South Carolina General Assembly
115th Session, 2003-2004

Download This Bill in Microsoft Word format

Indicates Matter Stricken
Indicates New Matter

S. 785

STATUS INFORMATION

General Bill
Sponsors: Senator Leatherman
Document Path: l:\council\bills\ggs\22307htc04.doc

Introduced in the Senate on January 13, 2004
Currently residing in the Senate

Summary: B&C Board, educational facilities bonds

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
  12/16/2003  Senate  Prefiled
  12/16/2003  Senate  Referred to Committee on Finance
   1/13/2004  Senate  Introduced and read first time SJ-21
   1/13/2004  Senate  Referred to Committee on Finance SJ-21
    2/4/2004  Senate  Committee report: Favorable Finance SJ-38
    2/5/2004          Scrivener's error corrected
   2/11/2004  Senate  Read second time SJ-48
   2/11/2004  Senate  Ordered to third reading with notice of amendments SJ-48

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

12/16/2003
2/4/2004
2/5/2004

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

COMMITTEE REPORT

February 4, 2004

S. 785

Introduced by Senator Leatherman

S. Printed 2/4/04--S.    [SEC 2/5/04 1:58 PM]

Read the first time January 13, 2004.

            

THE COMMITTEE ON FINANCE

To whom was referred a Bill (S. 785) to amend the Code of Laws of South Carolina, 1976, by adding Article 4 to Chapter 11, Title 1 so as to provide for the State Budget and Control Board, etc., respectfully

REPORT:

That they have duly and carefully considered the same and recommend that the same do pass:

HUGH K. LEATHERMAN, SR. for Committee.

            

STATEMENT OF ESTIMATED FISCAL IMPACT

ESTIMATED FISCAL IMPACT ON GENERAL FUND EXPENDITURES:

$0 (No additional expenditures or savings are expected)

ESTIMATED FISCAL IMPACT ON FEDERAL & OTHER FUND EXPENDITURES:

$0 (No additional expenditures or savings are expected)

EXPLANATION OF IMPACT:

A review of this bill by the State Treasurer's Office indicates there will not be any impact on the General Fund of the State nor on federal and/or other funds.

LOCAL GOVERNMENT IMPACT:

Contingent upon a school district electing to participate in a public private partnership, it could realize some cost savings, which at this time is indeterminable.

Approved By:

Don Addy

Office of State Budget

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 4 TO CHAPTER 11, TITLE 1 SO AS TO PROVIDE FOR THE STATE BUDGET AND CONTROL BOARD CEILING ON THE ISSUANCE OF QUALIFIED PUBLIC EDUCATIONAL FACILITIES BONDS IN COMPLIANCE WITH THE PROVISIONS OF THE INTERNAL REVENUE CODE OF 1986.

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

SECTION    1.    Chapter 11, Title 1 of the 1976 Code is amended by adding:

"Article 4

Allocation of State Ceiling on Issuance of Qualified Public Educational Facilities Bonds

Section 1-11-610.    The state ceiling on the issuance of qualified public educational facilities bonds as defined in Section 142 of the Internal Revenue Code of 1986 (the code) must be certified annually by the State Budget and Control Board Secretary based upon the provisions of that section. The board secretary shall make this certification as soon as practicable after the estimates of the population of this State to be used in the calculation are published by the United States Bureau of the Census but not later than February first of each calendar year.

Section 1-11-620.    (A)    The qualified public educational facilities bond limit must be allocated by the board in response to authorized requests as described in Section 1-11-630.

(B)    The aggregate qualified public educational facilities bond limit amount is allocated initially to the State for further allocation within the limits prescribed in this article.

(C)    Except as is provided in Section 1-11-640, all allocations must be made pursuant to procedures prescribed by the board which may be amended or modified.

Section 1-11-630    (A)    An authorized request is a request included in a petition to the board that a specific amount of the state ceiling be allocated to the bonds for which the petition is filed. The petition must be accompanied by resolutions adopted by the school district and the issuing authority relating to the bonds along with a copy of the proposed form of public-private partnership agreement described in Section 142(k)(2) of the code.

(B)    Each authorized request must demonstrate that the allocation amount requested constitutes all of the qualified public educational facilities bond financing contemplated at the time for the project and any other facilities located at or used as a part of an integrated operation with the project.

Section 1-11-640.    The board may disapprove, reduce, or defer any authorized request. If it becomes necessary to exercise this authority, the board shall take into account the public interest and the needs of the school district.

