Current Status Introducing Body:Senate Bill Number:1352 Ratification Number:538 Act Number:516 Primary Sponsor:Bryan Type of Legislation:GB Subject:Special purpose districts, consolidation of Date Bill Passed both Bodies:Jun 04, 1992 Computer Document Number:436/12188.DW Governor's Action:S Date of Governor's Action:Sep 02, 1992 Introduced Date:Mar 03, 1992 Date of Last Amendment:Jun 03, 1992 Last History Body:------ Last History Date:Sep 02, 1992 Last History Type:Act No. 516 Scope of Legislation:Statewide All Sponsors:Bryan Type of Legislation:General Bill
Bill Body Date Action Description CMN
---- ------ ------------ ------------------------------ ---
1352 ------ Sep 02, 1992 Act No. 516
1352 ------ Sep 02, 1992 Signed by Governor
1352 ------ Jun 04, 1992 Ratified R 538
1352 Senate Jun 04, 1992 Concurred in House amendment,
enrolled for ratification
1352 House Jun 04, 1992 Read third time, returned
with amendment
1352 House Jun 03, 1992 Amended, read second time
1352 House Jun 02, 1992 Objection withdrawn by
Representative
1352 House Jun 02, 1992 Objection by Representative
1352 House May 27, 1992 Debate adjourned until
Tuesday, June 2, 1992
1352 House May 13, 1992 Committee Report: Favorable 25
with amendment
1352 House Apr 15, 1992 Introduced, read first time, 25
referred to Committee
1352 Senate Apr 14, 1992 Read third time, sent to House
1352 Senate Apr 08, 1992 Read second time
1352 Senate Apr 01, 1992 Committee Report: Favorable 11
1352 Senate Mar 03, 1992 Introduced, read first time, 11
referred to Committee
View additional legislative information at the LPITS web site.
(A516, R538, S1352)
AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 4-11-290 SO AS TO PROVIDE A PROCEDURE BY WHICH A SPECIAL PURPOSE DISTRICT WHICH DOES NOT PROVIDE ANY GOVERNMENTAL SERVICE AND WHICH HAS MADE NO PROVISION FOR PROVIDING THE SERVICE MAY BE DISSOLVED, 6-11-435 SO AS TO DEFINE "POLITICAL SUBDIVISION" FOR PURPOSES OF THIS SECTION, TO PROVIDE THAT A DISTRICT WHICH RESULTS FROM ACTION TAKEN PURSUANT TO THIS CHAPTER MAY NOT PROVIDE A GOVERNMENTAL SERVICE TO AN AREA WITHIN ITS BOUNDARIES TO WHICH IT HAS NOT PREVIOUSLY PROVIDED THE SERVICE IF AN OVERLAPPING POLITICAL SUBDIVISION IS AUTHORIZED TO PROVIDE THAT SAME SERVICE IN THE AREA AND THE AREA IS SITUATED WITHIN THE BOUNDARIES OF THE OVERLAPPING POLITICAL SUBDIVISION WITHOUT THE EXPRESS AUTHORIZATION OF THE GOVERNING BODY OF THE OVERLAPPING POLITICAL SUBDIVISION, AND 6-11-455 SO AS TO PROVIDE THAT IF A CONSOLIDATED OR ENLARGED SPECIAL PURPOSE DISTRICT IS PRECLUDED FROM PROVIDING A GOVERNMENTAL SERVICE TO AN AREA WITHIN ITS BOUNDARIES AND THERE MUST NOT BE LEVIED WITHIN THE AREA AD VALOREM TAXES FOR THE PURPOSES OF PROVIDING THE SERVICE TO THE REMAINING PORTIONS OF THE DISTRICT; AND TO AMEND SECTIONS 6-11-440 AND 6-11-470, RELATING TO NOTICE REQUIREMENTS REQUIRED BY A COUNTY COUNCIL WHEN THE BOUNDARY OF A DISTRICT IS ALTERED, SO AS TO PROVIDE A PROCEDURE FOR CONSOLIDATING AND ENLARGING SPECIAL PURPOSE DISTRICTS WHERE THE CONSOLIDATION ENLARGEMENT RESULTS IN AN OVERLAPPING POLITICAL SUBDIVISION AUTHORIZED TO PROVIDE LIKE SERVICES.
