South Carolina General Assembly
113th Session, 1999-2000

Download This Bill in Microsoft Word format

Bill 1303


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Bill Number:                      1303
Type of Legislation:              General Bill GB
Introducing Body:                 Senate
Introduced Date:                  20000404
Primary Sponsor:                  Hayes
All Sponsors:                     Hayes
Drafted Document Number:          l:\council\bills\swb\5129mm00.doc
Residing Body:                    Senate
Current Committee:                Judiciary Committee 11 SJ
Subject:                          Joint Agency Act, Political Subdivisions, 
                                  State Agencies, School districts


                        History

Body    Date      Action Description                     Com     Leg Involved
______  ________  ______________________________________ _______ ____________
Senate  20000404  Introduced, read first time,           11 SJ
                  referred to Committee


              Versions of This Bill

View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO AMEND TITLE 6, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LOCAL GOVERNMENTS, BY ADDING CHAPTER 24 SO AS TO ENACT THE "JOINT AGENCY ACT" AND TO PROVIDE FOR COUNTIES, MUNICIPALITIES, SCHOOL DISTRICTS, SPECIAL PURPOSE DISTRICTS, AND OTHER POLITICAL SUBDIVISIONS OF THE STATE JOINTLY TO UNDERTAKE THE ACQUISITION AND FINANCING OF PROJECTS, SYSTEMS, OR PROGRAMS, TO PROVIDE FOR THE CREATION OF JOINT AGENCIES FOR THAT JOINT PURPOSE BY SPECIFYING THEIR METHOD OF FORMATION, THEIR MEMBERSHIP, AND THE METHOD OF THEIR GOVERNANCE, TO PROVIDE FOR THE POWERS OF JOINT AGENCIES, INCLUDING THEIR RELATIONSHIPS, CONTRACTUAL AND OTHERWISE, AND THOSE OF THEIR MEMBERS, AND TO PROVIDE FOR FINANCING OF UNDERTAKINGS OF JOINT AGENCIES AND THE OBLIGATIONS OF THEIR MEMBERS IN CONNECTION WITH THE FINANCING.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. (A) The General Assembly finds:

(1) the health, safety, and welfare of the people of the State of South Carolina require the provision of certain services;

(2) Section 13, Article VIII of the Constitution of the State of South Carolina provides that any county, incorporated municipality, or other political subdivision may agree with the State or with another political subdivision for the joint administration of functions and joint exercise of powers and the sharing of related costs;

(3) in many instances, the public would benefit from more efficient and better services if projects were undertaken by two or more political subdivisions for the benefit of the residents of both;

(4) in many instances, individual political subdivisions are unable to provide services that could be provided if undertaken jointly by more than one political subdivision; and

(5) there is no general mechanism for the joint undertaking of powers shared in common by political subdivisions, which lack is detrimental to the public health, safety, and welfare and inconsistent with the intent of home rule.

(B) It is the intent of the General Assembly to provide to counties, municipalities, school districts, special purpose districts, and other political subdivisions a mechanism for the joint exercise of their powers, joint administration of functions, and sharing of related costs so as to ensure that the residents of this State are provided with governmental services as efficiently and inexpensively as possible. To accomplish those goals, the General Assembly intends to empower political subdivisions to create joint agencies to provide for the joint exercise of powers, joint administration of functions, and sharing of costs in a convenient and predictable manner.

SECTION 2. Title 6 of the 1976 Code is amended by adding:

"CHAPTER 24

Joint Agency Act

Section 6-24-10. This chapter may be cited as the 'Joint Agency Act'.

Section 6-24-20. As used in this chapter:

(1) 'Cost', with respect to a project, means:

(a) all costs of planning, designing, constructing, acquiring, and financing the project, including fees for professional services, costs of insurance, and costs for principal and interest, during planning, designing, and construction and for up to one year after completion of construction;

(b) all costs associated with establishing necessary or desirable reserves in connection with a project; and

(c) other expenditures of the joint agency incidental, necessary, or convenient to the acquisition, construction, implementation, reconstruction, improvement, enlargement, or extension of a project.

