The bill S. 891 aims to amend several sections of the South Carolina Code of Laws concerning financing agreements and the responsibilities of local governing bodies and school districts regarding general obligation debt. Specifically, it expands the definition of "financing agreement" in Section 11-27-110 to include various types of contracts that governmental entities may enter into for acquiring assets, while excluding refinancing agreements and contracts related to general obligation bonds. Additionally, the bill introduces provisions in Sections 11-27-40 and 11-27-50 that hold members of local governing bodies and school district boards accountable for misconduct if they knowingly vote for actions that violate constitutional debt limits.

Furthermore, the bill outlines the conditions under which political subdivisions and school districts can incur general obligation debt, including the requirement for a majority vote from qualified electors in certain instances. It also allows for the issuance of tax anticipation notes and bond anticipation notes under specified conditions. The amendments aim to ensure compliance with the new Article X of the South Carolina Constitution while providing clarity on the processes for issuing bonds and managing debt within local governments and school districts. The act will take effect upon approval by the Governor.

Statutes affected:
02/04/2026: 11-27-110, 11-27-40, 11-27-50
Latest Version: 11-27-110, 11-27-40, 11-27-50