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					BIL:     68
TYP:     General Bill GB
INB:     Senate
IND:     20010110
PSP:     Hayes
SPO:     Hayes, Reese, Branton
DDN:     l:\council\bills\dka\3993mm01.doc
RBY:     Senate
COM:     Judiciary Committee 11 SJ
SUB:     Joint Agency Act, Political Subdivisions, Counties, Municipal
         Corporations, School Districts, Banks, Development Board



HST:

Body     Date       Action Description                        Com     Leg Involved
______   ________   _______________________________________   _______ ____________
Senate   20010110   Introduced, read first time,              11 SJ
                    referred to Committee



Versions of This Bill




TXT:
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 9                              A BILL
10
11   TO AMEND TITLE 6, CODE OF LAWS OF SOUTH
12   CAROLINA, 1976, RELATING TO LOCAL GOVERNMENTS,
13   BY ADDING CHAPTER 24 SO AS TO ENACT THE “JOINT
14   AGENCY ACT” AND TO PROVIDE FOR COUNTIES,
15   MUNICIPALITIES,    SCHOOL    DISTRICTS,   SPECIAL
16   PURPOSE    DISTRICTS,  AND     OTHER    POLITICAL
17   SUBDIVISIONS OF THE STATE JOINTLY TO UNDERTAKE
18   THE ACQUISITION AND FINANCING OF PROJECTS,
19   SYSTEMS, OR PROGRAMS, TO PROVIDE FOR THE
20   CREATION OF JOINT AGENCIES FOR THAT JOINT
21   PURPOSE BY SPECIFYING THEIR METHOD OF
22   FORMATION, THEIR MEMBERSHIP, AND THE METHOD
23   OF THEIR GOVERNANCE, TO PROVIDE FOR THE POWERS
24   OF    JOINT     AGENCIES,    INCLUDING      THEIR
25   RELATIONSHIPS, CONTRACTUAL AND OTHERWISE, AND
26   THOSE OF THEIR MEMBERS, AND TO PROVIDE FOR
27   FINANCING OF UNDERTAKINGS OF JOINT AGENCIES
28   AND THE OBLIGATIONS OF THEIR MEMBERS IN
29   CONNECTION WITH THE FINANCING.
30
31   Be it enacted by the General Assembly of the State of South
32   Carolina:
33
34   SECTION 1. (A) The General Assembly finds:
35        (1) the health, safety, and welfare of the people of the State
36   of South Carolina require the provision of certain services;
37        (2) Section 13, Article VIII of the Constitution of the State
38   of South Carolina provides that any county, incorporated
39   municipality, or other political subdivision may agree with the
40   State or with another political subdivision for the joint
41   administration of functions and joint exercise of powers and the
42   sharing of related costs;

     [68]                             1
 1        (3) in many instances, the public would benefit from more
 2   efficient and better services if projects were undertaken by two or
 3   more political subdivisions for the benefit of the residents of both;
 4        (4) in many instances, individual political subdivisions are
 5   unable to provide services that could be provided if undertaken
 6   jointly by more than one political subdivision; and
 7        (5) there is no general mechanism for the joint undertaking
 8   of powers shared in common by political subdivisions, which lack
 9   is detrimental to the public health, safety, and welfare and
10   inconsistent with the intent of home rule.
11      (B) It is the intent of the General Assembly to provide to
12   counties, municipalities, school districts, special purpose districts,
13   and other political subdivisions a mechanism for the joint exercise
14   of their powers, joint administration of functions, and sharing of
15   related costs so as to ensure that the residents of this State are
16   provided with governmental services as efficiently and
17   inexpensively as possible. To accomplish those goals, the General
18   Assembly intends to empower political subdivisions to create joint
19   agencies to provide for the joint exercise of powers, joint
20   administration of functions, and sharing of costs in a convenient
21   and predictable manner.
22
23   SECTION 2. Title 6 of the 1976 Code is amended by adding:
24
25                             “CHAPTER 24
26
27                            Joint Agency Act
28
29     Section 6-24-10. This chapter may be cited as the „Joint Agency
30   Act‟.
31
32     Section 6-24-20. As used in this chapter:
33     (1) „Cost‟, with respect to a project, means:
34        (a) all costs of planning, designing, constructing, acquiring,
35   and financing the project, including fees for professional services,
36   costs of insurance, and costs for principal and interest, during
37   planning, designing, and construction and for up to one year after
38   completion of construction;
39        (b) all costs associated with establishing necessary or
40   desirable reserves in connection with a project; and
41        (c) other expenditures of the joint agency incidental,
42   necessary, or convenient to the acquisition, construction,


