State. In connection with these programs, the
division must consult and coordinate its programs with those
existing federal and state agencies and private economic
development organizations.
Section 13-1-1980. All funds of the division must be segregated
or otherwise accounted for as administrative or program funds and
deposited by the division in a financial institution or institutions to
be designated by the State Treasurer in accordance with policies
established by the director. Funds of the division must be paid out
only upon warrants issued in accordance with policies established
by the director. No warrants may be drawn or issued disbursing
any of the funds of the division except for a purpose authorized by
this article .
Section 13-1-1990. The division must not incur any obligations,
other than obligations related to administrative expenses, payable
out of administrative funds. All other obligations are payable solely
from program funds which limitation is clearly stated on the face of
any bonds and in the text of any other obligation or contract.
However, program funds may be used to pay administrative
expenses.
Section 13-1-2000. The division may dispose of any property
acquired by it on terms and conditions considered appropriate. The
division is not required to advertise property or take bids thereon.
Section 13-1-2010. The division is authorized to establish profit
or not-for-profit corporations as it considers necessary to carry out
the purposes of this article . Officials or employees of the division
may act as officials or employees without additional compensation
of a corporation created pursuant to this section. A corporation
established pursuant to this section is considered a `public
procurement unit' for purposes of Article 19, Chapter 35 of Title
11.
The division may make grants or loans to, or make guarantees
for, the benefit of any not-for-profit corporation which the division
has caused to be formed whose Articles of Incorporation require
that its directors be elected by members of the division and all
assets of which, upon dissolution, must be distributed to the
division if it is in existence or, if it is not in existence, then to the
State of South Carolina.
These grants, loans, or guarantees may be made upon a
determination by the division that the receiving not-for-profit
corporation is able to carry out the purposes of this act and on the
terms and conditions imposed by the division.
Any guarantee made by the division shall not create an obligation
of the State or its political subdivisions or be a grant or loan of the
credit of the State or any political subdivision. Any guarantee
issued by the division must be a special obligation of it. Neither
the State nor any political subdivision is liable on any guarantee nor
may they be payable out of any funds other than those of the
division and any guarantee issued by the division shall contain on
its face a statement to that effect.
Section 13-1-2020. Any information submitted to or compiled by
the division in connection with the identity, background, finances,
marketing plans, trade secrets, or any other commercially sensitive
information of persons, firms, associations, partnerships, agencies,
corporations, or other entities, is confidential, except to the extent
that the person or entity consents to disclosure.
Section 13-1-2030. The division must be audited annually by the
State Auditor or, upon his approval, may execute contracts with an
independent certified public accounting firm. The division must
make an annual report to the State Budget and Control Board and
the General Assembly on its programs and operations. The report
must include information regarding the size of the businesses that
have received assistance based on the number of employees
employed and the amount of gross revenues generated during the
preceding year. The report also must include the names of
businesses that have received assistance and a good faith estimate of
the number of jobs retained or created as a result of the division's
assistance.
Section 13-1-2040. The division must implement its programs in
accordance with regulations promulgated under the provisions of
Act 176 of 1977.
Section 13-1-2050. Neither this article nor anything contained in
this article is construed as a restriction or limitation upon any
powers which the division might otherwise have under any laws of
this State, but is construed as cumulative.
Notwithstanding any provision of law or regulation to the
contrary, the division shall continue to be an `agency' for purposes
of Chapter 78 of Title 15, but the division is not considered an
`agency' or `state agency' or any other form of state institution for
purposes of Sections 2-7-65 and 2-57-60.
Section 13-1-2060. If a term or provision of a section of this
article is found to be illegal or unenforceable, the remainder of this
article nonetheless remains in full force and effect and the illegal or
unenforceable term or provision is deleted and severed from this
article."
SECTION 5. Chapter 43, Title 41 of the 1976 Code is repealed.
SECTION 6. This act takes effect upon approval by the
Governor.
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