If a project does not involve the acquisition or construction of a facility, 'cost' includes all costs of the undertaking or funding of the undertaking. In either case, 'cost' may include those administration expenses a joint agency considers appropriate.

(2) 'Governing body' means the board, council commission, or other duly constituted governing body of a governmental entity.

(3) 'Governmental entity' means any county, incorporated municipality, school district, special purpose district, or other political subdivision of a state and any agency, instrumentality, board, or commission of a state or a political subdivision of a state.

(4) 'Joint agency' means a public body and body corporate and politic organized in accordance with the provisions of this chapter.

(5) 'Member' of a joint agency means each governmental entity that has agreed to create a joint agency to undertake the ownership, operation, maintenance, financing, or contractual use of a project.

(6) 'Project' means a project or other undertaking, including the acquisition or construction of a facility or system of facilities, that each member of the joint agency is authorized to pursue.

(7) 'State' means the State of South Carolina.

Section 6-24-30. (A) In addition and supplemental to other powers granted to governmental entities of the State, a governmental entity, to create a joint entity pursuant to this chapter, may:

(1) jointly plan, finance, develop, acquire, purchase, sell, lease, construct, reconstruct, improve, enlarge, own, operate, and maintain a project situated within the State with one or more governmental entities and make plans and enter into contracts in connection with the project consistent with the provisions of this chapter and necessary or appropriate;

(2) undertake the exercise of any administrative function or power jointly with one or more governmental entities and make plans and enter into contracts in connection with that exercise consistent with the provisions of this chapter and necessary or appropriate; and

(3) agree to share the costs of a like undertaking with another governmental entity as is appropriate.

Each governmental entity agreeing to act jointly must have the legal capacity, power, and authority, by charter, act, constitution, or other law, to so act on its own. This section does not grant any authorization other than as is specifically provided. Each governmental entity may make plans and enter into contracts severally in connection with the projects described consistent with the provisions of this chapter and necessary or appropriate.

(B) If a governmental entity becomes a tenant-in-common pursuant to this section it may waive by contract its right of partition, either in kind or by sale. The power and right to enter into agreements to waive the right of judicial partition authorized by this section are in addition to powers and rights authorized elsewhere.

Section 6-24-40. (A) A governmental entity by resolution or ordinance, as appropriate, may determine that it is in its best interests and those of its residents to create a joint agency with one or more governmental entities for the purpose of:

(1) undertaking the planning, financing, development, acquisition, purchase, construction, reconstruction, improvement, enlargement, ownership, sale, lease, operation, or maintenance of a project or other activities constituting a project and make available the services provided by the project;

(2) undertaking the exercise of any administrative function or power and making plans and entering into contracts in connection with that exercise consistent with the provisions of this chapter and necessary or appropriate; or

(3) sharing the costs of any such undertaking with one or more governmental entities.

(B) The resolution or ordinance required by Section 6-24-40(A) must include one or more of the following findings about the proposed joint agency:

(1) it is able to plan, develop, acquire, purchase, construct, reconstruct, improve, enlarge, own, sell, lease, operate, or maintain a project, administer a function, or exercise a power more efficiently and economically than its members operating individually;

(2) it is able to undertake a project or exercise a power for the benefit of its members, but one or more of its members otherwise would be unable to undertake a similar project or exercise the power acting individually;

(3) it is able to finance the cost of a project more efficiently and economically than would its members acting individually or, to the extent financing is required in connection with the undertaking, it realizes better financial market acceptance if only one entity is responsible for issuing all of the bonds and incurring all other debt required for the project;

(4) fiscal savings and other advantages are obtained by providing a separate entity responsible for the:

( i) acquisition, purchase, construction, ownership, or operation of, or otherwise undertaking, a project; or

(ii) administering a function or power.

