H 4548 Session 111 (1995-1996)
H 4548 General Bill, By Boan
A Bill 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.
02/06/96 House Introduced and read first time HJ-174
02/06/96 House Referred to Committee on Ways and Means HJ-175
03/14/96 House Committee report: Favorable with amendment Ways
and Means HJ-6
03/20/96 House Amended HJ-31
03/20/96 House Read second time HJ-34
03/21/96 House Read third time and sent to Senate HJ-22
03/26/96 Senate Introduced and read first time SJ-25
03/26/96 Senate Referred to Committee on Finance SJ-25
Indicates Matter Stricken
Indicates New Matter
AMENDED
March 20, 1996
H. 4548
Introduced by REP. Boan
S. Printed 3/20/96--H.
Read the first time February 6, 1996.
A BILL
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.
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