     [68]                              2
 1   implementation, reconstruction, improvement, enlargement, or
 2   extension of a project.
 3      If a project does not involve the acquisition or construction of a
 4   facility, „cost‟ includes all costs of the undertaking or funding of
 5   the undertaking. In either case, „cost‟ may include those
 6   administration expenses a joint agency considers appropriate.
 7      (2) „Governing body‟ means the board, council commission, or
 8   other duly constituted governing body of a governmental entity.
 9      (3) „Governmental entity‟ means any county, incorporated
10   municipality, school district, special purpose district, or other
11   political subdivision of a state and any agency, instrumentality,
12   board, or commission of a state or a political subdivision of a state.
13      (4) „Joint agency‟ means a public body and body corporate and
14   politic organized in accordance with the provisions of this chapter.
15      (5) „Member‟ of a joint agency means each governmental
16   entity that has agreed to create a joint agency to undertake the
17   ownership, operation, maintenance, financing, or contractual use of
18   a project.
19      (6) „Project‟ means a project or other undertaking, including
20   the acquisition or construction of a facility or system of facilities,
21   that each member of the joint agency is authorized to pursue.
22      (7) „State‟ means the State of South Carolina.
23
24      Section 6-24-30. (A) In addition and supplemental to other
25   powers granted to governmental entities of the State, a
26   governmental entity, to create a joint entity pursuant to this
27   chapter, may:
28        (1) jointly plan, finance, develop, acquire, purchase, sell,
29   lease, construct, reconstruct, improve, enlarge, own, operate, and
30   maintain a project situated within the State with one or more
31   governmental entities and make plans and enter into contracts in
32   connection with the project consistent with the provisions of this
33   chapter and necessary or appropriate;
34        (2) undertake the exercise of any administrative function or
35   power jointly with one or more governmental entities and make
36   plans and enter into contracts in connection with that exercise
37   consistent with the provisions of this chapter and necessary or
38   appropriate; and
39        (3) agree to share the costs of a like undertaking with
40   another governmental entity as is appropriate.
41      Each governmental entity agreeing to act jointly must have the
42   legal capacity, power, and authority, by charter, act, constitution,
43   or other law, to so act on its own. This section does not grant any

     [68]                              3
 1   authorization other than as is specifically provided. Each
 2   governmental entity may make plans and enter into contracts
 3   severally in connection with the projects described consistent with
 4   the provisions of this chapter and necessary or appropriate.
 5      (B) If a governmental entity becomes a tenant-in-common
 6   pursuant to this section it may waive by contract its right of
 7   partition, either in kind or by sale. The power and right to enter
 8   into agreements to waive the right of judicial partition authorized
 9   by this section are in addition to powers and rights authorized
10   elsewhere.
11
12      Section 6-24-40. (A) A governmental entity by resolution or
13   ordinance, as appropriate, may determine that it is in its best
14   interests and those of its residents to create a joint agency with one
15   or more governmental entities for the purpose of:
16        (1) undertaking the planning, financing, development,
17   acquisition, purchase, construction, reconstruction, improvement,
18   enlargement, ownership, sale, lease, operation, or maintenance of a
19   project or other activities constituting a project and make available
20   the services provided by the project;
21        (2) undertaking the exercise of any administrative function
22   or power and making plans and entering into contracts in
23   connection with that exercise consistent with the provisions of this
24   chapter and necessary or appropriate; or
25        (3) sharing the costs of any such undertaking with one or
26   more governmental entities.
27      (B) The resolution or ordinance required by Section 6-24-40(A)
28   must include one or more of the following findings about the
29   proposed joint agency:
30        (1) it is able to plan, develop, acquire, purchase, construct,
31   reconstruct, improve, enlarge, own, sell, lease, operate, or maintain
32   a project, administer a function, or exercise a power more
33   efficiently and economically than its members operating
34   individually;
35        (2) it is able to undertake a project or exercise a power for
36   the benefit of its members, but one or more of its members
37   otherwise would be unable to undertake a similar project or
38   exercise the power acting individually;
39        (3) it is able to finance the cost of a project more efficiently
40   and economically than would its members acting individually or,
41   to the extent financing is required in connection with the
42   undertaking, it realizes better financial market acceptance if only