(C) If a governmental entity adopts an ordinance or resolution pursuant to Section 6-24-40(A), notice of the adoption must be published once a week for two consecutive weeks in a newspaper of general circulation within the county in which the governmental entity is located or, if the governmental entity is located in two or more counties, in each of the counties, or, if the governmental entity is an agency, instrumentality, board, or commission of the State, in a newspaper of general circulation within the State. A person affected by the action of the governmental entity may challenge the adoption by action de novo instituted in the court of common pleas for the county in which the governmental entity is located or, if the governmental entity is located in two or more counties, in one of the counties, or, if the governmental entity is an agency, instrumentality, board, or commission of the State, in Richland County, within twenty days following the last publication of the notice.

Section 6-24-50. (A) Upon fulfilling the requirements of Section 6-24-40, the governmental body of each governmental entity participating in the proposed joint agency shall appoint by ordinance or resolution one representative to the proposed joint agency. After the appointment of all representatives, the joint agency shall file with the Secretary of State an application signed by the representative of each of the proposed members. The application must include:

(1) names of all the proposed members and their respective appointed representatives;

(2) a certified copy of:

( i) the resolution or ordinance of each member determining it is in its best interests or the best interests of those it serves to participate in the proposed joint agency; and

(ii) the resolution or ordinance appointing the member's representative;

(3) a statement of desire that the joint agency be organized as a public body and a body corporate and politic pursuant to this chapter;

(4) the proposed name for the joint agency; and

(5) the methods of appointment or election, removal, or filling of vacancies of members of the board of directors, including the number of directors appointed or elected by each member.

(B) The Secretary of State shall file the application after examining it and determining that it complies with the requirements of subsection (A) and that the proposed name of the joint agency is not identical to that of another corporation of the State or an agency or instrumentality, or so similar as to lead to confusion and uncertainty.

(C) The Secretary of State then shall issue and file a corporate certificate. The corporate certificate must include the names of the members and the name of the joint agency. The existence of the joint agency as a public body corporate and politic under the proposed name begins when the corporate certificate is issued by the Secretary of State. Notice of the issuance of the corporate certificate must be given to all members of the joint agency by the Secretary of State.

(D) In any suit, action, or proceeding involving the validity or enforcement of or otherwise relating to a contract of a joint agency, the joint agency is presumed conclusively to have been established in accordance with the provisions of this chapter upon proof of the issuance of the certificate by the Secretary of State, absent a showing of fraud. A copy of the certificate, duly certified by the Secretary of State, is admissible in evidence in any suit, action, or proceeding and is conclusive proof of the filing and contents.

(E) The joint agency may amend the application by filing a certificate of amendment with the Secretary of State, reciting that it has been approved by a majority of the directors then in office and signed by the chairman or the vice chairman, as elected pursuant to Section 6-24-60(B) of this chapter. The Secretary of State shall file the certificate of amendment after examining it and determining that it complies with the requirements of this subsection.

Section 6-24-60. (A) Management and control of the joint agency is vested in a board of directors appointed or elected pursuant to, and consisting of the number of directors specified in, the application as filed or as amended. The application may provide that one or more officers or employees of the members may serve ex officio as members of the board of directors of the joint agency. Each director has at least one vote and has additional votes as specified in the application, and each director serves at the pleasure of the governing body by which he was appointed, unless otherwise specified in the application. Before assuming his duties a director shall take and subscribe to an oath, before a person authorized by law to administer oaths, to execute the duties of the office faithfully and impartially. A record of each oath must be filed with the governing body of the appointing governmental entity.

(B) The board of directors of the joint agency shall elect annually, with each director having one vote, one of the directors as chairman, another as vice-chairman, and other persons who may be, but need not be, directors as treasurer, secretary, and, if desired, assistant secretary. The office of treasurer may be held by the secretary or assistant secretary. The board of directors also may appoint additional officers as it considers necessary. The secretary or assistant secretary of the joint agency shall keep a record of the proceedings of the joint agency and the secretary is the custodian of all books, records, documents, and papers filed with the joint agency, the minute book or journal of the joint agency, and its official seal.

