H 4952 Session 112 (1997-1998)
H 4952 General Bill, By Harrison and W.J. Young
A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION
6-11-271 SO AS TO CLARIFY THE AUTHORITY OF CERTAIN SPECIAL PURPOSE DISTRICTS
TO LEVY MILLAGE AND PROVIDE GOVERNMENTAL SERVICE.
04/02/98 House Introduced and read first time HJ-6
04/02/98 House Referred to Committee on Judiciary HJ-6
04/29/98 House Committee report: Favorable Judiciary HJ-2
05/05/98 House Requests for debate-Rep(s). Harrison, Young,
Klauber, Felder, Harrell, Lloyd, Pinckney, Cave,
J. Smith, Simrill, Hinson & Kirsh HJ-20
05/06/98 House Recommitted to Committee on Judiciary HJ-27
05/21/98 House Committee report: Favorable with amendment
Judiciary HJ-3
05/27/98 House Debate adjourned until Thursday, May 28, 1998 HJ-67
05/28/98 House Debate adjourned until Tuesday, June 2, 1998 HJ-122
06/02/98 House Recommitted to Committee on Judiciary HJ-75
Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
May 21, 1998
H. 4952
Introduced by Reps. Harrison and Young
S. Printed 5/21/98--H.
Read the first time April 2, 1998.
THE COMMITTEE ON JUDICIARY
To whom was referred a Bill (H. 4952), to amend the Code of Laws
of South Carolina, 1976, by adding Section 6-11-271 so as to clarify
the authority of certain special purpose districts, etc., respectfully
REPORT:
That they have duly and carefully considered the same, and
recommend that the same do pass with amendment:
Amend the bill, as and if amended, by adding an appropriately
numbered SECTION to read:
/SECTION . Chapter 13, Title 6 of the 1976 Code is
amended by adding:
"Article 15
Dissolution of
Special Purpose Districts
Section 6-11-2010. For purposes of this article:
(1) 'Special purpose district' or 'district' means any district,
including a public service district, created by or pursuant to an act of
the General Assembly before March 7, 1973, and to which has been
committed before March 7, 1973, any governmental function,
including those districts created by special legislation and those
districts created by referenda held pursuant to general legislation, the
boundaries of which are wholly within a single county and which are
not expressly governed by Chapter 9 of Title 4 or Chapter 7 of Title
5.
(2) 'Commissioners of election' means the commissioners of
registration and election of a county. In a county where the functions
of voter registration and conducting elections are not combined, the
petition referred to in Section 6-11-2030 must be filed with the body
responsible for voter registration in that county. This body is
responsible for taking the action required by Section 6-11-2040, and
with the commissioners of election or other body charged by law
with conducting elections within the county, which shall undertake
all other actions required of the 'commissioners of election' in this
article.
Section 6-11-2020. A special purpose district may be dissolved
upon a two-thirds vote of the registered voters residing in a district.
These votes must be cast at a referendum held in accordance with this
article and with the election laws of this State, mutatis mutandis.
Section 6-11-2030. The referendum must be called and held in
accordance with this article upon the filing with the commissioners
of election for the county in which the district is located a petition
conforming with the following requirements:
(1) The petition must contain the name and address of the person
clearly printed and the signature of each individual executing the
same; and
(2) printed at the top of each page of the petition an explanation of
its purpose, which explanation shall contain, at a minimum:
(a) the name of the district proposed to be dissolved;
(b) a statement that the purpose of the petition is to authorize a
referendum to be held on the question of the dissolution of the
district;
(c) the following inscription: 'This petition shall not become
effective unless signed by at least forty percent of the qualified
electors in (name of district).';
(d) the services which the district is by law authorized to
provide;
(e) the outstanding principal balance of general obligation
bonds of the district, the outstanding principal balance of the revenue
bonds of the district, the outstanding principal balance of
lease-purchase obligations of the district, and an outstanding balance
of other obligations of the district; and
(f) if the services are to continue, the name of the entity or
entities which shall assume the assets and liabilities of the district
upon dissolution and shall provide the services currently provided by
the district.
Section 6-11-2040. (A) Upon the filing of a petition, it is the
duty of the commissioners of election of a county to:
(1) forward a copy of the petition to the governing body of the
district;
(2) ascertain the number of qualified electors residing in the
district; and
(3) ascertain that each person named on the petition is a
qualified elector shown on voter registration books maintained by the
commissioners of election as residing at an address located within the
district.
