Current Status Bill Number:4548 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19960206 Primary Sponsor:Boan All Sponsors:Boan Drafted Document Number:dka\3502htc.96 Residing Body:Senate Current Committee:Finance Committee 06 SF Date of Last Amendment:19960320 Subject:University of South Carolina, revenue bonds
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
Senate 19960326 Introduced, read first time, 06 SF
referred to Committee
House 19960321 Read third time, sent to Senate
House 19960320 Amended, read second time
House 19960314 Committee report: Favorable with 30 HWM
amendment
House 19960206 Introduced, read first time, 30 HWM
referred to Committee
View additional legislative information at the LPITS web site.
Indicates Matter Stricken
Indicates New Matter
AMENDED
March 20, 1996
H. 4548
S. Printed 3/20/96--H.
Read the first time February 6, 1996.
TO AMEND ACT 518 OF 1980, AS AMENDED, RELATING TO, AMONG OTHER THINGS, THE UNIVERSITY OF SOUTH CAROLINA ATHLETIC FACILITIES REVENUE BONDS, SO AS TO REVISE DEFINITIONS, DELETE ISSUANCE APPROVAL REQUIREMENTS BY THE STATE BUDGET AND CONTROL BOARD, EXTEND THE BOND AUTHORITY TO RECONSTRUCTION, RENOVATION, AND EQUIPPING OF ATHLETIC FACILITIES, CONFORM PROVISIONS TO REVISED DEFINITIONS, DELETE THE REQUIREMENT THAT ALL HOME FOOTBALL GAMES BE PLAYED AT THE UNIVERSITY'S STADIUM, TO ALLOW THE ISSUE OF TERM BONDS, AND DELETE SPECIFIC REQUIREMENTS RELATING TO BOND MATURITIES, TO EXTEND THE TAX EXEMPTIONS OF SUCH BONDS AND DELETE AN OBSOLETE REFERENCE, TO DELETE LIMITATIONS AND OBSOLETE PROVISIONS RELATING TO THE SALE OF THESE BONDS, TO MAKE VOLUNTARY THE ESTABLISHMENT OF A BOND RESERVE FUND AND TO ALLOW OTHER PROCEEDS TO BE CREDITED TO THE DEBT SERVICE FUND OR BOND RESERVE FUND, AND TO AUTHORIZE TRUSTEES ADDITIONAL POWERS WITH RESPECT TO THE USE OF PROCEEDS OF THESE BONDS.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Items (2), (3), (7), and (9) of Section 9A, Act 518 of 1980, as amended by Section 2, Act 545 of 1986, are further amended to read:
"(2) The term `Athletic Facilities' means all facilities designated revenue producing by the University as Athletic Facilities now owned or hereafter acquired by the University for the use of which an admission fee is charged and the revenues from which are pledged to the system of facilities established by this act.
(3) The term `Bond Reserve Fund' means the special fund to be which may be established by the trustees pursuant to this act, which must be in the custody of the State Treasurer and which is primarily established for the purpose of providing a reserve with which to meet the payment of the principal of and interest on bonds issued pursuant to this act in the event that payments otherwise required for the Debt Service Fund are insufficient to meet the payment of the principal and interest as and when they become due and payable. Monies in the Bond Reserve Fund may also may be used to pay costs of Athletic Facilities in accordance with the provisions of subsections N and P of this section.
(7) The terms `Improvements' means:
(i) the enlargement of and improvements to Carolina Stadium including all necessary equipment paid for with the proceeds of bonds or with excess funds in the Bond Reserve Fund; and or
(ii) improvements to any other Athletic Facilities; or
(iii) the acquisition, construction, reconstruction, renovation, or equipping of any other Athletic Facility.
(9) The term `State Board' means the South Carolina Budget and Control Board. Reserved."
SECTION 2. Section 9C of Act 518 of 1980, as last amended by Section 2, Act 545 of 1986, is further amended to read:
"C. May Issue Bonds.
Subject to obtaining the approval of the State Board expressed by resolution duly adopted, the Trustees are authorized to issue from time to time not exceeding twenty million dollars of Bonds for the purpose of acquiring, constructing, reconstructing, renovating, or equipping Athletic Facilities. In the event If the Trustees, in authorizing the issuance of Bonds pursuant to this section, prescribe by resolution that there must be on deposit in the Bond Reserve Fund certain sums at the time of the delivery of the Bonds, the Trustees are empowered to utilize a portion of the proceeds of any series of Bonds issued pursuant to this section in order to meet the requirement."
SECTION 3. The penultimate paragraph of Section 9N of Act 518 of 1980, as last amended by Section 4, Act 545 of 1986, is further amended to read:
"Whenever the Bond Reserve Fund, if any, exceeds the reserve required for Bonds then outstanding the Trustees are empowered with the approval of the State Board to withdraw the excess and apply it to other Athletic Facilities or improvements or for any other corporate purpose of the University."