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 1   one entity is responsible for issuing all of the bonds and incurring
 2   all other debt required for the project;
 3         (4) fiscal savings and other advantages are obtained by
 4   providing a separate entity responsible for the:
 5           ( i) acquisition, purchase, construction, ownership, or
 6   operation of, or otherwise undertaking, a project; or
 7           (ii) administering a function or power.
 8      (C) If a governmental entity adopts an ordinance or resolution
 9   pursuant to Section 6-24-40(A), notice of the adoption must be
10   published once a week for two consecutive weeks in a newspaper
11   of general circulation within the county in which the governmental
12   entity is located or, if the governmental entity is located in two or
13   more counties, in each of the counties, or, if the governmental
14   entity is an agency, instrumentality, board, or commission of the
15   State, in a newspaper of general circulation within the State. A
16   person affected by the action of the governmental entity may
17   challenge the adoption by action de novo instituted in the court of
18   common pleas for the county in which the governmental entity is
19   located or, if the governmental entity is located in two or more
20   counties, in one of the counties, or, if the governmental entity is an
21   agency, instrumentality, board, or commission of the State, in
22   Richland County, within twenty days following the last publication
23   of the notice.
24
25     Section 6-24-50. (A) Upon fulfilling the requirements of
26   Section 6-24-40, the governmental body of each governmental
27   entity participating in the proposed joint agency shall appoint by
28   ordinance or resolution one representative to the proposed joint
29   agency. After the appointment of all representatives, the joint
30   agency shall file with the Secretary of State an application signed
31   by the representative of each of the proposed members. The
32   application must include:
33        (1) names of all the proposed members and their respective
34   appointed representatives;
35        (2) a certified copy of:
36           ( i) the resolution or ordinance of each member
37   determining it is in its best interests or the best interests of those it
38   serves to participate in the proposed joint agency; and
39           (ii) the resolution or ordinance appointing the member‟s
40   representative;
41        (3) a statement of desire that the joint agency be organized
42   as a public body and a body corporate and politic pursuant to this
43   chapter;

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 1         (4) the proposed name for the joint agency; and
 2         (5) the methods of appointment or election, removal, or
 3   filling of vacancies of members of the board of directors, including
 4   the number of directors appointed or elected by each member.
 5      (B) The Secretary of State shall file the application after
 6   examining it and determining that it complies with the
 7   requirements of subsection (A) and that the proposed name of the
 8   joint agency is not identical to that of another corporation of the
 9   State or an agency or instrumentality, or so similar as to lead to
10   confusion and uncertainty.
11      (C) The Secretary of State then shall issue and file a corporate
12   certificate. The corporate certificate must include the names of the
13   members and the name of the joint agency. The existence of the
14   joint agency as a public body corporate and politic under the
15   proposed name begins when the corporate certificate is issued by
16   the Secretary of State. Notice of the issuance of the corporate
17   certificate must be given to all members of the joint agency by the
18   Secretary of State.
19      (D) In any suit, action, or proceeding involving the validity or
20   enforcement of or otherwise relating to a contract of a joint
21   agency, the joint agency is presumed conclusively to have been
22   established in accordance with the provisions of this chapter upon
23   proof of the issuance of the certificate by the Secretary of State,
24   absent a showing of fraud. A copy of the certificate, duly certified
25   by the Secretary of State, is admissible in evidence in any suit,
26   action, or proceeding and is conclusive proof of the filing and
27   contents.
28      (E) The joint agency may amend the application by filing a
29   certificate of amendment with the Secretary of State, reciting that it
30   has been approved by a majority of the directors then in office and
31   signed by the chairman or the vice chairman, as elected pursuant to
32   Section 6-24-60(B) of this chapter. The Secretary of State shall
33   file the certificate of amendment after examining it and
34   determining that it complies with the requirements of this
35   subsection.
36
37      Section 6-24-60. (A) Management and control of the joint
38   agency is vested in a board of directors appointed or elected
39   pursuant to, and consisting of the number of directors specified in,
40   the application as filed or as amended. The application may
41   provide that one or more officers or employees of the members
42   may serve ex officio as members of the board of directors of the
43   joint agency. Each director has at least one vote and has additional

     [68]                              6
 1   votes as specified in the application, and each director serves at the
 2   pleasure of the governing body by which he was appointed, unless
 3   otherwise specified in the application. Before assuming his duties
 4   a director shall take and subscribe to an oath, before a person
 5   authorized by law to administer oaths, to execute the duties of the
 6   office faithfully and impartially. A record of each oath must be
 7   filed with the governing body of the appointing governmental
 8   entity.
 9      (B) The board of directors of the joint agency shall elect
10   annually, with each director having one vote, one of the directors
11   as chairman, another as vice chairman, and other persons who may
12   be, but need not be, directors as treasurer, secretary, and, if desired,
13   assistant secretary. The office of treasurer may be held by the
14   secretary or assistant secretary. The board of directors also may
15   appoint additional officers as it considers necessary. The secretary
16   or assistant secretary of the joint agency shall keep a record of the
17   proceedings of the joint agency and the secretary is the custodian
18   of all books, records, documents, and papers filed with the joint
19   agency, the minute book or journal of the joint agency, and its
20   official seal.
21      (C) A majority of the directors of the joint agency then in office
22   constitutes a quorum. A vacancy or vacancies on the board of
23   directors of the joint agency does not impair the right of a quorum
24   to exercise all rights and perform all duties of the joint agency. An
25   action taken by the joint agency pursuant to this chapter may be
26   authorized by resolution at a regular or special meeting held
27   pursuant to notice in accordance with bylaws of the joint agency,
28   and each resolution takes effect immediately, without publication
29   or posting. Except as otherwise provided in this chapter or in the
30   bylaws of the joint agency, a majority of the votes which the
31   directors present are entitled to cast, with a quorum present, is
32   necessary and sufficient to take any action or to pass a resolution.
33   A director of a joint agency may not receive compensation solely
34   for the performance of duties as a director, but each director may
35   be paid per diem, mileage, and subsistence expenses as provided
36   by law for state boards, committees, and commissions.
37      (D) Unless otherwise provided in the application, a director or
38   officer of the joint agency may resign at any time. The members
39   of the joint agency may not remove a duly elected or appointed
40   director of the joint agency except as specifically provided in the
41   application. Vacancies on the board of directors resulting from
42   resignation, removal, or other incapacity of a director must be
43   promptly filled as provided in the application.

