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3749Ratification Number: 440Act Number: 545Introducing Body: HouseSubject: Relating to the authorization of the Board of Trustees of the University of South Carolina to issue additional revenue bonds for stadium expansion
(A545, R440, H3749)
AN ACT TO AMEND ACT 518 OF 1980, AS AMENDED, RELATING TO THE AUTHORIZATION OF THE BOARD OF TRUSTEES OF THE UNIVERSITY OF SOUTH CAROLINA TO ISSUE ADDITIONAL REVENUE BONDS FOR STADIUM EXPANSION, SO AS TO AUTHORIZE THE BOARD TO ISSUE SPECIAL OBLIGATION BONDS TO PAY FOR THE COST OF VARIOUS UNIVERSITY-OWNED ATHLETIC FACILITIES IN ADDITION TO THE IMPROVEMENTS AUTHORIZED FOR WILLIAMS-BRICE STADIUM.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. As an incident to the passage of this legislation, the General Assembly makes the following findings of fact:
(a) By Section 9 of Act 518 of 1980, the South Carolina General Assembly authorized the Board of Trustees of the University of South Carolina to issue special obligation bonds of the University in an amount not exceeding twelve million dollars to pay for the cost of enlarging and improving Williams-Brice Stadium.
(b) On March 19, 1982, the University issued ten million dollars of Stadium Improvement Revenue Bond Anticipation Notes, the proceeds of which were expended for the purposes of Act 518 of 1980.
(c) As of March 14, 1986, there are outstanding seven million dollars of Stadium Improvement Revenue Bond Anticipation Notes, Series 1986; three million dollars of the original borrowing having now been retired.
(d) The General Assembly has now determined to empower the University trustees to finance improvements to other University-owned Athletic Facilities by pledging fees generated by the University Athletic Facilities as a whole.
(e) Until such time as the Series 1986 Notes have been retired, the pledge of revenues created by the provisions of this act is junior and subordinate to the pledge of admission fees and special student fees created for the payment of all obligations now outstanding under Act 518 of 1980.
SECTION 2. Subsections A through D of Section 9 of Act 518 of 1980 are respectively amended to read:
"A. Unless the context clearly requires otherwise:
(1) The term 'Admission fee' means collectively (i) the special fee or charge (which is in addition to other charges) imposed upon each person admitted to a football game in Carolina Stadium at the University of South Carolina from whom an admission charge is required, excluding students admitted as a result of student fees paid to the institution for a regular session; and (ii) the special fee or charge imposed upon each person using any other of the Athletic Facilities so designated by the University, excluding students permitted to use such Athletic Facilities as a result of student fees paid to the institution for a regular session.
(2) The term 'Athletic Facilities' means all designated revenue-producing 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 established 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 be used to pay costs of Athletic Facilities in accordance with the provisions of subsections N and P of this section.
(4) The term 'Bonds' means the special obligation bonds of the University of South Carolina authorized by this act.
(5) The term 'Carolina Stadium' means the Williams-Brice Stadium of the University of South Carolina located in the City of Columbia, South Carolina.
(6) The term 'Debt Service Fund' means the fund established by this act for the payment of the principal of and interest on the Bonds.
(7) The term '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 (ii) improvements to any other Athletic Facilities.
(8) The term 'Special Student Fee' means the fee authorized by this act to be established by the University 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 Bonds authorized by this act and (b) to provide funds for Athletic Facilities.
(9) The term 'State Board' means the South Carolina State Budget and Control Board.
(10) The term 'Trustees' means the Board of Trustees of the University of South Carolina.
(11) The term 'University' means the University of South Carolina, located in the City of Columbia, South Carolina.
C. The right of the Trustees to acquire and construct Athletic Facilities and thereafter to operate and maintain the same is affirmed.
D. 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 constructing Athletic Facilities. In the event 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."
Form of bonds
SECTION 3. Subsection H of Section 9 of Act 518 of 1980 is amended to read:
"H. The Bonds may, if and as permitted by law or applicable regulation, be in the form of negotiable coupon Bonds, payable to bearer, with the privilege to the holder of having them registered as to principal on the books of the State Treasurer of South Carolina, and the principal thus made payable to the registered holder, unless the last registered transfer was to the bearer, upon such conditions as the Trustees of the University shall prescribe; or the Bonds may be issued as fully registered Bonds in such form as may be prescribed by the Trustees. If issued as fully registered Bonds, it may be provided that after issuance they may be converted into negotiable coupon Bonds of the tenor first above described."
Excess may be withdrawn
SECTION 4. The next to the last paragraph of subsection N of Section 9 of Act 518 of 1980 is amended to read:
"Whenever the Bond Reserve Fund 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 5. Items (9) and (10) of subsection P of Act 518 of 1980 are respectively amended to read:
"(9) To covenant to insure Athletic Facilities against loss by fire or other casualty to such extent as is considered appropriate.
(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."
Bonds may be increased
SECTION 6. Subsections R through T are respectively amended to read:
"R. The General Assembly reserves the right to amend this section so as to increase the amount of Bonds which may be authorized for the purpose of constructing Athletic Facilities and Improvements to the University, but only if in the issuance of Bonds pursuant to this section as now constituted, the Trustees have reserved the right to issue additional Bonds and have prescribed the conditions under which these additional Bonds may be issued.
S. It is not intended by this act to limit the University in the construction of Athletic Facilities to the sums provided for such purposes in this act, and if the University obtains funds from other sources for these purposes, then in that event, it is empowered to apply these funds to improvements now contemplated or to provide further Athletic Facilities.
T. If the issuance of the first series of Bonds pursuant to this section occurs other than in connection with the refunding of the Series 1986 Notes at their stated maturity, there must be transferred to an irrevocable trust to be established in the hands of the State Treasurer, either monies in an amount which must be sufficient, or direct obligations of the United States of America, or obligations guaranteed by the United States of America, the principal of and interest on which when due will provide the sums required to pay the principal of and interest on the Outstanding Bonds as and when the same become due and payable. When the irrevocable trust has been established and funded, the Outstanding Bonds are considered to be defeased and are not considered to be outstanding for any purposes of this section. As provided in item P of this section, Bonds issued pursuant to this act are also subject to defeasance in the manner prescribed by this section."
SECTION 7. This act shall take effect upon approval by the Governor.