Current Status Introducing Body:Senate Bill Number:784 Ratification Number:120 Act Number:65 Primary Sponsor:Wilson Type of Legislation:GB Subject:State and institution bonds Date Bill Passed both Bodies:May 10, 1991 Computer Document Number:DKA/3261.AL Governor's Action:S Date of Governor's Action:May 27, 1991 Introduced Date:Mar 19, 1991 Date of Last Amendment:Apr 25, 1991 Last History Body:------ Last History Date:May 27, 1991 Last History Type:Act No. 65 Scope of Legislation:Statewide All Sponsors:Wilson Type of Legislation:General Bill
Bill Body Date Action Description CMN
---- ------ ------------ ------------------------------ ---
784 ------ May 27, 1991 Act No. 65
784 ------ May 27, 1991 Signed by Governor
784 ------ May 21, 1991 Ratified R 120
784 House May 10, 1991 Read third time, enrolled for
ratification
784 House May 09, 1991 Unanimous consent for third
reading on next Legislative
day
784 House May 09, 1991 Read second time
784 House Apr 30, 1991 Introduced, read first time,
placed on Calendar without
reference
784 Senate Apr 26, 1991 Read third time, sent to House
784 Senate Apr 25, 1991 Amended, read second time,
unanimous consent for third
reading on Friday, April 26
784 Senate Apr 25, 1991 Committee Report: Favorable 06
with amendment
784 Senate Mar 19, 1991 Introduced, read first time, 06
referred to Committee
View additional legislative information at the LPITS web site.
(A65, R120, S784)
AN ACT TO AMEND SECTIONS 59-107-40, 59-107-50, 59-107-60, 59-107-70, 59-107-100, 59-107-160, 59-107-180, and 59-107-200, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO STATE INSTITUTION BONDS, SO AS TO FURTHER PROVIDE FOR THE MANNER IN WHICH THESE BONDS ARE AUTHORIZED AND ISSUED; TO AMEND SECTION 11-27-30, RELATING TO THE EFFECT OF THE CONSTITUTION OF THIS STATE ON ALL STATE BONDS, SO AS TO FURTHER PROVIDE FOR THE MANNER IN WHICH CERTAIN STATE BONDS AND NOTES MUST BE ISSUED AND DELIVERED; TO AMEND SECTION 11-21-60, RELATING TO THE DISPOSITION OF THE PROCEEDS OF REFUNDING BONDS, SO AS TO FURTHER PROVIDE FOR THE DISPOSITION OF THESE PROCEEDS; AND TO REPEAL SECTIONS 57-11-350 RELATING TO THE EXECUTION OF STATE HIGHWAY BONDS, 59-71-500 RELATING TO THE EXECUTION OF STATE SCHOOL BONDS, 59-107-130 RELATING TO THE EXECUTION OF STATE INSTITUTION BONDS; AND SECTION 13 OF ACT 1377 OF 1968 RELATING TO THE EXECUTION OF STATE CAPITAL IMPROVEMENT BONDS.
Be it enacted by the General Assembly of the State of South Carolina:
Application contents revised
SECTION 1. Section 59-107-40(3) of the 1976 Code is amended to read:
"(3) A statement establishing the aggregate sum received from tuition fees for the fiscal year immediately preceding the fiscal year in which such application is dated;"
Findings revised
SECTION 2. Section 59-107-50(3) of the 1976 Code is amended to read:
"(3) That the annual debt service on all state institution bonds issued for such state institution, including the bonds then proposed to be issued, shall not exceed ninety percent of the sums received by such state institution of higher learning from tuition fees for the preceding fiscal year;"
Request contents revised
SECTION 3. Section 59-107-60(8) of the 1976 Code is amended to read:
"(8) The sum received by such state institution from tuition fees for the fiscal year preceding the fiscal year in which the application was made pursuant to Section 59-107-40; and"
Determinations further provided for
SECTION 4. Section 59-107-70 of the 1976 Code is amended to read:
"Section 59-107-70. It shall be the duty of the Governor and the State Treasurer to examine the request mentioned in Section 59-107-60, and if they shall jointly approve it, and, for themselves, determine that the schedule of tuition fees in force at such state institution will, upon the basis of the sum received by such state institution from tuition fees for the fiscal year preceding the fiscal year in which the application made pursuant to Section 59-107-40, produce funds sufficient to meet the principal and interest requirements on the proposed bonds and on all outstanding state institution bonds issued for such state institution, and provide the margin for such principal and interest requirements to the extent required by paragraph (3) of Section 59-107-50, they shall be empowered to provide for the issuance of state institution bonds in the amount approved by the state board."
Pledging of revenues
SECTION 5. Section 59-107-100 of the 1976 Code is amended to read:
"Section 59-107-100. For the payment of the principal and interest on all state institution bonds, whose issuance is authorized by this chapter, there shall be pledged the full faith, credit, and taxing power of the State, and in addition, the revenues derived from the tuition fees received by the particular institution of higher learning for which such state institution bonds are issued must also be pledged."
Sale requirements revised
SECTION 6. Section 59-107-160 of the 1976 Code is amended to read:
"Section 59-107-160. State institution bonds may be privately placed if the terms and conditions of such disposition shall be approved by resolution duly adopted by the state board and the terms of such proposal meet the financial test prescribed in the second paragraph of this section.