(C) A majority of the directors of the joint agency then in office constitutes a quorum. A vacancy or vacancies on the board of directors of the joint agency does not impair the right of a quorum to exercise all rights and perform all duties of the joint agency. An action taken by the joint agency pursuant to this chapter may be authorized by resolution at a regular or special meeting held pursuant to notice in accordance with bylaws of the joint agency, and each resolution takes effect immediately, without publication or posting. Except as otherwise provided in this chapter or in the bylaws of the joint agency, a majority of the votes which the directors present are entitled to cast, with a quorum present, is necessary and sufficient to take any action or to pass a resolution. A director of a joint agency may not receive compensation solely for the performance of duties as a director, but each director may be paid per diem, mileage, and subsistence expenses as provided by law for state boards, committees, and commissions.

(D) Unless otherwise provided in the application, a director or officer of the joint agency may resign at any time. The members of the joint agency may not remove a duly elected or appointed director of the joint agency except as specifically provided in the application. Vacancies on the board of directors resulting from resignation, removal, or other incapacity of a director must be promptly filled as provided in the application.

Section 6-24-70. (A) After a joint agency is created, another governmental entity may become a member by:

(1) adopting a resolution or ordinance complying with the requirements of Section 6-24-40, including publication of notice;

(2) submitting an application to the joint agency; and

(3) receiving approval of the application by resolution from the governing body of each member of the joint agency. The approval must include approval of any changes to the board of directors resulting from the addition.

The additional governmental entity is not a member of the joint agency for any purpose until the application and certificate described in Section 6-24-50 have been amended to reflect its membership in the joint agency and all changes resulting from the membership, including changes as may be required to the composition and powers of the board of directors of the joint agency.

(B) A member may withdraw from a joint agency by resolution or ordinance of its governing body. All contractual rights acquired and contractual obligations incurred by a member while it was a member of the joint agency remain in full force and effect. Upon withdrawal of a member, the board of directors must be reduced by the number of directors appointed by the withdrawing member. The withdrawing governmental entity is a member of the joint agency for all purposes until the application and certificate described in Section 6-24-50 have been amended to reflect the withdrawal of the governmental entity from the joint agency and all changes resulting from the withdrawal, including changes as may be required to the composition and powers of the joint agency.

(C) Following the withdrawal of one or more members, if there remains only one member of the joint agency, the joint agency shall continue in existence until the joint agency is dissolved pursuant to Section 6-24-80 of this chapter.

(D) The members of a joint agency may modify the composition of the board of directors, to increase or decrease the number of directors or to change the number of directors appointed by each member, through the adoption of a resolution approving the modification by the governing body of each member. The modification is not effective for any purpose until the application and certificate described in Section 6-24-50 have been amended to reflect the modification.

Section 6-24-80. If the board of directors of a joint agency and the governing body of each of its members determine by resolution or ordinance that the purposes for which the joint agency was formed have been fulfilled substantially and that all bonds issued and all other obligations incurred by the joint agency have been paid or satisfied fully, the board of directors of the joint agency and the governing body of each of its members may declare the joint agency to be dissolved. On the effective date of the resolution or ordinance dissolving the joint agency, title to all funds and other property owned by the joint agency at the time of the dissolution must be disbursed to the members of the joint agency according to its bylaws.

Section 6-24-90. The board of directors of a joint agency may create an executive committee, the composition of which must be set forth in the bylaws of the joint agency. The executive committee may exercise powers during intervals between the board's meetings as provided by the board. The terms of office of the members of the executive committee and the methods of filling vacancies must be fixed by the bylaws of the joint agency.

