Current StatusView additional legislative information at the LPITS web site.Bill Number: 2232 Ratification Number: 147 Act Number 82 Introducing Body: House Subject: Authorize municipalities in the state to create joint municipal water systems
(A82, R147, H2232)
AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 25 TO TITLE 6 SO AS TO AUTHORIZE MUNICIPALITIES IN THE STATE TO CREATE JOINT MUNICIPAL WATER SYSTEMS; TO PROVIDE FACILITIES FOR THE IMPOUNDING, PRODUCTION, TREATMENT, TRANSMISSION, DISTRIBUTION, SALE, AND SERVICE OF WATER; TO PROVIDE FOR THE POWERS AND DUTIES OF SUCH JOINT MUNICIPAL WATER SYSTEMS; AND TO PROVIDE FOR THE BORROWING OF MONEY AND THE ISSUANCE OF REVENUE BONDS OF SUCH JOINT MUNICIPAL WATER SYSTEMS; AND TO FINANCE THE COSTS OF SUCH FACILITIES OR INTERESTS THEREIN FOR SUCH PURPOSES.
Whereas, the availability of water in the near future will become a very critical matter for the people of the State of South Carolina; and
Whereas, the General Assembly of this State determines as a matter of necessity that it should make provisions now so as to assist in meeting the present and future water needs of the people of this State. Now, therefore,
Be it enacted by the General Assembly of the State of South Carolina:
Legislative findings
SECTION 1. The General Assembly of this State finds and determines:
(a) That the present availability of water and even more so in the years to come is very crucial to the welfare and needs of the people of the State of South Carolina, and is a matter of great public concern; that no longer is the impounding, treatment, production, transmission, distribution, sale, and service of water peculiar to the needs and welfare of a particular municipality, but such is of great importance to the people of this State as a whole.
(b) That the development of the State and its maintenance and growth depends in large measure on the availability of adequate and safe water supplies and water sources; and that the impounding, production, treatment, transmission, distribution, sale, and service of water by the municipalities of this State through joint action of certain municipalities who choose to do so is of great importance to the people of the State and to the areas of the State where such facilities are present.
(c) The creation of joint municipal water systems to provide and sell water to its members and to other municipalities who are not members, but who sell and serve water when approved by the governing body of each member; and to provide for the joint planning, financing, development, ownership, operation, and the issuance of revenue bonds by such joint municipal water systems is for a public use and for a public purpose.
Joint Municipal Water System Act
SECTION 2. The 1976 Code is amended by adding to Title 6:
"Chapter 25
Joint Municipal Water Systems Act
Section 6-25-10. This chapter may be cited as the Joint Municipal Water Systems Act.
Section 6-25-20. For purposes of this chapter:
(a) 'Joint Municipal Water System' means a public body and body corporate and politic organized under other provisions of this chapter.
(b) 'State' means the State of South Carolina.
(c) 'Project' means any project undertaken by a joint municipal water system for any one or more of the following purposes: The impounding, production, treatment, transmission, distribution, sale, and service of water to any of its members, or to municipalities that are not members who are engaged in the serving and sale of water, when such is approved by the governing body of each member.
(d) 'Costs', with respect to a project, means all costs of planning, designing, constructing, and financing such project including fees for legal and professional services, costs of insurance, interest and charges on principal during planning, designing, and construction, and any reserves necessary or desirable with a project.
(e) 'Governing body' means with respect to a municipality; the board, commission, council, or governing body charged by law with governing the municipality.
(f) 'Municipality' shall include counties, towns, and cities incorporated under the laws of this State; consolidated political subdivisions of this State; and any agency or public body created by the General Assembly of this State or under the laws of this State and engaged in the sale and service of water for industrial and domestic purposes.
(g) 'Revenue bonds' shall mean bonds, notes, certificates, or other obligations of a joint system issued pursuant to the provisions of this chapter and shall include refinancing or refunding same, but which shall be paid solely from the revenues of a joint system.
(h) 'Member of a joint system' means those municipalities whose governing bodies have agreed to create a Joint Municipal Water System to undertake the impounding, acquisition, treatment, production, transmission, distribution, service, and sale of water to a municipality engaged in the production, service, and sale of water which is a member of the system and other municipalities which are not members engaged in the production, service, or sale of water when approved by the governing body of each member.
Section 6-25-30. In addition to the powers granted a municipality under the laws of the State, any two or more governing bodies may, by resolution or ordinance, determine that it is in the best interest of their municipalities and of their residents and customers to create a Joint Municipal Water System for the purpose of planning, financing, developing, constructing, acquiring, improving, enlarging, selling, leasing, maintaining, and operating a project for other present and future needs of their service areas and of the areas of the State in which they serve. Upon any such determination, any two or more municipalities may form a joint system to plan, finance, develop, enlarge, improve, lease, sell, maintain, or operate a project within this State. Each governing body may make such plans and enter into such contracts in connection with the project not inconsistent with the terms of this chapter which it determines might be necessary or appropriate.
Each municipality may undertake studies of its own to determine whether there is a need for a project or whether such project is feasible.
