A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 33-31-1709 SO AS TO ESTABLISH NEUTRAL PRINCIPLES OF LAW GOVERNING THE OWNERSHIP, TRANSFER, AND RELEASE OF TRUST INTERESTS IN REAL PROPERTY OF LOCAL CHURCHES DISAFFILIATING WITH STATE OR NATIONAL RELIGIOUS ORGANIZATIONS WHICH ASSERTS A TRUST INTEREST IN THE REAL PROPERTY IN CERTAIN CIRCUMSTANCES.

 

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

 

SECTION 1.  Article 17, Chapter 31, Title 33 of the S.C. Code is amended by adding:

 

    Section 33-31-1709.  (A) The purpose of this section is to establish neutral principles of law governing the ownership, transfer, and release of trust interests in real property used by local churches affiliated with state or national religious organization conference. This section governs civil property consequences when a local church disaffiliates, but this section does not regulate doctrine, ecclesiastical authority, internal governance, or matters of faith.

    (B) For purposes of this section:

       (1) "Local church" means a congregation, parish, or other local religious body organized as a religious corporation under the provisions of this section.

       (2) "Organization conference" means any state, regional, national, or international religious body, denomination, convention, or conference with which a local church is affiliated, and which asserts a trust interest in the real property of the local church.

       (3) "Real property" means all land, buildings, and improvements used by the local church for religious, charitable, educational, or administrative purposes.

       (4) "Financial investments" means monetary contributions by the organization conference directly used for the acquisition, maintenance, improvement, or capital renovation of the local church's real property.

    (C) When a local church disaffiliates from an organization conference, the local church shall retain ownership of its real and personal property, free and clear of any trust, reversionary interest, or other claim asserted by the organization conference, when the local church, in its sole discretion, determines that:

       (1) the organization conference, or a national conference of which it is a member, has failed or refused to consistently uphold or abide by its own democratically adopted laws, doctrines, bylaws, or governing documents, including disciplinary rules, internal policies, or standards of conduct; and

       (2) the failure described in item (1) materially affects the ongoing relationship between the local church and the organization conference. A determination under this subsection must be made by the body authorized by the local church's governing documents and certified in writing; or

       (3) the local church determines that such disaffiliation is in the best interests of the church.

    (D) When a local church disaffiliates, the local church shall reimburse the organization conference for financial investments made by the organization conference for the acquisition, maintenance, or improvement of the real property used by the local church, as determined under subsection (E).

    (E)(1) Upon receiving written notice that a local church has disaffiliated or intends to disaffiliate, the organization conference shall provide the local church with a full, transparent, itemized, and documented accounting of all financial investments it has made in the acquisition, maintenance, or improvement of the real property used by the local church. The accounting must include dates, amounts, purposes, and supporting documentation.

       (2) A disaffiliating local church may not be required to reimburse the organization conference for:

           (a) any amounts attributable to financial investments for the acquisition, maintenance, or renovation of real property made by the local church itself; or

           (b) any amounts contributed by the local church to the organization conference that were allocated for general denominational purposes or for activities not directly related to the real property at issue.

    (F) When the reimbursement amount determined under subsection (E) has been paid, the organization conference shall execute and deliver all documents necessary to release, extinguish, or transfer any trust interest, lien, or encumbrance it claims in the local church's real property. The release must be recorded in the county where the property is located.

    (G) All disputes arising under this section must be resolved exclusively under neutral principles of law, without inquiry into or resolution of questions of doctrine, discipline, ecclesiology, or internal church governance.

    (H) The articles or bylaws of an organization conference may limit or abolish the right of a religious corporation under this section.

 

SECTION 2.  This act takes effect upon approval by the Governor.

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