SECTION 4. Subsection P(1) of Section 9 of Act 518 of 1980 is amended to read:
"(1) (a) To use proceeds of the Bonds to acquire, construct, reconstruct, or renovate Athletic Facilities, to pay the cost of issuance of the Bonds, to pay the cost of bond insurance and other credit enhancement and defray the cost of interest accruing on the bonds for such time as determined by the Trustees.
(b) To covenant and agree throughout the life of the Bonds, that the Admission Fee and the Special Student Fee shall must be imposed, maintained, and revised when necessary, in such amount, without limitation as to rate, as shall be is sufficient to meet the payment of the principal of and interest on the Bonds as they become due, and to create the reserve, if any, required by such resolutions for outstanding Bonds in the Bond Reserve Fund. The Bond Reserve Fund shall, except as hereinafter provided, must be used only to meet the payment of the principal of and interest on the Bonds when moneys monies in the Debt Service Fund shall be is insufficient therefor, and shall must be maintained in such a manner as to insure it ensure its availability for such purposes. Whenever the Debt Service Fund shall equal all payments of principal and interest due and to become due in the then current fiscal year, and the Bond Reserve Fund, if any, shall exceed the reserve prescribed for bonds then outstanding, the State Treasurer may with the approval of the Trustees and the State Board may apply such excess to the defeasance of Bonds then outstanding in the manner prescribed by Section T hereof in this section."
SECTION 5. Subsection P(10) of Section 9 of Act 518 of 1980, as last amended by Section 5, Act 545 of 1986, is further amended to read:
"(10) To operate and maintain all Athletic Facilities in good repair and to covenant that all varsity football games of the University which are `home' games, be played at Carolina Stadium."
SECTION 6. Subsections G, I, L, N(2), and O of Section 9, Act 518 of 1980 are amended to read:
"G. The Bonds shall must be issued as serial or term bonds at such prices, maturing in equal or unequal amounts at such times and on such occasions and shall must be in such denominations as the Trustees shall determine; provided always that the last maturing Bonds of any issue shall be expressed to mature not later than twenty-five years from their date, and the first maturing Bonds of any issue, shall fall due not later than three years from their date. They shall bear such rate or rates of interest, payable on such occasions as the trustees shall prescribe, and shall be are payable in such medium of payment, and at such place or places as such resolutions shall prescribe. Any Bonds may be issued with provisions permitting their redemption prior to before their stated maturity at such time and under such conditions as the Trustees shall prescribe. Bonds made subject to redemption prior to before their stated maturities may contain a provision requiring the payment of a premium for the privilege of exercising the right or redemption, in such amount as the Trustees shall prescribe. All Bonds that are subject to redemption shall contain a statement to that effect on the face of each Bond. Any resolution authorizing redeemable Bonds shall contain provisions, specifying the manner of call for redemption and the notice thereof that must be given.
I. The Bonds and all interest to become due thereon on them shall have the tax-exempt status prescribed by Section 12-1-60 of the Code of Laws of South Carolina, 1976 are exempt from all state, county, municipal, and school taxes, and franchise and license fees.
L. All Bonds shall must be disposed of in such manner as the Trustees shall determine, except that no sale privately negotiated without public advertisement, shall be made unless the approval of the State Board shall be obtained. If the Trustees shall elect to sell the Bonds at public sale, at least one advertisement thereof of the sale shall appear in a financial paper published in the City of New York, State of New York, or in a newspaper of general circulation in South Carolina not less than seven days prior to before the occasion fixed for the opening of bids.
N. (2) The Trustees shall immediately may establish the Bond Reserve Fund. At the time of the issuance of any Bonds pursuant to this section, the Trustees shall may prescribe by resolution the required sums which shall must be deposited and maintained in the Bond Reserve Fund.
O. The Trustees shall be are empowered to deposit, in either the Debt Service Fund, or in the Bond Reserve Fund, prior to before the issuance of any Bonds, moneys monies, derived from other sources, including funds raised by the Athletic Department of the University. The Trustees further are empowered to deposit in either the Debt Service Fund or Bond Reserve Fund, at any time proceeds from the sale of any athletic revenue bonds and any other athletic funds available to the University. They shall also be are empowered throughout the life of the Bonds to make payments from such other sources to the Debt Service Fund or into the Bond Reserve Fund. In calculating the amount or rate of the Admission Fee and Special Student Fee for any year, the Trustees may take into account moneys monies then actually paid into the Debt Service Fund from such other sources which are then available to meet the payment of the principal of and interest on the Bonds for such fiscal year."
SECTION 7. This act takes effect upon approval by the Governor.