South Carolina General Assembly
114th Session, 2001-2002

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Bill 3946

                    Current Status

Bill Number:                      3946
Ratification Number:              159
Act Number:                       78
Type of Legislation:              General Bill GB
Introducing Body:                 House
Introduced Date:                  20010418
Primary Sponsor:                  Cooper
All Sponsors:                     Cooper, Townsend, White, Thompson, Martin 
                                  and Stille
Drafted Document Number:          l:\council\bills\pt\1407dw01.doc
Date Bill Passed both Bodies:     20010621
Date of Last Amendment:           20010621
Governor's Action:                S
Date of Governor's Action:        20010720
Subject:                          Nonprofit corporation, membership may 
                                  elect to become public body politic and 
                                  corporate; Businesses, Charitable 


Body    Date      Action Description                     Com     Leg Involved
______  ________  ______________________________________ _______ ____________
------  20010802  Act No. A78
------  20010720  Signed by Governor
------  20010628  Ratified R159
Senate  20010621  Ordered enrolled for ratification
Senate  20010621  Conference Committee Report adopted    88 SCC
Senate  20010621  Conference Committee Report withdrawn
House   20010621  Conference Committee Report adopted    98 HCC
House   20010621  Recommitted to Conference Committee    98 HCC
House   20010621  Reconsidered vote whereby
                  Conference Committee Report was adopted
House   20010620  Conference Committee Report adopted    98 HCC
Senate  20010607  Conference powers granted,             88 SCC  Waldrep
                  appointed Senators to Committee                O'Dell
                  of Conference                                  Alexander
House   20010607  Conference powers granted,             98 HCC  Harrell
                  appointed Reps. to Committee of                Cooper
                  Conference                                     A. Young
House   20010607  Insists upon amendment
Senate  20010607  Non-concurrence in House amendment
House   20010606  Senate amendments amended,
                  returned to Senate with amendment
House   20010606  Debate adjourned on Senate amendments
------  20010604  Scrivener's error corrected
Senate  20010601  Read third time, returned to
                  House with amendment
Senate  20010601  Committee amendment adopted
Senate  20010531  Unanimous consent for third
                  reading on Friday, 20010601
Senate  20010531  Read second time, carrying over
                  all amendments to third reading
Senate  20010531  Polled out of Committee:               11 SJ
                  Favorable with amendment
Senate  20010502  Introduced, read first time,           11 SJ
                  referred to Committee
House   20010502  Read third time, sent to Senate
House   20010501  Read second time
House   20010426  Recalled from Committee                25 HJ
House   20010418  Introduced, read first time,           25 HJ
                  referred to Committee

              Versions of This Bill
Revised on April 26, 2001 - Word format
Revised on May 31, 2001 - Word format
Revised on June 1, 2001 - Word format
Revised on June 4, 2001 - Word format
Revised on June 6, 2001 - Word format
Revised on June 21, 2001 - Word format

View additional legislative information at the LPITS web site.
(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A78, R159, H3946)


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


SECTION 1. Act 1030 of 1964 was enacted to take advantage of federal funding available through the Farmer's Home Administration Act to provide for the growing need for utility and other services, especially in rural areas. Since that time, the availability of the funding has diminished, and federal and state funding are more often provided from additional sources. The General Assembly finds, under certain conditions, that the not-for-profit corporations organized under Act 1030 of 1964, for the purposes of providing water services, should be granted the right to elect to become public bodies politic and corporate for reasons including, but not limited to, the following:

(1) the opportunity to receive funding, loans, and grants from other sources such as the State Revolving Fund will be increased or enhanced;

(2) the right to participate in a joint municipal water system as authorized under Chapter 25, Title 6 of the 1976 Code will be afforded; and

(3) the cost of borrowing money for infrastructure construction and expansion will be lower and growth demands more economically met.