Section 6-24-100. Each joint agency has the rights and powers of a public body politic and corporate of the State including, without limitation, all the rights and powers necessary or convenient to carry out and effectuate the provisions of this chapter including, but not limited to, rights and powers to:

( 1) adopt and amend bylaws for the regulation of its affairs and the conduct of its business and prescribe rules and policies and promulgate regulations in connection with the performance of its functions and duties;

( 2) adopt an official seal and alter it at pleasure;

( 3) maintain an office at a place it determines;

( 4) sue and be sued in its own name and to plead and be impleaded;

( 5) receive, administer, and comply with the conditions and requirements of a gift, grant, or donation of property or money;

( 6) acquire by purchase, lease, gift, or otherwise acquire or obtain options for the acquisition of property, real or personal, improved or unimproved, including an interest in land less than the fee in conformity with state law;

( 7) sell, lease, exchange, transfer, or otherwise dispose of, or grant options for those purposes with respect to, real or personal property, insurance, recovery, or condemnation award;

( 8) pledge or assign any money, rents, charges, or other evidence of indebtedness of the joint agency for the purpose of providing funds for its corporate purposes;

( 9) borrow money and issue notes, bonds, or other evidence of indebtedness of the joint agency for the purpose of providing funds for its corporate purposes;

(10) authorize the construction, operation, or maintenance of a project by a person, firm, or corporation, including political subdivisions and agencies of a state of the United States;

(11) acquire by negotiated purchase or lease from one of its members one or more projects which may be an existing project, project under construction, or other project, either individually or jointly with one or more other governing bodies or joint agencies in this State;

(12) fix, charge, and collect rents, rates, fees, and charges in connection with a project;

(13) make and execute contracts and other instruments necessary or convenient in the exercise of the powers and functions of the joint agency pursuant to this chapter, including contracts with persons, firms, corporations, and others;

(14) apply to the appropriate agencies of the State, the United States, or any state of the United States, and to another proper agency for necessary permits, licenses, certificates, or approvals and to construct, maintain, and operate projects in accordance with those licenses, permits, certificates, or approvals; and

(15) employ engineers, architects, attorneys, appraisers, financial advisors, and other consultants and employees as required in the judgment of the joint agency and to fix and pay their compensation from funds available to the joint agency for that purpose.

Section 6-24-110. (A) Any governmental entity, whether or not a member of the joint agency, may contract with the joint agency for its present or future service requirements, including the capacity and output of one or more specified projects. The contract may provide that the contracting governmental entity is obligated to make the payments required by the contract whether or not a project is completed, operable, or operating and that payments pursuant to the contract are not subject to reduction, whether by offset or otherwise, and are not conditioned upon the performance or nonperformance of the joint agency or a member of the joint agency pursuant to the contract or other instrument. A contract entered into between a joint agency and its members also may provide that the remaining members of the joint agency must assume on a proportional basis the obligations of a defaulting member if one or more of the members defaults in the payment of the obligations.

(B) A joint agency may perform its functions, furnish its services, make charges for them, and participate in their financing by contract with an individual or corporation or with the United States government or an agency of it subject to the general law and constitution of this State regarding such matters, except within a designated service area. For the purposes of this section, 'designated service area' means an area in which the particular service is already being provided, has been budgeted, or for which funds have been applied by a governmental entity that is not a member of the joint agency, as certified by the governing body of the governmental entity, except that this limitation does not apply with respect to the service area if the governing body of the governmental entity has given the joint agency or any member of it permission to provide the service within its service area.

(C) A contract entered into between a governmental entity and a joint agency may be in the form of an obligation or bond issued under another statute authorizing or permitting the incurring of indebtedness by the governmental entity. Notwithstanding other provisions of law prohibiting or limiting the incurring of indebtedness by the governmental entity, it may sell an obligation by negotiation to the joint agency in the form of a single instrument payable to the joint agency on terms as the joint agency considers appropriate. If the other law requires the establishment or maintenance of reserves or other funds or accounts, intended as security for the holders of the obligations, the joint agency may elect to eliminate or waive those requirements. To the extent any other law provides a lien or permits the pledge of property or revenues as security for obligations issued under it, the joint agency may be the direct beneficiary of the lien or pledge or may waive the requirement.

(D) Notwithstanding the provisions of another law to the contrary, a contract between a governmental entity and a joint agency may extend for a period not exceeding fifty years from the date services are first provided pursuant to the contract, and the execution and effectiveness of the contract is not subject to authorizations or approvals by the State or any agency, commission, or instrumentality or political subdivision of the State.

