South CarolinaS 0829126th General Assembly (2025-2026)Senate

AN ACT TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 6-25-20, RELATING TO DEFINITIONS, SO AS TO DEFINE TERMS; BY AMENDING SECTION 6-25-50, RELATING TO THE APPLICATION FILED WITH THE SECRETARY OF STATE, SO AS TO REVISE REQUIREMENTS; BY AMENDING SECTION 6-25-60, RELATING TO THE MANAGEMENT OF A JOINT SYSTEM, SO AS TO PROVIDE FOR ALTERNATIVE METHODS OF COMMISSIONER APPOINTMENT AND CONDITIONS OF SERVICE AS A COMMISSIONER; BY AMENDING SECTION 6-25-70, RELATING TO THE CHANGE IN MEMBERSHIP OF A JOINT SYSTEM, SO AS TO PROVIDE PROCEDURES FOR THE ADDITION OF A MEMBER TO A JOINT SYSTEM; BY AMENDING SECTION 6-25-80, RELATING TO THE DISSOLUTION OF A SYSTEM, SO AS TO PROVIDE PROCEDURES FOR JOINT SYSTEM RECONSTITUTION; BY AMENDING SECTION 6-25-110, RELATING TO THE AUTHORIZATION TO INCUR DEBT AND ISSUE BONDS, SO AS TO PROVIDE PROCEDURES FOR BOND ISSUANCE BY A COMMISSION APPOINTED ENTIRELY BY THE GOVERNOR; AND BY AMENDING SECTION 6-25-128, RELATING TO CONTRACTS, SO AS TO PERMIT THE AUTOMATIC EXTENSION OF CONTRACT PROVISIONS COMMENSURATE WITH TERMS OF BONDS OR OTHER INDEBTEDNESS.

Sponsored By: Thomas C. Alexander (Republican)

Signed by Governor

Summary

Joint System Governance

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 0 benefits, 0 costs, 5 mixed.

Faster bond approvals under Governor boards

When the Governor appoints all commissioners, a simple majority can approve bonds. Otherwise, each member government and two-thirds of commissioners must approve. This change speeds project financing but reduces local governing bodies’ veto power.

Longer contracts and local support tools

Beginning May 18, 2026, capacity contracts can last up to 50 years and renew for another 50. These contracts do not need state agency approvals. A member may provide money, staff, equipment, or property to help the joint system. A member may also advance funds, and the joint system must repay with agreed interest.

Tougher utility payment and rate rules

Beginning May 18, 2026, member authorities must make required payments even if a project is not finished or working. If one member stops paying, the others must cover that share and get the extra capacity. Contracts or payment duties may extend to match the life of the bonds. Authorities must set water and sewer rates high enough to cover these payments. They may pay from system revenues or other legal sources, but cannot pledge their taxing power.

Clearer rules to form, join, leave

The law sets a single filing to create a joint system. It explains how an authority can join, with notice and member approvals. A member can withdraw, but earlier contracts and bond duties continue until satisfied or carried forward. Rebuilding a system is allowed with strict steps that protect contracts and bonds. The law also defines key terms that apply to these systems.

New rules for joint system boards

The law updates who serves on joint system boards. Members may appoint commissioners, or the Governor may appoint them after local legislative recommendations. Governor appointees must live in a household served by the system and cannot work for a member. Terms are four years and staggered; new seats are filled right away. If adding a member makes the count odd, a Governor appointee’s seat is vacated. All commissioners must be qualified electors.

Sponsors & Cosponsors

Sponsor

  • Thomas C. Alexander

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 133 • No: 16

House vote • 5/12/2026

(Joint System Governance)Passage of Bill

Yes: 93 • No: 16

Senate vote • 3/19/2026

(Joint System Governance)3rd Reading

Yes: 40 • No: 0

Actions Timeline

  1. Effective date 05/18/26

    6/5/2026legislature
  2. Act No. 175

    6/2/2026legislature
  3. Signed By Governor

    5/18/2026Governor
  4. Ratified R 154

    5/14/2026legislature
  5. Concurred in Senate amendment and enrolled

    5/13/2026House
  6. Roll call Yeas-93 Nays-16

    5/12/2026House
  7. Read second time

    5/12/2026House
  8. Committee report: Favorable Judiciary

    5/6/2026House
  9. Referred to Committee on Judiciary

    3/24/2026House
  10. Introduced and read first time

    3/24/2026House
  11. Roll call Ayes-40 Nays-0

    3/19/2026Senate
  12. Read third time and sent to House

    3/19/2026Senate
  13. Read second time

    3/17/2026Senate
  14. Committee Amendment Adopted

    3/17/2026Senate
  15. Committee report: Favorable with amendment Judiciary

    3/11/2026Senate
  16. Referred to Committee on Judiciary

    1/20/2026Senate
  17. Introduced and read first time

    1/20/2026Senate

Bill Text

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