Procedures for nonprofit corporation providing water and sewer services to become a public service district

SECTION 2. Title 33, Chapter 36 of the 1976 Code is amended by adding:

"Article 8

Election to Become Public Body Politic and Corporate

Section 33-36-1310. (A) For the exclusive purposes of participating in a joint municipal water system as authorized under Chapter 25, Title 6, a nonprofit corporation incorporated for the purposes of providing water or water and sewer services, pursuant to the provisions of this chapter may elect, by resolution, to become a public service district, a public body politic and corporate:

(1) before January 1, 2002, upon a majority vote of its members constituting a quorum present at a duly called and noticed meeting; or

(2) on and after January 1, 2002, upon a majority vote of fifteen percent of its members present or by proxy at a duly called and noticed meeting.

(B) Notice of this meeting must be given by regular mail, addressed to the last known address of the member, and mailed not less than ten days prior to the meeting. The secretary of the corporation shall certify the date of mailing. The notice shall state the purpose, time, and place of the meeting.

(C) Upon a favorable vote, the chief executive officer of the corporation shall petition the Secretary of State to issue a new charter to convert and constitute the nonprofit corporation a public service district, a public body politic and corporate.

Section 33-36-1320. (A) The petition shall include:

(1) the name of the district;

(2) an attached copy of the resolution adopted, certified by the secretary of the corporation;

(3) the name of the current board of directors, their terms of office, and expiration dates;

(4) the desire to become a public body corporate and politic; and

(5) a word description and an attached map showing the present and existing boundaries of the service area.

(B) Upon receipt of the petition, the Secretary of State must verify the contents of the petition and their compliance with subsection (A). Upon verification, the Secretary of State must issue a new charter, referencing the petition, and designating the corporation as a public service district, a public body politic and corporate of the State.

Section 33-36-1330. (A) The existing board of directors and officers shall serve until the expiration of their present terms. Thereafter, and not less than forty-five days prior to any expiration of the term of a board member, the board of directors shall submit to the county legislative delegation the name or names of a person or persons recommended for appointment or reappointment. A letter of recommendation by the board stating why the name or names are recommended shall accompany the submission. The county legislative delegation shall consider the recommendation of the board but are not limited to make a selection for its own recommendation from among those submitted. Upon recommendation of the county legislative delegation, members of the board must be appointed by the Governor for a term of four years. A vacancy may be filled by the board, if the remaining term is less than two years; if more than two years, then in the usual manner for the unexpired term.

(B) The governing body of the district, by a resolution adopted by a two-thirds vote of all members of the governing body, may request that board members be elected in a nonpartisan general election. If adopted, a certified copy of the resolution and a map clearly setting out the lines of the boundaries of the district in the county or counties in which the district is situated must be presented to the county election commission prior to August first of a general election held in an even-numbered year for the election to be held at the general election in November of that year. The governing body must be elected from single-member election districts.

(C) Notice of the election must be published by the governing body of the district at least three times prior to the election, including (i) not less than sixty days prior to the date of the election, (ii) two weeks after the first date of publication, and (iii) a date not more than fifteen and not less than ten days before the date of the election. The notice must appear in a newspaper of general circulation within the 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) a brief description of the governmental services provided by the district;

(5) a map showing generally the boundaries of the district;

(6) a list of precincts and polling places in which ballots may be cast; and

(7) an explanation of the procedure to be followed for election of members of the district's governing body and state.

Section 33-36-1340. (A) On the first Tuesday following the first Monday in November in the year immediately following the year of the resolution, 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 entity charged by law with conducting the election. Except for the initial election of commissioners as provided in subsection (B), 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 the next ensuing general election year, and the remaining commissioners are elected at the next following general election. The terms of office of commissioners whose seats are subject to contest in general election shall expire fourteen days following the general election.

(B) For the initial election of commissioners, all seats are 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 two years after the initial election. Those commissioners entitled to serve the initial four-year terms are 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.

(C) The county election commission is charged with conducting and supervising 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.

Section 33-36-1350. The board shall annually elect its officers, a chairperson, vice chairperson, and a secretary and treasurer. The latter two offices may be combined.