Be it enacted by the General Assembly of the State of South Carolina:
Findings
SECTION 1. Act 926 of 1974 provides a vehicle for the consolidation and enlargement of special purpose districts. The consolidation of special purpose districts which do not share identical powers, or the enlargement of a single special purpose district authorized to provide multiple services, may result in an overlap in service areas with a separate political subdivision. According to the decision of the South Carolina Supreme Court in North Carolina Electrical Membership Corp. v. White, 301 S.C. 274, 391 S.E.2d 751 (1990), these overlapping service areas are forbidden. The General Assembly adopts this act to provide that, in order to avoid this type of overlap, the governing body of a county, as an alternative to diminishing the boundaries of the overlapping political subdivision, may limit the provision of service by the consolidated or enlarged special purpose district so that there is no overlap in authorized service areas.
Alternative to diminishing boundaries
SECTION 2. The 1976 Code is amended by adding:
"Section 6-11-435. (A) For purposes of this section `political subdivision' means a municipality, county, or special purpose district.
(B) A consolidated or enlarged special purpose district which results from action taken pursuant to this chapter may not provide a governmental service to an area within its boundaries to which it has not previously provided such service if an overlapping political subdivision is authorized to provide that same service in the area and the area is situated within the boundaries of such overlapping political subdivision without the express authorization of the governing body of such overlapping political subdivision. The governing body of the county shall expressly provide by ordinance that the consolidated or enlarged special purpose district shall not provide a governmental service to an area within its boundaries within which an overlapping political subdivision is authorized to provide that same service.
Section 6-11-455. If a consolidated or enlarged special purpose district is, pursuant to this chapter, precluded from providing a governmental service to an area within its boundaries, there must not be levied within the area ad valorem taxes for the purpose of providing the service to the remaining portions of the special purpose district."
Notice
SECTION 3. Section 6-11-440 of the 1976 Code is amended to read:
"Section 6-11-440. (A) The notice required by Section 6-11-430 must be published once a week for three successive weeks in a newspaper of general circulation in the county. Such notice must state:
(1) the time of the public hearing which may be not less than sixteen days following the first publication of the notice;
(2) the place of the hearing;
(3) the nature of the change to be made in the special purpose district;
(4) a brief description of the new boundary lines to result if the proposed change is made;
(5) the functions to be performed by the special purpose district;
(6) a summary of the reasons for the proposed change;
(7) the cost of proposed improvements, if any, and a statement as to the method to be employed to raise the funds necessary for it; and
(8) a statement of the amount and type of bonds, if any, then proposed to be issued immediately following the change of boundaries of the special purpose district.
(B) If a consolidated or enlarged special purpose district is, pursuant to this chapter, precluded from providing a governmental service to an area within its boundaries, the notice prescribed by subsection (A) also must include a description of the area in which the governmental service will not be provided by the special purpose district and shall identify the political subdivision which is authorized to provide the service."
Notice
SECTION 4. Section 6-11-470 of the 1976 Code is amended to read:
"Section 6-11-470. (A) The county board shall give notice of its action to be published once a week for two successive weeks in a newspaper of general circulation within the county which shall state:
(1) the results of its action;
(2) whether, pursuant to the remaining provisions of this article, bonds of the special purpose district are then to be immediately issued, and, if so, the amount of bonds and the method provided for their payment; and
(3) whether, pursuant to the provisions of Section 6-11-10, there will be a new commission or changes made in the personnel of the old commission for the special purpose district as enlarged, diminished, or consolidated.