(E) Except as specifically provided by the terms of the contract, payments by a governmental entity pursuant to a contract with a joint agency are not a legal or equitable pledge, charge, lien, or encumbrance upon property of the governmental entity or upon its income, receipts, or revenues. The faith and credit or the taxing power of the governmental entity may be pledged for the payment of an obligation under the contract only to the extent the contract obligation is treated like a general obligation debt of the governmental entity and is subject to the same constitutional debt limitations as other general obligation debts of the governmental entity.

(F) A governmental entity may authorize a joint agency to act on its behalf in the same manner and to the same extent as any agency, commission, or employee of the governmental entity. A governmental entity may exercise its governmental powers on behalf of a joint agency in instances where the exercise of the power cannot be delegated.

Section 6-24-120. A joint agency may incur debt for any of its purposes and may issue bonds pledging the revenues derived from all or any of its projects and additions and betterments or extensions or contributions or advances from its members to the payment of both principal and interest.

Section 6-24-130. A joint agency may not undertake a project requiring financing, in whole or in part, with the proceeds of bonds, for which the payment of principal or interest is assured directly or indirectly by a contract with one or more members, without the approval of the governing body of each member that provides assurance. For these purposes, a member has not assured payment on bonds unless its obligation pursuant to the contract is absolute and without regard to the completion or operation of the project.

Section 6-24-140. (A) A joint agency may issue at one time, or from time to time, its bonds for the purpose of paying all or part of the cost of the purposes authorized by this chapter. The principal of and the interest on the bonds, and any premium, are payable only from the fund provided for payment. The bonds of each issue may be sold at public or private sale. Notwithstanding another provision of law to the contrary, the bonds may be sold at a price, and bear interest at a rate or rates, as determined by the board of directors of the joint agency. The bonds of each issue must be dated and must mature in amounts and at a time, not exceeding fifty years from their respective date, as determined by the board of directors of the joint agency, and may be redeemable before maturity at a price and by terms and conditions as fixed by the board of directors of the joint agency before or at the time of the issuance of the bonds. The board of directors of the joint agency shall determine the form and the manner of execution of the bonds, including interest coupons attached to them, and must fix the denomination of the bonds and the place of payment of principal and interest, which may be at a bank or trust company inside or outside the State. If an officer whose signature or signature facsimile appears on a bond or coupons ceases to be an officer before the delivery of the bonds, the signature or facsimile is valid and sufficient for all purposes as if he had remained in office until delivery. The board of directors of the joint agency also may provide for the authentication of the bonds by a trustee or fiscal agent. The bonds may be issued in fully registered form or under a book-entry-only system, as the board of directors of the joint agency determines.

(B) The proceeds of the bonds of each issue may be used only for the purposes for which the bonds were issued, and must be disbursed in the manner the board of directors of the joint agency provides in the resolution authorizing the issuance of the bonds or in a trust agreement securing the issuance. The joint agency may issue interim receipts or temporary bonds exchangeable for definitive bonds when the bonds are executed and available for delivery. The joint agency also may provide for the replacement of bonds which are mutilated, destroyed, or lost.

(C) Bonds may be issued pursuant to this chapter without obtaining the consent or approval of the State or any political subdivision, or agency, commission, or instrumentality of the State.

Section 6-24-150. The board of directors of the joint agency may elect to have bonds issued pursuant to this chapter secured by a trust agreement between the joint agency and a corporate trustee, which may be any trust company or bank having the powers of a trust company inside or outside the State. The trustee agreement or the resolution providing for the issuance of the bonds may contain provisions for protecting and enforcing the rights and remedies of the bondholders and of the trustee as may be reasonable and proper and not in violation of law, and may restrict the individual right of action by bondholders. The trust agreement or the resolution providing for the issuance of the bonds may contain covenants including, but not limited to, the:

( 1) assignment or pledge of:

(a) all or a part of the revenues derived from the project financed by the bonds; or

(b) the contracts and any collateral between the joint agency and any of its members or other governmental entities;

( 2) rents, rates, fees, and charges to be established, maintained, and collected and the use and disposal of revenues, gifts, grants, and funds received by the joint agency;