All other state institution bonds shall be sold by the Governor and the State Treasurer upon sealed proposals, after publication of notice of the sale one or more times at least ten days before the sale in a newspaper of general circulation in the State and also in a financial paper published in New York City which regularly publishes notices of sale of state or municipal bonds. In all calls for bids, the right shall be reserved to reject all bids and readvertise for the sale of the bonds. Upon the opening of bids the Governor and the State Treasurer shall determine the most advantageous bid, and if such bid produces principal and interest payments on such proposed issue which are in compliance with the provisions outlined in paragraph (3) of Section 59-107-50, they may award the state institution bonds on such bid, at a price not less than par and accrued interest to the date of delivery. For the purpose of bringing about a successful sale of such bonds, the state board may do all things ordinarily and customarily done in connection with the sale of state or municipal bonds. All expenses incident to the sale of the bonds shall be paid from the proceeds of the bonds."
Special fund required
SECTION 7. Section 59-107-180 of the 1976 Code is amended to read:
"Section 59-107-180. Immediately following the issuance of state institution bonds, the State Treasurer shall segregate into a special fund all tuition fees of the state institution for which state institution bonds have been issued and shall apply such special fund to the payment of the principal, interest, and redemption premium, if any, on all bonds issued pursuant to this chapter for such institution; provided, however, that in the event the monies on deposit in such special fund at any time shall exceed all payments of principal and interest due in the then current fiscal year, plus the maximum annual debt service requirements in any succeeding fiscal year of all state institution bonds outstanding for such institution that were issued prior to March 1, 1991, plus any additional amount described in the last sentence of this section, the State Treasurer shall thereupon establish within the special fund created by this section separate funds for each issuance of state institution bonds for such state institution to be designated `special debt service and reserve funds', and (1) shall deposit in the special debt service and reserve fund for each issuance of state institution bonds that was issued prior to March 1, 1991, an amount equal to all payments of principal and interest due in the then current fiscal year on such issuance, plus the maximum annual debt service requirements in any succeeding fiscal year of such issuance, and (2) shall deposit in the special debt service and reserve fund for each issuance of such state institution bonds that was issued on or after March 1, 1991, an amount equal to all payments of principal and interest due on such issuance of state institution bonds in the then current fiscal year. Upon the establishment and funding of such special debt service and reserve funds for the state institution bonds for any state institution in accordance with the foregoing sentence, the State Treasurer shall apply tuition fees later received to maintain the levels of the special debt service and reserve funds at the level required by the foregoing sentence as such level may be adjusted as current annual and maximum annual requirements vary, and may apply any remaining tuition fees and any monies still remaining in the general special fund after the complete funding of the special debt service and reserve funds: to the defeasance of state institution bonds for such institution as provided in Section 59-107-200; or to any purpose set forth in subitems (a), (b), and (c) of the first paragraph of Section 59-107-40. In the event the surplus is to be applied to the defeasance of bonds, the computation of annual debt service requirements for purposes of this section shall be made as though the bonds to be defeased had already been defeased. Notwithstanding the foregoing, it is expressly provided that the State Treasurer may increase the required level for a special debt service and reserve fund for an issuance of state institution bonds issued on or after March 1, 1991, to an amount equal to all payments of principal and interest due on such issuance of state institution bonds in the then current fiscal year plus an amount equal to all payments of principal and interest due on such issuance of state institution bonds to become due between the end of the then current fiscal year and the date at which the State Treasurer anticipates receiving sufficient deposits of tuition fees from such state institution in the ensuing fiscal year to provide an adequate cash flow to meet debt service requirements for such ensuing fiscal year."
Application of excess on surplus
SECTION 8. The first paragraph of Section 59-107-200 of the 1976 Code is amended to read:
"Upon the direction of the state board, the State Treasurer may apply all or any part of the excess, as defined in Section 59-107-180, of the special fund established pursuant to Section 59-107-180, applicable to the state institution bonds of any state institution to the defeasance of any of such bonds by establishing an irrevocable trust therefor which shall consist of either monies in an amount which shall be sufficient, or direct obligations of the United States of America, or obligations unconditionally guaranteed by the United States of America, the principal and interest on which when due will provide the sums required to pay the principal, interest, and redemption premium, if any, of the particular state institution bonds sought to be defeased. The trust fund shall be established in such manner as to designate the state institution bonds intended to be defeased. When so established, the state institution bonds shall be deemed to be defeased and shall not be deemed to be outstanding for all purposes of this chapter. Notwithstanding the establishment of the irrevocable trust fund, the obligation of the State to pay to the holders of the defeased bonds all sums due by way of principal and interest shall not be deemed to be impaired."
Form or manner of insurance, execution, authentication, registration and delivery
SECTION 9. Section 11-27-30 8. of the 1976 Code is amended to read:
"8. All state general obligation bonds, revenue bonds, tax anticipation notes, and bond anticipation notes shall be issued, executed, authenticated, registered, and delivered in such form or manner as the state board or other authority may determine in the resolution authorizing the issuance of such obligations."
Disposition of proceeds
SECTION 10. Section 11-21-60 of the 1976 Code is amended to read:
"Section 11-21-60. On the delivery of any refunding bonds issued pursuant to this chapter, the proceeds thereof, less the proceeds of that portion of any refunding bonds issued pursuant to Chapter 17, Title 6 for improvements, shall be deposited with a corporate trustee and held by it under a written trust agreement and in a special trust account, except that the premium, if any, shall be used to pay the first principal to become due on such refunding bonds, and the accrued interest, if any, shall be used to discharge in part the first interest to become due on such refunding bonds. It shall be the duty of the corporate trustee to keep such proceeds invested and reinvested to the extent that it shall be practical in obligations of the United States or any agency thereof and to apply the principal and interest of the trust so established in the manner prescribed in such trust agreement."
Repeal
SECTION 11. Sections 57-11-350, 59-71-500, 59-107-130 of the 1976 Code, and Section 13 of Act 1377 of 1968 are repealed.
Time effective
SECTION 12. This act takes effect upon approval by the Governor.
Approved the 27th day of May, 1991.