CHAPTER 385
FORMERLY
HOUSE BILL NO. 591
AS AMENDED BY SENATE AMENDMENT NO. 1
AN ACT TO AMEND CHAPTER 54, TITLE 30, OF THE DELAWARE CODE RELATING TO REALTY TRANSFER TAX REVENUE BONDS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Three—quarters of all the members elected to each House thereof concurring therein):
Section 1. Amend §5421(2), Chapter 54, Title 30, Delaware Code to delete "June 30, 1991" where it appears therein and to substitute in its place "June 30, 1990."
Section 2. Amend §5423, Chapter 54, Title 30, Delaware Code to delete paragraph (2) of subsection (e) and to substitute in its place the following:
"(2) All realty transfer tax revenues deposited in the Revenue Account in each fiscal year shall be applied in the following amounts and in the following order of priority:
Set aside an amount sufficient to pay debt service on revenue bonds issued pursuant to this subchapter as may be required by the terms of such bonds;
Set aside the amount that may be required to satisfy any debt service reserve fund requirement with respect to any such bonds (up to 1 year's maximum annual debt service);
The excess, if any, until the amounts set aside under subparagraphs a, b and c hereof equal the Base Amount, shall be paid to the General Fund of the State;
Deposit into the Earnings Account from the remainder, if any, such amount as is necessary, when added to the interest earnings from the Endowment Account deposited in the Earnings Account during such fiscal year, to bring the total of such deposits into the Earnings Account for such fiscal year to $1,000,000;
Deposit the remainder, if any, into the Endowment Account provided that, in any fiscal year when the earnings on the Endowment Account equal at least $1,000,000 said remainder shall be deposited 50% into the Endowment Account, 25% into the Project Account and the balance shall be transferred to the General Fund; and
All earnings on realty transfer tax revenues on deposit in the Revenue Account, prior to the time of being set aside to pay debt service or to satisfy debt service reserve requirements or prior to being deposited into the Earnings Account, the Endowment Account or the Project Account, as provided herein, shall be paid to the General Fund."
Section 3. Amend paragraph (3) of §5423(e), Chapter 54, Title 30,
Delaware Code to delete the phrase "paragraph (2)a.l." where it appears in two places and substitute in both places the phrase "paragraph (2)a." and to delete the phrase "paragraph (2)a.2. or 3" where it appears therein and substitute in its place the phrase "paragraph (2)b.".
Section 4. Amend §5424(a), Chapter 54, Title 30, Delaware Code to delete the last sentence thereof and to substitute in its place the following: "Such revenue bonds shall be subject to the debt limitations of Section 7422 (c) of Title 29."
Section 5. Amend §5424, Chapter 54, Title 30, Delaware Code to delete subsection (j) and to substitute in its place the following:
"(j) It is the intent of the General Assembly that $50 million of
revenue bonds shall be issued for the purposes of this subchapter
provided that (1) the total aggregate principal amount of bonds which
may be issued pursuant to this Subchapter may not exceed $50 million, (2) no more than $30 million total aggregate principal amount of bonds may be issued before June 30, 1993, (3) after June 30, 1993, no bonds may be issued if the total aggregate principal amount of such bonds when combined with the total aggregate principal amount of other bonds issued during the same or the prior fiscal year combined would exceed $15 million provided that if the total amount of the bonds authorized but not yet issued hereunder does not exceed $25 million, the total amount of such unissued bonds may be issued without regard to such $15 million limitation, and (4) no bonds may be issued if the maximum annual debt service payable in any fiscal year on all bonds outstanding (net of investment earnings on reserves, as estimated by the Secretary of Finance, which are to be applied to pay such debt service) would exceed 20% of the Base Amount."
Section 6. Amend §5424(k)(3), Chapter 54, Title 30, Delaware Code to delete "$50,000,000 or the" and substitute in its place "debt issuance"
Section 7. Amend §5424(1), Chapter 54, Title 30, Delaware Code to
delete the last sentence thereof.
Section 8. This Act shall be effective upon its enactment in
accordance with law.
Section 9. Subsequent to the enactment of this Act, One Million
Dollars ($1,000,000) of proceeds from the next sale of Realty Transfer Tax Revenue Bonds as authorized in Section 54240) of Chapter 54 of Title 30 of the Delaware Code shall be used as the State match for the purposes set forth in Section 5423(d)(1) of Chapter 54 of TItle 30 of the Delaware Code (Earnings Account). When combined with the interest earnings retained therein, the aggregate amount spent from the Earnings Account shall not exceed One Million Dollars ($1,000,000) in any single year.
Approved July 15, 1992.