H*3398 Session 108 (1989-1990)
H*3398(Rat #0124, Act #0075 of 1989) General Bill, By J.I. Rogers, Alexander,
R.L. Altman, K.E. Bailey, B.O. Baker, Barfield, J.M. Baxley, D.M. Beasley,
L. Blanding, G.A. Brown, H. Brown, R.B. Brown, D.M. Bruce, P.M. Burch,
C.D. Chamblee, W.N. Cork, Davenport, Elliott, T.L. Farr, J.G. Felder,
L.E. Gentry, Glover, B.J. Gordon, J.L. Harris, Harvin, B.H. Harwell, Haskins,
B.L. Hendricks, T.E. Huff, Keegan, Koon, Lanford, J.E. Lockemy, Martin,
D.M. McEachin, J.T. McElveen, A.C. McGinnis, McKay, R.N. McLellan, D.A. Moss,
Neilson, E.L. Nettles, T.F. Rogers, I.K. Rudnick, J.J. Snow, E.C. Stoddard,
C.L. Sturkie, J.W. Tucker, D.C. Waldrop, Washington, J.B. Wilder, D. Williams,
J.B. Williams and S.S. Wofford
A Bill to amend Section 33-49-440, Code of Laws of South Carolina, 1976,
relating to voting by members of electric cooperatives, so as to eliminate
voting by mail at cooperative meetings and provide that a person may not vote
as proxy unless he is a member of the cooperative; to amend Section 33-49-610,
relating to trustees of electric cooperatives, so as to revise provisions for
the removal of trustees and the election of successors, and to provide for the
temporary suspension and permanent removal of trustees for cause; and to amend
Section 33-49-1030, relating to actions pertaining to dissolution by the board
of trustees and members of a cooperative, so as to further provide for the
procedures a cooperative shall follow in order to be dissolved including the
requirement of an affirmative vote in person only except for authorized
absentee voting of at least two-thirds of the members of the cooperative, at a
meeting to be held on a Saturday for this purpose at locations in every county
in which the cooperative provides service.-amended title
02/01/89 House Introduced and read first time HJ-18
02/01/89 House Referred to Committee on Labor, Commerce and
Industry HJ-19
03/22/89 House Committee report: Favorable with amendment Labor,
Commerce and Industry HJ-48
03/23/89 House Special order, set for Wed-3/28/89, immediately
after uncontested calendar(Under H 3754) HJ-32
03/29/89 House Amended HJ-61
03/29/89 House Read second time HJ-80
03/30/89 House Read third time and sent to Senate HJ-23
04/04/89 Senate Introduced, read first time, placed on calendar
without reference SJ-25
04/06/89 Senate Read second time SJ-22
04/06/89 Senate Ordered to third reading with notice of
amendments SJ-22
04/18/89 Senate Special order SJ-34
04/20/89 Senate Read third time and enrolled SJ-26
05/04/89 Ratified R 124
05/10/89 Signed By Governor
05/10/89 Effective date 05/10/89
05/10/89 Act No. 75
05/26/89 Copies available
(A75, R124, H3398)
AN ACT TO AMEND SECTION 33-49-440, CODE OF LAWS OF SOUTH CAROLINA, 1976,
RELATING TO VOTING BY MEMBERS OF ELECTRIC COOPERATIVES, SO AS TO ELIMINATE VOTING
BY MAIL AT COOPERATIVE MEETINGS AND PROVIDE THAT A PERSON MAY NOT VOTE AS PROXY
UNLESS HE IS A MEMBER OF THE COOPERATIVE; TO AMEND SECTION 33-49-610, RELATING
TO TRUSTEES OF ELECTRIC COOPERATIVES, SO AS TO REVISE PROVISIONS FOR THE REMOVAL
OF TRUSTEES AND THE ELECTION OF SUCCESSORS, AND TO PROVIDE FOR THE TEMPORARY
SUSPENSION AND PERMANENT REMOVAL OF TRUSTEES FOR CAUSE; AND TO AMEND SECTION
33-49-1030, RELATING TO ACTIONS PERTAINING TO DISSOLUTION BY THE BOARD OF
TRUSTEES AND MEMBERS OF A COOPERATIVE, SO AS TO FURTHER PROVIDE FOR THE
PROCEDURES A COOPERATIVE SHALL FOLLOW IN ORDER TO BE DISSOLVED INCLUDING THE
REQUIREMENT OF AN AFFIRMATIVE VOTE IN PERSON ONLY EXCEPT FOR AUTHORIZED ABSENTEE
VOTING OF AT LEAST TWO-THIRDS OF THE MEMBERS OF THE COOPERATIVE, AT A MEETING TO
BE HELD ON A SATURDAY FOR THIS PURPOSE AT LOCATIONS IN EVERY COUNTY IN WHICH THE
COOPERATIVE PROVIDES SERVICE.
