§ 55-11-520 — Issuance of general obligation bonds; conditions to issuance.

South Carolina § 55-11-520

• Jurisdiction: South Carolina
• Title 55: AERONAUTICS
• Ch. 11: PARTICULAR AIRPORTS

Text

(A) Pursuant to the provisions of subsection 6(c), Section 13, Article X of the Constitution of this State, in order to provide funds to pay a portion of the costs of (1) acquiring land, (2) constructing, enlarging, improving, extending, renovating, and equipping suitable air carrier hub terminal facilities to be located in this State, (3) purchasing equipment, ground support equipment, machinery, special tools, maintenance, boarding facilities, and any and all additional necessary real or personal property for the operation of air carrier hub terminal facilities, and (4) if petitioned by a special purpose district or other political subdivision of the State, to pay a portion or all of the costs described in Section 55-11-510, not exceeding fifty million dollars of general obligation bonds of this State, to be outstanding at any time may be issued in the manner provided in this article and by law. (B) A request that bonds be issued pursuant to this article must be accompanied by a binding contract with either an air carrier or the principal user of the air carrier hub terminal facilities to be financed with the issuance of the obligations described in this article, committing the entity to use the air carrier hub terminal facility for a period of five years or the period of time needed to retire any indebtedness incurred to construct the air carrier hub terminal facility, whichever is less. Upon receipt of a certified copy of the executed contract, the executive director shall consider the entity's financial ability, willingness, and commitment to serve this State and other factors considered relevant by the executive director. If the executive director determines that it is in the best interest of this State for the State to provide or to assist in the providing of suitable air carrier hub terminal facilities, the executive director shall recommend that the State Fiscal Accountability Authority consider approving the issuance of bonds of this State for the purposes authorized in this article and shall forward his written approval and request to the Joint Bond Review Committee and the State Fiscal Accountability Authority. The approval and request must be accompanied by a certificate of the executive director establishing: (1) the maximum principal amount of the bonds then requested to be authorized; (2) a description of the infrastructure for which the bonds are to be issued, including a certification from the executive director that the facility is an air carrier hub terminal facility as defined in Section 55-11-500(a); (3) a tentative time schedule for the time during which the sum requested is to be expended; and (4) the then-outstanding principal amount of, and the debt service requirements for, all bonds previously issued pursuant to this section. (C) Following the receipt of the approval and request described in subsection (B), and after approval by the Joint Bond Review Committee, the State Fiscal Accountability Authority may approve the issuance of bonds pursuant to this article. In connection with the approval, the State Fiscal Accountability Authority shall adopt a resolution setting the terms and conditions for the execution, sale, delivery, interest payments, maturities, and redemption of the bonds. For the payment of the principal and interest on all bonds issued and outstanding pursuant to this article, there is pledged the full faith, credit, and taxing power of the State of South Carolina, and in accordance with the provisions of subsection (4), Section 13, Article X, of the South Carolina Constitution, the General Assembly hereby allocates on an annual basis sufficient tax revenues to provide for the punctual payment of the principal and interest on the bonds authorized by this article.

Legislative History

HISTORY: 1989 Act No. 183, SECTION 2; 1993 Act No. 181, SECTION 1295, eff July 1, 1993; 1994 Act No. 361, SECTION 8, eff May 3, 1994; 2004 Act No. 227, SECTION 3.C, eff May 11, 2004; 2005 Act No. 33, SECTION 1, eff April 5, 2005; 2012 Act No. 270, SECTION 5, eff June 18, 2012. Effect of Amendment The 1993 amendment substituted "Director of the Department of Commerce" for "State Development Board". The 1994 amendment in the second paragraph, substituted "Secretary of Commerce" for "Director of the Department of Commerce". The 2004 amendment rewrote this section. The 2005 amendment designated the existing paragraphs as subsections (A), (B) and (C) and substantially rewrote subsections (B) and (C). The 2012 amendment substituted "executive director" for "secretary" throughout subsection (B); and, made other, nonsubstantive, changes throughout the section. ARTICLE 9 Florence, Marion, and Dillon Counties