( 3) setting aside, investment, regulation, and disposition of reserves;

( 4) custody, collection, securing, investment, and payment of monies held for the payment of bonds;

( 5) limitations or restrictions on the purposes to which the proceeds of sale of issued bonds may be applied;

( 6) limitations or restrictions on the issuance and security of additional bonds or the refunding of outstanding or other bonds;

( 7) procedure for amending the terms of a contract with bondholders;

( 8) events of default and the rights and liabilities arising upon default, and the terms and conditions upon which bonds issued pursuant to this chapter are or may be declared due before maturity, and the terms and conditions upon which that declaration and its consequences may be waived;

( 9) preparation and maintenance of a budget;

(10) retention or employment of engineers, independent auditors, and other technical consultants;

(11) limitations on, or the prohibition of, free service to a person, firm, or corporation, public or private;

(12) acquisition and disposal of property, except that a project or part of a project may not be mortgaged by the trust agreement or resolution. The joint agency may mortgage other property owned by it;

(13) provisions for insurance and for accounting reports and their inspection and audit;

(14) continuing operation and maintenance of the project.

Section 6-24-160. (A) The joint agency shall fix, charge, and collect rents, rates, fees, and charges for services provided by it or the use of a project so as to provide revenues, for so long as the bonds issued pursuant to this chapter are outstanding and unpaid, at least sufficient together with other available funds to:

(1) pay all costs of and charges and expenses in connection with the proper operation and maintenance of its projects and for all necessary repairs, replacements, or renewals;

(2) pay when due the principal of, and interest and any premiums on, all bonds payable from the revenues;

(3) create and maintain reserves and comply with covenants required by a resolution or trust agreement authorizing and securing bonds; and

(4) pay all other amounts the joint agency may be obligated by law or contract to pay from the revenues.

(B) A pledge made by a joint agency pursuant to this chapter is valid and binding from the date the pledge is made. The revenues, securities, and other monies pledged and held or received afterwards by the joint agency or fiduciary are subject immediately to the lien of the pledge without physical delivery of it or other act, and the lien of the pledge is valid and binding as against all parties having claims in tort, contract, or otherwise against the governmental entity or joint agency without regard to whether the parties have notice of it.

Section 6-24-170. The resolution authorizing the bonds of an issue or the trust agreement securing the bonds may provide that the monies may be invested temporarily and reinvested pending disbursement in securities and other investments provided in the resolution or trust agreement. The resolution or trust agreement must provide that a bank or trust company with which the monies are deposited act as trustee of the monies and hold and apply them for the purposes of this joint agency, subject to regulation as this chapter and the resolution or trust agreement provide.

Section 6-24-180. A holder of bonds issued pursuant to this chapter and the trustee pursuant to a trust agreement entered into pursuant to this chapter may protect and enforce, either at law or in equity, by suit, action, mandamus, or other proceeding, all rights and compel performance of all duties arising out of the law of the State or terms of the trust agreement or resolution or other contract, except to the extent the rights are restricted by the trust agreement or the resolution authorizing the issuance of the bonds.

Section 6-24-190. All bonds issued pursuant to this chapter are investment securities within the meaning of and for all the purposes of Chapter 8, Title 36 of the 1976 Code, subject only to the provisions of the bonds pertaining to registration, regardless of whether or not the bonds authorized by this chapter are of such form and character as to be investment securities pursuant to Chapter 7, Title 36 of the 1976 Code.

Section 6-24-200. It is lawful for all executors, administrators, guardians, committees, and other fiduciaries to invest monies in their hands in bonds issued pursuant to this chapter.

