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COMMITTEE REPORT
April 3, 2002
H. 4701
S. Printed 4/3/02--H.
Read the first time February 12, 2002.
To whom was referred a Bill (H. 4701) to amend Sections 59-121-310, 59-121-350, and 59-121-440, Code of Laws of South Carolina, 1976, relating to Citadel facilities bonds, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
ROBERT W. HARRELL, JR. for Committee.
EXPLANATION OF IMPACT:
The Citadel has indicated that enactment of this bill would have no impact on the General Fund of the State, nor on federal and/or other funds. This bill offers clarifying language to existing statutes.
Approved By:
Don Addy
Office of State Budget
TO AMEND SECTIONS 59-121-310, 59-121-350, AND 59-121-440, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CITADEL ATHLETIC FACILITIES BONDS AND THE REVENUE WHICH THE CITADEL MAY PLEDGE AS SECURITY FOR THESE BONDS, SO AS TO CLARIFY THAT THE CITADEL MAY PLEDGE THE PROCEEDS OF THE ADMISSIONS FEES AND THE SPECIAL STUDENT FEES AS SECURITY FOR THESE BONDS WITHOUT PLEDGING THE REVENUE DERIVED FROM THE OPERATION OF THE ATHLETIC DEPARTMENT, AND TO MAKE TECHNICAL CORRECTIONS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 59-121-310 of the 1976 Code, as added by Act 356 of 2000, is amended to read:
"Section 59-121-310. (A) The General Assembly finds that it is desirable to provide continuing and general statutory authority for The Citadel to incur debt for the purpose of, among other things, acquiring, constructing, renovating, and equipping certain athletic facilities, which debt is secured by a pledge of the revenues derived from the operation of the athletic department of The Citadel and or by the proceeds of certain related admissions fees and special fees charged to students enrolled at The Citadel, or by both. The Citadel has demonstrated need for additional funds to provide for acquisition, construction, renovation, and equipping of such facilities. These facilities are needed to replace or renovate aging facilities and to provide additional facilities all to the end that the educational environment at The Citadel will be enhanced for the benefit of present and future students at The Citadel.
(B) Consideration has been given to this need and to the methods of funding it. It has been determined to be in the best interests of the people of this State to authorize The Citadel to acquire, construct, renovate, and equip additional such facilities and to incur indebtedness for these purposes which is payable from the revenues derived from the operation of these facilities and or from related fees to the extent and under the conditions provided for in this article, or from both. It is specifically provided that the visitors are authorized to pledge the proceeds of the admissions fee and the special student fee as security for the bonds without pledging the revenue derived from the operation of the athletic department."
SECTION 2. Section 59-121-350 of the 1976 Code, as added by Act 356 of 2000, is amended to read:
"Section 59-121-350. Bonds issued pursuant to this article are payable from the revenues or the net revenues as designated by the visitors, as well as or from proceeds of the admissions fee and the special student fee, or from both. Bonds issued pursuant to this article may be further secured by such additional pledges of other revenues or fees of The Citadel as The Citadel may be authorized to grant pursuant to other laws of this State. The trustees visitors may abandon the use of any portion of the athletic facilities or sell or dispose of any portion of the athletic facilities upon the receipt of a written recommendation by the chief financial officer of The Citadel to the effect that such action does not adversely affect the ability of The Citadel to discharge its obligations to the holders of bonds issued pursuant to this article and upon such further conditions as prescribed in the resolution of the visitors providing for the issuance of bonds."
SECTION 3. Section 59-121-440(3) of the 1976 Code, as added by Act 356 of 2000, is amended to read:
"(3) to pledge the revenues or the net revenues as designated by the visitors, and or the proceeds of any admissions fees and special student fee, or both, as security for the payment of such bonds, whether then or thereafter to be existing. However, any surplus of such revenues or net revenues available after the payment of costs of operation and maintenance of the athletic department and of athletic facilities and of debt service on such bonds, and the establishment of any debt service reserve obligation in a bond reserve fund under the proceedings providing for the issuance of such bonds, may be placed in a contingency and improvement fund for athletic facilities in order to restore depreciated or obsolete athletic facilities, to make improvements to such athletic facilities, to defray the cost of unforeseen contingencies with regard to such athletic facilities, to prevent defaults under such bonds or to redeem any of such bonds, or may be reflected in the opening balance of the operating fund of the department for the next succeeding fiscal year and used for any purpose approved by the visitors;"
SECTION 4. This act takes effect upon approval by the Governor.
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