Bill 3792

                    Current Status

Bill Number:               3792
Ratification Number:       525
Act Number:                447
Introducing Body:          House
Subject:                   Relating to bond issues for the College
                           of Charleston and Francis Marion College

(A447, R525, H3792)

AN ACT TO AMEND ACT 653 OF 1978, RELATING TO BOND ISSUES FOR THE COLLEGE OF CHARLESTON AND FRANCIS MARION COLLEGE, SO AS TO INCREASE THE AUTHORIZED BOND ISSUE FROM THREE MILLION TO NINE MILLION DOLLARS FOR STUDENT AND FACULTY HOUSING FACILITIES AT FRANCIS MARION COLLEGE, TO PROVIDE FOR THE BONDS TO BE PAYABLE FROM RENTAL REVENUES DERIVED FROM FACILITIES CONSTRUCTED BY THE COLLEGE, INSTEAD OF FROM FACILITIES OWNED BY THE BOARD OF TRUSTEES, AND OTHER REVENUE SOURCES APPROVED BY THE BOARD, THE BUDGET AND CONTROL BOARD, AND THE JOINT BOND REVIEW COMMITTEE; TO DELETE THE PROVISION WHICH REQUIRES THAT THE GOVERNOR, STATE TREASURER, AND COMPTROLLER GENERAL APPROVE ANY BOND SALES PRIVATELY NEGOTIATED WITHOUT PUBLIC ADVERTISEMENT; TO DELETE THE PROVISION WHICH REQUIRES NEWSPAPER ADVERTISEMENTS WHEN THE BOARD ELECTS TO SELL BONDS AT PUBLIC SALE; TO DELETE THE POWER OF THE BOARD TO SPECIFY AND LIMIT THE HOUSING FACILITIES WHICH MAY BE MADE USE OF FREE OF CHARGE; AND TO DELETE THE REQUIREMENT THAT A DEBT SERVICE RESERVE FUND, AUTHORIZED TO BE ESTABLISHED BY THE BOARD, MUST BE ESTABLISHED BEFORE THE BONDS ARE DELIVERED AND TO DELETE THE REQUIREMENT THAT THE FUND BE DEPOSITED WITH A CORPORATE TRUSTEE.

Be it enacted by the General Assembly of the State of South Carolina:

Findings

SECTION 1. Section 2 of Act 653 of 1978 is amended to read:

"Section 2. The General Assembly finds that the State College Board of Trustees created by Act 353 of 1969 (the Board of Trustees) is the governing body of Francis Marion College, a state supported institution of higher learning located in Florence County (the College). The General Assembly now intends to authorize the Board of Trustees to finance the acquisition and construction of student and faculty housing facilities at the College through the issuance of not exceeding nine million dollars student and faculty housing revenue bonds."

Board may acquire housing facilities

SECTION 2. Section 4 of Act 653 of 1978 is amended to read:

"Section 4. To the end that the Board of Trustees may acquire student and faculty housing facilities, the Board of Trustees is permitted to borrow from time to time, not exceeding in the aggregate principal amount, the sum of nine million dollars. No bonds may be issued pursuant to this act unless the State Budget and Control Board by resolution has first approved the issuance of the bonds. The proceeds derived from the sale of bonds issued pursuant to this act must be used in the acquisition, construction, reconstruction, renovating, and equipping of dormitories and buildings designed for student and faculty housing and auxiliary and related facilities to be located on lands owned or acquired by the State. The buildings when acquired, constructed, reconstructed, renovated, or equipped must be used for the purpose of providing housing and auxiliary and related facilities for students and faculty of the College.

No funds may be expended for construction without prior approval of the Budget and Control Board."

Bonds payable from rental revenues

SECTION 3. Section 5 of Act 653 of 1978 is amended to read:

"Section 5. All bonds issued pursuant to this act are payable from the entire rental revenues derived by the College from all student and faculty housing facilities and auxiliary and related facilities constructed, and other revenue sources as identified and approved by the Board of Trustees, and subject to the approval of the Budget and Control Board and the Joint Bond Review Committee."

Manner of disposal of bonds

SECTION 4. Section 11 of Act 653 of 1978 is amended to read:

"Section 11. The bonds must be disposed of in a manner as the Board of Trustees determines, except that no sale privately negotiated without public advertisement may be made unless the approval of the State Budget and Control Board is obtained."

Covenant

SECTION 5. Item c of Section 12 of Act 653 of 1978 is amended to read:

"c. To convenant that no housing facilities at the College will be used free of charge."

Debt service reserve fund

SECTION 6. Item q of Section 12 of Act 653 of 1978 is amended to read:

"q. To establish a debt service reserve fund and cause the fund to be deposited with the State Treasurer, and to that end the Board of Trustees is empowered to utilize any money available for that purpose."

Time effective

SECTION 7. This act shall take effect upon approval by the Governor.