Current Status Bill Number:4952 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19980402 Primary Sponsor:Harrison All Sponsors:Harrison and Young Drafted Document Number:pt\1854dw.98 Residing Body:House Current Committee:Judiciary Committee 25 HJ Subject:Special purpose districts, governing body's authority to levy millage clarified; Political Subdivisions
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
House 19980602 Recommitted to Committee 25 HJ
House 19980528 Debate adjourned
House 19980527 Debate adjourned until
Thursday, 19980528
House 19980521 Committee report: Favorable with 25 HJ
amendment
House 19980506 Recommitted to Committee, 25 HJ
on Point of Order
House 19980505 Request for debate by Representative Harrison
Young
Klauber
Felder
Harrell
Lloyd
Pinckney
Cave
J. Smith
Simrill
Hinson
Kirsh
House 19980429 Committee report: Favorable 25 HJ
House 19980402 Introduced, read first time, 25 HJ
referred to Committee
View additional legislative information at the LPITS web site.
Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
May 21, 1998
H. 4952
S. Printed 5/21/98--H.
Read the first time April 2, 1998.
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
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:
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.
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
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
ESTIMATED FISCAL IMPACT ON GENERAL FUND EXPENDITURES IS:
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
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.