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TO AMEND AND REENACT CERTAIN PROVISIONS OF SECTION 11-41-30, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS IN REGARD TO THE STATE GENERAL OBLIGATION ECONOMIC DEVELOPMENT BOND ACT, SO AS TO REVISE SPECIFIC DEFINITIONS; TO AMEND SECTION 11-41-40, RELATING TO THE ISSUANCE OF THESE ECONOMIC DEVELOPMENT BONDS, SO AS TO FURTHER PROVIDE FOR THE MANNER OF SUCH ISSUANCE; TO AMEND AND REENACT SECTION 11-41-70, RELATING TO BOND NOTIFICATION AND OTHER REQUIREMENTS FOR THE ISSUANCE OF THESE BONDS, SO AS TO MAKE CONFORMING CHANGES TO THE DEFINITION REVISIONS CONTAINED ABOVE AND TO FURTHER PROVIDE THE TERMS AND CONDITIONS FOR THE ISSUANCE OF THESE BONDS; AND TO PROVIDE FINDINGS OF THE GENERAL ASSEMBLY THAT THE FUNDING OF THESE PROJECTS WITH THESE BONDS SERVES A VALID PUBLIC PURPOSE AND BENEFITS THIS STATE WITH SUBSEQUENT ECONOMIC AND EMPLOYMENT BENEFITS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The South Carolina Supreme Court in Sloan v. Wilkins et al, 608 S.E. 2d 519, held that specific provisions of Act 187 of 2004 were violative of Article III, Section 17, of the state Constitution and therefore unconstitutional because of a multiplicity of subjects in the same enactment. The General Assembly has determined to reenact certain of these provisions with amendment in particular cases in a separate act which in its view are important initiatives which have the commonality of being funded from the same funding source relating to the issuance of general obligation bonds for stated public purposes authorized pursuant to Article X, Section 13(6)(c) of the Constitution of this State. The General Assembly hereby finds and declares that the provisions contained in this act reasonably relate to the subject of the issuance of general obligation bonds for specific public purposes and the terms and conditions of such issuance, and further finds and declares that the funding of these projects with these bonds serves a valid public purpose and benefits this State with subsequent economic and employment benefits.
SECTION 2. (A) Section 11-41-30(2)(d) of the 1976 Code, as added by Act 187 of 2004, is amended and reenacted to read:
"(d) 'Economic development project' or 'project' also includes training and research facilities and the necessary equipment therefor, owned by the State or any agency, instrumentality, or political subdivision thereof, for a program established pursuant to Section 59-53-425, for purposes of providing the necessary trained personnel to support the state's economically vital tourism industry. A project as defined in this subsection is also referred to herein as a 'tourism training infrastructure project'. A tourism training infrastructure project is not subject to the job creation and capital investment requirements imposed on projects as defined in subsections (a) and (b) above."
(B) Section 11-41-30(2)(e) of the 1976 Code, as added by Act 187 of 2004, is reenacted to read:
"(e) 'Economic development project' or 'project' also includes a national and international convention and trade show center in this State, owned by the State or any agency, instrumentality, or political subdivision thereof. A 'national and international convention and trade show center' means a not less than two hundred thousand square foot facility consisting of meeting and exhibit space at which are held major conventions, trade shows, and special events that bring delegates into the State and community including, but not limited to, consumer shows, sporting events, and other meetings. A national and international convention and trade show center is not subject to the job creation and capital investment requirements imposed on projects as defined in subsections (a) and (b) above."
(C) Section 11-41-30(3)(j) of the 1976 Code, as added by Act 227 of 2004, is amended and reenacted to read:
"(j) buildings and renovations to buildings whether new or existing (i) associated with an economic development project as defined in Section 11-41-30(2)(a) that includes air carrier hub terminal facilities as defined in Section 55-11-500(a)(2) of the 1976 Code, or (ii) located on land that is owned by the State or an agency, instrumentality, or political subdivision thereof."