     [68]                               7
 1
 2      Section 6-24-70. (A) After a joint agency is created, another
 3   governmental entity may become a member by:
 4        (1) adopting a resolution or ordinance complying with the
 5   requirements of Section 6-24-40, including publication of notice;
 6        (2) submitting an application to the joint agency; and
 7        (3) receiving approval of the application by resolution from
 8   the governing body of each member of the joint agency. The
 9   approval must include approval of any changes to the board of
10   directors resulting from the addition.
11      The additional governmental entity is not a member of the joint
12   agency for any purpose until the application and certificate
13   described in Section 6-24-50 have been amended to reflect its
14   membership in the joint agency and all changes resulting from the
15   membership, including changes as may be required to the
16   composition and powers of the board of directors of the joint
17   agency.
18      (B) A member may withdraw from a joint agency by resolution
19   or ordinance of its governing body. All contractual rights acquired
20   and contractual obligations incurred by a member while it was a
21   member of the joint agency remain in full force and effect. Upon
22   withdrawal of a member, the board of directors must be reduced by
23   the number of directors appointed by the withdrawing member.
24   The withdrawing governmental entity is a member of the joint
25   agency for all purposes until the application and certificate
26   described in Section 6-24-50 have been amended to reflect the
27   withdrawal of the governmental entity from the joint agency and
28   all changes resulting from the withdrawal, including changes as
29   may be required to the composition and powers of the joint
30   agency.
31      (C) Following the withdrawal of one or more members, if there
32   remains only one member of the joint agency, the joint agency
33   shall continue in existence until the joint agency is dissolved
34   pursuant to Section 6-24-80 of this chapter.
35      (D) The members of a joint agency may modify the
36   composition of the board of directors, to increase or decrease the
37   number of directors or to change the number of directors appointed
38   by each member, through the adoption of a resolution approving
39   the modification by the governing body of each member. The
40   modification is not effective for any purpose until the application
41   and certificate described in Section 6-24-50 have been amended to
42   reflect the modification.
43

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 1      Section 6-24-80. If the board of directors of a joint agency and
 2   the governing body of each of its members determine by resolution
 3   or ordinance that the purposes for which the joint agency was
 4   formed have been fulfilled substantially and that all bonds issued
 5   and all other obligations incurred by the joint agency have been
 6   paid or satisfied fully, the board of directors of the joint agency
 7   and the governing body of each of its members may declare the
 8   joint agency to be dissolved. On the effective date of the
 9   resolution or ordinance dissolving the joint agency, title to all
10   funds and other property owned by the joint agency at the time of
11   the dissolution must be disbursed to the members of the joint
12   agency according to its bylaws.
13
14      Section 6-24-90. The board of directors of a joint agency may
15   create an executive committee, the composition of which must be
16   set forth in the bylaws of the joint agency. The executive
17   committee may exercise powers during intervals between the
18   board‟s meetings as provided by the board. The terms of office of
19   the members of the executive committee and the methods of filling
20   vacancies must be fixed by the bylaws of the joint agency.
21
22     Section 6-24-100. Each joint agency has the rights and powers
23   of a public body politic and corporate of the State including,
24   without limitation, all the rights and powers necessary or
25   convenient to carry out and effectuate the provisions of this
26   chapter including, but not limited to, rights and powers to:
27     ( 1) adopt and amend bylaws for the regulation of its affairs and
28   the conduct of its business and prescribe rules and policies and
29   promulgate regulations in connection with the performance of its
30   functions and duties;
31     ( 2) adopt an official seal and alter it at pleasure;
32     ( 3) maintain an office at a place it determines;
33     ( 4) sue and be sued in its own name and to plead and be
34   impleaded;
35     ( 5) receive, administer, and comply with the conditions and
36   requirements of a gift, grant, or donation of property or money;
37     ( 6) acquire by purchase, lease, gift, or otherwise acquire or
38   obtain options for the acquisition of property, real or personal,
39   improved or unimproved, including an interest in land less than the
40   fee in conformity with state law;
41     ( 7) sell, lease, exchange, transfer, or otherwise dispose of, or
42   grant options for those purposes with respect to, real or personal
43   property, insurance, recovery, or condemnation award;