(B) If a consolidated or enlarged special purpose district is, pursuant to this chapter, precluded from providing a governmental service to an area within its boundaries, the notice prescribed by subsection (A) also shall include a description of the area in which the governmental service will not be provided by the special purpose district and shall identify the political subdivision which is authorized to provide the service."
Findings, districts may be dissolved, conditions
SECTION 5. (A) As incident to the adoption of this section, the General Assembly finds that it has created numerous special purpose districts to provide one or more governmental services within specified localities. Additional special purpose districts have been created as a result of referenda held pursuant to authorizing legislation. While many of these special purpose districts continue to provide governmental services and otherwise exercise the authority granted them pursuant to their respective enabling legislation, there exists a number of special purpose districts which have ceased to provide governmental services, or which have never provided any service.
The existence of these nonfunctioning special purpose districts has created inefficiencies in the provision of governmental services to the people of this State. The General Assembly adopts this section in order to provide a means in which special purpose districts which do not provide any governmental service, and which have made no provision for providing the service, may be dissolved. It is the intent of the General Assembly that dissolution of a special purpose district is mandatory if the conditions and procedures set forth in this section are met.
(B) The 1976 Code is amended by adding:
"Section 4-11-290. (A) For purposes of this section, `special purpose district' or `district' means any 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, and includes those districts created by special legislation as well as those districts created by virtue of referenda held pursuant to general legislation.
(B) No special purpose district may be dissolved pursuant to this section if any one or more of the following conditions exists:
(1) the district is presently providing a governmental service within its boundaries;
(2) the district has outstanding general obligation indebtedness;
(3) the district has outstanding indebtedness payable from revenues derived from the provision of one or more governmental services; and
(a) the indebtedness has not been declared in default by or upon behalf of the holder of it, or
(b) a receiver has been appointed to manage the affairs of the district or application has been made for the appointment of a receiver; or
(4) the district has provided a governmental service within two years of the date of the petition and has formally budgeted funds to resume the provision of a governmental service within the present or succeeding fiscal year;
(5) the governing body of a county in which the district is located objects to the dissolution of the district.
(C) An individual residing or owning property within the boundaries of a special purpose district may petition the Secretary of State to dissolve the district through the issuance of an order of dissolution.
(D) A petition for dissolution of a special purpose district must contain the following items:
(1) a description of the governmental services which the district is authorized by law to provide;
(2) a statement that the district is not presently providing any authorized governmental service;
(3) identification of the special legislation or the general legislation pursuant to which the district was created. If the district was created pursuant to general legislation, the petition must state the date upon which the approving referendum was held;
(4) a general description of the boundaries of the district. If the boundaries of the district have at any time been enlarged or diminished pursuant to general laws, the date or dates of the action must be stated;
(5) a statement of the reason or reasons for which dissolution of the district is sought.
(E) The petition must be filed with the clerk of court of each county in which the district is located, and a certified copy of the petition shall within ten days after that time be filed with the Secretary of State.
(F) The Secretary of State shall, upon receipt of a petition, commence proceedings as set forth in this subsection for the purpose of investigating the matters set forth in the petition and determining whether a district must be dissolved.
(1) Within twenty days of the receipt of a petition, the Secretary of State shall serve upon the Governor, the State Treasurer, and the governing bodies of the county or counties in which the district is located a copy of the petition, together with a copy of the notice of review authorized by subsection (F)(2). The Governor, the State Treasurer, and the county governing bodies may comment upon the petition, or in the case of county governing bodies, interpose an objection to dissolution of the district, by serving a return to the petition setting forth the comments or grounds for the objection within forty days of the service of the petition.