Be it enacted by the General Assembly of the State of South Carolina:
Voting provisions revised
SECTION 1. Section 33-49-440 of the 1976 Code is amended to read:
"Section 33-49-440. Each member is entitled to one vote on each matter
submitted to a vote at a meeting. Voting must be in person but, if the bylaws
so provide, also may be by proxy. If the bylaws provide for voting by proxy they
also must prescribe the conditions under which proxy voting may be exercised.
A person may not vote as proxy unless he is a member of the cooperative and may
not vote as proxy for more than three members at a meeting of the members."
Removal of trustees
SECTION 2. Section 33-49-610 of the 1976 Code is amended to read:
"Section 33-49-610. (A) The business and affairs of a cooperative must
be managed by a board of not less than five trustees, each of whom must be a
member of the cooperative or of another cooperative which is a member of the
cooperative. The bylaws must prescribe the number of trustees, their
qualifications, other than those provided for in this chapter, the manner of
holding meetings of the board, and the filling of vacancies on the board.
(B) The bylaws also may provide for the removal of trustees from office and
for the election of their successors as follows:
(1) (a) A temporary suspension of a trustee for cause may occur upon the
affirmative vote of at least two-thirds of the members of the board until the
next annual or special meeting. At that meeting the membership may remove the
suspended trustee for cause from the board by an affirmative vote of a majority
of the members present and voting. In the event the membership refuses to vote
to remove the trustee, he must be reinstated immediately with all the powers of
his office and continue to serve for the remainder of his elected term.
(b) 'Cause' for removal of a trustee under this section means fraudulent
or dishonest acts, or gross abuse of authority in the discharge of duties to the
cooperative, and must be established after written notice of specific charges and
opportunity to meet and refute charges.
(2) A successor may be elected as provided by the bylaws of the cooperative.
This subsection does not apply to a cooperative when a majority of its members
are other cooperatives. Cooperatives which are excluded from the removal
provisions of this subsection may provide any terms and conditions for removal
of trustees as may be authorized in their bylaws.
(C) If a husband and wife hold a joint membership in a cooperative, one, but
not both, may be elected a trustee.
(D) The board of trustees may exercise all of the powers of a cooperative
except those powers conferred upon the members by this chapter, its articles of
incorporation, or bylaws."
Dissolution provisions revised
SECTION 3. Section 33-49-1030 of the 1976 Code is amended to read:
"Section 33-49-1030. Notwithstanding the provisions of Section 33-49-450,
two-thirds of the membership of the board of trustees shall first recommend to
the membership that the cooperative be dissolved. The proposition that the
cooperative be dissolved must be submitted to the membership of the cooperative
for a vote at a special meeting of the membership called only for this purpose
and held on Saturday. Locations for the special meeting must be set up in every
county in which the cooperative provides service. The notice for the meeting at
which a proposal to dissolve the cooperative is considered shall set forth:
(1) a detailed proposition for dissolution;
(2) the plan for sale and distribution of assets;
(3) the plan for the continuance of service; and
(4) the locations of the meeting.
