H 3595 Session 112 (1997-1998)
H 3595 General Bill, By Stuart, Gamble, Knotts, Koon, Riser and Spearman
Similar(S 209)
A BILL TO AMEND SECTION 6-25-20, CODE OF LAWS OF SOUTH CAROLINA, 1976,
RELATING TO DEFINITIONS FOR JOINT MUNICIPAL WATER SYSTEMS, SO AS TO REVISE THE
MEANING OF THE TERMS "REVENUE BONDS" AND "BONDS"; TO AMEND SECTION 6-25-100,
AS AMENDED, RELATING TO POWERS OF JOINT MUNICIPAL WATER SYSTEMS, SO AS TO
ALLOW LOANS, BONDS, OR NOTES ISSUED TO A JOINT SYSTEM TO BE PAID FROM OTHER
FUNDS AS MAY BE AVAILABLE AND TO ALLOW MEMBERS OF A JOINT SYSTEM TO CREATE, AS
THEY CONSIDER NECESSARY, ADDITIONAL PROCEDURES WHICH GOVERN THE ISSUANCE OF
ANY NOTES OR BONDS; TO AMEND SECTION 6-25-110, RELATING TO AUTHORIZATION OF A
JOINT SYSTEM TO INCUR DEBT AND ISSUE BONDS, SO AS TO ALLOW A JOINT SYSTEM TO
USE OTHER SOURCES OF FUNDS AVAILABLE TO IT TO PAY FOR ISSUED BONDS; TO AMEND
SECTION 6-25-113, RELATING TO SOURCES FROM WHICH JOINT SYSTEM BONDS ARE
PAYABLE, SO AS TO ALLOW A MEMBER COUNTY OR MUNICIPALITY TO PROVIDE A PLEDGE OF
ALL OR PART OF ANY REVENUES DERIVED AS PAYMENTS IN LIEU OF TAXES WITH RESPECT
TO A PROJECT; TO AMEND SECTION 6-25-120, RELATING TO PAYMENT OF NOTES,
OBLIGATIONS, OR BONDS, SO AS TO REQUIRE ONLY REVENUES AND OTHER FUNDS
AVAILABLE TO THE JOINT SYSTEM TO BE USED TO PAY OR PLEDGED TO THE AMOUNT OF
ANY NOTES, OBLIGATIONS, OR BONDS; AND TO AMEND SECTION 6-25-128, RELATING TO
CONTRACTS BETWEEN MUNICIPALITIES AND JOINT SYSTEMS, SO AS TO ALLOW A
MUNICIPALITY UNDER CONTRACT FOR THE PURCHASE OF CAPACITY AND OUTPUT FROM A
JOINT SYSTEM TO PAY FROM REVENUES DERIVED FROM THE OWNERSHIP AND OPERATION OF
THE WATER SYSTEM OF THE MUNICIPALITY AND FROM OTHER SOURCES OF FUNDS AS MAY BE
AVAILABLE, INCLUDING ANY AMOUNTS RECEIVED AS PAYMENTS IN LIEU OF TAXES.
03/05/97 House Introduced and read first time HJ-2
03/05/97 House Referred to Committee on Ways and Means HJ-3
04/17/97 House Committee report: Favorable Ways and Means HJ-9
04/29/97 House Read second time HJ-23
04/30/97 House Read third time and sent to Senate HJ-10
05/01/97 Senate Introduced and read first time SJ-8
05/01/97 Senate Referred to Committee on Finance SJ-8
05/06/97 Senate Recalled from Committee on Finance SJ-6
05/07/97 Senate Read second time SJ-11
05/07/97 Senate Ordered to third reading with notice of
amendments SJ-11
05/21/97 Senate Amended SJ-50
05/21/97 Senate Read third time and returned to House with
amendments SJ-53
05/27/97 House Debate adjourned on Senate amendments until
Tuesday, June 3, 1997 HJ-36
06/03/97 House Debate adjourned on amendments HJ-109
06/03/97 House Tabled HJ-134
Indicates Matter Stricken
Indicates New Matter
AS PASSED BY THE SENATE
May 21, 1997
H. 3595
Introduced by Reps. Stuart, Gamble, Knotts, Koon, Riser and
Spearman
S. Printed 5/21/97--S.
Read the first time May 1, 1997.