SECTION 3. Section 11-41-40 of the 1976 Code, as added by Act 254 of 2002, is amended to read:
"Section 11-41-40. To obtain funds for allocation to the department or to the state or agency, instrumentality, or political subdivision, as the case may be, for financing of infrastructure, there are issued from time to time state general obligation economic development bonds under the conditions prescribed by this chapter."
SECTION 4. Section 11-41-70 of the 1976 Code, as amended by Act 187 of 2004, is amended and reenacted to read:
"Section 11-41-70. Before issuing economic development bonds, the department or in the case of a tourism training infrastructure project or a national and international convention and trade show center, the state or agency, instrumentality, or political subdivision thereof that will own such project shall notify the Joint Bond Review Committee and the State Budget and Control Board of the following:
(1) the amount then required for allocation to the department or to the such state or agency, instrumentality, or political subdivision thereof to defray the costs of the proposed infrastructure;
(2) a description of the infrastructure for which the bonds are to be issued, including a certification by the secretary of the department or in the case of a tourism training infrastructure project or a national and international convention and trade show center by an appropriate official of the state or agency, instrumentality, or political subdivision thereof that will own such project that the economic development project to benefit from the expenditure of the proceeds of the bonds consists of the following:
(a) in the case of an economic development project as defined in Section 11-41-30(2)(a), an investment by the sponsor at the project of not less than four hundred million dollars and creation by the sponsor at the project of no fewer than four hundred new jobs; or
(b) in the case of a life sciences facility, an investment by the sponsor in the project of not less than one hundred million dollars and creation by the sponsor at the project of no fewer than two hundred new jobs with an average cash compensation of at least twice the per capita income in this State. Per capita income must be determined by using the most recent per capita income data available at the time the request for funding is made pursuant to this chapter; or
(c) in the case of a tourism training infrastructure project, training and research facilities including the necessary equipment therefor, owned by the State or any agency, instrumentality, or political subdivision thereof, for a program established pursuant to Section 59-53-425, for which project there has been executed an agreement between the State and the state agency, instrumentality, or political subdivision owning such facilities providing that, upon the termination of the program established pursuant to Section 59-53-425, the proceeds of the sale of any facilities financed with the proceeds of bonds issued pursuant to this chapter will be reimbursed by such state agency, instrumentality, or political subdivision to the general fund of the State; or
(d) in the case of a national and international convention and trade show center, partial payment of land acquisition costs for infrastructure associated with a meeting and exhibit space as defined in Section 11-41-30(2)(e), owned by the State or any agency, instrumentality, or political subdivision thereof for which project there has been executed an agreement between the State and the state agency, instrumentality, or political subdivision owning such land meeting and exhibit space providing that, upon either the sale of the land acquired with meeting and exhibit space partially financed with proceeds of bonds issued pursuant to this chapter or the failure of the state agency, instrumentality, or political subdivision to (1) purchase land within eighteen months of the effective date of this item (d), (2) begin construction within five years of the effective date of this item (d) of a meeting and exhibit space as defined in Section 11-41-30(2)(e), or (3) complete the project within ten years of the effective date of this item (d). The state agency, instrumentality, or political subdivision owning such land meeting and exhibit space will reimburse the amount of bond proceeds to the general fund of the State, plus interest thereon from the date of expenditure to the date of such reimbursement at a rate equal to the total interest cost rate on the issuance of bonds used to make such expenditure. The state agency, instrumentality, or political subdivision must notify the State Treasurer immediately upon the sale of any land acquired with proceeds of bonds issued pursuant to this chapter. The state agency, instrumentality, or political subdivision must also provide sufficient proof to the State Treasurer that the deadlines to purchase land, begin construction, and complete the project imposed pursuant to this item have been met. If the state agency, instrumentality, or political subdivision sells the land or fails to meet any of these deadlines, then the State Treasurer shall take the appropriate action necessary to recover all bond proceeds and interest disbursed to the state agency, instrumentality, or political subdivision to finance the project;
(3) a tentative time schedule setting forth the period of time during which the sum requested is to be expended;
(4) a debt service table showing the annual principal and interest requirements for all bonds then outstanding; and
(5) the total amount of all bonds issued."
SECTION 5. This act takes effect upon approval by the Governor.
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