Current Status Bill Number:
3176Ratification Number: 10Act Number: 6Type of Legislation: General Bill GBIntroducing Body: HouseIntroduced Date: 19970114Primary Sponsor: FelderAll Sponsors: Felder and BoanDrafted Document Number: jic\5227htc.97Date Bill Passed both Bodies: 19970318Date of Last Amendment: 19970312Governor's Action: SDate of Governor's Action: 19970331Subject: University of South Carolina Athletics Facilities Revenue Bonds, colleges and universities, bonds or notes
Body Date Action Description Com Leg Involved ______ ________ _______________________________________ _______ ____________ ------ 19970423 Act No. A6 ------ 19970331 Signed by Governor ------ 19970325 Ratified R10 House 19970318 Concurred in Senate amendment, enrolled for ratification Senate 19970312 Amended, read third time, returned to House with amendment Senate 19970305 Read second time, ordered to third reading with notice of general amendments Senate 19970305 Committee amendment adopted Senate 19970220 Committee report: Favorable with 06 SF amendment Senate 19970206 Introduced, read first time, 06 SF referred to Committee House 19970206 Read third time, sent to Senate House 19970205 Read second time House 19970130 Committee report: Favorable 30 HWM House 19970114 Introduced, read first time, 30 HWM referred to Committee House 19970108 Prefiled, referred to Committee 30 HWMView additional legislative information at the LPITS web site.
(A6, R10, H3176)
AN ACT 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 REVISE THE DEFINITION OF SPECIAL STUDENT FEE AND RESTORE THE DEFINITION REFERRING TO THE STATE BUDGET AND CONTROL BOARD; TO RAISE THE OUTSTANDING DEBT LIMIT FOR THESE BONDS FROM TWENTY TO FORTY MILLION DOLLARS, AUTHORIZE THEIR USE FOR REFUNDING OF EARLIER ISSUES, AND MAKE THESE BONDS PAYABLE FROM ADMISSION FEES, SPECIAL STUDENT 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:
Special student fee
SECTION 1. Item (8) of Section 9A of Act 518 of 1980, as last amended by Section 2 of Act 545 of 1986, is further amended to read:
"(8) The term 'special student fee' means the athletic bond fee established by the University of South Carolina and imposed upon each person in attendance at any regular session (excluding summer sessions) of the university who is enrolled in a sufficient number of classes or courses for which credit is given toward any degree offered by the university to be classified as a regular full-time student for the purpose of assessing other student fees in order (a) to provide funds to assist in the repayment of athletic bonds authorized and (b) to provide funds for athletic facilities only."
SECTION 2. 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 3. 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 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. 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."
Sale of bonds
SECTION 4. 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. "
SECTION 5. The first paragraph of Section 9N (3) of Act 518 of 1980 is amended to read:
"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."
Use of proceeds, fees
SECTION 6. 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 7. This act takes effect upon approval by the Governor.
Approved the 31st day of March, 1997.