A BILL
TO AMEND SECTION 6-25-20, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO DEFINITIONS FOR JOINT
MUNICIPAL WATER SYSTEMS, SO AS TO REVISE THE
MEANING OF THE TERMS "REVENUE BONDS" AND
"BONDS"; TO AMEND SECTION 6-25-100, AS AMENDED,
RELATING TO POWERS OF JOINT MUNICIPAL WATER
SYSTEMS, SO AS TO ALLOW LOANS, BONDS, OR NOTES
ISSUED TO A JOINT SYSTEM TO BE PAID FROM OTHER
FUNDS AS MAY BE AVAILABLE AND TO ALLOW MEMBERS
OF A JOINT SYSTEM TO CREATE, AS THEY CONSIDER
NECESSARY, ADDITIONAL PROCEDURES WHICH GOVERN
THE ISSUANCE OF ANY NOTES OR BONDS; TO AMEND
SECTION 6-25-110, RELATING TO AUTHORIZATION OF A
JOINT SYSTEM TO INCUR DEBT AND ISSUE BONDS, SO AS
TO ALLOW A JOINT SYSTEM TO USE OTHER SOURCES OF
FUNDS AVAILABLE TO IT TO PAY FOR ISSUED BONDS; TO
AMEND SECTION 6-25-113, RELATING TO SOURCES FROM
WHICH JOINT SYSTEM BONDS ARE PAYABLE, SO AS TO
ALLOW A MEMBER COUNTY OR MUNICIPALITY TO
PROVIDE A PLEDGE OF ALL OR PART OF ANY REVENUES
DERIVED AS PAYMENTS IN LIEU OF TAXES WITH RESPECT
TO A PROJECT; TO AMEND SECTION 6-25-120, RELATING TO
PAYMENT OF NOTES, OBLIGATIONS, OR BONDS, SO AS TO
REQUIRE ONLY REVENUES AND OTHER FUNDS
AVAILABLE TO THE JOINT SYSTEM TO BE USED TO PAY
OR PLEDGED TO THE AMOUNT OF ANY NOTES,
OBLIGATIONS, OR BONDS; AND TO AMEND SECTION
6-25-128, RELATING TO CONTRACTS BETWEEN
MUNICIPALITIES AND JOINT SYSTEMS, SO AS TO ALLOW
A MUNICIPALITY UNDER CONTRACT FOR THE PURCHASE
OF CAPACITY AND OUTPUT FROM A JOINT SYSTEM TO
PAY FROM REVENUES DERIVED FROM THE OWNERSHIP
AND OPERATION OF THE WATER SYSTEM AND FROM
OTHER SOURCES OF FUNDS AS MAY BE AVAILABLE,
INCLUDING ANY AMOUNTS RECEIVED AS PAYMENTS IN
LIEU OF TAXES.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. The General Assembly finds that:
(1) The availability of water and sewer services to assist economic
development and to provide for the health, safety, and welfare of its
people is a very critical matter for this State.
(2) It is appropriate to make it possible for members of joint
municipal water systems to utilize certain sources of revenues
available to them, including payments in lieu of taxes, to assist in the
development of additional water and sewer treatment capacity and the
provision of collection and distribution lines.
(3) It is desirable to facilitate a joint water system in
accommodating the desires of its members in projects and financings
that affect only those members.
SECTION 2. Section 6-25-20(g) of the 1976 Code, is amended to
read:
"(g) 'Revenue bonds' and 'bonds' mean bonds, notes, certificates,
or other obligations of a joint system issued pursuant to the
provisions of this chapter and shall include refinancing or
refunding same, but which must be paid solely from the revenues
of and other sources of funds available to a joint
system. The term 'revenues' includes all sources of funds which
are revenues to the joint system, regardless of the source of the funds,
from any other party obligated to the joint system."