Section 33-36-1360. (A) The newly converted district has all rights and powers of a public body politic and corporate of this State including, without limitations, all the rights and powers necessary or convenient to carry out and effectuate its purposes including, but not limited to, the following rights and powers to:

(1) have perpetual succession;

(2) sue and be sued and appear and defend in all actions and proceedings in its corporate name to the same extent as a natural person;

(3) adopt, use, and alter a corporate seal;

(4) maintain a principal office;

(5) adopt, change, amend, and repeal bylaws for the management and regulation of its affairs;

(6) receive, administer, and comply with the conditions and requirements respecting any gift, grant, or donation of any property or money;

(7) purchase, build, construct, maintain, rent, lease, and operate ditches, tunnels, culverts, flumes, conduits, mains, pipes, trunk and collection lines, dykes, dams, reservoirs, water and wastewater treatment facilities, and any adjunct facility or facilities for the impounding, treatment, production, transmission, distribution, operation, service in connection with the sale of water or supply of sewer service;

(8) acquire and operate any type of machinery, appliances, or appurtenances necessary or useful in constructing, operating, and maintaining the system;

(9) enter into contracts of short or long duration;

(10) prescribe rate charges for its services and enact regulations;

(11) make contracts of all kinds and execute all instruments or documents necessary or convenient to carry out the business of the district;

(12) sell, lease, exchange, transfer, or otherwise dispose of or grant option for any purpose with respect to any real or personal property or interest in them in conformity with state law;

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

(14) incur liabilities, lend and borrow money, issue bonds or notes of the district, secure its obligations by mortgage, and pledge or assign any money, rents, charges, or other revenues and any proceeds derived by the district from the sales of property, insurance, or condemnation awards;

(15) acquire, enjoy, utilize, and dispose of patents, copyrights, and trademarks and licenses and other rights or interests in them;

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

(17) apply to the appropriate agencies of the State, the United States or any state, and to any other proper agency for and obtain from them permits, licenses, certificates, or approvals as may be necessary; and construct, maintain, and operate the project in accordance with such license, permits, certificates, or approvals;

(18) appoint officers, agents, employees, and servants to prescribe the duties of such, to fix their compensation, and to determine if and to what extent they must be bonded for the faithful performance of their duties;

(19) employ engineers, architects, attorneys, appraisers, financial advisors, and other consultants and employers as may be required in the judgment of the district and fix and pay their compensation from funds available to the joint system, if applicable;

(20) engage in the business of supplying water, water distribution, or sewage collection or treatment; and

(21) exercise, in connection with water or sewage disposal business, the power of eminent domain as prescribed in Section 6-13-50(19).

(B) The rates charged for services furnished for the purpose of providing water supply or sewage disposal, or a combination of these services, is not subject to supervision or regulations by any state bureau, board, commission, or like instrumentality or agency of it.

Section 33-36-1370. Districts converted pursuant to this article shall assume all assets, properties, and liabilities of the antecedent nonprofit corporation."

Nonprofit corporation becoming public service district is voting member

SECTION 3. Section 6-25-20(h) of the 1976 Code, as last amended by Act 113 of 1999, is further amended to read:

"(h) 'Member of a joint system' means those municipalities whose governing bodies have agreed (1) to create a joint municipal water system to undertake the impounding, acquisition, treatment, production, transmission, distribution, service, and sale of water to a municipality which is a member of the system and other municipalities, and persons which are not members when approved by the governing body of each member or (2) to create a joint municipal water system for the purpose of creating a financing pool. A joint municipal water system created for the purpose of creating a financing pool may have as nonvoting members nonprofit corporations created pursuant to Chapter 36 of Title 33; however, a nonprofit corporation which has become a public service district pursuant to Article 8 of Chapter 36 of Title 33 is a voting member."

Time effective

SECTION 4. This act takes effect upon approval by the Governor.

Ratified the 28th day of June, 2001.

Approved the 20th day of July, 2001.


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