H*3681 Session 105 (1983-1984)
H*3681(Rat #0477, Act #0408 of 1984) General Bill, By Sheheen
A Bill to reenact Chapter 19 of Title 4, Code of Laws of South Carolina, 1976,
so as to authorize counties to provide fire protection services and issue
general obligation bonds without the necessity of holding an election for the
purpose of providing fire protection within certain areas of the county, to
prescribe the conditions under which the bonds may be issued and the purposes
for which their proceeds may be expended, and to make provision for their
repayment.
03/20/84 House Introduced and read first time HJ-1661
03/20/84 House Referred to Committee on Judiciary HJ-1661
04/11/84 House Committee report: Favorable Judiciary HJ-2312
04/18/84 House Read second time HJ-2484
04/19/84 House Read third time and sent to Senate HJ-2527
04/19/84 Senate Introduced and read first time SJ-1466
04/19/84 Senate Referred to Committee on Judiciary SJ-1467
05/02/84 Senate Committee report: Favorable Judiciary SJ-1642
05/10/84 Senate Read second time SJ-1762
05/17/84 Senate Read third time and enrolled SJ-1852
05/22/84 Ratified R 477
05/24/84 Signed By Governor
05/24/84 Effective date 05/24/84
05/24/84 Act No. 408
06/04/84 Copies available
(A408, R477, H3681)
AN ACT TO REENACT CHAPTER 19 OF TITLE 4, CODE OF LAWS OF SOUTH CAROLINA, 1976,
SO AS TO AUTHORIZE COUNTIES TO PROVIDE FIRE PROTECTION SERVICES AND ISSUE GENERAL
OBLIGATION BONDS WITHOUT THE NECESSITY OF HOLDING AN ELECTION FOR THE PURPOSE OF
PROVIDING FIRE PROTECTION WITHIN CERTAIN AREAS OF THE COUNTY, TO PRESCRIBE THE
CONDITIONS UNDER WHICH THE BONDS MAY BE ISSUED AND THE PURPOSES FOR WHICH THEIR
PROCEEDS MAY BE EXPENDED, AND TO MAKE PROVISION FOR THEIR REPAYMENT.
Be it enacted by the General Assembly of the State of South Carolina:
Findings
SECTION 1. The General Assembly enacted Act 1167 of 1974 authorizing counties
to provide fire protection services in the unincorporated areas of the county,
which were not served by other governmental entities, without the necessity of
holding an election.
In an opinion issued in City of Myrtle Beach et al v. Richardson, et al
(Opinion No. 22034 filed January 19, 1984) the South Carolina Supreme Court ruled
that the provisions of Act 1167 of 1974 were repealed by implication by Act 283
of 1975 (Home Rule Act) because of the difference in the procedures to initiate
a special tax district.
The General Assembly finds that there are still many areas of the various
counties in the State which do not have adequate fire protection services and as
a consequence many fire losses occur within the State where fire fighting
services are unavailable or arrive too late to be effective.
The provision of fire protection is a valuable and essential governmental
service and the General Assembly purposely established a means to provide such
a service in Act 1167 of 1974. It is the intent of the General Assembly that the
provisions of Act 1167 of 1974, which are reenacted by this legislation, must be
made available to counties in their efforts to provide this essential service.
The General Assembly has determined to reenact this legislation under which
counties may provide fire protection service within the unincorporated areas of
such counties where no fire protection service is presently offered by any
existing special purpose district or municipality and to provide for the issuance
of general obligation bonds of the particular county to defray the cost.
Chapter 19 of Title 4, Code of Laws of South Carolina, 1976,
reenacted
SECTION 2. Chapter 19 of Title 4, Code of Laws of South Carolina, 1976, is
reenacted as follows:
"CHAPTER 19
Fire Protection Services
Section 4-19-10. The governing body of each county has the following powers:
(a) To establish, operate, and maintain a system of fire protection.
(b) To designate, subject to the provisions of Section 4-19-20, the areas of
the county where fire protection service may be furnished by the county under the
provisions of this chapter (referred to in this chapter as service areas);
provided, however, that these service areas shall exclude those areas where fire
protection is then being furnished by some other political subdivision unless an
agreement be entered into between the county and such other political subdivision
for the joint exercise of fire protection powers within the service area of such
political subdivision and the sharing of the costs thereof.
(c) To buy such fire-fighting equipment as the governing body deems necessary
for the purpose of controlling fires within the service areas.
(d) To select sites or places within the service areas where the fire-fighting
equipment must be kept.
(e) To employ all necessary fire protection personnel and fix their
compensation.
(f) To employ and supervise the training of firemen to insure that the
equipment is utilized for the best interest of all service areas within the
county.
(g) To be responsible for the purchase, acquisition, upkeep, maintenance, and
repairs of all fire-fighting equipment and fire stations and the sites of the
stations.