Section 6-25-40. If the creation of a joint system is formed by the governing bodies of any two or more municipalities to be in the best interest of their respective municipalities, notice of the adoption of such ordinance or resolution shall be published once a week for two consecutive weeks in a newspaper of general circulation within the county in which such governing body is located. Any person affected by the action of such governing body may institute an action in the circuit court for the county in which such governing body is located within twenty days following the last publication of the notice prescribed challenging the action of such governing body.
Section 6-25-50. Upon fulfilling the requirements set forth in Section 6-25-40, each governing body which determines that its participation in the proposed joint system is in its best interest shall by resolution appoint one representative to the proposed joint system. Any two or more representatives shall file with the Secretary of State an application signed by the representative of each proposed member setting forth:
(a) The names of all the proposed members and their respective appointed representatives;
(b) A certified copy of (i) the resolution or ordinance of each member determining it is in its best interest to participate in the proposed joint system and (ii) the resolution appointing such member's representative;
(c) The desire that the joint system be organized as a public body and a body corporate and politic under this chapter;
(d) The name which is proposed for the joint system.
The Secretary of State shall file the application if after examining it and determining that it complies with the requirements in this section and that the proposed name of the joint system is not identical with that of any other corporation of the State or any agency or instrumentality or so nearly similar as to lead to confusion and uncertainty.
After the application has been made and filed, the Secretary of State shall issue a corporate certificate which shall be filed with the application, and the joint system shall then be constituted a public body corporate and politic under the name proposed in the application. The corporate certificate shall set forth the names of the members and the name of the joint system. Notice of the issuance of such corporate certificate shall be given to all members of the joint system by the Secretary of State.
In any suit, action, or proceeding involving the validity or enforcement of, or relating to, any contract of a joint system, the joint system in the absence of establishing fraud shall be conclusively deemed 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. A copy of such certificate, duly certified by the Secretary of State, shall be admissible in evidence in any suit, action, or proceeding and shall be conclusive proof of the filing and contents.
Section 6-25-60. (a) The management and control of a joint system shall be vested in a commission. The governing body of each member of a joint system shall appoint a representative who shall be a commissioner of the joint system. The representative may be an officer or employee of the member and may also serve ex officio as a member of the commission. Each commissioner shall have one vote and may have additional votes as a majority of the members of the joint system determines. Each commissioner shall serve at the pleasure of the governing body by which he was appointed. Each appointed commissioner, before entering upon his duties, shall take and subscribe to an oath before a person authorized by law to administer oaths to execute the duties of his office faithfully and impartially, and a record of each oath shall be filed with the governing body of the appointing authority.
(b) The commissioners of the joint system shall annually elect, with each commissioner having one vote, one of the commissioners as chairman, another as vice chairman and other persons who may, but need not be commissioners, as treasurer, secretary and, if desired, assistant secretary. The office of treasurer may be held by the secretary or assistant secretary. The Commission may also appoint such additional officers as it deems necessary. The secretary or assistant secretary of the joint system shall keep a record of the proceedings of the joint system, and the secretary shall be the custodian of all books, records, documents, and papers filed with the joint system, the minute book or journal of the joint system, and its official seal.
(c) A majority of the commissioners of the joint system shall constitute a quorum. A vacancy on the commission of the joint system shall not impair the right of a quorum to exercise all rights and perform all the duties of a joint system. Any action taken by the joint system under the provisions of this chapter may be authorized by resolution at any regular or special meeting held pursuant to notice in accordance with bylaws of the joint system, and each resolution shall take effect immediately and need not be published or posted. Except as is otherwise provided in this chapter or in the bylaws of the joint system, a majority of the votes which the commissioners present are entitled to cast, with a quorum present, shall be necessary and sufficient to take any action or to pass any resolution. No commissioner of a joint system shall receive any compensation solely for the performance of duties as a commissioner, but each commissioner may be paid per diem, mileage, and subsistence expenses, as provided by law for state boards, committees, and commissions, incurred while engaged in the performance of such duties.
Section 6-25-70. After the creation of a joint system, any other municipality may become a member upon:
(a) Adoption of a resolution or ordinance by the governing body complying with the requirements of Section 6-25-40 including publication of notice;
(b) Submission of an application to the joint system;
(c) Approval of such application by resolution of the governing body of each member of such joint System.
Any member may withdraw from a joint system by resolution or ordinance of its governing body. All contractual rights acquired and contractual obligations incurred by a member while it was a member must remain in full force and effect.
Notice of any change in membership must be filed in the office of the Secretary of State, and no change is final until such filing.
Section 6-25-80. Whenever the commission of a joint system and the governing body of each of its members shall by resolution or ordinance determine that the purposes for which the joint system was formed have been substantially fulfilled and that all bonds issued and all other obligations incurred by the joint system have been fully paid or satisfied, such commission and members may declare the joint system to be dissolved. On the effective date of such resolution or ordinance, the title to all funds and other property owned by the joint system at the time of dissolution must be disbursed to the members of the joint system according to its bylaws.
