Current Status Bill Number:255 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19970123 Primary Sponsor:Setzler All Sponsors:Setzler and Moore Drafted Document Number:res1242.ngs Residing Body:Senate Current Committee:Finance Committee 06 SF Subject:University of South Carolina Athletics Facilities Revenue Bonds, Colleges and Universities
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
Senate 19970123 Introduced, read first time, 06 SF
referred to Committee
View additional legislative information at the LPITS web site.
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.