The special meeting must be called to order by the president or his designee at
each of the locations set forth in the notice. No quorum is required to conduct
the business of the special meeting and the presiding officer shall promptly
order the balloting on the proposition. A vote by the membership for voluntary
dissolution of the cooperative must be by written or machine ballot only. The
ballot must state the proposition to be voted upon by the members and must
contain two boxes, one marked FOR DISSOLUTION, and the other marked AGAINST
DISSOLUTION. The ballot must direct that the member place an 'X' in the box
indicating his vote on the proposition. Each member is entitled to one vote on
the proposition to dissolve the cooperative. Voting on this proposition must be
in person only, except that a member who qualifies to vote an absentee ballot
under the categories as designated below may vote by absentee ballot. A member
may cast an absentee ballot on the proposition of voluntary dissolution of the
cooperative if the member:
(1) is serving with the Armed Forces, Merchant Marine of the United States,
or is a spouse or dependent, residing with that person;
(2) is serving in the Red Cross or with the United Service Organizations, who
are attached to and serving with the Armed Forces of the United States, or is a
spouse or a dependent residing with that person;
(3) is physically disabled so as to prevent his attendance at the meeting;
(4) has his principal residence outside any county in which the cooperative
does business;
(5) is attending sick or physically disabled persons;
(6) is self-employed or unemployed and by virtue of vacation plans will be
absent from his county of residence on the scheduled meeting day;
(7) by virtue of vacation plans, will be absent from his county of residence
on the scheduled meeting day and the vacation leave having been confirmed by his
employer below; or
(8) is prevented from attending the meeting due to his employment and his
inability to attend the meeting is confirmed by his employer as provided in this
section.
A member seeking the privilege of voting an absentee ballot must apply to the
cooperative in writing for an absentee ballot within thirty days of the date for
submission of the absentee ballot as provided herein. The absentee ballot must
be promptly forwarded to the member by depositing it in the United States mail
to the last known address of the member, together with a form to be completed and
signed by the member setting forth and certifying as to his qualification for
voting an absentee ballot. The absentee ballot must be sealed in a blank
envelope and together with the executed certification of qualification form,
inserted into a second envelope bearing the name and account number of the
member. The ballot and certification of qualification form, so ensealed, must
be returned to the cooperative by mail or otherwise, no later than twelve noon
of the day prior to the date of the special meeting of members. A member
receiving an absentee ballot is entitled to cast a vote at the special meeting.
However, after delivering an absentee ballot to the cooperative, if the member
registers at the meeting or requests in writing the withdrawal of his absentee
ballot prior to the close of registration on the meeting date, the absentee
ballot must be voided and destroyed. At the conclusion of the membership
balloting, each absentee ballot meeting the requirements of this section or which
has not been revoked by registration or written member request must be removed
from the envelope containing the member's identification, mixed with the other
unmarked envelopes so as to prevent identification of the person casting the vote
and added to the count of votes cast at the meeting. The meeting must begin at
seven a.m. and adjourn at seven p.m. of the day set for special meeting except
that any member who has not cast his ballot and is in the process of voting or
is waiting to vote must be allowed to vote. The proposed voluntary dissolution
is approved upon affirmative vote of not less than two-thirds of the members of
the cooperative. The certificate of qualification for voting an absentee ballot
must be in the following form:
Certificate of Qualification for Absentee Ballot
I hereby apply for an absentee ballot to vote on the proposition of the
voluntary dissolution of the cooperative at the special meeting to be held on
the___________ day of_________ ,________ .
I certify that:
_______ (1) I am serving with the Armed Forces, Merchant Marine of the United
States, and am prevented by my work relating to this service from attending the
meeting, or I am a spouse or dependent, who resides with a person so serving.
_______ (2) I am serving with the Red Cross or with the United Service
Organizations who are attached to and serving with the Armed Forces of the United
States, or I am a spouse or dependent who resides with a person so serving.
_______ (3) I am physically disabled and am prevented from attending the
meeting.
_______ (4) My principal residence is outside any county in which the
cooperative does business.
The address of my principal residence is____________ .
_______ (5) I am attending a sick or physically disabled person.
_______ (6) I am self-employed or unemployed and by virtue of vacation plans
will be absent from my county of residence on the scheduled meeting day.
_______ (7) By virtue of vacation plans I will be absent from my county of
residence on the scheduled meeting day. This vacation leave has been confirmed
by my employer below.
_________________________________
Employer
_______ (8) I am prevented from attending the meeting due to my employment and
my inability to attend the meeting has been confirmed by my employer below.
________________________________
Employer
My cooperative member account number is____________________ .
_________________________________
Signature
Unless otherwise provided for in its Articles of Incorporation, Bylaws, or by
this chapter, the board shall, not less than ten days prior to any election,
adopt policies and procedures for the conduct of the election."
Time effective
SECTION 4. This act takes effect upon approval by the Governor. |