(B) The commissioners of election shall within thirty days of the
receipt of a petition deliver to the governing body of the district a
certificate showing the number of qualified electors within the district
and the number of qualified electors residing in the district that have
signed the petition. Signatures on the petition must be:
(1) dated not more than one hundred eighty days prior to the
delivery of the petition to the commissioners of election, and
(2) of persons ascertained to be a qualified elector residing in
the district as shown on the voter registration books.
Signatures on the petition accompanied by illegible names and
addresses are void and must be disregarded in determination of the
number of qualified electors residing in the district that have signed
the petition.
Section 6-11-2050. Upon receipt of the commissioners of
election, and if the certificate demonstrates that at least forty percent
of the qualified electors of the district have signed a petition
conforming to this article, the governing body of the district shall
forward it to each political subdivision which is named by the
petition as a successor provider.
Section 6-11-2060. (A) A successor provider must within ninety
days following receipt of the certificate adopt a resolution or
ordinance, as appropriate under the general law of the State, by which
the successor provider agrees, should a referendum be successful, to
become responsible for the assets and liabilities of the district and to
provide the service or services set forth in the petition upon the
dissolution of the district. The resolution or ordinance must
affirmatively state that the political subdivision is authorized by law
to provide the service or services, and is authorized to and will, prior
to the dissolution of the district, issue the obligations as are necessary
to fully pay or defease all outstanding general obligation bonds,
revenue bonds, lease-purchase obligations, and other obligations of
the district, except to the extent, if any, that the political subdivision
is able to lawfully assume the obligations. A certified copy of the
resolution or ordinance must be forwarded to the governing body of
the district within five days of its adoption. Each political
subdivision named as a successor provider in the petition must
transmit to the governing body of the district a resolution or
ordinance conforming with this subsection within ninety days of
receipt of the certificate forwarded by the governing body of a
district.
(B) If the successor provider is a county and it proposes to finance
the provision of one or more services then provided by the district to
the area within the district in whole or in part through the levy and
collection of ad valorem taxes, the tax district shall be established
pursuant to the ordinance adopted pursuant to subsection (A) of this
section, subject to the dissolution of the district. Nothing contained
in this article shall prevent a county from creating a special tax
district pursuant to this article solely for the purpose of payment of
debt service on general obligation bonds issued by the county as a
successor provider in order to discharge obligations of the district.
(c) If more than one successor provider is named in the petition or
resolution of the governing body of the district, the entities so named,
prior to the adoption of a resolution or ordinance as provided above,
shall agree in writing as to the division of assets and liabilities of the
district, and the agreement must be incorporated by reference into
each resolution or ordinance adopted.
Section 6-11-2070. If the governing body of the district receives
all necessary resolutions or ordinances conforming with subsection
(C) from each successor provider, the governing body shall within
thirty days of that action adopt a resolution by which it authorizes a
referendum to be held on the question of the dissolution of the
district. The referendum must be held on the date of the general
election in November of the even-numbered year if the governing
body has received all required resolutions or ordinances by one
hundred twenty days before that election. If all required resolutions
or ordinances are not received by that deadline, the governing body
must schedule the referendum for the next following general election.
Section 6-11-2080. The resolution required by Section 6-11-2070
shall also provide for the publication of notice of the referendum in
one newspaper of general circulation within the district. The notice
of referendum must be published no less than sixty days prior to the
referendum, on that date which is two weeks following the initial
publication, and once a week for each of the four weeks immediately
preceding the week in which the referendum is held. The notice shall
contain matters required by the general election law of the State, and
shall also include the following information:
(1) the name of the district proposed to be dissolved;
(2) a statement that the purpose of the referendum is to determine
whether the district should be dissolved;
(3) a general description of the boundaries of the district;
(4) the names, addresses, and telephone numbers of each current
member of the governing body of the district;
(5) the services which the district is by law authorized to provide;
(6) the outstanding principal balance of general obligation bonds
of the district, the outstanding principal balance of the revenue bonds
of the district, the outstanding principal balance of lease-purchase
obligations of the district, and the outstanding principal balance of
other obligations of the district;
(7) if the services are to be continued, the name of the political
subdivision or subdivisions which shall assume the assets and
liabilities of the district upon dissolution and shall provide the
services currently provided by the district;
(8) where applicable, a statement that a copy of the written
agreement of the successor providers as to the proposed distribution
of assets and liabilities is available at the office of the principal
administrator of each successor entity and at the principal office of
the district;
(9) where applicable, a statement that in the event the district is
dissolved, the area formerly included within the district must be,
without further action or approval, designated as a special tax district
of the county in which the district is located for the provision of the
service or services presently provided by the district for which the
county is the successor provider, that the district will be subject to an
annual tax for operations and maintenance of it not exceeding the
amount as provided in the ordinance of the county enacted pursuant
to Section 6-11-2060 and for debt service on general obligation
bonds issued to finance the provision of the service or services; and
(10) the question to be voted upon in the referendum.