Section 1-11-650.    (A)    An allocation of the state ceiling approved by the board is made formal initially by a certificate that allocates tentatively a specific amount of the state ceiling to the bonds for which the allocation is requested. In making the tentative allocation, the board may designate that all or a portion of the allocation is from unused state ceiling carried forward from a previous year. This tentative allocation certificate must specify the state ceiling amount allocated, and whether the amount is from the current year or from amounts carried forward from a prior year, the issuing authority and the project involved, and the time period during which the tentative allocation is valid. This certificate must remind the issuing authority that the tentative allocation is made final after the issuing authority chairman or other duly authorized official or agent of the issuing authority, before the issue is made, certifies the issue amount and the projected date of issue, as is required pursuant to subsection (B) of this section. It also may include other information considered relevant by the board secretary.

(B)    The chairman or other authorized official or agent of the issuing authority issuing any qualified public educational facilities bonds for which a portion of the state ceiling has been allocated tentatively shall execute and deliver to the board secretary an issue amount certificate setting forth the exact amount of bonds to be issued and the projected bond issue date, which date must not be more than ten business days after the date of the issue amount certificate and it must be before the state ceiling allocation involved expires. The issue amount certificate may be an executed copy of the appropriate completed Internal Revenue Service form to be submitted to the Internal Revenue Service on the issue or it may be in the form of a letter that certifies the exact amount of bonds to be issued and the projected date of the issue.

(C)    In response to the issuing authority's issue amount certificate required pursuant to subsection (B) of this section, the board secretary may issue and, as necessary, revise a certificate making final the ceiling allocation approved previously by the board on a tentative basis, if the secretary determines that the:

(1)    issuing authority's issue amount certificate specifies an amount not in excess of the approved tentative ceiling allocation amount;

(2)    issue amount certificate was received before the issue date projected and that the certificate is dated not more than ten days before the issue date projected;

(3)    issue date projected is within the time period approved previously for the tentative ceiling allocation; and

(4)    bonds when issued and combined with the total amount of bonds requiring a ceiling allocation included in issue amount certificates submitted previously to the board by issuing authorities do not exceed the state ceiling for the calendar year.

Except under extraordinary circumstances, the board secretary shall issue this certificate within two business days following the date the issue amount certificate is received.

(D)    The Secretary of the State Budget and Control Board is designated as the state official responsible for certifying, if applicable, that certain bonds meet the requirements of Section 142 of the code relating to the volume cap on qualified public educational facilities bonds.

(E)    Any tentative or final state ceiling allocation granted by the board before the effective date of this article remains valid as an allocation of a portion of the volume cap for South Carolina provided under Section 142 of the Code. The allocations expire in accordance with the regulations under which they were granted or extended and their validity may be extended or reinstated in accordance with the provisions of this article.

Section 1-11-660.    (A)    Any state ceiling allocation approved by the board is valid only for the calendar year in which it is approved, unless eligible and approved for carry-forward election or unless specified differently in the board certificates required by Section 1-11-650.

(B)    Unless eligible and approved for carry-forward election or unless specified differently in board certificates required pursuant to Section 1-11-650, each state ceiling allocation expires automatically if the bonds for which the allocation is made are not issued within ninety consecutive calendar days from the date the allocation is approved by the board.

(C)    In response to a written request by the chairman or other duly authorized official or agent of the issuing authority, the board, acting during the period an approved allocation is valid, may extend the period in which an allocation is valid in a single calendar year by thirty-one consecutive calendar days to a total of not more than one hundred twenty-one consecutive calendar days.

(D)    In response to a written request by the chairman or other authorized official or agent of the issuing authority, the board may reinstate for a period of not more than thirty-one consecutive calendar days in any one calendar year part or all of an allocation approved but not extended previously in accordance with subsection (C) of this section in that same calendar year which has expired. The reinstatement request must certify that the authorized request submitted previously is still true and correct or a new authorized request must be submitted.

(E)    A tentative ceiling allocation is canceled automatically if the chairman or other authorized official or agent of the issuing authority involved fails to deliver the issue amount certificate required pursuant to Section 1-11-650 to the board secretary before the bonds for which the allocation is made are issued.

(F)    The chairman or other authorized official or agent of the issuing authority shall advise the board secretary in writing as soon as is practicable after a decision is made not to issue bonds for which a portion of the state ceiling has been allocated. All notices of relinquishment of ceiling allocations must be entered promptly in the board's records by the board secretary.

(G)    Ceiling allocations that are eligible and approved for carry-forward election are not subject to the validity limits of this section. The board shall join with the issuing authority involved in carry-forward election statements to meet the requirements of the Internal Revenue Service.

Section 1-11-670.    The State Budget and Control Board may adopt the policies and procedures for the equitable and effective administration of this article."

SECTION    2.    This act takes effect upon approval by the Governor.

----XX----

This web page was last updated on Monday, December 7, 2009 at 10:19 A.M.