SECTION 3. Section 6-25-100(n) of the 1976 Code, as last
amended by Part II, Section 91B of Act 145 of 1995, is further
amended to read:
"(n) To borrow money and issue bonds or notes of the joint system
to be paid solely from revenues of the system and such other
funds as may be available therefor with a favorable vote of two-thirds
of the commissioners. No bonds or notes shall
may be issued the payment for which is dependent upon
contracts or agreements with a member except with the approval
of the governing body of each such member, by
resolution or ordinance of the governing body of each
such member;. provided However,
that the requirements of this item will be are
satisfied and no further action is required with respect to any bonds
or notes issued to a finance a project which has been
approved by the governing bodies body of each
member such members as provided in Section
6-25-110;. and provided further that The
approval of any notes or bonds under this chapter shall include any
issuance in one or more series and any refunding or refinancing of
them so that only the original issuance of the debt must be approved.
The members of a joint system may prescribe additional
procedures and requirements as they determine appropriate for the
issuance of any notes or bonds in the bylaws of any joint
system."
SECTION 4. Section 6-25-110 of the 1976 Code is amended to
read:
"Section 6-25-110. A joint system may incur debt for any of its
purposes and may issue bonds pledging to the payment as to both
principal and interest the revenues, or any portion, derived or to be
derived from all or any of its projects and any additions and
betterments or extensions or contributions or advances from its
members or other sources of funds available to it. No joint
system shall undertake any project required to be financed, in whole
or in part, with the proceeds of bonds without the approval of the
governing bodies of each member which is obligated or to be
obligated under any contract for the payment of amounts to be
pledged as security therefor and a favorable vote of two-thirds of all
commissioners."
SECTION 5. Section 6-25-113 of the 1976 Code is amended to
read:
"Section 6-25-113. The bonds are special obligations of the joint
system issuing them. The principal of, premium, if any, and interest
on the bonds are not payable from the general funds of the joint
system, nor shall do they constitute a legal or
equitable pledge, charge, lien, or encumbrance upon any of its
property or upon any of its income, receipts, or revenues, except the
funds which are pledged under the resolution authorizing the bonds
or the trust agreement securing the bonds. Neither the faith and credit
nor the taxing power of the State or any municipality is, or may be,
pledged for the payment of the principal of or interest on the bonds,
and no holder of the bonds has the right to compel the exercise of the
taxing power by the State or any municipality or the forfeiture of any
of its property in connection with any default. However, the
provisions of this section do not affect the ability of any member
county, or municipality from providing a pledge of all or part of any
revenues derived as payments in lieu of taxes with respect to a
project. Every bond must recite in substance that the principal
of and interest on the bond is payable solely from the revenues
and other funds pledged to its payment and that the joint
system is not obligated to pay the principal or interest except from
the such revenues and funds so pledged."
SECTION 6. Section 6-25-120 of the 1976 Code is amended to
read:
"Section 6-25-120. In borrowing money or the issuance of bonds
or notes, or other obligations, there shall may not be
pledged the full faith, credit, or taxing power of any member of the
joint system, but only revenues of and other funds
available to the system must be used to pay or pledged to the
payment of any notes, obligations, or bonds."
SECTION 7. Section 6-25-128 of the 1976 Code is amended to
read:
"Section 6-25-128. Any municipality may contract to buy from
the joint system water required for its present or future requirements,
including the capacity and output, or a portion or share of one or
more specified projects. As the creation of a joint system is an
alternative method whereby a municipality may obtain the benefits
and assume the responsibilities of ownership in a project, any
contract may provide that the municipality so contracting is obligated
to make the payments required by the contract whether or not a
project is completed, operable, or operating notwithstanding the
suspension, interruption, interference, reduction, or curtailment of the
output of a project or the water contracted for, and that the payments
under the contract are not subject to any reduction, whether by offset
or otherwise, and are not conditioned upon the performance or
nonperformance of the joint system or any other members of the joint
system under the contract or any other instrument. Any contract with
respect to the sale or purchase of capacity or output, or a portion or
share of them, of a project entered into between a joint system and its
member municipalities may also provide that if one or more of the
municipalities default in the payment of its or their obligations with
respect to the purchase of the capacity or output, or a portion or share
of them, in that event the remaining member municipalities which are
purchasing capacity and output under the contract are required to
accept and pay for and are entitled proportionately to and may use or
otherwise dispose of the capacity or output which was to be
purchased by the defaulting municipality.
