Current Status Bill Number:757 Ratification Number:409 Act Number:397 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19970515 Primary Sponsor:Ravenel All Sponsors:Ravenel, Mescher Drafted Document Number:res1443.ar Companion Bill Number:4235 Date Bill Passed both Bodies:19980603 Date of Last Amendment:19980602 Governor's Action:S Date of Governor's Action:19980610 Subject:Special purposes districts, commissioners board; Elections, Political Subdivisions, Referendum, Dissolution of, services
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
------ 19980630 Act No. A397
------ 19980610 Signed by Governor
------ 19980604 Ratified R409
Senate 19980603 Concurred in House amendment,
enrolled for ratification
House 19980603 Read third time, returned to Senate
with amendment
House 19980602 Read second time
House 19980602 Amended
House 19980527 Request for debate by Representative Young
Harrison
Woodrum
Robinson
Cotty
Quinn
Law
McGee
House 19980526 Debate adjourned until
Wednesday, 19980527
House 19980520 Committee report: Favorable 25 HJ
House 19980428 Introduced, read first time, 25 HJ
referred to Committee
Senate 19980423 Amended, read third time,
sent to House
Senate 19980414 Read second time, ordered to
third reading with notice of
general amendments
Senate 19980414 Committee amendment adopted
Senate 19980408 Co-Sponsor added by Senator Mescher
Senate 19980408 Committee report: Favorable with 11 SJ
amendment
Senate 19970515 Introduced, read first time, 11 SJ
referred to Committee
View additional legislative information at the LPITS web site.
(A397, R409, S757)
AN ACT TO AMEND SECTION 6-11-70, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ELECTION OF BOARD MEMBERS OF A SPECIAL PURPOSE DISTRICT, SO AS TO PROVIDE THAT CERTAIN PROVISIONS OF THIS SECTION DO NOT APPLY TO ELECTIONS OF COMMISSIONERS HELD PURSUANT TO ARTICLE 2, CHAPTER 11, TITLE 6; TO AMEND CHAPTER 11, TITLE 6 BY ADDING ARTICLES 2 AND 15 SO AS TO PROVIDE A PROCEDURE BY WHICH ELECTORS RESIDING IN A SPECIAL PURPOSE DISTRICT MAY PETITION FOR A REFERENDUM ON THE QUESTION OF WHETHER THE GOVERNING BODY OF A DISTRICT SHOULD BE ELECTED BY POPULAR VOTE OF THE QUALIFIED ELECTORS OF THE DISTRICT AND A PROCEDURE FOR THE DISSOLUTION OF A SPECIAL PURPOSE DISTRICT AFTER A TWO-THIRDS VOTE OF THE QUALIFIED ELECTORS OF THE DISTRICT VOTING IN THE REFERENDUM; TO AMEND THE 1976 CODE BY ADDING SECTION 6-11-271 SO AS TO CLARIFY THE AUTHORITY OF CERTAIN SPECIAL PURPOSE DISTRICTS TO LEVY MILLAGE AND PROVIDE GOVERNMENTAL SERVICES; AND TO REQUIRE ALL BOND REFERENDUMS SOUGHT BY A DISTRICT UNDER THIS ACT TO BE VOTED UPON IN GENERAL ELECTIONS.
Be it enacted by the General Assembly of the State of South Carolina:
Election of board members
SECTION 1. Section 6-11-70(C) of the 1976 Code, as last amended by Act 160 of 1993, is further amended to read:
(C) The provisions of subsection (A) do not apply to districts in counties that have adopted, by ordinance, uniform election dates for districts within those counties before the effective date of this section. The provisions of subsections (A) and (B) do not apply to districts in which the commissioners are elected pursuant to a petition and referendum provided for in Article 2 of Chapter 11 of Title 6.