Section 6-11-2090. The referendum must be conducted by the
commissioners of election for the county in which the district is
located and held on the general election date in November of the next
even-numbered year pursuant to Section 6-11-2070.
Section 6-11-2100. (A) The question to be voted upon in the
referendum must be substantially similar to the following:
Must (name of district) be dissolved and its assets and
liabilities distributed to (successors providers), upon the
condition that (successor provider) must upon
dissolution of the district be responsible for providing (name
of service) that (additional successor provider) must
upon dissolution of the district be responsible for providing
(name of service)?
IN FAVOR OF DISSOLVING
(name of district)
OPPOSED TO DISSOLVING
(name of district)
Must (name of district) be dissolved and upon the
dissolution the area formerly included within (name of
district) constitutes a special tax district of
County for the purpose of providing (name of
services provided by district to be provided through tax
district) in which special tax district there must be levied not
exceeding mills annually for the operation and
maintenance thereof?
IN FAVOR OF DISSOLVING
(name of district)
OPPOSED TO DISSOLVING
(name of district)
(B) Suitable instructions for completion of the ballot must be
provided on it.
Section 6-11-2110. The commissioners of election for the county
in which the referendum is held shall certify the results of the election
to the governing body of the district. The question presented in
referendum shall be considered approved if at least two-thirds of the
qualified electors of the district voting in the referendum vote in
favor of it. The commissioners of election shall also cause the
certificate of results of the referendum to be filed with the clerk of
court for the county in which the district is located within five days
of the date of the certification. The results of the referendum and the
validity of these actions taken precedent to it are not open to question
except by action instituted within thirty days from the filing of the
certificate of results.
Section 6-11-2120. If the question presented in the referendum is
approved as provided in Section 6-11-2110, the governing body of
the district shall declare the results of the referendum in writing and
within ten days following the referendum provide certified copies of
the declaration of results to each successor provider.
Section 6-11-2130. Upon receipt of a certified copy of the
declaration of results of the referendum, a successor provider must
adopt a resolution or ordinance, as appropriate, confirming its prior
action in agreeing to serve as successor provider within ninety days
of receipt of a certified declaration of results. This confirming
resolution or ordinance must be forwarded to the governing body of
the district and to every other successor provider.
Section 6-11-2140. When each successor provider has adopted a
confirming resolution or ordinance, the governing body of each and
of the district shall agree to an orderly winding up of the affairs of the
district. Dissolution is not effective before the time as all general
obligation debt, revenue debt, lease-purchase obligations, and other
obligations, except those obligations which a successor provider may
lawfully assume, have been paid in full or legally defeased.
Section 6-11-2150. The cost of any referendum held under the
provisions of this article and all costs of dissolution must be borne by
the district, provided, however, that the district is not responsible for
any costs associated with the preparation or circulation of any
petition calling for a referendum under this article."/
Renumber sections to conform.
Amend title to conform.
JAMES H. HARRISON, for Committee.
STATEMENT OF ESTIMATED FISCAL
IMPACT
SC B & CB- Division of Budget and Analysis
Statement of Estimated Local Revenue Impact (Section
2-7-76)
This bill has no impact on local government revenue. This bill
applies only to special purpose districts whose governing bodies are
not elected but are presently authorized by law to levy millage for
operation and maintenance. This bill would have no effect on these
special purpose district's current revenue. Future revenue derived
from millage increases may be restricted by the referendum
requirement or the requirement of approval from the governing body
of the county prior to any new millage increase.
This bill applies only to special purpose districts whose governing
bodies are not elected but are presently authorized by law to levy
millage for operations and maintenance. Beginning in fiscal year
1999, the amount of ad valorem property tax millage is the amount
equal to the millage levy imposed in fiscal year 1998. In order to
change the millage, the governing body of the district may request the
commissioners of election of the county in which the special purpose
district is located to conduct a referendum to modify the tax millage
for the district. If the referendum is approved, the new millage
remains effective until changed in a manner provided by law. Special
purpose districts may get a one year modification in their millage
levy by getting approval by the governing body of the district and the
governing body of the county in which the district is located.