Any contracts with respect to the sale or purchase of capacity and
output from a project may extend for a period not exceeding fifty
years from the date of the contract and may be renewable and
extended upon terms as the parties may agree for not exceeding an
additional fifty years; and the execution and effectiveness is not
subject to any authorizations or approvals by the State or any agency,
commission, or instrumentality or political subdivision of them.
Payments by a municipality under any contract for the purchase of
capacity and output from a joint system must may be
made from the revenues derived from the ownership and operation of
the water system of the municipality or from such other sources
of funds as may be available, including any amounts received as
payments in lieu of taxes. However, no municipality may pledge its
full faith, credit, and taxing power to secure its obligations to the joint
system or the bonds of the joint system. and any obligation
under the contract does not constitute a legal or equitable pledge,
charge, lien, or encumbrance upon any property of the municipality
or upon any of its income, receipts, or revenues, except the revenues
of its water system, and neither the faith and credit nor the taxing
power of the municipality is, or may be pledged for the payment of
any obligation under any contract. A municipality is obligated
to fix, charge, and collect rents, rates, fees, and charges for water and
other services, facilities, and commodities sold, furnished, or supplied
through its water system sufficient to provide revenues adequate to
meet its obligations under any contract and to pay any and all other
amounts payable from or constituting a charge and lien upon the
revenues, including amounts sufficient to pay the principal of and
interest on general obligation bonds, if any, heretofore or hereafter
issued by the municipality for purposes related to its water system.
Any municipality which is a member of a joint system may furnish
the joint system with money derived from the ownership and
operation of its water system or facilities and provide the joint
system with personnel, equipment, and property, both real and
personal and from any other sources legally available to it for
such purposes. Any municipality may also provide any services
to a joint system.
Any member of a joint system may contract for, advance, or
contribute funds derived solely from the ownership and
operation of its water system or facilities or from any other
sources legally available to it to a joint system as may be agreed
upon by the joint system and the member, and the joint system shall
repay the advances or contributions from the proceeds of bonds, from
operation revenues, or from any other funds of the joint system,
together with interest as may be agreed upon by the member and the
joint system."
SECTION 8. Section 6-25-111(C) of the 1976 Code is amended
to read:
"(C) Bonds may be issued under provisions of this chapter
without obtaining the consent or approval of the State or any political
subdivision or any agency, commission, or instrumentality of them,
but no joint system shall undertake any project required to be
financed, in whole or in part, with the proceeds of bonds without the
approval of the governing bodies of each member
members as prescribed in Section 6-25-110."
SECTION 9. A. Chapter 1, Title 6 of the 1976 Code is amended
by adding:
"Section 6-1-45. (A) A joint municipal water and sewer
commission, or a municipality which has a separate and distinct water
system, providing water and\or sewer services, which requires a
customer to make a deposit in order to receive such services shall
provide to the customer, in writing, the commission's policy
concerning the refund of deposits and the rate at which interest on the
deposit shall accrue. For purposes of this section, `deposit' means
any deposit of money required as a condition of receipt of services,
whether labeled an earnest money deposit, security deposit, deposit
in escrow, or other deposit of money for the same purpose.
(B) If, after a customer has received service at the same location
for two years, the customer has made all payments for service in a
timely manner, determined in accordance with standards printed on
billing statements, the deposit shall be refunded to the customer, with
interest accrued at a rate of not less than five percent per annum. For
purposes of this subsection, the phrase `service at the same location
for two years' includes periods of service at the same location
accumulated prior to the effective date of this section.
(C) At the end of each calendar year, unclaimed deposits shall be
transferred to the general fund of the municipality."
B. This section takes effect upon approval of the Governor, except
that subsection (B) of Section 6-1-45 takes effect January 1, 1998.
SECTION 10. This act takes effect upon approval by the Governor.
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