(h) To promulgate such regulations as it may deem proper and necessary to
insure that the equipment is being used to the best advantage of the county and
to carry out the provisions of this chapter.
(i) To construct the necessary buildings to house the equipment authorized by
this chapter, and all fire stations necessary to provide an adequate fire
protection system.
(j) To place into effect and to revise, whenever it so wishes or may be
required, a schedule of rates and charges for the furnishing of fire protection
services within each service area.
(k) To appoint officers, agents, employees, and servants, to prescribe the
duties of such, to fix their compensation and to determine if and to what extent
they must be bonded for the faithful performance of their duties.
(l) To effect the levy and collection of ad valorem taxes without limit as to
rate or amount upon all taxable property in each service area where fire
protection services are furnished to effect the payment of principal and interest
of all bonds issued pursuant to this chapter or required for the maintenance and
operation of the fire protection system.
(m) To exercise any and all other powers necessary to operating and maintaining
a system of fire protection.
Section 4-19-20. Prior to the imposition of ad valorem taxes upon any service
area, the governing body must comply with the following requirements:
(1) The governing body shall, by resolution duly adopted, ordera public hearing
to be held for the purpose of making a determination as to the area to be
included in the service area to be taxed.
(2) Notice of the foregoing action must be published once a week for three
successive weeks in a newspaper of general circulation in the county, and such
notice shall state:
(i) The time of the public hearing, which must be not less than sixteen days
following the first publication of the notice;
(ii) The place of the hearing; and
(iii) The area included in the service area to be taxed, including a brief
description of the boundary lines.
(3) The hearing must be conducted publicly and both proponents and opponents
of the proposed action must be given full opportunity to be heard.
(4) Following the hearing the governing body shall, by resolution, make a
finding as to whether the service area must be established as a taxing district.
(5) The governing body shall cause notice of its action to be published once
a week for two successive weeks in a newspaper of general circulation within the
county which shall state the results of its action.
(6) Any person affected by the action of the governing body may, by action de
novo instituted in the court of common pleas for the county, within the twenty
days following the last publication of the notice prescribed by item (5) of this
section, but not afterwards, challenge the action of the governing body.
Section 4-19-30. As a condition precedent to the issuance of any bonds under
this chapter, the governing body shall provide for either:
(a) The levy and collection of an annual ad valorem tax within the service
areas where fire protection services will be furnished from the proceeds of the
bonds to be issued which will be sufficient to provide for the payment of the
principal and interest on the bonds to be issued; or
(b) The imposition of rates and charges for the furnishing of fire protection
services within each service area where fire protection services will be
furnished from the proceeds of the bonds to be issued which will be sufficient
to provide for the payment of the principal and interest on the bonds to be
issued.
The finding by the governing body that one of these conditions precedent to the
issuance of bonds hereunder has been met shall be conclusive.
Section 4-19-40. No election is prescribed as a condition precedent to the
issuance of bonds pursuant to this chapter, and no action other than that
prescribed in this chapter need be taken to effect the issuance of the bonds
herein authorized, nor is the governing body required to obtain the approval of
any public agency to any action taken pursuant to the authorizations of this
chapter, nor is the publication of any ordinance or resolution providing for the
issuance of any bonds under this chapter required.
Section 4-19-50. In order to provide a means by which a county may raise
monies to establish, maintain, and operate a fire protection system as provided
by this chapter and to purchase the necessary fire-fighting equipment and to
construct, acquire, and build the necessary fire stations and acquire sites for
the stations, the governing body of any county is empowered to issue as a single
issue, or from time to time as several separate issues, general obligation bonds
of the county, without the necessity of holding an election, to such extent as,
on the occasion of the issuance of any such bonds, is permitted by the
constitutional debt limitation applicable to the county.
Section 4-19-60. All bonds issued pursuant to this chapter shall mature in
such annual series or installments as the governing body shall prescribe, except
that the first maturing bonds shall mature within three years from the date of
the issue, and no bond shall mature later than thirty years from the date of
issue.
Section 4-19-70. Any bond issued pursuant to this chapter may be issued with
a provision permitting its redemption prior to its stated maturity, at par and
accrued interest, plus such redemption premium as may be prescribed by the
governing body, but no bond is redeemable prior to its stated maturity unless it
contains a statement to that effect. In the proceedings authorizing the issuance
of such bonds, provision must be made specifying the manner of call and the
notice thereof that must be given as to bonds redeemable prior to their stated
maturities.
Section 4-19-80. The bonds issued pursuant to this chapter must be in the form
of negotiable coupon bonds, payable to bearer, but may be issued with the
privilege to any holder of having them registered as to principal on the books
of the county treasurer upon such conditions as the governing body may prescribe.
Except when registered, all bonds issued pursuant to this chapter shall have all
attributes of negotiable instruments under the law merchant and the Uniform
Commercial Code. Provided, however, that any bonds issued under this chapter
and purchased by the United States of America, or any agency or department
thereof, may be in fully registered form as to both principal and interest and
registered on the books of the county treasurer.