     [68]                             9
 1      ( 8) pledge or assign any money, rents, charges, or other
 2   evidence of indebtedness of the joint agency for the purpose of
 3   providing funds for its corporate purposes;
 4      ( 9) borrow money and issue notes, bonds, or other evidence of
 5   indebtedness of the joint agency for the purpose of providing funds
 6   for its corporate purposes;
 7      (10) authorize the construction, operation, or maintenance of a
 8   project by a person, firm, or corporation, including political
 9   subdivisions and agencies of a state of the United States;
10      (11) acquire by negotiated purchase or lease from one of its
11   members one or more projects which may be an existing project,
12   project under construction, or other project, either individually or
13   jointly with one or more other governing bodies or joint agencies
14   in this State;
15      (12) fix, charge, and collect rents, rates, fees, and charges in
16   connection with a project;
17      (13) make and execute contracts and other instruments
18   necessary or convenient in the exercise of the powers and
19   functions of the joint agency pursuant to this chapter, including
20   contracts with persons, firms, corporations, and others;
21      (14) apply to the appropriate agencies of the State, the United
22   States, or any state of the United States, and to another proper
23   agency for necessary permits, licenses, certificates, or approvals
24   and to construct, maintain, and operate projects in accordance with
25   those licenses, permits, certificates, or approvals; and
26      (15) employ engineers, architects, attorneys, appraisers,
27   financial advisors, and other consultants and employees as required
28   in the judgment of the joint agency and to fix and pay their
29   compensation from funds available to the joint agency for that
30   purpose.
31
32      Section 6-24-110. (A) Any governmental entity, whether or
33   not a member of the joint agency, may contract with the joint
34   agency for its present or future service requirements, including the
35   capacity and output of one or more specified projects. The
36   contract may provide that the contracting governmental entity is
37   obligated to make the payments required by the contract whether
38   or not a project is completed, operable, or operating and that
39   payments pursuant to the contract are not subject to reduction,
40   whether by offset or otherwise, and are not conditioned upon the
41   performance or nonperformance of the joint agency or a member
42   of the joint agency pursuant to the contract or other instrument. A
43   contract entered into between a joint agency and its members also

     [68]                             10
 1   may provide that the remaining members of the joint agency must
 2   assume on a proportional basis the obligations of a defaulting
 3   member if one or more of the members defaults in the payment of
 4   the obligations.
 5      (B) A joint agency may perform its functions, furnish its
 6   services, make charges for them, and participate in their financing
 7   by contract with an individual or corporation or with the United
 8   States government or an agency of it subject to the general law and
 9   constitution of this State regarding such matters, except within a
10   designated service area. For the purposes of this section,
11   „designated service area‟ means an area in which the particular
12   service is already being provided, has been budgeted, or for which
13   funds have been applied by a governmental entity that is not a
14   member of the joint agency, as certified by the governing body of
15   the governmental entity, except that this limitation does not apply
16   with respect to the service area if the governing body of the
17   governmental entity has given the joint agency or any member of it
18   permission to provide the service within its service area.
19      (C) A contract entered into between a governmental entity and
20   a joint agency may be in the form of an obligation or bond issued
21   under another statute authorizing or permitting the incurring of
22   indebtedness by the governmental entity. Notwithstanding other
23   provisions of law prohibiting or limiting the incurring of
24   indebtedness by the governmental entity, it may sell an obligation
25   by negotiation to the joint agency in the form of a single
26   instrument payable to the joint agency on terms as the joint agency
27   considers appropriate. If the other law requires the establishment
28   or maintenance of reserves or other funds or accounts, intended as
29   security for the holders of the obligations, the joint agency may
30   elect to eliminate or waive those requirements. To the extent any
31   other law provides a lien or permits the pledge of property or
32   revenues as security for obligations issued under it, the joint
33   agency may be the direct beneficiary of the lien or pledge or may
34   waive the requirement.
35      (D) Notwithstanding the provisions of another law to the
36   contrary, a contract between a governmental entity and a joint
37   agency may extend for a period not exceeding fifty years from the
38   date services are first provided pursuant to the contract, and the
39   execution and effectiveness of the contract is not subject to
40   authorizations or approvals by the State or any agency,
41   commission, or instrumentality or political subdivision of the
42   State.


