South Carolina law sets rules for local water and sewer systems

The law allows a joint system to choose between member-appointed and Governor-appointed commissioners. These options apply to commissions managing joint water and sewer systems. Under the member-appointed option, the system's agreement may allow one extra commissioner appointed by the Governor when the system has an even number of members. Under the Governor-appointed option, county legislative delegations recommend commissioners, and at least one commissioner must come from each member's service area. Governor-appointed commissioners must live in a household served by the system or one of its members.

The law sets steps for authorities to join or leave a joint system and for a system to reorganize. These rules cover public authorities joining or leaving joint systems, including systems reorganized by following the steps for forming a new system. A new member needs approval from each existing member, except that a system formed only to create a financing pool needs approval from its commission. A member leaving during a reorganization must meet its contract duties or remain bound by them. Its rights to project capacity end when it leaves. A membership change is final only after notice is filed with the Secretary of State, except for a system formed only to create a financing pool.

The law permits a joint system with a Governor-appointed commission to approve bonds by a simple majority vote. These rules apply when a joint system uses bonds to finance a project. For other systems, a project financed with bonds needs approval from the governing bodies of members responsible for pledged payments and a two-thirds vote of all commissioners. A project contract may approve a project in advance on behalf of the members' governing bodies.

The law allows certain water or wastewater contracts to extend automatically to match the term of a system's debt. This applies to contracts between a joint system and member authorities for water or wastewater capacity or output. The contract must provide for an extension when the system's bonds or other debt last longer than the initial or existing contract. The extension applies to the contract or at least each member's payment duties. A contract may last up to 50 years and may be renewed for up to another 50 years; an automatic extension applies when the debt lasts longer than the contract.