Referendum concerning election of board
SECTION 2. Chapter 11, Title 6 of the 1976 Code is amended by adding:
Section 6-11-350. (A) For the purposes of this article, '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. This article applies only to those special purpose districts, the governing bodies of which were not, as of January 1, 1997, elected directly by the qualified electors residing in the district. This article does not apply to (1) any special purpose district, the boundaries of which include areas within more than one county, or (2) any special purpose district which, as of April 1, 1998, pursuant to written contract provided one or more of its authorized services to areas outside the State. The referendum authorized in this article must be held on the date of the general election held on the first Tuesday following the first Monday in November in even-numbered years.
(B) The qualified electors residing in a special purpose district may by petition request a referendum on the question of electing the governing body of such district by popular vote of the qualified electors in the district. The petition must contain the referendum question and the names, signatures, addresses, voter registration numbers, and dates of signature of at least fifteen percent of the qualified electors of the district. The petition must contain a geographical description of the boundaries of the district and a map clearly setting out the lines of the district in a county, which must be supplied by the district within thirty days of a request of any elector residing in the district.
(C) The original petition must be delivered to the county board of voter registration in the county in which the special purpose district is located. The board must review each name on the petition to determine if each signature is that of a qualified elector in the district and must verify the number of valid signatures of registered electors contained on the petition submitted and the number of qualified electors in the district. Signatures dated more than one hundred eighty calendar days prior to the date of the submission of the petition shall be disregarded and shall not be counted toward the fifteen percent requirement pursuant to this section. The board shall notify the clerk of the county governing body and the governing body of the special purpose district of the result of the verification process. A copy of the text of the petition which indicates the date the petition was received by the board must be delivered to the clerk of the county governing body and the governing body of the special purpose district.
(D) The petition must be submitted to the board before August first of an even-numbered general election year to be considered for inclusion on the ballot in that year. Upon receipt of a petition, the board must review and verify or reject the petition by twelve o'clock noon September first. If the petition is verified as complete, the question must be placed on the general election ballot in November of that same year. The costs associated with any referendum held pursuant to this article must be paid by the special purpose district.
Section 6-11-351. The governing body of a special purpose district may by resolution adopted by majority vote of all members of the governing body request a referendum on the question of election of governing body members be held in accordance with the provisions of this article. If adopted, a certified copy of the resolution and a map clearly setting out the lines of the district in the county must be presented to the county election commission prior to August first of a general election held in an even-numbered year in order for the referendum to be held on the date of the general election in November of that year.
Section 6-11-352. The referendum question must read substantially as follows:
Shall the governing body for the (special purpose district) be elected by popular vote of the qualified electors residing in the (special purpose district) for four-year terms in non-partisan elections during the November general election held in even-numbered years?
Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'.
Section 6-11-353. Notice of the referendum must be published by the governing body of the special purpose district at least three times prior to the referendum, including (i) not less than sixty days prior to the date of the referendum, (ii) two weeks after the first date of publication, and (iii) a date not more than fifteen and not less than ten days prior to the date of the referendum. The notice must appear in a newspaper of general circulation within the special purpose district and contain at a minimum the following:
(1) the full name of the district and its governing body;
(2) the names, addresses, and telephone numbers of the members of the district's governing body;
(3) the existing means of appointment of members of the district's governing body;
(4) the act by which the district was initially created and the year effective;
(5) a brief description of the governmental services provided by the district;
(6) a description of the taxing authority of the district, if any, and the limitations on that taxing authority;
(7) a map showing generally the boundaries of the district;
(8) a list of precincts and polling places in which ballots may be cast;
(9) the purpose of the referendum and the question to be presented to qualified electors;
(10) an explanation of the procedure to be followed for election of members of the district's governing body if the result of the referendum is favorable; and
(11) other additional information required by the general law of the State relating to notices of elections.
Section 6-11-354. (A) Notwithstanding any other provision of law, in a referendum held pursuant to this article, if a majority of electors from the special purpose district voting in the election vote in favor of the election of members of the district's governing body, the county election commission must conduct non-partisan elections as provided in this section. Nothing in this article shall bar any appointed member of the district's governing body from becoming a candidate for an election to the district's governing body in any election.