     [68]                            11
 1      (E) Except as specifically provided by the terms of the contract,
 2   payments by a governmental entity pursuant to a contract with a
 3   joint agency are not a legal or equitable pledge, charge, lien, or
 4   encumbrance upon property of the governmental entity or upon its
 5   income, receipts, or revenues. The faith and credit or the taxing
 6   power of the governmental entity may be pledged for the payment
 7   of an obligation under the contract only to the extent the contract
 8   obligation is treated like a general obligation debt of the
 9   governmental entity and is subject to the same constitutional debt
10   limitations as other general obligation debts of the governmental
11   entity.
12      (F) A governmental entity may authorize a joint agency to act
13   on its behalf in the same manner and to the same extent as any
14   agency, commission, or employee of the governmental entity. A
15   governmental entity may exercise its governmental powers on
16   behalf of a joint agency in instances where the exercise of the
17   power cannot be delegated.
18
19      Section 6-24-120. A joint agency may incur debt for any of its
20   purposes and may issue bonds pledging the revenues derived from
21   all or any of its projects and additions and betterments or
22   extensions or contributions or advances from its members to the
23   payment of both principal and interest.
24
25      Section 6-24-130. A joint agency may not undertake a project
26   requiring financing, in whole or in part, with the proceeds of
27   bonds, for which the payment of principal or interest is assured
28   directly or indirectly by a contract with one or more members,
29   without the approval of the governing body of each member that
30   provides assurance. For these purposes, a member has not assured
31   payment on bonds unless its obligation pursuant to the contract is
32   absolute and without regard to the completion or operation of the
33   project.
34
35      Section 6-24-140. (A) A joint agency may issue at one time, or
36   from time to time, its bonds for the purpose of paying all or part of
37   the cost of the purposes authorized by this chapter. The principal
38   of and the interest on the bonds, and any premium, are payable
39   only from the fund provided for payment. The bonds of each issue
40   may be sold at public or private sale. Notwithstanding another
41   provision of law to the contrary, the bonds may be sold at a price,
42   and bear interest at a rate or rates, as determined by the board of
43   directors of the joint agency. The bonds of each issue must be

     [68]                             12
 1   dated and must mature in amounts and at a time, not exceeding
 2   fifty years from their respective date, as determined by the board
 3   of directors of the joint agency, and may be redeemable before
 4   maturity at a price and by terms and conditions as fixed by the
 5   board of directors of the joint agency before or at the time of the
 6   issuance of the bonds. The board of directors of the joint agency
 7   shall determine the form and the manner of execution of the bonds,
 8   including interest coupons attached to them, and must fix the
 9   denomination of the bonds and the place of payment of principal
10   and interest, which may be at a bank or trust company inside or
11   outside the State. If an officer whose signature or signature
12   facsimile appears on a bond or coupons ceases to be an officer
13   before the delivery of the bonds, the signature or facsimile is valid
14   and sufficient for all purposes as if he had remained in office until
15   delivery. The board of directors of the joint agency also may
16   provide for the authentication of the bonds by a trustee or fiscal
17   agent. The bonds may be issued in fully registered form or under a
18   book-entry-only system, as the board of directors of the joint
19   agency determines.
20      (B) The proceeds of the bonds of each issue may be used only
21   for the purposes for which the bonds were issued, and must be
22   disbursed in the manner the board of directors of the joint agency
23   provides in the resolution authorizing the issuance of the bonds or
24   in a trust agreement securing the issuance. The joint agency may
25   issue interim receipts or temporary bonds exchangeable for
26   definitive bonds when the bonds are executed and available for
27   delivery. The joint agency also may provide for the replacement
28   of bonds which are mutilated, destroyed, or lost.
29      (C) Bonds may be issued pursuant to this chapter without
30   obtaining the consent or approval of the State or any political
31   subdivision, or agency, commission, or instrumentality of the
32   State.
33
34      Section 6-24-150. The board of directors of the joint agency
35   may elect to have bonds issued pursuant to this chapter secured by
36   a trust agreement between the joint agency and a corporate trustee,
37   which may be any trust company or bank having the powers of a
38   trust company inside or outside the State. The trustee agreement
39   or the resolution providing for the issuance of the bonds may
40   contain provisions for protecting and enforcing the rights and
41   remedies of the bondholders and of the trustee as may be
42   reasonable and proper and not in violation of law, and may restrict
43   the individual right of action by bondholders. The trust agreement