Section 6-24-210. The bonds issued pursuant to this chapter are special obligations of the joint agency issuing them. The principal and interest and any premium on the bonds are not payable from the general fund of the joint agency, nor are they a legal or equitable pledge, charge, lien, or encumbrance upon any of its property, income, receipts, or revenues, except the funds which are pledged pursuant to the resolution authorizing the bonds or the trust agreement securing the bonds. Except as specifically provided with respect to a general obligation of a governmental entity, the faith and credit and the taxing power of the State or of any governmental entity may not be pledged for the payment of the principal or interest on the bonds, and a holder of the bonds may not compel the exercise of the taxing power by the State and any governmental entity or the forfeiture of any of this property in connection with any default on the bonds. A bond must recite in substance that the principal of and interest on the bond is payable only from the revenues pledged to its payment and that the joint agency is not obligated to pay the principal or interest except from those revenues.

Section 6-24-220. A joint agency may provide by resolution for the issuance of refunding bonds of the joint agency for the purpose of refunding outstanding bonds issued pursuant to this chapter, including the payment of a redemption premium on them and interest accrued to the date of their redemption. The refund of outstanding bonds may be exercised as considered desirable by the board of the joint agency. The issuance of the refunding bonds, their maturities and other terms, the rights of their holders, and the rights, duties, and obligations of the joint agency in respect to the refunding bonds must be governed by the provisions of this chapter relating to the issuance of bonds to the extent those provisions apply.

Section 6-24-240. (A) Personnel employed or appointed by a member of a joint agency to work for it have the same authority, rights, privileges, and immunities, including coverage pursuant to workers' compensation laws, that the officers, agents, and employees of the appointing member enjoy within the territory of that member when they are acting within the scope of their authority or in the course of their employment.

(B) Personnel employed or appointed directly by a joint agency may participate in the South Carolina Retirement System if they are residents of this State with the same rights, privileges, obligations, and responsibilities as if they were employees of a governmental entity.

Section 6-24-250. At the close of each fiscal year, a joint agency shall submit an annual report of its activities for the preceding year to each member, including a complete operating and financial statement covering the operations of the joint agency during the year. The joint agency shall cause an audit of its books of record and accounts to be made at least once a year by a certified public accountant, and the cost of the audit may be treated as a part of the cost of construction of a project or otherwise as part of the expense of administration of a project covered by the audit.

Section 6-24-260. (A) The board of directors of a joint agency may make application and enter into contracts for and accept grants-in-aid and loans from the federal and state governments and their agencies or political subdivisions, including members, for planning, acquiring, constructing, expanding, maintaining, and operating a project or facility or participating in a reserve or development program or performing a function which a member of the joint agency may authorize by general or local law to provide or perform.

(B) The board of directors of a joint agency may:

(1) enter into and carry out contracts with the state or federal government or an agency or institution through which the government, agency, or institution grants financial or other assistance to the member or joint agency;

(2) accept assistance or funds granted or loaned by the state or federal government with or without a contract;

(3) agree to and comply with reasonable conditions imposed upon grants or loans; and

(4) make expenditures from granted funds.

Section 6-24-270. A joint agency formed by governmental entities which themselves possess the power of eminent domain for the purpose for which the joint agency was formed possesses the power of eminent domain within the jurisdictional limits of its members in accordance with Sections 5-7-50 and 4-9-30 or other provision of law as may be applicable so as to effectuate the purposes of this chapter and may exercise the power as provided in Title 28 of the 1976 Code.

Section 6-24-280. A director or officer of a joint agency, or a person acting on his behalf, is not subject to personal liability by reason of carrying out any of the powers expressly or impliedly provided in this chapter while acting within the scope of his authority.

Section 6-24-290. This chapter provides an additional method for accomplishing the authorized acts, and is supplemental to powers conferred by existing laws and not in derogation of powers now existing. If a provision of this chapter is inconsistent with the provisions of other general, special, or local law, the provisions of this chapter control.

Section 6-24-300. The provisions of this chapter must be liberally construed.

Section 6-24-310. If one or more of the provisions of this chapter, or its application, is determined by a court of competent jurisdiction to be contrary to law or invalid for any reason, then the provision is null and void, must be severed from the remaining provisions of this chapter, and does not affect the validity of the remaining provisions of this chapter."

SECTION 3. This act takes effect upon approval by the Governor.

----XX----


This web page was last updated on Wednesday, December 9, 2009 at 9:11 A.M.