(2) Within twenty days of the receipt of a petition, the Secretary of State must have published in a newspaper of general circulation in each county in which the district is located once a week for three successive weeks a notice of review which must state:
(a) the name of the district and the boundaries of it;
(b) the statutory authorization for the existence of the district and a brief description of the governmental powers granted by the authorization;
(c) the date upon which the petition was received by the Secretary of State;
(d) that the petition is available for inspection at the office of the clerks of court in each county in which the district is located;
(e) that the Secretary of State is reviewing the matters set forth in the petition and may undertake to dissolve the district if the matters are found to be true;
(f) the names of the persons shown in the records of the Secretary of State, or, in the case of a district with an elected governing body, the county election commission, who constitute the most recently appointed or elected governing body of the district. In the case of an appointed governing body, there also must be identified the official or officials charged with appointing the members of the governing body; and
(g) that persons wishing to comment upon the dissolution of the district may file a return to the petition within twenty days of the last publication of the notice.
(3) A copy of the petition and the notice of review must be served, in the manner provided by law for service of process upon individuals, upon the persons identified as members of the governing body of the district in subsection (F)(2)(f) and mailed to the last known address, if any, of the office of the governing body.
(G) Upon the expiration of the time periods set forth in subsections (F)(1) and (2), the filing of a return to the petition, the Secretary of State shall determine whether the district must be dissolved. The district must be dissolved if the procedures established by this section have been met and if none of the conditions set forth in subsection (B) are found by the Secretary of State to exist. The findings of the Secretary of State must be published in an order of dissolution. The order of dissolution must state:
(1) the name of the district and the boundaries of it;
(2) the statutory authorization for the existence of the district and a brief description of the governmental powers granted by such authorization;
(3) the date upon which the petition was received by the Secretary of State;
(4) that the petition has been served upon the Governor, the State Treasurer, and the governing bodies of each county in which the district is located;
(5) that the notice of review provided for by subsection (F)(2) was published once a week for three successive weeks in a newspaper of general circulation in each county in which the district is located;
(6) that the persons shown in the records of the Secretary of State, or, in the case of a district with an elected governing body, the county election commission, who constitute the most recently appointed or elected governing body of the district, were served with a copy of the petition and the notice of review; and
(7) that the Secretary of State has caused investigation to be made and has determined that the district must be dissolved pursuant to this act.
(H) (1) The order of dissolution must be filed in the office of the clerk of court in each county in which the district is located. The Secretary of State shall have published once a week for three successive weeks in a newspaper of general circulation in each county in which the district is located a notice of dissolution, which must state:
(a) the date of the filing of the petition;
(b) the statutory authorization for the existence of the district and a brief description of the governmental powers granted by the authorization and the boundaries of the district;
(c) that the Secretary of State has determined that the district must be dissolved pursuant to this section;
(d) that the order of dissolution is available for inspection in the office of clerk of court of each county in which the district is located; and
(e) that the order of dissolution will become final on the twenty-first day following the final publication of the notice of dissolution.
(2) The notice of dissolution also must be served upon the Governor and the State Treasurer in the manner provided by law for service of process upon individuals, upon the persons identified as members of the governing body of the district in subsection (F)(2)(f) and be mailed to the last known address, if any, of the office of such governing body.
(3) Any resident or landowner of the district, the Governor, the State Treasurer, or a county governing body may, by action de novo instituted in the court of common pleas in a county in which the district is located, within twenty days following the publication of the notice of dissolution, but not afterwards, challenge the action of the Secretary of State. The scope of any action must be limited to the authorization of the Secretary of State to issue the order of dissolution in accordance with the requirements of this chapter or of the Constitution of this State.
(I) In the event a district is located in more than one county and the Secretary of State declines to issue an order of dissolution solely on the grounds that the governing bodies of one or more of such counties object to dissolution, the governing body of any county which does not object to dissolution is authorized to diminish the boundaries of the district so that it no longer includes any portion of that county. In diminishing the boundaries of a district, the governing body shall utilize the procedure set forth in Article 3, Chapter 11, Title 6. No consent or action by the governing bodies of other counties in which the district is located is required."
Time effective
SECTION 6. This act takes effect upon approval by the Governor.
Approved the 2nd day of September, 1992.