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 1   or the resolution providing for the issuance of the bonds may
 2   contain covenants including, but not limited to, the:
 3      ( 1) assignment or pledge of:
 4         (a) all or a part of the revenues derived from the project
 5   financed by the bonds; or
 6         (b) the contracts and any collateral between the joint agency
 7   and any of its members or other governmental entities;
 8      ( 2) rents, rates, fees, and charges to be established, maintained,
 9   and collected and the use and disposal of revenues, gifts, grants,
10   and funds received by the joint agency;
11      ( 3) setting aside, investment, regulation, and disposition of
12   reserves;
13      ( 4) custody, collection, securing, investment, and payment of
14   monies held for the payment of bonds;
15      ( 5) limitations or restrictions on the purposes to which the
16   proceeds of sale of issued bonds may be applied;
17      ( 6) limitations or restrictions on the issuance and security of
18   additional bonds or the refunding of outstanding or other bonds;
19      ( 7) procedure for amending the terms of a contract with
20   bondholders;
21      ( 8) events of default and the rights and liabilities arising upon
22   default, and the terms and conditions upon which bonds issued
23   pursuant to this chapter are or may be declared due before
24   maturity, and the terms and conditions upon which that declaration
25   and its consequences may be waived;
26      ( 9) preparation and maintenance of a budget;
27      (10) retention or employment of engineers, independent
28   auditors, and other technical consultants;
29      (11) limitations on, or the prohibition of, free service to a
30   person, firm, or corporation, public or private;
31      (12) acquisition and disposal of property, except that a project or
32   part of a project may not be mortgaged by the trust agreement or
33   resolution. The joint agency may mortgage other property owned
34   by it;
35      (13) provisions for insurance and for accounting reports and
36   their inspection and audit;
37      (14) continuing operation and maintenance of the project.
38
39      Section 6-24-160. (A) The joint agency shall fix, charge, and
40   collect rents, rates, fees, and charges for services provided by it or
41   the use of a project so as to provide revenues, for so long as the
42   bonds issued pursuant to this chapter are outstanding and unpaid,
43   at least sufficient together with other available funds to:

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 1        (1) pay all costs of and charges and expenses in connection
 2   with the proper operation and maintenance of its projects and for
 3   all necessary repairs, replacements, or renewals;
 4        (2) pay when due the principal of, and interest and any
 5   premiums on, all bonds payable from the revenues;
 6        (3) create and maintain reserves and comply with covenants
 7   required by a resolution or trust agreement authorizing and
 8   securing bonds; and
 9        (4) pay all other amounts the joint agency may be obligated
10   by law or contract to pay from the revenues.
11      (B) A pledge made by a joint agency pursuant to this chapter is
12   valid and binding from the date the pledge is made. The revenues,
13   securities, and other monies pledged and held or received
14   afterwards by the joint agency or fiduciary are subject immediately
15   to the lien of the pledge without physical delivery of it or other act,
16   and the lien of the pledge is valid and binding as against all parties
17   having claims in tort, contract, or otherwise against the
18   governmental entity or joint agency without regard to whether the
19   parties have notice of it.
20
21      Section 6-24-170. The resolution authorizing the bonds of an
22   issue or the trust agreement securing the bonds may provide that
23   the monies may be invested temporarily and reinvested pending
24   disbursement in securities and other investments provided in the
25   resolution or trust agreement. The resolution or trust agreement
26   must provide that a bank or trust company with which the monies
27   are deposited act as trustee of the monies and hold and apply them
28   for the purposes of this joint agency, subject to regulation as this
29   chapter and the resolution or trust agreement provide.
30
31     Section 6-24-180. A holder of bonds issued pursuant to this
32   chapter and the trustee pursuant to a trust agreement entered into
33   pursuant to this chapter may protect and enforce, either at law or in
34   equity, by suit, action, mandamus, or other proceeding, all rights
35   and compel performance of all duties arising out of the law of the
36   State or terms of the trust agreement or resolution or other
37   contract, except to the extent the rights are restricted by the trust
38   agreement or the resolution authorizing the issuance of the bonds.
39
40     Section 6-24-190. All bonds issued pursuant to this chapter are
41   investment securities within the meaning of and for all the
42   purposes of Chapter 8, Title 36 of the 1976 Code, subject only to
43   the provisions of the bonds pertaining to registration, regardless of