Approved By:
William C. Gillespie
South Carolina Board of
Economic Advisors
STATEMENT OF ESTIMATED FISCAL
IMPACT
South Carolina Board of Economic Advisors
Statement of Estimated Revenue Impact (Section
2-7-71)
This bill has no impact on state or local government revenue. This
bill applies only to special purpose districts whose governing bodies
are not elected but are presently authorized by law to levy millage for
operation and maintenance. This bill would have no effect on these
special purpose district's current revenue. Future revenue derived
from millage increases may be restricted by the referendum
requirement or the requirement of approval from the governing body
of the county prior to any new millage increase.
This bill applies only to special purpose districts whose governing
bodies are not elected but are presently authorized by law to levy
millage for operations and maintenance. Beginning in fiscal year
1999, the amount of ad valorem property tax millage is the amount
equal to the millage levy imposed in fiscal year 1998. In order to
change the millage, the governing body of the district may request the
commissioners of election of the county in which the special purpose
district is located to conduct a referendum to modify the tax millage
for the district. If the referendum is approved, the new millage
remains effective until changed in a manner provided by law. Special
purpose districts may get a one year modification in their millage
levy by getting approval by the governing body of the district and the
governing body of the county in which the district is located.
Approved By:
William C. Gillespie
Board of Economic Advisors
STATEMENT OF ESTIMATED FISCAL
IMPACT
ESTIMATED FISCAL IMPACT ON GENERAL FUND
EXPENDITURES IS:
-0-
This bill will not have an impact on the General Fund of the State.
If the county held the referendum during a general election then
there would be no additional cost to the county. However, if the
referendum was to be held during a special election then there would
be a cost that would vary among the counties. The cost could range
from $7,000 to as much as $100,000 depending on the county and the
size of the special purpose district.
Pursuant to Section 2-7-71 of the 1976 South Carolina Code of
Laws the Board of Economic Advisors is the appropriate agency to
address any revenue impact of this legislation.
Approved By:
Frank A. Rainwater
Office of State Budget
A BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA,
1976, BY ADDING SECTION 6-11-271 SO AS TO CLARIFY THE
AUTHORITY OF CERTAIN SPECIAL PURPOSE DISTRICTS TO
LEVY MILLAGE AND PROVIDE GOVERNMENTAL SERVICE.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. The 1976 Code is amended by adding:
"Section 6-11-271. (A) For purposes of this section, 'special
purpose district' means any special purpose district or public service
authority, however named, created prior to March 7, 1973, by or
pursuant to an act of the General Assembly of this State.
(B)(1) This subsection applies only to those special purpose
districts the governing bodies of which are not elected but are
presently authorized by law to levy for operations and maintenance
in each year millage up to or not exceeding a given amount and did
impose this levy in fiscal year 1997-98.
(2) There must be levied annually in each special purpose
district described in item (1) of this subsection, beginning with the
levy for fiscal year 1999, ad valorem property tax millage in the
amount equal to the millage levy imposed in fiscal year 1998.
(C)(1) This subsection applies only to those special purpose
districts the governing bodies of which are not elected but are
presently authorized by law to levy for operations and maintenance
in each year millage without limit as to amount.
(2) There must be levied annually in each special purpose
district described in item (1) of this subsection, beginning with the
levy for fiscal year 1999, ad valorem property tax millage in the
amount equal to the millage levy imposed in that special purpose
district for operations and maintenance for fiscal year 1998.
(D) Notwithstanding any other provision of law, any special
purpose district within which taxes are authorized to be levied for
maintenance and operation in accordance with the provisions of
subsections (B) or (C) of this section or otherwise may request the
commissioners of election of the county in which the special purpose
district is located to conduct a referendum to propose a modification
in the tax millage of the district. Upon receipt of such request the
commissioners of election shall schedule and conduct the requested
referendum on a date specified by the governing body of the district.
If approved by referendum, such modification in tax millage shall
remain effective until changed in a manner provided by law.
(E)(1) All special purpose districts located wholly within a single
county and within which taxes are authorized to be levied for
maintenance and operation in accordance with the provisions of
subsections (B) or (C) of this section or otherwise are authorized to
modify their respective millage limitations, provided the same is first
approved by the governing body of the district and by the governing
body of the county in which the district is located by resolutions duly
adopted. Any increase in millage effectuated pursuant to this
subsection is effective for only one year.
(2) Any millage increase levied pursuant to the provisions of
item (1) of this subsection must be levied and collected by the
appropriate county auditor and county treasurer."
SECTION 2. This act takes effect upon approval by the Governor.
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