(B) On the first Tuesday following the first Monday in November in the year immediately following the year of the referendum, the voters shall elect commissioners for all seats on the district's governing body. Candidates must file a statement of intention of candidacy with the county election commission. Except for the initial election of commissioners as provided in subsection (C), all commissioners must be elected on an at-large basis for terms of four years with terms staggered so that a simple majority of the commissioners are elected in a general election in an even-numbered year, and the remaining commissioners are elected at the next preceding and following general elections in even-numbered years. The terms of office of commissioners whose seats are subject to contest in a general election shall expire fourteen days following the general election.
(C) For the initial election of commissioners, all seats shall be considered vacant. From among the commissioners elected in the initial election, a simple majority thereof shall serve terms which expire fourteen days following the general election held three years after the initial election. Those commissioners entitled to serve the initial three-year terms shall be those commissioners equal in number to a simple majority of the membership who received the highest number of votes cast in the initial election. The remaining commissioners shall serve terms which expire fourteen days following the general election held the year following the initial election.
(D) The county board of elections shall conduct and supervise the elections for commissioners in the manner governed by the election laws of this State, mutatis mutandis. Vacancies must be filled in the manner provided in Section 7-13-190."
Dissolution of special purpose districts
SECTION 3. 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 general or special legislation and those districts created by referenda held pursuant to general or special 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. Notwithstanding any other provision of law, a special purpose district may be dissolved in accordance with this article upon a two-thirds vote of the qualified electors of the district voting in the referendum. 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. Before the circulation of a petition for consideration by qualified electors of a district, the entity or entities named in the petition as those which shall assume the assets and liabilities of the district upon dissolution and shall provide the services currently provided by the district (each a 'successor provider') must be provided with a copy of the proposed petition. A successor provider may within one hundred twenty days following receipt of such proposed petition adopt a resolution or ordinance, as appropriate under the general law of the State, by which such successor provider agrees, should a referendum held pursuant to this article 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 such service or services, and is authorized to and shall, before the dissolution of the district, issue such 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 with the consent of the holder thereof. A certified copy of the resolution or ordinance must be forwarded to the governing body of the district and the party submitting the petition within five days of its adoption. Signatures affixed to a petition before the adoption by each successor provider named in it of a resolution or ordinance, as appropriate, in accordance with this paragraph are of no force or effect.
(1) If the successor provider is a county and the county 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 must be established pursuant to the ordinance adopted pursuant to the preceding paragraph, subject to the dissolution of the district. Nothing herein contained 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.
(2) In the event that more than one successor provider is named in the petition or resolution of the governing body of the district, the entities so named, before 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 such agreement must be incorporated by reference into each resolution or ordinance adopted.
Section 6-11-2040. 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 the total 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 6-11-2050. (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 are valid only if:
(1) dated not more than one hundred eighty days prior to the delivery of the petition to the commissioners of election, and
(2) they are 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 6-11-2060. 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 6-11-2070. Upon receipt of a petition pursuant to Section 6-11-2050, and provided that the governing body of the district has received all necessary resolutions or ordinances conforming with Section 6-11-2030 from each successor provider, the governing body shall within thirty days of the petition 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 and the petition by one hundred twenty days before that election. If all required resolutions or ordinances and the petition 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 laws 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) the name of the political subdivision or subdivisions which shall assume the assets and liabilities of the district upon dissolution and, if services are to be continued, 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 one of 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 those 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 with the consent of the holder thereof, 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."
Authority to levy millage clarified
SECTION 4. 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."
Referendums must be voted upon in general elections
SECTION 5. All bond referendums sought by the district under this act must be voted upon in general elections.
Time effective
SECTION 6. This act takes effect upon approval by the Governor.
Approved the 10th day of June, 1998.