S 255 Session 112 (1997-1998)
S 0255 General Bill, By Setzler and Moore
Similar(H 3176)
A BILL TO AMEND ACT 518 OF 1980, AS AMENDED, RELATING TO UNIVERSITY OF SOUTH
CAROLINA ATHLETICS FACILITIES REVENUE BONDS, SO AS TO PROVIDE A DEFINITION OF
"NET ATHLETIC REVENUES" AND RESTORE THE DEFINITION REFERRING TO THE STATE
BUDGET AND CONTROL BOARD; TO INCREASE FROM TWENTY TO FORTY MILLION DOLLARS THE
OUTSTANDING DEBT LIMIT FOR THESE BONDS, AUTHORIZE THEIR USE FOR REFUNDING OF
EARLIER ISSUES, AND MAKE THESE BONDS PAYABLE FROM ADMISSION FEES AND NET
ATHLETIC REVENUES; TO DELETE PROVISIONS RELATED TO ADVERTISING OF ISSUES, TO
PROVIDE THAT EXISTING FEES MUST BE SET AFTER THE CONSIDERATION OF NET ATHLETIC
REVENUES, TO CONFORM USES OF THE BOND REVENUES AND THE SETTING OF FEES TO THE
AMENDMENTS PROVIDED IN THIS ACT.
01/23/97 Senate Introduced and read first time SJ-26
01/23/97 Senate Referred to Committee on Finance SJ-26
A BILL
TO AMEND ACT 518 OF 1980, AS AMENDED, RELATING TO
UNIVERSITY OF SOUTH CAROLINA ATHLETICS FACILITIES
REVENUE BONDS, SO AS TO PROVIDE A DEFINITION OF
"NET ATHLETIC REVENUES" AND RESTORE THE
DEFINITION REFERRING TO THE STATE BUDGET AND
CONTROL BOARD; TO INCREASE FROM TWENTY TO
FORTY MILLION DOLLARS THE OUTSTANDING DEBT
LIMIT FOR THESE BONDS, AUTHORIZE THEIR USE FOR
REFUNDING OF EARLIER ISSUES, AND MAKE THESE
BONDS PAYABLE FROM ADMISSION FEES AND NET
ATHLETIC REVENUES; TO DELETE PROVISIONS RELATED
TO ADVERTISING OF ISSUES, TO PROVIDE THAT EXISTING
FEES MUST BE SET AFTER THE CONSIDERATION OF NET
ATHLETIC REVENUES, TO CONFORM USES OF THE BOND
REVENUES AND THE SETTING OF FEES TO THE
AMENDMENTS PROVIDED IN THIS ACT.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Section 9A of Act 518 of 1980, as last amended by
Act 302 of 1996, is further amended by adding at the end:
"(12) The term 'net athletic revenues' means the entire revenues
derived by the athletic department of the University for any fiscal
year after payment of the operating and maintenance expenses of
such department but before provision is made for depreciation,
amortization, nonmandatory transfers and interest expenses of the
department for such fiscal year.
(13) The term 'state board' means the South Carolina State Budget
and Control Board."
SECTION 2. Section 9C. of Act 518 of 1980, as last amended by
Act 302 of 1996, 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 forty million dollars of
bonds for the purpose of acquiring, constructing, reconstructing,
renovating, or equipping athletic facilities and for the purpose of
refunding any previous series of bonds authorized by this section.
Bonds issued pursuant to this section are payable from the admission
fee and net athletic revenues. 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. Section 9L of Act 518 of 1980, as last amended by
Act 302 of 1996, is further amended to read:
"L. Bonds must be disposed of in such manner as the trustees
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 elect to sell the bonds at public
sale, at least one advertisement 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 before the occasion fixed for the opening of bids."
SECTION 4. The first paragraph of Section 9N(3) of Act 518 of
1980 is amended to read:
"(3) The Trustees shall maintain in full force and effect both the
Admission Fee, which shall be not less than one dollar per person and
the Special Student Fee. Such fees shall be maintained on such basis
and in such amount as will be sufficient, after taking into account
net athletic revenues, to provide for the payment of the principal
of and interest on the Bonds as the same mature and to provide the
required reserve therefor in the Bond Reserve Fund. It shall be the
duty of the Trustees to calculate the debt service requirements of the
Bonds not less frequently than annually and at such time appropriate
revisions of both the Admission Fee and Special Student Fee shall be
made if such revisions shall be required, after taking into account
net athletic revenues for the year, to make adequate provision for
the payment of the principal of and interest on the Bonds and the
maintenance of the required reserve in the Bond Reserve Fund."
SECTION 5. Subsection 9P(1) of Act 518 of 1980, as last
amended by Act 302 of 1996, is further amended to read:
"(1)(a) To use proceeds of the bonds to acquire, construct,
reconstruct, or renovate athletic facilities, to refund any previous
series of bonds authorized by this section, to make deposits to the
bond Reserve Fund, 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 must be imposed,
maintained, and revised when necessary, in such amount, without
limitation as to rate, as is sufficient, when added to net athletic
revenues in any year, 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, except as provided, must be
used only to meet the payment of the principal of and interest on the
bonds when monies in the Debt Service Fund is insufficient, and
must be maintained in a manner to 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
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. in this section."
SECTION 6. This act takes effect upon approval by the Governor.
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