Section 4-19-90. The bonds issued pursuant to this chapter must be made
payable at such place or places, within or without the State, as the governing
body shall provide.
Section 4-19-100. Bonds issued pursuant to this chapter shall bear interest
at a rate or rates determined by the governing body, not in excess of that
permitted by the general law of the State prescribing limitations upon the rate
of interest borne by obligations of the State and its political subdivisions,
which interest may be payable at such intervals as the governing body may
prescribe.
Section 4-19-110. The bonds and the coupons to be attached to the bonds must
be in such form and denomination and be executed in such manner as the governing
body shall prescribe.
Section 4-19-120. Bonds issued pursuant to this chapter must be sold at a
price of not less than par and accrued interest to the date of their respective
deliveries. They must be sold after public advertisement of their sale in a
newspaper of general circulation in South Carolina, or in a financial journal
published in the city of New York. Such published notice shall appear not less
than seven days prior to the occasion set for opening bids; provided, however,
that any bonds issued pursuant to the provisions of this chapter may be sold at
private sale to the United States of America or any agency or department thereof.
Section 4-19-130. The governing body may provide in the ordinance or
resolution, which makes provision for the issuance of any bonds under this
chapter, that such bonds may be additionally secured by all or any portion,
designated in the ordinance or resolution, of the revenues to be derived from the
rates and charges for fire protection services.
Section 4-19-140. For the payment of the principal of and interest on all
bonds issued pursuant to this chapter, as they respectively mature, and for the
creation of the sinking fund as may be necessary for the fund, the full faith,
credit, and taxing power of the county must be irrevocably pledged, and there
must be levied annually by the county auditor and collected by the county
treasurer a tax sufficient to pay the principal of and interest on the bonds as
they respectively mature and to create such sinking fund as may be necessary;
provided, however, that in the event that suchrevenues from the ad valorem tax
levied in the service areas under the provisions of item (1) of Section 4-19-10
or from the rates and charges for fire protection services must be available for
the payment of debt service on such bonds (whether or not such revenues have been
pledged for that purpose), and must be delivered to the county treasurer for the
payment of such principal and interest and for no other purpose, prior to the
occasion when the county auditor fixes the annual tax levy, the annual ad valorem
tax to be levied for the payment of the principal and interest on such bonds may
be reduced in each year by the amount of such revenues derived from such taxes
levied in the service areas or from such rates and charges which are actually in
the hands of the county treasurer at the time the tax for the year is required
to be levied; provided, further that bonds issued for a service area subject to
the imposition of taxes, must be primarily the obligation of the service area and
for the payment of principal and interest thereof, as the same mature, there must
be levied and collected service charges, assessments, or ad valorem taxes upon
all taxable property in the service area, and resort to the tax levy required by
the preceding paragraph of this section must be made only in the event that funds
from the sources required by this paragraph prove insufficient to meet the
payment of the principal and interest.
Section 4-19-150. The principal of and interest on bonds issued pursuant to
this chapter shall have the tax-exempt status prescribed by Section 12-1-60.
Section 4-19-160. The proceeds derived from the sale of any bonds issued
pursuant to this chapter must be paid to the county treasurer, to be deposited
in a separate bond account fund, and must be expended from time to time and made
use of as follows:
(a) Any accrued interest must be applied to the payment of the first
installment of interest to become due on such bonds.
(b) Any premium must be applied to the payment of the first installment of
principal of such bonds.
(c) The remaining proceeds must be expended, upon the warrant or order of the
governing body, for the following purposes:
(1) To defray the costs of issuing the bonds authorized by this chapter;
(2) To pay interest on such bonds for a period of not exceeding two years;
and
(3) To provide for fire protection services for the county.
(d) If, after the final completion of any fire protection system, the governing
body shall certify to the county treasurer that any remaining balance in the bond
account is no longer needed for its fire protection program, then the balance
must be held by the treasurer and used to effect the retirement of bonds then
outstanding, which have been issued pursuant to this chapter. Provided, however,
that the purchaser of the bonds is not responsible for the proper application of
the proceeds to the purposes for which the bonds are issued.
Section 4-19-170. The powers and authorizations conferred upon the governing
body are in addition to all other powers and authorizations previously vested in
the governing body and may be availed of pursuant to action taken at one regular
or special meeting of the governing body.
Section 4-19-180. The authorizations granted by this chapter shall remain of
full force and effect until they are rescinded by subsequent enactment and no
time limit is set for the issuance of bonds pursuant to this chapter."
Provisions cumulative
SECTION 3. The provisions of this act are cumulative and are not to be construed
as repealing or amending any existing statute of this State with respect to the
subject matter of any of the provisions of this act.
Time effective
SECTION 4. This act shall take effect upon approval by the Governor. |