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 1   whether or not the bonds authorized by this chapter are of such
 2   form and character as to be investment securities pursuant to
 3   Chapter 7, Title 36 of the 1976 Code.
 4
 5     Section 6-24-200. It is lawful for all executors, administrators,
 6   guardians, committees, and other fiduciaries to invest monies in
 7   their hands in bonds issued pursuant to this chapter.
 8
 9      Section 6-24-210. The bonds issued pursuant to this chapter are
10   special obligations of the joint agency issuing them. The principal
11   and interest and any premium on the bonds are not payable from
12   the general fund of the joint agency, nor are they a legal or
13   equitable pledge, charge, lien, or encumbrance upon any of its
14   property, income, receipts, or revenues, except the funds which are
15   pledged pursuant to the resolution authorizing the bonds or the
16   trust agreement securing the bonds. Except as specifically
17   provided with respect to a general obligation of a governmental
18   entity, the faith and credit and the taxing power of the State or of
19   any governmental entity may not be pledged for the payment of the
20   principal or interest on the bonds, and a holder of the bonds may
21   not compel the exercise of the taxing power by the State and any
22   governmental entity or the forfeiture of any of this property in
23   connection with any default on the bonds. A bond must recite in
24   substance that the principal of and interest on the bond is payable
25   only from the revenues pledged to its payment and that the joint
26   agency is not obligated to pay the principal or interest except from
27   those revenues.
28
29      Section 6-24-220. A joint agency may provide by resolution for
30   the issuance of refunding bonds of the joint agency for the purpose
31   of refunding outstanding bonds issued pursuant to this chapter,
32   including the payment of a redemption premium on them and
33   interest accrued to the date of their redemption. The refund of
34   outstanding bonds may be exercised as considered desirable by the
35   board of the joint agency. The issuance of the refunding bonds,
36   their maturities and other terms, the rights of their holders, and the
37   rights, duties, and obligations of the joint agency in respect to the
38   refunding bonds must be governed by the provisions of this
39   chapter relating to the issuance of bonds to the extent those
40   provisions apply.
41
42    Section 6-24-240. (A) Personnel employed or appointed by a
43   member of a joint agency to work for it have the same authority,

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 1   rights, privileges, and immunities, including coverage pursuant to
 2   workers‟ compensation laws, that the officers, agents, and
 3   employees of the appointing member enjoy within the territory of
 4   that member when they are acting within the scope of their
 5   authority or in the course of their employment.
 6      (B) Personnel employed or appointed directly by a joint agency
 7   may participate in the South Carolina Retirement System if they
 8   are residents of this State with the same rights, privileges,
 9   obligations, and responsibilities as if they were employees of a
10   governmental entity.
11
12      Section 6-24-250. At the close of each fiscal year, a joint
13   agency shall submit an annual report of its activities for the
14   preceding year to each member, including a complete operating
15   and financial statement covering the operations of the joint agency
16   during the year. The joint agency shall cause an audit of its books
17   of record and accounts to be made at least once a year by a
18   certified public accountant, and the cost of the audit may be treated
19   as a part of the cost of construction of a project or otherwise as part
20   of the expense of administration of a project covered by the audit.
21
22      Section 6-24-260. (A) The board of directors of a joint agency
23   may make application and enter into contracts for and accept
24   grants-in-aid and loans from the federal and state governments and
25   their agencies or political subdivisions, including members, for
26   planning, acquiring, constructing, expanding, maintaining, and
27   operating a project or facility or participating in a reserve or
28   development program or performing a function which a member of
29   the joint agency may authorize by general or local law to provide
30   or perform.
31      (B) The board of directors of a joint agency may:
32        (1) enter into and carry out contracts with the state or federal
33   government or an agency or institution through which the
34   government, agency, or institution grants financial or other
35   assistance to the member or joint agency;
36        (2) accept assistance or funds granted or loaned by the state
37   or federal government with or without a contract;
38        (3) agree to and comply with reasonable conditions imposed
39   upon grants or loans; and
40        (4) make expenditures from granted funds.
41
42     Section 6-24-270. A joint agency formed by governmental
43   entities which themselves possess the power of eminent domain for

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 1   the purpose for which the joint agency was formed possesses the
 2   power of eminent domain within the jurisdictional limits of its
 3   members in accordance with Sections 5-7-50 and 4-9-30 or other
 4   provision of law as may be applicable so as to effectuate the
 5   purposes of this chapter and may exercise the power as provided in
 6   Title 28 of the 1976 Code.
 7
 8     Section 6-24-280. A director or officer of a joint agency, or a
 9   person acting on his behalf, is not subject to personal liability by
10   reason of carrying out any of the powers expressly or impliedly
11   provided in this chapter while acting within the scope of his
12   authority.
13
14      Section 6-24-290. This chapter provides an additional method
15   for accomplishing the authorized acts, and is supplemental to
16   powers conferred by existing laws and not in derogation of powers
17   now existing. If a provision of this chapter is inconsistent with the
18   provisions of other general, special, or local law, the provisions of
19   this chapter control.
20
21      Section 6-24-300. The provisions of this chapter must be
22   liberally construed.
23
24      Section 6-24-310. If one or more of the provisions of this
25   chapter, or its application, is determined by a court of competent
26   jurisdiction to be contrary to law or invalid for any reason, then the
27   provision is null and void, must be severed from the remaining
28   provisions of this chapter, and does not affect the validity of the
29   remaining provisions of this chapter.”
30
31   SECTION 3. This act takes effect upon approval by the Governor.
32                            ----XX----




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