Delaware General Assembly


CHAPTER 14

FORMERLY

SENATE BILL NO. 47

AN ACT AMENDING CHAPTER 54, TITLE 30, DELAWARE CODE RELATING TO REALTY TRANSFER TAX REVENUE BONDS IN SUPPORT OF THE CONSERVATION TRUST FUND; AUTHORIZING THE ISSUANCE OF REALTY TRANSFER TAX REVENUE BONDS; AND PROVIDING FOR THE USE OF CERTAIN BOND PROCEEDS FOR GREENWAYS

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (three quarters of all members elected to each House thereof concurring therein):

Section 1. Amend §5423(e)(2), Chapter 54, Title 30, Delaware Code to add the following new subparagraph c. :

"c. 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 2. Amend §5423(e)(4), Chapter 54, Title 30, Delaware Code to

delete said paragraph and to substitute in its place the following:

"(4) After the amount in the Endowment Account equals $50 million or on July 1, 2005, whichever occurs sooner, no further deposits shall be made into the Endowment Account, the Project Account or the Earnings Account under this subsection (e)."

Section 3. Amend §5424(a), Chapter 54, Title 30, Delaware Code to delete the first sentence thereof and to substitute in its place the following:

"(a) The issuing officers may issue revenue bonds of the State to

provide funds to achieve the purposes of this Subchapter, including funds necessary to provide for reserves, interest on bonds for up to one year, credit enhancement and transaction costs."

Section 4. Amend §5424(j), Chapter 54, Title 30, Delaware Code to delete said subsection 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 the total aggregate principal amount of bonds which may be issued pursuant to this Subchapter may not exceed $50 million and the total aggregate principal amount of such bonds which may be issued in any two consecutive fiscal years of the State may not exceed $15 million. In addition, the total amount of debt service payments in any fiscal year with respect to all bonds issued pursuant to this Subchapter and outstanding at any one time (net of estimated investment earnings on reserves which are to be applied to pay such debt service) may not exceed 207 of the Base Amount."

Section 5. Amend §5424(c), Chapter 54, Title 30, Delaware Code to delete the phrase "zero fund requirements" as it appears in said subsection, and to substitute in its place the phrase: "zero coupon or capital appreciation bonds, sinking fund or reserve fund requirements".

Section 6. Amend §5425, Chapter 54, Title 30, Delaware Code to delete the first sentence thereof and to substitute in its place the following:

All taxes received under this Chapter, net of any commission and expenses paid pursuant to §5406 of this title, and net of any refunds and interest paid under §5413 of this title, shall be deposited in the Revenue Account of the Conservation Trust Fund established under this Subchapter and applied for the purposes specified herein."

Section 7. Authorization of Revenue Bonds Pursuant to Subchapter II,

Chapter 54, Title 30, Delaware Code, the General Assembly hereby authorizes bonds for the conservation program described in Volume 65, Chapter 212 of Delaware Laws not to exceed the sum of Thirty Five Million Dollars ($35,000,000). The proceeds of said bonds, together with the proceeds of up to an additional Fifteen Million Dollars ($15,000,000) of bonds which were authorized by Section 12 of Volume 67, Chapter 285 of Delaware Laws, are hereby appropriated for said conservation purposes. The second sentence of Section 12(b) of Volume 67, Chapter 285 of Delaware LAWS. 6.elating to the use of bond proceeds for greenways) is hereby repealed.

Section 8. Notwithstanding Subchapter II, Chapter 54, Title 30, Delaware Code, up to Two Million Dollars ($2,000,000) of the Fifteen Million Dollars ($15,000,000) in bond proceeds which were authorized by Section 12 of Volume 67, Chapter 285 of Delaware Laws shall be used for greenways, as described in Section 44 of Volume 67, Chapter 285 of Delaware Laws; provided, however, that no more than One Million Dollars ($1,000,000) of such proceeds may be so used in any single year.

Section 9. This Act shall be effective upon its enactment in accordance with law.

Approved February 11, 1991.