Section 6-25-90. The commission of a joint system may create an executive committee, the composition of which must be set forth in the bylaws of the joint system. The composition of the executive committee shall afford a fair representation of the members. The executive committee may exercise such powers during intervals between the commission's meetings as provided by the commission. The terms of office of the members of the executive committee and the method of filling vacancies must be fixed by the bylaws of the joint system.
Section 6-25-100. Each joint system shall have all the rights and powers of a public body politic and corporate of this 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, the following rights and powers:
(a) To have perpetual succession.
(b) To sue and be sued.
(c) To adopt, use, and alter a corporate seal.
(d) To maintain a principal office.
(e) To make bylaws for the management and regulation of its affairs.
(f) To receive, administer, and comply with the conditions and requirements respecting any gift, grant, or donation of any property or money.
(g) To purchase, build, construct, maintain, rent, lease, and operate ditches, tunnels, culverts, flumes, conduits, mains, pipes, dykes, dams, reservoirs, water treatment facilities, and any facility or facilities for the impounding, treatment, production, transmission, distribution, operation, service, and sale of water in connection with the project.
(h) To acquire and operate any type of machinery, appliances, or appurtenances necessary or useful in constructing, operating, and maintaining the system.
(i) To enter into contracts of short or long duration for the sale of water to municipalities who are members of the joint system and to other municipalities not members upon conditions as set out under project definitions.
(j) To prescribe rates and regulations under which water shall be sold.
(k) To make contracts of all kinds and to execute all instruments or documents necessary or convenient to carry on the business of the joint system.
(l) To sell, lease, exchange, transfer, or otherwise dispose of or to grant options for any purposes with respect to any real or personal property or interest therein in conformity with state law.
(m) To acquire by purchase, lease, gift, or otherwise, or to 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.
(n) To borrow money and issue bonds or notes of the joint system to be paid solely from revenues of the system. No bonds or notes shall be issued except with the approval of the governing body of each member, by resolution or ordinance of the governing body of each member.
(o) To pledge or assign any money, rents, charges, or other revenues and any proceeds derived by the joint system from the sales of property, insurance, or condemnation awards.
(p) To authorize the construction, operation, or maintenance of any project by any person, firm, or corporation, including political subdivisions and agencies of any state of the United States.
(q) To apply to the appropriate agencies of the State, the United States or any state, and to any other proper agency for and to obtain from them permits, licenses, certificates, or approvals as may be necessary; and to construct, maintain, and operate the project in accordance with such licenses, permits, certificates, or approvals.
(r) To 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 shall be bonded for the faithful performance of their duties.
(s) To employ engineers, architects, attorneys, appraisers, financial advisors, and other consultants and employees as may be required in the judgment of the joint system, and to fix and pay their compensation from funds available to the joint system.
(t) To make use of county and state highway rights-of-way in which to lay pipes and lines, in such manner and under such conditions as the appropriate officials in charge of such rights-of-way shall approve.
(u) Any joint system shall possess the power of eminent domain in accordance with Section 5-7-50 and Chapter 9 of Title 28 in order to effectuate the purposes of this chapter and shall exercise such power in accordance with Chapter 9 of Title 28; provided, however, property of corporations organized under Chapter 35 of Title 33 shall not be subject to condemnation by joint municipal water systems created under the provisions of this chapter.
Section 6-25-110. A joint system may incur debt for any of its purposes and may issue bonds pledging to the payment as to both principal and interest the revenues, or any portion, derived or to be derived from all or any of its projects and any additions and betterments or extensions or contributions or advances from its members. No joint system shall undertake any project required to be financed, in whole or in part, with the proceeds of bonds without the approval of the governing bodies of each member.
Section 6-25-120. In borrowing money or the issuance of bonds or notes, or other obligations, there shall not be pledged the full faith, credit, or taxing power of any member of the joint system, but only revenues of the system must be used to pay or pledged to the payment of any notes, obligations, or bonds.
Section 6-25-130. Personnel employed or appointed by a member to work for a joint system shall have the same authority, rights, privileges, and immunities including coverage under the Workers' Compensation laws which the officers, agents, and employees of the appointing member enjoy within the territory of that member whether within or without the territory of the appointing member when they are acting within the scope of their authority or in the course of their employment.
Personnel employed or appointed directly by a joint system shall be qualified for participation in the South Carolina Retirement System with the same rights, privileges, obligations, and responsibilities as they would have if they were employees of a municipality, if they are residents of this State.
Section 6-25-140. There shall be an annual audit of each joint system and reports given to the governing body of each of the members. The costs shall be considered as part of the construction costs or part of expenses of administration.
Section 6-25-150. The commission of any joint system may make application for grants and enter into contracts for and accept grants in aid and loans from the federal and state governments and their agencies in connection with the planning, acquiring, constructing, expanding, maintaining, and operating any project, or participating in any research or development program in connection therewith. The Commission may agree to comply with any reasonable conditions which are imposed upon such grants, loans, or aids, and may accept such without a contract.
Section 6-25-160. The principal and interest on the bonds, notes, or other evidences of indebtedness issued pursuant to this chapter shall have the tax-exempt status prescribed by Section 12-1-60.
Section 6-25-170. The provisions of this chapter must be liberally construed."
Time effective
SECTION 3. This act shall take effect upon approval by the Governor.